Intrinsic value of CNX Resources - CNX

Previous Close

$15.42

  Intrinsic Value

$4.24

stock screener

  Rating & Target

str. sell

-73%

Previous close

$15.42

 
Intrinsic value

$4.24

 
Up/down potential

-73%

 
Rating

str. sell

We calculate the intrinsic value of CNX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  2,328
  3,597
  5,379
  7,805
  11,011
  15,138
  20,319
  26,681
  34,331
  43,363
  53,847
  65,834
  79,352
  94,413
  111,013
  129,135
  148,752
  169,834
  192,346
  216,254
  241,527
  268,138
  296,068
  325,304
  355,841
  387,683
  420,844
  455,346
  491,220
  528,506
Variable operating expenses, $m
  719
  1,111
  1,662
  2,412
  3,402
  4,678
  6,279
  8,244
  10,608
  13,399
  16,639
  20,343
  24,520
  29,174
  34,303
  39,903
  45,964
  52,479
  59,435
  66,822
  74,632
  82,855
  91,485
  100,519
  109,955
  119,794
  130,041
  140,702
  151,787
  163,308
Fixed operating expenses, $m
  980
  1,002
  1,024
  1,046
  1,069
  1,093
  1,117
  1,141
  1,166
  1,192
  1,218
  1,245
  1,273
  1,301
  1,329
  1,358
  1,388
  1,419
  1,450
  1,482
  1,515
  1,548
  1,582
  1,617
  1,652
  1,689
  1,726
  1,764
  1,803
  1,842
Total operating expenses, $m
  1,699
  2,113
  2,686
  3,458
  4,471
  5,771
  7,396
  9,385
  11,774
  14,591
  17,857
  21,588
  25,793
  30,475
  35,632
  41,261
  47,352
  53,898
  60,885
  68,304
  76,147
  84,403
  93,067
  102,136
  111,607
  121,483
  131,767
  142,466
  153,590
  165,150
Operating income, $m
  629
  1,484
  2,693
  4,347
  6,539
  9,367
  12,924
  17,295
  22,557
  28,772
  35,990
  44,246
  53,560
  63,939
  75,381
  87,874
  101,399
  115,937
  131,461
  147,949
  165,381
  183,736
  203,001
  223,168
  244,234
  266,200
  289,077
  312,880
  337,630
  363,355
EBITDA, $m
  1,743
  3,205
  5,268
  8,083
  11,811
  16,614
  22,651
  30,067
  38,991
  49,530
  61,767
  75,761
  91,545
  109,134
  128,523
  149,690
  172,607
  197,236
  223,537
  251,470
  280,999
  312,094
  344,729
  378,891
  414,575
  451,784
  490,535
  530,854
  572,777
  616,351
Interest expense (income), $m
  187
  143
  262
  433
  674
  1,002
  1,436
  1,994
  2,694
  3,554
  4,589
  5,810
  7,228
  8,848
  10,676
  12,713
  14,957
  17,407
  20,060
  22,911
  25,954
  29,187
  32,604
  36,202
  39,979
  43,932
  48,061
  52,366
  56,850
  61,515
  66,366
Earnings before tax, $m
  485
  1,222
  2,260
  3,673
  5,537
  7,932
  10,930
  14,601
  19,002
  24,183
  30,180
  37,018
  44,711
  53,263
  62,668
  72,916
  83,992
  95,877
  108,550
  121,995
  136,193
  151,132
  166,799
  183,189
  200,302
  218,139
  236,711
  256,030
  276,115
  296,990
Tax expense, $m
  131
  330
  610
  992
  1,495
  2,142
  2,951
  3,942
  5,131
  6,529
  8,149
  9,995
  12,072
  14,381
  16,920
  19,687
  22,678
  25,887
  29,309
  32,939
  36,772
  40,806
  45,036
  49,461
  54,081
  58,898
  63,912
  69,128
  74,551
  80,187
Net income, $m
  354
  892
  1,650
  2,681
  4,042
  5,790
  7,979
  10,658
  13,872
  17,654
  22,031
  27,023
  32,639
  38,882
  45,748
  53,229
  61,314
  69,990
  79,242
  89,056
  99,421
  110,326
  121,763
  133,728
  146,220
  159,242
  172,799
  186,902
  201,564
  216,802

