CNX Resources (CNX) 27 Jul 232023 Q2 Earnings call transcript

Good morning, and welcome to the CNX Resources Second Quarter 2023 Earnings 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.

Thank you, and good morning to everybody. quarter second CNX's to conference call. Welcome

our President in and CEO; have Behl, will Chief Ravi be the Today, second Technologies data, of Financial morning, room posted President website our our we and are Srivastava, and Officer; data results. such release DeIuliis, second quarter an discussing updated earnings Nick titled reconciliations document Operating our slide Alan we Navneet a New Supplemental Group. non-GAAP presentation today, quarterly in Officer; to financial E&P We XQ our posted Results of and quarter Shepard, to This our website. CNX Also Chief our detailed Earnings statements as XXXX Resources. Information

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

call followed where by participate our for remarks Q&A well. today Ravi prepared and begin open call will Alan, will we as by We the with Nav will and Nick then

turn call With me the let over Nick. to that, you,

Tyler, morning, and Thanks, everybody. good

long-term and our continued quarter flow presented we XXXX, back cash XXXX. quarter execution market the in generation point also It Second of X-year of of free consecutive XXth plan that represents marks that our halfway strategy. the the on to the

plan, repurchased reduced into now approximately in XX% generated the outstanding years we've by million, our shares. debt outstanding We So almost and cash of X.X flow. $X.X billion $XXX free we

and and unfolded. macro as have original has been passed plan twists there the have from certainly Now turns events time

owners. we've It generate core of on it's to has, pace our share our to sustainable to and been in unwavering the model. are principles long-term for continue So and going value business significant exceed our we goals,

economic energy some cornerstones CNX as outlook our brighter. cyclical collective been natural currently additionally, has outlook the for industry And that is and of industry long-term being future, the never challenges for the and experiencing, that near-term the despite long-term gas

is During continued creation. key the we areas of quarter, to referenced for value on long-term what the X I focus share

first, The asset our efficient base. and of development the we've extensive got execution

Second, the substantial not allocating new cash a intrinsic then clinically discount in that And their progress our we flow our a that we've that growth unit. significant business but to least, to technologies shares free last of got believe amount at prices value. continued represent acquire of

the efficiency Operationally, talking on the to they're in level the operations and some establishes built this, impact everything course, team has instead a new effort, from horizons, directly. that's about of But intensity. completions, and that, Marcellus of me our and fronts Nav, both That's Utica leader momentum timing have going you serious Drilling let's to of tell all across capital firing all TIL and impressive the cylinders. for effectively true XXXX.

So I'll over a minutes it few turn for to Nav.

and everyone. morning, Thanks, Nick, good

operational mentioned, has supports been model. several accomplishments establish Nick quarter. free generation foundational in important team because is drives level flow our cash our the of a team The operational As this new that business efficiency, sustainable it the able had to

to schedule. we ahead days One key turned online able that of achievements compress pad XX and was the X-well a of times get were cycle

in where in we efficiency improvements timing increase wells will by per completion driven additional a feet of acceleration achieved the that come This last to completed XX% later accelerated also X TIL day We mainly compared lateral Marcellus online year. was and quarter. the activities

decreased cost per by We also foot X%. completion

our long-term XX,XXX CPA lateral this accomplishment a length successfully the in of its across team and TD-ed [ supports great quarter is This ended, ] Mamont with feet of of and well XX,XXX Utica plan. the drilling longest feet. development deepest total the vertical the well and over the after Shortly prolific depth area acreage a

In length to have of drilled, successfully lateral flowing feet we other wells with over completed X lessons XX,XXX these are long and our a wells. each. drilled Marcellus apply drilling currently area, We in back PA, operations continued we where SWPA Utica to also Southwest X

progress full year to well in X.X-rig crew plan, our positioned X we we As frac be through XXXX. volumes will grow

the which to run we the During quarter, released second continued recently. rig, horizontal was

