CANONSBURG, Pa., Nov. 5, 2020 /PRNewswire/ -- Today, CONSOL
Energy Inc. (NYSE: CEIX) reported financial and operating results
for the period ended September 30,
2020.
Third Quarter 2020 Highlights Include:
- Net Loss and Net Loss Attributable to CONSOL Energy Inc.
Shareholders of ($9.4) and
($7.2) million,
respectively;
- Net cash provided by operating activities of $15.7 million;
- Adjusted EBITDA1 of $68.3 million;
- Organic free cash flow net to CEIX shareholders1
and free cash flow1 of ($3.8) and $4.3
million, respectively;
- Executed multiple transactional opportunities to improve
financial flexibility;
- Resumed repurchases of 2nd lien debt;
- Coal sales volume rebound to 4.5 million tons compared to
2.3 million tons in 2Q20;
- Coal demand recovery expected to continue in 4Q20 and into
2021;
- No borrowings on revolving credit facility; and
- Operating protocols in place for COVID-19-related response,
focused on enhanced sanitization, social distancing measures and
mitigating the risk of spread.
Management Comments
"After an extremely challenging second quarter of 2020, we saw
steady improvement in the demand for our coal throughout the third
quarter of 2020," said Jimmy Brock,
President and Chief Executive Officer of CONSOL Energy Inc. "Our
sales volumes at the Pennsylvania Mining Complex were nearly double
those of the second quarter, and we expect to see further
improvements in the fourth quarter of 2020 and into next year. Our
domestic customers were able to reduce their inventories, as hot
summer weather and higher natural gas prices led to an increase in
domestic coal burn. We have also seen a steady pickup in
contracting activity since the second quarter and are focused on
filling out the remainder of our sales book for 2021. In the
meantime, we have successfully completed several transactions
related to our non-operating surface and mineral assets to enhance
our liquidity and improve our financial flexibility. We continue to
prioritize limiting any discretionary spending and ensuring that
our operations are optimized to take advantage of the continued
improvement in the coal markets."
"On the safety front, our Enlow Fork Mine, Bailey Preparation
Plant, CONSOL Marine Terminal (CMT) and Itmann project each had
ZERO recordable incidents during the third quarter of 2020. Our
total recordable incident rate at the PAMC for the third quarter of
2020 improved significantly by 60%, compared to the third quarter
of 2019."
Pennsylvania Mining Complex (PAMC) Review and Outlook
PAMC Sales and Marketing
Our marketing team sold 4.5 million tons of coal during the
third quarter of 2020 at an average revenue per ton sold of
$40.55, compared to 6.5 million tons
at an average revenue per ton sold of $46.59 in the year-ago period. The decline in
sales tons for the quarter was the result of lingering effects of
the unprecedented contraction in U.S. and global economic activity
due to the COVID-19 pandemic. On a positive note, demand steadily
improved throughout the third quarter relative to the second
quarter of 2020, and we ran four of our five longwalls for the
majority of the third quarter. Shipments to domestic customers
rebounded from the low point in the second quarter resulting in a
significant reduction in contract buyouts and deferrals in the
third quarter compared to the second quarter.
On the domestic front, the U.S. Energy Information
Administration (EIA) expects U.S. coal production of 525 million
tons in 2020, a 26% reduction versus 2019 levels. However, due to
the expectation of higher natural gas prices next year, resulting
from reduced E&P activity, the EIA estimates that coal
production will rebound to 625 million tons in 2021, a 19%
improvement versus 2020. The number of active U.S. gas rigs
continues to trend downward. IHS Markit reports that active U.S.
gas rigs stood at 74 as of October
2nd, a reduction of 70 rigs versus the same time period in
2019. We believe these factors will continue to improve coal's
competitiveness as we close out 2020 and head into 2021.
