CNX Closes Acquisition of Apex Energy
CNX Resources has completed the acquisition of Apex Energy II's natural gas upstream and associated midstream business in the Appalachian Basin for approximately $505 million in cash. The transaction, effective from October 1, 2024, represents a strategic bolt-on acquisition that expands CNX's existing stacked Marcellus and Utica undeveloped leasehold in the CPA region.
The acquisition provides an existing infrastructure footprint for future development and is expected to be immediately accretive to CNX's free cash flow per share. The company plans to implement its Radical Transparency environmental monitoring and real-time disclosure initiative across the newly acquired assets, working in collaboration with Pennsylvania Governor Shapiro and the state Department of Environmental Protection.
CNX Resources ha completato l'acquisizione dell'attività di produzione di gas naturale e del business midstream associato di Apex Energy II nel Bacino Appalacchiano per circa 505 milioni di dollari in contante. La transazione, effettiva dal 1° ottobre 2024, rappresenta un'acquisizione strategica che espande la leasehold non sviluppata esistente di CNX nel Marcellus e Utica nella regione CPA.
L'acquisizione fornisce un'infrastruttura esistente per lo sviluppo futuro ed è attesa essere immediatamente accretiva al flusso di cassa libero per azione di CNX. La società prevede di implementare l'iniziativa di monitoraggio ambientale e divulgazione in tempo reale chiamata Radical Transparency sui nuovi beni acquisiti, collaborando con il Governatore della Pennsylvania Shapiro e il Dipartimento di Protezione Ambientale dello stato.
CNX Resources ha completado la adquisición del negocio de producción de gas natural y del negocio midstream asociado de Apex Energy II en la Cuenca Apalache por aproximadamente 505 millones de dólares en efectivo. La transacción, efectiva a partir del 1 de octubre de 2024, representa una adquisición estratégica que amplía el arrendamiento no desarrollado existente de CNX en Marcellus y Utica en la región CPA.
La adquisición proporciona una infraestructura existente para el desarrollo futuro y se espera que sea inmediatamente accretiva al flujo de caja libre por acción de CNX. La empresa planea implementar su iniciativa de monitoreo ambiental y divulgación en tiempo real llamada Radical Transparency en los nuevos activos adquiridos, trabajando en colaboración con el Gobernador de Pennsylvania Shapiro y el Departamento de Protección Ambiental del estado.
CNX 리소스는 앱팔래치아 분지에서 Apex Energy II의 천연 가스 상류 및 관련 중간 비즈니스를 약 5억 500만 달러에 현금으로 인수했습니다. 이 거래는 2024년 10월 1일부터 효력이 발생하며, CNX의 기존 마르셀루스 및 유티카의 비개발 리스홀드를 CPA 지역에서 확장하는 전략적 인수를 나타냅니다.
이번 인수는 향후 개발을 위한 기존 인프라 기반을 마련하고 있으며, CNX의 주당 자유 현금 흐름에 즉각적인 기여를 할 것으로 예상됩니다. 회사는 새로운 자산에 대해 환경 모니터링 및 실시간 공개 이니셔티브인 Radical Transparency를 구현할 계획이며, 펜실베이니아 주지사 샤피로와 주 환경 보호국과 협력하여 작업할 것입니다.
CNX Resources a finalisé l'acquisition des activités en amont et du business midstream associé d'Apex Energy II en matière de gaz naturel dans le bassin appalachien pour environ 505 millions de dollars en espèces. La transaction, effective à partir du 1er octobre 2024, représente une acquisition stratégique qui étend le bail non développé existant de CNX dans les régions de Marcellus et d'Utica.
L'acquisition fournit une infrastructure existante pour le développement futur et devrait immédiatement être bénéfique pour le flux de trésorerie libre par action de CNX. L'entreprise prévoit de mettre en œuvre son initiative de transparence radicale pour la surveillance environnementale et la divulgation en temps réel sur les nouveaux actifs acquis, en collaborant avec le gouverneur de Pennsylvanie, Shapiro, et le département de protection de l'environnement de l'État.
CNX Resources hat die Übernahme des Erdgas-Geschäfts und des zugehörigen Midstream-Geschäfts von Apex Energy II im Appalachian Basin für etwa 505 Millionen Dollar in bar abgeschlossen. Die Transaktion, die ab dem 1. Oktober 2024 wirksam ist, stellt eine strategische Akquisition dar, die die bestehende ungenutzte Pacht von CNX im Marcellus und Utica in der CPA-Region erweitert.
