CNX Resources (CNX) Q3 Earnings Beat Estimates, Revenues Lag
CNX Resources Corporation CNX reported third-quarter 2023 operating earnings of 35 cents per share, which beat the Zacks Consensus Estimate of 26 cents by 34.6%. In the year-ago quarter, the company reported a loss of 54 cents per share.
Revenues
Third-quarter revenues of $357 million missed the Zacks Consensus Estimate of $381 million by 6.3%. The top line also decreased 25% from the prior-year quarter’s level of $476 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 $2.49 per thousand cubic feet equivalent (Mcfe), down 23.4% from the year-ago figure of $3.25. Total production cost was $1.60 per Mcfe, down 2.4% year over year.
Total production volumes were 143.4 billion cubic feet equivalent (Bcfe), down 2% year over year. The Zacks Consensus Estimate for total production volumes was pinned at 140 Bcfe for the same quarter.
Interest expenses totaled $35.4 million in the reported quarter, up 3% year over year.
CNX Resources repurchased 2.4 million shares at an average price of $19.50 per share for a total cost of $48 million. Over the past 12 quarters, CNX repurchased approximately 31% of its outstanding shares.
The company has reduced its adjusted net debt by $385 million since third-quarter 2020.
Financial Update
As of Jun 30, 2023, CNX Resources had cash and cash equivalents of $8.7 million compared with $21.3 million on Dec 31, 2022.
Long-term debt as of Jun 30, 2023, was $1,843.8 million, lower than $2,205.7 million as of Dec 31, 2022.
Cash from operating activities totaled $206 million compared with $264.4 million in the year-ago period. Free cash flow in the reported quarter amounted to $19 million.
Capital expenditure totaled $205.6 million, higher than $133.6 million recorded in the year-ago period.
Guidance
CNX Resources continues to expect its 2023 total capital expenditure in the range of $625-$675 million.
It continues to expect its production volume in the band of 545-555 Bcfe for 2023 and at 580 Bcfe for 2024.
CNX expects free cash flow of $325 million for 2023.
Adjusted EBITDAX is anticipated in the band of $900-$1,000 million for the same year.
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
ONEOK, Inc. OKE is slated to report third-quarter results on Oct 31, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.04 per share, implying a year-over-year increase of 8.3%.
OKE’s long-term (three to five years) earnings growth rate is 6.93%. It delivered an average earnings surprise of 6.5% in the last four quarters.
Devon Energy DVN is scheduled to report third-quarter results on Nov 7, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.53 per share.
DVN’s long-term earnings growth rate is 51.35%. The company delivered an average earnings surprise of 0.8% in the last four quarters.
Cactus, Inc. WHD is slated to report third-quarter results on Nov 8, after market close. The Zacks Consensus Estimate
for earnings is pegged at 81 cents per share, implying a year-over-year improvement of 55.8%.
WHD’s long-term earnings growth rate is 9.38%. It delivered an average earnings surprise of 13.5% in the last four quarters.
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