Why CNX Resources Stock Is Slumping Today
Shares of CNX Resources (NYSE: CNX) tumbled more than 11% by 10:45 a.m. ET on Thursday. Weighing on the natural gas stock were its second-quarter results and outlook for capital spending.
CNX Resources posted fairly solid results for the second quarter. The natural gas producer generated $62 million of free cash flow, its 10th straight quarter of producing free cash. That pushed its total to $1.2 billion in cumulative free cash flow during that period. Meanwhile, the gas producer remains on track to deliver on its guidance for $700 million in free cash flow this year.
The company used $59 million of that money to repurchase another 3.2 million shares during the quarter. It bought back an additional $37 million in stock during the early part of the third quarter. CNX has repurchased 16% of its outstanding shares in the last seven quarters. The company is also using its free cash to continue strengthening its balance sheet. It repurchased $14 million of convertible notes due in 2026 and has now reduced its total debt by $315 million since the third quarter of 2020. It has years before its nearest bond maturity, giving it lots of financial flexibility in the interim.
Source Fool.com
