CANONSBURG, Pa., Feb. 6, 2024
/PRNewswire/ -- Today, CONSOL Energy Inc. (NYSE: CEIX) reported
financial and operating results for the fiscal quarter and year
ended December 31, 2023.
Fourth Quarter 2023 Highlights Include:
- GAAP net income of $157.1
million and GAAP dilutive earnings per share of $5.05;
- Quarterly adjusted EBITDA1 of $239.9 million;
- Net cash provided by operating activities of $219.1 million;
- Quarterly free cash flow1 of $165.0 million;
- Total revenue and other income of $649.4 million;
- Pennsylvania Mining Complex (PAMC) produced 6.6 million tons
and shipped 6.8 million tons;
- Itmann Complex sold 159 thousand tons compared to 123
thousand tons during the third quarter;
- 85% of 4Q23 free cash flow1 returned to
shareholders via stock repurchases, including a $30.0 million 10b5-1 plan for the month of
January 2024;
- PAMC improved its contracted position to 22.0 million tons
in 2024 and 13.0 million tons in 2025; and
- Itmann Mining Complex improved its contracted position to
571 thousand tons in 2024.
Full Year 2023 Highlights Include:
- GAAP net income of $655.9
million and GAAP dilutive earnings per share of $19.79;
- Adjusted EBITDA1 of $1,047.7 million;
- Net cash provided by operating activities of $858.0 million;
- Free cash flow1 of $686.9
million;
- Total revenue and other income of $2,568.9 million;
- 73% of 2023 free cash flow1 returned to
shareholders via stock repurchases and dividends for an aggregate
$500.9 million from January 1, 2023 through January 31, 2024;
- Repurchased 5.2 million shares of CEIX common stock at a
weighted average price of $75.69 per
share;
- Reduced total debt outstanding by $189.0 million, including $99.1 million and $63.6
million to fully retire our Second Lien Notes and Term Loan
B, respectively;
- Record annual CONSOL Marine Terminal (CMT) net income of
$69.3 million, adjusted
EBITDA1 of $80.3 million
and throughput of 19.0 million tons, including 15.7 million tons of
PAMC coal shipments;
- 70% of annual total recurring revenues and other
income1 derived from export sales and 60% derived from
non-power generation sales;
- Amended and upsized our revolving credit facility to
$355 million through 2026;
and
- PAMC sales volume of 26.0 million tons, an increase of 8%
compared to 2022 and the highest level in the post-COVID
era.
Management Comments
"During the fourth quarter of 2023, we delivered a strong
operational performance to close out our third consecutive year of
production and sales volume growth for CONSOL Energy," said
Jimmy Brock, Chief Executive Officer
of CONSOL Energy Inc. "More importantly, we generated over
$1 billion dollars in adjusted
EBITDA1 and $687 million
in free cash flow1 during 2023. The majority of this
free cash flow1 was deployed toward returning value to
our shareholders. We repurchased more than 5 million shares of our
common stock, paid out $75 million in
dividends, and made debt repayments of approximately $190 million during the year, which fully retired
our Term Loan B and Second Lien Notes. We executed a significant
shift in our coal sales mix toward the export market, which led to
record annual throughput volume and revenue at our CONSOL Marine
Terminal and 70% of our total recurring revenues and other
income1 came from export sales. Looking forward, we
expect improving contributions from our Itmann Mining Complex as it
moves beyond its mains development and we are able to grow
third-party coal sales processed through our preparation
plant."
"On the safety front, our Bailey Preparation Plant and CONSOL
Marine Terminal each had ZERO employee recordable incidents for the
full year 2023. Our 2023 total recordable incident rate across our
coal mining segment was approximately 33% below the national
average for underground bituminous coal mines (based on the latest
available MSHA data)."
