CONSOL Energy Inc.

05/07/2024 | Press release | Distributed by Public on 05/07/2024 04:57

Quarterly Report for Quarter Ending March 31, 2024 (Form 10-Q)

ceix-20240331
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission file number: 001-38147
CONSOL Energy Inc.
(Exact name of registrant as specified in its charter)
Delaware 82-1954058
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
275 Technology DriveSuite 101
Canonsburg, PA15317-9565
(724) 416-8300
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value CEIX New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
CONSOL Energy Inc. had 29,388,005 shares of common stock, $0.01 par value, outstanding at April 30, 2024.

Table of Contents
TABLE OF CONTENTS
Part I. Financial Information
Page
Item 1.
Unaudited Financial Statements
Consolidated Statements of Income for the three months ended March 31, 2024 and 2023
4
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023
5
Consolidated Balance Sheets at March 31, 2024 and December 31, 2023
6
Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023
8
Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023
9
Notes to Consolidated Financial Statements
10
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
27
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
41
Item 4.
Controls and Procedures
41
Part II. Other Information
Item 1.
Legal Proceedings
42
Item 1A.
Risk Factors
42
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
42
Item 3.
Defaults Upon Senior Securities
43
Item 4.
Mine Safety Disclosures
43
Item 5.
Other Information
43
Item 6.
Exhibits
44
Signatures
45
2
Table of Contents
IMPORTANT DEFINITIONS REFERENCED IN THIS QUARTERLY REPORT

•"CONSOL Energy," "we," "our," "us," "our Company" and "the Company" refer to CONSOL Energy Inc. and its subsidiaries;
•"Btu" means one British thermal unit;
•"CONSOL Marine Terminal" refers to the Company's terminal operations located at the Port of Baltimore, Maryland;
•"former parent" refers to CNX Resources Corporation and its consolidated subsidiaries;
•"Greenfield Reserves and Resources" means those undeveloped reserves and resources owned by the Company in the Northern Appalachian, Central Appalachian and Illinois basins that are not associated with the Pennsylvania Mining Complex or the Itmann Mining Complex;
•"Itmann Mining Complex" refers to the Company's Itmann No. 5 metallurgical coal mine and coal preparation plant located in Wyoming County, West Virginia, and surrounding reserves to be processed and sold through the Itmann Mining Complex coal preparation plant; and
•"Pennsylvania Mining Complex" or "PAMC" refers to the Bailey, Enlow Fork and Harvey coal mines, the Central Preparation Plant, and related coal reserves, assets and operations located in southwestern Pennsylvania and northern West Virginia.
3
Table of Contents
PART I : FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOL ENERGY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
Revenue and Other Income: 2024 2023
Coal Revenue $ 447,927 $ 583,379
Terminal Revenue 24,528 26,711
Freight Revenue 69,842 67,507
Miscellaneous Other Income 16,668 5,284
Gain on Sale of Assets 6,077 5,726
Total Revenue and Other Income 565,042 688,607
Costs and Expenses:
Operating and Other Costs 293,430 260,627
Depreciation, Depletion and Amortization 56,997 59,551
Freight Expense 69,842 67,507
General and Administrative Costs 20,633 17,298
Loss on Debt Extinguishment - 1,375
Interest Expense 5,406 10,279
Total Costs and Expenses 446,308 416,637
Earnings Before Income Tax 118,734 271,970
Income Tax Expense 16,843 41,593
Net Income $ 101,891 $ 230,377
Earnings per Share:
Total Basic Earnings per Share $ 3.40 $ 6.67
Total Dilutive Earnings per Share $ 3.39 $ 6.55
Dividends Declared per Common Share $ - $ 1.10
The accompanying notes are an integral part of these consolidated financial statements.
4
Table of Contents
CONSOL ENERGY INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
(unaudited)
Three Months Ended
March 31,
2024 2023
Net Income $ 101,891 $ 230,377
Other Comprehensive Income (Loss):
Actuarially Determined Long-Term Liability Adjustments (Net of tax: ($111), $274)
385 (901)
Unrealized (Loss) Gain on Investments in Available-for-Sale Securities (Net of tax: $36, ($64))
(126) 212
Other Comprehensive Income (Loss) 259 (689)
Comprehensive Income $ 102,150 $ 229,688
The accompanying notes are an integral part of these consolidated financial statements.
5
Table of Contents
CONSOL ENERGY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
March 31,
2024 		December 31,
2023
ASSETS
Current Assets:
Cash and Cash Equivalents $ 172,551 $ 199,371
Short-Term Investments 82,583 81,932
Accounts and Notes Receivable
Trade Receivables, net 163,544 147,612
Other Receivables, net 16,457 12,765
Inventories 109,490 88,154
Other Current Assets 69,088 71,172
Total Current Assets 613,713 601,006
Property, Plant and Equipment:
Property, Plant and Equipment 5,594,414 5,552,404
Less - Accumulated Depreciation, Depletion and Amortization 3,699,743 3,649,281
Total Property, Plant and Equipment-Net 1,894,671 1,903,123
Other Assets:
Right of Use Asset - Operating Leases 13,442 14,658
Salary Retirement 48,809 47,246
Other Noncurrent Assets, net 109,489 108,970
Total Other Assets 171,740 170,874
TOTAL ASSETS $ 2,680,124 $ 2,675,003
The accompanying notes are an integral part of these consolidated financial statements.
6
Table of Contents
CONSOL ENERGY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
March 31,
2024 		December 31,
2023
LIABILITIES AND EQUITY
Current Liabilities:
Accounts Payable $ 139,301 $ 137,243
Current Portion of Long-Term Debt 8,549 11,106
Operating Lease Liability, Current Portion 4,468 4,769
Other Accrued Liabilities 264,978 290,606
Total Current Liabilities 417,296 443,724
Long-Term Debt:
Long-Term Debt 181,948 181,885
Finance Lease Obligations 3,523 4,182
Total Long-Term Debt 185,471 186,067
Deferred Credits and Other Liabilities:
Postretirement Benefits Other Than Pensions 206,901 207,908
Pneumoconiosis Benefits 153,983 154,943
Asset Retirement Obligations 211,757 212,621
Workers' Compensation 39,437 39,144
Salary Retirement 20,769 20,808
Operating Lease Liability 9,517 10,385
Deferred Income Taxes 36,293 36,219
Other Noncurrent Liabilities 9,882 19,742
Total Deferred Credits and Other Liabilities 688,539 701,770
TOTAL LIABILITIES 1,291,306 1,331,561
Stockholders' Equity:
Common Stock, $0.01 Par Value; 62,500,000 Shares Authorized, 29,395,337 Shares Issued and Outstanding at March 31, 2024; 29,910,439 Shares Issued and Outstanding at December 31, 2023
294 299
Capital in Excess of Par Value 536,163 547,861
Retained Earnings 1,001,162 944,342
Accumulated Other Comprehensive Loss (148,801) (149,060)
TOTAL EQUITY 1,388,818 1,343,442
TOTAL LIABILITIES AND EQUITY $ 2,680,124 $ 2,675,003
The accompanying notes are an integral part of these consolidated financial statements.
7
Table of Contents
CONSOL ENERGY INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Dollars in thousands)
Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Equity
December 31, 2023 $ 299 $ 547,861 $ 944,342 $ (149,060) $ 1,343,442
(Unaudited)
Net Income - - 101,891 - 101,891
Actuarially Determined Long-Term Liability Adjustments (Net of ($111) Tax)
- - - 385 385
Investments in Available-for-Sale Securities (Net of $36 Tax)
- - - (126) (126)
Comprehensive Income - - 101,891 259 102,150
Issuance of Common Stock 1 (1) - - -
Repurchases of Common Stock (615,288 Shares)
(6) (11,264) (44,611) - (55,881)
Excise Tax on Repurchases of Common Stock - - (471) - (471)
Employee Stock-Based Compensation - 5,118 11 - 5,129
Shares Withheld for Taxes - (5,551) - - (5,551)
March 31, 2024 $ 294 $ 536,163 $ 1,001,162 $ (148,801) $ 1,388,818

Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Equity
December 31, 2022 $ 347 $ 646,237 $ 668,882 $ (149,640) $ 1,165,826
(Unaudited)
Net Income - - 230,377 - 230,377
Actuarially Determined Long-Term Liability Adjustments (Net of $274 Tax)
- - - (901) (901)
Investments in Available-for-Sale Securities (Net of ($64) Tax)
- - - 212 212
Comprehensive Income (Loss) - - 230,377 (689) 229,688
Issuance of Common Stock 3 (3) - - -
Repurchases of Common Stock (1,207,409 Shares)
(11) (22,446) (44,676) - (67,133)
Excise Tax on Repurchases of Common Stock - - (478) - (478)
Employee Stock-Based Compensation - 4,792 - - 4,792
Shares Withheld for Taxes - (12,708) - - (12,708)
Dividends on Common Shares ($1.10/Share)
- - (38,287) - (38,287)
Dividend Equivalents Earned on Stock-Based Compensation Awards - - (803) - (803)
March 31, 2023 $ 339 $ 615,872 $ 815,015 $ (150,329) $ 1,280,897
The accompanying notes are an integral part of these consolidated financial statements.
8
Table of Contents
CONSOL ENERGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
Three Months Ended
March 31,
2024 2023
Cash Flows from Operating Activities:
Net Income $ 101,891 $ 230,377
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization 56,997 59,551
Gain on Sale of Assets (6,077) (5,726)
Stock-Based Compensation 5,118 4,792
Amortization of Debt Issuance Costs 937 2,141
Loss on Debt Extinguishment - 1,375
Deferred Income Taxes 74 (210)
Other Adjustments to Net Income (776) (34)
Changes in Operating Assets:
Accounts and Notes Receivable (19,618) 11,031
Inventories (21,336) (29,345)
Other Current Assets 2,414 5,306
Changes in Other Assets (1,382) (4,810)
Changes in Operating Liabilities:
Accounts Payable 3,180 (3,274)
Commodity Derivatives, net Liability - (15,142)
Other Operating Liabilities (26,065) 21,888
Changes in Other Liabilities (17,873) (29,409)
Net Cash Provided by Operating Activities 77,484 248,511
Cash Flows from Investing Activities:
Capital Expenditures (42,352) (33,757)
Proceeds from Sales of Assets 6,191 6,000
Investments in Mining-Related Activities (23) -
Proceeds from Sales of Short-Term Investments 15,543 -
Purchases of Short-Term Investments (15,331) (75,000)
Other Investing Activity (325) -
Net Cash Used in Investing Activities (36,297) (102,757)
Cash Flows from Financing Activities:
Payments on Finance Lease Obligations (3,410) (8,137)
Payments on Term Loan B - (40,000)
Payments on Second Lien Notes - (51,375)
Payments on Other Debt (253) (235)
Shares Withheld for Taxes (5,551) (12,708)
Repurchases of Common Stock (57,881) (75,121)
Dividends and Dividend Equivalents Paid (582) (38,287)
Net Cash Used in Financing Activities (67,677) (225,863)
Net Decrease in Cash and Cash Equivalents and Restricted Cash (26,490) (80,109)
Cash and Cash Equivalents and Restricted Cash at Beginning of Period 243,268 326,952
Cash and Cash Equivalents and Restricted Cash at End of Period $ 216,778 $ 246,843
Non-Cash Investing and Financing Activities:
Finance Lease $ - $ 588
The accompanying notes are an integral part of these consolidated financial statements.
9
Table of Contents
CONSOL ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(Dollars in thousands, except per share data)
NOTE 1-BASIS OF PRESENTATION:
Basis of Presentation
The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for future periods.
The Consolidated Balance Sheet at December 31, 2023 has been derived from the Audited Consolidated Financial Statements at that date but does not include all disclosures required by GAAP. This Form 10-Q report should be read in conjunction with CONSOL Energy Inc.'s Annual Report on Form 10-K for the year ended December 31, 2023.
All dollar amounts discussed in these Notes to Consolidated Financial Statements are in thousands of U.S. dollars, except for per share amounts, and unless otherwise indicated.
Basis of Consolidation
The Consolidated Financial Statements include the accounts of CONSOL Energy Inc. and its wholly-owned and majority-owned and/or controlled subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation.
Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09 Income Taxes (Topic 740). The amendments in this update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation, (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate), (3) disclose the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes, (4) disclose the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received), (5) disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and (6) disclose income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments in this update are effective for annual periods beginning after December 15, 2024, and should be applied prospectively. Management is currently evaluating the impact of this guidance, but does not expect this update to have a material impact on the Company's financial statements.
In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280). The amendments in this update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Topic 280 requires a public entity to report a measure of segment profit or loss that the chief operating decision maker uses to assess segment performance and make decisions about allocating resources. Topic 280 also requires other specified segment items and amounts, such as depreciation, amortization, and depletion expense, to be disclosed under certain circumstances. The amendments in this update do not change or remove those disclosure requirements. The amendments in this update also do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and should be applied retrospectively. Management is currently evaluating the impact of this guidance, but does not expect this update to have a material impact on the Company's financial statements.

