CANONSBURG, Pa., Feb. 8, 2022 /PRNewswire/ -- Today, CONSOL Energy
Inc. (NYSE: CEIX) reported financial and operating results for the
fourth quarter and fiscal year ended December 31, 2021.
Fourth Quarter 2021 Highlights Include:
- GAAP net income of $117.3
million, $30.7
million1 excluding unrealized mark-to-market gain
related to commodity derivatives;
- Quarterly adjusted EBITDA1 of $120.6 million;
- Our Itmann low-vol metallurgical coal project remains on
track with start-up expected in 2H2022;
- Net cash provided by operating activities of $52.4 million;
- Quarterly free cash flow1 of $24.5 million, despite a working capital increase
of $38.2 million;
- Coal shipments of 5.6 million tons, despite ongoing
transportation delays;
- Near fully-contracted for 2022 and 11.4 million tons
contracted for 2023;
- Cash and cash equivalents of $149.9
million plus $48.3 million in
restricted cash as of December 31,
2021;
- Reduced total debt outstanding by $30.8 million during 4Q21; and
- Net leverage ratio1 of 1.49x as of December 31, 2021.
Full Year 2021 Highlights Include:
- GAAP net income of $34.1
million, $73.3
million1 excluding unrealized mark-to-market loss
related to commodity derivatives;
- Adjusted EBITDA1 of $378.2
million;
- Net cash provided by operating activities of $305.6 million;
- Free cash flow1 of $186.4
million;
- Record Pennsylvania Mining Complex (PAMC) export tons of
11.0 million tons;
- Coal shipments of 23.7 million tons, of which 37% were used
in non-power generation applications;
- Payments on total consolidated indebtedness of $101.2 million – reduced Term Loan A, Term Loan
B, 2nd lien notes and equipment-financed debt outstanding by
$25.0 million, $30.9 million, $17.1
million and $28.2 million,
respectively; and
- Issued $75.0 million in
tax-exempt bonds, of which $46.1
million is available in escrow as restricted cash.
Management Comments
"In the fourth quarter of 2021, CEIX delivered a strong
operational and financial performance following challenging
geological issues in the third quarter, which continued into
October. With these issues now behind us, we have normalized our
operations and finished the year with 23.9 million tons of
production. Continued transportation delays limited our upside
potential in the fourth quarter and ultimately our full-year
production tonnage. Nonetheless, on total costs and expenses of
$1,224 million, we ended 2021
with an average cash cost of coal sold per ton1 of
just above $28 at the PAMC despite
ongoing inflationary pressures, generated $186 million in free cash
flow1 and added approximately $100 million of unrestricted cash and cash
equivalents to our balance sheet. Furthermore, we continued to
execute our debt reduction strategy and made payments of more than
$100 million toward our legacy debt
outstanding, while additionally raising $75
million in tax-exempt bonds, which will fund future
expenditures on our refuse disposal areas at the PAMC. Looking
ahead, we are near fully-contracted for calendar year 2022 and
have successfully layered in additional contract tons for 2023 and
beyond. We recently entered into long-term coal supply
contracts in the export market with multiple buyers for
approximately 7 million tons to be delivered through 2024,
primarily in the industrial market. Finally, construction of the
Itmann preparation plant remains on schedule and on budget, which
should add upside to the second half of 2022 when the plant starts
up."
"On the safety front, our Bailey Preparation Plant and CONSOL
Marine Terminal (CMT) each had ZERO employee recordable incidents
during the full-year of 2021. Our full-year total recordable
incident rate at the PAMC continues to track significantly and
consistently below the national average for underground bituminous
coal mines, finishing the year approximately 54% below the national
year-to-date average (based on the latest available MSHA
data)."
Pennsylvania Mining Complex Review and Outlook
PAMC Sales and Marketing
Our sales team sold 5.6 million tons of coal during the fourth
quarter of 2021 at an average revenue per ton of $51.27, compared to 5.9 million tons at an
average revenue per ton of $39.05 in
the year-ago period. The significant improvement in the average
revenue per ton was due to vast improvements in the coal, natural
gas, and electric power markets compared to the prior-year
quarter.
In the domestic market, the commodity markets continued to
significantly improve during the fourth quarter of 2021 compared to
the prior-year period. The average Henry Hub natural gas spot price
and average PJM West day-ahead power price ended 4Q21 improved by
88% and 136%, respectively, compared to the year-ago quarter.
Consistent with these improved market conditions, the U.S. Energy
Information Administration (EIA) reports that domestic coal
consumption was approximately 546 million tons in 2021, a 14%
increase from 2020. Furthermore, the EIA estimates that domestic
coal consumption will remain largely unchanged for 2022 and 2023 at
approximately 533 million tons annually. However, despite sustained
coal demand, supply is expected to remain tight. According to IHS
Markit, total U.S. coal production is expected to increase to
596 million tons, a 3% increase in 2022 versus 2021, before
dropping by 55 million tons to 541 million tons in 2023.
Furthermore, the EIA reports that November coal inventory levels at
domestic power plants stood at approximately 92 million tons,
down by nearly 32% compared to year-ago levels. The majority of our
domestic customer stockpiles are below target levels for this time
of year, and as such, domestic customer demand has remained robust.
We have continued to secure additional coal sales contracts, and,
as such, we are near fully-contracted for 2022 and have
11.4 million tons contracted for 2023.