Pennsylvania Mining Complex Review and Outlook
|
|
Three Months
Ended
|
|
For the Year
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
Total Coal Revenue
(PAMC Segment)
|
thousands
|
$
509,007
|
|
$
516,289
|
|
$ 2,024,610
|
|
$ 1,973,884
|
Settlements of
Commodity Derivatives
|
thousands
|
$
—
|
|
$
(47,742)
|
|
$
—
|
|
$
(289,228)
|
Realized Coal
Revenue1
|
thousands
|
$
509,007
|
|
$
468,547
|
|
$ 2,024,610
|
|
$ 1,684,656
|
Operating and Other
Costs
|
thousands
|
$
306,519
|
|
$
256,254
|
|
$ 1,120,065
|
|
$
949,222
|
Total Cash Cost of Coal
Sold1
|
thousands
|
$
249,283
|
|
$
215,990
|
|
$
939,892
|
|
$
834,405
|
Coal
Production
|
million tons
|
6.6
|
|
6.1
|
|
26.1
|
|
23.9
|
Coal Sales
|
million tons
|
6.8
|
|
6.2
|
|
26.0
|
|
24.1
|
Average Realized Coal
Revenue per Ton Sold1
|
per ton
|
$
74.64
|
|
$
75.92
|
|
$
77.74
|
|
$
69.89
|
Average Cash Cost of
Coal Sold per Ton1
|
per ton
|
$
36.28
|
|
$
34.89
|
|
$
36.10
|
|
$
34.56
|
Average Cash Margin per
Ton Sold1
|
per ton
|
$
38.36
|
|
$
41.03
|
|
$
41.64
|
|
$
35.33
|
PAMC Sales and Marketing
CEIX sold 6.8 million tons of PAMC coal during the fourth
quarter of 2023, generating realized coal revenue1 of
$509.0 million for the PAMC segment
and an average realized coal revenue per ton sold1 of
$74.64. This compares to 6.2 million
tons sold, generating realized coal revenue1 of
$468.5 million and an average
realized coal revenue per ton sold1 of $75.92 in the year-ago period. The improvement in
realized coal revenue1 was driven by the increased sales
tonnage during the quarter due to the availability of the fifth
longwall in 2023 versus the prior year, which provided increased
productive capacity and helped to mitigate the impact of longwall
moves.
On the marketing front, demand for our product in the power
generation markets rebounded modestly during the fourth quarter
compared to the third quarter. Domestically, Henry Hub natural gas
spot prices and PJM West day-ahead power prices improved 6% and 9%,
respectively, in the fourth quarter compared to 3Q23. Similarly, in
the export market, API2 spot prices averaged $125/metric ton during the quarter, a 7% increase
versus the third quarter of 2023. As such, 58% of our total
recurring revenues and other income1 during the fourth
quarter was derived from sales into non-power generation
applications, a slight reduction from 64% in 3Q23. We also took
advantage of ongoing met coal pricing strength to place 10% of our
PAMC volume into the crossover metallurgical market during
4Q23.
Throughout 2023, we leveraged the many end-use markets into
which our high-quality PAMC product is sold and pivoted more tons
into the export market than at any time in our history. We finished
2023 with 15.7 million tons, or 60%, of Pennsylvania Mining Complex
product moving into the export market. From a revenue standpoint,
export sales in aggregate accounted for 66% of our total coal
revenue during the year with 35% of total coal revenue coming from
the export industrial market and 14% from export metallurgical
sales. For 2023, 70% of our total recurring revenues and other
income1 has been derived from sales into the export
markets.
Additionally, during 4Q23, we strengthened our forward contract
book at the PAMC and secured an additional 4.7 million tons for
delivery through 2028. We now have 22.0 million tons contracted for
2024 and 13.0 million tons contracted for 2025.
Operations Summary
During the fourth quarter of 2023, we produced 6.6 million tons
at the Pennsylvania Mining Complex, compared to 6.1 million tons in
the year-ago period in which we had only four longwalls operating
versus all five currently in operation. This brought total PAMC
production to 26.1 million tons in 2023 compared to 23.9 million
tons in the prior year.
Total coal revenue for the PAMC segment during the fourth
quarter of 2023 was $509.0 million,
compared to $516.3 million in the
year-ago quarter. After adjusting for the effect of settlements of
commodity derivatives, PAMC total realized coal revenue1
in 4Q23 was $509.0 million, compared
to $468.5 million in 4Q22. Average
cash cost of coal sold per ton1 at the PAMC for the
fourth quarter of 2023 was $36.28,
compared to $34.89 in the year-ago
quarter. The increase was due to ongoing inflationary pressures on
costs for supplies, maintenance and contractor labor, partially
offset by reduced power costs.
