CONSOL Energy (US:CEIX)2025-05-08 11:16Part I. Financial Information Financial Statements 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, 202512 - 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 Terminal108 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 Post-merger analysis shows revenue growth to $1.02 billion, segment performance shifts, and strong liquidity of $858 million Recent Developments and Our Business 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 coals124128 - 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-2025126 Operational Performance 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 mine155 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 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, 2029159171 - On February 18, 2025, the Board approved a new capital return framework, including a share repurchase program of up to $1 billion118191 - In Q1 2025, the company repurchased 1,377,294 shares for approximately $101 million at an average price of $73.52 per share120192210 - On March 27, 2025, the company borrowed proceeds from new tax-exempt bonds totaling approximately $307 million to refinance existing debt and fund facility costs93185 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 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, 2024200 Controls and Procedures 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, 2025202 - The company excluded the acquired operations of Arch from its assessment of internal control over financial reporting for Q1 2025, as permitted for recent acquisitions203 Part II. Other Information Legal Proceedings 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 Liabilities206 Risk Factors 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. goods208 Unregistered Sales of Equity Securities and Use of Proceeds 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 available209 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 The company reports no defaults upon its senior securities during the first quarter of 2025 - None212 Mine Safety Disclosures 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-Q213 Other Information 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 Stock214 Exhibits This section lists all exhibits filed with the Form 10-Q, including merger agreements, credit facility amendments, and officer certifications