CANONSBURG, Pa., May 4, 2021 /PRNewswire/ -- Today, CONSOL
Energy Inc. (NYSE: CEIX) reported financial and operating results
for the period ended March 31,
2021.
First Quarter 2021 Highlights Include:
- GAAP net income of $26.4
million;
- Coal shipments improve to 6.9 million tons, the highest
level since 2Q19;
- Quarterly adjusted EBITDA1 of $106.7 million;
- Net cash provided by operating activities of $78.0 million;
- Quarterly free cash flow1 of $72.7 million;
- Total costs and expenses of $310.6
million;
- Average cash cost of coal sold per ton1 of
$24.44;
- Record quarterly export sales of 3.3 million tons, amounting
to 48% of our total sales volume;
- Proceeds from asset sales of $8.5
million supplements operating cash flow;
- Cash and cash equivalents of $91.2
million as of March 31,
2021;
- Reduction in consolidated indebtedness per credit agreement
of $62.7 million;
- Net leverage ratio1 of 1.97x as of March 31, 2021;
- Increased repurchase authorization by $50 million; and
- Accessed tax-exempt capital market for future funding needs
in an oversubscribed offering.
Management Comments
"In the first quarter of 2021, we built on our strong finish to
2020 by producing and selling nearly 7.0 million tons and expanding
our cash margins, as our customers' demand rebounded strongly,"
said Jimmy Brock, President and
Chief Executive Officer of CONSOL Energy Inc. "During the quarter,
we continued our pivot to the export markets by expanding our
relationships with a wider global end-user customer base including
penetrating new markets. In addition, we impressively achieved
a sub-$25 average cash cost of coal
sold per ton, and due to our strong net cash provided by operating
activities and free cash flow generation, we bolstered our
balance sheet by increasing our cash position, while continuing to
opportunistically accelerate debt reduction through open market
purchases of our second lien notes. Towards the end of the quarter,
we demonstrated ongoing access to the capital markets by pricing
$75 million in tax-exempt solid waste
disposal revenue bonds with an initial duration of seven years,
which will fund a portion of the ongoing expansion of our coal
refuse disposal areas at the Pennsylvania Mining Complex. Last but
not least, I am proud of our employees as they successfully
navigated a challenging 2020 and capitalized on our first real
opportunity to demonstrate our earnings potential in the first
quarter of 2021. It brought us closer to our goal of creating a
stronger balance sheet and creating value for our
shareholders."
"On the safety front, our Bailey Preparation Plant, CONSOL
Marine Terminal (CMT) and Itmann project each had ZERO recordable
incidents during the first quarter of 2021. Our total recordable
incident rate at the PAMC was improved by 44% compared to the first
quarter of 2020 and continues to track significantly and
consistently below the national average for underground bituminous
coal mines."
Pennsylvania Mining Complex (PAMC) Review and Outlook
PAMC Sales and Marketing
Our marketing team sold 6.9 million tons of coal during the
first quarter of 2021 at an average revenue per ton of $41.39, compared to 5.9 million tons at an
average revenue per ton of $43.16 in
the year-ago period. Demand for our product has continued to
steadily improve from the significant COVID-19 demand trough in the
second quarter of 2020, and we have increased our productive
capacity for the third consecutive quarter. On the volume front,
the 1.0 million ton increase in 1Q21 compared to the year-ago
period was a function of increased production and the significant
improvement in demand for our product.
