CONSOL Energy Inc. (CEIX) Bundle
A Brief History of CONSOL Energy
Company Overview
CONSOL Energy Inc. is a leading coal and natural gas producer in the United States. As of September 30, 2024, the company operates primarily through two segments: the Pennsylvania Mining Complex (PAMC) and the CONSOL Marine Terminal.
Financial Performance
For the nine months ended September 30, 2024, CONSOL Energy reported net income of $255.6 million, a decrease from $498.8 million in the same period of 2023. The company's adjusted EBITDA for the same period was $481.7 million, down from $784.8 million year-over-year.
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Variance |
|---|---|---|---|
| Net Income | $255.6 million | $498.8 million | $(243.2 million) |
| Adjusted EBITDA | $481.7 million | $784.8 million | $(303.1 million) |
| Coal Revenue - PAMC | $1,240 million | $1,516 million | $(276 million) |
| Terminal Revenue | $60 million | $81 million | $(21 million) |
Production and Sales Data
In the nine months ending September 30, 2024, CONSOL Energy produced 19.3 million tons of coal, a slight decrease from 19.5 million tons in 2023. Total tons sold amounted to 18.7 million tons, down from 19.2 million tons year-over-year.
| Production Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Variance |
|---|---|---|---|
| Total Tons Produced | 19.3 million | 19.5 million | $(0.2 million) |
| Total Tons Sold | 18.7 million | 19.2 million | $(0.5 million) |
Operational Challenges
During the reporting period, operational challenges arose from the collapse of the Francis Scott Key Bridge on March 26, 2024, which restricted vessel access and export capabilities at the CONSOL Marine Terminal. This event significantly impacted throughput volumes, which were 11.5 million tons for the nine months ended September 30, 2024, compared to 14.2 million tons in the prior year.
Cost and Revenue Analysis
The average coal revenue per ton sold decreased to $66.39 in 2024 from $78.85 in 2023, reflecting a drop of $12.46. The average cash cost of coal sold per ton increased to $38.43 from $36.03, which resulted in a reduced cash margin per ton sold of $27.96, down from $42.82.
| Cost Analysis Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Variance |
|---|---|---|---|
| Average Coal Revenue per Ton Sold | $66.39 | $78.85 | $(12.46) |
| Average Cash Cost of Coal Sold per Ton | $38.43 | $36.03 | $(2.40) |
| Average Cash Margin per Ton Sold | $27.96 | $42.82 | $(14.86) |
Liquidity Position
As of September 30, 2024, CONSOL Energy had cash and cash equivalents totaling $331.7 million, up from $167.6 million in the previous year. The company's liquidity position is supported by a revolving credit facility with no borrowings outstanding and $231.1 million of unused capacity.
Market Outlook
Looking ahead, the company aims to enhance operational efficiency and capitalize on market opportunities while navigating the challenges posed by fluctuating commodity prices and regulatory environments.
A Who Owns CONSOL Energy Inc. (CEIX)
Major Shareholders
As of September 30, 2024, the ownership structure of CONSOL Energy Inc. (CEIX) is comprised of various institutional investors, insiders, and retail shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 12.4% |
| Institutional Investor | BlackRock, Inc. | 10.2% |
| Institutional Investor | State Street Corporation | 8.7% |
| Insider | J. Brett Harvey (Former CEO) | 3.1% |
| Insider | Other Executives and Directors | 2.5% |
| Retail Investors | Various | 63.1% |
Institutional Ownership
Institutional investors play a significant role in the ownership of CONSOL Energy. As of September 30, 2024, the total institutional ownership was approximately 31.3% of the outstanding shares. This figure indicates a robust interest from institutional shareholders, reflecting confidence in the company's financial health and growth prospects.
Insider Ownership
Insider ownership represents a critical aspect of the company's governance structure. As of September 30, 2024, insiders held about 5.6% of the total shares. This includes shares held by executives and board members, which can influence company strategy and decision-making.
Recent Stock Performance and Share Repurchases
During the nine months ended September 30, 2024, CONSOL Energy repurchased approximately 747,351 shares at an average price of $89.49 per share. This activity reflects the company's strategy to return capital to shareholders and manage its capital structure effectively.
Dividends
On November 5, 2024, CONSOL Energy announced a dividend of $0.25 per share, with an aggregate amount of approximately $7 million, payable on November 26, 2024, to stockholders of record as of November 15, 2024. This dividend declaration underlines the company's commitment to providing a return to its shareholders.
