Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $123 million for Q1 2025, despite a generally soft market environment [5][21] - A net loss of $69 million or $1.38 per diluted share was recorded for the same quarter [21] - The company returned $106.6 million to investors through share buybacks and dividends [5] Business Line Data and Key Metrics Changes - The high CV thermal segment generated substantial free cash flow, selling 7.1 million tons at a realized revenue of $63.18 per ton [21][23] - The metallurgical segment sold 2.3 million tons, achieving a realized coal revenue of $113.7 per ton for coking coal [23] - The PRB segment sold 10.7 million tons at a realized revenue of $14.93 per ton [23] Market Data and Key Metrics Changes - U.S. power generation increased by 3.8% year-to-date, with coal generation up 20% in 2025 [16][26] - The company noted a 20% increase in Chinese imports of seaborne coking coal in 2024, supporting global market dynamics [17] - Domestic demand for high CV thermal coal remains strong, counterbalancing international market softness [15][26] Company Strategy and Development Direction - The company aims to capture annual synergies of $125 million to $150 million, having already executed strategies expected to yield over $100 million in annual synergies [11][27] - A capital return framework was established to return approximately 75% of free cash flow to shareholders [9][22] - The company is focused on maintaining operational momentum and capturing synergies as coal markets normalize [7][12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant free cash flow, particularly in the second half of the year [18] - The company is optimistic about the long-term market outlook for metallurgical coal despite current pricing challenges [17] - Management highlighted the importance of stable power prices and the potential for increased coal-fired generation due to favorable market conditions [51][55] Other Important Information - The company completed a refinancing of its credit facilities, enhancing liquidity and reducing financing costs [19][20] - The Leer South mine is expected to resume longwall operations by mid-year, which should improve production rates [13][68] Q&A Session Summary Question: Did the adjusted EBITDA of $123 million include the $36 million of idled costs? - Management confirmed that the adjusted EBITDA does not add back the idled mine costs [37][39] Question: What is the outlook for the metallurgical segment costs in Q2? - Management indicated that Q2 costs are expected to be slightly impacted by planned longwall movements but overall should see a drop compared to Q1 [41][43] Question: Can you provide an update on the longwall operations at Leer South? - Management stated that they plan to reenter the mine soon and are optimistic about the longwall's condition [68][70] Question: How does the company view the recent executive orders supporting the coal industry? - Management expressed optimism about the administration's recognition of the coal industry's importance but noted that utilities are cautious about long-term investments [51][52] Question: What is the company's strategy regarding share buybacks? - Management confirmed that they will continue to deploy cash opportunistically towards share buybacks, especially given the current stock valuation [63][66] Question: How is the company approaching potential M&A opportunities? - Management indicated that the current focus is on share buybacks rather than acquisitions, given the favorable valuation of their own stock [99]

Core Natural Resources (CEIX) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Core Natural Resources Corporation First Quarter twenty twenty five Earnings Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on Thursday, 05/08/2025. I would now like to turn the conference over to mister Deck Sloan. Please go ahead. Speaker1 Good mo ...

Core Natural Resources Investor Presentation May 8, 2025 1 FORWARD LOOKING STATEMENTS This presentation contains certain "forward-looking statements" within the meaning of federal securities laws. Forward-looking statements may be identified by words such as "anticipates," "believes," "targets," "could," "continue," "estimate," "expects," "intends," "will," "should," "may," "plan," "predict," "project," "would" and similar expressions. Forward-looking statements are not statements of historical fact and ref ...

Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited Q1 2025 financial statements reflect significant changes from the Arch Resources merger and a new four-segment structure - On January 14, 2025, the company completed its all-stock merger with Arch Resources, Inc, and was renamed "Core Natural Resources, Inc", trading under the ticker **"CNR"** starting January 15, 2025[12](index=12&type=chunk) - Following the merger, the company reassessed its structure and now consists of **four reportable segments**: High CV Thermal, Metallurgical, Powder River Basin (PRB), and Baltimore Marine Terminal[108](index=108&type=chunk) **Consolidated Statements of (Loss) Income (Unaudited)** | (In thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues** | $1,017,406 | $546,689 | | (Loss) Income from Operations | ($53,910) | $124,039 | | **Net (Loss) Income** | **($69,277)** | **$101,891** | | Total Basic (Loss) Earnings per Share | ($1.38) | $3.40 | | Total Dilutive (Loss) Earnings per Share | ($1.38) | $3.39 | **Consolidated Balance Sheet Highlights (Unaudited)** | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,332,667 | $785,958 | | **Total Assets** | **$6,251,946** | **$2,879,543** | | Total Current Liabilities | $703,862 | $518,684 | | **Total Liabilities** | **$2,356,172** | **$1,311,296** | | **Total Equity** | **$3,895,774** | **$1,568,247** | **Consolidated Statements of Cash Flows Highlights (Unaudited)** | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | ($109,638) | $77,484 | | Net Cash Provided by (Used in) Investing Activities | $283,011 | ($36,297) | | Net Cash Used in Financing Activities | ($41,590) | ($67,677) | | Net Increase (Decrease) in Cash | $131,783 | ($26,490) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Post-merger analysis shows revenue growth to $1.02 billion, segment performance shifts, and strong liquidity of $858 million [Recent Developments and Our Business](index=31&type=section&id=Recent%20Developments%20and%20Our%20Business) The company became a premier North American coal producer after its merger with Arch Resources and reorganized into four new segments - The merger with Arch Resources was completed on January 14, 2025, establishing Core as a major North American coal producer with offerings from metallurgical to high-calorific value thermal coals[124](index=124&type=chunk)[128](index=128&type=chunk) - An isolated combustion-related activity at the Leer South mine on January 13, 2025, led to a temporary sealing of the longwall panel, with mining expected to **resume in mid-2025**[126](index=126&type=chunk) [Operational Performance](index=36&type=section&id=Operational%20Performance) Q1 2025 performance reflects the Arch merger, with the new PRB segment contributing positive EBITDA while the Metallurgical segment faced challenges - The Metallurgical segment's Adjusted EBITDA was negatively impacted by **$36 million in costs** related to the combustion incident at the Leer South mine[155](index=155&type=chunk) **Segment Operational Performance (Three Months Ended March 31, 2025 vs 2024)** | Segment | Metric | 2025 | 2024 | Variance | | :--- | :--- | :--- | :--- | :--- | | **High CV Thermal** | Tons Sold (M) | 7.1 | 6.1 | 1.0 | | | Realized Revenue/Ton | $63.18 | $68.33 | ($5.15) | | | Cash Cost/Ton | $42.78 | $40.29 | $2.49 | | | Adjusted EBITDA (M) | $144.8 | $176.0 | ($31.2) | | **Metallurgical** | Tons Sold (M) | 2.3 | 0.2 | 2.1 | | | Realized Revenue/Ton | $98.26 | $164.74 | ($66.48) | | | Cash Cost/Ton | $91.00 | $179.72 | ($88.72) | | | Adjusted EBITDA (M) | ($19.6) | ($2.9) | ($16.7) | | **PRB** | Tons Sold (M) | 10.7 | — | 10.7 | | | Realized Revenue/Ton | $14.93 | — | $14.93 | | | Cash Cost/Ton | $12.44 | — | $12.44 | | | Adjusted EBITDA (M) | $26.7 | — | $26.7 | | **Baltimore Marine** | Throughput Tons (M) | 4.3 | 4.5 | (0.2) | | | Adjusted EBITDA (M) | $13.4 | $17.4 | ($4.0) | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity of $858 million, supported by an expanded credit facility and a new $1 billion capital return program - In connection with the merger, the Revolving Credit Facility was amended to **increase commitments from $355 million to $600 million** and extend the maturity to April 30, 2029[159](index=159&type=chunk)[171](index=171&type=chunk) - On February 18, 2025, the Board approved a new capital return framework, including a **share repurchase program of up to $1 billion**[118](index=118&type=chunk)[191](index=191&type=chunk) - In Q1 2025, the company **repurchased 1,377,294 shares for approximately $101 million** at an average price of $73.52 per share[120](index=120&type=chunk)[192](index=192&type=chunk)[210](index=210&type=chunk) - On March 27, 2025, the company borrowed proceeds from new tax-exempt bonds totaling approximately **$307 million** to refinance existing debt and fund facility costs[93](index=93&type=chunk)[185](index=185&type=chunk) **Total Liquidity as of March 31, 2025** | (in millions) | Amount | | :--- | :--- | | Cash and Cash Equivalents | $388 | | Securitization Facilities - Current Availability | $151 | | Revolving Credit Facility - Current Availability | $600 | | Less: Letters of Credit Outstanding | ($281) | | **Total Liquidity** | **$858** | [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposures have not materially changed from the disclosures in its 2024 Annual Report on Form 10-K - The Company's exposures to market risk have **not materially changed** since December 31, 2024[200](index=200&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, excluding the newly acquired Arch Resources operations from the Q1 2025 assessment - Management concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[202](index=202&type=chunk) - The company excluded the acquired operations of Arch from its assessment of internal control over financial reporting for Q1 2025, as permitted for recent acquisitions[203](index=203&type=chunk) Part II. Other Information [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material litigation beyond what has been previously disclosed in financial statement notes - The company is not currently subject to any material litigation, except as disclosed in **Note 14 - Commitments and Contingent Liabilities**[206](index=206&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) The company highlights an updated risk concerning the adverse effects of tariffs and trade measures on its business and financial results - A key risk highlighted is the potential adverse impact of new or existing tariffs and trade measures, such as **China's retaliatory tariffs on U.S. goods**[208](index=208&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its Q1 2025 share repurchase activity under a newly approved $1 billion capital return framework - A new stock repurchase program was approved on February 18, 2025, authorizing up to **$1 billion in repurchases**, with approximately $899 million remaining available[209](index=209&type=chunk) **Common Stock Repurchases (Q1 2025)** | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | — | $— | | Feb 2025 | 374,256 | $74.84 | | Mar 2025 | 1,003,038 | $73.03 | | **Total Q1** | **1,377,294** | **$73.52 (weighted avg)** | [Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon its senior securities during the first quarter of 2025 - None[212](index=212&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters is provided in Exhibit 95 of this quarterly report - Information concerning mine safety violations as required by the Dodd-Frank Act is included in **Exhibit 95** to this Quarterly Report on Form 10-Q[213](index=213&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) The Chief Accounting Officer adopted a Rule 10b5-1 trading plan for the potential sale of company stock - On March 24, 2025, Chief Accounting Officer John M. Rothka adopted a **Rule 10b5-1 trading arrangement** for the sale of up to 9,500 shares of Common Stock[214](index=214&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including merger agreements, credit facility amendments, and officer certifications

Core Natural Resources Q1 2025 Earnings Report [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reported a net loss of $69.3 million due to merger costs but generated $123.5 million in adjusted EBITDA and advanced key strategic initiatives Q1 2025 Financial Highlights | Metric | Value | | :--- | :--- | | Net Loss | $69.3 million | | Diluted EPS | ($1.38) | | Adjusted EBITDA | $123.5 million | | Revenues | $1,017.4 million | | Merger-Related Expenses | $49.2 million | - Returned **$106.6 million** to investors through **$101.3 million in share buybacks** and a $0.10 per share quarterly dividend[1](index=1&type=chunk)[2](index=2&type=chunk) - Increased the target for merger-related synergies by **10%** at the midpoint to a new range of **$125 to $150 million** annually[1](index=1&type=chunk)[5](index=5&type=chunk) - Made excellent progress towards the full resumption of operations at the Leer South mine, which is on track for mid-year[1](index=1&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong merger integration progress, synergy realization, and successful capital market transactions that bolstered financial flexibility - CEO Paul Lang stated that the company has made **"exceptional progress"** in integrating the merged portfolio and has already executed strategies to deliver on increased synergy targets[2](index=2&type=chunk) - The high c.v. thermal segment generated **substantial free cash flow** by leveraging its contracted business and strong U.S. power markets, mitigating the impact of the Leer South longwall outage[2](index=2&type=chunk) - CFO Mitesh Thakkar noted that recent capital market transactions have **bolstered liquidity**, extended maturities, and added significant financial flexibility to execute the capital return program[13](index=13&type=chunk) [Operational Performance & Updates](index=1&type=section&id=Operational%20Performance%20%26%20Updates) The company is on track to resume Leer South operations, has increased