CONSOL Energy (CEIX) Misses Q4 EPS by 44c, Revenues Miss

February 9, 2021 6:50 AM EST

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CONSOL Energy (NYSE: CEIX) reported Q4 EPS of $0.49, $0.44 worse than the analyst estimate of $0.93. Revenue for the quarter came in at $324.61 million versus the consensus estimate of $342.1 million.

Fourth Quarter 2020 Highlights Include:

  • Consummated the CCR merger transaction with strong shareholder support;
  • Net Income and Net Income Attributable to CONSOL Energy Inc. Shareholders of $14.7 million and $13.1 million, respectively;
  • Cash and cash equivalents of $50.9 million as of December 31, 2020;
  • Gross payments on total debt of $26.0 million during the quarter;
  • Coal shipments recover to 5.9 million tons compared to 4.5 million tons in 3Q20 and 2.3 million tons in 2Q20;
  • Net leverage ratio1 of 2.5x as of December 31, 2020;
  • Net cash provided by operating activities of $66.9 million; and
  • Adjusted EBITDA1 of $95.5 million and free cash flow1 of $48.0 million.

"2020 was an extremely challenging year, as our industry dealt with weakened commodity markets due to the unprecedented drop in global energy demand brought on by the COVID-19 pandemic," said Jimmy Brock, President and Chief Executive Officer of CONSOL Energy Inc. "However, despite this difficult backdrop, I am pleased with our execution of not only managing through this pandemic but also setting ourselves up for potential success as we head into 2021 and beyond. We moved early in 2020 to amend our credit agreement and secure covenant relaxation with our banks, implemented multiple cost and capex reduction targets, executed several transactional opportunities to bolster our liquidity and capped off the year by completing the CCR merger with overwhelming shareholder support. Additionally, we secured more than 10 million tons of future business under term and spot contracts during 2020 for deliveries in 2021 and beyond in the most challenging market of my 40+ year career. Furthermore, despite the reduced earnings versus 2019, we made payments of $86 million on our outstanding debt in 2020. We believe these actions have prepared us to hit the ground running in 2021."

"On the safety front, our Bailey Preparation Plant, CONSOL Marine Terminal (CMT) and Itmann project each had ZERO recordable incidents during the fourth quarter and full year of 2020. Our total recordable incident rate at the PAMC continues to track significantly below the national average for underground bituminous coal mines."

2021 Guidance and Outlook

Based on our current contracted position, estimated prices and production plans, we are providing the following financial and operating performance guidance for 2021:

  • 2021 targeted coal sales volume of 22-24 million tons
  • 18.2 million tons contracted at an average revenue per ton of $41.56/ton assuming a PJM West power price of $24.79/MWh
  • Average cash cost of coal sold per ton2 expectation of $27.00-$29.00/ton
  • Capital expenditures of $100-$125 million excluding any spending on the Itmann project

For earnings history and earnings-related data on CONSOL Energy (CEIX) click here.

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