10
Table of Contents
In August 2023, the FASB issued ASU 2023-05 - Business Combinations-Joint Venture Formations (Subtopic 805-60). The amendments in this update address the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The objectives of the amendments are to (1) provide decision-useful information to investors and other allocators of capital in a joint venture's financial statements and (2) reduce diversity in practice. The amendments in this update do not amend the definition of a joint venture, the accounting by an equity method investor for its investment in a joint venture, or the accounting by a joint venture for contributions received after its formation. The amendments in this update are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Existing joint ventures may elect to apply the guidance retrospectively. Management is currently evaluating the impact of this guidance, but does not expect this update to have a material impact on the Company's financial statements.
In March 2023, the FASB issued ASU 2023-02 - Investments-Equity Method and Joint Ventures (Topic 323). The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The amendments in this update apply to all reporting entities that hold (1) tax equity investments that meet the conditions for and elect to account for them using the proportional amortization method or (2) an investment in a low-income-housing tax credit (LIHTC) structure through a limited liability entity that is not accounted for using the proportional amortization method and to which certain LIHTC-specific guidance removed from Subtopic 323-740, Investments-Equity Method and Joint Ventures-Income Taxes, has been applied. The amendments in this update are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company adopted this guidance in the three months ended March 31, 2024, and there was no material impact on the Company's financial statements.
Earnings per Share

Basic earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the reporting period. Dilutive earnings per share are computed similarly to basic earnings per share, except that the weighted average number of shares outstanding is increased to include additional shares from restricted stock units and performance share units, if dilutive. The number of additional shares is calculated by assuming that outstanding restricted stock units and performance share units were released, and that the proceeds from such activities, as applicable, were used to acquire shares of common stock at the average market price during the reporting period.
The table below sets forth the share-based awards that have been excluded from the computation of diluted earnings per share because their effect would be anti-dilutive:
Three Months Ended
March 31,
2024 2023
Anti-Dilutive Restricted Stock Units 84 67,420
Anti-Dilutive Performance Share Units - 1,854
84 69,274

11
Table of Contents
The computations for basic and dilutive earnings per share are as follows:
Dollars in thousands, except per share data Three Months Ended
March 31,
2024 2023
Numerator:
Net Income $ 101,891 $ 230,377
Denominator:
Weighted-average shares of common stock outstanding 29,951,109 34,535,268
Effect of dilutive shares 122,553 616,333
Weighted-average diluted shares of common stock outstanding 30,073,662 35,151,601
Earnings per Share:
Basic $ 3.40 $ 6.67
Dilutive $ 3.39 $ 6.55

As of March 31, 2024, CONSOL Energy has 500,000 shares of preferred stock authorized, none of which are issued or outstanding.
NOTE 2-REVENUE FROM CONTRACTS WITH CUSTOMERS:
The following tables disaggregate CONSOL Energy's revenue from contracts with customers by product type and market:
Three Months Ended March 31, 2024
Domestic Export Total
Power Generation $ 164,733 $ 60,974 $ 225,707
Industrial 3,406 149,360 152,766
Metallurgical 13,257 56,197 69,454
Total Coal Revenue 181,396 266,531 447,927
Terminal Revenue 24,528
Freight Revenue 69,842
Other Revenue 4,392
Total Revenue from Contracts with Customers $ 546,689
Three Months Ended March 31, 2023
Domestic Export Total
Power Generation $ 184,676 $ 115,835 $ 300,511
Industrial 6,508 185,610 192,118
Metallurgical 4,325 86,425 90,750
Total Coal Revenue 195,509 387,870 583,379
Terminal Revenue 26,711
Freight Revenue 67,507
Total Revenue from Contracts with Customers $ 677,597

12
Table of Contents
Coal Revenue
The Company has disaggregated its coal revenue, derived from the PAMC and the Itmann Mining Complex, between domestic and export revenues, as well as between the industrial, power generation and metallurgical markets. Domestic coal revenue tends to be derived from contracts that typically have a term of one year or longer, and the pricing is typically fixed. Historically, export coal revenue tended to be derived from spot or shorter-term contracts with pricing determined closer to the time of shipment or based on a market index; however, the Company has secured several long-term export contracts with varying pricing arrangements. Coal revenue derived from the Itmann Mining Complex consists primarily of metallurgical coal sales, while coal revenue derived from the PAMC services the industrial, power generation and metallurgical markets due to the nature of its coal quality characteristics.
CONSOL Energy's coal revenue is recognized when the performance obligation has been satisfied, and the corresponding transaction price has been determined. Generally, title passes when coal is loaded at the coal preparation facilities, at terminal locations or other customer destinations. The Company's coal contract revenue per ton is fixed or determinable based upon either fixed forward pricing or pricing derived from established indices and adjusted for nominal quality characteristics. Some coal contracts also contain positive electric power price-related adjustments, which represent market-driven price adjustments, in addition to a fixed base price per ton. The Company's coal contracts generally do not allow for retroactive adjustments to pricing after title to the coal has passed and typically do not have significant financing components.
The estimated transaction price from each of the Company's contracts is based on the total amount of consideration to which the Company expects to be entitled under the contract. Included in the transaction price for certain coal supply contracts is the impact of variable consideration, including quality price adjustments, handling services and per ton price fluctuations based on certain coal sales price indices. The estimated transaction price for each contract is allocated to the Company's performance obligations based on relative stand-alone selling prices determined at contract inception. The Company has determined that each ton of coal represents a separate and distinct performance obligation.
While CONSOL Energy does, from time to time, experience costs of obtaining coal customer contracts with amortization periods greater than one year, those costs are generally immaterial. At March 31, 2024 and December 31, 2023, the Company did not have any capitalized costs to obtain customer contracts on its Consolidated Balance Sheets. As of and for the three months ended March 31, 2024 and 2023, the Company has not recognized any amortization of previously existing capitalized costs of obtaining customer contracts. Further, the Company has not recognized any coal revenue in the current period that is not a result of current period performance.
Terminal Revenue
Terminal revenues are attributable to the Company's CONSOL Marine Terminal and include revenues earned from providing receipt and unloading of coal from rail cars, transporting coal from the receipt point to temporary storage or stockpile facilities located at the Terminal, stockpiling, blending, weighing, sampling, redelivery, and loading of coal onto vessels. Revenues for these services are earned and performance obligations are considered fulfilled as the services are performed.
The CONSOL Marine Terminal does not normally experience material costs of obtaining customer contracts with amortization periods greater than one year. At March 31, 2024 and December 31, 2023, the Company did not have any capitalized costs to obtain customer contracts on its Consolidated Balance Sheets. As of and for the three months ended March 31, 2024 and 2023, the Company has not recognized any amortization of previously existing capitalized costs of obtaining Terminal customer contracts. Further, the Company has not recognized any Terminal revenue in the current period that is not a result of current period performance.
Freight Revenue
Some of CONSOL Energy's coal contracts require that the Company sell its coal at locations other than its coal preparation plants. The cost to transport the Company's coal to the ultimate sales point is passed through to the Company's customers and CONSOL Energy recognizes the freight revenue equal to the transportation costs when title to the coal passes to the customer.

13
Table of Contents
Other Revenue
Other revenue consists of revenue generated from carbon products and materials businesses led by CONSOL Innovations LLC, our wholly-owned subsidiary. This revenue is primarily comprised of sales of composite tools that are used in the aerospace industry. Revenues for these products are earned and recognized as the tools are built and progress toward product completion. Additionally, other revenue consists of revenue generated from the processing of third-party coal at the Itmann Mining Complex. Revenues for these services are earned and performance obligations are considered fulfilled as the services are performed. Other revenue is included within Miscellaneous Other Income in the accompanying Consolidated Statements of Income.
Contract Balances
Contract assets, when present, are recorded separately from trade receivables in the Company's Consolidated Balance Sheets and are reclassified to trade receivables as title passes to the customer and the Company's right to consideration becomes unconditional. Credit is extended based on an evaluation of a customer's financial condition and a customer's ability to perform its obligations. CONSOL Energy typically does not have material contract assets that are stated separately from trade receivables since the Company's performance obligations are satisfied as control of the goods or services passes to the customer, thereby granting the Company an unconditional right to receive consideration. Contract liabilities relate to consideration received in advance of the satisfaction of the Company's performance obligations. Contract liabilities are recognized as revenue at the point in time when control of the goods passes to the customer, or over time when services are provided.
NOTE 3-COMPONENTS OF PENSION AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS NET PERIODIC BENEFIT COSTS:
The components of Net Periodic Benefit Cost (Credit) are as follows:
Pension Benefits Other Post-Employment Benefits
Three Months Ended
March 31, 		Three Months Ended
March 31,
2024 2023 2024 2023
Service Cost $ 302 $ 304 $ - $ -
Interest Cost 6,431 6,757 2,758 3,261
Expected Return on Plan Assets (7,991) (9,867) - -
Amortization of Prior Service Credits - - (601) (601)
Amortization of Actuarial Loss (Gain) 1,566 185 (70) -
Net Periodic Benefit Cost (Credit) $ 308 $ (2,621) $ 2,087 $ 2,660
Expenses (credits) related to pension and other post-employment benefits are reflected in Operating and Other Costs in the Consolidated Statements of Income. Amounts reclassified out of accumulated other comprehensive (loss) income are reflected in Operating and Other Costs in the Consolidated Statements of Income.

