CONSOL Energy Inc

Previous wording

On March 26, 2024, a container ship struck a support column of the Francis Scott Key Bridge in Baltimore, Maryland causing it to collapse. The United States Coast Guard (the “Coast Guard”) has established a safety zone for all navigable waters of the Chesapeake Bay within a 2,000-yard radius around the Francis Scott Key Bridge. As a result, vessel access in and out of the CONSOL Marine Terminal, which is located in the Port of Baltimore, has been suspended. We continue to work and communicate closely with the Coast Guard, transportation authorities and city officials to safely restore vessel access to and resume normal operations at our CONSOL Marine Terminal. While not definitive, the latest information provided to the Company by agency officials suggests the permanent 700-foot wide, 50-foot draft shipping lane may reopen and restore full vessel access by the end of May 2024. There can be no guarantee that the draft shipping lane will reopen along this anticipated timeline or that full vessel access will be resumed immediately upon reopening. Our team is working diligently to minimize the disruption to our business and address direct and indirect impacts to the Company and its operations, including moving tons through available terminals on the East Coast of the United States, accelerating domestic shipments and managing ongoing expenditures. Our ability to ship coal to our customers from the CONSOL Marine Terminal at this time has temporarily negatively impacted our business, financial condition and results of operations and will continue to do so until such time as shipping access to the CONSOL Marine Terminal has been fully restored.

Current wording

On March 26, 2024, a container ship struck a support column of the Francis Scott Key Bridge in Baltimore, Maryland causing it to collapse. The United States Coast Guard established a safety zone for all navigable waters of the Chesapeake Bay within a 2,000-yard radius around the Francis Scott Key Bridge. As a result, vessel access in and out of the CONSOL Marine Terminal, which is located in the Port of Baltimore, was suspended. During this time, our team worked diligently to minimize the disruption to our business and address direct and indirect impacts to the Company and its operations, including moving coal through an alternative port on the East Coast of the United States, accelerating domestic shipments and managing ongoing expenditures. Our inability to ship coal to our customers from the CONSOL Marine Terminal temporarily negatively impacted our business, financial condition and results of operations.

Previous wording

These low-cost assets and the diverse markets they serve provide us opportunities to generate cash across a wide variety of demand and pricing scenarios. The three mines at the PAMC operate up to five longwalls, and the production from all three mines is processed at a single, centralized preparation plant, which is connected via conveyor belts to each mine. The Central Preparation Plant, which can clean and process up to 9,000 raw tons of coal per hour, provides economies of scale while also maintaining the ability to segregate and blend coal based on quality. This infrastructure enables us to tailor our production levels and quality specifications to meet market demands. It also results in a highly productive, low-cost operation compared to other NAPP coal mines, in which the PAMC averaged 7.50 tons of coal production per employee hour in 2022 and 2023. We believe our substantial capital investment in the PAMC will enable us to maintain high production volumes, low operating costs and a strong safety and environmental compliance record, which we believe are key to supporting stable financial performance and cash flows throughout business and commodity price cycles.

Current wording

These low-cost assets and the diverse markets they serve provide us opportunities to generate cash across a wide variety of demand and pricing scenarios. The three mines at the PAMC operate up to five longwalls, and the production from all three mines is processed at a single, centralized preparation plant, which is connected via conveyor belts to each mine. The Central Preparation Plant, which can clean and process up to 9,000 raw tons of coal per hour, provides economies of scale while also maintaining the ability to segregate and blend coal based on quality. This infrastructure enables us to tailor our production levels and quality specifications to meet market demands. It also results in a highly productive, low-cost operation compared to other NAPP coal mines, with the PAMC averaging 7.50 tons of coal production per employee hour in 2022 and 2023. We believe our substantial capital investment in the PAMC will enable us to maintain high production volumes, low operating costs and a strong safety and environmental compliance record, which we believe are key to supporting stable financial performance and cash flows throughout business and commodity price cycles.