Our full-year 2023 average cash cost of coal sold per
ton1 at the PAMC came in at $36.10, compared to $34.56 for full-year 2022. The increase for the
year was due to persistent inflationary pressures on supply and
maintenance costs and contractor labor.
CONSOL Marine Terminal Review
For the fourth quarter of 2023, throughput volume at the CMT was
4.7 million tons, compared to 3.6 million tons in the year-ago
period due to the continued shift of PAMC sales volumes into the
export market. Terminal revenues and CMT total costs and expenses
were $25.4 million and $10.7 million, respectively, compared to
$20.9 million and $10.3 million, respectively, during the year-ago
period. CMT operating cash costs1 were $6.8 million in 4Q23, compared to $6.4 million in the prior-year period. CONSOL
Marine Terminal net income and CONSOL Marine Terminal Adjusted
EBITDA1 were $18.3 million
and $21.0 million, respectively, in
the fourth quarter of 2023 compared to $11.7
million and $14.4 million,
respectively, in the year-ago period. The improved financial
performance was directly related to the significant increase in
throughput volume compared to the prior-year quarter.
For the full year of 2023, CMT achieved multiple records.
Terminal revenue came in at $106.2
million, the highest in its history. Additionally, the
Terminal set a new throughput tonnage record in 2023, finishing the
year with 19.0 million tons. These accomplishments led to record
financial results in 2023. CONSOL Marine Terminal net income and
CONSOL Marine Terminal Adjusted EBITDA1 were
$69.3 million and $80.3 million, respectively, compared to
$41.2 million and $52.3 million, respectively, in 2022.
Itmann Update
The Itmann Mining Complex once again increased sales on a
quarter-over-quarter basis during the fourth quarter of 2023. The
Complex sold 159 thousand tons of Itmann and third-party coal in
4Q23 versus 123 thousand tons in 3Q23. For the full year 2023, the
Complex produced 316 thousand tons of coal and sold 515 thousand
tons of Itmann and third-party coal in aggregate. During the fourth
quarter, long-term mains development continued in all three mining
sections which requires cutting additional height and rock and in
turn slows the mining rates. We again operated two of the three
continuous miner sections as true super sections during the fourth
quarter as we continued to work toward fully staffing the mine.
Moving forward, we expect to increase our complex sales volume this
year compared to 2023, and the Itmann Mining Complex currently has
571 thousand tons contracted for 2024.
Shareholder Returns Update
During the fourth quarter of 2023, CEIX repurchased 1.1 million
shares of its common stock in the open market for $111.0 million at a weighted average price of
$100.84 per share. Additionally,
through a 10b5-1 plan in place for the month of January, CEIX
repurchased an additional 307 thousand shares of its common stock
for $30.0 million at a weighted
average price of $97.73 per share.
Therefore, with the free cash flow1 generated during the
fourth quarter of 2023, CEIX repurchased 1.4 million shares of its
common stock for $141.0 million at a
weighted average price of $100.16 per
share. As a result, CEIX allocated approximately 85% of its
quarterly free cash flow1 toward share repurchases. From
the beginning of December 2022
through January 31, 2024, CEIX has
repurchased 5.7 million shares of its common stock, or
approximately 16% of its public float as of year-end 2022, at a
weighted average price of $76.63 per
share. Consistent with the Company's previously announced plan to
return value to CEIX shareholders through repurchases of CEIX
common stock rather than dividends, the Company is not declaring a
quarterly dividend at this time.
Debt Repurchases Update
During the fourth quarter of 2023, we made repayments of
$6.1 million on our
equipment-financed and other debt. This brings our total debt
repayments and repurchases for the year to $189.0 million (excluding the premium paid on the
Second Lien Notes). Of note during 2023, we fully retired our Term
Loan B and Second Lien Notes, and as of December 31, 2023, CEIX had a net cash position,
including short-term investments, of $88.4
million.
