Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $5.7 million, down from $53 million in Q4 2024 [10] - Tons shipped in Q1 2025 were 3.8 million, a decrease from 4.1 million tons in Q4 2024 [10] - Average realization for metallurgical coal sales in Q1 was $122.08 per ton, down from $132.63 per ton in Q4 [11] - Cost of coal sales for the metallurgical segment increased to $110.34 per ton in Q1, up from $108.82 per ton in Q4 [11] - Total liquidity as of March 31, 2025, was $485.8 million, down from $519.4 million at the end of 2024 [12] Business Line Data and Key Metrics Changes - Metallurgical coal segment realizations decreased to an average of $118.61 per ton in Q1, down from $127.84 in Q4 [10] - Incidental thermal portion of the metallurgical segment saw an increase in realization to $79.39 per ton in Q1, compared to $75.39 in Q4 [11] - CapEx for Q1 was $38.5 million, down from $42.7 million in Q4 [12] Market Data and Key Metrics Changes - Metallurgical coal markets remained under pressure with pricing levels deteriorating due to weak steel demand [20] - All four indices monitored by the company fell by 8% or more during Q1, with the Australian Premium Low Vol Index dropping 15.5% [20] - As of May 8, 2025, the Australian premium low vol index increased to $190.5 per metric ton, indicating slight recovery [22] Company Strategy and Development Direction - The company is focused on liquidity and safeguarding its financial position amid challenging market conditions [5] - Adjustments to sales volume guidance were made, with expected shipments now at 15.3 million tons, down from 16.7 million tons [7] - The Kingston Wildcat project is expected to continue on schedule despite the downward revision in CapEx [8] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for the remainder of the year due to weak steel demand and economic uncertainty [5] - The company has taken difficult actions, including cutting production at higher-cost operations and reducing wages [6] - Management remains optimistic about the Kingston Wildcat project, which is expected to ramp up to a full run rate of approximately 1 million tons per year by 2026 [19] Other Important Information - The company has secured an amendment to its asset-based lending facility, increasing its size from $155 million to $225 million [9] - The company did not repurchase any shares in Q1 under its buyback program due to continued softness in the metallurgical coal markets [14] Q&A Session Summary Question: Thoughts on cost cadence and recent cost-cutting measures - Management noted that significant production cuts have been made while maintaining cost guidance, indicating a good accomplishment [31] Question: CapEx reductions and growth-related impacts - Most capital reductions are related to closures, with some growth CapEx being managed in-house to reduce costs [35] Question: Realization pressures and market conditions - Management acknowledged that in a weak market, discounting against indices is common, but not universal [45] Question: Shipment guidance and domestic versus export expectations - The reduction in shipment guidance primarily affects export tons, with confidence in maintaining domestic shipments [43] Question: Opportunities for acquisitions in the current market - Management is cautious about pursuing M&A opportunities, focusing instead on internal projects like Kingston Wildcat [48]

Company Overview - Alpha sold 171 million tons of coal in 2024, with adjusted EBITDA of $408 million[11] - The company's sales mix in 2024 consisted of 76% export and 24% domestic[11] - Alpha's asset footprint includes 19 mines, 8 preparation plants, 2 standalone loadouts, 1 dock, and 1 export terminal[11] Financial Performance and Strategy - Alpha has a flexible cost structure that enables resilience through commodity price cycles[24] - The company's capital allocation priorities include maintaining a strong balance sheet and generating strong free cash flow[49] - Alpha plans to invest approximately $27 million per year in DTA for infrastructure and equipment upgrades over the next 5 years[49] - In 2024, Alpha's domestic average realized price was $152 per ton, while the export average realized price was $140 per ton[33] Market Outlook - The outlook for metallurgical coal remains robust with strong long-term demand and limited new supply[24] - Approximately 65% of steel is expected to be produced via BOF from 2025E to 2034E[27] Safety and Environment - Alpha's safety performance is approximately 40% better than the industry average[42] - The company has planted over 53 million trees since 2016[16]

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]

