Q1 2022 CONSOL Energy Inc Earnings Call
Good day and welcome to the Consol Energy first quarter 2022 earnings Conference call.
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I would now like to turn the conference over to Nathan Tucker Director of Finance and Investor Relations. Please go ahead.
Thank you and good morning, everyone welcome to Consol Energy's first quarter 2022 earnings conference call any forward looking statements or comments, we make about future expectations are subject to some risks certain of which we have outlined in our press release and in our SEC filings and are considered forward looking statements within the meaning of section 21 E of the <unk>.
Securities Exchange Act of 1934.
We do not undertake any obligation of updating any forward looking statements for future events or otherwise we will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our press release and furnished to the SEC on form 8-K, which is also posted on our website at.
Additionally, we filed our quarterly report on Form 10-Q for the quarter ended March 31, 2022 with the SEC. This morning.
You can find additional information regarding the company on our website Www Dot Consol energy Dot Com, which includes a supplemental slide deck that was supposed to have this morning.
On the call with me today are Jimmy Brock, our Chief Executive Officer attached to Carr, Chief Financial Officer, Dan Connell, Our senior Vice President of strategy and Bob Braithwaite, Our senior Vice President of marketing and sales in his prepared remarks, Jimmy will provide a recap of our key achievements during the first quarter of 2022 and specific insights on operations and sales.
But Josh will then provide an update on our liability management initiatives financial performance in 2022 guidance in his closing comments Jimmy will lay out our key priorities for the remainder of 2022. After their prepared remarks, there will be a Q&A session in which Dan and Bob will also participate with that let me turn it over to our CEO Jimmy Brock.
Thank you Nate and good morning, everyone.
Consol energy achieved very strong operational and financial performances in the first quarter of 2022 across all of our key business segments.
The Pennsylvania mining complex shipped $6 5 million tons from its four available long walls, and Q1 of 'twenty, two and achieved the highest quarterly average coal revenue per tonne sold since becoming an independent public company in 2017.
After adjusting for the effects of sediments of commodity derivative instruments, we achieved a net realized sales price of nearly $60 per ton.
Additionally, in the quarter, we increased our P. A M C contracted position by approximately 5 million tons for 2023, the Consol Marine terminal shipped three 6 million tons in the quarter generating its highest ever quarterly terminal revenue and adjusted EBITDA.
Financially <unk> achieved a Q1 'twenty to adjusted EBITDA of $169 million and generated nearly $120 million in free cash flow on.
On the growth and diversification from our Edmond project continues to progress as expected and remains on track for an expected startup in the second half of 2022.
Given the strong market backdrop, we are very eager to complete this project in place our high quality low vol met product into the marketplace.
Let's now discuss our operational performance in more detail.
Coal production at the Pennsylvania mining complex came in at $6 4 million tonnes in Q1, 'twenty, two and impressive accomplishment considering we produce from just four of our five long walls as our fifth wall is still in development mode. After pulling back in 2020.
Additionally, we benefited from moving past the operational challenges when countered in the second half of 2021 and railroad performance steadily improved during the first quarter of 2022 as our transportation partners continued to increase their staffing levels.
As a result productivity at the P. A M C. In Q1, 'twenty two measured as tons per employee hour improved by 9% compared to Q4, 'twenty, one and we accomplished this while achieving a total recordable incident rate at the Pennsylvania mining complex of 0.52.
Our lowest at the P. A M C.
1980, not when the Bally mom was the only active operation.
On the cost front.
P. A M C average cash cost of coal sold per ton for Q1, 'twenty two was $29.91. Despite incurring ongoing development costs associated with the first longwall and continued inflationary pressures on goods and services.
The development of the fifth Longwall continues to progress as expected and will enhance our production optionality. Once completed later this year.
The Consol Marine terminal had a throughput volume of $3 6 million tonnes. During Q1 dollars 22, compared to $4 1 million tons in the prior year period. Despite.
Despite lower throughput volumes terminal revenue for the quarter came in at $21 4 million a significant increase over $18 2 million in Q1 of 'twenty, one as the throughput rate per ton was substantially improved due to increased export demand and commodity pricing strength.
CMT operating cash cost came in at $5 9 million for the quarter compared to $5 3 million in Q1 of 'twenty one.
This resulted in CMT adjusted EBITDA of $14 5 million in Q1 dollars 22, compared to 12 million in the prior year period.
Lastly on the operation side.