2024 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 2024:
- PAMC coal sales volume of 25.0-27.0 million tons
- PAMC average realized coal revenue per ton sold2
expectation of $62.50-$66.50
- PAMC average cash cost of coal sold per ton2
expectation of $36.50-$38.50
- Itmann Mining Complex coal sales volume of 600-800 thousand
tons
- Itmann Mining Complex average cash cost of coal sold per
ton2 expectation of $120.00-$140.00
- Total capital expenditures: $175-$200
million
Fourth Quarter Earnings Conference Call
A conference call and webcast, during which management will
discuss the fourth quarter and full year 2023 financial and
operational results, is scheduled for February 6, 2024 at 10:00
AM eastern time. Prepared remarks by members of management
will be followed by a question and answer session. Interested
parties may listen via webcast on the "Events and Presentations"
page of our website, www.consolenergy.com. An archive of the
webcast will be available for 30 days after the event.
Participant dial in (toll free) 1-877-226-2859
Participant international dial in 1-412-542-4134
Availability of Additional Information
Please refer to our website, www.consolenergy.com, for
additional information regarding the company. In addition, we may
provide other information about the company from time to time on
our website.
We will also file our Form 10-K with the Securities and Exchange
Commission (SEC) reporting our results for the period ended
December 31, 2023 on February 9, 2024. 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", "CONSOL Marine Terminal
Adjusted EBITDA", "CMT Operating Cash Costs", "Realized Coal
Revenue", "Total Recurring Revenues and Other Income" and "Total
Cash Cost of Coal Sold" are non-GAAP financial measures and
"Average Realized Coal Revenue per Ton Sold", "Average Cash Cost of
Coal Sold per Ton" and "Average Cash Margin per Ton Sold" are
operating ratios derived from non-GAAP financial measures, each of
which are reconciled to the most directly comparable GAAP financial
measures below, under the caption "Reconciliation of Non-GAAP
Financial Measures".
2 CEIX is unable to provide a reconciliation of PAMC Average
Realized Coal Revenue per Ton Sold, PAMC Average Cash Cost of Coal
Sold per Ton and Itmann Mining Complex Average Cash Cost of Coal
Sold per Ton guidance, which are operating ratios derived from
non-GAAP financial measures, due to the unknown effect, timing and
potential significance of certain income statement items.
About CONSOL Energy Inc.
CONSOL Energy Inc. (NYSE: CEIX) is a Canonsburg, Pennsylvania-based producer and
exporter of high-Btu bituminous thermal coal and metallurgical
coal. It owns and operates some of the most productive longwall
mining operations in the Northern Appalachian Basin. CONSOL's
flagship operation is the Pennsylvania Mining Complex, which has
the capacity to produce approximately 28.5 million tons of coal per
year and is comprised of 3 large-scale underground mines: Bailey
Mine, Enlow Fork Mine, and Harvey Mine. CONSOL recently developed
the Itmann Mine in the Central Appalachian Basin, which has the
capacity when fully operational to produce roughly 900 thousand
tons per annum of premium, low-vol metallurgical coking coal. The
company also owns and operates the CONSOL Marine Terminal, which is
located in the port of Baltimore
and has a throughput capacity of approximately 20 million tons per
year. In addition to the ~584 million reserve tons associated with
the Pennsylvania Mining Complex and the ~28 million reserve tons
associated with the Itmann Mining Complex, the company controls
approximately 1.3 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 Income
The following table presents a condensed consolidated statement
of income for the three months and years ended December 31, 2023 and 2022 (in thousands):
|
|
Three Months
Ended
December 31,
|
|
For the Year
Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenue and Other
Income:
|
|
|
|
|
|
|
|
|
Coal Revenue
|
|
$
532,270
|
|
$
536,994
|
|
$ 2,106,366
|
|
$ 2,018,662
|
Terminal
Revenue
|
|
25,411
|
|
20,899
|
|
106,166
|
|
78,915
|
Freight
Revenue
|
|
76,668
|
|
51,022
|
|
294,103
|
