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CNX Resources (CNX) Beats on Q4 Earnings, Updates '19 View

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CNX Resources Corporation (CNX - Free Report) delivered adjusted earnings of 67 cents per share in fourth-quarter 2018, beating the Zacks Consensus Estimate of 28 cents by a whopping 139.3%.

Revenues

CNX Resources’ total revenues of $435 million in the fourth quarter were marginally lower than the Zacks Consensus Estimate of $436 million.

The top line was also lower than the year-ago quarterly figure by 8.7%. Despite a significant year-over-year revenue growth owing to natural gas, NGLs and oil, the loss on Commodity Derivative Instruments more than offset the gains, resulting in a year-over-year decline.

Price, Consensus and EPS Surprise

Highlights of the Release

CNX Resources registered a 14.5% year-over-year expansion in gas sales volumes to 136.1 billion cubic feet equivalent (Bcfe) in the quarter under review. The increase was primarily attributable to higher Utica Shale volumes as well as Marcellus Sales Volumes.

The average sales price of $3.09 per thousand cubic feet gas equivalent (Mcfe), when combined with unit cost of $1.00 per Mcfe, resulted in a margin of $2.09 per Mcfe. This reflected an increase from the year-earlier margin of $1.64 per Mcfe, owing to an improvement in average sales price and a decline in total production costs.

During the quarter, the company repurchased shares worth $87.4 million. It repurchased shares worth $381.7 million in 2018.

Financial Update

As of Dec 31, 2018, CNX Resources had cash and cash equivalents of $17.2 million, down substantially from $509.2 million on Dec 31, 2017.

Total long-term debt as of Dec 31, 2018 was $2,391.5 million, higher than $2,207.4 million on Dec 31, 2017.

Cash from operating activities in 2018 was $885.8 million, up 36.5% from $648.7 million in 2017.

Capital expenditure in 2018 was $1.2 billion, higher than the 2017 level of $0.6 billion.

Guidance

CNX Resources expects 2019 capital expenditure in the range of $1,000-$1,080 million. The company expects 2019 production in the range of 495-515 Bcfe, reflecting a 5% increase from the 2018 level.

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

Apache Corporation (APA - Free Report) will report fourth-quarter 2018 results on Feb 27. The Zacks Consensus Estimate for the quarter is pegged at 32 cents per share.

Cheniere Energy, Inc. (LNG - Free Report) will report fourth-quarter 2018 results on Feb 26. The Zacks Consensus Estimate for the quarter to be reported is pegged at 36 cents per share.

Range Resources Corporation (RRC - Free Report) will report fourth-quarter 2018 results on Feb 25. The Zacks Consensus Estimate for the quarter is pegged at 17 cents per share.

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