Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the CONSOL Energy's Fourth Quarter and Full Fiscal Year 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded today.

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

Nathan Tucker

expectations any good XXXX. full Welcome conference filings obligations our fiscal or Section outlined about forward-looking and of risks, fourth we which Securities the XXE call. CONSOL SEC considered quarter statements have future make statements We we and year not comments subject statements morning you to any and to forward-looking of certain undertake everyone. in Energy's Any do are Thank XXXX release updating events press our within future forward-looking of of Exchange are and or the of for Act meaning otherwise. earnings

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

our to the the Additionally, SEC file Friday, December with February this we XX-K XX. XX, XXXX, with expect year-ended

Web regarding this You which morning. can posted information the additional was also find on the site, slide that includes www.consolenergy.com, supplemental deck our company

the Bob President Sales. are Vice our of Mitesh and Executive Officer; our Senior our Chief Jimmy President and Dan President with today and On Chief Thakkar, Senior Financial Strategy; Brock, of Officer; me Marketing Vice Braithwaite, call Connell,

which After Bob out be prepared also balance will financial Dan key sales. In performance will fourth provide achievements remarks, and update and his of then XXXX XXXX. in prepared closing XXXX a remarks, provide will Jimmy Q&A our management, and Mitesh will our In outlook. quarter discussion on operations will sheet the and session our participate. a full-year our Jimmy recap of and detailed an a his priorities for comments, lay there

to turn Jimmy. me it let that, With over

Jimmy Brock

everyone. Thank you, and good Nate, morning

in with Energy start by closely our part have of him formation to us XXXX. been Since of as which on succession CONSOL And new being opportunity me of responsibility. was take worked planning. integral Resources and the part since very team. during congratulating the Mitesh and LP, public he of our observe I an has long-term Let President grow then, the joined CO. CONSOL MLP, named more he had I've on Mitesh

to addition sustainability he also Financial marketing, business will environmental our oversee our as and Officer, role Chief development, his efforts. In continued and

our the my have in take year Board utmost on the task. expanded is to have to plan. for company, confidence in employment to an and an I by the has ability succession his term additional I ensure to December long-term asked, well-suited extend the accepted Furthermore, and role he XXXX

our as ourselves CONSOL in company and an to performance, public on key metrics flow against, finished as financial cash free we fronts, on measure Energy the generation. XXXX one operating Moving year including its a multiple of independent record history

during strategic our a initiatives some we've key As advanced of year. result, the

First, generation us we progress our $XXX strong debt payments accelerate allowed made flow to million goal our and nearly XXXX. toward meaningfully in cash free debt reduction of

work at Second, program still initiate our our our bolstered even shareholder conjunction robust return to book, debt in our ability outstanding levels. XXXX, while reducing we with cash and contract during free flow, enhance were

share during paid resumed XXXX, dividends multiple repurchases end We year. the the and of at

our reinvest Third, to business. cash ability flow our our free in strong enhanced

the Mining Complex. quarter, longwall Itmann the our the metallurgical fourth at PAMC, of shipped restarted the During we low-vol from Xth and train coal first

Let's now performance. discuss operational our

the the employee-recordable approximately XXXX. 'XX Pennsylvania below to which which and a of of rate total in 'XX, was the Xth due Complex Production Plant longwall On production an the compared incidents XXXX. had full-year The in for Terminal year safety Mining improved restart X.XX front, CONSOL our mid this tons zero prior-year encountered the recordable of PAMC X.X X.X XX% Coal at million quarter QX with XXXX, challenges finished in the of October geological in period. million of the in during national absence QX in increase mines. we to Marine average underground came the incident compared to December, each tons the Bailey coal Preparation at

per standpoint, faced From a and year to the hour, the QX year in productivity by of on measured complex million third employee the a as production PAMC the the quarter. geological past 'XX we with XX.X ended tons as improved note, challenges ended compared 'XX, QX The tons. XX% strong we moved in

