CNX Resources Corporation Q4 FY2025 earnings call

Alan Shepard acknowledged the hard work of the CNX team and the natural gas industry during cold weather events. Everett Good discussed that first half CapEx is about 60% of the year's total, with production flat throughout the year but flexibility in the second half for potential frac activity. On the RMG business line, the PA tier one rec market has been stable since last spring, with long-term outlook tied to renewables standards tightening. For 45Z, current run rate is around $30 million annually. Alan Shepard mentioned the Utica program timing is due to TILs from last year coming online and Southwest PA inventory, with plans to complete five Utica laterals in 2026. AutoSet technology is adopted for flowbacks, providing cost savings, etc., with potential uptick in 2026 but no material financial impact yet. Coal mine methane volumes are tied to Virginia metallurgical mine's mining activity, with a long life of mine. Everett Good talked about hedging strategy, expecting to be ~80% hedged by 2027, currently over 60% hedged.

First half CapEx is 60% of year's total, production flat, with flexibility in second half for potential frac activity if conditions warrant. On 45Z, current run rate is ~$30 million annually, awaiting final guidance adjustments. Expectation to be ~80% hedged by 2027, currently over 60% hedged. Not including short-term spot activity in CapEx guidance, waiting for long-term demand projects like power and AI to drive activity.

Forward-looking statements subject to various risks and uncertainties detailed in SEC filings. Volatility in gas prices affecting CapEx and production decisions. Uncertainty in renewables market standards impacting RMG pricing. Delays in infrastructure projects affecting gas movement and demand.

Q: Commentary on front half weighted capital until program and how it translates to flat production profile?

A: Generally, first half CapEx is about 60% of the year's total, and production is pretty flat throughout the year, with flexibility in the second half to potentially accelerate frac activity if conditions warrant.

Q: Outlook on RMG business line, AEC pricing, and 45Z?

A: PA tier one rec market has been stable since last spring, long-term outlook tied to renewables standards tightening; 45Z has a run rate of about $30 million annually with initial proposed guidance.

Q: Thoughts on Utica program 2026?

A: It's a timing issue with TILs from last year coming online, Southwest PA inventory, and plans to complete five Utica laterals in 2026.

Q: Impact of weather on operations?

A: Team prepared, no expected disruptions to operations as numbers include any expected disruptions.

Q: Update on AutoSet and other tech businesses?

A: AutoSet is adopted for flowbacks, providing cost savings, etc., with potential uptick in 2026 but no material financial impact yet; other tech businesses have no material updates.

Q: CapEx guidance and frac crew consideration?

A: Uptick in activity not included in base CapEx ranges, waiting for long-term demand projects to incentivize frac activity.

Q: Utica wells cost and performance?

A: Average Utica cost is about $1,700 per foot, wells are in line with expected performance, and spacing tests are ongoing.

Q: Coal mine methane volumes and visibility?

A: Volumes tied to mining activity at Virginia metallurgical mine, with a life of mine over 20 years.

Q: Hedging strategy and 2027 expectation?

A: Expect to be ~80% hedged by 2027, currently over 60% hedged, and will dig into the rest of the hedge book throughout 2026.