CONSOL Energy (CEIX) 11 Feb 202019 Q4 Earnings call transcript

Good day and welcome to the CEIX and CCR Fourth Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Nathan Tucker, Manager of Finance and Investor Relations. ahead. go Please

and and Jason, conference everyone. to Welcome Thank Coal good Resources Energy CONSOL earnings fourth CONSOL you, morning, quarter call. XXXX

expectations not risks, for otherwise. statements make or in forward-looking in forward-looking comments statements filings. are future obligations releases future subject We of SEC do any Any our press or to any we which or some our have undertake outlined events about we updating

reconciled to will to which and We X-K. be are our in non-GAAP discussing the Form furnished GAAP measures, financial comparable press also certain on and measures financial defined releases SEC

You find information www.consolenergy.com website, can also on www.ccrlp.com. our additional and

With Chief Financial Executive me Interim our McCaffrey, Chief Jimmy Officer; our today Brock, Officer; and Mitesh Officer. our are, Thakkar, Jim Commercial Chief

a closing provide recap insights an program, XXXX. will Jimmy of guidance. and financial prepared in then key for priorities update will management session. executives during will his results the remarks, lay prepared XXXX marketing on key participate Q&A comments, his and After on all Jimmy three then achievements specific operations. our XXXX and Mitesh will provide In liability our remarks, the our In out

we supplemental on website slide advance posted additional our call. have of deck today's For in information, a

let turn CEO, that, to Jimmy over our With me it Brock.

and Nate, morning, you, good Thank everyone.

capital for translated declining into XXXX we was deteriorated year stock in then markets. which a prices very general, our to as in access degradation industry prices, difficult continued to commodity and see

of were well, for that securities out XXXX. the financial we coal as goals beginning we at our Although several malaise of the ourselves caught achieved in whirlwind broader nonetheless industry laid

absolute achieved CONSOL record the of record successfully debt. and performance, our Marine Pennsylvania credit loans, reduced EBITDA production year We Mining in sales delivered our our safety significantly volumes and near improved term facilities level refinanced Terminal, at at another Complex, our

revenue geared streams may made also and project margin growth future. we provide toward in coal that believe launching our investments strategy our of We and high advanced uses alternative by Itmann the lower-emission

now success me provide brief you recap us and a XXXX for of beyond. in with XXXX positions Let and how it

XXXX First, incident the a total by industry safety XXXX from XX%. at reduced as reduced recordable XX% total the our by front. On on improved and year-over-year the PAMC number of was we basis, the performance rate differentiated further we from average. significantly exceptions our

the CONSOL As we XXXX. incidents compliance during zero Marine Terminal, a and had record XXX%

of The and loss in significant overall members for performance a and the prayers the despite thoughts forget However, cannot continues safety one year, with and improvement entire our our remain his his mourn family XXXX. in tragic loss to family we Company CONSOL of friends.

significant of We safety have from nature protect core and remains accident measures top future, reoccurring value. taken our to in the an this

incidents. zero We life-altering continue to strive towards

Marine Terminal performance. Second, EIA level XXXX largely coal considering CONSOL its performances, is highest the despite X% from Pennsylvania also difficult This record, while Mining history. again the XXXX. backdrop. both, when in to set marking new U.S. continuing the is the produced Pennsylvania Complex unchanged its Mining CONSOL market strong especially very second the annual operational production had Marine Complex million Terminal and level XX.X a tons, from which XXXX outstanding a estimating record by revenue declined third revenue the that in safety annual record set consecutive XXXX, year, The total production

the products. our of trend, base once we and which superior As market of quality our such, defied broader asset operations is our two well-capitalized core the result believe again a

performance let QX Now, operational me XXXX our detail. review in

X.X fourth team quarter production performance the which X.X of in flat year the to a period the Our operations with of compared was tons. tons, million relatively solid year-ago finished million

million record in year. an tons, set surpassing third XXXX, again mine the Harvey consecutive the addition, marking production X In individual record-setting

Furthermore, improved costs, of due to our by Pennsylvania and XXXX, slightly and hour, improved supply QX XXXX. reduced tons per the cost to contractors at compared employee cash Mining measured XXXX, production compared QX purchase For to services. and cost maintenance related mainly as productivity Complex, was to QX X.X% other

For of during to was flat which the XXXX, the tons X.XX quarter. year-ago coal share CCR relatively also million produced QX of its compared PAMC,

had The the quarter, CONSOL period. volume of Marine X.X during Terminal throughput million X.X tons tons to million compared in the year-ago

year-ago the million, Given our operating for at quarter. a and contract at were compared also in costs take-or-pay in of in in line terms to year-ago unchanged $X.X terminal quarter million quarter. our at $XX.X shipments, largely the $X.X $XX.X decline the revenues despite were million the terminal the versus million Cash

the markets and of an on tough and overview had XXXX. a update our an Let sales now performance me producers coal markets and Coal provide accomplishments.

the However, hope in second provide half for there that are of XXXX. some improvement an indications