As and cadence spend such, remainder crew of this will rig accordingly. frac the primarily X the decline capital year's be activity will X and

making expect detail activity this full to maintain puts moving and the in capital shortly, The growing want production note with to I operations. more XXXX volumes lower go we investments on Alan will target our into X intensity overall forward. guidance beyond, but important to our on into us we a year Moving lower. position significant in are make levels year

of our want owning of well changes producer we being any gas in is key X to to are our activity to reiterate advantages of that year. flexibility and second half low-cost the midstream I respond in positioned adjust may set that the the to the pricing assets. This material unfold

can even economics well attractive, midstream not uneconomic we fixed Our beholden in arrangements pricing environments to cost decisions. lower lead that high and to are remain

an our and hard target One the improvement to operational XXXX emissions modifications of to In on XXXX. for results, initiatives, XX,XXX reduce production note our work as focus team's December on in driving in by operations ESG metric compared continuous tons positioning equivalent summary, December I'm we CNX with are diligence is on team's COX basin. leader continued proud the and outstanding equipment

over it turn Nick. me to let Now

Nav. Thanks, That's exciting. Yes.

this in likely cash in as let now call, if and pivot flow touch year second quarter. unit the exciting me I business were So say cash a to part we it's on may, into And his to this more Alan and our beyond. to outlook mentioned positive has going be suffice expecting the quarter's on that it remarks, is last flow started very and going technologies. the materially new I in that to free free but our is business, impact of XXXX moving to

due vision, and in wealth underpins even the years more first value creation Appalachia drive a started importantly, got opportunity base we're to we've just to that's most that one-of-a-kind of ahead. And through efforts here, share our these and asset per getting our

it Mingo new our tech in hub is are This clean Regional we've time, ARCHX. we Clean on be of is the calls. about West world. just the you scope But ammonia be effort very excited expected this might an anchor called get been the in Virginia, to why it's and the Appalachian and involved application some touched is that to the initiative plants or going all refresher, project. hub working and Virginia the effort also for that hub on the in past X something ARCHX on project what's to Hydrogen One Fork That's U.S. we've unit West largest, to as contribution asking, the places. in of a ARCHX and Adams cleanest located be of Southern DOE, our not largest, if ammonia in County, It's of the size and

Well, in regions strategic so, status first of which X all, vast the use breathing it's hardest standpoint. of it vision, is this we provide living, of project quo, we And here, Appalachia location, in First a can it energy opportunity produce hit example our transition doing in economic can from an append and the first. its here

found lowest most gas And of anywhere some as the pointed boasts lowest world. emissions just Nav cost. in out, abundant, the region this feedstock Second, natural

addition so on bring final related a makes such with D.C. on or to to this partners the online. of better viable, hydrogen project Reduction to Act, tax no decisions credit, project, to in focused build DOE why place the the awaiting that's the which Inflation IRA, and on there's working exactly hydrogen awards. We're our guidance it So eagerly out we're help production hub from

incentivize low it hydrogen and does, to the carbon hydrogen exactly this create to Now a intent provision activity and that's energy in the of creation reduce communities, production emissions intensity the and it does big what IRA project jobs way. was in economic of and in the to and

we've Now Constellation guidance, effect project that recent clean was do so investment the decisions. the investment, capital the chatter we're $X seen pending A what very example caused hydrogen this to who implementation out IRA can and monitoring nation's of chilling closely. billion

and project course, West we're going Washington hopeful the the to important that us reality. this Virginia intent law help of Of a is follow make

talk let's minute. for purchases, that share Regarding a about

and or shares approximately pace industry back in far our in authorization, program of percent our peers. an exceeds front equates since additional this of depletion the the quarter to respect with And XX% share during share We third outstanding recent on repurchased you'll to our importantly, current XX% most quarter. XXXX, and continued repurchase buyback shares. $X our the the of of see X% current authorization magnitude we've our in that billion anything leadership company. the over that We of start of repurchased That

itself. that And words. our capital than of louder Of record shareholders course, actions for returning to speak think track I consistently speaks

even it from years, we've picture to and strategy at for we're a when shares executing continue innings, look been are our the believe big though undervalued. we perspective early And in that the several you still

to So the time. the billion no long will $X for you believe to include as another with And that authorization the expiration, create benefit confidence which $XXX announcing shareholders term meaningfully like-minded years. over share continued incredible authorization as that's are in continues outlook $X reflects opportunity their a our over remaining billion result, provides brings an repurchase share we business our total $X.XX we when to authorization. grow billion million who the coming additional in program, our the just This over on repurchase ownership previous our increase increase value the for

