CONSOL Energy (CEIX) 9 Feb 212020 Q4 Earnings call transcript

Good morning, and welcome to the CONSOL Energy Fourth Quarter 2020 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After this presentation, there will be an opportunity to ask questions. Please note that, this event is being recorded. I would like to turn the conference over to Mr. Finance Relations. of Director Tucker, and Investor Nathan Please go ahead.

future any morning, SEC to Conference risks, XXXX. are Section CONSOL you, updating make Any Nick, Fourth which Welcome good and about considered our the we in Securities statements comments Earnings Thank we Energy's We of have to our obligations everyone. Quarter XXE statements or are not forward-looking outlined Exchange statements expectations any subject forward-looking press some within Call. and events releases of future forward-looking filings and Act do undertake of or the for meaning of otherwise. XXXX

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

additional websites You companies regarding information can the also www.consolenergy.com. on find our

there and will the recap sales. our with President and Financial financial Dan be Brock, closing lay Dan well. on key an then Jimmy to will liability Connell, management On will a key our our a his priorities In insights which our our out Q&A will available President in prepared Bob the program Sales. Chief achievements remarks, on In provide remarks, comments, our Executive After participate and results operations prepared guidance. Mitesh XXXX Strategy; Braithwaite, today Jimmy will Vice session Chief and update his be me and Jimmy as XXXX. for Mitesh Thakkar, of specific Marketing XXXX Officer; Bob provide call Senior during and of our Vice are Officer; of

advance this Brock. over our deck let With we on call. information, have Jimmy supplemental me additional posted turn our website CEO, slide in of For it to that, the

Thank you, everyone. Nate, good morning, and

an year, global COVID-XX decline exacerbated chains, was due and first pandemic. energy Let winter difficult the me disruption the obvious. the a to our for supply unprecedented was in of to by stating this the then extremely as further reduced demand product international XXXX was warmer-than-normal by the start and demand due

am proactive to with objectives many very our resolve credit I the with the XXXX very we to managed moved advance milestones in remains strategic situation. early and challenging agreement as a secured of We extremely midst However, outstanding achieve our opportunities even covenant amend pleased team multiple and our implemented despite our in and $XX banks, liquidity CapEx the made XXXX. of our year and XXXX, capped reduced overwhelming We support. our payments completing targets, to with off and transactional in reduction the CCR several net executed debt cost earnings by merger versus the shareholder on million bolster relaxations

team, Finally, beyond. through we our we've we we set believe ourselves flow we as $XX of of tremendous proud the and into accomplishment global cash XXXX of XXXX, the for we extremely the the which up head of XXXX, execution million pandemic in in in midst a I'm free success is pandemic. navigated and generated as believe

and Let a for of us me now forward. how success XXXX, it recap you provide brief with going positions

Metallurgical Coal we highlights This the Association XXXX for our the Award and our am Producer Excellent one to that refuse at completed Mining proud the legacy environmental ESG in. best to us I First, awarded commitment on operations. field announce communities of front, the the operate

Virginia operations underground We the Award for also at West our Safety won Guardian the Mountaineer mine. Itmann

incidents XXXX. and of full Terminal, Itmann during Marine zero year each CONSOL Plant, Preparation recordable the Project had Bailey Our

community risk safety remains finished Furthermore, coal mines us. on continues business environment pandemic. total critical operations. for among and from employees during for maintaining underground Energy but for transmission and to safe CONSOL'S committed at reducing Our the efforts are guidance PAMC and work national a national recordable and not and mitigations healthy work significantly communities, while CDC COVID-XX to lower of the the rate track the priority than CONSOL limited state a employees, the following the managing sustaining front, September COVID-XX families, XX% year the reported and XXXX. bituminous below is the through maintaining the average incident environment, include, average healthy top their as to a

the of million rail supply the COVID-XX tons year pandemic in in the and me QX in year was review struggle million lingering the our compared quarter. let to chain full to to Mining operational XXXX performance Complex tons effects detail. at and Pennsylvania XXXX decline ago The Coal of enough X.X QX crews. Now, and due in XXXX production X.X came the at demand provide

our However, steadily it has shutdowns. levels, increased COVID-XX-related improved and noting of depth since XXX% levels QX from worth XX% QX that as the demand was is fourth production quarter from

