Business Breakdowns
Episode 152 CNX Resources: Hit the Gas
Business Breakdowns

Episode 152: CNX Resources: Hit the Gas

Business Breakdowns

Episode 152

CNX Resources: Hit the Gas

James Wilson is a fund manager at Phoenix Asset Management. We cover how CNX has reinvented itself continuously across its 150-year history, why strong cost control and management sets it apart from competitors, and how it might continue to expand via acquisitions in the future.

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(00:00:00) - Welcome to Business Breakdowns

(00:02:32) - First Question - The History and Evolution of CNX

(00:03:17) - Understanding the Business Model 

(00:10:33) - The Transition from Coal to Natural Gas in the US

(00:16:44) - Gathering and Compressing Assets to Leverage Fixed Costs 

(00:21:45) - Understanding the Unit Economics of CNX

(00:28:27) - The Competitive Landscape in Drilling

(00:30:05) - The Engineering Excellence and Leadership at CNX

(00:30:46) - Exploring the Potential of the Utica Shale

(00:32:27) - The Economics of Drilling

(00:34:27) - Managing the Volatility of Natural Gas Prices

(00:41:37) - The Impact of Regulation on the Drilling Industry

(00:44:59) - The Role of Acquisitions in Expanding Reserves

(00:51:14) - Lessons Learned From CNX

 

CNX Resources: Hit the Gas

Introduction

Matt
This is Matt Reustle, and today, we are going into the land of oil and gas to break down CNX. The history of CNX dates back over 150 years. The company's evolution has been very similar to the U.S.' evolution when it comes to energy production.

Our guest today is James Wilson, manager of the Huginn Fund at Phoenix Asset Management. We cover the CNX backstory and how they took their coal roots to build this massive natural gas business. And we discuss what differentiates CNX and its management team and its operational strategy relative to E&P peers. So please enjoy this breakdown of CNX.

History of CNX and Other E&P Businesses

Matt
All right, James, excited to have you here, and I am excited to break down a commodity name. It's not one that we often cover on Breakdowns, let alone in the fossil fuel space. And I was thinking about where to start with this business. And I think we could just do a short introduction on CNX, then we can get into some of the macro of the commodity itself, and then we can dive into what makes CNX different. And I know you've done a lot of research on this. So excited to get to that point.

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