Financial Data and Key Metrics Changes - In Q1 2025, the company recorded net income attributable to common stockholders of $34 million or $0.27 per diluted share and adjusted EBITDA of $144 million, demonstrating strong performance amid challenging market conditions [27][28] - The company generated $30 million in free cash flow, net of $47 million of continued development at the Centurion mine [28] - As of March 31, the company held nearly $700 million in cash and over $1 billion in liquidity, maintaining a cash-positive net debt position [29] Business Line Data and Key Metrics Changes - The seaborne thermal segment achieved $84 million of adjusted EBITDA with 32% margins, exceeding production forecasts by exporting an additional 400,000 tons [29][30] - The seaborne metallurgical segment reported $13 million of adjusted EBITDA, with sales modestly below company targets due to lagging market conditions [30] - The US thermal mines generated $69 million of adjusted EBITDA, with the PRB mines exceeding expectations by shipping 19.6 million tons [31][32] Market Data and Key Metrics Changes - US generator inventories have declined by more than 25% on a days burn basis since the beginning of the year, indicating strong demand for coal [21] - Coal generation in the US is projected to increase by 5% for the full year, while US coal production is expected to decline by 6% [21] - Thermal coal prices reached four-year lows in March, prompting production rationalization as demand remains intact with 600 GW of coal generation under construction or in development, primarily in Asia [22] Company Strategy and Development Direction - The company is focused on cost control and managing its diversified global portfolio to navigate cyclical market softness [6][27] - The Centurion mine is on budget and ahead of schedule, projected to have a low cost structure and high margins in the steelmaking coal universe [7][36] - The company supports the US coal industry and aims to capitalize on rising electricity demand and the potential unretirement of coal plants [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the coal market dynamics, noting a significant increase in coal fuel generation by 20% over the prior year [11] - The company anticipates increasing demand throughout 2025, with a strong start to the year and expectations for a stronger second half [35] - Management highlighted the importance of sustainable longwall production at the Moranbah North mine and the potential impacts of the material adverse change notice [17][41] Other Important Information - The company notified Anglo American of a material adverse change related to the Moranbah North mine, which remains inactive following a gas ignition event [16][17] - The company is exploring a potential partial sale of the Centurion line, independent of the Anglo acquisition process [66] Q&A Session Summary Question: What is the process following the MAC notification regarding Moranbah North? - Management indicated a ten-day period for Anglo to respond, followed by a potential ninety-day cure period to resolve the MAC [42][43] Question: What constitutes a sustainable resolution for the MAC? - Management emphasized the need for sustainable longwall production and a clear timeline for resuming operations [46][47] Question: How does the MAC impact financing processes? - Financing discussions are currently on hold due to uncertainty surrounding the Moranbah North mine [49] Question: What are the implications of the executive orders signed to support US coal production? - Management noted that the orders aim to prevent further coal plant closures and encourage long-term contracts for coal supply [90][91] Question: How does the agreement with Associated Electric Cooperative affect capital deployment? - Management clarified that the agreement does not change capital investment strategies, as the company has always positioned itself for long-term operations [97][99]

Financial Data and Key Metrics Changes - In Q1 2025, the company recorded net income attributable to common stockholders of $34 million or $0.27 per diluted share, with adjusted EBITDA of $144 million [27] - The company generated $30 million in free cash flow, net of $47 million of continued development at Centurion [27] - As of March 31, the company held nearly $700 million in cash and had over $1 billion in liquidity, maintaining a cash positive net debt position [28] Business Line Data and Key Metrics Changes - The seaborne thermal segment achieved $84 million in adjusted EBITDA with 32% margins, exceeding production forecasts by exporting an additional 400,000 tons [28] - The seaborne metallurgical segment reported $13 million in adjusted EBITDA, with sales modestly below company targets due to lagging market conditions [29] - The US thermal mines generated $69 million in adjusted EBITDA, with the PRB mines exceeding expectations by shipping 19.6 million tons [30] Market Data and Key Metrics Changes - US generator inventories have declined by more than 25% on a days burn basis since the beginning of the year, indicating strong demand for coal [20] - Coal generation in the US is projected to increase by 5% for the full year, while US coal production is expected to decline by 6% [21] - Thermal coal prices reached four-year lows in March, but demand remains intact with 600 GW of coal generation under construction or in various stages of development, primarily in Asia [22] Company Strategy and Development Direction - The company is focused on cost control and managing its diversified global portfolio to navigate cyclical market softness [5] - The Centurion mine is on budget and ahead of schedule, projected to have a low cost structure and high margins in the steelmaking coal universe [6] - The company supports the US administration's efforts to revitalize the coal industry and expand coal-fired generation, aligning with rising electricity demand [7][10] Management's Comments on Operating Environment and Future Outlook - Management noted that coal fuel generation in the US is up 20% over the prior year, indicating a shift in market share from higher-priced natural gas [10] - The company anticipates increasing demand throughout 2025, with a strong start to the year and expectations for a stronger second half [34] - Management expressed confidence in the long-term demand for coal, citing substantial US coal demand for many years into the future [13] Other Important Information - The company notified Anglo American of a material adverse change (MAC) related to the Moranbah North mine, which remains inactive following a gas ignition event [16] - The acquisition of premium steelmaking coal mines in Australia is under scrutiny due to uncertainties surrounding the Moranbah North mine [17] - The company is exploring a potential partial sale of the Centurion line, independent of the Anglo acquisition process [63] Q&A Session Summary Question: What is the process following the MAC notification regarding Moranbah North? - Management indicated a ten-day period for Anglo to respond, followed by a potential ninety-day cure period to resolve the MAC [40] Question: What constitutes a sustainable resolution for the MAC? - Management stated that a sustainable longwall production must be established for the agreement to proceed, but specifics were not disclosed [45] Question: How does the MAC impact financing processes? - Financing discussions are currently on hold due to uncertainties surrounding the Moranbah North mine [48] Question: What differentiates the current event at Moranbah North from past incidents? - Management emphasized the significant potential impacts of the current situation, which they believe constitutes a MAC [53] Question: How will the executive orders supporting US coal production impact the business? - Management noted that the orders aim to prevent further coal plant closures and encourage long-term contracts, which could benefit the company [87]

