CEIX - Earnings call 3 2023 | Core Natural Resources, Inc.

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Operator

Good morning, and welcome to CONSOL Energy's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Nathan Tucker, Director of Finance and Investor Relations. Please go ahead.

Nathan Tucker

Good morning, everyone, and thank you for joining us. Welcome to CONSOL Energy's Third Quarter 2023 Earnings Conference Call. our comments certain about outlined the of press and or subject events in meaning statements are of release risks, and XXXX. of to which in Exchange of forward-looking Section we statements the future make are our considered XXE Any forward-looking filings Securities within Act SEC we have We or otherwise. events statements for do not future undertake any obligations of updating any forward-looking

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

our Additionally, the filed quarter this ended Form XX, quarterly we XX-Q SEC for the report on morning. with XXXX, September

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

followed that, on also closing our key prepare will to Jimmy. our progress and turn marketing On XXXX outlook. In by Braithwaite, prepared into and XXXX. today the our Officer; prepared recap discussion out Bob third provide a Officer; updated Mitesh achievements head to remarks me Jimmy Chief then quarter Senior of our and of which participate. With our Jimmy detailed a Chief his provide financial session will In our priorities and be Marketing it Vice Executive Mitesh Brock, Financial update call will comments, an Q&A lay President of operation. our Sales. will and XXXX me we Thakkar, our and a Bob remarks, are with Jimmy his and President our let as over will There

James Brock

was total. during final retiring reoccurring by toward cash $XXX and quarter. payment stock, come the million continued everyone. plus free cash full other back major of million second I deploying million Thank reached debt that fully Term year-to-date. QX our returned $XX XXXX months made standpoint, buying some such, B the which a raised the to flow, the transaction already of XXXX. Through the $XX that million our you, our acknowledging our $XXX in After financing Loan during in officially have balance we've a our sales quarter, generated our XX% that free total spinout we dividends market during operations has milestone as the cash first 'XX, Nate. want retire we've marketing of eclipsed retired towards million to discretionary conjunction year through significant doing we in year-to-date toward of morning, our begin common third In to of third and our Good pivot X With $XXX export year, spent October. We from we notes flow, all of debt income with $XXX lien quarter. shares an million late so, of sheet, we and shareholders the from has export repayments. From and into revenues value the

on annual its CONSOL pace tonnage tons of for record As million October, Marine is Terminal early million our year. XX.X previous and surpassed of this XX tons has throughput

performance in discuss more now operational Let's our detail.

XXXX. front, employee On X the recordable Plant had incidents safety Terminal Marine the each quarter third Bailey Itmann and Preparation Plant, CONSOL our of during Preparation

of at the 'XX. improvement Our QX an 'XX, in came coal underground for operations finished in national mines. Coal QX in total below coal the Complex rate to X.X X.X average Pennsylvania quarter the million tons Mining million with recordable at incident a tons well compared production of

third tons the Additionally, with shipments. of due simply inventory XXXX we of of export vessel finished quarter to timing XXX,XXX the

from the QX 'XX compared QX was The longwall, year sold that fixed ton average of for which cost prior cash due in to not the $XX.XX came quarter. coal per to mostly operating 'XX. PAMC On the was fifth cost front, $XX.XX our improvement cost in was leverage our of

that wall or before, fifth multiple said us the having longwall it looks. of smooth volume shutdowns of we've benefits the major As one to allows due planned weaker better quarters is to out

cash third were 'XX, QX our guidance shutdown. public planned expected, our higher our than of although is weakest as range, quarter summer because annual costs For quarter maintenance seasonally the

We a also the planned had in move longwall quarter.

