CANONSBURG, Pa., May 2, 2023
/PRNewswire/ -- Today, CONSOL Energy Inc. (NYSE: CEIX)
reported financial and operating results for the period ended
March 31, 2023.
First Quarter 2023 Highlights Include:
- GAAP net income of $230.4
million;
- Quarterly adjusted EBITDA1 of $346.3 million;
- Total revenue and other income of $688.6 million;
- Net cash provided by operating activities of $248.5 million;
- Quarterly free cash flow1 of $220.8 million;
- Debt repayments of $98.4
million during 1Q23, including $50.0
million of Second Lien Notes and $40.0 million of Term Loan B;
- 47% of 1Q23 free cash flow1 returned to
shareholders via stock repurchase and dividends;
- Repurchased 1.2 million shares of CEIX common stock at a
weighted average price of $55.60 per
share;
- Announced dividend of $1.10/share, based on 1Q23 results, payable on
May 23, 2023;
- Increasing the planned shareholder return allocation to
approximately 75% of quarterly free cash flow1 beginning
in 2Q23 with the intention of pivoting toward share buybacks moving
forward;
- Increasing the previously authorized repurchase program to
an aggregate amount of up to $1
billion;
- Pennsylvania Mining Complex (PAMC) coal shipments improve to
6.7 million tons;
- 56% of 1Q23 recurring revenues1 derived from
sales to non-power generation markets;
- PAMC contracted position improved to near-fully contracted
in 2023 and 14.7 million tons in 2024; and
- CONSOL Marine Terminal (CMT) record quarterly throughput
volume of 4.6 million tons.
Management Comments
"During the first quarter of 2023, we delivered a very strong
performance, producing more than 7.1 million tons and generating
over $220 million in free cash
flow1," said Jimmy Brock,
Chief Executive Officer of CONSOL Energy Inc. "Due to this strong
free cash flow1 generation, we were able to retire
nearly $100 million of our
outstanding debt, while returning $104
million of cash to our shareholders. The majority of our
shareholder returns in the quarter were deployed towards
repurchasing our common stock at what we believe to be very
attractive prices. As such, we are pleased to announce that we are
increasing our planned capital allocation percentage for
shareholder returns to approximately 75% of quarterly free cash
flows1 with the intention of pivoting the program toward
share repurchases and away from dividends moving forward. Due to
the diversified global end-use markets for our high-quality PAMC
product, we were able to opportunistically contract an additional
13.5 million tons of new export market business during the first
quarter for delivery through 2026 at attractive prices, despite
mild domestic winter weather and softening domestic natural gas
prices. Furthermore, our CONSOL Marine Terminal shipped a record
quarterly throughput volume of 4.6 million tons in 1Q23. We have
also been working on ways to debottleneck the terminal in order to
achieve a higher maximum capacity than the current stated capacity
of 15 million tons."
"On the safety front, our Bailey Preparation Plant, Itmann
Preparation Plant and CONSOL Marine Terminal each had ZERO employee
recordable incidents during the first quarter of 2023. Our 1Q23
total recordable incident rate at the Pennsylvania Mining Complex
continued to track significantly below the national average for
underground bituminous coal mines."
Pennsylvania Mining Complex Review and Outlook
PAMC Sales and Marketing
Our sales team sold 6.7 million tons of PAMC coal during the
first quarter of 2023, generating realized coal revenue1
of $563.3 million for the PAMC
segment and an average realized coal revenue per ton
sold1 of $84.32. This
compares to 6.5 million tons sold, generating total coal revenue of
$473.0 million, at an average
realized coal revenue per ton sold1 of $59.60 in the year-ago period, after adjusting
for the effect of settlements of commodity derivatives. The
improvement in the average realized coal revenue per ton
sold1 is due to the continued strong demand for our
product and the significant improvement in the global commodity
markets versus the prior-year period.
On the marketing front, mild winter weather led to softening
demand for domestic electricity generation, which contributed to
reduced domestic natural gas prices. Henry Hub natural gas spot
prices averaged $2.64/mmBtu in 1Q23,
the lowest quarterly level since the fourth quarter of 2020.
Additionally, PJM West day-ahead power prices averaged $33.13/MWh in the quarter, a quarter-over-quarter
decline of 52% compared to 4Q22. Accordingly, domestic coal burn
was significantly reduced during the quarter, and the U.S Energy
Information Administration estimates that coal stockpiles at
domestic utilities increased by 22% during 1Q23. Despite this, we
successfully pivoted away from the domestic market and into
stronger export markets during the quarter, due to the high-quality
characteristics of our product that allow us to sell into many
different end-use markets globally. As such, 66% of our PAMC
realized coal revenue1 came from export sales in
1Q23.