|
182,441
|
Gain (Loss) on
Commodity Derivatives, net
|
|
—
|
|
19,547
|
|
—
|
|
(237,024)
|
Other Income
|
|
15,090
|
|
8,689
|
|
62,242
|
|
58,943
|
Total Revenue and
Other Income
|
|
649,439
|
|
637,151
|
|
2,568,877
|
|
2,101,937
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
Operating and Other
Costs
|
|
306,519
|
|
256,254
|
|
1,120,065
|
|
949,222
|
Depreciation, Depletion
and Amortization
|
|
58,446
|
|
58,271
|
|
241,317
|
|
226,878
|
Freight
Expense
|
|
76,668
|
|
51,022
|
|
294,103
|
|
182,441
|
General and
Administrative Costs
|
|
23,712
|
|
21,777
|
|
103,470
|
|
116,696
|
Loss on Debt
Extinguishment
|
|
—
|
|
1,262
|
|
2,725
|
|
5,623
|
Interest
Expense
|
|
5,246
|
|
13,205
|
|
29,325
|
|
52,640
|
Total Costs and
Expenses
|
|
470,591
|
|
401,791
|
|
1,791,005
|
|
1,533,500
|
|
|
|
|
|
|
|
|
|
Earnings Before
Income Tax
|
|
178,848
|
|
235,360
|
|
777,872
|
|
568,437
|
Income Tax
Expense
|
|
21,781
|
|
42,343
|
|
121,980
|
|
101,458
|
Net
Income
|
|
$
157,067
|
|
$
193,017
|
|
$
655,892
|
|
$
466,979
|
|
|
|
|
|
|
|
|
|
Earnings per
Share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
5.09
|
|
$
5.54
|
|
$
19.91
|
|
$
13.41
|
Dilutive
|
|
$
5.05
|
|
$
5.39
|
|
$
19.79
|
|
$
13.07
|
Condensed Consolidated Balance Sheets
The following table presents a condensed consolidated balance
sheet as of December 31, 2023 and
2022 (in thousands):
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
199,371
|
|
$
273,070
|
Trade Receivables,
net
|
|
147,612
|
|
158,127
|
Other Current
Assets
|
|
254,023
|
|
167,286
|
Total Current
Assets
|
|
601,006
|
|
598,483
|
Total Property, Plant
and Equipment - Net
|
|
1,903,123
|
|
1,960,082
|
Total Other
Assets
|
|
170,874
|
|
145,812
|
TOTAL
ASSETS
|
|
$ 2,675,003
|
|
$ 2,704,377
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Total Current
Liabilities
|
|
$
443,724
|
|
$
448,798
|
Total Long-Term
Debt
|
|
186,067
|
|
355,335
|
Total Other
Liabilities
|
|
701,770
|
|
734,418
|
Total Equity
|
|
1,343,442
|
|
1,165,826
|
TOTAL LIABILITIES
AND EQUITY
|
|
$ 2,675,003
|
|
$ 2,704,377
|
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, 2023 and 2022 (in thousands):
|
Three Months
Ended
December 31,
|
|
For the Year
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash Flows from
Operating Activities:
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net Income
|
$
157,067
|
|
$
193,017
|
|
$
655,892
|
|
$
466,979
|
Adjustments to
Reconcile Net Income to Net Cash Provided by Operating
Activities:
|
|
|
|
|
|
|
|
Depreciation,
Depletion and Amortization
|
58,446
|
|
58,271
|
|
241,317
|
|
226,878
|
Other Non-Cash
Adjustments to Net Income
|
14,731
|
|
(28,402)
|
|
19,961
|
|
(11,699)
|
Changes in Working
Capital
|
(11,113)
|
|
(71,582)
|
|
(59,221)
|
|
(31,168)
|
Net Cash Provided
by Operating Activities
|
219,131
|
|
151,304
|
|
857,949
|
|
650,990
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(50,042)
|
|
(37,050)
|
|
(167,791)
|
|
(171,506)
|
Proceeds from Sales of
Assets
|
(1,985)
|
|
1,764
|
|
4,255
|
|
21,538
|
Other Investing
Activity
|
(11,682)
|
|
9,423
|
|
(95,896)
|
|
7,790
|
Net Cash Used in
Investing Activities
|
(63,709)
|
|
(25,863)
|
|
(259,432)
|
|
(142,178)
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Net Payments on
Long-Term Debt, Including Fees
|
(6,097)
|
|
(82,257)
|
|
(191,738)
|
|
(294,362)
|
Repurchases of Common
Stock
|
(121,997)
|
|
—
|
|
(399,379)
|
|
—
|
Dividends
|
—
|
|
(36,615)
|
|
(75,474)
|
|
(71,486)
|
Other Financing
Activities
|
(54)
|
|
(265)
|
|
(15,610)
|
|
(14,218)
|
Net Cash Used in
Financing Activities
|
(128,148)
|
|
(119,137)
|
|
(682,201)
|
|
(380,066)
|
Net Increase
(Decrease) in Cash and Cash Equivalents and Restricted
Cash
|
27,274
|
|
6,304
|
|
(83,684)
|
|
128,746
|
Cash and Cash
Equivalents and Restricted Cash at Beginning of Period
|
215,994
|
|
320,648
|
|
326,952
|
|
198,206
|
Cash and Cash
Equivalents and Restricted Cash at End of Period
|
$
243,268
|
|
$
326,952
|
|
$
243,268
|
|
$
326,952
|
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. 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 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 operating and
other costs.