However, cash coal per ton still for we range. the sold to within full be expect guidance average year, our of cost

on Itmann. Moving to

sections slow the to rates long-term all the we underground, currently XX,XXX sections miner super improve expectations, rates sections 'XX. quarter quarter X complex super the rock. the are reserves. performance, we necessary as QX some to have of height needs mains this super to which third of to our our development, are This our tons cutting targeted XX,XXX additional continue X we a installed versus the X and the showed is sections, of challenging mining improved mined All caused XXXX, X of will production of the expected continuous but super a Once tons the and as we During labor operating production requires development, X the producing coal heights cost. in coal although to of compared is efficient market during support completed mining mains to operate mine. Furthermore, in more with for and This X region. lead deal blocks

XXX,XXX sold year-to-date, aggregate. third-party Finally, And complex Itmann has coal. complex coal the tons the the third tons and in and Itmann of quarter, sold third-party of in XXX,XXX

CONSOL more PAMC continues and throughput million, marketing executing strategy for financial the period. With and our of CONSOL achieved of during call over the markets. Marine CMT in to me prior to longer-term Accordingly, finished the to at million. prior tons moving X.X compared Terminal. revenues operating $X.X Marine came $XX.X adjusted tons updates. million let in to year the costs shipped $X.X We prove Mitesh 'XX $XX.X compared at quarter million were cash volume Terminal turn Terminal that, in quarter. the EBITDA to worth CMT QX to export into growing a tons in million its X.X Moving year The million provide the

Mitesh Thakkar

Thank you, morning, Jimmy, good and everyone.

start an update front with and me progress. our the Let marketing on contracting

and advantage total volumes to strong our crossover take sold export the high-quality where industrial our product quarter, we markets, the metallurgical in of remains markets. coal of continued the During our into the and XX% for demand third

cement side, On market by our far product. the while the continue markets industrial our Indian is for new largest, explore we to

with are that the cargo in product. Furthermore, the imports same the is country for interested fourth first country the front, We PAMC. A quarter, Mozambique, the in Mitsui cargo the this the the testing but second heat in of our approximately country Russia years. a from for the country into achieved this pleased Traditionally, and signed shipped the we expected was in Indonesia, delivery our XXX,XXX schedule already has a of metallurgical coal history was quarter. to time a into similar coals Asia, during PAMC levels report delivered which quarter, during second PAMC South it of for content further have tons deal we an of to one highest XQ which, crossover on is quarterly 'XX, high recent been

new customers industrial the we as metallurgical lower for mine, at product. Enlow like demand penetrating market, Fork the are seeing we of content, and on are the With our geographies well. crossover our focused longwall increased sulfur which Much has commissioning fifth

for coproducer sold to first our We sales. and Indonesia to are in a negotiations currently pleased quarter, direct that cargo third XXXX are report we during into the

where exporter was the demand Southeast our stage coals, the has power stockpiles quarter, a our predictively Indonesia, expected Coal on world's highlights significant underwhelming global double in capacity globally. seeing product of which third elevated certain the specifically are in be as certain applications in largest This second market different coal the again coal, by which of demand that Asia, require where is crossover quarter. We for short is used high-quality weak high-quality growth still many it are remained product to applications. Indonesia, in coke-making generation XXXX. in desirability supply areas the domestic following in imported can

XXXX. generation domestic the was of during However, overall power summer strong

support the We curve. is in current comps export natural increase increased LNG support prices. will, gas forward coal continued reduced price This demand in demand expect rig and which and the in evident coal that futures, will turn, improved

an tons $XX.XX ton the to coal per at we in 'XX, X.X at revenue coal sold tons realized XQ of million period. X.X ago compared During million year $XX.XX average sold of PAMC

alluded for us. We third Jimmy typical what third the timing XQ finished ended of we which sales quarter. to, with for As quarter with the tons is tonnage compared to elevated in loadings, export XXX,XXX essentially levels to XX inventory the reduced our vessel due inventory

only fourth sales. quarter given timing to tailwind this should our was that in a be this However, nature,

coal the the million exchange core higher $X.XX would Additionally, recognized have sold volumes during quarter, for bought during per income. Had revenue would quarter the contracted our from partial $XX.X to some ton surpassed we us, per we certain buyouts volumes, which of realized customers not negotiated and quarter. out in fees year paid have miscellaneous the to third partial these revenue ton average prior contributed

