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Dec 31, 2024
CONSOL Energy Q4 2024 Earnings Report
Reported financial and operating results for Q4 2024 and adopted a new capital return framework.
Key Takeaways
Core Natural Resources reported Q4 2024 results, highlighting a new capital return framework focused on share repurchases and progress in integrating operations following the merger with Arch Resources. The company is on track to resume longwall production at Leer South mine mid-year and has identified strategies to capture a significant portion of merger synergies.
Adopted a capital return framework heavily weighted toward share repurchases, authorizing $1 billion for this purpose.
Made progress capturing one-third of projected synergies in the first five weeks post-merger.
Resumed development work with continuous miner units at the Leer South mine.
Reported GAAP net income of $30.8 million and adjusted EBITDA of $170.0 million for legacy CONSOL Energy during the fourth quarter of 2024.
CONSOL Energy
CONSOL Energy
Forward Guidance
Core Natural Resources anticipates a strong position in both metallurgical and high calorific value thermal coal markets, supported by committed sales volumes and prices. The company is focused on capturing merger synergies and maintaining a robust capital structure.
Positive Outlook
- Swiftly moved ahead with integration efforts
- Adopted a capital return framework supported by a $1 billion share repurchase authorization
- Executed on strategies to capture one-third of the projected synergies
- Aggregated a significant cash balance in support of its liquidity target, operating needs, and capital return framework
- Built the foundation for a strong, long-term capital structure via the extension and upsizing of its legacy revolving credit facility, at advantageous rates.
Challenges Ahead
- Market conditions are soft for metallurgical coal and high calorific value thermal coal.
- Company projects merger-related cash expenditures of around $100 million during 2025.
- Expenditure of around $30 million related to the combustion-related event at Leer South.
- Capital expenditures will total between $300 million and $330 million during 2025.
- Metallurgical cash costs in the year's second half — after the projected restart of the Leer South longwall — are projected to be in the low $90s/ton.