CANONSBURG, Pa., Nov. 1, 2022
/PRNewswire/ -- Today, CONSOL Energy Inc. (NYSE: CEIX) reported
financial and operating results for the period ended September 30, 2022.
Third Quarter 2022 Highlights
Include:
- GAAP net income of $152.1
million;
- Quarterly adjusted EBITDA1 of $180.9 million;
- Announces dividend of $1.05/share, based on 3Q22 results, payable on
November 23, 2022;
- Itmann preparation plant commissioned in late September, with
first train shipped on October
12th;
- Net cash provided by operating activities of $153.1 million;
- Quarterly free cash flow1 of $107.1 million;
- 2023 and 2024 contracted position improved to 21.8 million tons
and 8.8 million tons, respectively; and
- Debt repayments of $56.3 million
during 3Q22, including $50.0 million
of Term Loan B.
Management Comments
"During the third quarter of 2022, we generated $107 million in free cash flow1,
despite the Pennsylvania Mining Complex having a planned
maintenance shutdown and longwall move and encountering some
operational issues, which limited production to 5.3 million tons.
Due to this strong free cash flow1 generation, we were
once again able to retire a significant amount of our outstanding
debt while returning $35 million of
cash to our shareholders during the quarter. Capitalizing on the
ongoing coal market strength, we opportunistically contracted an
additional 6.0 million tons of new business during the third
quarter for delivery through 2026 at attractive prices.
Furthermore, we continue to target operation of the fifth longwall
at the Pennsylvania Mining Complex by the end of the fourth
quarter, which will give us upside potential and optionality in
2023 and beyond. Finally, our Itmann preparation plant was
commissioned and processed its first coal in late September with
the first train subsequently shipping in mid-October. This puts us
on track to have a full year of production from the Itmann Mine
starting next year, which diversifies our revenue mix and adds
further upside potential to 2023 and beyond."
"On the safety front, our Enlow Fork Mine, Harvey Mine, Bailey
Preparation Plant and CONSOL Marine Terminal (CMT) each had ZERO
employee recordable incidents during the third quarter of 2022. The
Bailey Preparation Plant and CMT have maintained ZERO employee
recordable incidents thus far in 2022, while the Enlow Fork Mine
recently completed its second consecutive quarter at that mark. Our
3Q22 total recordable incident rate of 0.99 at the Pennsylvania
Mining Complex continued to track significantly below the national
average for underground bituminous coal mines."
Pennsylvania Mining Complex (PAMC) Review and Outlook
PAMC Sales and Marketing
Our sales team sold 5.3 million tons of PAMC coal during the
third quarter of 2022, generating coal revenue of $465.7 million for the PAMC segment. After
adjusting for the effect of settlements of commodity
derivatives, the PAMC generated an average realized coal
revenue per ton sold1 of $72.83. This compares to 5.4 million tons sold at
an average realized coal revenue per ton sold1 of
$47.46 in the year-ago period. The
continued improvement in the average realized coal revenue per ton
sold1 in the 2022 quarters versus the prior-year periods
is due to the persistent strong demand for our product and the
significant improvement in domestic and global commodity markets as
a whole.
In the domestic market, the pricing environment remained
strong during the third quarter of 2022. Henry Hub natural gas spot
prices averaged $8.03/mmBtu in 3Q22,
an 84% increase compared to the prior-year period. PJM West
day-ahead power prices averaged $90.44/MWh in the quarter, an improvement of 116%
compared to 3Q21 and the highest quarterly average since the first
quarter of 2014. IHS McCloskey estimates that U.S. natural gas
inventories will end the injection season roughly 7% below the
5-year average of 3.6 trillion cubic feet, despite the incremental
stranded domestic natural gas supply resulting from the June fire
at the Freeport LNG export facility in Texas. Low coal stockpiles at domestic power
plants and limited coal supply growth have resulted in coal
conservation in the power sector, which has led to natural gas
balancing the electric power market. Additionally, several domestic
coal-fired electricity generation unit retirements are being
postponed due to grid reliability concerns, supply chain
disruptions and delayed renewable buildouts. IHS McCloskey reports
that 40 coal-fired generation units representing nearly 17 GW of
capacity have announced retirement delays this year. These
delays will extend the operating lives of the plants by
approximately 2 years on average and range anywhere from a few
months to as many as 5 years on a plant-by-plant basis.
