CNX Resources (NYSE:CNX) Issues Quarterly Earnings Results, Beats Expectations By $0.72 EPS

CNX Resources (NYSE:CNX) issued its earnings results on Thursday. The oil and gas producer reported $1.32 earnings per share for the quarter, topping analysts’ consensus estimates of $0.60 by $0.72, Briefing.com reports. CNX Resources had a return on equity of 10.65% and a net margin of 40.06%.The business had revenue of $435.00 million during the quarter, compared to the consensus estimate of $475.16 million. During the same period in the previous year, the company posted $2.43 earnings per share. The firm’s revenue for the quarter was down 35.7% on a year-over-year basis.

Here are the key takeaways from CNX Resources’ conference call:

• 45Z credit monetization outlook improved: Treasury’s revised carbon-intensity calculations increased the expected annual value of CNX’s 45Z credits to approximately $40 million, with about $30 million of previously sold credits expected to appear in third-quarter cash flow. Combined with environmental attributes, CNX is targeting roughly a $90 million annual low-carbon revenue run rate.
• CNX expects third-quarter capital spending to rise from the second-quarter level before moderating in the fourth quarter, but reiterated that activity timing—not inflation—is driving the quarterly pattern and maintained its full-year CapEx outlook around the midpoint.
• Production is expected to build through the second half, with a 12-to-13-well Marcellus pad coming online in the third quarter and an Utica pad expected in the fourth quarter; management said it is not specifically engineering production around winter gas prices.
• Management remains willing to pursue countercyclical share repurchases, potentially using additional revolver debt if risk constraints permit, citing a soft near-term gas outlook but strong longer-term Appalachian fundamentals. CNX also reported that Utica wells are performing in line with expectations and that drilling efficiency continues to improve, while well costs remain around $1,700 per lateral foot.

CNX Resources Stock Performance

NYSE:CNX traded down $0.06 during trading hours on Thursday, reaching $34.65. The stock had a trading volume of 816,302 shares, compared to its average volume of 2,085,874. The stock has a market cap of $4.90 billion, a P/E ratio of 4.79 and a beta of 0.59. The stock has a 50 day simple moving average of $33.57 and a 200 day simple moving average of $36.94. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.46 and a current ratio of 0.49. CNX Resources has a 12-month low of $27.72 and a 12-month high of $43.62.

CNX Resources News Roundup

Here are the key news stories impacting CNX Resources this week:

• Positive Sentiment: Q2 earnings exceeded expectations: CNX reported quarterly earnings of $0.68 per share, versus the consensus estimate of $0.60. Another estimate cited earnings of $0.72 per share compared with a $0.57 consensus, indicating an earnings beat. CNX Resources Q2 earnings report Zacks CNX Resources Q2 earnings beat
• Positive Sentiment: Profitability remained solid: The company reported a 40.06% net margin and 10.65% return on equity, supporting the view that CNX continues to generate significant cash flow despite weaker revenue. MarketBeat CNX earnings details
• Neutral Sentiment: Natural-gas demand offers a potential longer-term catalyst: Coverage highlights rising natural-gas demand as a possible support for CNX, although the articles do not identify a new contract or immediate earnings impact. CNX Resources and rising natural gas demand
• Negative Sentiment: Year-over-year performance deteriorated: Revenue fell 35.7% from the comparable quarter, while earnings declined from $2.43 per share last year. This weak comparison may outweigh the modest consensus beat for some investors. CNX Reports Second Quarter Results
• Negative Sentiment: Analyst sentiment is cautious: CNX Resources was assigned an average “Reduce” rating, limiting the positive effect of the earnings surprise. CNX Resources analyst rating

Insider Buying and Selling

In other CNX Resources news, Director William N. Thorndike, Jr. sold 28,800 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $38.25, for a total transaction of $1,101,600.00. Following the completion of the transaction, the director owned 426,585 shares in the company, valued at $16,316,876.25. This trade represents a 6.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 5.03% of the stock is currently owned by company insiders.

Institutional Trading of CNX Resources

Institutional investors have recently modified their holdings of the business. Smartleaf Asset Management LLC grew its stake in CNX Resources by 56.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 810 shares of the oil and gas producer’s stock valued at $30,000 after buying an additional 293 shares in the last quarter. Aigen Investment Management LP lifted its position in shares of CNX Resources by 4.9% during the fourth quarter. Aigen Investment Management LP now owns 7,619 shares of the oil and gas producer’s stock worth $280,000 after acquiring an additional 354 shares in the last quarter. Arkadios Wealth Advisors boosted its holdings in shares of CNX Resources by 3.2% in the fourth quarter. Arkadios Wealth Advisors now owns 13,028 shares of the oil and gas producer’s stock worth $479,000 after acquiring an additional 400 shares during the period. CANADA LIFE ASSURANCE Co boosted its holdings in shares of CNX Resources by 0.7% in the third quarter. CANADA LIFE ASSURANCE Co now owns 89,239 shares of the oil and gas producer’s stock worth $2,900,000 after acquiring an additional 643 shares during the period. Finally, Russell Investments Group Ltd. grew its position in shares of CNX Resources by 1.1% in the third quarter. Russell Investments Group Ltd. now owns 79,540 shares of the oil and gas producer’s stock valued at $2,556,000 after purchasing an additional 828 shares in the last quarter. 95.16% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently commented on CNX shares. Truist Financial raised shares of CNX Resources from a “sell” rating to a “hold” rating and set a $35.00 price objective for the company in a research report on Wednesday, July 15th. Tudor Pickering raised shares of CNX Resources from a “strong sell” rating to a “hold” rating in a research note on Friday, May 8th. Zacks Research cut shares of CNX Resources from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 28th. Barclays decreased their price target on shares of CNX Resources from $36.00 to $35.00 and set an “underweight” rating for the company in a research note on Tuesday, May 26th. Finally, Weiss Ratings lowered shares of CNX Resources from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday. Nine analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, CNX Resources presently has an average rating of “Reduce” and a consensus target price of $35.44.

About CNX Resources

CNX Resources Corporation is a natural gas and natural gas liquids producer with operations concentrated in the Appalachian Basin. Established as an independent, publicly traded entity in 2018 following its spinoff from Consol Energy, the company focuses on the exploration, development and production of hydrocarbon resources in the Marcellus and Utica shales across Pennsylvania, West Virginia and Ohio.

In addition to its upstream activities, CNX Resources has invested in midstream infrastructure through its subsidiary that gathers, processes and transports natural gas.