During the quarter, we were successful in securing additional
coal sales contracts for 2021, bringing our contracted
position to 13.2 million. We are currently in the middle
of domestic RFP season, and we expect to secure meaningful volumes
in the coming months. We remain fully contracted for 2020 and
expect to ship all that we produce in the fourth quarter. However,
given the nature of our contracts and the timing of deliveries, we
could see some 2020 contracted volumes deferred. We will continue
to collaborate with our customers to manage our respective
contractual obligations.
On the international front, while seaborne thermal coal markets
have been slower to recover than the domestic market due to reduced
global LNG prices and the continued impacts of the COVID-19
pandemic, we have begun to see some positive trends there as well.
Although API2 prompt month prices declined 12.4% in the third
quarter of 2020 compared to the year-ago period, API2 prices
increased nearly 50% as of early-October 2020 compared to the
year-to-date trough marked in late-May
2020. These European coal prices are at their highest level
since October 2019. Due to supply
constraints, we have seen Petcoke prices from the U.S. Gulf
increase by over 30% during the quarter, which is pushing buyers,
specifically at cement plants across the globe, to look at
alternative fuels. Additionally, LNG prices into Japan/Korea are currently at an 11-month high
as of mid-October 2020. We are also
starting to see a pickup in activity in India, as its economy begins to recover
COVID-19-related shutdowns.
Operations Summary
During the third quarter of 2020, we ran four of our five
longwalls for the majority of the quarter after ramping up an
additional longwall in early August, driven by increased demand for
our coal resulting from hot summer weather, higher natural gas
prices and economies reopening. As a result, our production in the
third quarter of 2020 was nearly double the output of the second
quarter of 2020 with the PAMC producing 4.5 million tons,
compared to 6.5 million tons in the third quarter of 2019.
The Company's total costs during the third quarter of 2020 were
$246.7 million compared to
$323.9 million in the year-ago
quarter. The decline in overall costs was driven by the reduction
in production volume and reduced operating days, as we sought to
match production with demand and limit any unnecessary spending.
Average cash cost of coal sold per ton1 was $28.64 compared to $32.78 in the year-ago quarter. The improvement
was primarily driven by lower mine maintenance and supply costs,
contractors and purchased services costs and project expense,
offset by a higher-than-typical number of longwall moves in
the third quarter of 2020.
|
|
|
Three Months
Ended
|
|
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
|
|
|
|
|
|
|
|
Coal
Production
|
million
tons
|
|
4.5
|
|
|
6.5
|
|
Coal Sales
|
million
tons
|
|
4.5
|
|
|
6.5
|
|
Average Revenue per
Ton Sold
|
per ton
|
|
$ 40.55
|
|
|
$ 46.59
|
|
Average Cash Cost of
Coal Sold per Ton1
|
per ton
|
|
$ 28.64
|
|
|
$ 32.78
|
|
Average Cash Margin
per Ton Sold1
|
per ton
|
|
$ 11.91
|
|
|
$ 13.81
|
|
CONSOL Marine Terminal (CMT) Review
For the third quarter of 2020, throughput volumes out of the
CONSOL Marine Terminal were 2.0 million tons, compared to 2.4
million tons in the year-ago period. Although throughput volumes
were lower compared to the year-ago quarter, the impact on terminal
revenues was muted as a result of the take-or-pay contract in place
with our largest customer at CMT. For the third quarter of 2020,
terminal revenues were $17.0 million,
compared to $16.3 million in the
year-ago period. Our CMT employees continued to successfully reduce
cash spending in the third quarter of 2020, as cash operating costs
were $4.8 million, compared to
$6.3 million in the year-ago period.
Accordingly, CMT net income and CMT adjusted EBITDA1 were
$8.4 million and $11.3 million, respectively, compared to
$7.7 million and $9.9 million, respectively, during the year-ago
period.
