CANONSBURG, Pa., Nov. 2, 2021 /PRNewswire/ -- Today, CONSOL
Energy Inc. (NYSE: CEIX) reported financial and operating results
for the period ended September 30,
2021.
Third Quarter 2021 Highlights
Include:
- GAAP net loss of ($113.8)
million, which includes $147.3
million of pre-tax unrealized mark-to-market losses related
to commodity derivatives;
- Quarterly adjusted EBITDA1 of $66.6 million;
- Net cash provided by operating activities of $80.5 million;
- Quarterly free cash flow1 of $34.8 million;
- Coal shipments of 5.4 million tons;
- 2022 and 2023 contracted position of 20.2 million and 5.8
million tons, respectively;
- Cash and cash equivalents of $162.0
million plus $50.3 million in
restricted cash as of September 30,
2021;
- Reduced total debt outstanding by $18.4
million during the quarter;
- Net leverage ratio1 of 1.64x as of September 30, 2021;
- Recently announced direct-operating greenhouse gas emissions
targets, aiming to reduce Scope 1 and 2 emissions by 50% by the end
of 2026 and to be net zero by 2040; and
- Recommencing development for the 5th longwall at the
Pennsylvania Mining Complex, which is expected to resume operation
in late 4Q22.
Management Comments
"In the third quarter of 2021, customer demand remained strong,
and we generated nearly $35 million
in free cash flow1, while reducing our absolute debt
levels by $18 million," said
Jimmy Brock, President and Chief
Executive Officer of CONSOL Energy Inc. "Additionally, we are very
excited by our recently announced direct-operating greenhouse gas
emission reduction targets, aiming to reduce our Scope 1 and 2
emissions by 50% by 2026, compared to baseline 2019
levels, and be net zero by 2040. The third quarter is
typically a seasonally weak quarter due to planned maintenance
shutdowns, and the Pennsylvania Mining Complex (PAMC) also
encountered several operational issues and transportation delays
that limited production to 5.3 million tons in the third quarter of
2021. Nevertheless, demand for our product remains robust, and due
to the strength in both the domestic and international coal
markets, we are pleased to announce that we have restarted
development for the fifth longwall at the PAMC to capture upside
potential. During the third quarter of 2021, we successfully
secured new contracted business across 2022 and 2023. Progress on
the Itmann preparation plant continues and remains on schedule and
on budget, positioning us for additional upside in 2022."
"On the safety front, our Enlow Fork Mine, Bailey Preparation
Plant, CONSOL Marine Terminal (CMT) and Itmann project each had
ZERO employee recordable incidents during the third quarter of
2021. Our year-to-date total recordable incident rate at the PAMC
continues to track significantly and consistently below the
national average for underground bituminous coal mines."
Pennsylvania Mining Complex Review and Outlook
PAMC Sales and Marketing
Our marketing team sold 5.4 million tons of coal during the
third quarter of 2021 at an average revenue per ton of $47.46, compared to 4.5 million tons at an
average revenue per ton of $40.55 in
the year-ago period. Demand for our product has remained robust and
was improved compared to the prior-year quarter, which was impacted
by the COVID-19 demand decline in early 2020.
In the domestic market, the pricing environment continued
to significantly improve during the third quarter of 2021. The
average PJM West day-ahead power price and average Henry Hub
natural gas spot price ended 3Q21 improved by 84% and 118%,
respectively, compared to the year-ago quarter. Driven by these
improved market fundamentals and continued tightness in supply, IHS
Markit estimates that total U.S. coal demand in 2021 will increase
by 110 million tons versus 2020 levels, while total U.S. coal
production will improve by only 59 million tons. As such, coal
inventories are in decline. The U.S. Energy Information
Administration (EIA) reports that August coal inventory levels at
domestic power plants were reduced by nearly 35% compared to
year-ago levels and by about 37% since the start of 2021, standing
at approximately 84 million tons. Additionally, the EIA
estimates that these inventory levels will continue to decline
through the remainder of the year, finishing 2021 at approximately
73 million tons, or approximately 45% below year-end 2020 levels.
