CONSOL Energy Inc. Common Stock

Good morning, ladies and gentlemen, and welcome to the CIX Third Quarter 2024 Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, November 5th of 2024. 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 third quarter 2024 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 21E of the Securities Exchange Act of 1934. We do not undertake any obligation of updating any forward-looking statements for future events or otherwise. We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures, in our 2024 third quarter press release, furnished to the SEC on Form 8-K, which is also posted on our website. Additionally, we filed our 10-Q for the quarter-ended September 30, 2024, with the SEC this morning. You can find additional information regarding the company on our website, www.consolenergy.com, which also includes a supplemental slide deck that was posted this morning. On the call with me today are Jimmy Brock, our Chairman and Chief Executive Officer, Mitesh Jakar, our President and Chief Financial Officer, and Bob Braithwaite, our Senior Vice President of Marketing and Sales. In his prepared remarks, Jimmy will highlight our third quarter achievements and strong operational results. Mitesh will then provide an update on our coal markets, financial performance, and our most recent liability management initiative before providing an update on our 2024 outlook. In its closing comments, Jimmy will provide an update on the proposed merger with Arch Resources and lay out our key priorities for the remainder of the year as we prepare to head into 2025. 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, and good morning, everyone. I am very pleased to report that Consol Energy had a very strong financial and operational performance in the third quarter, despite a planned long-law move and a planned summer maintenance shutdown. As we worked to turn the page from the Francis Scott Key Bridge collapse and its effect on our Consol Marine Terminal, the PAMC achieved its highest ever third quarter sales and production tonnage level. Additionally, due in part to the strong production volumes, The PMC achieved its lowest cash cost of coal sold per ton level since the first quarter of 2023. These results are a testament to the resiliency of our operations and desirability of our product. On the operations front, beginning with our safety performance, our Bailey Preparation Plant and Ipman Preparation Plant each had zero employee recordable incidents during the third quarter of 2024. Our coal operations finished the quarter with a total recordable incident rate well below the national average for underground coal mines. Coal production at the Pennsylvania Mining Complex came in at 7.2 million tons in Q3-24 compared to 6.1 million tons in the prior year period. The mines operated well during the quarter and completed the planned longwall move very timely, safely, and efficiently which contributed to the strong production performance compared to Q3-23. Our PMC average cash cost of coal sold per ton for Q3-24 was $35.85 compared to $38.36 in Q3-23, mainly due to improved production tonnage as well as reduced contractor and purchase servicing costs. We finished our last planned long-law move of 2024 in the third quarter for the PMC. Moving on to the Ipman Mining Complex. During the third quarter of 2024, sales from the complex, including third-party tons, were 152,000 tons, compared to 164,000 tons in Q2-24. This slight impairment was due to ongoing equipment delivery delays with a major supplier and adverse geological conditions, both of which limited our production in the quarter. We continued to deal with abnormally long lead times on both new and rebuilt section equipment during Q3-24. However, the first of four miners was received in October, and we currently expect the remaining three to be delivered shortly, possibly by the end of this year. These continuous miner units are expected to increase the overall productivity of the mine. While we waited for these machines, the Ipman mine operated two of its three continuous miner sections as supersections during the third quarter of 2024, and despite being limited in the number of sections we could run, long-term mains development progressed. Toward the end of September, the Ipman mine began retreat mining, which we expect will improve our efficiency and productivity. Furthermore, at the end of October, a deep cut plan was approved by MSHA for two of the three continuous minor sections, which will also improve the overall efficiency of the mine. Moving to the Consol Marine Terminal. Rebounding from the Francis Scott Key Bridge collapse that limited our export capacity for much of the second quarter, the CMT shipped 4.7 million tons during the third quarter of 2024, compared to 4.3 million tons in the prior year quarter. For Q3-24, terminal revenues came in at $23.7 million, and CMT operating cash costs were $6.9 million. Accordingly, CMT adjusted EBITDA finished at $15.9 million, compared to $14.9 million in the prior year period. With that, let me turn the call over to Mattes to provide the marketing and financial updates.