Q2 2024 CNX Resources Corp Earnings Call Transcript
Key Points
- CNX Resources Corp (CNX) reported Q2 volumes in line with annual projections, achieving 4.5 Bcf, which is on the higher end of their guidance range.
- The company saw an increase in other revenue and operating income, driven by higher environmental attribute sales and strong water revenue from third-party fracs.
- The deep Utica wells are meeting expectations on both cost and performance, indicating potential for future growth.
- CNX Resources Corp (CNX) is developing new technologies, such as AutoSet and CNG, which are expected to contribute meaningfully to revenue and cash flow starting in 2025.
- Service costs have remained flat in the first half of the year, and projections indicate they will stay flat for the remainder of the year, providing cost stability.
- The new technologies division's revenue contributions for 2024 are not expected to be material, with significant impacts anticipated only from 2025 onwards.
- The company is not curtailing any additional production but is cautious about growing production next year due to uncertain pricing developments.
- The impact of the 45V hydrogen tax credit on coal mine methane projects is still uncertain, with guidance expected in Q3 or Q4, delaying potential project implementations.
- Hedge book activity has decreased, with a lower percentage of future production hedged compared to previous years, potentially increasing exposure to market volatility.
- Despite positive developments, the company has not provided specific details on the financial impact of third-party CNG sales, leaving some uncertainty about future revenue streams.
Good morning and welcome to the CNX Resources second quarter 2024 Q&A conference call. (Operator instructions) Please note this event is being recorded.
I would now like to turn the conference over to Tyler Lewis, Vice President of Investor Relations. Please go ahead.
Thank you, and good morning to everybody.
Welcome to CNX's second quarter Q&A conference call. Today, we will be answering questions related to our second quarter results. This morning, we posted to our Investor Relations website an updated slide presentation and detailed second quarter earnings release data such as quarterly E&P data, financial statements, and non-GAAP reconciliations, which can be found in a document titled 2Q 2024 earnings results and supplemental information of CNX Resources.
Also, we posted to our Investor Relations website, our prepared remarks for the quarter which we hope everyone had a chance to read before the call as the call today will be used exclusively for
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