Q4 2023 CONSOL Energy Inc Earnings Call

Operator: and welcome to the CONSOL fourth quarter 2023 earnings conference call. All participants will be in listen-only mode.

Good day and welcome to the console fourth quarter 2023 earnings Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an op.

Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press the star key, then 1 on a touch-tone phone.

Or to unity to ask questions.

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Operator: To withdraw your question, please press star, then 2. Please note that 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.

Please note this event is being recorded.

I'd 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 fourth quarter and full fiscal year 2023 earnings conference call. Any forward-looking statements or comments we make about future events are subject to risk, 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 21E of the Securities Exchange Act of 1934. We do not undertake any obligation to update any forward-looking statements for future events or otherwise.

Good morning, everyone and thank you for joining US welcome to Consol Energy's fourth quarter and full fiscal year 2023 earnings conference call any forward looking statements or comments, we make about future events are subject to 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 20 <unk>.

And the Securities Exchange Act of 1934.

We do not undertake any obligations 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 2023 fourth quarter and full year press release furnished to the SEC on form 8-K, which is also posted on our website.

Nathan Tucker: We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our 2023 fourth quarter and four-year press release furnished to the SEC on Form 8K, which is also posted on our website. Additionally, we expect to file our 10-K for the year-ended December 31st, 2023, with the SEC this Friday, February 9th. You can find additional information regarding the company on our website, www.consolenergy.com, which also includes a supplemental slide deck of this poster. On the call with me today are Jimmy Brock, our Chief Executive Officer; Ritesh Jhakar, our President and Chief Financial Officer; and Bob Brakeway, our Senior Vice President of Marketing and Sales. In his prepared remarks, Jimmy will provide a recap of our full year 2023 achievements and a detailed discussion of our operation.

We expect to file our 10-K for the year ended December 31, 2023 with the SEC. This Friday February night, you can find additional information regarding the company on our website Www Dot <unk> Dot Com, which also includes a supplemental slide deck that was posted this morning.

On the call with me today are Jimmy Brock, our Chief Executive Officer, Natasha car, President and Chief Financial Officer, and Bob Braithwaite for senior Vice President of marketing and sales.

In his prepared remarks, Jimmy will provide a recap of our full year 2023 achievements and a detailed discussion of our operations.

Nathan Tucker: The test will then provide an update on our marketing and financial progress and introduce our 2024 guidance. In his closing comments, Jeremy will recap our capital allocation progress and lay out our key priorities for 2024. There will be a Q&A session following our prepared remarks, in which Bob will also participate. With that, let me turn it over to Jeremy. Thank you, Nate. Good morning, everyone.

Tests will then provide an update on our marketing and financial progress and introduce our 2024 guidance in his closing comments, Jimmy will recap our capital allocation progress and lay out our key priorities for 2024.

There will be a Q&A session. Following our prepared remarks, and which Bob will also participate with that let me turn it over to Jamie.

Thank you Nate.

Everyone.

Jimmy Brock: CONSOL Energy followed multiple record-setting achievements in 2022 by surpassing many of those same metrics in 2023, with respect to our operation. GEIX achieved record throughput tonnage and revenue at the Consolidated Marine Terminal and the Pennsylvania Mining Complex, and achieved record average realized coal revenue per ton sold on an annual basis. From a four-year financial perspective, CEIX achieved record net income, EPS, adjusted EBITDA, and, most importantly, record free cash flow generation.

Consol energy followed multiple record setting achievements in 2022 by surpass and many of those same metrics in 2023.

With respect to our operations.

<unk> achieved record throughput tonnage and revenue at the Consol Marine terminal and the Pennsylvania mining complex achieved record average realized coal revenue per tonne sold on an annual basis.

From a full year financial perspective C. I X achieved record net income EPS adjusted EBITDA and most importantly record free cash flow generation.

Jimmy Brock: We took advantage of our strong free cash flow to advance some of our key strategic initiatives in 2023, including achieving our debt reduction goals, returning meaningful capital to our shareholders, and enhancing our liquidity through cash generation and an upsized revolving credit facility. Now, let's discuss our operational performance in detail. On the safety front, our Bailey Preparation Plant and CONSOL Marine Terminal each had zero employee recordable incidents during the full year of 2023.

We took advantage of our strong free cash flow to advance some of our key strategic initiatives in 2023, including achieving our debt reduction goals, returning meaningful capital to our shareholders and enhancing our liquidity to cash generation and upsized revolving credit facility.

Now, let's discuss our operational performance in detail on.

On the safety front, our Bailey preparation plant and Consol Marine terminal each had zero employee recordable incidents during the full year of 2023.

Jimmy Brock: Our coal operations finished the year with a total recordable incident rate approximately 33 percent below the national average for underground coal mines. Coal production at the Pennsylvania Mining Complex came in at 6.6 million tons in Q4'23, an improvement compared to 6.1 million tons in the prior year period. Production improved in Q4-23 compared to Q4-22 due to the availability of the fifth longwall in 2023 versus only four longwalls running in 2022. As such, the PAMC ended the year with an annual production of 26.1 million tons, marking its third consecutive year of production growth and its first time surpassing 26 million tons since 2019. On the cost front, our PNC average cash cost of coal sold per ton for Q4-23 was $36.28, compared to $34.89 in Q4-22, mostly due to continued inflationary pressures on suppliers, maintenance, and contractor labor at our operations. However, our Q4-23 cash cost of coal sold was more than $2 per tonne lower compared to Q3-23, mainly due to the incremental production times in the fourth quarter, on a Q4-23 also benefited from having zero lung diseases.

Our coal operations finished the year with a total recordable incident rate of approximately 33% below the national average for underground coal mines.

Coal production at the Pennsylvania mining complex came in at $6 6 million tonnes in Q4 23 and.

An improvement compared to $6 1 million tons in the prior year period.

Production improved in Q4 23 compared to Q4 'twenty two due to the availability of the fifth long wall in 2023 versus only four longwall was running in 2022.

As such the P. A M. C ended the year with an annual production of $26 1 million tonnes.

Marking its third consecutive year of production growth and its first time, surpassing 26 million tons since 2019.

On the cost front, our PMC average cash cost of coal sold per ton for Q4, 23 was $36.28 compared to $34.89 in Q4, 'twenty two mostly due to continued inflationary pressures on supplies maintenance and contractor.

Labor at our operations however.

However, our Q4 'twenty three cash cost of coal sold was more than $2 per ton lower compared to Q3 twenty-three mainly due to the incremental production tons in the fourth quarter.

On a sequential basis Q4, twenty-three also benefited from having zero of longwall moves.

Jimmy Brock: Looking ahead, simply due to the timing of our mining, we expect three planned longwall moves to occur at the PNC in the first quarter of 2024. However, after Q124, we expect to have only one long-well move for the remainder of the year, which is planned for the third quarter. Moving on to Irma.

Looking ahead.

Simply due to the timing of our mining we expect three planned longwall moves to occur at the PMC in the first quarter of 2024.

