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Thermal coal producer CNX Coal Resources LP’s (CNXC - Free Report) second-quarter 2016 adjusted earnings of 11 cents per unit (net income of $2.6 million) missed the Zacks Consensus Estimate of 19 cents by 42.1%.
Revenues
CNX Coal’s total revenue plunged 16.6% year over year to $53.8 million and also lagged the Zacks Consensus Estimate of $55 million by 2.2%.
The year-over-year decline in the top line was primarily due to the depressed commodity price environment and lower realized prices of coal sold from the year-ago quarter.
Quarterly sales volume was 1.2 million tons, up 9.1% year-over-year, as weakness in domestic shipments was offset by higher export sales. During the quarter, CNX Coal exported nearly 0.4 million tons of coal, compared to the year-ago tally of 0.2 million tons.
Average cost of coal sales per ton in the reported quarter was $34.46, down from the year-ago figure of $44.15.The improvement was driven by better productivity and reduced staffing levels.
Average realized price per ton of coal in the reported quarter was $40.61, down 28.8% year over year, which ate away the improvement in unit costs of coal sold.
The partnership’s adjusted earnings before interest, tax, depreciation & amortization (EBITDA) in the quarter were $13.3 million.
Total costs and expenses were $51.2 million, down 6.1% from $54.5 million a year ago primarily due to lower operating and other costs.
Financial Update
As of Jun 30, 2016, CNX Coal had cash of $9.0 million, up from $6.5 million as of Dec 31, 2015.
Total long-term debts as of Jun 30, 2016 were $194.5 million, higher than $181 million as of Dec 31, 2015.
Cash from operating activities for the second quarter was $16.6 million, compared with $13.5 million in the year-ago quarter.
Capital expenditure in the reported quarter was $2.6 million, lower than the year-ago level of $7.1 million.
Cash Distribution Update
CNX Coal announced second-quarter 2016 cash distribution of 51.25 cents per limited partner unit. The amount will be paid on Aug 15, 2016 to unitholders of record as of Aug 8.
Guidance
CNX Coal has reaffirmed its guidance for 2016. Coal sales are estimated to be 4.5–5.1 million tons. While adjusted EBITDA is expected to be $59–$69 million, maintenance capital expenditure is projected in the range of $18–$20 million.
Upcoming Peer Releases
SunCoke Energy Inc. (SXC - Free Report) is scheduled to release second-quarter results on Jul 28. The Zacks Consensus Estimate stands at a loss of a penny.
Cloud Peak Energy Inc. is scheduled to release second-quarter results on Jul 28. The Zacks Consensus Estimate stands at a loss of 34 cents.
Westmoreland Coal Co. is scheduled to release second-quarter results on Aug 2. The Zacks Consensus Estimate stands at a loss of 41 cents.
Zacks Rank
CNX Coal Resources currently has a Zacks Rank #4 (Sell).
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CNX Coal (CNXC) Lags Q2 Earnings & Revenues, Keeps View
Thermal coal producer CNX Coal Resources LP’s (CNXC - Free Report) second-quarter 2016 adjusted earnings of 11 cents per unit (net income of $2.6 million) missed the Zacks Consensus Estimate of 19 cents by 42.1%.
Revenues
CNX Coal’s total revenue plunged 16.6% year over year to $53.8 million and also lagged the Zacks Consensus Estimate of $55 million by 2.2%.
The year-over-year decline in the top line was primarily due to the depressed commodity price environment and lower realized prices of coal sold from the year-ago quarter.
Quarterly sales volume was 1.2 million tons, up 9.1% year-over-year, as weakness in domestic shipments was offset by higher export sales. During the quarter, CNX Coal exported nearly 0.4 million tons of coal, compared to the year-ago tally of 0.2 million tons.
CNX COAL RESRCS Price, Consensus and EPS Surprise
CNX COAL RESRCS Price, Consensus and EPS Surprise | CNX COAL RESRCS Quote
Operational Highlights
Average cost of coal sales per ton in the reported quarter was $34.46, down from the year-ago figure of $44.15.The improvement was driven by better productivity and reduced staffing levels.
Average realized price per ton of coal in the reported quarter was $40.61, down 28.8% year over year, which ate away the improvement in unit costs of coal sold.
The partnership’s adjusted earnings before interest, tax, depreciation & amortization (EBITDA) in the quarter were $13.3 million.
Total costs and expenses were $51.2 million, down 6.1% from $54.5 million a year ago primarily due to lower operating and other costs.
Financial Update
As of Jun 30, 2016, CNX Coal had cash of $9.0 million, up from $6.5 million as of Dec 31, 2015.
Total long-term debts as of Jun 30, 2016 were $194.5 million, higher than $181 million as of Dec 31, 2015.
Cash from operating activities for the second quarter was $16.6 million, compared with $13.5 million in the year-ago quarter.
Capital expenditure in the reported quarter was $2.6 million, lower than the year-ago level of $7.1 million.
Cash Distribution Update
CNX Coal announced second-quarter 2016 cash distribution of 51.25 cents per limited partner unit. The amount will be paid on Aug 15, 2016 to unitholders of record as of Aug 8.
Guidance
CNX Coal has reaffirmed its guidance for 2016. Coal sales are estimated to be 4.5–5.1 million tons. While adjusted EBITDA is expected to be $59–$69 million, maintenance capital expenditure is projected in the range of $18–$20 million.
Upcoming Peer Releases
SunCoke Energy Inc. (SXC - Free Report) is scheduled to release second-quarter results on Jul 28. The Zacks Consensus Estimate stands at a loss of a penny.
Cloud Peak Energy Inc. is scheduled to release second-quarter results on Jul 28. The Zacks Consensus Estimate stands at a loss of 34 cents.
Westmoreland Coal Co. is scheduled to release second-quarter results on Aug 2. The Zacks Consensus Estimate stands at a loss of 41 cents.
Zacks Rank
CNX Coal Resources currently has a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>