These year-end 2021 estimates are reduced by more than 32% compared
to estimates from just three months ago in July 2021. Consistent with these trends, the
majority of our domestic customer stockpiles are below target
levels for this time of year. As such, we have seen domestic
customer demand increase and have remained opportunistic in
securing additional coal sales contracts for 2022 and 2023,
bringing our contracted positions for those years to
20.2 million and 5.8 million tons, respectively.
On the export front, seaborne thermal coal markets continued to
strengthen throughout the third quarter of 2021. API2 spot prices
continued to move substantially higher in the third quarter of
2021, ending 3Q21 improved by 193% compared to 3Q20. Global LNG
prices have continued to remain elevated with the Asian spot market
benchmark price (JKM) ending the third quarter of 2021 more than
five times higher than the third quarter of 2020. As a result of
the continued strength in the international coal markets, IHS
Markit estimates that U.S. thermal coal exports will improve by 57%
and 54% in 2021 and 2022, respectively, compared to 2020
levels.
Operations Summary
During the third quarter of 2021, we ran four longwalls at the
PAMC, but operational and geological issues, transportation delays
and a planned maintenance shutdown limited our production in
the quarter. The PAMC produced 5.3 million tons in 3Q21, compared
to 4.5 million tons in the year-ago quarter. This improvement
compared to the prior year was due to the increased demand for our
product, as coal markets were beginning to recover from the
COVID-related demand decline in 3Q20. Despite the challenges in the
recent quarter, demand for our product remains strong. As such, we
have recommenced development of the 5th longwall located at
our Enlow Fork Mine, which we expect to be operational in late
4Q22.
CEIX's total costs and expenses during the third quarter of 2021
were $303.1 million compared to
$246.7 million in the year-ago
quarter, and CEIX's total coal revenue during the third quarter was
$258.6 million compared to
$184.4 million in the year-ago
period. However, total revenue in 3Q21 was impacted by $147.3 million of pre-tax unrealized
mark-to-market losses related to commodity derivatives.
Average cash cost of coal sold per ton1 for the
third quarter was $30.64, compared to
$28.64 in the year-ago quarter. The
significant increase was primarily due to the unforeseen
operational and geological challenges experienced in the current
quarter, which weighed on production as well as maintenance,
supply, contractors and project expenses.
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30, 2021
|
|
|
September
30, 2020
|
|
|
September
30, 2021
|
|
|
September
30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
thousands
|
|
$
|
149,012
|
|
|
$
|
243,219
|
|
|
$
|
778,322
|
|
|
$
|
697,036
|
|
Total Costs and
Expenses
|
thousands
|
|
$
|
303,059
|
|
|
$
|
246,661
|
|
|
$
|
905,501
|
|
|
$
|
724,841
|
|
Total Coal
Revenue
|
thousands
|
|
$
|
258,560
|
|
|
$
|
184,375
|
|
|
$
|
803,927
|
|
|
$
|
542,140
|
|
Total Cash Cost of
Coal Sold1
|
thousands
|
|
$
|
166,471
|
|
|
$
|
130,037
|
|
|
$
|
497,533
|
|
|
$
|
381,005
|
|
Coal
Production
|
million
tons
|
|
|
5.3
|
|
|
|
4.5
|
|
|
|
18.2
|
|
|
|
12.9
|
|
Coal Sales
|
million
tons
|
|
|
5.4
|
|
|
|
4.5
|
|
|
|
18.1
|
|
|
|
12.8
|
|
Average Revenue per
Ton Sold
|
per ton
|
|
$
|
47.46
|
|
|
$
|
40.55
|
|
|
$
|
44.05
|
|
|
$
|
42.35
|
|
Average Cash Cost of
Coal Sold per Ton1
|
per ton
|
|
$
|
30.64
|
|
|
$
|
28.64
|
|
|
$
|
27.45
|
|
|
$
|
29.88
|
|
Average Cash Margin
per Ton Sold1
|
per ton
|
|
$
|
16.82
|
|
|
$
|
11.91
|
|
|
$
|
16.60
|
|
|
$
|
12.47
|
|
CONSOL Marine Terminal Review
For the third quarter of 2021, throughput volumes at the CMT
were 2.8 million tons, compared to 2.0 million tons in the year-ago
period. Terminal revenues and CMT total costs and expenses were
$14.1 million and $10.2 million, respectively, compared to
$17.0 million and $8.9 million, respectively, during the year-ago
period. CMT operating cash costs1 were $5.8 million in 3Q21, compared to $4.8 million in 3Q20. The increase in cash cost
was driven by the increase in throughput tons versus 3Q20. However,
revenue was impaired in 3Q21 compared to 3Q20 due to the
take-or-pay contract that was in place in the prior-year period.