Previous wording

On a consolidated basis, coal revenue for the three months ended March 31, 2024 was $448 million, which consisted of $416 million from the Pennsylvania Mining Complex and $32 million from the Itmann Mining Complex. The $448 million of coal revenue was sold into the following markets: $226 million into power generation, $153 million into industrial, and $69 million into metallurgical. The Company had consolidated coal revenue of $583 million for the three months ended March 31, 2023, which consisted of $563 million from the Pennsylvania Mining Complex and $20 million from the Itmann Mining Complex. The $583 million of coal revenue was sold into the following markets: $300 million into power generation, $192 million into industrial, and $91 million into metallurgical. See “Operational Performance” for further information about segment results.

Current wording

On a consolidated basis, coal revenue for the three months ended June 30, 2024 was $409 million, which consisted of $384 million from the Pennsylvania Mining Complex and $25 million from the Itmann Mining Complex. The $409 million of coal revenue was sold into the following markets: $219 million into power generation, $130 million into industrial, and $60 million into metallurgical. The Company had consolidated coal revenue of $541 million for the three months ended June 30, 2023, which consisted of $521 million from the Pennsylvania Mining Complex and $20 million from the Itmann Mining Complex. The $541 million of coal revenue was sold into the following markets: $241 million into power generation, $217 million into industrial, and $83 million into metallurgical. See “Operational Performance” for further information about segment results.

Previous wording

The Company’s Terminal revenue consists of fees charged for coal loaded at the CONSOL Marine Terminal, which is located in the Port of Baltimore, Maryland, and provides access to international coal markets. Terminal revenues are generated from providing transloading services from rail to vessel or barge, temporary storage or stockpile facilities, as well as blending, weighing, and sampling. Terminal revenues were $25 million for the three months ended March 31, 2024, compared to $27 million for the three months ended March 31, 2023. See “Operational Performance - CONSOL Marine Terminal Analysis” for further information about segment results.

Current wording

The Company’s Terminal revenue consists of fees charged for coal loaded at the CONSOL Marine Terminal, which is located in the Port of Baltimore, Maryland, and provides access to international coal markets. Terminal revenues are generated from providing transloading services from rail to vessel or barge, temporary storage or stockpile facilities, as well as blending, weighing, and sampling. Terminal revenues were $12 million for the three months ended June 30, 2024, compared to $31 million for the three months ended June 30, 2023. See “Operational Performance - CONSOL Marine Terminal Analysis” for further information about segment results.

Previous wording

The Company recognizes freight revenue as the amount billed to customers for transportation costs incurred. This revenue is based on the weight of coal shipped, negotiated freight rates and method of transportation, primarily rail, used by the customers to which the Company contractually provides transportation services to move its coal from the mine to the ultimate sales point. Freight revenue is completely offset by freight expense. Freight revenue and freight expense were both $70 million for the three months ended March 31, 2024, compared to $68 million for the three months ended March 31, 2023.

Current wording

The Company recognizes freight revenue as the amount billed to customers for transportation costs incurred. This revenue is based on the weight of coal shipped, negotiated freight rates and method of transportation, primarily rail, used by the customers to which the Company contractually provides transportation services to move its coal from the mine to the ultimate sales point. Freight revenue is completely offset by freight expense. Freight revenue and freight expense were both $66 million for the three months ended June 30, 2024, compared to $82 million for the three months ended June 30, 2023.

Previous wording

Miscellaneous other income was $16 million for the three months ended March 31, 2024, compared to $5 million for the three months ended March 31, 2023. The change is due to the following items:

Current wording

Miscellaneous other income was $13 million for the three months ended June 30, 2024, compared to $7 million for the three months ended June 30, 2023. The change is due to the following items:

Previous wording

Carbon products and materials revenue is generated from businesses led by CONSOL Innovations LLC, our wholly-owned subsidiary.

Current wording

Carbon products and materials revenue increased due to additional investments in coal-to-product businesses led by CONSOL Innovations LLC, our wholly-owned subsidiary.

