CNX Coal (CNXC) Q1 Earnings Miss, Revenues Beat Estimates

CNX Coal Resources LP’s (NYSE:CNXC) first-quarter 2017 adjusted earnings of 50 cents per unit missed the Zacks Consensus Estimate of 55 cents by 9%. However, the quarter’s earnings were up 354.5% year over year.

Revenues

CNX Coal’s total revenue surged 39.3% year over year to $83.3 million from the year-ago figure of around $59.8 million. Reported revenues also topped the Zacks Consensus Estimate of $79.9 million by 4.2%.

Operational Highlights

Average cost of coal sales per ton in the reported quarter was $34.52, 4.1% higher than the year-ago figure of $33.16. The improvement was driven by mobilization of additional resources for the development of longwall panels, challenging geological conditions at Enlow Fork mine, and increased equipment maintenance compared with the year-ago quarter.

Average realized price per ton of coal in the reported quarter was $46.80, up approximately 9% as the pricing on export shipments improved significantly.

The partnership’s adjusted earnings before interest, tax, depreciation & amortization (EBITDA) in the quarter were $27.9 million, up almost 70% from $16.4 million in the prior-year quarter.

Total costs and expenses were $69.2 million, 23.6% higher than $56 million a year ago.

Financial Update

As of Mar 31, 2017, CNX Coal had cash of $6.5 million, down from $9.1 million as of Dec 31, 2016.

Total long-term debt as of Mar 31, 2017 was $194.1 million, lower than $198 million as of Dec 31, 2016.

Cash from operating activities for the first quarter was $17.7 million, up 406% from $3.5 million in the year-ago quarter.

Capital expenditure (actual cash maintenance) in the reported quarter was $2 million, lower than the year-ago level of $2.6 million.

CNX Coal Resources LP Price, Consensus and EPS Surprise

CNX Coal Resources LP Price, Consensus and EPS Surprise | CNX Coal Resources LP Quote

Cash Distribution Update

CNX Coal announced first-quarter 2017 cash distribution of 51.25 cents per limited partner unit. The amount will be paid on May 15, 2017 to unitholders of record as of May 8.

Guidance

CNX Coal also increased its guidance for 2017. Coal sales are estimated to be in the range of 6.4–6.9 million tons, reflecting an increase from 6.25-6.75 million tons projected earlier. Adjusted EBITDA is expected to be $95–$115 million, up from the previous range of $90–$110 million. Maintenance capital expenditure is projected in the range of $30–$34 million, up from the earlier range of $30–$36 million.

Peer Releases

Cloud Peak Energy (NYSE:CLD) reported a loss of 30 cents per share in the first quarter of 2017. The Zacks Consensus Estimate was pegged at a breakeven. The Company’s quarterly revenues of $195.7 million lagged the Zacks Consensus Estimate of $237.8 million by 17.7%.

SunCoke Energy (NYSE:SXC) reported earnings of 2 cents per share in the first quarter of 2017, compared with the Zacks Consensus Estimate of a loss of 10 cents. SunCoke Energy’s quarterly revenues of $309.7 million lagged the Zacks Consensus Estimate of $407 million by 23.9%.

Alliance Resource Partners, L.P.’s (NASDAQ:ARLP) first-quarter 2017 earnings of $1.10 per unit surpassed the Zacks Consensus Estimate of 77 cents. Alliance Resource’s revenues of $461.1 million in the first quarter surpassed the Zacks Consensus Estimate of $448.2 million by 2.79%.

Zacks Rank

CNX Coal has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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