Consol Energy Inc (NYSE:CEIX) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 03, 2018 • 10:00 am ET
Good morning and welcome to the CONSOL Energy and CONSOL Coal Resources' First Quarter 2018 Earnings Conference Call and webcast. All participants will be in a listen-only mode. (Operator Instructions). Please note, this event is being recorded.
I would now like to turn the conference over to Mitesh Thakkar, Director of Finance and Investor Relations. Mr. Thakkar, the floor is yours, sir.
Thank you, Mike, and good morning, everyone. Welcome to CONSOL Energy and CONSOL Coal Resources First Quarter 2018 Joint Earnings Conference Call. With me today are Jimmy Brock, our Chief Executive Officer; Dave Khani, our Chief Financial Officer; and Jim McCaffrey, our Chief Commercial Officer. We will start with prepared remarks by Jimmy and Dave and then open up the floor for the Q&A session. During the prepared remarks, we will refer to certain slides that are posted on our websites in advance of today's call.
As a reminder, any forward-looking statements or comments we make about future expectations are subject to business risks, which we have laid out for you in our press releases or in previous SEC filings. We do not undertake any obligations of updating any forward-looking statements for future events or otherwise. We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in the press releases, and furnished to the SEC on Form 8-K. You will also find additional information on our websites, www.consolenergy.com and www.ccrlp.com.
Before we start, I also wanted to note that this is a joint call for both companies. We will provide some additional information about CONSOL Energy's operations and financial results that are not included in CONSOL Coal Resources' operations and financial resource as appropriate.
With that, let me turn it over to our CEO, Jimmy Brock.
Thank you, Mitesh. Good morning, everyone and thank you for joining us on today's call. The CONSOL team delivered a very strong first quarter performance. We not only outperform some of our key operational metrics, but we were also able to accelerate some of our financial objectives. From a CEIX perspective, we commenced the delevering process and started returning capital to our shareholders through some debt and equity buybacks under the plan previously approved by the CEIX board. From a CCR perspective, we had record distribution coverage on an industry-leading distribution yield that allowed further debt reductions simultaneously.
We are also initiating some investment at the Pennsylvania Mining Complex and some really attractive efficiency improvement projects that should be beneficial to both companies. All of these was achieved due to our world-class asset base and our differentiated marketing and financial strategies. Some key highlights from the quarter include our Bailey Mine achieved record quarterly production in the first quarter of '18. Our marketing team was able to achieve the highest quarterly sales process for our coal since first quarter of 2015.
Our finance team was able to restructure some of the Pennsylvania Mining Complex operating leases which reduced the 2018 cash band by approximately