CNX Resources Corporation CNX reported third-quarter 2024 operating earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 32 cents by 28.1%. The bottom line also increased 17.1% from 35 cents in the year-ago quarter.

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Revenues

The company reported revenues of $354 million, which missed the Zacks Consensus Estimate of $398 million by 11.1%. The top line also decreased 0.8% from the prior-year quarter’s $357 million.

 

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 $2.63 per thousand cubic feet equivalent (Mcfe), up 5.6% from the year-ago figure of $2.49. Total production cost was $1.76 per Mcfe, up 10% year over year.

Total production volumes were 134.5 billion cubic feet equivalent (Bcfe), down 6.2% year over year.

Interest expenses totaled $37.9 million, up 7.2% year over year.

During the third quarter, CNX Resources repurchased 2.4 million shares at an average price of $26.73 per share for a total cost of $63 million. Over the past 16 quarters, CNX repurchased approximately 36% of its outstanding shares.

The company has reduced its adjusted net debt by $261 million since third-quarter 2020.

Financial Update

As of Sept. 30, 2024, CNX Resources had cash and cash equivalents of $1.3 million compared with $0.4 million as of Dec. 31, 2023.

Long-term debt as of Sept. 30, 2024, was $1.96 billion compared with $1.89 billion recorded as of Dec. 31, 2023.

Cash from operating activities for the quarter totaled $170.2 million compared with $206 million in the year-ago period. Free cash flow amounted to $60 million.

Capital expenditure for the quarter totaled $114.7 million compared with $205.6 million a year ago.

Guidance

CNX Resources lowered its 2024 total capital expenditure guidance between $525 million and $550 million compared with its previous projection of $525-$575 million.

It reaffirmed its expectation for 2024 production volume in the band of 545-555 Bcfe.

The company continues to expect free cash flow of $300 million in 2024.

CNX also lowered its expectation for 2024 adjusted EBITDAX to the range of $0.975-$1.025 billion from the previous guidance of $0.95-$1.05 billion.

CNX’s Zacks Rank

The company currently has 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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