On the export front, seaborne thermal coal markets remained
robust in the third quarter of 2022. API2 spot prices continued
their upward push, averaging $360/ton
in 3Q22 compared to $284/ton in 1H22
and $155/ton in the prior-year
quarter. Although European natural gas and coal inventory levels
have improved recently, the general consensus is that winter demand
will test the power markets in Europe. Additionally, natural gas market
conditions in Europe also have
become more challenging with the indefinite shutdown of the Russian
Nord Stream 1 pipeline due to recent
issues. In a move to shore up their energy security, European Union
governments have implemented various plans to allow for more coal
fired generation. According to Wood Mackenzie, the most aggressive
action came from Germany which
will revive 4.2 GW of coal capacity and delay the retirement of an
additional 3.6 GW of coal-fired generation. Even if these plants do
not dispatch this winter, they will still need to build and
maintain sufficient coal stockpiles in case they are called upon.
Wood Mackenzie estimates that Europe will import 95 million tons of coal in
2022, a 13% increase compared to 2021.
During 3Q22, we strengthened our forward contract book at the
PAMC, opportunistically securing an additional 6.0 million
tons for delivery through 2026. As such, we have increased our
2023 and 2024 sold positions to 21.8 million tons and 8.8
million tons, respectively.
Operations Summary
During the third quarter of 2022, operational issues such
as roof falls and equipment breakdowns, along with a planned
maintenance shutdown and longwall move, limited our production. The
PAMC produced 5.3 million tons in 3Q22, compared to 5.3 million
tons in the year-ago quarter, which also saw the PAMC deal with
multiple operational and geological challenges. However, these
issues are behind us, and we expect to produce at a more normalized
run rate in the fourth quarter. The fifth longwall development
remains on track, and we expect it to be operational in
December 2022.
CEIX's total costs and expenses during the third quarter of
2022 were $370.1 million,
compared to $303.1 million in the
year-ago quarter, and CEIX's total coal revenue during the third
quarter of 2022 was $472.6 million, compared to $258.6 million in the year-ago quarter.
Total realized coal revenue1 in 3Q22 was $391.3 million, after accounting for the
settlements of commodity derivatives. The significant improvement
in total realized coal revenue1 was mainly driven by a
$25.37 improvement in average
realized coal revenue per ton sold1 at the Pennsylvania
Mining Complex, as coal prices were stronger during the quarter
compared to the prior-year period. Average cash cost of coal sold
per ton1 at the PAMC for the third quarter of 2022
was $39.77, compared to $30.64 in the year-ago quarter. The significant
increase was due to ongoing inflationary pressures on supplies and
maintenance costs, multiple equipment failures, continued
development work for the fifth longwall at the PAMC, and increased
power costs due to elevated power prices in 3Q22 compared to the
prior-year period.
