Core Natural Resources : Q1 2026 ER Slide Deck

Published: 2026-05-07 07:13:11 ET CNR

Published on 05/07/2026 at 07:13 am EDT

First Quarter 2026 Earnings Supplement

May 7, 2026

FIRST QUARTER 2026 HIGHLIGHTS

Operations execute at a high level, led by strong performances at Leer South and West Elk

Metallurgical segment achieves a significant, quarter-over-quarter increase in sales margins, underpinned by a

significant step-down in its cash cost

High calorific value thermal segment delivers solid sales margins even as it navigates elevated electricity costs at the Pennsylvania Mining Complex as well as several weeks of challenging geology at the PAMC

Reports Q1 2026 net income of $21.0 million and Adjusted EBITDA1 of $179.9 million

Generates net cash provided by operating activities of $119.4 million and free cash flow1 of $55.5 million

Returns $47.0 million to stockholders via share repurchases and dividend payments, bringing the total returned to

stockholders since the capital return program's inception in February 2025 to $292.1 million

THE PREMIER PURE-PLAY GLOBAL COAL PRODUCER, STRATEGICALLY POSITIONED TO SUPPLY THE WORLD'S GROWING STEEL, INDUSTRIAL, AND ENERGY NEEDS WHILE MANAGING BY OUR CORE VALUES OF SAFETY AND COMPLIANCE, CONTINUOUS IMPROVEMENT, AND FINANCIAL PERFORMANCE

Safety-Based Culture

Highly skilled workforce with a deeply ingrained, safety-based culture and a goal of zero life-altering accidents, complemented by a deep commitment to environmental stewardship

Unmatched Scale

2025 sales volume of 89 million tons and 2025 revenue of $4.2 billion

Longwall Powerhouse

~90% of projected seaborne export volumes from world-class longwall mines

Innovation Leader

in its core business and via its Innovations business unit, which is advancing new, coal-based applications in areas such as aerospace and defense

Global Reach

Supplies customers in ~25 countries located on five continents with

one of the industry's broadest arrays of coal products

Low-Cost Advantage

First quartile on cost curve among U.S. metallurgical and seaborne thermal coal suppliers

Logistical Excellence

Industry-leading logistical network anchored by ownership positions in two large-scale East Coast marine export terminals

Strategic Diversification

across multiple, high-potential market segments, with strong penetration in fast-growing seaborne markets as well as newly resurgent, AI-driven domestic power markets

Long-Lived Reserves

Decades of high-quality reserves that will support low-cost mining at flagship longwall operations through 2050

Leading Supplier

Among largest global suppliers of premium, High-Vol A coking coal

Unrivaled Quality

Highest calorific value thermal coal supplied to the seaborne marketplace

Infrastructure Focus

75% of exports directed to steelmakers, cement manufacturers, and infrastructure providers, as well as other industrial users

Compelling Cash Generation

Highly cash-generative assets across a wide range of market environments, with a strategic mix of contracted and market-exposed volumes

Financial Strength

One of the industry's strongest balance sheets and liquidity positions,

targeting an approximately net debt neutral cash profile

Leading Capital Return Program

Industry-leading capital return program weighted towards share repurchases and capable of delivering robust returns across a wide range of market environments

LEADING METALLURGICAL AND HIGH C.V. THERMAL PORTFOLIOS SUPPORTED BY STRATEGIC LOGISTICAL NETWORK

KEY STATISTICS

11

mines anchored by eight longwalls

89 mm

2025 total tons sold

27 Mtpa

export capacity via ownership interests in CMT and DTA

Black Thunder Coal Creek

West Elk

CMT

(100% owned)

DTA

(35% owned)

Bailey Enlow Fork Harvey

Core Marine Terminal ("CMT")

Dominion Terminal Associates ("DTA") (35% interest)

Core Natural Resources headquarters Accessible terminal capacity

Leer

Leer South Beckley Mountain Laurel Itmann

FINANCIAL RESULTS

CORE'S STRONGER OPERATIONAL EXECUTION DRIVES A SIGNIFICANT

STEP-UP IN FINANCIAL PERFORMANCE AND CASH GENERATION IN Q1

Adjusted EBITDA1

(in millions of $US)

Free Cash Flow1

(in millions of $US)

$179.9

$103.1

$55.5

$27.0

Q4 2025 Q1 2026 Q4 2025 Q1 2026

Core delivered a significant step-up in Adjusted EBITDA1 in Q1 as the entire mining portfolio - led by Leer South and West Elk - executed at a substantially improved level

