2. CNX Resources Corporation (NYSE:CNX)
Hawkins’ Stake Value: $384.7 million
Percentage of Mason Hawkins’ 13F Portfolio: 7.73%
Number of Hedge Fund Holders: 30
CNX Resources Corporation (NYSE:CNX) is a natural gas exploration and production company based in Pennsylvania. Ranked second on the list of the top 10 stocks in Mason Hawkins’ portfolio, CNX Resources Corporation (NYSE:CNX) has a market capitalization of $2.76 billion.
On July 29, CNX Resources Corporation (NYSE:CNX) issued its quarterly earnings report for the second quarter of 2021, with a reported EPS of $0.18, missing estimates by $0.08. The company also reported revenues of $-127.21 million, falling short of the estimated revenues by $522.06 million.
Mason Hawkins’ hedge fund holds more than 28 million shares of CNX Resources Corporation (NYSE:CNX), worth $384.7 million and representing 7.73% of the fund’s total portfolio value. At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $539.9 million in CNX Resources Corporation (NYSE:CNX), up from 23 in the preceding quarter worth $607 million.
On August 27, BMO Capital analyst Phillip Jungwirth downgraded CNX Resources Corporation (NYSE:CNX) to Market Perform from Outperform, with a price target of $13, down from $15.
In its Q1 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and CNX Resources Corporation (NYSE:CNX) was one of them. Here is what the fund said:
“CNX Resources (36%, 1.86%), the Appalachian natural gas company, was another top contributor. The company earned $85 million FCF in the fourth quarter and used the profits to pay down debt and repurchase shares at a 7% annualized pace. 2021 and 2022 production is hedged at solid prices, and the company has guided to a growing $1.90 per share FCF coupon in the near term. The stock trades under 8x FCF before adjusting for farther off undeveloped acreage and the company’s pipeline infrastructure. CNX is the lowest-cost producer in the region and its PDP decline rate continues to improve, meaning it can maintain or grow future production without spending heavily. Encouragingly, CNX announced meaningful progress in its ESG initiatives in the quarter, including its commitment to transparent reporting through its adoption of Climate-Related Financial Disclosure (TCFD) and the Sustainability Accounting Standards Board (SASB) disclosure standards. We have engaged with CNX leadership on this topic over the last several years and have encouraged them to commit to these leading industry standard disclosure frameworks. Additionally, the company formed a dedicated working group focused on future emissions reduction and approved a performance measure program that ties executive compensation to meeting targeted methane emissions reduction thresholds over a three-year period.”