highlight a and to said Broadly also evaluated to all consider asset criteria, the very quite I'd take briefly this like quarter. non-op sale to high. under minute the bar be asset they're before, the strict sales, speaking, we during we

able redeployed to to assets in manner. $X,XXX flowing makes were per working Appalachian nonoperated capture this Basin and value interest producing effectively primarily of value. we're feet day we're pull in the something oil various consisting to accretive noncore through this monetize located However, economic when Mcf. an million sold cubic producing And approximately forward going gas that transaction, or and In we sense, be royalty roughly per case, that assets and XX

showcase showcases highlight So it to that wide This tangible the that vision sustainability ESG impactful prioritizes that and proud array a we our does of and a is corporate how stakeholders and very local. value information our but First it that during I'd came Not like that our transparency and our evaluate and can product use of. quarter. hope report last, investors strategic decisions to only Appalachia to out various actions and approach unique proposition, are our we're

college building X-year a focuses desire the Mentorship that high school local the CNX our concluded young the with And well who require scaling, career year to a well-compensated goals full trades we've Mentorship effort. long-term us connects and to This degree. minute strategy it up family on regional its students and as nonprofit discussed local emerging highlight achieving region's example That and which capital just toward wrapped expanding bit past. drives talent. inclusion a that premier in just employers sustaining doesn't community want X a take second local the its economy. human our its the success in of and uniquely underpins continued tangible I the and as is Academy this It's and is Academy, a diversity our

CNX class be be prime our win energy our ESG a are or would words, a it's initiatives kick off of be women we X at year a date. is most And the and to to the of should collective the largest modeled in region years that And corporate and available the example we a for will for the region's effective for of our win be a for be that disadvantaged the believe third men happened vast week of how executed. and would some the other program And believe goal a Appalachia young to manufacturing how should what's past in Hard they so, large. which be win within to economy course, company. the in That communities. industries. benefits In as That ensure would there.

So to Alan. let turn things over me with that,

Thanks, Nick, to and morning good everyone.

the free mentioned, generation of XXth our quarter Nick execution the represents flow sustainable consecutive business through and quarter of model long-term plan. this As cash strategic

approximately to out first free the initially Since billion, generated cash free free market we in the including plan from XX% laid roughly brings of $X.X sale. flow During of the XXXX, this previously our cap. which our of non-op quarter, flow, million current flow proceeds announced cumulative cash our quarter we the cash is $XXX approximately

advantage that generation on we debt believe disconnects of remain we free markets. to any We that or our to are way well occur well our equity positioned continuing and deepening execute might take either cash long-term plan, and flow the in valuation

their to share take higher. significant continue believe moving per drive and opportunity forward lower discount shares intrinsic More and on a count trade of at flow to cash We free to to shortly. value, that this we our advantage continue will also our share that

we to profile constructed balance have capital debt reduce when flexibility enable maximum risk and our and sheet side, the On leverage decisions. maturities allocation making

low-risk lowering absolute of maturity overall balance Our sheet is active management, a maintaining debt unchanged. and overall objective debt through

runway underlying and our currently being variable as maturity provides the underpins as adjust, capital is be significant equity intended our that our most demonstrated, the Our hedge allocation we will plan adjust flexibility. visibility allocation valuation. future fluid robust important capital to book into the and have Moreover, variables consistently

that lower debt is desire clinical allocation capital to our of While levels, output the an we running of have timing signaling been math. delevering consistent achieve the in absolute

As leverage up debt also ratios of prices. cash based down commodity EBITDA levels we and few tick may deployment. the flow we've to seen in as over adjust expect the free Further, timing quarters, short underlying the term on with fluctuate last absolute

noise. However, fluctuations merely are any such short-term

our XXXX, guidance per long-term unfolding see key free grow the drive touch I into moving XXXX to that ability materially confidence to updated and beyond turning on for we to share. X our flow cash Before in themes want that

expect energy the natural mix the realizations gas over beyond demand environment. as strip XXXX we in beyond First, the a provide prices are near-term cornerstone nat world's strong fundamentals to long-term macro our gas move same The natural serving boost for of increase as period. and cash NYMEX backdrop forward gas as flows will material due of our to we to pricing increasing