Free cash flow1 more than doubled on a quarter-over-quarter basis

CAPITAL RETURN PROGRAM

DURING Q1, CORE RETURNED $47.0 MILLION TO STOCKHOLDERS,

BRINGING TOTAL TO $292.1 MILLION SINCE PROGRAM'S LAUNCH

Reduction In Shares Outstanding Since February 20, 2025

(in millions of shares outstanding)

Capital Returned Since February 20, 2025, By Method

(share repurchases versus dividend payments, in millions of $US)

54.0

52.6

51.5

51.2

51.0

50.6

(6.6)%

$25.9

(Dividends)

$266.2

(Repurchases)

2/20/2025 3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026

During Q1 2026, Core invested $41.9 million to repurchase 464,600 shares of its common stock at an average share price of $90.23

Core has invested $266.2 million to repurchase ~3.6 million shares of its common stock, or ~7 percent of shares outstanding as of the program's

launch on 2/20/25, at an average share price of $74.92

Core has now returned a total of $292.1 million to stockholders - in the form of repurchases and dividends - since the capital return program's launch

7 • As of March 31, 2026, Core had $733.8 million of remaining authorization under its existing $1.0 billion share repurchase program

COMMITTED VOLUMES

2026 CONTRACTED POSITION FOR CORE'S THREE MINING SEGMENTS

High Calorific Value Thermal Segment

(projected volumes and committed and priced position, in short tons, and realized coal revenue per ton sold1)

Metallurgical Segment

(projected coking coal volumes and committed and priced position, in short tons, and realized coal revenue per ton sold1)

Powder River Basin Segment

(projected volumes and committed and priced position, in short tons, and realized coal revenue per ton sold1)

28.5

(at $57.85)

0.6

1.9

4.5

0.7

3.8

(at $122.40)

47.8

(at $14.20)

0.7

3/31/26

3/31/26

3/31/26

The high calorific value thermal segment has a committed and priced book of business of 28.5 million tons and the PRB segment has a committed and priced book of business of 47.8 million tons for delivery in 2026, at prices projected to provide attractive margins

In the metallurgical segment, Core has committed 3.8 million tons of coking coal for delivery in 2026, including 2.0 million tons committed to

North American customers at an average realized coal revenue per ton sold1 of around $125

COST GUIDANCE

2026 CASH COST GUIDANCE, BY OPERATING SEGMENT

Segment

Cash Cost1

High Calorific Value Thermal

$38.00 - $39.50

Metallurgical

$88.00 - $94.00

Powder River Basin

$13.00 - $13.50

The cost performance of the high calorific value thermal segment is expected to benefit from increased volumes and lower costs at the West Elk mine in 2026

The cost performance of the metallurgical segment is expected to benefit from a full year of longwall production at Leer South in 2026

The cost performance of the Powder River Basin segment is expected to benefit from another year of strong production levels as well as a full year of lower royalty rates on its federally leased coal in 2026

RECENT POLICY DEVELOPMENTS THAT SHOULD ENHANCE COAL'S

COMPETITIVENESS AND OUTLOOK IN BOTH THE U.S. AND OVERSEAS

During the first year of his current term, President Trump issued a series of executive orders intended to reduce the regulatory

burden on America's coal-based power plants and to ensure the long-term preservation of the U.S. coal fleet

On July 4th, the President signed into law the "One Big Beautiful Bill Act," which included provisions that stand to benefit Core

Designation of metallurgical coal as a "critical material" under the Advanced Manufacturing Tax Credit (45X)

Reduction in the royalty rate for federal coal leases

Significant cuts to federal subsidies for intermittent, renewable energy

The Trump Administration has expressed an overarching objective to ensure that America's coal-based power generation fleet -

which the Administration views as critical to a reliable, resilient and secure power grid - is preserved and maintained

The Administration has employed Section 202(c) of the Federal Power Act to delay - perhaps indefinitely - the planned retirements of coal-fired generating units in a growing number of states

The U.S. Department of Energy is making funding available to facilitate the modernization of the U.S. coal fleet

The Trump Administration continues to support the development of a domestic rare earth elements industry, steering some funds

directly towards the coalfields, where Core continues to evaluate interesting opportunities in both the East and West

The Administration recently reinstated the National Coal Council, which provides another channel for ongoing, in-depth dialogue between coal producers, including Core, and policymakers

