New York City-based Summit Street Capital Management increased its stake in Core Natural Resources (CNR +1.76%) 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 (CNR +1.76%) 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.
