CONSOL Energy Announces Results for the Fourth Quarter and Full Year 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 ofJanuary 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 fromJanuary 1, 2023 throughJanuary 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
"On the safety front, our Bailey Preparation Plant and
Pennsylvania Mining Complex Review and Outlook
|
|
Three Months Ended |
|
For the Year Ended |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
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,
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
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
Total coal revenue for the PAMC segment during the fourth quarter of 2023 was
Our full-year 2023 average cash cost of coal sold per ton1 at the PAMC came in at
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
For the full year of 2023, CMT achieved multiple records. Terminal revenue came in at
Itmann Update
Shareholder Returns Update
During the fourth quarter of 2023, CEIX repurchased 1.1 million shares of its common stock in the open market for
Debt Repurchases Update
During the fourth quarter of 2023, we made repayments of
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
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
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
Contacts:
Investor:
nathantucker@consolenergy.com
Media:
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
|
|
Three Months Ended |
|
For the Year Ended |
||||
|
|
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
|
|
|
||
|
|
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
|
Three Months Ended |
|
For the Year Ended |
||||
|
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 |
|
(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) |
|
(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 |
|
For the Year Ended |
||||
|
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 |
|
For the Year Ended |
||||
|
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 |
|
For the Year Ended |
||||
|
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 |
||||||
|
PAMC |
|
CONSOL |
|
Other |
|
Total |
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 |
||||||
|
PAMC |
|
CONSOL |
|
Other |
|
Total |
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 |
||||||
|
PAMC |
|
CONSOL |
|
Other |
|
Total |
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 |
||||||
|
PAMC |
|
CONSOL |
|
Other |
|
Total |
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
|
|
For the Year Ended
|
||||
|
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 |
|
|
|
|
|
|
|
|
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
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