14
Table of Contents
NOTE 4-COMPONENTS OF COAL WORKERS' PNEUMOCONIOSIS (CWP) AND WORKERS' COMPENSATION NET PERIODIC BENEFIT COSTS:
The components of Net Periodic Benefit Cost are as follows:
CWP Workers' Compensation
Three Months Ended
March 31, 		Three Months Ended
March 31,
2024 2023 2024 2023
Service Cost $ 746 $ 578 $ 1,464 $ 1,399
Interest Cost 2,066 2,071 573 628
Amortization of Actuarial Loss (Gain) 109 (261) (540) (512)
State Administrative Fees and Insurance Bond Premiums - - 464 545
Net Periodic Benefit Cost $ 2,921 $ 2,388 $ 1,961 $ 2,060
Expenses related to CWP and workers' compensation are reflected in Operating and Other Costs in the Consolidated Statements of Income. Amounts reclassified out of accumulated other comprehensive (loss) income are reflected in Operating and Other Costs in the Consolidated Statements of Income.
NOTE 5-INCOME TAXES:
The Company recorded its provision for income taxes for the three months ended March 31, 2024 of $16,843, or 14.2%, of earnings before income taxes, based on its annual estimated income tax rate adjusted for discrete items. The effective tax rate for the three months ended March 31, 2024 differs from the U.S. federal statutory rate of 21%, primarily due to the tax benefit for excess percentage depletion and foreign derived intangible income. These tax provision amounts also include discrete tax adjustments related to equity compensation.
The provision for income taxes for the three months ended March 31, 2023 of $41,593, or 15.3%, of earnings before income taxes was based on the Company's annual estimated income tax rate adjusted for discrete items. The effective tax rate for the three months ended March 31, 2023 differed from the U.S. federal statutory rate of 21%, primarily due to the tax benefit for excess percentage depletion and foreign derived intangible income. The tax provision amounts also included discrete tax adjustments primarily related to equity compensation.
The Company is subject to taxation in the United States and certain of its various states, as well as Canada and certain of its various provinces. The Company is subject to examination for the tax periods 2018 through 2023 for federal and state returns.
NOTE 6-CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS:
The following table disaggregates CONSOL Energy's cash, cash equivalents and restricted cash, which reconciles to the total shown on the Consolidated Statements of Cash Flows:
March 31,
2024 2023
Cash and Cash Equivalents $ 172,551 $ 192,826
Restricted Cash - Current(1)
44,227 45,797
Restricted Cash - Non-current(1)
- 8,220
Cash and Cash Equivalents and Restricted Cash $ 216,778 $ 246,843
(1) Restricted Cash - Current is included in Other Current Assets in the accompanying Consolidated Balance Sheets. Restricted Cash - Non-current is included in Other Noncurrent Assets, net in the accompanying Consolidated Balance Sheets.
15
Table of Contents
The components of cash and cash equivalents and restricted cash as of December 31, 2023 and 2022 are disclosed in Note 6 in the Notes to the Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 9, 2024.
The Company has invested in marketable debt securities, primarily comprised of highly liquid U.S. Treasury securities. These investments are held in the custody of financial institutions. The securities outstanding at March 31, 2024 are classified as available-for-sale securities and have maturity dates ranging from April 2024 through March 2025, and are classified as current assets accordingly.
The Company's investments in available-for-sale securities are as follows:
March 31, 2024
Gross Unrealized
Amortized Cost Allowance for Credit Losses Gains Losses Fair Value
U.S. Treasury Securities $ 82,642 $ - $ - $ (59) $ 82,583
December 31, 2023
Gross Unrealized
Amortized Cost Allowance for Credit Losses Gains Losses Fair Value
U.S. Treasury Securities $ 81,829 $ - $ 103 $ - $ 81,932
Available-for-sale investments are reported at fair value and any unrealized gains or losses are recognized in other comprehensive income (loss), net of tax. The unrealized losses and gains in the Company's portfolio at March 31, 2024 and December 31, 2023, respectively, are the result of normal market fluctuations. Interest and dividends are included in net income when earned.
NOTE 7-CREDIT LOSSES:
Trade receivables are recorded at the invoiced amount. Credit is extended based on an evaluation of a customer's financial condition, the importance of the customer or market for future business and a customer's ability to perform its obligations. Trade receivable balances are monitored against approved credit terms. Credit terms are reviewed and adjusted as considered necessary based on changes to a customer's credit profile. If a customer's credit deteriorates, the Company may reduce credit risk exposure by reducing credit terms, obtaining letters of credit, obtaining credit insurance, or requiring pre-payment for shipments. Other non-trade contractual arrangements consist primarily of overriding royalty agreements and other financial arrangements between the Company and various counterparties.
The Company may be at risk of exposure to credit losses primarily through sales of products and services. The Company's expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade and other accounts receivables. Due to the short-term nature of such receivables, the estimate of the amount of accounts receivable that may not be collected is based on an aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts may be necessary from time to time and are established to record the appropriate provision for customers that have a higher probability of default. The Company's monitoring activities include timely account reconciliations, dispute resolution, payment confirmation, and consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible.
Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes to the assessment of anticipated payment, changes in economic conditions, current industry trends in the markets the Company serves, and changes in the financial health of the Company's counterparties.
The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable and other non-trade contractual arrangements to present the net amount expected to be collected.
16
Table of Contents
Trade Receivables Other Non-Trade Contractual
Arrangements
Beginning Balance, December 31, 2023 $ 466 $ 7,504
Provision for expected credit losses 222 67
Ending Balance, March 31, 2024 $ 688 $ 7,571
NOTE 8-INVENTORIES:
Inventory components consist of the following:
March 31,
2024 		December 31,
2023
Coal $ 39,209 $ 17,128
Supplies 70,281 71,026
Total Inventories $ 109,490 $ 88,154
Inventories are stated at the lower of cost or net realizable value. The cost of coal inventories is determined by the first-in, first-out ("FIFO") method. Coal inventory costs include labor, supplies, equipment costs, operating overhead, depreciation, depletion, amortization and other related costs. The cost of supplies inventory is determined by the average cost method and includes operating and maintenance supplies to be used in the Company's coal operations.
NOTE 9-ACCOUNTS RECEIVABLE SECURITIZATION:
At March 31, 2024, CONSOL Energy and certain of its U.S. subsidiaries are parties to a trade accounts receivable securitization facility with financial institutions for the sale on a continuous basis of eligible trade accounts receivable. In July 2022, the securitization facility was amended to, among other things, extend the maturity date to July 29, 2025.
Pursuant to the securitization facility, CONSOL Thermal Holdings LLC, an indirect, wholly-owned subsidiary of the Company, sells trade receivables to CONSOL Pennsylvania Coal Company LLC, a wholly-owned subsidiary of the Company. CONSOL Marine Terminals LLC, a wholly-owned subsidiary of the Company, and CONSOL Pennsylvania Coal Company LLC sell and/or contribute trade receivables (including receivables sold to CONSOL Pennsylvania Coal Company LLC by CONSOL Thermal Holdings LLC) to CONSOL Funding LLC, a wholly-owned subsidiary of the Company (the "SPV"). The SPV, in turn, pledges its interests in the receivables to PNC Bank, N.A., which either makes loans or issues letters of credit on behalf of the SPV. The maximum amount of advances and letters of credit outstanding under the securitization facility may not exceed $100,000.
Loans under the securitization facility accrue interest at a reserve-adjusted market index rate equal to the applicable term Secured Overnight Financing Rate ("SOFR"). Loans and letters of credit under the securitization facility also accrue a program fee and a letter of credit participation fee, respectively, ranging from 2.00% to 2.50% per annum depending on the total net leverage ratio of CONSOL Energy. In addition, the SPV paid certain structuring fees to PNC Capital Markets LLC and pays other customary fees to the lenders, including a fee on unused commitments equal to 0.60% per annum.
At March 31, 2024, the Company's eligible accounts receivable yielded $50,666 of borrowing capacity. At March 31, 2024, the facility had no outstanding borrowings and $49,947 of letters of credit outstanding, leaving available borrowing capacity of $719. At December 31, 2023, the Company's eligible accounts receivable yielded $72,125 of borrowing capacity. At December 31, 2023, the facility had no outstanding borrowings and $72,087 of letters of credit outstanding, leaving available borrowing capacity of $38. Costs associated with the receivables facility totaled $365 and $413 for the three months ended March 31, 2024 and 2023, respectively. The Company has not derecognized any receivables due to its continued involvement in the collections efforts.

17
Table of Contents
NOTE 10-PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment consists of the following:
March 31,
2024 		December 31,
2023
Plant and Equipment $ 3,494,227 $ 3,458,655
Coal Properties and Surface Lands 907,097 906,343
Airshafts 497,718 492,806
Mine Development 366,260 366,260
Advance Mining Royalties 329,112 328,340
Total Property, Plant and Equipment 5,594,414 5,552,404
Less: Accumulated Depreciation, Depletion and Amortization 3,699,743 3,649,281
Total Property, Plant and Equipment - Net $ 1,894,671 $ 1,903,123
Coal reserves are either owned in fee or controlled by lease. The duration of the leases vary; however, the lease terms are generally extended automatically to the exhaustion of economically recoverable reserves, as long as active mining continues. Coal interests held by lease provide the same rights as fee ownership for mineral extraction and are legally considered real property interests.
As of March 31, 2024 and December 31, 2023, property, plant and equipment includes gross assets under finance leases of $36,466 and $44,622, respectively. Accumulated amortization for finance leases was $26,343 and $31,873 at March 31, 2024 and December 31, 2023, respectively. Amortization expense for assets under finance leases approximated $3,017 and $6,901 for the three months ended March 31, 2024 and 2023, respectively, and is included in Depreciation, Depletion and Amortization in the accompanying Consolidated Statements of Income.
NOTE 11-OTHER ACCRUED LIABILITIES:
March 31,
2024 		December 31,
2023
Subsidence Liability $ 105,671 $ 105,322
Accrued Compensation and Benefits 40,208 73,763
Accrued Income Taxes 15,557 -
Accrued Other Taxes 12,742 12,276
Deferred Revenue 7,071 9,517
Accrued Interest 3,120 6,283
Other 8,195 10,457
Current Portion of Long-Term Liabilities:
Asset Retirement Obligations 28,571 28,571
Postretirement Benefits Other than Pensions 19,297 19,327
Pneumoconiosis Benefits 14,880 15,071
Workers' Compensation 9,666 10,019
Total Other Accrued Liabilities $ 264,978 $ 290,606
18
Table of Contents
NOTE 12-LONG-TERM DEBT:
March 31,
2024 		December 31,
2023
Debt:
MEDCO Revenue Bonds in Series due September 2025 at 5.75%
$ 102,865 $ 102,865
9.00% PEDFA Solid Waste Disposal Revenue Bonds due April 2028
75,000 75,000
Advance Royalty Commitments (8.80% Weighted Average Interest Rate)
5,922 5,922
Other Debt Arrangements 1,166 1,419
Less: Unamortized Debt Issuance Costs (1,567) (1,686)
183,386 183,520
Less: Amounts Due in One Year* (1,438) (1,635)
Long-Term Debt $ 181,948 $ 181,885
* Excludes current portion of Finance Lease Obligations of $7,111 and $9,471 at March 31, 2024 and December 31, 2023, respectively.
Revolving Credit Facility
In November 2017, CONSOL Energy entered into a revolving credit facility with PNC Bank, N.A. (the "Revolving Credit Facility"). The Revolving Credit Facility has been amended several times, the most recent of which occurred in June 2023. This amendment increased the available revolving commitments from $260,000 to $355,000 and provides for the Company's ability to increase the revolving commitments or issue term loans in an additional amount not to exceed $45,000 and up to an aggregate total amount of $400,000. The maturity date of the Revolving Credit Facility is July 18, 2026.
Borrowings under the Company's Revolving Credit Facility bear interest at a floating rate that is, at the Company's option, either (i) SOFR plus the applicable SOFR adjustment (as defined therein) depending on the applicable interest period plus an applicable margin or (ii) an alternate base rate plus an applicable margin. The applicable margin for the Revolving Credit Facility depends on the Company's total net leverage ratio and this rate resets quarterly. Obligations under the Revolving Credit Facility are guaranteed by (i) all owners of the PAMC held by the Company, (ii) any other members of the Company's group that own any portion of the collateral securing the Revolving Credit Facility, and (iii) subject to certain customary exceptions and agreed materiality thresholds, all other existing or future direct or indirect wholly-owned restricted subsidiaries of the Company. The obligations are secured by, subject to certain exceptions (including a limitation of pledges of equity interests in certain subsidiaries and certain thresholds with respect to real property), a first-priority lien on (i) the Company's interest in the PAMC, (ii) the equity interests in PA Mining Complex LP held by the Company, (iii) the CONSOL Marine Terminal, (iv) the Itmann Mining Complex and (v) the 1.3 billion tons of Greenfield Reserves and Resources.
The Revolving Credit Facility contains a number of customary affirmative covenants and a number of negative covenants, including (subject to certain exceptions) limitations on (among other things): indebtedness, liens, investments, acquisitions, dispositions, restricted payments and prepayments of junior indebtedness. The Revolving Credit Facility also includes covenants relating to (i) a maximum first lien gross leverage ratio, (ii) a maximum total net leverage ratio, and (iii) a minimum fixed charge coverage ratio. The maximum first lien gross leverage ratio is calculated as the ratio of Consolidated First Lien Debt to Consolidated EBITDA. Consolidated EBITDA, as used in the covenant calculation, excludes non-cash compensation expenses, non-recurring transaction expenses, extraordinary gains and losses, gains and losses on discontinued operations and gains and losses on debt extinguishment. The maximum total net leverage ratio is calculated as the ratio of Consolidated Indebtedness, minus Cash on Hand, to Consolidated EBITDA. The minimum fixed charge coverage ratio is calculated as the ratio of Consolidated EBITDA to Consolidated Fixed Charges. Consolidated Fixed Charges, as used in the covenant calculation, include cash interest payments, cash payments for income taxes, scheduled debt repayments, Maintenance Capital Expenditures and cash payments related to legacy employee liabilities to the extent in excess of amounts accrued in the calculation of Consolidated EBITDA. Under the Revolving Credit Facility, the maximum first lien gross leverage ratio shall be 1.50 to 1.00, the maximum total net leverage ratio shall be 2.50 to 1.00 and the minimum fixed charge coverage ratio shall be 1.10 to 1.00.

