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Alpha Announces Financial Results for Fourth Quarter and Full Year 2023

  • Posts fourth quarter net income of $176.0 million, or $12.88 per diluted share

  • Announces Adjusted EBITDA of $266.3 million for the quarter

  • Continues progress on buyback program, with approximately $1.1 billion returned to shareholders since program inception

  • Announces changes to company's board of directors

BRISTOL, Tenn., Feb. 26, 2024 /PRNewswire/ -- Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported financial results for the fourth quarter and full year ending December 31, 2023.

(PRNewsfoto/Alpha Metallurgical Resources, Inc.)
(PRNewsfoto/Alpha Metallurgical Resources, Inc.)


(millions, except per share)


Three months ended


Dec. 31, 2023

Sept. 30, 2023

Dec. 31, 2022

Net income

$176.0

$93.8

$220.7

Net income per diluted share

$12.88

$6.65

$13.37

Adjusted EBITDA(1)

$266.3

$153.9

$247.9

Operating cash flow

$199.4

$157.2

$185.0

Capital expenditures

($61.5)

($54.7)

($61.0)

Tons of coal sold

4.6

4.2

3.9








1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules.

"Our fourth quarter results reflect a team effort to finish the year strong, and I'm pleased to report we were successful in that endeavor," said Andy Eidson, Alpha's chief executive officer. "Building on this positive momentum, Alpha completed the year having generated over a billion dollars in 2023 Adjusted EBITDA and having invested more than a billion dollars into our share repurchase program since its inception. We did all of this while maintaining better-than-national-average safety and environmental compliance performance and continuing to provide first class service to our customers."

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Financial Performance

Alpha reported net income of $176.0 million, or $12.88 per diluted share, for the fourth quarter 2023, as compared to net income of $93.8 million, or $6.65 per diluted share, in the third quarter.

For the fourth quarter, total Adjusted EBITDA was $266.3 million, compared to $153.9 million in the third quarter.

Coal Revenues


(millions)


Three months ended


Dec. 31, 2023

Sept. 30, 2023

Met Segment

$954.2

$731.5

All Other

$2.9

$7.5

Met Segment (excl. freight & handling)(1)

$834.6

$636.7

All Other (excl. freight & handling)(1)

$2.9

$7.5



Tons Sold

(millions)


Three months ended


Dec. 31, 2023

Sept. 30, 2023

Met Segment

4.5

4.1

All Other

0.1

0.1








1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

Coal Sales Realization(1)


(per ton)


Three months ended


Dec. 31, 2023

Sept. 30, 2023

Met Segment

$183.76

$154.73

All Other

$70.14

$68.32








1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

Fourth quarter net realized pricing for the Met segment was $183.76 per ton and net realization in the All Other category was $70.14 per ton.

The table below provides a breakdown of our Met segment coal sold in the fourth quarter by pricing mechanism.


(in millions, except per ton data)

Met Segment Sales

Three months ended Dec. 31, 2023


Tons Sold

Coal Revenues

Realization/ton(1)

% of Met Tons Sold

Export - Other Pricing Mechanisms

1.5

$264.4

$175.32

37 %

Domestic

1.1

$212.8

$191.54

27 %

Export - Australian Indexed

1.5

$319.0

$213.41

36 %

Total Met Coal Revenues

4.1

$796.2

$193.54

100 %

Thermal Coal Revenues

0.4

$38.4

$89.76


Total Met Segment Coal Revenues (excl. freight & handling)(1)

4.5

$834.6

$183.76









1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

Cost of Coal Sales


(in millions, except per ton data)


Three months ended


Dec. 31, 2023

Sept. 30, 2023

Cost of Coal Sales

$668.9

$564.6

Cost of Coal Sales (excl. freight & handling/idle)(1)

$543.0

$461.8


(per ton)

Met Segment(1)

$119.00

$109.95

All Other(1)

$60.07

$84.73








1. Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

Alpha's Met segment cost of coal sales increased to an average of $119.00 per ton in the fourth quarter, compared to $109.95 per ton in the third quarter of 2023. The increase was primarily driven by higher sales-related costs and purchased coal costs, both of which were impacted by higher coal indices during the quarter, as well as higher labor costs. Cost of coal sales for the All Other category improved to $60.07 per ton in the fourth quarter, compared to $84.73 per ton in the third quarter.