For where third consecutive history, income. were the accounted a XXXX. and our these Complex delivery generation accounted to sales on revenues continue power domestic we tons generation has the total position. in at last the industrial third the XX%. increase sold forward sold by export into Since sales sales and year-to-date than export domestic sales Conversely, million sold time market. Overall, into quarter for the increased for market recurring X.X team power through other our the market earnings call, Mining our outpaced market the less export basis our XX% into of into Pennsylvania our position our of tons for Most

tons XXXX at XX.X million million As we have contracted such, for for and attractive contracted XXXX XX.X prices. tons

typically be point. schedule currently ahead XXXX where to at compared are to We we XXXX this for of the and expect

volumes. As we partners future with in for contracted multiple strategic we talks are speak,

our Now let progress our results. discussing me update provide an sheet before on financial management balance

XX% the buybacks generated short-term by First, which deployed cash gross towards free our our $XXX and aggregate. of reducing debt quarter. equivalents flow cash reduced during was million in and share 'XX, was unrestricted $XX XQ we and and deployed XX% of within Approximately cash towards million investments

target mentioned, second of our million. approximately achieved during lien the notes quarter $XXX As debt we level retire Jimmy now fully have and our gross

million. unrestricted factoring position. net short-term we as cash of And and XX, $XX we a when remain net in of had cash investments, Second, our cash in September

strong Third, the we a million. position of liquidity with quarter finished $XXX

especially quarter when of me financial the 'XX million let consider diluted strong This share. results. Now with historically $X.XX you XQ that financial a We $XXX quarter. third per finished XXXX performance, morning, our net is third our or weakest reported quarter we income recap

with generated and million, of free all a $XXX basis, have cash adjusted of million, quarter On we and the of EBITDA million generated EBITDA $XXX finished million company. flow. we which of of $XXX for our free Additionally, are of net income cash year-to-date $XXX adjusted flow $XXX million records

XXXX. let Now for quick a our me update on provide outlook

we Complex, sales midpoint volume million simply to Mining tons Pennsylvania the tons. XX to million range for front, are tightening an guidance XX remains million XX.X the the updated On to XX.X range The intact. from our of range of million

average cost $XX per performance We strong range close to are of cash fourth per expect also the coal our to reiterating we ton out quarter as $XX ton of a sold guidance year.

optimizing $XX trends we and partial this Additionally, our per to so forward of revenue due full sold realized average in strength and weak our ton continued APIX $XX in contract our year, per to buyouts, far reiterating sales demand prices the are offsetting year portfolio ton. expected core success domestic

due our mine, tons tons to the from development to to time are previous extended adjusting and staffing XXXX range mains our XXX,XXX range Itmann persistent XXX,XXX we production the of to challenges. XXX,XXX guidance down XXX,XXX line For

bottlenecks the pieces we lowering million, it me of to delayed are range million front, certain $XXX Jimmy. back $XXX our lead as from deliveries. With for for to let guidance that, times range million of turn on $XXX persist capital $XXX to previous to equipment chain extended causing the Lastly, XXXX, supply expenditures million and

James Brock

you, Mitesh. Thank

We our October, of program. of our free shares toward our million QX at repurchases on stock In of our a brings as to during we Let year-to-date free nearly This approximately toward of average the repurchasing year-end X.X shares shares million end approximately 'XX $XX of total, share. October XXXX. XX% share the deployed now price flow XX% update an third of outstanding X through deployed repurchasing quarter of weighted of the million CEIX cash $XX float public flow as cash me provide or generated shareholder our per stock. of return common nearly

us up close we key we in out XXXX, XXXX. set of a few have areas success As to focus for

progress our we to First, are beyond excited by XXXX. date, our specifically contracting success

moving us We to our particularly forward. continue new to more industrial allows relationships, in met export be build and and long-term the opportunistic progress patient markets, contracting crossover and

we the rate hit the XXXX. to run ensure are Itmann in mine the ground to Second, committed ramping year, up of by running we to the full end production

consistency operation low-vol date, the have be product for staffing potential and challenges relationships. business Achieving revenue diversification the achieving and is on markets can we consistent to remain bringing throughout Itmann year. the new at revenue we Itmann very complex the seen will focus, the markets. area our of potential This that bring. our will cultivating profile these in the focus the key CONSOL we is bringing of Energy. We of eliminating Our to to the some get strong production further mine this results in and interest and of export operating consistent To product domestic so faced a crucial excited about diversification and

