CNX RESOURCES CORPORATION 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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