CONSOL Energy : CEIX First Quarter 2024 Investor Presenation

CONSOL Energy Inc.

Investor Presentation

May 2024

Disclaimer

This presentation contains statements, estimates and projections which are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended). Statements that are not historical are forward-looking, and include, without limitation, projections and estimates concerning the timing and success of specific projects and the future production, revenues, income and capital spending of CONSOL Energy Inc. ("CEIX"). When we use the words "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "target," "will," "would," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe our expectations or strategies, including with respect to the Itmann Mining Complex, that involve risks or uncertainties, we are making forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results and outcomes to differ materially from results and outcomes expressed in or implied by our forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of future actual results. 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. Factors that could cause future actual results to differ materially from those made or implied by the forward-looking statements include risks, contingencies and uncertainties that are described in detail under the captions "Forward-Looking Statements" and "Risk Factors" in our public filings with the Securities and Exchange Commission. The forward-looking statements in this presentation speak only as of the date of this presentation; we disclaim any obligation to update the statements, whether in response to new information, future events or otherwise, except as required by law, and we caution you not to rely on them unduly.

This presentation includes unaudited "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934, including EBITDA, Adjusted EBITDA, CONSOL Marine Terminal Adjusted EBITDA, Total CEIX Liquidity, Cost of Coal Sold, Average Cash Cost of Coal Sold Per Ton, Average Cash Margin Per Ton Sold, CMT Operating Cash Costs, and Free Cash Flow. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Please see the appendix to this presentation for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.

2

Investment Thesis

1 Multi-Pronged Approach to Long-Term Value Creation - Revenue Diversification, Operational Excellence and Prudent Capital Allocation

2

3

4

5

6

Pragmatic Capital Allocation Approach - Prioritizes Strong Balance Sheet and Liquidity, Financial Flexibility & Long-Term Shareholder Value

Attractive Shareholder Return Program that Prioritizes Share Buybacks - Currently Targeting ~75% of Quarterly Free Cash Flow Returned to Shareholders

Repositioned Sales Portfolio to Capture Growth Potential in International and Industrial Markets

Measured Approach to Growth with Itmann Project (Low-Vol Met) and CONSOL Innovations - Organic and Fully- Funded Internally

World Class Coal Assets and Wholly Owned Export Terminal Remain Competitive Through All Parts of the Cycle and Provide Significant Operational and Marketing Optionality

7 ESG - Forward Progress Sustainability Initiative with Quantifiable Greenhouse Gas Reduction Targets

3

Building Long-Term Value

Guiding

principles of

safety,

compliance, and

continuous

improvement	Success securing
	long-term
	contracts which
High quality	provides revenue
products serving	visibility
industrial, power
generation, and
metallurgical
applications
allow for
flexibility

No Major Near-Term Debt Maturities(1)

Expanded

throughput

capacity at the CMT allows for future sales book diversification

Ability to

develop and access global markets due to advantaged logistics and product quality

No near-term

debt maturities

reduces

dependence on capital markets

Strong

liquidity(2)(3) of

$478 million

Industry-leading

shareholder

return program

linked to free

cash flow(3) generation

($ in mm)					$1
				Robust Liquidity
						Total CEIX
		$355			$222	Liquidity:
				$478mm(2)(3)
					$255	Excluding
	$103			$75		restricted cash
				of $44mm
2024	2025	2026	2027	2028
Undrawn RCF		MEDCO Revenue Bonds		PEDFA Bonds	Revolver Cash and ST Investments	A/R Securitization

Source: Company filings.

1. Debt Maturities as of March 31, 2024.
2. As of March 31, 2024, there were no borrowings on the $355mm revolver and it is only being used for providing letters of credit with $133mm issued. Excludes finance

4 (3)	leases and other debt arrangements.
Total CEIX Liquidity and free cash flow are non-GAAP measures; see the Appendix for reconciliations to the most comparable GAAP measure.

