Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Alabama's Morning News.
Speaker 2 (00:01):
I'm JT joining us now Rusty Hudson, who is a
diversified energy a big corporation that obviously is in the
energy world domestically and globally.
Speaker 1 (00:11):
Rusty, welcome in, Thanks for being here, Thanks for having me.
Well with everything.
Speaker 2 (00:14):
Going on, before we jump into what's going on with
the tariffs and the energy world and this recent deal
he cut on minerals with Australia to sidestep China.
Speaker 1 (00:24):
I know you're watching all of this.
Speaker 2 (00:25):
It's indicators for your business and your board that you
get with in your operation every day. I wanted to
get as you are a part of the West Virginia
Mountain near football program booster there as well, but you
live here in Birmingham, which is kind of cool. Your
thoughts on this season. They are really struggling. But I
got to think, I tell Michael, you know he's coaching there,
(00:47):
that look, this is a building year. I mean, how
many players did we get from the portal I mean
it's like a fresh, almost one hundred percent clean slate.
Speaker 3 (00:56):
Oh yeah, well, if you have one hundred and five
players and eighty one more portal players coming in, if
you look at the records of all the teams that
took as many portal players as we have or even
a little less. It's a losing, you know, losing record
on the season. So you know it's Portal is not
the way to build a team. It's a way to
fill up gaps in your team. Right. But look, I'm
(01:17):
on the board chairman of the board of West Virginia University.
We're one hundred percent behind Rich. We know that he'll
get the job done. It's just going to take a
little bit of time. I think this recruiting class is
really really important, both high school and then also the
portal window in January.
Speaker 1 (01:31):
You know, and these guys are all new to each other.
Speaker 2 (01:34):
It takes time for them to gel build chemistry and
develop offense and defensive player leaders on the team and
you know, help the locker room stay focused. And because
everybody's new, it's like, okay, so I think you know,
I hope boosters, fans, ads, everybody up there. I think
they all get that. Don't you get that feeling that
(01:54):
hey they knew everybody knows this year is a building year.
Speaker 3 (01:58):
Oh yeah, I think we uh looks are always impatient. Yeah,
the board has to be patient, and we know we
hire the right coach.
Speaker 1 (02:06):
He's got the right.
Speaker 3 (02:07):
Pieces in place. Not to say he won't make some
changes in the off season to fill gaps and such,
but at the end of the day, we need more
program players, people that you get in the high school
ranks that are there for a while, and you fill
the gaps with some really talented portal players and let's
see what happens next year.
Speaker 2 (02:23):
Well, rich Rod's very fortunate that, in fact, he does
have everybody's supports internally in the board and the boosters
and as far as nil goes, I mean, West Virginia
is right there at the top with everybody.
Speaker 1 (02:37):
As far as the amount of money available, right, yeah.
Speaker 3 (02:39):
We're gonna we're gonna have one hundred percent you know,
the maximum that we can do rev share available for
football and then we'll have n I own money that
will put us in the top tier of the NCAA.
So you have to be able to compete at that point.
Speaker 2 (02:52):
Yeah, good news. I'm looking forward to it. So all right,
let's talk about energy, how everything is. I wanted to
get an update with you what's going on, what's going
on with the tariffs, And we talked before about this
that you know, I had to kind of keep an
eye on it and see what happens here, you know,
with the oil situation and energy in general, natural gas
as well. So what's you look at a thirty thousand
foot view of the picture with the Trump administration, the
(03:13):
global situation. How's your company feeling about things right now?
Speaker 3 (03:17):
Well, I think if you just look at the overall
energy picture for the United States, we're in a pretty
good position. Oil prices are low fifty dollars fifty eight dollars,
fifty seven dollars, which is the lowest it's been in
several years, which is offsetting the tariff inflation that has
come with the new tariffs.
Speaker 1 (03:36):
And I think that was planned.
Speaker 3 (03:37):
I think that's what you know, the President wanted to.
Speaker 1 (03:39):
Do on the tariffs. Do you think it's about where
you thought it would be? Higher? Lower?
Speaker 2 (03:42):
I know at the beginning everybody was, you know, emotionally
nervous about it.
Speaker 1 (03:47):
But do you think it landed safely on the runway?
Speaker 3 (03:50):
I think so. I think everybody's kind of used to
what the rhetoric around it, and you know, some of
it's higher, some of it's lower.
Speaker 1 (03:56):
But at the end of the day.
