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CNX Resources (CNX) 2020-End Proved Reserves Up 13% to 9.55 Tcfe
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CNX Resources Corporation (CNX - Free Report) announced that it has increased total proved reserves by 13% year over year to 9.55 trillion cubic feet equivalent (Tcfe). The company added 2,247 billion cubic feet equivalent (Bcfe) of proved reserves through extensions and discoveries, which helped it in replacing more than 440% of 2020 net production of 511 Bcfe. CNX Resources’ proved reserve has a reserve life ratio of 18.69 years, based on 2020 production.
CNX Resources’ strong performance is based on stable production from Marcellus and Utica shale assets. Production from these shales enables the company to meet its production goal. Replenishment of production through the addition of new proved reserves will allow the company to sustain momentum over the long term.
Strong Natural Gas Proved Reserves
Lowering emissions while producing electricity and stringent environmental regulations on controlling emissions are expected to drive demand for natural gas. Natural gas is widely used to produce electricity due to its clean burning nature and in turn benefits the company.
CNX Resources’ 94.6% of the proved reserve is natural gas. Moreover, the company has a very low-cost structure. Drilling and completion costs incurred in 2020 for extensions and discoveries were $480 million. Finding and development cost of the added proved reserves stands at 21 cents per thousand cubic feet (Mcfe), which will give the company a competitive advantage.
Raised Proved Reserves
CNX Resources — through its efficient technology — has been able to explore and expand proved reserves annually for the last five years. At 2016-end, proved reserves of the company were 6.25 Tcfe. At 2020-end, the metric totaled 9.55 Tcfe, reflecting an increase of 52.8% in the last five years.
Over the last five years, it was able to lower average cost per Mcfe to $1.64 at 2020-end from $2.32 at 2016-end.
Zacks Rank
CNX Resources currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Matador Resource Company (MTDR - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) and PDC Energy Inc. , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three to five years) earnings growth of Matador Resource, Pioneer Natural Resources, and PDC Energy is currently projected at 40.8%, 8.6%, and 38.4%, respectively.
The Zacks Consensus Estimate for 2021 earnings of Matador Resource, Pioneer Natural Resources, and PDC Energy has moved up 28.7%, 33.3%, and 26.9%, respectively, in the past 60 days.
Price Performance
CNX Resources’ shares have outperformed the industry in the past 12 months.
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CNX Resources (CNX) 2020-End Proved Reserves Up 13% to 9.55 Tcfe
CNX Resources Corporation (CNX - Free Report) announced that it has increased total proved reserves by 13% year over year to 9.55 trillion cubic feet equivalent (Tcfe). The company added 2,247 billion cubic feet equivalent (Bcfe) of proved reserves through extensions and discoveries, which helped it in replacing more than 440% of 2020 net production of 511 Bcfe. CNX Resources’ proved reserve has a reserve life ratio of 18.69 years, based on 2020 production.
CNX Resources’ strong performance is based on stable production from Marcellus and Utica shale assets. Production from these shales enables the company to meet its production goal. Replenishment of production through the addition of new proved reserves will allow the company to sustain momentum over the long term.
Strong Natural Gas Proved Reserves
Lowering emissions while producing electricity and stringent environmental regulations on controlling emissions are expected to drive demand for natural gas. Natural gas is widely used to produce electricity due to its clean burning nature and in turn benefits the company.
CNX Resources’ 94.6% of the proved reserve is natural gas. Moreover, the company has a very low-cost structure. Drilling and completion costs incurred in 2020 for extensions and discoveries were $480 million. Finding and development cost of the added proved reserves stands at 21 cents per thousand cubic feet (Mcfe), which will give the company a competitive advantage.
Raised Proved Reserves
CNX Resources — through its efficient technology — has been able to explore and expand proved reserves annually for the last five years. At 2016-end, proved reserves of the company were 6.25 Tcfe. At 2020-end, the metric totaled 9.55 Tcfe, reflecting an increase of 52.8% in the last five years.
Over the last five years, it was able to lower average cost per Mcfe to $1.64 at 2020-end from $2.32 at 2016-end.
Zacks Rank
CNX Resources currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Matador Resource Company (MTDR - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) and PDC Energy Inc. , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three to five years) earnings growth of Matador Resource, Pioneer Natural Resources, and PDC Energy is currently projected at 40.8%, 8.6%, and 38.4%, respectively.
The Zacks Consensus Estimate for 2021 earnings of Matador Resource, Pioneer Natural Resources, and PDC Energy has moved up 28.7%, 33.3%, and 26.9%, respectively, in the past 60 days.
Price Performance
CNX Resources’ shares have outperformed the industry in the past 12 months.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.9% per year.
These 7 were selected because of their superior potential for immediate breakout.
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