Liquidity and Capital Resources

Cash provided by operating activities in the fourth quarter increased to $199.4 million as compared to $157.2 million in the third quarter 2023. Capital expenditures for the fourth quarter were $61.5 million compared to $54.7 million for the third quarter.

As of December 31, 2023, the company had total liquidity of $287.3 million, including cash and cash equivalents of $268.2 million and $94.1 million of unused availability under the ABL, partially offset by a minimum required liquidity of $75.0 million as required by the ABL. As of December 31, 2023, the company had no borrowings and $60.9 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of December 31, 2023, was $10.4 million and consisted primarily of equipment financing obligations.

Share Repurchase Program

As previously announced, Alpha's board of directors authorized a share repurchase program allowing for the expenditure of up to $1.5 billion for the repurchase of the company's common stock. As of February 19, 2024, the company has acquired approximately 6.6 million shares of common stock at a cost of approximately $1.1 billion, or approximately $164.87 per share. The number of common stock shares outstanding as of February 19, 2024 was 12,994,558, which includes the impact of 220,067 net shares issued in December 2023 and January 2024. The shares issued in these periods resulted from vestings of previously granted equity awards under the company's incentive plans. The outstanding share count does not include the potentially dilutive effect of unvested equity awards.

The timing and amount of share repurchases will continue to be determined by the company's management based on its evaluation of market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company's debt agreements, and other factors.

Composition of Alpha's Board of Directors & 2024 Annual Meeting

Per the company's corporate governance guidelines, director candidates may not stand for election beyond the age of 75 years. Having reached this age limit, Michael J. Quillen and Albert E. Ferrara, Jr. will not stand for election at the 2024 annual meeting of stockholders and will leave the board, effective before market open on Monday, February 26, 2024, after significant tenures. Mr. Ferrara, the company's longest-serving director, has served on the board since the company's formation in July 2016, while Mr. Quillen, who founded predecessor company Alpha Natural Resources in 2002, has served since November 2020. In addition, Elizabeth A. Fessenden, a director since February 2021, has elected to step down from the board, effective before market open on February 26, 2024. None of these departures is a result of disagreements with the company. In connection with these departures, the board has determined to reduce its size from nine directors to seven, effective February 26, 2024.

Additionally, a new director, Shelly Lombard, has been appointed to join the board, effective at market close on February 26, 2024. Ms. Lombard is a financial expert bringing over 35 years of experience in finance on Wall Street and analyzing investments. She has served on a number of publicly traded company boards, including as chair of several audit committees.

"We cannot thank Mike, Al and Liz enough for their service to Alpha and the wisdom they've brought to our boardroom," said David Stetson, board chairman. "Together, the board, management and broader Alpha workforce have achieved incredible success over the last few years. Mike, Al and Liz are to be commended for their involvement in these accomplishments. As we look ahead, we are excited to welcome Shelly to the board. With her deep finance background and market experience, I am confident she will be a valuable contributor."

Ms. Lombard has been appointed, effective upon joining the board, as chair of the audit committee.

Mr. Gorzynski has been appointed lead independent director, effective February 26, 2024.

Alpha announced the company's director nominees for the 2024 annual meeting of stockholders: Joanna Baker de Neufville, Kenneth S. Courtis, Andy Eidson, Michael Gorzynski, Shelly Lombard, Danny Smith and David J. Stetson.

The board of directors has scheduled the annual meeting for May 2, 2024.

Operational and Performance Update

As previously announced, due to the 2023 closure of Alpha's last thermal mine, the company expects all of its 2024 financial activity to be reported within the Met segment. This change is reflected in the following guidance table.

