Core Natural Resources, Inc. · NYSE:CNR
Core Natural Resources — CONSOL Energy — Merger or Acquisition (October 2020)
11 slides from Core Natural Resources's merger presentation, Oct 23, 2020
Slide 1: Stronger Together: CONSOL Energy to Acquire Public Units of CONSOL Coal Resources LP
CONSOL ENERGY Stronger Together CONSOL Energy Inc. to Acquire Outstanding Publicly-Owned Units of CONSOL Coal Resources LP October 23, 2020
Slide 2: Disclaimer: Cautionary Statements
Disclaimer Cautionary Statements All statements in this presentation (and oral statements made regarding the subjects of this communication), including those that express a belief, expectation or intention, may be considered forward-looking statements (as defined in Section 21E of the Securities Exc
Slide 3: Simplification Overview
Simplification Overview CEIX to Acquire All of the Publicly Held Outstanding Common Units of CCR (the “Transaction”) ● CCR non-affiliated unitholders to receive 0.73x CEIX shares for each CCR unit – Implies a price of $3.15 per unit from CEIX’s closing price on October 22, 2020 – Implies a transacti
Slide 4: Transaction Delivers Significant Benefits for the Combined Company
Transaction Delivers Significant Benefits for the Combined Company ✔ Streamlines financial reporting and transparency for equity and debt investors ✔ Single public vehicle providing 100% exposure to: – The world-class Pennsylvania Mining Complex (“PAMC”) Simplifies CEIX’s Corporate Structure – C
Slide 5: Immediately Enhancing to CEIX 2021E Organic Free Cash Flow Per Share
Immediately Enhancing to CEIX 2021E Organic Free Cash Flow Per Share 6/30/2020 LTM Bank EBITDA(1) 6/30/2020 LTM Net Leverage Ratio(2) 2021E Organic Free Cash Flow(3) ($ in mm) ($ in mm) 27% $257 Covenant Threshold: ~60% ~$80 3.2x 3.75x $203 2.6x ~$50 Standalone LTM Pro Forma LTM Standalone LTM Pro F
Slide 6: Simplification Furthers Recent Steps to Enhance Financial Flexibility
Simplification Furthers Recent Steps to Enhance Financial Flexibility 1 Ongoing opportunistic debt repurchase program Clear Path to Further Strengthen 2 Amended credit agreement with no near-term debt maturities the Balance Sheet and Create Long 3 Pursuing multiple monetizations of non-core asset
Slide 7: Enhances Measured Approach to Growth
Enhances Measured Approach to Growth • Strategically strengthens our production base, enables diversification, and reduces risk Efficiency Technology Organic Growth M&A Efficiency & Emerging Technologies Organic Growth & Investment Category Continuous & Alternative Uses of M&A Expansion Improvement
Slide 8: Expect Transaction to Close in Q1 2021
Expect Transaction to Close in Q1 2021 Key Milestones Estimated Timing Several steps needed to finalize Transaction Q4 2020 • File S-4 registration statement with SEC • SEC declares S-4 effective • Distribute proxy statement to CEIX shareholders and consent solicitation statement to CCR unitholders;
Slide 9: Appendix
Appendix 9
Slide 10: Simplification Streamlines CONSOL's Corporate Structure
Simplification Streamlines CONSOL’s Corporate Structure Status Quo Pro Forma Transaction 0.7300 CEIX shares for each CCR unit Legacy CEIX Legacy CEIX Public CCR CEIX shares Shareholders Unitholders 100% ownership 59.7% LP CCR GP interest CCR units 1.7% GP interest CEIX 38.6% LP Public CCR Common 100
Slide 11: CEIX Bank EBITDA and Net Leverage Ratio Reconciliation
CEIX Bank EBITDA and Net Leverage Ratio Reconciliation Standalone Pro Forma LTM 6/30/2020 LTM 6/30/2020 Net Income $5,837 $5,837 Plus: Interest Expense, net $62,215 $62,215 Income Taxes 1,422 1,422 EBIT $69,474 $69,474 Plus: Depreciation, Depletion and Amortization $211,320 $211,320 EBITDA $280,794