Core Natural Resources (CNR) Q3 2024 earnings summary

Executive summary

• Achieved strong financial and operational results in Q3 2024, overcoming challenges from the Francis Scott Key Bridge collapse and planned maintenance shutdowns.

• Reported GAAP net income of $95.6 million and diluted EPS of $3.22 for Q3 2024, with adjusted EBITDA of $179.2 million and free cash flow of $121.8 million.

• Pennsylvania Mining Complex (PAMC) produced a record 7.2 million tons in Q3, with lowest cash cost per ton since Q1 2023.

• Merger with Arch Resources progressing, with all antitrust approvals obtained and closing expected by end of Q1 2025.

• Safety performance remained strong, with key plants reporting zero recordable incidents and a below-average incident rate company-wide.

Financial highlights

• Q3 2024 net income was $95.6 million, down from $100.7 million in Q3 2023; adjusted EBITDA was $179.2 million, down from $185.5 million year-over-year.

• Total revenue and other income reached $574.9 million; free cash flow was $121.8 million; capital expenditures totaled $39.4 million.

• Diluted EPS was $3.22, up from $3.11 in Q3 2023.

• Cash and cash equivalents at quarter-end were $369.6 million, up from $256.8 million at June 30, 2024.

• Announced $0.25/share dividend, payable November 26, 2024.

Outlook and guidance

• PAMC coal sales volume for 2024 expected at 25.0–26.0 million tons; average coal revenue per ton sold projected at $64.50–$66.00.

• PAMC average cash cost of coal sold per ton expected at $37.50–$38.50; IMC coal sales volume guidance of 600–800 thousand tons.

• Approximately 18 million tons already contracted for 2025, with average price modeled in the low $60s at $115 API2.

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

• Merger with Arch Resources expected to close by end of Q1 2025, with anticipated benefits from increased scale and operational synergies.