CNX Resources: The Lowest Cost Producer Eating Itself Alive
It eats its own shares like Alpha. It produces cheaper than Warrior. And hated as a dying industry.
“Heads, I win. Tails, I don't lose much.” - Mohnish Pabrai
Two men retired in September 2025. Three days apart.
One was Mark Leonard, who built Constellation Software. The market noticed. The stock fell 17 percent in a week.
The other was Nick DeIuliis, who built CNX into one of the cleanest cannibals in America. Nobody noticed.
Today’s trend is that the biggest companies on Earth are fighting over electricity.
Microsoft is paying to restart a nuclear reactor at Three Mile Island. A twenty year deal. Meta locked up the Clinton nuclear plant in Illinois for twenty years. Amazon went to Talen and built a structure that now runs to almost two gigawatts through the year 2042.
These are the richest companies in the world signing contracts longer than most marriages, just to be sure they have power. Artificial intelligence eats electricity.
In 2023 American data centers used about 176 terawatt hours of power. Lawrence Berkeley Lab thinks that number could more than triple by 2028. The IEA says data centers will be responsible for nearly half of all the growth in US electricity demand for the rest of this decade.
These machines run twenty four hours a day, every day. They cannot wait for the wind to blow or the sun to rise. They need power that is always on. There are only a few things that do that at scale. Nuclear is one.
The other is natural gas.
The IEA says it plainly. Gas is the most scalable always on resource the United States has, and it remains the dominant near term fuel feeding these data centers. Texas alone is tracking over 400 gigawatts of large load interconnection requests. Almost ninety percent of it is data centers.
So picture the perfect company for this moment.
A lowest cost producer of natural gas. Sitting right on top of the demand. Cheaper than everyone in the country. Profitable in every single year, good or bad. Run by management that takes the cash and uses it to swallow its own shares.
A cannibal. In a hated industry. Exactly the kind of business I build my portfolio around.
That company exists. Its name is CNX Resources.