We to for run the continued entire fourth four quarter. longwalls

QX employee compared at XX.X% QX impressive improved of For PAMC, productivity the XXXX, to as XXXX. tons measured an by per hour, of

from the XX.X For ended in million tons XX.X the the of full year, million down with PAMC tons XXXX. production

ton the The and our and the and by a XXXX to cash Furthermore, we ended reduced the average a on mitigate ton successfully our our average cash benefit a financial improvement and production sub-$XX adjustments of sold of ton to compared volumes. was expenses. PAMC in of of limiting expect continue over made overall again going forward. in We spending and quarter. costs, lower QX was $XX.XX as our front, cost of and operations in cash our cost onetime project our cost cost coal mine per envision to cost reduce was team structure of in ton the purchase successful cash don't On supply of control coal to operations rightsizing operations. being this per tight coal service compared with in $XX.XX the contractors The cost, driven sold to $XX.XX maintenance sold by primarily XXXX, XXXX our partially producing $XX.XX XXXX expenditures allowed cash us QX impact per to per keeping assets,

million loss we lower the our pre-COVID future X.X short, QX million as of domestic Marine year In XXXX while longwalls, four volume to significantly operators We CONSOL during our demand from depressed production to volumes with foreseeable App the Northern million structure quarter for to outlook Terminal current are better expansions, cost losing and region trends. levels output had a for improved levels. in we at $X.X throughput offsets to not Northern in production out quarter. rebound run in in margin million tons three given operating recovery the compared million XXXX foreseeable period. million of we to also the four ago lower million For future, only tons in align believe App coal production the The for modest expect with markets. the levels believe in the XXXX revenues our levels. in tons in to Accordingly, year region Despite in able ton compared quarter. from only ago planning production expect $X.X throughput volumes costs increase the to X.X other of the versus at operators million five $XX.X mines are year XXX,XXX the the do $XX.X the we cash Terminal XXXX were came expected operating demand ago as

contract, to X.X operational record annual backdrop. continued in of also the compared Marine team just when volumes. achieved million difficult over below in XXXX, the maintain in XXXX a terminal as despite throughput the terminal performance, The annual strong to very revenue XXXX considering XXXX set the operating million ton at cost the million came a market to decline control For expenditures total had in its Due the nature especially XXXX CONSOL cash in terminal year. in revenue Terminal $XX.X take-or-pay $XX.X tight of

proved can to market. our commodity such, any As that core once two operations adapt they again

with now demand to per of the the quarter product basis improvement the XXXX compared export XXXX shrink driving during of improved economies spot since a Hub X% spot of QX in increase averaged X% to to compared for Demand basis XXXX the or pickup since an price quarter natural a $X.XX Henry trough coal continued the provide second me fourth overview reopening, Let power increased on prices XXXX. in demand, shipments. quarter-over-quarter markets. the and BTU gas to coal of and first the XXXX. is strengthened million a quarter-over-quarter delta the The increase fourth quarter compared further our on this quarter QX throughout

US, gas prices many BTU favor coal by at per natural natural million industry experts hopeful $X comps the anemic in gas the are start While sustained still that the improvement we been haven't burn. had and higher winter demand the prices in overall mark season projected to of the year-over-year due that

highlights strength the that demand estimates of to further note mix saw the will April point front, Information market. XX% stockpiles perspective. supply help coal's we estimates domestic the electric by XXXX. on XX% approximately of X%. domestic half reduce the has year The increase US of in from the domestic coal This development from at of the coal improved IHS fourth strong the XXXX, will XXXX XX%, demand continue low will while Administration back total and the XXXX Markit could in increase Energy domestic On that ended versus and tighten the a by which market share end year in generation a only to quarter

this stockpiles our and tightness year. of time continue Northern customer App see We for coal to are or in of of normal at supply the below majority domestic