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30, 2022
|
|
|
September
30, 2021
|
|
|
September
30, 2022
|
|
|
September
30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Coal
Revenue
|
thousands
|
|
$
|
472,608
|
|
|
$
|
258,560
|
|
|
$
|
1,481,668
|
|
|
$
|
803,927
|
|
Settlements of
Commodity Derivatives
|
thousands
|
|
$
|
(81,311)
|
|
|
$
|
—
|
|
|
$
|
(241,486)
|
|
|
$
|
—
|
|
Total Realized Coal
Revenue1
|
thousands
|
|
$
|
391,297
|
|
|
$
|
258,560
|
|
|
$
|
1,240,182
|
|
|
$
|
803,927
|
|
Total Costs and
Expenses
|
thousands
|
|
$
|
370,103
|
|
|
$
|
303,059
|
|
|
$
|
1,131,709
|
|
|
$
|
905,501
|
|
Total Cash Cost of Coal
Sold1
|
thousands
|
|
$
|
209,988
|
|
|
$
|
166,471
|
|
|
$
|
618,415
|
|
|
$
|
497,533
|
|
Coal
Production
|
million tons
|
|
|
5.3
|
|
|
|
5.3
|
|
|
|
17.9
|
|
|
|
18.2
|
|
Coal Sales
|
million tons
|
|
|
5.3
|
|
|
|
5.4
|
|
|
|
17.9
|
|
|
|
18.1
|
|
Average Realized Coal
Revenue per Ton Sold1
|
per ton
|
|
$
|
72.83
|
|
|
$
|
47.46
|
|
|
$
|
67.81
|
|
|
$
|
44.05
|
|
Average Cash Cost of
Coal Sold per Ton1
|
per ton
|
|
$
|
39.77
|
|
|
$
|
30.64
|
|
|
$
|
34.46
|
|
|
$
|
27.45
|
|
Average Cash Margin per
Ton Sold1
|
per ton
|
|
$
|
33.06
|
|
|
$
|
16.82
|
|
|
$
|
33.35
|
|
|
$
|
16.60
|
|
CONSOL Marine Terminal Review
For the third quarter of 2022, throughput volumes at the CMT
were 2.7 million tons, compared to 2.8 million tons in the year-ago
period. Terminal revenues and CMT total costs and expenses were
$14.8 million and $10.2 million, respectively, compared to
$14.1 million and $10.2 million, respectively, during the year-ago
period. CMT operating cash costs1 were $6.7 million in 3Q22, compared to $5.8 million in 3Q21, mainly due to increased
project expense associated with shutdown maintenance. CONSOL Marine
Terminal net income and CONSOL Marine Terminal Adjusted
EBITDA1 were $5.6
million and $8.3 million,
respectively, in the third quarter of 2022 compared to $4.5 million and $7.3
million, respectively, in the year-ago period.
Itmann Update
Our Itmann project achieved a major milestone during the third
quarter of 2022 with the commissioning of the Itmann preparation
plant and completion of rail infrastructure construction. As such,
the prep plant began processing coal in late September, and the
first train of Itmann coal was loaded and shipped on October 12th. Due to supply chain bottlenecks
that have delayed delivery of certain equipment for the third
continuous miner section, we now expect to ramp up the third and
final production section during the fourth quarter and be prepared
for full-capacity operation throughout 2023. We have adjusted our
production guidance in 2022 accordingly to account for these
equipment deliveries delays, coupled with the preparation plant
starting later in the quarter than internally expected. We now
expect to produce 200-300 thousand tons for the year of 2022, which
mostly represents development mining. We continue to grow staffing
levels in conjunction with our production ramp-up plan. On the
marketing front, to date our product has been well received. Over
the next two quarters, we will continue to focus on securing new
business with several strategic customers in the domestic and
export markets.
Shareholder Returns Update
Today, at the discretion of the board of directors, CEIX
announced a dividend of $1.05/share,
representing approximately 35% of the free cash flow generated in
the third quarter of 2022 and consistent with the enhanced
shareholder return program announced last quarter. The payment will
amount to an aggregate of approximately $37.0 million, payable on November 23, 2022 to all shareholders of
record as of November 14, 2022.
Debt Repurchases Update
In the near term, we remain committed to allocating the majority
of our free cash flow toward debt repayment with the goal of
aggressively reducing our outstanding gross debt. During the third
quarter of 2022, we made repayments of $50.0
million and $6.3 million on
our Term Loan B and equipment financed debt, respectively. This
brings our total debt repayments and repurchases in the quarter to
$56.3 million. Year-to-date through
September 30, 2022, we have made
total debt repayments and repurchases of $210.7 million (excluding the premium paid on the
second lien notes).
