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.

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.

Upcoming Releases

ONEOK, Inc. OKE is slated to report third-quarter results on Oct. 29, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.23 per share.

OKE’s long-term (three to five years) earnings growth rate is 4.55%. The Zacks Consensus Estimate for sales is pinned at $5.81 billion.

Energy Transfer ET is slated to report third-quarter results on Nov. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 32 cents per unit, which indicates a year-over-year improvement of 3.2%.

ET’s long-term earnings growth rate is 24.63%. The firm delivered an average earnings surprise of 5.2% in the trailing four quarters.

Murphy Oil MUR is scheduled to report third-quarter results on Nov. 7, before market open. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share.

The Zacks Consensus Estimate for 2024 earnings is pinned at $3.48 per share. The company delivered an average earnings surprise of 4.3% in the trailing four quarters.

 

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