Core Natural Resources, Inc. · NYSE:CNR
Core Natural Resources — Q1 2025 Earnings Presentation
37 slides from Core Natural Resources's earnings presentation, May 8, 2025
Slide 1: Core Natural Resources Investor Presentation
Core Natural Resources Investor Presentation May 8, 2025 Exhibit 99.2
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains certain “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements may be identified by words such as “anticipates,” “believes,” "targets," “could,” “continue,” “estimate,” “expects,” “intends,” “will,”
Slide 3: First Quarter 2025 Highlights
First Quarter 2025 Highlights
Slide 4: Q1 2025 Executive Summary
Q1 2025 EXECUTIVE SUMMARY Since completing the merger on January 14, Core has made exceptional progress in integrating its operating portfolio and beginning to unlock the tremendous potential of the new company. – Paul Lang, CEO Reports a net loss of $69.3 million, or $1.38 per diluted share, in Q1,
Slide 5: Capital Return Program
CAPITAL RETURN PROGRAM DURING Q1, CORE RETURNED $106.6 MILLION TO STOCKHOLDERS UNDER ITS RECENTLY LAUNCHED CAPITAL RETURN PROGRAM As part of the effort, Core bought back around 1.4 million shares of stock, or nearly 3% of shares outstanding Reduction In Shares Outstanding Since February 20, 2025 (in
Slide 6: Core Is Stronger Together, Boosting Its Synergy Target
CORE IS STRONGER TOGETHER, BOOSTING ITS SYNERGY TARGET BY 10% AT MIDPOINT TO $125 TO $150 MILLION ANNUALLY Expected cost savings and operating synergies to be realized within 6 to 18 months following the close and then annually – with the expectation of additional synergy identification and capture
Slide 7: Committed Volumes: Contracted Position for Core's Two Primary Lines of Business
COMMITTED VOLUMES CONTRACTED POSITION FOR CORE’S TWO PRIMARY LINES OF BUSINESS High Calorific Value Thermal Segment (projected volumes and committed and priced position, in short tons and realized coal revenue per ton sold, at 3/31/25) Metallurgical Segment (projected coking coal volumes and committ
Slide 8: Leer South Remains on Track for Full Resumption of Longwall Operations
LEER SOUTH REMAINS ON TRACK FOR A FULL RESUMPTION OF LONGWALL OPERATIONS BY MID-YEAR In mid-January 2025, Core announced that it was temporarily sealing Leer South’s active longwall panel to extinguish isolated combustion-related activity Since that time, Leer South has: Safely sealed the affected a
Slide 9: Core at a Glance
Core at a Glance
Slide 10: Core at a Glance
CORE AT A GLANCE 1 2024 CONSOL Energy Inc. (“CONSOL”) revenue of $2,164 million, excluding miscellaneous other income not derived from customers and gain on sale of assets to conform historical financial information to current presentation; 2024 Arch Resources, Inc. (“Arch”) revenue of $2,433 millio
Slide 11: Leading Metallurgical and High C.V. Thermal Portfolios Supported by Logistical Network
11 mines anchored by eight longwalls 85 mm 2024 total tons sold 27 Mtpa export capacity via ownership interests in two marine terminals KEY STATISTICS Baltimore Marine Terminal (“CMT”) Accessible terminal capacity Core Natural Resources headquarters Vancouver Long Beach Houston New Orleans Dominion
Slide 12: Two Complementary, Core Lines of Business Serving Multiple Growth Markets
TWO COMPLEMENTARY, CORE LINES OF BUSINESS SERVING MULTIPLE GROWTH MARKETS AND GEOGRAPHIES CORE NATURAL RESOURCES UNDERPINNED BY TWO HIGH-QUALITY COAL PORTFOLIOS – METALLURGICAL AND HIGH C.V. THERMAL BROAD-BASED SET OF METALLURGICAL COALS SERVING STEEL PRODUCERS GLOBALLY CORE SEGMENTS SERVE MULTIPLE
Slide 13: Clear Strategy to Drive Growth and Create Stockholder Value
CLEAR STRATEGY TO DRIVE GROWTH AND CREATE STOCKHOLDER VALUE