PAMC $X.XX our increased nearly to was compared geological challenges. per 'XX, sold front, for cost a to compared due coal the QX costs reduction this of to when was ton $XX.XX, QX cost 'XX. per in But average ton 'XX saw operational On $XX.XX of cash QX we and

period a due sold our The of X.X was CONSOL at 'XX. for the pressures during delta million, and associated Terminal QX cost prior-year brings longwall inflationary and ongoing maintenance, to quarter throughput million. coal XXXX cash CMT contract volume $XX.XX the supplies, Xth cost ton. full-year million at of development cash the with came labor, had operating costs in on of $X.X our to This tons Marine costs to Terminal The compared operations. revenues average power $XX.X per with continued

For very performance, year XXXX, the with the had tons. XX.X a strong million operational finishing terminal throughput

marking year with highest Terminal was $XX.X XXXX adjusted consecutive the $XX.X for history. million. year revenue at fifth first of above and CMT in above which by finished the in $XX came level EBITDA the $XX its million million, far year Marine Terminal CONSOL million,

multiple delayed delivery After second-half our Itmann to supply at due challenges. staffing geological including inconsistencies, the delays, milestones ramp the project. several Now, up full let's and discuss to bottlenecks, has production in XXXX, run equipment rate factors of accomplishing chain Itmann been

staffing have super the We us several to section. achieve term, recently will made goals. fully the optimizing that expect on focusing mine focusing and help two be third immediate before CM changes and issues these CM transitory, sections we our on is In super the

'XX, occur production XXXX, of around into midyear. and third reconstruction having rate The just relocated ramp further in on Itmann our XXXX, aggregate, a sold disassembled, over has and product the customers. Itmann commissioned been up QX XXXX. We purchased, from time. quarter successfully than and trains year's during was The to in of more plant and marketed nine shipped plant coal, run third-party been Moving tons Itmann domestic site to export the in slightly to we preparation in coal XXX,XXX both the of expect full

As with operation, new we ramp our achieve to shift up strategic consistency from focus securing production and our business will partners.

the markets at power past prices to averaged versus $X.XX per PAMC in in X.X million persistent prices $XX.XX coal XXXX. sold of ton BTU coal due increased year the tons by West tons supply to hour the at per average product million significant compared Hub an megawatt leading demand the XX% front, period. for 'XX. 'XX, in revenue finished the driven marketing period. coal coal QX sold increase to of in to PAMC per 'XX, the of $XX.XX shortages increase fourth commodity compared pricing. year-ago our realized X.X robust million We prior-year ongoing at in improvement the the On quarter remained the QX gas spot QX quarter over per-ton $XX.XX a of natural day-ahead The Henry $XX.XX of was PJM in

start of improvements, in at the by the of retreated of and respectively, trend which XX% through energy quarter-over-quarter very A played inventories. further and gas per of each market the Europe, we XXXX and markets warmer-than-normal the gas the XXXX. by XX%, coal late-XXXX levels in December, December U.S. out start APIX the XX% till of more XX% throughout these much continuing international were $X.XX similar have beginning leading as Natural weather January month million increased storage significant month. spot gripped declined Despite almost than in to BTU end the retreated volatility markers has but north and XXXX. seen the prices These of of

the still our the that of believe high-Btu product strong is and for future. coals supply we for remains Fundamentally, constrained, the foreseeable demand

and the the around estimated expects of fact, Agency that in to is and for out contracted shorter-term, sales for the be books a XXXX and to XXXX, for value metric very maximize have and majority books the International sales first This In XXXX. billion XXXX. we fill X remain coal time the eclipsed our annual ability beyond. to our XXXX, patient demand work committed, demand In we global Energy gives through mark us level for position this the ton solid as recently

contracted sales We volatility, of for opportunistically tons million and our XXXX, for sell by our position the XX.X more have now than team tons XXXX. recent some XXXX. increased million through Despite forward million tons contracted XX.X X

the With call update. financial will to turn that, over our provide Mitesh I to

Mitesh Thakkar

good you, everyone. Thank morning and Jimmy,

before me allocation update let discussing First, an capital and balance XXXX our our sheet outlook. management on progress financial results and provide

the our on stated We continued to make financial quarter. in considerable priorities progress

debt flow, XX% cash reduce million During deployed XQ we continuing gross which generated 'XX, towards our to of free $XXX of was levels.