As of February 14, 2024, at the midpoint of guidance, Alpha has committed and priced approximately 35% of its metallurgical coal at an average price of $171.33 per ton and 100% of thermal coal at an average expected price of $77.14 per ton.


2024 Guidance

in millions of tons

Low

High

Metallurgical

15.5

16.5

Thermal

0.9

1.3

Met Segment - Total Shipments

16.4

17.8




Committed/Priced1,2,3

Committed

Average Price

Metallurgical - Domestic


$161.63

Metallurgical - Export


$196.05

Metallurgical Total

35 %

$171.33

Thermal

100 %

$77.14

Met Segment

40 %

$154.68




Committed/Unpriced1,3

Committed


Metallurgical Total

55 %


Thermal

— %


Met Segment

51 %





Costs per ton4

Low

High

Met Segment

$110.00

$116.00




In millions (except taxes)

Low

High

SG&A5

$60

$66

Idle Operations Expense

$18

$28

Net Cash Interest Income

$2

$8

DD&A

$140

$160

Capital Expenditures

$210

$240

Capital Contributions to Equity Affiliates6

$40

$50

Tax Rate

12 %

17 %

Notes:

1. Based on committed and priced coal shipments as of February 14, 2024. Committed percentage based on the midpoint of shipment guidance range.
2. Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations.
3. Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates.
4. Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have historically varied and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results.
5. Excludes expenses related to non-cash stock compensation and non-recurring expenses.
6. Includes contributions to fund normal operations at our DTA export facility and expected capital investments related to the facility upgrades.

Conference Call

The company plans to hold a conference call regarding its fourth quarter and full year 2023 results on February 26, 2024, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company's website at https://alphametresources.com/investors. Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com.

Forward-Looking Statements

This news release includes forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha's control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur.

FINANCIAL TABLES FOLLOW

Non-GAAP Financial Measures

The discussion below contains "non-GAAP financial measures." These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP" or "GAAP"). Specifically, we make use of the non-GAAP financial measures "Adjusted EBITDA," "non-GAAP coal revenues," "non-GAAP cost of coal sales," and "non-GAAP coal margin." We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments. Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is presented because management believes it is a useful indicator of the financial performance of our coal operations. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.

Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company's operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments and other factors.

Included below are reconciliations of non-GAAP financial measures to GAAP financial measures.

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share data)



Three Months Ended December 31,


Year Ended December 31,


2023


2022


2023


2022

Revenues:








Coal revenues

$              957,127


$              821,142


$          3,456,630


$          4,092,987

Other revenues

2,864


2,306


14,787


8,605

Total revenues

959,991


823,448


3,471,417


4,101,592

Costs and expenses:








Cost of coal sales (exclusive of items shown separately below)

668,879


549,143


2,356,138


2,285,969

Depreciation, depletion and amortization

42,638


23,930


136,869


107,620

Accretion on asset retirement obligations

6,371


5,943


25,500


23,765

Amortization of acquired intangibles, net

2,065


3,460


8,523


19,498

Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above)

26,139


23,279


82,390


71,618

Total other operating loss (income):








Mark-to-market adjustment for acquisition-related obligations


(1,735)



8,880

Other expense (income)

577


2,794


(1,088)


3,363

Total costs and expenses

746,669


606,814


2,608,332


2,520,713

Income from operations

213,322


216,634


863,085


1,580,879

Other (expense) income:








Interest expense

(1,601)


(1,747)


(6,923)


(21,802)

Interest income

3,022


1,775


11,933


3,187

Loss on extinguishment of debt

(2,753)



(2,753)


Equity loss in affiliates

(6,681)


(6,028)


(18,263)


(14,346)

Miscellaneous (expense) income, net

(763)


2,298


(1,620)


6,832

Total other expense, net

(8,776)


(3,702)


(17,626)


(26,129)

Income before income taxes

204,546


212,932


845,459


1,554,750

Income tax (expense) benefit

(28,530)


