CONSOL Energy (US:CEIX)2025-11-06 11:56Merger and Corporate Structure - The Company completed the Merger with Arch on January 14, 2025, with Arch becoming a wholly-owned subsidiary [140]. - Following the Merger, the Company now consists of four reportable segments: High CV Thermal, Metallurgical, Powder River Basin, and Baltimore Marine Terminal [141]. - The Merger is expected to realize meaningful operating synergies through optimized support functions and enhanced marketing opportunities [147]. - The merger expanded the company's presence in the metallurgical coal market, adding two longwall mines and two continuous miner mines in West Virginia [158]. - Consolidated revenues for the nine months ended September 30, 2025, were $1,531 million higher than the same period in 2024, largely due to the Merger [176]. Financial Performance - The Company reported consolidated revenues of $1,002.5 million for the three months ended September 30, 2025 [151]. - Consolidated revenues for the three months ended September 30, 2025, increased by $449 million compared to the same period in 2024, primarily due to the Merger, which contributed $513 million from legacy Arch operations [159]. - Consolidated revenues for the nine months ended September 30, 2025, reached $3,122.31 million, an increase from $1,590.84 million in the same period of 2024, reflecting a growth of approximately 96.3% [152]. - Segment realized coal revenue for the nine months ended September 30, 2025, was $2,602.03 million, compared to $1,319.74 million in 2024, representing a year-over-year increase of about 96.7% [152]. - The realized coal revenue per ton sold for the nine months ended September 30, 2025, was $71.63, compared to $66.39 in 2024, showing an increase of about 8.5% [152]. - Adjusted EBITDA for the three months ended September 30, 2025, was $141.182 million, compared to $179.178 million for the same period in 2024, reflecting a decrease of approximately 21.2% [155]. - Net income for the three months ended September 30, 2025, was $31.598 million, a decrease from $95.632 million in the same period in 2024 [155]. Costs and Expenses - The cash cost of coal sold for the three months ended September 30, 2025, was $672.23 million, compared to $276.65 million in the same period of 2024, reflecting a significant increase of approximately 143.5% [153]. - The cost of sales for the three months ended September 30, 2025, was $827.47 million, compared to $354.42 million in 2024, marking an increase of approximately 133.3% [153]. - General and administrative costs decreased to $34 million for the three months ended September 30, 2025, down from $36 million in the same period of 2024, primarily due to non-recurring transaction costs related to the Merger [162]. - Interest expense increased to $11 million for the three months ended September 30, 2025, compared to $5 million in 2024, primarily due to interest on WVEDA Bonds and additional equipment financing [165]. Production and Sales - Tons sold increased to 36,293 for the nine months ended September 30, 2025, up from 18,684 tons in the same period of 2024, indicating a growth of approximately 94.5% [152]. - The Metallurgical segment produced 2.3 million tons and sold 2.2 million tons, with realized coal revenue per ton sold at $101.60, down from $149.85 in 2024 [172]. - The PRB segment produced and sold 12.9 million tons and 13.0 million tons respectively, with Adjusted EBITDA of $13.6 million for the three months ended September 30, 2025 [174]. - Baltimore Marine Terminal throughput increased to 13.2 million tons, with revenue rising to $64 million, compared to $60 million in the prior year [193]. Liquidity and Capital Structure - Total liquidity as of September 30, 2025, was $995 million, consisting of cash, receivables financing, and revolving credit facility availability [197]. - The Company completed a Merger with Arch, increasing its Revolving Credit Facility from $355 million to $600 million and extending the maturity date to April 30, 2029 [196]. - The Company expects to maintain adequate liquidity through operating cash flow and existing credit facilities to meet short-term and long-term capital needs [195]. - The Company has a capital return framework allowing for share repurchases up to $1 billion, subject to certain covenants [229]. Risks and Market Conditions - The Company faces risks related to coal price volatility, economic conditions, and operational disruptions that could impact financial results [237]. - The Company emphasizes the uncertainty of future financial results and the potential impact of various risks on its operations [238]. - The Company has not experienced material changes in market risk exposures since December 31, 2024 [240].