at total made was $XXX in repayments debt XXXX, $XXX debt and As of our level million year-end we such, million. gross

since have In by our current fact, went than reduced outstanding. CEIX public, more $XXX share XX% to which million based of our on per translates value or net shares $XX we creation equity debt

be at million an not submitted included redeemed Second Lien of of Lien redemption Since quarter additional $XX Loan debt in and 'XX. by yearend, the XQ we our million Notes reduced $XX January discretionary in payments our our Term notice Furthermore, million beginning will to for which results. Second an fourth $XX were XXXX we additional February gross our during B towards by each making that of Notes

These approximately and million to Second million. Term three Loan balance pay And debt downs of committed $X of strengthening fully Lien this worth to expect year. We Notes to our $XX bring will gross aggregate ongoing now an B retire remain level our our the sheet.

our we million XQ to position finishing $XXX a $XXX balance led During of year liquidity million. the significant cash 'XX, unrestricted increased which with slightly

flow February $XX third as return increasing pleased amount. a our announcing share that This cash program roughly front, the which of all approximately of be on made XQ elected return payment February of Board of shareholder of will issue in XXth to enhanced dividend quarter the the announce On per will since total record to marks 'XX the free are dividend million share consecutive to shareholders or this our shareholder third and Directors $X.XX XXth. our we XX% morning per

organic fourth quarter, worked to three the improve we balance During and in projects. approximately years infuse capital hiatus share after our we repurchase as restarted of a program sheet growth our also

on strong complete up back team project, most value management our of contracted of running reduction significant another spending additional for Now Directors attractive debt capital buybacks and the position, the to share PAMC, our and outstanding longwall fifth at and create in shareholders. avenue that Board Itmann our the the provide believe with a

$X share. per in $XX.XX price we XXX,XXX our million far, of at repurchased a December for stock of shares have So common weighted average opportunistically

XQ in 'XX. which happy return also now approximately return are program an are of announce will morning in and/or XX% plan discretion effective to free of to to We We shareholder range to share this repurchase flows form enhanced subject XX% our the of which the immediately dividend of a Directors. Board quarterly the to cash become of increase

free expect consider further with reduction As debt additional Once mentioned the increasing Second also percentage goal to shareholder of previously, and the goal free allocated Loan Notes our significant to this allocate flow is cash cash Term returns. we achieved, this B flow towards a Lien retiring year. will portion continue toward of of we

our quarter Now, financial XXXX fourth recap and let me full-year results.

$XXX an earnings fourth in highest company quarter share, 'XX levels we becoming net with or quarterly independent diluted financial income This $X.XX strong per since our XXXX. per of share a far morning, public performance by reported million

we 'XX and adjusted Additionally, free million of EBITDA flow. of finished cash $XXX million generated $XXX XQ with

XXXX, and we share. million $XXX $XXX of or incurred CapEx diluted per of full-year million income the of reported Adjusted EBITDA million. $XXX net For $XX.X

cash becoming public and independent free free of flow highest our a generation marking net million XXXX leverage company. finished X since zero. flow flow with the in year fifth year the finished cash of cash near We with level years annual consecutive $XXX ratio last free CEIX the positive an

XXXX be level XXXX, XXXX at provide let longwall. compared approximately our Now availability PAMC, midpoint improved we our X% volume sales for me due expecting to our fifth to to the guidance of the the on the by outlook are our front for

produce XXXX chain providing sales plus of to are with operational boundary million PAMC our XX to million pace reflects at upper coal range five we ability ton XX our XX spot tons. high million such, The As with strong volume past The effective mining for complex, at the transportation at and our longwalls factor, potentially which lower a challenges. efficiency considers includes operational partner, supply coordination unforeseen potential boundary market demand. the or

are is if good The plus the longwall our we currently news lower our weather to also running run midpoint that range. are end weakness the guidance The events. contracted unexpected of due reflects ability or well, to unforeseen XX there our market mines all to percent at is and