Core applauds the President and his Administration for taking these historic steps to help ensure that coal remains a key element

of America's future energy supply as well as a stabilizing force in both domestic and international markets

U.S. POWER DEMAND IS PROJECTED TO GROW DRAMATICALLY,

SPURRED BY THE AI-DRIVEN DATA CENTER BUILDOUT

Demand growth forecasts have increased more than four-fold since 2022, according to Grid Strategies, driven principally by the projected data center build-out

Grid Strategies projects that overall U.S. power generation will grow by 3.7 percent per year over the next five years - a dramatic increase versus the 20-year trend

Those regions with significant coal-based power generation - including the largest interconnect, PJM - are projected to grow at a very robust rate

Even those regions projected to experience slower-than-average demand growth - such as MISO and the Southeast - are expected to increase output substantially in coming years

Five-Year Growth Forecast

(CAGR)

10.1%

7.2%

3.6%

2.8%

2.5%

2.3% 2.3%

2.1%

0.9% 0.6%

10%

8%

6%

4%

2%

ERCOT

SPP

PJM

CAISO

Northwest

Southwest

MISO

Southeast

NYISO

ISO-NE

0%

U.S. POWER DEMAND IS CLIMBING AFTER YEARS OF STAGNATION

U.S. Power Demand

(five-year averages in TWH)

U.S. power demand increased only modestly during

the period from 2004 through 2023

U.S. power demand increased 2.6% in 2024 and was up an additional 2.4% in 2025

The AI-driven data center build-out is still in its early stages, which could mean much more such growth to come

Such growth could translate into a profound change

in U.S. thermal coal markets

4,700?

Assuming 3% annual average growth

3,827

3,774

3,675

3,704

2004-2008 2009-2013 2014-2018 2019-2023 2030

THE AVERAGE CAPACITY FACTOR OF THE U.S. COAL FLEET IS STARTING TO REBOUND - AND HAS SUBSTANTIAL ROOM FOR GROWTH

U.S. Coal Fleet Average Capacity Factor

(% capacity factor)

73%

49%

41%

43%

80%

75%

70%

65%

60%

55%

50%

45%

40%

35%

30%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

GLOBAL CEMENT PRODUCTION IN THE WORLD EXCLUDING CHINA IS PROJECTED TO CLIMB MARKEDLY THROUGH 2050

The vast majority of the world's cement production relies on coal as a feedstock - with each ton of cement requiring 0.1 to 0.2 tons of coal on average

Global Cement Production

(in millions of metric tons)

3,250

3,000

2,750

2,500

2,250

2,000

1,750

1,500

1,250

1,000

750

500

250

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

0

GLOBAL SEABORNE DEMAND FOR METALLURGICAL COAL IS EXPECTED TO GROW STEADILY THROUGH MID-CENTURY

Projected Global Seaborne Metallurgical Coal Imports

(in millions of metric tons)

400

300

200

100

Global seaborne metallurgical coal demand is expected to climb through 2050, buoyed by continued economic development and urbanization in India and the rest of Southeast Asia

Based on the consensus estimate, demand - in aggregate - is expected to total around 9 billion tons between 2026 and 2050, which could significantly strain supply availability

Core believes that global underinvestment in coking coal supply -coupled with degradation and depletion of the resource base - will constrain supply growth and push coking coal prices higher over time

STEEL PRODUCTION CAPACITY GROWTH IN INDIA AND THE REST OF SOUTHEAST ASIA IS PROJECTED TO EXCEED 160 MILLION TONS BY ~2030

Planned additions total ~94 million tons versus 2024

baseline, with ~90% utilizing blast furnace technology

2030

2024

8

8

RINL

9

40

AM/NS

9

16

JSPL

21

40

TATA

20

35

SAIL

28

50

JSW

Planned Steel Capacity Additions In India

(in millions of metric tons)

Planned Steel Capacity Additions In Southeast Asia

(in millions of metric tons)

CAPACITY

BLAST FURNACE

ADDITIONS IN MT SHARE OF NEW

Southeast Asia

70

75%

Myanmar

8

100%

Thailand

5

0%

Vietnam

20

43%

Cambodia

4

100%

Philippines

3

100%

Malaysia

Indonesia

14

17

96%

93%

Planned additions total ~70 million tons versus 2024 baseline, with ~75% utilizing blast furnace technology