Market Capitalization and Stock Trading
As of September 30, 2024, CONSOL Energy's market capitalization was approximately $2.6 billion. The average trading volume for the stock was around 300,000 shares per day, indicating a healthy level of liquidity in the market.
Conclusion
The ownership structure of CONSOL Energy Inc. reflects a diverse mix of institutional and retail investors, alongside significant insider ownership. The company's strategic decisions, including share repurchases and dividend payouts, demonstrate a focus on enhancing shareholder value.
CONSOL Energy Inc. (CEIX) Mission Statement
Mission Statement Overview
As of 2024, CONSOL Energy Inc. is committed to being a leading, low-cost producer of high-quality bituminous coal. The company focuses on the extraction and preparation of coal in the Appalachian Basin, aiming to deliver large volumes of coal at competitive prices while prioritizing operational efficiency and sustainability.
Core Values
- Safety: Prioritizing the health and safety of employees and stakeholders.
- Integrity: Conducting business with honesty and transparency.
- Excellence: Striving for operational excellence in all aspects of the business.
- Innovation: Investing in technology and practices that enhance efficiency and sustainability.
- Responsibility: Committing to environmental stewardship and community engagement.
Financial Performance (Nine Months Ended September 30, 2024)
During the first nine months of 2024, CONSOL Energy reported significant financial metrics that reflect its operational effectiveness and strategic focus:
| Metric | Value |
|---|---|
| Total Tons Produced (in millions) | 19.3 |
| Total Tons Sold (in millions) | 18.7 |
| Average Coal Revenue per Ton Sold | $66.39 |
| Average Cash Cost of Coal Sold per Ton | $38.43 |
| Average Cash Margin per Ton Sold | $27.96 |
| Adjusted EBITDA (in thousands) | $481,685 |
| Net Income (in thousands) | $255,584 |
| Total Revenue from Contracts with Customers (in thousands) | $1,590,841 |
Operational Highlights
CONSOL Energy's operational performance reflects its strategic initiatives and market conditions:
- Coal production decreased slightly by 224,000 tons compared to the same period in 2023.
- Adjusted EBITDA decreased by $303,134, primarily due to a decrease in average coal revenue per ton sold and an increase in the average cash cost of coal sold.
- Despite challenges, the company successfully placed 10.7 million tons of coal into the export market, accounting for 57% of total tons sold.
Market Positioning
CONSOL Energy's positioning in the coal market is supported by its strategic focus on:
- High-quality bituminous coal production from the Appalachian Basin.
- Strong export capabilities, particularly in response to global market demands.
- Resilience amidst market fluctuations, adapting operational strategies to maintain profitability.
Environmental and Sustainability Commitments
CONSOL Energy is dedicated to minimizing its environmental impact through:
- Investing in technology that reduces emissions and enhances energy efficiency.
- Engagement with local communities to promote sustainable practices.
- Compliance with regulatory standards to ensure responsible mining operations.
Recent Developments
In August 2024, CONSOL Energy announced a merger agreement with Arch Resources, Inc. This strategic move aims to create a more robust entity capable of navigating the evolving energy landscape.
Conclusion
Overall, CONSOL Energy Inc. continues to adapt and thrive in a challenging market, driven by its mission to deliver high-quality coal while maintaining a strong commitment to safety, integrity, and sustainability.
How CONSOL Energy Inc. (CEIX) Works
Company Overview
CONSOL Energy Inc. (CEIX) operates primarily in the coal industry, focusing on the mining, preparation, and marketing of bituminous coal. The company has two main reportable segments: the Pennsylvania Mining Complex (PAMC) and the CONSOL Marine Terminal, which provides coal export services.
Financial Performance
As of September 30, 2024, CONSOL Energy reported the following financial results for the nine-month period:
| Financial Metric | 2024 (in millions) | 2023 (in millions) | Variance |
|---|---|---|---|
| Total Coal Revenue - PAMC | $1,240 | $1,516 | $(276) |
| Coal Revenue - Itmann Mining Complex | $80 | $58 | $22 |
| Terminal Revenue | $60 | $81 | $(21) |
| Freight Revenue | $199 | $217 | $(18) |
| Total Revenue and Other Income | $1,641 | $1,919 | $(278) |
Coal Production and Sales
For the nine months ended September 30, 2024, the total coal production from the PAMC was 19.3 million tons, a slight decrease from 19.5 million tons in the same period of 2023.
