Arch Resources and CONSOL Energy Secure Stockholder Approval for Merger

Arch Resources, Inc. ("Arch") (NYSE: ARCH) and CONSOL Energy Inc. ("CONSOL") (NYSE: CEIX) have announced that their respective stockholders have approved all proposals related to the pending merger of the two companies. The approval by both companies' stockholders is a significant milestone in the merger process, as it is one of the conditions for the closing of the pending combination.

The merger, which was first announced in August 2024, is expected to create a leading North American natural resource company focused on global markets. The combined company, to be named Core Natural Resources, will have a diversified portfolio of high-quality, low-cost coals, including metallurgical and high calorific value thermal coals. With mining operations and terminal facilities across six states, the combined company will own 11 mines, including one of the largest, lowest cost, and highest calorific value thermal coal mining complexes in North America and one of the largest, lowest cost, and highest quality metallurgical coal mine portfolios in the United States.



The merger is expected to generate substantial synergies, with an estimated $110 million to $140 million of annual cost and operational synergies. These synergies are expected to be realized through the optimization of support functions, enhanced marketing opportunities, and a significantly expanded logistics network. This will improve the ability to deliver coal reliably and efficiently to global customers, further strengthening the company's position in the global steel and energy markets.

The combined company is expected to have a strong balance sheet and a pro forma positive net cash position, which will support robust free cash flow and fuel capital returns to stockholders. The merger is expected to close on January 14, 2025, subject to the satisfaction or waiver of the remaining customary closing conditions. Following the closing, the combined company will be headquartered in Canonsburg, Pennsylvania, and its common stock is expected to trade on the New York Stock Exchange under the ticker symbol "CNR" beginning at the open of trading on January 15, 2025.

The merger between Arch Resources and CONSOL Energy is a strategic move that will create a leading producer and exporter of high-quality, low-cost coals with offerings ranging from metallurgical to high calorific value thermal coals. With a strong portfolio of longwall operations and a diversified coal portfolio, the combined company is well-positioned to meet the rising demand for critical resources and energy around the world. The approval of the merger by both companies' stockholders is a significant step towards the realization of these benefits and the creation of a new industry leader in the North American coal sector.