In the domestic market, the first quarter of 2021 further built
upon the strong end to 2020 from a demand perspective. The average
PJM West day-ahead power price and average Henry Hub natural gas
spot price ended 1Q21 improved by 52% and 85%, respectively,
compared to the year-ago quarter. According to the U.S. Energy
Information Administration (EIA), coal's share in the electric
generation mix ended the first quarter at 23%, which is improved
from 18% in 1Q20 and 20% for full year 2020. In a trend reversal
compared to the beginning of last year, the EIA also reports that
January coal inventory levels at domestic power plants were reduced
by nearly 7% compared to year-ago levels and stood at approximately
125 million tons at the end of January. This improvement highlights
the strong domestic coal burn in 1Q21 due to the improved demand
and weather compared to the year-ago period. Furthermore, the EIA
estimates that total domestic coal demand will increase by 13% in
2021 versus 2020, which should help to further reduce domestic coal
stockpiles. We continue to see tightness in the supply of NAPP
coal, and the majority of our domestic customer stockpiles are at
or below target levels for this time of year. While natural gas
prices did not recover to the levels expected by several industry
experts, we remain optimistic about a further price improvement as
global economies recover from the COVID-19 pandemic and supply
response remains muted. Accordingly, we remain opportunistic in our
contracting strategy and modestly added additional coal sales
contracts for 2021 and 2022, bringing our contracted positions for
those years to 20.5 million and 5.6 million tons,
respectively. We continue to remain demand-driven and expect
additional spot market sales in 2H21.
On the export front, we have seen sustained improvements in the
seaborne thermal coal market since the end of the third quarter of
2020. Pet coke prices continue to remain high as a result of
reduced oil production propping up demand and pricing for NAPP coal
in high calorific value markets, particularly India. Global LNG prices also have continued
to remain elevated with the Asian spot market benchmark price (JKM)
ending the first quarter 143% above the first quarter of 2020. API2
spot prices remained relatively strong and ended 1Q21 improved by
37% compared to 1Q20. As such, 1Q21 was our highest export shipment
quarter in the history of the PAMC both in terms of total tonnage
and percentage of tons sold. We successfully placed 3.3 million
tons in the export market in the quarter, much of which was used in
industrial, non-power generation applications. Furthermore, exports
accounted for approximately 48% of our 1Q21 shipments and global
customers continued to provide competitive pricing opportunities
compared to our domestic customers. We also expanded our customer
base and are now serving several new end-users, which are showing
more promise even as we deepen our ties with existing global
customers.
Operations Summary
During the first quarter of 2021, we consistently ran four
longwalls, but as demand exceeded our production, we
opportunistically ran the fifth longwall to meet the improved
demand. This now marks the third consecutive quarter in which we
have steadily increased our production, achieving our
strongest first quarter production on record at the PAMC in spite
of running less than a full five longwall schedule. The PAMC
produced 7.0 million tons in the first quarter of 2021, which
compares to 6.0 million tons in the year-ago quarter. The
significant improvement compared to the prior year was due to the
improved demand for our product and no longwall moves in the
quarter.
CEIX's total costs and expenses during the first quarter of 2021
were $310.6 million compared to
$286.9 million in the year-ago
quarter, and CEIX's total coal revenue during the first quarter was
$285.5 million compared to
$255.5 million in the year-ago
period. Average cash cost of coal sold per ton1 for the
first quarter was $24.44, compared to
$32.41 in the year-ago quarter. The
significant reduction was due to continued tight control of
maintenance and supply costs, contractor and purchased services
costs, labor expense and project expense, as well as the
significant improvement in our operating leverage due to the
increase in sales volume.
|
|
|
Three Months
Ended
|
|
|
|
|
March 31,
2021
|
|
|
March 31,
2020
|
|
|
|
|
|
|
|
|
|
Coal
Production
|
million
tons
|
|
7.0
|
|
|
6.0
|
|
Coal Sales
|
million
tons
|
|
6.9
|
|
|
5.9
|
|
Average Revenue per
Ton Sold
|
per ton
|
|
$ 41.39
|
|
|
$ 43.16
|
|
Average Cash Cost of
Coal Sold per Ton1
|
per ton
|
|
$ 24.44
|
|
|
$ 32.41
|
|
Average Cash Margin
per Ton Sold1
|
per ton
|
|
$ 16.95
|
|
|
$ 10.75
|
|
CONSOL Marine Terminal (CMT) Review
For the first quarter of 2021, throughput volumes at the CMT
were 4.1 million tons, compared to 3.4 million tons in the year-ago
period. Terminal revenues and CMT operating cash costs1
were $18.2 million and $5.3 million, respectively, compared to
$16.5 million and $5.2 million, respectively, during the year-ago
period. Despite the increased throughput volume, the CMT employees
remained diligent in their cost control measures and held costs
relatively flat compared to the prior year quarter. Accordingly,
CMT net income and CMT adjusted EBITDA1 came in at
$9.1 million and $12.0 million, respectively, in the first quarter
of 2021 compared to $7.5 million and
$10.6 million, respectively, in the
year-ago period.
