CONSOL Energy Inc. Common Stock

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 opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Nathan Tucker, Director of Finance and Investor Relations. Please go ahead.

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 section 21E of 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 8K, which is also posted on our website. Additionally, we expect to file our 10K 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.consolidate.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, Mitesh Chakar, our President and Chief Financial Officer, and Bob Braithwaite, 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 operations. The test 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 in which Bob will also participate. With that, let me turn it over to Jimmy.

Thank you, Nate. Good morning, everyone. Consol Energy followed multiple record-setting achievements in 2022 by surpassing many of those same metrics in 2023. With respect to our operations, CEIX achieved record throughput tonnage and revenue as the Consol Marine Terminal and the Pennsylvania Mining Complex achieved record average realized coal revenue per ton sold on an annual basis. From a full-year financial perspective, CEIX achieved record net income, EPS, adjusted EBITDA, and most importantly, record free cash flow generation. 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 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. Our coal operations finished the year with a total recordable incident rate approximately 33% 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 long walls 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 PAMC 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 supplies, maintenance, and contractor labor at our operations. However, our Q4 23 cash cost of coal sold was more than $2 per ton lower compared to Q3 23, mainly due to the incremental production tons in the fourth quarter. On a sequential basis, Q4 23 also benefited from having zero longwall moves. 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 Q124, we expect to have only one longwall move for the remainder of the year, which is planned for the third quarter. Moving on to Ipman. 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 23. This brought our full-year 2023 results for Ipman to 316,000 tons of production and 515,000 tons of Ipman 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 rock and slows mining rates. Furthermore, we continue to be impacted by equipment delivery issues and higher employee turnover at Ipman in Q4-23. Once we have completed our long-term mains development this year, we will operate the mining sections in targeted blocks of coal reserves. This is expected to lead to more efficient mining heights and improved production rates. As such, We expect to increase our sales tonnage in 2024, which is reflected in our guidance for the Ipman Mining Complex. Moving to the Consol Marine Terminal. We achieved a throughput volume of 4.7 million tons during Q4 23 compared to 3.6 million tons in the prior year quarter. Terminal revenues for Q4 came in at 25.4 million and CMT operating cash costs were $6.8 million. 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, let me turn the call over to Mattes to provide the marketing and financial updates.

Thank you, Jimmy, and good morning, everyone. Let me start with an update on the marketing front and our contract in progress. Demand for our product remains 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 during 2023, with a total of 16.2 million tons moving into the export market, which was the highest annual level in our history. During 4Q23, we sold 6.8 million tons of PAMC 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 PAMC volumes were sold into the export markets during the quarter. This brought total PAMC 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 into 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%. Since our last earnings call, our sales team increased our forward sold position at the PAMC by 4.7 million tons. The majority of these tons 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 PAMC call is its ability to sell into many different end-use markets. which gives us significant flexibility to pivot tons between markets depending on demand strength. This portfolio optimization capability has been evident over the last several years. In 2022, when European demand was strong and API tree 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 pivot, 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 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 mode. On the crossover sales front, we shipped 2.6 million PMC tons during the year, which is the highest we have ever achieved. We also shipped nearly a 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 2023. With the commissioning of our fifth long wall at the end of 2009, which has a lower sulfur content that is desirable in the crossover met market and the ramp-up of our Itman 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. 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 tailwinds 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 soar across the United States. 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, anticipates electricity demand to rise approximately 2.5% 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. In Kansas City, Evergy 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 higher utilization of surviving coal plants. Nonetheless, it provides us with confidence that we will continue to have strong demand from our coal domestic customer base for many years to come. For the Ekman 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 Hitman product in the export market. For 2024, we now have 571,000 tons of Hitman coal under contract with a balanced mix of domestic and international business. 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 2023 financial performance, which capped off a very strong year for the company. We finished 4Q23 with net income of 157 million. 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 a bid of $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 towards capital expenditures and $687 million was available as free cash flow. Of the $687 million, 28% was deployed towards debt repayment and 68% to our 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 PAMC, we are expecting our 2024 sales volume to be consistent at the midpoint compared to our 2023 level. We view Our five-long wall complex is having a base production level of 26 million tons 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 our average realized coal revenue per ton sold to be in the $62.50 to $66.50 range, assuming a $105 a ton average API 2 price at the midpoint. Relative to 2023, this range reflects lower commodity pricing, specifically for API 2 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. 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 Ickman mining complex, we are 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 800,000 tons. The lower end captures our current contracted position while the upper end contemplates moving beyond means development quicker and expanding our third-party sales. On the cash cost side, we expect an average cash cost of coal sold per ton range of $120 to $140. The upper end accounts for the possibility of extended means development, persistent 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 $175 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 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 have delayed equipment deliveries and extended lead times, and this has postponed certain planned expenditures. With that, let me turn it back to Jimmy.

