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CNX Resources (CNX) Q2 Earnings Beat Estimates, Sales Miss

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CNX Resources Corporation (CNX - Free Report) reported second-quarter 2020 adjusted earnings of 13 cents per share, which surpassed the Zacks Consensus Estimate of 3 cents by a whopping 333.3%. Earnings also increased 116.7% from the year-ago figure of 6 cents per share.

On a GAAP basis, loss for the reported quarter was 78 cents per share versus earnings of 84 cents in the year-ago period. The second-quarter 2020 results included unrealized loss on commodity derivative instruments of $206 million.

Revenues

Total second-quarter revenues of $148.4 million missed the Zacks Consensus Estimate of $329 million by 54.9%. The top line also decreased 75.4% from the year-ago quarter.

CNX Resources Corporation. Price, Consensus and EPS Surprise

CNX Resources Corporation. Price, Consensus and EPS Surprise

CNX Resources Corporation. price-consensus-eps-surprise-chart | CNX Resources Corporation. Quote

Highlights of the Release

During the quarter, CNX Resources used up to two horizontal rigs and drilled eight wells. In the quarter, the company turned in line 11 wells.

Average selling price - E&P during the quarter was $2.52 per thousand cubic feet equivalent (Mcfe), down 4.2% from the year-ago figure of $2.63. For the reported quarter, total production costs were down 7.2% year over year to $1.92 per Mcfe due to proper cost-management measures implemented by the company.

Total second-quarter production volumes were 114.5 billion cubic feet equivalent, down 14.9% year over year. During the quarter, volumes decreased due to the temporary shut-in of a portion of CNX's liquids-rich Shirley-Pennsboro production in May and June 2020, in response to low NGL prices.

Interest expenses for the reported quarter were $46.3 million, up 15.4% from the year-ago period.

Financial Update

As of Jun 30, 2020, CNX Resources had cash and cash equivalents of $19.6 million, up from $16.3 million on Dec 31, 2019.

Total long-term debt as of Jun 30, 2020 was $2,540.8 million, lower than $2,754.4 million on Dec 31, 2019.
    
Second-quarter 2020 cash from operating activities was $143.8 million, down 42.9% from $252 million in the year-ago quarter. Free cash flow for the reported quarter was $21 million.

Second-quarter capital expenditure was $134.8 million, lower than $329.2 million invested in the year-ago period.

Guidance

CNX Resources reaffirmed its 2020 capital expenditure guidance in the range of $470-$550 million. CNX Resources also reiterated 2020 production expectation in the band of 490-530 billions of cubic feet equivalent (Bcfe).

The company expects 2021 production to be 550 Bcfe and capital expenditure to be $440 million.

Zacks Rank

CNX Resources currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Devon Energy Corporation (DVN - Free Report) is scheduled to report second-quarter 2020 results on Aug 4. The Zacks Consensus Estimate for the bottom line for the quarter is pegged at a loss of 25 cents per share.

Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report second-quarter 2020 results on Aug 10. The Zacks Consensus Estimate for the bottom line for the quarter is pegged at a loss of $1.67 per share.

Murphy Oil Corporation (MUR - Free Report) is scheduled to announce second-quarter 2020 results on Aug 6. The Zacks Consensus Estimate for the bottom line for the quarter to be reported is pegged at a loss of $1.03 per share.

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