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CNX Resources (CNX) Q2 Earnings and Revenues Beat Estimates

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CNX Resources Corporation (CNX - Free Report) delivered adjusted earnings of 42 cents per share in second-quarter 2018, substantially beating the Zacks Consensus Estimate of 12 cents by 250%. Also, the bottom line skyrocketed 147.1% year over year.

Revenues

CNX Resources’ total revenues of $402.1 million in the second quarter surpassed the Zacks Consensus Estimate of $383 million by 5%.

The top line was higher than the year-ago quarterly figure by 8.4%. This significant year-over-year growth was owing to higher contribution from Natural Gas, driven primarily by a considerable increase in Utica Shale volumes.

Highlights of the Release

CNX Resources registered a 33% year-over-year expansion in gas sales volumes to 122.6 billion cubic feet equivalent (Bcfe) in the quarter under review. The surge was primarily attributable to higher Utica Shale volumes.

The average sales price of $2.87 per thousand cubic feet gas equivalent (Mcfe), when combined with unit cost of $2 per Mcfe, resulted in a margin of 87 cents per Mcfe. This marked an increase from the year-earlier quarter due to improvement in average sales price and decline in total production costs.

In the reported quarter, the company bought back 5.3 million shares.

CNX Resources Corporation. Price, Consensus and EPS Surprise

CNX Resources Corporation. Price, Consensus and EPS Surprise | CNX Resources Corporation. Quote

Financial Update

As of Jun 30, 2018, CNX Resources had cash and cash equivalents of $54.9 million, hugely down from $509.2 million as of Dec 31, 2017.

Total long-term debt as of Jun 30, 2018 was $2,347.6 million, higher than $2,207.4 million as of Dec 31, 2017.

Cash from operating activities for the second quarter was $191.6 million, up 116.1% from $88.7 million in the year-ago quarter.

Capital expenditure in the quarter under discussion was $264 million, higher than the prior-year level of $146 million.

Guidance

CNX Resources raised its 2018 capital expenditure forecast to $900-$950 million from the earlier projection of $790-$915 million. Also, the company reaffirms its production outlook of 490-515 Bcfe.

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

Penn Virginia Corporation (PVAC - Free Report) will report second-quarter 2018 results on Aug 7. The Zacks Consensus Estimate for the quarter is pegged at $2.33 per share.

Cheniere Energy, Inc. (LNG - Free Report) will report second-quarter 2018 results on Aug 9. The Zacks Consensus Estimate for the quarter is pegged at 34 cents per share.

Denbury Resources Inc. (DNR - Free Report) will report second-quarter 2018 results on Aug 7. The Zacks Consensus Estimate for the quarter is pegged at 9 cents per share.

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