{"id":815377,"date":"2025-02-20T06:48:29","date_gmt":"2025-02-20T11:48:29","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/core-natural-resources-reports-fourth-quarter-2024-results\/"},"modified":"2025-02-20T06:48:29","modified_gmt":"2025-02-20T11:48:29","slug":"core-natural-resources-reports-fourth-quarter-2024-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/core-natural-resources-reports-fourth-quarter-2024-results\/","title":{"rendered":"Core Natural Resources Reports Fourth Quarter 2024 Results"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n Adopts new capital return framework heavily weighted toward share repurchases<\/i>\n <\/p>\n

\n Announces board authorization of $1 billion<\/span> for share repurchases<\/i>\n <\/p>\n

\n Takes steps in first five weeks to lock in one-third of projected synergies<\/i>\n <\/p>\n

\n Resumes development work with continuous miner units at Leer South mine<\/i>\n <\/p>\n

\n
\n CANONSBURG, Pa.<\/span>
\n <\/span>, Feb. 20, 2025<\/span><\/span> \/PRNewswire\/ — Today, Core Natural Resources, Inc. (NYSE: CNR) reported financial and operating results for the period ended December 31, 2024<\/span>.<\/p>\n

\n

\n
\n \"\"
\n <\/a>\n <\/p>\n<\/p><\/div>\n

\n Management Comments<\/b>\n <\/p>\n

“The Core team is off to an excellent start in integrating the combined operating, marketing and logistics portfolio into a cohesive, high-performing unit; capturing the substantial synergies created by this transformational merger; and laying the foundation for long-term value creation via the tight alignment of its global metallurgical and high calorific value thermal segments,” said Paul A. Lang<\/span>, Core’s chief executive officer.<\/p>\n

\n Shareholder Return Framework<\/b>\n <\/p>\n

“Core’s board of directors recently adopted a capital return framework designed to reward shareholders for their strong, ongoing support,” Lang said. “The centerpiece of this framework is the targeted return to shareholders of around 75 percent of free cash flow, with the significant majority of that return directed to share repurchases complemented by a sustaining quarterly dividend of $0.10<\/span> per share.”<\/p>\n

In strong support of this new framework, the board authorized a total of $1.0 billion<\/span> in share repurchases.<\/p>\n

\n Leer South Update<\/b>\n <\/p>\n

On January 15, 2025<\/span>, Core announced that it was sealing Leer South’s active longwall panel to extinguish isolated combustion-related activity there. Since that time, the Leer South team \u2013 in close collaboration with federal and state regulators \u2013 has safely re-entered the mine and resumed development work with continuous miner units. Additionally, the team has assessed \u2013 via the deployment of infrared cameras and other monitoring activities \u2013 that the mine’s longwall equipment was largely unaffected by the event.<\/p>\n

“On behalf of the board and the entire senior management team, I want to again commend the operations team as well as federal and state regulators for their exceptional work in managing this situation in a safe and efficient manner,” Lang said. “The team’s great efforts have placed us well on track to resume longwall production mid-year, in keeping with our originally indicated timeline.”<\/p>\n

\n Synergy Update<\/b>\n <\/p>\n

The Core team is sharply focused on driving forward with capturing the already identified $110 million<\/span> to $140 million<\/span> in synergies created by the combination. “In the five weeks since the merger’s completion, the team has executed on strategies that are expected to yield approximately one third of that value \u2013 at the midpoint of guidance \u2013 via the streamlining of the operational and corporate structure, coal blending opportunities, and early progress in the procurement arena,” Lang said. “Simultaneously, we are exploring additional avenues for value creation \u2013 via the sharing of best practices and the harnessing of the Core team’s collective expertise and creativity \u2013 as we seek to ensure that Core delivers on its vast potential.”<\/p>\n

