CNX Resources Corp. closed its approximately $505 million cash deal for Carnelian Energy Capital Management-backed Apex Energy II’s upstream and midstream Appalachia assets, according to a Jan. 27 press release. 

The bolt-on, initially announced Dec. 5, expands CNX’s stacked Marcellus and Utica undeveloped leaseholds, the company said.

CNX will acquire Apex’s 36,000 total net acres (94% held) in Westmoreland County, Pennsylvania, the company said Dec. 5.

The deal also includes 21,000 undeveloped acres—8,600 acres in the Utica Shale and 12,600 in the Marcellus Shale, CNX said.

CNX said it expects the deal to be “immediately accretive to CNX's key metric of free cash flow per share.”

For 2025, CNX previously said it expects daily 2025 production to average 180 MMcfe/d to 190 MMcfe/d and projected its 2025 EBITDA at between $150 million to $160 million. It also prices its 2025 operating costs at $0.16/Mcfe on the acquired assets.

The transaction was funded through CNX’s secured credit facility.

"We look forward to demonstrating the unique CNX approach to operations and community relations to these new communities within the Apex footprint,” said CNX President and CEO Nick Deiuliis. “We place a high priority on closely collaborating with our operating communities, local officials, and directly with residents to understand their needs and concerns.”

Comments