Die Akquisition bietet eine bestehende Infrastruktur für die zukünftige Entwicklung und wird voraussichtlich sofort positiv zu den freien Cashflows pro Aktie von CNX beitragen. Das Unternehmen plant, seine Initiative zur Radikalen Transparenz im Bereich Umweltüberwachung und Echtzeitauskunft auf den neu erworbenen Vermögenswerten umzusetzen, während es in Zusammenarbeit mit dem Gouverneur von Pennsylvania, Shapiro, und dem Departement für Umweltschutz des Staates arbeitet.
- Immediate accretion to free cash flow per share
- Strategic expansion of Marcellus and Utica leasehold
- Acquisition includes existing infrastructure for future development
- Enhanced operational footprint in the Appalachian Basin
- Significant cash outlay of $505 million
Insights
This
First, the bolt-on nature of the acquisition in the CPA (Core Pennsylvania) region presents immediate operational synergies through existing infrastructure integration. This should minimize capital requirements for future development while maximizing operational efficiency.
Second, the transaction's timing is strategic, with an effective date of October 1, 2024, allowing CNX to capture nearly four months of cash flows prior to closing. The immediate accretion to free cash flow per share suggests robust deal economics and efficient capital allocation.
Third, the acquisition strengthens CNX's position in both Marcellus and Utica plays - two premier natural gas basins with some of the lowest breakeven costs in North America. This dual-formation exposure provides operational flexibility and enhanced inventory depth.
The emphasis on environmental monitoring and community relations through the Radical Transparency initiative demonstrates CNX's proactive approach to ESG concerns, which is increasingly critical for energy companies' valuations and operational licenses. This regulatory alignment with Pennsylvania authorities could streamline future development approvals and reduce operational risks.
This strategic bolt-on acquisition expands CNX's existing stacked Marcellus and
CNX President and CEO Nick Deiuliis commented, "We look forward to demonstrating the unique CNX approach to operations and community relations to these new communities within the Apex footprint. We place a high priority on closely collaborating with our operating communities, local officials, and directly with residents to understand their needs and concerns. CNX's Radical Transparency environmental monitoring and real-time disclosure initiative, in collaboration with
About CNX Resources
CNX Resources Corporation (NYSE: CNX) is unique. We are a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company centered in Appalachia, one of the most energy abundant regions in the world. With the benefit of a 160-year regional legacy, substantial asset base, leading core operational competencies, technology development and innovation, and astute capital allocation methodologies, we responsibly develop our resources and deploy free cash flow to create long-term per share value for our shareholders, employees, and the communities where we operate. As of December 31, 2023, CNX had 8.74 trillion cubic feet equivalent of proved natural gas reserves. The company is a member of the Standard & Poor's Midcap 400 Index. Additional information is available at www.cnx.com.
Cautionary Statements
We are including the following cautionary statement in this press release to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of us. With the exception of historical matters, the matters discussed in this press release are forward-looking statements (as defined in 21E of the Securities Exchange Act of 1934 (the "Exchange Act")) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income, and capital spending. When we use the words "believe," "intend," "expect," "may," "should," "anticipate," "could," "estimate," "plan," "predict," "project," "will," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe a strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release; we disclaim any obligation to update these statements. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond our control. Specific factors that could cause future actual results to differ materially from the forward-looking statements include our ability to successfully complete and integrate the asset acquisition and the performance of the acquired asset, including whether the acquired asset is accretive to free cash flow per share and within the expected timeframe, as well as other factors that are described in detail under the captions "Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (SEC) and any subsequent reports filed with the SEC. Those risk factors discuss, among other matters, pricing volatility or pricing decline for natural gas and NGLs; local, regional and national economic conditions and the impact they may have on our customers; the impact of events beyond our control, including a global or domestic health crisis; dependence on gathering, processing and transportation facilities and other midstream facilities owned by others; conditions in the oil and gas industry; our current long-term debt obligations, and the terms of the agreements that govern that debt; strategic determinations, including the allocation of capital and other resources to strategic opportunities; cyber-incidents targeting our systems, oil and natural gas industry systems and infrastructure, or the systems of our third-party service providers; and changes in safety, health, environmental and other regulations.
View original content to download multimedia:https://www.prnewswire.com/news-releases/cnx-closes-acquisition-of-apex-energy-302361231.html
SOURCE CNX Resources Corporation
FAQ
How much did CNX pay for the Apex Energy acquisition?
What assets did CNX acquire from Apex Energy?
When will the Apex Energy acquisition be accretive to CNX's financials?
What regions are included in CNX's Apex Energy acquisition?
What environmental initiatives will CNX implement in the acquired Apex assets?
