CNX - Earnings call transcript Q4 2024 | CNX Resources Corporation

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Operator

Good morning, and welcome to the CNX Resources Fourth Quarter 2024 Q&A Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Tyler Lewis, Vice President of Investor Relations. Please go ahead.

Tyler Lewis

Thank you, and good morning, everybody. Quarter Call. Fourth CNX's to Q&A Conference Welcome fourth Today, fourth a titled CNX to quarter be E&P and answering data, and our as Results and XQ data to can our questions related Information be detailed presentation Resources. XXXX results. This slide reconciliations, Relations financial an Earnings we earnings quarterly document of website release such will Investor updated quarter non-GAAP morning, which statements we Supplemental posted in found Investor our quarter, Financial exclusively to Chief call posted various website subject company's everyone the our to include a Q&A our Behl, President the questions Navneet we statements, Also, Srivastava, be read Ravi for the including Shepard, for call Operating remarks are Relations uncertainties. today and and made our for call, Alan New are to that Group. Please our of had forward-looking answers risks during used prepared me and today will this as hope Nick we CEO; Chief Q&A. With Technologies President Officer; for Deiuliis, chance remarks note, to the Officer; which our as statements our actual materially performance, are future of a and result not many differ may These results guarantees factors. of thank CNX's uncertainties for to and that, risks with of discussion joining A contained those business factors us morning. in Securities Exchange you related release Commission today. With the issued in and is this the filings its and in up the Q&A open operator, this call for can please you And at time.

Operator

Our Gabe with Instructions] Daoud TD Cowen. [Operator question today first from comes

Gabriel Daoud

and as value. with that guess move credit through you the in thought your put CMM even I first whether Technologies to would intensity guidance of Would specifically counterfactual, walk New still and I you with us on able I to of partnership forward? be flaring carbon KeyState existing position a maximum the start the recognize was hoping will XXV. interpretation to

So would that. a on bit love, understanding guess, I more

Ravi Srivastava

is for Thanks Ravi. the question. This Yes.

so a we'll address quite the that few one be after had layers question other. to them in you think I So trying

federal we're recognition as carbon to that pretty like the So sectors. potential and of CMM's -- of range methane decarbonize all, intensity validate ] first capture low hydrogen of a for us an [ of feedstock production, for for excited about coal important kind and mine route hydro-based provides a

this was and in coal recognition validated have power with methane So inclusion, successfully of hydrogen premium restrictions have the the that were IRA pretty the are way introduced the But while XXV good. of we a inconsistent the about the we excited was validation now [ ] manufacturing we're in that out, of came what labs the national done first the the which by quite and CMM intent rules sector. But nature and assessment CMM few the believe within within there scientific -- then and production productive rules, our previously mine in with was. of that we were

scale moving on kind clarity make with looking we're be this So decisions clarity these in participation of hydrogen to future, rules necessary going new projects to ensure forward some the to investment to is And we'll there going have our improve opportunity of the an of forward, to on kind economy. like there's contingent administration, and these forward. rules the

Gabriel Daoud

it. Got it. Got Okay.

need So more moving clarity before on anything. forward

Okay.

would half, the with 'XX, maybe gears bit just the about the talk second I of half being first capital in the first declines to or a Okay. And some to XXXX. switch little obviously, E&P Could then second heavily as weighted being -- half side. half expect follow-up, I'll a guess into you

'XX? more helpful. need to would activity additional reaccelerating be see to on any capital in commentary additional there or So maybe Any you spend of clarity timing what

Alan Shepard

Yes.

] flat finalize production 'XX. to [ of position where the The primarily projected more want kind to this and Alan. you The we where see set going If way weighted and at levels storage storage it's or of this assessment. But upfront we the think go activity stay we to production QX. that We need it's So make the about wait in and whole set, we'll an create be, but need too to We through it, industry coming is are basically bring activity to -- point. winter. accelerate out tell is us activity see high prices coming up what do see could early flexibility. higher, then some some volumes,

Operator

Next from JPMorgan. question is Zach Parham with

Zachary Parham

very Apex XXXX assets. seems some forward? of efficient I you wanted and if just Could up to on be would some production budget. be the going level DUCs the mean run color to were from what give hold rate you going on I this seems it benefiting spending to follow the on flat us

Alan Shepard

Yes.

