Combined company to be called Core Natural Resources (Il Sole 24 Ore Radiocor) - New York, 21 Aug - The US coal producers Arch Resources and Consol Energy said that they have entered into a definitive agreement to combine in an all-stock merger to create Core Natural Resources.

With mining operations and terminal facilities across six states, the combined company will own 11 mines. In addition, it will have access to global markets via ownership interests in two export terminals on the US Eastern seaboard, along with strategic connectivity to ports on the West Coast and Gulf of Mexico, the companies said.

Arch and Consol sold an aggregate of approximately 101 million tons of coal in 2023 to steelmaking, industrial, and power-generation customers. Pro forma, Core Natural Resources would have a market capitalization of approximately 5.2 billion dollars as of August 19 and on a pro forma basis for 2023, revenues were approximately 5.7 billion dollars and adjusted EBITDA about $1.8 billion, excluding expected synergies, they added.

Core Natural Resources would have generated approximately 1.4 billion dollars of free cash flow in 2023, and would have had a net cash position of around 260 million dollars as of June 30, 2024.

Arch shareholders will receive 1.326 shares of Consol common stock for each share owned.

Arch stockholders will own approximately 45% of Core Natural Resources, and Consol stockholders will own approximately 55% on a fully diluted basis.

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(RADIOCOR) 21-08-24 19:23:30 (0498) 5 NNNN