7,748


(123,503)


(106,205)

Net income

$              176,016


$              220,680


$              721,956


$          1,448,545









Basic income per common share

$                  13.35


$                  13.86


$                  51.18


$                 82.82

Diluted income per common share

$                  12.88


$                  13.37


$                  49.30


$                 79.49









Weighted average shares - basic

13,187,100


15,923,288


14,106,466


17,490,886

Weighted average shares - diluted

13,662,021


16,504,793


14,642,856


18,222,397

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

 CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share data)



December 31, 2023


December 31, 2022

Assets




Current assets:




Cash and cash equivalents

$             268,207


$             301,906

Short-term investments


46,052

Trade accounts receivable, net of allowance for credit losses of $234 and $239 as of December 31, 2023 and 2022, respectively

509,682


407,210

Inventories, net

231,344


200,574

Short-term deposits

32


84,748

Short-term restricted cash


24,547

Prepaid expenses and other current assets

39,032


49,384

Total current assets

1,048,297


1,114,421

Property, plant, and equipment, net of accumulated depreciation and amortization of $558,905 and $491,186 as of December 31, 2023 and 2022, respectively

588,992


442,645

Owned and leased mineral rights, net of accumulated depletion and amortization of $99,826 and $77,333 as of December 31, 2023 and 2022, respectively

451,160


451,062

Other acquired intangibles, net of accumulated amortization of $38,543 and $53,719 as of December 31, 2023 and 2022, respectively

46,579


55,102

Long-term restricted investments

40,597


105,735

Long-term restricted cash

115,918


28,941

Deferred income taxes

8,028


11,378

Other non-current assets

106,486


103,195

Total assets

$          2,406,057


$          2,312,479

Liabilities and Stockholders' Equity




Current liabilities:




Current portion of long-term debt

$                  3,582


$                  3,078

Trade accounts payable

128,836


106,037

Acquisition-related obligations - current


28,254

Accrued expenses and other current liabilities

177,512


265,256

Total current liabilities

309,930


402,625

Long-term debt

6,792


7,897

Workers' compensation and black lung obligations

189,226


188,247

Pension obligations

101,908


110,836

Asset retirement obligations

166,509


142,048

Deferred income taxes

39,142


10,874

Other non-current liabilities

18,622


20,197

Total liabilities

832,129


882,724

Commitments and Contingencies




Stockholders' Equity




Preferred stock - par value $0.01, 5,000,000 shares authorized, none issued


Common stock - par value $0.01, 50,000,000 shares authorized, 22,058,135 issued and 12,938,679 outstanding at December 31, 2023 and 21,703,163 issued and 15,552,676 outstanding at December 31, 2022

221


217

Additional paid-in capital

834,482


815,442

Accumulated other comprehensive loss

(40,587)


(12,162)

Treasury stock, at cost: 9,119,456 shares at December 31, 2023 and 6,150,487 shares at December 31, 2022

(1,189,715)


(649,061)

Retained earnings

1,969,527


1,275,319

Total stockholders' equity

1,573,928


1,429,755

Total liabilities and stockholders' equity

$          2,406,057


$          2,312,479

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)



Year Ended December 31,


2023


2022

Operating activities:




Net income

$                721,956


$             1,448,545

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation, depletion and amortization

136,869


107,620

Amortization of acquired intangibles, net

8,523


19,498

Amortization of debt issuance costs and accretion of debt discount

1,947


8,282

Loss on extinguishment of debt

2,753


Mark-to-market adjustment for acquisition-related obligations


8,880

(Gain) loss on disposal of assets, net

(6,817)


43

Accretion on asset retirement obligations

25,500


23,765

Employee benefit plans, net

8,376


(4,492)

Deferred income taxes

39,722


(14,521)

Stock-based compensation

19,017


7,484

Equity loss in affiliates

18,263


14,346

Other, net

(363)


(761)

Changes in operating assets and liabilities




 Trade accounts receivable, net

(102,477)