Accordingly, CONSOL Marine Terminal net income and CONSOL Marine
Terminal Adjusted EBITDA1 were $4.5 million and $7.3
million, respectively, in the third quarter of 2021 compared
to $8.4 million and $11.3 million, respectively, in the year-ago
period.
Debt Repurchases Update
During the third quarter of 2021, CEIX made repayments of
$12.5 million, $6.4 million and $0.7
million on our Term Loan A, equipment-financed debt and Term
Loan B, respectively. Additionally, CEIX repurchased $2.9 million in principal amount of its second
lien notes. This brings our total debt payments and repurchases in
the quarter to $22.6 million.
2021 Guidance and Outlook
Based on our current contracted position, estimated prices and
production plans, we are providing the following updated financial
and operating performance guidance for 2021:
- 2021 targeted coal sales volume of 23.5-24.5 million tons
- Fully contracted for 2021 at an average revenue per ton of
$46.26/ton, assuming PJM West power
forwards of $54.84/MWh (priced as of
October 1, 2021 for 4Q21)
- Average cash cost of coal sold per ton2 expectation
of $27.50-$28.50/ton
- Capital expenditures of $150-$170 million
including the Itmann project
Third Quarter Earnings Conference Call
A conference call and webcast, during which management will
discuss the third quarter 2021 financial and operational
results, is scheduled for November 2, 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 September 30, 2021 on November 2,
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",
"CONSOL Marine Terminal Adjusted EBITDA", "CMT Operating Cash
Costs" and "Total Cash Cost of Coal Sold" are non-GAAP
financial measures and "Average Cash Cost of Coal Sold per Ton" and
"Average Cash Margin per Ton Sold" are operating ratios derived
from non-GAAP financial measures, each of which are reconciled to
the most directly comparable GAAP financial measures below, under
the caption "Reconciliation of Non-GAAP Financial Measures".
2 CEIX is unable to provide a reconciliation of Average Cash
Cost of Coal Sold per Ton guidance, an operating ratio derived from
non-GAAP financial measures, due to the unknown effect, timing and
potential significance of certain income statement items.
About CONSOL Energy Inc.
CONSOL Energy Inc. (NYSE: CEIX) is a Canonsburg, Pennsylvania-based producer and
exporter of high-Btu bituminous thermal coal and metallurgical
coal. It owns and operates some of the most productive longwall
mining operations in the Northern Appalachian Basin and is
developing a new metallurgical coal mine (the Itmann project) in
the Central Appalachian Basin. CONSOL's flagship operation is the
Pennsylvania Mining Complex, which has the capacity to produce
approximately 28.5 million tons of coal per year and is comprised
of 3 large-scale underground mines: Bailey, Enlow Fork, and Harvey.