rate allocation rigorous returning return We've our the capital, in always highest evaluate value most our advantageous our focused the shareholders and our will capital deployment through remain capital decisions framework. use regularly. prioritized we we of Third, of to on

share execution to We in accretive shareholder XXXX to the attractive strategy. In our believe and form sales book point throughout we aggregate, such, we continue this returns. as to the that with continue optimize of that most ability our our remain buybacks intend to year. pleased are And and

our and time very also This our the excited dual our cost the and revenue logistics as from through coal the product ownership Marine significant expands. through CONSOL to for seaborne demonstrated and We Terminal. majority our of the are our our is service quartile market about advantage our our our markets possible ability rail our high-quality coal, over growing share grow to characteristics demand ability first generate of structure of made

the excited reasons For these more about even we and many others, remain future.

the pay a are export dividends in and niche we is debt our we've repurchases, share proven for no shareholders of down. power markets. roughly substantial longer on of to tail returned our that back $X growing success via assets north Looking high-quality our generation the history. X-year billion achieved We've through longer and company demand domestic and We've driven much well

me Finally, and their organization. hard Through wrap employees success dedication, we've date. our achieved again to let up acknowledging across efforts tremendous by working the once

a a We're net is sheet position. balance level. target at Our debt cash strong. gross in We're

have liabilities Our declining. been

remain markets of are thank We to to for expand members all to up our our continue their Nathan. coal. our core values. With our returning will call and team team, our sales shareholders, this open for to I we new I that, capital I commitment hand reach and proud the and over of back

Nathan Tucker

Thanks, Jimmy.

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

Operator

[Operator Pipes Riley Instructions] The Lucas Securities. from comes question B. with first

Lucas Pipes

XXXX full you I see And touch morning. wanted to and XXXX. maintained to first, the Good outlook year pricing for on this

locked price the then of power APIX. maybe in average And in be? price? What amount on market? volumes today, really could the also the And is a the breakdown What what is you in export sorry would share as you to remarks, fixed market? Would I'm of us and collar locked additional release. missed maybe the I the the the is But would gave there are average commercial floating details in What give be book. power is linked? price of as but kind sensitivities could fixed What what domestic? export appreciate understand if well? You the And it if pricing prepared I

Robert Braithwaite

through did had Lucas, that tons that. sales XXXX. morning, X.X new I'll Sure, we This is Bob. this take of we million announce

say a export that deal particular, furthermore, yes, a X.X had and business in pricing there, we of the we was with those third on morning, But I And in north think domestic received additional quarter domestic utility very new a then on conclude just the market. importantly X confirmation most tons. And pricing X-year this in through XXXX, for that'd it. average be $XX. handle million is the tons did,

tons, this about ton look XX.X X.X at which the quarter-over-quarter. X So linked morning you when we announced particular, XXXX, When you power. look million about a is million is in improvement to at breakdown, million

of million X.X floors about have APIX power the the $XXX. also should balance domestic upper price XXXX, today or futures to was based about is X.X APIX it we X.X at is the could to all then levels. for we floor. seeing domestic power, floors. linked $X indices, for they and close ceilings the and based power we're upside all modeled the XXXX, linked million the fixed this fixed indices market, modeled I for And price. When look you there tell and and to of But do them, we there price and to have well. the breakdown export, ] is then we're pricing XX.X where at export will million XXs we announced in XXX% which you have those remain to some looking slated X.X XXXX, $XX. And that million that And XXs where upper in is are today, also is have at the ceilings tons see on is the certainly [ morning, again, on and the XX.X pricing at X.X We then as X.X $XXX, on for

Lucas Pipes

Bob, kind this from to QX, pricing Can year? to variance you color understand very it's the I committed there. provide And here bit right? for I'm fourth that $XX.XX, why QX? was all Very, average up $XX, side, QX. think snap do little $XX.XX. $XX heart. back follow very a QX quarter in on it little you of of a of going backing the helpful. To in caused into realized the you've what to price again, think more you to QX to you're in this XXXX, the saying the much for color QX I'd Thank like delta up love better,