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 full fiscal year 2022:
- 2022 targeted PAMC coal sales volume of 23.75-24.50 million
tons
- PAMC average realized coal revenue per ton sold2
expectation of $67.00-$69.00
- PAMC average cash cost of coal sold per ton2
expectation of $33.00-$35.00
- Capital expenditures (including Itmann development):
$160-$185
million
Third Quarter Earnings Conference Call
A conference call and webcast, during which management will
discuss the third quarter 2022 financial and
operational results, is scheduled for November
1, 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-Q with the Securities and Exchange
Commission (SEC) reporting our results for the period
ended September 30, 2022 on November 1, 2022. 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", "Total Realized
Coal Revenue" 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 and developed a
new metallurgical coal mine, the Itmann Mine, 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 Mine, 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:
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, 2022 and 2021 (in
thousands):
|
|
Three Months Ended
September
30,
|
|
|
|
2022
|
|
|
2021
|
|
Cash Flows from
Operating Activities:
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Net Income
(Loss)
|
|
$
|
152,121
|
|
|
$
|
(113,789)
|
|
Adjustments to
Reconcile Net Income (Loss) to Net Cash Provided by Operating
Activities:
|
|
|
|
|
|
|
|
|
Depreciation,
Depletion and Amortization
|
|
|
54,773
|
|
|
|
55,977
|
|
Other Non-Cash
Adjustments to Net Income
|
|
|
2,498
|
|
|
|
(35,923)
|
|
Changes in Working
Capital
|
|
|
(56,264)
|
|
|
|
174,273
|
|
Net Cash Provided
by Operating Activities
|
|
|
153,128
|
|
|
|
80,538
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
(58,395)
|
|
|
|
(45,863)
|
|
Proceeds from Sales of
Assets
|
|
|
12,356
|
|
|
|
135
|
|
Other Investing
Activity
|
|
|
(150)
|
|
|
|
(156)
|
|
Net Cash Used in
Investing Activities
|
|
|
(46,189)
|
|
|
|
(45,884)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Net Payments on
Long-Term Debt, Including Fees
|
|
|
(56,320)
|
|
|
|
(22,550)
|
|
Dividends
|
|
|
(34,871)
|
|
|
|
—
|
|
Other Financing
Activities
|
|
|
(7,759)
|
|
|
|
(1)
|
|
Net Cash Used in
Financing Activities
|
|
|
(98,950)
|
|
|
|
(22,551)
|
|
Net Increase in Cash
and Cash Equivalents and Restricted Cash
|
|
|
7,989
|
|
|
|
12,103
|
|
Cash and Cash
Equivalents and Restricted Cash at Beginning of Period
|
|
|
312,659
|
|
|
|
200,203
|
|
Cash and Cash
Equivalents and Restricted Cash at End of Period
|
|
$
|
320,648
|
|
|
$
|
212,306
|
|
Reconciliation of Non-GAAP Financial Measures
We evaluate our cost of coal sold and cash cost of coal sold on
an aggregate basis by segment, and our average cash cost of coal
