Core Natural Resources (CNR) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $58 million, with adjusted EBITDA of $125 million and free cash flow of $59 million, despite significant export constraints from the Francis Scott Key Bridge collapse and a nearly two-month closure of the Port of Baltimore; 5.8 million tons were sold, including 2.9 million tons into export markets.

• Operations at the CONSOL Marine Terminal resumed in late May, with full restoration by June 10, 2024, and alternative export routes were secured to maintain customer relationships.

• Share buybacks totaled $71 million year-to-date through June 30, 2024, retiring 6.1 million shares since late 2022, representing 18% of the public float.

• Maintained safety excellence with zero recordable incidents at key facilities and a total incident rate well below the national average.

• The company remains focused on cost control, capital returns, and maintaining strong liquidity, with no borrowings outstanding under its credit facilities.

Financial highlights

• Q2 2024 revenue was $501 million, down from $661 million in Q2 2023; net income was $58 million, down from $168 million; adjusted EBITDA was $125 million, down from $276 million year-over-year.

• Free cash flow reached $59 million, up from $41 million in Q1 2024 but down from $181 million in Q2 2023.

• PAMC average cash cost per ton was $39.82, up from $36.33 in Q2 2023; average revenue per ton was $66.83, down from $81.27.

• CONSOL Marine Terminal throughput was 2.3 million tons, with revenue of $12 million and adjusted EBITDA of $5.2 million, down from $23.9 million in Q2 2023.

• Diluted EPS was $1.96, down from $4.94 year-over-year; capital expenditures for Q2 were $55 million.

Outlook and guidance

• Raised the bottom end of average coal revenue per ton sold guidance by $1 to $63.50–$66.50 and increased PAMC sales volume guidance to 24.5–26 million tons for 2024.

• IMC coal sales volume guidance maintained at 700,000–900,000 tons, expecting full ramp-up by year-end.

• Increased CapEx guidance by $10 million to $165–$190 million for 2024.

• PAMC is nearly fully contracted for 2024 and has 14.5 million tons contracted for 2025.

• No further impact is expected from the bridge collapse in future quarters; operations at the Marine Terminal have normalized.