The company also owns and operates the CONSOL Marine Terminal,
which is located in the port of Baltimore and has a throughput capacity of
approximately 15 million tons per year. In addition to the ~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:
Kurt Salvatori, (724) 416-8319
kurtsalvatori@consolenergy.com
Condensed Consolidated Statements of Cash Flows
The following table presents the condensed consolidated
statements of cash flows for the three months ended September
30, 2021 and 2020 (in thousands):
|
|
Three Months Ended
September
30,
|
|
|
|
2021
|
|
|
2020
|
|
Cash Flows from
Operating Activities:
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Net Loss
|
|
$
|
(113,789)
|
|
|
$
|
(9,360)
|
|
Adjustments to
Reconcile Net Loss to Net Cash Provided by Operating
Activities:
|
|
|
|
|
|
|
|
|
Depreciation,
Depletion and Amortization
|
|
|
55,977
|
|
|
|
54,959
|
|
Other Non-Cash
Adjustments to Net Income
|
|
|
111,383
|
|
|
|
1,842
|
|
Changes in Working
Capital
|
|
|
26,967
|
|
|
|
(31,733)
|
|
Net Cash Provided
by Operating Activities
|
|
|
80,538
|
|
|
|
15,708
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
(45,863)
|
|
|
|
(19,508)
|
|
Proceeds from Sales of
Assets
|
|
|
135
|
|
|
|
8,090
|
|
Other Investing
Activity
|
|
|
(156)
|
|
|
|
(229)
|
|
Net Cash Used in
Investing Activities
|
|
|
(45,884)
|
|
|
|
(11,647)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Net Payments on
Long-Term Debt, Including Fees
|
|
|
(22,550)
|
|
|
|
(14,804)
|
|
Other Financing
Activities
|
|
|
(1)
|
|
|
|
—
|
|
Net Cash Used in
Financing Activities
|
|
|
(22,551)
|
|
|
|
(14,804)
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents and Restricted
Cash
|
|
|
12,103
|
|
|
|
(10,743)
|
|
Cash and Cash
Equivalents and Restricted Cash at Beginning of Period
|
|
|
200,203
|
|
|
|
33,027
|
|
Cash and Cash
Equivalents and Restricted Cash at End of Period
|
|
$
|
212,306
|
|
|
$
|
22,284
|
|
Reconciliation of Non-GAAP Financial
Measures
We evaluate our cost of coal sold and cash cost of coal sold on
an aggregate basis. We define cost of coal sold as operating and
other production costs related to produced tons sold, along with
changes in coal inventory, both in volumes and carrying values. The
cost of coal sold includes items such as direct operating costs,
royalty and production taxes, direct administration costs, and
depreciation, depletion and amortization costs on production
assets. Cost of coal sold excludes any indirect costs, such as
selling, general and administrative costs, freight expenses,
interest expenses, depreciation, depletion and amortization costs
on non-production assets and other costs not directly attributable
to the production of coal. The cash cost of coal sold includes cost
of coal sold less depreciation, depletion and amortization costs on
production assets. We define average cash cost of coal sold per ton
as cash cost of coal sold divided by tons sold. The GAAP measure
most directly comparable to cost of coal sold, cash cost of coal
sold and average cash cost of coal sold per ton is total costs and
expenses.
The following table presents a reconciliation of cost of coal
sold, cash cost of coal sold and average cash cost of coal
sold per ton to total costs and expenses, the most directly
comparable GAAP financial measure, on a historical basis, for each
of the periods indicated (in thousands, except per ton
information).
