What's in Store for CNX Resources (CNX) in Q1 Earnings?

Zacks Equity Research

April 22, 2024 at 8:37 a.m.·4 min read

CNX Resources Corporation CNX is scheduled to release first-quarter 2024 results on Apr 25, before market open. The company delivered an earnings surprise of 151.9% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

CNX Resources’ free cash flow generation and utilization of the same are likely to have helped repurchase shares and reduce debts in the first quarter. The systematic buybacks during the quarter are expected to have boosted the bottom line. Ongoing debt reduction is likely to have resulted in decreased interest expenses and improved bottom line in the to-be-reported quarter.

The company’s bottom line is expected to have benefited from its decision to accommodate the continued lower outlook for near-term natural gas prices, reduce production volumes and delay completion activities at Marcellus Shale pads. This strategic move of the company should allow it to avoid incremental natural gas volumes in the currently oversupplied market.

However, low natural gas prices throughout the first quarter are expected to have negatively impacted CNX’s performance in the to-be-reported quarter.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter earnings is pegged at 36 cents per share, indicating a year-over-year decrease of 35.7%. The Zacks Consensus Estimate for revenues is pinned at $420.85 million, indicating a year-over-year increase of 6.5%.

The Zacks Consensus Estimate for total production volumes is pegged at 142 billion cubic feet equivalent, up 4.4% year over year.

The Zacks Consensus Estimate for average gas sales price is pinned at $2 per thousand cubic feet equivalent, down 33.3% year over year. The consensus mark for average sales price of NGL is pegged at $19 per barrel, down 29.6% from that registered in the year-ago quarter. The Zacks Consensus Estimate for the average sales price of Oil/Condensate is pinned at $62 per barrel, down 7.5% from the year-ago quarter’s figure.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for CNX Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the odds of an earnings beat, which is the case here.

CNX Resources Corporation. Price and EPS Surprise

CNX Resources Corporation. price-eps-surprise | CNX Resources Corporation. Quote

Earnings ESP: The company’s Earnings ESP is +5.84%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, CNX Resources carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors may also consider the following players from the same sector as these too have the right combination of elements to post an earnings beat this reporting cycle.

DT Midstream DTM is expected to post an earnings beat when it announces first-quarter results on Apr 30, before market open. It has an Earnings ESP of +1.29% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for DTM’s first-quarter earnings has increased 1.1% to 93 cents per share in the past 60 days. The company delivered an average earnings surprise of 9.8% in the last four quarters.

Murphy Oil MUR is likely to come up with an earnings beat when it announces first-quarter results on May 2, before market open. It has an Earnings ESP of +4.11% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for MUR’s first-quarter earnings has decreased 3.3% to 90 cents per share in the past 60 days. The company delivered an average earnings surprise of 9.97% in the last four quarters.

Energy Transfer ET is expected to post an earnings beat when it announces first-quarter results on May 8, after market close. It has an Earnings ESP of +14.75% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for ET’s first-quarter earnings remained unchanged at 31 cents per unit in the past 60 days. The firm delivered an average earnings surprise of 3.7% in the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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CNX Resources Corporation. (CNX) : Free Stock Analysis Report

Murphy Oil Corporation (MUR) : Free Stock Analysis Report

Energy Transfer LP (ET) : Free Stock Analysis Report

DT Midstream, Inc. (DTM) : Free Stock Analysis Report

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Factors to Consider

Q1 Expectations

What the Zacks Model Unveils

CNX Resources Corporation. Price and EPS Surprise

Other Stocks to Consider

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