Debt Repurchases Update
During the first quarter of 2021, CEIX made mandatory repayments
of $8.7 million, $6.3 million and $5.5
million on our equipment financed debt, Term Loan A and Term
Loan B, respectively. The Term Loan B payment included an excess
free cash flow sweep of $4.8 million
associated with our 2020 performance. Additionally, CEIX spent
$9.3 million to repurchase
$10.2 million in principal amount of
its second lien notes, as these continued to trade at a modest
discount to par. This brings our total debt payments and
repurchases in the quarter to $29.8
million.
Increasing Repurchase Authorization
The management team continues to see open market debt
repurchases as a very effective tool to reduce our leverage ratio,
strengthen the balance sheet, and create long-term shareholder
value while maintaining control over the liquidity needs of the
Company. In order to help the management team continue to execute
this strategy, the board of directors of CONSOL Energy has
increased its previously authorized repurchase program by an
additional $50 million to an
aggregate amount of up to $320
million from $270 million,
while extending the duration of the program by six months to
December 31, 2022. With this
approval, CEIX now has approximately $132 million of
availability under the program to repurchase its Term Loan B,
Senior Secured Second Lien Notes and CEIX common shares.
Tax-Exempt Solid Waste Disposal Revenue Bonds
At the end of the first quarter of 2021, CEIX successfully
priced $75 million of tax-exempt
solid waste disposal revenue bonds through the Pennsylvania
Economic Development Financing Authority, which were subsequently
issued in mid-April. The bonds have a 30-year maturity and were
priced in an initial 7-year term rate period with an interest rate
of 9.0 percent. The bonds are secured on a second-priority basis,
and pari-passu with our existing outstanding second lien notes and
subordinate to our senior credit facility, by liens on
substantially all of the assets of the Company and the subsidiary
guarantors. The proceeds will be used to finance the ongoing
expansion of the coal refuse disposal areas at the Company's Bailey
Preparation Plant, which will support current and future mining at
the Pennsylvania Mining Complex. The Company expects to expend the
bond proceeds over approximately the next two years, as qualified
work is completed. We welcome this source of new capital as we move
forward.
2021 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 2021:
- 2021 targeted coal sales volume of 22-24 million
tons
- 20.5 million tons contracted at an average revenue per ton
of $42.35/ton
- Average cash cost of coal sold per ton2
expectation of $27.00-$29.00/ton
- Capital expenditures of $100-$125 million
excluding any spending on the Itmann project
First Quarter Earnings Conference Call
A conference call and webcast, during which management will
discuss the first quarter 2021 financial and operational results,
is scheduled for May 4,
2021 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 quarter ended
March 31, 2021 on May 4, 2021. 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", "Net Leverage Ratio" and
"CMT Adjusted EBITDA" are non-GAAP financial measures and "Average
Cash Cost of Coal Sold per Ton", "Average Cash Margin per Ton Sold"
and "CMT Operating Cash Costs" 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 ~658
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 March 31, 2021 and 2020 (in thousands):
|
|
Three Months Ended
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Cash Flows from
Operating Activities:
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Net Income
|
|
$
|
26,404
|
|
|
$
|
2,475
|
|
Adjustments to
Reconcile Net Income to Net Cash Provided by Operating
Activities:
|
|
|
|
|
|
|
|
|
Depreciation,
Depletion and Amortization
|
|
|
59,897
|
|
|
|
54,943
|
|
Other Non-Cash
Adjustments to Net Income
|
|
|
155
|
|
|
|
(8,138)
|
|