Furthermore, during 1Q23, we strengthened our forward contract
book at the PAMC, opportunistically securing an additional 13.5
million tons, all of which are in the export market, for delivery
through 2026. We are near-fully contracted for 2023 and have 14.7
million tons contracted for 2024.
Operations Summary
During the first quarter of 2023, we ran all five longwalls at
the Pennsylvania Mining Complex and produced 7.0 million tons,
compared to 6.4 million tons in the year-ago quarter. Following the
recent restart of the fifth longwall in the fourth quarter of 2022,
1Q23 marked the first quarter since 1Q21 in which the PAMC had all
five longwalls fully operational and reached the 7.0 million ton
production mark.
CEIX's operating and other costs during the first quarter of
2023 were $260.6 million, compared to
$219.1 million in the year-ago
quarter, and CEIX's total coal revenue for the PAMC segment during
the first quarter of 2023 was $563.3
million, compared to $473.0
million in the year-ago quarter. Total realized coal
revenue1 in 1Q23 was $563.3
million, compared to $386.7
million in 1Q22. The significant improvement in total
realized coal revenue1 was mainly driven by a
$24.72 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 first quarter of 2023 was
$33.61, compared to $29.91 in the year-ago quarter. The increase was
due to ongoing inflationary pressures on supplies, maintenance
costs and contractor labor compared to the prior-year period.
|
|
Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
|
|
|
|
|
Total Coal Revenue
(PAMC Segment)
|
thousands
|
$
563,337
|
|
$
472,976
|
Settlements of
Commodity Derivatives
|
thousands
|
$
—
|
|
$
(86,252)
|
Total Realized Coal
Revenue1
|
thousands
|
$
563,337
|
|
$
386,724
|
Operating and Other
Costs
|
thousands
|
$
260,627
|
|
$
219,082
|
Total Cash Cost of Coal
Sold1
|
thousands
|
$
222,141
|
|
$
195,101
|
Coal
Production
|
million tons
|
7.0
|
|
6.4
|
Coal Sales
|
million tons
|
6.7
|
|
6.5
|
Average Realized Coal
Revenue per Ton Sold1
|
per ton
|
$
84.32
|
|
$
59.60
|
Average Cash Cost of
Coal Sold per Ton1
|
per ton
|
$
33.61
|
|
$
29.91
|
Average Cash Margin per
Ton Sold1
|
per ton
|
$
50.71
|
|
$
29.69
|
|
CONSOL Marine Terminal Review
For the first quarter of 2023, throughput volume at the CMT was
4.6 million tons, the highest quarterly throughput volume in its
history, compared to 3.6 million tons in the year-ago period.
Terminal revenues and CMT total costs and expenses were
$26.7 million and $9.6 million, respectively, compared to
$21.4 million and $10.5 million, respectively, during the year-ago
period. Due to the increased throughput tonnage and continued
commodity pricing strength, 1Q23 marked the highest quarterly
terminal revenue in the history of the CMT. CMT operating cash
costs1 were $5.9 million
in 1Q23, consistent with the prior-year period. CONSOL Marine
Terminal net income and CONSOL Marine Terminal Adjusted
EBITDA1 were $17.8 million
and $20.6 million, respectively, in
the first quarter of 2023 compared to $11.6
million and $14.5 million,
respectively, in the year-ago period.
Itmann Update
Progress on our Itmann project continues, and we remain focused
on ramping up to full run-rate production during 2023. As stated on
our last earnings release, we believe that we are past the adverse
geological conditions that were encountered in late-2022, and
following the section equipment delivery delays we experienced in
the second half of 2022, we now have two of our three continuous
miner super sections near-fully operational. Long-term construction
work is now 75% complete, and the labor market has begun to
improve. As such, staffing levels improved throughout 1Q23. The
Itmann Mining Complex produced 64 thousand tons of coal during the
first quarter of 2023 and sold 108 thousand tons of Itmann and
3rd party coal in aggregate during the quarter. From a
marketing standpoint, our Itmann product continues to be
well-received, and we remain focused on securing new business with
strategic, long-term customers.