On in average in potential this core as the to our downward allows range range upward revenue prices, to to for front, $XX $XX realized the contracted ton reflect we per levels, optimize and our to power sales API well position PJM portfolio. further to or our pricing XXXX expect relative be invest the strong as movement

Our Price dollar of the $XX.XX hour $X.XX and on expectation guidance on megawatt per for XX the per based at portfolio. PJMS every megawatt in ton is midpoint, is chain PJMS prices power approximately Power CAL our entire sensitivity per

average in was XXXX per approximately For Power megawatt Price the hour. comparison, PJMS $XX

of metric zooms to benchmark Additionally, the $XXX API guidance midpoint price of and our per ton.

of sold cost to expect to XXXX per ton. $XX $XX be average We PMC coal our cash

at be for and given basis the for fixed cost inflationary in and chain bottom power ongoing as ways our services, the to And XXXX guidance cost end see We supply at pressures team the of a front. on some as potential the key of ton captures deflation potential similar the we cost guidance. to despite constantly in in to higher our are including leverage cash relief our cost focused volume per certain the pressures commodities, minimize volume goods operations began quarter. midpoint well The our prices, fourth end on on incremental expecting cash to identifying

supply to to the for margins run rate At Conversely full power commodity fully headwind production. the limiting and or time being, would guidance cash the our for improved net a be market Itmann ramped get the an top which costs. Complex end staffed our a and until we are accounts tonnage we reduced but benefit our up to mine

on we a mine milestones, our As Itmann the ramp XXXX Itmann from providing detailed what dependent Itmann range the of up. Complex such, to similar guidance the the which currently is achieves Complex. for mine of we provide timing XXX,XXX production guidance more tons we to intend Mining Once to are provide these Pennsylvania XXX,XXX

a CapEx million moving capital the $XXX XXXX. Keep that are providing on in to of range reflects Lastly, of million, but XXXX XXXX capital $XXX year. we expenditure range with some This spending for into million started mind we a only end front, spent the expectation $XXX XXXX. million $XXX nearly top in

during to and has chain into diligent supply year, and have unplanned bottlenecks equipment last Management extended which and expenditures we lead have very align toward our Throughout our last these with throughout cycle, times, highlighted delayed XXXX deliveries, XXXX. longer budget we lead As timing pushed rebuild been better planning from year, in adjusting Lifecycle times.

We to approximately and budget in have efforts, the effort XXXX. our expect in greenhouse emissions this for million further reductions gas also $XX

to me Jimmy for let that, back key With touch on to XXXX. turn our priorities it

Jimmy Brock

Thank you, Mitesh.

our have of we believe key areas XXXX, on embark we we a As further focus will strengthen few that company.

project moved to First, full by Itmann we from Complex mine now up Itmann the has operations team. on are the run The to team XXXX. mid-year production laser-focused wrapping rate our

the key team staffing We efforts. and dedicated their management personnel supporting and our operations to Itmann and ramp-up have

are very persistence hard and from for Itmann team thankful work members. We our the

through have diligently them Now consistency. they challenges expect deliver delays mode, recent to that to the switched to operations we ultimately and operational work

for which free strong is cash in our allows one and from our the Second, strategic new team in parts our contract contract of as continuing the We focused as for believe in to positive approach benefit to that remains opportunistic come. and us lock all of on flow book. ability its us ability beyond, business sales advantages XXXX provides well optimize duration, years to to to remains and cycle layering markets CONSOL's generate

