Financial Data and Key Metrics Changes - The company reported a net loss of $37 million or $0.70 per diluted share for Q2 2025, with adjusted EBITDA of $144 million [19] - Free cash flow generated during the quarter was $131 million, with capital expenditures amounting to $89 million [19] - The company returned $87 million to investors through share buybacks and dividends, totaling $194 million returned in the first two quarters of 2025 [8][20] Business Line Data and Key Metrics Changes - The high CV thermal segment achieved a significant increase in sales volumes while markedly lowering unit costs [6] - The metallurgical platform, excluding the outage at Leer South, performed well, with the Leer mine achieving a second consecutive quarterly production record [6] - The Powder River Basin segment also delivered strong performance as power generators accelerated shipments ahead of the summer season [6] Market Data and Key Metrics Changes - Domestic thermal markets are strengthening due to rising demand, while seaborne thermal demand is recovering, particularly in Asia [12] - Global coking coal markets remain soft, pressured by sluggish steel production in Europe and China [12] - Coking coal exports from primary supply regions are down 7% through May, indicating potential supply cuts [14] Company Strategy and Development Direction - The company aims to return approximately 75% of free cash flow to shareholders through share repurchases and dividends, with a quarterly dividend of $0.10 per share [8] - The company is focused on operational excellence and synergy capture to enhance performance [7] - The recent legislation is expected to lower cash costs and enhance competitiveness in the Powder River Basin and West Elk operations [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the Leer South mine and its long-term potential despite current challenges [11] - The company anticipates continued demand growth in domestic power markets, driven by increasing energy requirements from AI and data centers [16] - Management highlighted the importance of maintaining existing coal plants to meet future energy demands [27] Other Important Information - The company has authorized $1 billion in share repurchases, with approximately $817 million remaining as of the end of Q2 [10] - The merger-related annual synergy target has been increased to a range of $150 million to $170 million, reflecting better-than-expected cost savings [29] Q&A Session Summary Question: Why was the buyback not larger given the good outlook? - Management noted that they have returned over 100% of free cash flow to shareholders in the first half of the year, indicating a more aggressive approach than initially guided [34][36] Question: Thoughts on the $100 million insurance recovery for Leer South? - Management indicated that these funds are available for capital return programs, as they see value in the stock [37] Question: Confidence in returning to normalized production at Leer South? - Management expressed high confidence in returning to production levels, with plans to recover longwall equipment in early fall [41][43] Question: Pricing expectations for domestic contracting in the metallurgical segment? - Management indicated constructive negotiations and a belief that significant decreases in pricing are unlikely [47] Question: Update on insurance claims and timing for recovery? - Management expects to resolve claims for Leer South and Baltimore Bridge by the end of the year, with a larger business interruption claim to be submitted later [56] Question: Working capital expectations for the second half? - Management anticipates some more working capital unwinding, particularly related to inventory reduction [58] Question: Insights on the recent Union Pacific and Norfolk Southern merger? - Management sees potential benefits in blending coal and improved access to East Coast terminals, but emphasizes the need for high service levels and reasonable rates [70][72] Question: Impact of trade tensions with India on exports? - Management hopes for resolution of trade tensions, emphasizing the flexibility of their coal products in various markets [76] Question: Pricing for high CV thermal coal in 2026? - Management provided pricing expectations linked to API two and indicated a focus on maximizing blending opportunities [64][88]