Wood export on XXXX, new the X year-end spot resulting discount coal weighed came to projects in API even LNG being XX% growth global to remained in Australian prices as region into spot under U.S. down Asia approximately front, Mackenzie, Europe. grew the of at ended in year demand especially in According in XXXX. X% a LNG sold line in XXXX, on lower First, supply XXXX. the glut Europe, and internationally, stalled, prices on Pacific and while pressure a LNG LNG demand compared a

revenue kiln India imported of Northern X does coal is in our contango. to supply Furthermore, years. the LNG brick viable. recent Mackenzie, the pricing, off API million remains supply, BTU which LNG per need the and According dynamics beyond. partially new tons LNG growth in in be most in see shipments. expect in this reflected anticipated coal On And projects to export and strong driver continuing coming increase a This the X prices over and $X demand XXXX. we're to API Northern in meaningful LNG for also which approximately particularly million X expected not is correction positive price slow in number in App we note, XXXX to Wood for demand to decline market, is App economically India's

gas period. in XXXX. This remained domestic the and years over based down noting to markets, Utica for supply XXXX domestic the gas continues our XXXX coal. be weighed through growth In reported to slow considerably decrease XX% dry A compared and to next compared improved prices to on annual to power recently XXXX, is on that to content approximately the expects the development Marcellus XX% EIA is sulfur prices coal natural producers compared CapEx consumption. in guidance It domestic five rate were and XXXX also XXXX worth specific expected under of pressure the so CONSOL far. for market average the

utility resulting sulfur in win-win met moved in mentioned recently has past, and As of to aid. our our lower potentially well market received at domestic more. market, our customers. high at cost We quality quality in and been coal consume has the them and us share additional for we The lower benefit domestic we customers created receive one longwalls and dispatch price. a This market a the by capturing to have the the low a allows

from another announced there production trend in to positive Low a Supply markets. also cuts. also to to production U.S. coal the XX markets. continuing cutbacks global in prices responded drive is put a of thermal We're the of us levels, several since of starting the coal range. rationalization internationally. DTC, beginning mid-XX total thermal the are XX exports response XXXX, could According see million have exports tons that supply XXXX under U.S. estimating have been ton approximately with million are we're DTC producers, and million will which which is coal seeing XX% fall including response, similar

tons Indonesia is And back now, XXXX. tons scaling XXXX. output in XXXX, in production the coal in its following XXX from late million production XXX began of down Colombia set Indonesia suit. million target

expected which a help potentially tighten net rise XX reduce basis, this market. supply Indonesia On XX by the However, tons million Indonesian coal in consumption is XXXX, seaborne from to to tons. by should million could

for producers We be U.S. possibility power demand occurred potentially required over existing customer half Northern our to plants. SOx that coals. in App these for reported for XXX compare technology to gigawatts this that XXX% installations wave From use the Of up growth higher retrofit of of and capacity selectively installation. scrubber by a Illinois positive IHS at ago, coal-fired significant a to desulfurization base price desulfurization it Basin coal-fired Illinois is compliance and led of in marketing coals coals control App which a Finally, opens for India, by in of Indian the years XXX and maintain flue Markit sulfur to This taking the about perspective, will expand XXXX. identified continue installed share. been to we market have burning as the Basin more development gas Northern and gigawatts plants

added approximately X multiyear we tons for quarter, business the of During new delivery. million

of our sales XX% XX% approximately now contracted XXXX, guidance for assuming midpoint and range. for We XXXX are the volume contracted coal

at growth Let efforts update Energy. CONSOL on me and our now an provide strategic diversification

announced XXXX, the During Itmann We falls project, which economics approved this bucket. our we morning further. growth the improved that Itmann have in project organic

We at annual anticipating run rate maintaining range. of production approximately a tons are full XXX,XXX production current now our higher CapEx while

bucket, adjusting successful our capital geared discuss alternative which spend the our capital of are of Mitesh More timing technology uses in priorities, several were fit in also made which recently, toward investments level shortly. We to will corporate we coal.

in coal. total meeting one for CFOAM U.S.-based in formed high-performance demand The expected $XX market an focuses industrial, product aerospace, example. carbon materials It annually. LLC high company, subsidiary markets such over investment is whose manufactures, is commercial the on and CFOAM with from newly addressable wholly-owned products Our of Corp. product billion grade holding a foam military CFOAM

These geared and toward DOE-funded with product University of We're project global Ohio other also a $X partners markets partnering with coal by an composite are composites. industry billion the materials addressable XXXX. approximately market on develop other to building engineered plastic expected and decking

matter high partnership make will significantly announced product into the to there as for a applications. to two but value move our waste bottom-line our used product in our Finally, used refinery high develop contribute fuel mineral as and can to year convert or The continues goal The carbon is agriculture small, we products, a feedstock technology quality that previous that in X a be as investments time. amendment to other be coal soul that with to forward. over bucket a has the a applications, potential have potential are slurry

turn the provide Mitesh updates. to now the will to I over that, call financial With