However, after Q1 'twenty four we expect to have only one longwall move for the remainder of the year, which is planned for the third quarter.

Moving on to Edmond.

Jimmy Brock: During the fourth quarter of 2023, the complex sales performance improved to 159,000 tons of coal, including third-party tons, compared to 123,000 tons in Q3 of 2020. This brought our four-year 2023 results for Itman to 316,000 tons of production and 515,000 tons of Itman and third-party coal sales in aggregate. During the fourth quarter, all three operating sessions continued to mine additional heist for mains development, which requires cutting additional rock and slows mining.

During the fourth quarter of 2023, the complex sales performance improved to 159000 tons of coal, including third party tons compared to 123000 tons in Q2 of 23.

This brought our full year 2023 results for <unk> to 316000 tons of production and 515000 tons of Beckman and third party coal sales in aggregate.

During the fourth quarter, all three operating sections continued to mine additional height for mains development, which requires cutting additional raw and slowest mining rates.

Jimmy Brock: Furthermore, we continue to be impacted by equipment delivery issues and higher employee turnover at Itman in Q4-23. Once we have completed our long-term maintenance development this year, we will operate the mining sections and targeted blocks of coal. This is expected to lead to more efficient mining rights and improve production rates. As such, we expect to increase our sales tonnage in 2024, which is reflected in our guidance for the Itman Mining Complex, which will move to the Casal Marine Terminal. We achieved a throughput volume of 4.7 million times during Q4-23 compared to 3.6 million times in the prior year quarter. Total revenues for Q4 came in at $25.4 million, and CMT operating cash costs were $6.8 million.

Furthermore, we continued to be impacted by equipment delivery issues and higher employee turnover at Edmunds in Q4 23.

Once we have completed our long term mains development. This year, we will operate the mining sections and targeted blocks of coal reserves.

This is expected to lead to more efficient mining heights and improve production rates as such we expect to increase our sales tonnage in 2024, which is reflected in our guidance for the mining complex.

Moving to the Consol Marine terminal.

We achieved a throughput volume of $4 7 million tonnes. During Q4, 'twenty three compared to $3 6 million tons in the prior year quarter.

Revenues for Q4 came in at $25 4 million and CMT operating cash costs were $6 8 million.

Mattesh: For 2023, the terminal achieved multiple operational and financial records. CMT finished the year with 19 million throughput tons, surpassing the previous annual throughput record of 14.3 million tons set in 2017. Terminal revenue for 2023 surpassed $100 million for the first time, finishing at $106.2 million. The Consol Marine Terminal finished 2023 with adjusted EBITDA of $80.3 million, by far the highest level in its history. Also, keep in mind that this was all achieved without any employee recordable safety incidents during the year. With that, I will turn the call over to Mattesh to provide the marketing and financial updates. Thank you, Jimmy, and good morning, everyone.

For 2023, the terminal achieved multiple operational and financial records.

CMT finished the year with 19 million throughput tonnes, surpassing the previous annual throughput record of $14 3 million tonnes set in 2017.

Terminal revenue for 'twenty twenty-three surpassed 100 million for the first time, finishing at $106 2 million.

The Consol Marine terminal finished 2023 with adjusted EBITDA of $80 3 million by far the highest level in its history.

Also keep in mind that this was all achieved without any employee recordable safety incidents during the year with that let me turn the call over to my tests to provide the marketing and financial updates.

Thank you Jimmy and good morning, everyone.

Mattesh: Let me start with an update on the marketing funds and their contracting progress. Demand for our product remained strong during the fourth quarter of 2023, and we finished the year with 26.6 million tons sold in aggregate between the PAMC and HITMAN in 2023, with a total of 16.2 million tons moving into the export market, which was the highest annual level in our history. During 4-3-23, we sold 6.8 million tons of PMC coal at an average realized coal revenue per ton sold of $74.64 compared to 6.2 million tons at $75.92 in the year-ago period. Nearly 60% of our PMC volumes were sold into export markets during the quarter.

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

Demand for our products remained strong during the fourth quarter of 2023, and we finished the year with 20 616 million tons sold in aggregate between the PMC and instrument during 2023 with a total of $16 2 million tons moving into the export market, which was the highest annual level in our history.

Children four to 'twenty three we saw a six 8 million tons of PMC coal at an average realized coal revenue per ton sold of $74.64 compared to $6 2 million tonnes at $75.92 in the year ago period.

Nearly 60% of our P. M C volumes were sold into the export markets during the quarter.

Mattesh: This brought total POMC sales to 26 million tons for the year. We achieved another important milestone in 2023, as sales into the export industrial market outpaced sales into the domestic power generation market, which has been an important strategic priority for us. Overall, sales in the export market for 2023 accounted for 70% of our total recurring revenues and other income. Conversely, domestic power generation sales accounted for only 26%.

This brought total PMC sales to 26 million tons for the.

We achieved another important milestone in 'twenty two 'twenty three our sales into the export industrial market outpaced sales into the domestic power generation market, which has been an important strategic priority for us.

Overall sales into the export market for 2023 accounted for 70% of recurring revenues and other income.

Conversely.

Domestic power generation sales accounted for only 26%.

Mattesh: Since our last earnings call, our sales team increased our forward sold position at the PMC by $4.7 million. The majority of these firms were sold into the domestic market under a fixed price arrangement through 2028. As such, we now have 22 million tons contracted for 2024 and 13 million tons contracted for 2025. One of the main benefits of our PMC coal is its ability to swell into many different end-use morphs, which gives us significant flexibility to prevent trends between markets depending on demands. This portfolio optimization capability has been evident over the last several years. In 2022, when European demand was strong and APHV prices were at historically high levels, we sold more than 3 million tons into Europe, where we had significantly retreated in the prior years. In 2023, we initially forecasted selling approximately 11 million tons into the export market. However, due to milder weather domestically and our ability to survive,

Since our last earnings call our sales team increased our forward sold position at the PMC by $4 7 million tons. The.

The majority of these tons, but sold into the domestic market under a fixed price arrangement through 2028.

As such we now have 22 million tons contracted for 2024, and 13 million tons contracted for 2025.

One of the main benefits of our PMC coal is its ability to sell into many different end use markets.

Which gives us significant flexibility to pivot tons between markets depending on demand trend.

This portfolio optimization capability has been evident over the last several years.

In 2022, when European demand was strong and API two prices were at historically high levels, we sold more than 3 million tons into Europe, while we had significantly the truth of it in the prior two years.

In 'twenty two 'twenty three we initially forecasted selling approximately 11 million tons into the export market.

However, due to milder weather domestically and our ability to pivot.

Mattesh: We moved an incremental 5 million tons into the stronger international markets to finish the year with approximately 16 million tons of PMC coal sold into the export market. More recently, we are expanding our reach in the industrial and crossover metallurgical market. Last year, we sold approximately 10 million tons of PMT tons into the industrial market, which was double the number of tons we shipped into this market in 2022. We believe there are incremental opportunities to expand into this market, specifically to Middle Eastern, African, and South Asian countries that are in structural growth mode on the Crossover Service Front. We shipped 2.6 million tons of PMC during the year, which is the highest we have ever achieved.