Financial Data and Key Metrics Changes - The company reported a net loss of $37 million or $0.70 per diluted share for Q2 2025, with adjusted EBITDA of $144 million and free cash flow of $131 million [18][19] - Increased cash and cash equivalents by $25 million and overall liquidity by $90 million, totaling $948 million at the end of Q2 [6][20] - Returned $87 million to investors through share buybacks and dividends, totaling $194 million returned in the first two quarters of 2025 [7][19] Business Line Data and Key Metrics Changes - The high CV thermal segment achieved a significant increase in sales volumes while markedly lowering unit costs [6] - The metallurgical platform executed well, with the flagship Leer mine achieving a second consecutive quarterly production record [6] - The Powder River Basin segment delivered strong performance as power generators accelerated shipments ahead of the summer season [6] Market Data and Key Metrics Changes - Domestic thermal markets are strengthening due to rising demand and summer temperatures, while seaborne thermal demand is recovering, particularly in Asia [11][12] - Global coking coal markets remain soft, pressured by sluggish steel production in Europe and China, with coking coal exports from primary supply regions down 7% through May [12][13] - The PJM capacity market auction cleared at a record price for the second consecutive year, indicating tightness in domestic power markets [14][27] Company Strategy and Development Direction - The company aims to return approximately 75% of free cash flow to shareholders through share repurchases and dividends, with a focus on operational excellence and synergy capture [7][29] - The company is positioned to navigate market troughs with low-cost, high-quality operations and flexible logistics [12][31] - The recent legislation is expected to enhance the competitiveness of the company's operations and reduce cash costs [16][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the Leer South mine and its ability to return to normalized production levels [41][42] - The company anticipates continued demand growth in domestic power markets, driven by increasing energy requirements from AI and data centers [14][27] - Management remains cautious about the global coking coal market but sees potential for recovery as high-cost production exits the market [12][13] Other Important Information - The company has authorized $1 billion in share repurchases, with approximately $817 million remaining as of the end of Q2 [9] - The merger-related annual synergy target has been increased to a range of $150 million to $170 million, reflecting additional benefits identified in various operational areas [29][30] Q&A Session Summary Question: Why was the buyback not larger given the good outlook? - Management noted that they have returned over 100% of free cash flow to shareholders in the first half of the year, indicating a more aggressive approach than initially guided [34][36] Question: How should the $100 million insurance recovery for Leer South be considered in capital returns? - Management indicated that the funds from the insurance recovery are available for all corporate purposes, including capital returns [34][38] Question: What is the confidence level regarding returning to normalized production at Leer South? - Management expressed high confidence in returning to normalized production levels, with plans to recover longwall equipment in early fall [41][42] Question: How is contracting looking for the metallurgical segment? - Management indicated constructive negotiations in the domestic contracting season, with expectations for stable pricing [46][48] Question: What are the thoughts on the recent Union Pacific and Norfolk Southern merger? - Management sees potential positives in improved access to East Coast terminals and blending opportunities, but emphasizes the need for high service levels and reasonable rates [67][70] Question: How are trade tensions with India affecting the business? - Management expressed hope for resolution of trade tensions, noting that India remains a significant trading partner [71][74]

Financial Performance - The company reported a net loss of $366 million, or $070 per diluted share, but adjusted EBITDA of $1443 million, which included $212 million of fire extinguishment expense at Leer South[7] - Net cash provided by operating activities was $2202 million, and free cash flow was $1311 million[7] - Adjusted EBITDA increased by 17% quarter-over-quarter, rising from $1235 million in Q1 to $1443 million in Q2[14, 15] - Free cash flow increased significantly from $491 million in Q1 to $1311 million in Q2[15] Capital Allocation - The company returned $871 million to investors through share repurchases and dividends in Q2, bringing the year-to-date total to $1937 million[7] - $819 million was invested to repurchase 12 million shares, representing approximately 2% of shares outstanding, at an average price of $6964 per share during Q2[21] - Year-to-date, $1832 million has been invested to repurchase 26 million shares, or about 5% of shares outstanding[21] - As of June 30, 2025, $8168 million remained authorized under the $1 billion share repurchase program[21] Operational Highlights - The company is targeting annual cost savings and operating synergies between $150 million and $170 million following the merger[7, 22] - Powder River Basin segment achieved sales volumes of 126 million tons[16] - High calorific value thermal segment cash cost of coal sold decreased by 8% quarter-over-quarter, from $4278 to $3947 per ton[30]

