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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)
Delaware82-1954058
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
275 Technology Drive Suite 101
Canonsburg, PA 15317-9565
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueCEIXNew 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
Page
2

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

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:20242023
Coal Revenue$447,927 $583,379 
Terminal Revenue24,528 26,711 
Freight Revenue69,842 67,507 
Miscellaneous Other Income16,668 5,284 
Gain on Sale of Assets6,077 5,726 
Total Revenue and Other Income565,042 688,607 
Costs and Expenses:
Operating and Other Costs293,430 260,627 
Depreciation, Depletion and Amortization56,997 59,551 
Freight Expense69,842 67,507 
General and Administrative Costs20,633 17,298 
Loss on Debt Extinguishment 1,375 
Interest Expense5,406 10,279 
Total Costs and Expenses446,308 416,637 
Earnings Before Income Tax118,734 271,970 
Income Tax Expense16,843 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

CONSOL ENERGY INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
(unaudited)
Three Months Ended
March 31,
20242023
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

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 Investments82,583 81,932 
Accounts and Notes Receivable  
Trade Receivables, net163,544 147,612 
Other Receivables, net16,457 12,765 
Inventories109,490 88,154 
Other Current Assets69,088 71,172 
Total Current Assets613,713 601,006 
Property, Plant and Equipment:  
Property, Plant and Equipment5,594,414 5,552,404 
Less - Accumulated Depreciation, Depletion and Amortization3,699,743 3,649,281 
Total Property, Plant and Equipment—Net1,894,671 1,903,123 
Other Assets:  
Right of Use Asset - Operating Leases13,442 14,658 
Salary Retirement48,809 47,246 
Other Noncurrent Assets, net109,489 108,970 
Total Other Assets171,740 170,874 
TOTAL ASSETS$2,680,124 $2,675,003 
The accompanying notes are an integral part of these consolidated financial statements.
6

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 Debt8,549 11,106 
Operating Lease Liability, Current Portion4,468 4,769 
Other Accrued Liabilities264,978 290,606 
Total Current Liabilities417,296 443,724 
Long-Term Debt:
Long-Term Debt181,948 181,885 
Finance Lease Obligations3,523 4,182 
Total Long-Term Debt185,471 186,067 
Deferred Credits and Other Liabilities:
Postretirement Benefits Other Than Pensions206,901 207,908 
Pneumoconiosis Benefits153,983 154,943 
Asset Retirement Obligations211,757 212,621 
Workers’ Compensation39,437 39,144 
Salary Retirement20,769 20,808 
Operating Lease Liability9,517 10,385 
Deferred Income Taxes36,293 36,219 
Other Noncurrent Liabilities9,882 19,742 
Total Deferred Credits and Other Liabilities688,539 701,770 
TOTAL LIABILITIES1,291,306 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 Value536,163 547,861 
Retained Earnings1,001,162 944,342 
Accumulated Other Comprehensive Loss(148,801)(149,060)
TOTAL EQUITY1,388,818 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

CONSOL ENERGY INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Dollars in thousands)
Common StockCapital in Excess of Par ValueRetained EarningsAccumulated Other Comprehensive (Loss) IncomeTotal 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 Stock1 (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 StockCapital in Excess of Par ValueRetained EarningsAccumulated Other Comprehensive (Loss) IncomeTotal 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 Stock3 (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

CONSOL ENERGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
Three Months Ended
March 31,
20242023
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 Amortization56,997 59,551 
Gain on Sale of Assets(6,077)(5,726)
Stock-Based Compensation5,118 4,792 
Amortization of Debt Issuance Costs937 2,141 
Loss on Debt Extinguishment 1,375 
Deferred Income Taxes74 (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 Assets2,414 5,306 
Changes in Other Assets(1,382)(4,810)
Changes in Operating Liabilities:  
Accounts Payable3,180 (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 Activities77,484 248,511 
Cash Flows from Investing Activities:  
Capital Expenditures(42,352)(33,757)
Proceeds from Sales of Assets6,191 6,000 
Investments in Mining-Related Activities(23) 
Proceeds from Sales of Short-Term Investments15,543  
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 Period243,268 326,952 
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

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

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,
20242023
Anti-Dilutive Restricted Stock Units84 67,420 
Anti-Dilutive Performance Share Units 1,854 
84 69,274 

11

The computations for basic and dilutive earnings per share are as follows:
Dollars in thousands, except per share dataThree Months Ended
March 31,
20242023
Numerator:
Net Income$101,891 $230,377 
Denominator:
Weighted-average shares of common stock outstanding29,951,109 34,535,268 
Effect of dilutive shares122,553 616,333 
Weighted-average diluted shares of common stock outstanding30,073,662 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
DomesticExportTotal
Power Generation$164,733 $60,974 $225,707 
Industrial3,406 149,360 152,766 
Metallurgical13,257 56,197 69,454 
Total Coal Revenue181,396 266,531 447,927 
Terminal Revenue24,528 
Freight Revenue69,842 
Other Revenue4,392 
Total Revenue from Contracts with Customers$546,689 
Three Months Ended March 31, 2023
DomesticExportTotal
Power Generation$184,676 $115,835 $300,511 
Industrial6,508 185,610 192,118 
Metallurgical4,325 86,425 90,750 
Total Coal Revenue195,509 387,870 583,379 
Terminal Revenue26,711 
Freight Revenue67,507 
Total Revenue from Contracts with Customers$677,597 