Move to an incremental 5 million tons into the stronger international markets finished the year with approximately 16 million tons of PMC called.

Sold into the export market.

More recently, we are expanding our reach in the industrial and crossover metallurgical markets.

Last year, we sold approximately 10 million PMC tons into the industrial market, which was double the number of tons, we shipped into this market in 2022.

We believe there are incremental opportunities to expand into this market specifically to middle Eastern African and South Asian countries that are in structural growth Mark.

On the crossover sales front.

We shipped $2 6 million P. M C tons during the year, which is the highest we have ever achieved.

Mattesh: We also shipped nearly half a million tons of coal from the Itman Mining Complex into the export MET market, bringing the total export MET sales for the company to more than 3 million tons in 2022. With the commissioning of our fifth long-wall Adela fork mine, which has a lower sulfur content that is desirable in the crossover MET market, and the ramp-up of our ethanol mining complex, we are expecting further growth in our MET coal business over time. Similar to the industrial market, we continue to work on penetrating new crossover metallurgical markets, particularly in South America and Asia.

We also shipped nearly a half a million tons of coal from the Hickman mining complex and the export met market, bringing the total export met sales for the company to more than 3 million tonnes and 2023.

With the commissioning of our fifth longwall at Adler, Fulltime, which has a lower sulfur content that it's desirable in the crossover met market and the ramp up of our admin mining complex. We are expecting further growth in our medical business over time.

Similar to the industrial market, we continue to work on penetrating new crossover metallurgical markets, particularly in South America and Asia.

Mattesh: Moving forward to 2024, we expect to follow a similar playbook by building upon a structural export market shift while maintaining a stable book of domestic fixed price business. There are several failures in the U.S. coal market that gives us confidence in our ability to continue to contract future domestic business. The increasing demand for data centers due to the deployment of AI technologies, growth of commercial data centers, and EVs is causing electricity usage to soar across the United States.

Moving forward to 'twenty 'twenty four we expect to follow a similar playbook by building upon our structural export market shift, while maintaining a stable book up domestic fixed price business.

There are separate tailwind in the U S coal market that gives us confidence in our ability.

To continue to contract future domestic business.

The increasing demand for data centers due to deployment of AI technologies growth of commercial factories, and Evs is causing electricity usage to sort of cross the United States.

Mattesh: As such, utilities and grid operators are increasing their forecast for U.S. electricity growth for the next five years, well above historical demand. As an example, within our operating footprint, PJM anticipates electricity demand to rise approximately 2.5% annually through the decade, an increase from less than 1% growth expectations a year ago, mainly due to the electrification of the transportation segment and industrial applications. In Virginia, one utility had to briefly pause new data center connections in Loudoun County because of an insufficient electricity supply.

As such utilities and grid operators are increasing their forecast for U S electricity growth for the next five years.

Well above historical demand trends.

As an example, within our operating footprint PJM anticipates electricity demand to rise approximately two 5% annually through the decade and increase from less than 1% growth expectations, a year ago, mainly due to the electrification of the transportation segment and industrial applications.

In Virginia, one utility had to briefly pause new data center connections in Loudoun County, because of insufficient electricity supply.

Mattesh: In Kansas City, energy is seeing the most robust electricity demand growth in decades. This leads us to believe that we could see some slowdown in coal power plant retirements or high utilization of surviving coal plants. Nonetheless, it provides us with confidence that we will continue to have strong demand from our core domestic customer base for many years to come. For the Xpen Mining Complex, we continue to see strong demand internationally and in the domestic market for our products. In fact, we recently completed a two-year deal for our equipment product in the export market.

In Kansas City.

Allergy is seeing the most robust electricity demand growth in decades.

This leads us to believe that we could see some slowdown in cobalt planned retirements or higher utilization of surviving coal plants.

Nonetheless, it provides us with confidence that we will continue to have strong demand from our core domestic customer base for many years to come.

Well the ackman mining complex.

We continue to see strong demand internationally and in the domestic market for our product in fact, we recently completed.

A two year deal for our main product in the export market for 'twenty 'twenty. Four we now have 571000 tons of admin all under contract with a balanced mix of domestic and international business.

Mattesh: For 2024, we now have 571,000 tons of X-Men coal under contract with a balanced mix of domestic and international. Now, let me provide a quick update on our financial results before providing our 2024 guidance and outlook. This morning, we reported a solid fourth quarter 2026 financial performance, which capped off a very strong year for the company. We finished 4Q23 with a net income of $157 million. Additionally, we finished the quarter with adjusted EBITDA of $240 million and generated $165 million of free cash. We ended the year with a net cash position of $88 million and total liquidity of $525 million. For the full year of 2023, we reported net income of $656 million, adjusted at about $1.05 billion, and free cash flow of $687 million, all of which are annual records for our company. We generated $858 million of cash flow from operations, of which $168 million was used for capital expenditures, and $687 million was available as free cash flow.

Let me provide a quick update on our financial results before providing our 2020 full guidance and outlook.

This morning, we reported a solid fourth quarter 2022 financial performance, which capped off a very strong year for the company.

We finished for Q 'twenty three with net income of 157 million <unk>.

Additionally, we finished the quarter with adjusted EBITDA of $240 million and generated $165 million of free cash flow.

We ended the year with a net cash position of 88 million and total liquidity of $525 million.

For the full year 2023, we reported net income of $656 million adjusted EBITDA of one four instead of 5 billion and free cash flow of $687 million all of which are annual records for our company.

We generated $858 million of cash flow from operations of which 168 million was used towards capital expenditures and 687 million was available as free cash flow.

Mattesh: Of the $687 million, 28% was deployed towards debt repayment, and 68% towards shareholder return. These together translate to approximately $22 a share based on our year-end 2023 share price. Now, let me provide our output for 2024. Starting with the PMC, we are expecting our 2024 sales volume to be consistent at the mid-point compared to our 2023 level. We view a 5-long wall complex as having a base production level of 26 million tons with optionality to ramp up or pull back depending on market dynamics and other factors. We are currently 85% contracted at the midpoint of our guidance range, with the expectation that the majority of unsold tons will move into export markets, most likely the crossover met market, which is more spot in nature. On the pricing front, we expect our average realized coal revenue per ton sold to be in the $62.50 to $66.50 range, assuming a $105 a ton API 2 price at the midpoint.

The 687 million, 28% was deployed towards debt repayment and 68% to a shareholder returns.

These together translates to approximately $22 a share based on our year end 2023 share count.

Now, let me provide our outlook for 2024.

Starting with the P. M. C. We are expecting a 'twenty 'twenty four sales volume to be consistent at the midpoint compared to our 2023 level.

We view our five longwall complex is having a base production level of 26 million tonnes with the optionality to ramp up or pull back depending on market dynamics and other factors.

We are currently 85% contracted at the midpoint of our guidance range.

