November 6, 2025 - Core Natural Resources, Inc. (NYSE: CNR) has reported net income of $31.6 million, or $0.61 per diluted share, in the third quarter of 2025. Additionally, Core reported adjusted EBITDA¹ of $141.2 million in the quarter, which included Leer South fire extinguishment and idle mine cash costs of $18.4 million and an initial recovery of insurance proceeds related to the Leer South combustion event of $19.4 million. Third quarter revenues totaled $1,002.5 million. 

"During Q3, the Core team executed effectively and continued to generate substantial amounts of free cash flow while completing the transition to a more advantageous reserve area at West Elk," said Jimmy Brock, Core's chairman and chief executive officer. "In addition, Core significantly expanded its committed sales position – at prices expected to deliver advantageous margins – in both the high calorific value thermal and Powder River Basin segments. While the government shutdown has delayed the planned restart of the Leer South longwall, the operating team is prepared to mobilize as soon as Mine Safety and Health Administration (MSHA) personnel are available."

"In short, we believe the stage is set for Core to begin to deliver on its full potential as we approach 2026," Brock said. "Looking ahead, we are sharply focused on achieving operational excellence across our entire mining portfolio while executing in tight alignment with our core values – safety and compliance, continuous improvement, and financial performance."

Operational and Marketing Update

During the third quarter of 2025, Core's high calorific value thermal coal segment achieved realized coal revenue per ton sold¹ of $59.78, which was modestly lower than in Q2 due principally to customer mix. The segment had cash cost of coal sold per ton¹ of $40.53, reflecting higher cash costs at West Elk during the transition to the B-Seam. Looking ahead, Core is anticipating a marked step-up in performance at West Elk due to the B-Seam's greater thickness and higher coal quality, which should drive relative improvements in realizations and cash costs for the segment as a whole.

In Core's metallurgical segment during Q3, coal sales totaled 1.9 million tons and thermal byproduct sales totaled 0.4 million tons. The segment achieved realized coal revenue per ton sold¹ for coking coal of $112.94 and realized coal revenue per ton sold¹ for the metallurgical segment as a whole – inclusive of thermal byproduct sales – of $101.60. The metallurgical segment reported a cash cost of coal sold per ton¹ of $94.18 and incurred $18.4 million in costs associated with the extinguishment of combustion-related activity and idle mine costs at Leer South.

In the Powder River Basin ("PRB") segment, sales volumes totaled 13.0 million tons as coal-based power plants continued to operate at elevated levels in the face of increased U.S. power demand. Realized coal revenue per ton sold¹ was $14.09 and cash cost of coal sold per ton¹ was $13.04. Both revenues and costs were lower on a quarter-over-quarter basis due in large part to the recently enacted reduction in the royalty rate for federal coal coupled with provisions in many of Core's existing contracts requiring that cost savings associated with certain policy-related changes be passed along to the customer.

During the quarter, the marketing team entered into commitments across all segments and all periods totaling nearly 26 million tons, at prices projected to provide attractive margins and healthy free cash flow¹. Core has now locked in a committed book of 2026 business totaling approximately 17 million tons in the high calorific value thermal segment and approximately 40 million tons in the Powder River Basin segment. To date, Core has entered into commitments for approximately 500,000 tons of coking coal for delivery to North American customers and remains in active negotiations with other potential North American buyers.

Financial, Liquidity, and Capital Return Update

In February, Core announced a new capital return framework targeting the return to stockholders of around 75 percent of free cash flow¹, with the significant majority of that return directed to share repurchases complemented by a sustaining quarterly dividend of $0.10 per share.

During Q3 2025, Core generated net cash provided by operating activities of $87.9 million and free cash flow¹ of $38.9 million. The company invested $19.4 million to repurchase approximately 271,000 shares at an average share price of $71.77. Year-to-date, Core has now invested a total of $202.6 million to repurchase 2.8 million shares, or roughly 5 percent of total shares outstanding as of the program's launch, and a total of $218.3 million, inclusive of dividend payments, in Core's capital return program overall. Year-to-date, Core has returned approximately 100 percent of its free cash flow¹ to stockholders via its capital return program. As of September 30, 2025, Core had $797.4 million of remaining authorization under its existing $1.0 billion share repurchase program.

In addition, and in keeping with the tenets of its capital return program, the board declared a $0.10 per share quarterly dividend payable on December 15, 2025, to stockholders of record on November 28, 2025.

"Looking ahead, we expect continued robust free cash flow generation underpinned by rigorous cost control efforts across the entire operating platform, ongoing synergy capture, the anticipated restart of the Leer South longwall, and strong contracted sales positions at our high calorific value thermal and Powder River Basin segments," said Mitesh Thakkar, Core's president and chief financial officer.

At September 30, 2025, Core had total liquidity of $995.4 million, including $444.7 million in cash and cash equivalents.

Leer South Update

As previously discussed, the Core team is prepared to reenter the Leer South mine to recover, reposition, and restart the longwall system as soon as the necessary governmental personnel are made available. The Leer South longwall has been idled since January 13, 2025, in the wake of a combustion-related event in a mined-out area of the operation. The operating team is confident that the longwall was largely unaffected by the combustion event.

The Core team appreciates the strong support from federal and state regulatory officials throughout this process. Leer South is a key asset in Core's operating portfolio and the company expects the restart of the longwall to drive substantially improved contributions from its metallurgical segment in future periods.

Core expects to incur fire extinguishment and idle costs of $15 million to $25 million at Leer South in the fourth quarter of 2025.

Potential Future Opportunity in the Rare Earth Elements and Critical Minerals Arena

Core recently completed a sampling and analysis program at its Black Thunder and Coal Creek mines in collaboration with the University of Wyoming School of Energy Resources. The results demonstrated elevated ash-basis concentrations of certain rare earth elements ("REEs") and critical minerals ("CMs"), particularly at the top and bottom of the coal seam. The drill core and grab samples from coal seam margins at the Black Thunder mine contained average dry ash-basis concentrations in excess of 1,000 parts per million for total REEs plus scandium, gallium, and germanium. This enrichment at the coal seam margins is consistent with what was observed during the U.S. Department of Energy-sponsored CORE-CM Project and reported by other operators in the Powder River Basin.

While testing at Core's large-scale eastern operations showed measured ash-basis concentrations somewhat less elevated than at its PRB operations, the large flow rates and readily accessible nature of byproduct streams at Core's Pennsylvania Mining Complex ("PAMC"), Leer and Leer South operations could offer unique opportunities for further upgrading.

Core is now commencing the next phase of its REE and CM evaluation, which will include an expanded drilling program intended to facilitate additional characterization of the potential resources across the platform. In addition, Core is currently engaging with technology and engineering providers in advance of a potential RFP process in coming months.

Outlook

"With the integration process now nearly complete and the operating portfolio on the cusp of returning to full strength, Core is gearing up for a significant step-change in performance in 2026," Brock said. "We believe Core's world-class, low-cost, diverse asset base is unmatched on the global stage, and we fully intend to capitalize on a greatly improved macro and policy environment for coal. We believe Core is uniquely equipped to generate stockholder value in a wide range of market environments and are confident that we are positioned for tremendous growth and success in the years ahead."

1 - Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures and Realized Coal Revenue per Ton Sold and Cash Cost of Coal Sold per Ton are operating ratios derived from non-GAAP financial measures, each of which is reconciled to the most directly comparable GAAP financial measures below, under the caption "Reconciliation of Non-GAAP Financial Measures."

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