coal tight the economics frigid in in have demand gas weather northern much issues. the several January of XXXX. Demand improved the and temperatures encouraging located cyclones led Southern According due similar Niña major Europe. exporters cycle the dynamic where This This prices export particularly in Wood thermal very have faced end steadily prices LNG centers markets of and cycle of weather reached the quarter Global La where a to seen historic coal as January. Hemisphere since markets XXXX. On as major temperatures, freezing thermal in are are trends seaborne coal caused front, third Mackenzie, dispatch to in role we the surged highs stores Hemisphere coal major in coal coal boosting wet the very while improved dwindled. This played as caused for the to surged the well located. as early for

and achieved January, coke is generation Northern APIX the CV see per particularly time driven pet reduced pricing $XX month in resulting ton multiple coal up high the wind spot and weather, times which been XXXX, rallied to recent pricing markets is of increased the and this and cold level LNG India. propping prices. in demand also for prices App production, of prices continue from lack of has since which March crossed first strength by We have oil

became coal viable for has a again Europe option such, US As exports.

coal the from global demand Additionally, see as is in pickup for in also marketing it to our demand QX recent and steel prices From steadily low improved resulting our projects improvements translate product coal infrastructure rebound as crossover recover in the since from to the that are well. reaching point world XXXX. beginning for to and to pandemic, production, a has its of pricing a a perspective, in continues met encouraging

call With of Mitesh position to turn the maintain QX has XXXX our in of customer in provide the update. to X.X and million the to now to core million in continue our X.X the XXXX. contracting majority appetite. to sales new I business tons improvements team million will that, base our sole bringing contracted the XXXX XX.X of We see successfully financial tons Since and tons vast over continue end

you Thank and good morning Jimmy, everyone.

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

clear, our reduce the to our maintain past risk improve strong and of year, been the outstanding liquidity, financial balance sheet. profile very priority Over our debt has

execute in early strong agreement to focused laser dollars recognizing and with and CapEx quarters on We milestones partners growth our the CapEx strong This more debt by our moved liquidity. enhancing us remained throughout credit of help levels. allocated secure lot several We discretionary levels, of of started XXXX. our and those mine deferred work to maintain to metallurgical a while than the brought strategy achieved liquidity need spending transactions the amend maintain have majority to value by we reduction. year XXXX PAMC reduce have We the XX% to throughout Itmann eight coal covenant the relaxation. year, time to We compared reduced year at multiple the banking a to

We notes, also and marketplace. to a ability repurchase without discounts offered an captured leverage strategically test negotiated our in the second-lien the

long notes our rallied in capital approximately out For use second back of the XXXX, second $XX $XX year at turned us, over lien capital compared buyback to of retire par have approximately weighted million $XX, price lien approximately our for deployed as million our This a an $XX. This to average annual annual XX%. run. approximately weighted XXXX approximately $XX interest of of an to before par outstanding million equipment prices face in of discount the we through we of of liquidity value to excellent be in XXXX average these approximately to in We credit towards million. an million $XX $X XXXX, believe reduction in return were enhancing and expense from XX%, represents and if reduction spent a held-to-maturity In debt accounting aggregate, below financing. for net proceeds positive of our repurchases

X%. the and in raised capital year of a XXXX million by sources of weighted strong taking second million new these market XXXX, improved as average we half equipment of of at of items. flexibility, a that completed boosted advantage in the with pretax and income interest alternative recorded $XX capital financing we $XX tapped rate liquidity transactions successfully also We financial In associated multiple in

quarter XXXX, million $XX the recorded recorded $XX in the addition pretax income of quarter. in third For million to we in the fourth

year, even destruction flow, cash million speed in highlights For more brought quarter, million you COVID-XX the of $XX was The free when pandemic generated fourth on in strong we impressive in which to was the the economic year. full consider our $XX which by the XXXX. finish generated further

flow agreement month. with expect million defined approximately this excess to As a cash of and result, as credit Term make we $X a our holders to ended of B million our later $X Loan in payment approximately XXXX free