Debt Repurchases and Liquidity Update
During the third quarter of 2020, CEIX made mandatory repayments
of $7.0 million, $6.3 million and $0.7
million on our finance leases and asset-backed financing
arrangements, Term Loan A and Term Loan B, respectively. Given the
improving shipment trends and execution of certain transactional
opportunities, management resumed its open market 2nd lien
buyback program towards the end of September. Accordingly, CEIX
spent $0.9 million to retire
$2.0 million of its 2nd lien
notes, as these continued to trade at a significant discount to
par. This brings our total debt payments in the quarter to
$15.9 million. In aggregate, as of
September 30, 2020, our total
liquidity was approximately $323
million, including $22 million
of cash and cash equivalents, and our $400
million revolving credit facility had no borrowings and is
currently only used for providing letters of credit with
$99 million issued.
Transactional Opportunities
Since the beginning of the third quarter of 2020, CEIX has
executed multiple transactions totaling $60-$70 million in
miscellaneous income and gain on sales of assets. These
transactions included sales of land and mineral assets, gas wells,
and coal reserves outside of our active operations. In aggregate,
in the third quarter of 2020, we have recorded $26 million in miscellaneous income and gain on
sales of assets related to these items, and we expect to book an
additional $34-$44 million in
the fourth quarter of 2020.
2020 Guidance
Given the ongoing uncertainty associated with the COVID-19
pandemic-driven economic slowdown, we are working with our
customers to manage their shipments and inventory levels. However,
due to the difficulty in forecasting the duration of this economic
slowdown, our 2020 guidance remains suspended. Nonetheless, our
team remains ready for and is looking forward to eventual demand
recovery.
Third Quarter Earnings Conference Call
A joint conference call and webcast with CONSOL Coal Resources
LP, during which management will discuss the third quarter 2020
financial and operational results, is scheduled for November 5, 2020 at 11:00 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) 1-888-348-6419
Participant international dial
in 1-412-902-4235
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 quarter ended
September 30, 2020 on
November 5, 2020. 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", "Organic Free Cash Flow Net to CEIX
Shareholders", "Free Cash Flow" and "CMT Adjusted EBITDA" are
non-GAAP financial measures and "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".
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 and is
developing a new metallurgical coal mine (the Itmann project) in
the Central 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, Enlow Fork, and Harvey.
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 15 million tons per year. In addition to the ~669
million reserve tons associated with the Pennsylvania Mining
Complex and the ~21 million reserve tons associated with the Itmann
project, the company also controls approximately 1.5 billion tons
of greenfield thermal and metallurgical coal reserves 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:
Zach Smith, (724) 416-8291
zacherysmith@consolenergy.com
Condensed Consolidated Statements of Cash Flows
The following table presents the condensed consolidated
statements of cash flows for the three months ended September 30, 2020 and 2019 (in thousands):
|
|
Three Months Ended
September 30,
|
|
|
|
2020
|
|
|
2019
|
|
Cash Flows from
Operating Activities:
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Net (Loss)
Income
|
|
$
|
(9,360)
|
|
|
$
|
7,024
|
|
