CONSOL Energy Inc. Investor Presentation August 2022
Investment Thesis 1 Committed to Sustainability and ESG With Clearly Defined Goals for Greenhouse Gas Reductions 2 World Class Assets Remain Competitive Through All Parts of the Cycle 3 Near-Term Opportunistic Growth Strategy…
Sustainability is Integral to Our Business Proactively manage risks and opportunities related to those ESG aspects of importance to our CONSOL is stakeholders Deploying Develop synergies between sustainability, technology, and…
Forward Progress Sustainability Initiative: A Natural Progression Upon becoming an independent company in 2017, we prioritized ESG and have since developed our cross-functional Forward Progress sustainability initiative to build on that…
Recent Steps to Enhance Financial Flexibility 1 Continue to aggressively reduce our outstanding gross debt levels Clear Path Potential sales volume improvement in 2023 through an additional to Further 2 longwall at the PAMC and…
Financial Securities Reflect Improvement in Underlying Financial Performance Performance of Our Securities Continue to Steadily Improve 12/31/2020 12/31/2021 758% 38% 19% 3/31/2022 Current 8 65 61.88 105 110 0.25 104 104 0.4 7…
Pennsylvania Mining Complex Overview Three highly productive, well-capitalized underground coal mines. 4-5 longwalls and 1317 continuous miner sections. Largest central preparation plant in the United States. PA Mining CONSOL…
CONSOL Marine Terminal Overview Overview Coal export terminal strategically located in Baltimore, Maryland. 15.0 million tons per year throughput capacity. 1.1 million tons coal storage yard capacity. Only East Coast coal export…
Itmann Accelerates Growth/Diversification Location Wyoming County, WV Estimated capacity: 900,000+ tons/year (3 CM sections) Capacity 3rd party processing capacity of 750K to 1MM product tons 20+ million tons life-of-mine…
1st Quartile Cost Position in NAPP and Globally 1st quartile cost position in NAPP (2019)(1) (Cash costs per ton) 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 60 50 40 30 20 10 0 10 20 30 40 50 60 70 Cumulative…
LNG Remains Short Supplied Supporting Export Coal Demand LNG Demand Growth (2021-2025)1 LNG Supply Growth (2021-2025)2 +97MT +52MT of Incremental Incremental 35 30 Demand by 2025 Supply by 2025 30 25 25 20 20 MT MT…
Seaborne Thermal Coal Demand Expected to Remain Steady for the Foreseeable Future Global coal power plant build outs under construction by year Global coal power plant build outs by country 70 China India Indonesia Vietnam Other Asia…
Delayed Coal Plant Closure Due to Grid Reliability Concerns Utilities Delay Closing Coal Plants -6/23/2022 U.S. utility NiSource to delay coal plant shutdown due to solar market freeze -5/5/2022 Coal plants asked to stay…
Financial Priorities Capitalize on market strength to continue to generate strong free cash flow. Recent amendment and extension of the revolving credit and accounts receivable securitization Strong free cash flow and liquidity…
CEIX Debt/Equity Repurchases CEIX Second Lien and Share Repurchase Program Authorization (1) Cumulative Repurchases Remaining Availability Current availability sits at 381MM. 600 Excludes finance lease and asset-backed financing…
CEIX Balance Sheet Legacy Liabilities Significant legacy liability reductions over the past three years Legacy Liabilities Balance Cash Servicing The OPEB liability decreased 60 million from 2020 to 2021. (mm) Sheet Value Cost LTM…
2Q22 Results and Full Year 2022 Guidance For the Quarter Ended Guidance Earnings Results June 30, June 30, 2022(3) 2022 2021 Change Pennsylvania Mining Complex Volumes (MM Tons) Production 6.2 5.9 0.3 Sales 6.2 5.9 0.3 24.0-25.0…
Leverage and Liquidity Analysis CEIX Financial Metrics (MM except ratios) LTM 6/30/2022 Leverage Bank EBITDA(1) 537 Consolidated Net Debt(1) 245 Net Leverage Ratio(1) 0.46x Liquidity (as of 6/30/2022) Cash and Cash Equivalents…
Appendix 21
Experienced Management with Enhanced Focus on Safety, Compliance and Financial Discipline CEIXs management and operating teams have a long history in the coal industry. Key performance results Proven track record of successfully…
Adjusted EBITDA & Free Cash Flow Reconciliations Adjusted EBITDA Reconciliation (MM) 2Q22 2Q21 Net Income 126.3 4.2 Plus: Interest Expense, net 13.1 16.2 Interest Income (1.4) (0.8) Income Tax Expense (Benefit) 23.2 (8.9)…
Net Leverage, Bank EBITDA and Consolidated Net Debt Reconciliations Net Leverage Ratio Reconciliation Bank Method (LTM) (MM except ratios) 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 3Q20 2Q20 1Q20 4Q19 3Q19 2Q19 1Q19 Net Income (Loss) 125 3 34…
Average Realized Coal Revenue per Ton Sold, Average Margin per Ton Sold and Average Cash Margin per Ton Sold Reconciliations (MM except per ton data) 2Q22 2Q21 Total Coal Revenue (PAMC Segment) 519 258 Add: Settlements of Commodity…
Average Cash Cost of Coal Sold Per Ton Reconciliation (MM except per ton data) 2Q22 2Q21 Total Costs and Expenses 395 292 Less: Freight Expense (50) (26) Less: General and Administrative Costs (27) (22) Less: (Loss) Gain on Debt…
CONSOL Marine Terminal Adjusted EBITDA and CMT Operating Cash Costs Reconciliations CMT EBITDA Reconciliation (MM) 2Q22 2Q21 Net Income 12.4 8.2 Plus: Interest Expense, net 1.5 1.5 Depreciation, Depletion and Amortization 1.1…
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