sold per ton on a per-ton 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 general and administrative costs, freight expenses,
(loss) gain on debt extinguishment, 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 for the PAMC
segment 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Total Costs and
Expenses
|
$
|
370,103
|
|
$
|
303,059
|
|
$
|
1,131,709
|
|
$
|
905,501
|
|
Less: Freight
Expense
|
|
(42,619)
|
|
|
(19,348)
|
|
|
(131,419)
|
|
|
(72,371)
|
|
Less: General and
Administrative Costs
|
|
(30,406)
|
|
|
(22,606)
|
|
|
(94,919)
|
|
|
(68,631)
|
|
Less: (Loss) Gain on
Debt Extinguishment
|
|
(674)
|
|
|
(132)
|
|
|
(4,361)
|
|
|
657
|
|
Less: Interest
Expense, net
|
|
(11,962)
|
|
|
(16,045)
|
|
|
(39,435)
|
|
|
(47,493)
|
|
Less: Other Costs
(Non-Production and non-PAMC)
|
|
(19,681)
|
|
|
(22,480)
|
|
|
(74,553)
|
|
|
(52,057)
|
|
Less: Depreciation,
Depletion and Amortization (Non-Production and
non-PAMC)
|
|
(9,501)
|
|
|
(7,976)
|
|
|
(27,854)
|
|
|
(20,894)
|
|
Cost of Coal
Sold
|
$
|
255,260
|
|
$
|
214,472
|
|
$
|
759,168
|
|
$
|
644,712
|
|
Less: Depreciation,
Depletion and Amortization (Production)
|
|
(45,272)
|
|
|
(48,001)
|
|
|
(140,753)
|
|
|
(147,179)
|
|
Cash Cost of Coal
Sold
|
$
|
209,988
|
|
$
|
166,471
|
|
$
|
618,415
|
|
$
|
497,533
|
|
Total Tons Sold (in
millions)
|
|
5.3
|
|
|
5.4
|
|
|
17.9
|
|
|
18.1
|
|
Average Cost of Coal
Sold per Ton
|
$
|
48.37
|
|
$
|
39.71
|
|
$
|
42.34
|
|
$
|
35.53
|
|
Less: Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
8.60
|
|
|
9.07
|
|
|
7.88
|
|
|
8.08
|
|
Average Cash Cost of
Coal Sold per Ton
|
$
|
39.77
|
|
$
|
30.64
|
|
$
|
34.46
|
|
$
|
27.45
|
|
We evaluate our average realized coal revenue per ton sold,
average margin per ton sold and average cash margin per ton
sold on a per-ton basis. We define average realized coal
revenue per ton sold as total coal revenue, net of settlements
of commodity derivatives divided by tons sold. We define
average margin per ton sold as average realized coal revenue per
ton sold, net of average cost of coal sold per ton. We define
average cash margin per ton sold as average realized coal revenue
per ton sold, net of average cash cost of coal sold per ton. The
GAAP measure most directly comparable to average realized coal
revenue per ton sold, average margin per ton sold and average
cash margin per ton sold is total coal revenue.
The following table presents a reconciliation for the PAMC
segment of average realized coal revenue per ton sold, 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,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Total Coal Revenue
(PAMC Segment)
|
|
$
|
465,693
|
|
|
$
|
256,326
|
|
|
$
|
1,457,595
|
|
|
$
|
799,274
|
|
Add: Settlements of
Commodity Derivatives
|
|
|
(81,311)
|
|
|
|
—
|
|
|
|
(241,486)
|
|
|
|