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Total Costs and
Expenses
|
|
$
|
303,059
|
|
|
$
|
246,661
|
|
|
$
|
905,501
|
|
|
$
|
724,841
|
|
Less: Freight
Expense
|
|
|
(19,348)
|
|
|
|
(12,909)
|
|
|
|
(72,371)
|
|
|
|
(19,141)
|
|
Less: Selling, General
and Administrative Costs
|
|
|
(22,476)
|
|
|
|
(11,117)
|
|
|
|
(68,982)
|
|
|
|
(39,726)
|
|
Less: (Loss) Gain on
Debt Extinguishment
|
|
|
(132)
|
|
|
|
1,078
|
|
|
|
657
|
|
|
|
17,911
|
|
Less: Interest
Expense, net
|
|
|
(16,045)
|
|
|
|
(15,723)
|
|
|
|
(47,493)
|
|
|
|
(46,116)
|
|
Less: Other Costs
(Non-Production)
|
|
|
(22,610)
|
|
|
|
(22,994)
|
|
|
|
(51,706)
|
|
|
|
(100,707)
|
|
Less: Depreciation,
Depletion and Amortization (Non-Production)
|
|
|
(7,976)
|
|
|
|
(9,327)
|
|
|
|
(20,894)
|
|
|
|
(35,211)
|
|
Cost of Coal
Sold
|
|
$
|
214,472
|
|
|
$
|
175,669
|
|
|
$
|
644,712
|
|
|
$
|
501,851
|
|
Less: Depreciation,
Depletion and Amortization (Production)
|
|
|
(48,001)
|
|
|
|
(45,632)
|
|
|
|
(147,179)
|
|
|
|
(120,846)
|
|
Cash Cost of Coal
Sold
|
|
$
|
166,471
|
|
|
$
|
130,037
|
|
|
$
|
497,533
|
|
|
$
|
381,005
|
|
Total Tons Sold (in
millions)
|
|
|
5.4
|
|
|
|
4.5
|
|
|
|
18.1
|
|
|
|
12.8
|
|
Average Cost of Coal
Sold per Ton
|
|
$
|
39.71
|
|
|
$
|
38.70
|
|
|
$
|
35.53
|
|
|
$
|
39.25
|
|
Less: Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
|
9.07
|
|
|
|
10.06
|
|
|
|
8.08
|
|
|
|
9.37
|
|
Average Cash Cost
of Coal Sold per Ton
|
|
$
|
30.64
|
|
|
$
|
28.64
|
|
|
$
|
27.45
|
|
|
$
|
29.88
|
|
We evaluate our average margin per ton sold and average cash
margin per ton sold on a per-ton basis. We define average margin
per ton sold as average revenue per ton sold, net of average cost
of coal sold per ton. We define average cash margin per ton sold as
average revenue per ton sold, net of average cash cost of coal sold
per ton. The GAAP measure most directly comparable to average
margin per ton sold and average cash margin per ton sold is total
coal revenue.
The following table presents a reconciliation of average margin
per ton sold and average cash margin per ton sold to total coal
revenue, the most directly comparable GAAP financial measure, on a
historical basis, for each of the periods indicated (in thousands,
except per ton information).
|
|
Three Months
Ended
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Total Coal Revenue
(PAMC Segment)
|
|
$
|
256,326
|
|
|
$
|
184,066
|
|
|
$
|
799,274
|
|
|
$
|
541,545
|
|
Operating and Other
Costs
|
|
|
189,081
|
|
|
|
153,031
|
|
|
|
549,239
|
|
|
|
481,712
|
|
Less: Other Costs
(Non-Production)
|
|
|
(22,610)
|
|
|
|
(22,994)
|
|
|
|
(51,706)
|
|
|
|
(100,707)
|
|
Total Cash Cost of
Coal Sold
|
|
|
166,471
|
|
|
|
130,037
|
|
|
|
497,533
|
|
|
|
381,005
|
|
Add: Depreciation,
Depletion and Amortization
|
|
|
55,977
|
|
|
|
54,959
|
|
|
|
168,073
|
|
|
|
156,057
|
|
Less: Depreciation,
Depletion and Amortization (Non-Production)
|
|
|
(7,976)
|
|
|
|
(9,327)
|
|
|
|
(20,894)
|
|
|
|
(35,211)
|
|
Total Cost of Coal