With the expectation that the majority of unsold tons will move into export markets, most likely the crossover met market, which is more spot in nature.

On the pricing front, we expect average realized core revenue per tons sold to be in the 60 to 50 to $66 50 range, assuming a $105 a tonne average API two price at the midpoint.

Mattesh: Relative to 2023, this range reflects lower commodity pricing, specifically API2 prices, as well as the roll-off of some higher fixed-price contracts that were put in place under previous market conditions. For reference, API 2 prices averaged $128 a ton in 2023. We expect our 2024 PMC average cash cost of coal sold to be $36.50 to $38.50 per ton, reflecting modest inflationary increases compared to 2023 levels

Relative to 2023 this range reflects lower commodity pricing specifically for API two prices as well as the roll off of some higher fixed price contracts that were put in place under previous market conditions.

For reference API, two prices averaged $128 a tonne in 2023.

We expect our 2024 P. M C average cash cost of coal sold to be.

36, $53 50 per ton.

Reflecting modest inflationary increases compared to 2023 levels.

Mattesh: The bottom end of our cost guidance captures the potential for deflation in key commodities, including power prices, as well as fixed cost leverage at the higher end of the sales volume range. Conversely, the top end accounts for reduced tonnage or a stronger commodity market, which would be a net benefit to our cash margins but a headwind to our power and supply costs. For our Ipman Mining Complex, we are introducing annual sales tonnage and the average cash cost of coal sold per tonnage. On the surf front, we expect a range of 600,000 to 800,000 tonnes.

The bottom end of our cost guidance captures the potential for deflation in key commodities, including power prices as well as fixed cost leverage at the higher end of the sales volume range carnivores.

Conversely, the top end of contract law reduced tonnage at a stronger commodity market, which would be a net benefit to our cash margins, but a headwind to our power and supply costs.

But our Edmond mining complex.

Introducing annual sales tonnage and average cash cost of coal sold per ton guidance.

On the sales front, we expect a range of 600 to 800000 tons.

Mattesh: The lower-end captures our current contracted position, while the upper-end contemplates moving beyond gains development quicker and expanding our third-party sales. On the cash cost side, we expect an average cash cost of course sold per ton range of $120 to $140. The upper end accounts for the possibility of extended means development, persistent staffing challenges, and reduced demand, while the lower end captures the possibility of reduced inflationary pressures and increased production. Lastly, on the Capital Expenditures Fund for 2024, we expect a range. $175-$200 million. This range is slightly higher than a typical CapEx guidance range for us but reflects planned spending from prior years moving into 2024. Keep in mind that we started 2022 with a top-end capex expectation of nearly $200 million but only spent $172 million in that year. We also started 2023 with an expectation of $185 million at the top and only spent $168 million. As we highlighted throughout last year, supply chain bottlenecks delayed equipment deliveries and extended lead times, and this has forced us to make certain planned expenditures. But that, let me turn it back to Jeremy.

Lower end captures our current contracted position, while the upper end content protection moving beyond games development quicker and expanding our third party sales.

And the cash cost side, we expect an average cash cost of coal sold per ton range 120 to $140.

But on comps for the possibility of extended means development assistance staffing challenges and reduced tonnage.

While the lower end captures the possibility of reduced inflationary pressures and increased production.

Lastly on the capital expenditures front for 2024.

We expect a range of one.

$175 million to $200 million.

This range is slightly higher than a typical capex guidance range for us, but reflects some planned spending from prior years moving into 2024.

Keep in mind that we started 2022 with the top end capex expectation of nearly 200 million, but only spent $172 million in debt.

We also started 2023 with an expectation of 185 million at the top end and only spent $168 million.

As we highlighted throughout last year, our supply chain bottlenecks have delayed equipment deliveries and extended lead times and this has postponed certain planned expenditures.

That let me turn it back to Jimmy.

Jeremy: Thank you, Mike. Let me now provide an update on our shareholder return program, which is one of our key capital allocation priorities for 2023. We deployed approximately 85% of the free cash flow generated during the fourth quarter towards repurchasing shares of our outstanding common stock. In total, through January 2024, we deployed $141 million of our Q4-23 free cash flow towards repurchasing 1.4 million shares of CEIX stock at a rated average price of approximately $100 per share.

Thank you <unk>.

Let me now provide an update on our shareholder return program, which has been one of our key capital allocation priorities in 2023, we.

We deployed approximately 85% of the free cash flow generated during the fourth quarter towards repurchasing shares of our outstanding common stock in total through January of 'twenty 'twenty four we deployed 141 million over Q4, 23 free cash flow towards <unk>.

<unk>, one 4 million shares of <unk>.

Stock at a weighted average price of approximately $100 per share.

Jeremy: Since restarting our share repurchase program in late 2022, we've retired 5.7 million shares, or 16% of our public growth over that time period. As we kick off 2024, we have a few key areas of focus that we believe will further strengthen our company. First,

Since restarting our share repurchase program in late 2022, we've retired five 7 million shares or 16% of our public float over that time period.

As we kick off 2024.

We have a few key areas of focus that we believe will further strengthen our company first we are excited by our progress in expanding our sales reach around the world.

Jeremy: We are excited by our progress in expanding our sales reach around the world. In 2023, we were successful in marketing our PAMC coal to three new countries, and we are committed to further penetrating new markets while continuing to expand our sales growth and the growing market. This will be made possible through our high-quality coal, as well as our ownership in the Consol Marine Company. Second, we expect to leverage our strong contracted book and customer relationships to continue to lay around future sales in an opportunistic manner. Our contracting strategy has always been designed to smooth out the peaks and valleys of market dynamics, and our strong contracted position today allows us to be more patient in softer markets. We believe that one of our strategic advantages is our ability to lock in contract duration, which gives us good revenue visibility and allows us to adjust the business accordingly to manage our cash flow generally.

In 2023, we were successful in marketing our P. A M C code to three new countries and we are committed to further penetrating new markets, while continuing to expand ourselves both in growing markets.

This will be made possible through our high quality coal as well as our ownership and the Consol Marine terminal.

Second we expect to leverage our strong contracted book and customer relationships to continue to lay around future sales in an opportunistic manner.

Our contracting strategy has always been designed to smooth out the peaks and valleys of the market dynamics and our strong contracted position to date allows us to be more patient and softer markets.

We believe that one of our strategic advantages is our ability to lock in contract duration, which gives us good revenue visibility and allows us to adjust the business accordingly to manage our cash flow generation.

Jeremy: This is one of the main reasons we've generated positive free cash flow every single year since our spin, despite the strength or weakness in the market. Third, To further manage our free cash flow generation, CONSOL is laser-focused on managing our cash outflow. The team has done a good job identifying unnecessary spending while working hard to mitigate as much inflationary pressure as possible. It is no secret that inflation over the past several years has increased the cost of doing business for nearly every company, regardless of industry. However, we rarely take a passive approach to problems.

This is one of the main reasons, we generated positive free cash flow every single year since our spin despite the strength or weakness in the market.

Third.

