CNX Resources (CNX) Q2 Earnings & Revenues Miss Estimates

CNX Resources Corporation CNX reported second-quarter 2021 adjusted earnings of 18 cents per share, which lagged the Zacks Consensus Estimate of 25 cents by 28%.

Revenues

Second-quarter revenues were $359 million, which lagged the Zacks Consensus Estimate of $390 million by 7.9%. Nonetheless, the top line increased 140.9% from the year-ago quarter.

Highlights of the Release

Average selling price for the quarter was $2.60 per thousand cubic feet equivalent (Mcfe), up 3.2% from the year-ago figure of $2.52. For the reported quarter, total production costs were down 1.8% year over year to $1.60 per Mcfe due to proper cost-management measures implemented by the company. Its efficient management of expenses continues to reduce outflow and boost margins.

Total second-quarter production volumes were 137.9 billion cubic feet equivalent, up 20.4% year over year. Interest expenses for the reported quarter were $39.46 million, down 14.5% from the year-ago period.

During the quarter, CNX Resources repurchased shares worth $23 million. The remaining amount available under the existing stock repurchase program is $215 million and is not subject to an expiration date.

CNX Resources Corporation. Price, Consensus and EPS Surprise

CNX Resources Corporation. Price, Consensus and EPS SurpriseCNX 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

Financial Update

As of Jun 30, 2021, CNX Resources had cash and cash equivalents of $39.4 million, up from $15.6 million on Dec 31, 2020.

Total long-term debt as of Jun 30, 2021 was $2,265.9 million, lower than $2,401.4 million on Dec 31, 2020.

Second-quarter 2021 cash from operating activities was $239.2 million, up 66.3% from $143.8 million in the year-ago period. Free cash flow for the year was $117 million.

Capital expenditure for second-quarter 2021 was $129 million.

Guidance

CNX Resources reiterated capital expenditure view for 2021 in the range of $430-$470 million. The company still expects 2021 production volumes in the range of 540-570 billions of cubic feet equivalent. Nearly 94% expected gas production for 2021 is hedged by the company.

CNX Resources raised free cash flow expectation for 2021 to $475 million from $450 million projected earlier.

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

Devon Energy Corporation DVN is scheduled to announce second-quarter 2021 results on Aug 3. The Zacks Consensus Estimate for the bottom line for the quarter to be reported is pegged at 53 cents per share.

ConocoPhillips COP is scheduled to report second-quarter 2021 results on Aug 3. The Zacks Consensus Estimate for the bottom line for the quarter to be reported is pegged at $1.15 per share.

Occidental Petroleum Corporation OXY is scheduled to report second-quarter 2021 results on Aug 3. The Zacks Consensus Estimate for the quarter is pegged at break-even earnings per share.

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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