Thank morning, you, everyone. Jimmy, and good

capital our strategy. the of our review XXXX me liability Let our results then with on start in XXXX will update financial guidance. I our and allocation introduce efforts management context for an

very of we our balance Over profile focused the the on past sheet. improving risk year, have been

were capital reduce the XXXX, spend cost reducing to This heading and of prices priority, we taken on and volatile XXXX, into laser-focused top significant commodity steps to we achieve capital remains of While our arbitrage. advantage have our were throughout our goal, take that debt.

declined a gained lot our As you financial are in as extended expense, This our coal before our Term to due capital already in very are those have XXXX. flexibility in steadily the aware, energy level we B maturities, through of ESG preparing early absolute reduced and to able in to then With industry debt was and general concerns. mind, has interest capital since our of lower successfully effort in ourselves improved market we to matures. our refinancing significantly particular timely constraints XXXX access Loan be liquidity

have active the tremendous of have in take We we the very and the decline been prices in market. also open public opportunity the our of recognize debt advantage to

during of our repurchased after price market, nearly total open able on November we In redeem debt. we XXX.X. to at In lien outstanding or second the XX, towards payments which of million in XXXX only million $XXX XXXX, call aggregate, made we net are of $XX.X [ph] XXXX, a notes

continue have over $XXX of million liquidity. We to

now the On to spending the capital XXXX capital compared maintenance well the in are spending as capitalized significant mines a the periods XXXX targeting at front, strong and Pennsylvania are market commodity we of very now Mining XXXX. levels Complex reduction from

to flexibility front, of several take and this. capital made the the project benefits offers that spending. On have also the Itmann growth decision are doing There the defer some of we advantage

debt First, by down slowing reduction. the capital towards that can development redeploy we pace,

on $X.XX more lien XX% projects. rate second yield-to-worst notes to on with development our currently limited approximately return are a an trading and at instance, basis $X of compared under a profile risk offer For

coal Itmann on attractive origin U.S. very coals prices the longer met to market. allow more significant Second, Delaying are and us there pricing take in into not term. China, advantage are depressing will tariffs overall favorable of the

were conditions meaningfully improve our quickly in near-term, can ramp up market the pace. if development we the However, to

XXX,XXX tons noted, Jimmy tons now earlier. Itmann will to annual approximately XXX,XXX reach of announced As compared production we

economics the So, project have actually improved.

million, legacy managing for very-focused level. been approximately employee compared which a have we on legacy is in liabilities to since Heading company cash payments liabilities our into XXXX. we expect separate a our We XXXX be became to $XX public XXXX, late reduction

This last experience Secure have rates, offset after sheet legacy due favorable the two increased over of the by On years, the balances to and balance sheet mostly balance the very our which partially declining modestly. liabilities our discount in front, Act. declines were significant passage is claims

With on CEIX review to fourth before now recap our quarter first, then the that, CCR. and let moving guidance. results, me XXXX We'll full-year XXXX

CEIX to and metrics prices $XX.X solid with or by EBITDA $XXX.X year-ago quarter compares West The result and higher a improved cash is compared reported million, respectively quarter. earnings of in adjusted This share, to period the net power million of in million a mostly attributable fourth expense, the costs. operating diluted income year-ago offset partially the PJM decline CEIX our per of lower shareholders share $XX.X $X.XX per diluted income and $X.XX to $XX.X million. tax

during price domestic quarter. export fixed the well performed Our contracts and

we $XX.X million and from capital $XX.X In XQ cash of spent expenditures. XXXX, operations million in generated flow

result, organic function receivable was balance a $XX.X adverse $XX.X of million $XX.X cash of million $XX.X income our taxes to paid As working of in is flow, XXXX. had free impact million the in by timing and increase This impacted an outflow a CEIX mostly million capital a due QX credit of change. which

full million In year in we working adverse change. XXXX, had $XX.X capital

million receivables XXXX of year, with as impact payment our $XX.X performance. from discretionary coupled $XX.X in paid trade XXX(k) million resulted as to strong compensation $XX.X the timing increased the On which income XXXX well million XXXX, by taxes in due

$XX.X a reflects strength put reversed things weakness which had changes XXXX. of the markets. the essentially we to from changes benefit capital working The perspective, XXXX, million in in AR To commodity in balance and

of our One for our key working net improve capital. to priorities is XXXX

leverage range. adjusted reported around of with we right XXXX, guidance the of $XXX.X the year CapEx a CEIX of of million X.X our midpoint were finished For the times ratio net EBITDA $XXX.X bank both which and for million, method.