Strong Financial Performance Drives Debt Reduction and Shareholder Returns

Equity Performance and Increased Shareholder Returns…

12/31/2021	12/31/2022
12/31/2023	Current

						-20%
	299%		25%	24%			0%
$100.53	22% 22%
$90.69	20%		19%	-5%
$65.00		15%					-10%
			10%					-15%
$22.71			5%					-20%
Common Stock	0%	LTM Free Cash Flow Yield	-25%

$475 $419

$71 $0 LTM Shareholder Returns

$16 $14

$2 $0 LTM Shareholder Returns / Share

…Driven by Improvements in Our Key Financial Metrics

7%

$1,048

$883

$824	$807

600

$506

500

400

300

-113%

0%

43%

-20%

33%

-40% 23%

-106%

39%

0%		-1.6x
		-
0.2x
-20%	0.1x	-0.2x
0.2x

.1x	-0.4x
-40%	-0.6x

LTM Adjusted EBITDA

200	$107		-60%
100		13%
		-80%
0			3%
		-100%
-100
-$88	-$65	-7%
-200	-120
Net Debt (Cash) (2)
	-17%

	0.1x		-0.8x
	-60%
5%	-		-1.0x
	-80%		-1.2x
	(0.1x)
		-1.4x
-3%-3%	-100%	(0.1x)
(0.1x)	-1.6x
		(0.1x)
Net Debt / Enterprise Value (2)(0-1.20%x)	Net Debt/Bank EBITDA	-1.8x

Notes: "Current" indicates pricing on May 17th , 2024 unless otherwise noted. LTM = "last twelve months".

1. "Current" is as of quarter-ended March 31, 2024.

5 (2) Net debt does not include restricted cash.

Diversifying Our Revenue Mix and End Use Markets

% of Total Revenue from Contracts with Customers
YE18	YE19	YE20	YE21	YE22		YE23
	60%	58%	47%		41%	29%
33%	67%
	40%	42%	53%	59%
						71%

LTM 1Q24

30%

70%

End-User Portfolio by Sales Tonnage

YE20

14%

23%	54%

62%

	Export	Domestic
YE21	YE22	YE23	LTM
1Q24

14%		9%	10%	10%
	3%		4%	3%
	14%	39%	38%
		56%
	27%	19%
			44%	46%

Source: Company filings.

6

Significant Sales Shift Toward Export and Industrial Markets

(% of total revenue from contracts with customers)

		Export Industrial
		Terminal
		Domestic Met
100%
90%
80%
70%	61%	64%	58%
60%
50%
40%
30%			7%
	8%	5%	10%
20%
	13%	18%
10%
		17%
	7%	2%
0%
	2017	2018	2019

Notes:

Industrial includes brick kiln and cement manufacturing

Export Power Generation

Freight

Domestic Power Generation

45%

55%

7%

5%11%

9%

22%

16%

2020 2021

Export Met

Domestic Industrial

Total Export

27%28%

40%

12%

11%

13%

14%12%

17%

29%30%

17%

2022

2023

LTM 1Q24

Sales to Power

Generation

Market

decreased from

74% to 40% since 2017.

Sales to Export

Industrial

Market

increased from 7% to 30% since 2017.

7

Expanding Metallurgical Portfolio

Total Metallurgical Tons Sold

MM tons

5

4.5

4

3.5

3

2.5

2

1.5

1

0.5

0

Our metallurgical sales tons have significantly increased due to developing PAMC crossover sales, through the availability of the 5th longwall, and the ramp up of the Itmann Mining Complex.

2020

2021

2022

2023

Source: Company filings.

8

Grid Planners Significantly Increasing Load Growth Expectations

◼ In just one year, grid planners nearly doubled the 5-year load growth forecast to 4.7%, up from 2.6% over the next 5 years.

◼ The main drivers are investment in new manufacturing, industrial, and data center facilities.

◼ Data center growth is forecast to exceed $150 billion through 2028.

• Ground zero for data center growth is Loudon
  County, VA, dubbed "Data Center Alley".
• According to the Virginia Economic
  Development Partnership, "Virginia hosts the largest data center market in the world and is home to more than 35% (~150) of all known hyperscale data centers worldwide."

Source: Grid Strategies - National Load Growth Report 2023 "The Era of Flat Power Demand is Over"

9

PJM Triples Load Growth Expectations, Highlighting Need for Baseload Power

Summer Peak

Winter Peak

• The PJM Interconnection has tripled its growth expectations for electricity use in its footprint over the next decade, and sharply increased its summer and winter peak load forecasts compared to last year.
• PJM expects its summer and winter peak load will grow by 1.7% and 2% a year on average through 2034, up from 0.4% and 0.7% growth, respectively, in last year's forecast.
• PJM anticipates electricity use in its footprint will soar 2.4% annually through the decade, up from 0.8% growth expectations last year.
• According to PJM, the forecast growth is driven by the electrification of the vehicle and industrial sectors combined with consumer demands for technology and underscores the need to maintain and develop enough generation resources to serve that growing demand.

Source: PJM Load Forecast Report - January 2024

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