#United States #Canonsburg #Core Natural #Resources Inc #CNR

Core Natural Resources Announces Strong Fourth Quarter Results

Core Natural Resources, Inc. (NYSE: CNR) revealed its fourth quarter operational and financial results for the period ending December 31, 2024, marking significant advancements since its recent merger with Arch Resources. As the company positions itself in a competitive coal market, CEO Paul A. Lang emphasized the effective integration of operations and the focus on capturing synergies from the merger.

Financial Highlights

Core's board has adopted a progressive capital return framework aiming to allocate about 75% of its free cash flow back to shareholders. This strategy is complemented by a substantial share repurchase plan, with the board authorizing $1 billion for buybacks. Alongside this framework, the company plans to pay a sustaining quarterly dividend of $0.10 per share, showcasing its commitment to returning value to shareholders.

During the fourth quarter, legacy CONSOL Energy achieved a GAAP net income of $30.8 million and an adjusted EBITDA of $170 million. The performance was driven by the sale of 7 million tons of coal, generating revenues of $442.8 million. The company’s average cash cost of coal sold remained competitively low at $36.46 per ton, indicating effective operational management.

Operational Updates and Synergies

Core is dedicated to capitalizing on the anticipated $110 million to $140 million in synergies identified from the merger. Within just five weeks post-merger, approximately one-third of these synergies have been secured through streamlined operations and cost-reducing initiatives.

In a significant operational update, Core announced the resumption of development work at the Leer South mine after addressing combustion-related activity. The operations team efficiently collaborated with federal and state regulators to ensure a safe work environment, and they are on track to resume longwall production by mid-year. This is critical as it reinforces Core’s commitment to operational excellence and safety.

Market Context and Future Outlook

Despite current pricing challenges in the metallurgical coal market, with prices nearing three-year lows, Core holds a robust position in both metallurgical and high calorific thermal coal segments. With a substantial volume of long-term contracts established at favorable prices, the company is prepared to navigate temporary market fluctuations while focusing on long-term growth.

The outlook for 2025 indicates an anticipation of solid sales volumes across different coal types, including 7.5 to 8 million tons of coking coal and 29 to 31 million tons of high calorific value thermal coal. As Core expands its operations, maintaining a disciplined approach to capital investments—estimated at $300 to $330 million—affirms its strategy for sustainable growth.

In summary, Core Natural Resources is not only laying the groundwork for a solid operational foundation but is also driving strategies to enhance shareholder value through return frameworks and performance improvement initiatives. With a strong cash position and an optimistic market outlook, Core is well-poised to deliver substantial growth in the coming years.