liability in and versus income On fixed our by funded the plant's status current have investment In pension for 'XX. derisk path exposure assumptions, status by our XQ our January plan, of our legacy year, to mix plan the to policy triggered split the our its this in foreseeable XX liability lower to split mid-XXXX. performance status taking in XX-XX asset volatility growth putting liabilities equity assets front, we derisked a of our with to actuarial requirements to adjusting XXXX increase further funded us strong at increase the XX% further well-funded equity hedging and a future. glide of advantage of hedging in target no Under equity income the to we XX fixed additional funding

shareholder merger our completed we Finally, overwhelming late in December. with CCR, with support

structure, As expected, financial streamlined pro corporate this simplified metrics. improved and transaction our reporting, credit immediately our forma

ratio a we x ratio increased times, legacy As CEIX improvement improved for has the alone. such, is by of CCR and merger, the ended XXXX with which a XXX% turns X.X the XX%. leverage of This XX-day of X.X times transaction X.X an estimated market from the at announcement current end Since improvement net trading liquidity a has cap its both 'XX, included of of from great the average shareholders outcome entities. significant XQ

year $XX.X or on share $X.XX the $XX.X XXXX reported continue to $X.XX to level million and to million, as With CEIX absolute and outstanding performance to ourselves million $XX.X debt, a guidance. Loan results, of strategy lower have quarter per prepare let net of XXXX the in full with we recap goal before quarter. financial a with targeted expect forward, that before of shareholders CEIX million. Term growth per move of our to EBITDA matures quarter now B that, compares we XXXX solid and ago diluted moving we me our significantly income year $XX.X fourth respectively our and balancing our adjusted debt As attributable XXXX share our fourth strategy. diluted This reducing

of XQ consecutive versus our second point earnings quarter prior from quarter a improved significantly mark earnings in 'XX 'XX. the XQ low Our

generated operations received More in from flow $XX and free million spent XQ importantly, $XX from in of 'XX resulted proceeds in sales, asset $XX million. we million of million cash cash which expenditures flow in generation $X.X capital

with 'XX. the approximately improvement cash ended million, XQ the we approximately from cash result, at of quarter end $XX million substantial equivalents a a As fourth $XX and of

importantly, adjusted XXXX, $XXX.X of and a of loss For of CEIX to $XX with finished cushion against million to X.X ended revolving Most net million. of the covenants ratio and attributable we financial with facility net our $XXX XXXX leverage times. access incurred million, have outstanding. we million a our substantial $X.X year EBITDA shareholders with CEIX no reported CapEx now credit borrowings

practice the let announce historical Now full provide of with providing marketplace, stakeholders. reinstating for our very you our me I'm improved visibility are XXXX. in outlook all to with our year that guidance to pleased we

We XXXX volume to generating expecting levels. For the run in margins we be to compared improved to are highest focusing to the XXXX plan XXXX sales on PAMC, possible. our our while market

As are in XX of XXXX will improvement providing a million allow opportunities. levels million us sales tonnage to or boundary belief in the sustained spot The in to to a core 'XX core XQ weaken. which demand run such, upper reduced XX our markets pool reflects ability we domestic international range at The tons. spot sell volume boundary if considers or above the lower trends and our capture XXXX, market

the PJM an projections hour. hour an change call versus worth currently approximately new reflective have average $XX.XX It The power our West On megawatt expected a our per price of of front, and XXXX versus a price power per current power price by an markets. price-linked in of time. driven expected contracted these is mentioning mainly West in floor megawatt netback XX.X tons earnings the at that $XX.XX price we last position pricing at is forwards essentially are of price reduction per power PJM at that of average assuming ton $XX.XX contracts million are

cost cost be and a $XX be by our are cash to as to build on focus reduce in levels. average efficiencies. we sold XXXX to upon to success cash cost XXXX XXXX. the to of At expecting per our nearly $XX to improved ton ton midpoint, cost reducing we our ways expect cash in continue our expect We compared We'll improve $X our to coal

we $XXX in metallurgical levels. structures coal project. production as Finally, capital ramp spending million $XXX are This and we versus reflects admin of to on range the guidance PAMC at items a a excluding million on the up equipment-related spending XXXX expenditure increase range providing modest

framework. for our With through We Jimmy continue comments. turn will me to several needs let make our allocation our options Itmann balance to exploring with Project that final are some capital back growth it needs to and deleveraging