| Mine | 2024 Production (in thousands) | 2023 Production (in thousands) | Variance |
|---|---|---|---|
| Bailey | 8,073 | 8,171 | (98) |
| Enlow Fork | 7,184 | 6,936 | 248 |
| Harvey | 4,024 | 4,398 | (374) |
| Total | 19,281 | 19,505 | (224) |
Operational Metrics
For the three months ended September 30, 2024, the following operational metrics were reported:
| Metric | 2024 | 2023 | Variance |
|---|---|---|---|
| Total Tons Produced (in millions) | 7.2 | 6.1 | 1.1 |
| Total Tons Sold (in millions) | 6.8 | 6.1 | 0.7 |
| Average Coal Revenue per Ton Sold | $64.28 | $70.34 | $(6.06) |
| Average Cash Cost of Coal Sold per Ton | $35.85 | $38.36 | $(2.51) |
| Adjusted EBITDA (in thousands) | $173,906 | $183,790 | $(9,884) |
CONSOL Marine Terminal Analysis
The CONSOL Marine Terminal experienced throughput volumes of 11.5 million tons for the nine months ended September 30, 2024, down from 14.2 million tons in the same period of 2023. Terminal revenues were $60 million in 2024 compared to $81 million in 2023.
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, CONSOL Energy reported cash flows from operating activities as follows:
| Cash Flow Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Income | $255,584 | $498,825 |
| Depreciation, Depletion and Amortization | $165,173 | $182,871 |
| Total Cash Flows from Operating Activities | $[Total Cash Flow] | $[Total Cash Flow] |
Debt and Liquidity
As of September 30, 2024, the company had no outstanding borrowings under its securitization facility, with available borrowing capacity of $2,488,000. The revolving credit facility was amended to increase capacity to $355 million.
Conclusion
In 2024, CONSOL Energy continued its operations amidst challenges, including the effects of the Francis Scott Key Bridge collapse on export capabilities. The company adjusted its operational strategies to meet market demands while managing financial performance effectively.
How CONSOL Energy Inc. (CEIX) Makes Money
Revenue Streams
Revenue Streams
CONSOL Energy Inc. generates revenue primarily through coal production and terminal services. The company's revenue can be categorized into various segments:
- Coal Revenue from the Pennsylvania Mining Complex (PAMC)
- Coal Revenue from the Itmann Mining Complex
- Terminal Revenue from the CONSOL Marine Terminal
- Freight Revenue
- Miscellaneous Other Income
Coal Revenue
For the nine months ended September 30, 2024, CONSOL’s total coal revenue was $1,319.7 million, compared to $1,574.1 million for the same period in 2023.
| Revenue Source | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Coal Revenue - PAMC | $1,240 | $1,516 |
| Coal Revenue - Itmann Mining Complex | $80 | $58 |
| Total Coal Revenue | $1,319.7 | $1,574.1 |
Market Segmentation
Coal revenue is further segmented by market, with the following distributions:
| Market | 2024 Revenue (in millions) | 2023 Revenue (in millions) |
|---|---|---|
| Power Generation | $671.2 | $747.3 |
| Industrial | $434.2 | $590.2 |
| Metallurgical | $215.4 | $236.6 |
Terminal Revenue
Terminal revenue consists of fees charged for coal loading at the CONSOL Marine Terminal. For the nine months ended September 30, 2024, terminal revenue was $60.3 million, down from $81 million in 2023.
Freight Revenue
Freight revenue, which is the amount billed to customers for transportation costs incurred, was $198.9 million for the nine months ended September 30, 2024, a decrease from $217.4 million in the previous year.
Operating Costs
Operating costs for the nine months ended September 30, 2024, were $885 million, compared to $814 million for the same period in 2023.
| Cost Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Operating Costs - PAMC | $718 | $691 |
| Operating Costs - Itmann Mining Complex | $103 | $71 |
| Operating Costs - Terminal | $20 | $20 |
| Employee-Related Legacy Liability Expense | $17 | $9 |
| Coal Reserve Holding Costs | $5 | $8 |
Adjusted EBITDA
For the nine months ended September 30, 2024, CONSOL reported adjusted EBITDA of $485.5 million, a significant decrease from $807.8 million in 2023.
Net Income
Net income for the nine months ended September 30, 2024, was $255.6 million, compared to $498.8 million for the same period in 2023.
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, totaled $39.4 million, compared to $117.7 million in 2023.
Liquidity and Capital Resources
As of September 30, 2024, CONSOL Energy's liquidity sources included cash and cash equivalents of $331.7 million and short-term investments of $84.3 million. The company had no outstanding borrowings under its revolving credit facility.
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Resources:
- CONSOL Energy Inc. (CEIX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CONSOL Energy Inc. (CEIX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CONSOL Energy Inc. (CEIX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.