On the export front, seaborne thermal coal markets were
unusually volatile in the fourth quarter of 2021, with API2
prompt-month prices starting the quarter above $230/ton before falling to $118/ton by quarter-end. However, average API2
prompt-month prices were still improved compared to the
prior-year period, with 4Q21 prices improved by 172% compared
to 4Q20. Global LNG prices have continued to remain elevated with
the Asian spot market benchmark price (JKM) averaging 371% higher
in 4Q21 compared to the fourth quarter of 2020. Despite the ongoing
strength in the international coal markets, IHS Markit estimates
that U.S. thermal coal producers will reduce tons sold into
the export market in 2022, expecting that these tons will remain in
the domestic market. As such, it estimates that U.S. thermal coal
exports will decline by approximately 9% in 2022, as domestic coal
stockpiles increase by 11% in the year versus 2021. This dynamic
should help to keep the international market tight in 2022.
Operations Summary
During the fourth quarter of 2021, we ran our four operational
longwalls at the PAMC at a more normalized run-rate starting in
November after encountering operational and geological issues
during 3Q21 and early-4Q21. While these issues are now behind us,
we encountered consistent transportation delays, largely due to
COVID-related labor issues, that limited our shipments and
production in the fourth quarter and ultimately prevented us from
hitting our 24.0-million-ton mid-point guidance target for
full-year 2021. The PAMC produced 5.6 million tons in 4Q21,
compared to 5.9 million tons in the year-ago quarter. This brought
total PAMC production to 23.9 million tons in 2021.
CEIX's total costs and expenses during the fourth quarter of
2021 were $318.0 million
compared to $306.0 million in the
year-ago quarter, and CEIX's total coal revenue during the fourth
quarter was $288.1 million
compared to $230.5 million in
the year-ago period. The significant improvement in coal revenue,
despite lower production volume compared to the prior-year quarter,
was the result of a $12.22
improvement in average revenue per ton sold as demand for our
product has continued to strengthen throughout the year.
Additionally, total revenue in 4Q21 benefited from a $115.5 million pre-tax unrealized mark-to-market
gain related to commodity derivatives, which reversed much of the
large unrealized loss that was recorded in 3Q21. Average cash cost
of coal sold per ton1 for the fourth quarter was
$30.81, compared to $27.49 in the year-ago quarter. The increase was
primarily due to the ongoing development work associated with
creating additional optionality for increasing production and
inflationary pressures that weighed on labor, maintenance, supply
and contractor expenses. For 2021, CEIX's total costs and expenses
were $1,223.5 million, compared to
$1,030.9 million in the prior year
due to additional operating and other costs resulting from a
significant increase in production in 2021 versus 2020. Our
full-year 2021 average cash cost of coal sold per ton1
came in at $28.25, compared to $29.12 for full-year 2020 as we gained economies
of scale due to increased production and reduced idling costs.
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
|
December
31, 2021
|
|
|
December
31, 2020
|
|
|
December
31, 2021
|
|
|
December
31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue and Other
Income
|
thousands
|
|
$
|
480,625
|
|
|
$
|
324,607
|
|
|
$
|
1,258,947
|
|
|
$
|
1,021,643
|
|
Total Costs and
Expenses
|
thousands
|
|
$
|
318,039
|
|
|
$
|
306,044
|
|
|
$
|
1,223,540
|
|
|
$
|
1,030,885
|
|
Total Coal
Revenue
|
thousands
|
|
$
|
288,095
|
|
|
$
|
230,522
|
|
|
$
|
1,092,022
|
|
|
$
|
772,662
|
|
Total Cash Cost of Coal
Sold1
|
thousands
|
|
$
|
171,280
|
|
|
$
|
161,852
|
|
|
$
|
668,812
|
|
|
$
|
542,856
|
|
Coal
Production
|
million tons
|
|
|
5.6
|
|
|
|
5.9
|
|
|
|
23.9
|
|
|
|
18.8
|
|
Coal Sales
|
million tons
|
|
|
5.6
|
|
|
|
5.9
|
|
|
|
23.7
|
|
|
|
18.7
|
|
Average Revenue per
Ton
|
per ton
|
|
$
|
51.27
|
|
|
$
|
39.05
|
|
|
$
|
45.75
|
|
|
$
|
41.31
|
|
Average Cash Cost of
Coal Sold1
|
per ton
|
|
$
|
30.81
|
|
|
$
|
27.49
|
|
|
$
|
28.25
|
|
|
$
|
29.12
|
|
Average Cash Margin per
Ton Sold1
|
per ton
|
|
$
|
20.46
|
|
|
$
|
11.56
|
|
|
$
|
17.50
|
|
|
$
|
12.19
|
|
CONSOL Marine Terminal Review
For the fourth quarter of 2021, throughput volumes at the CMT
were 3.1 million tons, compared to 3.1 million tons in the year-ago
period. Terminal revenues and CMT total costs and expenses were
$15.5 million and $7.4 million, respectively, compared to
$17.4 million and $9.2 million, respectively, during the year-ago
period. Revenue was impaired in 4Q21 compared to 4Q20 due to the
take-or-pay contract that was in place in the prior-year period,
and CMT operating cash costs1 were $5.4
million in 4Q21, compared to $4.6
million in 4Q20. The increase in CMT operating cash costs
was driven by higher labor and supply expense versus 4Q20. CONSOL
Marine Terminal net income and CONSOL Marine Terminal Adjusted
EBITDA1 were $10.4
million and $13.2 million,
respectively, in the fourth quarter of 2021 compared to
$8.9 million and $11.8 million, respectively, in the year-ago
period. For the full year of 2021, CONSOL Marine Terminal net
income and CONSOL Marine Terminal Adjusted
EBITDA1 were $32.3
million and $43.5 million,
respectively, compared to $32.5
million and $44.4 million,
respectively, in the year-ago period.