to, we and higher production previously Second, moving XXXX beyond. levels and in to decline in expect XXXX of as guided forward levels we've materially capital

successes to XXXX levels XXXX we're no annually As sight operational expecting at beyond, beginning intensity we lower level beyond approximately below XXXX. grow in service in capital and production over in us X-year XXXX the that higher intensity provides exception assumes the of volumes current line production by costs that clear a XXX as year Holding the levels initially capital production result of change with are XXXX needed to This experiencing, the million Bcfe. us pricing, XXXX current driving to part instead of and then $XXX but more driven is would maintain by forward. about moving original maintenance cost similar capital a return XX to compared lower contemplated to levels our and This those projected service our plan Bcfe of to of current to materially plan.

that third theme cash flow Group The now key is positive. our Technologies is New

has terms our being progressed waste impacting in of attaining three, these the two, the discussed pursuing. we most Tech tied main reduce LNG operations. alternate of cash to prior X flow latter New in lower calls, expanding fuel The that markets near emissions; X services on and there oilfield value categories hydrogen; recognition as methane such and As Group term. and attributes been developing are the the environmental technologies CNG, cost that for abatement One, free

$X For with associated the quarter, million we recorded in environmental approximately attributes. revenue

up starting these We approximately on of on in in of line cash early are still impact, we very free the contributing provide stages their Group some achieving flow opportunities, with but annually the Technologies to near-term color of in million. sight $XX the magnitude believe to New the potential we of million have developing XXXX $XXX

truly these The quarters. more Tech meaningfully we look projections expect in to detail XXXX. we the forward in coming in potential Additionally, years to higher and cash providing flow grow free updates on the from annual this the New exciting, is beyond Group

share years, the cash is it next together, the potential dramatically count. flow to share When you reducing these our our continue over shares of cash in re-rates, also trend easy shrink per is we free decision per several further the see overall capital years. in clear. free price materially factors flow They our easy allocation The will growth coming very to share to our company share. the make expect consider a to continue X outstanding contributing Unless for

on our year to shift remainder updated XXXX how unfolding. the the let's X to of we see clarify Now outlook Slide

sale guidance adjusted EBITDA each of the reflect decline that and major have have that the of and commodity We flow quarter. transaction during the cash components our non-op updated to and the that the impact the during quarter year occurred well as reflect the outlook for free in near-term occurred for to prices

are our the production we and sale. Nav is key our XXXX for a progress XXX Bcfe by wellhead we track on and The adjustments driven production. with with that between for Starting to has Nick for XXXX mentioned, The XXX adjusting basis, non-op the takeaway, plan been as are and, X initial being remain narrow to excellent making range factors. after operational on

First, sale. we've associated with non-op X removed volumes Bcfe approximately of the

As a and sale asset the reminder, was producing XX million was the that per equivalent approximately effective day. feet date cubic of April X,

second lower for ethane recoveries the year. is expected related The adjustment to

been our unable challenges. that initially to ethane to customer, such, remained our the counterparties key forecasted of heat One due has take stream penalty sold cash is line been by has been the flow in gas downstream that this. ethane plant start-up as The and impacted And to have their for the bottom not year with for provisions overall value. has in our contract free this due volumes

X ethane we than XXXX been lower However, for to would the reported as been recovered Bcfe they planned. our have volumes be expect production approximately had equivalent

non-op approximately ethane we operational the X the Lastly, offset adjustments. due expect to efficiencies, to Bcfe and of

And approximately earlier, as also the are updating the to with is In reflect Bcfe the that such, of year's approximately Bcfe with on XX are XXX operations now is and takeaway reaffirming X after plan. associated impact the downward the XXX non-op of an we despite stated adjustments, prior next guidance as key outlook Bcfe production estimated noise our on sale summary, XXXX, our track our volumes. which for successfully

capital. to turning Next,

included running The completion crew for associated the of entirety with and spend second X the quarter quarter. X rigs

horizontal which year. moving capital spend been in sequentially will The of rig released, recently remainder second through result has the the cadence drilling the lower of

not On impact capital downward downward categories, to there have XXXX certain while cost the modest seen some enough in has materially levels. movement side, projected movements service we been

such, the our end lower this. to ranges As of moving up are we capital reflect

as on on side as the see provide are we becomes reductions calls we in future that we optimistic color that further forward, outlook Moving will cost and XXXX, we head service into may clearer.

on point last One capital.

