New Entity to Become Leading North American Producer and Exporter of Coal

Arch Resources and Consol Energy have announced that their respective stockholders have approved all proposals related to their merger, which will form a new North American natural resource company called Core Natural Resources. This merger, first announced in August 2024, is expected to be completed on 14 January 2025, with the new entity set to begin trading on the New York Stock Exchange (NYSE) on 15 January 2025.

Core Natural Resources, headquartered in Canonsburg, Pennsylvania, is projected to have a market capitalization of approximately $5.2 billion. The combined company will operate 11 mining sites across six states in the U.S. and is positioned to become a prominent producer and exporter of high-quality, low-cost coal. It will offer a diverse portfolio of coal products, including both high-calorific-value thermal coal and metallurgical coal, which will serve both domestic and international markets.

Merger Terms and Post-Merger Structure

The merger is an all-stock transaction, where Arch Resources stockholders will receive 1.326 shares of Consol Energy common stock for each share of Arch Resources. Following the completion of the merger, Arch Resources stockholders will hold approximately 45% of Core Natural Resources, while Consol Energy stockholders will own the remaining 55% on a fully diluted basis.

Core Natural Resources will possess significant assets, including one of North America’s largest and most cost-effective thermal coal mining complexes. The company will also hold interests in approximately 25 million tonnes per annum (tpa) of export coal capacity through two marine export terminals on the U.S. East Coast. Additionally, Core Natural Resources will have strategic connections to export facilities on the West Coast and in the Gulf of Mexico.