Sold
|
|
$
|
214,472
|
|
|
$
|
175,669
|
|
|
$
|
644,712
|
|
|
$
|
501,851
|
|
Total Tons Sold (in
millions)
|
|
|
5.4
|
|
|
|
4.5
|
|
|
|
18.1
|
|
|
|
12.8
|
|
Average Revenue per
Ton Sold
|
|
$
|
47.46
|
|
|
$
|
40.55
|
|
|
$
|
44.05
|
|
|
$
|
42.35
|
|
Average Cash Cost of
Coal Sold per Ton
|
|
|
30.64
|
|
|
|
28.64
|
|
|
|
27.45
|
|
|
|
29.88
|
|
Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
|
9.07
|
|
|
|
10.06
|
|
|
|
8.08
|
|
|
|
9.37
|
|
Average Cost of Coal
Sold per Ton
|
|
|
39.71
|
|
|
|
38.70
|
|
|
|
35.53
|
|
|
|
39.25
|
|
Average Margin per
Ton Sold
|
|
|
7.75
|
|
|
|
1.85
|
|
|
|
8.52
|
|
|
|
3.10
|
|
Add: Depreciation,
Depletion and Amortization Costs per Ton Sold
|
|
|
9.07
|
|
|
|
10.06
|
|
|
|
8.08
|
|
|
|
9.37
|
|
Average Cash
Margin per Ton Sold
|
|
$
|
16.82
|
|
|
$
|
11.91
|
|
|
$
|
16.60
|
|
|
$
|
12.47
|
|
We define CMT operating costs as operating and other costs
related to throughput tons. CMT operating costs exclude any
indirect costs, such as freight expense, selling, general and
administrative costs, direct administration costs, interest
expenses, and other costs not directly attributable to throughput
tons. CMT operating cash costs include CMT operating costs, less
depreciation, depletion and amortization costs. The GAAP measure
most directly comparable to CMT operating costs and CMT operating
cash costs is total costs and expenses.
The following table presents a reconciliation of CMT operating
costs and CMT operating cash costs to total costs and expenses,
the most directly comparable GAAP financial measure, on a
historical basis, for each of the periods indicated (in
thousands).
|
|
Three Months Ended
September
30,
|
|
|
|
2021
|
|
|
2020
|
|
Total Costs and
Expenses
|
|
$
|
303,059
|
|
|
$
|
246,661
|
|
Less: Freight
Expense
|
|
|
(19,348)
|
|
|
|
(12,909)
|
|
Less: Selling, General
and Administrative Costs
|
|
|
(22,476)
|
|
|
|
(11,117)
|
|
Less: (Loss) Gain on
Debt Extinguishment
|
|
|
(132)
|
|
|
|
1,078
|
|
Less: Interest
Expense, net
|
|
|
(16,045)
|
|
|
|
(15,723)
|
|
Less: Other Costs
(Non-Throughput)
|
|
|
(183,236)
|
|
|
|
(148,237)
|
|
Less: Depreciation,
Depletion and Amortization (Non-Throughput)
|
|
|
(54,775)
|
|
|
|
(53,676)
|
|
CMT Operating
Costs
|
|
$
|
7,047
|
|
|
$
|
6,077
|
|
Less: Depreciation,
Depletion and Amortization (Throughput)
|
|
|
(1,202)
|
|
|
|
(1,283)
|
|
CMT Operating Cash
Costs
|
|
$
|
5,845
|
|
|
$
|
4,794
|
|
We define adjusted EBITDA as (i) net income (loss) plus income
taxes, net interest expense and depreciation, depletion and
amortization, as adjusted for (ii) certain non-cash items, such as
stock-based compensation and unrealized loss on commodity
derivative instruments. The GAAP measure most directly comparable
to adjusted EBITDA is net income (loss).
The following tables present a reconciliation of adjusted EBITDA
to net income (loss), the most directly comparable GAAP financial
measure, on a historical basis, for each of the periods indicated
(in thousands).
