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CNX Coal Resources (CNXC) Misses on Q2 Earnings, Revenues Top

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CNX Coal Resources LP’s (CNXC - Free Report) second-quarter 2017 adjusted earnings of 40 cents per unit missed the Zacks Consensus Estimate of 51 cents by 21.57%. However, the quarter’s earnings were up 263.6% year over year.

Revenues

CNX Coal’s total revenue surged 22.7% year over year to $82.5million from the year-ago figure of around $67.2 million. Reported revenues also topped the Zacks Consensus Estimate of $80 million by 3.1%.

Operational Highlights

Average cost of coal sales per ton in the reported quarter was $34.79, 1% higher than the year-ago figure of $34.46. The increase was due to a higher average realized price.

Average realized price improved by 10% compared with the year-ago period, owing to significant rise in pricing on export shipments.

Average Revenue per ton in the quarter also was $44.75, up 10.2% higherthan the year-ago figure of $40.61.

Average cash margin per ton soldimproved by 23.9% compared with the year-ago quarter due to a higher average realized price.

The partnership’s adjusted earnings before interest, tax, depreciation & amortization (EBITDA) in the quarter were $25 million, up almost 49.5% from $16.7 million in the prior-year quarter.

Total costs were $71 million, 12.2% higher than $63.3 million a year ago.

Financial Update

As of Jun 30, 2017, CNX Coal had cash of $6.6 million, down from $9.8 million as of Dec 31, 2016.

Total long-term debt as of Jun 30, 2017 was $187.4 million, lower than $198 million as of Dec 31, 2016.

Cash from operating activities for the second quarter was $23.1 million, up 8.3% from $21.3 million in the year-ago quarter.

Capital expenditure (actual cash maintenance) in the reported quarter was $3.4 million, higher than the year-ago level of $3.3 million.

Cash Distribution Update

CNX Coal announced second-quarter 2017 cash distribution of 51.25 cents per limited partner unit. The distribution to all unit holders of the Partnership will be made on Aug 15, 2017 to such holders of record at the close of business on Aug 7.

Guidance

CNX Coal maintained guidance for 2017. Coal sales are estimated to be in the range of 6.4–6.9 million tons. Adjusted EBITDA is expected to be $95–$115 million. Maintenance capital expenditure is projected in the range of $30–$34 million.

CNX Coal Resources LP Price, Consensus and EPS Surprise

 

Peer Release

SunCoke Energy (SXC - Free Report) reported a loss of 7 cents per share in second-quarter 2017, narrower than the Zacks Consensus Estimate of a loss of 14 cents.

Upcoming Peer Releases

Natural Resource Partners LP (NRP - Free Report) is expected to report second-quarter 2017 results on Aug 8. The Zacks Consensus Estimate is pegged at $1.38.

Peabody Energy Corporation (BTU - Free Report) is expected to report second-quarter 2017 results on Aug 2. The Zacks Consensus Estimate is pegged at 93 cents.

Zacks Rank

CNX Coal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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