To further manage our free cash flow generation Consol is laser focused on managing our cash outflows.

The team has done a good job in identifying unnecessary spending while working hard to mitigate as much inflationary pressure as possible.

It is no secret that inflation over the past several years has increased the cost of doing business for nearly every company regardless of industry.

However, we rarely take a passive approach to problems, we will be focused on reducing spend where possible to expand our cash margins and free cash flow generation, while maintaining our core values of safety and compliance.

Jeremy: We will be focused on reducing spend where possible to expand our cash margins and pre-cash flow generation while maintaining our core values of safety and compliance. Furthermore, we are committed to scaling up the Itman mine to full run rate production. While staffing challenges and extending mains development timing hampered the wrap-up in 2023, we are getting closer to moving past these issues. We expect more than a 36% increase in sales volume at the midpoint of our 2024 guidance compared to 2023 levels, and we have seen strong interest in our Itman product in the domestic and export markets. I remain very excited about ITMA's potential and the revenue diversification that having a low-volatility MET product in our portfolio will bring. Fair.

Fourth we are committed to scaling up the tinman mine to full run rate production.

<unk> staffing challenges and extended mains development timing hampered the ramp up in 2023, we're getting closer to moving past these issues.

We expect more than 36% increase in sales volume at the midpoint of our 2024 guidance compared to 2023 levels and we are seeing strong interest for <unk> product in the domestic and export markets.

I remain very excited about <unk> potential and the revenue diversification that having a low vol met product in our portfolio well brain.

Phil.

Jeremy: We continue to focus on returning value to our shareholders through our capital allocation framework. We proved in 2023 that tremendous value can be created through multiple avenues of capital deployment. We will continue to analyze the best use of our capital and prioritize the highest rate of return.

We continue to focus on returning value to our shareholders through our capital allocation framework.

We proved in 2023 that tremendous value can be created through multiple avenues of capital deployment.

We will continue to analyze the best use of our capital and prioritize the highest rate of return.

Jeremy: We are very pleased with our results in execution in 2023, which was a record year for us on multiple fronts, both operationally and financially. We remain even more excited about the future as we are a much different company today due to our stronger balance sheet and export sales share. I want to personally thank all of our employees for their dedication and hard work, which builds these exceptional results safely and compliantly. I am extremely proud of this team and their execution in 2023.

We are very pleased with our results and execution in 2023, which was a record year for us on multiple fronts, both operationally and financially.

We remain even more excited about the future as we are a much different company today due to our stronger balance sheet and export sales shift.

I want to personally thank all of our employees for their dedication and hard work, which drove these exceptional results safely anchor poly.

I am extremely proud of this team and their execution in 2023.

Jeremy: Before turning the call over to the next speaker, I want to highlight a major public awareness campaign that we are spearheading. We were proud to introduce our Not So Fast campaign in the fourth quarter of 2023, which is meant to educate the public, elected officials, and corporate leaders about the truth about many of the myths being spoken about coal. The campaign advocates for a more measured, realistic, and moral approach to our country's energy policies. We believe we are too quickly moving away from proven biofuel-based sources of energy like coal in favor of intermittent sources like wind and solar. Coal is pivotal, not just for power generation but in creating steel and concrete that will be necessary for the infrastructure needed during the transition to renewable energy sources. It is also used for activated carbon for clean water, fertilizers for the food we farm, and materials for many of the products we need and use every day.

Before turning the call over I want to highlight a major public awareness campaign that we are spearheading.

We were proud to introduce our not so fast campaign in the fourth quarter of 2023.

Which is meant to educate the public elected officials and corporate leaders about the truth involving many of the myths being spoken about coal.

The campaign advocates for a more measured realistic and moral approach to the energy policies of our country.

We believe we are too quickly moving away from proven fossil fuel based sources of energy a lot coal in favor of intermittent sources like wind and solar.

Coal is pivotal not just for power generation, but in creating steel and concrete that would be necessary for the infrastructure needed during that transition to renewables.

It is also used for activated carbon for clean water fertilizers for the food, we farm and materials for many of the products, we need and use every day.

Nathan Tucker: We encourage you to head over to www.coalhardtruth.com and help us spread the word on this campaign. With that, I will hand the call back over to Nate. Thank you, Jimmy.

We encourage you to head over to Www dot cold hard truth Dot com and help us spread the word on this campaign with that I will hand, the call back over Tonight. Thank.

Operator: 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 caller. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone.

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.

We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone, if you're using a speaker phone. Please pick up your handset before pressing the keys. If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Operator: If you are using a speakerphone, please pick up your handset before pressing the key. If at any time your question has been answered and you would like to withdraw your question, please press star, then 2. Our first question comes from Lucas Pipes with D. Reilly Securities. Please go ahead. Thank you very much, operator. And good morning, everyone.

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

Lucas Pipes: My first question is on the 2024 outlook. And I wondered, on SCNA, we saw a nice reduction in 2023 year-on-year, which is 22. What's your outlook for 2024 on that line item? And then how should we think about the Baltimore Terminal and its contributions to EBITDA in 2024? Thank you. Thank you, Lucas.

Mike My first question is on the 2020 for outlook and I Wonder.

On SG&A, we saw a nice reduction in 2023 year on year versus 22.

What's your outlook for 'twenty four on on that line item and then how should we think about the Baltimore terminal and its contributions to EBITDA in 2024. Thank you.

Thank you Lucas I'll take the first half on the SG&A side.

Mattesh: I'll take the first half. On the SC&A side, yes, you know that it was correctly done, we did RFP, and it did come down compared to last year. We expect some more design this year as some of the legislation changes. Thank you. Stop Waste Compensation is coming down, and overall, I think that... We are focused, going forward as well, to focus on the cost side, both of the operation side and other parts of our business, payments on the SG&A side to see that as well. It's enough; I'm welcome. Sure.

Yes.

Did it correctly, we did on SG&A it did come down compared to last year.

We expect.

Some more decline this year.

Most of our legacy.

Stock based compensation.

<unk> is coming down and overall I think that continues to be our focus going forward as well.

To focus on the cost side, both on the operation side and other parts of our business. So you should see some tailwind.

Taylor and so on the SG&A side this year as well.

Now.

On Baltimore.

Sure on.

Mattesh: On your Baltimore question, the starting point on the Baltimore terminal side, from a throughput perspective, is a little bit lower than 2023. We are modeling around 16-17 million tons of throughput. Having said that, if you hear the prepared remarks that we talked about, like about 4 or 5 million tons moved from domestic to export in 2023, we could expect a similar shift this year as well. It all depends on where the pricing is, as we have said earlier that, Potentially, we are optimizing our portfolio based on the highest rapid growth that's available. So the more tons that could move into the export market, the higher the sales through Baltimore would be. PMC accounts for 88.5% of throughput through Baltimore. Our third-party contracting business is still strong.

On your Baltimore question, Mike starting point on the Baltimore terminal side from a throughput perspective, there's a little bit lower than 2023, we are modeling around 16 to 17 million tons of throughput, having said that if you.