|
|
Three Months Ended
September 30, 2021
|
|
|
|
PA Mining
Complex
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net (Loss)
Income
|
|
$
|
(130,599)
|
|
|
$
|
4,506
|
|
|
$
|
12,304
|
|
|
$
|
(113,789)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Benefit
|
|
|
—
|
|
|
|
—
|
|
|
|
(40,258)
|
|
|
|
(40,258)
|
|
Add: Interest
Expense, net
|
|
|
305
|
|
|
|
1,535
|
|
|
|
14,205
|
|
|
|
16,045
|
|
Less: Interest
Income
|
|
|
—
|
|
|
|
—
|
|
|
|
(737)
|
|
|
|
(737)
|
|
(Loss) Earnings
Before Interest & Taxes (EBIT)
|
|
|
(130,294)
|
|
|
|
6,041
|
|
|
|
(14,486)
|
|
|
|
(138,739)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
50,837
|
|
|
|
1,202
|
|
|
|
3,938
|
|
|
|
55,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings
Before Interest, Taxes and DD&A (EBITDA)
|
|
$
|
(79,457)
|
|
|
$
|
7,243
|
|
|
$
|
(10,548)
|
|
|
$
|
(82,762)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-Based
Compensation
|
|
$
|
1,643
|
|
|
$
|
76
|
|
|
$
|
169
|
|
|
$
|
1,888
|
|
Loss on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
132
|
|
|
|
132
|
|
Unrealized Loss on
Commodity Derivative Instruments
|
|
|
147,306
|
|
|
|
—
|
|
|
|
—
|
|
|
|
147,306
|
|
Total Pre-tax
Adjustments
|
|
|
148,949
|
|
|
|
76
|
|
|
|
301
|
|
|
|
149,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
69,492
|
|
|
$
|
7,319
|
|
|
$
|
(10,247)
|
|
|
$
|
66,564
|
|
|
|
|
Three Months Ended
September 30, 2020
|
|
|
|
PA Mining
Complex
|
|
|
CONSOL
Marine
Terminal
|
|
|
Other
|
|
|
Total
Company
|
|
Net (Loss)
Income
|
|
$
|
(6,930)
|
|
|
$
|
8,411
|
|
|
$
|
(10,841)
|
|
|
$
|
(9,360)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Income Tax
Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
5,918
|
|
|
|
5,918
|
|
Add: Interest
Expense, net
|
|
|
367
|
|
|
|
1,541
|
|
|
|
13,815
|
|
|
|
15,723
|
|
Less: Interest
Income
|
|
|
—
|
|
|
|
—
|
|
|
|
(76)
|
|
|
|
(76)
|
|
(Loss) Earnings
Before Interest & Taxes (EBIT)
|
|
|
(6,563)
|
|
|
|
9,952
|
|
|
|
8,816
|
|
|
|
12,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation,
Depletion & Amortization
|
|
|
49,944
|
|
|
|
1,283
|
|
|
|
3,732
|
|
|
|
54,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Interest, Taxes and DD&A (EBITDA)
|
|
$
|
43,381
|
|
|
$
|
11,235
|
|
|
$
|
12,548
|
|
|
$
|
67,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock/Unit-Based
Compensation
|
|
$
|
1,891
|
|
|
$
|
107
|
|
|
$
|
214
|
|
|
$
|
2,212
|
|
Gain on Debt
Extinguishment
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,078)
|
|
|
|
(1,078)
|
|
Total Pre-tax
Adjustments
|
|
|
1,891
|
|
|
|
107
|
|
|
|
(864)
|
|
|
|
1,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
45,272
|
|
|
$
|
11,342
|
|
|
$
|
11,684
|
|
|
$
|
68,298
|
|
We define net leverage ratio as the ratio of net debt to the
last twelve months' ("LTM") earnings before interest expense and
depreciation, depletion and amortization, adjusted for certain
non-cash items, such as stock-based compensation, unrealized loss
on commodity derivative instruments, amortization of debt issuance
costs and capitalized interest.
