Consol Energy Inc (NYSE:CEIX) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 11:00 am ET


Consol Energy Inc (NYSE:CEIX) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning. And welcome to the CEIX and CCR Third Quarter 2019 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]

After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note that this event is being recorded.

I would now like to turn the conference over to Mitesh Thakkar. Please go ahead.

Mitesh Thakkar

Thank you, Nick. And good morning, everyone. Welcome to CONSOL Energy and CONSOL Coal Resources third quarter 2019 earnings conference call. Any forward-looking statements or comments we make about future expectations, are subject to some risk, which we have outlined in our press releases or in our 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 our press releases and furnished to the SEC on the Form 8-K.

You can also find additional information on our websites, and With me today are, Jimmy Brock, our Chief Executive Officer; David Khani, our Chief Financial Officer; and Jim McCaffrey, our Chief Commercial Officer. In his prepared remarks, Jimmy, will provide a recap of our significant achievements during the third quarter of '19 and then update on our pre-growth initiatives.

David will then discuss some macro trends, the detailed financial performance for 3Q '19 and our 2019 guidance. During the prepared remarks, we will refer to certain slides that were posted on our website in advance of today's call. After the prepared remarks, all three executives will participate in the Q&A session.

With that, let me turn it over to our CEO, Jimmy Brock.

James A. Brock

Thank you, Mitesh. And good morning everyone. I am pleased to announce that this morning, we reported a solid third quarter operating and financial performance, while continuing to make significant progress on various fronts that we believe will ultimately be value accretive to our shareholders.

Despite the ongoing volatility in the commodity and capital markets, we made progress on all key fronts. Our operations team turned in a record third quarter production as they were able to leverage our strong sales contract, which the marketing team has been building over several years.

On the finance front, we were very active in the open market repurchase in our debt and equity securities with the ultimate goal of reducing our cost of capital and accelerating shareholder value creation, as we took advantage of the dislocations credit in the marketplace.

Consistent with last quarter, we continued to be rate of return driven, and deployed most of our capital toward buying back our debt and equity securities rather than toward any of our growth initiatives. As we believe those remain the most undervalued avenues of per share value. As a result, during the quarter CONSOL Energy repurchased approximately 5% of the company's outstanding common shares in the open market for just over $23 million. We also made net payments of total debt