Itmann Update
Our Itmann project continued to progress according to
expectations during the fourth quarter of 2021, and the project
remains on track for preparation plant start-up and scale-up to
full run-rate production during the second half of 2022. Relocation
of the existing prep plant to the Itmann site is proceeding on
schedule, with disassembly of the existing plant largely complete,
and construction of foundations and structural steel erection
underway at the Itmann plant site. The mine produced and sold
approximately 100,000 tons of low-vol metallurgical coal (on a
clean coal equivalent basis) during calendar year 2021, and due to
the strength in the metallurgical coal markets, our Itmann project
generated positive operating cash flow in the year. Additionally,
we have succeeded in growing staffing levels consistent with our
production ramp-up plan for 2022. Our sales team has initiated
efforts to market the Itmann product to domestic and international
customers in anticipation of completion of the prep plant. We
continue to anticipate the prep plant to be commissioned in 2H22
and within the previously provided budget.
Debt Repurchase Update
During the fourth quarter of 2021, CEIX made repayments of
$24.0 million and $6.8 million on our Term Loan B and
equipment-financed debt, respectively, which brings our total debt
payments in the quarter to $30.8
million.
For the year ended December 31,
2021, we made repayments of $25.0
million, $30.9 million,
$17.1 million and $28.2 million on our Term Loan A, Term Loan B,
second lien notes and equipment-financed debt, respectively. This
brings our total debt payments and repurchases in the year to
$101.2 million.
2022 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 2022:
- 2022 targeted PAMC coal sales volume of 23.0-25.0 million
tons
- PAMC average revenue per ton sold expectation of
$55.00-$57.00
- PAMC average cash cost of coal sold per ton2
expectation of $29.00-$31.00
- Capital expenditures: PAMC maintenance – $110-$125 million /
Itmann remaining development – $42-$47 million /
Other (including ESG initiatives) – $10-$23
million
- Expect to produce between 0.3-0.5 million tons of coal at
the Itmann Mine (on a clean coal equivalent basis) with the
majority of it in 2H2022
Fourth Quarter Earnings Conference Call
A conference call and webcast, during which management will
discuss the fourth quarter 2021 financial and operational
results, is scheduled for February 8, 2022 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) 1-877-226-2859
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-K with the Securities and Exchange
Commission (SEC) reporting our results for the year
ended December 31, 2021 on February 11,
2022. Investors seeking our detailed financial statements
can refer to the Form 10-K once it has been filed with the SEC.
Footnotes:
1 "Adjusted EBITDA", "Free Cash Flow", "Net Leverage Ratio",
"CONSOL Marine Terminal Adjusted EBITDA", "CMT Operating Cash
Costs", "Total Cash Cost of Coal Sold" and "Net Income (Loss)
Adjusted for the Effect of Unrealized Mark-to-Market Gains (Losses)
on Commodity Derivative Instruments" 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".
2 CEIX is unable to provide a reconciliation of Average Cash
Cost of Coal Sold per Ton guidance, an operating ratio 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 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 ~612
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 1.4 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:
Kurt Salvatori, (724) 416-8319
kurtsalvatori@consolenergy.com
Condensed Consolidated Statements of Income
The following table presents a condensed consolidated statement
of income for the three months and years ended December 31, 2021 and 2020 (in
thousands):
|
|
Three Months
Ended
December 31,
|
|
|
For the Year
Ended
December 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Revenue and Other
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal Revenue
|
|
$
|
288,095
|
|
|
$
|
230,522
|
|
|
$
|
1,092,022
|
|
|
$
|
772,662
|
|
Terminal
Revenue
|
|
|
15,493
|
|
|
|
17,403
|
|
|
|
65,193
|
|
|
|
66,810
|
|
Freight
Revenue
|
|
|
31,448
|
|
|
|
20,849
|
|
|
|
103,819
|
|
|
|
39,990
|
|
Unrealized Gain (Loss)
on Commodity Derivative Instruments
|
|
|
115,539
|
|
|
|
—
|
|
|
|
(52,204)
|
|
|
|
—
|
|
Other Income
|
|
|
30,050
|
|
|
|
55,833
|
|
|
|
50,117
|
|
|
|
142,181
|
|
Total Revenue and
Other Income
|
|
|
480,625
|
|
|
|
324,607
|
|
|
|
1,258,947
|
|
|
|
1,021,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and Other
Costs
|
|
|
194,101
|
|
|
|
185,883
|
|
|
|
743,340
|
|
|
|
667,595
|
|
Depreciation, Depletion
and Amortization
|
|
|
56,510
|
|
|
|
54,703
|
|
|
|
224,583
|
|
|
|
210,760
|
|
Freight
Expense
|
|
|
31,448
|
|
|
|
20,849
|
|
|
|