Changes in Working
Capital
|
|
|
(8,460)
|
|
|
|
2,120
|
|
Net Cash Provided
by Operating Activities
|
|
|
77,996
|
|
|
|
51,400
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
(13,800)
|
|
|
|
(27,178)
|
|
Proceeds from Sales of
Assets
|
|
|
8,488
|
|
|
|
—
|
|
Other Investing
Activity
|
|
|
(182)
|
|
|
|
—
|
|
Net Cash Used in
Investing Activities
|
|
|
(5,494)
|
|
|
|
(27,178)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Net Payments on
Long-Term Debt, Including Fees
|
|
|
(29,803)
|
|
|
|
(18,698)
|
|
Distributions to
Noncontrolling Interest
|
|
|
—
|
|
|
|
(5,575)
|
|
Other Financing
Activities
|
|
|
(2,072)
|
|
|
|
(1,415)
|
|
Net Cash Used in
Financing Activities
|
|
|
(31,875)
|
|
|
|
(25,688)
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents and Restricted
Cash
|
|
|
40,627
|
|
|
|
(1,466)
|
|
Cash and Cash
Equivalents and Restricted Cash at Beginning of Period
|
|
|
50,850
|
|
|
|
80,293
|
|
Cash and Cash
Equivalents and Restricted Cash at End of Period
|
|
$
|
91,477
|
|
|
$
|
78,827
|
|
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
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Total Costs and
Expenses
|
|
$
|
310,562
|
|
|
$
|
286,873
|
|
Freight
Expense
|
|
|
(27,013)
|
|
|
|
(3,147)
|
|
Selling, General and
Administrative Costs
|
|
|
(23,964)
|
|
|
|
(17,670)
|
|
Gain on Debt
Extinguishment
|
|
|
683
|
|
|
|
16,833
|
|
Interest Expense,
net
|
|
|
(15,261)
|
|
|
|
(15,671)
|
|
Other Costs
(Non-Production)
|
|
|
(18,246)
|
|
|
|
(20,882)
|
|
Depreciation,
Depletion and Amortization (Non-Production)
|
|
|
(7,883)
|
|
|
|
(9,363)
|
|
Cost of Coal
Sold
|
|
$
|
218,878
|
|
|
$
|
236,973
|
|
Depreciation,
Depletion and Amortization (Production)
|
|
|
(52,014)
|
|
|
|
(45,580)
|
|
Cash Cost of Coal
Sold
|
|
$
|
166,864
|
|
|
$
|
191,393
|
|
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
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Total Coal Revenue
(PAMC Segment)
|
|
$
|
284,465
|
|
|
$
|
255,452
|
|
Operating and Other
Costs
|
|
|
185,110
|
|
|
|
212,275
|
|
Less: Other Costs
(Non-Production)
|
|
|
(18,246)
|
|
|
|
(20,882)
|
|
Total Cash Cost of
Coal Sold
|
|
|
166,864
|
|
|
|
191,393
|
|
Add: Depreciation,
Depletion and Amortization
|
|
|
59,897
|
|
|
|
54,943
|
|
Less: Depreciation,
Depletion and Amortization (Non-Production)
|
|
|
(7,883)
|
|
|
|
(9,363)
|
|
Total Cost of Coal
Sold
|
|
$
|
218,878
|
|
|
$
|
236,973
|
|
Total Tons Sold (in
millions)
|
|
|
6.9
|
|
|
|
5.9
|
|
Average Revenue per
Ton Sold
|
|
$
|
41.39
|
|
|
$
|
43.16
|
|
Average Cash Cost of
Coal Sold per Ton
|
|
|
24.44
|
|
|
|
32.41
|
|
Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
|
7.41
|
|
|
|
7.63
|
|
Average Cost of Coal
Sold per Ton
|
|
|
31.85
|
|
|
|
40.04
|
|
Average Margin per
Ton Sold
|
|
|
9.54
|
|
|
|
3.12
|
|
Add: Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
|
7.41
|
|
|
|
7.63
|
|
Average Cash
Margin per Ton Sold
|
|
$
|
16.95
|
|
|
$
|
10.75
|
|
We define CMT operating costs as operating and other costs
related to throughput tons. CMT operating costs exclude any
indirect costs, such as 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
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Total Costs and
Expenses
|
|
$
|
310,562
|
|
|
$
|
286,873
|
|
Freight
Expense
|
|
|
(27,013)
|
|
|
|
(3,147)
|
|
Selling, General and
Administrative Costs
|
|
|
(23,964)
|
|
|
|
(17,670)
|
|
Gain on Debt
Extinguishment
|
|
|
683
|
|
|
|
16,833
|
|
Interest Expense,
net
|
|
|
(15,261)
|
|
|
|
(15,671)
|
|
Other Costs
(Non-Throughput)
|
|
|
(179,778)
|
|
|
|
(207,094)
|
|
Depreciation,
Depletion and Amortization (Non-Throughput)
|
|
|
(58,683)
|
|
|
|
(53,686)
|
|
CMT Operating
Costs
|
|
$
|
6,546
|
|
|
$
|
6,438
|
|
Depreciation,
Depletion and Amortization (Throughput)
|
|
|
(1,214)
|
|
|
|
(1,257)
|
|
CMT Operating Cash
Costs
|
|
$
|
5,332
|
|
|
$
|
5,181
|
|
|
|
|
|
|
|
|
|
|
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 (in
thousands).
