PITTSBURGH, June 3, 2020 /PRNewswire/ -- CNX Resources
Corporation (NYSE: CNX) ("CNX" or the "company") today announced
that it intends to redeem $400
million (the "Called Notes") of its $823.795 million aggregate principal amount of
outstanding 5.875% senior notes due 2022 (CUSIP No. 20854P AL3)
(the "Notes").
The redemption date for the Called Notes is expected to be
June 29, 2020 (the "Redemption
Date"). The redemption price on the Redemption Date will equal 100%
of the principal amount of the Called Notes to be redeemed, plus
accrued and unpaid interest prior to, but not including, the
Redemption Date.
On May 29, 2020, Wells Fargo Bank,
National Association, as trustee and paying agent, distributed a
notice of redemption to all registered holders of the Notes.
Finance Update
Following the $400 million
redemption of the Called Notes, the company will have a remaining
aggregate principal balance of approximately $424 million and the company will have paid down
the aggregate principal amount of these notes by approximately
$472 million year-to-date.
The company continues to expect its balance sheet to improve,
and assuming current forward gas prices and that free cash flow
(FCF) generated by the company is used to reduce debt, the company
remains on track to have stand-alone E&P leverage drop to below
2.0x in 2021. Also, stand-alone annual interest expense in 2021 is
on track to be approximately 40% lower than it was in 2018, which
highlights how CNX's balance sheet and capital structure continues
to strengthen. The company's long-term FCF plan provides the
optionality to pay off all outstanding debt before its due
date.
Don Rush, executive vice
president and CFO commented, "CNX continues to showcase the
strength and depth of its asset base, cost structure, and financial
discipline by lowering its leverage ratio, net debt, and annual
interest expense even in these challenging times. Also, our 7-year
FCF plan provides the optionality to continue to pay off all
outstanding debt overtime should we choose to."
About CNX Resources Corporation
CNX Resources Corporation (NYSE: CNX) is one of the largest
independent natural gas exploration, development and production
companies, with operations centered in the major shale formations
of the Appalachian basin. The company deploys an organic growth
strategy focused on responsibly developing its resource base. As of
December 31, 2019, CNX had 8.4
trillion cubic feet equivalent of proved natural gas reserves. The
company is a member of the Standard & Poor's Midcap 400 Index.
Additional information may be found at www.cnx.com.
Cautionary Statements:
Various statements in this release, including those that express
a belief, expectation or intention, may be considered
forward-looking statements (as defined in Section 21E of the
Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act) that involve risks and uncertainties that could
cause actual results to differ materially from projected results.
Without limiting the generality of the foregoing, forward-looking
statements contained in this communication specifically include
statements regarding the proposed redemption and the completion of
such redemption and the company's plans to turn back online the
shut-in production volumes. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. The 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," or their negatives, or other similar
expressions, the statements which include those words are usually
forward-looking statements. When we describe 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. These risks, contingencies and uncertainties relate to,
among other matters, the risks and uncertainties set forth in the
"Risk Factors" section of CNX's Annual Report on Form 10-K for the
year ended December 31, 2019, and
Quarterly Report on Form 10-Q for the three months ended
March 31, 2020, each filed with the
Securities and Exchange Commission, and any subsequent reports
filed with the Securities and Exchange Commission.
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SOURCE CNX Resources Corporation