CNX Resources Corp. on Thursday said it would spend more this year, primarily to cover higher-than-expected water costs and take care of problems at some of its well sites in Appalachia.

The company is now guiding for capital expenditures (capex) to come in at $900-950 million instead of its previous forecast of $790-915 million. More than half of the increase is due to well remediations and the higher cost of getting water trucked to its completion operations.

“We had four separate pads impacted in the first half of the year. That includes extended fishing operations on two pads where we had issues retrieving downhole equipment and two southwest Pennsylvania Marcellus pads where some abnormal conditions created issues with production casing cement that required repairs,” and slowed cycle times, COO Tim Dugan said during a call Thursday to discuss second quarter results. The issues have since been resolved or accounted for in the company’s revised spending plans, he said.

The remainder of the capex increase was due to inflation, steel tariffs and a prepayment related to a three-year agreement for an electric fracturing fleet.

CNX produced 122.6 Bcfe during the second quarter, up from 92.2 Bcfe in the year-ago period. Second quarter volumes declined from 1Q2018, when they came in at 129.5 Bcfe. The decrease was expected, however, after the company bought online just three wells during the second quarter, which was also its first without shallow oil and gas assets it sold at the beginning of the year.

The Marcellus Shale continued to anchor sales volume. CNX produced 64.7 Bcfe from the formation in the second quarter, up 14% from the year-ago period. Utica Shale volumes also continued to soar, driven mainly by the company’s assets in Monroe County, OH. Utica production was 42.6 Bcfe, or 209% higher than it was in 2Q2017.

Deep, dry Utica tests in southwest Pennsylvania continued during the quarter. The company’s Richhill 11E well in Greene County is currently flowing at 3.5 Bcfe per 1,000 feet of lateral, above the company’s guided type curve of 3.2 Bcfe/1,000 feet. In nearby Indiana County, another deep Utica well, the Marchand 3M, is also online. The company canceled plans for a pipeline to serve that pad earlier this year.

That hasn’t changed the company’s plans for the area, though. Dugan said the well is currently flowing into existing gathering infrastructure. “Infrastructure expansion has been deferred until more wells are drilled and midstream sizing can be properly addressed,” he added.

Average realized prices increased during the second quarter, going from $2.47/Mcfe in the year-ago period to $2.87/Mcfe. Revenue was up to $402.1 million, compared to $371.1 million in 2Q2017.

CNX reported net income of $42 million (19 cents/share) in the second quarter, versus net income of $170 million (73 cents) at the same time last year.