Intrinsic value of CNX Resources - CNX

Previous Close

$14.29

  Intrinsic Value

$4.04

stock screener

  Rating & Target

str. sell

-72%

Previous close

$14.29

 
Intrinsic value

$4.04

 
Up/down potential

-72%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -4.85
  13.20
  12.38
  11.64
  10.98
  10.38
  9.84
  9.36
  8.92
  8.53
  8.18
  7.86
  7.57
  7.32
  7.08
  6.88
  6.69
  6.52
  6.37
  6.23
  6.11
  6.00
  5.90
  5.81
  5.73
  5.65
  5.59
  5.53
  5.48
  5.43
  5.39
Revenue, $m
  1,981
  2,242
  2,520
  2,814
  3,122
  3,446
  3,786
  4,140
  4,509
  4,894
  5,294
  5,710
  6,143
  6,592
  7,059
  7,544
  8,049
  8,574
  9,120
  9,688
  10,280
  10,896
  11,539
  12,209
  12,908
  13,638
  14,400
  15,196
  16,028
  16,899
  17,809
Variable operating expenses, $m
 
  3,157
  3,548
  3,961
  4,396
  4,853
  5,330
  5,829
  6,349
  6,891
  7,454
  8,040
  8,649
  9,282
  9,939
  10,622
  11,333
  12,072
  12,840
  13,641
  14,474
  15,342
  16,246
  17,190
  18,174
  19,202
  20,275
  21,396
  22,568
  23,793
  25,075
Fixed operating expenses, $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 operating expenses, $m
  2,325
  3,157
  3,548
  3,961
  4,396
  4,853
  5,330
  5,829
  6,349
  6,891
  7,454
  8,040
  8,649
  9,282
  9,939
  10,622
  11,333
  12,072
  12,840
  13,641
  14,474
  15,342
  16,246
  17,190
  18,174
  19,202
  20,275
  21,396
  22,568
  23,793
  25,075
Operating income, $m
  -344
  -915
  -1,028
  -1,148
  -1,274
  -1,406
  -1,545
  -1,689
  -1,840
  -1,997
  -2,160
  -2,330
  -2,506
  -2,690
  -2,880
  -3,078
  -3,284
  -3,498
  -3,721
  -3,953
  -4,194
  -4,446
  -4,708
  -4,981
  -5,266
  -5,564
  -5,875
  -6,200
  -6,540
  -6,895
  -7,266
EBITDA, $m
  255
  -238
  -267
  -298
  -331
  -365
  -401
  -439
  -478
  -518
  -561
  -605
  -651
  -698
  -748
  -799
  -853
  -908
  -966
  -1,026
  -1,089
  -1,154
  -1,222
  -1,293
  -1,368
  -1,445
  -1,526
  -1,610
  -1,698
  -1,790
  -1,887
Interest expense (income), $m
  187
  166
  204
  244
  287
  332
  379
  428
  480
  533
  589
  647
  708
  771
  836
  904
  974
  1,048
  1,124
  1,203
  1,286
  1,372
  1,461
  1,555
  1,652
  1,754
  1,860
  1,971
  2,086
  2,207
  2,334
Earnings before tax, $m
  -526
  -1,081
  -1,232
  -1,392
  -1,561
  -1,738
  -1,923
  -2,117
  -2,319
  -2,530
  -2,749
  -2,977
  -3,214
  -3,460
  -3,716
  -3,982
  -4,258
  -4,546
  -4,845
  -5,156
  -5,480
  -5,817
  -6,169
  -6,536
  -6,919
  -7,318
  -7,735
  -8,171
  -8,626
  -9,102
  -9,600
Tax expense, $m
  10
  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
Net income, $m
  -848
  -1,081
  -1,232
  -1,392
  -1,561
  -1,738
  -1,923
  -2,117
  -2,319
  -2,530
  -2,749
  -2,977
  -3,214
  -3,460
  -3,716
  -3,982
  -4,258
  -4,546
  -4,845
  -5,156
  -5,480
  -5,817
  -6,169
  -6,536
  -6,919
  -7,318
  -7,735
  -8,171
  -8,626
  -9,102
  -9,600