CCR. income fourth million, and quarter. the you let respectively million, million on million, This compares morning of net quarter. the adjusted Now, CCR $XX.X of reported million $XX.X $XX.X flow for cash update me EBITDA in of This $XX.X $X distributable year-ago $XX.X to and million

of $XX.X midpoint near adjusted in which of CapEx million, range. full the the the we high full XXXX, year Furthermore, was reported guidance our CapEx For at came our year EBITDA was which of slightly range. million, above end our $XX.X

in debt which cash expenditures generated included net CCR million of outflow XXXX, accounting capital. QX net After in In $XX.X million with by finished times. working the million $X.X distribution an $X.X leverage from ratio our a in operating for changes from $X.X million. net in X.X activities, increased CCR million year capital and $XX.X payments,

the ratio $XX.X mainly year times of balance. in a full year. a $XX also nonetheless includes million a operating in incurred net adverse X generated million CCR maintain by driven for from the $XX.X in CapEx activities which coverage receivable For million, cash trade working capital, XXXX, change but million our increase $XX.X CCR

our let for outlook me Now, XXXX. provide you with

a ranges of before, continues in potential our philosophy we provide. to capture guidance outcomes the and multitude stated risk measure As

we XXXX sales the Mining levels. Complex, our Pennsylvania be volume are to below our For expecting XXXX

flex reminder, last approximately we a for up The stated doing year that the were that XXXX are the based during is run call, we conditions. we and down what can in is, the prepared As market now. XX% through to we and news good on market right contracted are earnings or

of bound XXXX in CEIX The a belief of sales million markets to including in the allow some The reflects opportunities. X.X coal us to a winter to lower would ability CCR. X.X reduced to of which market considers XX.X modest providing trends, XX.X spot tons international coal are improvement deferrals for and and we demand million risk to spot coal coal sluggish bound second such, sell As million weak our 'XX, of due of potential tons capture half markets. consumption range and volume million for upper below-normal

volumes linked $XX per to our in be in our continued to reflect ton currently potential power for we revenue deferrals, To average weakness range. contract $XX the price expect the and

linked guidance sold our floor leaves captures also are for scenario some a range room potential the prices, price Our at for power upside. contracts which in revenue which

XXXX cash midpoint, sold cost the relatively be flat ton. Tax ton $XX cost expect of per we XXXX to to in $X.XX XXXX. We be coal in At per to December cash are expecting increase our $XX.XX despite our to compared Black Excise Lung the passed

the efficiencies. adjusted $XX due XXXX we is XXXX, $XX of up, for be to runs that As of CEIX expect we expect constantly Terminal and of Rolling or $XX the case, ways always it the to costs Marine and full-year range take with million consistent reduce improve an million million $XXX to our to we on and XXXX. EBITDA the the for $XXX adjusted contract $XX for all focus nature CCR. to CONSOL million million the for in Also to pay EBITDA million

As our for to of These reduced spending and equipment-related for Jimmy $XX we earlier, are range items $XXX and guidance capital PAMC. million reducing XXXX a million $XX mentioned providing for reflect CEIX and to million $XXX at on expenditure structures ranges million CCR. are the needs

spent. also Itmann CEIX, the to For timing our the it adjustments project reflects capital of

to Jimmy With comments. that, let some turn to it final make me back

you, Mitesh. Thank

to me let out lay take of to Q&A Before session, XXXX. the this opportunity our some move we priorities on for

be our prioritized foremost, strong has strategy and First no sheet, balance different. and always a XXXX will

reduce of interest We price leverage our debt to our dislocations overall will our as continue of well in advantage take to the expense. the as securities

spending a that equity growth now. is the that growth attractively growth to allocation more allows slow approach has become through involved our forward we priced, selecting on of strict the earnings commitment This have of an strategy which in to we're mentioned, what taking as our and capital and capital doing return basis. importance the levels stated of and we adjust deployment us a exactly highlights calls, to capital the In past Mitesh avenues of As ongoing securities are our our strategy, previously flexibility measured all willingness down shareholder debt constantly manageable strategy. involve also This execution. timing projects and our evaluating

you from to downturn. Second, we capital can levers guidance pull a in always necessary our are as the market range, see prepared

successfully We our in XXXX. us We minds have weather capitalized capital to of to in this market requirements in This our downturns. ability our well strategy due gives markets. strong effectiveness XXXX keep to reduced spending willingness prove the the

for at at midpoint sales the XX% our are guidance, stated Finally, we XXXX target above is approximately release. last of contracted volume our which earnings our

We market X export for million year also can in position terminal contracted the if conditions we increase through have Baltimore, warrant. tons and, our that

As portfolio on have and in can our heavily year beyond. visibility for revenue such, good and strengthening we the more focus XXXX

The continue we report are highlights second that From deploy coal reduce goals throughout footprint, utilization, our annual carbon a cycle. stand-alone operational strengthen that our efforts, report, to extraction performance sustainability As and we for against life announce differentiate to innovation we of the provide our pleased company. efficiencies, release ESG the our our diversification. sustainability as CONSOL to to technologies opportunities continue increase

markets sustainable than cost, energy critical operators As ever. low and will quality become the coal need for evolve, high more

return balance are and shareholders summary, for to ESG we improve are; lowest flexible stay most need. to produce and our in market is a the at the As through XXXX nimble meet form. CONSOL debt priorities capital to of operational our to compliantly so repayment, prepared In our result prepared to safely and endeavors, the and to our continue attractive cost, possible coal sheet high-quality key run that

call over the I for back that, further will instructions. to With Nate hand

Jimmy. Thank you,

can session Jason, please callers? provide to will We you move our now instructions Q&A our the call. the to of

Riley Please Lucas [Operator first from FBR. Instructions] question The B Pipes go ahead. from comes

morning, everyone. Hey. Good

Good morning.

