First-Half Capital Allocation
Capital spending is front-weighted with ~60% of 2026 CapEx expected in the first half, providing flexibility to accelerate activity in H2 if market conditions warrant.
Stable Production Profile
Management expects a relatively flat production profile across 2026 despite first-half CapEx weighting, enabling predictable volumes throughout the year.
Utica Program Progress and Cost Control
Three deep Utica wells were turned in line during the quarter and performance is in line with expectations; average Utica drilling cost guided at approximately $1,700 per foot. Company will complete about five Utica laterals this year.
RMG / 45Z Run Rate
Current 45Z production/guidance implies a run rate of roughly $30 million per year based on the initial proposed guidance.
Hedging Position and Price Targeting
Company is already a little over 60% hedged into 2027 with a target of being ~80% hedged heading into the year; weighted-average NYMEX in the 2027 book is around $4.00, which management views as attractive for hedging.
Operational Resilience During Cold Weather
Management reported no material operational disruptions from recent extreme cold events; reported results already incorporate any expected short-term impacts.
Inventory Runway
Remaining inventory in core SW/SE PA is roughly 40,000–50,000 acres, supporting development toward the end of the decade at the current activity level.