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CONSOL Coal (CCR) Tops Q4 Earnings Estimates, Revenues Lag

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CONSOL Coal Resources LP’s fourth-quarter 2017 adjusted earnings per unit of 48 cents beat the Zacks Consensus Estimate of 45 cents by 6.7%. The bottom line also improved 17.1% year over year.

Revenues

CONSOL Coal Resources’ total revenues of $78.8 million lagged the Zacks Consensus Estimate of $80 million by 1.5%.

CONSOL Coal Resources LP Price, Consensus and EPS Surprise
 

Operational Highlights

In the quarter, the partnership was able to secure a multiyear coal export contract, which is slated to start from second-quarter 2018. About 50% of the export volumes are already priced and the remaining  is contracted and collared.

Average revenues per ton sold in the quarter was $46.36, up 2.9% from the year-ago figure of $45.05. The year-over-year improvement was due to higher average revenue per ton on export shipments and higher netback prices on certain contracts compared to the year-ago period.

Average cost of coal sales per ton in the reported quarter was $27.30, 3.2% lower than the year-ago figure of $28.20.

Total cost of coal sold was $52.1 million, declining 1.37% from $60.4 million the year-ago quarter.

Average cash margin per ton sold improved 13.1% from the year-ago quarter due to higher average revenues and lower average cost per ton of coal sold.

Interest expenses were $2.05 million, 15.8% lower than $2.44 million in the year-ago quarter.

 

Financial Update

As of Dec 31, 2017, CONSOL Coal Resources had cash of $1.5 million, considerably down from $9.8 million as of Dec 31, 2016.

Total long-term debt as of Dec 31, 2017 was $196.7 million, lower than $198 million as of Dec 31, 2016.

Cash from operating activities for the fourth quarter was $11.9 million, down 54% from $25.8 million in the year-ago quarter.

Capital expenditure in the quarter was $7.3 million, higher than the year-ago level of $3.1 million.

Guidance

CONSOL Coal Resources expects coal sales for 2018 to be in the range of 6.55-6.80 million tons, higher than 6.50 million tons achieved in 2017.

Adjusted EBITDA is expected to be in the range of $90-$110 million. Capital expenditures are expected to be within $31-$36 million.

Another Coal Releases

CONSOL Energy Inc. (CEIX - Free Report) reported earnings of $1.06 per share in fourth-quarter 2017, beating the Zacks Consensus Estimate of 63 cents by 68.3%.

Upcoming Peer Releases

Cloud Peak Energy Inc. is expected to report fourth-quarter 2017 results on Feb 15. The Zacks Consensus Estimate is pegged at breakeven or 0.00.

Arch Coal Inc. (ARCH - Free Report) is expected to report fourth-quarter 2017 results on Feb 13. The Zacks Consensus Estimate is pegged at $2.32.

Zacks Rank

CONSOL Coal Resources 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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