Core Natural Resources (CNR) Q4 2024 earnings summary

Executive summary

• Completed transformational merger of CONSOL Energy and Arch Resources in January 2025, forming Core Natural Resources, with inaugural earnings call highlighting rapid integration and operational progress.

• Achieved early synergy capture, with over $40 million in annualized run-rate synergies within five weeks post-merger, representing about one-third of projected $110–$140 million.

• Board authorized $1 billion in share repurchases and adopted a capital return framework targeting 75% of free cash flow to shareholders, including a $0.10/share quarterly dividend.

• Safely resumed development at Leer South mine after a combustion event, with longwall mining expected to restart by mid-2025.

Financial highlights

• 2024 net income was $286 million ($9.61 per diluted share), adjusted EBITDA $655 million, and free cash flow $301 million.

• Q4 2024 GAAP net income was $30.8 million; adjusted EBITDA was $170.0 million, including one-time merger and litigation expenses.

• Full-year 2024 revenue was $1.79 billion, down from $2.11 billion in 2023; cash and cash equivalents at year-end 2024 were $408.2 million.

• Upsized revolving credit facility to $600 million, extended maturity to 2029, and reduced interest rate by 75 basis points.

• $590 million in cash and equivalents at merger close, with $100 million deployed to repurchase tax-exempt municipal bonds.

Outlook and guidance

• 2025 sales volume guidance: 7.5–8.0 million tons coking coal, 29.0–31.0 million tons high C.V. thermal, 36.0–40.0 million tons Powder River Basin, totaling 72.5–79.0 million tons.

• Metallurgical segment: $135.82/ton revenue on committed tons, cash cost $96–$100/ton, improving to low $90s post-Leer South restart.

• High-CV thermal segment: 24–24.6 million tons committed at $61–$63/ton, cash cost $38–$40/ton.

• PRB segment: 37 million tons contracted at $14.78/ton, cash cost $13.75–$14.25/ton.

• 2025 capital expenditures projected at $300–$330 million; $100 million merger-related cash outflow expected; $30 million for Leer South event.