Mitesh. you, Thank

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

First this prioritized and has capital worsen. foremost, time by objective continue XXXX Term been and several our levels anticipate prioritize XXXX. balance for reducing Loan shrinking absolute our a we and our debt matures strong always to sheet has be coal strategy will to no we Therefore, trend companies past of only different. over the will our main the will B years Access in

Second, a between dynamics, making despite market toward to further progress expect liquidity levels continued our strike goals. we the maintaining debt and improving coal need balance adequate reduction a of

are modestly down guidance drive spending. is As to that costs corporate $X also and our remains This which at to and Mitesh in levels range and continuing operations levels per our range. on such, ton XXXX targeted our remaining focus a we within discussed, CapEx discretionary on $X focused only laser above is efficiencies reducing evident through

of vicinity tremendous Plant pursue future into which module coal our Engineered coal-based on is advanced see XXXX as to partnership LLC each bring beyond. into commercial product underway and our continue of well to we that first diversification Preparation current or is of with Ohio begun our salable evaluating stream by excited the constructing project, space, of plant slurry targeted in CFOAM, power strategy Bailey could our with products first construction waste the a DOE colder growth OMNIS Bailey complex. potential University of to our it's possibility positive to an breakthroughs the project in mining remain move and with coal and whether we've where the our its Pennsylvania convert selected OMNIS partnership that Profiles the our expect endeavors we Third, our R&D We

industry. While are us provide of to of exciting majority future still the stages these early of they in we the we believe our the opportunity for an help projects define

and our our Coal remains important Southern Itmann vehicle in diversification growth Virginia. project However, West most Metallurgical

XXXX priorities, debt committed in Although, we project. focus liquidity and pulled and on extremely back we to this to spending our remain excited

all development organic are time operating We where will and ramping day to with while section up. pathway at diversification. evaluate a same per project mining the provides growth We at a solid one-ship progress associated the project continue this options believe with minimal single back we cost, for continuing to

I implement Finally, the move if at the I would This financial goals forward our our for end strategic that merger as approving our remiss flexibility will the XXXX. didn't mention in transaction. completing fully improves be transaction us importance the all are the their of of would and ability of fully CCR We to afford aligned. overwhelming now our to shareholders thank like shareholders support we

needed. year, corporate that, to distancing to the from industry and call unprecedented over our to further will grow I pandemic adapt operations our had Before face We work the the our our destruction for of for social With and to a corporate demand our we I to instructions. new on remotely much do. many over entire I Nate call the enough year. their navigated staff end quickly back thanking the handing challenge COVID-XX measures continuing XXXX past for the the year. which Together, throughout team from dedication the hard hand pivot over, we employees was for to fronts. to can't working as their our and by thank to learn, want willingness are staff workforce professionalism

you, Thank Jimmy.

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

from Securities. Pipes, begin question ahead. First Please Riley the Lucas B. Instructions] now go We’ll [Operator question-and-answer is session.

Good Hey. morning, everyone.

Lucas. morning, Good

Good Lucas. morning,

Clearly, there of all companies. the XXXX debt about by kind or everyone last and you of a Jimmy, at goal? debt? the I structure. my Is of, your for what's part it you, capital minimal mentioned no has comments answer amount more it's remind think, debt challenging become coal to Can financing in optimal question

your So on would thoughts appreciate that? you. Thank

I'll take one. Lucas, that Yes.

was, So we reduce challenging by million. for XXXX debt $XX did how our

So goal more. XXXX forward least in looking like at my is that if do not

we non-amortizing non-amortizing term longer to as which get to where Term significantly want what B have call -- pieces and we it two debt think of would is I I Loan is second the would that lien. piece don't Remember much We we like of a to A to one uphill by refinancing our has Loan mandatory amortization. so get Term an have battle.

