CONSOL Coal Resources LP reported earnings results for the second quarter ended June 30, 2018. For the quarter, the company reported coal revenue of $92,674,000 compared to $75,927,000 a year ago. Net income was $19,376,000 compared to $11,474,000 a year ago. Adjusted EBITDA was $33,564,000 compared to $24,988,000 a year ago. Estimated maintenance capital expenditures were $9,085,000 compared to $8,976,000 a year ago. Distributable cash flow was $22,349,000 compared to $11,622,000 a year ago. Net cash provided by operating activities was $48,949,000, which included a $17 million benefit from the reduction in working capital compared to $23,092,000 a year ago. After accounting for $7 million in capital expenditures and $14 million in distribution payments, the company was able to pay down approximately $27 million in debt.

The company provided financial and operating performance guidance for the year 2018. For the year, the company expects coal sales volumes of 6.60 to 6.85 million tons, coal average revenue per ton of $47.75 to $48.75, adjusted EBITDA of $100 million to $120 million and capital expenditures of $31 million to $36 million.

The company reported strong second quarter production of 1.9 million tons, which compares to 1.7 million tons in the second quarter of 2017. During the quarter, it benefited from increased production at all three of the mines at the PAMC. CCR shipped 2.0 million tons of coal during the second quarter, compared to 1.7 million tons in the year-ago quarter. The improvement in coal sales volume was driven by strong production and continued robust demand from customers. Average revenue per ton increased to $47.34 from $44.75 in the year-ago quarter, as pricing improved on export and domestic netback contracts.