\n Financial and Liquidity Update<\/b>\n <\/p>\n

Upon the merger’s closing on January 14, 2025<\/span>, Core had total liquidity of $1.1 billion<\/span>, including $590 million<\/span> in cash and cash equivalents and short-term investments.<\/p>\n

As previously announced, in connection with the closing of the merger, Core recently amended and extended the legacy CONSOL revolving credit facility, upsizing the facility commitments to $600 million<\/span> from the previous $355 million<\/span> while extending the maturity to April 30, 2029<\/span>. Additionally, Core successfully reduced the annual interest rate by 75 basis points while further enhancing financial flexibility.<\/p>\n

Prior to the merger’s close, CONSOL purchased at par \u2013 and in lieu of redemption \u2013 Arch’s outstanding tax-exempt bonds for $98.1 million<\/span> and plans to remarket these bonds at a later date, subject to market conditions.<\/p>\n

The Company projects merger-related cash expenditures of around $100 million<\/span> during 2025, as well as the expenditure of around $30 million<\/span> related to the combustion-related event at Leer South. Core estimates that capital expenditures will total between $300 million<\/span> and $330 million<\/span> during 2025.<\/p>\n

“Even with these projected uses of cash, we expect to have excess cash available to deploy to the capital return program during the balance of 2025,” said Mitesh Thakkar<\/span>, Core’s president and chief financial officer. “In addition, we expect the continued progress in synergy capture, along with the remarketing of the tax-exempt bonds, to provide a tailwind in terms of projected cash availability.”<\/p>\n

The Core board has declared a $0.10<\/span> per share quarterly dividend, payable on March 17, 2025<\/span>, to stockholders of record on March 3, 2025<\/span>.<\/p>\n

\n Operating Results<\/b>\n <\/p>\n

During the fourth quarter of 2024 \u2013 which was prior to the closing of the merger with Arch Resources in January 2025<\/span> \u2013 legacy CONSOL Energy generated GAAP net income of $30.8 million<\/span> and adjusted EBITDA1<\/sup> of $170.0 million<\/span>, which included one-time items such as the reserve for indemnification of the 1974 Plan litigation and merger-related expenses. CONSOL sold 7.0 million tons of Pennsylvania Mining Complex (“PAMC”) coal during the fourth quarter, generating coal revenue of $442.8 million<\/span> for the PAMC segment and an average coal revenue per ton sold of $63.28<\/span>. The average cash cost of coal sold per ton1<\/sup> for the PAMC segment was $36.46<\/span>.<\/p>\n

\n 1 – “Adjusted EBITDA,” “Cost of Coal Sold” and “Cash Cost of Coal Sold” are non-GAAP financial measures and “Average Cash Cost of Coal Sold per Ton” is an operating ratio derived from non-GAAP financial measures, each of which is reconciled to the most directly comparable GAAP financial measures below, under the caption “Reconciliation of Non-GAAP Financial Measures”.<\/i>\n <\/p>\n

\n Market Dynamics<\/b>\n <\/p>\n

Core’s two principal lines of business \u2013 metallurgical coal and high calorific value thermal coal \u2013 are experiencing soft market conditions at present, with API-2 and High-Vol A coking coal both trading at close to a three-year low.\u00a0\u00a0<\/p>\n

In the high calorific value thermal segment, Core’s substantial committed position \u2013 at relatively advantageous pricing \u2013 is acting to counterbalance the current softness. At present, the high C.V. thermal segment has a committed and priced position \u2013 inclusive of select collared volumes \u2013 of approximately 24.0 million tons at a projected price of between $61<\/span> and $63<\/span> per ton. Meanwhile, the domestic thermal market in PAMC’s core market area is showing signs of tightening in the wake of colder-than-normal temperatures in January and February.\u00a0<\/p>\n