19
Table of Contents
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. The Company was in compliance with all of its financial covenants under the Revolving Credit Facility as of March 31, 2024.
At March 31, 2024, the Revolving Credit Facility had no borrowings outstanding and $133,312 of letters of credit outstanding, leaving $221,688 of unused capacity. At December 31, 2023, the Revolving Credit Facility had no borrowings outstanding and $111,186 of letters of credit outstanding, leaving $243,814 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.
The SPV is not a guarantor of the Revolving Credit Facility, and the SPV holds the assets pledged to the lender in the securitization facility. The SPV had total assets of $160,278 and $147,918, comprised mainly of $159,864 and $147,612 trade receivables, net, at March 31, 2024 and December 31, 2023, respectively. Net income attributable to the SPV was $46 and $2,622 for the three months ended March 31, 2024 and 2023, respectively, which primarily reflected intercompany fees related to purchasing the receivables, which are eliminated in the Consolidated Financial Statements contained within this Quarterly Report on Form 10-Q. During the three months ended March 31, 2024 and 2023, there were no borrowings or payments under the accounts receivable securitization facility. See Note 9 - Accounts Receivable Securitization for additional information.
PEDFA Bonds
In April 2021, CONSOL Energy borrowed the proceeds received from the sale of tax-exempt bonds issued by the Pennsylvania Economic Development Financing Authority ("PEDFA") in an aggregate principal amount of $75,000 (the "PEDFA Bonds"). The PEDFA Bonds bear interest at a fixed rate of 9.00% for an initial term of seven years. The PEDFA Bonds mature on April 1, 2051 but are subject to mandatory purchase by the Company on April 13, 2028, at the expiration of the initial term rate period. The PEDFA Bonds were issued pursuant to an indenture (the "PEDFA Indenture") dated as of April 1, 2021, by and between PEDFA and Wilmington Trust, N.A., a national banking association, as trustee (the "PEDFA Notes Trustee"). PEDFA made a loan of the proceeds of the PEDFA Bonds to the Company pursuant to a Loan Agreement (the "Loan Agreement") dated as of April 1, 2021 between PEDFA and the Company. Under the terms of the Loan Agreement, the Company agreed to make all payments of principal, interest and other amounts at any time due on the PEDFA Bonds or under the PEDFA Indenture. PEDFA assigned its rights as lender under the Loan Agreement, excluding certain reserved rights, to the PEDFA Notes Trustee. Certain subsidiaries of the Company (the "PEDFA Notes Guarantors") executed a Guaranty Agreement (the "Guaranty") dated as of April 1, 2021 in favor of the PEDFA Notes Trustee, guarantying the obligations of the Company under the Loan Agreement to pay the PEDFA Bonds when and as due. The obligations of the Company under the Loan Agreement and of the PEDFA Notes Guarantors under the Guaranty are secured by second priority liens on substantially all of the assets of the Company and the PEDFA Notes Guarantors. The Loan Agreement and Guaranty incorporate by reference covenants in the Indenture, dated as of November 13, 2017 by and between the Company and UMB Bank, N.A., a national banking association, as trustee and collateral trustee, under which the 11.00% Senior Secured Second Lien Notes due 2025 (the "Second Lien Notes") were issued, including covenants that limited the ability of the Company and certain subsidiaries of the Company, as guarantors, to (i) incur, assume or guarantee additional indebtedness or issue preferred stock; (ii) create liens to secure indebtedness; (iii) declare or pay dividends on the Company's common stock, redeem stock or make other distributions to the Company's stockholders; (iv) make investments; (v) pay or make dividends, loans or other asset transfers from the Company's restricted subsidiaries; (vi) merge or consolidate, or sell, transfer, lease or dispose of substantially all of the Company's assets; (vii) sell or otherwise dispose of certain assets, including equity interests in subsidiaries; (viii) enter into transactions with affiliates; and (ix) create unrestricted subsidiaries. These covenants were subject to important exceptions and qualifications.
The Company started a capital construction project on the PAMC coarse refuse disposal area in 2017, which is now funded, in part, by the proceeds from the PEDFA Bonds. The Company expects to expend these funds as qualified work is completed. During the three months ended March 31, 2024 and 2023, the Company utilized restricted cash in the amount of $3,035 and $3,244, respectively, for qualified expenses. Additionally, the Company had $9,296 and $12,177 in restricted cash at March 31, 2024 and December 31, 2023, respectively, associated with this financing that will be used to fund future spending on the coarse refuse disposal area.

20
Table of Contents
NOTE 13-COMMITMENTS AND CONTINGENT LIABILITIES:
The Company is subject to various lawsuits and claims with respect to such matters as personal injury, wrongful death, damage to property, exposure to hazardous substances, governmental regulations including environmental remediation, employment and contract disputes and other claims and actions arising out of the normal course of business. The Company accrues the estimated loss for these lawsuits and claims when the loss is probable and reasonably estimable. The Company's estimated accruals related to these pending claims, individually and in the aggregate, are immaterial to the financial position, results of operations or cash flows of the Company as of March 31, 2024. It is possible that the aggregate loss in the future with respect to these lawsuits and claims could ultimately be material to the Company's financial position, results of operations or cash flows; however, such amounts cannot be reasonably estimated. The amount claimed against the Company as of March 31, 2024 is disclosed below when an amount is expressly stated in the lawsuit or claim, which is not often the case.
Fitzwater Litigation:Three nonunion retired coal miners have sued Fola Coal Company LLC, Consolidation Coal Company ("CCC") and CONSOL of Kentucky Inc. ("COK") (as well as the Company's former parent) in the U.S. District Court for the Southern District of West Virginia alleging ERISA violations in the termination of retiree health care benefits. The Plaintiffs contend they relied to their detriment on oral statements and promises of "lifetime health benefits" allegedly made by various members of management during Plaintiffs' employment and that they were allegedly denied access to Summary Plan Documents that clearly reserved to the Company the right to modify or terminate the Retiree Health and Welfare Plan subject to Plaintiffs' claims. Pursuant to Plaintiffs' amended complaint filed on April 24, 2017, Plaintiffs request that retiree health benefits be reinstated and seek to represent a class of all nonunion retirees who were associated with AMVEST and COK areas of operation. On October 15, 2019, Plaintiffs' supplemental motion for class certification was denied on all counts. On July 15, 2020, Plaintiffs filed an interlocutory appeal with the Fourth Circuit Court of Appeals on the Order denying class certification. The Fourth Circuit denied Plaintiffs' appeal on August 14, 2020. On October 1, 2020, the District Court entered a pretrial order setting the trial date, which was held in February 2021. No ruling has been issued by the judge. The Company believes it has a meritorious defense and intends to vigorously defend this suit.
Casey Litigation:A class action lawsuit was filed on August 23, 2017 on behalf of two nonunion retired coal miners against CCC, COK, CONSOL Buchanan Mining Co., LLC and Kurt Salvatori, the Company's Chief Administrative Officer, in the U.S. District Court for the Southern District of West Virginia alleging ERISA violations in the termination of retiree health care benefits. Filed by the same lawyers who filed the Fitzwater litigation, and raising nearly identical claims, the Plaintiffs contend they relied to their detriment on oral promises of "lifetime health benefits" allegedly made by various members of management during Plaintiffs' employment and that they were not provided with copies of Summary Plan Documents clearly reserving to the Company the right to modify or terminate the Retiree Health and Welfare Plan. Plaintiffs request that retiree health benefits be reinstated for them and their dependents and seek to represent a class of all nonunion retirees of any subsidiary of the Company's former parent that operated or employed individuals in McDowell or Mercer Counties, West Virginia, or Buchanan or Tazewell Counties, Virginia whose retiree welfare benefits were terminated. On December 1, 2017, the trial court judge in Fitzwater signed an order to consolidate Fitzwater with Casey. The Casey complaint was amended on March 1, 2018 to add new plaintiffs, add defendant CONSOL Pennsylvania Coal Company LLC and eliminate defendant CONSOL Buchanan Mining Co., LLC in an attempt to expand the class of retirees. On October 15, 2019, Plaintiffs' supplemental motion for class certification was denied on all counts. On July 15, 2020, Plaintiffs filed an interlocutory appeal with the Fourth Circuit Court of Appeals on the Order denying class certification. The Fourth Circuit denied Plaintiffs' appeal on August 14, 2020. On October 1, 2020, the District Court entered a pretrial order setting the trial date, which was held in February 2021. No ruling has been issued by the judge. The Company believes it has a meritorious defense and intends to vigorously defend this suit.
United Mine Workers of America 1992 Benefit Plan Litigation:In 2013, Murray Energy and its subsidiaries ("Murray") entered into a stock purchase agreement (the "Murray sale agreement") with the Company's former parent pursuant to which Murray acquired the stock of CCC and certain subsidiaries and certain other assets and liabilities. At the time of sale, the liabilities included certain retiree medical liabilities under the Coal Industry Retiree Health Benefit Act of 1992 ("Coal Act") and certain federal black lung liabilities under the Black Lung Benefits Act ("BLBA"). Based upon information available, the Company estimates that the annual servicing costs of these liabilities are approximately $10 million to $20 million per year for the next ten years. The annual servicing cost would decline each year since the beneficiaries of the Coal Act consist principally of miners who retired prior to 1994. Murray filed for Chapter 11 bankruptcy in October 2019. As part of the bankruptcy proceedings, Murray unilaterally entered into a settlement with the United Mine Workers of America 1992 Benefit Plan (the "1992 Benefit Plan") to transfer retirees in the Murray Energy Section 9711 Plan to the 1992 Benefit Plan. This was approved by the bankruptcy court on April 30, 2020. On May 2, 2020, the 1992 Benefit Plan filed an action in the United States District Court for the District of Columbia asking the court to make a determination whether the Company's former parent or the Company has any continuing retiree medical liabilities under the Coal Act (the "1992 Plan Lawsuit"). The Murray sale agreement includes indemnification by Murray
21
Table of Contents
with respect to the Coal Act and BLBA liabilities. In addition, the Company had agreed to indemnify its former parent relative to certain pre-separation liabilities. As of September 16, 2020, the Company entered into a settlement agreement with Murray and withdrew its claims in bankruptcy. On September 11, 2020, the Defendants in the 1992 Plan Lawsuit filed a Motion to Dismiss Plaintiffs' Second Amended Complaint which was denied by the Court on March 29, 2022. The Company will continue to vigorously defend any claims that attempt to transfer any of such liabilities directly or indirectly to the Company, including raising all applicable defenses against the 1992 Benefit Plan's suit. With respect to this lawsuit, while a loss is reasonably possible, it is not probable and, as a result, no accrual has been recorded.
United Mine Workers of America 1974 Pension Plan Litigation:On March 7, 2024, the Company's former parent filed a complaint (the "Indemnification Lawsuit") in the Superior Court of the State of Delaware against the Company that stated that the Company's former parent had settled potential claims asserted by the United Mine Workers of America 1974 Pension Plan ("1974 Plan") against the Company's former parent for a total settlement amount of $75,000 to be paid over a five year period, in exchange for a full release by the 1974 Plan of the Company's former parent, the Company and their affiliates. In the Indemnification Lawsuit, the Company's former parent is seeking (i) indemnification from the Company under the 2017 Separation and Distribution Agreement between the Company and its former parent for the $75,000 settlement plus the Company's former parent's alleged legal expenses related to its settlement with the 1974 Plan, (ii) the costs and expenses the Company's former parent incurs in connection with the Indemnification Lawsuit, (iii) pre- and post-judgment interest, (iv) punitive damages and (v) any other relief the court deems just and proper. The Company does not believe that it has any obligations to indemnify its former parent under the Separation and Distribution Agreement with respect to its former parent's settlement with the 1974 Plan and intends to vigorously defend itself against all claims asserted against it in the Indemnification Lawsuit. With respect to this lawsuit, while a loss is reasonably possible, it is not probable and, as a result, no accrual has been recorded.
The Company and various subsidiaries are defendants in certain other legal proceedings. In the opinion of management, based upon an investigation of these matters and discussion with legal counsel, the ultimate outcome of such other legal proceedings, individually and in the aggregate, is not expected to have a material adverse effect on the Company's financial position, results of operations or liquidity.
The following is a summary, as of March 31, 2024, of the financial guarantees, unconditional purchase obligations and letters of credit to certain third parties. Employee-related financial guarantees have primarily been provided to support the 1992 Benefit Plan and federal black lung and various state workers' compensation self-insurance programs. Environmental financial guarantees have primarily been provided to support various performance bonds related to reclamation and other environmental issues. Other financial guarantees have been extended to support sales contracts, insurance policies, surety indemnity agreements, legal matters, full and timely payments of mining equipment leases, and various other items necessary in the normal course of business. These amounts represent the maximum potential of total future payments that the Company could be required to make under these instruments. Certain letters of credit included in the table below were issued against other commitments included in this table. These amounts have not been reduced for potential recoveries under recourse or collateralization provisions. Generally, recoveries under reclamation bonds would be limited to the extent of the work performed at the time of the default. No amounts related to these commitments are recorded as liabilities in the financial statements. The Company's management believes that these commitments will not have a material adverse effect on the Company's financial condition.
Amount of Commitment Expiration per Period
Total Amounts Committed Less Than 1 Year 1-3 Years 3-5 Years Beyond 5 Years
Letters of Credit:
Employee-Related $ 48,020 $ 43,420 $ 4,600 $ - $ -
Environmental 398 398 - - -
Other 134,841 129,805 5,036 - -
Total Letters of Credit $ 183,259 $ 173,623 $ 9,636 $ - $ -
Surety Bonds:
Employee-Related $ 80,210 $ 80,210 $ - $ - $ -
Environmental 527,064 527,064 - - -
Other 4,100 4,100 - - -
Total Surety Bonds $ 611,374 $ 611,374 $ - $ - $ -
22
Table of Contents
The Company regularly evaluates the likelihood of default for all guarantees based on an expected loss analysis and records the fair value, if any, of its guarantees as an obligation in the Consolidated Financial Statements.
NOTE 14-FAIR VALUE OF FINANCIAL INSTRUMENTS:
CONSOL Energy determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources (including SOFR-based discount rates and U.S. Treasury-based rates), while unobservable inputs reflect the Company's own assumptions of what market participants would use.
The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below.
Level One - Quoted prices for identical instruments in active markets. The Company's Level 1 assets include marketable debt securities, primarily highly liquid U.S. Treasury securities.
Level Two - The fair value of the assets and liabilities included in Level 2 are based on standard industry income approach models that use significant observable inputs, including SOFR-based discount rates and U.S. Treasury-based rates.
Level Three - Unobservable inputs significant to the fair value measurement supported by little or no market activity.
In those cases when the inputs used to measure fair value meet the definition of more than one level of the fair value hierarchy, the lowest level input that is significant to the fair value measurement in its totality determines the applicable level in the fair value hierarchy.
The financial instruments measured at fair value on a recurring basis are summarized below:
Fair Value Measurements at Fair Value Measurements at
March 31, 2024 December 31, 2023
Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
U.S. Treasury Securities $ 82,583 $ - $ - $ 81,932 $ - $ -
The following methods and assumptions were used to estimate the fair value for which the fair value option was not elected:
Long-term debt:The fair value of long-term debt is measured using unadjusted quoted market prices or estimated using discounted cash flow analyses. The discounted cash flow analyses are based on current market rates for instruments with similar cash flows.
The carrying amounts and fair values of financial instruments for which the fair value option was not elected are as follows:
March 31, 2024 December 31, 2023
Carrying
Amount 		Fair
Value 		Carrying
Amount 		Fair
Value
Long-Term Debt (Excluding Debt Issuance Costs) $ 184,953 $ 199,338 $ 185,206 $ 199,591
Certain of the Company's debt is actively traded on a public market and, as a result, constitutes Level 1 fair value measurements. The portion of the Company's debt obligations that is not actively traded is valued through reference to the applicable underlying benchmark rate and, as a result, constitutes Level 2 fair value measurements.


