CNX Gas Corp. (CXG) said Thursday its third quarter profit declined from last year, hurt by lower price realization that lead to a drop in revenue growth, partially offset by higher production. Looking ahead, the company raised its 2009 production outlook for the second time, on increased production of Virginia coalbed methane.
Net income attributable to CNX Gas shareholders was $35.5 million or $0.23 per share for the third quarter, compared to $67.4 million or $0.45 per share in the prior year quarter. On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share for the third quarter. Analysts' estimates typically exclude special items.
Third quarter total revenue and other income decreased to $165.65 million from $216.95 million in the same quarter last year. Seven analysts had a consensus revenue estimate of $156.98 million for the third quarter.
Production for the quarter was 24.8 billion cubic feet or Bcf, or 269 million cubic feet or MMcf per day, an increase of 26% from 19.7 Bcf, or 214 MMcf per day in the year-ago quarter.
The average price realized for the company's gas production dropped to $6.25 per Mcf from $9.73 per Mcf received last year.
For the nine-month period of 2009, net income attributable to CNX Gas shareholders was $123.4 million or $0.82 per share, compared to $181.6 million or $1.20 per share in the year-ago period.
Total revenue for the period declined to $505.65 million from $583.37 million in the previous year period.
For 2009, CNX Gas raised its production guidance by 3 Bcf to 92 Bcf. The guidance assumes no fourth quarter production curtailments due to above normal national storage levels or other factors.
If the 92 Bcf is achieved, it means that CNX Gas will have produced 20% more than the 76.6 Bcf produced in 2008.
For 2010, CNX Gas is re-instating production guidance of 100 Bcf.
CXG is currently trading at $33.25, down $2.03 or 5.75%.
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