Part I. Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for Core Natural Resources, Inc. for Q2 and H1 2025 and 2024 are presented, with detailed accompanying notes [Consolidated Statements of (Loss) Income](index=5&type=section&id=Consolidated%20Statements%20of%20%28Loss%29%20Income) Q2 2025 net loss of $36.6 million, a downturn from Q2 2024's $58.1 million net income, was driven by increased post-merger costs | Financial Metric (in millions of USD) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,102.4M | $490.7M | $2,119.8M | $1,037.4M | | **(Loss) Income from Operations** | ($19.3M) | $71.9M | ($73.2M) | $195.9M | | **Net (Loss) Income** | ($36.6M) | $58.1M | ($105.8M) | $160.0M | | **Total Dilutive (Loss) Earnings per Share** | ($0.70) | $1.96 | ($2.06) | $5.35 | | **Dividends Declared per Common Share** | $0.10 | $— | $0.20 | $— | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew substantially to $6.21 billion as of June 30, 2025, from $2.88 billion at December 31, 2024, driven by the Arch merger | Balance Sheet Item (in millions of USD) | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,272.1M | $786.0M | | **Total Assets** | $6,208.7M | $2,879.5M | | **Total Current Liabilities** | $713.8M | $518.7M | | **Total Liabilities** | $2,441.2M | $1,311.3M | | **Total Equity** | $3,767.6M | $1,568.2M | | **Total Liabilities and Equity** | $6,208.7M | $2,879.5M | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to $110.5 million for H1 2025, while investing activities became a source of $182.8 million due to the merger | Cash Flow Activity (Six Months Ended June 30, in millions of USD) | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $110.5M | $193.7M | | **Net Cash Provided by (Used in) Investing Activities** | $182.8M | ($95.5M) | | **Net Cash Used in Financing Activities** | ($134.0M) | ($84.7M) | | **Net Increase in Cash and Cash Equivalents** | $159.4M | $13.6M | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the Arch Resources merger, segment restructuring, and debt refinancing, providing context for the financial results - On January 14, 2025, the company completed its merger of equals with Arch Resources, issuing 24.3 million shares of common stock for a total consideration of approximately **$2.58 billion**[40](index=40&type=chunk)[45](index=45&type=chunk) - Post-merger, the company reorganized into four reportable segments: High CV Thermal, Metallurgical, Powder River Basin (PRB), and Baltimore Marine Terminal[108](index=108&type=chunk) - In March 2025, the company refinanced existing debt by issuing new tax-exempt bonds, resulting in an **$11.7 million loss on debt extinguishment** for the six months ended June 30, 2025[94](index=94&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This MD&A section details the financial impact of the Arch merger, recent operational developments, and performance across new business segments [Recent Developments](index=34&type=section&id=Recent%20Developments) Key recent events include the Arch merger, a combustion incident at Leer South mine, and new legislation providing tax benefits for metallurgical coal - The merger with Arch was completed on January 14, 2025, leading to a restructuring into four new reportable segments: High CV Thermal, Metallurgical, Powder River Basin (PRB), and Baltimore Marine Terminal[126](index=126&type=chunk)[127](index=127&type=chunk) - A combustion incident at the Leer South mine on January 13, 2025, temporarily halted production, with expected Q3 2025 costs of **$20-$30 million** and anticipated insurance recoveries exceeding **$100 million**[128](index=128&type=chunk)[129](index=129&type=chunk) - The "One Big Beautiful Bill Act" (OBBBA), signed July 4, 2025, designates U.S.