12

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

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 BenefitsOther Post-Employment Benefits
Three Months Ended
March 31,
Three Months Ended
March 31,
2024202320242023
Service Cost$302 $304 $ $ 
Interest Cost6,431 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

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:
CWPWorkers' Compensation
Three Months Ended
March 31,
Three Months Ended
March 31,
2024202320242023
Service Cost$746 $578 $1,464 $1,399 
Interest Cost2,066 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,
20242023
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

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 CostAllowance for Credit LossesGainsLossesFair Value
U.S. Treasury Securities$82,642 $ $ $(59)$82,583 
December 31, 2023
Gross Unrealized
Amortized CostAllowance for Credit LossesGainsLossesFair 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

Trade ReceivablesOther Non-Trade Contractual
Arrangements
Beginning Balance, December 31, 2023$466 $7,504 
Provision for expected credit losses222 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 
Supplies70,281 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

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 Lands907,097 906,343 
Airshafts497,718 492,806 
Mine Development366,260 366,260 
Advance Mining Royalties329,112 328,340 
Total Property, Plant and Equipment5,594,414 5,552,404 
Less: Accumulated Depreciation, Depletion and Amortization3,699,743 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 Benefits40,208 73,763 
Accrued Income Taxes15,557  
Accrued Other Taxes12,742 12,276 
Deferred Revenue7,071 9,517 
Accrued Interest3,120 6,283 
Other8,195 10,457 
Current Portion of Long-Term Liabilities:  
Asset Retirement Obligations28,571 28,571 
Postretirement Benefits Other than Pensions19,297 19,327 
Pneumoconiosis Benefits14,880 15,071 
Workers' Compensation9,666 10,019 
Total Other Accrued Liabilities$264,978 $290,606 
18

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 Arrangements1,166 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

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

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

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 CommittedLess Than 1 Year1-3 Years3-5 YearsBeyond 5 Years
Letters of Credit:
Employee-Related$48,020 $43,420 $4,600 $ $ 
Environmental398 398    
Other134,841 129,805 5,036   
Total Letters of Credit$183,259 $173,623 $9,636 $ $ 
Surety Bonds:
Employee-Related$80,210 $80,210 $ $ $ 
Environmental527,064 527,064    
Other4,100 4,100    
Total Surety Bonds$611,374 $611,374 $ $ $ 
22

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 atFair Value Measurements at
March 31, 2024December 31, 2023
DescriptionLevel 1Level 2Level 3Level 1Level 2Level 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, 2024December 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

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:
PAMCCONSOL Marine TerminalOther, Corporate and EliminationsConsolidated
Coal Revenue$416,187 $ $31,740 $447,927 
Terminal Revenue 24,528  24,528 
Freight Revenue66,900  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:
PAMCCONSOL Marine TerminalOther, Corporate and EliminationsConsolidated
Coal Revenue$563,337 $ $20,042 $583,379 
Terminal Revenue 26,711  26,711 
Freight Revenue64,337  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

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,
20242023
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
PAMCCONSOL Marine TerminalOtherConsolidated
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 Amortization48,269 1,241 7,487 56,997 
Stock-Based Compensation4,186 247 685 5,118 
Adjusted EBITDA$169,333 $16,840 $(4,420)$181,753 
Three Months Ended March 31, 2023
PAMCCONSOL Marine TerminalOtherConsolidated
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 Amortization51,371 1,156 7,024 59,551 
Stock-Based Compensation4,025 144 623 4,792 
Loss on Debt Extinguishment  1,375 1,375 
Adjusted EBITDA$330,963 $20,615 $(5,278)$346,300 

25

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.


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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
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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;
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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,
20242023
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)6.16.7
Average Cost of Coal Sold per Ton$46.90 $40.18 
Less: Depreciation, Depletion and Amortization Costs per Ton Sold6.61 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.

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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,
20242023
Total Coal Revenue (PAMC Segment)$416,187 $563,337 
Operating and Other Costs293,430 260,627 
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)6.16.7
Average Coal Revenue per Ton Sold$68.33 $84.32 
Less: Average Cash Cost of Coal Sold per Ton40.29 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
PAMCCONSOL Marine TerminalOtherConsolidated
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 & Amortization48,269 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 
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Three Months Ended March 31, 2023
PAMCCONSOL Marine TerminalOtherConsolidated
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 & Amortization51,371 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 Adjustments4,025 144 1,998 6,167 
    
Adjusted EBITDA$330,963 $20,615 $(5,278)$346,300