CNX Coal Resources LP has announced that it is reaffirming full-year 2016 guidance and providing its initial 2017 guidance.
Sales volume is anticipated to improve in 2017, driven by the broader improvement in domestic and international coal markets. Based on the midpoint of the 2017 sales guidance range, approximately 94% of our coal is sold. The company plans to maintain exposure to further recovery in coal prices in 2017 through (a) 6% unsold position, (b) 5-10% unpriced/collared position and (c) 15-20% of coal pricing linked to power prices (netback contracts).
Based on the current expectations of 5-10% improvement in average revenue per ton and flat to low single digit increase in cost of coal sold compared to 2016, 2017 EBITDA is expected to be in the US$90-110 million range. Assuming no incremental dropdown transactions, this increase in EBITDA compared to 2016 levels will allow CNX to improve its leverage ratio, as defined by net debt/EBITDA, to the 1.8-2.2x range by the end of 2017.
After reducing and deferring some capital spending in 2016, maintenance capital expenditures are predicted to normalise in the approximately US$5 t range for 2017 and beyond. Specifically for 2017, based on initial estimates, maintenance capital expenditures are expected to be in the US$30-36 million range.
For 2018, sales volume are planned to be in the 6.25-6.75 million t range.
Read the article online at: https://www.worldcoal.com/coal/13122016/cnx-coal-resources-lp-provides-2017-guidance/