Adjustments to
Reconcile Net (Loss) Income to Net Cash Provided by Operating
Activities:
|
|
|
|
|
|
|
|
|
Depreciation,
Depletion and Amortization
|
|
|
54,959
|
|
|
|
54,370
|
|
Other Non-Cash
Adjustments to Net Income
|
|
|
1,842
|
|
|
|
3,912
|
|
Changes in Working
Capital
|
|
|
(31,733)
|
|
|
|
(7,924)
|
|
Net Cash Provided
by Operating Activities
|
|
|
15,708
|
|
|
|
57,382
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
(19,508)
|
|
|
|
(48,521)
|
|
Proceeds from Sales of
Assets
|
|
|
8,090
|
|
|
|
715
|
|
Other Investing
Activity
|
|
|
(229)
|
|
|
|
—
|
|
Net Cash Used in
Investing Activities
|
|
|
(11,647)
|
|
|
|
(47,806)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Net Payments on
Long-Term Debt, Including Fees
|
|
|
(14,804)
|
|
|
|
(21,520)
|
|
Repurchases of Common
Stock
|
|
|
—
|
|
|
|
(21,768)
|
|
Distributions to
Noncontrolling Interest
|
|
|
—
|
|
|
|
(5,555)
|
|
Other Financing
Activities
|
|
|
—
|
|
|
|
(252)
|
|
Net Cash Used in
Financing Activities
|
|
|
(14,804)
|
|
|
|
(49,095)
|
|
Net Decrease in
Cash and Cash Equivalents and Restricted Cash
|
|
|
(10,743)
|
|
|
|
(39,519)
|
|
Cash and Cash
Equivalents and Restricted Cash at Beginning of Period
|
|
|
33,027
|
|
|
|
174,368
|
|
Cash and Cash
Equivalents and Restricted Cash at End of Period
|
|
$
|
22,284
|
|
|
$
|
134,849
|
|
Reconciliation of Non-GAAP Financial Measures
We evaluate our cost of coal sold and cash cost of coal sold on
an aggregate basis. We define cost of coal sold as operating and
other production costs related to produced tons sold, along with
changes in coal inventory, both in volumes and carrying values. The
cost of coal sold includes items such as direct operating costs,
royalty and production taxes, direct administration costs, and
depreciation, depletion and amortization costs on production
assets. Our costs exclude any indirect costs, such as selling,
general and administrative costs, freight expenses, interest
expenses, depreciation, depletion and amortization costs on
non-production assets and other costs not directly attributable to
the production of coal. The cash cost of coal sold includes cost of
coal sold less depreciation, depletion and amortization costs on
production assets. The GAAP measure most directly comparable to
cost of coal sold and cash cost of coal sold is total costs and
expenses.
The following table presents a reconciliation of cost of coal
sold and cash cost of coal sold to total costs and expenses, the
most directly comparable GAAP financial measure, on a historical
basis, for each of the periods indicated (in thousands).
|
|
Three Months Ended
September 30,
|
|
|
|
2020
|
|
|
2019
|
|
Total Costs and
Expenses
|
|
$
|
246,661
|
|
|
$
|
323,907
|
|
Freight
Expense
|
|
|
(12,909)
|
|
|
|
(3,599)
|
|
Selling, General and
Administrative Costs
|
|
|
(11,117)
|
|
|
|
(14,690)
|
|
Loss on Debt
Extinguishment
|
|
|
1,078
|
|
|
|
(801)
|
|
Interest Expense,
net
|
|
|
(15,723)
|
|
|
|
(15,598)
|
|
Other Costs
(Non-Production)
|
|
|
(22,994)
|
|
|
|
(22,786)
|
|
Depreciation,
Depletion and Amortization (Non-Production)
|
|
|
(9,327)
|
|
|
|
(12,105)
|
|
Cost of Coal
Sold
|
|
$
|
175,669
|
|
|
$
|
254,328
|
|
Depreciation,
Depletion and Amortization (Production)
|
|
|
(45,632)
|
|
|
|
(42,265)
|
|
Cash Cost of Coal
Sold
|
|
$
|
130,037
|
|
|
$
|
212,063
|
|
We define average margin per ton sold as average revenue per ton
sold, net of average cost of coal sold per ton. We define average
cash margin per ton sold as average revenue per ton sold, net of
average cash cost of coal sold per ton. The GAAP measure most
directly comparable to average margin per ton sold and average cash
margin per ton sold is total coal revenue.