Previous wording

On a consolidated basis, operating and other costs were $293 million for the three months ended March 31, 2024, compared to $261 million for the three months ended March 31, 2023. Operating and other costs increased in the period-to-period comparison due to the following items:

Current wording

On a consolidated basis, operating and other costs were $288 million for the three months ended June 30, 2024, compared to $277 million for the three months ended June 30, 2023. Operating and other costs increased in the period-to-period comparison due to the following items:

Previous wording

Operating costs for the Itmann Mining Complex primarily consist of costs related to produced tons sold and costs incurred to purchase third-party metallurgical coal to blend with Itmann coal. Operating costs - Itmann Mining Complex include items such as direct operating costs, royalties and production taxes and direct administration costs. The $12 million increase in operating costs - Itmann Mining Complex was primarily due to an increase in the volume of produced and purchased coal as the operations continued to ramp up toward full run-rate production.

Current wording

Operating costs for the Itmann Mining Complex primarily consist of costs related to produced tons sold and costs incurred to purchase third-party metallurgical coal to blend with Itmann coal. Operating costs - Itmann Mining Complex include items such as direct operating costs, royalties and production taxes and direct administration costs. The $8 million increase in operating costs - Itmann Mining Complex was primarily due to an increase in the volume of produced and purchased coal as the operations continued to ramp up toward full run-rate production.

Previous wording

Operating costs - Terminal primarily consist of costs related to throughput tons at the CONSOL Marine Terminal, which increased $1 million in the period-to-period comparison. See “Operational Performance - CONSOL Marine Terminal Analysis” for further information on segment operating costs.

Current wording

Operating costs - Terminal primarily consist of costs related to throughput tons at the CONSOL Marine Terminal, which decreased $1 million in the period-to-period comparison. Despite reduced throughput activity due to restricted access to the CONSOL Marine Terminal during the first half of the current quarter, the team accelerated its annual summer maintenance during this time to allow for the ability to load and ship vessels during the railroads' and mining operations' planned summer shutdown period. See “Operational Performance - CONSOL Marine Terminal Analysis” for further information on segment operating costs.

Previous wording

Other costs consist of items that are not related to the Company's mining or terminal operations. Other costs decreased $4 million in the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The decrease was primarily attributable to fewer expenses incurred in the current quarter across various categories, none of which were individually material.

Current wording

Other costs consist of items that are not related to the Company's mining or terminal operations. Other costs increased $5 million in the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The increase was primarily attributable to $2 million of additional costs related to new investments in businesses led by CONSOL Innovations LLC, particularly the production of composite tools used in the aerospace industry, as well as other expenses incurred in the current quarter across various categories, none of which were individually material.

Previous wording

On a consolidated basis, depreciation, depletion and amortization costs were $57 million for the three months ended March 31, 2024, compared to $60 million for the three months ended March 31, 2023. The $3 million decrease was due to the timing of assets placed in service and certain assets becoming fully depreciated during 2023.

Current wording

On a consolidated basis, depreciation, depletion and amortization costs were $55 million for the three months ended June 30, 2024, compared to $65 million for the three months ended June 30, 2023. The $10 million decrease was primarily due to additional assets becoming fully-depreciated, lower units-of-production depreciation expense from reduced tonnage, and a decrease in the Company's asset retirement obligation expense in the period-to-period comparison.

Previous wording

On a consolidated basis, general and administrative costs were $21 million for the three months ended March 31, 2024, compared to $17 million for the three months ended March 31, 2023. The $4 million increase in the period-to-period comparison was primarily related to increased expense associated with the Company's “Not So Fast” public awareness campaign and expense incurred under the Company's short-term incentive compensation plan during the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Current wording

On a consolidated basis, general and administrative costs were $21 million for the three months ended June 30, 2024, compared to $25 million for the three months ended June 30, 2023. The $4 million decrease in the period-to-period comparison was primarily related to decreased expense under the long-term incentive compensation plan incurred in the three months ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to fluctuations in the Company's share price during each of the respective periods.

Previous wording

On a consolidated basis, interest expense, net of amounts capitalized, was $5 million for the three months ended March 31, 2024, compared to $10 million for the three months ended March 31, 2023. The decrease in the period-to-period comparison was primarily due to less debt outstanding, as the Company fully retired its Term Loan B and Second Lien Notes in 2023.