The following table presents a reconciliation for the PAMC
segment of cash cost of coal sold, cost of coal sold and average
cash cost of coal sold per ton to operating and other costs, 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,
|
|
For the Year
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating and Other
Costs
|
$
306,519
|
|
$
256,254
|
|
$ 1,120,065
|
|
$
949,222
|
Less: Other Costs
(Non-Production and non-PAMC)
|
(57,236)
|
|
(40,264)
|
|
(180,173)
|
|
(114,817)
|
Cash Cost of Coal
Sold
|
$
249,283
|
|
$
215,990
|
|
$
939,892
|
|
$
834,405
|
Add: Depreciation,
Depletion and Amortization (PAMC Production)
|
49,611
|
|
49,104
|
|
190,962
|
|
189,857
|
Cost of Coal
Sold
|
$
298,894
|
|
$
265,094
|
|
$ 1,130,854
|
|
$ 1,024,262
|
Total Tons Sold (in
millions)
|
6.8
|
|
6.2
|
|
26.0
|
|
24.1
|
Average Cost of Coal
Sold per Ton
|
$
43.83
|
|
$
42.96
|
|
$
43.42
|
|
$
42.49
|
Less:
Depreciation, Depletion and Amortization Costs per Ton
Sold
|
7.55
|
|
8.07
|
|
7.32
|
|
7.93
|
Average Cash Cost of
Coal Sold per Ton
|
$
36.28
|
|
$
34.89
|
|
$
36.10
|
|
$
34.56
|
We evaluate our average realized coal revenue per ton sold and
average cash margin per ton sold on a per-ton basis. We define
realized coal revenue as total coal revenue, net of settlements of
commodity derivatives. 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 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 realized coal revenue, average realized coal
revenue 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 realized coal revenue, average realized coal revenue 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,
|
|
For the Year
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Total Coal Revenue
(PAMC Segment)
|
$
509,007
|
|
$
516,289
|
|
$ 2,024,610
|
|
$ 1,973,884
|
Less: Settlements of
Commodity Derivatives
|
—
|
|
(47,742)
|
|
—
|
|
(289,228)
|
Realized Coal
Revenue
|
509,007
|
|
468,547
|
|
2,024,610
|
|
1,684,656
|
Operating and Other
Costs
|
306,519
|
|
256,254
|
|
1,120,065
|
|
949,222
|
Less: Other Costs
(Non-Production and non-PAMC)
|
(57,236)
|
|
(40,264)
|
|
(180,173)
|
|
(114,817)
|
Cash Cost of Coal
Sold
|
$
249,283
|
|
$
215,990
|
|
$
939,892
|
|
$
834,405
|
Total Tons Sold (in
millions)
|
6.8
|
|
6.2
|
|
26.0
|
|
24.1
|
Average Realized
Coal Revenue per Ton Sold
|
$
74.64
|
|
$
75.92
|
|
$
77.74
|
|
$
69.89
|
Less: Average Cash Cost
of Coal Sold per Ton
|
36.28
|
|
34.89
|
|
36.10
|
|
34.56
|
Average Cash Margin
per Ton Sold
|
$
38.36
|
|
$
41.03
|
|
$
41.64
|
|
$
35.33
|
We define CMT operating costs as operating and other costs
related to throughput tons. CMT operating costs exclude any
indirect costs 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 operating and other
costs.
