CONSOL Energy (CEIX) Beats Q1 Earnings And Revenue Estimates

CONSOL Energy Inc (NYSE:CNX).'s (NYSE:CEIX) first-quarter 2018 adjusted earnings per unit of $2.20 beat the Zacks Consensus Estimate of 79 cents by a whopping 178.5%. The bottom line also improved year over year by 49.7%.

Revenues

CONSOL Energy’s total revenues of $410.3 million beat the Zacks Consensus Estimate of $358 million by 14.6%. The top line also improved 10.2% year over year.

The primary driving factor was $6.18 higher average sales price per ton sold which was on account of improved revenue under the company's netback contracts, partially offset by a 0.2 million decrease in tons sold. The decrease in tons sold was due to weather-related challenges that affected rail and port logistics and limited further upside to shipment volumes.

Consol Energy Inc. Price and EPS Surprise

Operational Highlights

Average revenues per ton sold in the quarter was $52.98, up 13.2% from the year-ago figure of $46.80. The year-over-year improvement was driven largely by higher average revenue per ton on netback contracts.

Average cost of coal sales per ton in the reported quarter was $29.21, 1.6% higher than the year-ago figure of $28.75. This increase was essentially driven by higher royalties and production taxes, which are tied to the higher sales prices in the quarter.

Total cost of coal sold was $333 million, up 5.4% from $316 million the year-ago quarter.

Interest expenses were $21.1 million, 423.2% higher than $4 million in the year-ago quarter.

Financial Update

As of Mar 31, 2018, CONSOL Energy had cash of $191.7 million, up from $154 million as of Dec 31, 2017.

Total long-term debt as of Mar 31, 2018 was $866.3 million, higher than $865.3 million as of Dec 31, 2017.

Cash from operating activities for the first quarter was $115.7 million, up 138.4% from $48.5 million in the year-ago quarter.

Capital expenditure was $22 million, higher than the year-ago level of $9 million.

Guidance

CONSOL Energy expects coal sales volume (100% PAMC) for 2018 to be in the range of 26.2-27.2 million tons. Also, average revenue per ton sold is expected to be in the range of $47.15-$48.75.

Adjusted EBITDA is expected to be in the range of $370-$430 million. Capital expenditures are expected to be within $125-$145 million.

Upcoming Coal Releases

Contura Energy (NS:CNTE) is scheduled to report first-quarter 2018 results on May 29. The Zacks Consensus Estimate for the quarter is pegged at $5.37.

Romaco Resources (NASDAQ:METC) is scheduled to report first-quarter 2018 results on May 9. The Zacks Consensus Estimate for the quarter is pegged at 31 cents.

Natural Resource Partners LP (NYSE:NRP) is scheduled to report first-quarter 2018 results on May 9. The Zacks Consensus Estimate for the quarter is pegged at $1.26.

Zacks Rank

CONSOL Energy currently carries 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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