—
|
|
Total Realized Coal
Revenue
|
|
$
|
384,382
|
|
|
$
|
256,326
|
|
|
$
|
1,216,109
|
|
|
$
|
799,274
|
|
Operating and Other
Costs
|
|
|
229,669
|
|
|
|
188,951
|
|
|
|
692,968
|
|
|
|
549,590
|
|
Less: Other Costs
(Non-Production and non-PAMC)
|
|
|
(19,681)
|
|
|
|
(22,480)
|
|
|
|
(74,553)
|
|
|
|
(52,057)
|
|
Total Cash Cost of
Coal Sold
|
|
|
209,988
|
|
|
|
166,471
|
|
|
|
618,415
|
|
|
|
497,533
|
|
Add: Depreciation,
Depletion and Amortization
|
|
|
54,773
|
|
|
|
55,977
|
|
|
|
168,607
|
|
|
|
168,073
|
|
Less: Depreciation,
Depletion and Amortization (Non-Production
and non-PAMC)
|
|
|
(9,501)
|
|
|
|
(7,976)
|
|
|
|
(27,854)
|
|
|
|
(20,894)
|
|
Total Cost of Coal
Sold
|
|
$
|
255,260
|
|
|
$
|
214,472
|
|
|
$
|
759,168
|
|
|
$
|
644,712
|
|
Total Tons Sold (in
millions)
|
|
|
5.3
|
|
|
|
5.4
|
|
|
|
17.9
|
|
|
|
18.1
|
|
Average Realized
Coal Revenue per Ton Sold
|
|
$
|
72.83
|
|
|
$
|
47.46
|
|
|
$
|
67.81
|
|
|
$
|
44.05
|
|
Average Cash Cost of
Coal Sold per Ton
|
|
|
39.77
|
|
|
|
30.64
|
|
|
|
34.46
|
|
|
|
27.45
|
|
Depreciation, Depletion
and Amortization Costs per Ton Sold
|
|
|
8.60
|
|
|
|
9.07
|
|
|
|
7.88
|
|
|
|
8.08
|
|
Average Cost of Coal
Sold per Ton
|
|
|
48.37
|
|
|
|
39.71
|
|
|
|
42.34
|
|
|
|
35.53
|
|
Average Margin per
Ton Sold
|
|
|
24.46
|
|
|
|
7.75
|
|
|
|
25.47
|
|
|
|
8.52
|
|
Add: Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
|
8.60
|
|
|
|
9.07
|
|
|
|
7.88
|
|
|
|
8.08
|
|
Average Cash Margin
per Ton Sold
|
|
$
|
33.06
|
|
|
$
|
16.82
|
|
|
$
|
33.35
|
|
|
$
|
16.60
|
|
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, general and
administrative costs, loss on debt extinguishment,
depreciation, depletion and amortization of non-throughput assets,
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 on throughput assets. 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
September
30,
|
|
|
|
2022
|
|
|
2021
|
|
Total Costs and
Expenses
|
|
$
|
370,103
|
|
|
$
|
303,059
|
|
Less: Freight
Expense
|
|
|
(42,619)
|
|
|
|
(19,348)
|
|
Less: General and
Administrative Costs
|
|
|
(30,406)
|
|
|
|
(22,606)
|
|
Less: Loss on Debt
Extinguishment
|
|
|
(674)
|
|
|
|
(132)
|
|
Less: Interest
Expense, net
|
|
|
(11,962)
|
|
|
|
(16,045)
|
|
Less: Other Costs
(Non-Throughput)
|
|
|
(222,941)
|
|
|
|
(183,106)
|
|
Less: Depreciation,
Depletion and Amortization (Non-Throughput)
|
|
|
(53,749)
|
|
|
|
(54,775)
|
|
CMT Operating
Costs
|
|
$
|
7,752
|
|
|
$
|
7,047
|
|
Less: Depreciation,
Depletion and Amortization (Throughput)
|
|
|
(1,024)
|
|
|
|
(1,202)
|
|
CMT Operating Cash
Costs
|
|
$
|
6,728
|
|
|
$
|
5,845
|
|
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 fair value adjustments
of commodity derivative instruments. The GAAP measure most
directly comparable to adjusted EBITDA is net income (loss).
