CNX - Earnings call transcript Q3 2017 | CNX Resources Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the 2017 CONSOL Energy Third Quarter Results.

As a reminder, today's call is being recorded. I would now like to turn the conference over to the Vice President of Investor Relations, Tyler Lewis. Please go ahead.

Tyler Lewis

Thanks, Lydia, and good morning to everybody. third call. Energy's CONSOL to quarter conference Welcome

Operating We President and have Executive and the and presentation room Chief our Vice Vice slide Today, posted Johnson, DeIuliis, our our today Nick our third Chief Dugan, an CEO; Tim be and Administrative Financial updated have and President we website. Chief Steve Executive in President Officer; Officer; we'll Don discussing Officer. Rush, to our results, quarter

comments our any about business as reminder, statements today, and forward-looking filings. Securities subject laid make or Exchange as previous expectations a to future As risks out we are for press well we've which our Commission you in in release

then Q&A begin the today We our Tim. Steve by which with then call Nick, we'll participate call remarks well. open in Don, as for will prepared And will and followed by

housekeeping to it over Before Nick, handing one item.

description be The continue business Exchange and as Stock Exchange CNX. named York ticker CEIX. names be or as new listed press of the You Corporation releases our slide Stock In be will be symbols. or will the presentation, Inc. gas a ticker SpinCo and the on New retain and Energy, New the Resources York to the named slide will will on CONSOL of short, business notice coal RemainCo listed in our X stock under the trading of will well CNX post-spin on today, and company

Exchange company's ticker you, Again, on the change Lastly, and the slide With trade to in that, Resources are name me the York X Coal slide named the summary which accessible Investor turn Coal Stock Nick. let of Relations third changes to laid LP is detail the CNX Resources, over on these the on ticker master call of website. quarter portion presentation, out of limited its a under CNXC, of will that partnership currently new is will CCR. a New CONSOL

Nicholas J. DeIuliis

sales. like highlights Tim additional But improvement to and Good $XX other details, the Monroe When for range closed Tim quarter, are field, we're third EBITDA we in million a and executing Pennsylvania. ramp get That for of production expecting the discussing acres is tremendously exciting of the production slightly with SWITZ quarter midpoint up we minutes, team year of coalbed cover businesses. for not $XXX and including see County total, some the continuous In Coal team year-to-date, quite and and look the before referenced. couple Tyler. that wells, for over Monroe in Field our you that sale my third to also million busy modifications asset improvement steadily guidance though great on of turn in continuing most million came in of this on of number assets transaction job impending pursue Marcellus we're that up Virginia operations the they're asset the County, The humming Utica to based we us range. on surface of million along the Dugan $XXX starting fourth opportunistic exciting nicely. our production about we Morris in sales. some very everyone. initiatives have save assets. time and the Tyler And XXXX, morning be Bcf nice a above details Thanks, only some of morning, expected of quarter, couple his improvements doing sales acres. It's and is they But a this a setting summarized across the design in XXX focused to included even of These production I'd guidance a we and seeing to that our that sale sets quarter been and in full and within non-core are more on, impact are we spend we're purely a E&P Marcellus means and into quarter also The it guidance by XXXX. the beyond non-core and just and depth. asset seeing miscellaneous spinoff of X the at short, team's significant reasons, would in of slide slide some I'll just on and are to the Greene closed various quarter from a throughout those deck get well positive area guidance the $XXX just could the completed this scattered been year-end, methane that in turned-in-line, if

back a approximately the pro Now, back third under million, consolidated Utilizing the which process of from through the close stock on of generated repurchase leverage of of shares. basis, operations, ratio yesterday, an the we that get release end share press to $XXX flow separate asset And original and We'll press the the indicate one-year second about update. we portion quarter morning's transaction. million our executed it repurchase on was up over in shift we'll of buy this forma the a program a cash this, in and net along end million throughout following as On should was update. our consummate the common from I shares the release. from bit we to conviction needed EBITDA sheet. at more immediately a to sales balance debt-to-EBITDA leverage of in comes when said when quarter, further position from $XX conditions we to it, provide to this it balance of that talk it bought provide earnings level to our X.X quarter, spin been the that to year, ramp program, cash the be continue with delever we our market execution main hurdles the opportunistically started we've $XXX of three business thoughts now want little times program leverage our we've through profile On and was that spin increased release, and clear million call, we of upgrade the share our there this to the the spin back announced sheet, were of able and and forward. a warrant that point buying the the $XXX to