its merger synergy target, and saw strong thermal segment performance [Leer South Mine Update](index=1&type=section&id=Leer%20South%20Update) The company is on track to resume longwall production at Leer South by mid-year 2025 following a successful mitigation of a combustion event - The company temporarily sealed the active longwall panel to extinguish isolated combustion-related activity[3](index=3&type=chunk) - Core remains on track to resume longwall production by mid-year, in line with the originally indicated timeline[4](index=4&type=chunk) - Development work resumed in February and is progressing at a strong pace, which is expected to translate into **higher future longwall productivity**[4](index=4&type=chunk) [Merger Synergy Update](index=2&type=section&id=Synergy%20Update) The annual merger synergy target was increased by 10% to a new range of $125 to $150 million, with further uplift expected - The targeted range for synergy creation has been **increased by 10%** at the midpoint to **$125 to $150 million** per year[5](index=5&type=chunk) - Additional synergy uplift is expected as coal markets normalize, which will increase value in areas like marketing and product blending[6](index=6&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Strong thermal segment results helped offset metallurgical segment challenges caused by the Leer South outage, with improvement expected in H2 Q1 2025 High C.V. Thermal Segment Performance | Metric | Value | | :--- | :--- | | Sales Volumes | 7.1 million tons | | Realized Coal Revenue per Ton | $63.18 | | Cash Cost of Coal Sold per Ton | $42.78 | Q1 2025 Metallurgical Segment Performance | Metric | Value | | :--- | :--- | | Total Sales Volumes | 2.3 million tons | | Coking Coal Sales | 1.9 million tons | | Realized Coking Coal Revenue per Ton | $113.70 | | Segment Cash Cost of Coal Sold per Ton | $91.00 | - With the Leer South longwall expected to resume mid-year, the metallurgical segment's cash cost of coal sold per ton is guided to be in the **low $90 range** during the second half of 2025[9](index=9&type=chunk) [Financial Position & Capital Allocation](index=2&type=section&id=Financial%20Position%20%26%20Capital%20Allocation) The company maintained strong liquidity, executed $101.3 million in share buybacks, and refinanced debt to enhance financial flexibility - As of March 31, 2025, total liquidity was **$858.3 million**, including $388.5 million in cash and cash equivalents[10](index=10&type=chunk) Q1 2025 Capital Return | Metric | Value | | :--- | :--- | | Share Repurchases | $101.3 million | | Shares Repurchased | 1.4 million | | Average Repurchase Price | $73.52 per share | | Quarterly Dividend | $0.10 per share | - The company has **$898.7 million remaining** under its existing $1.0 billion share repurchase authorization[14](index=14&type=chunk) - Successfully refinanced debt by upsizing its revolving credit facility to $600 million and refinancing $306.8 million in tax-exempt bonds, reducing the weighted average interest rate to **5.3%**[15](index=15&type=chunk) [Market Dynamics & Outlook](index=3&type=section&id=Market%20Dynamics%20%26%20Outlook) The company affirmed its 2025 guidance, navigating soft markets with a strong contracted position and a positive long-term metallurgical outlook - The high c.v. thermal segment has a committed and priced position of approximately **26 million tons** at a projected price between **$61 and $63 per ton** for the year, counterbalancing export market softness[18](index=18&type=chunk) - Long-term metallurgical market dynamics are **highly promising** due to new blast furnace capacity in Southeast Asia and rising Indian imports, with Chinese imports also absorbing supply[19](index=19&type=chunk) - The company **affirmed or enhanced its full-year guidance** in all instances and expects to continue generating substantial free cash flow to return to stockholders[20](index=20&type=chunk) [2025 Full-Year Guidance](index=4&type=section&id=2025%20Guidance) The company projects 2025 sales of 75.5-81.0 million tons and capital expenditures of $300-$330 million, with detailed segment guidance 2025 Full-Year Guidance Highlights | Metric | Coking (Met) | High C.V. Thermal | Powder River Basin | Corporate | | :--- | :--- | :--- | :--- | :--- | | **Sales Volume (M tons)** | 7.5 - 8.0 | 29.0 - 31.0 | 39.0 - 42.0 | N/A | | **Cash Cost/Ton** | $94.00 - $98.00 | $38.00 - $40.00 | $13.75 - $14.25 | N/A | | **Committed & Priced** | 2.9M tons @ $122.38 | 26.0M tons @ $61-$63 | 41.9M tons @ $14.77 | N/A | | **Capital Expenditures** | | | | $300M - $330M | - Metallurgical cash cost per ton is projected to improve to the **low $90s/ton** in the second half of 2025, following the restart of the Leer South longwall[23](index=23&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations from GAAP figures to non-GAAP metrics like Adjusted EBITDA and Free Cash Flow for Q1 2025 [Reconciliation of Realized Coal Revenue](index=6&type=section&id=Reconciliation%20of%20Realized%20Coal%20Revenue) GAAP