Thank you, Mitesh. Let me now provide an update on our shareholder return program. which has been one of our key capital allocation priorities in 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 weighted average price of approximately $100 per share. Since restarting our share repurchase program in late 2022, we've retired 5.7 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. 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 book and growing markets. This will be made possible through our high quality coal, as well as our ownership in the Consol Marine Terminal. Second, We expect to leverage our strong contracted book and customer relationships to continue to layer in 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 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 generation. 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, Consolid 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. Fourth, we are committed to scaling up the Ipman mine to full run rate production. While staffing challenges and extended mains development timing hampered the ramp 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 for our Ipman product in the domestic and export markets. I remain very excited about Ipman's potential and the revenue diversification that having a low vol MET product in our portfolio will bring. Fifth, 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 best use of our capital and prioritize the highest rate of return. 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 shift. I want to personally thank all of our employees for their dedication and hard work, which drove these exceptional results safely and compliantly. I am extremely proud of this team and their execution in 2023. 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 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 a 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. 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 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 1 on your touchtone phone. If you're using a speakerphone, 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 2. Our first question comes from Lucas Pipes with B. Riley Securities. Please go ahead.

Thank you very much, operator, and good morning, everyone. My first question is on the 2024 outlook, and I wondered on SG&A, we saw a nice reduction in 2023 year-on-year versus 22. What's your outlook for 24 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, Yes, you noted it correctly. Our SG&A did come down compared to last year. We expect some more decline this year as some of the legacy stock-based compensation 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 operations side and other parts of our business. So you should see some tailwinds on the SG&A side this year as well.

And on Baltimore?

Sure. On your Baltimore question, like our 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 into 2023 from domestic to export. We could expect a similar shift this year as well. It all depends on where the pricing is. As we have said earlier that you could potentially see us optimizing our portfolio based on the highest arbitrage 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 80-85% of throughput through Baltimore. Our third party contracting is still strong. Even though the starting point is around, let's call it 17 million tons, I wouldn't be surprised if we end up doing more.

But Lucas, one of the really important things about the terminal is the flexibility and optionality it brings to us 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 the 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 over to my second question. I may come back to this later. If I heard you right in the prepared remarks, the midpoint of your pricing guide kind of underwrites $105 API 2 price and a few questions on that. Are you at the floor of your committed export tons at that price? or are you at the floor at today's spot price for API 2? And then how should we think about kind of a sensitivity of your book to further declines in API 2 given the floor dynamics? How should we think about the sensitivity to the upside on API 2? Thank you very much.

Lucas, about 6.5 million tons of our book for next year, or this year, sorry, 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 low to mid-90s. 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. Our current sensitivity on the upside for every dollar changes about 18 cents across our entire portfolio. So if API 2 prices were to come back a little bit, which again, I think there is still opportunity. I could see a pathway for that, especially with the reduced LNG coming out of the US. 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. Two quick follow-ups. In terms of the 22 million tons that are committed for 24, 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 of your remaining open tonnage is going into the crossover market? And how should we think about the net backs on that?

About 13 million tons 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 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. The good news for us is we did see some EMA in the month of January. The cold snap that we saw mid to late January certainly helped us. And we originally modeled in basically no EMA in our plan going forward, but we did see some in the month of January. So again, good news there. The balance we would expect to sell exports, so 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 to 3 million tons of our open position, so 4 million tons of open position to get to our midpoint. Two to three 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, 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 coal into Asia, you 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 for now. Thank you.

Thank you, Lucas.

The next question comes from Nathan Martin with The Benchmark Company. Please go ahead.

Hey, thanks, operator. Good morning, guys. Congrats on a strong finish to the year, and thanks for taking my questions.

