CONSOL Energy Announces Results for the Third Quarter 2023

PAMC Sales and Marketing

CEIX sold 6.1 million tons of PAMC coal during the third quarter of 2023, generating realized coal revenue¹ of $431.1 million for the PAMC segment and an average realized coal revenue per ton sold¹ of $70.34. This compares to 5.3 million tons sold, generating realized coal revenue¹ of $384.3 million and an average realized coal revenue per ton sold¹ of $72.83 in the year-ago period. The improvement in realized coal revenue¹ was mainly driven by the increased sales tonnage during the quarter due to the availability of the fifth longwall this year, which provided increased productive capacity and additional flexibility, compared to the prior year period. Additionally, we negotiated partial buyouts of some coal volumes from customer coal contracts in exchange for payment of certain fees to us during the third quarter of 2023, which contributed $16.4 million to our miscellaneous other income versus being recognized as coal revenue had our customers not bought out these partial coal volumes.

On the marketing front, coal demand remained somewhat muted for the power generation markets during the third quarter but began to improve overall after a very weak second quarter. Domestically, Henry Hub natural gas spot prices and PJM West day-ahead power prices improved 20% and 13%, respectively, in the third quarter compared to 2Q23. Internationally, API2 spot prices averaged $118/metric ton during 3Q23, a 5% decline versus the second quarter of 2023. However, we continued to leverage the strong quality characteristics of our PAMC product and focused our sales efforts on stronger export market opportunities, particularly in the industrial and crossover metallurgical markets. Export sales in aggregate accounted for 60% of our total coal revenue during 3Q23 with 38% of total coal revenue coming from the export industrial market and 14% from export metallurgical sales. On a year-to-date basis, 71% of our total recurring revenues and other income¹ have been derived from sales into the export markets.

Furthermore, during 3Q23, we strengthened our forward contract book at the PAMC and secured an additional 5.4 million tons for delivery through 2025. We are near-fully contracted for the remainder of 2023 and have 21.5 million tons contracted for 2024 and 10.8 million tons contracted for 2025.

Operations Summary

During the third quarter of 2023, we produced 6.1 million tons at the Pennsylvania Mining Complex, compared to 5.3 million tons in the year-ago period where we had only four longwalls operating versus all five currently in operation.

CEIX's total revenue and other income during the third quarter of 2023 was $569.9 million, compared to $561.6 million in the third quarter of 2022, while CEIX's operating and other costs during the third quarter of 2023 were $276.3 million, compared to $229.7 million in the year-ago quarter. Total coal revenue for the PAMC segment during the third quarter of 2023 was $431.1 million, compared to $465.6 million in the year-ago quarter. After adjusting for the effect of settlements of commodity derivatives, PAMC total realized coal revenue¹ in 3Q23 was $431.1 million, compared to $384.3 million in 3Q22. Average cash cost of coal sold per ton¹ at the PAMC for the third quarter of 2023 was $38.36, compared to $39.77 in the year-ago quarter. The decrease was due to improved operational performance compared to the prior-year period.

CONSOL Marine Terminal Review

For the third quarter of 2023, throughput volume at the CMT was 4.3 million tons, compared to 2.7 million tons in the year-ago period. Terminal revenues and CMT total costs and expenses were $22.7 million and $11.7 million, respectively, compared to $14.8 million and $10.2 million, respectively, during the year-ago period. The Terminal is set to achieve a new annual throughput tonnage record this year; on a year-to-date basis, it has achieved a throughput volume of 14.2 million tons compared to 10.1 million tons during the same period last year. CMT operating cash costs¹ were $7.5 million in 3Q23, compared to $6.7 million in the prior-year period. CONSOL Marine Terminal net income and CONSOL Marine Terminal Adjusted EBITDA¹ were $12.1 million and $14.9 million, respectively, in the third quarter of 2023 compared to $5.6 million and $8.3 million, respectively, in the year-ago period. The improved financial performance was directly related to the significant increase in throughput volume compared to the prior-year quarter.

Itmann Update

The Itmann Mining Complex showed improved performance on a sequential basis during the third quarter of 2023, producing 91 thousand tons of coal, compared to 70 thousand tons in 2Q23. Additionally in the third quarter, the Complex sold 123 thousand tons of Itmann and third-party coal, and year-to-date, the Complex produced 225 thousand tons of coal and sold 357 thousand tons of Itmann and third-party coal in aggregate. During the third quarter, all three of the super sections were mining additional height for mains development and long term viability of the coal mine. This requires cutting some rock, which slows the mining rates to some extent. Although all three continuous miner super sections are installed underground, we are currently operating two of the three as true super sections as we continue to work toward fully staffing the mine. Once the mains development is complete, we will be able to operate the three super sections in specific blocks of the coal reserves at more efficient mining heights, which should improve our production rates and deliver reduced cost.

Shareholder Returns Update

With the free cash flow¹ generated during the third quarter of 2023, CEIX repurchased 833 thousand shares of its common stock during the quarter in the open market for $78.0 million at a weighted average price of $93.55 per share. Additionally, through a 10b5-1 plan in place for the month of October, CEIX repurchased an additional 143 thousand shares of its common stock for $15.0 million at a weighted average price of $104.94 per share. Therefore, with the free cash flow¹ generated during the third quarter of 2023, CEIX repurchased 976 thousand shares of its common stock for $93.0 million at a weighted average price of $95.22 per share. As a result, CEIX allocated approximately 77% of its quarterly free cash flow¹ toward share repurchases. On a year-to-date basis through October, CEIX has repurchased 4.1 million shares of its common stock for $68.97 or nearly 12% of its public float as of year-end 2022. Consistent with the Company's previously announced plan to return value to CEIX shareholders through repurchases of CEIX common stock rather than dividends, the Company is not declaring a quarterly dividend at this time.