GLOBAL COKING COAL PRODUCTION IN THE PRIMARY, HIGH-QUALITY SUPPLY REGIONS REMAINS WELL BELOW PEAK LEVELS

Producer

Peak Year

Peak Exports

(mt)

2024 Exports

(mt)

2025 Exports

(mt)

2025 Change

from Peak (mt)

2025 Change

from Peak (%)

Australia

2016

189.2

153.0

146.9

(42.3)

(22.4%)

United States

2012

63.3

51.5

45.1

(18.2)

(28.8%)

Canada

2013

35.0

28.9

30.7

(4.3)

(12.3%)

Cumulative

2014

273.3

233.4

222.7

(50.6)

(18.5%)

POTENTIAL FUTURE OPTIONALITY IN RARE EARTH ELEMENTS AND CRITICAL MINERALS ARENA

REE and CM Opportunities at Core's Large-Scale Western Operations

Core recently completed a sampling and analysis program at its Powder River Basin mines in collaboration with the University of Wyoming that demonstrated elevated ash-basis concentrations of certain rare earth elements (REEs) and critical minerals (CMs), particularly at the coal seam's top and bottom

Among drill core and grab samples from coal seam margins at Black Thunder, dry ash-basis concentrations averaged in excess of 1,000 parts per million (ppm) for total REEs plus scandium, gallium, and germanium

When converted to a critical mineral oxide (CMO) reporting basis (which includes the 16 REEs plus scandium, gallium, and germanium, with the mass of each element

converted to its oxide form), ash-basis concentrations at Black Thunder and Coal Creek varied between 284 and 3,047 ppm

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

Primary magnetic rare earth element oxides (i.e., oxides of neodymium, praseodymium, dysprosium, and terbium) accounted for 20% of the total CMOs, and oxides of scandium, gallium, and germanium accounted for 17% of the total CMOs

Core is exploring a strategy to leverage the great scale of its PRB operations - which produced approximately 51 million tons of coal in 2025 - in the areas of selective

mining, upgrading, and extraction of REEs and CMs

REE and CM Opportunities at Core's Large-Scale Eastern Operations

While concentrations at Core's eastern operations were somewhat less elevated, the large flow rates and readily accessible nature of byproduct streams at the PAMC, Leer and Leer South operations could offer unique opportunities for further upgrading

Geochemical analysis of samples collected from the fine coal refuse streams at the PAMC and Leer operations showed an average dry ash-basis CMO concentration of 444 ppm, with a range of 344 to 568 ppm

Primary magnetic REE oxides accounted for 16% of total CMOs, and oxides of scandium, gallium, and germanium accounted for 29%

The scale of the PAMC's preparation plant is unparalleled among U.S. coal mines and yields ~3 million tons per year of fine coal waste that is already very fine and can be readily diverted for further processing, and Leer and Leer South are proximal and could add to this economy of scale

POTENTIAL FUTURE OPTIONALITY IN RARE EARTH ELEMENTS AND CRITICAL MINERALS ARENA - NEXT STEPS

The U.S. Department of Energy announced in August that it intends to issue nearly $1 billion of funding focused on securing the American critical

minerals and materials supply chain, with some of this funding directed specifically toward critical minerals recovery from coal industry-based feedstocks

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 resource

Core is also engaging with technology and engineering providers and expects to launch an RFP process in coming months

The Core Innovations team also continues to advance its substantial raft of next generation coal applications and products in areas of strategic national

interest, including aerospace, defense, and battery technology

MAINTAINING A STRONG BALANCE SHEET THAT SUPPORTS

SUBSTANTIAL FINANCIAL FLEXIBILITY

Core Has a Strong Balance Sheet and Targets a Roughly Net Debt1 Neutral Cash Position

(in millions of $US)

At 3/31/26, Core had $935.4 million of total liquidity, including $412.7 million in cash and cash equivalents

$33

$489

Total Liquidity =

$935 Million

$143

Net Debt1 =

$307

Tax Exempt Bonds

Equipment Leases and Other Debt

$37 Million

The significant majority of Core's debt consists of unsecured, tax-exempt bonds with an initial 10-year term (maturing in Q1 2035) and a weighted-average interest rate of 5.3 percent

Adding to its financial flexibility, Core has a $600 million revolving credit facility and a $250 million securitization facility

$413

Cash and Cash Equivalents

Liquidity Sources at 3/31/26 Total Debt at 3/31/26

Disclaimer

Core Natural Resources, Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:12 UTC.