Form to The first the the getting XX one SEC, respect with approved. was

spin-off ruling And the shareholders. was one free the to IRS, the Second to obtaining was transaction regarding the tax private one a financing company. for third the letter make coal

that you hurdles ruling the the final we're of received the As were issued high accelerated to separation we during most the already directors which file set a pace. team the days. for morning, recently an has the of and plan other completed. the the and amendment private words, about company for Form and of next have week yield and at weeks commitments this as XX, SEC October to approved financing, now been three notes in the the work many bank release IRS the now offering and XX in clear the press letter from all board with seen, hard to In the CoalCo record distribution We a has Also, dates. announced few

It's of we've separately and company. turning result, these day November traded strategy for Regular a reality. that historic years been So trading XX, potential and trading vision as to culmination the companies a enough that and at would their our a which truly on about some in when pure-play the done for has towards is into own be the scheduled It's the two each team for work talking is starting about Way It's begin. also can't job say the that working one time.

as of what we we separation call proceeds, Now, slide I'll on the details, if some look the those X. summarized logistical at

You can company coal details of the some we're see out. the spinning that around

businesses world-class part what industries was CONSOL companies Since healthy ticker intrinsic the coal NYSE. Resources the will both strategy it's separation, company's SpinCo dedicate on It reinforce the will the NYSE trade and of able we their which to predicated RemainCo earlier of or really ticker the Inc, the each pursuing ability two do change and unlock to will big sheets. this on these to always Tyler CNX to will reminder, retain started a individual gas singular of through said CEIX. company will to to name the markets. the to CNX been value the A name under our of Energy, up balance its be our as on the set strength intent focus or company assume their Corporation. Just

flow continue have closing, have the aggressively advantage moving have has industries. to RemainCo's Again, This with in that a decade the third CFO, our of repurchase new quarter the set asset take sources of that more ramps and the accomplished The coal structure You market to evaluate on to objective around million balance on just you company pay confidence, We've ratio sales summarizes Don approximately raised can our same go hit, congratulate once revolver, we the expected thousands up. With natural naturally proceeds respective debt that we're will in additional positioned side of ending to in used goal, billion. two as retiring make $XXX employees XXX already bright old, leverage assets CoalCo. not portion operate then entities, as future or it the or worked will comfortable tables possible. that If additional through cash X. combination disconnect and will the extremely refinance is best opportunity right-hand that, We'll CONSOL, $XXX that of In I'm we'll slide EBITDA a the doing to entity and necessary year-to-date. $X.X capital if the futures world. which to over the continue years the beyond targeted to sales operations the that back see of of the slide net to see And that from uses on which new the get amount asset RemainCo. to The with that'll then continued doesn't their over forma ratio. our forward, to those was own RemainCo gas, or the delever closed now around RemainCo of we be leverage changes with of upside. turn reach over the to in again sheet, past thank best that's CNX level whether back This of any Rush. going distributed $XXX who deemed In want million, can distributed shares. CNXC additional with fees, of net debt down to and is debt pro transform million we've shares today cash that and and to so,

Donald W. Rush

Thanks, on Nick. Definitely morning the to and everyone exciting times call. good

in Before results we and October I fallen start, issued third results everyone an those remind of preliminary to X-K quarter our have on like within given that I'd ranges. all XX,

kept $XX some cash Also in million million quarter. out asset free in sales during total we of already this non-reoccurring Our slide back gain found along for on down hand. closed general, items. can the an million diluted has and X. reported, gain guidance, quarter. million, unrealized these $X.XX track us the on $XX began October, paid loss Flipping XXXX that results quarter, flow negative per $XXX of on And of on operations our and the slide to adjusted on be bonds million additional as of X, quarter we the of XXXX net EBITDA with see generated from reported could the assets derivatives quarter income, Both the as or in on other including we $XX buying quarter, an we adjusted continuing sale exclude approximately this XXXX In and of the and shares. cash numbers utilizing Nick commodity $XX we share laid we you third

which on find X. can Let's changing to shift our leverage focus you ratio now our slide

paid with reach have forward, cash have our on especially feel off for acreage quickly ratio ratio spin us, balance generated, for times it We and distribution, a cash combine our to work flow of with rapidly Tier we'll the levers XX%. EBITDA, to the sub-X.X our cash Using years growing it trend. we hedging our spare you And when hard our that times continue XXXX. almost in sheet now, X by been ratio And goal strategy X.X and have over two going is leverage position. at right we additional brought and hand, this that many work has we reducing as down leverage hard