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  10,981
  16,966
  25,372
  36,814
  51,939
  71,405
  95,846
  125,852
  161,941
  204,544
  253,998
  310,536
  374,301
  445,344
  523,646
  609,126
  701,661
  801,104
  907,292
  1,020,066
  1,139,278
  1,264,804
  1,396,549
  1,534,453
  1,678,494
  1,828,693
  1,985,112
  2,147,857
  2,317,074
  2,492,953
Adjusted assets (=assets-cash), $m
  10,981
  16,966
  25,372
  36,814
  51,939
  71,405
  95,846
  125,852
  161,941
  204,544
  253,998
  310,536
  374,301
  445,344
  523,646
  609,126
  701,661
  801,104
  907,292
  1,020,066
  1,139,278
  1,264,804
  1,396,549
  1,534,453
  1,678,494
  1,828,693
  1,985,112
  2,147,857
  2,317,074
  2,492,953
Revenue / Adjusted assets
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
  0.212
Average production assets, $m
  11,144
  17,218
  25,749
  37,361
  52,710
  72,465
  97,269
  127,720
  164,345
  207,581
  257,768
  315,146
  379,857
  451,955
  531,419
  618,167
  712,077
  812,996
  920,760
  1,035,208
  1,156,189
  1,283,579
  1,417,279
  1,557,230
  1,703,410
  1,855,838
  2,014,579
  2,179,739
  2,351,468
  2,529,958
Working capital, $m
  -321
  -496
  -742
  -1,077
  -1,520
  -2,089
  -2,804
  -3,682
  -4,738
  -5,984
  -7,431
  -9,085
  -10,951
  -13,029
  -15,320
  -17,821
  -20,528
  -23,437
  -26,544
  -29,843
  -33,331
  -37,003
  -40,857
  -44,892
  -49,106
  -53,500
  -58,076
  -62,838
  -67,788
  -72,934
Total debt, $m
  4,025
  6,665
  10,372
  15,418
  22,088
  30,672
  41,451
  54,683
  70,598
  89,387
  111,196
  136,129
  164,249
  195,579
  230,110
  267,807
  308,615
  352,469
  399,298
  449,032
  501,604
  556,961
  615,061
  675,876
  739,399
  805,636
  874,617
  946,387
  1,021,012
  1,098,575
Total liabilities, $m
  4,843
  7,482
  11,189
  16,235
  22,905
  31,489
  42,268
  55,501
  71,416
  90,204
  112,013
  136,947
  165,067
  196,397
  230,928
  268,624
  309,433
  353,287
  400,116
  449,849
  502,422
  557,779
  615,878
  676,694
  740,216
  806,454
  875,435
  947,205
  1,021,829
  1,099,392
Total equity, $m
  6,138
  9,484
  14,183
  20,579
  29,034
  39,915
  53,578
  70,351
  90,525
  114,340
  141,985
  173,590
  209,234
  248,947
  292,718
  340,501
  392,229
  447,817
  507,176
  570,217
  636,856
  707,025
  780,671
  857,759
  938,278
  1,022,240
  1,109,678
  1,200,652
  1,295,244
  1,393,561
Total liabilities and equity, $m
  10,981
  16,966
  25,372
  36,814
  51,939
  71,404
  95,846
  125,852
  161,941
  204,544
  253,998
  310,537
  374,301
  445,344
  523,646
  609,125
  701,662
  801,104
  907,292
  1,020,066
  1,139,278
  1,264,804
  1,396,549
  1,534,453
  1,678,494
  1,828,694
  1,985,113
  2,147,857
  2,317,073
  2,492,953
Debt-to-equity ratio
  0.660
  0.700
  0.730
  0.750
  0.760
  0.770
  0.770
  0.780
  0.780
  0.780
  0.780
  0.780
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
Adjusted equity ratio
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559
  0.559

