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CNX Coal Resources (CNXC) Q1 Earnings & Revenues Lag

Thermal coal producer CNX Coal Resources LP’s CNXC first-quarter 2016 adjusted earnings of 11 cents per unit lagged the Zacks Consensus Estimate of 20 cents by a wide 45%.

 

 

Revenues

CNX Coal’s total revenue plunged 38.4% year over year to $47.8 million. Revenues also lagged the Zacks Consensus Estimate of $56 million by 14.6%.

The decline in the top line was primarily due to the depressed commodity price environment and lower realized prices of coal sold from the year-ago quarter.

The quarterly sales volume was 1.1 million tons, down 15.4% y/y, as a milder-than-usual winter and reduced coal generation weighed on the timing of shipments. During the quarter, CNX Coal exported nearly 0.3 million tons of coal, compared to an export of 0.4 million tons a year ago.

Operational Highlights

Average cost of coal sales per ton in the reported quarter was $33.16, down from the year-ago figure of $42.62.The improvement was driven by better productivity, reduced staffing levels, realignment of employee benefits, and idling of one longwall.

The partnership’s adjusted earnings before interest, tax, depreciation & amortization (EBITDA) in the quarter were$13.1 million.

Total costs and expenses were $45.3 million, down 24.8% from $60.2 million a year ago, primarily due to lower operating and other costs.

Interest expenses were nearly $2 million, slightly lower than $2.4 million in the prior-year quarter.

Financial Update

As of Mar 31, 2016, CNX Coal had cash of $9.1 million, up from $6.5 million as of Dec 31, 2015.

Total long-term debts as of Mar 31, 2016 were $196.3 million, higher than $181 million as of Dec 31, 2015.

Cash from operating activities for the first quarter was $2.3 million, compared with $27.4 million in the year-ago quarter.

Capital expenditure in the reported quarter was $2.6 million, lower than the year-ago level of $6.5 million.

Cash Distribution Update

CNX Coal announced a first-quarter 2016 cash distribution of 51.25 cents per limited partner unit. The amount will be paid on May 12, 2016 to unitholders of record as of May 5.

Guidance

CNX Coal has revealed its guidance for 2016. Coal sales are estimated to be 4.5–5.1 million tons. While adjusted EBITDA is expected to be $59–$69 million, maintenance capital expenditure is projected in the range of $18–$20 million.

Upcoming Peer Releases

CONSOL Energy Inc. CNX is scheduled to release first-quarter results on Apr 26, 2016. The Zacks Consensus Estimate stands at a loss of 9 cents.

SunCoke Energy Inc. SXC is scheduled to release first-quarter results on Apr 27. The Zacks Consensus Estimate stands at 4 cents.

Cloud Peak Energy Inc. CLD is scheduled to release first-quarter results on Apr 28. The Zacks Consensus Estimate stands at a loss of 15 cents.

Zacks Rank

CNX Coal Resources currently has a Zacks Rank #5 (Strong Sell).

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CONSOL ENERGY (CNX): Free Stock Analysis Report
 
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CNX COAL RESRCS (CNXC): Free Stock Analysis Report
 
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