CNX Resources (NYSE: CNX) reported Q1 EPS of ($1.76), versus ($0.44) reported last year. Revenue for the quarter came in at $416.36 million versus the consensus estimate of $377.13 million.

During the first quarter of 2020:

• Reported a Net loss attributable to CNX shareholders of $329 million, or a loss of $1.76 per diluted share compared to a first quarter 2019 Net loss attributable to CNX shareholders of $87 million, or a loss of $0.44 per diluted share. The first quarter 2020 included non-cash impairment charges of $473 million for goodwill attributable to the midstream reporting unit and $62 million related to Southwestern Pennsylvania coalbed methane operations. First quarter 2020 and 2019 unrealized losses on commodity derivative instruments were $36 million and $154 million, respectively.
• Net cash provided by operating activities was $267 million and capital expenditures were $152 million compared to first quarter 2019 Net cash provided by operating activities of $309 million and capital expenditures of $299 million.
• Proceeds from asset sales were $14 million compared to $6 million for the first quarter of 2019.

First Quarter Highlights

• Consolidated free cash flow (FCF)(a non-GAAP measure)(1) of $129 million, or an increase of 760% from the $15 million in the first quarter of 2019.
• Received $55 million from restructuring portion of 2022-2024 NYMEX hedges.
• Completed $175 million project financing for the Cardinal States Gathering (CSG) system at 6.5% interest rate.
• Repurchased $71 million of senior secured 5.875% notes due in 2022, and following the end of the quarter, repurchased an additional $8 million of notes.
  • As of April 7, 2020, the company repurchased a total of $79 million of notes at an average discount to par of 85, which has allowed CNX to further de-lever.
• Accelerated $51 million of our expected 2021 income tax refund into 2020, which the company expects to receive in the second half of 2020. This brings total expected tax refunds in 2020 to $115 million.

"Although the times may be unprecedented, CNX has remained steadfast in its philosophy and approach," commented Nicholas J. DeIuliis, president and CEO. "First and foremost, we focus on optimizing the long-term NAV per share of the company. Second, the best way we optimize NAV per share is to generate free cash flow and then allocate that cash into the best risk-adjusted internal rates of return. Currently, paying down debt across our various tranches looks compelling on the risk-reward spectrum when compared to other capital allocation alternatives."

Mr. DeIuliis continued, "This approach, over the past few years, during Q1, and today is what differentiates CNX. Our hedging, numerous strategic transactions, focus on being a low cost producer, reining in overhead spend and capital allocation have delivered a business model where CNX is a steady, substantial free cash flow generator over the next seven years, year in and year out. Our owners now enjoy the prospects of CNX generating $300 million in consolidated free cash flow(a) in 2020, $400 million in 2021, and over $3 billion cumulatively over the next seven years. Those cash flows, which are driven by a modest maintenance of production plan, will create a fortress balance sheet and allow for exciting capital allocation opportunities for years to come."

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