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

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

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 Down 0.3%

NYSE CNX traded down $0.10 on Thursday, hitting $34.60. The stock had a trading volume of 2,084,079 shares, compared to its average volume of 2,095,087. The business’s fifty day moving average price is $33.57 and its 200 day moving average price is $36.94. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.49 and a quick ratio of 0.46. CNX Resources has a 52-week low of $27.72 and a 52-week high of $43.62. The stock has a market cap of $4.89 billion, a price-to-earnings ratio of 4.81 and a beta of 0.59.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Morgan Stanley lowered their target price on CNX Resources from $34.00 to $32.00 and set an “underweight” rating for the company in a report on Monday, June 29th. Tudor Pickering upgraded CNX Resources from a “strong sell” rating to a “hold” rating in a report on Friday, May 8th. Truist Financial upgraded shares of CNX Resources from a “sell” rating to a “hold” rating and set a $35.00 target price on the stock in a report on Wednesday, July 15th. Zacks Research downgraded shares of CNX Resources from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 28th. Finally, Mizuho reduced their price target on shares of CNX Resources from $44.00 to $42.00 and set a “neutral” rating for the company in a report on Wednesday, May 27th. Nine equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $35.44.

Insider Transactions at CNX Resources

In other news, Director William N. Thorndike, Jr. sold 28,800 shares of the company’s 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 transaction, the director owned 426,585 shares in the company, valued at $16,316,876.25. This represents a 6.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 5.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CNX Resources

A number of large investors have recently bought and sold shares of the company. State of Wyoming purchased a new stake in CNX Resources in the 2nd quarter worth approximately $29,000. Smartleaf Asset Management LLC increased its holdings in shares of CNX Resources by 56.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 810 shares of the oil and gas producer’s stock valued at $30,000 after purchasing an additional 293 shares in the last quarter. Los Angeles Capital Management LLC acquired a new position in shares of CNX Resources in the 4th quarter valued at $34,000. Kestra Advisory Services LLC purchased a new position in CNX Resources in the fourth quarter valued at $50,000. Finally, EverSource Wealth Advisors LLC increased its holdings in CNX Resources by 393.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,925 shares of the oil and gas producer’s stock valued at $65,000 after buying an additional 1,535 shares in the last quarter. Hedge funds and other institutional investors own 95.16% of the company’s stock.

Key Stories Impacting CNX Resources

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

• Positive Sentiment: Quarterly earnings beat estimates. CNX reported second-quarter earnings above consensus. MarketBeat cited EPS of $1.32 versus an expected $0.60, while Zacks reported adjusted EPS of $0.72 versus a $0.57 estimate. The differing figures likely reflect different earnings measures, but both indicate an earnings beat. CNX Resources second-quarter earnings report
• Positive Sentiment: Profitability remained strong. CNX posted a 40.06% net margin and a 10.65% return on equity, potentially supporting the stock’s relatively low valuation, including a reported price-to-earnings ratio near 4.8. CNX Resources Q2 earnings beat estimates
• Neutral Sentiment: Natural-gas demand provides a potential catalyst. Coverage focused on whether rising natural-gas demand can benefit CNX, but the company’s results do not yet demonstrate a clear recovery in sales. CNX Resources and rising natural gas demand
• Negative Sentiment: Revenue missed expectations and declined sharply. Quarterly revenue was $435 million, below the $475.16 million analyst forecast and down 35.7% from the prior-year period. EPS also fell from $2.43 a year earlier, underscoring weaker operating conditions despite the earnings beat. CNX Reports Second Quarter Results
• Negative Sentiment: Analyst sentiment remains cautious. CNX Resources was given an average “Reduce” rating, which may limit upside as investors assess commodity prices, revenue trends and future gas demand. CNX Resources analyst rating

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.