As corresponding operational we our than us in on production activity production plan. XXXX earlier, This and to keep spend capital efficient touched set to pace results that growth XXXX maintenance XXXX. more an a expenditures volume capital allows represent level of of from

with changes the at prices year, forward this in activity to capital gas economic accordance the despite focus further not decline our the results. we on set Additionally, no will to should our current time, adjust long-term best achieving hesitate throughout plan

for also guidance, cash Lastly, $XX commodity decrease free proceeds to during prices million decrease This onetime cash million on to we've update and from sale approximately sale, our free the the $XX the due includes due $XXX continued roughly by offset increased in decline flow million. flow non-op quarter. same roughly experienced the XXXX to non-op outlook a the

per cash before per share during future now share projecting reductions remainder overall flow that flow, commodity total approximately to near-term the increased reduction the are to of any on to share a due despite in year. we share XX% shares However, may increase free free that cash occurred quarter occur count basis and $X continued the during the headwinds XXXX the the per by

model to sustainable continue the conclude, we confident our the to have that throughout we deliver are entire value cycle. will To business created shareholders that

to business, remain decisions our clinical the will to asset share compliant flow of on on accelerating capital for flow execution owner of allocation as long-term continue safe our base, and to all on focus Our Technologies mindset. extensive XXXX gas natural our free a cash always, from growth remainder per grow importantly, reflect develop free and New consistent ensuring most our long-term cash and

With to over Tyler it that, Q&A. I will for turn back

open can at you up line this Operator, the for questions Alan. time, Thanks, please.

Zach from Parham comes question JPMorgan. first The with Instructions] [Operator

guide. just the First, on longer-term

Should the of at $XXX at Bcfe, You to flat hold $XX you're production $XXX at of and color year of to this CapEx on sight spending on line midpoint looking midpoint. just How I -- could than kind the less CapEx some I should plus XXXX? really mentioned like. about XXX numbers? 'XX getting the million those annual some assume what on look million of for think to X Just

Yes. down or range way formal time get so same a in spot the We're this time, run crew. it rig At to think you you you're not at from is, X to X a maybe program But time. the completions, X.X-rig just a able provide completions 'XX, X.XX to to you're going ultimately, month year. you step to program program guidance by the X fewer of about kind a full have crew. have basically next and to completions don't a And the or

really it. what drives that's So

flow spend CapEx And million the on you then maybe us talked on cash free Got expected Could in color from to the next some expected plan projects that about that generate Technologies you you it. different free color business? little a more going cash flow? give And business. just to on that New are that on business, the year $XX

Yes.

near what's in as think the now most the material associated the I recognition attributes is mine of projects the right the capture environmental with waste to comments, run. term, we in alluded we

sequentially You should see moving that higher.

then we booked be move will that that of sequentially but in the near quarter, bulk including and 'XX. driver million, term, higher, the will $X the This the

next The MKM. Leo comes with from ROTH question Mariani

a just to the bit little in production I XXXX. delve into more here wanted

percent XQ. of at Just kind a kind versus of was production looking of down couple quarter, second

think had this lines turning XX quarter. I guys you

up a today. 'XX guide reasons kind production kind where but why turn the in of production got from is here some on Obviously, was of little were kind down. it detailed a the lines lowered you you you've and of big So pretty of bit, ramp

in color little half XQ Do So second that rate of and down. growth see pretty in of the on XQ could to a 'XX. 'XX of kind give kind big sort exit you bit quarter, to jump lower Can was year? us second of and how on the bridge to kind the of gap maintenance between a help a level gets kind moving just significant which of next you of of here get we breaks more higher production of you kind us that kind

important missing April to second the is effective on What's about date you're the Bs non-op where Yes. remember the been. X sale, quarter of on because X we otherwise would have

we're if year into point. you in the going back exit QX, kind that XXX next through to about hit we rate So you that should the talked see the of add QX sequentially as we year. the and that kind we year, We're to to higher, want low for up be started at then at of and run moving

Okay.

next of do into So into much you run it you I'm trying the year? the rate of kind like year. growth rate of of guess, sort continued flattish the kind year-end the in are get you to it's going into see 'XX. then you're just cadence rest just flat to and for that understand from clarify, And sounds I Or as to then more higher get saying QX. for to kind there of this run

rest 'XX. of the QX time run around then you tick for a to the the should you get and by would up in QX, see you rate extrapolate be You'll that

Okay.

little up bit QX. more in here a So

Okay. That's helpful.