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
  0
Total assets, $m
  9,184
  10,334
  11,613
  12,965
  14,389
  15,882
  17,445
  19,078
  20,780
  22,553
  24,397
  26,314
  28,307
  30,378
  32,530
  34,767
  37,092
  39,510
  42,026
  44,645
  47,371
  50,212
  53,173
  56,261
  59,483
  62,846
  66,359
  70,028
  73,864
  77,874
  82,068
Adjusted assets (=assets-cash), $m
  9,124
  10,334
  11,613
  12,965
  14,389
  15,882
  17,445
  19,078
  20,780
  22,553
  24,397
  26,314
  28,307
  30,378
  32,530
  34,767
  37,092
  39,510
  42,026
  44,645
  47,371
  50,212
  53,173
  56,261
  59,483
  62,846
  66,359
  70,028
  73,864
  77,874
  82,068
Revenue / Adjusted assets
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
Average production assets, $m
  8,437
  9,551
  10,733
  11,983
  13,298
  14,679
  16,123
  17,632
  19,205
  20,843
  22,548
  24,320
  26,161
  28,075
  30,064
  32,131
  34,281
  36,515
  38,841
  41,261
  43,781
  46,406
  49,143
  51,997
  54,975
  58,083
  61,329
  64,720
  68,265
  71,971
  75,848
Working capital, $m
  -314
  -11
  -13
  -14
  -16
  -17
  -19
  -21
  -23
  -24
  -26
  -29
  -31
  -33
  -35
  -38
  -40
  -43
  -46
  -48
  -51
  -54
  -58
  -61
  -65
  -68
  -72
  -76
  -80
  -84
  -89
Total debt, $m
  3,126
  3,775
  4,522
  5,312
  6,143
  7,015
  7,928
  8,882
  9,876
  10,911
  11,988
  13,107
  14,271
  15,481
  16,737
  18,044
  19,402
  20,814
  22,283
  23,812
  25,405
  27,064
  28,793
  30,597
  32,478
  34,442
  36,494
  38,637
  40,876
  43,218
  45,668
Total liabilities, $m
  5,386
  6,035
  6,782
  7,572
  8,403
  9,275
  10,188
  11,142
  12,136
  13,171
  14,248
  15,367
  16,531
  17,741
  18,997
  20,304
  21,662
  23,074
  24,543
  26,072
  27,665
  29,324
  31,053
  32,857
  34,738
  36,702
  38,754
  40,897
  43,136
  45,478
  47,928
Total equity, $m
  3,798
  4,299
  4,831
  5,394
  5,986
  6,607
  7,257
  7,936
  8,645
  9,382
  10,149
  10,947
  11,776
  12,637
  13,532
  14,463
  15,430
  16,436
  17,483
  18,572
  19,706
  20,888
  22,120
  23,405
  24,745
  26,144
  27,605
  29,132
  30,727
  32,395
  34,140
Total liabilities and equity, $m
  9,184
  10,334
  11,613
  12,966
  14,389
  15,882
  17,445
  19,078
  20,781
  22,553
  24,397
  26,314
  28,307
  30,378
  32,529
  34,767
  37,092
  39,510
  42,026
  44,644
  47,371
  50,212
  53,173
  56,262
  59,483
  62,846
  66,359
  70,029
  73,863
  77,873
  82,068
Debt-to-equity ratio
  0.823
  0.880
  0.940
  0.980
  1.030
  1.060
  1.090
  1.120
  1.140
  1.160
  1.180
  1.200
  1.210
  1.230
  1.240
  1.250
  1.260
  1.270
  1.270
  1.280
  1.290
  1.300
  1.300
  1.310
  1.310
  1.320
  1.320
  1.330
  1.330
  1.330
  1.340
Adjusted equity ratio
  0.410
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -848
  -1,081
  -1,232
  -1,392
  -1,561
  -1,738
  -1,923
  -2,117
  -2,319
  -2,530
  -2,749
  -2,977
  -3,214
  -3,460
  -3,716
  -3,982
  -4,258
  -4,546
  -4,845
  -5,156
  -5,480
  -5,817
  -6,169
  -6,536
  -6,919
  -7,318
  -7,735
  -8,171
  -8,626
  -9,102
  -9,600
Depreciation, amort., depletion, $m
  599
  677
  761
  850
  943
  1,041
  1,143
  1,250
  1,362
  1,478
  1,599
  1,725
  1,855
  1,991
  2,132
  2,279
  2,431
  2,590
  2,755
  2,926
  3,105
  3,291
  3,485
  3,688
  3,899
  4,119
  4,350
  4,590
  4,841
  5,104
  5,379
Funds from operations, $m
  378
  -403
  -471
  -542
  -618
  -697