Lucas. Good morning,

level I somewhat and question. maybe a So, term, have longer also more difficult higher

you guidance to of is kind and about that morning the outlook. seems strong considerable cash cash So, another And debt market trading. of express very where gave with the this flow doubt free flow points to long-term your year The generation. stock

of I the share was hoping could could but I be just on really would from outlook. Thank should on capital the I And CCR? but big the cash any color so, you cash point think items guidance, we current well. the And you know consider look I take appreciate a items as great then, you any your major your that very buckets. costs liabilities? that market legacy perspective the your operating I in and on think -- distribution some maybe Obviously -- long-term maybe as you're where sustainability some off flow you side table cash position appreciate XXXX more looks of cost would perspective or could that that always the in the are we kind the -- much. other you you gave such pricing really environment, at there and there your are on would

going are as morning, flow over call higher some. to Well, lock we cheaper quality which is about Enlow It's have more we which the our But areas before year. reserve talk we Jimmy don't the said, give put a you should better moving we we've operating Lucas. earnings sales move here. our and of mining, a move with of looking one on us sulfur reduce reserves, and in be Fork, lower. our at We'll east some subsidence Good of those for forward, let's our that the favorable is -- our And in lower past some footprint long-term. number think cash out guidance costs coal, said content that it's

So goes. as we in far the as the overall cost that'll help think portfolio future cash

that for believe then, on you look little allow talk uses participate some us when in of between of away that that and about peer revenue, continue continued we mine Itmann then, can that And or said ways that from complex product. the excited this be, online have bring other to we is coal we've front, coal many reduce production before, maintenance to capital diversifies future will potentials, a need capital foreseeable And in times operate other into $X.XX a that us at $X somewhere still and course, made of heard a they but for come costs. maintenance our about we well-capitalized bit Also that to generation. continue I investments is ton of the coal to a with when capital. And these metallurgical project could getting bit to pretty will this coal-fired little us look lowball for we morning the

think looking out as employ long-term, to as help improve I So, we generating we footprint, in free will us our and and as the on reduce us well things the continue for technology front cash and revenue. flow innovation to cost

gets that And Let price look the me that's are that the Northern Lucas. out sulfur customers for east half is carrying so such coals. that that something add a cost, have And we of well, working utilities little that it's helping coal customer more And FGD that Xcoal high blend part without and our international, to cap also sulfur is, those than And win-win. Jimmy that more Enlow to our you technology the the we when on next bit, we're manner share with we so see strategy. India, numbers Jim. sulfur panels on increase coal gigs App effectively, the of that Fork. a us burning still sure their we're retrofitting FGD we a plants they heard what installation, is several of develop making in that talked can about of increase believe effective we -- PRB certain you quoted can is our will we believe at XXX coal we of need the a do can the or have years that big the that This more allow and Jimmy we coal. all allowing and that a and about certain that

there's power We're in to the have in there a tons with plant our million it We some Dominican that began new last also Republic, a year. the in past, spring. see advantageous talked working Vietnam. burning partner And convert really It there. opportunities X about we

the coal or got burned coal coals, portion chance a itself. out and out now for a it's to for going the a burn that's now, RFP Bailey So bugs and by has plant. included Bailey the significant All is large they plant worked are -- that our to in get of directly

opportunity. at marketplace. today's we certainly confusion you that as the So added look the tariff market the long-term, situation see an to when versus some Then,

I as that think that think the although now kind I [indiscernible] again, met short coal, some confusion we that’s balled ultimately coal in But, term. is into to a may works starting that have some bit to the course, China -- met little diminish the maybe some, up well. coronavirus of the of have opportunity we some get more crossover

the take Thrasher back So, that And I think keynote in XXXX to need Ernie $XX.X the -- China In said is and $XX products would billion on he speech. Chinese the energy gave XXXX. table. the in Miami recently, Ernie billion in gave

having but Ernie are weeks those about that, of up followed with in the couple Now last numbers. significant

additional create opportunities. So, they also

partnership, I advantage But of a gas we're losing all low little year. and I'm the not in opportunities with of all of So, reducing term, of winter. bit. we are our situation perfectly have abnormally little We're take our I still on we're guidance rather long is a the of significant key where would portion us the positioned winter portion not fact the our Baltimore a think today have in is that. part bit And and customers, any just the resulted quarter there, that Thus, typically tons just market. the we and burners, those a had are a in significant the bullish our had that and prices think in them, the winter in that in first terminal to of

all your side. export and Jimmy current appreciate super with My confusion there's Jim, super, color. of your the considerable net-back on is helpful. the That's I affects follow-up pricing. how market

it the market they're the very think X. API But indexes India, How anchored and I really on Newcastle, model when pricing your look of over historically should weak. you. think today's API X South to analyst in community been stronger. would helpful through about Africa, in Thank you I how considerably some be world? has think reset is the at we everybody to this walk can maybe on us be you have correctly.