Current wording

On a consolidated basis, interest expense, net of amounts capitalized, was $5 million for the three months ended June 30, 2024, compared to $7 million for the three months ended June 30, 2023. The $2 million decrease in the period-to-period comparison was primarily due to less debt outstanding, as the Company fully retired its Term Loan B and Second Lien Notes in 2023.

Previous wording

Adjusted EBITDA for the three months ended March 31, 2024 was $17 million, compared to $21 million for the three months ended March 31, 2023. Throughput volumes at the CONSOL Marine Terminal were 4.5 million tons for the three months ended March 31, 2024, compared to 4.6 million tons for the three months ended March 31, 2023. CONSOL Marine Terminal revenue was $25 million for the three months ended March 31, 2024, compared to $27 million for the three months ended March 31, 2023.

Current wording

As a result of the bridge collapse, throughput volumes and revenue from those volumes were interrupted until May 20, 2024. The Company used this downtime to perform several maintenance projects originally scheduled to occur during the summer shutdown period. Accordingly, adjusted EBITDA for the three months ended June 30, 2024 was $5 million, compared to $24 million for the three months ended June 30, 2023. Throughput volumes at the CONSOL Marine Terminal were 2.3 million tons for the three months ended June 30, 2024, compared to 5.4 million tons for the three months ended June 30, 2023. CONSOL Marine Terminal revenue was $12 million for the three months ended June 30, 2024, compared to $31 million for the three months ended June 30, 2023.

Previous wording

Contract buyout income was primarily the result of partial contract buyouts that involved negotiations with customers to reduce coal quantities for which they were otherwise obligated to purchase under contracts in exchange for payment of certain fees to the Company and did not impact forward contract terms.

Current wording

Contract buyout income was primarily the result of partial contract buyouts that involved negotiations with customers to reduce coal quantities that they otherwise were obligated to purchase under contracts in exchange for payment of certain fees to the Company and did not impact forward contract terms.

Previous wording

Operating costs for the Pennsylvania Mining Complex include items such as direct operating costs, royalties and production taxes and direct administration costs. In the period-to-period comparison, operating costs - PAMC increased $20 million, primarily due to additional costs associated with the three longwall moves in the current quarter, as well as ongoing inflationary pressures. See “Operational Performance - PAMC Analysis” for further information on segment operating costs.

Current wording

Operating costs for the Pennsylvania Mining Complex include items such as direct operating costs, royalties and production taxes and direct administration costs. In the period-to-period comparison, operating costs - PAMC increased $17 million, primarily due to additional costs associated with ongoing inflationary pressures, partially offset by lower costs in the second quarter of 2024 as a result of the reduced operating schedule following the Francis Scott Key Bridge collapse. See“Operational Performance - PAMC Analysis” for further information on segment operating costs.

Previous wording

Adjusted EBITDA for the three months ended March 31, 2024 was $169 million, compared to $331 million for the three months ended March 31, 2023. The impairment was primarily attributable to a $15.99 decrease in average coal revenue per ton sold, as well as a 0.6 million decrease in tons sold and a $6.68 increase in the average cash cost of coal sold per ton. The decrease in average coal revenue per ton sold was primarily due to weaker commodity prices, specifically reduced natural gas and API2 prices quarter-over-quarter, which put downward pressure on the Company's realizations in the first quarter of 2024. After a modest rebound in the fourth quarter of 2023, demand for the Company's product in the power generation markets was muted during the first quarter of 2024 due to mild winter weather which caused weaker commodity prices both domestically and globally. Although overall pricing declined compared to the fourth quarter of 2023, export demand, specifically in the industrial and crossover markets, remained strong. Despite the reduced export capability as a result of the Francis Scott Key Bridge collapse that occurred on March 26, 2024, the Company placed 3.7 million tons of coal, or 59% of its total tons sold, into the export market in the three months ended March 31, 2024. Comparatively, in the three months ended March 31, 2023, the Company placed 3.9 million tons of coal, or 58% of its total tons sold, into the export market.

