On August 8, 2024, CONSOL Energy Inc (CEIX, Financial) released its 8-K filing reporting financial and operating results for the second quarter ended June 30, 2024. CONSOL Energy Inc is a producer and exporter of high-BTU bituminous coal, owning and operating longwall mining operations and export terminals on the Eastern seaboard. The company's principal activity involves mining, preparation, and marketing of thermal coal, sold to power generators. Its operating segments include the Pennsylvania Mining Complex (PAMC) and CONSOL Marine Terminal (CMT), with maximum revenue generated from the PAMC segment.
Performance Overview
CONSOL Energy Inc (CEIX, Financial) reported a GAAP net income of $58.1 million and GAAP dilutive earnings per share of $1.96 for the second quarter of 2024. This performance surpassed the analyst estimate of $0.94 earnings per share. The company achieved a quarterly adjusted EBITDA of $124.5 million and net cash provided by operating activities of $116.3 million. Total revenue and other income for the quarter amounted to $501.1 million, significantly higher than the estimated $429.90 million.
Operational Challenges and Achievements
Despite facing operational headwinds due to the Francis Scott Key (FSK) Bridge collapse, which limited export capacity, CONSOL Energy Inc (CEIX, Financial) managed to sell 5.8 million tons from the PAMC segment. The CONSOL Marine Terminal (CMT) resumed operations in late May, shipping 2.3 million tons. The Itmann Mining Complex (IMC) sold 164 thousand tons during the quarter. The PAMC segment is near-fully contracted for 2024 and has improved its position to 14.5 million tons for 2025.
“During the second quarter of 2024, the CONSOL team achieved robust financial and sales performances, despite navigating operational headwinds caused by the FSK Bridge collapse in the Port of Baltimore,” said Jimmy Brock, Chairman and Chief Executive Officer of CONSOL Energy Inc.
Financial Highlights
CONSOL Energy Inc (CEIX, Financial) reported the following key financial metrics for the second quarter of 2024:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Coal Revenue (PAMC Segment) | $384.4 million | $521.2 million |
| Operating and Other Costs | $287.7 million | $276.6 million |
| Coal Production | 5.6 million tons | 6.3 million tons |
| Total Tons Sold | 5.8 million tons | 6.4 million tons |
| Average Coal Revenue per Ton Sold | $66.83 | $81.27 |
| Average Cash Cost of Coal Sold per Ton | $39.82 | $36.33 |
| Average Cash Margin per Ton Sold | $27.01 | $44.94 |
Income Statement and Cash Flow Analysis
CONSOL Energy Inc (CEIX, Financial) reported net cash provided by operating activities of $116.3 million, a decrease from $227.6 million in the same period last year. Capital expenditures for the quarter were $55.4 million, compared to $42.3 million in the prior year. The company also repurchased $13 million worth of common stock in April 2024.
Outlook and Guidance
Based on the current contracted position, estimated prices, and production plans, CONSOL Energy Inc (CEIX, Financial) provided the following guidance for the full fiscal year 2024:
- PAMC coal sales volume of 24.5-26.0 million tons
- PAMC average coal revenue per ton sold expectation of $63.50-$66.50
- PAMC average cash cost of coal sold per ton expectation of $37.50-$39.50
- IMC coal sales volume of 700-900 thousand tons
- Total capital expenditures of $165-$190 million
For more detailed financial statements and additional information, investors can refer to the company's 8-K filing and the upcoming Form 10-Q.
Explore the complete 8-K earnings release (here) from CONSOL Energy Inc for further details.