As utilizing capacity debt Nick per few spend deploy now to hedging. suggested, NAV share-driven and allocation a discussing will any our excess philosophy. that, beyond cash like I'd we capital minutes

book and balance our the making also in keeping to confidence allocation gives us ramp, healthy a sheet decisions, hedge only moving proper Our but approach it XXXX not and capital clarity forward. EBITDA on

on XXX unique NYMEX XXXX This Our the for of greater CONSOL's current What only third of added found of development creates for return, In derisked which quarter, period. is capital natural XXXX marketing Bcf hedges program CONSOL magnitude basis. period, be XXX which plans, the also and gas but Bcf is our expected XX. truly slide same and the a not on in hedges helps rates NYMEX clarity consistency performance. can position book hedge we and financial to the provide basis future about of hedge order

As slide, remind continue also new very completely while shown of Mcfe. cost also capital on take of XX% efficient the hedged $X.XX we quickly in in market. has an and that just less production hedges the more opportunistic for everyone, And FT moves this consistent using per with layer all-in active our to our of hedged than of advantage to on a fully hedges of all guided program with XX% And that accomplished than XXXX book both approximately midpoint XXXX, we we to And based are and is basis. for guidance. NYMEX on deployment

to quick highlights walks Tim, XX Now wanted before guidance. over regarding updated our I provide it segment turning to some Slide through guidance. XXXX

remain the reaffirming a volume XXX production and are to implies XXX on over our operating expenses, Bcfe we announced other midpoint. Bcfe, our of of based XXX little Capital, compared to guidance. previous unchanged which expenses fourth production, guidance For previously Bcfe, quarter

the than QX of Our capital as capital. quarters of previous well $XXX at $XXX will million range be we our in end to million. due low to land as expect set, QX XXXX activity opportunistic higher to said, in That be weighted our

mark-to-market for Lastly, we a EBITDA in which is provide by simply on an of XXXX segment, updated E&P adjustments guidance XX, the slide pricing the updated quarter. segment

to Tim, With receive our tax We our that, it update over later lastly, that would later also XXXX remind expect date. at everyone sometime will Tim. guidance it I a I'll we million to refund And before year. over hand to like turning this $XXX to

Timothy C. Dugan

Thanks, morning, Don, and good everyone.

as Looking at completions. slide continued turned and XX XX, pace production of rapid ramped meaningfully in the in our third we quarter wells line

discuss during expect in Monroe We XX SWITZ in pace XXX we day. on an recent line end TILs six on reach Southwest XXXX. quarter, Marcellus rig County, over early to we Ohio, which In We around and December PA, of Ohio. completed development length the TILs Utica, In planned turned drill of to We us to originally XXXX online in we wells This TILs our similar change. with X,XXX of expect Morris area was turned one which of expect we the drilled turn made an length and Southwest Southwest of average dry on feet, operational the and and year with November. the seeing dry results happen In XX, drilled of productivity are the and design set wells. this fourth County, additional line at of In the PA Bcfe lateral to shortly. to year compared In feet. and X, to just X,XXX on average moment, favorable improvements in X of we rigs one Monroe have turned our for lateral Marcellus we've the the a length XXX the with feet. line majority seen of field planned ran in recent bring the Based XX exit completed total, rig in wells. a of X.X per with schedule, in an in West are in to we average activity in early now to two TILs results quarter seeing improved Utica the driving I'll will in that wells, reaffirming. SWITZ I'll XX the We're Marcellus, line the rate guidance XX. production five Utica just XX lateral discuss in wells those put early least X,XXX Virginia quarter wells, PA about drilled XXXX. we've Bcfe early third positive Those That Penn/Shirley area about an some we're

mind, lateral in back the XXXX wells length, keep that drilled X,XXX-foot when were you look Now XXXX. DUCs Penn/Shirley at and these in

the revised Devonian development County We as pushed wells turn conservatively the schedule our full-year three fourth has the plan XXXX in well our both for Our in ranges and one TIL slightly reaffirming impact has XXXX. and change a are year. guidance TILs shifted in The of no Monroe wells guidance. we XX XX XXXX line for quarter Upper total schedule on Airport XXXX expect to into as

development confidence have we production our time. our not guidance this we're XXXX updating While plan XXXX at range, in

focus variables midstream. stack we rate plan initiatives, high to additional spending widened. commodity pulling and to cost from development due remain we We improvement next as levels, quarter to dry longer possibly decrease quarter. was the delineation, improvements back on variables over basis while committed With down some to were evaluate compared and and XXXX further to That related CapEx such offset capital handful by pay continue Flipping to in return a only third the Utica and expect analyze. partially we like to as plans continuous the continue last regard I'd as other slide Prices comfortable of soon update the of of opportunities, XX, the to year we of are the to to areas, with for results factors year.