Slide 14: Core Is Strategically Positioned to Serve Two Growing Segments of the Global Coal Market
Core is strategically positioned to serve two constructive and growing segments of the global coal market
Slide 15: Global Seaborne Demand for Metallurgical Coal Expected to Grow
METALLURGICAL SEGMENT GLOBAL SEABORNE DEMAND FOR METALLURGICAL COAL IS EXPECTED TO GROW STEADILY AND CONSISTENTLY THROUGH MID-CENTURY Global seaborne coking coal demand is expected to continue to climb through 2050, buoyed by continued economic development and urbanization in India and the rest of S
Slide 16: Projected Steel Capacity Growth in Southeast Asia
METALLURGICAL SEGMENT PROJECTED STEEL CAPACITY GROWTH IN SOUTHEAST ASIA IS PROJECTED TO BE SIGNIFICANT AND LARGELY BLAST FURNACE DRIVEN Wood Mackenzie estimates that Southeast Asia’s steel production will grow by more than 55% from 2024 to 2030 – from 59 million tons to 93 million tons – mostly via
Slide 17: Long-Run Metallurgical Coal Pricing Has Shifted Higher
METALLURGICAL SEGMENT LONG-RUN METALLURGICAL COAL PRICING HAS SHIFTED HIGHER The average long-run coking coal price continues to shift higher in the face of limited new investment, ESG pressures, and supportive long-term demand The coking coal benchmark has averaged $243 per metric ton on an inflati
Slide 18: Seaborne Thermal Coal Demand Hit Another All-Time High in 2024
HIGH C.V. THERMAL SEGMENT SEABORNE THERMAL COAL DEMAND HIT ANOTHER ALL-TIME HIGH IN 2024 Seaborne thermal coal demand has risen significantly since 2000 While global thermal coal consumption is likely to peak at some point, we don’t expect that peak to come anytime soon Even when that peak is reache
Slide 19: Global Cement Production Projected to Climb Through 2050
HIGH C.V. THERMAL SEGMENT GLOBAL CEMENT PRODUCTION IN THE WORLD EXCLUDING CHINA IS PROJECTED TO CLIMB MARKEDLY THROUGH 2050 Global Cement Production (in millions of metric tons) Source: Wood Mackenzie, Internal The vast majority of the world’s cement production relies on coal as a feedstock – with e
Slide 20: Indian Coal Consumption for Cement and Industrial Uses Projected to Increase
HIGH C.V. THERMAL SEGMENT INDIAN COAL CONSUMPTION FOR CEMENT AND INDUSTRIAL USES IS PROJECTED TO INCREASE BY MORE THAN 60 MILLION TONS BY 2050 Core’s high calorific value coals are uniquely positioned to capitalize on this growth Indian Seaborne Coal Demand For Cement Production (actual and projecte
Slide 21: Two Premier Portfolios Serving Global Markets
Two Premier Portfolios Serving Global Markets
Slide 22: Best-in-Class Longwall Operations Among the World's Most Productive and Cost Competitive
CORE’S BEST-IN-CLASS LONGWALL OPERATIONS RANK AMONG THE WORLD’S MOST PRODUCTIVE AND COST COMPETITIVE 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile U.S. Metallurgical Coal Cost Curve (2024) Cash Costs (US$ per metric ton) Global Seaborne Thermal Cost Curve (2024) Cash Costs (US$ per metric ton)
Slide 23: Premier Global Metallurgical Portfolio
PREMIER GLOBAL METALLURGICAL PORTFOLIO Core is an essential link in the world’s steel value chain via a broad slate of metallurgical products More than 75% of Core’s metallurgical production – inclusive of crossover tons – is produced via low-cost, world-class longwall operations Core’s metallurgica
Slide 24: Premier High C.V. Thermal Portfolio
PREMIER HIGH C.V. THERMAL PORTFOLIO The Pennsylvania Mining Complex (PAMC) is one of the largest, most efficient coal mining complexes in North America, producing ~26 million tons annually for sale into seaborne and domestic markets The West Elk mine in Colorado is expected to produce ~5 million ton
Slide 25: Broad, Diverse Set of Coal Qualities Serving Multiple Growth Markets