a major focus. on Third, debt our reducing sheet balance remains the

initial mid avenues in our debt around continued and hit long-term enhance shareholder million facilitates the This level share to returns these including continued reduction QX 'XX and additional of Term and expect success goals as fully towards anticipate debt of we for XXXX goal diversification. sets Notes. growth retiring our $XXX We dividends buybacks. Lien then Second up company for simultaneously gross Loan and and achieving We B

as Finally, levels to our increasing debt cash we free returns are decline. committed shareholder our allocation flow to

our Second return to gross Once increase our expect we shareholder this promised, percentage of goal our to debt Loan As increased B Lien consider are Notes a quarter. due our allocation. achieving million and we our retired, $XXX to expectations Term return further shareholder

our and the pleased a very are future. excited We we in of with results even ways. which in execution more us was XXXX, year about for a record lot And remain

their am dedication hard of drove this all Energy. compliantly. I our work and team which thank for employees these want proud I results and personally exceptional extremely and safety CONSOL to

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

Nathan Tucker

Thank you, Jimmy.

We session like this to call. to time, will please now operator ask At our callers. our I'd instructions our the to the Q&A move to of provide

Operator

Instructions] Securities. B. Riley first [Operator And our from will come Pipes with Please Lucas go here ahead. question

Lucas Pipes

much, very morning, and operator, everyone. you Thank good

Jimmy Brock

morning, Good Lucas.

Lucas Pipes

Jimmy, -- turn more million little to my debt much. and target, What Thank million sounds It near-term caused first gross the sheet is to want at that as of miss you're $XXX bit to very I question. a you want and of gross anything? previously. from a did million, to maybe the looking I target or me debt the right the that, turn interpretation, conservative to $XXX like for $XXX balance Mitesh, I kind

Mitesh Thakkar

Thank you, Lucas.

we originally gross a way from had of we $XXX think it debt think I the a perspective, about is million. target

going B retire have Loan all Lien. to We today said our and Second we're Term

are $XX and this you Term about the on month morning announcement debt Second B, look if January, on made the of at Lien. Loan for the sitting million about we million $XX So, additional we reduction that with

combined, is of those million. both $XXX So, over just

of to so bonds Baltimore $XXX is what $XXX million makes just going just and you're PEDFA tax-exempt our the then is million. are ballpark. when those million, $XX as those north leases, $XXX forecast our of are and going up in are -- at really about you I end the over the of million you retired; the securities, be them around think And those both million our quarter, two know, of equipment $XX be of bonds, which to

Lucas Pipes

thought you. here the capital little And given helpful, is That's be of market thank -- kind to just conservative conditions? broader a more bit

Mitesh Thakkar

Yes.

get have Second say as is bit When Loan the maturing Term Lien you Term Second Loan has little idea securities, a to both to also these the B. the near-term, under and debt, near-term QX, further And away of of than right Loan more both the at are Lien, I end know. rate-sensitive want Term we year. but next is B interest million. now $XX be from So, B maturities, going

if So, they're and not warrant you to a future, ticket something us we allow if if if debt, will capital I like it's just raise but something this sized. it, do create bandwidth cleanup conditions can do bit we market necessarily want stuff. larger, what appropriately to some mostly want at some would call do all mean, little in or we one

Lucas Pipes

then, some price commitments? XXXX both you much. And the date. the on as commercial then and those domestic tons specifically XX-plus thank to for quarter were would details you what's split turning XXXX? Okay, XXXX export? the for price be side, during to of XXXX, incrementally what and to for share you Thank that. And the between you tons sold contracted that very the the And million could have Roughly

Robert Braithwaite

our recall, our we said tons in the morning, million power quarter, date. XXXX. know, the that was take upper by if [Ph] this you pricing based Lucas, of you as [sold] that. X.X for We've increased Sure, XXs position I'll forwards on Last

APIX were -- and was go look, prices you back $XXX. at around If $XX.XX, around power

the $XXX midpoint and APIX. that today, is on based dropped fast-forward basically just our That about and based said quarter-on-quarter imply we for So, $X.XX our APIX. power portfolio $XX.XX to in on would guidance

our of I the is you actually million However, that can tons tell pricing improved. XX.X

that So, million you we of the north take when -- $XXX X.X model is that notice that you that the tons sold sold and a tons we the certainly you'll that, look per ton. at incrementally, pricing that

and of are domestic XXXX on power, the volume X.X million about million million X.X and on tons into fixed are tons currently to price. the X.X your Then sold tons question, are million linked second XX.X market, export tons,

Lucas Pipes

sense the right. I miss All for price on Any XXXX, average did that?

