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

Brian Velie: Perfect. And then last question, this is pretty very interesting stuff. I don’t know anybody else is talking about this in the E&P space, I assume maybe the way you’re able to do this is, your past experience in the coal industry and relationships that you have there, is that a unique strategic advantage that you expect really only you will be able to exploit? Or is that something you expect other people to kind of follow on and start doing similar things?

Ravi Srivastava: I think it’s a combination of both. I think there’s other people who can do this. But we have developed some technology around capturing waste methane most effectively. Like there’s some skill that goes into it. And we think we have the upper hand there.

Brian Velie: Got it. Thanks very much for the color. Really appreciate all the details on New Tech. All the best.

Operator: The next question comes from Nitin Kumar with Mizuho. Please go ahead.

Nitin Kumar: Hey, good morning, guys. Obviously, a lot of interest in the New Tech, and deservedly. So I guess my question is are the current free cash flows, are they only from Pennsylvania credits? Or are you getting anything from other states? And is it all kind of current time or are you monetizing any cruel credits from your past activities?

Ravi Srivastava: So I think I already answered this question, where not all the revenues coming from Pennsylvania program that you mentioned. And on the accrual side of things, I think most of these programs where they have a timeline on how much you can accrue? So there is — it’s not from previously accrued, whatever is permitted by the program.

Alan Shepard : Generally concurrent, the way to think about it. Yeah.

Nitin Kumar: Okay. That’s helpful. And then I guess we’re going back to the regular gas side of things. My question was really around, it seems like you’re dropping a little activity. I know, you put some CapEx into third quarter. Not looking for formal guidance, but there is a pretty significant step up in production in in 2024, based on the outlook that you’ve provided. So I’m just curious, is this — is there any sort of cadence of activity that you expect for ’24? Is it going to be front half weighted or back half weighted? Just looking at strip and trying to understand how you’re planning for the year in terms of timing?

Alan Shepard : Yeah, I mean, like I mentioned earlier. There’s nothing in particular worth highlighting regarding like the quarter-to-quarter cadence. The way to think about just that we’re doing 580. And we’ve targeted this sort of run-rate we’re at so it should just fluctuate around that a little bit. And, in this year, you know, we had a lot of capital to build up from called the 555 to the 580 next year. So once we’re back to that maintenance production of 580, that’s going to be the driver of the capital declining, right.

Nitin Kumar: Okay, I’m going to sneak one more, and I’m sorry. But for some of those who are following for a while you’re coming I think you’ve highlighted you’re in the fourth year of your maintenance of production plan, that this is a concentrated plant in the specific area. When you start expect to start unlocking the other inventory in your portfolio and start spending some of the midstream CapEx that was associated with that?

Alan Shepard : Yeah, we’re still a few years out from unlock anything, we still have a nice chunk of Southwest VA to develop. I think you can see in the program we are lacing in kind of a CPA [ph] Utica well here in there. As those results become available, we’ll highlight those in the materials moving forward. But we’re still a few years after meeting any sort of major infrastructure investment in a new area.