What's in Store for CNX Resources in Q2 Earnings?

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

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

Factors to Note

CNX Resources' free cash flow generation and utilization of the same are likely to have continued to help repurchase shares and reduce debts in the second quarter.

The systematic buybacks during the quarter are expected to have boosted earnings per share. Ongoing debt reduction is likely to have resulted in decreased interest expenses.

The company's bottom line is expected to have benefited from its decision to delay completion activities on three Marcellus Shale pads, consisting of 11 wells, due to the challenging near-term gas market conditions. CNX's expects lower natural gas prices on unhedged volumes and curtailed production volumes to be largely offset by the deferral in capital activity and stronger NGL prices.

Q2 Expectations

The Zacks Consensus Estimate for earnings is pegged at 27 cents per share, indicating a year-over-year decrease of 6.9%. The Zacks Consensus Estimate for revenues is pinned at $387.3 million, indicating a year-over-year increase of 14.9%.

The consensus mark for total production volumes is pegged at 135.4 billion cubic feet equivalent, up 0.9% year over year. The consensus estimate for average natural gas sales price is pinned at $1.66 per thousand cubic feet equivalent, down 7.8% year over year. The consensus mark for average sales price of NGL is pegged at $22.56 per barrel, up 18.2% from that registered in the year-ago quarter.

The Zacks Consensus Estimate for the average sales price of Oil/Condensate is pinned at $68.9 per barrel, up 8.6% 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.

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.

NextEra Energy Partners NEP is expected to post an earnings beat when it announces second-quarter results on Jul 24, before market open. It has an Earnings ESP of +8.11% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for second-quarter earnings has increased 1.7% to 59 cents per unit in the past 30 days. The Zacks Consensus Estimate for sales calls for a year-over-year increase of 4.8%.

Plains All American Pipeline PAA is likely to come up with an earnings beat when it announces second-quarter results on Aug 2, before market open. It has an Earnings ESP of +2.25% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for earnings has increased 26.9% to 33 cents per unit in the past 60 days. The firm delivered an average earnings surprise of 20.1% in the last four quarters.

Energy Transfer ET is expected to post an earnings beat when it announces second-quarter results on Aug 7, after market close. It has an Earnings ESP of +12.36% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for earnings has increased 5.9% to 36 cents per unit in the past 60 days. The firm delivered an average earnings surprise of 1.7% in the last four quarters.

To read this article on Zacks.com click here.