|
|
Three Months Ended
March 31, 2021
|
|
|
|
PA Mining
Complex
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net Income
(Loss)
|
|
$
|
42,450
|
|
|
$
|
9,149
|
|
|
$
|
(25,195)
|
|
|
$
|
26,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
5,185
|
|
|
|
5,185
|
|
Add: Interest
Expense, net
|
|
|
642
|
|
|
|
1,537
|
|
|
|
13,082
|
|
|
|
15,261
|
|
Less: Interest
Income
|
|
|
—
|
|
|
|
—
|
|
|
|
(858)
|
|
|
|
(858)
|
|
Earnings (Loss)
Before Interest & Taxes (EBIT)
|
|
|
43,092
|
|
|
|
10,686
|
|
|
|
(7,786)
|
|
|
|
45,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
54,781
|
|
|
|
1,214
|
|
|
|
3,902
|
|
|
|
59,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss)
Before Interest, Taxes and DD&A (EBITDA)
|
|
$
|
97,873
|
|
|
$
|
11,900
|
|
|
$
|
(3,884)
|
|
|
$
|
105,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-Based
Compensation
|
|
$
|
1,312
|
|
|
$
|
61
|
|
|
$
|
136
|
|
|
$
|
1,509
|
|
Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
(683)
|
|
|
|
(683)
|
|
Total Pre-tax
Adjustments
|
|
|
1,312
|
|
|
|
61
|
|
|
|
(547)
|
|
|
|
826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
99,185
|
|
|
$
|
11,961
|
|
|
$
|
(4,431)
|
|
|
$
|
106,715
|
|
|
|
|
|
Three Months Ended
March 31, 2020
|
|
|
|
PA Mining
Complex
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net Income
(Loss)
|
|
$
|
10,875
|
|
|
$
|
7,510
|
|
|
$
|
(15,910)
|
|
|
$
|
2,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
1,908
|
|
|
|
1,908
|
|
Add: Interest
Expense, net
|
|
|
—
|
|
|
|
1,544
|
|
|
|
14,127
|
|
|
|
15,671
|
|
Less: Interest
Income
|
|
|
—
|
|
|
|
—
|
|
|
|
(244)
|
|
|
|
(244)
|
|
Earnings (Loss)
Before Interest & Taxes (EBIT)
|
|
|
10,875
|
|
|
|
9,054
|
|
|
|
(119)
|
|
|
|
19,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
48,418
|
|
|
|
1,257
|
|
|
|
5,268
|
|
|
|
54,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Interest, Taxes and DD&A (EBITDA)
|
|
$
|
59,293
|
|
|
$
|
10,311
|
|
|
$
|
5,149
|
|
|
$
|
74,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock/Unit-Based
Compensation
|
|
$
|
4,286
|
|
|
$
|
243
|
|
|
$
|
485
|
|
|
$
|
5,014
|
|
Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
(16,833)
|
|
|
|
(16,833)
|
|
Total Pre-tax
Adjustments
|
|
|
4,286
|
|
|
|
243
|
|
|
|
(16,348)
|
|
|
|
(11,819)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
63,579
|
|
|
$
|
10,554
|
|
|
$
|
(11,199)
|
|
|
$
|
62,934
|
