CNX Resources

Last updated
CNX Resources Corporation
Company type Public company
NYSE:  CNX
S&P 400 component
Industry Natural gas
Key people
Nicholas J. DeIuliis, CEO and President
Donald W. Rush, CFO
Chad A. Griffith, Chief operating officer
Products Natural gas
Production output
1.617 billion cubic feet of natural gas equivalent per day (2021)
RevenueDecrease2.svg $756 million (2021)
Decrease2.svg -$498 million (2021)
Total assets Increase2.svg $8.100 billion (2021)
Total equity Decrease2.svg $3.700 billion (2021)
Number of employees
441 (2021)
Website www.cnx.com
Footnotes /references
[1]
CNX Resources Headquarters CNX Resources Headquarters.jpeg
CNX Resources Headquarters

CNX Resources Corporation is a natural gas company based in Pittsburgh with operations in the Appalachian Basin, primarily in the Marcellus Shale and Utica Shale in Pennsylvania, Ohio and West Virginia. It also develops coalbed methane properties in Virginia along with a methane capture and abatement program. The company also has extensive midstream operations and is one of the largest producers of natural gas in the United States.

Contents

History

CNX Resources traces its roots to Consolidation Coal Company, a coal mining company founded in 1860. [2] Dupont and Rheinbraun A.G. formed a joint venture in 1991. [3] [2] In May 1999, the company became a public company via an initial public offering. [4]

In 2010, the company moved its headquarters to Cecil Township, Washington County, Pennsylvania. [5] [6] The company also acquired the natural gas business of Dominion Resources in 2010, which increased its drilling properties and made it one of the largest natural gas production companies in the Marcellus Shale formation. [7]

In 2017, the company completed the corporate spin-off of Consol Energy and changed its name to CNX Resources Corporation. [8] Nicholas (Nick) J. Deiuliis, who was the President and CEO of Consol, continued in those same roles at CNX. [9]

In January 2018, the company purchased a 50% interest in CONE Gathering LLC from Noble Energy. [10] In 2020 CNX acquired all outstanding common shares of  CNX Midstream Partners LP. [11]

The company’s methane abatement program captures methane released from coal and the surrounding rock strata from mining activities. Coalbed methane is a greenhouse gas emitted from both active and closed (or abandoned) underground and surface coal mines that would be emitted to atmosphere if not for capture and abatement programs. [12] To further reduce gas emissions, CNX was the first driller in the Appalachian Basin region to eliminate diesel engines from their hydraulic fracturing fleet and switched to all-electric. [13] [14] [15]

In 2021, the company created the CNX Foundation to administer its $30 million commitment to help those in the Appalachian Basin region achieve economic success. [16] CNX also created a mentorship academy for high schoolers in disadvantaged rural and urban areas. [17] [18] The focus is on exposing students to career opportunities and ensuring they secure a job or apprenticeship by their high school graduation. [17] Under the program, the students meet once a month, attend field visits with various regional employers, and have on-site visits and guest speakers. [17] [18] There is also coaching focused on resume creation, job interviews, civics and business, and dressing for success. [17] [18] The Bus Stops Here Foundation and the Builders Guild of Western Pennsylvania are original partners in the program. [18] CNX CEO Nick Deiuliis contributed $1 million of his 2022 compensation to support the academy and proceeds from his book Precipice are also supporting the academy. [19]

As of July 2022, the CNX Foundation had provided a $1 million grant to bring broadband to Greene County, [16] [20] $400,000 in career training, and $200,000 for technology needs in disadvantaged school districts with the Jerome Bettis Cyber Bus Project. [20] In addition to the Foundation, CNX works with local communities through programs like Domestic Violence Services and Food Helpers. [16]

In May 2022, CNX partnered with the Pittsburgh International Airport (PIT) to produce alternative fuels and electricity from natural gas wells that CNX operates on airport property. [21] [22] [23] PIT sits atop shale formations including the Utica and Marcellus, a natural gas reserve that runs under parts of New York, Pennsylvania, Ohio, West Virginia, Maryland, and Virginia. [24] CNX will produce compressed natural gas (CNG) onsite to fuel land fleet transportation, and liquefied natural gas (LNG) as an alternative jet fuel. [21] [25]

CNX started partnering with PIT in 2013 and began drilling natural gas wells in 2014. [21] As of 2022, the partnership has supported a 5-generator, 20 MW micro-grid powered by natural gas, and a 3 MW solar array that provides 100% of the airport’s electricity needs. [21] [26] [24]

In July 2022, CNX committed to a 15 year deal with NewLight Technologies to supply methane for the production of biomaterials. [27]

In February 2024, gas prices reached a 3.5 year low, prompting CNX Resources to reduce production and postpone well completion at three future Marcellus Shale sites consisting of 11 wells. [28]

The company continues its buyback program. As of March 2024, CNX Resources used free cash flow to buy out 74 million shares (a 33% reduction in shares in circulation since the third quarter of 2020). At the same time, the company was left with $1.1 billion from the $2.9 billion buyback program. [29]

Awards and recognition

In 2020 and 2022, CNX Resources was named to Newsweek's annual "America's Most Responsible Companies" list. [30] [31] [16] In 2021, the company received an ESG Top Performer award from Hart Energy. [32] [33]

CNX also received the Washington County Community Foundation’s Charles C. Keller Excellence Award for Corporate Philanthropy. [16]

