CNX Resources Corporation has announced a definitive agreement to acquire the natural gas upstream and midstream business of Apex Energy II, LLC for approximately $505 million, with the transaction expected to close in Q1 2025. This acquisition strengthens CNX’s position in the Appalachian Basin, strategically expanding its Marcellus and Utica acreage in Westmoreland County, Pennsylvania, by adding 36,000 net acres and leveraging existing infrastructure for future development.
Key Highlights:
- Immediate Financial Impact:
- Expected 2025 daily production: 180-190 MMcfe/d.
- Projected 2025 EBITDA: $150-$160 million.
- Low operating costs: $0.16/Mcfe for acquired assets.
- Accretive to free cash flow per share.
- Strategic Benefits:
- Enhances CNX’s development of stacked Marcellus and Utica shale plays.
- Provides 8,600 acres of undeveloped Utica and 12,600 acres of undeveloped Marcellus shale.
- Integrated midstream infrastructure aligns with CNX’s low-cost operational strategy.
- Operational Synergies:
- Expands CNX’s strategic footprint, leveraging its expertise in deep Utica development.
- Anticipates additional value through synergies and optimized development opportunities.
CNX’s CEO, Nick Deiuliis, emphasized the alignment of the acquisition with the company’s growth strategy and its potential to unlock value in the Appalachian Basin. The deal is structured to maintain CNX’s financial flexibility while delivering immediate and long-term benefits to its core operations.
