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CNX Resources (CNX) Q2 Earnings & Revenues Miss Estimates

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CNX Resources Corporation (CNX - Free Report) reported second-quarter 2021 adjusted earnings of 18 cents per share, which lagged the Zacks Consensus Estimate of 25 cents by 28%.

Revenues

Second-quarter revenues were $359 million, which lagged the Zacks Consensus Estimate of $390 million by 7.9%. Nonetheless, the top line increased 140.9% from the year-ago quarter.

Highlights of the Release

Average selling price for the quarter was $2.60 per thousand cubic feet equivalent (Mcfe), up 3.2% from the year-ago figure of $2.52. For the reported quarter, total production costs were down 1.8% year over year to $1.60 per Mcfe due to proper cost-management measures implemented by the company. Its efficient management of expenses continues to reduce outflow and boost margins.

Total second-quarter production volumes were 137.9 billion cubic feet equivalent, up 20.4% year over year. Interest expenses for the reported quarter were $39.46 million, down 14.5% from the year-ago period.

During the quarter, CNX Resources repurchased shares worth $23 million. The remaining amount available under the existing stock repurchase program is $215 million and is not subject to an expiration date.

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

Financial Update

As of Jun 30, 2021, CNX Resources had cash and cash equivalents of $39.4 million, up from $15.6 million on Dec 31, 2020.

Total long-term debt as of Jun 30, 2021 was $2,265.9 million, lower than $2,401.4 million on Dec 31, 2020.

Second-quarter 2021 cash from operating activities was $239.2 million, up 66.3% from $143.8 million in the year-ago period. Free cash flow for the year was $117 million.

Capital expenditure for second-quarter 2021 was $129 million.

Guidance

CNX Resources reiterated capital expenditure view for 2021 in the range of $430-$470 million. The company still expects 2021 production volumes in the range of 540-570 billions of cubic feet equivalent. Nearly 94% expected gas production for 2021 is hedged by the company.

CNX Resources raised free cash flow expectation for 2021 to $475 million from $450 million projected earlier.

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 announce second-quarter 2021 results on Aug 3. The Zacks Consensus Estimate for the bottom line for the quarter to be reported is pegged at 53 cents per share.

ConocoPhillips (COP - Free Report) is scheduled to report second-quarter 2021 results on Aug 3. The Zacks Consensus Estimate for the bottom line for the quarter to be reported is pegged at $1.15 per share.

Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report second-quarter 2021 results on Aug 3. The Zacks Consensus Estimate for the quarter is pegged at break-even earnings per share.