Core Insights - Peabody reported a net income of $34.4 million for Q1 2025, a decrease from $39.6 million in the same quarter of the previous year, with diluted earnings per share at $0.27 compared to $0.29 [1][19] - Adjusted EBITDA for Q1 2025 was $144 million, down from $160.5 million year-over-year, indicating a focus on cost management amid low seaborne coal prices [1][19] - The company signed a multi-year contract to supply coal to Midwestern generating stations, reinforcing its market position [1][6] Financial Performance - Total tons sold in Q1 2025 reached 28.9 million, compared to 27.4 million in Q1 2024 [19] - Revenue for Q1 2025 was $937 million, down from $983.6 million in the same quarter of 2024 [19] - Operating cash flow for the quarter was $120 million, demonstrating strong cash generation capabilities [10] Segment Performance - Seaborne Thermal segment sold 4.4 million tons, with an Adjusted EBITDA of $84.2 million and a margin of 32% despite an 18% reduction in realized prices from Q4 2024 [4][6] - Seaborne Metallurgical segment reported 1.8 million tons sold, with Adjusted EBITDA of $13.2 million, reflecting a 9% reduction in benchmark pricing [7][8] - Powder River Basin segment achieved 19.6 million tons sold, with Adjusted EBITDA of $36.3 million, benefiting from strong U.S. coal demand [8][10] Operational Updates - The Centurion Mine is progressing ahead of schedule, with a target of 500,000 tons of sales in 2025 and expected longwall production starting in Q1 2026 [10][11] - Peabody's balance sheet remains strong, with over $1 billion in liquidity and a cash-positive net-debt position [10][11] Market Outlook - The company anticipates a light demand in Q2 2025 due to seasonal effects but is sold out for planned production in the Powder River Basin [13] - Metallurgical coal prices have rebounded from lows in March, indicating potential for improved revenue in upcoming quarters [13] Strategic Developments - Peabody notified Anglo American of a Material Adverse Change affecting its planned acquisition of steelmaking coal assets, related to issues at the Moranbah North Mine [11] - The company continues to focus on cost management and operational efficiency across all segments to navigate challenging market conditions [2][6]

Core Points - Peabody has notified Anglo American Plc of a Material Adverse Change (MAC) affecting its planned acquisition of steelmaking coal assets due to issues at the Moranbah North Mine, which has been inactive since a gas ignition event on March 31, 2025 [1][2] - The uncertainty surrounding the Moranbah North Mine has raised concerns about the acquisition's value, as a significant portion of it was tied to this mine, and there is currently no known timetable for resuming production [2] - If the MAC is not resolved satisfactorily within the specified timeframe, Peabody may choose to terminate the acquisition agreements [2] Company Overview - Peabody is a leading coal producer that provides essential products for affordable and reliable energy and steel production [3] - The company's commitment to sustainability is a core aspect of its strategy and operations [3]