82,774

 Inventories, net

(27,900)


(63,169)

 Prepaid expenses and other current assets

7,596


(12,031)

 Deposits

80,729


(84,314)

 Other non-current assets

3,837


11,268

 Trade accounts payable

15,666


3,721

 Accrued expenses and other current liabilities

(9,087)


(6,872)

 Acquisition-related obligations

(28,254)


(22,264)

 Asset retirement obligations

(19,189)


(18,699)

 Other non-current liabilities

(45,508)


(25,098)

Net cash provided by operating activities

851,159


1,484,005

Investing activities:




Capital expenditures

(245,373)


(164,309)

Proceeds on disposal of assets

8,173


3,623

Cash paid for business acquired

(11,919)


(24,878)

Purchases of investment securities

(207,065)


(269,420)

Sales and maturities of investment securities

320,961


149,397

Capital contributions to equity affiliates

(30,812)


(19,556)

Other, net

35


(4,214)

Net cash used in investing activities

(166,000)


(329,357)

Financing activities:




Principal repayments of long-term debt

(2,314)


(450,622)

Dividend and dividend equivalents paid

(113,013)


(13,360)

Common stock repurchases and related expenses

(540,071)


(521,803)

Proceeds from exercise of warrants

4,322


5,643

Other, net

(5,352)


(1,726)

Net cash used in financing activities

(656,428)


(981,868)

Net increase in cash and cash equivalents and restricted cash

28,731


172,780

Cash and cash equivalents and restricted cash at beginning of period

355,394


182,614

Cash and cash equivalents and restricted cash at end of period

$                384,125


$                355,394





Supplemental cash flow information:




Cash paid for interest

$                    5,207


$                  25,895

Cash paid for income taxes

$                  79,221


$                139,663

Cash received for income tax refunds

$                         30


$                           6

Supplemental disclosure of noncash investing and financing activities:




Financing leases and capital financing - equipment

$                    3,195


$                    9,833

Accrued capital expenditures

$                  25,004


$                  18,456

Accrued common stock repurchases

$                    8,118


$                    3,016

Accrued dividend payable

$                    2,863


$                  88,128

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.


As of December 31,


2023


2022

Cash and cash equivalents

$                268,207


$                301,906

Short-term restricted cash


24,547

Long-term restricted cash

115,918


28,941

Total cash and cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows

$                384,125


$                355,394

 

 ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION

(Amounts in thousands)



Three Months Ended


Year Ended December 31,


December 31, 2023


September 30, 2023


December 31, 2022


2023


2022

Net income

$             176,016


$               93,814


$             220,680


$         721,956


$      1,448,545

Interest expense

1,601


1,746


1,747


6,923


21,802

Interest income

(3,022)


(4,639)


(1,775)


(11,933)


(3,187)

Income tax expense (benefit)

28,530


18,964


(7,748)


123,503


106,205

Depreciation, depletion and amortization

42,638


32,582


23,930


136,869


107,620

Non-cash stock compensation expense

9,339


2,999


3,381


19,017


7,484

Loss on extinguishment of debt

2,753




2,753


Mark-to-market adjustment - acquisition-related obligations



(1,735)



8,880

Accretion on asset retirement obligations

6,371


6,376


5,943


25,500


23,765

Amortization of acquired intangibles, net

2,065


2,069


3,460


8,523


19,498

Adjusted EBITDA

$             266,291


$             153,911


$             247,883


$      1,033,111


$      1,740,612

 

ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS



Three Months Ended December 31, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         954,181


$              2,946


$         957,127

Less: Freight and handling fulfillment revenues

(119,539)



(119,539)

Non-GAAP Coal revenues

$         834,642


$              2,946


$         837,588

Tons sold

4,542


42


4,584

Non-GAAP Coal sales realization per ton

$           183.76


$              70.14


$           182.72







Cost of coal sales (exclusive of items shown separately below)

$         663,899


$              4,980


$         668,879

Depreciation, depletion and amortization - production (1)

