CONSOL ENERGY INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

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You should read the following Management's Discussion and Analysis of Financial
Condition and Results of Operations (MD&A) in conjunction with the Consolidated
Financial Statements and corresponding notes included elsewhere in this Form
10-Q. In addition, this Form 10-Q report should be read in conjunction with the
Consolidated Financial Statements for the three-year period ended December 31,
2020 included in CONSOL Energy Inc.'s Form 10-K, filed on February 12, 2021.
This MD&A contains forward-looking statements and the matters discussed in these
forward-looking statements are subject to risks, uncertainties, and other
factors that could cause actual results to differ materially from those
projected or implied in the forward-looking statements. Please see "Risk
Factors" and "Forward-Looking Statements" for a discussion of the uncertainties,
risks and assumptions associated with these statements.



All amounts discussed are in millions of U.S. dollars, unless otherwise
indicated.




COVID-19 Update



The Company is monitoring the impact of the COVID-19 pandemic ("COVID-19") and
has taken, and will continue to take, steps to mitigate the potential risks and
impact on the Company and its employees. The health and safety of our employees
is paramount. To date, the Company has experienced a few localized outbreaks,
but due, in part, to the health and safety procedures put in place by the
Company, we have been able to continue operating. The Company continues to
monitor the health and safety of its employees closely in order to limit
potential risks to our employees, contractors, family members and the community.



Over the past several quarters, the general business environment has improved,
resulting in higher demand for our product as government-imposed shut-downs and
other COVID-19-related restrictions have been eased. However, imbalances in the
global supply chain coupled with inflationary pressures have had both positive
and negative impacts to our operations. The extent to which COVID-19 may impact
our business depends on future developments, which are highly uncertain and
unpredictable, including Presidential mandates, federal and state regulations,
new information concerning the severity of COVID-19 variants, the pace and
effectiveness of vaccination efforts and the effectiveness of actions globally
to contain or mitigate its effects. We expect this could continue to impact our
results of operations, cash flows and financial condition. The Company will
continue to take steps it believes are appropriate to mitigate the negative
impacts of COVID-19 on its operations, liquidity and financial condition.



Additionally, while many government-imposed shut-downs of non-essential
businesses in the United States and abroad have been phased out, there is a
possibility that such shut-downs may be reinstated. Depressed demand for our
coal may also result from a general recession or reduction in overall business
activity caused by COVID-19. We are considered a critical infrastructure company
by the U.S. Department of Homeland Security. As a result, we were exempt from
Pennsylvania Governor Tom Wolf's executive order, issued in March 2020, closing
all businesses that are not life sustaining until Pennsylvania's phased
reopening, which began in the second quarter of 2020. COVID-19 led to an
unprecedented decline in coal demand that began in the first quarter of 2020
and hit its lowest point in May 2020.



Our Business



We are a leading, low-cost producer of high-quality bituminous coal, focused on
the extraction and preparation of coal in the Appalachian Basin due to our
ability to efficiently produce and deliver large volumes of high-quality coal at
competitive prices, the strategic location of our mines and the industry
experience of our management team. We are also expanding into the metallurgical
coal market through the development of our Itmann Mine in West Virginia, which
we expect to be fully operational following construction of a preparation plant
near the mine site, which is planned for completion during the second half of
2022.



Coal from the PAMC is valued because of its high energy content (as measured in
Btu per pound), relatively low levels of sulfur and other impurities, and strong
thermoplastic properties that enable it to be used in metallurgical, industrial
and thermal applications. We take advantage of these desirable quality
characteristics and our extensive logistical network, which is directly served
by both the Norfolk Southern and CSX railroads, to aggressively market our
product to a broad base of strategically selected, top-performing power plant
customers in the eastern United States. We also capitalize on the operational
synergies afforded by the CONSOL Marine Terminal to export our coal to
industrial, power generation and metallurgical end-users globally.



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Table of Contents




Our operations, including the PAMC and the CONSOL Marine Terminal, have
consistently generated strong cash flows, even throughout the COVID-19 pandemic.
As of December 31, 2020, the PAMC controls 657.9 million tons of high-quality
Pittsburgh seam reserves, enough to allow for more than 20 years of
full-capacity production. In addition, we own or control approximately 1.5
billion tons of Greenfield Reserves located in the Northern Appalachian
("NAPP"), the Central Appalachian ("CAPP") and the Illinois Basins ("ILB"),
which we believe provide future growth and monetization opportunities. Our
vision is to maximize cash flow generation through the safe, compliant, and
efficient operation of this core asset base, while strategically reducing debt,
returning capital through share buybacks or dividends, and, when prudent,
allocating capital toward compelling growth and diversification opportunities.



Our core businesses consist of our:

Pennsylvania Mining Complex: The PAMC, which includes the Bailey Mine, the

Enlow Fork Mine, the Harvey Mine and the Central Preparation Plant, has

extensive high-quality coal reserves. We mine our reserves from the Pittsburgh

No. 8 Coal Seam, which is a large contiguous formation of high-Btu coal that

is ideal for high productivity, low-cost longwall operations. The design of

the PAMC is optimized to produce large quantities of coal on a cost-efficient

basis. We can sustain high production volumes at comparatively low operating

costs due to, among other things, our technologically advanced longwall mining

systems, logistics infrastructure and safety. All our mines at the PAMC

utilize longwall mining, which is a highly automated underground mining

technique that produces large volumes of coal at lower costs compared to other

underground mining methods.

CONSOL Marine Terminal: Through our subsidiary CONSOL Marine Terminals LLC, we

provide coal export terminal services through the Port of Baltimore. The

terminal can either store coal or load coal directly into vessels from rail

cars. It is also the only major east coast United States coal terminal served

by two railroads, Norfolk Southern Corporation and CSX Transportation Inc.

Itmann Mine: Construction of the Itmann Mine, located in Wyoming County, West

Virginia, began in the second half of 2019; development mining began in April

2020, and full production is expected following the recommission and

relocation of a recently purchased preparation plant near the mine site, which

is planned for completion during the second half of 2022. When

fully operational, the Company anticipates approximately 900 thousand product

tons per year of high-quality, low-vol coking coal production from the Itmann

Mine, with an anticipated mine life of 20+ years. The Company has

also expanded the capacity of the preparation plant…

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