She had her prepared remarks that we've talked about like quad.

About $4 5 million tons moved.

2023 from domestic to export we could expect a similar shift does that as well.

It all depends on where the pricing is as we have said.

Pardon me.

You could potentially CES optimizing our portfolio based on the highest stocking across that's available so the more tons that could move into the export market. The hydro sales toboggan board would be.

PMC accounted for 80% to 85% of throughput for Baltimore Third party contracting is still strong.

Mattesh: So, even though the starting point is around, let's call it, 17 million tons, I wouldn't be surprised if we end up there. But look, one of the really important things about the terminal is the flexibility and optionality it brings to penetrate these new markets. Bobby has done a really good job of moving out from our original strategy that we had.

Even though the starting point is around the next call. It 17 million tonnes I wouldn't be surprised if we end up doing more but.

Just wanted to one of the really important things about the terminal is the flexibility and optionality to penetrate these new markets I mean, Bobby has done a really good job of moving out from our original strategy that we had that terminal is key to us being able to move these tons into the export markets.

Mattesh: That terminal is key to us being able to move these tons into export markets and to do so fairly quickly if we need to pivot. That's helpful. Thank you. I'll turn it over to my second question when we come back to this later. If I heard you right in the prepared remarks, the midpoint of your pricing guide kind of underwrites the $105 API2 price and a few questions on that. Are you at the floor of your committed export firms at that price? or are you at the floor at today's price for API 2 and then how should we think about the kind of a sensitivity of your book to further declines in API 2 given given the floor dynamics? How should we think about the sensitivity to the upside? On API 2.

So fairly quickly if we need to pivot.

That's helpful. Thank you I'll I'll I'll turn it over to my second question May come back to this later.

If I heard you right in the in the prepared remarks are the mid point of your pricing guide.

Underwrites, a $105 API two pricing.

Few questions on on that.

Yeah.

Are you are you at the floor of your committed.

Export tons at at that price.

Or are you at the floor at today's spot price for API too and then how should we think about.

Kind of a sensitivity of your book to a further decline in API two given given the floor dynamic how should we think about.

The activity to the upside.

On API too. Thank you. Thank you very much.

Bob Brakeway: Thank you. Thank you very much. Look, it's about 6.5 million tons of our book for next year or this year's card is tied to API 2 prices. I'd tell you today about 50% of those, or call it 3.2, 3.3, are at the floor, at the current price level, API 2 price level. Call it 9, you know, low to mid 9.

Lucas about six 5 million tons of our book for next year or this year, sorry is tied to API two prices I'd tell you today about 50% of those are call. It 3233 are at the floor at the current price level API two price level call it low to mid nineties.

Bob Brakeway: We hit the floor of all contracts roughly in about the mid to upper 80s, so there's not much, I'd say the downside potential for us is very minimal on a go-forward basis should API 2 fall, but we have extensive upside, you know, our current sensitivity on the upside for every dollar change is about 18 cents across our entire portfolio, so, you know, API 2 prices were to come back a little bit, which, again, I think there is still opportunity to see a pathway for that, especially with the reduced L&D coming out of the U.S., you know, we can certainly see some benefits there, and that certainly gets us to the top end of our guidance that we provided. That's very helpful, Bobby.

We hit the floor of all contracts roughly in about the mid to upper <unk>. So there's not much I would say the downside potential for US is very minimal on a go forward basis should API to fall, but we have extensive upside our current sensitivity on the upside for every dollar change is about 18 sense across our entire portfolio. So.

You know if API two prices were too.

Come back a little bit, which again I think there is still opportunity I can see a pathway for that especially with the reduced LNG coming out of the U S.

We could certainly see some benefits there and that certainly gets us toward our upside or to the top end of our guidance that we provided.

That's very helpful. Bob you had two quick follow ups in terms of the 22 million tons that are committed to 424 can you provide kind of a breakdown of where they're going and what what what the key.

Bob Brakeway: Two quick follow-ups. In terms of the 22 million tons that are committed for 2024, can you provide kind of a breakdown of where they're going and what the key drivers are for the pricing, to the extent they're still sensitive to any inputs? And then also for the crossover tons, how much... How much of the remaining open tonnage is going into the crossover market, and how should we think about the net backs on that? Soon, about 13 million tons will be put to bed for the domestic market next year, of which about two and a half are linked to power. I will also tell you that this year we have a new contract with our customer where we have a power link where our base price is significantly higher. We actually do not receive any EMA now until, let's call it, mid $40 power prices. The good news for us is that we did see some EMA in the month of January.

<unk> yourself with the pricing.

To the extent there still.

Sensitive to any inputs and then also for the crossover tons, how how much.

How much of your remaining open tonnage.

Going into the crossover market and how should we think about the.

The net backs on that.

So about 13 million tonnes put to bed for the domestic market next year of which about two and a half are linked to power.

I will also tell you that this year we have a.

Our new contract with our customer that we have a power link where our base price is significantly higher.

We actually do not receive any EMA now until call it mid $40 power prices.

Good news for US is we did see some DMA in the month of January the cold snap that we saw mid to late January certainly helped us and we originally modeled and basically no EAA and R. R.

Bob Brakeway: The cold snap that we saw mid to late January certainly helped us, and as we recently modeled in basically no EMA in our month of January. The balance we would expect to sell exports, that's another 13 million tons to get to the midpoint of the guidance. On the crossover front, we expect to sell probably an additional 2-3 million tons of our open position, so 4 million tons of open position to get to our midpoint. Those 2-3 million would be in the crossover market, and I would say that would be split between the Atlantic, i.e., South America, and then the other half would be going to the Pacific market.

Our plan going forward, but we did see some in the month of January So again good news there the balance we would we would expect to sell export. So that's another 13 million tonnes.

To get to the midpoint of the guidance on the crossover front, we expect to sell probably an additional two to 3 million tons of our open positions. So 4 million tons are well positioned to get to our midpoint $2 million to $3 million would be in the crossover market.

And I would say that would be split between the Atlantic I E. South America, and then the other half would be going to the Pacific market today.

Bob Brakeway: Today, where high Vol B prices are, you know, in the 220 range, we're certainly seeing positive netbacks there, you know, close to $80 back to the mine, and then when you look at where TSI prices are for our crossover call into Asia, it's just slightly lower than that, but again, very healthy margins there, I'd say somewhere in the low to mid-70s, very helpful. I appreciate the call. I'll turn it over to you now.

Today were high vol. B prices are you know in the.

And the $2 20 range.

<unk> seen positive net backs there close to $80 back to the mine and then when you look at where tsi prices are for our crossover coal into Asia.

It's just slightly lower than that but again, you know very healthy margins, there I'd say somewhere in the low to mid seventies.

Very helpful. I appreciate the color I'll turn it over for now thank you.

Bob Brakeway: Thank you. The next question comes from Nathan Martin with The Benchmark Company. Please go ahead.

Thank you Nicholas.

Question comes from Nathan Martin with the Benchmark Company. Please go ahead.

