CNX Resources(US:CNX)2026-02-10 19:00Natural Gas Operations - CNX owns or operates approximately 2,600 miles of natural gas gathering pipelines and has developed a diversified portfolio of firm transportation capacity options to support its production [80][82]. - The company expects natural gas to remain a significant contributor to the domestic electric generation mix and industrial growth in the U.S. economy, influenced by factors such as pipeline capacity and overall economic strength [88]. - CNX has significant natural gas assets not in short-term or medium-term development plans and is exploring monetization options for these non-core assets [95]. - The company has not experienced significant difficulty in transporting or marketing its natural gas production, although future challenges are not guaranteed [87]. - CNX's marketing strategy involves selling natural gas at market prices primarily under short-term sales contracts, with an extensive hedge position to mitigate pricing unpredictability [85]. Environmental Compliance and Regulations - The company is subject to numerous federal and state environmental laws and regulations that govern its natural gas and midstream operations [108]. - The company has established protocols for ongoing assessments to identify potential environmental exposures, including reviews of third-party service providers [109]. - The company cannot predict the impact of potential new legislation or regulations on its operations or its customers' ability to use natural gas [107]. - The company is subject to the Clean Air Act, which regulates air emissions and may require additional capital expenditures or operational changes [113]. - The company must comply with the Clean Water Act, which regulates discharges into surface waters and imposes monitoring and reporting requirements [114]. - The company operates under the Endangered Species Act, which may lead to delays in permits and restrictions on construction due to protected habitats [115]. - The company is regulated by the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration, which may impose additional safety requirements [116]. - The company is affected by the Resource Conservation and Recovery Act, which imposes requirements for the management and disposal of hazardous and non-hazardous wastes [117]. - The company is subject to financial regulations under the Dodd-Frank Act, which imposes recordkeeping and reporting obligations relevant to its natural gas hedging activities [125]. Financial Risks and Market Conditions - Natural gas and NGL prices are volatile, influenced by supply and demand factors beyond the company's control [132]. - The company may face write-downs of proved natural gas properties if prices decrease or operational efforts fail [132]. - Competition and consolidation in the natural gas industry could negatively impact the company's ability to sell products and services [132]. - Economic downturns or negative credit market conditions may adversely affect the company's liquidity and financial condition [132]. - The company is dependent on third-party pipeline and processing systems, which could limit operations and sales due to disruptions [132]. - Climate change risks and environmental regulations may increase operating costs and reduce the value of natural gas assets [136]. - The company may incur significant costs due to pipeline operations and increased regulation of natural gas pipelines [136]. - Future tax liabilities may exceed expectations if net operating loss carryforwards are limited or challenged by tax authorities [136]. - The company faces risks related to its long-term debt obligations, which could adversely affect financial condition and liquidity [136]. - Cybersecurity incidents could materially impact the company's business and financial results [136]. Workforce and Corporate Culture - As of December 31, 2025, CNX had 390 employees, with a focus on health and safety, and is committed to continuous training and education for its workforce [96][97]. - The company emphasizes a culture of accountability and continuous improvement through its Quality Management System (QMS), which integrates health, safety, environmental, and quality control [101].