Robert Braithwaite

Sure.

we lower anticipate Lucas, in QX. sales So did price a

If things drove A quarter-on-quarter. QX say certainly lower you of midpoint, that of pace our APIX several that. at look in prices $XX I down on the or were hit original we're should guidance couple things. to One, pricing

APIX $X, were think $X QX. prices down I from So $X,

QX. sales. mix load We of domestic QX the did We just actually was volume some contracts Second priced had more exported in anticipated. that not higher in we than

However, to We're lot those in domestic that there well gas quarter. expect are due of gas We're of starting the QX. natural starting that's see will to in futures pickup A be see demand a in loaded October, the increase the the prices. well. we to and through north in to of continue fourth $X balance in as

the So burn we we'll it's coal don't then less domestic you value certainly year. get of you volumes, continue just from was our expect we tons have the third, But customers. If had think that to to moved in additional we lower optimize next get anticipated. have portfolio. those when and into those QX, ability I just lower And volumes,

the of So expecting the tons been in much QX, loaded out terminal. QX. We into you all pretty of inventory we're I year has to that XXX,XXX carry tell end had strong. can

X.X in get midpoint to So call sales. total to of the a type we're level X.X, anticipating to it,

So that gives us a better opportunity to optimize.

So certainly than now, optimization, QX to again, in right QX. are be prices stronger domestic looking business. And higher-priced APIX in

Mitesh Thakkar

what and neighborhood fact reasonable for quarters have I talked summary, think the QX you says in Lucas, X given behind But about we that the that our us. guidance is

Robert Braithwaite

Yes, that's fair.

Lucas Pipes

level to I a higher end with question. want

allows the is competitively? country can doorstep, compete Indonesia details. provide sold do coal -- market -- And away that your high that the to as doorstep. you first with you home, much How Asian you BTU, your on Thank into very the color mentioned for Australia you is into get for to on what far South from You coal time. you some

James Brock

Lucas. Yes. That's a question, good

basis build get term. Mitesh terminal. doing out of that those to our it's more to think ship markets, long They tied to a and ability high-quality that. relationships us Baltimore and Bobby Indonesia, to our It travel coal and been our have certainly the of visited with particularly we're takes and trying the lot I BTU just allows in

Mitesh Thakkar

in greatest too, mention, right? South is shipping been doing example, would a been Like Asia, I where Lucas, India is the have have like South coal India thing for other is we the business Asia. we very And country a time. long in

some more They are smaller use hard sulfur and value the the there calorific benefit bit of a as those. little such ours. that and tolerant on think I that markets coal are as can other from some of around such things area

helps it So us.

these one think suppliers they places, traditional briefly, at of think. touched and past you Russia if look Indonesia, the in used from all the I upon mid-CV I coal I and

some things regular become we these And to that had one we those we you of once is with what markets, up a supplier, happening India. is this geopolitically. think develop in that So an of I you everything are that to here more which seeing opportunity I think ended tend replace

we playbook in big the So India, not a you though, if as it's by here. that we're playbook smaller similar India. look at had as markets, It's going

Lucas Pipes

the morning and Very helpful. I this continue all really color appreciate best luck. of

Operator

The from comes Benchmark Nathan next with question The Martin Company.

Nathan Martin

to just just on round I mentioned million But the fourth X.X is the midpoint quarter. Lucas in tons out wanted the in can to implication at also question guidance you sales full the 'XX. I think year particular, about range? Like have talk color just what high would you end great It shipments of to there. the moved, guidance have more those or low inventory like a of that gets but little be sounds mostly that kind

James Brock

those had we certainly increased we inventory for numbers. here. higher to and we thus we wall. have the have we that help. we have to well the pretty of And we some of help of running that run about shutdown, we demand as the us. or I us. one seeing ship have run QX domestically Bobby But all that to well going quicker think that have planned here as can than we're of that move going -- week planned. some operations But And opportunity out, to have but And to a that where are the good talked long we customer We that continue last holidays do of longwall have do those I shipped have have have those will fifth longwall holidays standpoint that to we're from long certainly those opportunities been in and production in and think even feel those really far, -- we as are things as are would We front numbers. the are is have we just move, a