The following table presents a reconciliation of average margin
per ton sold and average cash margin per ton sold to total coal
revenue, the most directly comparable GAAP financial measure, on a
historical basis, for each of the periods indicated (in thousands,
except per ton information).
|
|
Three Months Ended
September 30,
|
|
|
|
2020
|
|
|
2019
|
|
Total Coal Revenue
(PAMC Segment)
|
|
$
|
184,066
|
|
|
$
|
301,542
|
|
Operating and Other
Costs
|
|
|
153,031
|
|
|
|
234,849
|
|
Less: Other Costs
(Non-Production)
|
|
|
(22,994)
|
|
|
|
(22,786)
|
|
Total Cash Cost of
Coal Sold
|
|
|
130,037
|
|
|
|
212,063
|
|
Add: Depreciation,
Depletion and Amortization
|
|
|
54,959
|
|
|
|
54,370
|
|
Less: Depreciation,
Depletion and Amortization (Non-Production)
|
|
|
(9,327)
|
|
|
|
(12,105)
|
|
Total Cost of Coal
Sold
|
|
$
|
175,669
|
|
|
$
|
254,328
|
|
Total Tons Sold (in
millions)
|
|
|
4.5
|
|
|
|
6.5
|
|
Average Revenue per
Ton Sold
|
|
$
|
40.55
|
|
|
$
|
46.59
|
|
Average Cash Cost of
Coal Sold per Ton
|
|
|
28.64
|
|
|
|
32.78
|
|
Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
|
10.06
|
|
|
|
6.51
|
|
Average Cost of Coal
Sold per Ton
|
|
|
38.70
|
|
|
|
39.29
|
|
Average Margin per
Ton Sold
|
|
|
1.85
|
|
|
|
7.30
|
|
Add: Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
|
10.06
|
|
|
|
6.51
|
|
Average Cash
Margin per Ton Sold
|
|
$
|
11.91
|
|
|
$
|
13.81
|
|
We define adjusted EBITDA as (i) net income (loss) plus income
taxes, net interest expense and depreciation, depletion and
amortization, as adjusted for (ii) certain non-cash items, such as
long-term incentive awards. The GAAP measure most directly
comparable to adjusted EBITDA is net income (loss).
The following tables present a reconciliation of net income
(loss) to adjusted EBITDA, the most directly comparable GAAP
financial measure, on a historical basis, for each of the periods
indicated.
|
|
Three Months Ended
September 30, 2020
|
|
|
|
PAMC
Division
|
|
|
Other
Division
|
|
|
|
|
|
Dollars in
thousands
|
|
PA Mining
Complex
|
|
|
Baltimore
Terminal
(CMT)
|
|
|
Other
|
|
|
Total
Company
|
|
Net (Loss)
Income
|
|
$
|
(6,930)
|
|
|
$
|
8,411
|
|
|
$
|
(10,841)
|
|
|
$
|
(9,360)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
5,918
|
|
|
|
5,918
|
|
Add: Interest
Expense, net
|
|
|
367
|
|
|
|
1,541
|
|
|
|
13,815
|
|
|
|
15,723
|
|
Less: Interest
Income
|
|
|
—
|
|
|
|
—
|
|
|
|
(76)
|
|
|
|
(76)
|
|
(Loss) Earnings
Before Interest & Taxes (EBIT)
|
|
|
(6,563)
|
|
|
|
9,952
|
|
|
|
8,816
|
|
|
|
12,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
49,944
|
|
|
|
1,283
|
|
|
|
3,732
|
|
|
|
54,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Interest, Taxes and DD&A (EBITDA)
|
|
$
|
43,381
|
|
|
$
|
11,235
|
|
|
$
|
12,548
|
|
|
$
|
67,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock/Unit-Based
Compensation
|
|
$
|
1,891
|
|
|
$
|
107
|
|
|
$
|
214
|
|
|
$
|
2,212
|
|
Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,078)
|
|
|
|
(1,078)
|
|
Total Pre-tax
Adjustments
|
|
|
1,891
|
|
|
|
107
|
|
|
|
(864)
|
|
|
|
1,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
45,272
|
|
|
$
|
11,342
|
|
|
$
|
11,684
|
|
|
$
|
68,298
|
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
|
|
PAMC
