Financial Data and Key Metrics Changes - The company reported attractive free cash flow of over $90 million for the quarter, with year-to-date free cash flow reaching almost $600 million [22][24] - The production level increased by 3%, which is expected to result in a proportional increase in maintenance capital by approximately $20 million from the previous $675 million level [37][38] Business Line Data and Key Metrics Changes - The company achieved a record average of 14.5 completion stages per day, with significant improvements in drilling and completion results [8][10] - The company is expanding its Marcellus Core position through both bolt-on transactions and organic leasing, with strong well performance driving this expansion [9][10] Market Data and Key Metrics Changes - NGL production growth in the U.S. is forecasted to slow down due to low oil prices and reduced rig counts, particularly in the Permian Basin [11][12] - Propane exports have increased by over 120,000 barrels per day year-to-date, averaging 1.85 million barrels per day compared to 1.72 million barrels per day for the same period last year [13][14] Company Strategy and Development Direction - The company is focused on capitalizing on structural demand changes in the natural gas market, driven by increasing U.S. LNG exports and natural gas power generation [5][6] - The strategic initiatives include returning to West Virginia dry gas development and using hedging to lock in attractive free cash flow yields [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming demand surge for natural gas, particularly from new LNG capacity additions and power demand increases [19][20] - The company is well-positioned to respond to regional demand increases and has significant dry gas inventory for future growth opportunities [26][27] Other Important Information - The company has hedged 24% of its expected natural gas volumes in 2026 at a price of $3.82 per MMBtu, with additional hedges in place to protect free cash flow [24][25] - The company is actively evaluating accretive opportunities for transactions and share repurchases, maintaining a disciplined approach to capital allocation [22][26] Q&A Session Summary Question: What was the catalyst for resuming drilling in Harrison County? - Management indicated that discussions related to local demand and opportunities in the eastern portion of their acreage were the catalysts for this decision [29][30] Question: How does the increase in production impact maintenance CapEx? - Management stated that a 3% increase in production logically leads to a similar increase in maintenance capital, approximately $20 million more than the previous level [37][38] Question: What are the expectations for average lateral lengths in 2026? - Management expects average lateral lengths to increase to approximately 14,000 feet in 2026, up from the low 13,000 feet range this year [44] Question: What is the strategy regarding hedging? - Management indicated a dual approach, aiming to replicate a model with wide collars and a portion unhedged to maximize free cash flow yield while protecting against downside risks [49][50] Question: What are the expectations for the dry gas acreage in Harrison County? - Management anticipates a 50% improvement in well performance compared to historical averages, expecting deliverability of around 2 Bcf per thousand feet [55] Question: What is the company's approach to potential asset sales in Ohio? - Management confirmed they are in the middle of the marketing process for Ohio assets, which are considered highly desirable due to their contiguous acreage and midstream access [66][67]

Financial Data and Key Metrics Changes - The company reported a free cash flow of over $90 million for the quarter, with nearly $600 million generated year-to-date [15][16] - The company paid down approximately $180 million in debt and repurchased $163 million in stock year-to-date [15][16] - The average natural gas price hedged for 2026 is $3.82 per MMBtu, with 24% of expected volumes hedged [17] Business Line Data and Key Metrics Changes - The company achieved a record completion stage average of 14.5 stages per day, with significant improvements in drilling and completion results [4][5] - The Marcellus Core Fairway expansion has been driven by strong well performance and organic leasing efforts, leading to increased acreage acquisitions [5][6] Market Data and Key Metrics Changes - U.S. propane exports increased by over 120,000 barrels a day year-to-date, averaging 1.85 million barrels a day compared to 1.72 million barrels a day for the same period last year [9] - The projected NGL supply growth in the Permian is expected to slow dramatically in 2026, with total U.S. C3+ production growth nearly flat [8][9] Company Strategy and Development Direction - The company is focused on enhancing its position in the Marcellus region through strategic initiatives, including organic leasing and bolt-on acquisitions [3][4] - The company aims to capitalize on structural demand changes in the natural gas market driven by increasing U.S. LNG exports and natural gas power generation [2][3] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the natural gas market, anticipating a significant demand surge due to new LNG capacity additions and power demand increases [12][13] - The company is positioned to respond to regional demand increases and is evaluating opportunities for growth while maintaining a disciplined approach to capital expenditures [18][36] Other Important Information - The company has hedged 28% of its expected natural gas volumes in 2026 with wide collars between $3.22 and $5.83 per MMBtu [17] - Management highlighted the importance of being countercyclical in share repurchases and transactions, especially in a low commodity price environment [45] Q&A Session Summary Question: What was the catalyst for resuming drilling in Harrison County? - The catalyst was the increasing local demand related to data centers and power deals, prompting the company to return to gas drilling in the area [19][20] Question: How does the recent production increase impact maintenance CapEx? - The production increase is expected to lead to a proportional increase in maintenance capital, estimated at an incremental $20 million [23] Question: What is the outlook for the 2026 program? - The company is maintaining a production level around 3.5 to 3.525 Bcf per day, with decisions on drilling partnerships still to be determined [22] Question: How does the company view its acquisitions? - The company sees acquisitions as opportunities that arise based on its dominant position in the West Virginia Marcellus, evaluating them as they come [24] Question: What are the expectations for the uplift in dry gas production? - The company expects about a 50% improvement in production from historical type curves, anticipating 2 Bcf per thousand feet [30] Question: What is the strategy regarding hedging? - The company has adopted a more aggressive hedging strategy, locking in above 5% free cash flow yields while maintaining exposure to rising prices [27][28] Question: What is the status of the Ohio asset sales process? - The company is in the middle of the process and is encouraged by the desirability of the assets due to their contiguous acreage and midstream infrastructure [36][38]