PITTSBURGH — At a time when many other companies are withdrawing future expectations amid Covid-19-related shocks to the economy and an unstable energy market, a local natural gas producer is laying out a seven-year plan that increases free cash flow at the same time it eliminates production growth.
CNX Resources Corp. (NYSE: CNX) provided investors a detailed outlook on 2020 and 2021, which includes a lowered amount of spending on drilling as well as plans to keep its natural gas production at around the same level. It also plans between 2022 and 2026 to drill about 25 wells a year and produce 560 billion cubic feet of natural gas (BCF) while spending at least $100 million less a year on capital projects.
CNX Resources Corp. (NYSE: CNX) is cutting $45 million more from its 2020 capital budget, spending between $405 million and $465 million. It’s also lowering its expected production to between 490 billion cubic feet of natural gas and 530 billion cubic feet, lower than the 525 BCF-555 BCF it had previously expected. Free cash flow will go to reduce debt.
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