Thanks, Nate. Thanks, Nate.

Bob, let me stick with you just for a minute. 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 export. All our index linked to date and all do have ceilings and floors. We modeled 2025. We did also model an $105 API 2 price, and sitting here today, we're mid-60s across the portfolio for the sold tons.

Okay. Got it.

Very helpful there. Appreciate that. Um, maybe, maybe shifting gears over to ITMAN, um, you know, got some guidance there, sales, 600, 800,000 tons, cash costs per ton, 120 to 140. Um, let's start with the cost again, you know, higher than your peers. Obviously you mentioned you're still ramping things up. Um, so do you think there will be opportunities to improve on that cost range? Um, you know, once you get up to, uh, you know, more of a traditional run rate. And then maybe as it relates to sales, in that 600,000 to 800,000 ton number, does that include third-party sales? Maybe you can remind us of, you know, throughput capacity at the terminal, excuse me, at the prep plant there as well. And then any breakdown, I think you called out 571,000 contracted tons for it. And any breakdown would be helpful, you know, domestic versus export and kind of where you expect to sell the remainder of those tons.

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 mains development down to there, we're having to cut additional rock for ventilation purposes for long term, which slows down the mining rates a little bit. I think the cost we've seen thus far at Ipman is 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 there, and we think 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 in the equipment. Those equipment delays that we've had is not allowing us to run as efficient as we would like to, whereas if we have 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, and we think that as we go forward, that's going to be helpful as well. Very experienced in low-seam mining, and those things should help us there. Getting back to the... potential of running, ramping up to full speed. I think as we're 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. 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. 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 hop that we plan for, mining in seam, which helps the cost at the prep plant as well. The throughput volume at the plant, it's a 600 ton 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. And we're located in a position down there to 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 upsized plant in.

Yeah, and then on the marketing side, Nate, you know, it's very exciting. We've got a lot of interest for the Edmund product. As we mentioned, we 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 it just goes to show the attractiveness of the product and the quality of the product. When you look at the breakdown so far, the $571,000, 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 U.S. East Coast Low Vol 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 571, that blended average?

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

So with the midpoint of that range, 700,000 tons, what was the price range again, I'm sorry? 170 to 180 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 domestic. And then on the export side of the house, it's probably a similar, based on U.S. low vol, maybe a discount or no discount. Maybe you can get some color there, and then depending on the market you go into.

Yeah, I mean, the discount's very minimal. 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, it's, 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 Australia and U.S. But, again, both are providing really nice realizations. As you probably remember, we talked about the domestic book that we – a couple 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 calls with what Jimmy mentioned to try to get the plant to capacity, that will only uplift that overall pricing or average pricing for the year. So again, very excited about that opportunity. We're working daily to get more volume through that plant 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 PAMC shipments, you guys mentioned any prepared remarks. I think it was three long wall moves in the first quarter, and then maybe one additional in the third quarter. Maybe you could give us an idea 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 one Q volumes could be pressured a bit from a

the three long wall moves so any color there would be great as well yeah well on the on the cadence of the long wall moves we do have three in the first quarter here one is ongoing now that we just started but those long wall moves are you know they don't bother me it's it's a sign of progress you know as we retreat those panels out we move to the next one however it will shift around you know our quarter revenues a little bit obviously If you look at the three longwall moves, I use, you know, somewhere around 20,000 tons per longwall per day. So if you have three of those and we have three moves, let's say our scheduled PO move days are nine to 10 days. So you can see the math there, whereas we could be, you know, slightly short of 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 when we finish these three long haul moves here in Q1, we only have one more planned, and it's in the third quarter. So it will give us an opportunity, you know, to run strong after we get out of this first quarter here from a toning standpoint. And then, of course, the market will be the market. We'll send those tons to wherever we market them.

So second and fourth quarter will be our better quarters this year, Nate, compared to our history where first is typically the strongest. And same thing with the production, you know, cost goes the other way. So lower production, higher cost. Higher production, lower cost. So that will also flow through your models, I'm assuming.

Got it. Thanks, Jimmy. Mitesh, I'll leave it there, guys. As always, appreciate the time and information, and best of luck in 24. Thank you.

Thanks. 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 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.