revenues of $1,017.4 million are reconciled to Non-GAAP Segment Realized Coal Revenue of $835.8 million for Q1 2025 Q1 2025 Revenue Reconciliation (in thousands) | Item | Amount | | :--- | :--- | | GAAP Revenues | $1,017,406 | | Less: Transportation Expense | ($173,451) | | Less: Net Terminal & Other Revenues | ($8,151) | | **Non-GAAP Segment Realized Coal Revenue** | **$835,804** | Q1 2025 Metallurgical Realized Revenue per Ton | Coal Type | Realized Revenue per Ton | | :--- | :--- | | Coking Coal | $113.70 | | Thermal Byproduct | $32.83 | | **Total Metallurgical Segment** | **$98.26** | [Reconciliation of Cash Cost of Coal Sold](index=6&type=section&id=Reconciliation%20of%20Cash%20Cost%20of%20Coal%20Sold) GAAP Cost of Sales of $870.3 million is reconciled to Non-GAAP Segment Cash Cost of Coal Sold of $647.5 million for Q1 2025 Q1 2025 Cost of Sales Reconciliation (in thousands) | Item | Amount | | :--- | :--- | | GAAP Cost of Sales | $870,296 | | Less: Transportation Costs | ($157,181) | | Less: Cost of Sales from Idled Operations | ($41,050) | | Less: Other Costs | ($24,571) | | **Non-GAAP Segment Cash Cost of Coal Sold** | **$647,494** | [Reconciliation of Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) A GAAP Net Loss of $69.3 million is reconciled to an Adjusted EBITDA of $123.5 million for Q1 2025 Q1 2025 Adjusted EBITDA Reconciliation (in thousands) | Item | Amount | | :--- | :--- | | Net Loss | ($69,277) | | Add: Depreciation, Depletion & Amortization | $121,556 | | Add: Merger-Related Expenses | $49,182 | | Add: Stock-Based Compensation | $12,859 | | Add: Loss on Debt Extinguishment | $11,680 | | Add: Interest & Tax | ($2,515) | | **Adjusted EBITDA** | **$123,485** | [Reconciliation of Free Cash Flow](index=9&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Net Cash Used in Operating Activities of ($109.6 million) is reconciled to Free Cash Flow of $49.1 million for Q1 2025 Q1 2025 Free Cash Flow Reconciliation (in thousands) | Item | Amount | | :--- | :--- | | Net Cash Used in Operating Activities | ($109,638) | | Less: Capital Expenditures | ($64,822) | | Add: Proceeds from Sales of Assets | $6,003 | | Add: Unrestricted Cash Proceeds from Merger | $217,593 | | **Free Cash Flow** | **$49,136** | [About the Company & Forward-Looking Statements](index=5&type=section&id=About%20the%20Company%20%26%20Forward-Looking%20Statements) This section provides company background and outlines the risks and uncertainties associated with forward-looking statements in the report - Core Natural Resources was created in January 2025 via the merger of CONSOL Energy and Arch Resources and operates a portfolio including the Pennsylvania Mining Complex, Leer, Leer South, and West Elk mines[27](index=27&type=chunk) - The report includes forward-looking statements that involve numerous risks and uncertainties, and the company does not undertake any obligation to update these statements[38](index=38&type=chunk)[40](index=40&type=chunk)

Revenue and Income - For the year ended December 31, 2024, total coal revenue was $1,787 million, a decrease from $2,107 million in 2023, reflecting a variance of $342 million[341]. - The average coal revenue per ton sold decreased to $65.54 in 2024 from $77.74 in 2023, indicating a decline of approximately 15.6%[337]. - The net income for the year ended December 31, 2024, was $286,405 million, down from $655,892 million in 2023, indicating a decline of approximately 56.4%[340]. - Total revenue and other income for 2024 was $2,236,311, a decrease of 13% from $2,568,877 in 2023[440]. - Coal revenue decreased to $1,786,926 in 2024, down 15% from $2,106,366 in 2023[440]. - Basic earnings per share dropped to $9.65 in 2024, down from $19.91 in 2023[440]. - Comprehensive income for 2024 was $300,892, down from $656,472 in 2023[454]. Costs and Expenses - The cash cost of coal sold for 2024 was $973,139 million, slightly up from $939,892 million in 2023, representing an increase of about 3.5%[335]. - The average cash cost of coal sold per ton increased to $37.89 in 2024 from $36.10 in 2023, marking a rise of approximately 4.9%[337]. - Total costs and expenses increased to $1,905,664 in 2024, up 6% from $1,791,005 in 2023[440]. - Operating and other costs rose to $1,271 million for the year ended December 31, 2024, compared to $1,120 million in 2023, marking an increase of about 13.5%[349]. Cash Flow and Liquidity - The Company reported cash flows from operating activities of approximately $476 million for the year ended December 31, 2024, a decrease of $382 million compared to $858 million in 2023[390]. - Cash and cash equivalents rose to $408,240 in 2024, an increase of 105% from $199,371 in 2023[446]. - Total liquidity as of December 31, 2024, was $708 million, consisting of $408 million in cash and cash equivalents, $52 million in short-term investments, and $355 million available under the revolving credit facility[383]. Capital Expenditures and Investments - Total capital expenditures increased by $10 