CNX Resources: High Short Interest Overshadowed By Good Financial Management
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Robert F. Abbott1.53K FollowersFollow5ShareSavePlay(15min)CommentsSummaryCNX Resources is rated a Buy, with robust free cash flow and management’s proven financial acumen outweighing high short interest and leverage concerns.Short interest in CNX stands at 20.31%, far above industry and index peers, driven by hedging practices and elevated debt rather than sector-wide factors.Full-year 2025 guidance calls for 13% production growth, $1.2–$1.225B EBITDAX, $475–$500M capex, and $640M free cash flow at $3.33/MMBtu NYMEX pricing.I set a one-year price target of $48.34, reflecting expected EPS growth, despite pulling back from Strong Buy due to macroeconomic and demand uncertainties. CreativeNature_nl/iStock via Getty Images Investment Thesis The share price of CNX Resources Corporation (CNX) has risen sharply in the past four months, and it released a reasonable earnings report in October. So, why does this Appalachian gas producer have suchThis article was written byRobert F. Abbott1.53K FollowersFollowRobert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canada, Robert has earned Bachelor of Arts and Master of Business Administration (MBA) degrees.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.