103,819
|
|
|
|
39,990
|
|
Selling, General and
Administrative Costs
|
|
|
20,131
|
|
|
|
32,980
|
|
|
|
89,113
|
|
|
|
72,706
|
|
Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
(3,441)
|
|
|
|
(657)
|
|
|
|
(21,352)
|
|
Interest Expense,
net
|
|
|
15,849
|
|
|
|
15,070
|
|
|
|
63,342
|
|
|
|
61,186
|
|
Total Costs and
Expenses
|
|
|
318,039
|
|
|
|
306,044
|
|
|
|
1,223,540
|
|
|
|
1,030,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
Before Income Tax
|
|
|
162,586
|
|
|
|
18,563
|
|
|
|
35,407
|
|
|
|
(9,242)
|
|
Income Tax
Expense
|
|
|
45,263
|
|
|
|
3,829
|
|
|
|
1,297
|
|
|
|
3,972
|
|
Net Income
(Loss)
|
|
|
117,323
|
|
|
|
14,734
|
|
|
|
34,110
|
|
|
|
(13,214)
|
|
Less: Net Income (Loss)
Attributable to Noncontrolling Interest
|
|
|
—
|
|
|
|
1,649
|
|
|
|
—
|
|
|
|
(3,459)
|
|
Net Income (Loss)
Attributable to CONSOL Energy Inc. Stockholders
|
|
$
|
117,323
|
|
|
$
|
13,085
|
|
|
$
|
34,110
|
|
|
$
|
(9,755)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.40
|
|
|
$
|
0.50
|
|
|
$
|
0.99
|
|
|
$
|
(0.37)
|
|
Dilutive
|
|
$
|
3.30
|
|
|
$
|
0.49
|
|
|
$
|
0.96
|
|
|
$
|
(0.37)
|
|
Condensed Consolidated Balance Sheets
The following table presents a condensed consolidated balance
sheet as of December 31,
2021 and 2020 (in thousands):
|
|
December
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
|
149,913
|
|
|
$
|
50,850
|
|
Trade Receivables,
net
|
|
|
104,099
|
|
|
|
118,289
|
|
Other Current
Assets
|
|
|
132,328
|
|
|
|
123,802
|
|
Total Current
Assets
|
|
|
386,340
|
|
|
|
292,941
|
|
Total Property, Plant
and Equipment - Net
|
|
|
1,978,550
|
|
|
|
2,049,062
|
|
Total Other
Assets
|
|
|
208,627
|
|
|
|
181,363
|
|
TOTAL
ASSETS
|
|
$
|
2,573,517
|
|
|
$
|
2,523,366
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
$
|
445,232
|
|
|
$
|
368,470
|
|
Total Long-Term
Debt
|
|
|
594,650
|
|
|
|
603,061
|
|
Total Other
Liabilities
|
|
|
860,822
|
|
|
|
998,316
|
|
Total Equity
|
|
|
672,813
|
|
|
|
553,519
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
2,573,517
|
|
|
$
|
2,523,366
|
|
Condensed Consolidated Statements of Cash Flows
The following table presents a condensed consolidated statement
of cash flows for the three months and years ended December 31, 2021 and 2020 (in
thousands):
|
|
Three Months
Ended
December 31,
|
|
|
For the Year
Ended
December 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Cash Flows from
Operating Activities:
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Net Income
(Loss)
|
|
$
|
117,323
|
|
|
$
|
14,734
|
|
|
$
|
34,110
|
|
|
$
|
(13,214)
|
|
Adjustments to
Reconcile Net Income (Loss) to Net Cash Provided
by Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, Depletion
and Amortization
|
|
|
56,510
|
|
|
|
54,703
|
|
|
|
224,583
|
|
|
|
210,760
|
|
Other Non-Cash
Adjustments to Net Income (Loss)
|
|
|
(83,251)
|
|
|
|
12,414
|
|
|
|
40,892
|
|
|
|
(4,685)
|
|
Changes in Working
Capital
|
|
|
(38,156)
|
|
|
|
(14,908)
|
|
|
|
5,984
|
|
|
|
(63,530)
|
|
Net Cash Provided by
Operating Activities
|
|
|
52,426
|
|
|
|
66,943
|
|
|
|
305,569
|
|
|
|
129,331
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
(29,434)
|
|
|
|
(20,049)
|
|
|
|
(132,752)
|
|
|
|
(86,004)
|
|
Proceeds from Sales of
Assets
|
|
|
1,519
|
|
|
|
1,120
|
|
|
|
13,572
|
|
|
|
9,899
|
|
Other Investing
Activity
|
|
|
(7,843)
|
|
|
|
—
|
|
|
|
(8,181)
|
|
|
|
(229)
|
|
Net Cash Used in
Investing Activities
|
|
|
(35,758)
|
|
|
|
(18,929)
|
|
|
|
(127,361)
|
|
|
|
(76,334)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Payments on
Long-Term Debt
|
|
|
(30,768)
|
|
|
|
(19,357)
|
|
|
|
(101,181)
|
|
|
|
(67,000)
|
|
Proceeds from Long-Term
Debt
|
|
|
—
|
|
|
|
—
|
|
|
|
75,000
|
|
|
|
—
|
|
Distributions to
Noncontrolling Interest
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5,575)
|
|
Other Financing
Activities
|
|
|
—
|
|
|
|
(91)
|
|
|
|
(4,671)
|
|
|
|
(9,865)
|
|
Net Cash Used in
Financing Activities
|
|
|
(30,768)
|
|
|
|
(19,448)
|
|
|
|
(30,852)
|
|
|
|
(82,440)
|
|
Net (Decrease)
Increase in Cash & Cash Equivalents & Restricted
Cash
|
|
$
|
(14,100)
|
|
|
$
|
28,566
|
|
|
$
|
147,356
|
|
|
$
|
(29,443)
|
|
Cash and Cash
Equivalents and Restricted Cash at Beginning of
Period
|
|
|
212,306
|
|
|
|
22,284
|
|
|
|
50,850
|
|
|
|
80,293
|
|
Cash and Cash
Equivalents and Restricted Cash at End of Period
|
|
$
|
198,206
|
|
|
$
|
50,850
|
|
|
$
|
198,206
|
|
|
$
|
50,850
|
|
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. Cost of coal sold excludes 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. We define average cash cost of coal sold per ton
as cash cost of coal sold divided by tons sold. The GAAP
measure most directly comparable to cost of coal sold, cash
cost of coal sold and average cash cost of coal sold per ton is
total costs and expenses.
