CNX Resources (CNX) 25 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the CNX Resources First 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.

Thanks, and good morning, everybody. Quarter Call. First CNX's to Q&A Conference Welcome first Today, first 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 Financial our Chief to quarter, are the exclusively that to answers call, call posted our Behl, President website to everyone Navneet our a forward-looking Srivastava, Ravi questions, Q&A Shepard, this the Operating which and we Also, be read and for the for remarks remarks our Relations today Alan New and for subject call Group. Please are our which of had used include prepared me including various today made risks will during as CEO; hope Nick Chief we Q&A. With President uncertainties. Technologies before DeIuliis, Officer; chance company's to the our note Officer; statements many differ These guarantees actual may performance, result of materially factors. of as and statements results a our future not are today. With to thank of the morning. in issued CNX's its in you discussion Securities and this those filings for us and and A that, uncertainties business risks release related the with and joining factors is contained Exchange Commission call please for time. the at you can open operator, And Q&A this

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

one and you of flow the and in some generating potential on X timing these cash Earlier that X flow? of on New the ventures this us OFS Tech. these week, generation ventures X I one business, announced First, new Could potential wanted ventures detail just to cash some you in give alternative fuels. quantify ask just in

Zach, this is Ravi.

XXXX for guidance unchanged. is Our

unit. And form. for the are from New future the business as year business potential, flow -- taking XXXX $XX far at commercial cash Tech concrete free group for the guidance as -- Our remains opportunities million a still

able greater meaningful detail in more I more start these form and 'XX 'XX. them have in we'll but and talk of to opportunities 'XX be taking about end think impact to towards the quarters, expect the we coming more in

stay tuned. So

Got shifting a bit. it, little Ravi. And then gears

were It aggressive, the in You bought buyback X aggressive the again free first allocating seem double the of does give And you're with little about slowed how the you at buyback been you've like going flow quarter. thoughts level generation. flow between forward? April. Can really back buybacks debt and cash in on over quarters, thinking a free bit about pace the your cash latest just us reduction last

Yes. gives Look, quarter-to-quarter lot our we a and of Look, commentary, a buybacks. timing of this We're maturity basis. low Alan. kind us prepared about and on in runway secured unsecured talked debt evaluating flexibility of always is the pace the

if you shares QX, for as we opportunity. The buy $XX bit. up, kind projected $XXX I was the the million, look of the the little In lot over to at modulated stock of to XXs still think in room Later a the a a stock grab trading in lot saw the quarter there, ran back of real there's remainder year. million a

no going flat we're but always, as to debt, consistent changes declining flexible, real So to maintain to strategy. be to try the

Leo Mariani from ROTH is question with next The MKM.

well LNG business a focus lot here. business. as to continue businesses to bit a the the OFS new kind kind the Tech of wanted New on CNG, of on just as with I going Obviously,

mechanical here sounds businesses? of some I the could devices the kind was I proprietary be compression. is these speak type of also proprietary you guys additional capture what hoping it really to to mean using as on presumably there that some press well mechanism guys flowback the allow you you And are aid a little that well, kind CNG of just device from could bit of like more the here. the release, there's without physical on

you us on exactly folks? kind and you're a of can rolling that this more out to is speak color bit give So to little what product going be just kind maybe that to of

Thanks technology hour for but about I rest we that have be the this because the we talk for my question haven't of might the to question. heard developed. the questions, favorite want this

a been It's in years We excited are pretty for now. few the about it. works

We in very can market. in happy these partnerships, and we engaged calls, milestone to start that we've where to reached teased bring the we're have these where technologies past we've earnings this

the So rate would discrete to and I conventional in various I technology is X like break talk like more first what functions And to step high flowback pressure segments. performed combining are a solid about do and that sand the involves removal. flowback, would management, removal the technology, fluid

deployed any it and a spread, sealed operators. It's lower cycle results to faster performances eliminates that's which can a combines all and required and technology, rate. this and reduced smaller reduced step, pressure methane of operate this one And So flowback the the piece cost solution equipment. it implement equipment, much for than does And times to which And one results highly technology very footprint, it a these results steps at our are costs. highly this we we discrete deploy into improved can safety does it in reduced conventional in in all fugitive from reduces perform manpower environmental And system, impact. in this automated, our is a into this and footprint because that, conventional in a of the required be automated the emissions. because all which this, flowback. What high a materially can it's

does. And reducing a this And they're U.S. that's technology, and reduce we Montney to well. Ford. high-pressure deliver there's -- Canada, are partnered Haynesville, from CapEx, which the Services Deep trusted to offshore United looking industry, and reduce then solution the derived have to are These call we particular strong various And States. Energy, flowback they're application we're to expertise there's Well for require and with Deep solution solution in our and to and is that as this looking with this technology which is potential oilfield bring in excited and international Shale Shale, what this the this estimate applications like in emissions. formations oil gas that shows within wells, harnessing within Well the a the Utica and second them part reservoirs wells service And our what for name formations then to wells the technology application, operators U.S. partner market. And involves of like So and are particular brings domain flowed in exactly technology of these internationally. Eagle all for Geobaric XX,XXX the back for our XX,XXX

