uploads///CNX Q Pre Net Income

Can Consol Energy Report a Profit in 4Q16?

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Jan. 26 2017, Published 3:37 p.m. ET

EPS estimates

For 4Q16, excluding any one-time items, Wall Street analysts expect Consol Energy (CNX) to report EPS (earnings per share) of -$0.15–$0.13 per share. The current consensus EPS estimate for 4Q16 is ~$0.00 per share.

On a year-over-year basis, Consol Energy’s 4Q16 current consensus EPS estimate is ~$0.11 higher per share compared to actual EPS of -$0.11 in 4Q15. Sequentially, its 4Q16 current consensus EPS estimate is ~$0.15 higher per share, from -$0.15 per share in 3Q16.

For 2016, excluding any one-time items, Wall Street analysts expect Consol Energy to report net income of -$93.0 million, or -$0.45 per share, from -$88.0 million, or -$0.39 per share, in 2015.

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What was CNX’s EPS performance in 3Q16?

In 3Q16, Consol Energy reported negative but sequentially higher net income from 2Q16. Its 3Q16 EPS was $0.06 higher than -$0.21 in 2Q16.

Despite sequentially lower production and higher production costs in 3Q16, a steep rise in natural gas (UNG) realized prices during the quarter positively impacted Consol Energy’s net income. Its total production costs and expenses rose to ~$630.0 million in 3Q16, from ~$619.0 million in 2Q16.

Consol Energy’s peers Marathon Oil (MRO), Diamondback Energy (FANG), and EOG Resources (EOG) reported net income of -$97.0 million (-$0.23 per share), -$2.2 million (-$0.03 per share), and -$190.0 million (-$0.35 per share), respectively, in 3Q16.

The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) generally invests at least 80.0% of its total assets in oil and gas exploration companies.

Net income trend

Consol Energy has reported much lower net income since 2Q15 due to lower realized natural gas (UNG) prices. In 2Q15, it saw its adjusted earnings turn negative for the first time since 3Q13.

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