The following table presents a reconciliation of cost of coal
sold, cash cost of coal sold and average cash cost of coal sold per
ton to total costs and expenses, 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
December 31,
|
|
|
Year Ended December
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Total Costs and
Expenses
|
|
$
|
318,039
|
|
|
$
|
306,044
|
|
|
$
|
1,223,540
|
|
|
$
|
1,030,885
|
|
Less: Freight
Expense
|
|
|
(31,448)
|
|
|
|
(20,849)
|
|
|
|
(103,819)
|
|
|
|
(39,990)
|
|
Less: Selling, General
and Administrative Costs
|
|
|
(20,131)
|
|
|
|
(32,980)
|
|
|
|
(89,113)
|
|
|
|
(72,706)
|
|
Less: Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
3,441
|
|
|
|
657
|
|
|
|
21,352
|
|
Less: Interest Expense,
net
|
|
|
(15,849)
|
|
|
|
(15,070)
|
|
|
|
(63,342)
|
|
|
|
(61,186)
|
|
Less: Other Costs
(Non-Production)
|
|
|
(22,821)
|
|
|
|
(24,031)
|
|
|
|
(74,528)
|
|
|
|
(124,739)
|
|
Less: Depreciation,
Depletion and Amortization (Non-Production)
|
|
|
(8,461)
|
|
|
|
(4,457)
|
|
|
|
(29,355)
|
|
|
|
(39,668)
|
|
Cost of Coal
Sold
|
|
$
|
219,329
|
|
|
$
|
212,098
|
|
|
$
|
864,040
|
|
|
$
|
713,948
|
|
Less: Depreciation,
Depletion and Amortization (Production)
|
|
|
(48,049)
|
|
|
|
(50,246)
|
|
|
|
(195,228)
|
|
|
|
(171,092)
|
|
Cash Cost of Coal
Sold
|
|
$
|
171,280
|
|
|
$
|
161,852
|
|
|
$
|
668,812
|
|
|
$
|
542,856
|
|
Total Tons Sold (in
millions)
|
|
|
5.6
|
|
|
|
5.9
|
|
|
|
23.7
|
|
|
|
18.7
|
|
Average Cost of Coal
Sold per Ton
|
|
$
|
39.34
|
|
|
$
|
36.04
|
|
|
$
|
36.43
|
|
|
$
|
38.24
|
|
Less: Depreciation,
Depletion and Amortization Costs per Ton
Sold
|
|
|
8.53
|
|
|
|
8.55
|
|
|
|
8.18
|
|
|
|
9.12
|
|
Average Cash Cost of
Coal Sold per Ton
|
|
$
|
30.81
|
|
|
$
|
27.49
|
|
|
$
|
28.25
|
|
|
$
|
29.12
|
|
We evaluate our average margin per ton sold and average cash
margin per ton sold on a per-ton basis. 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
December 31,
|
|
|
Year Ended December
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Total Coal Revenue
(PAMC Segment)
|
|
$
|
285,807
|
|
|
$
|
229,819
|
|
|
$
|
1,085,080
|
|
|
$
|
771,363
|
|
Operating and Other
Costs
|
|
|
194,101
|
|
|
|
185,883
|
|
|
|
743,340
|
|
|
|
667,595
|
|
Less: Other Costs
(Non-Production)
|
|
|
(22,821)
|
|
|
|
(24,031)
|
|
|
|
(74,528)
|
|
|
|
(124,739)
|
|
Total Cash Cost of
Coal Sold
|
|
|
171,280
|
|
|
|
161,852
|
|
|
|
668,812
|
|
|
|
542,856
|
|
Add: Depreciation,
Depletion and Amortization
|
|
|
56,510
|
|
|
|
54,703
|
|
|
|
224,583
|
|
|
|
210,760
|
|
Less: Depreciation,
Depletion and Amortization (Non-Production)
|
|
|
(8,461)
|
|
|
|
(4,457)
|
|
|
|
(29,355)
|
|
|
|
(39,668)
|
|
Total Cost of Coal
Sold
|
|
$
|
219,329
|
|
|
$
|
212,098
|
|
|
$
|
864,040
|
|
|
$
|
713,948
|
|
Total Tons Sold (in
millions)
|
|
|
5.6
|
|
|
|
5.9
|
|
|
|
23.7
|
|
|
|
18.7
|
|
Average Revenue per Ton
Sold
|
|
$
|
51.27
|
|
|
$
|
39.05
|
|
|
$
|
45.75
|
|
|
$
|
41.31
|
|
Average Cash Cost of
Coal Sold per Ton
|
|
|
30.81
|
|
|
|
27.49
|
|
|
|
28.25
|
|
|
|
29.12
|
|
Depreciation, Depletion
and Amortization Costs per Ton Sold
|
|
|
8.53
|
|
|
|
8.55
|
|
|
|
8.18
|
|
|
|
9.12
|
|
Average Cost of Coal
Sold per Ton
|
|
|
39.34
|
|
|
|
36.04
|
|
|
|
36.43
|
|
|
|
38.24
|
|
Average Margin per
Ton Sold
|
|
|
11.93
|
|
|
|
3.01
|
|
|
|
9.32
|
|
|
|
3.07
|
|
Add: Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
|
8.53
|
|
|
|
8.55
|
|
|
|
8.18
|
|
|
|
9.12
|
|
Average Cash Margin
per Ton Sold
|
|
$
|
20.46
|
|
|
$
|
11.56
|
|
|
$
|
17.50
|
|
|
$
|
12.19
|
|
We define CMT operating costs as operating and other costs
related to throughput tons. CMT operating costs exclude any
indirect costs, such as freight expense, selling, general and
administrative costs, direct administration costs, interest
expenses, and other costs not directly attributable to throughput
tons. CMT operating cash costs include CMT operating costs, less
depreciation, depletion and amortization costs. The GAAP measure
most directly comparable to CMT operating costs and CMT operating
cash costs is total costs and expenses.