Mitesh Thakkar

And because to gone not timing to talked speak of not it, that to sold about, quarter, just the moved add of it's inventory just about inventory situation on from It's here ground, shipments has the the inventory coal just quarter lying as the fourth that sold. that we already the we vessels and today. third

Nathan Martin

even And about then rail cooperating on how Perfect. well maybe just standpoints? from from things port maybe logistics side, those as a and and labor the are thinking

James Brock

Yes.

pretty I performing, both I real thus bit. been issues good far. a railcars always haven't expect out okay, think they're some And dual had think of have little for rails. the we're us served to them. We by But move we any shipments around

Robert Braithwaite

about at mean the will right? about potentially which mean I I just through million terminal, XX year. about tons we're of Yes. think I look million our it, from shift, that moving be this Nate, XX PAMC mean, talking

Nathan Martin

shipment plus higher-level to the get great And next It it. XX years. then guys, around minus or run million-ton would kind ability a CONSOL's to longer-term question. rate thoughts, maintain of maybe be over that several Got your just

James Brock

to market. run we've XX X high XX used we well as tons, million run tons, you million base. Nate, And as We the our know, as as

we opportunity have that's ability we up down to have the have near certainly the and run that. in market. So the XX certainly years, the for the there, as a upon to is base, that We certainly will several anything use depending term, the next market that or if million flex we tons don't

Mitesh Thakkar

And not if contracted. are like historically, we the you think cadence, about this heavily

XXXX we are. more have typically So we than contracted for

we that about already the as his market domestic you is continue to RFPs that the and confident tells development sales of in working very some and well, Bobby getting optimize the we and and around that booked that. team that of newer markets have enough on feel So base with

Nathan Martin

to And Very helpful guys. shifting business. maybe then export the

the some what those And based like on ] maybe Techco entering APIX of today [ First, netbacks kind congrats Secondly, and on prices? of look both markets. new then

the side that You talked prices, the both industrial guys sounds And successful about that you're the this be mechanisms about I of some we working you'd newer some the long-term to it Or of the your should looking but and crossover as how better way pricing -- you've floors know been product? business? entertain think Is at business, or and met ceilings, still past, well. the like other of value just tying possibly capture on there in that? could some on APIX

Robert Braithwaite

Yes.

both to $XX at to was fixed I component. had tell So that the were we tons. for significant deal net and prices export looked price and the did APIX did When other pet significant, tons over mine. for X.X we time APIX a you likely we that at Europe. quarter, I prices is deals under back deal. And a say X can of million price then the to where the there's the and did did XXXX. That to coke going deals We the linked in fixed that we significant a amount of And one

then or the on Asia, you mentioned, if product some B high-vol continue we it's know, also prices. $XX-plus upside. We're ways and market. product to only crossover minimum look working at also India at look typically for the So and in export additional it TSI product. have our gets we'll it, to off these margin just prices to into discount price significant tied And we not and at term deals some that as floor I cash deal the a going thermal, taking that we'll of had where is especially us And markets, floor crossover ceilings provide then a some sense into we to the cases, linked later into the but can look going also makes

price deals APIX looking market ultimate we're destination ultimate deals of better, certainly based where at the but fixed but on been has volatile. use is well. and link are at very each opportunity pet coke looking we coal, as So The and like individual the the we

mentioned, I coke saw pet level. back $XXX down well. think are the it, probably type during APIX we in a the the CFR XXXs you're were I equivalents $XX in They netting The prices higher $XXX mid-XXs than range. $XXX, price. the mid-XXs pricing in PAMC in, looking are about $XXX XXXs to And last on very APIX APIX as based over I $XXX, get time of to then today. $XXX. was at recently prices able India call upper mine And Today, as again the when at somewhere volatile were that to

Nathan Martin

all it for I'll quarter. there. the guys Appreciate you in luck and fourth Bob. best that, Great. Thank leave of time the

Operator

Instructions] next Research Dudas comes Vertical Michael The with Partners. question [Operator from

