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Shivam Gupta's avatar

Thought this was a good post by a Twitter account (@NextwaveEFT): https://docsend.com/view/ac9v44dswhtt4vbq

Not sure if you have encountered it, but highlights concerns over CNX's actual remaining inventory, figured I'd share

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Andrew Walker's avatar

I had not seen that. Thank you for sharing!

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rob's avatar

Thanks for sharing that

I've read numerous articles/posts that are extremely critical of CNX's asset quality and their inflated #s of "decades of tier 1 drilling locations" Based on Nextwave's analysis, they have significantly less drilling locations than they claim, and if you compare previous investor presentations, they have "updated" it to reflect much fewer sites.

Another thing that is an issue with CNX is their governance. They took out the midstream MLP at a depressed price/multiple, which screams poor governance. I'm pretty sure their ESG ratings aren't very high based on the "takeunder" of the LPs as well as the CEO pumping up his stock every opportunity he has.

If CNX was really that great, why did EQT / RRC / SWN decide to pursue other opportunities out there within the private space? Probably because everyone in the industry knows CNX management cannot be trusted nor can their asset quality

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