Advancing Greenhouse Gas Reduction Efforts
CEIX is pleased to announce that in early-April it entered into
an agreement with Environmental Commodities Corporation in an
effort to expand the methane destruction program at the PAMC in
support of CEIX's phase 1 greenhouse gas reduction goals. As
previously announced, CEIX has a target to reduce its scope 1 and 2
greenhouse gas emissions by 50% by year-end 2026, compared to 2019
baseline levels. Furthermore, the CEIX board previously approved
ESG-related capital expenditures of $28
million for 2023-2026 which will be utilized, in part, to
fund this effort. The project provides the direct benefit of a
voluntary reduction in our scope 1 emissions, while providing an
opportunity to generate greenhouse gas emissions reduction or
offset credits created through compliance and voluntary
programs.
Shareholder Returns Update
During the first quarter of 2023, CEIX repurchased 1.2 million
shares of its common stock, or approximately 3.5% of its public
float, for $67.1 million at a
weighted average price of $55.60 per
share. As a result, during 1Q23, CEIX allocated approximately 30%
of its quarterly free cash flow1 toward share
repurchases.
Additionally, at the discretion of the board of directors, CEIX
today announced a dividend of $1.10/share, representing approximately 17% of
the free cash flow1 generated in the first quarter of
2023. The payment will amount to an aggregate of approximately
$37.3 million, payable on
May 23, 2023 to all shareholders of
record as of May 15, 2023. When
combined with the $67.1 million share
repurchase, these in aggregate represent approximately 47% of the
free cash flow1 generated in the first quarter.
Moving forward, CEIX announced an update and increase to its
enhanced shareholder return program, which will become effective in
the second quarter of 2023, that will plan to return approximately
75% of quarterly free cash flow1 to its shareholders. In
previous quarters, CEIX was returning cash in the form of dividends
and/or share repurchases; however, the management team believes
that repurchases of CEIX common stock are more value accretive and
intends to pivot away from dividends in favor of share
repurchases.
In conjunction with the enhanced shareholder return program,
CEIX's Board of Directors has increased its previously authorized
repurchase program to an aggregate amount of up to $1 billion from $600
million through December 31,
2024. With this approval, CEIX now has approximately
$705 million of availability to
repurchase its shares of CEIX common stock and other financial
securities.
In addition to the increased shareholder return percentage, CEIX
expects to aggressively reduce gross debt with the goal of retiring
its Term Loan B and Senior Secured Second Lien Notes in the coming
quarters.
Debt Repurchases Update
During the first quarter of 2023, we continued to execute on our
stated goal of reducing our total debt levels and made repayments
of $50.0 million, $40.0 million and $8.4
million on our Second Lien Notes, Term Loan B and
equipment-financed and other debt, respectively. This brings our
total debt repayments and repurchases in the quarter to
$98.4 million (excluding the premium
paid on the Second Lien Notes). These debt repayments in aggregate
represent approximately 45% of the free cash flow1
generated during the first quarter of 2023.
2023 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 2023:
- 2023 targeted PAMC coal sales volume of 25.0-27.0 million
tons
- PAMC average realized coal revenue per ton sold2
expectation of $76.00-$81.00
- PAMC average cash cost of coal sold per ton2
expectation of $34.00-$36.00
- Itmann Mining Complex production volume of 400-600 thousand
tons
- Capital expenditures: $160-$185
million
First Quarter Earnings Conference Call
A conference call and webcast, during which management will
discuss the first quarter 2023 financial and operational results,
is scheduled for May 2, 2023 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-Q with the Securities and Exchange
Commission (SEC) reporting our results for the period ended
March 31, 2023 on May 2, 2023. 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", "Recurring Revenues" 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. 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 also developed the