X see to of things You're at decline So combined right? sub-XXX. driving beginning that, run Utica we low kind the I a starting think year. our from the the about CPA last development base. rate, is PDP talked this with The there's of of And efficiencies kind goal,

completed on flow assets turn you need Apex, to upcoming in. here. close. and could online that that those going hold comfortable kind Basically respect below All back them the do we the had we to we're years. With come So of the those to wells is TILs that post legacy XXX for were are

are and Ultimately, comment do be set pricing we our goes see, market levels capital in later asset that allocation the that the by production part position, about with we'll to going as that of process. back to on year earlier what

Zachary Parham

Gabe's Got question. And follow up it. I wanted on to

attributes really you could think the in about business be from potential You Just environmental CMM spoke about could trying credits other next for business. what future? this the but to pathways generate talk about to XXV,

Ravi Srivastava

Yes.

mine as hydrogen environmental ATS-type program qualification an and new production. the pricing ] for manufacturing like now So been deal its in -- generation with talking -- with successfully this a like -- validated advantage clear like a we power premium sector in where in source, coal we've the the about and economic [ through energy XXV and in with methane have offers

manufacturing, So from we're sectors, validation kind going centers, continue power these of lot opportunities. recognition And a these open of in get other data generation, all. it's target we the to of monetization programs to different that up whether

So we driving we'll information updates share as have keep more more and on share we'll to efforts, those that front.

Operator

next question ROTH. The is Leo Mariani with from

Leo Mariani

I a dive the here. little of in Tech just more wanted to numbers to some bit New

'XX $XX a it fourth at robust looked free flow like cash of So saw million. quarter very

you we're business that you in additionally, little provide in strength And contribution around the in kind 'XX? this flow? have then additive real a just bit you are free the as XXXX, be down cash we color or into those given of that XQ? And that XXXX cash will yet could that, Maybe from to flow here business little to say ahead guys So free guiding New a Tech looking saw just seemingly, businesses expect be any you service do the oilfield to CNG/LNG seen year.

Ravi Srivastava

Yes.

this So again. is Ravi

numbers volumes are if into quarter QX, We fourth in got lower primarily of remember, we of volume. because cash a the QX. you pushed -- had some the had kind flow lower So number a

of QX of volume kind are the numbers more itself. -- in attributes QX QX in itself monetization environmental from benefiting So

I we some rate number to XX basis, megawatt to been the in value a would and consistent, of volume is into in high. But and per run January, kind kind is ATS able to that, think to $XX that December, staying which in in of have Bcf, be monetize be recognition range. able on XX of hour we'll the monetized the the program volumes is $XX QX were still that that volume got overall the to So say, kind bring allowed

we So but $XX range. driver in segment, some may achieve CNG some what the still million-ish free going per to year out benefits in -- that's There and driver they're because that's for largely, be benefits that objectives mean wanted I I which to that. the deployed like cost get that be the of and that and is. The and emission of efficiencies kind fully and comes phase. we're on those AutoSep and footprint, ebbs flows early to commercialization think reduction seeing with volumes of and cash we're AutoSep primary -- when monetized, CNX's is safety the operational the business, flow

on we'll that to some And we CNX's as that footprint, see 'XX. expect that share expansion But more materializes, information. seeing we're So beyond of in front.

Leo Mariani

Okay. hopefully, at favorable look maybe to, That's referred in, come helpful. new And the folks rule you fresh then think here, interpretation some in make obviously, your comments, administration more has take changes. a which I the might and XXV

of folks the have have you of I coal front? short legislation terms new there well. helpful how of I weeks folks? we red the sweep that been for into be any of time, the kind Has how taken obviously, XXQ Clearly, more administration Trump on can it's Just elections you just in they're of on here. has would Do happened maybe with had period the viewing couple guess, over. you a kind this inclined potential there since the be been, methane as translate abatement opportunities at administration that administration pending signal any a and mean, mine to read just that overall, the