Michael Dudas

Bob, couple economic at the your early happened looking generally, over indications gas are but in and on maybe usage inventory with of customers maybe what's some the how just activities going past years? their Europe, into levels global on their XXXX, hand from shock demand how they're given and still one

Robert Braithwaite

that this be I -- morning handle levels a week inventory their to actually normal back if that on ARA normal. news. one getting think at to Yes. that supply we to to concerned was assuming that read X with to do do into of lot now positive will Europe, with even as certainly I the And our I'm I'm ARA did deals I just next several heading there over quarter it. actual the which or customers mean, River of A I Europe about to here of Rhine continuing drop. are meet Nate, had mentioned sorry, has a situation prices is many needs to And did are request, winter. and last

quite bullish you'll I comes strength Europe think to and as coal thermal it some when XXXX, am needs prices well. in and in the APIX to So their I see in continue

Michael Dudas

How about customers? your Indian

Robert Braithwaite

pretty year, India, there. be cement we to demand so our capacity retail seems mean, this in I as continues Yes. market the constant be I we're mean strong and growth then forward product over as well. for to move getting far there

the And for some have the current of position opportunities some balance sell ensure the year highest best of we're advantage realizations. that market our market move to this we on So taking coal product. today to India crossover we best is the to for where as are passing the us our be based into sold to continues market on

Michael Dudas

with on there's to benefit crossover some volatility speaking And see And And coking the first it opportunities? the maybe the some placing then some yes, marginal half positioning not coal. How global next in you of production coal Itmann, the up to and feel are place give assuming your there's where pricing? on you and that to upside of at in into year, can of side how been And only markets. reasonable you only certainly crossover, that do this I'm where of end you in capacity customer the is get beginning market ramp on interest to at next? a comfortable going of year, tons for those sense not the the

Robert Braithwaite

Yes.

think wouldn't a into well. as we're selling you than if far core has mentioned, to tons our Mitesh now. product what year, We're now is PAMC Indonesia lot also mean, market. coal been. Brazil market X.X side, much record traditionally this so sales certainly we're say But the in about pace crossover, us, the I it's and crossover the a on which is talking into do China for we're of but higher million about over as at where on I year-to-date, So our it

at the because that's that's So we longwall particular in fifth Enlow quality feel back market. that that crossover why Fork that as and of brought and the us though benefiting we in reason longwall -- certainly of

So to continue PAMC in coal. ability that our market confident for expand our crossover very to we feel again,

did a interest lot to going of volume, we a the will in nice as diversify. on prices, But Coast lot Itmann, were We there. again, we domestic We the in likely side. a We've to tell prices there's to have there. secured XXXX, interest a RFPs. we elected of could RFPs for were higher do successful a on jump be to low-vol certainly, U.S. XXX,XXX although East bit. seen participate export nice a in come close certainly also prices. but those certainly TSI lot then tons desire of we under off And certainly so I not concluding it's jump you, Moving in saw more to for felt though

to rate, get additional that markets fully run we in as feel the to be as up full well. we soon we'll participate mine able As there

Michael Dudas

for Bob. Thanks your thoughts, Excellent.

Operator

is a next question Riley. The B. follow-up from Pipes Lucas with

Lucas Pipes

third it, Itmann so close differently? Approximately, of Or to, of we And will pricing on you related. labor the out what of contracting, call XX% describe think that could It's get on like rate associated -- take fully with to do or And mentioned would it's X super participated, section just what I kind then you the think so? XXX,XXX running, you think X the is it that's are you share you the domestic tonnage? tons, Should the said utilization sections you mobilized? what super today? that front

James Brock

are rate, production somewhere that XX% say the utilization, on Well, number. would we I around

of have X X the sections We now. super running

to requiring bit development, managed us our in which mining to for progress term. mine height, still into equipment to which the down get and is of we're little However, allow cut long things for slows a

yield. before I increase lower well will development, as will one as here which of our sections super have the our a into think costs and year-end, panel those production we

more think we'll I now. pretty about Itmann excited right So I'm where there. get is tons