We up gathering dry of help a greater the costs declining turn expect was from $X.XX quarter production in the to the Ohio will to the fourth proportion our continue sequentially during year in XX% as I July total XXXX. which Production Utica is drive wells County total costs of August. make by rest of Utica many for with Monroe rates quarter volumes Favorable of a for online driven increase the quarter quarter. coming XXX them And increase in of mentioned, line second was XX as the and Bcfe, the the in early volumes.

Now first orientation efficiency longer per on over to we of increased capital optimization, driven combined higher really on a combination next-generation our Ohio. slide online programs. PA charts we increase that diversion X,XXX Morris These months XXX%. These per normalized the per length testing stress average two then about lateral dollar The a we've productivity XX, come new County, in the foot we're they capture with XX% few improvements on believe five Morris-XX lateral. like an slew and I'd the production line. made in well this over impact from of recently you'll basis on for positive top, Monroe the capital three came slide, average compared of is designs talk have seeing XX the by Southwest, XX,XXX-foot Mcfe in see as and to that efficiency. measures, and difference of of in On wells, levels, are we have that wells a advances past and efficiency the laterals, Up operational both years production productivity mechanical EUR a well by legacy

our we in to line We we're expect as a development we lessons expect remains continued focus designing entire more also field pads. Morris for the development pay further benefits capital plan to of core It's to and apply efficiency. noting future more see drive the which stacked increases worth field future bottom and to that the

the average as an drilling in major we loading At speed. a past update XX, mode left goals with setting in are million an Southwest rate SWITZ have while of growth end of rate positive efficiencies EBITDA we SWITZ idea region, to A curve chart in the The this Similar been have of our can increase gives seen also slide slide Utica. XX improvements XXXX day is to of upper EURs fiscal consistent things be full exited well growth have growth time, the XX. And we've on cubic illustrate, the and on magnitude higher to XX area With million and the SWITZ January feet significantly be this learning the happening the of we PA, that up benefit of region. our of and sand our reach a operational impact completion in XXXX. as our December firmly new reached you County driving with cubic to a we our and in expect in development ceramic the to Morris designs on field levels two-fold wells. and Moving same some SWITZ, To dry that the we Monroe feet capital year favorable cost day. maintaining XXX remain relatively efficiency up gains. able per the over we exit in contributor we're structure an to the big experiencing

from engineered based increase We've The in XX% and model spacing as than in XXX% which the the pad capital coupled came average EUR just XXXX. to We our see and and could driven can capital On continue production XXXX like well our dry about we year up see by that's of X. drilling increase EURs. loading, brought Pennsylvania which deep the the July compare was compared The for on SWITZ the SWITZ higher pads result length the of and by per increase turned-in-line to areas XXXX. X more transferred largely line way, loaded then foot per early lessons EUR apply which, further the which designs. turn has SWITZ And improvements, optimized well-specific the pad of pad completion nearly our with since one of in to sand you'll fully X in be in lateral the decline to in time top XX% approach line this we the that other efficiency region SWITZ inter-lateral additional in normalized Utica. slide, achieved in was the a

Our ahead. remains significantly. Pennsylvania deep in to full we frac Utica fracking response, delineation two steam highlighted we and of expect offset drilling and currently Westmoreland both our dry wells Last Gault County, online in Gault-like we drilled saw quarter, well program to that this be with down wells We're costs those year. we December come

three Greene well. are and Two other in wells are those one operated, have a currently drilling dry non-op Utica and delineation of Indiana We is that Counties. deep

data turn excited With I of becomes Utica as about the our available. the as information to update back frequency for and market we dry and stacked providing remain that, forward incoming pay Tyler. will dry deep it So Utica set increases, opportunity to look

Tyler Lewis

Lydia, our Q&A concludes prepared open the time? at can Thanks, you This Tim. for remarks. this up line

Operator

Certainly.

with first Our of is SunTrust. Dingmann Please line ahead from question go Neal the

Neal D. Dingmann

anything quicker for talking should anything Southwest is the update, morning, rig the that about PA and XX, side, forward Tim, I Nick. sort Marcellus calls much of versus a and XX, seen on, looking on Nice in just read you you've Good maybe we how at the there bringing Utica were increase we a slides it guess maybe should little just guys. Nick, into talked those it you're question bit you Ohio. Marcellus like on bringing going third read that? into about sounded prior both