Start to build.

your for was the I kind that of I down saw per Mcfe. guess, LOE this asset mean, I sales, And Okay. quarter just

to maybe of kind right know higher Could forward? the wells that basis. of kind sense, get of run fluctuate trying second going some on of sale bit you the quarterly due of you and kind it kind that older, Just these were was little rate shed asset part will a to about LOE kind I cost of think see quarter a is it cost here? some benefits, to a

of in Yes. kind The I see would really those had the kind done Nav's operational job no working the interest we did that. sale LOE. talked were great What majority of QX, to impact during team interest of lower controlling little wells. cost say a we non-op has success. on about

Moving well. there that to And as some cases rate then things the quarter as were the forward, marketing side impacted with trend continue. settlement expect we some one-offs that on

next The comes from question from Bertrand Donnes Truist.

like It previously have expecting. understand this may just you year. faster wanted And to of efficiencies your for than the a allow operational pace CapEx looks I you were activity range of to kind

prepared in being wasn't the maybe like there of some to later I raised just current the for sounded about sort state the that just from just into maybe you low On service could remarks, the was it of allowance do you if year? but maybe some was 'XX maybe talk the could sure pulled that due 'XX? end cost, activity Or optionality

we discussed, the that's haven't seen some other of green haven't The as table as reason the stuff. materialized. but completion the low bulk other quickly off down of costs service of of kind in they the come the we're cycle. pulling with as the the But up have costs you're right kind as and low-end on shoots end was cases the because We've parts efficiency

able material as push been of cost as couple in have of TIL this end. kind pulling adjustment it's not year, up capital We but a which will up the pull service the to bottom incrementally,

assume those from production late year I TILs? minimal impact

Yes. of sliding about weeks. in couple those a We're just talking

that that. question and did where repurchased an Or on you was basis? you free opportunistic? an trickles count what's annual appreciate buyback cash noncore cash lot percentage the on that to XQ guys strategy flow the of strategy, are probably your execute percentage think even your guess into people towards around it just Or on then mean, continue second you probably sales -- flow Great. you the balance, anomaly -- XQ And entire on you almost that that a to that. target I there the I on And is I looking Is base, a there? half guys free of repurchases.

our We when about and It's see And pace. price clinical the we we of the try around we below allocation to is dictates optimize math where talk the continually run but edges picking value, intrinsic do opportunistic, share up shares. well always it now, depending kind right right? we're

that math versus the currently options repurchases repurchases beat. you're on are too, flow difficult allocation, say, to We'll extremely share for share running when other free the cash that

as about For see we the the X reasons talked well. key coming themes we there,

sense. Makes

So you're shares do a to don't attractive because you repurchases free your of flow, more look it think you'll about percentage cash the hey, feel and share when of just, just best. that make as going

a is got We exactly. sheet structured. lot Yes, balance flexibility of way the with the

necessarily tie flow exactly need in don't any to we given period. the So cash free

The Michael next from Stephens. question with comes Scialla

$XXX to the wanted maintenance capital getting about below again million. ask XXXX I

think you and full-time than mentioned X X go that down you I less crew. to would rig frac

wanted little about what's do decline guess, or Is the better less to efficiencies? to full-time some continuing frac shallow if of a go kind than losing you those driving And rate a Just better worried it that? I to are crew understand bit down you try to, of efficiencies?