See also

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References

  1. ↑ "CNX Resources Corporation 2021 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. 1 2 "History of CONSOL Energy Inc". FundingUniverse.
  3. ↑ "COMPANY NEWS; Du Pont Agrees to Sell Half of Coal Operation" . The New York Times . Associated Press. November 28, 1991. ISSN   0362-4331.
  4. ↑ Guzzo, Maria (May 10, 1999). "Consol IPO brings less than expected". American City Business Journals .
  5. ↑ "Consol Energy Corporate Headquarters". U.S. Green Building Council.
  6. ↑ "Consol moving to Southpointe". Pittsburgh Post-Gazette . April 19, 2006.
  7. ↑ Maher, Kris; Casselman, Ben (March 16, 2010). "Coal Giant Consol Is Latest to Buy Gas" . The Wall Street Journal . ISSN   0099-9660.
  8. ↑ Dezember, Ryan (November 29, 2017). "One of America's Oldest Energy Producers Splits in Two" .
  9. ↑ "CNX Resources completes spin-off of Consol Energy". Observer-Reporter. 2019-11-30. Retrieved 2022-09-25.
  10. ↑ Federoff, Stacey (January 4, 2018). "CNX closes deal to acquire interest in Cone Midstream Partners". American City Business Journals .
  11. ↑ "CNX to acquire all outstanding common shares of CNX Midstream for $357 million". www.bizjournals.com. Retrieved 2022-08-31.
  12. ↑ "About Coal Mine Methane". www.epa.gov. 2015-12-08. Retrieved 2022-09-20.
  13. ↑ Gough, Paul J. (2021-06-22). "Here's how CNX, a major gas producer, made a huge reduction in methane emissions". www.bizjournals.com. Retrieved 2022-09-20.
  14. ↑ Gough, Paul J. (2019-07-03). "CNX up and running with the region's only all-electric hydraulic fracturing unit". www.bizjournals.com. Retrieved 2022-09-20.
  15. ↑ Whitfield, Stephen (2021-03-16). "Are electrically powered fleets the future of fracking?". Drilling Contractor. Retrieved 2022-09-20.
  16. 1 2 3 4 5 Tecklenburg, Dorothy (2022-06-09). "CNX builds community connections through philanthropy". Observer-Reporter. Retrieved 2022-09-08.
  17. 1 2 3 4 Zito, Salena (2022-03-06). "An energy company shows students the path to prosperity". Washington Examiner. Retrieved 2022-09-08.
  18. 1 2 3 4 Gough, Paul J. (2021-04-07). "CNX CEO Launches Mentorship Academy For Urban, Rural Disadvantaged Youth". Pittsburgh Business Times. Retrieved 2022-09-08.
  19. ↑ Gough, Paul J. (2021-12-16). "CNX CEO DeIuliis will put $1M in compensation to Mentorship Academy". www.bizjournals.com. Retrieved 2022-10-09.
  20. 1 2 Gough, Paul J. (2021-07-01). "CNX Foundation launched to invest $30M commitment to community". www.bizjournals.com. Retrieved 2022-09-15.
  21. 1 2 3 4 Blackmon, David (2022-05-28). "Airport And Gas Producer Partner In Near-Term Aviation Carbon Reduction Solution". Forbes. Retrieved 2022-09-30.
  22. ↑ "CNX, Pittsburgh International Airport Form Partnership to Convert Natgas into Alternative Fuel". www.hartenergy.com. 2022-05-24. Retrieved 2022-09-30.
  23. ↑ Doughty, Nate (2022-05-20). "Pittsburgh International Airport looks to broaden on-site natural gas use with CNX partnership". www.bizjournals.com. Retrieved 2022-10-04.
  24. 1 2 Tegler, Eric (2021-07-21). "Pittsburgh Airport's Microgrid Is A Worthy But Tough To Duplicate Example Of Resiliency". Forbes. Retrieved 2022-10-04.
  25. ↑ Veazey, Matthew (2022-05-27). "CNX, Pittsburgh Airport to Showcase Natural Gas Aviation Potential with Utica Project". Natural Gas Intelligence. Retrieved 2022-10-11.
  26. ↑ Fiorilli, Natalie (2019-10-18). "PIT Will Be First Major U.S. Airport Powered Entirely by Microgrid". Blue Sky PIT News Site. Retrieved 2022-10-11.
  27. ↑ "CNX investing in company that makes bioplastics out of greenhouse gasses. CNX will supply the gasses". Pittsburgh Post-Gazette. Retrieved 2022-08-25.
  28. ↑ "CNX to delay certain Marcellus activity, reduce production by about 30 bcfe". Oil&Gas Production. Archived from the original on 2023-04-21. Retrieved 2024-04-21.{{cite web}}: |archive-date= / |archive-url= timestamp mismatch; 2024-04-21 suggested (help)
  29. ↑ "CNX Resources (CNX) Cuts 2024 Production & Capital Investment". Nasdaq. Archived from the original on 2024-04-21. Retrieved 2024-04-21.
  30. ↑ "Here are the 20 most responsible companies in Pennsylvania, according to Newsweek". The Patriot-News . December 8, 2020.
  31. ↑ "America's Most Responsible Companies 2021". Newsweek . November 24, 2020.
  32. ↑ "Top ESG Performers Recognized at Energy ESG Conference". www.hartenergy.com. 2021-11-29. Retrieved 2022-10-06.
  33. ↑ Carey, Liz (2022-04-29). "CNX, Evolution Well Services announce long-term Appalachian contract". Pennsylvania Business Report. Retrieved 2022-10-06.
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