U.S. Markets close in 5 hrs 16 mins
  • S&P 500

    3,597.23
    -41.12 (-1.13%)
     
  • Dow 30

    29,486.88
    -423.49 (-1.42%)
     
  • Nasdaq

    12,044.88
    -160.97 (-1.32%)
     
  • Russell 2000

    1,830.59
    -24.68 (-1.33%)
     
  • Crude Oil

    45.18
    -0.35 (-0.77%)
     
  • Gold

    1,774.40
    -13.70 (-0.77%)
     
  • Silver

    22.38
    -0.26 (-1.14%)
     
  • EUR/USD

    1.1989
    +0.0019 (+0.1559%)
     
  • 10-Yr Bond

    0.8470
    +0.0050 (+0.59%)
     
  • Vix

    22.03
    +1.19 (+5.71%)
     
  • GBP/USD

    1.3343
    +0.0029 (+0.2162%)
     
  • USD/JPY

    104.2130
    +0.1280 (+0.1230%)
     
  • BTC-USD

    19,466.60
    +132.77 (+0.69%)
     
  • CMC Crypto 200

    380.62
    +16.02 (+4.39%)
     
  • FTSE 100

    6,342.13
    -25.45 (-0.40%)
     
  • Nikkei 225

    26,433.62
    -211.09 (-0.79%)
     

CNX Resources (CNX) Q3 Earnings Beat Estimates, View Up

Zacks Equity Research
·4 min read

CNX Resources Corporation CNX reported third-quarter 2020 adjusted earnings of 4 cents per share, which surpassed the Zacks Consensus Estimate of 2 cents by a whopping 100%. Earnings also increased 166.7% from the year-ago figure.

On a GAAP basis, loss for the reported quarter was $1.03 per share versus loss of 78 cents in the year-ago period.

Revenues

Total second-quarter revenues of $66.1 million missed the Zacks Consensus Estimate of $282 million by 76.6%. The top line also decreased 87.53% from the year-ago quarter.

CNX Resources Corporation. Price, Consensus and EPS Surprise

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

Average selling price for the quarter was $2.36 per thousand cubic feet equivalent (Mcfe), down 5.9% from the year-ago figure of $2.51. For the reported quarter, total production costs were down 0.6% year over year to $1.71 per Mcfe due to proper cost-management measures implemented by the company.

Total third-quarter production volumes were 115.7 billion cubic feet equivalent, down 9.8% year over year. Interest expenses for the reported quarter were $37.9 million, down 1.3% from the year-ago period.

Financial Update

As of Sep 30, 2020, CNX Resources had cash and cash equivalents of $150.1 million, up from $16.3 million on Dec 31, 2019.

Total long-term debt as of Sep 30, 2020 was $2,577.9 million, lower than $2,754.4 million on Dec 31, 2019. During the first nine months of 2020, the company paid off all $895-million senior notes due in 2022.
    
Third-quarter 2020 cash from operating activities was $223.1 million, down 26.9% from $305.4 million in the year-ago period. Free cash flow for the reported quarter was $121 million.

Third-quarter capital expenditure was $108 million, lower than $336 million invested in the year-ago period.

Guidance

CNX Resources increased its 2020 capital expenditure guidance to the range of $495-$515 million from $470-$550 million expected earlier. CNX Resources also hiked 2020 production expectation to the band of 500-510 billions of cubic feet equivalent (Bcfe) from the prior view of 490-530 Bcfe.

The company reiterated 2021 production expectation of 550 Bcfe and capital expenditure at $440 million.

It expects to generate $3.4 billion in free cash flow during the 2020-2026 period through proper execution of long-term plans.

Through proper management of expenses, the company aims to lower fully burdened cash costs by 23% over the 2020-2026 time period, which will boost operating margins.

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 WPX is scheduled to report third-quarter 2020 results on Nov 2. The Zacks Consensus Estimate for earnings for the quarter is pegged at 6 cents per share.

Murphy Oil Corporation MUR is scheduled to announce third-quarter 2020 results on Nov 5. The Zacks Consensus Estimate for the bottom line for the quarter to be reported is pegged at a loss of 19 cents per share.

Occidental Petroleum Corporation OXY is scheduled to report third-quarter 2020 results on Nov 9. The Zacks Consensus Estimate for the bottom line for the quarter is pegged at a loss of 70 cents per share.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot stocks we're targeting >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CNX Resources Corporation. (CNX) : Free Stock Analysis Report
 
Murphy Oil Corporation (MUR) : Free Stock Analysis Report
 
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
 
WPX Energy, Inc. (WPX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.