Nathan Martin: Hey, thanks operator, good morning guys, congrats on a strong finish to the year and thanks for taking my question. Thank you. Bob, I'll stick with you just for a minute.

Hey, Thanks, operator, good morning, guys.

Congrats on a strong finish to the year and thanks for taking my questions.

Thanks Nate.

Bob Let me stick with you just for a minute Lucas pretty much touched on most of my 24.

Bob Brakeway: Lucas pretty much touched on most of my 24 questions, but if we look to 25, you added a million-plus tons there as well. It looks like you're at 13 million tons now. Could we kind of get a breakdown of those tons as well and maybe where you see pricing, average pricing on those? Sure. So the 13 million tons we have now, which I believe is an increase of about 2.2 million tons since our last earnings call. We have just over 8 million tons domestically, of which two and a half of those are linked to power, the balance being exported. All our index links are up to date, and all do have ceilings and floors.

But if we looked at 25, you added a million plus tons there as well it looks like you're at 13 million tonnes now can we kind of get a breakdown of those tons as well and maybe where you see pricing average pricing on those.

Sure. So the 13 million tons, we have now which I believe has increased about $2 2 million tons since our last earnings call.

Just over 8 million tons domestically of which two and a half of those are linked to power the balance being export all of our index linked to date and I'll do have ceilings and floors. We modeled the 2025, we did also model and $105 API two price and sitting here today, we're mid <unk> across the.

Bob Brakeway: We modeled 2025, and we did also model a $105 API 2 price, and sitting here today, we're in the mid-60s across the portfolio for the sold total. Security, got it, very helpful, I appreciate that. Maybe shifting gears over to ITMAN, you know, got some guidance there, sales of 600,000 to 800,000 tons, cash cost per ton, 120,000 to 140,000. Let's start with the cost. Again, you know, video tapes, and many more.

The portfolio for the sole tons.

Okay.

Got it helped.

Maybe maybe shifting gears over to it and then they've got some guidance there Phil 600, 800000 tons cash cost per ton.

20 to 140.

Let's start with the cost again.

Higher than your peers, obviously, you mentioned, you're still ramping things up.

Jimmy Brock: Okay, I'll take the first part of it, Nate. First, let's talk about the cost side, the 120 to 140 guidance that we give. Certainly a little higher number than we want, but keep in mind, I think as we continue to ramp up in our main development down through there, we're having to cut additional rock for high ventilation purposes for the long term, which slows down the mining rates a little bit. I think the cost we've seen thus far at Itman is pretty much reflected in two things. One is volume.

So do you think there will be opportunities to improve on that cost range. You. Once you get up to there are more of a traditional run rates.

And then maybe as it relates to sales.

That's 600 to 800000 ton number does that include third party sales, maybe you can remind us of throughput capacity. The terminal excuse me at the prep plant there as well and then any breakdown I think you called out 571000 contracted tons for it but any breakdown would be helpful. If domestic versus X.

Jimmy Brock: You know, volume is certainly going to help that cost number as we get more, and we've seen some signs of improvement there, and we think we will begin to improve on that. The second thing is some of these, you know, inflationary pressures that we're seeing, and for us, it's pretty much in the equipment. You know, those equipment delays that we've had are not allowing us to run as efficiently as we would like to, whereas if we have the new equipment, we think we're going to get, you know, more time per man hour out of that.

And kind of where you expect to sell the remainder of those thoughts.

Okay I'll take the first part of it first let's talk about the cost side. The 120 to $1 40 guidance that we'll give certainly a little higher number than we want but keep in mind I think as we continue to ramp up in our mine development down there, we're having to cut additional rock for <unk>.

Hi for ventilation purposes for long term, which slows down the mining rates a little bit.

Thank the costs, we've seen thus far at it but it's pretty much reflected for two things one is volume.

Volume is certainly going to help that cost number as we get more and we've seen some signs of improvement.

We will begin to improve on that the second thing is some of these inflationary pressures that we're seeing and for us it's pretty much and the equipment those equipment delays that we've had.

Not allowing us to run as efficient as we would like to whereas if we had the new equipment. We think we're going to get more tons per man hour to come out of that the labor has been challenging down there as we've mentioned before but I think that's beginning to stabilize we had a management change there at the top.

Jimmy Brock: The labor has been challenging down there, as we've mentioned before, but I think that's beginning to stabilize. We had a management change there at the top, and we think that as we go forward, that's going to be helpful as well. Very experienced and low-seem minds, and those things should help us there. Getting back to, you know, the potential of running, ramping up to full speed.

And we think that is.

As we go forward thats going to be helpful. As well, a very experienced and low seam mining and those things should help us there.

Getting back to.

The potential of running ramping up to full speed I think yes, we were very close to being able to turn one of the three sections off into a panel that will give us would be able to moderate lower highest we'll see what those volumes are coming out of there and I look for that to be a better number that helps our overall cost.

Jimmy Brock: I think we are very close to being able to turn one of the three sections off into a panel. That'll give us, you know, we'll be able to mine at lower heights, and we'll see what those volumes are coming out of there. And I look for that to be a better number that helps our overall cost. And we'll get to that, you know, sooner.

And we will get to that.

Jimmy Brock: But it's going to be pretty much the first half of this year before we have all three of those sections that are running in what we call the mining house that we plan for, mining in the scene, which helps the cost of the, you know, the prep plant as well. The throughput volume at the plant, you know, it's a 600 times an hour plant. We think we can put 3 million tons plus there. And the guys are making great improvements there.

But it's going to be pretty much. The first half of this year before we have all three of those sections that are running in what we call. The modeling part that we planned for mining in the scene, which helps to cost at the prep plant as well.

The throughput volume at the plant. It's a 600 tonne an hour plant. We think we can put 3 million tons plus through there.

And the guys are making great improvements there. So we're looking forward to what our yields can look like there.

Jimmy Brock: So we're looking forward to what our yield can look like there. And we're located in a position down there where we'll have opportunities for third-party coal, which will help the cost of that prep plant. We knew that when we put it in, and that's why we put the SDOT plant in.

And we're located in a position down there to whereas we will have opportunities for third party coal, which will help the cost of that prep plant as we knew that when we put it in and that's why we put the SaaS plant and yeah, and then on the marketing side.

Bob Brakeway: Yeah, and then on the marketing side, Nate, it's very exciting. We've got a lot of interest in the Edmund product. As we mentioned, we've got 571,000 tons already sold for 2024. We also concluded a two-year deal with an export customer, so we actually have coal already secured for 2025. I think this goes to show the attractiveness of the product and the quality of the product.

It's very exciting.

We've got a lot of interest for the <unk> product as we mentioned, we got 571000 tons already sold for 2024.

We also concluded a two year deal with an export customers. So we actually have call already secured for 2025.

Just goes to show the attractiveness of the product and the quality of the product.

