Why a Value Fund Has a $29 Million Bet on Core Natural Resources Stock
Key Points
New York City-based Summit Street Capital Management increased position in Core Natural Resources by 81,170 shares during the third quarter.
The move helped increase the value of the position by about $10.4 million from quarter to quarter.
As of September 30, Summit Street reported holding 342,155 shares of Core Natural Resources worth about $28.6 million.
New York City-based Summit Street Capital Management increased its stake in Core Natural Resources (NYSE:CNR) by 81,170 shares in the third quarter, adding approximately $10.4 million in position value, according to a November 14 SEC filing.
What Happened
Summit Street Capital Management disclosed in a November 14 SEC filing that it bought an additional 81,170 shares of Core Natural Resources (NYSE:CNR) during the third quarter. The position increased in value by $10.4 million from the prior quarter, bringing the fund’s total stake to 342,155 shares valued at $28.6 million as of September 30.
What Else to Know
The CNR buy raised the position to 3.9% of Summit Street’s 13F assets, making it the fund’s fourth-largest holding as of quarter-end.
Top holdings after the filing:
- NYSE: HPQ: $51.2 million (7% of AUM)
- NASDAQ: IDCC: $34.4 million (4.7% of AUM)
- NYSE: DDS: $33.7 million (4.6% of AUM)
- NYSE: CNR: $28.6 million (3.9% of AUM)
- NASDAQ: UTHR: $28.2 million (3.9% of AUM)
As of Tuesday, shares of Core Natural Resources were priced at $82.54, down 29% over the past year and well underperforming the S&P 500, which is up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.7 billion |
| Net Income (TTM) | ($43.4 million) |
| Dividend Yield | 0.5% |
| Price (as of Tuesday) | $82.54 |
Company Snapshot
- Core Natural Resources produces and sells bituminous coal through mining operations in Pennsylvania and West Virginia, with additional export terminal services via the Port of Baltimore.
- The company generates revenue primarily from coal sales to power generators, industrial users, and metallurgical customers, as well as coal export terminal services.
- It serves domestic and international utilities, industrial end-users, and steel producers seeking reliable coal supply and export capabilities.
Core Natural Resources, Inc. is a leading U.S.-based coal producer with vertically integrated mining and export operations. The company leverages its established mining complexes and marine terminal to serve a diverse customer base in the energy and industrial sectors. Its scale, operational history, and export infrastructure position it as a key supplier within the coal industry.
Foolish Take
For long-term investors, Summit Street’s increased exposure to Core Natural Resources comes at a moment when the coal market is diverging sharply across segments — yet CNR continues to show operating resilience that many commodity-linked businesses struggle to achieve. The fund’s decision to scale up the position suggests confidence in CNR’s integrated mining-and-terminal model, its capital return framework, and its ability to manage disruptions like the Leer South idling without eroding cash flow.
CNR’s latest quarter underscored that strength: revenue reached $1 billion, net income was $31.6 million, and adjusted EBITDA totaled $141.2 million, supported by 13 million tons of Powder River Basin shipments and steady realized pricing across thermal and metallurgical coal. Free cash flow came in at $38.9 million, and year-to-date, the company has returned approximately 100% of free cash flow to shareholders through repurchases and dividends. CNR also ended the quarter with $995 million in liquidity, providing meaningful flexibility heading into 2026. All of this to say, it makes sense why a value fund would double down on a stock like CNR.
Glossary
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
13F assets: U.S. equity securities reported by institutional investment managers in quarterly SEC Form 13F filings.
Trailing twelve-month (TTM): The 12-month period ending with the most recent quarterly report.
Dividend yield: Annual dividends per share divided by the current share price, expressed as a percentage.
Holding: The amount of a particular security owned by an investor or fund.
Quarter-over-quarter: A comparison between one fiscal quarter and the previous fiscal quarter.
Net loss: When a company's total expenses exceed its total revenues for a given period.
Vertically integrated: A company that controls multiple stages of its production and distribution processes.
Export terminal: A facility where goods are loaded onto ships for international transport.
Metallurgical customers: Buyers who use coal in steelmaking and other industrial processes.
Bituminous coal: A type of coal with high carbon content, used mainly for electricity generation and steel production.
Reportable U.S. equity assets: U.S. stock holdings that institutional managers must disclose to regulators.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends HP and United Therapeutics. The Motley Fool has a disclosure policy.