So that will amortize in due course.

You in saw our Loan we made on significant payments Term A XXXX.

I think about $XX million.

are of of second refinancing Loan So one and smaller piece comes end XXXX B by too a on paper at to would to Term Term And get hopefully. when over. we that I size and it like A would probably hoping be Loan lien down

CONSOL that. you side, here you cost the of the for specifically? -- hoping marginal when of, And at you guidance on for Thank could I at curve Understood. then I the low economics I So how XXXX. about kind very it. Got expand you're volume was think end. on, for appreciate look maybe kind the

are in about export should you. additional strong again of on seeding to just in Are of up market you maybe So ramp still in demand Could North you loss context we you of you could think to Thank make the to your kind sense responding volumes? color volumes, around just response that really economics marginal share? but specifically production -- appreciate it America? how

that the you the for we what strong know put is found but Obviously, five tonnage, operation see to downturn to what longwall into what tons for given tell opportunities. and XX have. to mines and we the very back that now severely XX we some million people in Well guidance and a it's coal we if would that of tough this in the million markets comes come the that exercise Yes. But back the out we more Island have markets that need there's that opportunity always we're future. very do,

really to costs only have So seen five the enough. And do and the that you should we significantly to think this we Because lose, X of four capital able associated I some don't the ballpark can other other were mentioned that the that, enough it where is that one of with us that you at don't we've of increase make if the in -- you margins you our expense same that expense where to longwall, the continue that OpEx reduce can to run X you have end of cash the hard we same significant can matter the time, we million cash the it in volumes volume. all of million really the But about kind were. tons doesn't at margin day, thing create. get it's about we production can then

So those trying to and we're it. do constantly evaluating

say and also that cost will I Now price do right the at the when right volume, helps it you structure. bring on additional if it's at

we'll we at. team up to continue we'd us QX look ramping we'll continue If back that the see to that real strong a sale, marketing goal and start with as can we to margins in our can X are as those produce. we be we the create to as can as moving comes things we need monitor, something then So to. is But to hard we longwalls highest run for if cheap these coal the forward going

encouraging Thank for now export you color. comments shared us. with helpful one for the you, then And That's last side on Jimmy. is me

environment exports First XXXX? are XXXX, you Thank price see your where current you. the part then for volumes contracted that? And of embedded the there export volumes would question in secondly, in for in

export back for these Today, us remain prices expectation is of cold where say know, that I with million strong, sell. But the that those I a ones million of Baltimore. XXXX. to the what we XXs. majority you as have exactly that left in forward game product. market where the they're taking now have coal the mentioned that published us upper at million ton south My the at, ownership moving And I that. the our most take gave very we have publications as of remains for I'll a in forth domestic gas the on see here with slightly to of side Again, market are just we natural And this achievable pricing we our and in XX.X end pivot that that spot are you now that now is low X and will prices export domestic of see than so tons markets terminal in our foggy of right think the Lucas, confident in about little long are export that the call only today tons market better export can will coal XX we are we we probably strong booked the seen the the marks guidance and we product but the in do weather for today. feel our upon place,

prices if So higher that the continues, continue market. to look into we'll And tons realizing to today. that export market those place is

Very helpful. and Appreciate continued luck. all the color everyone of best

Thanks, Lucas.

you, Thank Lucas.

you. Thank

The Please, question ahead. Nathan Martin Next from of Benchmark Company. is go

transaction of on congrats your lower guys, my costs. on touched question. again kind completing the morning and to continuing good CCR Hey, Lucas

it I $XX I markets Again comment of guidance. APIX or your full -- month, your on So guys bit mean, bit Bob And guys those little tons the contracted pet netbacks, low-XXs the breakdown last calculate in what you as called coke? maybe, that mentioned, are to how when of I dig calculate seeing. think little exports and just your pet you're on, extra export the whenever if appreciate as maybe can can year at in the both you business. the color kind high. mark of out maybe a any a versus versus coke prices more both sales there prices Bob domestic Can in export APIX give high you remain looking prices you you comment we're relates