Speaker 3 (03:57):
It's it's if countries play well with US and they
want to move business to the United States, they'll get
better tariff rates, and if they don't, then they're going
to pay higher tariffs.
Speaker 2 (04:07):
As the CEO of Diversified Energy, what's the biggest thoughts, concerns,
challenges for you and your board and your company right now?
Speaker 3 (04:16):
Yeah, I think you know, the overall energy sector in
general is just it can be tough, and commodity prices
are volatile. You have OPEC who's bringing more production back
online now every meeting, and so that's weighing on oil prices.
The problem I have really is is when prices of
(04:36):
oil get this low, they typically within eighteen to twenty
four months have a spike, and so you know, I'm
concerned that with fifty seven dollars oil eighteen months from now,
we could end up with one hundred dollars oil and
that would not be good for the economy. I've always
said sixty to seventy.
Speaker 1 (04:51):
Dollars oil is where we need to be.
Speaker 3 (04:53):
But you know, in general, the tariffs are obviously causing
some inflationary aspects on steel for pie and that kind
of stuff. Some of the outside services but overall, I think,
you know, we've got some good things coming. You know,
the IRA Bill that was so impactful to us in
terms of levying taxes on our methane fees and those
(05:14):
kind of things, that was reversed. The Congress reversed stat
puts a tenure moretorium on it, so we don't.
Speaker 1 (05:20):
Have to worry about that. That's good, That's a great.
Speaker 3 (05:22):
Thing for us. And next up, you know my conversations
with some of the senators and such is permitting reform.
We have a big, big problem in the country. We
need power, and we need grid upgrades, and we need
energy in general. We have no way of building it
and building it quickly. But I'll guarantee you China is
(05:43):
building it and building it quickly.
Speaker 1 (05:45):
And AI and.
Speaker 3 (05:47):
Data centers are extremely important to our country. You do
not want to be you do not want to lose
the AI war with China.
Speaker 2 (05:56):
Well, I had an interesting conversation with somebody that's on
the market and plays the market on a regular basis
and said, if you're looking to invest in AI, don't
invest in the AI companies. Invest in the energy companies
that are going to have to support the grid that
AI needs.
Speaker 1 (06:13):
To operate. So you're looking at power.
Speaker 2 (06:16):
Companies and companies like diversified Energy I would imagine will
be in that arena.
Speaker 1 (06:21):
Do you agree with that? You need to tell the
stock market that.
Speaker 3 (06:24):
I mean, if you look at the technology companies are
trading at a thousand times earnings, I mean, it's ridiculous.
The people that are going to be supplying them the
power or the energy that creates the power, are trading
at three to four multiples. Well, it's unbelievably out of balance. Yeah,
but the reality is we are going to be the
one that supplies them.
Speaker 1 (06:43):
They need natural gas one hundred percent. They've they've looked.
Speaker 3 (06:47):
At wind and solar. Wind and solar doesn't it's intermittent
and it doesn't work. They have to be up and
running ninety nine point five percent of the time or
they lose money. And so natural gas and nuclear are
really they're only two options. So the future is bright
for for natural gas.
Speaker 1 (07:02):
Well, it sounds like that's a stock tip there. I think,
you know, let's get into the energy world.
Speaker 2 (07:07):
If you're going to you know, jump on the AI
train and you're looking for investments, that that is the
juggernaut and the foundation of what AI needs to operate.
Speaker 3 (07:16):
It's it's absolutely the truth. What we really need now
is this permitting reform, which will allow us to build
pipelines h you know, affect the grid and improve it
and get natural gas to the data centers and so
they can you know, generate the power they need to
run those It's been a it's been a mess for decades,
you know, litigation stopping everything you do from the environmentalist groups.
(07:40):
So permitting reform is on the agenda. It has to
take place for us to stay in the game China
if they win the A one of the senators told
me this, he said, look, AI is going to make
nuclear weapons obsolete. I thought that was an eye opening
thing for him to say. Yeah, but you don't want
to lose the AI war.
Speaker 2 (07:59):
Yeah, one hundred percent. Well, I'm glad you stopped by.
It's good to see you. Let's stay in touch and
keep up to up to date on all of this
because it's moving a lightning speed, that lightning speed, and
let's go mountaineers.
Speaker 1 (08:10):
Let's go. Rusty Hudson, Diversified Energy CEO. Thank you, Rusty,
Thank you.
Speaker 3 (08:14):
JT appreciate the time.
