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CNX Resources (CNX) to Report Q3 Earnings: What's in Store?

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CNX Resources Corporation (CNX - Free Report) is scheduled to release third-quarter 2020 earnings on Oct 29, before the market opens.  This exploration and production company delivered an earnings surprise of 333.33% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

The merger of CNX Resources and CNX Midstream Partners along with a well-hedged portfolio is likely to have aided the company's earnings in the to-be-reported quarter. The acquisition of CNX Midstream Partners is expected to have lowered production costs of the company by 40 cents per thousancd cubic feet (Mcfe), thereby boosting results. Also, CNX Resources has been taking initiatives like refinancing debt at lower rates to trim its interest costs.

While decline in oil and gas prices as well as subdued demand amid the pandemic situation is likely to have impacted the company’s operations in the third quarter, its production optimization, strong hedging strategy and efficient cost management might have marginally offset the same.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter total gas sales volume is pegged at 282.18 million cubic feet equivalent, indicating a decline of 46.76% from the prior-year quarter’s reported number. The Zacks Consensus Estimate for September-quarter earnings per share stands at one cent, suggesting a 116.67% rise from the year-ago period's reported figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for CNX Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

CNX Resources Corporation. Price and EPS Surprise

CNX Resources Corporation. Price and EPS Surprise

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

Earnings ESP: CNX Resources has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CNX Resources carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to beat on earnings in the to-be-reported quarter.

Southwestern Energy Company (SWN - Free Report) is slated to release third-quarter results on Oct 29. It has an Earnings ESP of +18.13% and a Zacks Rank of 3 at present.

Earthstone Energy, Inc. (ESTE - Free Report) is slated to release third-quarter results on Nov 4. It has an Earnings ESP of +12.50% and a Zacks Rank #2, currently.

Cheniere Energy, Inc. (LNG - Free Report) is slated to release third-quarter results on Nov 6. It has an Earnings ESP of +31.36% and is Zacks #3 Ranked, presently.

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