Core Insights - CNX Resources is focusing on maintaining a flat production profile through 2026 while being flexible to adjust capital spending based on market conditions [2][5][3] Capital and Production Strategy - The company's capital program is expected to be front-half weighted, with approximately 60% of the total capital spending allocated to the first half of the year [2][5] - CNX plans to keep production relatively flat throughout the year, with no significant disruptions anticipated despite recent cold weather [2][3] Utica Program - CNX is set to complete about five deep Utica laterals in 2026, with drilling costs around $1,700 per foot [4][7] - The company is currently conducting two spacing tests at 1,300 feet and 1,500 feet to evaluate well performance [6][7] Renewable Natural Gas (RNG) and Pricing - Pennsylvania Tier 1 REC pricing has been stable but has softened slightly recently; current production levels could generate approximately $30 million annually under the proposed guidance [4][10][11] - Management believes that tighter renewable contribution requirements could drive higher pricing in the long term [10] Hedging Strategy - CNX aims to be approximately 80% hedged as it approaches 2027, with a current weighted average NYMEX price of about $4 for its hedge position [5][13] - The company is already over 60% hedged for 2027 and plans to continue building its hedge book [13] Technology Initiatives - CNX has fully adopted the AutoSep technology in its operations, which has led to cost savings and environmental benefits [14] - The company is not currently seeing material financial contributions from this technology but is optimistic about its future potential [14][15]

Financial Data and Key Metrics Changes - The company reported a production efficiency gain contributing to overall outperformance in production, driven by new well performance and operational execution [46] - The capital efficiency ratio is approximately $0.85 per million, with a targeted production of $580 million over a $500 million CapEx [11] Business Line Data and Key Metrics Changes - The E&P business is maintaining initial activity levels due to expected storage levels creeping towards 4 TCF, with no changes anticipated at this time [10] - The company plans to continue its one rig program for drilling, with completion activities expected to pick up in the fall [19] Market Data and Key Metrics Changes - The company is optimistic about the potential of the 45Z tax credit program, with eligibility starting in 2025 and a potential annual run rate of $30 million [8][28] - The market for renewable energy credits is seen as a significant opportunity, with the company focusing on maximizing value from various markets [52] Company Strategy and Development Direction - The company is focused on optimizing operational efficiency in the Utica play while continuing to develop its core Southwest PA field [23] - There is an emphasis on balancing the harvesting of fully developed fields with new opportunities in the Utica area [60] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious optimism regarding in-basin demand for natural gas, which is expected to positively impact long-term pricing [41][42] - The company is in a wait-and-see mode regarding the timing of new demand projects and their impact on capital allocation [44] Other Important Information - The company is actively engaging in discussions about the RMG product as a sustainable energy solution, particularly in relation to data centers [36] - The management highlighted the importance of sustainability solutions in the context of growing demand for natural gas [54] Q&A Session Summary Question: Details on the 45Z tax credit timing and eligibility - The first year eligibility to claim credits would be in 2025, with a potential annual run rate of $30 million starting in 2026 [7][8] Question: Plans for E&P business volume growth - The company plans to maintain initial activity levels due to current storage forecasts, with no changes expected [10] Question: Drilling and completion activity levels in the second half - The bulk of turn-in-lines were weighted towards the first half of the year, with a sequential decline in production expected in Q3 and Q4 [17] Question: Cost competitiveness of the Utica play - Current costs make the Utica wells competitive with the best in-basin opportunities, with a focus on improving operational efficiency [51] Question: Impact of in-basin demand on long-term natural gas prices - In-basin demand is expected to be bullish for natural gas prices, but the company remains cautious about locking in long-term agreements until more data centers are connected [41][62]