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  354
  892
  1,650
  2,681
  4,042
  5,790
  7,979
  10,658
  13,872
  17,654
  22,031
  27,023
  32,639
  38,882
  45,748
  53,229
  61,314
  69,990
  79,242
  89,056
  99,421
  110,326
  121,763
  133,728
  146,220
  159,242
  172,799
  186,902
  201,564
  216,802
Depreciation, amort., depletion, $m
  1,114
  1,722
  2,575
  3,736
  5,271
  7,246
  9,727
  12,772
  16,434
  20,758
  25,777
  31,515
  37,986
  45,195
  53,142
  61,817
  71,208
  81,300
  92,076
  103,521
  115,619
  128,358
  141,728
  155,723
  170,341
  185,584
  201,458
  217,974
  235,147
  252,996
Funds from operations, $m
  1,469
  2,614
  4,225
  6,417
  9,313
  13,037
  17,706
  23,430
  30,306
  38,412
  47,808
  58,538
  70,625
  84,077
  98,890
  115,046
  132,522
  151,289
  171,318
  192,577
  215,040
  238,684
  263,491
  289,451
  316,561
  344,826
  374,257
  404,876
  436,711
  469,798
Change in working capital, $m
  -120
  -175
  -246
  -335
  -443
  -569
  -715
  -878
  -1,056
  -1,246
  -1,447
  -1,654
  -1,865
  -2,078
  -2,291
  -2,501
  -2,707
  -2,909
  -3,107
  -3,299
  -3,488
  -3,672
  -3,854
  -4,035
  -4,214
  -4,394
  -4,576
  -4,761
  -4,951
  -5,146
Cash from operations, $m
  1,589
  2,789
  4,471
  6,752
  9,756
  13,606
  18,421
  24,308
  31,362
  39,658
  49,255
  60,192
  72,490
  86,156
  101,180
  117,547
  135,229
  154,199
  174,424
  195,876
  218,528
  242,356
  267,345
  293,486
  320,775
  349,220
  378,833
  409,637
  441,661
  474,944
Maintenance CAPEX, $m
  -697
  -1,114
  -1,722
  -2,575
  -3,736
  -5,271
  -7,246
  -9,727
  -12,772
  -16,434
  -20,758
  -25,777
  -31,515
  -37,986
  -45,195
  -53,142
  -61,817
  -71,208
  -81,300
  -92,076
  -103,521
  -115,619
  -128,358
  -141,728
  -155,723
  -170,341
  -185,584
  -201,458
  -217,974
  -235,147
New CAPEX, $m
  -4,179
  -6,074
  -8,531
  -11,612
  -15,350
  -19,754
  -24,804
  -30,451
  -36,625
  -43,236
  -50,187
  -57,378
  -64,711
  -72,098
  -79,464
  -86,749
  -93,910
  -100,919
  -107,764
  -114,448
  -120,982
  -127,389
  -133,701
  -139,951
  -146,180
  -152,429
  -158,741
  -165,160
  -171,729
  -178,490
Cash from investing activities, $m
  -4,876
  -7,188
  -10,253
  -14,187
  -19,086
  -25,025
  -32,050
  -40,178
  -49,397
  -59,670
  -70,945
  -83,155
  -96,226
  -110,084
  -124,659
  -139,891
  -155,727
  -172,127
  -189,064
  -206,524
  -224,503
  -243,008
  -262,059
  -281,679
  -301,903
  -322,770
  -344,325
  -366,618
  -389,703
  -413,637
Free cash flow, $m
  -3,287
  -4,399
  -5,783
  -7,435
  -9,330
  -11,419
  -13,630
  -15,870
  -18,035
  -20,012
  -21,690
  -22,963
  -23,735
  -23,928
  -23,479
  -22,344
  -20,497
  -17,928