On some side of having still of fully labor getting the we're challenges down there staffed. it,

that receive of there on to made still like hoped couple on it's had fourth get We all going I changes we feel weeks things. we like delays. mean, receive we then some in new we're coming, year that the to this We've have going last we're some quarter. not the it, equipment turnover, side of have working the in to equipment but those help. And some we

I today, room Itmann, to I side. of think have So when it lots at production we particularly where is look the on there, improve

third you'll of be productivity As see what and soon these at get excited run one I'll up, super actually Itmann. I section running, and get type panels, sections super in to of up see our come as think X we the the cost we can

Lucas Pipes

that's helpful, helpful. And

the share? On can you side, anything pricing

Robert Braithwaite

mean, obviously, typically net look But where about contracting pricing I domestic are, back you the at Yes. if on of now, right that the prices known that been Coast we index. XX% down U.S. East has I it's think low-vol front. year-on-year

figure look to FOB mine you $XXX netbacks at if So the index around are range. in $XXX the $XXX, right

Lucas Pipes

And domestically? where would would into be it the sell for you that tons the that the could export you market? price would Or be contract

Robert Braithwaite

our where into kind balance you Domestically that. that volume $XXX market. gives Coast of be we East at range, export if hover a announce around bit in where full of a guidance would of lower sense provide the the But when U.S. January low-vol little on based -- But again, sell prices we would the earnings. next it February we'll again, or than

Lucas Pipes

more state? Very just you what of in. is get little do industry-wide -- dig recruitment? go of do labor problem, recruit know one strategy How helpful. you the a might to I understand why in have Or there. in state? front. And kind how go -- to come you on you the mostly how I want deeper the is about an Do follow-up Curious people it's which out you to

James Brock

that work to locally our to have pretty to I some the in employees. done pay use and have employees the very And little things successful we'll of is mine and continue we've see attractive things we little we lately someplace those a think them. we heavily a our up have, have open very you get go They'll travel just internal bit the you wages, there close tighten We success it not keep fairs things benefits. And managers up as far in that done. these fairs more that knows is that We job else. past. we've the But as the or too that here, of pretty use than we where we market that the try the to well had lot mechanisms as to try can't to because, that job somewhat relied going have one attractive I a been has labor of job mean, to of the is on one seen that's some fairs have

Lucas Pipes

Last Okay. for I promise. question me,

priorities. to when ranking very it been comes discipline capital allocation your always You've

the You scrapped the buyback. more bang because you the buck dividend saw for on

obviously were there. on very you diligent the debt best down You when risk-adjusted returns paying saw

hierarchy. could on And so kind the best what's if the wondered could buck you and prioritize of would for really you if update I list, down bang the that an how provide go you maybe today then appreciate

James Brock

we something question. is for thanks and very the That Yes, that are on. diligent

the $XXX look are. prepared that for critically on We try pay targeted I of And be that gross it we And highest debt. was as at rate allocation buybacks. kept reviews priority capital achieved It it us. to allocation growth, we that. where was important shares. dollar buying normal the our down. return. highest back of return million to a of I continues to said capital for We share of the return remarks, increasing when in every capital had We to have rate We always always debt And today,

So don't that. I we'll think change our strategy on

to repurchases. flow debt committed free of got our In we down to and fact, XX% going cash towards our these levels, as we've share paid

opportunities quarter we where may are on up. to capital at It have those have we we number when take that However, just depends reviews. the

$XX paid down opportunity created for example, have an note, million lien it the we our would to second For maybe buy us shares. on an back

a that take flow generate with on would as free we certainly we look cash do we at So what it.

Mitesh Thakkar

it having stock, position. cash like flows gives the you're asset and your base contracted you're have your lot Lucas, revenue a buying on unique a back look the know an contracted you what we And And based that that essentially, gives benefit of buying us visibility. us when

makes for on a which risk-adjusted inherent might a in opportunities, think it sense lot risks us basis, I them. compared other to of So have

Lucas Pipes

good of and That's appreciate again, detail all best luck. to hear. the Really color

Operator

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

Nathan Tucker

with Thank call. for earnings and to forward everyone, our you, you your look speaking next we time on today,

Operator

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

You disconnect. may now

Core Natural Resources (CNR) 31 Oct 232023 Q3 Earnings call transcript