industry has renewable So but by mean energy time, gas Geobaric and Energy, like been oil up end energy renewable energy energy, and energy. and it typically operations developing this high resources geothermal wasted is I pressure source is source reformation. these wasted, expending while a this only not destroying

this hydrogen CNG, potentially, pad. to is So well manufacture on it what and right our technology allows us energy our electricity LNG and to does harness

the is and produced then at If a recompressed it and trailers transported a to then value chain, spent is a depressurizing in further to and gas, compressor CNG additional it's station, customer. energy a compress on which energy at spent fill you to look CNG is gas transferred CNG where specifications pad, well typical then

it and Our Geobaric the deliver solution well Utica utilizing to several CNG and right filling trailers us mechanical allows CNG, compression without any manufacture cost energy-intensive bypassing to pad, and Energy our steps. on customers,

to U.S. and and a costs what emissions to record is with solution technology track NuBlu industry has And So them. solutions, partnered we for this lowers of NuBlu again, Energy have customers, developing looking this market. partner to CNG for. are and excited is that we which LNG with bring the

industry, will a of on for that in economies you like New you you citizens. it life Leo, call they're now energy sort that that see I in ours, out advanced specific world a there couple these bigger this is in in world your data And and with are announcements of AI for is it But about it facts of ties a we've to years. the our And see announcements realities, where this much demand there global made. point, been because today insisting and with questions for additional also, growing. are Nick. centers, people these keeps thing to and be got it them in on developing Tech for their better of working for right? One helpful and looking quality developments, Maybe, couple a market technology we've too,

we're that disaster emissions at matter. you degree grid wants other and with probably seeing change world the and they of with the Btus, Wind that and it. But well. to a that all is these lower hours, subsidy scale, horsepowers, electrifying along for truths doesn't of recipe there's So physics kilowatt want everything, the as when couple the solar go additional

is So going exclusively to some have that challenges.

and have got there really ideas that to sounds reality this LNG places see like I And We lifetime, it. And units challenging. export to gas pipelines it. going to you're facilities is Europe, or LNG more Appalachian it's China, of to wherever. and right to India, degree, guess, opportunities a great, certain to But do to be going build merit logical that's extensive that the in and

from I'm that's importing then like our I've of term, exporting sorry, [ thousands to it scheme, DOE the And here to East Btu like an of in option. it's terms of grand And the DOA the with in sort miles that examples because sort as Btus you on So you're and one LNG. or inefficient of -- that ], things nations via intermediate other hand, really, of right, think Mid about away, mentioned when miles near oil. away gasoline thousands you're

most So supply of it's net-net. the efficient not chain sort

really with hydrogen, scale at Hey, gas to specifically well be scale, play having hydrogen hydrogen in role that's from natural some Green a to as perspective is that. interesting challenges. it's You economic got in got it means attributes and effectively a able some which to going hydrogen. a the as going technical economy, blue nonstarter

CNG, vision So better leads use LNG, like it we the a It New technologies. this found said, things a while make natural currently and an these that those And here it Appalachia ago, out boxes. we of laid sort manufacturing which basically goods through First Tech then basically, it's was onshoring with approach, checks also to we that Ravi way gas of here that and all think is within captured one import. our responsibly of we

you dropping you're love friends our And do respect in like declining GDP you're chains, emissions, costs, to trades, they basically wages we're sustaining and as expanding jobs, labor shrinking this, you're well. component and with when family of growing jobs you're supply So those it. that the

proprietary when that, these we technology, for Haynesville renewable, This real. and the And right, its is that it mean, called that able Ravi So we're then to like this. into horizons the I it conversion horizons. shale It showing shale and and commercialize regard mentioned efficient is and to technologies of Utica energy allows call true cost-effective this alternative true. across he in high-pressure flowback formations. now the the the can CNG it LNG Geobaric with shale energy on the in harness all I really

feeding the onshoring fuel. it an aviation expand which manufacturing, big the another of to of fueling the we've frankly, keeping So opportunity our into opportunities and sustainable that is of the you that one. capture to displacing methane grids another waste right, gas, markets, supply demand our mine of big to and natural power like close huge expanding crisis, see for this, growing that's we with really vertically generation, appetite with centers. Ground miles is about chains LNG, market market cumulatively. air CNG, horizontally that the tens opportunity it, whether attributes And it's proposing industry for transportation data instead electricity diesel LNG, with or this is our or thousands we're gasoline micro expanding, here seen things that expand when recently what existing meeting The trying CNG environmental products a of the vertically and markets are and AI think during then into is

energy from going of this penetrate that. example they're So in of talked that the per Geobaric individually positively X flow, similar to this with saw of about. of going to -- the all all same generate with both past harness these week, tangible opportunities another They They're of technologies, rooted they they are I methane potential, releases, vision. and captures, come massive those free with our our environmental big share we impact those terms attributes X -- sort cash press NAV form, markets they those of sort are company. But in X of they examples that all are view waste in more and

something to the sort address So sorry your front for with extensive bigger explanation, been one, a two take to wanted the us we center the and and opportunity picture. and that step while, for of at but but a it's question, look not just take back has