some rate. rate, need production now Yes. the maintenance -- factors, to say It's where a last reset at level an of be We your we we're decline year, right? to here of bumps kind I back combination would XXX. efficiency had it's on we're of we've and

we many by region. until efficiency don't this So was more gas as holding to and to set it's in continue the right? down do market XXXX really call that pads year, it need this a each what of picking to push for a just to able is And kind you out sends level capital just be in

performing performance at above the all on well side, what wells or are. our And expectations are the

to and about run the crew Okay. crew And any guess, efficiencies about I altogether? losing losing if you're even, going worried concern not full-time a

but consider the that's possible. they're certainly not as year-on-year, to their operations efficient we the operations, would as Obviously, with result it's now. that's mean goal continuous teams, running is running I that, No. growth make And that's sure but we're Yes. in easiest right that right? model continued the

is concerned, operational right? as X as buckets, we One is at efficiency different And of from far procedures are. our kind look what efficiency

providers. our -- those we are integrated is preceding do, So no with to to like what up our crews, then in pick run we and matter like exactly those like when we service all have processes, operational And preplanning really our know how second procedures. we gaps

So operational comprehensive we deep right? of do really execution we before start, preplanning

those second, are optimize on into kind design our executing, place. us And efficiencies length is for what the take on and best we when like we with X, schedule optimize coupled those. in we scheduling. So and is account then to then We of time engineering

for So level stay optimize think to actually or efficiency with it. improve -- our these to is X we'll us at be to all and I parameters able beat what different on

look on working there, mentioned talk ] the Great. would if you Class drilling Fork there get there. a you support I that VI and with from Nick, permit. facility manufacturing color COX [ ammonia Washington appreciate might about timing expect you Adams of like And the project can the require Energy, you the what just sequestration

up frame how to trying Just unfold. that might project

This is Ravi.

construction to work construction the If investment mid this the It's checks of on decisions of everything of So construction to going is from happen. X-year IRS waiting to and where up A X- we happening later to facility. and is of get guidance expecting it sequestration start were lot of a running. And expect project, also things. kind next on side the the out figure out the out, part [ of maybe we're CCS come to when on drives year. ] in we Treasury the starts the year on kind this XXb

that West we We have going to that the petition there and do UIC is these wells. is whether well that, -- EPA or about, whether we're get lot issues, that But for of [ trying to primacy have UIC have West the assets primacy Virginia you're in not, to Class primacy to VI control Virginia make we it the a region. talking successful ]

expected stuff to in there's our construction treasury for a all XXXX. of is meantime, So arena it mid But be. start what waiting see next from to the that lot to shapes to based and of on up in the the are that we're going steps how the see project guidance IRS,

with The Brothers. next question comes from Parks Noel Tuohy

a understand been think Fork? just still I for about been to around in wanted lot has determined. general, quarter quite on saying still an IRA, update but ago, for and terms specific I I any of the just there there bit what a to progress ask a Adams of waiting was the you've guidance be

can you anything So that tell us be would great. on

little still flux is in that a bit. of the Some

based the like on think to depending guidance the be. Treasury on going investment when are I decisions

the I this think required some are provide we're to successful. set in call going that to we're services, of that is going to the things mentioned we quarter that that are that project the last make assets feedstock. have CCS provide the all I the

intensity the the available to ammonia. to required We be lowest have that's that's and subsequently hydrogen carbon produce going feedstock

pore spaces surface We have COX. sequester to and the the

COX of right We the have of and move -- the to feedstock the around. ways pipeline right

have that's the technical expertise We these to wells required UIC sequester COX. the to deep drill

move and We to the molecules have COX and expertise around. the feedstock gas processing the handling

So such hub that lot still stuff, as on as project such depending external Treasury but guidance, decision lot from is on the a decisions we the the investment the control of think hydrogen of a factors I the DOE.

some make more to coming So on we're but the think these I stay external concrete tuned some for of updates, factors in months. decisions relying

by big administrative the Yes. industries is from on that's state and IRA. need we numerous Congress the we And up was what we've the The of intent make of to news interpreting right what with sit, different the interpretation would is as how intention with mean Washington. different in waiting intended the But that with that situations, the smack clear of middle seen the ends project good that, sure guidance in is picture, this consistent very how of law.

is this providers environment, Appalachia year way part I that's well, Great. industry that guess, not have a as of far in about back as coming service beyond optimism more a between different on from cycle and wondering frac I really forth. the the as cautious like there's kind about -- give the we optimism Is you guess, maybe far And some I a down XXXX, -- little reflected seems so out going bit sort mean, cost capital optimism been to discipline I as of to heard costs little it XXXX. basins, the some other as to, be looking bit expressed maybe much being -- that unanimous providers. in was service