The following tables present a reconciliation of adjusted EBITDA
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
September 30, 2022
|
|
|
|
PAMC
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net Income
(Loss)
|
|
$
|
210,907
|
|
|
$
|
5,602
|
|
|
$
|
(64,388)
|
|
|
$
|
152,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
39,414
|
|
|
|
39,414
|
|
Add: Interest Expense,
net
|
|
|
(52)
|
|
|
|
1,528
|
|
|
|
10,486
|
|
|
|
11,962
|
|
Less: Interest
Income
|
|
|
(437)
|
|
|
|
—
|
|
|
|
(1,104)
|
|
|
|
(1,541)
|
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
|
|
210,418
|
|
|
|
7,130
|
|
|
|
(15,592)
|
|
|
|
201,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
49,316
|
|
|
|
1,149
|
|
|
|
4,308
|
|
|
|
54,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A (EBITDA)
|
|
$
|
259,734
|
|
|
$
|
8,279
|
|
|
$
|
(11,284)
|
|
|
$
|
256,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Stock-Based
Compensation
|
|
$
|
1,028
|
|
|
$
|
49
|
|
|
$
|
147
|
|
|
$
|
1,224
|
|
Add: Loss on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
674
|
|
|
|
674
|
|
Add: Equity Affiliate
Adjustments
|
|
|
—
|
|
|
|
—
|
|
|
|
3,500
|
|
|
|
3,500
|
|
Less: Fair Value
Adjustment of Commodity Derivative Instruments
|
|
|
(81,246)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(81,246)
|
|
Total Pre-tax
Adjustments
|
|
|
(80,218)
|
|
|
|
49
|
|
|
|
4,321
|
|
|
|
(75,848)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
179,516
|
|
|
$
|
8,328
|
|
|
$
|
(6,963)
|
|
|
$
|
180,881
|
|
|
|
Three Months Ended
September 30, 2021
|
|
|
|
PAMC
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net (Loss)
Income
|
|
$
|
(130,599)
|
|
|
$
|
4,506
|
|
|
$
|
12,304
|
|
|
$
|
(113,789)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Income Tax
Benefit
|
|
|
—
|
|
|
|
—
|
|
|
|
(40,258)
|
|
|
|
(40,258)
|
|
Add: Interest Expense,
net
|
|
|
305
|
|
|
|
1,535
|
|
|
|
14,205
|
|
|
|
16,045
|
|
Less: Interest
Income
|
|
|
—
|
|
|
|
—
|
|
|
|
(737)
|
|
|
|
(737)
|
|
(Loss) Earnings Before
Interest & Taxes (EBIT)
|
|
|
(130,294)
|
|
|
|
6,041
|
|
|
|
(14,486)
|
|
|
|
(138,739)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
50,837
|
|
|
|
1,202
|
|
|
|
3,938
|
|
|
|
55,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings Before
Interest, Taxes and DD&A (EBITDA)
|
|
$
|
(79,457)
|
|
|
$
|
7,243
|
|
|
$
|
(10,548)
|
|
|
$
|
(82,762)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Stock-Based
Compensation
|
|
$
|
1,643
|
|
|
$
|
76
|
|
|
$
|
169
|
|
|
$
|
1,888
|
|
Add: Loss on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
132
|
|
|
|
132
|
|
Add: Fair Value
Adjustment of Commodity Derivative Instruments
|
|
|
147,306
|
|
|
|
—
|
|
|
|
—
|
|
|
|
147,306
|
|
Total Pre-tax
Adjustments
|
|
|
148,949
|
|
|
|
76
|
|
|
|
301
|
|
|
|
149,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
69,492
|
|
|
$
|
7,319
|
|
|
$
|
(10,247)
|
|
|
$
|
66,564
|
|
We define net income (loss) after adjusting for the
impact of fair value adjustments of commodity derivative
instruments as net income (loss) adjusted for the impact of
current period fair value adjustments related to commodity
derivatives. The GAAP measure most directly comparable to net
income (loss) after adjusting for the impact of fair
value adjustments of commodity derivative instruments is net
income (loss).