-produced metallurgical coal as a "critical material," qualifying for a **2.5% monetizable tax credit** from 2026 through 2029[130](index=130&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q2 2025 revenues increased to $1.1 billion due to the Arch merger, but a net loss was recorded from higher costs across the integrated company | Metric (in millions of USD) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $1,102.4M | $490.7M | +$611.7M | | **Cost of Sales** | $912.6M | $344.0M | +$568.6M | | **DD&A** | $169.0M | $55.0M | +$114.0M | | **G&A Costs** | $35.0M | $21.0M | +$14.0M | - The High CV Thermal segment's Adjusted EBITDA increased by **$23 million** in Q2 2025, driven by a **1.7 million ton increase** in PAMC sales volumes despite lower price realization[161](index=161&type=chunk) - The Metallurgical segment's Q2 2025 Adjusted EBITDA was negatively impacted by **$21 million** in costs from the Leer South mine incident and significantly lower metallurgical coal benchmark prices[162](index=162&type=chunk) - The Baltimore Marine Terminal's Adjusted EBITDA increased to **$15 million** in Q2 2025 from **$6 million** in Q2 2024, as throughput volumes recovered to **4.9 million tons** post-bridge collapse[164](index=164&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, total liquidity was $948 million, supported by an upsized revolving credit facility and a new $1 billion share repurchase program | Liquidity Component (in millions of USD) | June 30, 2025 | | :--- | :--- | | Cash and Cash Equivalents | $413M | | Securitization Facilities - Current Availability | $188M | | Revolving Credit Facility - Current Availability | $600M | | Less: Letters of Credit Outstanding | ($253M) | | **Total Liquidity** | **$948M** | - In connection with the merger, the Revolving Credit Facility was amended to increase commitments from **$355 million to $600 million** and extend maturity to April 30, 2029[183](index=183&type=chunk) - A new capital return framework approved in February 2025 authorizes up to **$1 billion in share repurchases**, with **$183.2 million** utilized in the first half of 2025[216](index=216&type=chunk)[194](index=194&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposures since its 2024 Annual Report on Form 10-K - There have been no material changes to the Company's exposures to market risk since December 31, 2024[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of June 30, 2025, excluding Arch's acquired operations from internal control assessment - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[227](index=227&type=chunk) - The acquired operations of Arch were excluded from the assessment of internal control over financial reporting, representing approximately **47% of Q2 2025 total revenues** and **53% of total assets** as of June 30, 2025[228](index=228&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material litigation, except as referenced in Note 14 of the financial statements - The company is not currently subject to any material litigation, except as disclosed in Note 14 to the Consolidated Financial Statements[231](index=231&type=chunk) [Item 1A. Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) This section highlights the potential adverse impact of new or existing tariffs and trade measures on the company's business and financial results - A key risk factor highlighted is the potential adverse impact of new or existing tariffs and other trade measures on the company's business, financial condition, and cash flows, particularly given the company's sales into export markets[233](index=233&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1,175,905 shares for approximately $82 million during Q2 2025 under its $1 billion repurchase program | Period | Total Shares Purchased | Average Price Paid per Share (USD) | | :--- | :--- | :--- | | May 1 - May 31, 2025 | 547,777 | $70.02 | | June 1 - June 30, 2025 | 628,128 | $69.31 | - The company utilized approximately **$82 million** to repurchase shares of its common stock during the three months ended June 30, 2025[235](index=235&type=chunk) - As of August 5, 2025, approximately **$816 million** remained available under the **$1 billion** stock repurchase program authorized on February 18, 2025[234](index=234&type=chunk) [Item 3. Defaults Upon Senior Securities](index=57&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[237](index=237&type=chunk) [Item 4. Mine Safety Disclosures](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters is included in Exhibit 95 to this quarterly report - Mine safety disclosures required by Section 1503(a) of the Dodd-Frank Act are provided in Exhibit 95 to the report[238](index=238&type=chunk) [Item 5. Other Information](index=57&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated a Rule 10b5-1 trading plan during the quarter ended June 30, 2025 - During the three months ended June 30, 2025, no director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement[239](index=239&type=chunk) [Item 6. Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including merger agreements, credit agreements, and officer certifications - Lists exhibits filed with the report, such as the Agreement and Plan of Merger, amendments to credit agreements, officer certifications pursuant to the Sarbanes-Oxley Act, and Mine Safety data[241](index=241&type=chunk)[258](index=258&type=chunk)

