CNX 2Q – Profits Up, Production Up, Expenses Down, Free Cash Flows
The world of Big Investing is often a mystery for us. CNX Resources issued a stellar update last Thursday. The company made $33 million in profit for the quarter, versus losing $354 million in 2Q21. It generated $62 million in free cash flow. Total 2Q revenues of $473 million improved 32% year over year from the prior-quarter level of $359 million. CNX sold its gas for an average of $3.32 per thousand cubic feet equivalent (Mcfe), up 28% from the year-ago figure of $2.60/Mcfe. Production costs were $1.58/Mcfe, down 1.3% from one year ago. And yet Wall Street analysts somehow “expected” more, and punished the stock by selling it, causing an initial dip of 9% in the share price. Go figure.
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Boom! The hammer has dropped on five of six companies identified by West Virginia as engaging in “boycotts of fossil fuel companies.” In June, WV State Treasurer Riley Moore sent a letter to six big banks/investment firms alerting them they are about to be added to the state’s “blacklist” for violating policies by not investing or doing business with fossil fuel companies (see 
Two weeks ago, Pennsylvania House Bill (HB) 2644 was passed into law, becoming Act 96 of 2022. The new law requires the state Dept. of Environmental Protection (DEP) to use a portion of new federal funding to create a grant program to support experienced well-plugging companies that work to maximize the volume of orphan wells being plugged in the Commonwealth. It also keeps the right to raise bonding amounts for conventional wells with the legislature rather than allowing PA’s unelected Democrat bureaucrats in the bowels of the DEP’s Environmental Quality Board (EQB) from doing it–which has the left screaming bloody murder.
Once upon a time, there was a “we’re all in this together” spirit with respect to cleaning up the environment and protecting Mom Earth. But then something happened, and common sense and civility went right out the door. The left elevated the climate to become its new religion and now brooks no dissent from its extreme positions. If you do not agree with the left, if you want to debate and call attention to and poke holes in arguments they make about the climate, you are labeled an apostate, a climate heretic, and banished (or worse). You likely don’t know about efforts by oil and gas companies, particularly in the Marcellus/Utica, to clean up the environment and make planet earth a better place to live. You don’t know about those efforts because the left silences Big Media and won’t allow it to report “the rest of the story,” as Paul Harvey used to say.
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