33,295


9,030


42,325

Accretion on asset retirement obligations

3,721


2,650


6,371

Amortization of acquired intangibles, net

2,065



2,065

Total Cost of coal sales

$         702,980


$            16,660


$         719,640

Less: Freight and handling costs

(119,539)



(119,539)

Less:  Depreciation, depletion and amortization - production (1)

(33,295)


(9,030)


(42,325)

Less: Accretion on asset retirement obligations

(3,721)


(2,650)


(6,371)

Less: Amortization of acquired intangibles, net

(2,065)



(2,065)

Less: Idled and closed mine costs

(3,876)


(2,457)


(6,333)

Non-GAAP Cost of coal sales

$         540,484


$              2,523


$         543,007

Tons sold

4,542


42


4,584

Non-GAAP Cost of coal sales per ton

$           119.00


$              60.07


$           118.46



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended December 31, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         954,181


$              2,946


$         957,127

Less: Total Cost of coal sales (per table above)

(702,980)


(16,660)


(719,640)

GAAP Coal margin

$         251,201


$          (13,714)


$         237,487

Tons sold

4,542


42


4,584

GAAP Coal margin per ton

$             55.31


$          (326.52)


$             51.81







GAAP Coal margin

$         251,201


$          (13,714)


$         237,487

Add: Depreciation, depletion and amortization - production (1)

33,295


9,030


42,325

Add: Accretion on asset retirement obligations

3,721


2,650


6,371

Add: Amortization of acquired intangibles, net

2,065



2,065

Add: Idled and closed mine costs

3,876


2,457


6,333

Non-GAAP Coal margin

$         294,158


$                423


$         294,581

Tons sold

4,542


42


4,584

Non-GAAP Coal margin per ton

$             64.76


$             10.07


$             64.26


(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended September 30, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         731,481


$              7,517


$         738,998

Less: Freight and handling fulfillment revenues

(94,770)


(2)


(94,772)

Non-GAAP Coal revenues

$         636,711


$              7,515


$         644,226

Tons sold

4,115


110


4,225

Non-GAAP Coal sales realization per ton

$           154.73


$              68.32


$           152.48







Cost of coal sales (exclusive of items shown separately below)

$         552,737


$            11,871


$         564,608

Depreciation, depletion and amortization - production (1)

31,893


377


32,270

Accretion on asset retirement obligations

3,722


2,654


6,376

Amortization of acquired intangibles, net

2,069



2,069

Total Cost of coal sales

$         590,421


$           14,902


$         605,323

Less: Freight and handling costs

(94,770)


(2)


(94,772)

Less:  Depreciation, depletion and amortization - production (1)

(31,893)


(377)


(32,270)

Less: Accretion on asset retirement obligations

(3,722)


(2,654)


(6,376)

Less: Amortization of acquired intangibles, net

(2,069)



(2,069)

Less: Idled and closed mine costs

(5,507)


(2,549)


(8,056)

Non-GAAP Cost of coal sales

$         452,460


$              9,320


$         461,780

Tons sold

4,115


110


4,225

Non-GAAP Cost of coal sales per ton

$           109.95


$              84.73


$           109.30



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended September 30, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         731,481


$              7,517


$         738,998

Less: Total Cost of coal sales (per table above)

(590,421)


(14,902)


(605,323)

GAAP Coal margin

$         141,060


$            (7,385)


$         133,675

Tons sold

4,115


110


4,225

GAAP Coal margin per ton

$             34.28


$            (67.14)


$             31.64







GAAP Coal margin

$         141,060


$            (7,385)


$         133,675

Add: Depreciation, depletion and amortization - production (1)

31,893


377


32,270

Add: Accretion on asset retirement obligations

3,722


2,654


6,376

Add: Amortization of acquired intangibles, net

2,069



2,069

Add: Idled and closed mine costs

5,507


2,549


8,056

Non-GAAP Coal margin

$         184,251


$            (1,805)