Current wording

Adjusted EBITDA for the six months ended June 30, 2024 was $308 million, compared to $601 million for the six months ended June 30, 2023. The decrease was primarily attributable to a $15.23 decrease in average coal revenue per ton sold, as well as a 1.3 million decrease in tons sold and a $5.11 increase in the average cash cost of coal sold per ton. The decrease in average coal revenue per ton sold was primarily due to weaker API2 and natural gas prices year-over-year, which put downward pressure on the Company's realizations in 2024, and higher incremental transportation costs. These transportation costs were incurred due to the Company's utilization of an alternative port because access to the CONSOL Marine Terminal was suspended as a result of the Francis Scott Key Bridge collapse. In addition, after a modest rebound in the fourth quarter of 2023, demand for the Company's product in the power generation markets was muted during the first quarter of 2024 due to mild winter weather which caused weaker commodity prices both domestically and globally. These downward pressures were partially offset by stronger PJM West day ahead power prices in the second quarter of 2024, specifically due to the warmer-than-normal temperatures in the PJM region in June 2024. Despite the reduced export capability as a result of the Francis Scott Key Bridge collapse that occurred on March 26, 2024, the PAMC placed 6.6 million tons of coal, or 55% of its total tons sold, into the export market in the six months ended June 30, 2024. Comparatively, in the six months ended June 30, 2023, the PAMC placed 8.2 million tons of coal, or 62% of its total tons sold, into the export market.

Previous wording

Cash cost of coal sold was $242 million for the three months ended March 31, 2024, compared to $222 million for the three months ended March 31, 2023. The increase in the cash cost of coal sold and average cash cost of coal sold per ton was primarily due to the effect of the three longwall moves in the current quarter, as well as ongoing inflationary pressures on supplies, maintenance costs and contractor labor costs compared to the prior-year period.

Current wording

Cash cost of coal sold was $473 million for the six months ended June 30, 2024, compared to $456 million for the six months ended June 30, 2023. The increase in the cash cost of coal sold and average cash cost of coal sold per ton was primarily due to ongoing inflationary pressures on supplies, maintenance costs and contractor labor costs compared to the prior-year period, as well as lower sales tons to absorb fixed costs on a per ton basis in the period-to-period comparison.

Previous wording

In 2023, the Company amended its revolving credit facility to achieve additional financial flexibility by increasing the capacity of the facility and easing certain restrictive covenants, specifically around investments and shareholder returns. These covenants have been simplified to better align with the significantly improved credit profile of the business and are now leverage and liquidity-based moving forward. The Company was successful in securing incremental commitments in the amount of $95 million, which includes commitments from multiple new lenders to the facility and upsized commitments from 60% of existing lenders. The revolving credit facility now has a borrowing capacity of $355 million and provides for the Company's ability to increase the revolving commitments or issue term loans in an additional amount not to exceed $45 million and up to an aggregate total amount of $400 million.

Current wording

In 2023, the Company amended its revolving credit facility to achieve additional financial flexibility by increasing the capacity of the facility and easing certain restrictive covenants, specifically around investments and shareholder returns. These covenants were simplified to better align with the significantly improved credit profile of the business and are now leverage and liquidity-based moving forward. The Company was successful in securing incremental commitments in the amount of $95 million, which includes commitments from multiple new lenders to the facility and upsized commitments from 60% of existing lenders. The revolving credit facility now has a borrowing capacity of $355 million and provides for the Company's ability to increase the revolving commitments or issue term loans in an additional amount not to exceed $45 million and up to an aggregate total amount of $400 million.

