CONSOL Coal Resources LP (NYSE:CCR) Q2 2020 Earnings Conference Call - Final Transcript
Aug 10, 2020 • 11:00 am ET
Good day, and welcome to the CEIX and CCR Second Quarter 2020 Earnings Conference Call. [Operator Instructions]
I'd now like to turn the conference over to Nathan Tucker, Manager Finance & Investor Relations. Please go ahead.
Thank you, Cole, and good morning, everyone. Welcome to CONSOL Energy and CONSOL Coal Resources second quarter 2020 earnings conference call.
Any forward-looking statements or comments we make about future expectations are subject to some risks, which we have outlined in our press releases and in our SEC filings, and are considered forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. 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 Form 8-K. You can also find additional information regarding the companies on our websites www.consolenergy.com and www.ccrlp.com.
On the call with me today are Jimmy Brock, our Chief Executive Officer; Mitesh Thakkar, our Chief Financial Officer; and Jim McCaffrey, our Chief Commercial Officer. In his prepared remarks, Jimmy will provide a recap of our second quarter 2020 performance, specific insights on marketing and operations and an update on our ongoing response to the COVID-19 pandemic. Mitesh will then discuss our liability management program, financial results, cash preservation efforts and outlook for the remainder of 2020. After the prepared remarks, there will be a Q&A session, in which all three executives will participate.
With that, let me turn the call over to our CEO, Jimmy Brock.
Jimmy A. Brock
Thank you, Nate, and good morning, everyone. To this point, 2020 has been extremely challenging year for us, our industry and the U.S. and global economies. We first dealt with the weak demand early in the year due to warmer than normal winter, then the COVID-19 pandemic hit us all, with most economies across the world essentially grinding to a halt to try to stop the spread of this disease. This led to an unprecedented destruction in energy demand, specifically in the second quarter of 2020. From a demand perspective, Q2 '20 was the worst quarter that I've seen in my 40 plus year career and the most challenging market conditions we've experienced in the 30 plus year history of the Pennsylvania Mining Complex.
The widespread government imposed shutdowns caused by the COVID-19 pandemic created an unprecedented decline in energy demand, both domestically and abroad. In response, we idled our Enlow Fork mine early in the second quarter, ran our Bailey Mine on an as needed basis and went into cash preservation mode. I'm proud of our operations and corporate teams responding as we quickly pivoted and pulled back on discretionary spending in an effort to protect our liquidity.
The finance team moved early to secure an amendment to our credit agreement that essentially provides us with eight quarters of covenant relaxation. We'll also preserve full access to