And then project continues to progress as expected and on track in the quarter with preparation plant commissioning and scale up to full run rate production expected during the second half of 2022.
The relocation of the existing prep plant to the at least is proceeding on schedule.
This assembly of the existing plant is complete and roughly 80% of the structure and equipment have been transported to the site.
The main plant building foundations are complete with structural steel erection plant circuitry installation and new rail siding and mainline construction activities well underway. Additionally, we have continued to build out our workforce and mining equipment fleet in preparation for full production ramp up.
The <unk> mine produced approximately 44000 tons of low vol. Metallurgical coal on a clean coal equivalent basis, and so 19000 tonnes in Q1 of 'twenty two.
We have continued our marketing efforts to introduce it meant to both domestic and international customers and it has been well received.
As such the Hickman product is scheduled for its first export shipment to our Consol Marine terminal in the second quarter and we are engaged in discussions regarding domestic trials of the product as well.
We remain very optimistic that there will be strong and sustained demand for this product both domestically and internationally.
On the marketing front the demand for our products remained elevated in the first quarter of 2022 due to the ongoing supply tightness across the energy landscape and improvements in the commodity markets as a whole.
As such we sold six 5 million tons at an average realized coal revenue per ton of $59.60 in Q1, 'twenty two compared to $6 9 million tons at $41.39 in the year ago period.
Looking at across the broader coal market, we expect coal demand to remain robust domestically as well as internationally due to tight supply.
Such we have witnessed elevated commodity prices across the board.
Domestically Henry hub natural gas spot prices averaged $4 67 per million Btu and PJM west They had power prices averaged approximately $56 per megawatt hour in the quarter.
Which are some of the highest quarterly levels, we've seen since becoming a standalone public company.
Internationally process have continued their upward trend with the API two prices averaging $234 per ton during Q1 of 'twenty two.
Although API two prices have been elevated they have remained extremely volatile propped up by the ongoing conflict between Russia and Ukraine.
We sell API two prices bounce from the mid one hundreds in late February to over $400 per ton by early March and while we saw a retreat from those hires at the end of the first quarter pricing has remained elevated due to increasing band.
On Russian energy, most recently, the European Union announced they ban on Russian coal imports and it is expected that this dynamic coupled with supply constraints will extend the duration of the current market tightness as the UK it looks to secure alternative energy suppliers.
Additionally, in the export market. We are excited to announce that we sold our first cargo into Turkey during the first quarter.
In the midst of this market strength, our sales team Opportunistically secured additional sales contracts, we remain nearly fully contracted for 2022 and have $16 3 million tons contracted for 2023.
Let me pass the call over to them a test to provide an update on our financial performance in the quarter.
Thank you Jimmy and good morning, everyone.
First let me provide a quick update on the ongoing progress we have made on our key financial priorities.
We have continued to take advantage of strong market fundamentals to accelerate our stated financial goals of maximizing free cash flow, reducing total debt on boosting liquidity.
But it starts with maximizing our free cash flow generation.
And <unk> 22, we generated $118 million of free cash flow, which is 63% of our full year 2021 level.
Strong market or not we have consistently generated positive free cash flow in each year.
Since the start of 2018, we have generated more than $700 million in free cash flow.
This has been the driving force behind our financial execution.
Second we continue to make strides on our overall debt reduction goal and one to 'twenty. Two we made total debt payments and repurchases of approximately $39 million, which included $25 million of open market repurchases of our outstanding second lien notes.
We have now made total debt repayments of more than $500 million since the beginning of 2018.
Well, we are certainly pleased with our debt reduction efforts. There is still more work to do on this front and we plan to use ongoing strength in the commodity markets to right size, our balance sheet and provide additional financial flexibilities in the coming quarters.
As such I'm pleased to announce that we made a $25 million of discretionary payments on our terminal b at the end of April that is not reflected in our first quarter results.
Third our cash balance increased by more than $70 million during 122, bringing our total unrestricted cash and cash equivalence to $223 million at the end of March 'twenty two.
When accounting for a restricted cash of $46 million of total cash balance set up $269 million at quarter end.
What you ended 122 with a liquidity position of $459 million and.
In the short term, while we prioritize completing Arctic mendola spending we expect a balanced fostered that production with liquidity preservation as we look to refinance and rightsize, our $400 million revolving credit facility maturing in 123.
Lastly, we reduced our net leverage ratio to just under one times at the end of $1 22.