Yes. I in a we component component provide rail you. to mean, that vessel Obviously, can information that. and a involved there's

But across XXXX, would first I India, for And delivery in the Europe, achieve excited we mark as note now the we gets November the APIX quarter. that that. simply were as two FOBT of at market these the in with is $XX prices sending did the So with coal us also about coke market basically into since And also then, will again, some of Europe, our you cement earlier the so, now plants the We -- And to to the coke that. that, be we second in coal a number going the prices, far I opportunities opportunistic globe. into four-year of to brought to this here as specifically, new mid-$XX, secured but improvement pet actually market very just will cement cargos first make advantage the January. that when say it most highs. pet point. well. -- confidential. say took that are that's that, retail that of some And goes to We're secured that cargos

will the I So India quoted the business we number, just than markets, our traditional are India But pricing, say, mid-XXs. the our look higher which you very you at export in as Europe, and of diversifying in when now it's is encouraging. I outside well,

So, again, type to you're levels. those you at give number mid-XX the flavor, a low at looking to

the it. you growth it. then, just Got going that, to kind of back quick, there. your I forward. gears think real Thanks color of appreciate Got the you Bob. project called Jimmy out, going shifting all maybe remains Itmann kind project, still best And

there? it guys start decide you Just more for curious, take would project to to what that to and move capital committing forward

Yes.

thing could we there on, have now. shift just is, improve, production quickly As that met another markets adding continue we we on that we see double the particularly One there do can our the to side. by

it those for some And is do. very But Itmann project evaluating us. on of would later quality front, exciting some the that looking a the a clarification stay we'll those that picture, evaluating put XXX,XXX to But that. We we produce now. levels -- on year, at We've we're we're tuned somewhat shift. there's, We possibly cost. we would several get we clarification still And facility and the can this significant. should do ramped are want the three everything the just up we've at at in we're think it's capital moving would have have or So we can I XXX,XXX between bigger think But we'll full else. that got running, at we running options things place that coal. running sections there three that already It's it pretty And right be soon. one lowest in think, we're production. production We that and be marketplace. that be once evaluating up. some equipment to given parts four tons, and running how Obviously, there, great on have where somewhere

soon. Got talk time it. Thank again your guys for you and

well. you Thank as

Thank you.

von Fritz is Please Capital. ahead. of [Indiscernible] go question Next Carp

Yes. Hi guys. morning Good

morning. Good

market. in I free on Just and up guidance and guys, of more that, -- know. could is, there's I the realized typically strong out in sort it and you be But there's I the for understand it still in the than would mean, market a that looks I'm a looking as really cash like uncertainty It's questions a XXXX we open. when a of together, at been I strengthening numbers export the little that world high-margin couple -- window trend is don't mainly up, flow, XXXX as

where I understood saying in -- high doesn't And that doesn't as end that it you if if even so going. continue to just, guidance, been it deteriorate, the if -- direction are of like I the is -- the mean not we now just -- it's were

than from better to in my flow the be that, ballpark the perhaps could XX strengthen? I are the numbers somewhat if basically that market up So international continues mean or say cash to somewhat

Yes.

a of level definitely level. cash think to unfortunately but you as Fritz, So are should that mind, we I guidance, moving some guiding keep the production flow sales higher higher and provide parts don't obviously in we

And given as not here, sure we the our well. are have generation mentioned we from forward kind to looking -- Our earlier, about higher we but had potentially opportunities that pricing, in balance make as might be strengthen capabilities. comments our I flow as transactional the could be to of are past, same Bob the free would optimistic that offset sheet. we cash that we The to continue

Okay. you. Thank

Please comes go The Fargo. ahead. from at Thank Kennedy you. next question Wells Brian

and done the I the color XXXX Complex. now? my for kind cost Hey, Thanks would structure I for there. for appreciate see if for revenues guys on where potentially see Thanks advance. opportunities provide terminal you of or Pennsylvania more this guys. then, you Mining really if at was And going more in wondering that's asset on sales, point taking guidance the some you if question. potentially

question, terminal this part get is the And take I'll the to Dan. of started. Yes.

