CNX Resources Reports Q3 Sales Decline, Misses Revenue Consensus

CNX Resources Corp CNX reported third-quarter FY23 adjusted net sales decline of 25% year-over-year to $357 million, missing the consensus of $388.93 million.

Adjusted EPS was $0.35, above the consensus of $0.32.

Q3 operating margin was 27%, down from 34% in 3Q22. Cash operating margin stood at 56%, down from 62%.

Adjusted EBITDAX for the quarter totaled $228 million, down 30.1% Y/Y.

The average Sales Price for Natural Gas was $1.64, down from last quarter’s $1.80. Average Daily Production (MMcfe) was 1,559 vs. 1,590.9 in the second quarter of 2022.

Net Cash provided by operating activities for the quarter stood at $265 million, compared to $265 million in the third quarter of 2022. 

Free cash flow was $19 million versus $135 million a year ago.

“The third quarter represented the 15th consecutive quarter of free cash flow generation. Utilizing this free cash flow, we continued to repurchase shares, and cumulatively, since the inception of the buyback program in 2020, we have retired approximately 31% of our outstanding shares,” commented Nick Deiuliis, president and CEO.

The company repurchased 2.4 million shares on the open market in the third quarter at an average price of $19.50 per share for a total cost of $48 million.

FY23 Guidance: CNX expects Production Volumes (Bcfe) of 545- 555. It expects Adjusted EBITDAX of $900 million-$1 billion and FCF of ~$325 million.

Price Action: CNX shares are trading lower by 2.20% at $22.19 on the last check Wednesday.

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