Our company took on a new name and a new identity during 2017, but our 150-year legacy and our roots in the Appalachian Basin remain as strong and as deep as ever.
From our humble beginning in 1864, we have continually embraced change and transformed ourselves many times. Through the Mellon family’s consolidation of the coal estate in Appalachia (later Consolidation Coal Company and CONSOL Energy) and John D. Rockefeller’s consolidation of the natural gas estate in that same footprint (giving rise to Consolidated Natural Gas and later Dominion Resources), the corporate genealogy of today’s CNX affords our company a unique legacy and asset base.
Those legendary roots in the Appalachian Basin also give us a unique perspective when it comes to corporate social responsibility. Generation after generation of our employees have called this region home and continue to do so today. The pride we take in our hometown extends to each one of our employees and manifests itself in the way we conduct our business and strive to be a responsible corporate citizen.
Our transformation into CNX during 2017 was the culmination of a strategy over a decade in the making. CNX is now a premier, pure-play natural gas exploration and production company possessing a start-up mentality, one of the largest acreage positions in the Marcellus and Utica shales, a low-cost structure, a solid balance sheet and a unique stacked pay opportunity set amassed over many generations. Because of our legacy and profound commitment to the areas where we live and work, we believe our approach to corporate responsibility is a differentiator from our peers and a proxy for reducing risk across our business.
Managing our risk profile and “future-proofing” our business, thereby creating value for all stakeholders, are the foundational elements of our commitment to corporate responsibility. But the vital obligation of being a good corporate citizen also breathes life into our core values of responsibility, which encompass safety and environmental compliance, ownership and excellence. In short, not only does our commitment to responsible business practices create long-term value for our employees, our shareholders and our communities, but most importantly, it is the right thing to do and part of who we are at CNX.
The natural gas revolution occurring right here in the heart of Appalachia is reducing carbon emissions, enhancing air quality and improving lives in the U.S. and beyond. A lower-carbon future, underpinned by abundant, affordable natural gas, will continue to drive prosperity and energy security for the next generation. CNX is proud to be part of this very bright future for our region and our nation.
During 2017, we continued to execute and deliver on the company’s strategic and operational goals, while navigating the separation of our gas and coal businesses. This report also highlights key accomplishments in terms of our commitment to responsible business practices including:
- Cycle time reductions that both maximize operational efficiency and minimize health and safety risk;
- Continuing to exceed industry averages in both employee and contractor safety incident rates;
- Reducing the number of environmental agency enforcement actions by over 35 percent.
Our efforts to enhance our operations, enrich our communities and drive value for all our stakeholders are a continuous focus across CNX, and we make progress each day. On behalf of CNX, thank you for the opportunity to share this report with you, and I encourage you to learn more about our exciting new company.
President and Chief Executive Officer