PITTSBURGH, Sept. 18, 2017 /PRNewswire/ -- CNX Coal
Resources LP (NYSE: CNXC) announced today that the Pennsylvania
Department of Environmental Protection (DEP) is requiring more time
to evaluate the approval of the Bailey mine permit for the 4L
panel, and as a result, the company has decided to move the
longwall to another panel in order to resume operations. The
company expects the longwall move to last approximately four weeks
and is implementing several measures in order to mitigate the
production impact from this delay. These measures include working
additional unscheduled shifts at the remaining four longwalls,
compared to the previous five and a half day schedule. This
operating schedule change will also allow the company to meet its
customers' needs and to immediately recall some of the previously
furloughed workers.
As a result of increasing the operating schedule to offset the
production impact from the longwall move delay, the company
reaffirms its previously stated full year 2017 guidance:
- Adjusted EBITDA1 of $95-$105
million
- Capital expenditure of $28-$30
million
- Sales guidance of 6.4-6.9 million tons
The company continues to work closely with the necessary
agencies to obtain operating permits, which allow for continuity of
longwall mining operations. The Pennsylvania Mining Complex
operates five total longwalls with approved permits as far out as
ten years in advance.
About CNX Coal Resources LP
CNX Coal Resources is a growth-oriented master limited
partnership formed by CONSOL Energy Inc. (NYSE: CNX) to manage and
further develop all of CONSOL's active coal operations in
Pennsylvania. Its assets include a 25% undivided interest in,
and operational control over, CONSOL's Pennsylvania mining complex, which consists of
three underground mines and related infrastructure. More
information is available on our website www.cnxlp.com.
Cautionary Statements
Various statements in this release, including those that express
a belief, expectation or intention, may be considered
forward-looking statements under federal securities laws including
Section 21E of the Securities Exchange Act of 1934 (the "Exchange
Act") that involve risks and uncertainties that could cause actual
results to differ materially from projected results. Accordingly,
investors should not place undue reliance on forward-looking
statements as a prediction of actual results. The forward-looking
statements may include projections and estimates concerning the
timing and success of specific projects and our future production,
revenues, income and capital spending. When we use the words
"believe," "intend," "expect," "may," "should," "anticipate,"
"could," "estimate," "plan," "predict," "project," or their
negatives, or other similar expressions, the statements which
include those words are usually forward-looking statements. When we
describe strategy that involves risks or uncertainties, we are
making forward-looking statements. The forward-looking statements
in this press release speak only as of the date of this press
release; we disclaim any obligation to update these statements. We
have based these forward-looking statements on our current
expectations and assumptions about future events. While our
management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. These risks, contingencies and
uncertainties relate to, among other matters, the following:
generation of sufficient distributable cash flow to support the
payment of minimum quarterly distributions; changes in coal prices
or the costs of mining or transporting coal; uncertainty in
estimating economically recoverable coal reserves and replacement
of reserves; our ability to develop our existing coal reserves and
successfully execute our mining plans; changes in general economic
conditions, both domestically and globally; competitive conditions
within the coal industry; changes in the consumption patterns of
coal-fired power plants and steelmakers and other factors affecting
the demand for coal by coal-fired power plants and steelmakers; the
availability and price of coal to the consumer compared to the
price of alternative and competing fuels; competition from the same
and alternative energy sources; energy efficiency and technology
trends; our ability to successfully implement our business plan;
the price and availability of debt and equity financing; operating
hazards and other risks incidental to coal mining; major equipment
failures and difficulties in obtaining equipment, parts and raw
materials; availability, reliability and costs of transporting
coal; adverse or abnormal geologic conditions, which may be
unforeseen; natural disasters, weather-related delays, casualty
losses and other matters beyond our control; interest rates; labor
availability, relations and other workforce factors; defaults by
our sponsor under our operating agreement and employee services
agreement; changes in availability and cost of capital; changes in
our tax status; delays in the receipt of, failure to receive or
revocation of necessary governmental permits; defects in title or
loss of any leasehold interests with respect to our properties; the
effect of existing and future laws and government regulations,
including the enforcement and interpretation of environmental laws
thereof; the effect of new or expanded greenhouse gas regulations;
the effects of litigation; and other factors discussed in our 2016
Form 10-K under "Risk Factors," as updated by any subsequent Form
10-Qs, which are on file at the Securities and Exchange
Commission.
1 Adjusted EBITDA is a non-GAAP financial measure
defined as (i) net income (loss) before net interest expense,
depreciation, depletion and amortization, as adjusted for (ii)
certain non-cash items, such as long-term incentive awards
including phantom units under the CNX Coal Resources LP 2015
Long-Term Incentive Plan ("Unit Based Compensation"). At this
time, CNXC is unable to provide a reconciliation of Adjusted EBITDA
guidance to Net Income, the most comparable financial measure
calculated in accordance with GAAP, due to the unknown effect,
timing and potential significance of certain income statement
items.
Contacts:
Investor:
Mitesh Thakkar, (724) 485-3133
miteshthakkar@cnxlp.com
Media:
Zach Smith, (724) 485-4017
zacherysmith@cnxlp.com
View original content with
multimedia:http://www.prnewswire.com/news-releases/cnx-coal-resources-provides-update-on-the-bailey-mine-permit-300520911.html
SOURCE CNX Coal Resources LP