Debt Repurchases Update

During the third quarter of 2023, we made repayments of $24.1 million and $5.8 million on our Second Lien Notes and equipment-financed and other debt, respectively. This brings our total debt repayments and repurchases in the quarter and year-to-date to $29.9 million and $182.9 million, respectively (excluding the premium paid on the Second Lien Notes). Our 3Q23 repayments fully retired our Second Lien Notes. As of September 30, 2023, CEIX had a net cash position, including short-term investments, of $50.1 million.

2023 Guidance and Outlook

Based on our current contracted position, estimated prices and production plans, we are providing the following financial and operating performance guidance for full fiscal year 2023:

• 2023 targeted PAMC coal sales volume of 25.5-26.5 million tons
• PAMC average realized coal revenue per ton sold² expectation of $76.00-$80.00
• PAMC average cash cost of coal sold per ton² expectation of $34.00-$36.00
• Itmann Mining Complex production volume of 300-400 thousand tons
• Capital expenditures: $160-$175 million

Third Quarter Earnings Conference Call

A conference call and webcast, during which management will discuss the third quarter 2023 financial and operational results, is scheduled for October 31, 2023 at 10:00 AM eastern time. Prepared remarks by members of management will be followed by a question and answer session. Interested parties may listen via webcast on the "Events and Presentations" page of our website, www.consolenergy.com. An archive of the webcast will be available for 30 days after the event.

Participant dial in (toll free) 1-877-226-2859
Participant international dial in 1-412-542-4134

Availability of Additional Information

Please refer to our website, www.consolenergy.com, for additional information regarding the company. In addition, we may provide other information about the company from time to time on our website.

We will also file our Form 10-Q with the Securities and Exchange Commission (SEC) reporting our results for the period ended September 30, 2023 on October 31, 2023. Investors seeking our detailed financial statements can refer to the Form 10-Q once it has been filed with the SEC.

Footnotes:

1 "Adjusted EBITDA", "Free Cash Flow", "CONSOL Marine Terminal Adjusted EBITDA", "CMT Operating Cash Costs", "Realized Coal Revenue", "Total Recurring Revenues and Other Income" and "Total Cash Cost of Coal Sold" are non-GAAP financial measures and "Average Realized Coal Revenue per Ton Sold", "Average Cash Cost of Coal Sold per Ton" and "Average Cash Margin per Ton Sold" are operating ratios derived from non-GAAP financial measures, each of which are reconciled to the most directly comparable GAAP financial measures below, under the caption "Reconciliation of Non-GAAP Financial Measures".

2 CEIX is unable to provide a reconciliation of Average Realized Coal Revenue per Ton Sold and Average Cash Cost of Coal Sold per Ton guidance, operating ratios derived from non-GAAP financial measures, due to the unknown effect, timing and potential significance of certain income statement items.

About CONSOL Energy Inc.

CONSOL Energy Inc. (NYSE: CEIX) is a Canonsburg, Pennsylvania-based producer and exporter of high-Btu bituminous thermal coal and metallurgical coal. It owns and operates some of the most productive longwall mining operations in the Northern Appalachian Basin. CONSOL's flagship operation is the Pennsylvania Mining Complex, which has the capacity to produce approximately 28.5 million tons of coal per year and is comprised of 3 large-scale underground mines: Bailey Mine, Enlow Fork Mine, and Harvey Mine. CONSOL recently developed the Itmann Mine in the Central Appalachian Basin, which has the capacity to produce roughly 900 thousand tons per annum of premium, low-vol metallurgical coking coal. The company also owns and operates the CONSOL Marine Terminal, which is located in the port of Baltimore and has a throughput capacity of approximately 20 million tons per year. In addition to the ~622 million reserve tons associated with the Pennsylvania Mining Complex and the ~29 million reserve tons associated with the Itmann Mining Complex, the company controls approximately 1.4 billion tons of greenfield thermal and metallurgical coal reserves and resources located in the major coal-producing basins of the eastern United States. Additional information regarding CONSOL Energy may be found at www.consolenergy.com.

Contacts:

Investor:
Nathan Tucker, (724) 416-8336
nathantucker@consolenergy.com

Media:
Erica Fisher, (724) 416-8292
ericafisher@consolenergy.com

Condensed Consolidated Statements of Cash Flows

The following table presents the condensed consolidated statements of cash flows for the three and nine months ended September 30, 2023 and 2022 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cash Flows from Operating Activities:	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Net Income	$         100,725		$         152,121 Werbung Mehr Nachrichten zur Consol Energy Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 13:12 - ARIVA.DE Redaktion Kursgewinne für die Aktie von Infineon (33,125 €) 07:34 - PR Newswire Oscillate Plc - Holding(s) in Company 04:56 - PR Newswire Norges Bank - Form 8.3 - Barratt Developments plc Saubere Energie    Milliardärsinvestoren sehen enorme Chancen in der alternativen Energie der nächsten Generation weiterlesen» Anzeige wo-site-teaser-box-16797_site-teaser-box_2024-04-30_07%253A00%253A00_2024-05-01_09%253A00%253A59