Alabama's Morning News.
Speaker 2 (00:01):
I'm JT joining us now Rusty Hudson, who is a
diversified energy a big corporation that obviously is in the
energy world domestically and globally.
Speaker 1 (00:11):
Rusty, welcome in, Thanks for being here, Thanks for having me.
Well with everything.
Speaker 2 (00:14):
Going on, before we jump into what's going on with
the tariffs and the energy world and this recent deal
he cut on minerals with Australia to sidestep China.
Speaker 1 (00:24):
I know you're watching all of this.
Speaker 2 (00:25):
It's indicators for your business and your board that you
get with in your operation every day. I wanted to
get as you are a part of the West Virginia
Mountain near football program booster there as well, but you
live here in Birmingham, which is kind of cool. Your
thoughts on this season. They are really struggling. But I
got to think, I tell Michael, you know he's coaching there,
(00:47):
that look, this is a building year. I mean, how
many players did we get from the portal I mean
it's like a fresh, almost one hundred percent clean slate.
Speaker 3 (00:56):
Oh yeah, well, if you have one hundred and five
players and eighty one more portal players coming in, if
you look at the records of all the teams that
took as many portal players as we have or even
a little less. It's a losing, you know, losing record
on the season. So you know it's Portal is not
the way to build a team. It's a way to
fill up gaps in your team. Right. But look, I'm
(01:17):
on the board chairman of the board of West Virginia University.
We're one hundred percent behind Rich. We know that he'll
get the job done. It's just going to take a
little bit of time. I think this recruiting class is
really really important, both high school and then also the
portal window in January.
Speaker 1 (01:31):
You know, and these guys are all new to each other.
Speaker 2 (01:34):
It takes time for them to gel build chemistry and
develop offense and defensive player leaders on the team and
you know, help the locker room stay focused. And because
everybody's new, it's like, okay, so I think you know,
I hope boosters, fans, ads, everybody up there. I think
they all get that. Don't you get that feeling that
(01:54):
hey they knew everybody knows this year is a building year.
Speaker 3 (01:58):
Oh yeah, I think we uh looks are always impatient. Yeah,
the board has to be patient, and we know we
hire the right coach.
Speaker 1 (02:06):
He's got the right.
Speaker 3 (02:07):
Pieces in place. Not to say he won't make some
changes in the off season to fill gaps and such,
but at the end of the day, we need more
program players, people that you get in the high school
ranks that are there for a while, and you fill
the gaps with some really talented portal players and let's
see what happens next year.
Speaker 2 (02:23):
Well, rich Rod's very fortunate that, in fact, he does
have everybody's supports internally in the board and the boosters
and as far as nil goes, I mean, West Virginia
is right there at the top with everybody.
Speaker 1 (02:37):
As far as the amount of money available, right, yeah.
Speaker 3 (02:39):
We're gonna we're gonna have one hundred percent you know,
the maximum that we can do rev share available for
football and then we'll have n I own money that
will put us in the top tier of the NCAA.
So you have to be able to compete at that point.
Speaker 2 (02:52):
Yeah, good news. I'm looking forward to it. So all right,
let's talk about energy, how everything is. I wanted to
get an update with you what's going on, what's going
on with the tariffs, And we talked before about this
that you know, I had to kind of keep an
eye on it and see what happens here, you know,
with the oil situation and energy in general, natural gas
as well. So what's you look at a thirty thousand
foot view of the picture with the Trump administration, the
(03:13):
global situation. How's your company feeling about things right now?
Speaker 3 (03:17):
Well, I think if you just look at the overall
energy picture for the United States, we're in a pretty
good position. Oil prices are low fifty dollars fifty eight dollars,
fifty seven dollars, which is the lowest it's been in
several years, which is offsetting the tariff inflation that has
come with the new tariffs.
Speaker 1 (03:36):
And I think that was planned.
Speaker 3 (03:37):
I think that's what you know, the President wanted to.
Speaker 1 (03:39):
Do on the tariffs. Do you think it's about where
you thought it would be? Higher? Lower?
Speaker 2 (03:42):
I know at the beginning everybody was, you know, emotionally
nervous about it.
Speaker 1 (03:47):
But do you think it landed safely on the runway?
Speaker 3 (03:50):
I think so. I think everybody's kind of used to
what the rhetoric around it, and you know, some of
it's higher, some of it's lower.
Speaker 1 (03:56):
But at the end of the day.