Previous wording

During the three months ended March 31, 2024, the Company generated cash flows from operating activities of approximately $77 million and utilized a portion of operating cash flows to repurchase outstanding shares of the Company's common stock. Our total liquidity as of March 31, 2024 was comprised of the following:

Current wording

During the six months ended June 30, 2024, the Company generated cash flows from operating activities of approximately $194 million and utilized a portion of operating cash flows to repurchase outstanding shares of the Company's common stock. Our total liquidity as of June 30, 2024 was comprised of the following:

Previous wording

CONSOL Energy participates in the United Mine Workers of America (the “UMWA”) Combined Benefit Fund and the UMWA 1992 Benefit Plan for which benefits are reflected in the Company's consolidated financial statements when paid. These benefit arrangements may result in additional liabilities that are not recognized on the Consolidated Balance Sheet at March 31, 2024. The various multi-employer benefit plans are discussed in Note 17—Other Employee Benefit Plans in the Notes to the Consolidated Financial Statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. CONSOL Energy's total contributions under the Coal Industry Retiree Health Benefit Act of 1992 were $1 million and $1 million for the three months ended March 31, 2024 and 2023, respectively. Based on available information at December 31, 2023, CONSOL Energy's aggregate obligation for the UMWA Combined Benefit Fund and 1992 Benefit Plan is estimated to be approximately $33 million. CONSOL Energy also uses a combination of surety bonds, corporate guarantees and letters of credit to secure its financial obligations for employee-related, environmental, performance and various other items which are not reflected on the Consolidated Balance Sheet at March 31, 2024. Management believes these items will expire without being funded. See Note 13—Commitments and Contingent Liabilities in the Notes to the Consolidated Financial Statements included in Item 1 of this Form 10-Q for additional details of the various financial guarantees that have been issued by CONSOL Energy.

Current wording

CONSOL Energy participates in the United Mine Workers of America (the “UMWA”) Combined Benefit Fund and the UMWA 1992 Benefit Plan for which benefits are reflected in the Company's consolidated financial statements when paid. These benefit arrangements may result in additional liabilities that are not recognized on the Consolidated Balance Sheet at June 30, 2024. The various multi-employer benefit plans are discussed in Note 17—Other Employee Benefit Plans in the Notes to the Consolidated Financial Statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. CONSOL Energy's total contributions under the Coal Industry Retiree Health Benefit Act of 1992 were $2 million and $2 million for the six months ended June 30, 2024 and 2023, respectively. Based on available information at December 31, 2023, CONSOL Energy's aggregate obligation for the UMWA Combined Benefit Fund and 1992 Benefit Plan is estimated to be approximately $33 million. CONSOL Energy also uses a combination of surety bonds, corporate guarantees and letters of credit to secure its financial obligations for employee-related, environmental, performance and various other items which are not reflected on the Consolidated Balance Sheet at June 30, 2024. Management believes these items will expire without being funded. See Note 13—Commitments and Contingent Liabilities in the Notes to the Consolidated Financial Statements included in Item 1 of this Form 10-Q for additional details of the various financial guarantees that have been issued by CONSOL Energy.

Previous wording

Cash provided by operating activities decreased $172 million in the period-to-period comparison, primarily due to the overall decrease in earnings at the PAMC and the CONSOL Marine Terminal and other working capital changes that occurred throughout both periods.

Current wording

Cash provided by operating activities decreased $282 million in the period-to-period comparison, primarily due to the overall decrease in earnings at the PAMC and the CONSOL Marine Terminal and other working capital changes that occurred throughout both periods. The decrease in PAMC and CONSOL Marine Terminal earnings was partially due to the decrease in average PAMC coal revenue per ton sold, as well as the financial impact of the Francis Scott Key Bridge collapse.

Previous wording

Cash used in investing activities decreased $67 million in the period-to-period comparison, primarily due to $75 million in purchases of short-term investments in U.S. Treasury securities during the three months ended March 31, 2023. Capital expenditures increased $8 million primarily due to additional equipment-related expenditures and rebuilds during the three months ended March 31, 2024. The Company's capital expenditures are set forth below.

Current wording

Cash used in investing activities decreased $78 million in the period-to-period comparison, primarily due to a net investment of approximately $100 million in U.S. Treasury securities during the six months ended June 30, 2023. Capital expenditures increased $22 million primarily due to additional equipment-related expenditures and rebuilds during the six months ended June 30, 2024. The Company's capital expenditures are set forth below.

