Accounts Receivable Securitization

6 Months Ended

Jun. 30, 2025

Receivables [Abstract]

Accounts Receivable Securitization

ACCOUNTS RECEIVABLE SECURITIZATION:

At June 30, 2025, certain U.S. subsidiaries of Core Natural Resources, Inc. were parties to two trade accounts receivable securitization facilities with financial institutions for the sale on a continuous basis of eligible trade accounts receivable.

Pursuant to the securitization facility of the Company that was in place prior to the Merger (the “Legacy CONSOL Securitization Facility”), CONSOL Thermal Holdings LLC, an indirect, wholly-owned subsidiary of the Company, sells trade receivables to CONSOL Pennsylvania Coal Company LLC, a wholly-owned subsidiary of the Company. CONSOL Marine Terminals LLC, a wholly-owned subsidiary of the Company, and CONSOL Pennsylvania Coal Company LLC sell and/or contribute trade receivables (including receivables sold to CONSOL Pennsylvania Coal Company LLC by CONSOL Thermal Holdings LLC) to CONSOL Funding LLC, a special purpose vehicle and wholly-owned subsidiary of the Company (“CONSOL Funding”). CONSOL Funding, in turn, pledges its interests in the receivables to PNC Bank, N.A. (“PNC”), which either makes loans or issues letters of credit on behalf of CONSOL Funding. The maximum amount of advances and letters of credit outstanding under the Legacy CONSOL Securitization Facility may not exceed $100,000. In July 2022, the Legacy CONSOL Securitization Facility was amended to, among other things, extend the maturity date to July 29, 2025.

Loans under the Legacy CONSOL Securitization Facility accrue interest at a reserve-adjusted market index rate equal to the applicable term Secured Overnight Financing Rate (“SOFR”). Loans and letters of credit under the Legacy CONSOL Securitization Facility also accrue a program fee and a letter of credit participation fee, respectively, ranging from 2.00% to 2.50% per annum depending on the total net leverage ratio of the Company. In addition, CONSOL Funding paid certain structuring fees to PNC Capital Markets LLC (“PNC CM”) and pays other customary fees to the lenders, including a fee on unused commitments equal to 0.60% per annum.

At June 30, 2025, the Company's eligible accounts receivable yielded $48,639 of borrowing capacity. At June 30, 2025, the Legacy CONSOL Securitization Facility had no outstanding borrowings and $48,437 of letters of credit outstanding, leaving available borrowing capacity of $202. At December 31, 2024, the Company's eligible accounts receivable yielded $71,964 of borrowing capacity. At December 31, 2024, the Legacy CONSOL Securitization Facility had no outstanding borrowings and $71,922 of letters of credit outstanding, leaving available borrowing capacity of $42. The Company has not derecognized any receivables due to its continued involvement in the collections efforts.

On January 14, 2025 and in connection with the Merger, the securitization facility of Arch that was in place prior to the Merger (the “Legacy Arch Securitization Facility”) was amended to permit the Legacy Arch Securitization Facility to remain outstanding following consummation of the Merger, including by amending the change of control provisions thereunder. Pursuant to the Legacy Arch Securitization Facility, Arch Receivable Company, LLC, a special purpose vehicle and wholly-owned subsidiary of the Company (“Arch Receivable” and, together with CONSOL Funding, the “SPVs”), supports the issuance of letters of credit and requests for cash advances. The Legacy Arch Securitization Facility has a maximum borrowing capacity of $150,000. In August 2022, the Legacy Arch Securitization Facility was amended to, among other things, extend the maturity date to August 1, 2025.

Under the Legacy Arch Securitization Facility, Arch Receivable and certain of Arch’s subsidiaries party to the Legacy Arch Securitization Facility have granted to the administrator of the Legacy Arch Securitization Facility a first priority security interest in eligible trade accounts receivable generated by such parties from the sale of coal and all proceeds thereof. At June 30, 2025, legacy Arch's eligible accounts receivable yielded $139,700 of borrowing capacity. At June 30, 2025, the Legacy Arch Securitization Facility had no outstanding borrowings and $51,919 of letters of credit outstanding, leaving available borrowing capacity of $87,781.

See Note 18 - Subsequent Events in the Notes to the Consolidated Financial Statements in Item 1 of this Quarterly Report on Form 10-Q for additional information.