The following table presents a reconciliation of net leverage
ratio (in thousands).
|
|
Twelve Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
September 30,
2021
|
|
|
September 30,
2020
|
|
Net
Loss
|
|
$
|
(68,479)
|
|
|
$
|
(10,547)
|
|
Plus:
|
|
|
|
|
|
|
|
|
Interest Expense,
net
|
|
|
62,563
|
|
|
|
62,340
|
|
Depreciation,
Depletion and Amortization
|
|
|
222,776
|
|
|
|
211,909
|
|
Income
Taxes
|
|
|
(40,137)
|
|
|
|
4,925
|
|
Stock/Unit-Based
Compensation
|
|
|
6,724
|
|
|
|
8,873
|
|
Gain on Debt
Extinguishment
|
|
|
(4,098)
|
|
|
|
(18,900)
|
|
Unrealized Loss on
Commodity Derivative Instruments
|
|
|
167,743
|
|
|
|
—
|
|
CCR Adjusted EBITDA
per Credit Agreement
|
|
|
—
|
|
|
|
(55,400)
|
|
Cash Payments for
Legacy Employee Liabilities, Net of Non-Cash Expense
|
|
|
(31,481)
|
|
|
|
(17,442)
|
|
Other Adjustments to
Net Loss
|
|
|
245
|
|
|
|
6,576
|
|
Consolidated EBITDA
per Credit Agreement
|
|
$
|
315,856
|
|
|
$
|
192,334
|
|
|
|
|
|
|
|
|
|
|
Consolidated First
Lien Debt
|
|
$
|
354,005
|
|
|
$
|
392,218
|
|
Senior Secured Second
Lien Notes
|
|
|
149,107
|
|
|
|
176,452
|
|
MEDCO Revenue
Bonds
|
|
|
102,865
|
|
|
|
102,865
|
|
PEDFA Bonds
|
|
|
75,000
|
|
|
|
—
|
|
Advance Royalty
Commitments
|
|
|
2,185
|
|
|
|
1,895
|
|
Consolidated
Indebtedness per Credit Agreement
|
|
|
683,162
|
|
|
|
673,430
|
|
Less:
|
|
|
|
|
|
|
|
|
Advance Royalty
Commitments
|
|
|
2,185
|
|
|
|
1,895
|
|
Cash on
Hand
|
|
|
161,981
|
|
|
|
21,659
|
|
Consolidated Net
Indebtedness per Credit Agreement
|
|
$
|
518,996
|
|
|
$
|
649,876
|
|
|
|
|
|
|
|
|
|
|
Net Leverage Ratio
(Net Indebtedness/EBITDA)
|
|
|
1.64
|
|
|
|
3.38
|
|
Free cash flow is a non-GAAP financial measure. Management
believes that this measure is meaningful to investors
because management reviews cash flows generated from operations and
non-core asset sales after taking into consideration capital
expenditures due to the fact that these expenditures are considered
necessary to maintain and expand CONSOL's asset base and are
expected to generate future cash flows from operations. It is
important to note that free cash flow does not represent the
residual cash flow available for discretionary expenditures since
other non-discretionary expenditures, such as mandatory debt
service requirements, are not deducted from the measure. The
following table presents a reconciliation of free cash
flow to net cash provided by operations, the most
directly comparable GAAP financial measure, on a historical basis,
for each of the periods indicated (in thousands).
|
|
Three
Months
Ended
|
|
|
Three
Months
Ended
|
|
|
Nine
Months
Ended
|
|
|
Nine
Months
Ended
|
|
Free Cash
Flow
|
|
September
30, 2021
|
|
|
September
30, 2020
|
|
|
September
30, 2021
|
|
|
September
30, 2020
|
|
Net Cash Provided
by Operations
|
|
$
|
80,538
|
|
|
$
|
15,708
|
|
|
$
|
253,143
|
|
|
$
|
62,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
|
(45,863)
|
|
|
|
(19,508)
|
|
|
|
(103,318)
|
|
|
|
(65,955)
|
|
Proceeds from Sales
of Assets
|
|
|
135
|
|
|
|
8,090
|
|
|
|
12,053
|
|
|
|
8,779
|
|
Free Cash
Flow
|
|
$
|
34,810
|
|
|
$
|
4,290
|
|
|
$
|
161,878
|
|
|
$
|
5,212
|
|
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.