CONSOL Energy (CEIX) Beats Q1 Earnings and Revenue Estimates

CONSOL Energy Inc.'s 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

Consol Energy Inc. Price and EPS Surprise | Consol Energy Inc. Quote

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 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 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 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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