Core Natural Resources Reports Fourth Quarter 2024 Results: A Strong Start for the Merged Entity

Core Natural Resources, Inc. (NYSE: CNR), the newly formed entity resulting from the merger of CONSOL Energy and Arch Resources, has reported its financial and operating results for the period ended December 31, 2024. The company's strong start, marked by significant synergies captured and a robust capital return framework, has set the stage for long-term value creation.



Shareholder Return Framework
Core's board of directors has adopted a capital return framework that prioritizes shareholder value. The centerpiece of this framework is the targeted return to shareholders of around 75 percent of free cash flow, with the majority of that return directed to share repurchases. This approach is complemented by a sustaining quarterly dividend of $0.10 per share. In support of this new framework, the board authorized a total of $1.0 billion in share repurchases.

Leer South Update
On January 15, 2025, Core announced the sealing of Leer South's active longwall panel to extinguish isolated combustion-related activity. Since then, the Leer South team, in collaboration with federal and state regulators, has safely re-entered the mine and resumed development work with continuous miner units. The team has also assessed that the mine's longwall equipment was largely unaffected by the event. Core's exceptional management and regulatory collaboration have placed the company well on track to resume longwall production mid-year, in keeping with the originally indicated timeline.

Synergy Update
The Core team is sharply focused on capturing the already identified $110 million to $140 million 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, at the midpoint of guidance. This progress has been achieved through the streamlining of the operational and corporate structure, coal blending opportunities, and early progress in the procurement arena. Simultaneously, Core is exploring additional avenues for value creation by sharing best practices and harnessing the collective expertise of the Core team.

Financial and Liquidity Update
Upon the merger's closing on January 14, 2025, Core had total liquidity of $1.1 billion, including $590 million in cash and cash equivalents and short-term investments. The company has successfully amended and extended the legacy CONSOL revolving credit facility, upsizing the facility commitments to $600 million from the previous $355 million while extending the maturity to April 30, 2029. Additionally, Core has reduced the annual interest rate by 75 basis points, further enhancing financial flexibility.



In conclusion, Core Natural Resources' fourth quarter 2024 results demonstrate a strong start for the merged entity. The company's commitment to shareholder value, successful integration, and robust financial position bode well for its long-term prospects. Investors should closely monitor Core's progress as it continues to capture synergies and execute on its strategic initiatives.