The following table presents a reconciliation of CMT operating
costs and CMT operating cash costs 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
December 31,
|
|
|
Year Ended December
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Total Costs and
Expenses
|
|
$
|
318,039
|
|
|
$
|
306,044
|
|
|
$
|
1,223,540
|
|
|
$
|
1,030,885
|
|
Less: Freight
Expense
|
|
|
(31,448)
|
|
|
|
(20,849)
|
|
|
|
(103,819)
|
|
|
|
(39,990)
|
|
Less: Selling, General
and Administrative Costs
|
|
|
(20,131)
|
|
|
|
(32,980)
|
|
|
|
(89,113)
|
|
|
|
(72,706)
|
|
Less: Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
3,441
|
|
|
|
657
|
|
|
|
21,352
|
|
Less: Interest Expense,
net
|
|
|
(15,849)
|
|
|
|
(15,070)
|
|
|
|
(63,342)
|
|
|
|
(61,186)
|
|
Less: Other Costs
(Non-Throughput)
|
|
|
(188,727)
|
|
|
|
(181,254)
|
|
|
|
(721,522)
|
|
|
|
(649,207)
|
|
Less: Depreciation,
Depletion and Amortization (Non-Throughput)
|
|
|
(55,292)
|
|
|
|
(53,408)
|
|
|
|
(219,749)
|
|
|
|
(205,665)
|
|
CMT Operating
Costs
|
|
$
|
6,592
|
|
|
$
|
5,924
|
|
|
$
|
26,652
|
|
|
$
|
23,483
|
|
Less: Depreciation,
Depletion and Amortization (Throughput)
|
|
|
(1,218)
|
|
|
|
(1,295)
|
|
|
|
(4,834)
|
|
|
|
(5,095)
|
|
CMT Operating Cash
Costs
|
|
$
|
5,374
|
|
|
$
|
4,629
|
|
|
$
|
21,818
|
|
|
$
|
18,388
|
|
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
stock-based compensation and unrealized gains or losses on
commodity derivative instruments. 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 (in thousands).
|
|
Three Months Ended
December 31, 2021
|
|
|
|
PA Mining
Complex
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net Income
(Loss)
|
|
$
|
176,145
|
|
|
$
|
10,415
|
|
|
$
|
(69,237)
|
|
|
$
|
117,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
45,263
|
|
|
|
45,263
|
|
Add: Interest Expense,
net
|
|
|
285
|
|
|
|
1,533
|
|
|
|
14,031
|
|
|
|
15,849
|
|
Less: Interest
Income
|
|
|
(54)
|
|
|
|
—
|
|
|
|
(827)
|
|
|
|
(881)
|
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
|
|
176,376
|
|
|
|
11,948
|
|
|
|
(10,770)
|
|
|
|
177,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
50,940
|
|
|
|
1,218
|
|
|
|
4,352
|
|
|
|
56,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A (EBITDA)
|
|
$
|
227,316
|
|
|
$
|
13,166
|
|
|
$
|
(6,418)
|
|
|
$
|
234,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-Based
Compensation
|
|
$
|
1,761
|
|
|
$
|
81
|
|
|
$
|
183
|
|
|
$
|
2,025
|
|
Unrealized Gain on
Commodity Derivative Instruments
|
|
|
(115,539)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(115,539)
|
|
Total Pre-tax
Adjustments
|
|
|
(113,778)
|
|
|
|
81
|
|
|
|
183
|
|
|
|
(113,514)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
113,538
|
|
|
$
|
13,247
|
|
|
$
|
(6,235)
|
|
|
$
|
120,550
|
|
|
|
Three Months Ended
December 31, 2020
|
|
|
|
PA Mining
Complex
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net Income
(Loss)
|
|
$
|
34,590
|
|
|
$
|
8,866
|
|
|
$
|
(28,722)
|
|
|
$
|
14,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
3,829
|
|
|
|
3,829
|
|
Add: Interest Expense,
net
|
|
|
342
|
|
|
|
1,539
|
|
|
|
13,189
|
|
|
|
15,070
|
|
Less: Interest
Income
|
|
|
(10)
|
|
|
|
—
|
|
|
|
(778)
|
|
|
|
(788)
|
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
|
|
34,922
|
|
|
|
10,405
|
|
|
|
(12,482)
|
|
|
|
32,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
53,118
|
|
|
|
1,295
|
|
|
|
290
|
|
|
|
54,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A (EBITDA)
|
|
$
|
88,040
|
|
|
$
|
11,700
|
|
|
$
|
(12,192)
|
|
|
$
|
87,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock/Unit-Based
Compensation
|
|
$
|
1,815
|
|
|
$
|
100
|
|
|
$
|
202
|
|
|
$
|
2,117
|
|
CCR Merger
Fees
|
|
|
2,123
|
|
|
|
—
|
|
|
|
7,199
|
|
|
|
9,322
|
|
Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,441)
|
|
|
|
(3,441)
|
|
Total Pre-tax
Adjustments
|
|
|
3,938
|
|
|
|
100
|
|
|
|
3,960
|
|
|
|
7,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
91,978
|
|
|
$
|
11,800
|
|
|
$
|
(8,232)
|
|
|
$
|
95,546
|
|
|
|
For the Year Ended
December 31, 2021
|
|
|
|
PA Mining
Complex
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net Income
(Loss)
|
|
$
|
94,161
|
