Core Natural Resources (CNR) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong operational results and agility in overcoming the Francis Scott Key Bridge collapse, with 5.8 million tons sold and $59 million in free cash flow, despite significant export constraints and a sharp year-over-year decline in revenue and net income.

• Adjusted EBITDA was $125 million, net income was $58 million, and diluted EPS was $1.96, all down significantly from Q2 2023 due to lower coal prices and export volumes.

• Maintained strong liquidity with $529 million available as of June 30, 2024, and no borrowings under major credit facilities.

• Share repurchases totaled $71 million year-to-date, reducing shares outstanding by 18% since December 2022.

• Safety performance remained strong, with zero recordable incidents at key facilities in Q2 2024.

Financial highlights

• Q2 2024 revenue was $501 million, net income $58 million, adjusted EBITDA $125 million, and free cash flow $59 million, all down sharply from Q2 2023.

• PAMC sold 5.8 million tons at an average revenue of $66.83/ton, with average cash cost per ton rising to $39.82 and cash margin per ton falling to $27.01.

• CONSOL Marine Terminal throughput was 2.3 million tons, with $12 million in revenue and $5 million in adjusted EBITDA, all down year-over-year.

• Capital expenditures for Q2 2024 were $55 million, up from the prior year.

• Cash and cash equivalents plus short-term investments totaled $299 million at quarter-end.

Outlook and guidance

• Raised guidance for PAMC average coal revenue per ton to $63.50–$66.50 and sales volume to 24.5–26 million tons for 2024.

• IMC sales volume guidance maintained at 700,000–900,000 tons, with full ramp-up expected by year-end.

• Total capital expenditures for 2024 expected at $165–$190 million.

• No further impact from the bridge collapse is expected; operations have normalized.

• Company expects to meet all material cash requirements with existing liquidity and cash flow.