CNX Resources Corporation Reports Unaudited Consolidated Earnings and Production Results for the Fourth Quarter and Earnings for the Full Year Ended December 31, 2017; Provides Production Guidance for the Year 2018; Re-Affirms Earnings Guidance for the Year 2018
January 30, 2018 at 06:48 am
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CNX Resources Corporation reported unaudited consolidated earnings and production results for the fourth quarter and earnings for the full year ended December 31, 2017. For the quarter, the company reported total revenue and other operating income of $476,951,000 compared to $74,011,000 a year ago. Income from continuing operations before income tax was $88,510,000 compared to loss from continuing operations before income tax of $263,059,000 a year ago. Income from continuing operations was $282,143,000 or $1.24 per diluted share compared to loss from continuing operations of $300,455,000 or $1.31 per diluted share a year ago. Net income was $276,643,000 or $1.21 per diluted share compared to net loss of $306,047,000 or $1.33 per diluted share a year ago. Adjusted net income from continuing operations was $222 million or $0.98 per diluted share compared to a loss of $146 million in the year-earlier quarter. Adjusted EBITDA from continuing operations was $173 million compared to $132 million in the year-earlier quarter. Capital expenditures increased to $233.4 million, compared to $34.2 million spent in the year-earlier quarter. Adjusted income from continuing operations before income tax was $10.9 million compared to adjusted loss from continuing operations before income tax of $17.7 million a year ago. Adjusted income before income tax was $10.9 million compared to adjusted loss before income tax of $17.7 million for the three months ended December 31, 2016.
For the full year, the company reported total revenue and other operating income of $1,455,131,000 compared to $759,968,000 a year ago. Income from continuing operations before income tax was $118,581,000 compared to loss from continuing operations before income tax of $585,348,000 a year ago. Income from continuing operations was $295,039,000 or $1.28 per diluted share compared to loss from continuing operations of $550,945,000 or $2.40 per diluted share a year ago. Net income was $380,747,000 or $1.65 per diluted share compared to net loss of $848,102,000 or $3.70 per diluted share a year ago.
The company provided production guidance for the year 2018. The company continues to expect 2018 production volumes of 520-550 Bcfe, or an approximately 31% annual increase, based on the midpoint of guidance, compared to 2017 volumes of 407 Bcfe. Also, CNX plans to run three rigs through the first half of 2018 and add a fourth rig starting in July.
The company re-affirmed earnings guidance for the year 2018. The company re-affirmed the 2018 capital expenditure forecast of $790 million to $880 million, excluding the recent acquisition of the general partner interest of CNXM, which includes $515 million to $580 million of drilling and completion (D&C) capital and approximately $275 million to $300 million of capital associated with land, midstream, and water infrastructure. The 2018 D&C capital budget is allocated approximately 65% to the Marcellus Shale and 35% to the Utica Shale. The company expects adjusted 2018 EBITDA attributable to the company of $845 million to $895 million, based on NYMEX as of January 3, 2018 and a weighted average basis of $0.32 per MMBtu on open volumes. The company's total expected adjusted 2018 EBITDA includes approximately $60 million to $90 million of EBITDA attributable to the company's ownership in CNXM.
For the quarter, the company reported production of 118.9 Bcfe. Total production costs fall to $2.17 per Mcfe.
CNX Resources Corporation is an independent low carbon intensity natural gas development, production, midstream and technology company centered in the Appalachian Basin. The majority of its operations are centered on unconventional shale formations, primarily the Marcellus Shale and Utica Shale, in Pennsylvania, Ohio and West Virginia. Additionally, it operates and develops Coalbed Methane (CBM) properties in Virginia. It has rights to extract natural gas from Shale formations in Pennsylvania, West Virginia, and Ohio from approximately 527,000 net Marcellus Shale acres and approximately 607,000 net Utica Shale acres. The Company holds approximately 53,000 acres of incremental Upper Devonian acres. It has rights to extract CBM in Virginia from approximately 278,000 net CBM acres. It extracts CBM natural gas primarily from the Pocahontas #3 seam. It has rights to extract natural gas from other Shale and shallow oil and gas formations, primarily in Illinois, Indiana, New York, and others.
CNX Resources Corporation Reports Unaudited Consolidated Earnings and Production Results for the Fourth Quarter and Earnings for the Full Year Ended December 31, 2017; Provides Production Guidance for the Year 2018; Re-Affirms Earnings Guidance for the Year 2018