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CNX Resources (CNX) Posts Narrower-Than-Expected Q3 Loss

Zacks Equity Research

CNX Resources Corporation CNX reported third-quarter 2019 adjusted loss of 6 cents per share, which is narrower than the Zacks Consensus Estimate of a loss of 9 cents.

Revenues

Total revenues of $530 million in the third quarter surpassed the Zacks Consensus Estimate of $339 million by 56.3%. The top line increased 33.5% from year ago quarter.

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

CNX Resources registered a 10.8% year-over-year increase in gas sales volumes to 120.2 billion cubic feet equivalent (Bcfe) in the quarter under review. The upside can be primarily attributed to higher Marcellus shale volumes.

On a consolidated basis, the company reported net income of $144 million compared with $147 million in the third quarter of 2018.

Financial Update

As of Sep 30, 2019, CNX Resources had cash and cash equivalents of $5.5 million, down from $17.2 million on Dec 31, 2018.

Total long-term debt as of Sep 30, 2019 was $2,640.2 million, higher than $2,378.2 million on Dec 31, 2018.

Cash from operating activities in the first nine months of 2019 was $866.1 million, up 25.5% from $690.2 million in the prior-year period.

Capital expenditure during the first nine months of 2019 was $964.5 million, higher than $794.1 million in the prior-year period.

Guidance

CNX Resources revised its 2019 and 2020 capital expenditure guidance. It expects 2019 capital expenditure in the range of $1,200-$1,245 million and the same for 2020 in the band of $570-$650 million.

The company now expects 2019 production in the range of 530-540 Bcfe, up from  previous guidance of 510-530 Bcfe.

CNX Resources now expects 2020 production in the band of 535-565 Bcfe compared with previous guidance of 570-595 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

WPX Energy, Inc WPX is scheduled to report third-quarter 2019 results on Oct 30. The Zacks Consensus Estimate for the quarter is pegged at 11 cents.

TOTAL S.A. TOT is expected to announce third-quarter 2019 results on Oct 30. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at 99 cents.

Murphy Oil Corporation MUR is slated to report third-quarter 2019 results on Oct 31. The Zacks Consensus Estimate for the quarter to be reported is pegged at 22 cents.

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