The following table presents a reconciliation of net income
(loss) after adjusting for the impact of fair value
adjustments of 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
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net Income
(Loss)
|
|
$
|
152,121
|
|
|
$
|
(113,789)
|
|
|
$
|
273,962
|
|
|
$
|
(83,213)
|
|
Fair Value Adjustment
of Commodity Derivative Instruments
|
|
|
(81,246)
|
|
|
|
147,306
|
|
|
|
15,085
|
|
|
|
167,743
|
|
Effect of Income
Taxes
|
|
|
20,303
|
|
|
|
(36,812)
|
|
|
|
(3,770)
|
|
|
|
(41,919)
|
|
Net Income (Loss) After
Adjusting for the Impact of the Fair Value
Adjustment of Commodity Derivative Instruments
|
|
$
|
91,178
|
|
|
$
|
(3,295)
|
|
|
$
|
285,277
|
|
|
$
|
42,611
|
|
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, fair value
adjustments of 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
|
|
|
|
September 30,
2022
|
|
|
September 30,
2021
|
|
Net Income
(Loss)
|
|
$
|
391,285
|
|
|
$
|
(68,479)
|
|
Plus:
|
|
|
|
|
|
|
|
|
Interest Expense,
net
|
|
|
55,284
|
|
|
|
62,563
|
|
Depreciation,
Depletion and Amortization
|
|
|
225,117
|
|
|
|
222,776
|
|
Income
Taxes
|
|
|
104,378
|
|
|
|
(40,137)
|
|
Stock-Based
Compensation
|
|
|
8,719
|
|
|
|
6,724
|
|
Loss (Gain) on Debt
Extinguishment
|
|
|
4,361
|
|
|
|
(4,098)
|
|
Fair Value Adjustment
of Commodity Derivative Instruments
|
|
|
(100,454)
|
|
|
|
167,743
|
|
Cash Payments for
Legacy Employee Liabilities, Net of Non-Cash Expense
|
|
|
(37,007)
|
|
|
|
(31,481)
|
|
Other Adjustments to
Net Income (Loss)
|
|
|
235
|
|
|
|
245
|
|
Consolidated EBITDA per
Credit Agreement
|
|
$
|
651,918
|
|
|
$
|
315,856
|
|
|
|
|
|
|
|
|
|
|
Consolidated First
Lien Debt
|
|
$
|
150,485
|
|
|
$
|
354,005
|
|
Senior Secured Second
Lien Notes
|
|
|
124,107
|
|
|
|
149,107
|
|
MEDCO Revenue
Bonds
|
|
|
102,865
|
|
|
|
102,865
|
|
PEDFA Bonds
|
|
|
75,000
|
|
|
|
75,000
|
|
Other Debt
Arrangements
|
|
|
1,136
|
|
|
|
—
|
|
Advance Royalty
Commitments
|
|
|
4,858
|
|
|
|
2,185
|
|
Consolidated
Indebtedness per Credit Agreement
|
|
|
458,451
|
|
|
|
683,162
|
|
Less:
|
|
|
|
|
|
|
|
|
Advance Royalty
Commitments
|
|
|
4,858
|
|
|
|
2,185
|
|
Cash on
Hand
|
|
|
268,853
|
|
|
|
161,981
|
|
Consolidated Net
Indebtedness per Credit Agreement
|
|
$
|
184,740
|
|
|
$
|
518,996
|
|
|
|
|
|
|
|
|
|
|
Net Leverage Ratio
(Net Indebtedness/EBITDA)
|
|
|
0.28
|
|
|
|
1.64
|
|
Free cash flow is a non-GAAP financial measure. Management
believes that this measure is 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 does 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 table presents a reconciliation of free cash
flow to net cash provided by operations, the most
directly comparable GAAP financial measure, on a historical basis,
for each of the periods indicated (in thousands).
|
|
Three
Months
Ended
|
|
|
Three
Months
Ended
|
|
|
Nine
Months
Ended
|
|
|
Nine
Months
Ended
|
|
|
|
September
30, 2022
|
|
|
September
30, 2021
|
|
|
September
30, 2022
|
|
|
September
30, 2021
|
|
Net Cash Provided by
Operations
|
|
$
|
153,128
|
|
|
$
|
80,538
|
|
|
$
|
499,686
|
|
|
$
|
253,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
(58,395)
|
|
|
|
(45,863)
|
|
|
|
(134,456)
|
|
|
|
(103,318)
|
|
Proceeds from Sales of
Assets
|
|
|
12,356
|
|
|
|
135
|
|
|
|
19,774
|
|
|
|
12,053
|
|
Free Cash
Flow
|
|
$
|
107,089
|
|
|
$
|
34,810
|
|
|
$
|
385,004
|
|
|
$
|
161,878
|
|
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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/consol-energy-announces-results-for-the-third-quarter-2022-and-announces-dividend-of-1-05share-301663993.html
SOURCE CONSOL Energy Inc.