CNX Resources Corporation (NYSE:CNX) Q3 2023 Earnings Call Transcript

Ravi Srivastava: So this is Ravi. The EA opportunity that they’re pursuing, they are a combination of voluntary and compliance offset — compliance utility programs and AEPs. So there’s more to that. And then we expect to add forestry, carbon credits and wetland mitigation, a lot of other EAs to it. So there’s, it’s not just coming from one source. We have like pathways into multiple opportunities.

Michael Scialla : Okay, got it. And are you sharing any of those credits with anybody else or is it solely CNX that is getting those credits at this point?

Ravi Srivastava: I mean, those credits are monetized. I’m not — we’re not consuming them ourselves. I don’t understand the question.

Michael Scialla : Sorry, I just wondering if you are the only one abating the methane [multiple speakers] mine. So yeah, if you’ve generated the credits, I mean you can monetize them with another party. But you’re the only one that is abating methane at the plant?

Ravi Srivastava: Right? If you’re asking who the like there’s only working, one working interest partner in the project. That’s us.

Michael Scialla : Got it. Got it. Okay, very good. Looks like you’ve sold some production or sold some assets. I assume there was some production associated with that. Can you say what, what that was for the $19 million that you generating asset sales for the quarter?

Alan Shepard : Yeah. The bulk of that of selling spare parts. So again, we really do you guys, we have a deep inventory of leases throughout Appalachian. We’re to the point now where folks come to us for a lot of unit fill in, so we’re able to monetize some of these non-core assets acreage at pretty attractive prices. And we saw an upsurge of that in Q3. So it wasn’t production related. We did have the second part of the close on our assets sale for the non-up sale we did, but that was about $3 million in the 19. But the bulk of that is just from selling, selling from our deep inventory of leases.

Michael Scialla : No, good. Okay. And just last one for me, I wonder, any insight on what you think well cost might look like for ’24, relative to where they were this year?

Alan Shepard : I think if you’re asking about sort of oilfield services, inflation, things like that, we’re modeling everything to be pretty flat. We expect way downstream is going to we’ll see some operational efficiencies, improve cost, but we’re not modeling or thinking about any sort of major downdraft in oilfield service costs for next year.

Michael Scialla : Got it. Thank you.

Operator: The next question comes from Jacob Roberts with TPH. Please go ahead.

Jacob Roberts : Good morning.

Alan Shepard : Good morning.

Jacob Roberts : Just the effect of Buchanan Power facility. I’m curious if you could let us know how to think about the uptime of that plant or the runtime of that plant relative to the power pricing in the region?

Alan Shepard : I mean, that’s a peaker plant, right? It runs as called upon the PJM. So —

Jacob Roberts : Okay, but no, no guardrails in terms of what PJM pricing is, and when that is on or off?

Alan Shepard : That’s it’s all dictated by and sparked economics, right, like with the power prices relative to flowing gas to the plant to turn it on. So it’s just a traditional peaker plant, nothing unique about it.

Jacob Roberts : And then, relative to that feed gas. Is CNX the sole supplier of gas to the plant, and then longer term where the plant increased utilization, can CNX provide that supply in totality?