And X perhaps bearer Well, past. India, X other for less into Southeast the quite Asia, just coal there's API does Europe. applies. coal been some less and more going not the has countries It's going time. where standard API the Egypt But into in and the done obviously

Miami, about conference there just anybody doesn't X an to the API because at X replacing index. or is used So, over the it API discussion bit as not backburner very by apply all was much quite X API world. of basically recently the in moving a being

to I the Coast freight expensive from good the deeper of generally is South The find and India. Coast Coast to from people Petcoke are we -- less think to has going from less into it number; Africans certainly, East a the passcode and numbers that attention freight traveling US to burst, think, area. -- number don't certainly number. therefore, manipulate speaking, East US to so the that the Coast Gulf India. And We pay the a India significant. the both the East it's expensive

think develop the sunset. think fading API be I they'll that's we is more I forward. go things X little think going today, mean basically as the So, But into of I state the to bit I a

And one are for business and modeling still around me, because you the base important is price numbers is how maybe we is should some sense economical really in a a the export think get volumes investor really API put to market. there this What follow-up in are XX%, today's XX% really just of of model I XX% maybe and for would your If it? it question. important, is export this X How today's world? and -- maybe it's stuff less it business

coal X price. is million I if almost so. last think to bit, tons pricing last a into India we Well, went Europe X.X to India I year, like that did some priced I have or looked million Lucas. the and X.X that, almost We or year, negotiated guess, But off million little pet-coke tons shipped about X have million overseas.

on that it that, Let of get me about just I in terms back thought and haven't because modeling. Lucas you to think through.

comes Levin Benchmark. Mark ahead. Please question next from go from The

the for this guys morning. Thanks, great. Okay, time

color Could XXXX, sort XXXX. bet question, you some it contracted to for looks give First pricing put us tons zip how XXXX code in the tons about in like some many code? you you of zip --

Yes, Mark. We can.

of in much have XX at tons pretty million over those priced a bit million X.X market. fixed little tons We are domestic of sold,

million X.X contract just large going of netback, export. tons forward. XXX,XXX And of have We our netback tons today,

pricing yet, I tons at slightly on assume is that the guiding those market. can So, we're fixed you or but the not think for domestic current above

kind forward Okay, got you mean just for curve of that, that of by sort the using of coal it. And maybe desk...?

desk like that. someone Coal or

or have have you a sensitivity you the in given this year? guys PJM question, for to prices. modeling Second West guys revenue price past, one ton sensitivity per Do power

with a like little back say market you but with talk to I here that do pricing about low this have And we're very was year, designed point this is. mind, in it for would gas it far power sitting one winter I this say be the Mark. bit because that net so also and with to this prices. contract year, you and that, know, And would no I'd -- unfortunately market don't this and if I

begin in we some $X.XX above PJM West from to benefit entire have that portfolio. base give is $XX.XX. a Just have to share change about cost customer prices with clarity, are then, we adds get price And PJM you our total or to our $X up price line and across around approximately a said the the we

pretty best you designed winter. the the for look gives us pricing contract know when based year much is the I upon this So,

the Next very then prices should summer best fell months for January the XXXX pricing. But lowest pricing fell, and a you in obviously shoulder and slip the been gas power price month, the the and low has give price too.

over share back July goes on. anticipate $X going And contango. better the is as in and does in curve that we're So, looking year gas will at forward get the some we do market we get it

We earnings this have basically forecasted for call.

prices forecasted have We the the floor. at NASDAQ

for I can't worse this to opportunity than we've improve. what reported morning, think it it do any there's So, get and

then, the helpful. domestic very market. back That's on it. Got And

do to deferral year from deferrals, How then, or -- last emphasizing did prices gas In this going is terms guidance from the the utilities than look worse much look year, it your environment? went gas than worse it time to you of have below, maybe deferrals, expect deferral the the guidance? too? and guys perspective the this buyouts And at seen much volume is from in this deferrals contract for how baked you

a so had customers than have more of had or two far, pushback. we've Well, that little bit just one

is they're are far. So, or the may one so customer that but all, behind, customers the portfolio rest performing. two be performing there or And in so all of trained

and played customer buyout will a We significant at buyout, higher could problem one I million X.X we just that a the perform tons well this tons, on. to And for those year. not we which already so price, don't need tons those did be think year goes a resell were of we have the as