Streaming excited by our progress, but also understand that as earnings improve leverage ratios and strong commodity markets may not perfectly align with long term mid cycle your debt reduction targets.
To that extent, we expect to continue down the path of significant and accelerated debt reduction to our goal of approximately $300 million to $350 million of total debt. The majority of which consists of tax exempt bonds and equipment financing.
In summary over the last 24 months, we have demonstrated an utmost sense of urgency on liability risk mitigation efforts.
I'm very pleased to note that since becoming public.
Through our combined efforts of the entire consortium, we have never been in such a strong financial position based on leverage and liquidity as we are today.
Furthermore, our revenue visibility and outlook remain very strong for the next 12 to 24 months given the commodity backdrop that Jimmy touched upon.
With that let me recap our first quarter financial results.
We have seen significant volatility in the API two market and its impacts on core pricing in the first quarter of 2022.
As you would expect this has also impacted our net income.
In the first quarter of 'twenty, two we recorded an additional $102 million of unrealized mark to market loss on commodity derivatives associated with our remaining it'd be I do hedges for the balance of 'twenty two.
As well as $86 million enough losses on the settlement of a P. I do hedges that concluded during the quarter.
As we progress through the year and we expect that the volatility associated with these hedges.
Decline a settlement soccer, both on the physical and financial types.
Good news is we settle approximately 40% of our 2022 hedges in the first quarter. So our quarterly hedge volume exposure would be meaningfully reduced for the balance will come back to Q1.
This morning, we reported a very strong first quarter 2022 financial performance, while the previously discussed unrealized mark to market loss on commodity derivatives drove a net loss of $4 5 million in the quarter. Excluding these unrealized losses and associated income tax effect would yield a net income of 72 million.
Furthermore, <unk>.
Adjusted EBITDA came in at $169 2 million and we generated $118 million of free cash flow, primarily driven by $148 2 million of cash flow from operations and capital expenditures of $36 6 million.
Now let me provide you with updated outlook for 2022.
For the P. M. C. We are pleased to announce that due to a strong 122 performance and improved outlook.
Raising unexpected average realized core revenue guidance to a range of 58 to $61 per ton.
Settlements of commodity derivatives.
Our updated guidance is your speed you invest that Paula followers of $54 per megawatt hour at the midpoint for the two Q2 for Q.
But every dollar per megawatt hour change in PJM west power prices.
We estimate the weighted average realization across our entire portfolio for the full year of 2022.
Change by approximately 12 cents per ton at the midpoint price.
Additionally for the P. M. C. We are reaffirming our 2022 sales volume range of 23 to 25 million tonnes.
As the operations ran very well in the first quarter and transportation bottlenecks have gradually improved since the end of 291.
We are reaffirming our P. M C cash cost of coal so guidance of 29 to $31 per ton.
While ongoing inflationary pressures continue to create enough port Bush. Our team has done a good job of managing our costs and we were able to keep our one to 22 cash cost.
Slightly below the midpoint of our guidance range.
However, given the challenges created by the current inflationary environment. This will clearly be a key focus for us to monitor and mitigate as we progress through the rest of 'twenty to 'twenty two.
But it's been our preparation plant project is progressing as expected and we are reaffirming our guidance of a second half 2022 startup.
In our production guidance of 300 to 5000 tonnes on a clean coal equivalent basis, what 2022.
We are working diligently to ensure the preparation plant stocks as soon as possible.
We are encouraged by the progress and believe there is a potential to begin processing called at some point in the third quarter of 'twenty to 'twenty two.
Finally, we are reaffirming our C I X capital expenditure guidance range of $160 million to $195 million.
This includes a modest increase in anticipated capital expenditures.
When projects to keep it on an accelerated schedule and are currently about it and supply chain environment offset by modest reductions in other business segments.
While we are pleased with how 2022 are shaping up for us financially before.
We firmly believe that the future could be even brighter.
As Jimmy mentioned, we are currently building a very strong book of business for 2023, and beyond and we remain confident in achieving higher sales volumes from both the P. M. C N from estimate next year.
Furthermore, without ongoing debt reduction project or a <unk>.
We expect to have lower debt servicing costs, despite a rising interest rate environment.
Changes in commodity prices are always a wildcard, we expect that our financial flexibility and cash flow generation will be tremendous drivers of shareholder value creation in 2023 and beyond.
With that let me turn it back to Jimmy to touch on our key priorities for the rest of 2022.
Thank you Manish.
Our goals for the remainder of 2022 are fairly simple.