[Core Natural Resources Q2 2025 Earnings Release](index=1&type=section&id=Core%20Natural%20Resources%20Reports%20Second%20Quarter%202025%20Results) Core Natural Resources reports Q2 2025 results, covering financial, operational, synergy, and outlook [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Core Natural Resources reported Q2 2025 net loss, strong free cash flow, and increased merger synergy targets Q2 2025 Key Financial Metrics | Metric | Value (million $) | | :--- | :--- | | Revenues | $1,102.4 | | Net Loss | $(36.6) | | Diluted EPS | $(0.70) | | Adjusted EBITDA | $144.3 | | Net Cash from Operating Activities | $220.2 | | Free Cash Flow | $131.1 | - Returned **$87.1 million** to stockholders during the quarter through a combination of share buybacks and quarterly dividends[1](index=1&type=chunk)[2](index=2&type=chunk) - The company increased its target for merger-related annual synergies to a new range of **$150 million to $170 million**[1](index=1&type=chunk)[6](index=6&type=chunk) - Strengthened the balance sheet by increasing cash and cash equivalents by **$25 million** and overall liquidity by **$90 million**[1](index=1&type=chunk) [Operational Performance by Segment](index=1&type=section&id=Operational%20Update) High C.V. Thermal volumes rose, Metallurgical impacted by Leer South, Powder River Basin strong [High C.V. Thermal Coal Segment](index=1&type=section&id=High%20C.V.%20Thermal%20Coal%20Segment) High C.V. Thermal volumes up 18%, with $60.50/ton revenue and $39.47/ton cash cost Q2 2025 High C.V. Thermal Segment Performance | Metric | Value | Note | | :--- | :--- | :--- | | Sales Volume Change (%) | +18% | vs. Q1 2025 | | Realized Coal Revenue per Ton ($) | $60.50 | Modestly lower than Q1 | | Cash Cost of Coal Sold per Ton ($) | $39.47 | N/A | [Metallurgical Segment](index=1&type=section&id=Metallurgical%20Segment) Metallurgical segment sales were 1.9 million tons, impacted by a $21.2 million Leer South outage cost Q2 2025 Metallurgical Segment Performance | Metric | Value | | :--- | :--- | | Coking Coal Sales (million tons) | 1.9 | | Thermal Byproduct Sales (million tons) | 0.3 | | Realized Revenue per Ton (Coking) ($) | $114.71 | | Realized Revenue per Ton (Total Met) ($) | $104.22 | | Cash Cost of Coal Sold per Ton ($) | $95.93 | | Leer South Idle Costs (million $) | $21.2 | [Powder River Basin Segment](index=1&type=section&id=Powder%20River%20Basin%20Segment) Powder River Basin achieved 12.6 million tons in sales with strong cash margins Q2 2025 Powder River Basin Segment Performance | Metric | Value | | :--- | :--- | | Sales Volumes (million tons) | 12.6 | | Realized Coal Revenue per Ton ($) | $14.69 | | Cash Cost of Coal Sold per Ton ($) | $13.40 | [Merger Synergy & Capital Structure](index=2&type=section&id=Synergy%20and%20Financial%20Update) Core raised synergy targets, generated $131.1 million FCF, and optimized capital structure [Synergy Update](index=2&type=section&id=Synergy%20Update) Core increased annual synergy target to $150-$170 million for value, cost, and margin gains - The targeted range for annual synergy generation has been increased to between **$150 million and $170 million** per year[6](index=6&type=chunk) - Synergy efforts are expected to lead to increased product value, reduced operating costs, expanded operating margins, and a leaner corporate structure[7](index=7&type=chunk) [Financial, Liquidity, and Capital Return](index=2&type=section&id=Financial%2C%20Liquidity%2C%20and%20Capital%20Return%20Update) Core generated $131.1 million FCF, returned $81.9 million, and maintained $948 million liquidity - The company's capital return framework targets returning around **75%** of free cash flow to stockholders, primarily through share repurchases[7](index=7&type=chunk) Q2 2025 Capital Allocation | Item | Value | | :--- | :--- | | Free Cash Flow Generated (million $) | $131.1 | | Shares Repurchased (million) | 1.2 | | Value of Repurchases (million $) | $81.9 | | Quarterly Dividend Declared ($ per share) | $0.10 | - As of June 30, 2025, total liquidity was **$948 million**, including **$413 million** in cash and cash equivalents[10](index=10&type=chunk) - Completed the construction of its desired post-merger capital structure through consolidation of A/R facilities, a revolving credit facility upsizing, and a tax-exempt bond refinancing[11](index=11&type=chunk) [Key Operational Updates](index=2&type=section&id=Leer%20South%20Update) This section details the operational status and recovery plan for the Leer South mine [Leer South Mine Update](index=2&type=section&id=Leer%20South%20Mine%20Update) Leer South mine resealed, recovery by October, $20-30M Q3 costs, >$100M insurance recoveries - The mine was re-entered on June 10, 2025, but had to be evacuated and resealed on June 26, 2025, due to an increase in carbon monoxide