Previous wording

Cash used in financing activities decreased $158 million in the period-to-period comparison primarily driven by a $96 million decrease in net payments on indebtedness. Payments totaling $91 million were made toward the Company's outstanding Term Loan B and Second Lien Notes during the three months ended March 31, 2023, which were fully paid off in June 2023 and July 2023, respectively. Additionally, $38 million in dividend payments were made during the three months ended March 31, 2023. Cash outflows related to CONSOL Energy share repurchases totaled $58 million in the three months ended March 31, 2024, compared to $75 million in the three months ended March 31, 2023.

Current wording

Cash used in financing activities decreased $301 million in the period-to-period comparison primarily driven by a $148 million decrease in net payments on indebtedness. Payments totaling $139 million were made toward the Company's outstanding Term Loan B and Second Lien Notes during the six months ended June 30, 2023, which were fully paid off in the second quarter of 2023 and the third quarter of 2023, respectively. Additionally, $75 million in dividend payments were made during the six months ended June 30, 2023. Cash outflows related to CONSOL Energy share repurchases totaled $71 million in the six months ended June 30, 2024, compared to $141 million in the six months ended June 30, 2023.

Previous wording

The Company's first lien gross leverage ratio was 0.01 to 1.00 at March 31, 2024. The Company's total net leverage ratio was (0.07) to 1.00 at March 31, 2024. The Company's fixed charge coverage ratio was 2.87 to 1.00 at March 31, 2024. Accordingly, the Company was in compliance with all of its financial covenants under the Revolving Credit Facility as of March 31, 2024.

Current wording

The Company's first lien gross leverage ratio was 0.01 to 1.00 at June 30, 2024. The Company's total net leverage ratio was (0.15) to 1.00 at June 30, 2024. The Company's fixed charge coverage ratio was 2.80 to 1.00 at June 30, 2024. Accordingly, the Company was in compliance with all of its financial covenants under the Revolving Credit Facility as of June 30, 2024.

Previous wording

At March 31, 2024, there were no borrowings outstanding under the Revolving Credit Facility and the facility is currently only used for providing letters of credit, with $133 million of letters of credit outstanding, leaving $222 million of unused capacity. From time to time, CONSOL Energy is required to post financial assurances to satisfy contractual and other requirements generated in the normal course of business. Some of these assurances are posted to comply with federal, state or other government agencies' statutes and regulations. CONSOL Energy sometimes uses letters of credit to satisfy these requirements and these letters of credit reduce the Company's borrowing facility capacity.

Current wording

At June 30, 2024, there were no borrowings outstanding under the Revolving Credit Facility and the facility is currently only used for providing letters of credit, with $128 million of letters of credit outstanding, leaving $227 million of unused capacity. From time to time, CONSOL Energy is required to post financial assurances to satisfy contractual and other requirements generated in the normal course of business. Some of these assurances are posted to comply with federal, state or other government agencies' statutes and regulations. CONSOL Energy sometimes uses letters of credit to satisfy these requirements and these letters of credit reduce the Company's borrowing facility capacity.

Previous wording

At March 31, 2024, eligible accounts receivable yielded $51 million of borrowing capacity. At March 31, 2024, the facility had no outstanding borrowings and approximately $50 million of letters of credit outstanding, leaving $719 thousand of unused capacity. Costs associated with the receivables facility were less than $1 million for the three months ended March 31, 2024. The Company has not derecognized any receivables due to its continued involvement in the collections efforts.

Current wording

At June 30, 2024, eligible accounts receivable yielded $54 million of borrowing capacity. At June 30, 2024, the facility had no outstanding borrowings and approximately $51 million of letters of credit outstanding, leaving $3 million of unused capacity. Costs associated with the receivables facility were less than $1 million for the three months ended June 30, 2024. The Company has not derecognized any receivables due to its continued involvement in the collections efforts.

Previous wording

CONSOL Energy expects to make payments of $13 million on its operating and finance lease obligations, including interest, in the next 12 months. Refer to Note 14 – Leases of our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information concerning material cash requirements in future years.