$         182,446

Tons sold

4,115


110


4,225

Non-GAAP Coal margin per ton

$             44.78


$            (16.41)


$             43.18



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended December 31, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         804,876


$           16,266


$         821,142

Less: Freight and handling fulfillment revenues

(105,911)


1


(105,910)

Non-GAAP Coal revenues

$         698,965


$           16,267


$         715,232

Tons sold

3,752


129


3,881

Non-GAAP Coal sales realization per ton

$           186.29


$           126.10


$           184.29







Cost of coal sales (exclusive of items shown separately below)

$         541,547


$             7,596


$         549,143

Depreciation, depletion and amortization - production (1)

19,575


4,083


23,658

Accretion on asset retirement obligations

3,412


2,531


5,943

Amortization of acquired intangibles, net

2,517


943


3,460

Total Cost of coal sales

$         567,051


$           15,153


$        582,204

Less: Freight and handling costs

(105,911)


1


(105,910)

Less:  Depreciation, depletion and amortization - production (1)

(19,575)


(4,083)


(23,658)

Less: Accretion on asset retirement obligations

(3,412)


(2,531)


(5,943)

Less: Amortization of acquired intangibles, net

(2,517)


(943)


(3,460)

Less: Idled and closed mine costs

(11,754)


2,821


(8,933)

Non-GAAP Cost of coal sales

$         423,882


$           10,418


$        434,300

Tons sold

3,752


129


3,881

Non-GAAP Cost of coal sales per ton

$           112.97


$             80.76


$           111.90



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Three Months Ended December 31, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$         804,876


$           16,266


$         821,142

Less: Total Cost of coal sales (per table above)

(567,051)


(15,153)


(582,204)

GAAP Coal margin

$         237,825


$              1,113


$         238,938

Tons sold

3,752


129


3,881

GAAP Coal margin per ton

$             63.39


$                8.63


$             61.57







GAAP Coal margin

$         237,825


$              1,113


$         238,938

Add: Depreciation, depletion and amortization - production (1)

19,575


4,083


23,658

Add: Accretion on asset retirement obligations

3,412


2,531


5,943

Add: Amortization of acquired intangibles, net

2,517


943


3,460

Add: Idled and closed mine costs

11,754


(2,821)


8,933

Non-GAAP Coal margin

$         275,083


$              5,849


$         280,932

Tons sold

3,752


129


3,881

Non-GAAP Coal margin per ton

$             73.32


$              45.34


$             72.39



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Year Ended December 31, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      3,406,643


$           49,987


$      3,456,630

Less: Freight and handling fulfillment revenues

(438,783)


(227)


(439,010)

Non-GAAP Coal revenues

$      2,967,860


$           49,760


$      3,017,620

Tons sold

16,543


529


17,072

Non-GAAP Coal sales realization per ton

$           179.40


$             94.06


$           176.76







Cost of coal sales (exclusive of items shown separately below)

$      2,303,129


$           53,009


$      2,356,138

Depreciation, depletion and amortization - production (1)

125,716


9,952


135,668

Accretion on asset retirement obligations

14,886


10,614


25,500

Amortization of acquired intangibles, net

8,523



8,523

Total Cost of coal sales

$      2,452,254


$           73,575


$      2,525,829

Less: Freight and handling costs

(438,783)


(227)


(439,010)

Less:  Depreciation, depletion and amortization - production (1)

(125,716)


(9,952)


(135,668)

Less: Accretion on asset retirement obligations

(14,886)


(10,614)


(25,500)

Less: Amortization of acquired intangibles, net

(8,523)



(8,523)

Less: Idled and closed mine costs

(16,983)


(10,015)


(26,998)

Non-GAAP Cost of coal sales

$      1,847,363


$           42,767


$      1,890,130

Tons sold

16,543


529


17,072

Non-GAAP Cost of coal sales per ton

$            111.67


$             80.84


$           110.72



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Year Ended December 31, 2023