Robert Braithwaite

We're XXXX. not providing guidance today for

XXXX now. our tell However, that sitting I between you right and it's XXXX pricing would

Lucas Pipes

right, All best detail. you I and the luck. of appreciate Thank

Robert Braithwaite

Thank you.

Jimmy Brock

Lucas. Thanks,

Operator

Nathan Our with next Martin Benchmark come go ahead. from question Please The Group. will

Nathan Martin

Hey, the good Thanks morning, guys. for taking questions.

Jimmy Brock

Morning.

Nathan Martin

breakdown fluctuations PJM many get that's tons actually Bob, you a Lucas versus tons index or how just to many for whether in gave In 'XX? APIX? pricing, other could for XXXX I are tons that similar West how are words, fixed open

Robert Braithwaite

Sure.

million we say, Of have that slotted now have or X.X and million APIX So, And again, X X we million power, fixed linked tons to in tons, the then prices in export that for tons that's X.X we million about then, ceiling should XXXX contracted, -- price. tons, for million million have X of have that tons we -- export. are XX.X linked X.X incorporated tons or the and to prices, million I floor right those of balance contracts. and tons domestic is have

Nathan Martin

guess I any for assuming what we've to look And that. with there? appreciate those -- pullback $XXX guidance that the still Bob, tons? for floor 'XX. contract the and are guys? that the prices? you're Is helpful, And for you your of pricing second, today's like open a kind a netbacks you ceiling the collars with -- Would helpful said what Thanks. netbacks at sensitivity mentioned for on sticking where get long-term with be on Any to price color seen, in also are your Very you know did APIX the I year. export also then, relative

Robert Braithwaite

Sure.

XX% around account adjustments, XX% price, takes again, in freight. the and gets that and the past quality we [Ph] that discounts, sell an with to that [FOB] coal you to look think we back you Europe price, price into use that an along I when at into APIX that, of mentioned somewhere mine

to $XXX Europe. the coal selling $XX-range at looking mine. you're when really that specific price, into to that And that's So, you're back we're in APIX talking again, somewhere

contracts. we will you sensitivity across do I it's because ceilings far linear not tell several different floors as have As concerned, and is

portfolio priced as with a prices; is contracts a our But the approximately of so dollar change But again, of as on loading to overall netback every Most estimate months it we'll do sensitivity in very well. loading. good quarter. $X.XX, our But that similar for price vessels. is to every our change APIX of average we power has on depends refine of based this well our APIX of are the sensitivity, price continue monthly month it as

Nathan Martin

this appreciate at see? That's that. little with a perspective you then, that it the domestic guys given about possibility or winter And if very move well the helpful, can utilities any as a side, season. we the How Bob, we've forward the are also point, is seen from think still early of weaken year [indiscernible] there that? to start as Is stockpile to mild deferrals

Robert Braithwaite

is issue right? a it's response I think here from that in really Nate. the domestic And continue since But levels. head supply as an comfortable now, is into biggest that don't really certainly supply are believe much of I I think demand, summer. of that the and tight the Right has customers early, There expect to inventories side across remains year. last at right coal Yes, increase personally as now. we I coal I there been natural that production end gas believe

into you tell heading less days inventory change XX seeing can quickly that that customers sitting of and many the we start at as demand of out winter. than our matter. U.S. I that were of also Europe However, very And for

to As past would mentioned levels. build certainly to this call month, many what healthy continue I afforded

telling we so, very However, back-half there. have do year, the needs will customers to positive are of that they that have us still several some likely the spot