  -14,639
  -10,647
  -5,975
  -652
  5,287
  11,807
  18,873
  26,450
  34,508
  43,019
  51,959
  61,307
Issuance/(repayment) of debt, $m
  1,818
  2,639
  3,707
  5,046
  6,670
  8,584
  10,779
  13,233
  15,915
  18,788
  21,809
  24,934
  28,120
  31,330
  34,531
  37,697
  40,808
  43,854
  46,829
  49,733
  52,573
  55,357
  58,100
  60,816
  63,522
  66,238
  68,981
  71,770
  74,625
  77,563
Issuance/(repurchase) of shares, $m
  1,945
  2,453
  3,050
  3,715
  4,413
  5,091
  5,684
  6,115
  6,302
  6,162
  5,613
  4,582
  3,005
  832
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,763
  5,092
  6,757
  8,761
  11,083
  13,675
  16,463
  19,348
  22,217
  24,950
  27,422
  29,516
  31,125
  32,162
  34,531
  37,697
  40,808
  43,854
  46,829
  49,733
  52,573
  55,357
  58,100
  60,816
  63,522
  66,238
  68,981
  71,770
  74,625
  77,563
Total cash flow (excl. dividends), $m
  476
  694
  974
  1,326
  1,753
  2,256
  2,833
  3,478
  4,183
  4,938
  5,731
  6,553
  7,390
  8,234
  11,052
  15,353
  20,311
  25,926
  32,190
  39,086
  46,598
  54,705
  63,386
  72,623
  82,395
  92,688
  103,489
  114,789
  126,583
  138,870
Retained Cash Flow (-), $m
  -2,299
  -3,345
  -4,699
  -6,396
  -8,455
  -10,881
  -13,663
  -16,773
  -20,174
  -23,815
  -27,644
  -31,605
  -35,644
  -39,713
  -43,771
  -47,783
  -51,728
  -55,588
  -59,359
  -63,040
  -66,640
  -70,169
  -73,645
  -77,088
  -80,519
  -83,961
  -87,438
  -90,974
  -94,592
  -98,316
Prev. year cash balance distribution, $m
  60
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  17
  28
  43
  65
  94
  132
  182
  244
  320
  412
  520
  646
  790
  952
  1,133
  1,332
  1,550
  1,785
  2,038
  2,308
  2,595
  2,898
  3,218
  3,553
  3,904
  4,270
  4,652
  5,050
  5,464
  5,895
Cash available for distribution, $m
  -1,762
  -2,652
  -3,725
  -5,070
  -6,702
  -8,625
  -10,830
  -13,296
  -15,991
  -18,878
  -21,913
  -25,053
  -28,254
  -31,480
  -32,718
  -32,431
  -31,416
  -29,662
  -27,170
  -23,954
  -20,042
  -15,464
  -10,259
  -4,466
  1,876
  8,727
  16,051
  23,815
  31,991
  40,553
Discount rate, %
  4.90
  5.15
  5.40
  5.67
  5.96
  6.25
  6.57
  6.89
  7.24
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
PV of cash for distribution, $m
  -1,680
  -2,399
  -3,181
  -4,066
  -5,019
  -5,994
  -6,939
  -7,799
  -8,525
  -9,073
  -9,416
  -9,537
  -9,439
  -9,135
  -8,158
  -6,869
  -5,584
  -4,367
  -3,268
  -2,320
  -1,539
  -926
  -471
  -154
  48
  161
  210
  216
  196
  164
Current shareholders' claim on cash, %
  64.2
  44.6
  33.0
  25.6
  20.7
  17.4
  15.0
  13.3
  12.1
  11.3
  10.7
  10.3
  10.2
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1
  10.1

