PITTSBURGH - CNX Resources Corporation (NYSE:CNX), an Appalachian-based natural gas company, today announced its intention to offer $400 million in senior notes due 2032 in a private placement to eligible purchasers. The notes will be backed by guarantees from CNX's restricted subsidiaries that also guarantee its revolving credit facility.
In conjunction with this offering, CNX has launched a tender offer to buy back any and all of its outstanding 7.250% senior notes due 2027. This tender offer is contingent upon the successful completion of the new notes offering. CNX also issued a conditional notice to redeem any 2027 notes not acquired through the tender offer.
The company aims to use the net proceeds from the sale of the new notes to fund the tender offer and redemption of the 2027 notes, as well as to repay borrowings under its revolving credit facility. Any remaining funds will be allocated for general corporate purposes.
The offering of the notes will target qualified institutional buyers and non-U.S. persons in compliance with Rule 144A under the Securities Act and Regulation S for transactions outside the United States. These notes have not been registered under the Securities Act of 1933 or any state securities laws and will not be offered or sold in the U.S. without registration or an applicable exemption from registration requirements.
CNX Resources, known for its ultra-low carbon intensity natural gas production, has a substantial asset base and a history of 160 years in the region. As of December 31, 2023, the company reported 8.74 trillion cubic feet equivalent of proved natural gas reserves.
The information in this article is based on a press release statement from CNX Resources Corporation.
InvestingPro Insights
As CNX Resources Corporation (NYSE:CNX) navigates the financial waters with its latest senior notes offering, the company's stock market metrics provide an intriguing backdrop. With a Market Cap of approximately $3.56 billion and a strikingly low P/E Ratio of 2.2, CNX stands out in the energy sector. This valuation becomes even more compelling when considering the adjusted P/E Ratio for the last twelve months as of Q4 2023, which sits at just 1.84. Such figures suggest that the company is trading at a discount relative to its earnings, a point of interest for value investors.
Despite a significant revenue decline over the last twelve months, with a drop of over 61%, CNX Resources has maintained a robust Gross Profit Margin of 63.87%. This resilience in profitability, coupled with the InvestingPro Tip that management has been aggressively buying back shares, paints a picture of a company with a confident outlook on its intrinsic value. Moreover, the company's commitment to repurchasing its stock may signal a belief in undervaluation by its leadership.
Investors considering CNX Resources should note that analysts have revised their earnings downwards for the upcoming period and anticipate a sales decline in the current year. However, CNX is still expected to remain profitable, as indicated by another InvestingPro Tip. For those interested in a deeper dive into CNX's financial health and future prospects, InvestingPro offers additional tips, providing a comprehensive analysis for informed decision-making. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for more insights like these. Currently, there are 9 additional InvestingPro Tips available for CNX Resources on InvestingPro.
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