CNX Resources (NYSE:CNX) executives used the company’s fourth-quarter 2025 Q&A call to discuss 2026 capital pacing, production expectations, early takeaways from its deep Utica program, and updates across its RNG and technology initiatives. Management also addressed operational readiness amid an ongoing cold weather event, emphasizing that the company did not expect meaningful near-term disruption.
Cold weather preparedness and operations
President and CEO Alan Shepard opened the call with comments recognizing industry workers responding to “extraordinary cold weather.” In response to an analyst question about potential first-quarter volume impacts, Shepard said CNX had been preparing for weeks and that the team had done “a tremendous job keeping the field running.” He added that the results released that morning included “any expected disruptions,” and said the company was not expecting additional disruption.
2026 capital pacing, flat production, and flexibility
Good said the first-half weighting provides flexibility later in the year, including the ability to accelerate completion activity if market conditions warrant.
Management also addressed how it could respond to changes in natural gas prices. Good said any potential “uptick in activity” is not included in CNX’s base capital guidance ranges, and noted that after the February contract, the forward strip “falls off pretty significantly.” Shepard added that CNX does not intend to “chase” short-term spot price strength, and said any decision to add activity would likely need to be tied to longer-term demand catalysts, such as “new infrastructure, new power plants,” or other factors that move the 2027–2029 strip higher.
Utica program: timing, well costs, and spacing tests
Several analysts focused on CNX’s Utica program, with questions about the number of anticipated turn-in-lines and early results from recent deep Utica wells.
Shepard said the appearance of a smaller 2026 Utica turn-in-line schedule was primarily a timing issue, rather than a change in confidence. He noted the company had a number of turn-in-lines from last year coming online and said CNX also plans to “harvest” economic inventory in Southwest Pennsylvania. He said the company expects to return to Utica completion activity later in the year.
COO Navneet Behl reiterated management’s confidence in the deep Utica program and said CNX expects to complete about five Utica laterals during 2026, characterizing the pacing as “a function of timing on when we complete it.”
Asked about the three deep Utica wells turned in line during the quarter, management said costs and performance were tracking in line with expectations. Behl said CNX’s average Utica drilling cost is about $1,700 per foot, consistent with prior guidance. On well performance, he said results were in line with expectations and that the company is now focused on spacing evaluation, with two spacing tests underway:
- 1,300-foot spacing
- 1,500-foot spacing
Behl said CNX plans to share more information as it gathers additional results.
RNG: REC pricing stability and 45Z outlook
CNX also discussed its RNG-related economics, including Pennsylvania Tier 1 renewable energy credit (REC) pricing and the outlook for 45Z-related value.
On the PA Tier 1 REC market, management said pricing had been “pretty stable” since around spring of the prior year, though it had “softened a little bit” with the change in administration. CNX described current pricing levels as broadly reflecting what is needed to underwrite new solar and wind development in PJM. Management said higher value per megawatt-hour would likely require “step-ups” in renewable contribution requirements, arguing that tighter standards would be the longer-term bullish driver for pricing.
On 45Z, management said that at current production levels, CNX is able to generate about $30 million per year on a run-rate basis under the initial proposed guidance. Management cautioned that it is still waiting on final guidance and said the outcome could include adjustments.
Coal mine methane visibility and hedging approach
Addressing coal mine methane volumes and modest year-over-year variability, Shepard said volume changes are driven primarily by activity at the underlying mine. He said CNX expects volumes to remain in a similar range moving forward, assuming the mine continues operating. He described it as a metallurgical mine in Virginia and said the life-of-mine is “20+ years,” adding that volume “wiggles” reflect longwall pace and gassing needs.
On hedging, CNX said it targets being approximately 80% hedged as it approaches 2027. Good said 2027 is “a really good year” for the company and noted a weighted average NYMEX price of about $4 for the hedge position discussed on the call. Management said CNX is already a little over 60% hedged for that year and expects to continue building out the book over time, with flexibility to be opportunistic given the current coverage.
Technology: AutoSep adoption and broader initiatives
CNX provided an update on its technology efforts, including AutoSep. Management said the company has fully internalized and adopted AutoSep in its own operations, using it on flowbacks and citing cost savings along with environmental and safety benefits. Management said CNX is a “non-op” on the broader commercialization effort and has outsourced the rollout to an oilfield services company, which is working to expand adoption across Appalachia. While management said it believes 2026 could be “an uptick year” for adoption, it added that the technology is not yet contributing materially to CNX’s financial results and that guidance would be provided if that changes.
Management also noted that other technology-related business concepts remain under consideration, but said there was nothing material to update at this time.
About CNX Resources (NYSE:CNX)
CNX Resources Corporation is a natural gas and natural gas liquids producer with operations concentrated in the Appalachian Basin. Established as an independent, publicly traded entity in 2018 following its spinoff from Consol Energy, the company focuses on the exploration, development and production of hydrocarbon resources in the Marcellus and Utica shales across Pennsylvania, West Virginia and Ohio.
In addition to its upstream activities, CNX Resources has invested in midstream infrastructure through its subsidiary that gathers, processes and transports natural gas.
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