Core Natural Resources — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $9.0 million ($0.18 per diluted share) for the quarter ended September 30, 2026.
• Reported adjusted EBITDA of $165.2 million, which included $17.2 million in discretionary employee incentive compensation.
• Total revenues for the quarter were $1.1 billion.
• Generated net cash provided by operating activities of $174.6 million.
• Generated free cash flow of $80.3 million.
• Total liquidity at September 30, 2026, was $1.0 billion, including $443.9 million in cash and cash equivalents and short-term investments.
• Capital expenditures for the quarter were $94.4 million.
• Depreciation, depletion, and amortization for the quarter were $159.3 million.

Guidance and Future Outlook:

• Provided 2026 guidance for total sales volumes of 88.0 to 91.5 million tons.
• 2026 guidance for Metallurgical cash cost of coal sold per ton is $88.00 to $90.00.
• 2026 guidance for High CV Thermal cash cost of coal sold per ton is $40.00 to $41.00.
• 2026 guidance for Powder River Basin cash cost of coal sold per ton is $13.75 to $14.00.
• 2026 guidance for capital expenditures is $325 to $375 million.
• 2026 guidance for depreciation, depletion, and amortization is $600 to $650 million.
• 2026 guidance for cash basis general and administrative costs is $85 to $100 million.
• 2026 guidance for cash tax rate is 0% to 5%.
• Expects to continue reducing share count in Q4 2026 and into 2027.
• Anticipates U.S. thermal coal demand to climb due to reindustrialization, AI-driven data center build-out, and government support for the coal fleet.
• Projects global electricity demand to grow 3.6% in 2026 and 3.8% in 2027.
• Expects seaborne metallurgical markets to remain constructive with elevated Australian Premium Low-Vol pricing supporting U.S. East Coast prices.

Business Segments and Product Lines:

• High Calorific Value (CV) Thermal Segment:
  • Sold 8.2 million tons, a 2% decrease from the previous quarter.
  • Realized coal revenue per ton sold was $56.58, down from $58.11 in Q2 2026 and $59.78 in Q3 2025.
  • Cash cost of coal sold per ton was $41.44, up 7% from Q2 2026 due to geologic variability at the Pennsylvania Mining Complex.
  • Cash margin per ton sold was $15.14.
• Metallurgical Segment:
  • Sold 2.5 million tons total (2.3 million tons of coking coal and 0.2 million tons of thermal byproduct), in line with the previous quarter.
  • Realized coal revenue per ton sold for the segment was $120.18, up 5% from Q2 2026 ($114.13) and up from $101.60 in Q3 2025.
  • Coking coal realized revenue per ton was $124.06.
  • Cash cost of coal sold per ton was $92.92, up 8% from Q2 2026 due to increased contract labor utilization.
  • Cash margin per ton sold was $27.26.
  • Sales volumes were impacted by stormy weather delaying the loading of two high-value vessels.
• Powder River Basin (PRB) Segment:
  • Sold 13.5 million tons, a 32% increase from the previous quarter (10.2 million tons) and up from 13.0 million tons in Q3 2025.
  • Realized coal revenue per ton sold was $14.29, generally in line with Q2 2026 ($14.28) and up from $14.09 in Q3 2025.
  • Cash cost of coal sold per ton was $13.49, a 9% improvement from Q2 2026 ($14.85).
  • Cash margin per ton sold was $0.80, compared to a loss of $0.57 per ton in Q2 2026.
• Sales Commitments:
  • Secured approximately 29.4 million tons of new sales commitments across all segments for future delivery.
  • Committed 2.4 million tons of metallurgical coal for delivery in 2027 to North American customers at an average fixed price higher than the prior year.
  • 2026 committed volumes include 7.6 million tons of priced coking coal at $123.10/ton, 1.7 million tons of unpriced coking coal, 31.3 million tons of priced High CV Thermal at $59.00/ton, and 48.5 million tons of priced PRB at $14.28/ton.

Market and Competitive Landscape:

• Thermal coal market conditions strengthened markedly in Q3, particularly overseas, driven by disruptions in global LNG and refined product markets.
• Rising U.S. thermal coal exports and ongoing U.S. power demand growth are tightening domestic thermal markets.
• Seaborne metallurgical markets strengthened, with High-Vol A coal (FOB U.S. East Coast) trading more than $30 per metric ton higher than at the start of Q3.
• China agreed to import at least 10 million metric tons of coal from U.S. producers in 2027 and 2028, with U.S. metallurgical producers expected to benefit.
• Core is marketing its Leer brand coal as a high value-in-use substitute for Australian premium products.
• Southeast Asian economies are expected to support long-term demand for high-quality coking coals.

Risks and Challenges:

• Normal geologic variability and weather-related shipment delays impacted quarter-over-quarter comparisons.
• Forward-looking statements involve risks including uncertainties regarding rare earth element extraction, CEO transition, and potential future combustion-related activity at the Leer South mine.
• Risks include volatility in coal prices, equipment downtime, labor availability, and transportation costs.
• Regulatory risks include environmental standards, climate change regulations, and export control compliance.
• Potential risks include asset retirement obligations, insurance coverage availability, and ESG-related investment fund exclusions.

Management Commentary and Tone:

• Jimmy Brock, Chairman and CEO, stated the company continues to demonstrate the power of its cash-generative portfolio and strategic engagement in compelling market segments.
• Brock noted that while geologic variability and weather dampened comparisons, the company remains on track for a strong full-year performance.
• Brock highlighted the consistency of free cash flow generation and capital returns for the seventh straight quarter.
• Mitesh Thakkar, President, emphasized a laser focus on world-class productivity, industry-leading cost performance, safety, and compliance.
• Management expressed confidence in capitalizing on tightening global energy markets, infrastructure build-outs, and resurgent U.S. power demand.

Other Key Points:

• Returned $90 million to stockholders in Q3 2026, bringing the total returned over the past seven quarters to $450 million.
• Repurchased 930,611 shares of common stock in Q3 at an average price of $90.96.
• Total share repurchases since the program's launch in February 2025 amount to 5.2 million shares (approximately 9.6% of shares outstanding) for $413.9 million.
• Total capital returned (including dividends) since February 2025 is $449.7 million.
• Share count ended the quarter at 48.9 million, nearly 10% lower than the February 2025 launch level.
• $586.1 million of authorization remains under the existing $1.0 billion share repurchase program.
• The board declared a quarterly dividend of $0.10 per share, payable on December 15, 2026, to stockholders of record on November 30, 2026.
• The company targets returning approximately 75% of free cash flow to stockholders, primarily through share repurchases.
• Core Natural Resources was created in January 2025 via the merger of CONSOL Energy and Arch Resources.