  -780
  -867
  -957
  -1,052
  -1,150
  -1,252
  -1,359
  -1,469
  -1,584
  -1,703
  -1,827
  -1,956
  -2,090
  -2,230
  -2,375
  -2,526
  -2,684
  -2,848
  -3,020
  -3,199
  -3,385
  -3,581
  -3,784
  -3,998
  -4,221
Change in working capital, $m
  -91
  -1
  -1
  -1
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -4
  -4
  -4
  -4
  -4
  -5
Cash from operations, $m
  469
  -402
  -469
  -541
  -616
  -695
  -778
  -865
  -955
  -1,050
  -1,148
  -1,250
  -1,356
  -1,467
  -1,581
  -1,701
  -1,825
  -1,953
  -2,087
  -2,227
  -2,372
  -2,523
  -2,681
  -2,845
  -3,016
  -3,195
  -3,382
  -3,577
  -3,780
  -3,993
  -4,216
Maintenance CAPEX, $m
  0
  -598
  -677
  -761
  -850
  -943
  -1,041
  -1,143
  -1,250
  -1,362
  -1,478
  -1,599
  -1,725
  -1,855
  -1,991
  -2,132
  -2,279
  -2,431
  -2,590
  -2,755
  -2,926
  -3,105
  -3,291
  -3,485
  -3,688
  -3,899
  -4,119
  -4,350
  -4,590
  -4,841
  -5,104
New CAPEX, $m
  -227
  -1,114
  -1,182
  -1,250
  -1,315
  -1,380
  -1,445
  -1,509
  -1,573
  -1,638
  -1,704
  -1,772
  -1,842
  -1,914
  -1,989
  -2,067
  -2,149
  -2,235
  -2,325
  -2,420
  -2,520
  -2,625
  -2,737
  -2,854
  -2,978
  -3,108
  -3,246
  -3,391
  -3,545
  -3,706
  -3,877
Cash from investing activities, $m
  487
  -1,712
  -1,859
  -2,011
  -2,165
  -2,323
  -2,486
  -2,652
  -2,823
  -3,000
  -3,182
  -3,371
  -3,567
  -3,769
  -3,980
  -4,199
  -4,428
  -4,666
  -4,915
  -5,175
  -5,446
  -5,730
  -6,028
  -6,339
  -6,666
  -7,007
  -7,365
  -7,741
  -8,135
  -8,547
  -8,981
Free cash flow, $m
  956
  -2,114
  -2,329
  -2,552
  -2,781
  -3,019
  -3,264
  -3,517
  -3,779
  -4,050
  -4,331
  -4,621
  -4,923
  -5,236
  -5,562
  -5,900
  -6,252
  -6,620
  -7,002
  -7,402
  -7,818
  -8,254
  -8,709
  -9,184
  -9,682
  -10,202
  -10,747
  -11,318
  -11,915
  -12,541
  -13,197
Issuance/(repayment) of debt, $m
  -960
  709
  747
  790
  831
  872
  913
  953
  994
  1,035
  1,077
  1,120
  1,164
  1,209
  1,257
  1,306
  1,358
  1,412
  1,469
  1,529
  1,592
  1,659
  1,729
  1,803
  1,882
  1,964
  2,051
  2,143
  2,240
  2,342
  2,450
Issuance/(repurchase) of shares, $m
  0
  1,581
  1,764
  1,955
  2,153
  2,359
  2,574
  2,796
  3,027
  3,267
  3,516
  3,775
  4,043
  4,322
  4,611
  4,912
  5,226
  5,552
  5,891
  6,245
  6,614
  6,999
  7,401
  7,821
  8,259
  8,717
  9,196
  9,697
  10,221
  10,770
  11,345
Cash from financing (excl. dividends), $m  
  -967
  2,290
  2,511
  2,745
  2,984
  3,231
  3,487
  3,749
  4,021
  4,302
  4,593
  4,895
  5,207
  5,531
  5,868
  6,218
  6,584
  6,964
  7,360
  7,774
  8,206
  8,658
  9,130
  9,624
  10,141
  10,681
  11,247
  11,840
  12,461
  13,112
  13,795
Total cash flow (excl. dividends), $m
  -10
  176
  182
  193
  203
  213
  223
  233
  242
  252
  263
  273
  284
  295
  307
  319
  331
  344
  358
  373
  388
  405
  422
  440
  459
  479
  500
  523
  546
  571
  597
Retained Cash Flow (-), $m
  904
  -1,581
  -1,764
  -1,955
  -2,153
  -2,359
  -2,574
  -2,796
  -3,027
  -3,267
  -3,516
  -3,775
  -4,043
  -4,322
  -4,611
  -4,912
  -5,226
  -5,552
  -5,891
  -6,245
  -6,614
  -6,999
  -7,401
  -7,821
  -8,259
  -8,717
  -9,196
  -9,697
  -10,221
  -10,770
  -11,345
Prev. year cash balance distribution, $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
Cash flow adjustment, $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
Cash available for distribution, $m
 