Speaker 3 (03:57):
It's it's if countries play well with US and they
want to move business to the United States, they'll get
better tariff rates, and if they don't, then they're going
to pay higher tariffs.
Speaker 2 (04:07):
As the CEO of Diversified Energy, what's the biggest thoughts, concerns,
challenges for you and your board and your company right now?
Speaker 3 (04:16):
Yeah, I think you know, the overall energy sector in
general is just it can be tough, and commodity prices
are volatile. You have OPEC who's bringing more production back
online now every meeting, and so that's weighing on oil prices.
The problem I have really is is when prices of
(04:36):
oil get this low, they typically within eighteen to twenty
four months have a spike, and so you know, I'm
concerned that with fifty seven dollars oil eighteen months from now,
we could end up with one hundred dollars oil and
that would not be good for the economy. I've always
said sixty to seventy.
Speaker 1 (04:51):
Dollars oil is where we need to be.
Speaker 3 (04:53):
But you know, in general, the tariffs are obviously causing
some inflationary aspects on steel for pie and that kind
of stuff. Some of the outside services but overall, I think,
you know, we've got some good things coming. You know,
the IRA Bill that was so impactful to us in
terms of levying taxes on our methane fees and those
(05:14):
kind of things, that was reversed. The Congress reversed stat
puts a tenure moretorium on it, so we don't.
Speaker 1 (05:20):
Have to worry about that. That's good, That's a great.
Speaker 3 (05:22):
Thing for us. And next up, you know my conversations
with some of the senators and such is permitting reform.
We have a big, big problem in the country. We
need power, and we need grid upgrades, and we need
energy in general. We have no way of building it
and building it quickly. But I'll guarantee you China is
(05:43):
building it and building it quickly.
Speaker 1 (05:45):
And AI and.
Speaker 3 (05:47):
Data centers are extremely important to our country. You do
not want to be you do not want to lose
the AI war with China.
Speaker 2 (05:56):
Well, I had an interesting conversation with somebody that's on
the market and plays the market on a regular basis
and said, if you're looking to invest in AI, don't
invest in the AI companies. Invest in the energy companies
that are going to have to support the grid that
AI needs.
Speaker 1 (06:13):
To operate. So you're looking at power.
Speaker 2 (06:16):
Companies and companies like diversified Energy I would imagine will
be in that arena.
Speaker 1 (06:21):
Do you agree with that? You need to tell the
stock market that.
Speaker 3 (06:24):
I mean, if you look at the technology companies are
trading at a thousand times earnings, I mean, it's ridiculous.
The people that are going to be supplying them the
power or the energy that creates the power, are trading
at three to four multiples. Well, it's unbelievably out of balance. Yeah,
but the reality is we are going to be the
one that supplies them.
Speaker 1 (06:43):
They need natural gas one hundred percent. They've they've looked.
Speaker 3 (06:47):
At wind and solar. Wind and solar doesn't it's intermittent
and it doesn't work. They have to be up and
running ninety nine point five percent of the time or
they lose money. And so natural gas and nuclear are
really they're only two options. So the future is bright
for for natural gas.
Speaker 1 (07:02):
Well, it sounds like that's a stock tip there. I think,
you know, let's get into the energy world.
Speaker 2 (07:07):
If you're going to you know, jump on the AI
train and you're looking for investments, that that is the
juggernaut and the foundation of what AI needs to operate.
Speaker 3 (07:16):
It's it's absolutely the truth. What we really need now
is this permitting reform, which will allow us to build
pipelines h you know, affect the grid and improve it
and get natural gas to the data centers and so
they can you know, generate the power they need to
run those It's been a it's been a mess for decades,
you know, litigation stopping everything you do from the environmentalist groups.
(07:40):
So permitting reform is on the agenda. It has to
take place for us to stay in the game China
if they win the A one of the senators told
me this, he said, look, AI is going to make
nuclear weapons obsolete. I thought that was an eye opening
thing for him to say. Yeah, but you don't want
to lose the AI war.
Speaker 2 (07:59):
Yeah, one hundred percent. Well, I'm glad you stopped by.
It's good to see you. Let's stay in touch and
keep up to up to date on all of this
because it's moving a lightning speed, that lightning speed, and
let's go mountaineers.
Speaker 1 (08:10):
Let's go. Rusty Hudson, Diversified Energy CEO. Thank you, Rusty,
Thank you.
Speaker 3 (08:14):
JT appreciate the time.
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