Itmann Mine in the Central Appalachian Basin, which has the
capacity 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 15 million tons per year. In addition to
the ~622 million reserve tons associated with the Pennsylvania
Mining Complex and the ~29 million reserve tons associated with the
Itmann Mining Complex, 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 months ended March 31, 2023 and 2022 (in thousands):
|
Three Months
Ended
March 31,
|
|
2023
|
|
2022
|
Cash Flows from
Operating Activities:
|
(Unaudited)
|
|
(Unaudited)
|
Net Income
(Loss)
|
$
230,377
|
|
$
(4,450)
|
Adjustments to
Reconcile Net Income (Loss) to Net Cash Provided by Operating
Activities:
|
|
|
|
Depreciation,
Depletion and Amortization
|
59,551
|
|
55,954
|
Other Non-Cash
Adjustments to Net Income
|
2,338
|
|
99,148
|
Changes in Working
Capital
|
(43,755)
|
|
(2,445)
|
Net Cash Provided
by Operating Activities
|
248,511
|
|
148,207
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
Expenditures
|
(33,757)
|
|
(36,643)
|
Proceeds from Sales of
Assets
|
6,000
|
|
6,478
|
Other Investing
Activity
|
(75,000)
|
|
(1,329)
|
Net Cash Used in
Investing Activities
|
(102,757)
|
|
(31,494)
|
Cash Flows from
Financing Activities:
|
|
|
|
Net Payments on
Long-Term Debt, Including Fees
|
(98,372)
|
|
(38,452)
|
Repurchases of Common
Stock
|
(75,121)
|
|
—
|
Dividends
|
(38,287)
|
|
—
|
Other Financing
Activities
|
(14,083)
|
|
(7,459)
|
Net Cash Used in
Financing Activities
|
(225,863)
|
|
(45,911)
|
Net (Decrease)
Increase in Cash and Cash Equivalents and Restricted
Cash
|
(80,109)
|
|
70,802
|
Cash and Cash
Equivalents and Restricted Cash at Beginning of Period
|
326,952
|
|
198,206
|
Cash and Cash
Equivalents and Restricted Cash at End of Period
|
$
246,843
|
|
$
269,008
|
|
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, 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 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
March 31,
|
|
2023
|
|
2022
|
Operating and Other
Costs
|
$
260,627
|
|
$
219,082
|
Less: Other Costs
(Non-Production and non-PAMC)
|
(38,486)
|
|
(23,981)
|
Cash Cost of Coal
Sold
|
$
222,141
|
|
$
195,101
|
Add: Depreciation,
Depletion and Amortization (PAMC Production)
|
46,264
|
|
48,085
|
Cost of Coal
Sold
|
$
268,405
|
|
$
243,186
|
Total Tons Sold (in
millions)
|
6.7
|
|
6.5
|
Average Cost of Coal
Sold per Ton
|
$
40.18
|
|
$
37.48
|
Less: Depreciation,
Depletion and Amortization Costs per Ton Sold
|
6.57
|
|
7.57
|
Average Cash Cost of
Coal Sold per Ton
|
$
33.61
|
|
$
29.91
|
|
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
March 31,
|
|
2023
|
|
2022
|
Total Coal Revenue
(PAMC Segment)
|
$
563,337
|
|
$
472,976
|
Less: Settlements of
Commodity Derivatives
|
—
|
|
(86,252)
|
Total Realized Coal
Revenue
|
563,337
|
|
386,724
|
Operating and Other
Costs
|
260,627
|
|
219,082
|
Less: Other Costs
(Non-Production and non-PAMC)
|
(38,486)
|
|
(23,981)
|
Cash Cost of Coal
Sold
|
$
222,141
|
|
$
195,101
|
Total Tons Sold (in
millions)
|
6.7
|
|
6.5
|
Average Realized
Coal Revenue per Ton Sold
|
$
84.32
|
|
$
59.60
|
Less: Average Cash Cost
of Coal Sold per Ton
|
33.61
|
|
29.91
|
Average Cash Margin
per Ton Sold
|
$
50.71
|
|
$
29.69
|
|
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) gain 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 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
March 31,
|
|
2023
|
|
2022
|
Operating and Other
Costs
|
$
260,627
|
|
$
219,082
|
Less: Other Costs
(Non-Throughput)
|
(253,646)
|
|
(211,999)
|
CMT Operating
Costs
|
$
6,981
|
|
$
7,083
|
Less: Depreciation,
Depletion and Amortization (Throughput)
|
(1,047)
|
|
(1,165)
|
CMT Operating Cash
Costs
|
$
5,934
|
|
$
5,918
|
|
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
March 31, 2023
|
|
PAMC
|
|
CONSOL
Marine
Terminal
|
|
Other
|
|
Total
Company
|
Net Income
(Loss)
|
$
276,276
|
|
$
17,789
|
|
$
(63,688)
|
|
$
230,377
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
—
|
|
—
|
|
41,593
|
|
41,593
|
Add: Interest
Expense
|
(301)
|
|
1,526
|
|
9,054
|
|
10,279
|
Less: Interest
Income
|
(408)
|
|
—
|
|
(1,259)
|
|
(1,667)
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
275,567
|
|
19,315
|
|
(14,300)
|
|
280,582
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
51,371
|
|
1,156
|
|
7,024
|
|
59,551