First we want to continue to take advantage of the ongoing strength in our coal markets to maximize our free cash flow generation. This entails maintaining the rat priorities at our operations. We're always focused on our cash cost and we will certainly do everything we can to mitigate inflationary pressures as much as possible.
However, regardless of cost pressures.
We will do what is needed to maintain our standards and ensure that we're running safely completely inefficiently.
Second from a sales perspective, we will remain opportunistic in our marketing strategy balancing revenue visibility with market Optionality as we continue to layer in additional business for 2023 and beyond.
Third we will continue to focus on strengthening our balance sheet and liquidity.
This has been an ongoing theme for us, but it is important for multiple standpoints, we obviously want to reduce our long term total debt levels to better line up with reduced access to capital, but from a strategic standpoint less fixed cost in the business allows us the flexibility to be more selective and patient.
Our marketing strategy.
The good news is that due to our strong Q1, 2022 free cash flow generation and expectations for the rest of 2022, we are optimistic that we can accelerate this goal moving forward.
Fourth we are fully committed to executing our growth and diversification goals. The most immediate of which are getting our project up and running and restarting our fifth longwall at the P. A M C as quickly as possible.
Both of our own target and both to AD revenue growth and diversification.
The <unk> mine will give us an entirely new low vol met product stream and the fifth longwall at the PMC has lower sulfur, which will increase the potential for crossover met sales as well.
Finally, we expect to be in a strong position to return capital to our shareholders in short order.
In the near term, we are committed to finishing our capital investment in developing the <unk> project and optimizing our balance sheet priorities.
With continued coal market strength and free cash flow generation, we expect to be in a position to do all of the above in the coming quarters.
We have begun analyzing shareholder return options and have already started engaging with our shareholders around structural preferences stay tuned.
Before handing the call over I'm pleased to announce that our 2021 corporate sustainability report will be released shortly which will be our fifth since becoming an independent public company in 2017.
Over the past four plus years, we have worked diligently to evolve and fundamentally changed the trajectory of our business with a focus on diversification and ESG responsibility for example.
We recently became one of the first coal companies to publicly commit to reducing our carbon footprint with a goal of a 50% reduction in scope, one and two greenhouse gas emissions by 2026 compared to 2019 baseline levels and net zero scope, one and two admissions 2040.
We also are committed to diversifying our company and board of directors and we have already committed to adding an ethnically diverse board member with the qualified skill sets. We continues to make positive strides on our ESG goals and targets and we're excited to share our progress in more detail once a report.
As released later this month.
With that I will now hand, the call back over to Nate for further instructions.
Thank you Jimmy we will now move to the Q&A session of our call at this time I'd like to ask our operator to please provide the instructions to our callers.
Thank you.
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Today's first question comes from Lucas pipes B Riley Securities. Please go ahead.
Thank you very much and good morning, everyone and to a nice start to the year. Its just a just a few questions mostly on the pricing side and I wanted to start with 2023. So you you put some additional pumps to bed and I wonder could you share the mix between export and domestic of the tons that <unk>.
You sold since three months ago.
And could you share the pricing the netback, respectively on both the export and domestic tons. Thank you very much.
Sure. Good morning, Lucas This is Paul.
So if you recall last quarter.
We said, we had $11 4 million tons sold.
The breakdown there was seven four domestic of which one five was was it related to power prices.
And 4 million tonnes of exports and if you recall, we said the pricing on those tons were slightly lower than our 2022 guidance at the time so call it low fifty's.
Today.
We have about $10 8 million tons of the $16 three are domestic.
And 5.5 or export.
And.
Based on where power an API to futures are.
Average pricing on this on the totaled $16 3 million tons is in the mid sixties.
So good news for US is we certainly have a healthy contracted position for 2023 being that we're not even halfway through 2022 and Furthermore.
Our plan today would be to run five longwall is next year.
Which would imply that we have approximately call. It 10 million tons, maybe even a little bit more left to sell for next year and you know sitting here today based on where API. Two futures are I will tell you that I would expect the majority of the additional volumes that we sell for next year will be into the export market.
And as you can see where those prices basically netback today every time that we sell going forward. You know again my expectation is it will only improve our current average price for next year.
Very very helpful. And then on that so so if I understand it right you have about 10 million tons left to sell and the majority of that will go.
Export if I were to say.
8 million tons, if I were to assume that in my model 8 million tons or so are going export after once you've left open.
How how would you walk me back to the net back are you selling some into India summit to Europe , there is API for API too.
