CNX back on my watch list after their earnings report. I had sold out of this NG play in early 2017 around $20/share. Did not realize this traded as low as $6.30/share (July 2019). I like WMB's NG play better and also D's exposure to NG. CNX shows when leveraged to NG how stock/value can rise/fall. Maybe bottom is in and many of these stocks w/ exposure to NG will begin to move higher.
CNX Resources surges as Q2 revenues rise 50%, production outlook raised
Jul. 30, 2019 12:43 PM ET|About: CNX Resources Corporation (CNX)|By: Carl Surran, SA News Editor
CNX Resources ( CNX +21.8%) rallies off 52-week lows after reporting strong Q2 results including a 50% Y/Y revenue increase to $605M, as quarterly sales volumes gained 10% Y/Y to 135B cfe.
CNX raised its outlook for FY 2019 production volumes to 510B-530B cfe from previous guidance of 495B-515B cfe and sees 2020 production volumes of 570B-595B cfe, which equates to a ~12% annual increase, based on the midpoints of guidance.
At the same time, CNX cuts its outlook for 2019 consolidated EBITDAX of $885M-$925M from $920M-$950M previously, citing lower natural gas prices, and forecasts consolidated 2020 EBITDAX of $945M-$1.01B.
The updated guidance assumes 2019 Nymex gas price of $2.45/MMBtu on open volumes and a basis differential of negative $0.275/Mcf, compared to the previous view which assumed a 2019 Nymex gas price of $2.88/MMBtu and a basis differential of negative $0.225/Mcf, based on the midpoints of guidance.
CNX says its hedge program, coupled with the 2020 development plan and capital program, positions it to generate $135M in free cash flow in 2020 at forward strip prices on open volumes, while growing production ~12% from 2019; based on this activity, CNX expects to be free cash flow positive and have flat production in 2021. |
