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CNX Resources (CNX) Q3 Earnings Beat Estimates, View Up

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CNX Resources Corporation (CNX - Free Report) reported third-quarter 2020 adjusted earnings of 4 cents per share, which surpassed the Zacks Consensus Estimate of 2 cents by a whopping 100%. Earnings also increased 166.7% from the year-ago figure.

On a GAAP basis, loss for the reported quarter was $1.03 per share versus loss of 78 cents in the year-ago period.

Revenues

Total second-quarter revenues of $66.1 million missed the Zacks Consensus Estimate of $282 million by 76.6%. The top line also decreased 87.53% 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

Average selling price for the quarter was $2.36 per thousand cubic feet equivalent (Mcfe), down 5.9% from the year-ago figure of $2.51. For the reported quarter, total production costs were down 0.6% year over year to $1.71 per Mcfe due to proper cost-management measures implemented by the company.

Total third-quarter production volumes were 115.7 billion cubic feet equivalent, down 9.8% year over year. Interest expenses for the reported quarter were $37.9 million, down 1.3% from the year-ago period.

Financial Update

As of Sep 30, 2020, CNX Resources had cash and cash equivalents of $150.1 million, up from $16.3 million on Dec 31, 2019.

Total long-term debt as of Sep 30, 2020 was $2,577.9 million, lower than $2,754.4 million on Dec 31, 2019. During the first nine months of 2020, the company paid off all $895-million senior notes due in 2022.
    
Third-quarter 2020 cash from operating activities was $223.1 million, down 26.9% from $305.4 million in the year-ago period. Free cash flow for the reported quarter was $121 million.

Third-quarter capital expenditure was $108 million, lower than $336 million invested in the year-ago period.

Guidance

CNX Resources increased its 2020 capital expenditure guidance to the range of $495-$515 million from $470-$550 million expected earlier. CNX Resources also hiked 2020 production expectation to the band of 500-510 billions of cubic feet equivalent (Bcfe) from the prior view of 490-530 Bcfe.

The company reiterated 2021 production expectation of 550 Bcfe and capital expenditure at $440 million.

It expects to generate $3.4 billion in free cash flow during the 2020-2026 period through proper execution of long-term plans.

Through proper management of expenses, the company aims to lower fully burdened cash costs by 23% over the 2020-2026 time period, which will boost operating margins.

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

WPX Energy is scheduled to report third-quarter 2020 results on Nov 2. The Zacks Consensus Estimate for earnings for the quarter is pegged at 6 cents per share.

Murphy Oil Corporation (MUR - Free Report) is scheduled to announce third-quarter 2020 results on Nov 5. The Zacks Consensus Estimate for the bottom line for the quarter to be reported is pegged at a loss of 19 cents per share.

Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report third-quarter 2020 results on Nov 9. The Zacks Consensus Estimate for the bottom line for the quarter is pegged at a loss of 70 cents per share.

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