levels[12](index=12&type=chunk)[13](index=13&type=chunk) - The company's objective is to recover and reposition the longwall equipment by the end of October and resume longwall production shortly thereafter[13](index=13&type=chunk) Leer South Financial Impact | Item | Expected Value (million $) | | :--- | :--- | | Q3 2025 Fire Extinguishment & Idle Costs | $20 - $30 | | Total Insurance Recoveries | > $100 | [Market & Policy Environment](index=3&type=section&id=Market%20%26%20Policy%20Environment) Core secured 2025 coal volume commitments and noted favorable pro-coal policy developments [Marketing Update](index=3&type=section&id=Marketing%20Update) Core nearly fully committed for 2025 sales, High C.V. Thermal 30.0M tons, PRB $14.40/ton - High C.V. Thermal: **30.0 million tons** committed for 2025 delivery at a projected realized revenue of **$60 to $62 per ton**[16](index=16&type=chunk) - Metallurgical: Commitments in place for virtually all projected 2025 coking coal sales volumes, with the majority tied to market-based pricing[17](index=17&type=chunk) - Powder River Basin: Fully committed for 2025 at a projected realized revenue of **$14.40 per ton**[17](index=17&type=chunk) [Policy Developments](index=3&type=section&id=Policy%20Developments) Favorable Trump policies include executive orders and OBBBA for tax credits and lower royalty rates - In April 2025, President Trump issued executive orders to reduce the regulatory burden on U.S. coal-based power plants[18](index=18&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA) was signed into law, designating U.S.-produced metallurgical coal as a 'critical material' under Section 45X, making the company eligible for a **2.5%** monetizable tax credit on production costs for four years starting in 2026[20](index=20&type=chunk) - OBBBA also lowers the royalty rate on tons produced on federal lands, which will benefit Core's Powder River Basin and West Elk mines[20](index=20&type=chunk) [Company Outlook & Guidance](index=4&type=section&id=Outlook) Management confident in stockholder value, providing detailed 2025 guidance for sales, costs, and capex [Management Outlook](index=4&type=section&id=Management%20Outlook) Management leverages strengths and capital return programs for stockholder value and market recovery - Management believes the company is uniquely equipped to create stockholder value in a wide range of market environments due to its world-class mines, strategic logistics, strong balance sheet, and cash-generating capabilities[23](index=23&type=chunk) [2025 Full-Year Guidance](index=5&type=section&id=2025%20Full-Year%20Guidance) Full-year 2025 guidance projects 81.5-87.0M tons sales, with detailed segment costs and capex 2025 Full-Year Guidance | Category | Metric | Guidance | | :--- | :--- | :--- | | **Sales Volume** | | | | | Coking (million tons) | 7.5 - 8.0 | | | High C.V. Thermal (million tons) | 29.0 - 31.0 | | | Powder River Basin (million tons) | 45.0 - 48.0 | | **Cash Cost of Coal Sold per Ton** | | | | | Metallurgical ($/ton) | $95.00 - $99.00 | | | High C.V. Thermal ($/ton) | $38.00 - $40.00 | | | Powder River Basin ($/ton) | $12.75 - $13.25 | | **Corporate** | | | | | Capital Expenditures (million $) | $300 - $330 | | | DD&A (million $) | $560 - $590 | [Financial Statements & Reconciliations](index=7&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section presents Q2 2025 cash flow statements and non-GAAP reconciliations [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q2 2025 net loss $36.6M, $220.2M operating cash, $27.6M cash increase Q2 2025 Condensed Statement of Cash Flows (in thousands) | Item | Three Months Ended June 30, 2025 (thousands $) | | :--- | :--- | | Net Cash Provided by Operating Activities | $220,161 | | Net Cash Used in Investing Activities | $(100,222) | | Net Cash Used in Financing Activities | $(92,364) | | **Net Increase in Cash and Cash Equivalents** | **$27,575** | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP revenues/costs to non-GAAP metrics like Adjusted EBITDA and FCF - Reconciles GAAP revenues of **$1,102.4 million** to Non-GAAP Segment Realized Coal Revenue of **$924.7 million** for Q2 2025[31](index=31&type=chunk) - Reconciles GAAP Cost of Sales of **$912.6 million** to Non-GAAP Segment Cash Cost of Coal Sold of **$713.7 million** for Q2 2025[34](index=34&type=chunk) - Reconciles GAAP Net Loss of **$(36.6) million** to Adjusted EBITDA of **$144.3 million** for Q2 2025[36](index=36&type=chunk) - Reconciles Net Cash Provided by Operating Activities of **$220.2 million** to Free Cash Flow of **$131.1 million** for Q2 2025[38](index=38&type=chunk)

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]