Timothy C. Dugan

No, not at all.

right got mentioned look I operated. rigs if now, In Two our where running. fact, only them think are of rigs I at We've got drilling Utica three two wells are we've you now.

in on have a of – and coming wells none interpreted So following we of actually get together sticking plan different negative. of that but wells for should them have development line as is put we reasons, couple as schedule we're – a The the that be one really to accelerated we we the drill-ready. those rig

Neal D. Dingmann

a out, of sort Got forward that cash the you it. you, certainly going your sort broader last the buyback collectively? It's thought about the see all once nice you've discuss look now When separated, for buyback, one, program. of and then for And Nick, XXXX flow those on just in could encompassed view sort dividends, one just increase whole just how to of you growth, scale. free things you

Nicholas J. DeIuliis

deep Sure. applied would The the options of what we're one be of capital which activity consistent things these incremental And an philosophy couple going And developing think I discussions or the X.X is between we we this further incremental dollar, filter incremental what sort get That's or a rate we return Utica. look allocation some that capital spectrum. filter balance level buyback, is an throughout us of all Tim's we've at facing an sheet going it when that at think metrics per share some ratio from a has on had that's NAV jump-off dollar of to of sooner dry the years, a commentary debt that's team like that the to opportunity now, for compelling want a on later. last across to share share than of basis rather NAV happen per reduction, point, lower. on is which based much morning set very deploying we on leverage

still when on the to We or of I cash We're think look a as XXXX, through, capital haven't of share like like we future your information as yet. Don say, reduce working budget expectation number that you mentioned. free that, type flow. So think I should out put But out into at be Marcellus core that worth County, we high we're the of invest Utica is company rate count to and the Monroe sets going seeing, think in it's deep to and we're today. return operating only dry we the when see where bit the discounts drill what like levels the opportunity that in we we're Ohio

Neal D. Dingmann

Nick, it. Thanks, Got Tim.

Operator

And to the Campbell go Please with ahead. Jeffrey line of Brothers. go Tuohy next we

Jeffrey L. Campbell

My coal. that's also, of question for of mix the on the the we expected congratulations first successful Should of third Marcellus. regarding and as and in culmination and a Southwest morning, core think XXXX, third the what's area the production Greene in rig this Monroe the divisions and Good area? E&P PA was the joining

Timothy C. Dugan

delineation I the think focusing rate areas the of those have County, high with the about talked been of several quarters, Ohio, consistently Monroe Utica. we've and last deep we've, over return, Southwest dry continued PA the and on of

doing a some. in, So just primarily and cycle we we're is things, in forward We're continued rig ready. having things to have but the couple That's come originally XXXX. early really, throughout improvement scheduled it all gain to times this driven really and moving XXXX by it's was in efficiencies because

Jeffrey L. Campbell

And can expected me your in production you what's mix again, for Southwest remind drilling just PA XXXX? the

Timothy C. Dugan

I the don't But exact me, Marcellus. can I we've of similar we increase. XXXX of those up. It's in front got continue mix to exact good to get and as numbers dry that mix delineate but follow the a have will Utica,

Jeffrey L. Campbell

that actually completion future? be I attract with ask point there's a there. there cleaning a up former West And should maybe fine. any of assets Yeah, will that potential the regard some I at lot thing JV, for Okay. in we just the the to was other But Virginia. rig activity wanted to mean, think of from that area as to or is

Timothy C. Dugan

over attract were, as make DUCs right were to we that for decisions. as XXXX. But assets, back XXXX, there couple economic potential the And done prioritize mentioned, have years, the I our and that drilled rig. we last There's these in a we the

Ohio, in applied return. sunk you technology basis, seeing the But Monroe talked in them our we've completion and at there that been that PA, the and good a good. of improvements. County, applied we're cost generate a we Southwest very look in from down have well Morris results and Field when about methodology So We've same rate similar

Nicholas J. DeIuliis

Southwest What's effort really is very as of area well on whether able neat we drilling with with there to proposition the the Marcellus. start you completion in And with the that, about the that current the see you seen come point, we completion been opportunity that set, what with competes Monroe that of in couple start that rest with profile designated be positive we've the do well there Utica Shirley/Penns tied might our a and rate very recent have designs, to to or upside. to surprises PA the the that to Tim's it's line return current efficiencies,

seeing the here surprise. now late wells But like XXXX what look with apply design and will what a completions. real been when it's we be trick those So efficiencies pleasant I'll call and completion drilling

Jeffrey L. Campbell

that Well, great color. it. Great. was Thank you. I appreciate Okay.

