CNX increases spending to combat inflation, keep operations stable into 2023
Thursday, August 4, 2022
CNX Resources Corp. has shifted its plans for 2022 by increasing its capital expenditures under the pressure of inflation and a desire to keep its operations stable into next year, according to Natural Gas Intelligence.
The company is now planning for a range of $550-590 million in capital expenditures, which is an increase of $70 million from the midpoint of its previous forecast for this year.
During a recent call to discuss the company’s second-quarter results, CNX CFO Alan Shepard said the company plans to run a second rig for most of the second half of 2022 to ensure there are no delays in 2023 and is pre-buying tangible goods and services.
The company’s plans to keep a second rig online and accelerate three well turn-in-lines will cost around $25 million. Another $15 million has been allocated for innovation and emissions reductions, and an additional $30 million has been earmarked for rising costs related to inflation.
Learn more: Natural Gas Intelligence > CNX Increases Spending to Stay Ahead of Inflation
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