Despite currently weak pricing levels, long-term market dynamics for Core’s metallurgical segment remain robust. New blast furnace capacity continues to come online across Southeast Asia<\/span>, and Indian imports of seaborne coking coal continue to march higher, climbing an estimated 5 percent in 2024. In addition, Chinese imports of seaborne coking coal increased by around 17 million tons in 2024, a trend that is acting to counterbalance higher Chinese steel exports. On the supply side, aggregate production in the primary supply countries for high-quality seaborne coking coal \u2013 Australia<\/span>, the U.S., and Canada<\/span> \u2013 remains around 40 million tons lower in 2024 than during the peak year a decade ago, despite historically strong pricing across that timeframe. Moreover, current pricing levels appear to be inducing supply rationalization among small, high-cost producers, which should act to support a healthier supply-demand balance over time.<\/p>\n

\n 2025 Guidance <\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n 2025<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n
\n Tons<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $ per ton<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n
\n Sales Volume <\/u>
\n <\/b>
\n
\n (in millions of tons)<\/u>
\n <\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Coking1<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n 7.5<\/span>\n <\/p>\n<\/td>\n

\n

\n –<\/span>\n <\/p>\n<\/td>\n

\n

\n 8.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n High C.V. Thermal2<\/sup><\/span>\n <\/p>\n<\/td>\n

\n

\n 29.0<\/span>\n <\/p>\n<\/td>\n

\n

\n –<\/span>\n <\/p>\n<\/td>\n

\n

\n 31.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Powder River Basin<\/span>\n <\/p>\n<\/td>\n

\n

\n 36.0<\/span>\n <\/p>\n<\/td>\n

\n

\n –<\/span>\n <\/p>\n<\/td>\n

\n

\n 40.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Total<\/span>\n <\/p>\n<\/td>\n

\n

\n 72.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 79.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n
\n Metallurgical <\/u>
\n <\/b>
\n
\n (in millions of tons)<\/u>
\n <\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Committed, Priced Coking<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 1.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 135.82<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Committed, Unpriced Coking<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 5.1<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Total Committed Coking<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 6.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Average Metallurgical Cash Cost4<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n $96.00 – $100.00<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n
\n High C.V. Thermal <\/u>
\n <\/b>
\n
\n (in millions of tons)<\/u>
\n <\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Committed, Priced3<\/sup><\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 24.0<\/span>\n <\/p>\n<\/td>\n

\n

\n $61.00 – $63.00<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Committed, Unpriced<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 0.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Total Committed High C.V. Thermal<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 24.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Average High C.V. Thermal Cash Cost<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n $38.00 – $40.00<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n
\n Powder River Basin <\/u>
\n <\/b>
\n
\n (in millions of tons)<\/u>
\n <\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Committed, Priced<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 36.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 14.78<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Committed, Unpriced<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 0.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Total Committed Powder River Basin<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 36.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Average Powder River Basin Cash Cost<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n $13.75 – $14.25<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n
\n Corporate <\/u>
\n <\/b>
\n
\n (in $ millions)<\/u>
\n <\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Capital Expenditures<\/span>\n <\/p>\n<\/td>\n

\n

\n $300 – $330<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n<\/tr>\n
\n

\n 1 – Excludes thermal byproduct<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n 2 – Includes crossover volumes<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n 3 – Range reflects inclusion of collared commitments<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n 4 – Metallurgical cash costs in the year’s second half \u2014 after the projected restart of the Leer South longwall \u2014 are projected to be in the low $90s\/ton.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n<\/tr>\n
\n

\n
\n Note – Core is unable to provide a reconciliation of Average Metallurgical Cash Cost, Average High C.V. Thermal Cash Cost and Average Powder River Basin Cash Cost guidance, which are operating ratios derived from non-GAAP financial measures, due to the unknown effect, timing and potential significance of certain income statement items.<\/i>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Outlook<\/b>\n <\/p>\n

“In just over a month as a combined company, the Core team has already made tremendous strides in unlocking value across a wide range of fronts,” Lang said.<\/p>\n

To date, the Core team has:<\/p>\n