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CNX Resources (CNX) Beats Q1 Earnings and Revenue Estimates

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CNX Resources Corporation (CNX - Free Report) reported adjusted earnings of 19 cents per share in first-quarter 2018, beating the Zacks Consensus Estimate of 12 cents by 58.3%. The bottom line improved 11.8% year over year.

Revenues

CNX Resources’ total revenues of $495.7 million in the first quarter surpassed the Zacks Consensus Estimate of $406 million by 22.1%.

Total revenues were higher than the year-ago quarter figure by 54.9%. The significant year-over-year growth was due to higher contribution from Natural Gas, NGL and oil sales and gain on Commodity Derivative Instrument.

CNX Resources Corporation. Price, Consensus and EPS Surprise

CNX Resources Corporation. Price, Consensus and EPS Surprise | CNX Resources Corporation. Quote

Highlights of the Release

CNX Resources registered a 36% year-over-year increase in gas sales volumes to 129.5 billion cubic feet equivalent (Bcfe) in the first quarter. The surge was primarily due to higher Utica Shale volumes.

The average sales price of $3 per thousand cubic feet gas equivalent (Mcfe), when combined with unit cost of $2.10 per Mcfe, resulted in a margin of 90 cents per Mcfe. This marked an increase from the year-earlier quarter due to improvement in average sales price and total production costs.

In the reported quarter the company bought back 5.8 million shares.

Financial Update

As of Mar 31, 2018, CNX Resources had cash and cash equivalent of $82.5 million, considerably down from $509.2 million as of Dec 31, 2017.

Total long-term debt as of Mar 31, 2018 was $2,229.8 million, higher than $2,207.4 million as of Dec 31, 2017.

Cash from operating activities for the first quarter was $259.3 million, up 59% from $163.1 million in the year-ago quarter.

Capital expenditure in the quarter was $232.5 million, higher than the year-ago level of $103.9 million.

Guidance

CNX Resources reaffirmed its 2018 capital expenditure forecast of $790-$915 million and production guidance of 500-525 Bcfe.

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 Oil & Gas Releases

Wildhorse Resource Development Corporation (WRD - Free Report) is scheduled to report first-quarter 2018 results on May 9. The Zacks Consensus Estimate for the quarter is pegged at 37 cents.

Evolution Petroleum Corporation, Inc. (EPM - Free Report) is scheduled to report first-quarter 2018 results on May 14. The Zacks Consensus Estimate for the quarter is pegged at 12 cents.

Stone Energy Corporation is scheduled to report first-quarter 2018 results on May 11. The Zacks Consensus Estimate for the quarter is pegged at 61 cents.

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