The following table presents a reconciliation of CMT operating
costs and CMT operating cash costs to operating and other costs,
the most directly comparable GAAP financial measure, on a
historical basis, for each of the periods indicated (in
thousands).
|
Three Months
Ended
December 31,
|
|
For the Year
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating and Other
Costs
|
$
306,519
|
|
$
256,254
|
|
$ 1,120,065
|
|
$
949,222
|
Less: Other Costs
(Non-Throughput)
|
(298,651)
|
|
(248,818)
|
|
(1,088,579)
|
|
(920,195)
|
CMT Operating
Costs
|
$
7,868
|
|
$
7,436
|
|
$
31,486
|
|
$
29,027
|
Less: Depreciation,
Depletion and Amortization (Throughput)
|
(1,045)
|
|
(1,018)
|
|
(4,227)
|
|
(4,269)
|
CMT Operating Cash
Costs
|
$
6,823
|
|
$
6,418
|
|
$
27,259
|
|
$
24,758
|
We define adjusted EBITDA as (i) net income (loss) plus income
taxes, interest expense and depreciation, depletion and
amortization, as adjusted for (ii) certain non-cash items, such as
stock-based compensation, loss on debt extinguishment 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
December 31, 2023
|
|
PAMC
|
|
CONSOL
Marine
Terminal
|
|
Other
|
|
Total
Company
|
Net Income
(Loss)
|
$
183,181
|
|
$
18,272
|
|
$
(44,386)
|
|
$
157,067
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
—
|
|
—
|
|
21,781
|
|
21,781
|
Add: Interest
Expense
|
—
|
|
1,521
|
|
3,725
|
|
5,246
|
Less: Interest
Income
|
(700)
|
|
—
|
|
(3,495)
|
|
(4,195)
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
182,481
|
|
19,793
|
|
(22,375)
|
|
179,899
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
50,531
|
|
1,158
|
|
6,757
|
|
58,446
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A (EBITDA)
|
$
233,012
|
|
$
20,951
|
|
$
(15,618)
|
|
$
238,345
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Add: Stock-Based
Compensation
|
$
1,330
|
|
48
|
|
$
207
|
|
$
1,585
|
Total Pre-tax
Adjustments
|
1,330
|
|
48
|
|
207
|
|
1,585
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
234,342
|
|
$
20,999
|
|
$
(15,411)
|
|
$
239,930
|
|
Three Months Ended
December 31, 2022
|
|
PAMC
|
|
CONSOL
Marine
Terminal
|
|
Other
|
|
Total
Company
|
Net Income
(Loss)
|
$
247,800
|
|
$
11,654
|
|
$
(66,437)
|
|
$
193,017
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
—
|
|
—
|
|
42,343
|
|
42,343
|
Add: Interest
Expense
|
(205)
|
|
1,527
|
|
11,883
|
|
13,205
|
Less: Interest
Income
|
(553)
|
|
—
|
|
(1,169)
|
|
(1,722)
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
247,042
|
|
13,181
|
|
(13,380)
|
|
246,843
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
50,583
|
|
1,148
|
|
6,540
|
|
58,271
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A (EBITDA)
|
$
297,625
|
|
$
14,329
|
|
$
(6,840)
|
|
$
305,114
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Add: Stock-Based
Compensation
|
$
1,005
|
|
$
48
|
|
$
143
|
|
$
1,196
|
Add: Loss on Debt
Extinguishment
|
—
|
|
—
|
|
1,262
|
|
1,262
|
Less: Fair Value
Adjustment of Commodity Derivative Instruments
|
(67,289)
|
|
—
|
|
—
|
|
(67,289)
|
Total Pre-tax
Adjustments
|
(66,284)
|
|
48
|
|
1,405
|
|
(64,831)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
231,341
|
|
$
14,377
|
|
$
(5,435)
|
|
$
240,283
|
|
For the Year Ended
December 31, 2023
|
|
PAMC
|
|
CONSOL
Marine
Terminal
|
|
Other
|
|
Total
Company
|
Net Income
(Loss)
|
$
810,234
|
|
$
69,253
|
|
$
(223,595)
|
|
$
655,892
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
—
|
|
—
|
|
121,980
|
|
121,980
|
Add: Interest
Expense
|
—
|
|
6,097
|
|
23,228
|
|
29,325
|
Less: Interest
Income
|
(2,344)
|
|
|
|
(11,253)
|
|
(13,597)
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
807,890
|
|
75,350
|
|
(89,640)
|
|
793,600
