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CNX Resources Corporation (CNX - Free Report) reported adjusted earnings of 98 cents per share in fourth-quarter 2017. The Zacks Consensus Estimate was of a loss of 6 cents.
Revenues
CNX Resources ' total revenues of $476.9 million in the fourth quarter surpassed the Zacks Consensus Estimate of $343 million by 39%.
Total revenues were higher than the year-ago quarter by more than $400 million. The significant year-over-year growth was due to higher contribution from Natural Gas, NGL and oil sales and gain on Commodity Derivative Instruments.
Operational Highlights
CNX Resources registered a 17% year-over-year increase in gas sales volumes to 118.9 billion cubic feet equivalent (Bcfe) in the fourth quarter. The improvement was primarily due to higher Marcellus Shale and Utica Shale volumes.
The average sales price of $2.80 per thousand cubic feet gas equivalent (Mcfe), when combined with unit cost of $2.17 per Mcfe, resulted in a margin of 63 cents per Mcfe. This indicated a 26% year-over-year increase in the E&P margin of 50 cents per Mcfe.
During the quarter, CNX Resources added NYMEX natural gas hedges of 42.3 Bcf, 20.6 Bcf, 32.3 Bcf, 48.9 Bcf, and 135.2 Bcf for 2018, 2019, 2020, 2021, and 2022, respectively.
The company separated from its coal counterpart on Nov 28, 2017 and continued with share repurchases. Since then it repurchased shares worth $103 million.
As of Dec 31, 2017, CNX Resources had $1,770.0 million in total liquidity comprising $509 million in cash and $1,261 million available to be borrowed under its $1.5 billion bank facility.
Guidance
CNX Resources reiterated its 2018 capital expenditure forecast of $790-$880 million. Budget for 2018 includes $515-$580 million of drilling and completion capital and approximately $275-$300 million of capital associated with land, midstream and water infrastructure.
CNX Resources plans to produce 520-550 Bcfe in 2018, reflecting nearly 31% increase based on the midpoint of the guidance compared with 2017 volumes of 407 Bcfe.
Pioneer Natural Resources Company (PXD - Free Report) is expected to release fourth-quarter 2017 earnings on Feb 6. The Zacks Consensus Estimate for the quarter is pegged at 78 cents. The company delivered an average positive surprise of 67.62% in the last four quarters.
Newfield Exploration Company is expected to release fourth-quarter 2017 earnings on Feb 20. The Zacks Consensus Estimate for the quarter is pegged at 63 cents. The company pulled off an average positive surprise of 18.57% in the last four quarters.
EOG Resources, Inc. (EOG - Free Report) is expected to release fourth-quarter 2017 earnings on Feb 27. The Zacks Consensus Estimate for the quarter is pegged at 53 cents. The company delivered an average positive surprise of 40.94% in the last four quarters.
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CNX Resources (CNX) Beats Q4 Earnings, Maintains 2018 View
CNX Resources Corporation (CNX - Free Report) reported adjusted earnings of 98 cents per share in fourth-quarter 2017. The Zacks Consensus Estimate was of a loss of 6 cents.
Revenues
CNX Resources ' total revenues of $476.9 million in the fourth quarter surpassed the Zacks Consensus Estimate of $343 million by 39%.
Total revenues were higher than the year-ago quarter by more than $400 million. The significant year-over-year growth was due to higher contribution from Natural Gas, NGL and oil sales and gain on Commodity Derivative Instruments.
Operational Highlights
CNX Resources registered a 17% year-over-year increase in gas sales volumes to 118.9 billion cubic feet equivalent (Bcfe) in the fourth quarter. The improvement was primarily due to higher Marcellus Shale and Utica Shale volumes.
The average sales price of $2.80 per thousand cubic feet gas equivalent (Mcfe), when combined with unit cost of $2.17 per Mcfe, resulted in a margin of 63 cents per Mcfe. This indicated a 26% year-over-year increase in the E&P margin of 50 cents per Mcfe.
During the quarter, CNX Resources added NYMEX natural gas hedges of 42.3 Bcf, 20.6 Bcf, 32.3 Bcf, 48.9 Bcf, and 135.2 Bcf for 2018, 2019, 2020, 2021, and 2022, respectively.
CNX Resources Corporation. Price
CNX Resources Corporation. Price | CNX Resources Corporation. Quote
Financial Update
The company separated from its coal counterpart on Nov 28, 2017 and continued with share repurchases. Since then it repurchased shares worth $103 million.
As of Dec 31, 2017, CNX Resources had $1,770.0 million in total liquidity comprising $509 million in cash and $1,261 million available to be borrowed under its $1.5 billion bank facility.
Guidance
CNX Resources reiterated its 2018 capital expenditure forecast of $790-$880 million. Budget for 2018 includes $515-$580 million of drilling and completion capital and approximately $275-$300 million of capital associated with land, midstream and water infrastructure.
CNX Resources plans to produce 520-550 Bcfe in 2018, reflecting nearly 31% increase based on the midpoint of the guidance compared with 2017 volumes of 407 Bcfe.
Zacks Rank
CNX Resources has a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Pioneer Natural Resources Company (PXD - Free Report) is expected to release fourth-quarter 2017 earnings on Feb 6. The Zacks Consensus Estimate for the quarter is pegged at 78 cents. The company delivered an average positive surprise of 67.62% in the last four quarters.
Newfield Exploration Company is expected to release fourth-quarter 2017 earnings on Feb 20. The Zacks Consensus Estimate for the quarter is pegged at 63 cents. The company pulled off an average positive surprise of 18.57% in the last four quarters.
EOG Resources, Inc. (EOG - Free Report) is expected to release fourth-quarter 2017 earnings on Feb 27. The Zacks Consensus Estimate for the quarter is pegged at 53 cents. The company delivered an average positive surprise of 40.94% in the last four quarters.
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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