Current wording

CONSOL Energy expects to make payments of $10 million on its operating and finance lease obligations, including interest, in the next 12 months. Refer to Note 14 – Leases of our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information concerning material cash requirements in future years.

Previous wording

CONSOL Energy expects to make payments of $48 million on its employee-related long-term liabilities in the next 12 months. Refer to Note 15 – Pension and Other Postretirement Benefit Plans and Note 16 – Coal Workers’ Pneumoconiosis and Workers’ Compensation of our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information concerning material cash requirements in future years.

Current wording

CONSOL Energy expects to make payments of $49 million on its employee-related long-term liabilities in the next 12 months. Refer to Note 15 – Pension and Other Postretirement Benefit Plans and Note 16 – Coal Workers’ Pneumoconiosis and Workers’ Compensation of our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information concerning material cash requirements in future years.

Previous wording

At March 31, 2024, CONSOL Energy had total long-term debt and finance lease obligations of $196 million outstanding, including the current portion of $9 million. This long-term debt consisted of:

Current wording

At June 30, 2024, CONSOL Energy had total long-term debt and finance lease obligations of $193 million outstanding, including the current portion of $6 million. This long-term debt consisted of:

Previous wording

•An aggregate principal amount of $11 million of finance leases with a weighted average interest rate of 6.83%.

Current wording

•An aggregate principal amount of $8 million of finance leases with a weighted average interest rate of 6.96%.

Previous wording

At March 31, 2024, CONSOL Energy had no borrowings outstanding and approximately $133 million of letters of credit outstanding under the $355 million senior secured Revolving Credit Facility. At March 31, 2024, CONSOL Energy had no borrowings outstanding and approximately $50 million of letters of credit outstanding under the $100 million securitization facility.

Current wording

At June 30, 2024, CONSOL Energy had no borrowings outstanding and approximately $128 million of letters of credit outstanding under the $355 million senior secured Revolving Credit Facility. At June 30, 2024, CONSOL Energy had no borrowings outstanding and approximately $51 million of letters of credit outstanding under the $100 million securitization facility.

Previous wording

During the three months ended March 31, 2024, the Company repurchased and retired 615,288 shares of the Company's common stock at an average price of $90.82 per share.

Current wording

During the six months ended June 30, 2024, the Company repurchased and retired 747,351 shares of the Company's common stock at an average price of $89.49 per share.

Previous wording

Total equity attributable to CONSOL Energy was $1,389 million at March 31, 2024 and $1,343 million at December 31, 2023. See the Consolidated Statements of Stockholders' Equity in Item 1 of this Form 10-Q for additional details.

Current wording

Total equity attributable to CONSOL Energy was$1,438 million at June 30, 2024 and $1,343 million at December 31, 2023. See the Consolidated Statements of Stockholders' Equity in Item 1 of this Form 10-Q for additional details.

Previous wording

Certain statements in this Quarterly Report on Form 10-Q are “forward-looking statements” within the meaning of the federal securities laws. With the exception of historical matters, the matters discussed in this Quarterly Report on Form 10-Q are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that involve risks and uncertainties that could cause actual results and outcomes to differ materially from results expressed in or implied by our forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income and capital spending. When we use the words “anticipate,” “believe,” “could,” “continue,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “would,” or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this Quarterly Report on Form 10-Q speak only as of the date of this Quarterly Report on Form 10-Q; we disclaim any obligation to update these statements unless required by securities law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks, contingencies and uncertainties relate to, among other matters, the following:

Current wording

Certain statements in this Quarterly Report on Form 10-Q are “forward-looking statements” within the meaning of the federal securities laws. With the exception of historical matters, the matters discussed in this Quarterly Report on Form 10-Q are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that involve risks and uncertainties that could cause actual results and outcomes to differ materially from results expressed in or implied by our forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income and capital spending. When we use the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “would,” or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this Quarterly Report on Form 10-Q speak only as of the date of this Quarterly Report on Form 10-Q; we disclaim any obligation to update these statements unless required by securities law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks, contingencies and uncertainties relate to, among other matters, the following: