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CNX Resources (CNX) Q1 Earnings Beat, Sales Miss Estimates

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CNX Resources Corporation (CNX - Free Report) reported first-quarter 2023 operating earnings of 56 cents per share, beating the Zacks Consensus Estimate of 44 cents by 27.3%. In the year-ago quarter, CNX Resources reported earnings of 79 cents per share.

Revenues

CNX Resources’ first-quarter revenues of $395 million missed the Zacks Consensus Estimate of $441 million by 10.4%. Total revenues in the reported quarter decreased 16.7% year over year from the prior quarter’s $474 million.

 

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

The average selling price in the quarter was $2.9 per thousand cubic feet equivalent (Mcfe), down 8.3% from the year-ago figure of $3.14. In the reported quarter, total production cost was $1.66 per Mcfe, up 9.2% year-over-year.

Total first-quarter production volumes were 135.9 billion cubic feet equivalent (Bcfe), down 9.9% year over year. Interest expenses in the reported quarter were $35.8 million, up 32.1%.

CNX Resources repurchased 5.9 million shares during the quarter. Due to the systematic buyback of shares, the company repurchased nearly 28% of its outstanding shares, or 62.2 million shares for $868 million, in the last ten quarters.

The company has reduced adjusted net debt by $345 million since third-quarter 2020.

Financial Update

As of Mar 31, 2023, CNX Resources had cash and cash equivalents of $2.8 million, down from $21.3 million on Dec 31, 2022.

Long-term debt as of Mar 31, 2023, was $2,203.1 million, lower than $2,205.7 million as of Dec 31, 2022.

First-quarter 2023 cash from operating activities was $248.8 million, down 26.1% from $336.4 million in the year-ago period. Free cash flow in the reported quarter was $89 million.

First-quarter capital expenditure was $170.1 million, higher than $122.3 million invested in the year-ago period.

Guidance

CNX Resources reiterates its 2023 total capital expenditure to be in the range of $575-$675 million. CNX expects its 2023 production volume to be in the band of 555-575 Bcfe, and its 2024 production volume to be nearly 590 Bcfe.

CNX Resources expects its 2023 free cash flow to be $375 million.

Its 2023 adjusted EBITDAX is expected to be in the range of $950-$1,050 million.

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

APA Corporation (APA - Free Report) is slated to report its first-quarter results on May 4, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 97 cents per share, implying a year-over-year decline of 49.5%. Long-term (three to five years) earnings growth is currently pegged at 2.4%.

Devon Energy (DVN - Free Report) is scheduled to report its first-quarter results on May 8, after market close. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.42 per share, indicating a year-over-year decrease of 24.5%. Long-term earnings growth is currently pegged at 51.4%.

Occidental Petroleum Corporation (OXY - Free Report) is slated to report its first-quarter results on May 15, after market close. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.30 per share, implying a year-over-year decline of 38.7%. Long-term earnings growth is currently pegged at 21.99%.


 

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