PITTSBURGH, April 9,
2024 /PRNewswire/ -- CNX Resources Corporation
(NYSE: CNX) today announced that it is nearing completion of its
Kiski Water Line project, which will serve the Company's local
operational needs, reduce the local impact of natural gas
development, and potentially optimize regional water resources by
providing additional reliable water infrastructure to area
communities.
The $20 million project is
expected to be completed in June 2024
and will serve future natural gas development in the area. During
voluntary or mandatory water conservation periods, the 20" Kiski
Water Line is expected to serve as the primary alternative to water
purchased from the Municipal Authority of Westmoreland County (MAWC). The water line
also significantly reduces the need for CNX to utilize water
trucking in the County, mitigating the community impact of the
Company's local operations.
Importantly, the project also offers unprecedented potential
future opportunity to improve and optimize regional water
infrastructure and resources. With regulatory approvals and minor
equipment modifications, the water line could be used to provide
MAWC and the reservoir with optionality during Kiski River high
flow periods. Such activity could better position the Beaver Run
Reservoir to maintain normal service during seasonally dry periods
and mitigate drought and residential conservation risk. The project
significantly improves area water resource resilience. Other
potential community applications that could benefit from the
project include freshwater agricultural needs, industrial use, and
other various community needs.
Realizing the project's full potential will require partnership
and input from various stakeholders, and CNX looks forward to
engaging in discussion with the Pennsylvania Department of
Environmental Protection, local officials, the business community,
and the MAWC.
CNX Chief Operating Officer Nav
Behl commented, "CNX is pleased to be able to make this
significant investment in northern Westmoreland County communities and we look
forward to engaging with local officials and other stakeholders to
determine how the Company's investment can be leveraged to maximize
benefits." Mr. Behl continued, "Since we began operating in
the area fifteen years ago, CNX has remained steadfast in our
commitment to improving lives and opportunities for area residents.
Our approach to environmental stewardship mirrors that of our
community investment across Appalachia: one of transparency and a
dedication to protecting and improving the places where we live for
future generations."
The Kiski Water Line project is a continuation of CNX's
substantial positive economic impact on the local area.
From January through mid-April
2024, CNX purchased approximately 53 million gallons of
untreated water from MAWC that generated more than $500,000 in revenue to the water authority. The
total CNX 2024 withdraw represents approximately 2 ½ days of
typical MAWC residential water usage. In all of 2023, CNX's
operations purchased approximately 10 million gallons of water,
which is less than half of one day of typical MAWC residential
usage, providing an additional $55,000 in revenue to the water authority. To put
these purchased volumes into perspective, CNX's water usage from
the Beaver Run Reservoir in all of 2023 and 2024 totaled just three
percent of the water added to the reservoir during a recent
three-day rain event in the region.
Moving forward, the Company intends to optimize its water
strategy by leveraging all resources to ensure a minimal level of
community impact.
Water revenue is only a portion of CNX's ongoing, overall
economic investment in the local area. Last year, CNX paid
$1.2 million in natural gas royalties
to area residents. Over the last four years, CNX has paid more than
$10.7 million in royalties to
Westmoreland County residents,
invested millions of dollars in public road and infrastructure
upgrades (including within the MAWC's property), and supported
emergency response and other important community programs through
the CNX Foundation. These CNX investments are in addition to
Westmoreland County and its
municipalities receiving nearly $1.4
million in 2023 impact fee revenues from CNX activities, or
funds from the state's tax on natural gas that uniquely support
local government, infrastructure, and community initiatives.
Cautionary Statements
We are including the following
cautionary statement in this press release to make applicable and
take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 for any forward-looking
statements made by, or on behalf of us. With the exception of
historical matters, the matters discussed in this press release are
forward-looking statements (as defined in 21E of the Securities
Exchange Act of 1934 (the "Exchange Act")) that involve risks and
uncertainties that could cause actual results to differ materially
from projected results. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. These forward-looking statements may include
projections and estimates concerning the timing and success of
specific projects and our future production, revenues, income, and
capital spending. When we use the words "believe," "intend,"
"expect," "may," "should," "anticipate," "could," "estimate,"
"plan," "predict," "project," "will," or their negatives, or other
similar expressions, the statements which include those words are
usually forward-looking statements. When we describe a strategy
that involves risks or uncertainties, we are making forward-looking
statements. The forward-looking statements in this press release
speak only as of the date of this press release; we disclaim any
obligation to update these statements. We have based these
forward-looking statements on our current expectations and
assumptions about future events. While our management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies, and uncertainties, most
of which are difficult to predict and many of which are beyond our
control. Specific factors that could cause future actual results to
differ materially from the forward-looking statements are described
in detail under the captions "Forward-Looking Statements" and "Risk
Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2023 filed with the
Securities and Exchange Commission (SEC) and any subsequent reports
filed with the SEC. Those risk factors discuss, among other
matters, pricing volatility or pricing decline for natural gas and
NGLs; local, regional and national economic conditions and the
impact they may have on our customers; the impact of events beyond
our control, including a global or domestic health crisis;
dependence on gathering, processing and transportation facilities
and other midstream facilities owned by others; conditions in the
oil and gas industry; our current long-term debt obligations, and
the terms of the agreements that govern that debt; strategic
determinations, including the allocation of capital and other
resources to strategic opportunities; cyber-incidents targeting our
systems, oil and natural gas industry systems and infrastructure,
or the systems of our third-party service providers; and changes in
safety, health, environmental and other regulations.
ABOUT CNX RESOURCES
CNX Resources Corporation (NYSE:
CNX) is unique. We are a premier, ultra-low carbon intensive
natural gas development, production, midstream, and technology
company centered in Appalachia, one of the most energy abundant
regions in the world. With the benefit of a 160-year regional
legacy, substantial asset base, leading core operational
competencies, technology development and innovation, and astute
capital allocation methodologies, we responsibly develop our
resources and deploy free cash flow to create long-term per share
value for our shareholders, employees, and the communities where we
operate. As of December 31, 2023, CNX
had 8.74 trillion cubic feet equivalent of proved natural gas
reserves. The company is a member of the Standard & Poor's
Midcap 400 Index. Additional information is available at
www.cnx.com.
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SOURCE CNX Resources Corporation