Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

CNX Resources (CNX): Longleaf Loves This Natural Gas Company

Longleaf Partners Fund, a suite of mutual funds and UCITS funds managed by Southeastern Asset Management, discussed CNX Resources Corp. (NYSE: CNX) in its most recent letter to investors. CNX, a Pittsburgh-based natural gas company, did not perform well on the share market in 2018. Let’s take a look at the fund’s comments on CNX:

CNX (-22%, -1.35%, -20%, -1.30%), the Appalachian natural gas company, detracted for the year. The stock declined after reporting an 8.5% increase in capital expenditure guidance during the second quarter.

Additionally, nearly all energy stocks had a sharp selloff following the fourth quarter’s commodity price volatility. CEO Nick DeIuliis took advantage of the dislocation by repurchasing over 16% of CNX’s outstanding shares in the 12 months ended in October. Our appraisal increased with the company’s growth in cash flow.

In June, CNX sold its Ohio Utica acreage for a good price. The company has other non-core assets to monetize in coming years. Most production is hedged several years out, helping to insulate the business’s value from declines in the gas strip. The stock trades at below half of our appraisal.

oil, worker, rig, gas, mining, drilling, man, business, engineer, petroleum, platform, job, fuel, collar, helmet, blue, russia, inspector, fossil, pump, oilman, power, male,

ded pixto/Shutterstock.com

CNX Resources Corp. (NYSE: CNX) is one of the largest independent natural gas exploration, development, and production companies, focusing on the major shale formations of the Appalachian Basin.

Shares of the company fell over 24% in 2018. Since the start of the year, the stock has dropped over 10%. Closing at $10.47 on Monday, the stock has a consensus average rating of ‘HOLD’ and a consensus average price target of $15.60, according to analysts polled by FactSet.

If we look at hedge funds sentiment, CNX isn’t a very popular stock among hedge funds tracked by us. At the end of the third quarter of 2018, 23 funds held the stock in their portfolios.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...