That's here. all the of detail certainly helpful. I appreciate certainly

many, folks think many sort about of I a wondering are of this. lot

I think So quick a very helpful. And follow-up that. just that's to

is So this to I be these to and you year roll that intensity endeavor some sounds of and year Or meaningful of this kind new it expect to XXXX. a end correctly, starting maybe fairly talk capital that of may associated Can any kind to later if for company? this read into you businesses Do capital side? you announced? of third-party start with out capital revenue it kind you the of you've low any like see just customers the

Leo, this is Ravi again.

So for compared E&P this capital incremental to planned stage, is for our are XXXX. -- very, especially low, And no no these program. there's at the very needs capital solutions

Bertrand next with question is Donnes Truist. from The

pocket curtailments. wanted but stopped production? insulating of why had I also quick and Maybe your that on think shift XX to kind is you, of is, at would recent you curtail on We get that quite argument wells. hedging thoughts side gains drop. activity another hedging your don't gears Just why real the to probably some there's you the just just

at seeing Just any kind hold are level? of you Or about this are on thinking -- inclined to dropping more? more and you thoughts prices

Yes.

guidance to watch. hold I something we constantly for think insulating now, we're XX we're gave, kind few going deferrals now. the a of to we sticking It's

there's a on versus clean operations In function in your discrete which break team decision ones a of already stop might you coordinating with wells, in terms where which those wells it's terms the process. of on be of on can

So to overall answer there's real to basis. best with other from free get a that no operations the magic taking than flow to cash up

Sorry. I that mean of any kind activity? actual about shut-ins what of or

No, costs. of a very low not this variable at run our Most wells costs time.

healthy margins pretty those. making still we're So on

hedge As you pointed out, we're to getting pretty close levels.

we in very little of So have volumes. terms open

book. So of kind the volumes just just the we're working into -- hedge some we have

approach versus on just am of meaningful free on a side. referenced cash DWS bit New too flow And contributor to you Tech, the reading That the into Or to makes I for prepared tangible the I to then In sure, this. that just just a pile is the potential NuBlu remarks, between two? agreement? much the sense. little there the wasn't be maybe a a different difference

markets. little say, would very a about Ravi both I bit -- I addressable large mean, they have talked

superior a There a to market frac bit currently technology those I into and electric there think probably going we for but anything? we're little think penetration that pushing a the we those. of flowback that sense? Ravi, quicker lot than Deep why identifiable, and market is be will It's more fleets are slower with have Well, LNG, clear you Does we've make a it comment. made if markets I on, know that on don't on is right? for been it's activity market optimistic that's developed, little and an probably because very ramp and there we'll deploy. CNG the

That's absolutely correct.

flowback And penetrate the is CNG into that to think to take very, a market can bit going I market walk. time something more quickly. is little we very

TPH & Jacob from question Instructions] [Operator The Roberts Company. is next with

the I XXXX just the on just of outlook. to kind touch I preliminary -- wanted to wanted base

any need trigger could levels $XXX then And assumed incremental the to maybe spoken activity of kind million the program? you to million million maintenance? you on the the see provide to in outlook about beyond $XXX if price to with relative curious might color that Just you've $XX that

$XXX All that It's to the year, of kind we target. rate. guide back call area about that activity if ramp same we those this you're from, run seeing is call early of to into underlying last XXX it, wells set can that XXX that that defer were Yes. XX there up the shifting we to talked next on XXX, million the we back

there. So that's all we're trying to indicate

kind going the where of develops we're to. to And pricing watch

I how here in the for learned how be to think are, up, we've firm we terms production hot that over we're will. And summer sustainable a ultimate that summary to a lot will of position once There's the got go into lot drops a in XXXX. the is. planning of factors

debt not to decade. of Great. of second next first part looking deck, And the the weighted Slide X the question, the really at of kind the stack with

around curious of book philosophy as if enter this the the decade? the we Just hedge the half it back duration of changes

Yes. No, great question.

hedge the are and So correlated relationship. sheet balance definitely, or a book the have

hedging of we've to we've I that come of years. got on past we're the think watching the XX in We've the talked by Historically, in up to months. shorten what the looking books kind about been length is overall XX around X book.

out. still camp into in very to our the demand volatility in we you're program space, the much but flexibility some continue in projections but years in those near-term to of gas maintain we're in hedging kind hedging outer as particularly getting capture demand, want not we trying with sure to the that through see of So our going power the able we're of just seeing make too year, and the far

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

this you for joining us morning. Thank again

additional has to Thank Otherwise, Just forward everyone we quarter. next feel free to reach again look you. anyone out speaking questions. with if any

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

disconnect. now may You