CNX Resources Corp., formerly CONSOL Energy Inc., is an integrated energy company. The Company's divisions include Exploration and Production (E&P), Pennsylvania (PA) Mining Operations and Other. The E&P division operates through four segments: Marcellus Shale, Utica Shale, Coalbed Methane (CBM) and Other Gas, which produce pipeline quality natural gas for sale primarily to gas wholesalers. Its E&P division focuses on Appalachian area natural gas and liquids activities, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. The Other Gas segment is primarily related to shallow oil and gas production and the Chattanooga Shale in Tennessee. The principal activities of the PA Mining Operations division are mining, preparation and marketing of thermal coal, sold primarily to power generators. The Other division includes business activities, such as coal terminal operations and water operations.

FINANCIAL RATIOS  of  CNX Resources (CNX)

Valuation Ratios
P/E Ratio -4.2
Price to Sales 1.8
Price to Book 0.9
Price to Tangible Book
Price to Cash Flow 7.5
Price to Free Cash Flow 14.6
Growth Rates
Sales Growth Rate -4.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -76.9%
Cap. Spend. - 3 Yr. Gr. Rate -31.4%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 72.7%
Total Debt to Equity 82.3%
Interest Coverage -2
Management Effectiveness
Return On Assets -6.5%
Ret/ On Assets - 3 Yr. Avg. -1.7%
Return On Total Capital -11%
Ret/ On T. Cap. - 3 Yr. Avg. -4.5%
Return On Equity -20%
Return On Equity - 3 Yr. Avg. -8.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 33.1%
Gross Margin - 3 Yr. Avg. 42.3%
EBITDA Margin 13.1%
EBITDA Margin - 3 Yr. Avg. 19.9%
Operating Margin -17.4%
Oper. Margin - 3 Yr. Avg. -17.4%
Pre-Tax Margin -26.6%
Pre-Tax Margin - 3 Yr. Avg. -14.4%
Net Profit Margin -42.8%
Net Profit Margin - 3 Yr. Avg. -18.4%
Effective Tax Rate -1.9%
Eff/ Tax Rate - 3 Yr. Avg. 11%
Payout Ratio -0.2%

CNX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CNX stock intrinsic value calculation we used $1455 million for the last fiscal year's total revenue generated by CNX Resources. The default revenue input number comes from 2017 income statement of CNX Resources. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CNX stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.9%, whose default value for CNX is calculated based on our internal credit rating of CNX Resources, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of CNX Resources.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CNX stock the variable cost ratio is equal to 30.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $959 million in the base year in the intrinsic value calculation for CNX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6.5% for CNX Resources.

Corporate tax rate of 27% is the nominal tax rate for CNX Resources. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CNX stock is equal to 1.2%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CNX are equal to 478.7%.

Life of production assets of 10 years is the average useful life of capital assets used in CNX Resources operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CNX is equal to -13.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3900 million for CNX Resources - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 230 million for CNX Resources is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of CNX Resources at the current share price and the inputted number of shares is $3.5 billion.

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COMPANY NEWS

▶ CNX Resources: 2Q Earnings Snapshot   [12:08PM  Associated Press]
▶ CNX innovates its way to better returns at the well pad   [Jun-27-18 01:42PM  American City Business Journals]
▶ Seven Pittsburgh-area companies on 2018's Fortune 500 list   [May-21-18 02:38PM  American City Business Journals]
▶ Consol, CNX annual meetings their first as separate companies short and to the point   [May-09-18 11:41AM  American City Business Journals]
▶ How drillers dealt with two-month shutdown of Mariner East 1 pipeline   [May-07-18 01:01PM  American City Business Journals]
▶ Consol Energy: 1Q Earnings Snapshot   [May-03-18 07:57AM  Associated Press]
▶ CNX Resources: 1Q Earnings Snapshot   [07:06AM  Associated Press]
▶ CNX Reports Preliminary First Quarter Results   [Apr-27-18 05:00PM  PR Newswire]
▶ Insider Shadowing: Buying Into CNX Resources And Others   [Mar-28-18 09:02AM  Simply Wall St.]
▶ CNX outlines strategy for next few years   [Mar-14-18 07:56AM  American City Business Journals]
▶ CNX Announces Upsized Credit Facility   [Mar-08-18 01:10PM  PR Newswire]
▶ How Confident Are Insiders About Allergan And More?   [Feb-14-18 08:02AM  Simply Wall St.]
▶ Longleaf Partners Comments on CONSOL Energy   [Jan-22-18 04:12PM  GuruFocus.com]
▶ Longleaf Partners Fund 4th Quarter Commentary   [Jan-19-18 06:04PM  GuruFocus.com]
▶ CNX plans to spend about $800M to drill in 2018   [Jan-09-18 11:20AM  American City Business Journals]
▶ Why CNX is pumped about having midstream company on board   [Jan-04-18 03:05PM  American City Business Journals]
▶ What Does Wall Street Predict for WPX Energy?   [Dec-13-17 07:33AM  Market Realist]
▶ [$$] Noble Energy Extends Deadline for Sale of Marcellus Venture Stake   [Dec-08-17 09:36PM  The Wall Street Journal]
▶ One of America's Oldest Energy Producers Splits in Two   [Nov-29-17 09:02AM  The Wall Street Journal]
▶ Consol reports 3Q loss   [07:12AM  Associated Press]
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