million, from $168 million in 2023 to $178 million in 2024, with notable increases in building and infrastructure expenditures by $15 million[392]. - The Company generated cash used in investing activities of $165 million in 2024, a decrease of $94 million compared to $259 million in 2023[390]. Debt and Financial Obligations - The Company expects to make payments of $117 million on long-term debt obligations in the next 12 months, including $103 million related to the MEDCO Bonds[408]. - As of December 31, 2024, the Company had total long-term debt and finance lease obligations of $209 million, including a current portion of $113 million[412]. - The Company increased its revolving credit facility commitments from $355 million to $600 million, extending the maturity date to April 30, 2029[382]. Mergers and Future Outlook - The merger with Arch was completed on January 14, 2025, which is expected to significantly impact future financial results[327]. - The company expects to reassess its reporting segments in the first quarter of 2025 following the merger[329]. - The Company anticipates resuming longwall mining at the Leer South mine in mid-2025 after addressing isolated combustion-related activity[330]. Shareholder Returns - The Company declared dividends of $0.25 per share totaling approximately $14.7 million during the year ended December 31, 2024, and announced a $0.10 per share dividend in February 2025[417]. - Dividends declared per common share were $0.50 in 2024, down from $2.20 in 2023[440]. - The company repurchased and retired 747,351 shares of common stock at an average price of $89.49 per share[415]. Tax and Deferred Liabilities - Total income tax expense for the year ended December 31, 2024 was $44,242, a decrease of 63.7% from $121,980 in 2023[514]. - The effective income tax rate for 2024 was 13.4%, compared to 15.7% in 2023 and 17.8% in 2022[515]. - The Company had deferred tax liabilities exceeding deferred tax assets by approximately $49 million as of December 31, 2024[374]. Miscellaneous Income and Other Factors - Miscellaneous other income increased to $80 million in 2024, up from $53 million in 2023, representing a growth of approximately 51%[345]. - Interest income rose to $19,223 in 2024, up from $13,597 in 2023, marking an increase of about 41.5%[507]. - The Company has established risk management policies to mitigate commodity price volatility through short-term and multi-year fixed-price contracts[423].

Core Natural Resources Q4 2024 Earnings Report [Report Highlights and Management Comments](index=1&type=section&id=Report%20Highlights%20and%20Management%20Comments) Core Natural Resources announced Q4 2024 results, highlighting a new capital return framework with a $1 billion share buyback, significant synergy capture, and resumed Leer South mine development - Adopted a new capital return framework heavily weighted toward **share repurchases**[1](index=1&type=chunk) - The Board of Directors authorized a **$1 billion** share repurchase program[1](index=1&type=chunk)[3](index=3&type=chunk) - Resumed development work with continuous miner units at the Leer South mine following a combustion-related event[1](index=1&type=chunk)[4](index=4&type=chunk) - Management reports an excellent start in integrating the combined portfolio and capturing synergies from the recent transformational merger[2](index=2&type=chunk) [Shareholder Return Framework](index=1&type=section&id=Shareholder%20Return%20Framework) The company established a new capital return framework targeting approximately 75% of free cash flow to shareholders, primarily via a $1.0 billion share repurchase program and a $0.10 per share quarterly dividend - The new framework targets returning **~75%** of free cash flow to shareholders, with a majority allocated to share repurchases[3](index=3&type=chunk) - The board has authorized a total of **$1.0 billion** for share repurchases[3](index=3&type=chunk) - A sustaining quarterly dividend of **$0.10 per share** has been established[3](index=3&type=chunk) [Operational Updates](index=1&type=section&id=Operational%20Updates) Core safely re-entered the Leer South mine, resuming development with longwall production expected mid-year, and has already captured one-third of the projected $110-$140 million in merger synergies - **Leer South Mine:** Following a combustion-related event, the mine has been safely re-entered, and development work has resumed, with longwall production on track to resume mid-year[4](index=4&type=chunk)[5](index=5&type=chunk) - **Synergy Capture:** In the first five weeks post-merger, the company has locked in approximately **one-third** of the value from its projected synergy range of **$110 million to $140 million**[5](index=5&type=chunk) [Financial and Liquidity Update](index=2&type=section&id=Financial%20and%20Liquidity%20Update) Core's post-merger liquidity stands at $1.1 billion, supported by an upsized $600 million revolving credit facility, with 2025 projections including $300-$330 million in