|
|
$
|
32,251
|
|
|
$
|
(92,302)
|
|
|
$
|
34,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
1,297
|
|
|
|
1,297
|
|
Add: Interest Expense,
net
|
|
|
1,710
|
|
|
|
6,141
|
|
|
|
55,491
|
|
|
|
63,342
|
|
Less: Interest
Income
|
|
|
(90)
|
|
|
|
—
|
|
|
|
(3,197)
|
|
|
|
(3,287)
|
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
|
|
95,781
|
|
|
|
38,392
|
|
|
|
(38,711)
|
|
|
|
95,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
206,727
|
|
|
|
4,834
|
|
|
|
13,022
|
|
|
|
224,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A (EBITDA)
|
|
$
|
302,508
|
|
|
$
|
43,226
|
|
|
$
|
(25,689)
|
|
|
$
|
320,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-Based
Compensation
|
|
$
|
5,768
|
|
|
$
|
265
|
|
|
$
|
599
|
|
|
$
|
6,632
|
|
Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
(657)
|
|
|
|
(657)
|
|
Pension
Settlement
|
|
|
—
|
|
|
|
—
|
|
|
|
22
|
|
|
|
22
|
|
Unrealized Loss on
Commodity Derivative Instruments
|
|
|
52,204
|
|
|
|
—
|
|
|
|
—
|
|
|
|
52,204
|
|
Total Pre-tax
Adjustments
|
|
|
57,972
|
|
|
|
265
|
|
|
|
(36)
|
|
|
|
58,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
360,480
|
|
|
$
|
43,491
|
|
|
$
|
(25,725)
|
|
|
$
|
378,246
|
|
|
|
For the Year Ended
December 31, 2020
|
|
|
|
PA Mining
Complex
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net Income
(Loss)
|
|
$
|
16,185
|
|
|
$
|
32,537
|
|
|
$
|
(61,936)
|
|
|
$
|
(13,214)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
3,972
|
|
|
|
3,972
|
|
Add: Interest Expense,
net
|
|
|
1,236
|
|
|
|
6,166
|
|
|
|
53,784
|
|
|
|
61,186
|
|
Less: Interest
Income
|
|
|
(10)
|
|
|
|
—
|
|
|
|
(1,220)
|
|
|
|
(1,230)
|
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
|
|
17,411
|
|
|
|
38,703
|
|
|
|
(5,400)
|
|
|
|
50,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
198,272
|
|
|
|
5,095
|
|
|
|
7,393
|
|
|
|
210,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Interest, Taxes and DD&A (EBITDA)
|
|
$
|
215,683
|
|
|
$
|
43,798
|
|
|
$
|
1,993
|
|
|
$
|
261,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock/Unit-Based
Compensation
|
|
$
|
9,905
|
|
|
$
|
558
|
|
|
$
|
1,116
|
|
|
$
|
11,579
|
|
CCR Merger
Fees
|
|
|
2,623
|
|
|
|
—
|
|
|
|
7,199
|
|
|
|
9,822
|
|
Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
(21,352)
|
|
|
|
(21,352)
|
|
Total Pre-tax
Adjustments
|
|
|
12,528
|
|
|
|
558
|
|
|
|
(13,037)
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
228,211
|
|
|
$
|
44,356
|
|
|
$
|
(11,044)
|
|
|
$
|
261,523
|
|
We define net income (loss) attributable to CONSOL Energy Inc.
stockholders adjusted for the effect of unrealized mark-to-market
gains (losses) on commodity derivative instruments as net income
(loss) adjusted for the effect of current period unrealized gains
or losses related to commodity derivatives. The GAAP measure most
directly comparable to net income (loss) attributable to
CONSOL Energy Inc. stockholders adjusted for the effect of
unrealized mark-to-market gains (losses) on commodity derivative
instruments is net income (loss).
The following table presents a reconciliation of net income
(loss) attributable to CONSOL Energy Inc. stockholders adjusted for
the effect of unrealized mark-to-market gains (losses) on commodity
derivative instruments to net income (loss), the most directly
comparable GAAP financial measure, on a historical basis for each
of the periods indicated (in thousands).
|
|
Three Months
Ended
December 31,
|
|
|
Year Ended December
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net Income
(Loss)
|
|
$
|
117,323
|
|
|
$
|
14,734
|
|
|
$
|
34,110
|
|
|
$
|
(13,214)
|
|
Less: Unrealized (Gain)
Loss on Commodity Derivative
Instruments
|
|
|
(115,539)
|
|
|
|
—
|
|
|
|
52,204
|
|
|
|
—
|
|
Add: Effect of Income
Taxes
|
|
|
28,873
|
|
|
|
—
|
|
|
|
(13,046)
|
|
|
|
—
|
|
Net Income (Loss)
Adjusted for the Effect of Unrealized Mark-to-
Market Gains (Losses) on Commodity Derivative
Instruments
|
|
$
|
30,657
|
|
|
$
|
14,734
|
|
|
$
|
73,268
|
|
|
$
|
(13,214)
|
|
Less: Net Income (Loss)
Attributable to Noncontrolling Interest
|
|
|
—
|
|
|
|
1,649
|
|
|
|
—
|
|
|
|
(3,459)
|
|
Net Income (Loss)
Attributable to CONSOL Energy Inc.