Ravi Srivastava

I early mean too economic a benefits. would and time. methane environmental point lot at of say inherent I in coal mean I mine this it's social has

going And and So the with we're to the that a that, continue we're for we will stay their in like the it. markets opportunities these pursue But in for sectors going and due to advocate meantime, in But course. other pathways. make monetization to and case XXQ continue to I they're it's other going folks. political to run think processes right connected

Leo Mariani

then on just some And to helpful. real just quick. jumping over comments of that's No, Okay. your production

of to I sort kind make of wanted them. sure Just understood

it goal I no volumes the maybe right, half sounds declines you'll Apex which if as some of to TILs see I some is 'XX you're really, flat. happen for But kind to second year. the kind keep expect your online, here So of of bringing into the to deferred base modest on you like, the we capital. production maybe heard will little volumes know of get

props to late in modest like in this the rest production sure 'XX. more though, and sort out make that if then And term, heard might the in just as see favorable is the near the few there's the it head of second year So decent conditions the kind of up maybe with year more goal a the market are kind you of right. but in wells also I winter chance flatten that a into of wanted reasonable maybe you that I sounded a half. we you decline then, end to have gas the

Alan Shepard

we the that's the in should volumes do the Yes, second we what about suggest pricing of -- if kind capital with to optionality of or talking half to provided you're year accelerate that. right. volumes guidance allocation speaks We're the and increase methodology the

Operator

is The from with question next Truist. Bert Donnes

Bertrand Donnes

the your mine front, want coal make just methane I sure to I On correctly. understood comments

correct? You're have financial overly cleared would for spend? if are the clarity maybe the enough. clarified be rules. then levels is that the you'd on were CapEx there that are incentives restrictive any that if rules Is only And capital associated looking But positively those up, to

Ravi Srivastava

Bert, methods There's and which of to of rules I like think to going lack the book there it's clarity on facilities restricted some qualify. the lot nature claim -- there's a the unpack. it's and and

have capital kind I would idea what investments a be I forward things, the little made. once to understanding those all and of like better in of a we where investments And of how things better those think shake it's provide think capital time are how out. will of to the take going figure bit those plan all of out that a terms --

of applications in to just time point little some this lack from So clarity and and in. the kind comes then how more of too clarifications of the a fixed Treasury other bit figure on time, going at some DOE rules there's take get and of to out of it's how much the

So too time in this on early to that. at point comment

Bertrand Donnes

Okay.

make Just to sure.

room could to the but spending there level I amount is some operations? have capital, increase some revenue, by maybe then if So accelerate of you guess activity were clarified would through rules some that of level there's positively, you

Nicholas DeIuliis

So this is Nick.

different work a Just and benefits got step. be industries. premium established Where at we're level. We've to pricing tied back it's with issued and Pennsylvania. We're mine with like hydrogen to as up all the the generation and a the we've to APS to XXV the a portfolio. now to got sector where that got it coal methane blend programs standards different guidance manufacturing fuel avenues power We've recently clear climate optimize the sort with of in those stock continuing economy

market include pursuing and fugitive to industry and methane XXQ the and is recognizing some of that with that AI like in regard capture. things things of generation feed to the opportunities benefits involve some power XXV, And going will transactions and it to like

So and We'll a bigger wait rules with see respect it's early of too lands. part to say. it to puzzle, programs, these individual it's where to and and have

Bertrand Donnes

then just would Or game bit using now? little be maybe the in a some to And we a may maybe instead macro? just perfect. we Or Were thoughts a there? preserve didn't want buybacks the That's the question the on it the it due step was Apex on any is to QX of buyback 'XX. other just surprised I half activity. periods in accelerate there blackout or on view should second capital of of you if be

Alan Shepard

these on think about don't Yes, doesn't we tactics about we talked It before. I -- calls. talk

continuous process. there of to refer just a period capital we a consideration. think is -- as blackout allocation run part we obviously, do And that I back

Operator

Scialla is question Michael with next Stephens. from The

Michael Scialla

I the Apex acquisition. on ask wanted to

there You X,XXX talked net Utica. of acres about undeveloped

XX,XXX Just developed that acreage there. for little is acquisition Utica Just the it geology? wondering, a a portion was with of more or looking by color on large being acres, bit limited that