Coal guys that my last or your it done are thoughts or but to it Act in throw past how question, lot you the because a approaching questions it's many Coal out as I thought is comments there. and investors the just can Any know provide questions final have get would And lot one, situation? that about it. and for sensitive a incoming -- surrounding you Act. I Got I incoming bankruptcy. potential competitors' liabilities of of the a

is, Coal to remained or legal of understand has Murray's current and question obligations such Yes. we from sensitive the on the questions were as on bankruptcy. is can't it answer Act Mark, liabilities current of what we that course Coal Act obligations bankruptcy. a Murray And Murray the believe the bankruptcy. we speculate But

for it liabilities believe its from is acquired no in its to that business. we successfully reorganize that is Act and So, to change modify for order CNX there basis to Murray necessary Coal not

about large this but can before time. say a at stated Now, that's we bankruptcy, all as it I and is complex

any understand staying -- it. and all it today. had have and haven't we But we with we that's are monitoring claims We about can it, the about obligations we say are but that current as

Clarksons. The go Please next from Daniel question from Thanks for. ahead. Scott comes

and How So, to being planning at volumes the of it on just if Just down. do Is you it guidance all keep are that, are you by going you contemplating or one volumes? year achieving those all there the for longwalls look taking when running you your is kind lower on me shift this market -- walk a year longwall could. conditions? off, based through

in at have XXXX XXXX. through experience went we We and this. Dan, unfortunately, this Well,

exercise here the at be the operations run will generates cost possible margins. So, our to highest the lowest which cash free

reduced specs at be lot make that So what to a need us that could marketing depend it that longwalls, schedule. it four all run. a running will the quality And and running could we this team tells on be five we need of to

as that meets to that gate half hope at specifications said, we a guided going to the more there, at to do the this have morning. team an numbers schedule, the forward. we one is will of of we all mines. that second starting cost. allows it far some run upside there to like And good to So, possible will at have turnaround we I will we've sort be than go that coal as lowest a schedule us to reduced very likely out the as in operating of us run the provide be three will But year monitor continue the opportunity and then But these

this very is for just Dan, is first we half number our add have which that loaded of unusual I'll with longwall Also strong. But quarter year, moves. typically fourth

be be recover. to really market in half. we So is if the low a move well are a going operational positioned And recovery, longwall standpoint if capture from think expecting production second to first from the the an half I we'll perspective,

So, think to weaker standpoint operational going an first anyway. little be cadence standpoint, I operational an a half bit is from from

Yes. to our that, we in mean, bit to moves And of longwall just it on be we've quarter. could I the have a follow-up more, and second four three one four just at little completed Harvey,

a upon of will it move then moves to. second that two, who longwall in last or timing So, half one depending the worst only one

math at this And then, at the I my X% XXXX's in midpoint, quarter, gains think down it being it's X% neighborhood versus look by year, the prices. until this to about when realized talked we looks the for realized down. more of And up like I price close

the year, outlook driving that that what's combination we decline more higher I a conservative to put this to all book bed maybe the the additional in With assume collars. Is get that's terms XX% XX% realizations? plus domestic that in around slightly to that of

back net Dan, pricing. the it's all in

Okay.

the So, are now forward we X% when were floor step less that you prices, net know the price. than the back using provided is we on we which using

driver. I the So, that's think biggest

Yes.

Then XXX for capacity. and the you to last, run some What in conserve range on the debt. full going stand higher into buyback is guys as Itmann it's market ramp to this slow based mean ramp, cash When the going be see, to for that XXX, does potentially roughly coal? -- down I rate, a the on went that be benchmark

full take Well, up X.X ramp would that to currently to X year that to a what year it production. we've said

get XXXX somewhere up of units could and those push XXXX, that So middle all us running. if we into of three

based pretty the right is -- month here first to develop that sure that ready about But that, Make we the respond. unit. look we're would we're do then Now, know could be this to guidance for on core to one say the gate the I sure what in we we'll add to day there. the that much be and -- a to we market sure get make mid-XXXX, what at will we and to exploratory that do the there, obviously roof at and and data Then what as of have waiting go unit, just do our before, this develop which we'll a one quality more coal range unit, shows. I up second third everything is control have sometime else about seam shift at four run talked to the mining Make today.

go comes next Nick ahead. Jarmoszuk Stifel. question from The from Please

it? on are and us anticipating could you amount On split maintenance that the CapEx, between guys the you XXXX a give

Sure.

ton $X maintenance So CapEx. are at Complex, we Mining Pennsylvania the on mark around a

Okay.

And the rest CapEx. little and efficiency of it bit Itmann of a is

that relationship in earlier mentioned have Okay. with call were they And then, the well. the as you Xcoal, on

the take-or-pay, to looking eye. terminal you with markets how relationship about you working they're the and scrubbers the that them You have guys with the the the think export are Could that about talk tonnage Indian maintain? then develop you them, to

revenue the that we Our solid. relationship terminal, that certainly gives has sales the like good We pay us Xcoal every we secondly, is with know some people have in almost And It's corner or world. steady Ernie a contract at in one. the take very there. it is