strategy, contracting fundamentally, had take-or-pay place This past our the different we use the a three major changed. main has So, at in said have a terminal nothing a terminal have years. space contract anchored really past, in bit going Jimmy year the for of for structure. But, we the few same we little Complex. expect for exports When revenue our and Pennsylvania to Pennsylvania the storage generation and year we this purposes: Complex to going by have That's stay Mining at this revenues, year look volumes we Mining forward. product. and from strong those

top in place commitments tons cards, secured more X are that, the million about currently before, to markets do those we commitment. and contracted mentioned million-plus the to strong. if of have export in of X On third-party for million by exports stay million tons probably up Bob another X think take-or-pay I of half than with X

business in we're bit QX. year, a little scenario So, through different the strong terminal this but think seeing I

continue terminal. and another as remain long expecting the as We expect markets solid to year are robust the that export for

assume was Like us, portfolio our fair to which take year bringing where look is we forward. year for question. see items. probably the years. as last good big there where in not a several not we now. over deliver transactional it's done a are we several But on we I'll you, could tell going working the and as materialize course is value I'll the always that be able the year at past on possibility were Last to opportunities for yet, but to things are of it the of

pipelines I in things think aspect well. there several on as are that

both. Thank little one And kind of, shifting question, gears then, more Awesome. you just bit. a

on late is on what deal muni a Or appreciated. going supposed be just come do had greatly you was that last guys update market that? any you have to would any with You add can color year; to

So, Brian, regular course financing we at given in opportunities several our look point time. any of during at business,

improvement out gives is the on goal liquidity Our figure us makes sheet. business, what improvement -- what balance for sense to on

several at any year. items So we during time given look and

they Sometimes play out.

throughout was most year level. at don't. I Sometimes last very lien of they debt trading a mean, depressed our second

other financing. sense. to not year potential things makes headwinds real what the any We some and could case at were anymore. look That there this So is see

on think have. opportunities like matter. are There of I financing other work explore several we that I sources can to that's that can all say always on. We'll we continue

Understand. Thank Appreciate it. you so much Mitesh.

Thank you.

question Next [ph] Eight is [Operator Lin Chen of Please Instructions] from [ph]. ahead. go

my taking I for Thanks morning. good Hey, have two question. questions.

about the your for the XXXX, of to talk XXXX you tons, can bit or million contract is what volume price a one little similar price First see of there? is X.X you

I but XXXX. Yes. pricing. what would disclose We didn't for it's contango that, currently are we about Obviously talk don't seeing to we really say slight in

at quarter, $XX I it. your to for think or the fourth cash look fourth the I I should good cost run when cost? million serve that cost Got so think a And for liability, annual about XXXX also for quarter, legacy rate was

Lin, talking on? like you report the liabilities legacy are liabilities legacy about that employee we typically

Yes, yes.

your report like think yes, -- for payment like you statement like that, right. cash employee that's yes, facility I legacy

Yes.

could So the XXXX, just so mean quarters for year know you full be lumpy. I

I you full give would year So a perspective.

it down. for like believe deck over we have our XXXX cost million liability can full is We asset also going time, was our portion as to $XX -- was down to about including million for of for it cost legacy And as the a It's of you million. For actual to long you cost XXXX. see slide the $XX continue can on obligations servicing come that online. cash year say legacy the that do employee XXXX, posted our $XX liabilities was retirement just in

it to decline. to expect We continue

think about I million. guidance in the XXXX employee liability just $XX the is the that portion slide of legacy for is the

question? answer that does So your

you. Thank there. the Appreciate. there's I guess detail didn't Yes, slides. you. more see great. Thank I

script, on was No a to worries. question. any reference make didn't We that but it the good

Thank you. Bye.

back over remarks. closing concludes go session. turn I'd for Please now like to This to Mr. conference Nathan our Tucker ahead. question-and-answer the

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

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

disconnect. may You now