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A
(EBITDA)
|
$
326,938
|
|
$
20,471
|
|
$
(7,276)
|
|
$
340,133
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Add: Stock-Based
Compensation
|
$
4,025
|
|
$
144
|
|
$
623
|
|
$
4,792
|
Add: Loss on Debt
Extinguishment
|
—
|
|
—
|
|
1,375
|
|
1,375
|
Total Pre-tax
Adjustments
|
4,025
|
|
144
|
|
1,998
|
|
6,167
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
330,963
|
|
$
20,615
|
|
$
(5,278)
|
|
$
346,300
|
|
Three Months Ended
March 31, 2022
|
|
PAMC
|
|
CONSOL
Marine
Terminal
|
|
Other
|
|
Total
Company
|
Net Income
(Loss)
|
$
2,097
|
|
$
11,613
|
|
$
(18,160)
|
|
$
(4,450)
|
|
|
|
|
|
|
|
|
Less: Income Tax
Benefit
|
—
|
|
—
|
|
(3,522)
|
|
(3,522)
|
Add: Interest
Expense
|
189
|
|
1,531
|
|
12,632
|
|
14,352
|
Less: Interest
Income
|
(415)
|
|
—
|
|
(914)
|
|
(1,329)
|
Earnings (Loss) Before
Interest & Taxes (EBIT)
|
1,871
|
|
13,144
|
|
(9,964)
|
|
5,051
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
50,956
|
|
1,165
|
|
3,833
|
|
55,954
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Interest, Taxes and DD&A (EBITDA)
|
$
52,827
|
|
$
14,309
|
|
$
(6,131)
|
|
$
61,005
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Add: Stock-Based
Compensation
|
3,529
|
|
168
|
|
504
|
|
4,201
|
Add: Loss on Debt
Extinguishment
|
—
|
|
—
|
|
2,122
|
|
2,122
|
Add: Fair Value
Adjustment of Commodity
Derivative Instruments
|
101,902
|
|
—
|
|
—
|
|
101,902
|
Total Pre-tax
Adjustments
|
105,431
|
|
168
|
|
2,626
|
|
108,225
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
158,258
|
|
$
14,477
|
|
$
(3,505)
|
|
$
169,230
|
|
We define recurring revenues 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 recurring revenues is total revenue and other income.
The following table presents a reconciliation of recurring revenues
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
March 31,
|
|
2023
|
|
2022
|
Total Revenue and Other
Income
|
$
688,607
|
|
$
358,529
|
Add: Fair Value
Adjustments of Commodity Derivatives
|
—
|
|
101,902
|
Less: Gain on
Sale of Assets
|
(5,726)
|
|
(6,181)
|
Total Recurring
Revenues
|
$
682,881
|
|
$
454,250
|
|
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. 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
|
|
March 31,
2023
|
|
March 31,
2022
|
Net Cash Provided by
Operations
|
$
248,511
|
|
$
148,207
|
|
|
|
|
Capital
Expenditures
|
(33,757)
|
|
(36,643)
|
Proceeds from Sales of
Assets
|
6,000
|
|
6,478
|
Free Cash
Flow
|
$
220,754
|
|
$
118,042
|
|
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the federal securities laws. With
the exception of historical matters, the matters discussed in this
press release are forward-looking statements (as defined in Section
21E of the Securities Exchange Act of 1934, as amended) that
involve risks and uncertainties that could cause actual results to
differ materially from results projected in or implied by such
forward-looking statements. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. The forward-looking statements may include
projections and estimates concerning the timing and success of
specific projects and our future production, revenues, income and
capital spending. When we use the words "anticipate," "believe,"
"could," "continue," "estimate," "expect," "intend," "may," "plan,"
"predict," "project," "should," "will," or their negatives, or
other similar expressions, the statements which include those words
are usually forward-looking statements. When we describe our
expectations with respect to the Itmann Mine or any other strategy
that involves risks or uncertainties, we are making forward-looking
statements. We have based these forward-looking statements on our
current expectations and assumptions about future events. While our
management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. Specific risks, contingencies and
uncertainties are discussed in more detail in our filings with the
Securities and Exchange Commission. The forward-looking statements
in this press release speak only as of the date of this press
release and CEIX disclaims any intention or obligation to update
publicly any forward-looking statements, whether in response to new
information, future events, or otherwise, except as required by
applicable law.
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SOURCE CONSOL Energy Inc.