CONSOL Energy declared a regular quarterly dividend of 1 cent a share Wednesday, down from its previous dividend of 6.25 cents a share.
The new dividend is payable on August 24 to all shareholders of record as of the close of business on August 10. The ex-dividend date is August 6.
The oil company also lowered its capital expenditures forecast for 2015 and 2016 to meet its cash flow goals. The company now expects capex of $800 million for 2015, down from its January forecast of $1 billion for the year.
CONSOL Energy did not provide a number forecast for its 2016 capex.
TheStreet Ratings team rates CONSOL ENERGY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONSOL ENERGY INC (CNX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.29 is very weak and demonstrates a lack of ability to pay short-term obligations.
- Despite the weak revenue results, CNX has significantly outperformed against the industry average of 38.8%. Since the same quarter one year prior, revenues slightly dropped by 8.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- CONSOL ENERGY INC's earnings per share declined by 35.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CONSOL ENERGY INC increased its bottom line by earning $0.73 versus $0.35 in the prior year. For the next year, the market is expecting a contraction of 7.5% in earnings ($0.68 versus $0.73).
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.18%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 35.84% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, CNX is still more expensive than most of the other companies in its industry.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CONSOL ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: CNX Ratings Report