Financial Data and Key Metrics Changes - Consolidated operating profit increased over 60% year-over-year, with net income rising by 7% and EBITDA increasing by 14% [5][12][13] - Operating profit for the first quarter of 2025 was $7,700,000 compared to $4,800,000 in the first quarter of 2024, while net income rose to $4,900,000 from $4,600,000 [12][14] Business Line Data and Key Metrics Changes - The Coal Mining segment saw operating profit rise to $3,800,000 from an operating loss of $400,000 in the prior year, with segment adjusted EBITDA increasing to $5,800,000 from $1,800,000 [14] - North American Mining's operating profit decreased to $2,000,000 from $2,400,000, while segment adjusted EBITDA remained comparable at $4,700,000 [15][16] - Minerals Management's operating profit was stable at $7,900,000, with adjusted EBITDA increasing to $9,800,000 from $8,900,000 [16] Market Data and Key Metrics Changes - The coal mining segment is expected to see a modest increase in deliveries in 2025 due to improved customer demand and the absence of temporary price concessions [16][17] - North American Mining is projected to improve results in 2025, with anticipated performance gains in the second half of the year [17][18] Company Strategy and Development Direction - The company is optimistic about the regulatory environment for fossil fuels, which is expected to support growth in coal, oil, and natural gas sectors [7][45] - The company is focusing on expanding its portfolio in the Minerals Management segment, with a budget of up to $20,000,000 annually for investments [11][18] - The company is exploring solar initiatives, particularly on reclaimed mine land, to leverage its existing assets [94][97] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a pivotal transition year, with expectations for continued improvement across all business segments [12] - The company anticipates a moderate year-over-year increase in consolidated operating profit, despite some expected challenges in the coal mining segment [16][19] Other Important Information - The company has consolidated cash of approximately $62,000,000 and debt of $96,000,000 as of March 31, 2025 [20] - A significant noncash settlement charge is anticipated upon the termination of the defined benefit pension plan, which will impact net income [19] Q&A Session Summary Question: Can you explain the recurring inventory charges in Mississippi Lignite? - Management explained that inventory impairment is due to high-cost coal from inefficiencies last year and a lower adjustment in price based on a long-standing contract formula [25][28] Question: What are the practical implications of a more favorable regulatory environment? - Management noted that the current administration is focused on developing U.S. resources, including coal, and has signed executive orders to support the fossil fuel industry [44][45] Question: Is there seasonality in North American Mining? - Management indicated that there is little seasonality in North American Mining, with operations primarily in Southern states [48] Question: What is the status of the asset held for sale? - Management confirmed that the asset consists of draglines and a building in North Dakota, which are actively being marketed [69][70] Question: How does the mitigation resources business operate? - Management described the mitigation resources business as lumpy, with periodic credit releases based on the lifecycle of mitigation banks [71][75]

Financial Data and Key Metrics Changes - Consolidated operating profit increased over 60% year-over-year, with net income rising by 7% and EBITDA increasing by 14% [5][12] - Operating profit for the first quarter of 2025 was $7,700,000 compared to $4,800,000 in the first quarter of 2024, while net income rose to $4,900,000 from $4,600,000 [12][14] - Adjusted EBITDA increased to $12,800,000 from $11,200,000 in the previous year [12][13] Business Line Data and Key Metrics Changes - The Coal Mining segment saw operating profit rise to $3,800,000 from an operating loss of $400,000 in the prior year, with segment adjusted EBITDA increasing to $5,800,000 from $1,800,000 [14] - North American Mining's operating profit decreased to $2,000,000 from $2,400,000, while segment adjusted EBITDA remained comparable at $4,700,000 [15] - Minerals Management's operating profit was stable at $7,900,000, with adjusted EBITDA increasing to $9,800,000 from $8,900,000 [16] Market Data and Key Metrics Changes - The coal mining segment's improvement was attributed to higher pricing and increased customer demand, particularly at Falkirk and Mississippi Lignite Mining Company [6][7] - North American Mining faced reduced customer demand, impacting operating profit, but is expected to improve in the second half of 2025 [8][17] Company Strategy and Development Direction - The company is optimistic about the regulatory environment for fossil fuels, with recent executive orders supporting coal and fossil fuel development [7][44] - The company is focusing on expanding its portfolio in Minerals Management and anticipates continued profitability in this segment [11][18] - The company is exploring solar initiatives, particularly on reclaimed mine land, to diversify its energy offerings [90][93] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a pivotal transition year, with expectations for moderate year-over-year increases in consolidated operating profit [12][19] - The company anticipates a return to normal operating levels at Mississippi Lignite Mining Company, although a reduction in sales price is expected to offset some improvements [17] - Management expressed confidence in the long-term growth potential of the mitigation resources business despite its current lumpiness [76] Other Important Information - The company has consolidated cash of approximately $62,000,000 and debt of $96,000,000 as of March 31, 2025 [20] - A significant noncash settlement charge is anticipated upon the termination of the defined benefit pension plan, which will impact net income [19] Q&A Session Summary Question: Can you explain the recurring inventory charges at Mississippi Lignite? - Management explained that inventory impairment is due to high-cost coal from inefficiencies and a lower adjustment in price based on a formula that considers historical indices [25][28] Question: What are the practical implications of a more favorable regulatory environment? - Management noted that the administration is focused on developing U.S. fossil fuel resources, which includes executive orders aimed at supporting coal [43][44] Question: Is there a way to track expansion in the mitigation resources business? - Management acknowledged the lack of a clear metric but confirmed that the business is growing rapidly [78][81] Question: What progress has been made on the solar initiative? - Management indicated ongoing development of solar projects, particularly on reclaimed mine land, while navigating uncertainties around tax credits [90][93]