23
Table of Contents
NOTE 15-SEGMENT INFORMATION:

The Company reports segment information based on the "management" approach. The management approach designates the internal reporting used by management to make decisions on and assess performance of the Company's reportable segments. CONSOL Energy presently consists of two reportable segments, the PAMC and the CONSOL Marine Terminal. The PAMC includes the Bailey Mine, the Enlow Fork Mine, the Harvey Mine and a centralized preparation plant. The PAMC segment's principal activities include the mining, preparation and marketing of bituminous coal, sold primarily to industrial end-users, power generators and metallurgical end-users. The CONSOL Marine Terminal provides coal export terminal services through the Port of Baltimore. General and administrative costs are allocated to the Company's segments based on a percentage of resources utilized, a percentage of total revenue and a percentage of total projected capital expenditures. CONSOL Energy's Other segment includes revenue and expenses from various corporate and diversified business activities that are not allocated to the PAMC or the CONSOL Marine Terminal segments. The diversified business activities currently include the Itmann Mining Complex, carbon products and materials businesses led by CONSOL Innovations LLC, the Greenfield Reserves and Resources, closed mine activities, other income, gain on asset sales related to non-core assets, and gain/loss on debt extinguishment. Additionally, interest expense and income taxes, as well as various other non-operated activities, none of which are individually significant to the Company, are also reflected in CONSOL Energy's Other segment and are not allocated to the PAMC and CONSOL Marine Terminal segments.
The Company evaluates the performance of its segments utilizing Adjusted EBITDA and various productivity metrics. Adjusted EBITDA measures the operating performance of the Company's segments and is used to allocate resources to the Company's segments.
Reportable segment results for the three months ended March 31, 2024 are:
PAMC CONSOL Marine Terminal Other, Corporate and Eliminations Consolidated
Coal Revenue $ 416,187 $ - $ 31,740 $ 447,927
Terminal Revenue - 24,528 - 24,528
Freight Revenue 66,900 - 2,942 69,842
Other Revenue - - 4,392 4,392
Total Revenue from Contracts with Customers $ 483,087 $ 24,528 $ 39,074 $ 546,689
Adjusted EBITDA $ 169,333 $ 16,840 $ (4,420) $ 181,753
Segment Assets $ 1,612,850 $ 82,818 $ 984,456 $ 2,680,124
Depreciation, Depletion and Amortization $ 48,269 $ 1,241 $ 7,487 $ 56,997
Capital Expenditures $ 36,958 $ 1,063 $ 4,331 $ 42,352
Reportable segment results for the three months ended March 31, 2023 are:
PAMC CONSOL Marine Terminal Other, Corporate and Eliminations Consolidated
Coal Revenue $ 563,337 $ - $ 20,042 $ 583,379
Terminal Revenue - 26,711 - 26,711
Freight Revenue 64,337 - 3,170 67,507
Total Revenue from Contracts with Customers $ 627,674 $ 26,711 $ 23,212 $ 677,597
Adjusted EBITDA $ 330,963 $ 20,615 $ (5,278) $ 346,300
Segment Assets $ 1,687,932 $ 82,019 $ 925,360 $ 2,695,311
Depreciation, Depletion and Amortization $ 51,371 $ 1,156 $ 7,024 $ 59,551
Capital Expenditures $ 26,807 $ 575 $ 6,375 $ 33,757

24
Table of Contents
For the three months ended March 31, 2024 and 2023, the Company's reportable segments had revenues from the following customers, each comprising over 10% of the Company's total sales:
Three Months Ended
March 31,
2024 2023
Customer A $ 74,260 $ 86,504
Customer B $ 64,479 $ 68,214
Customer C * $ 74,309
*Revenues from these customers during the periods presented were less than 10% of the Company's total sales.
Reconciliation of Segment Information to Consolidated Amounts:
Three Months Ended March 31, 2024
PAMC CONSOL Marine Terminal Other Consolidated
Net Income (Loss) $ 118,171 $ 13,831 $ (30,111) $ 101,891
Income Tax Expense - - 16,843 16,843
Interest Expense - 1,521 3,885 5,406
Interest Income (1,293) - (3,209) (4,502)
Depreciation, Depletion and Amortization 48,269 1,241 7,487 56,997
Stock-Based Compensation 4,186 247 685 5,118
Adjusted EBITDA $ 169,333 $ 16,840 $ (4,420) $ 181,753
Three Months Ended March 31, 2023
PAMC CONSOL Marine Terminal Other Consolidated
Net Income (Loss) $ 276,276 $ 17,789 $ (63,688) $ 230,377
Income Tax Expense - - 41,593 41,593
Interest Expense (301) 1,526 9,054 10,279
Interest Income (408) - (1,259) (1,667)
Depreciation, Depletion and Amortization 51,371 1,156 7,024 59,551
Stock-Based Compensation 4,025 144 623 4,792
Loss on Debt Extinguishment - - 1,375 1,375
Adjusted EBITDA $ 330,963 $ 20,615 $ (5,278) $ 346,300

25
Table of Contents
NOTE 16-STOCK AND DEBT REPURCHASES:
In December 2017, CONSOL Energy's Board of Directors approved a program to repurchase, from time to time, the Company's outstanding shares of common stock or its Second Lien Notes. Since the program's inception, the Company's Board of Directors has subsequently amended the program several times. The most recent amendment occurred in April 2023, in which the aggregate limit of the Company's repurchase authority was raised to $1,000,000. The program terminates on December 31, 2024.
Under the terms of the program, CONSOL Energy is permitted to make repurchases in the open market, in privately negotiated transactions, accelerated repurchase programs or in structured share repurchase programs. CONSOL Energy is also authorized to enter into one or more 10b5-1 plans with respect to any of the repurchases. Any repurchases of common stock or notes are to be funded from available cash on hand or short-term borrowings. The program does not obligate CONSOL Energy to acquire any particular amount of its common stock or notes, and the program can be modified or suspended at any time at the Company's discretion. The program is conducted in compliance with applicable legal requirements imposed by any credit agreement, receivables purchase agreement or indenture.
During the three months ended March 31, 2024 and 2023, the Company did not make any open market repurchases of its Second Lien Notes in accordance with this program; all remaining outstanding Second Lien Notes were redeemed by the Company during the year ended December 31, 2023. During the three months ended March 31, 2024 and 2023, the Company repurchased and retired 615,288 and 1,207,409 shares of the Company's common stock at an average price of $90.82 and $55.60 per share, respectively.