Division
|
|
|
Other
Division
|
|
|
|
|
|
Dollars in
thousands
|
|
PA Mining
Complex
|
|
|
Baltimore
Terminal
(CMT)
|
|
|
Other
|
|
|
Total
Company
|
|
Net Income
(Loss)
|
|
$
|
30,545
|
|
|
$
|
7,706
|
|
|
$
|
(31,227)
|
|
|
$
|
7,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
2,415
|
|
|
|
2,415
|
|
Add: Interest
Expense, net
|
|
|
—
|
|
|
|
1,513
|
|
|
|
14,085
|
|
|
|
15,598
|
|
Less: Interest
Income
|
|
|
—
|
|
|
|
—
|
|
|
|
(755)
|
|
|
|
(755)
|
|
Earnings (Loss)
Before Interest & Taxes (EBIT)
|
|
|
30,545
|
|
|
|
9,219
|
|
|
|
(15,482)
|
|
|
|
24,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
45,829
|
|
|
|
539
|
|
|
|
8,002
|
|
|
|
54,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
Before Interest, Taxes and DD&A (EBITDA)
|
|
$
|
76,374
|
|
|
$
|
9,758
|
|
|
$
|
(7,480)
|
|
|
$
|
78,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock/Unit-Based
Compensation
|
|
$
|
2,712
|
|
|
$
|
131
|
|
|
$
|
131
|
|
|
$
|
2,974
|
|
Loss on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
801
|
|
|
|
801
|
|
Total Pre-tax
Adjustments
|
|
|
2,712
|
|
|
|
131
|
|
|
|
932
|
|
|
|
3,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
79,086
|
|
|
$
|
9,889
|
|
|
$
|
(6,548)
|
|
|
$
|
82,427
|
|
We define net leverage ratio as the ratio of net debt to the
last twelve months' ("LTM") earnings before interest expense and
depreciation, depletion and amortization, adjusted for certain
non-cash items, such as long-term incentive awards, amortization of
debt issuance costs and capitalized interest.
The following table presents a reconciliation of net leverage
ratio (in thousands).
|
|
Twelve Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
Net (Loss)
Income
|
|
$
|
(10,547)
|
|
|
$
|
122,191
|
|
Plus:
|
|
|
|
|
|
|
|
|
Interest Expense,
net
|
|
|
62,340
|
|
|
|
70,677
|
|
Depreciation,
Depletion and Amortization
|
|
|
211,909
|
|
|
|
196,835
|
|
Income
Taxes
|
|
|
4,925
|
|
|
|
58
|
|
Stock/Unit-Based
Compensation
|
|
|
8,873
|
|
|
|
15,946
|
|
(Gain) Loss on Debt
Extinguishment
|
|
|
(18,900)
|
|
|
|
26,217
|
|
CCR Adjusted EBITDA
per Credit Agreement
|
|
|
(55,400)
|
|
|
|
(108,502)
|
|
Cash Distributions
from CONSOL Coal Resources LP
|
|
|
—
|
|
|
|
35,383
|
|
Cash Payments for
Legacy Employee Liabilities, Net of Non-Cash Expense
|
|
|
(17,442)
|
|
|
|
(20,393)
|
|
Other Adjustments to
Net Income
|
|
|
6,576
|
|
|
|
5,989
|
|
Consolidated EBITDA
per Credit Agreement
|
|
$
|
192,334
|
|
|
$
|
344,401
|
|
|
|
|
|
|
|
|
|
|
Consolidated First
Lien Debt
|
|
$
|
392,218
|
|
|
$
|
394,947
|
|
Senior Secured Second
Lien Notes
|
|
|
176,452
|
|
|
|
239,228
|
|
MEDCO Revenue
Bonds
|
|
|
102,865
|
|
|
|
102,865
|
|
Advance Royalty
Commitments
|
|
|
1,895
|
|
|
|
2,261
|
|
Consolidated
Indebtedness per Credit Agreement
|
|
|
673,430
|
|
|
|
739,301
|
|
Less:
|
|
|
|
|
|
|
|
|
Advance Royalty
Commitments
|
|
|
1,895
|
|
|
|
2,261
|
|
Cash on
Hand
|
|
|
21,659
|
|
|
|
122,720
|
|
Consolidated Net
Indebtedness per Credit Agreement
|
|
$
|
649,876
|
|
|
$
|
614,320
|
|
|
|
|
|
|
|
|
|
|
Net Leverage Ratio
(Net Indebtedness/EBITDA)
|
|
|
3.4
|
|
|
|
1.8
|
|
Free cash flow, organic free cash flow and organic free cash
flow net to CEIX shareholders are non-GAAP financial measures.
