CNX Resources (CNX) Q2 Earnings Beat, Revenues Lag Estimates
CNX Resources Corporation CNX reported second-quarter 2023 operating earnings of 29 cents per share, beating the Zacks Consensus Estimate of 24 cents by 20.8%. In the year-ago quarter, CNX Resources reported earnings of 61 cents per share.
Revenues
CNX Resources’ first-quarter revenues of $337 million missed the Zacks Consensus Estimate of $401 million by 15.9%. Total revenues in the reported quarter decreased 28.8% year over year from the prior quarter’s $473 million.
CNX Resources Corporation. Price, Consensus and EPS Surprise
CNX Resources Corporation. price-consensus-eps-surprise-chart | CNX Resources Corporation. Quote
Highlights of the Release
The average selling price in the quarter was $2.51 per thousand cubic feet equivalent (Mcfe), down 24.4% from the year-ago figure of $3.32. In the reported quarter, total production cost was $1.54 per Mcfe, up 2.5% year-over-year.
Total second-quarter production volumes were 134.2 billion cubic feet equivalent (Bcfe), down 5.7% year over year. Interest expenses in the reported quarter were $34.8 million, up 11.9%.
CNX Resources repurchased 4 million shares during the quarter. Due to the systematic buyback of shares, the company repurchased 66.3 million shares for $1 billion since third-quarter 2020.
The company has reduced its adjusted net debt by $414 million since third-quarter 2020.
Financial Update
As of Jun 30, 2023, CNX Resources had cash and cash equivalents of $22.8 million, up from $21.3 million on Dec 31, 2022.
Long-term debt as of Jun 30, 2023, was $2,154.1 million, lower than $2,205.7 million as of Dec 31, 2022.
Second-quarter 2023 cash from operating activities was $198.7 million, up 3.5% from $191.9 million in the year-ago period. Free cash flow in the reported quarter was $135 million.
Second-quarter capital expenditure was $195.9 million, higher than $136.7 million invested in the year-ago period.
Guidance
CNX Resources updated the lower end of its 2023 total capital expenditure and expects to invest $625-$675 million compared with the prior mentioned $575-$675 million.
CNX expects its 2023 production volume to be 545-555 Bcfe and its 2024 production volume to be 580 Bcfe.
The company expects its 2023 free cash flow to be $325 million.
Its 2023 adjusted EBITDAX is anticipated to be $900-$1,000 million.
Zacks Rank
CNX Resources currently has a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
APA Corporation APA is slated to report its second-quarter results on Aug 3. The Zacks Consensus Estimate for second-quarter earnings is pegged at 66 cents per share, implying a decline of 72.5% from the year-ago reported quarter. Long-term (three to five years) earnings growth is currently pegged at 1.2%.
Devon Energy DVN is scheduled to report its second-quarter results on Aug 1, after market close. The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.17 per share, implying a decline of 54.8% from the year-ago reported quarter. Long-term earnings growth is currently pegged at 51.4%.
Occidental Petroleum Corporation OXY is slated to report its second-quarter results on Aug 2, after market close. The Zacks Consensus Estimate for second-quarter earnings is pegged at 70 cents per share, implying a decline of 77.8% from the year-ago reported quarter. Long-term earnings growth is currently pegged at 21.99%.
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