Stockholders Adjusted for the Effect of Unrealized
Mark-to-Market
Gains (Losses) on Commodity Derivative Instruments
|
|
$
|
30,657
|
|
|
$
|
13,085
|
|
|
$
|
73,268
|
|
|
$
|
(9,755)
|
|
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 stock-based compensation, unrealized loss
on commodity derivative instruments, 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
|
|
|
|
December 31,
2021
|
|
|
December 31,
2020
|
|
Net Income
(Loss)
|
|
$
|
34,110
|
|
|
$
|
(13,214)
|
|
Plus:
|
|
|
|
|
|
|
|
|
Interest Expense,
net
|
|
|
63,342
|
|
|
|
61,186
|
|
Depreciation, Depletion
and Amortization
|
|
|
224,583
|
|
|
|
210,760
|
|
Income Taxes
|
|
|
1,297
|
|
|
|
3,972
|
|
Stock/Unit-Based
Compensation
|
|
|
6,632
|
|
|
|
11,579
|
|
Gain on Debt
Extinguishment
|
|
|
(657)
|
|
|
|
(21,352)
|
|
Unrealized Loss on
Commodity Derivative Instruments
|
|
|
52,204
|
|
|
|
—
|
|
Cash Payments for
Legacy Employee Liabilities, Net of Non-Cash Expense
|
|
|
(37,364)
|
|
|
|
(17,401)
|
|
Other Adjustments to
Net Income (Loss)
|
|
|
(4,480)
|
|
|
|
5,725
|
|
Consolidated EBITDA per
Credit Agreement
|
|
$
|
339,667
|
|
|
$
|
241,255
|
|
|
|
|
|
|
|
|
|
|
Consolidated First Lien
Debt
|
|
$
|
329,263
|
|
|
$
|
394,631
|
|
Senior Secured Second
Lien Notes
|
|
|
149,107
|
|
|
|
167,147
|
|
MEDCO Revenue
Bonds
|
|
|
102,865
|
|
|
|
102,865
|
|
PEDFA Bonds
|
|
|
75,000
|
|
|
|
—
|
|
Advance Royalty
Commitments
|
|
|
4,858
|
|
|
|
2,185
|
|
Consolidated
Indebtedness per Credit Agreement
|
|
$
|
661,093
|
|
|
$
|
666,828
|
|
Less:
|
|
|
|
|
|
|
|
|
Advance Royalty
Commitments
|
|
$
|
4,858
|
|
|
$
|
2,185
|
|
Cash on Hand
|
|
|
149,913
|
|
|
|
50,850
|
|
Consolidated Net
Indebtedness per Credit Agreement
|
|
$
|
506,322
|
|
|
$
|
613,793
|
|
|
|
|
|
|
|
|
|
|
Net Leverage Ratio
(Net Indebtedness/EBITDA)
|
|
|
1.49
|
|
|
|
2.54
|
|
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 operating activities, the most
directly comparable GAAP financial measure, on a historical basis,
for each of the periods indicated (in thousands).
Organic Free Cash
Flow
|
|
Three
Months
Ended
December
31, 2021
|
|
|
Three
Months
Ended
December
31, 2020
|
|
|
Year Ended
December
31, 2021
|
|
|
Year Ended
December
31, 2020
|
|
Net Cash Provided by
Operating Activities
|
|
$
|
52,426
|
|
|
$
|
66,943
|
|
|
$
|
305,569
|
|
|
$
|
129,331
|
|
Capital
Expenditures
|
|
|
(29,434)
|
|
|
|
(20,049)
|
|
|
|
(132,752)
|
|
|
|
(86,004)
|
|
Organic Free Cash
Flow
|
|
$
|
22,992
|
|
|
$
|
46,894
|
|
|
$
|
172,817
|
|
|
$
|
43,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to
Noncontrolling Interest
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5,575)
|
|
Organic Free Cash
Flow Net to CEIX Shareholders
|
|
$
|
22,992
|
|
|
$
|
46,894
|
|
|
$
|
172,817
|
|
|
$
|
37,752
|
|
Free Cash
Flow
|
|
Three
Months
Ended
December
31, 2021
|
|
|
Three
Months
Ended
December
31, 2020
|
|
|
Year Ended
December
31, 2021
|
|
|
Year Ended
December
31, 2020
|
|
Net Cash Provided by
Operating Activities
|
|
$
|
52,426
|
|
|
$
|
66,943
|
|
|
$
|
305,569
|
|
|
$
|
129,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
(29,434)
|
|
|
|
(20,049)
|
|
|
|
(132,752)
|
|
|
|
(86,004)
|
|
Proceeds from Sales of
Assets
|
|
|
1,519
|
|
|
|
1,120
|
|
|
|
13,572
|
|
|
|
9,899
|
|
Free Cash
Flow
|
|
$
|
24,511
|
|
|
$
|
48,014
|
|
|
$
|
186,389
|
|
|
$
|
53,226
|
|
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 our expectations with
respect to the Itmann Mine or any other 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.