So basin which wondering factors specific. just think be you might

kind level, you if mean our give maintenance for we've production I all while. of been Yes. or think of at a take, a basins,

So the beginning other of service with there some activity improving. the as private of basin some much categories and 'XX. hoped in And contracts as little we of to uplift they price on of activity in commodity environment to do like reset the wasn't these the of the the bit players, magnitude how maybe said, see the during still we of sort an drop But marginal things we'll QX but basins. up of drop a come have the going see year, up at kind some the provided of in side certainly I the QX, guys some this to not the

this color Nav, want to we I so cost. to And is CNX look at some how add at it,

engineers costs continuously design engineering an our standpoint. really One is improving we optimizing So cost from hone into where in divide engineering driving our and down different right? categories, on and cost, and X

execution The second operational phase efficiency. and is our

that you done our we optimizing trying to in seen always last are as we efficiency, have increase and the quarters. have X So

is -- partners negotiating cost of price see trying and and right? part to increase is our are sorry, part with steel commodity per to team where our price And unit basis, reps, we of work this then our and chain changing. it we always supply diesel efficiency third third pricing The are fourth down the where drive

And And so down that are scheduling. the that we trying of drive is cost. fifth part tracking and to then

And price with to So we those improve have like X so divide of in per locations into for what we are completions, things seen which next over on to, our or asked can seeing are unit So cost we frac sand our completions, sand trying all cost, on go all X is we cost providers, a pricing, that affect of to have up the of continuously consideration, in per so we too, you right? unit done per we of to and a chain -- equipment is down team so working and service been unit has efficiency, fantastic our decreasing. job that driving cost able where ton our basis. your drive with supply are then we

And like it part then the is water. third of

cost. optimizing So team a how we and reduce get our systems that to water fantastic has and gathering water optimizing acquire of our job done to and location

few for So to overall, quarters sure. costs think our downwards driving we going completion are next be the for

detail. the for Thanks Great. Bye-bye.

from comes question of America. with next Abbott The John Bank

XXXX Technologies in New the business on color potential the Appreciate spending.

understand XXXX, with that starting to make just of Just I I sort sure want this.

million, that business? I on technology does that -- -- $XXX the you're include CapEx Does do discretionary think that spending other how spending? is So around other suggesting like include that year? CapEx about that What

Yes.

expenditures materially positive the kind on So attributes. side that side. no term -- right? the the uplift on number about that Technologies talked with There's real impact business, of would business environmental on is primarily nearest capital legacy that near-term E&P is of the major like Like we New the

in next the CapEx or So you limited have year that. X with

where of with how to have the past, going Yes. view be and of projects to is once to what in to a to occur going we'll through And community allocation go going capital clinical the the things. decide is the we're update pursue, new tech capital required just like on we've math done we going we're much the side better

the it. our Appreciate And about guidance you this the the while, for question, but are past, -- right. then given been you've follow-up cash a how of just for trajectory point time. in All taxes in -- it's at thinking

potential do think taxes? lower the how you cash about parts, the moving Given future your spending and

as into went same the kind X-year when the of we the basically plan. It's

flow start generation billion $X tax that payer to free get of cash mark of becoming cash is you kind a kind of where You again.

still few years out. a we're So

tax still cash on you in You're see anything time material side. the out that 'XX frame 'XX, before

Appreciate it.

& The Company. next with Jacob question comes from TPH Roberts

for provide be could deal for are opportunity how particular? background on the proceeds anything you some similar if earmarked the or recent set may in what deals if and the curious perhaps larger Just came about,

You're referring to non-op the sale?

Correct?

reinvest to This we're proceeds terms Yes. asset best some there manner. in going in a all kind an are Is getting value raise way is I to mean determining in of that exercise of more an assets. non-op. the noncore accretive through set always it's we

it our proceeds of reinvest we're at a and it, valuation, prices, of come we feedback ran you that. that definitely we it's internal think about you're kind relative flowing That's monetize a got our if So noncore. out end going lot how to the into process we all to and And to number strong share able from public ahead.

to be heading it their is So proceeds will share the to entirety? buybacks fair assume in

we'll run I flexible. think We're our change were up, to. to If stock the we strategy. guided allocation capital

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

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

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

now disconnect. may You