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CNX Resources (CNX) Q3 Revenues Beat, Earnings Miss

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CNX Resources Corporation CNX delivered adjusted earnings of 17 cents per share in third-quarter 2018, missing the Zacks Consensus Estimate of 19 cents by 10.5%. However, the bottom line was up 94.4% year over year.

Revenues

CNX Resources’ total revenues of $397.1 million in the third quarter surpassed the Zacks Consensus Estimate of $382 million by 4%.

Moreover, the top line was higher than the year-ago quarterly figure by 38.3%. This significant year-over-year growth was owing to higher contribution from Natural Gas, primarily driven by a considerable increase in Utica Shale volumes and Marcellus Sales Volumes.

CNX Resources Corporation. Price, Consensus and EPS Surprise

Highlights of the Release

CNX Resources registered a 17.8% year-over-year expansion in gas sales volumes to 119 billion cubic feet equivalent (Bcfe) in the quarter under review. The surge was primarily attributable to higher Utica Shale volumes as well as Marcellus Sales Volumes.

The average sales price of $2.92 per thousand cubic feet gas equivalent (Mcfe) when combined with unit cost of $1.97 per Mcfe, led in a margin of 95 cents per Mcfe. This in turn, marked an increase from the year-earlier quarter owing to improvement in average sales price and a decline in total production costs.

In the reported quarter, the company bought back 8.3 million shares.

Financial Update

As of Sep 30, 2018, CNX Resources had cash and cash equivalents of $42.7 million, down substantially from $509.2 million as of Dec 31, 2017.

Total long-term debt as of Sep 30, 2018 was $2,199.6 million, lower than $2,207.4 million as of Dec 31, 2017.

Cash from operating activities for the third quarter was $239.3 million, up 31.9% from $181.4 million in the year-ago quarter.

Capital expenditure in the quarter under discussion was $297.5 million, higher than the prior-year level of $149.5 million.

Guidance

CNX Resources reaffirms its 2018 capital expenditure projection of $900-$950 million. However, the company narrows the production outlook to 497.5-507.5 Bcfe from the previous guidance of 490-515 Bcfe.

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

Bonanza Creek Energy, Inc. will report third-quarter 2018 results on Nov 8. The Zacks Consensus Estimate for the quarter is pegged at $1.24 per share.

Murphy Oil Corporation MUR will report third-quarter 2018 results on Nov 7. The Zacks Consensus Estimate for the quarter is pegged at 36 cents per share.

Parsley Energy, Inc. PE will report third-quarter 2018 results on Nov 1. The Zacks Consensus Estimate for the quarter is pegged at 45 cents per share.

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