  -1,405
  -1,582
  -1,762
  -1,950
  -2,146
  -2,351
  -2,564
  -2,785
  -3,015
  -3,254
  -3,502
  -3,759
  -4,027
  -4,305
  -4,594
  -4,894
  -5,207
  -5,533
  -5,872
  -6,226
  -6,595
  -6,979
  -7,381
  -7,800
  -8,238
  -8,696
  -9,175
  -9,675
  -10,199
  -10,747
Discount rate, %
 
  7.70
  8.09
  8.49
  8.91
  9.36
  9.83
  10.32
  10.83
  11.38
  11.95
  12.54
  13.17
  13.83
  14.52
  15.25
  16.01
  16.81
  17.65
  18.53
  19.46
  20.43
  21.45
  22.52
  23.65
  24.83
  26.07
  27.38
  28.75
  30.18
  31.69
PV of cash for distribution, $m
 
  -1,305
  -1,354
  -1,380
  -1,386
  -1,372
  -1,340
  -1,289
  -1,223
  -1,143
  -1,053
  -955
  -852
  -748
  -645
  -547
  -455
  -371
  -297
  -232
  -178
  -133
  -97
  -69
  -48
  -32
  -21
  -13
  -8
  -5
  -3
Current shareholders' claim on cash, %
  100
  68.0
  46.4
  31.9
  22.0
  15.2
  10.5
  7.3
  5.1
  3.6
  2.5
  1.8
  1.3
  0.9
  0.6
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

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 -3.9
Price to Sales 1.7
Price to Book 0.9
Price to Tangible Book
Price to Cash Flow 7
Price to Free Cash Flow 13.5
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 $1981 million for the last fiscal year's total revenue generated by CNX Resources. The default revenue input number comes from 2016 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 13.2% 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 7.7%, 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 140.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 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 5.4% 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 0%.

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 425.9%.

Life of production assets of 14.1 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 -0.5%. 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 - $3798 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 235.133 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 $3.4 billion.

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COMPANY NEWS

▶ 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]
▶ [$$] Noble Energy Extends Deadline for Sale of Marcellus Venture Stake   [Dec-08-17 09:36PM  The Wall Street Journal]
▶ One of America's Oldest Energy Producers Splits in Two   [Nov-29-17 09:02AM  The Wall Street Journal]
▶ Consol reports 3Q loss   [07:12AM  Associated Press]
▶ Where Analysts Think Encana Could Trade in a Year   [Oct-11-17 09:11AM  Market Realist]
▶ Trump Admin Says War on Coal Is Over   [Oct-10-17 08:12AM  Investopedia]
▶ Southwestern Energys Quarterly Production Growth in 3Q17   [Oct-09-17 10:40AM  Market Realist]
▶ Factors Driving the Coal Industry Forward   [Oct-03-17 03:36PM  Zacks]
▶ What Really Moved Marathon Oil Stock Last Week   [Sep-20-17 09:07AM  Market Realist]
▶ CONSOL Energy Announces Update on Bailey Mine Permit   [Sep-18-17 06:45AM  PR Newswire]
▶ CNX Coal Resources Updates 2017 Outlook   [06:45AM  PR Newswire]
▶ Kansas City Southern: What Led Volume Rise in Week 34?   [Sep-04-17 09:07AM  Market Realist]
▶ How Union Pacifics Freight Rail Volumes Fared in Week 32   [Aug-23-17 07:37AM  Market Realist]
▶ Whats behind Union Pacifics Rise in Freight Volumes?   [Aug-08-17 10:38AM  Market Realist]
▶ Consol tops Street 2Q forecasts   [Aug-01-17 10:57PM  Associated Press]
▶ Consol plans to add 3rd rig in 2018   [11:40AM  American City Business Journals]
▶ Inside the Solid Rise of NSCs 2Q17 Coal Revenues   [Jul-31-17 04:35PM  Market Realist]
▶ ETFs with exposure to CONSOL Energy, Inc. : July 24, 2017   [Jul-24-17 02:59PM  Capital Cube]
▶ Behind Kansas City Southerns Carloads in Week 27   [Jul-18-17 09:07AM  Market Realist]
▶ What Really Pushed CSXs Freight Volumes in Week 27?   [Jul-17-17 10:42AM  Market Realist]
▶ ETFs with exposure to CONSOL Energy, Inc. : July 14, 2017   [Jul-14-17 01:36PM  Capital Cube]
▶ Consol files plans to spin off coal operations and rename gas company   [Jul-13-17 03:35PM  American City Business Journals]
▶ [$$] Consol Energy Files to Spinoff Coal-Mining Business   [08:30AM  The Wall Street Journal]
Financial statements of CNX
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