Alan Shepard

Yes.

hasn't developable is Utica and the on that footprint, asset just particular development that there's on view any yet that been Our Utica. across there

Michael Scialla

come does -- upside So I'm just do looking there how to would X,XXX? to that guess that you that imply at number? X,XXX the there's I

Alan Shepard

on Yes. on what we lease. at on of that X,XXX rights acquisition, The are the disclosed had That's you're controlled in the terms saying Utica Utica? they acquisition. Those their

Michael Scialla

Got you.

right XX. to didn't all have they So

sorry. And XX,XXX, that line turned all wells are those that in Marcellus going X those Got of or are those acreage, it. any be of to Okay. on Utica?

Alan Shepard

Those are all Marcellus.

Michael Scialla

just per And in X,XXX you wells? update on Bcf more still of foot foot lateral per and cost one lateral what with Okay. Are Utica. thinking any kind you're of on X those seeing

Navneet Behl

in well, The are X,XXX for correct. last production wells gave holding like they we and are the line that's quarter, [indiscernible] expected [indiscernible] Mike, to, of we like Yes, guidance that BPX they feet.

Michael Scialla

cost on you the anything And there? say can side

Alan Shepard

total say, I these just that target CapEx, we're we're would you're part looking the number see. the in to efficiency capital of delivering at the seeing numbers wells

that, where there's and side on I on continue to of little going work to but bit to with and we're capital very at on efficiency think room the improve, we're the wells. we're a drilling pleased those

Operator

Hungess Noah Bank of question next The with America. from is

Noah Hungness

the guess here is Nick also the on and team, I question first Utica.

any drill just could new locations? guys If give spacing you latest thoughts on for

Navneet Behl

Nav. I Yes, that. can It's do

spacing spacing, the wells, with on BPX at X,XXX spacing, few so then up feet. and at So And are they we far have foot the coming X,XXX more that's in line. tests a

be So we will about able later this year. that to talk

Noah Hungness

And has 'XX. about question second been? given we think cash my taxes for is strip then that just can it. Appreciate How how volatile on

Alan Shepard

Yes.

we're billion of cash So taxpayer a until de kind flow. still we $X minimis reach cumulative of a cash free

'XX, cash to So we late of tax out 'XX. we see don't material get kind until early payments

Operator

The next from TPH. Roberts is with question Jacob

Jacob Roberts

any that comment other relative to to -- into you mine thinking smaller the you could volumes the insight Buchanan any it capturing wanted be might volumes and mine insight there, like those be those you frame into methane give that time opportunities. to on how the the mines of specific there of there guys the mining some appears coal plans. just Can development we limitations And it comment about? referenced guys almost capturing have development are should is seems may but much on about that all at volumes? may touch plans And drainage I anticipated complex, gas be present on

Ravi Srivastava

Yes.

and well. work or of mine have primarily based this try them. mean with plans Our in Northern I best have information the have to and to volumes are footprint expectations we our annual at an operations some their We operators Appalachian capture guidance the mine we on closely in as what point understanding at we Buchanan from time. are long-term our provide

Jacob Roberts

Okay. on And marketing. is second then one my

percentages and the for what points? year-over-year guys the moment markets change the through looking shift could driving is how those what curious that at seeing are in the year? Just various sales and you in Maybe the

Alan Shepard

basis, with right? FT have. on daily portfolio, is we We're continually Marketing end which markets a optimizing Yes. our

you're So year-to-year, just any side. optimization -- quarter-to-quarter marketing variation seeing or it's there's the on

new of that fundamentally change the would We haven't contracts like sort split. any that, or into FT entered anything market

Operator

to over our I closing back conference question-and-answer This concludes to session. would Lewis the turn for any like Tyler remarks.

Tyler Lewis

again Thank this look quarter. we you morning. if to to again any everyone questions. additional speaking anyone joining us you. Please with free has Otherwise, for feel Thank reach out next forward

Operator

The conference attending today's has presentation. you concluded. now Thank for

You disconnect. may now

CNX Resources (CNX) 30 Jan 252024 Q4 Earnings call transcript