Jimmy Brock

year the have less that normal inventory those levels do a weather coal have summer inventory pretty more we are they not to up, could And, become we anything Bobby's oversupply. second-half that due of if seen, that expect changes, related but are demand. They unpredictive, than And to certainly difficult have most these point, had we quickly. builds to we with can't we

Nathan Martin

Any to guys. know, or that's on coal that, occurring comments so? or switching around Appreciate today, thoughts net gas $X.XX gas you

Jimmy Brock

definitely gas I demand has little coal seeing that up, as just would range tell past soon see more mean bit on think online. based are. and I are come the now I prices coal where to it as you in $X.XX more again than you are But, going we this units picks dispatch

Nathan Martin

final any quarters, pricing thoughts I the it Okay. on shipments four we move as even of cadence I just And or peers of may, one then, next noted think one question through that if your was Expected out up pricing be to will the for see for we potentially as market for next in the the up expectation in back second-half supplies sold the the hopefully Europe winter. shore first-half. improve

Jimmy Brock

you year. think the concerned ask not [indiscernible] the about question. too the We're I first-half of

ability we we up to We international and really into coal and about some still is markets where the good sold are second-half picking Back-half But, there. of to demand And open go our pretty much move year. committed that. have comps. Bobby can into feel detail more

Robert Braithwaite

Yes. I be there relying is in once depletes, then, message could now, that And I a And the LNG. year. they Right Russian gas fifth fully Enlow longwall of Fork Again, opportunity today have I is think our also is think gas. on our is the that for potential there the Europe is they low longwall. second-half sulfur that important storage

market it into been that's the also, where markets best B] the the It's there today, prices We opening us about more crossover ship [highwall It's new yielding are ability And that's for the digits the best to on quality. based [Ph] us. have up back And certainly triple market. out gives to talking it. mine.

that coal the So, obviously, sell to we places will back continue to yield best those focus opportunities. us. our to And realization on

Nathan Martin

the for the 'XX. in Thanks time. appreciate guys. luck Really best information, Great. And of

Jimmy Brock

Nate. Thanks,

Operator

come Capital. [Operator Rahinsky Instructions] Please will Blue Our from Ryan go next ahead. question with here Outlier

Ryan Rahinsky

if the morning. to returns on just I really happy am buybacks you Congrats of much And get returns forward, the that can that just see color am shareholder Hi, forward. towards buybacks be to Any skewed or the I balanced? going on dividend dividend. This wondering more quarter shareholder idea have good guys returns some I shareholder will buybacks and quarter. more more going the of whether quarter. are trying started going this or expected forward? percentage be am

Robert Braithwaite

forward, in $X Well, we XX% started down paid QX to the expect we that actually share debt. we shareholders of had happening look debt we continue XXX,XXX raise we of goal million to at we return shares it, rid about But or get said million we is to million. QX, repurchases. $XXX our XX% as In saw if to purchased of in going debt. this why $XXX gross you And And since as we XXXX.

And sometimes, we value that's million share lose look outstanding. that. created a of if shares XX But, equity $XX you our at of sight

So, cash we way. will do all And free that generation. return you number. shareholders, is to three. us back do what better will enough do great that to increase we to And pivot able I steadily certainly think is Or, if lucky see if flow things what provides one to a hold, the we have can we are will

comes. way return decision, with or -- we And forms to the second believe discussion those Or do we haven't XXXX. in But continue well lien when loan with which buybacks? good generate share things to and we to lean we on on plan want dividends? to back heavier thought about here have in That as B to currently, free The flow remarks, we'll enough his that what going pretty of quickly dividend far will be we mentioned a and all time all we're retire too cash Mitesh news them do a is do term go Board share do in is backs. to pay stick really shareholders the the our as we

Ryan Rahinsky

Thank you. additional Appreciate the color.