Financial Data and Key Metrics Changes - Consolidated operating profit increased over 60% year-over-year, with net income rising by 7% and EBITDA increasing by 14% [5][12] - Operating profit for the first quarter of 2025 was $7.7 million, compared to $4.8 million in the first quarter of 2024, while net income rose to $4.9 million from $4.6 million [12][14] - Adjusted EBITDA increased to $12.8 million from $11.2 million in the previous year [12][13] Business Line Data and Key Metrics Changes - The Coal Mining segment saw operating profit rise to $3.8 million and adjusted EBITDA increase to $5.8 million, a significant improvement from an operating loss of $0.4 million and EBITDA of $1.8 million in the prior year [14] - North American Mining's operating profit decreased to $2 million from $2.4 million, while adjusted EBITDA remained comparable at $4.7 million [15] - Minerals Management's operating profit was stable at $7.9 million, with adjusted EBITDA increasing to $9.8 million from $8.9 million [16][19] Market Data and Key Metrics Changes - The coal mining segment is expected to see a modest increase in deliveries in 2025 due to improved customer demand and the absence of temporary price concessions [17] - North American Mining is projected to deliver improved results in 2025, with anticipated performance gains in the second half of the year [18] Company Strategy and Development Direction - The company is optimistic about the regulatory environment for the fossil fuel industry, with recent executive orders from the administration aimed at supporting coal and fossil fuel resources [7][40] - The company is focused on expanding its portfolio in the Minerals Management segment, with a budget of up to $20 million annually for investments [11] - The company is exploring opportunities in solar energy, particularly on reclaimed mine land, to leverage its existing assets [81][85] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a pivotal transition year, with expectations for moderate year-over-year increases in consolidated operating profit [12][20] - The company anticipates a significant improvement in the second half of 2025 due to trends in oil and natural gas prices [20] - Management expressed confidence in the profitability of the Mitigation Resources segment, which is expected to continue to grow [72] Other Important Information - The company plans to terminate its defined benefit pension plan, which will result in a significant noncash settlement charge but will eliminate future earnings volatility [20] - As of March 31, 2025, the company had consolidated cash of approximately $62 million and debt of $96 million [21] Q&A Session Summary Question: What leads to recurring inventory charges in Mississippi Lignite? - Management explained that inventory impairment is due to high-cost coal from inefficiencies and a lower adjustment in price based on a formula tied to historical indices [26][30] Question: What are the practical implications of a more favorable regulatory environment? - Management noted that the administration is focused on developing U.S. fossil fuel resources, including coal, and has signed executive orders to support this [40][41] Question: Is there seasonality in North American Mining? - Management indicated that there is little seasonality in North American Mining, with operations primarily in Florida [42] Question: What is the status of the asset held for sale? - The asset consists of draglines and a building in North Dakota, which are actively being marketed for sale [63][64] Question: How does the mitigation resources business operate? - Management described the mitigation resources business as lumpy, with periodic credit releases based on the lifecycle of mitigation banks [66][70]