|
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
|
|
|
|
March 31,
2021
|
|
|
March 31,
2020
|
|
Net
Income
|
|
$
|
10,715
|
|
|
$
|
75,730
|
|
Plus:
|
|
|
|
|
|
|
|
|
Interest Expense,
net
|
|
|
60,776
|
|
|
|
63,539
|
|
Depreciation,
Depletion and Amortization
|
|
|
215,714
|
|
|
|
211,316
|
|
Income
Taxes
|
|
|
7,249
|
|
|
|
7,297
|
|
Stock/Unit-Based
Compensation
|
|
|
8,074
|
|
|
|
10,324
|
|
Gain on Debt
Extinguishment
|
|
|
(5,202)
|
|
|
|
(15,521)
|
|
CCR Adjusted EBITDA
per Credit Agreement
|
|
|
—
|
|
|
|
(88,002)
|
|
Cash Distributions
from CONSOL Coal Resources LP
|
|
|
—
|
|
|
|
26,716
|
|
Cash Payments for
Legacy Employee Liabilities, Net of Non-Cash Expense
|
|
|
(21,208)
|
|
|
|
(19,750)
|
|
Other Adjustments to
Net Income
|
|
|
3,309
|
|
|
|
8,759
|
|
Consolidated EBITDA
per Credit Agreement
|
|
$
|
279,427
|
|
|
$
|
280,408
|
|
|
|
|
|
|
|
|
|
|
Consolidated First
Lien Debt
|
|
$
|
382,454
|
|
|
$
|
406,077
|
|
Senior Secured Second
Lien Notes
|
|
|
156,957
|
|
|
|
178,452
|
|
MEDCO Revenue
Bonds
|
|
|
102,865
|
|
|
|
102,865
|
|
Advance Royalty
Commitments
|
|
|
2,185
|
|
|
|
1,895
|
|
Consolidated
Indebtedness per Credit Agreement
|
|
|
644,461
|
|
|
|
689,289
|
|
Less:
|
|
|
|
|
|
|
|
|
Advance Royalty
Commitments
|
|
|
2,185
|
|
|
|
1,895
|
|
Cash on
Hand
|
|
|
91,174
|
|
|
|
77,943
|
|
Consolidated Net
Indebtedness per Credit Agreement
|
|
$
|
551,102
|
|
|
$
|
609,451
|
|
|
|
|
|
|
|
|
|
|
Net Leverage Ratio
(Net Indebtedness/EBITDA)
|
|
|
1.97
|
|
|
|
2.17
|
|
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 (in thousands).
|
|
Three Months
Ended
|
|
Organic Free Cash
Flow
|
|
March 31,
2021
|
|
|
March 31,
2020
|
|
Net Cash Provided
by Operations
|
|
$
|
77,996
|
|
|
$
|
51,400
|
|
Capital
Expenditures
|
|
|
(13,800)
|
|
|
|
(27,178)
|
|
Organic Free Cash
Flow
|
|
$
|
64,196
|
|
|
$
|
24,222
|
|
|
|
|
|
|
|
|
|
|
Distributions to
Noncontrolling Interest
|
|
|
—
|
|
|
|
(5,575)
|
|
Organic Free Cash
Flow Net to CEIX Shareholders
|
|
$
|
64,196
|
|
|
$
|
18,647
|
|
|
|
Free Cash
Flow
|
|
March 31,
2021
|
|
|
March 31,
2020
|
|
Net Cash Provided
by Operations
|
|
$
|
77,996
|
|
|
$
|
51,400
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
(13,800)
|
|
|
|
(27,178)
|
|
Proceeds from Sales
of Assets
|
|
|
8,488
|
|
|
|
—
|
|
Free Cash
Flow
|
|
$
|
72,684
|
|
|
$
|
24,222
|
|
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.