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CNX Resources (CNX) Q2 Earnings and Revenues Lag Estimates

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CNX Resources Corporation (CNX - Free Report) reported second-quarter 2022 adjusted earnings of 61 cents per share, which missed the Zacks Consensus Estimate of 79 cents by 22.8%.

Revenues

Total second-quarter revenues of $473 million missed the Zacks Consensus Estimate of $542 million by 12.7%. Total revenues in the reported quarter improved 31.8% year over year from the prior-quarter level of $359 million.

 

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

The average selling price for the quarter was $3.32 per thousand cubic feet equivalent (Mcfe), up 27.7% from the year-ago figure of $2.6. For the reported quarter, total production costs were $1.58 per Mcfe, down 1.3% from the year-ago figure due to proper cost-management measures implemented by the company.

Total first-quarter production volumes were 142.3 billion cubic feet equivalent, up 3.2% year over year. Interest expenses for the reported quarter were $31 million, down 20.5% from the year-ago period.

CNX Resources repurchased 3.2 million shares during the quarter. Due to the systematic buyback of shares, CNX Resources has repurchased nearly 16% of its outstanding shares in the last seven quarters.

Financial Update

As of Jun 30, 2022, CNX Resources had cash and cash equivalents of $0.3 million, down from $3.6 million on Dec 31, 2021.

Long-term debt as of Jun 30, 2022 was $1,907.1 million, lower than $2,214.1 million as of Dec 31, 2021. Since third-quarter 2020, CNX has lowered debts worth $315 million, strengthening the balance sheet.

Second-quarter 2022 cash from operating activities was $191.9 million, up 19.7% from $239.3 million in the year-ago period. Free cash flow for the reported quarter was $62 million. CNX has generated $1.2 billion in free cash flow since the beginning of the seven-year growth plan.

Second-quarter capital expenditure was $137 million, higher than $129 million invested in the year-ago period.

Guidance

CNX Resources raised its 2022 capital expenditure view to the range of  $550-$590 million from $470-$500 million. CNX Resources continues to expect 2022 production in the band of 575-605 billion cubic feet equivalent.

CNX Resources reiterated its 2022 free cash flow generation guidance of $700 million.

Zacks Rank

CNX Resources currently has a Zacks Rank #2 (Buy). 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 2022 results on Aug 1. The Zacks Consensus Estimate for earnings for the quarter is pegged at $2.38 per share.

Devon Energy reported an average positive surprise of 13.4% in the last four reported quarters. The Zacks Consensus Estimate for DVN’s 2022 earnings per share indicates year-over-year growth of 154.9%.

Cheniere Energy, Inc. (LNG - Free Report) is scheduled to report second-quarter 2022 results on Aug 4. The Zacks Consensus Estimate for earnings for the quarter is pegged at $2.77 per share.

Cheniere Energy’s long-term (three to five years) earnings growth is projected at 55.4%. The Zacks Consensus Estimate for LNG’s 2022 earnings per share indicates year-over-year growth of 274.5%.

Occidental Petroleum Corporation (OXY - Free Report) is scheduled to report second-quarter 2022 results on Aug 2. The Zacks Consensus Estimate for earnings for the quarter is pegged at $2.93 per share.

Occidental’s long-term earnings growth is projected at 12.4%. The Zacks Consensus Estimate for OXY’s 2022 earnings per share indicates year-over-year growth of 309.4%.
 

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