26
Table of Contents
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in conjunction with the Consolidated Financial Statements and corresponding notes included elsewhere in this Form 10-Q. In addition, this Form 10-Q report should be read in conjunction with the Consolidated Financial Statements for the three-year period ended December 31, 2023 included in CONSOL Energy Inc.'s Form 10-K, filed on February 9, 2024. This MD&A contains forward-looking statements and the matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected or implied in the forward-looking statements. Please see "Risk Factors" and "Forward-Looking Statements" for a discussion of the uncertainties, risks and assumptions associated with these statements.
All amounts discussed are in millions of U.S. dollars, unless otherwise indicated. All tons discussed are on a clean coal equivalent basis.
Recent Developments
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.
Our Business
We are a leading, low-cost producer of high-quality bituminous coal, focused on the extraction and preparation of coal in the Appalachian Basin due to our ability to efficiently produce and deliver large volumes of high-quality coal at competitive prices, the strategic location of our mines and the industry experience of our management team.
Our most significant tangible assets are the PAMC and the CONSOL Marine Terminal. Coal from the PAMC is valued because of its high energy content (as measured in Btu per pound), relatively low levels of sulfur and other impurities, and strong thermoplastic properties that enable it to be used in metallurgical, industrial and power generation applications. We take advantage of these desirable quality characteristics and our extensive logistical network, which is directly served by both the Norfolk Southern Corporation ("Norfolk Southern") and CSX Transportation Inc. ("CSX") railroads, coupled with the operational synergies afforded by the CONSOL Marine Terminal, to aggressively market our product to a broad base of diverse and strategically selected industrial and metallurgical end users globally. We also continue to support top-performing power plant customers in the eastern United States and abroad.
We are continuing to expand our presence in the metallurgical coal market through our Itmann Mining Complex in West Virginia. The Itmann Preparation Plant was constructed in 2022 and shipped its first train in October 2022. The plant includes a train loadout located on the Guyandotte Class I rail line, which can be served by both Norfolk Southern and CSX.
Our operations, including the PAMC and the CONSOL Marine Terminal, have consistently generated strong free cash flows. As of December 31, 2023, the PAMC controls 583.5 million tons of high-quality Pittsburgh seam reserves, enough to allow for an equivalent of more than 20 years of full-capacity production. As of December 31, 2023, the Itmann Mining Complex includes 28.4 million tons of recoverable coal reserves that are sufficient to support an equivalent of more than 30 years of full-capacity production, based on our current estimates. In addition, we own or control approximately 1.3 billion tons of Greenfield Reserves and Resources, portions of which are located in the Northern Appalachian Basin ("NAPP"), the Central Appalachian Basin ("CAPP") and the Illinois Basin ("ILB"). Our vision is to maximize cash flow generation through the safe, compliant, and efficient operation of our core asset base, while maintaining a strong balance
27
Table of Contents
sheet and liquidity, returning capital through share buybacks and/or dividends, and, when prudent, allocating capital toward compelling growth and diversification opportunities.
Our core businesses consist of our:
•Pennsylvania Mining Complex: The PAMC, which includes the Bailey Mine, the Enlow Fork Mine, the Harvey Mine and the Central Preparation Plant, has extensive high-quality coal reserves. We mine our reserves from the Pittsburgh No. 8 Coal Seam, which is a large contiguous formation of high-Btu coal that is ideal for high productivity, low-cost longwall mining operations. The design of the PAMC is optimized to produce large quantities of coal on a cost-efficient basis. We can sustain high production volumes at comparatively low operating costs due to, among other things, our technologically advanced longwall mining systems, logistics infrastructure and safety. All our mines at the PAMC utilize longwall mining, which is a highly automated underground mining technique that produces large volumes of coal at lower costs compared to other underground mining methods.
•CONSOL Marine Terminal: Through our subsidiary CONSOL Marine Terminals LLC, we provide coal export terminal services through the Port of Baltimore. The terminal can either store coal or load coal directly into vessels from rail cars. It is also the only major east coast United States coal terminal served by two Class I railroads, Norfolk Southern and CSX.
•Itmann Mining Complex: Construction of the Itmann No. 5 Mine, located in Wyoming County, West Virginia, began in the second half of 2019; development mining began in April 2020, but the pace of the project was intentionally slowed to minimize capital spending due to the uncertainties surrounding the COVID-19 pandemic. The coal preparation plant was commissioned during the third quarter of 2022 and shipped its first train in October 2022. The operation continued its ramp up progress in 2023 with a focus on mains development and increasing staffing levels, both of which are needed for the long-term viability of the mine. The Company anticipates approximately 900 thousand tons per year of high-quality, low-vol coking coal production from the Itmann No. 5 Mine once it achieves its full run rate, with an anticipated mine life of 30+ years. The preparation plant also includes a rail loadout and the capability for processing up to an additional 750 thousand to 1 million saleable tons annually from third parties and mining of our surrounding reserves. This additional processing revenue provides an avenue of growth for the Company.
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.
How We Evaluate Our Operations
Our management team uses a variety of financial and operating metrics to analyze our performance. These metrics are significant factors in assessing our operating results and profitability. The metrics include: (i) adjusted EBITDA, a non-GAAP financial measure; (ii) coal production, sales volumes and average coal revenue per ton; (iii) cost of coal sold, a non-GAAP financial measure; (iv) cash cost of coal sold, a non-GAAP financial measure; (v) average cash cost of coal sold per ton, an operating ratio derived from non-GAAP financial measures; and (vi) average cash margin per ton sold, an operating ratio derived from non-GAAP financial measures.
We believe that adjusted EBITDA provides a helpful measure of comparing our operating performance with the performance of other companies that have different financing, capital structures and tax rates than ours. We believe cost of coal sold, cash cost of coal sold, average cash cost of coal sold per ton, and average cash margin per ton sold normalize the volatility contained within comparable GAAP measures by adjusting for certain non-operating or non-cash transactions. Each of these non-GAAP metrics are used as supplemental financial measures by management and by external users of our financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:
•our operating performance compared to the operating performance of other companies in the coal industry, without regard to financing methods, historical cost basis, tax rates or capital structure;
•the ability of our assets to generate sufficient cash flow;
•our ability to incur and service debt and fund capital expenditures;
28
Table of Contents
•the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities; and
•the attractiveness of capital projects and acquisitions and the overall rates of return on alternative investment opportunities.
These non-GAAP financial measures should not be considered an alternative to operating and other costs, net income, or any other measure of financial performance presented in accordance with GAAP. These measures exclude some, but not all, items that affect measures presented in accordance with GAAP, and these measures and the way we calculate them may vary from those of other companies. As a result, the items presented below may not be comparable to similarly titled measures of other companies.
Reconciliation of Non-GAAP Financial Measures
We evaluate our cost of coal sold and cash cost of coal sold on an aggregate basis by segment, and our average cash cost of coal sold per ton on a per-ton basis. Cost of coal sold includes items such as direct operating costs, royalty and production taxes, direct administration costs, and depreciation, depletion and amortization costs on production assets. Cost of coal sold excludes any indirect costs and other costs not directly attributable to the production of coal. The cash cost of coal sold includes cost of coal sold less depreciation, depletion and amortization costs on production assets. We define average cash cost of coal sold per ton as cash cost of coal sold divided by tons sold. The GAAP measure most directly comparable to cost of coal sold, cash cost of coal sold and average cash cost of coal sold per ton is operating and other costs.
The following table presents a reconciliation for the PAMC segment of cash cost of coal sold, cost of coal sold and average cash cost of coal sold per ton to operating and other costs, the most directly comparable GAAP financial measure, on a historical basis, for each of the periods indicated (in thousands, except per ton information).
Three Months Ended March 31,
2024 2023
Operating and Other Costs $ 293,430 $ 260,627
Less: Other Costs (Non-Production and non-PAMC) (50,994) (38,486)
Cash Cost of Coal Sold $ 242,436 $ 222,141
Add: Depreciation, Depletion and Amortization (PAMC Production) 43,234 46,264
Cost of Coal Sold $ 285,670 $ 268,405
Total Tons Sold (in millions) 6.1 6.7
Average Cost of Coal Sold per Ton $ 46.90 $ 40.18
Less: Depreciation, Depletion and Amortization Costs per Ton Sold 6.61 6.57
Average Cash Cost of Coal Sold per Ton $ 40.29 $ 33.61
We evaluate our average cash margin per ton sold on a per-ton basis. We define average cash margin per ton sold as average coal revenue per ton sold, net of average cash cost of coal sold per ton. The GAAP measure most directly comparable to average cash margin per ton sold is total coal revenue.

29
Table of Contents
The following table presents a reconciliation for the PAMC segment of average cash margin per ton sold to total coal revenue, the most directly comparable GAAP financial measure, on a historical basis, for each of the periods indicated (in thousands, except per ton information).
Three Months Ended March 31,
2024 2023
Total Coal Revenue (PAMC Segment) $ 416,187 $ 563,337
Operating and Other Costs 293,430 260,627
Less: Other Costs (Non-Production and non-PAMC) (50,994) (38,486)
Cash Cost of Coal Sold $ 242,436 $ 222,141
Total Tons Sold (in millions) 6.1 6.7
Average Coal Revenue per Ton Sold $ 68.33 $ 84.32
Less: Average Cash Cost of Coal Sold per Ton 40.29 33.61
Average Cash Margin per Ton Sold $ 28.04 $ 50.71
We define adjusted EBITDA as (i) net income (loss) plus income taxes, interest expense and depreciation, depletion and amortization, as adjusted for (ii) certain non-cash items, such as stock-based compensation and loss on debt extinguishment. The GAAP measure most directly comparable to adjusted EBITDA is net income (loss).
The following tables present a reconciliation of adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, on a historical basis, for each of the periods indicated (in thousands).
Three Months Ended March 31, 2024
PAMC CONSOL Marine Terminal Other Consolidated
Net Income (Loss) $ 118,171 $ 13,831 $ (30,111) $ 101,891
Add: Income Tax Expense - - 16,843 16,843
Add: Interest Expense - 1,521 3,885 5,406
Less: Interest Income (1,293) - (3,209) (4,502)
Earnings (Loss) Before Interest & Taxes (EBIT) 116,878 15,352 (12,592) 119,638
Add: Depreciation, Depletion & Amortization 48,269 1,241 7,487 56,997
Earnings (Loss) Before Interest, Taxes and DD&A (EBITDA) $ 165,147 $ 16,593 $ (5,105) $ 176,635
Adjustments:
Add: Stock-Based Compensation $ 4,186 $ 247 $ 685 $ 5,118
Adjusted EBITDA $ 169,333 $ 16,840 $ (4,420) $ 181,753
30
Table of Contents
Three Months Ended March 31, 2023
PAMC CONSOL Marine Terminal Other Consolidated
Net Income (Loss) $ 276,276 $ 17,789 $ (63,688) $ 230,377
Add: Income Tax Expense - - 41,593 41,593
Add: Interest Expense (301) 1,526 9,054 10,279
Less: Interest Income (408) - (1,259) (1,667)
Earnings (Loss) Before Interest & Taxes (EBIT) 275,567 19,315 (14,300) 280,582
Add: Depreciation, Depletion & Amortization 51,371 1,156 7,024 59,551
Earnings (Loss) Before Interest, Taxes and DD&A (EBITDA) $ 326,938 $ 20,471 $ (7,276) $ 340,133
Adjustments:
Add: Stock-Based Compensation $ 4,025 $ 144 $ 623 $ 4,792
Add: Loss on Debt Extinguishment - - 1,375 1,375
Total Pre-tax Adjustments 4,025 144 1,998 6,167
Adjusted EBITDA $ 330,963 $ 20,615 $ (5,278) $ 346,300
Results of Operations: Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023
Revenue and Other Income
Three Months Ended March 31,
(in millions) 2024 2023 Variance
Coal Revenue - PAMC $ 416 $ 563 $ (147)
Coal Revenue - Itmann Mining Complex 32 20 12
Terminal Revenue 25 27 (2)
Freight Revenue 70 68 2
Miscellaneous Other Income 16 5 11
Gain on Sale of Assets 6 6 -
Total Revenue and Other Income $ 565 $ 689 $ (124)
Revenues from Contracts with Customers
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.

31
Table of Contents
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.

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.

Miscellaneous Other Income

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:

Three Months Ended March 31,
2024 2023 Variance
Interest Income $ 4 $ 2 $ 2
Royalty Income - Non-Operated Coal 4 2 2
Carbon Products and Materials 3 - 3
Contract Buyouts 3 - 3
Other Income 2 1 1
Miscellaneous Other Income $ 16 $ 5 $ 11

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

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.

Operating and Other Costs

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:

Three Months Ended March 31,
2024 2023 Variance
Operating Costs - PAMC $ 242 $ 222 $ 20
Operating Costs - Itmann Mining Complex 35 23 12
Operating Costs - Terminal 7 6 1
Employee-Related Legacy Liability Expense 6 3 3
Coal Reserve Holding Costs 2 2 -
Closed and Idle Mines 1 1 -
Other - 4 (4)
Operating and Other Costs $ 293 $ 261 $ 32


32
Table of Contents
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.

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.

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.

Employee-related legacy liability expense increased $3 million in the period-to-period comparison primarily due to the impact of changes in actuarial assumptions made at the beginning of each year. See Note 3 - Components of Pension and Other Post-Employment Benefit (OPEB) Plans Net Periodic Benefit Costs and Note 4 - Components of Coal Workers' Pneumoconiosis (CWP) and Workers' Compensation Net Periodic Benefit Costs in the Notes to the Consolidated Financial Statements in Item 1 of this Form 10-Q for additional information.

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.

Depreciation, Depletion and Amortization

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.

General and Administrative Costs

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.

Interest Expense

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.

Operational Performance: Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

CONSOL Energy presently consists of two reportable segments, the PAMC and the CONSOL Marine Terminal. The PAMC includes the Bailey Mine, the Enlow Fork Mine, the Harvey Mine and a centralized preparation plant. The PAMC segment's principal activities include the mining, preparation and marketing of bituminous coal, sold primarily to industrial end-users, metallurgical end-users and power generators. The segment also includes general and administrative activities and interest expense, as well as various other activities assigned to the PAMC segment, but not included in the cost components on a per unit basis. The CONSOL Marine Terminal segment provides coal export terminal services through the Port of Baltimore. The segment also includes general and administrative activities and interest expense, as well as various other activities assigned to the CONSOL Marine Terminal segment.

33
Table of Contents
The Company evaluates the performance of its segments utilizing Adjusted EBITDA and various productivity metrics. Adjusted EBITDA measures the operating performance of the Company's segments and is used to allocate resources to the Company's segments. The following table presents results by reportable segment for each of the periods indicated.

Three Months Ended March 31,
2024 2023 Variance
PAMC
Total Tons Produced (in millions) 6.5 7.0 (0.5)
Total Tons Sold (in millions) 6.1 6.7 (0.6)
Average Coal Revenue per Ton Sold $ 68.33 $ 84.32 $ (15.99)
Average Cash Cost of Coal Sold per Ton(1)
$ 40.29 $ 33.61 $ 6.68
Average Cash Margin per Ton Sold(1)
$ 28.04 $ 50.71 $ (22.67)
Adjusted EBITDA (in thousands)(1)
$ 169,333 $ 330,963 $ (161,630)
CONSOL Marine Terminal
Throughput Tons (in millions) 4.5 4.6 (0.1)
Adjusted EBITDA (in thousands)(1)
$ 16,840 $ 20,615 $ (3,775)

(1) Adjusted EBITDA is a non-GAAP financial measure, and average cash cost of coal sold per ton and average cash margin per ton sold are operating ratios derived from non-GAAP financial measures. See "How We Evaluate Our Operations - Reconciliation of Non-GAAP Financial Measures"above for an explanation and reconciliation of these amounts to the nearest GAAP measures.

PAMC ANALYSIS:

Coal Production

The table below presents total tons produced (in thousands) from the Pennsylvania Mining Complex for the periods indicated:

Three Months Ended March 31,
Mine 2024 2023 Variance
Bailey 2,764 3,273 (509)
Enlow Fork 2,446 2,406 40
Harvey 1,291 1,358 (67)
Total 6,501 7,037 (536)

Coal production was 6.5 million tons for the three months ended March 31, 2024, compared to 7.0 million tons for the three months ended March 31, 2023. The PAMC's coal production decreased in the period-to-period comparison. Three longwall moves in the first quarter of 2024 limited production, but each of these moves was completed timely and efficiently. There were no longwall moves in the first quarter of 2023.