Rail rates are have reportedly been rising. So so can you help me kind of reconcile what we see on our screen in terms of API two API for prices to your net backs.
But 2023 forward here.
Yes.
Not really providing full pricing guidance for next year, but to kind of help you here you know I think we will have a mixture of tons into India and also tons into Europe next year, and if you look at API two prices today.
You know call it $210 rough numbers for Cal 'twenty three.
Your netback base.
Really at that point in time is call it close to the mid one hundreds so call. It 154.
For sake of this discussion and then obviously into India, it's more priced off the pet Coke price.
CFR, India Pet Coke pricing today is call it mid two hundreds which you know.
Slightly lower than what the API two price would yield back will obviously be subject to what the pet coke prices at that time, but again my expectations are that every time, we sell moving forward, we will continue to improve our 2023 pricing portfolio.
Very helpful. Thank.
Thank you very much for that and then.
Uh huh.
Two more questions on unrelated topics, but first I do want to turn to the Nat gas market.
Backup off eight bucks today on the Henry happened.
From a kind of industry perspective.
What if any capacity is left.
Domestically for gas to coal switching.
Well you know that.
Here's what I can tell you Lucas inventory across every utility we serve today are extremely low and.
And I will tell you that pretty much every utility we serve are in the single digits at the end of April which you know typically uses when utilities build inventory in preparation for summer.
I'll tell you that there's probably two main reasons why it will take coal burn is not higher on a percentage basis today.
One you've heard from many is that there are several lanes, where logistics has been has been quite a bit of a challenge, but I'll also tell you that many utilities are just simply under bought.
I don't think anybody anticipated these gas prices getting to $8 and we.
Now I have a handful of customers out looking for spot coal for the balance of this year you probably saw this morning.
Southern company, one customer that are that we have in our portfolio is out looking for additional volumes in 2022.
We've seen a handful of customers that are looking for spot coal for the balance of this year.
I just don't think it's there and if you happen to have some spot coal to sell well now you're you're likely competing versus what the current export prices, which would be another challenge in itself.
Are these domestic utilities, so I don't know if there's much.
Switching that can happen balance of year and I think it's mainly just because they're just lack of of coal available and inventories remained significantly low.
What has really helped us in 2023, obviously.
Okay.
Really appreciate that perspective, thank you and our last question.
Hi, Jimmy you mentioned.
Starting discussions around shareholder return frameworks and two.
Two part question one what when do you think is the right time to be more concrete with investors about how how you settled that that debate and then too.
It is there is there a front runner today.
Some of your peers have a payout as a percent of our discretionary cash flow that that that's a very positive reception from the market. How do you look at a framework for returning capital to shareholders. Thank you.
Yeah.
Well on the on the first part Lucas on the timing of it as a test stated in his remarks, we're near the timing. We've said that we would like to get somewhere near that one leverage ratio that we're approaching.
And secondly, we want to finish the capital project that would have a deadline. So we know what we have remaining there. We have started some shareholder engagement, reaching out as far as the structural preference what I would like to say as to I would like to see something you know that's not that's objective that we would have some sort of form a lag.
Value, whereas X percent of free cash flow goes to whether it's share repurchases a share dividend, we're still engaging with shareholders on that there's lots of different ways to look at it I mean for some people it's tax structures. It's other things to consider but I will tell you is I'm a test said in his remarks were very near.
To that point and that's why we want to start preparing for it and we think that it could become and as my test said early in the quarters here, we obviously want to finish the capital project Edmund to date, we know where we stand there it's going very well so I would say pretty quickly would be the answer on that and then second part.
You know look in looking at the structure of it we want to have some of our shareholder engagement on that but again I would certainly like to have some sort of formulaic style in place, whereas if if it's X percent of free cash flows that we returned to the shareholders and whatever mechanism that it may be but that's our thought process today.
We have more work to do on that and more engagement to do and but I would think we would have answers for that concrete answers shortly.
I really appreciate that.
Jimmy and team continued best of luck. Thank you.
Thanks, Luke Thank you Lucas.
Hey, guys.
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The next question comes from Nathan Martin of Benchmark. Please go ahead.
Hey, good morning, guys, congrats on the quarter and thanks for taking my questions.
I think Lucas kind of touched on 'twenty, three pricing, maybe I'll take a step or two a very nice to see full year pricing got it.