AMERICAS (EXCLUDING U.S.) ~15% BROAD, DIVERSE SET OF COAL QUALITIES SERVING MULTIPLE GROWTH MARKETS AND GEOGRAPHIES STRONG CUSTOMER RELATIONSHIPS COMBINED 2024 COAL SHIPMENTS BY REGION ~65% of combined 2024 metallurgical and high caloric value thermal coal output exported into: 300+ Mtpa seaborne me
Slide 26: Committed to Innovation and Technology Driving Productivity Gains
CORE IS COMMITTED TO INNOVATION AND TECHNOLOGY DRIVING PRODUCTIVITY GAINS ACROSS ITS ENTIRE OPERATING PORTFOLIO Remote Operation Shield Proximity Variable Frequency Drives Advanced Communications Wi-Fi Connected Equipment Extensive Fiber Optic Networks Strategic Diagnostics Acceptance Testing Motion
Slide 27: Core's Innovations Subsidiary Pursuing New Applications for Coal
CORE’S INNOVATIONS SUBSIDIARY IS PURSUING THE DEVELOPMENT OF NEW APPLICATIONS FOR COAL Goal is to create a new business unit large enough to provide meaningful diversification within 5-10 years Initial focus on gaining a foothold in large, high-growth markets via niches where we bring a clear value
Slide 28: Sustainability
Sustainability
Slide 29: Commitment to Sustainability
COMMITMENT TO SUSTAINABILITY Core strives for excellence in safety and environmental stewardship and is focused on setting the industry standard in these critical areas of performance Two of Core’s flagship operations have secured a Level A verification under the internationally recognized Towards S
Slide 30: Metallurgical and High CV Thermal Coal Essential to a Less Carbon-Intensive Economy
METALLURGICAL AND HIGH CALORIFIC VALUE THERMAL COAL ARE ESSENTIAL TO THE CONSTRUCTION OF A NEW, LESS CARBON-INTENSIVE ECONOMY Core sells an increasing percentage of its high-quality coal products into steel, cement, brick, and other industrial markets essential for infrastructure development and the
Slide 31: Financial Overview
Financial Overview
Slide 32: Global Industry Leader Among Pure Play Coal Producers
GLOBAL INDUSTRY LEADER AMONG PURE PLAY COAL PRODUCERS Source: SEC Filings, FactSet as of 02/28/2025. 1 Adjusted EBITDA is a non-GAAP financial measure. Core 2023-24 Average Adjusted EBITDA figure reflects the combined performance of Arch and CONSOL as standalone entities Peer 1 Peer 2 Peer 3 Peer 4
Slide 33: Strong Financial Profile
STRONG FINANCIAL PROFILE ~$4,597 mm 2024 revenue1 ~$346 mm 2024 FCF generation2 ~$900 mm 2024 Adjusted EBITDA2 ~$1,150 mm 2023 FCF generation2 STRONG BALANCE SHEET $858 mm Total liquidity as of 3/31/25 ~$388 mm Cash and cash equivalents as of 3/31/25 FINANCIAL PROFILE 29 – 31 mm Projected High C.V.
Slide 34: Fortifying the Balance Sheet
FORTIFYING THE BALANCE SHEET Equipment Leases During Q1 2025, Core extended its revolving credit facility, upsizing facility commitments to $600 million, extending the scheduled maturity date, reducing the annual interest rate by 75 basis points, and further enhancing financial flexibility In additi
Slide 35: Positioning Core for Growth and Long-Term Value Creation
POSITIONING CORE FOR GROWTH AND LONG-TERM VALUE CREATION Maintain a premier, world-class portfolio of high-quality, longwall coal mining assets Sustain ample liquidity and a well-fortified balance sheet Execute robust capital return program Build on longstanding position as a leader in sustainabilit
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Slide 37: Management Biographies
Mr. Lang previously held the title of Chief Executive Officer of Arch, serving in such capacity from April 2020 to January 2025 Mr. Lang joined Arch in 1984 and held various leadership roles prior to becoming CEO He is a member of the executive committee of the National Mining Association and a boar
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