Coal Operations

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
34
Table of Contents
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.

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.

CONSOL MARINE TERMINAL ANALYSIS:

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.

Vessel access to, and export capability from, the CONSOL Marine Terminal was restricted on March 26, 2024 after the Francis Scott Key Bridge collapsed. The harbor will remain closed and access to the CONSOL Marine Terminal will not be restored until a viable shipping lane reopens, which is estimated by agency officials to occur by the end of May 2024. Management is working diligently to minimize the disruption to our business and address the 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.
Liquidity and Capital Resources
CONSOL Energy's potential sources of liquidity include cash generated from operations, cash on hand, short-term investments of U.S. Treasury securities, borrowings under the revolving credit facility and securitization facility (which are discussed below), and, if necessary, the ability to issue additional equity or debt securities. The Company believes that cash generated from these sources, without needing to issue additional equity or debt securities, will be sufficient to meet its short-term working capital requirements, long-term capital expenditure requirements, and debt servicing obligations, as well as to provide required letters of credit.
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.
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:

(in millions) March 31, 2024
Cash and Cash Equivalents $ 173
Short-Term Investments 83
256
Revolving Credit Facility - Current Availability 355
Less: Letters of Credit Outstanding (133)
Total Liquidity $ 478
Events that negatively impact our overall financial condition and liquidity could result in our inability to comply with our credit facility's financial covenants. This could limit our access to our credit facilities if we are unable to obtain waivers from our lenders or amend the credit facilities. Additionally, access to capital remains challenging for the Company's industry as a result of banking, institutional and investor environmental, social and governance ("ESG") requirements and limitations, which tend to discourage investment in coal and other fossil fuel companies. However, the Company expects to
35
Table of Contents
maintain adequate liquidity through its operating cash flow, cash and cash equivalents on hand, and short-term investments, as well as its revolving credit facility and securitization facility, to fund its working capital needs and capital expenditures in the short-term and long-term.
Uncertainty in the financial markets brings additional potential risks to CONSOL Energy. These risks include a reduction of our ability to raise capital in the equity markets, less availability and higher costs of additional credit and potential counterparty defaults. Overall market disruptions, including as a result of recent or additional bank failures, rising interest rates and sustained high inflation, may impact the Company's collection of trade receivables. As a result, CONSOL Energy regularly monitors the creditworthiness of its customers and counterparties and manages credit exposure through payment terms, credit limits, prepayments and security.

Over the past few years, the insurance and surety markets have been increasingly challenging, particularly for coal companies. We have experienced rising premiums, reduced coverage and/or fewer providers willing to underwrite policies and surety bonds. Terms have generally become more unfavorable, including increases in the amount of collateral required to secure surety bonds. However, more recently, we have seen insurance rates stabilize and even decrease on certain lines of coverage, as new insurance carriers have entered the market. Further cost burdens on our ability to maintain adequate insurance and bond coverage may adversely impact our operations, financial position and liquidity.

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.

