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 stable production profile throughout the year, with first-half capital expenditures (CapEx) expected to account for about 60% of the total annual CapEx [9] - Current production levels are generating approximately $30 million annually under the proposed guidance for the 45Z program [11] - The average drilling cost for Utica wells is approximately $1,700 per foot, with performance aligned with expectations [27] Business Line Data and Key Metrics Changes - The RNG business line is experiencing stable pricing in the PA Tier 1 REC market, with a long-term bullish outlook contingent on increased renewable energy contributions to the grid [10] - Coal mine methane volumes have seen a modest year-over-year decline, primarily driven by underlying mining activity, with expectations of stability moving forward [30] Market Data and Key Metrics Changes - The company is currently over 60% hedged for 2027, targeting a weighted average NYMEX price of about $4, which is favorable for business performance [33][34] - The company is not seeing significant price activity beyond February contracts, which influences their decision-making regarding increased frac activity [25] Company Strategy and Development Direction - The company is focused on maintaining production levels while being responsive to material changes in gas prices, with a cautious approach to increasing activity based on long-term demand visibility [39] - There is an emphasis on the importance of infrastructure projects and AI demand for future growth, although current production remains at maintenance levels due to regulatory constraints [39][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational preparedness during extreme cold weather events, indicating no expected disruptions to operations or volumes [19] - The company is optimistic about the deep Utica program, with ongoing evaluations of well spacing and performance [17] Other Important Information - The company has internalized and adopted the AutoSep technology, which is expected to provide cost savings and environmental benefits, although it has not yet materially impacted financial results [21] - The company is planning to provide updated acreage counts and inventory runway details by the end of Q1 [46] Q&A Session Summary Question: Inquiry about capital and TIL program translating to production profile - Management indicated that first-half CapEx would be about 60% of the total, allowing flexibility for potential acceleration in the second half [9] Question: Outlook on RNG business line and AEC pricing - Management noted that the PA Tier 1 REC market has stabilized, with long-term pricing expected to improve as renewable energy standards tighten [10] Question: Clarification on Utica program size and timing - Management clarified that the smaller program size is due to timing, with confidence in the deep Utica program and plans for future fracking activity [16][17] Question: Expectations for operational disruptions due to weather - Management confirmed that they do not expect any disruptions, as the team has been well-prepared [19] Question: Update on new tech business and AutoSep - Management reported that AutoSep technology has been adopted internally, with positive early results, but no material financial impact yet [21] Question: Hedging strategy for 2027 - Management stated they are over 60% hedged for 2027, targeting a favorable NYMEX price [33][34] Question: Incremental takeaway and infrastructure projects - Management noted that while some low-hanging fruit has been taken, there are still proposed projects that need approval, and current production remains at maintenance levels [42]