CONSOL Coal (CCR) Tops Q1 Earnings and Revenue Estimates
CONSOL Coal Resources LP’s CCR first-quarter 2018 adjusted earnings per unit of 78 cents beat the Zacks Consensus Estimate of 43 cents by 81.4%. The bottom line surged 56% year over year.
Revenues
CONSOL Coal Resources’ total revenues of $94.5 million beat the Zacks Consensus Estimate of $84 million by 12.5%. The top line also improved 13.5% year over year. The primary driving factor was $6.18 per ton higher average revenue, which was partially offset by a 34 ton decrease in tons sold. The higher average sales price per ton sold in the 2018 period was primarily driven by improved pricing under our netback contracts.
CONSOL Coal Resources LP Price, Consensus and EPS Surprise
CONSOL Coal Resources LP Price, Consensus and EPS Surprise | CONSOL Coal Resources LP Quote
Operational Highlights
Average revenues per ton sold in the quarter was $52.98, up 13.2% from the year-ago figure of $46.80. The year-over-year improvement was driven largely by higher average revenue per ton on netback contracts.
Average cash cost of coal sales per ton in the reported quarter was $29.21, 1.6% higher than the year-ago figure of $28.75. This increase was essentially driven by higher royalties and production taxes, which were tied to the higher sales prices in the quarter.
Total cost of coal sold was $72.5 million, up 4.8% from $69.2 million the year-ago quarter.
Interest expenses were $1.95 million, 20.6% lower than $2.46 million in the year-ago quarter.
Financial Update
As of Mar 31, 2018, CONSOL Coal Resources had cash of $0.75 million, considerably down from $1.53 million as of Dec 31, 2017.
Total long-term debt as of Mar 31, 2018 was $190.8 million, lower than $196.7 million as of Dec 31, 2017.
Cash from operating activities for the first quarter was $29.3 million, up 65.7% from $17.7 million in the year-ago quarter.
Capital expenditure in the quarter was $4.9 million, higher than the year-ago level of $2 million.
Guidance
CONSOL Coal Resources expects coal sales volume for 2018 to be in the range of 6.55-6.80 million tons, higher than 6.50 million tons achieved in 2017.
Adjusted EBITDA is expected to be in the range of $95-$115 million. Capital expenditures are expected to be within $31-$36 million.
Upcoming Coal Releases
Contura Energy CNTE is scheduled to report first-quarter 2018 results on May 29. The Zacks Consensus Estimate for the quarter is pegged at $5.37.
Romaco Resources METC is scheduled to report first-quarter 2018 results on May 9. The Zacks Consensus Estimate for the quarter is pegged at 31 cents.
Natural Resource Partners LP NRP is scheduled to report first-quarter 2018 results on May 9. The Zacks Consensus Estimate for the quarter is pegged at $1.26.
Zacks Rank
CONSOL Coal Resources currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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