Financial Data and Key Metrics Changes - The company reported a net loss of $69 million or $1.38 per diluted share, with adjusted EBITDA of $123 million for Q1 2025 [19][21] - Generated $49 million in free cash flow and incurred $65 million in capital expenditures during the quarter [19][21] - The adjusted EBITDA figure does not add back $36 million in costs related to the Leer South idling [34][36] Business Line Data and Key Metrics Changes - The high CV thermal segment sold 7.1 million tons at a realized coal revenue of $63.18 per ton, with cash costs of $42.78 per ton [21][22] - The metallurgical segment sold 2.3 million tons, achieving a realized coal revenue of $113.7 per ton for coking coal, with cash costs of $91 per ton [22] - The PRB segment sold 10.7 million tons at a realized coal revenue of $14.93 per ton and cash costs of $12.44 per ton [22] Market Data and Key Metrics Changes - U.S. power generation increased by 3.8% year-to-date, with coal generation up 20% in 2025 [13][25] - Domestic demand for high CV thermal coal is supported by strong power prices and increased coal-fired generation [25] - The metallurgical segment's long-term market outlook remains positive despite current weak pricing levels, with significant growth in Indian imports of coking coal [15][25] Company Strategy and Development Direction - The company is focused on capturing merger-related synergies, now projected to be between $125 million and $150 million annually [9][26] - A capital return framework aims to return approximately 75% of free cash flow to shareholders through buybacks and dividends [7][21] - The company is strategically positioned to capitalize on global coal market dynamics with a strong balance sheet and operational excellence [16][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market conditions are soft but expect improvements as production curtailments in major thermal supply regions occur [12][15] - The company anticipates significant free cash flow generation in the second half of the year, particularly with the expected restart of operations at Leer South [16][19] - Management expressed confidence in the company's ability to navigate the current uncertainties in the market and maintain operational momentum [12][16] Other Important Information - The company executed a capital return program, repurchasing 1.4 million shares for approximately $101 million at an average price of $73.52 per share [7][21] - The board has authorized a total of $1 billion in share repurchases, with approximately $900 million remaining at the end of Q1 [8][9] - The company is actively pursuing additional synergies and cost-saving measures post-merger [26][30] Q&A Session Summary Question: Did the adjusted EBITDA include the idling costs? - Management confirmed that the adjusted EBITDA of $123 million does not add back the $36 million of Leer South idling costs [34][36] 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 guidance remains favorable [38][74] Question: Can you provide an update on the longwall operations at Leer South? - Management stated that they are preparing to reenter the mine and expect to resume operations soon, with a focus on addressing any potential issues with electronics [65][68] Question: How does the company view the current capital return strategy? - Management expressed confidence in continuing to deploy capital towards share buybacks, especially given the current stock valuation [60][92] Question: What are the expectations for future coal demand and pricing? - Management highlighted strong domestic demand and potential improvements in pricing due to supply constraints and geopolitical factors [78][80]

Financial Performance & Capital Allocation - Core Natural Resources reported a net loss of $69.3 million in Q1 2025, including $49.2 million in merger-related expenses and an $11.7 million loss from debt extinguishment[8] - Adjusted EBITDA for Q1 2025 was $123.5 million[8] - The company returned $106.6 million to investors in Q1 through share buybacks and dividends[8] - Approximately 1.4 million shares, nearly 3% of outstanding shares, were repurchased[9] - Share buybacks accounted for $101.3 million of the capital returned, while dividends totaled $5.4 million[12] Synergy & Operations - The merger synergy target was increased by 10% at the midpoint, now expected to be between $125 million and $150 million annually[8, 13] - Leer South is on track to fully resume longwall operations by mid-year[8, 17] Market Position & Strategy - Core sells to ~25 countries located on five continents[20] - The company projects high calorific value thermal segment sales volumes for 2025 to be 29 to 31 million tons, with 26 million tons already committed and priced[98] - Core estimates that it supplies ~25% of the world's High-Vol A coking coal[66]

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)