CNX Resources (NYSE: CNX) reported Q4 EPS of ($0.14), $0.19 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $508.99 million versus the consensus estimate of $389.81 million.

During the fourth quarter of 2019:

• The company reported a net loss attributable to CNX shareholders of $271 million, or a loss of $1.45 per diluted share, largely due to a $327 million non-cash impairment charge related to exploration and production properties and a $119 million non-cash impairment charge related to unproved properties and expirations, both of which were associated with the company\'s Central Pennsylvania (CPA) acreage. In the fourth quarter of 2018 the company reported net income attributable to CNX shareholders of $102 million, or earnings of $0.50 per diluted share. During the fourth quarter of 2019 and 2018, there was an unrealized gain on commodity derivative instruments of $93 million and an unrealized loss on commodity derivative instruments of $37 million, respectively.
• The company reported total production costs of $1.97 per Mcfe, including $0.86 per Mcfe of Depreciation, Depletion and Amortization (DD&A), compared to $1.89 per Mcfe, including $0.89 per Mcfe of DD&A, in the year-earlier quarter.
• On a consolidated basis, the company reported a net loss of $240 million for the 2019 fourth quarter, largely due to a $327 million non-cash impairment charge related to exploration and production properties and a $119 million non-cash impairment charge related to unproved properties and expirations, both of which were associated with the company\'s CPA acreage. This compares to net income of $129 million in the fourth quarter of 2018.
• Consolidated capital expenditures were $228 million, compared to $322 million spent in the year-earlier quarter.
• The company had total weighted-average diluted shares of common stock outstanding of 186,615,121, compared to 203,741,408 shares in the fourth quarter of 2018.

"During the fourth quarter, our team continued to deliver excellent results with our 2019 capital program coming in $27 million and $14 million below the midpoint and low end of the previously stated guidance range, respectively," commented Nicholas J. DeIuliis, president and CEO. "The team accomplished this while working on our RHL 71 wells that included a state record for lateral length, making the capital efficiency even more impressive. For the year, we ended 2019 at the high end of our production guidance range, above the high end of our EBITDAX guidance range, and well below the low end of our capital guidance range. Also, we were nearly free cash flow (FCF) neutral in 2019 when including the $45 million in assets sales we completed."

Mr. DeIuliis continued, "Looking towards the future, based on the current macro conditions we have decided to reduce our drilling and completion (D&C) capital program even further, and now expect our production to be approximately flat in 2020. We believe that this activity set will help us generate organic FCF (a non-GAAP measure)(a) of approximately $200 million in 2020 and will position the business to have an even better 2021 where we expect to grow annual production volumes approximately 5% and generate over $200 million in organic FCF. When coupled with regular ongoing asset sales, however, we currently expect total FCF close to $250 million for both 2020 and 2021, which will be used for debt reduction and/or go towards D&C investments. This would allow us to reduce our absolute debt and leverage ratio in both 2020 and 2021 without major asset sales. This is a unique position to be in within our peer group. Despite our near-term focus on the balance sheet, we continue to see a long-term opportunity to reduce our share count meaningfully in the future, and we remain steadfastly committed to maximizing the NAV per share of the company."

For earnings history and earnings-related data on CNX Resources (CNX) click here.