capital expenditures and $130 million in one-time merger and Leer South event costs | Metric | Value | | :--- | :--- | | **Total Liquidity (as of Jan 14, 2025)** | **$1.1 billion** | | Cash and Equivalents | $590 million | | **Revolving Credit Facility** | **$600 million** | | Maturity | April 30, 2029 | | **Projected 2025 Expenditures** | | | Capital Expenditures | $300 - $330 million | | Merger-related Expenditures | ~$100 million | | Leer South Event Expenditures | ~$30 million | - Declared a quarterly dividend of **$0.10 per share**, payable on March 17, 2025[10](index=10&type=chunk) [Operating Results and Market Dynamics](index=2&type=section&id=Operating%20Results%20and%20Market%20Dynamics) Legacy CONSOL Energy reported Q4 2024 GAAP net income of $30.8 million and adjusted EBITDA of $170.0 million, with PAMC selling 7.0 million tons, amidst soft coal markets buffered by Core's committed thermal position and robust long-term metallurgical outlook Legacy CONSOL Q4 2024 Performance | Metric | Value | | :--- | :--- | | GAAP Net Income | $30.8 million | | Adjusted EBITDA | $170.0 million | | PAMC Tons Sold | 7.0 million | | PAMC Avg. Revenue per Ton | $63.28 | | PAMC Avg. Cash Cost per Ton | $36.46 | - Current market conditions are **soft**, with API-2 and High-Vol A coking coal prices near **three-year lows**[12](index=12&type=chunk) - The high C.V. thermal segment has a strong committed and priced position of **~24.0 million tons** at a projected price of **$61-$63 per ton**, counterbalancing market softness[13](index=13&type=chunk) - Long-term metallurgical market dynamics are **robust**, driven by new blast furnace capacity in Southeast Asia, rising Indian imports, and constrained supply from key producing countries[14](index=14&type=chunk) [2025 Guidance](index=3&type=section&id=2025%20Guidance) Core Natural Resources provided full-year 2025 guidance, projecting total sales volume between 72.5 and 79.0 million tons, detailing segment-specific volumes, committed positions, and average cash costs, with total capital expenditures forecasted at $300-$330 million Core Natural Resources 2025 Full-Year Guidance | Category | Metric | Value | | :--- | :--- | :--- | | **Sales Volume (millions of tons)** | | | | | Coking | 7.5 - 8.0 | | | High C.V. Thermal | 29.0 - 31.0 | | | Powder River Basin | 36.0 - 40.0 | | | **Total** | **72.5 - 79.0** | | **Metallurgical** | | | | | Total Committed (millions of tons) | 6.6 | | | Average Cash Cost ($/ton) | $96.00 - $100.00 | | **High C.V. Thermal** | | | | | Total Committed (millions of tons) | 24.6 | | | Average Cash Cost ($/ton) | $38.00 - $40.00 | | **Powder River Basin** | | | | | Total Committed (millions of tons) | 36.9 | | | Average Cash Cost ($/ton) | $13.75 - $14.25 | | **Corporate ($ millions)** | | | | | Capital Expenditures | $300 - $330 | [Outlook](index=4&type=section&id=Outlook) Management expressed strong confidence in Core's future, citing significant progress in integration, capital returns, and synergy capture, positioning the company's complementary coal segments and low-cost operations for long-term value generation - Management highlighted **key achievements** since the merger[22](index=22&type=chunk) - Swift integration efforts[22](index=22&type=chunk) - Adopted a capital return framework with a **$1 billion** buyback authorization[22](index=22&type=chunk) - Captured **one-third** of projected synergies[22](index=22&type=chunk) - Built a strong cash balance and enhanced capital structure[22](index=22&type=chunk) - The company is **confident** that its two complementary operating segments create a **unique opportunity** for value creation and cash generation in the years ahead[18](index=18&type=chunk) [Pre-Merger CONSOL Energy Financial Statements](index=5&type=section&id=Pre-Merger%20CONSOL%20Energy%20Financial%20Statements) [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20-%20CONSOL%20Energy%20Inc.) This section presents CONSOL Energy Inc.'s pre-merger income statement, showing 2024 total revenue of **$2.24 billion** (down from $2.57 billion in 2023) and net income of **$286.4 million** ($9.61/share diluted), a decrease from $655.9 million in 2023 CONSOL Energy Inc. Statement of Income (in thousands, except per share data) | | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | For the Year Ended Dec 31, 2024 | For the Year Ended Dec 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue and Other Income** | **$595,291** | **$649,439** | **$2,236,311** | **$2,568,877** | | Total Costs and Expenses | $563,637 | $470,591 | $1,905,664 | $1,791,005 | | **Net Income** | **$30,821** | **$157,067** | **$286,405** | **$655,892** | | **Diluted EPS** | **$1.04** | **$5.05** | **$9.61** | **$19.79** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20-%20CONSOL%20Energy%20Inc.) This section presents CONSOL Energy Inc.'s pre-merger balance sheet as of December 31, 2024, showing total assets increased to **$2.88 billion** (from $2.68 billion) and total equity grew to **$1.57 billion** (from $1.34 billion), primarily due to increased cash and cash equivalents CONSOL Energy Inc. Balance Sheet (in thousands) | | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | **$785,958** | **$601,006** | | Cash and Cash Equivalents | $408,240 | $199,371 | | **TOTAL ASSETS** | **$2,879,543** | **$2,675,003** | | **Total Current Liabilities** | **$518,684** | **$443,724** | | Total Long-Term Debt | $94,794 | $186,067 | | **Total Equity** | **$1,568,247** | **$1,343,442** | | **TOTAL LIABILITIES AND EQUITY** | **$2,879,543** | **$2,675,003** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20-%20CONSOL%20Energy%20Inc.) This section details CONSOL Energy Inc.'s pre-merger cash flows, showing 2024 net cash from operating activities at **$476.4 million** (down from $857.9 million), with net cash increasing by **$204.3 million** after investing and financing activities CONSOL Energy Inc. Statement of Cash Flows (in thousands) | | For the Year Ended Dec 31, 2024 | For the Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | **$476,390** | **$857,949** | | Net Cash Used in Investing Activities | ($165,031) | ($259,432) | | Net Cash Used in Financing Activities | ($107,085) | ($682,201) | | **Net Increase (Decrease) in Cash** | **$204,274** | **($83,684)** | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Reconciliation of Cost of Coal Sold](index=9&type=section&id=Reconciliation%20of%20Cost%20of%20Coal%20Sold) This section reconciles the non-GAAP 'Cash Cost of Coal Sold' to GAAP 'Operating and Other Costs' for the PAMC segment, showing Q4 2024 Average Cash Cost of Coal Sold per Ton at **$36.46**, a slight increase from Q4 2023 PAMC Segment Cost Reconciliation (Q4 2024, in thousands, except per ton) | | Value | | :--- | :--- | | Operating and Other Costs (GAAP) | $385,462 | | Less: Other Costs | ($130,270) | | **Cash Cost of Coal Sold (Non-GAAP)** | **$255,192** | | Total Tons Sold (millions) | 7.0 | | **Average Cash Cost of Coal Sold per Ton** | **$36.46** | [Reconciliation of Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) This section reconciles the non-GAAP 'Adjusted EBITDA' to GAAP 'Net Income', showing Q4 2024 consolidated Net Income of **$30.8 million** adjusted for various items to reach a consolidated Adjusted EBITDA of **$170.0 million** Consolidated Adjusted EBITDA Reconciliation (Q4 2024, in thousands) | | Value | | :--- | :--- | | Net Income (GAAP) | $30,821 | | Add: Interest, Taxes, DD&A, etc. | $61,237 | | **EBITDA** | **$92,058** | | Add: Stock-Based Comp, Merger Expenses, Litigation | $77,961 | | **Adjusted EBITDA (Non-GAAP)** | **$170,019** | [Cautionary Statement](index=11&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section provides a standard cautionary statement, noting that forward-looking statements are subject to risks and uncertainties, including merger integration, synergy realization, Leer South mine operations, and coal price volatility - Forward-looking statements are **not guarantees** of future performance and are subject to risks and uncertainties[32](index=32&type=chunk) - **Key risks** include: merger integration success, synergy realization, Leer South mine resumption timing, coal price changes, and regulatory changes[32](index=32&type=chunk)

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation m ...

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Consol Energy (CEIX) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.Consol Energy is one of 240 companies in the Oils-Energy group. The Oils-Energy group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank consid ...

Company Overview - Consol Energy (CEIX) is a notable stock in the Oils-Energy sector, currently holding a Zacks Rank of 1 (Strong Buy) indicating strong potential for outperformance [3] - The Zacks Consensus Estimate for CEIX's full-year earnings has increased by 1% over the past quarter, reflecting improved analyst sentiment and earnings outlook [4] Performance Comparison - Year-to-date, Consol Energy has returned 32.6%, significantly outperforming the average return of 10.1% for the Oils-Energy sector [4] - In contrast, another stock in the sector, Enerflex (EFXT), has achieved a year-to-date return of 100.9%, with a consensus EPS estimate increase of 49.1% over the past three months [5] Industry Context - Consol Energy is part of the Coal industry, which ranks 145 in the Zacks Industry Rank, with an average gain of 13.9% year-to-date, indicating that CEIX is outperforming its industry peers [6] - Enerflex belongs to the Oil and Gas - Exploration and Production - Canadian industry, currently ranked 82, which has seen a year-to-date increase of 4.5% [6] Sector Insights - The Oils-Energy sector consists of 240 individual stocks and is currently ranked 16 in the Zacks Sector Rank, which evaluates 16 different sector groups based on the average Zacks Rank of individual stocks [2] - Investors are encouraged to monitor both Consol Energy and Enerflex for their continued strong performance within the sector [7]