Cash Flows (in millions)
Three Months Ended March 31,
2024 2023 Change
Cash Provided by Operating Activities $ 77 $ 249 $ (172)
Cash Used in Investing Activities $ (36) $ (103) $ 67
Cash Used in Financing Activities $ (68) $ (226) $ 158
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.
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.
Three Months Ended March 31,
2024 2023 Change
Equipment Purchases and Rebuilds $ 25 $ 12 $ 13
Building and Infrastructure 12 14 (2)
Solid Waste Disposal Project 3 4 (1)
IS&T Infrastructure 1 2 (1)
Other 1 2 (1)
Total Capital Expenditures $ 42 $ 34 $ 8
36
Table of Contents
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.
Revolving Credit Facility
In November 2017, CONSOL Energy entered into a revolving credit facility with PNC Bank, N.A. (the "Revolving Credit Facility"). The Revolving Credit Facility has been amended several times, the most recent of which occurred in June 2023. This amendment increased the available revolving commitments from $260 million to $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. The maturity date of the Revolving Credit Facility is July 18, 2026.
Borrowings under the Company's Revolving Credit Facility bear interest at a floating rate that is, at the Company's option, either (i) SOFR plus the applicable SOFR adjustment (as defined therein) depending on the applicable interest period plus an applicable margin or (ii) an alternate base rate plus an applicable margin. The applicable margin for the Revolving Credit Facility depends on the Company's total net leverage ratio and this rate resets quarterly. Obligations under the Revolving Credit Facility are guaranteed by (i) all owners of the PAMC held by the Company, (ii) any other members of the Company's group that own any portion of the collateral securing the Revolving Credit Facility, and (iii) subject to certain customary exceptions and agreed materiality thresholds, all other existing or future direct or indirect wholly-owned restricted subsidiaries of the Company. The obligations are secured by, subject to certain exceptions (including a limitation of pledges of equity interests in certain subsidiaries and certain thresholds with respect to real property), a first-priority lien on (i) the Company's interest in the Pennsylvania Mining Complex, (ii) the equity interests in PA Mining Complex LP held by the Company, (iii) the CONSOL Marine Terminal, (iv) the Itmann Mining Complex, and (v) the 1.3 billion tons of Greenfield Reserves and Resources.
The Revolving Credit Facility contains a number of customary affirmative covenants and a number of negative covenants, including (subject to certain exceptions) limitations on (among other things): indebtedness, liens, investments, acquisitions, dispositions, restricted payments and prepayments of junior indebtedness.
The Revolving Credit Facility also includes financial covenants, including (i) a maximum first lien gross leverage ratio, (ii) a maximum total net leverage ratio, and (iii) a minimum fixed charge coverage ratio. The maximum first lien gross leverage ratio is calculated as the ratio of Consolidated First Lien Debt to Consolidated EBITDA. Consolidated EBITDA, as used in the covenant calculation, excludes non-cash compensation expenses, nonrecurring transaction expenses, extraordinary gains and losses, gains and losses on discontinued operations and gains and losses on debt extinguishment. The maximum total net leverage ratio is calculated as the ratio of Consolidated Indebtedness, minus Cash on Hand, to Consolidated EBITDA. The minimum fixed charge coverage ratio is calculated as the ratio of Consolidated EBITDA to Consolidated Fixed Charges. Consolidated Fixed Charges, as used in the covenant calculation, include cash interest payments, cash payments for income taxes, scheduled debt repayments, Maintenance Capital Expenditures and cash payments related to legacy employee liabilities to the extent in excess of amounts accrued in the calculation of Consolidated EBITDA. Under the Revolving Credit Facility, the maximum first lien gross leverage ratio shall be 1.50 to 1.00, the maximum total net leverage ratio shall be 2.50 to 1.00 and the minimum fixed charge coverage ratio shall be 1.10 to 1.00.
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.
The Revolving Credit Facility contains customary events of default, including with respect to a failure to make payments when due, cross-default and cross-judgment default and certain bankruptcy and insolvency events.
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 $133million 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.
37
Table of Contents
Securitization Facility
At March 31, 2024, CONSOL Energy and certain of its U.S. subsidiaries are parties to a trade accounts receivable securitization facility with financial institutions for the sale on a continuous basis of eligible trade accounts receivable. In July 2022, the securitization facility was amended to, among other things, extend the maturity date to July 29, 2025.
Pursuant to the securitization facility, CONSOL Thermal Holdings LLC, an indirect, wholly-owned subsidiary of the Company, sells trade receivables to CONSOL Pennsylvania Coal Company LLC, a wholly-owned subsidiary of the Company. CONSOL Marine Terminals LLC, a wholly-owned subsidiary of the Company, and CONSOL Pennsylvania Coal Company LLC sell and/or contribute trade receivables (including receivables sold to CONSOL Pennsylvania Coal Company LLC by CONSOL Thermal Holdings LLC) to CONSOL Funding LLC, a wholly-owned subsidiary of the Company (the "SPV"). The SPV, in turn, pledges its interests in the receivables to PNC Bank, N.A., which either makes loans or issues letters of credit on behalf of the SPV. The maximum amount of advances and letters of credit outstanding under the securitization facility may not exceed $100 million.
Loans under the securitization facility accrue interest at a reserve-adjusted market index rate equal to the applicable term SOFR rate. Loans and letters of credit under the securitization facility also accrue a program fee and a letter of credit participation fee, respectively, ranging from 2.00% to 2.50% per annum depending on the total net leverage ratio of CONSOL Energy. In addition, the SPV paid certain structuring fees to PNC Capital Markets LLC and pays other customary fees to the lenders, including a fee on unused commitments equal to 0.60% per annum.
The agreements comprising the securitization facility contain various customary representations and warranties, covenants and default provisions which provide for the termination and acceleration of the commitments and loans under the securitization facility in certain circumstances including, but not limited to, failure to make payments when due, breach of representation, warranty or covenant, certain insolvency events or failure to maintain the security interest in the trade receivables, and defaults under other material indebtedness. CONSOL Energy guarantees the performance of the obligations of CONSOL Thermal Holdings LLC, CONSOL Marine Terminals LLC and CONSOL Pennsylvania Coal Company LLC under the securitization, and will guarantee the obligations of any additional originators or successor servicer that may become party to the securitization. However, neither CONSOL Energy nor its affiliates will guarantee collectability of receivables or the creditworthiness of obligors thereunder.
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.
Pennsylvania Economic Development Financing Authority Bonds
In April 2021, CONSOL Energy borrowed the proceeds received from the sale of tax-exempt bonds issued by PEDFA in an aggregate principal amount of $75 million (the "PEDFA Bonds"). The PEDFA Bonds bear interest at a fixed rate of 9.00% for an initial term of seven years. The PEDFA Bonds mature on April 1, 2051 but are subject to mandatory purchase by the Company on April 13, 2028, at the expiration of the initial term rate period. The PEDFA Bonds were issued pursuant to an indenture (the "PEDFA Indenture") dated as of April 1, 2021, by and between PEDFA and Wilmington Trust, N.A., a national banking association, as trustee (the "PEDFA Notes Trustee"). PEDFA made a loan of the proceeds of the PEDFA Bonds to the Company pursuant to a Loan Agreement (the "Loan Agreement") dated as of April 1, 2021 between PEDFA and the Company. Under the terms of the Loan Agreement, the Company agreed to make all payments of principal, interest and other amounts at any time due on the PEDFA Bonds or under the PEDFA Indenture. PEDFA assigned its rights as lender under the Loan Agreement, excluding certain reserved rights, to the PEDFA Notes Trustee. Certain subsidiaries of the Company (the "PEDFA Notes Guarantors") executed a Guaranty Agreement (the "Guaranty") dated as of April 1, 2021 in favor of the PEDFA Notes Trustee, guarantying the obligations of the Company under the Loan Agreement to pay the PEDFA Bonds when and as due. The obligations of the Company under the Loan Agreement and of the PEDFA Notes Guarantors under the Guaranty are secured by second priority liens on substantially all of the assets of the Company and the PEDFA Notes Guarantors. The Loan Agreement and Guaranty incorporate by reference covenants in the Indenture, dated as of November 13, 2017, by and between the Company and UMB Bank, N.A., a national banking association, as trustee and collateral trustee, under which the Second Lien Notes were issued, including covenants that limited the ability of the Company and certain subsidiaries of the Company, as guarantors, to (i) incur, assume or guarantee additional indebtedness or issue preferred stock; (ii) create liens to secure indebtedness; (iii) declare or pay dividends on the Company's common stock, redeem stock or make other distributions to the Company's stockholders; (iv) make investments; (v) pay or make dividends, loans or other asset transfers from the Company's restricted subsidiaries; (vi) merge or consolidate, or sell, transfer, lease or dispose of substantially all of the Company's assets; (vii)
38
Table of Contents
sell or otherwise dispose of certain assets, including equity interests in subsidiaries; (viii) enter into transactions with affiliates; and (ix) create unrestricted subsidiaries. These covenants were subject to important exceptions and qualifications.
Material Cash Requirements
CONSOL Energy expects to make payments of $14 million on its long-term debt obligations, including interest, in the next 12 months. Refer to Note 13 - Long-Term Debt 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.
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.
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.
CONSOL Energy believes it will be able to satisfy these material requirements with cash generated from operations, cash on hand, short-term investments, borrowings under the revolving credit facility and securitization facility, and, if necessary, cash generated from its ability to issue additional equity or debt securities.
Debt
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:
•An aggregate principal amount of $103 million of industrial revenue bonds which were issued to finance the CONSOL Marine Terminal, which bear interest at 5.75% per annum and mature in September 2025. Interest on the industrial revenue bonds is payable on March 1 and September 1 of each year. Payment of the principal and interest on the notes is guaranteed by CONSOL Energy.
•An aggregate principal amount of $75 million of PEDFA Bonds, which were issued to finance the ongoing expansion of the coal refuse disposal area at the Central Preparation Plant, which bear interest at 9.00% per annum for an initial term of seven years and mature in April 2051. Interest on the PEDFA Bonds is payable on February 1 and August 1 of each year.
•An aggregate principal amount of $11 million of finance leases with a weighted average interest rate of 6.83%.
•Advanced royalty commitments of $6 million with a weighted average interest rate of 8.80% per annum.
•An aggregate principal amount of $1 million of other debt arrangements.
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.
Stock and Debt Repurchases
In December 2017, CONSOL Energy's Board of Directors approved a program to repurchase, from time to time, the Company's outstanding shares of common stock or its Second Lien Notes. Since the program's inception, the Company's Board of Directors has subsequently amended the program several times. The most recent amendment occurred in April 2023, in which the aggregate limit of the Company's repurchase authority was raised to $1 billion. The program terminates on December 31, 2024.
Under the terms of the program, CONSOL Energy is permitted to make repurchases in the open market, in privately negotiated transactions, accelerated repurchase programs or in structured share repurchase programs. CONSOL Energy is also authorized to enter into one or more 10b5-1 plans with respect to any of the repurchases. Any repurchases of common stock or notes are to be funded from available cash on hand or short-term borrowings. The program does not obligate CONSOL Energy to acquire any particular amount of its common stock or notes, and the program can be modified or suspended at any time at the Company's discretion. The program is conducted in compliance with applicable legal requirements imposed by any credit agreement, receivables purchase agreement or indenture.
39
Table of Contents
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.
Total Equity and Dividends
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.
The declaration and payment of dividends by CONSOL Energy is at the discretion of CONSOL Energy's Board of Directors, and no assurance can be given that CONSOL Energy will return to declaring and paying dividends in the future. The determination to pay dividends in the future will depend upon, among other things, general business conditions, CONSOL Energy's financial results, shareholder return priorities, contractual or legal restrictions regarding the payment of dividends and such other factors as the Board of Directors deems relevant. Certain of the Company's financing arrangements may limit CONSOL Energy's ability to pay dividends and repurchase stock based on certain covenants.
Critical Accounting Estimates
CONSOL Energy prepares its financial statements in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires management to make judgments, estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses, as well as the disclosure of contingent assets and liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There have been no material changes to the Company's critical accounting estimates from the Annual Report on Form 10-K for the year ended December 31, 2023.
Forward-Looking Statements
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:
•deterioration in economic conditions (including continued inflation) or changes in consumption patterns of our customers may decrease demand for our products, impair our ability to collect customer receivables and impair our ability to access capital;
•volatility and wide fluctuation in coal prices based upon a number of factors beyond our control;
•the effects pandemics may have on our business and results of operations and on the global economy;
•an extended decline in the prices we receive for our coal affecting our operating results and cash flows;
•significant downtime of our equipment or inability to obtain equipment, parts or raw materials;
•decreases in the availability of, or increases in the price of, commodities or capital equipment used in our coal mining operations;
•our reliance on major customers, our ability to collect payment from our customers and uncertainty in connection with our customer contracts;
•our inability to acquire additional coal reserves or resources that are economically recoverable;
•the availability and reliability of transportation facilities and other systems that deliver our coal to market and fluctuations in transportation costs;
•a loss of our competitive position;
•foreign currency fluctuations that could adversely affect the competitiveness of our coal abroad;
•the risks related to the fact that a significant portion of our production is sold in international markets and our compliance with export control and anti-corruption laws;
40
Table of Contents
•coal users switching to other fuels in order to comply with various environmental standards related to coal combustion emissions;
•the impact of current and future regulations to address climate change, the discharge, disposal and clean-up of hazardous substances and wastes and employee health and safety on our operating costs as well as on the market for coal;
•the risks inherent in coal operations, including being subject to unexpected disruptions caused by adverse geological conditions, equipment failure, delays in moving out longwall equipment, railroad derailments, security breaches or terroristic acts and other hazards, delays in the completion of significant construction or repair of equipment, fires, explosions, seismic activities, accidents and weather conditions;
•the risks associated with operating primarily in a single geographic area;
•failure to obtain or renew surety bonds or insurance coverages on acceptable terms;
•the effects of coordinating our operations with oil and natural gas drillers and distributors operating on our land;
•our inability to obtain financing for capital expenditures on satisfactory terms;
•the effect of new or existing laws or regulations or tariffs and other trade measures;
•our inability to find suitable acquisition targets or integrating the operations of future acquisitions into our operations;
•obtaining, maintaining and renewing governmental permits and approvals for our coal operations;
•the effects of asset retirement obligations, employee-related long-term liabilities and certain other liabilities;
•the effects of global conflicts on commodity prices and supply chains;
•uncertainties in estimating our economically recoverable coal reserves;
•the outcomes of various legal proceedings, including those which are more fully described herein;
•defects in our chain of title for our undeveloped reserves or failure to acquire additional property to perfect our title to coal rights;
•the risk of our debt agreements, our debt and changes in interest rates affecting our operating results and cash flows;
•information theft, data corruption, operational disruption and/or financial loss resulting from a terrorist attack or cyber incident;
•the potential failure to retain and attract qualified personnel of the Company;
•failure to maintain effective internal controls over financial reporting;
•the effects of our securities being excluded from certain investment funds as a result of increased ESG practices;
•uncertainty with respect to the Company's common stock, potential stock price volatility and future dilution;
•uncertainty regarding the timing and value of any dividends we may declare;
•uncertainty as to whether we will repurchase shares of our common stock or outstanding debt securities;
•inability of stockholders to bring legal action against us in any forum other than the state courts of Delaware; and
•other unforeseen factors.
The above list of factors is not exhaustive or necessarily in order of importance. Additional information concerning factors that could cause actual results to differ materially from those in forward-looking statements include those discussed under "Risk Factors" elsewhere in this report and the other filings we make with the Securities and Exchange Commission ("SEC"). The Company disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's exposures to market risk have not materially changed since December 31, 2023. Please see these quantitative and qualitative disclosures about market risk in Item 7A, "Quantitative and Qualitative Disclosures About Market Risk," of our Annual Report on Form 10-K for the year ended December 31, 2023.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
CONSOL Energy, under the supervision and with the participation of its management, including CONSOL Energy's principal executive officer and principal financial officer, evaluated the effectiveness of the Company's "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, CONSOL Energy's principal executive officer and principal financial officer have concluded that the Company's disclosure controls and procedures are effective as of March 31, 2024 to ensure that information required to be disclosed by CONSOL Energy in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and includes controls and procedures designed to ensure that information required to be disclosed by CONSOL Energy in such reports is accumulated and communicated to CONSOL Energy's management, including CONSOL Energy's principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
41
Table of Contents
Changes in Internal Controls over Financial Reporting
During the fiscal quarter covered by this Quarterly Report on Form 10-Q, there were no changes in the Company's internal controls over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act, that materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting.
It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events.
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Our operations are subject to a variety of risks and disputes normally incidental to our business. As a result, we may, at any given time, be a defendant in various legal proceedings and litigation arising in the ordinary course of business. However, we are not currently subject to any material litigation, except as disclosed in Note 13 - Commitments and Contingent Liabilities in the Notes to the Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q, incorporated herein by this reference.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this quarterly report, you should carefully consider the factors described in "Part 1 - Item 1A. Risk Factors" of CONSOL Energy's 2023 Form 10-K. These described risks are not the only risks the Company faces. Additional risks and uncertainties not currently known to CONSOL Energy or that the Company currently deems to be immaterial also may materially adversely affect CONSOL Energy's business, financial condition and/or operating results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The following table sets forth repurchases of the Company's common stock during the three months ended March 31, 2024:
(a) (b) (c) (d)
Period
Total Number of Shares Purchased (1)
Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs (000s omitted) (2)
January 1, 2024 - January 31, 2024 306,979 $ 97.73 306,979 $ 347,179
(3)
February 1, 2024 - February 29, 2024 84,102 $ 82.40 84,102 $ 340,249
(3)
March 1, 2024 - March 31, 2024 224,207 $ 84.53 224,207 $ 321,297
(3)
(1) In December 2017, CONSOL Energy's Board of Directors approved a program to repurchase, from time to time, the Company's outstanding shares of common stock or its 11.00% Senior Secured Second Lien Notes due 2025. Since the inception of the program, CONSOL Energy Inc.'s Board of Directors has amended the program on several separate occasions. As a result of such amendments, the Company may now repurchase up to $1 billion of its stock and debt until December 31, 2024. As of May 7, 2024, approximately $310 million remained available under the stock and debt repurchase program. The repurchases will be effected from time to time on the open market or in privately negotiated transactions or under a Rule 10b5-1 plan. The program does not obligate CONSOL Energy to acquire any particular amount of its common stock or notes, and the program can be modified or suspended at any time at the Company's discretion.
(2) Management cannot estimate the number of shares that will be repurchased because purchases are made based upon the Company's stock price, the Company's financial outlook and alternative investment options.
(3) In the three months ended March 31, 2024, CONSOL Energy utilized approximately $56 million to repurchase its common stock.

42
Table of Contents
Dividends

In the fiscal year ended December 31, 2022, the Company initiated an enhanced shareholder capital return program through repurchases of shares of common stock and the payment of dividends. The Company currently intends, subject to the discretion of the Company's Board of Directors, to return a planned aggregate of approximately 75% of the Company's quarterly free cash flow in the form of share repurchases.
The declaration and payment of dividends by CONSOL Energy is at the discretion of CONSOL Energy's Board of Directors, and no assurance can be given that CONSOL Energy will return to declaring and paying dividends in the future. The determination to pay dividends in the future will depend upon, among other things, general business conditions, CONSOL Energy's financial results, shareholder return priorities, contractual or legal restrictions regarding the payment of dividends and such other factors as the Board of Directors deems relevant. Certain of the Company's financing arrangements may limit CONSOL Energy's ability to pay dividends and repurchase stock based on certain covenants.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95 to this Quarterly Report on Form 10-Q.
ITEM 5. OTHER INFORMATION
Rule 10b5-1 Trading Plans

Our executive officers and directors may from time to time enter into plans or arrangements for the purchase or sale of our Common Stock that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. During the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.




























43
Table of Contents
ITEM 6. EXHIBITS

Exhibits Description Method of Filing
3.1
Amended and Restated Certificate of Incorporation of the Company Filed as Exhibit 3.1 to Form 8-K (File No. 001-38147) filed on December 4, 2017
3.2
Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company Filed as Exhibit 3.1 to Form 8-K (File No. 001-38147) filed on May 8, 2020
3.3
Second Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company Filed as Exhibit 3.1 to Form 8-K (File No. 001-38147) filed on May 6, 2024
3.4
Third Amended and Restated Bylaws of the Company Filed as Exhibit 3.2 to Form 8-K (File No. 001-38147) filed on May 6, 2024
10.1
Form of Notice of Performance-based Restricted Stock Unit Award and Terms and Conditions* Filed herewith
10.2
Form of Notice of Service-based Restricted Stock Unit Award and Terms and Conditions* Filed herewith
10.3
2024 Executive Short-Term Incentive Program Terms and Conditions* Filed herewith
31.1
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Filed herewith
31.2
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Filed herewith
32.1
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Furnished herewith
32.2
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Furnished herewith
95
Mine Safety and Health Administration Safety Data Filed herewith
101
Interactive Data File (Form 10-Q for the quarterly period ended March 31, 2024, furnished in Inline XBRL)
Filed herewith
104 Cover Page Interactive Data File (formatted as Inline XBRL) Contained in Exhibit 101
*Indicates management contract or compensatory plan or arrangement.
44
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CONSOL ENERGY INC.
May 7, 2024 By: /s/ JAMES A. BROCK
James A. Brock
Director, Chief Executive Officer
(Principal Executive Officer)
May 7, 2024 By: /s/ MITESHKUMAR B. THAKKAR
Miteshkumar B. Thakkar
Chief Financial Officer and President
(Principal Financial Officer)
May 7, 2024 By: /s/ JOHN M. ROTHKA
John M. Rothka
Chief Accounting Officer
(Principal Accounting Officer)
45