Jimmy Brock

you. Thank

Operator

And with Riley follow-up from question Please be B. Securities. our ahead. will go Lucas a next Pipes

Lucas Pipes

taking much little and I today? Thank for a very And utilities you on question. going very wanted of try domestic How you are much Thank domestic to place buying XXXX? where would coal my the market XXXX to follow-up the is today, much. market. on more you just active get color bit for

Robert Braithwaite

deal under contracted term was through Well, XXXX, Lucas, million XXXX. a we X.X that tons of X domestic customer the to for a million through

side, in discussions call, people on Europe I'm customer then, forward. are concerned several supply users export more, that buying deals, fact the We're our say And also a out and you in our with term to with shows report little going under about just more as much we there I the another Asia contracts, but by deal in and at there. look this end bit guess next hopeful have earnings I can't term again, both term when discussions of they are So, domestic well. are we'll

mean I with we're are at and the at time and right we every The same. in present pricing we the concluding. think power that feel customers what look deals. conclude markets coming we And netback the those is at gas kind where time, are time up I is of line doing the basically with

gas to obviously, gas $X at continues profits as aren't still made price, that prices they $X.XX $X.XX the pretty certainly through fluctuate the when but much So, cycles price. being there's mine through they were were as attractive all $X,

Lucas Pipes

there, changed? changed utility too early down a it on your to when fairly touched attitudes you since Is of And Bob. more How have Or than XX% dramatically the drop. color, that obviously, customers? this it with is appreciate you tell? markets domestic having impact sit energy December, a really much like real beginning I

Robert Braithwaite

I'd say tell. too early it's to

think lot see market going how on of utilities, you're couple sidelines of months, kind this evolves. much a pretty the of to next the a take seat I see for

once going secure As come long-term. their but very Jimmy changer, to of And into a supply levels summer, would if And say, saw you're utilities is year. mentioned, comfortable, we very, the happen a for game market that to are, to try the inventory these can we lot think see to I quickly. get change last I it

our give color say, months. And two, it and we four the some more time able to that. have by probably earnings I'd we three, give we will say commentary more on next have, I should So, call, be --

Jimmy Brock

exports market-driven. year adapt And terminal So having higher our the Lucas, best as we right? markets we is, terms to and change, numbers, of year export And know that I'll be just last amount going add at in domestic I to do to automotive going are are arbitrage the visible us flexibility. that, think it. And this versus we'll And despite significant this think as market clearly on where I moving allows flexibility, into is you have depending of production that we of right?

Lucas Pipes

Along exports? split this Very and or you. for have Thank you a target XXXX do vein, domestic target a helpful. rough between

Robert Braithwaite

XX the could suggest I watch Lucas, to a we market and you, arbitrage to obviously, I would million to XXXX. million tons the possibility tons But is. we'll or see mean, is think see exports best XXXX. for XX climb where thereabouts I continue in

Lucas Pipes

you requests domestic experienced back have Thank the push the then, coal you. out to industry any to Have And deliveries? heard you utilities in from or market.

Robert Braithwaite

not expected. I Yes, of look still year, excited. too was because started come then, I'm war January as utilities But Russia-Ukraine domestically, in business. in were have many late, getting seeing overly what one really export they at the as we're I coal burning Nothing again, last started didn't it's happened the think the month of in. hitting, they mean months. summer didn't demand the -- an And the February, gas uptick we end in were early.

in to just into opportunity more almost all And So, that we're us. best potentially move second-half. of the of position throughout eye for good and of if it's for and could first-half the year. we it. market. repeat come watch itself, on what presents domestic open keeping contracted fruition, see this to does the the our is well we're us We'll the might or Most close a But that news continue entire

Lucas Pipes

again luck. color. and best I Thanks really appreciate of all the

Jimmy Brock

you. Thank

Operator

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

Nathan Tucker

I'd on speaking Thanks, and everybody their of to forward this earnings time thank like you. you look call. morning, interest with On for Energy, CONSOL next our Thank behalf to we and Joe.

Operator

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

You may now disconnect your lines.

Core Natural Resources (CNR) 7 Feb 232022 Q4 Earnings call transcript