You increased you guys mentioned before confirmed today, especially for your contracts for 'twenty. Two so maybe can you talk about what's driving that increase in the range of that P. J M Y tons additional exports, maybe what gets you to the high end of that range or the low end of the range and then maybe somewhat related do you think there's a good chance you can hit the high end.
The sales guidance and how would that affect our pricing as well. Thanks.
Good morning, Bob.
I would say most of the improvement date has been the power price that has improved our overall sales price for the quarter and for the for the new year guidance.
If you recall in the first quarter, we suggested that for.
For every dollar above $41 33, since we had a 17% improvement. So you know first quarter was $55 58, the new updated was 54 O. Three that we provided for the April through December so call. It $2 and change is related to power price the balance is.
Is it related to a couple of export deals that we secured which we expect to deliver later this year now when you look at the <unk> today, you could suggest that there is still meaningful upside and you know there certainly is should the four term at these elevated levels.
The only caution I give us is that the way our power contract is structured it is based on tons consumed not necessarily fairly delivered so there could be a bit of a disconnect between the actual price we receive versus where the power forward.
Power for its our and this works both ways up or down so.
At the end of the day I think what Youre trying to get at yes. There is certainly opportunity for us to improve on our 2022 pricing.
These current forward.
For power prices hold.
Yeah.
Very helpful. Bob I appreciate that and then Bob can you also just mentioned the expectation at this point is to run a fifth longwall next year kind of all out given the current market. Once you guys are seeing in the future here and there.
Maybe on the timing of that says longwall, Jimmy you mentioned before you're likely December maybe the earliest being late November anyway to pull that forward at all anymore, just given the demand out there.
Yeah, that's a very good question and that's something we're certainly looking at and I will tell you. We have made a little bit of progress on the timing there, but it still looks like it's going to be you know late in Q4 of this year. There's only so much that we can do as far as the development goes. This is a long a panel as we've talked about before but.
The operations team is fully engaged and that they understand the importance of the market is there now for those incremental tons at Bobby talked about even we could provide some of these customers that's really need and coal for the balance of 2022. So if we could get that longwall up and running faster, we certainly want to do that but right.
Now it looks like you know, we'll have at least the market production in 2020 to offer that longwall and we still have when you get halfway down a panel there's still a lot of uncertainties left to get it out there. So we're not ready at this time to commit to a date that'll be sooner, but rest assured that our entire operations team.
Is well aware of how important it is to get it started as quickly as possible safely.
Okay sounds good Jimmy Thank you for that update and then maybe just shifting gears a little bit to CMT.
Yeah, you mentioned highest ever quarterly revenue and EBITDA.
Or is that something you guys see kind of repeatable given the strength of the market and then maybe as we look ahead to next year just talk about sure your Optionality there Jim.
Fresh elsewhere as far as you know how many export tons. Since you guys could possibly move through that terminal I don't think you have any long term agreements. So just any color there would be great to hear thank you.
Yeah, I'll take the first part of that and obviously, we have bandwidth. So we'll let him hop in on the second part, but I will say that the terminal remains one of our critical assets and we are looking for ways that we can move more throughput volumes through there obviously worthy met pricing is today and everything we have opportunities for third.
Nicole to get through but it's not as simple as many would think of just you know add Nicole we have some.
Blending capability storage issues that we have there, but we are looking at all options for the Consol Marine terminal and Theres a lot that we can do there and Dan and his team are all fully aware of it and staying on top of that but we think that that terminal is going to be very well utilized for the next few years. Dan you have anything you want to add to that.
No I would just say made maybe nearer term looking ahead to the upcoming quarter.
Obviously in Q1, we achieved there.
The record revenue and EBITDA numbers without achieving a record throughput volume.
Looking at Q2, I would say we have a strong book of business, So we'd expect to be.
Similar to or above where we were in Q1 on throughput and in the markets continue to be strong.
And support our pricing at CMT so.
I do think we have a combination of volume and.
Market factors in our favor here and and.
So it should lead to the ability to see a repeat performance in CMP.
Going forward.
Okay.
Great to hear Dan to me that your comments are liable I'll leave it there. Thank you guys for your time.
Yeah.
Yeah.
Thank you.
Ladies and gentlemen, this concludes our question and answer session.
Russia or was that a management team for any final remarks.
Thank you. We appreciate everyone's time this morning, and thank you for your interest in and support of <unk>. We hope we address your questions. This morning, and we look forward to our next quarterly earnings call. Thanks, everybody.
And thank you Sir This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Okay.