Bob Brakeway: When you look at the breakdown so far, the 571,000, it's almost an equal split between domestic and export so far. I would tell you that the balance of the volume that we're going to sell will be on the export market. You know, looking at where U.S. East Coast Louisville and TSI prices are today, I would expect that portfolio average to be somewhere in that 170 to 180 range. And that 170 to 180 bob is for the PI 71, that blended average. That would be what my expectations are for the total volume that we anticipate selling through it. So with the mid-term that ranged 700,000 pounds, what was the price range again? I'm sorry. $170,000 to $180,000 based on the current market, got it, got it, got it okay, that's a very helpful crew, so essentially, it sounds like the realizations they're obviously domestic are uh, domestic, and then when the export's out of the house, it's probably a similar uh, based on your flow volume, maybe a discount or no discount, maybe you can get some color there depending on Yeah, I mean, the discount's very minimal.

When you look at the breakdown so far the 571000, it's almost an equal split between domestic and export to date I would tell you that the balance of the volume that we're going to sell will be in the export market.

Looking at where USA East coast Louisville on Tsi prices are today, I would expect that portfolio average to be somewhere in that $1 70 to 180 range.

And that 170 to 180, Bob is for the 571 that blended average.

That would that would be what my expectations are on the total volume that we anticipate selling through admin.

So okay I'll go with the midpoint of that range 700000 tonnes is what was the price range that again I'm sorry.

170 to $1 80 based on the current marks.

Got it got it okay.

That's very helpful too.

So essentially it sounds like the realizations there obviously domestic is.

As domestic and then on the export side of the house, it's probably a similar based.

Based on U S low vol, maybe a discount or no discount maybe you can give some color there and then depending on the market as you go into.

Yes, I mean, the discount is very minimal certainly single digits and it's low single digits.

Bob Brakeway: It's certainly single digits, and it's low single digits for the product that we're selling into the Atlantic market today. And then the products that we're selling into the Pacific market, you know, they're, again, single digits a little bit higher, I would say, than what we're seeing on the U.S. East Coast Low Vol, and then you would, you know, take the freight differentials between But again, both are providing really nice utilization. As you probably remember, we talked about the domestic book that we, domestic tons, we secured a couple quarters ago. These are certainly, I'll say, lower prices than what we're seeing on the export side today.

For the product that we're selling into the Atlantic market today, and then the products that we're selling into the Pacific market.

Again single digits, a little bit higher I would say than than what we're seeing on the U S. East Coast low vol. And then you would take the freight differentials between Australia and U S. But again, both are providing really nice realizations.

As you probably remember we talked about the domestic book that we do.

The tons, we secured a couple of quarters ago. Those are certainly I'll say lower pricing than what we're seeing on the export side today. So again the export price today, if we can get some more third party close with Jimmy mentioned to try to get the plant to capacity.

Bob Brakeway: So again, the export price today, if we can get some more third-party colds, which Jimmy mentioned, to try to get the plants to capacity, that will only uplift that overall pricing or average pricing for the year. So again, I'm very excited about that opportunity. We're working daily to get more volume into that plant to help drive our costs down and drive our realization up. Thank you. Very helpful, Bob. I appreciate that. And then, maybe just one more.

That will only uplift that overall pricing our average pricing for the year. So again very excited about that opportunity we're working.

Working daily to get more volume through that plan to help drive our costs down and drive our realization up.

Very helpful. Bob I appreciate that and then maybe just one more going back to shipments and you guys mentioned in your prepared remarks, I think it was three longwall moves in the first quarter and then maybe one additional in the third quarter.

Nathan Martin: Going back to KMT shipments, you guys mentioned you prepared the marks. I think it was three long-wall moves in the first quarter and then maybe one additional in the third quarter. Maybe you can give us an idea kind of around the cadence of shipments as we move the video then. Typically, I think the third quarter is probably your lowest from a seasonality perspective, but it sounds like maybe one or two volumes could be pressured a bit from the three long-wall moves. So, any color there would be great as well.

Maybe you could give us an idea of kind of around the cadence of shipments as we move through the year. Then typically I think the third quarter is probably your lowest from a seasonality perspective, but it sounds like maybe <unk> volumes could be pressured a bit from a.

From the three longwall moves so any color there would be great as well.

Jimmy Brock: Yeah, well, on the cadence of the long-law moves, we do have three in the first quarter here. One is ongoing now that we just started, but those long-law moves are, you know, they don't bother me. It's a sign of progress, you know, as we pull those panels out and move to the next one. However, we'll shift around, you know, our quarterly revenues a little bit. Obviously, if you look at the three long-law moves, I use, you know, somewhere around 20,000 terms per long-law move per day.

Yeah, well on the on the cadence of the longwall moves we do have three.

In the first quarter here one is ongoing now that we just started but those longwall moves are.

They don't bother me, it's a sign of progress as we retreat those panels that we move to the next one however, it will shift around.

Quarter revenues, a little bit obviously, if you look at the three longwall moves I use somewhere around 20000 tonnes per longwall per day.

Jimmy Brock: So, if you have three of those and we have three moves, let's say our scheduled PO move days are nine to ten days. So, you can see the math out where we could be, you know, slightly shorter times in the first quarter compared to the rest. And typically, the first quarter is our strongest quarter, particularly when it comes to production. I can see that moving out.

If you have three of those and we have three moves let's say our schedule P. L. Move days are nine to 10 days. So you can see the math there, whereas we could be.

Slightly short tons in the first quarter compared to the rest and typically the first quarter is our strongest quarter, particularly when it comes to production I can see that moving out and then the good news is we finish these three longwall moves here in Q1, we only have one more planned and it's in the third quarter. So it will give us an opportunity.

Jimmy Brock: And then the good news is that when we finish these three long-term moves here in Q1, we only have one more planned, and it's in the third quarter. So, it'll give us an opportunity, you know, to run strong after we get out of this first quarter here from a timing standpoint. And then, of course, the market will be the market. We'll send those times to wherever we sell. So, especially in the fourth quarter, we have better quarters this year, Nate, compared to our history, where the first is typically the strongest. And same thing with production, you know; cost goes all the way, so lower production, higher cost. Higher production means lower cost.

To run strong after we get out of this first quarter here from a tonnage standpoint, and then of course the market will be the market will send those tons to wherever we mark.

And so second and fourth quarter will be better quarters. This year Nick.

And it goes back to our history of that for US is typically the strongest and same thing with the production cost goes the other way so lower production costs higher production lower costs. So that would also flow through.

Jimmy Brock: So, that will also flow through. Got it? Thanks, Jimmy, and Vitesh. I'll leave it there, guys. As always, I appreciate the time and information, and best of luck in 24. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Nathan Tucker for any closing remarks. We'd like to thank you all for your participation this morning and for your support of CONSOL Energy. We hope we have answered your questions, and we look forward to speaking with you on our next earnings call. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Sure.

Got it thanks Jimmy.

I'll leave it there guys as always appreciate the time and information and best of luck in 'twenty four.

Thanks.

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

We'd like to thank you all for your participation. This morning and for your support of Consol Energy. We hope we answered your questions and we look forward to speaking with you on our next earnings call. Thank you.

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

Okay.