He the we been on feel globally. It contract. with market are went Jim we those but and And some we very very coals. far point, with a has us through opportunities. add would would it. our pleased want we're to of to and our to satisfied able Xcoal total of deliver, for him he good helps we're brings so And where customers visit. more talk what's going also color has strategy that, to with with and move probably we've the He the say, where contract, some get and to like I today we of to global market visibility to this So can with

think much I that pretty covers it.

background Nick, is noise on that your side?

quieter. makers yes. probably The were It is,

when coming we expect do the could them to it? on anticipate some and renewal contract, Xcoal market the or extension, when the with With you discussing news

year a negotiating have of even out when start we XXXX. second We XXXX, understanding following years playing through little contract we out through contract. currently full markets are half the XXXX I somewhere the a have would think would better where year, the that of

policy, CCR, on intercompany the then, notes? start thoughts any And paying of the Okay. distribution changing there down is

we things. understand other before, comes basically things, flow do all we for is annualized be times uses look CCR, lumpiness, many those said that look we but quarters that CCR CCR basis. there's cash to as what And free We Well, an at with understand at down on do generated. I've it can of

we different down the Board or distributions comes not. whether to or of to there's At end at. it things look not the to decision, pay a day, So those

some of the we we we day, XXXX, in what coverage that at quarters looked example, quarters an ratio, exactly did. had That's were those our cash, the end some we distributions. the paying we to X% unitholders had committed that we X%, X%. generate For be will if at slightly over And we're we under

Going a the recommendation or we forward, look decide We'll a not. at same it's not distributions the to Board, and or make paid exercise. that, they'll whether take then

working then, that And Okay. XXXX? for in use capital as we how about should think a XXXX,

Yes.

trade working were So, changes capital it, that cycle. And say, you were Nick, depending if the the you driven about, due where on million, million you market receivables. $XX think see are is $XX to about what of mostly by let's the typically in

positive For instance, a capital adjustment in working XXXX, we trade about had million. from receivables of $XX.X

things, faster, as as on XXXX saw in focused -- much XXXX which the payments anticipate on depending not happening collect might those And has were -- A payment so what our -- million impact from tax essentially, match two XXXX, that's in in match. income on was. some what and XXX(k) we year one taxes was discretionary receivables XXX(k) receivables for definitely the that trade $XX in smaller not gave so area to strong couple the another are we XXXX. for might all Trade XXXX, income been be is of XXXX. of year. we focus magnitude, related on back where We were and don't XXXX, that other So those market a there

I'm that be So there a aspects XXXX. if in to from those inclined positive anything, say will benefit

be number's of first just the cash know question in that what I last quarter. Can be? to then, flow going sweep would And Okay.

lien in I think I second given don't that the any have of going amount XXXX, the B. sweep debt Term free cash to flow think we're bought we Loan for have

from Fields question next The Please go Instructions] [Operator ahead. comes Bank Matthew from of America.

XQ. in you quarter -- you purchased ever Thanks bonds have more disclosure -- bonds for first everybody. the Hey, the second to-date? lien any repurchases on the in bond Have

the you repurchases, you following bond volatile. So, are as bonds approach very are Matt, know market, to our our bond --

We we did year. try this bits given week. in earlier we you some So and, and right, not in are to do any bonds significant pieces anything do buy

but done I of bond we continue that. do So probably think, we'll repurchases, high XXXX, to digits have single

remains I is like, the we think plan market our where game same predict can't going. the

going over have has coming out --it six we in way dollar-cost And down. because our favor to worked just averages. months, in three So last are to works the prices it a been the

Yes.

yield. XX%, mid-$XXs So today you right XX% your kind bonds in that, which given the of are know now is

XXXX on do now during given in IRR -- risk investment? last will of attractiveness be -- that repurchases that sort think So, of the plus-XX% of year, sort aggressive in course over more zero versus the you

to would aggressive, to I continue I say more would maintain not measured approach it.

above participate We noticed as we marketplace. capital have in Itmann, that so will elevated of strongly we the how you to can about But feel return that to you imagine that. continue project the priority

Yes, currently, it today, our ranks high returns. where pretty among it capital sits allocation

up on a Q the on that CCR intercompany to distribution, you but Okay, really good is great. loan yet, continue? K borrowing but practice I And that that follow And this next the then that that for have to months, or I the should on sustainable Don't pay through question wanted CCR been got guess basically the nine how has distribution. distribution. yet that chunk know and of I

conditions a annual could change. has generated things market think, CCR the mind. is an expect I we speaking, in at we about year. distribution too it's generate generally So, in whether like outlook enough And look quarterly to again, again, tell to basis on or the -- Jimmy enough it early we'll think said, distribution with way But

to change, April that things our till and think you could I tuned for And stay sometimes have will decision.

turn This session. any for remarks. like over Nathan concludes to back Tucker would closing I to our question-and-answer conference the

Thank everyone's interest look quarterly you We to our support questions thank in the and earnings for you, your of able CCR. Thanks your to answer time were we next Hopefully and everybody. CEIX today. Jason. appreciate of and this forward We morning most call.

concluded. for you now has Thank conference attending The today’s presentation.

now You disconnect. may