2. CONSOL Energy Inc. (NYSE:CEIX)
Greenlight Capital’s Equity Stake: $167.41 Million
Number of Hedge Fund Holders: 30
CONSOL Energy Inc. (NYSE:CEIX) is an energy company that produces and sells bituminous coal. Its PAMC segment engages in the mining, preparing, and marketing bituminous coal to power generators, industrial end-users, and metallurgical end-users.
It remains one of the biggest holdings in Einhorn’s portfolio as the company is well-positioned to benefit from Russia’s conflict with Ukraine. As Europe seeks sources of coal instead of depending on Russia’s coal shipments, the company remains one of the biggest beneficiaries. The most recent quarterly earnings reveal the positive effects on CONSOL.
During the second quarter of 2024, it reported a total income of $384 million, with the PAMC division playing a significant role by selling 5.8 million tons. Nonetheless, the second quarter experienced a 36% decrease in revenue due to the decline in export ability due to the FSK Bridge’s collapse. Despite this, there was a 9% decrease in sales compared to the previous year, but careful strategic adjustments in the distribution of export orders helped lessen the effects of this decline.
CONSOL Energy Inc. (NYSE:CEIX) reported a profit of $58 million and an adjusted EBITDA of $125 million for the period. Additionally, it produced $59 million in free cash flow and sold around 5.8 million tons of its Pennsylvania Mining Complex (PMC) products, with 2.9 million tons going to the export market.
CONSOL Energy Inc. (NYSE:CEIX) expanded its average coal revenue range per ton and adjusted its expectations for PMC sales in 2024. The company has also found alternative port facilities and controlled its production expenses, leading to strong cash margins per ton.
Considering these recent achievements, CONSOL Energy Inc. (NYSE:CEIX) prioritizes safety, cost management, and securing long-term agreements. The firm is hopeful about future industrial needs and is committed to delivering value to its investors.
It has also grown its book of business, finalizing fixed-price multi-year agreements. Despite facing some obstacles, such as the temporary disruption caused by the Port of Baltimore closure, CONSOL Energy’s book of business is still strong, with 14.5 million tons of contracts secured for 2025.
As of Q2 2024, 30 hedge funds, holding a combined investment of $348.15 million, are bullish on CONSOL Energy Inc. (NYSE:CEIX), according to Insider Monkey’s database.
Greenlight Capital stated the following regarding CONSOL Energy Inc. (NYSE:CEIX) in its Q2 2024 investor letter:
“In addition to gold, we had four material winners in our long portfolio this quarter. CONSOL Energy Inc. (NYSE:CEIX) recovered from $83.76 to $102.03. In the first quarter, CEIX was hindered by the Baltimore bridge collapse, which blocked the company’s exports for a few months. The harbor has now reopened and the market appears to have largely moved past the issue.”