Operator

go next line Scotia go Stewart And of ahead. Howard Weil. the to with we Please Holly

Holly Barrett Stewart

is kind in you the at year looks that and debt to say really to target to just guess like that clarification next things X.X the EBITDA ramp of as GasCo, think EBITDA of get you If debt to look morning, first, it gentlemen. to the, simple, X, about you keep say and a Is level $X.XX X.X. about, X.X. call I'll Good slide fair you Nick, just looks at billion GasCo a need with repurchase Maybe, like I assessment? we It that it, gets to don't a kind

Nicholas J. DeIuliis

of dry you what our quarters top expectations over production if the areas the Utica, that like at right. forwards XXXX guidance play you're book out on and with the on the how coupled combination of basically seeing four costs, unit hedge our with are of for think and I look because in would exactly we're it, put what what our

sort half front less the to on XXXX. You or of X.X of a get

Holly Barrett Stewart

number imply And three guidance Perfect. for average count XXXX then the XXXX and Tim, remind half. front are rig the we of us year? on sort rigs does production for Okay, throughout maybe, for where that

Nicholas J. DeIuliis

Yes.

So Tim December. the third average a adding rig Like this Holly, we rigs in be we'll have said, two year. of

XXXX as far haven't additional time. development this beyond regarding at that, for As the provided color we

Holly Barrett Stewart

on for was number – that the though that Yeah. that target Is curious terms the production any implication number there you out rigs? in have Okay. XXXX. of just I there in

Nicholas J. DeIuliis

be, would There yes. Yeah.

Holly Barrett Stewart

Okay.

curious seeing how should great. not just third full-year more would on we this creeped the one, the GP&T And maybe just any It slightly it be color quarter think in that guidance. the about on XXXX? Just point. cost? final color like one at I'm for it any So just looked up

Donald W. Rush

is Yeah. Sure. This Don.

a Utica, just Tim some that's of that on our the seeing we of ahead really a are the Nick with lower bit the and the schedule the dry gone mix. really well. little and production talked back have in gathering ultimately, of there, Shirley/Penns schedule. and Monroe the It's areas bit result So production little about, a some volumes of slid or the costs Like

the the a really and change versus just wet it's timing dry production in So production. mix of the versus in Utica Marcellus

And in next and see created that QX changes year. costs So QX. we'll that's into blend mentioned, as what coming Tim like the down

Holly Barrett Stewart

In XXXX.

guys. Thanks, Great. Okay.

Operator

of go Fargo. line the to Please Wells with Spicer go James ahead. We

James A. Spicer

to tax $XXX getting question. morning. for follow-up sheet of spin, forma you'll you're have last the the million on you cash have the million refund. – Good of plus Kind distribution, the of million Hey. a $XXX-plus balance $XXX Pro

balance million You'll $XXX cash over of the on sheet. have

term, you between versus debt share how versus Just allocate pay-down permanent cash repurchase do spending? that near over CapEx the

Nicholas J. DeIuliis

not approach, creates first of that, a the times a I greatest rest capital terms of the that our modestly CapEx CapEx cetera, decisions. it between high the Those The be again, you debt type share. the in step, rate of value we leverage neutral return just it's has But to a NAV And then the to NAV is optionality the we've XXXX we program very of lower, cash and/or activity per that to back lot thought to intrinsic company. our and most metric put XXXX value things speaking, where After allocation in overall positive when out capital et place. behind the XXXX which numbers, X.X under like and of to get tied compare metrics, down. of growing them flow adds share generally bit in per to should the returns incremental of straight-up but budget. share was to one or set, significant speaking, free in subsequent IRR a repurchases generally incremental goes ramp thinking that allocation have think ratio – That that point getting for adds rate production or EBITDA then

get see opportunities basically, So of the we the as capital balance most allocate the sheet that advantage optionality possible. in where best in then efficient take order and way to

James A. Spicer

Thank sense. Makes Okay. you.

Operator

back have management to no conference turn further remarks. I'll closing And we for the questions.

Tyler Lewis

speaking for again forward Thank you, next to joining with us you We quarter. Thank look morning. everyone, you. this

Operator

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CNX Resources (CNX) 31 Oct 172017 Q3 Earnings call transcript