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
202,833
|
|
4,671
|
|
33,813
|
|
241,317
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A (EBITDA)
|
$ 1,010,723
|
|
$
80,021
|
|
$
(55,827)
|
|
$ 1,034,917
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Add: Stock-Based
Compensation
|
$
8,438
|
|
$
301
|
|
$
1,307
|
|
$
10,046
|
Add: Loss on Debt
Extinguishment
|
—
|
|
—
|
|
2,725
|
|
2,725
|
Total Pre-tax
Adjustments
|
8,438
|
|
301
|
|
4,032
|
|
12,771
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 1,019,161
|
|
$
80,322
|
|
$
(51,795)
|
|
$ 1,047,688
|
|
For the Year Ended
December 31, 2022
|
|
PAMC
|
|
CONSOL
Marine
Terminal
|
|
Other
|
|
Total
Company
|
Net Income
(Loss)
|
$
620,208
|
|
$
41,223
|
|
$
(194,452)
|
|
$
466,979
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
—
|
|
—
|
|
101,458
|
|
101,458
|
Add: Interest
Expense
|
—
|
|
6,116
|
|
46,524
|
|
52,640
|
Less: Interest
Income
|
(1,857)
|
|
—
|
|
(4,174)
|
|
(6,031)
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
618,351
|
|
47,339
|
|
(50,644)
|
|
615,046
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
200,320
|
|
4,604
|
|
21,954
|
|
226,878
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A (EBITDA)
|
$
818,671
|
|
$
51,943
|
|
$
(28,690)
|
|
$
841,924
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Add: Stock-Based
Compensation
|
$
6,628
|
|
$
316
|
|
$
946
|
|
$
7,890
|
Add: Loss on Debt
Extinguishment
|
—
|
|
—
|
|
5,623
|
|
5,623
|
Add: Equity Affiliate
Adjustments
|
—
|
|
—
|
|
3,500
|
|
3,500
|
Less: Fair Value
Adjustment of Commodity Derivative Instruments
|
(52,204)
|
|
—
|
|
—
|
|
(52,204)
|
Total Pre-tax
Adjustments
|
(45,576)
|
|
316
|
|
10,069
|
|
(35,191)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
773,095
|
|
$
52,259
|
|
$
(18,621)
|
|
$
806,733
|
We define total recurring revenues and other income as total
revenue and other income, less fair value adjustments of commodity
derivatives and gains/losses on sales of assets. The GAAP measure
most directly comparable to total recurring revenues and other
income is total revenue and other income. The following table
presents a reconciliation of total recurring revenues and other
income to total revenue and other income, the most directly
comparable GAAP financial measure, on a historical basis, for each
of the periods indicated (in thousands).
|
Three Months
Ended
December 31,
|
|
For the Year
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Total Revenue and Other
Income
|
$
649,439
|
|
$
637,151
|
|
$
2,568,877
|
|
$
2,101,937
|
Less: Fair Value
Adjustments of Commodity Derivatives
|
—
|
|
(67,289)
|
|
—
|
|
(52,204)
|
Less: Gain on
Sale of Assets
|
(1,899)
|
|
(1,495)
|
|
(8,981)
|
|
(34,589)
|
Total Recurring
Revenues and Other Income
|
$
647,540
|
|
$
568,367
|
|
$
2,559,896
|
|
$
2,015,144
|
Free cash flow is a non-GAAP financial measure, defined as net
cash provided by operating activities plus proceeds from sales of
assets less capital expenditures and investments in mining-related
activities. 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
|
|
For the Year
Ended
|
|
For the Year
Ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Net Cash Provided by
Operations
|
$
219,131
|
|
$
151,304
|
|
$
857,949
|
|
$
650,990
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(50,042)
|
|
(37,050)
|
|
(167,791)
|
|
(171,506)
|
Proceeds from Sales of
Assets
|
(1,985)
|
|
1,764
|
|
4,255
|
|
21,538
|
Investments in
Mining-Related Activities
|
(2,115)
|
|
—
|
|
(7,481)
|
|
—
|
Free Cash
Flow
|
$
164,989
|
|
$
116,018
|
|
$
686,932
|
|
$
501,022
|
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," "would," "target," 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.