Management believes that these measures are meaningful to investors
because management reviews cash flows generated from operations and
non-core asset sales after taking into consideration capital
expenditures due to the fact that these expenditures are considered
necessary to maintain and expand CONSOL's asset base and are
expected to generate future cash flows from operations. It is
important to note that free cash flow, organic free cash flow and
organic free cash flow net to CEIX shareholders do not represent
the residual cash flow available for discretionary expenditures
since other non-discretionary expenditures, such as mandatory debt
service requirements, are not deducted from the measure. The
following tables present a reconciliation of free cash flow,
organic free cash flow and organic free cash flow net to CEIX
shareholders to net cash provided by operations, the most directly
comparable GAAP financial measure, on a historical basis, for each
of the periods indicated.
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
Organic Free Cash
Flow
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
Net Cash Provided
by Operations
|
|
$
|
15,708
|
|
|
$
|
57,382
|
|
|
$
|
62,388
|
|
|
$
|
223,183
|
|
Capital
Expenditures
|
|
|
(19,508)
|
|
|
|
(48,521)
|
|
|
|
(65,955)
|
|
|
|
(131,475)
|
|
Organic Free Cash
Flow
|
|
$
|
(3,800)
|
|
|
$
|
8,861
|
|
|
$
|
(3,567)
|
|
|
$
|
91,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to
Noncontrolling Interest
|
|
|
—
|
|
|
|
(5,555)
|
|
|
|
(5,575)
|
|
|
|
(16,674)
|
|
Organic Free Cash
Flow Net to CEIX Shareholders
|
|
$
|
(3,800)
|
|
|
$
|
3,306
|
|
|
$
|
(9,142)
|
|
|
$
|
75,034
|
|
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
Net Cash Provided
by Operations
|
|
|
|
|
|
|
|
|
|
$
|
15,708
|
|
|
$
|
57,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
|
|
|
|
|
|
|
|
(19,508)
|
|
|
|
(48,521)
|
|
Proceeds from Sales
of Assets
|
|
|
|
|
|
|
|
|
|
|
8,090
|
|
|
|
715
|
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
$
|
4,290
|
|
|
$
|
9,576
|
|
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the federal securities laws. With
the exception of historical matters, the matters discussed in this
press release are forward-looking statements (as defined in Section
21E of the Securities Exchange Act of 1934, as amended) that
involve risks and uncertainties that could cause actual results to
differ materially from results projected in or implied by such
forward-looking statements. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. The forward-looking statements may include
projections and estimates concerning the timing and success of
specific projects and our future production, revenues, income and
capital spending. When we use the words "anticipate," "believe,"
"could," "continue," "estimate," "expect," "intend," "may," "plan,"
"predict," "project," "should," "will," or their negatives, or
other similar expressions, the statements which include those words
are usually forward-looking statements. When we describe strategy
that involves risks or uncertainties, we are making forward-looking
statements. We have based these forward-looking statements on our
current expectations and assumptions about future events. While our
management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. Specific risks, contingencies and
uncertainties are discussed in more detail in our filings with the
Securities and Exchange Commission. The forward-looking statements
in this press release speak only as of the date of this press
release and CEIX disclaims any intention or obligation to update
publicly any forward-looking statements, whether in response to new
information, future events, or otherwise, except as required by
applicable law.
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SOURCE CONSOL Energy Inc.