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      3,406,643


$           49,987


$      3,456,630

Less: Total Cost of coal sales (per table above)

(2,452,254)


(73,575)


(2,525,829)

GAAP Coal margin

$         954,389


$          (23,588)


$         930,801

Tons sold

16,543


529


17,072

GAAP Coal margin per ton

$             57.69


$            (44.59)


$             54.52







GAAP Coal margin

$         954,389


$          (23,588)


$         930,801

Add: Depreciation, depletion and amortization - production (1)

125,716


9,952


135,668

Add: Accretion on asset retirement obligations

14,886


10,614


25,500

Add: Amortization of acquired intangibles, net

8,523



8,523

Add: Idled and closed mine costs

16,983


10,015


26,998

Non-GAAP Coal margin

$      1,120,497


$              6,993


$      1,127,490

Tons sold

16,543


529


17,072

Non-GAAP Coal margin per ton

$             67.73


$              13.22


$             66.04



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Year Ended December 31, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      4,018,515


$           74,472


$      4,092,987

Less: Freight and handling fulfillment revenues

(529,043)


(20)


(529,063)

Non-GAAP Coal revenues

$      3,489,472


$           74,452


$      3,563,924

Tons sold

15,478


900


16,378

Non-GAAP Coal sales realization per ton

$           225.45


$             82.72


$           217.60







Cost of coal sales (exclusive of items shown separately below)

$      2,225,771


$           60,198


$      2,285,969

Depreciation, depletion and amortization - production (1)

100,584


6,036


106,620

Accretion on asset retirement obligations

13,590


10,175


23,765

Amortization of acquired intangibles, net

15,699


3,799


19,498

Total Cost of coal sales

$      2,355,644


$           80,208


$      2,435,852

Less: Freight and handling costs

(529,043)


(20)


(529,063)

Less:  Depreciation, depletion and amortization - production (1)

(100,584)


(6,036)


(106,620)

Less: Accretion on asset retirement obligations

(13,590)


(10,175)


(23,765)

Less: Amortization of acquired intangibles, net

(15,699)


(3,799)


(19,498)

Less: Idled and closed mine costs

(21,646)


(6,911)


(28,557)

Non-GAAP Cost of coal sales

$      1,675,082


$           53,267


$      1,728,349

Tons sold

15,478


900


16,378

Non-GAAP Cost of coal sales per ton

$           108.22


$             59.19


$           105.53



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

 


Year Ended December 31, 2022

(In thousands, except for per ton data)

Met


All Other


Consolidated

Coal revenues

$      4,018,515


$           74,472


$      4,092,987

Less: Total Cost of coal sales (per table above)

(2,355,644)


(80,208)


(2,435,852)

GAAP Coal margin

$      1,662,871


$            (5,736)


$      1,657,135

Tons sold

15,478


900


16,378

GAAP Coal margin per ton

$           107.43


$              (6.37)


$           101.18







GAAP Coal margin

$      1,662,871


$            (5,736)


$      1,657,135

Add: Depreciation, depletion and amortization - production (1)

100,584


6,036


106,620

Add: Accretion on asset retirement obligations

13,590


10,175


23,765

Add: Amortization of acquired intangibles, net

15,699


3,799


19,498

Add: Idled and closed mine costs

21,646


6,911


28,557

Non-GAAP Coal margin

$      1,814,390


$           21,185


$      1,835,575

Tons sold

15,478


900


16,378

Non-GAAP Coal margin per ton

$           117.22


$             23.54


$           112.08



(1)

Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.



 


Three Months Ended December 31, 2023

(In thousands, except for per ton data)

Tons Sold


Coal Revenues


Non-GAAP
Coal sales
realization
per ton


% of Met Tons
Sold

Export - other pricing mechanisms

1,508


$       264,380


$         175.32


37 %

Domestic

1,111


212,798


$         191.54


27 %

Export - Australian indexed

1,495


319,048


$         213.41


36 %

Total Met segment - met coal

4,114


796,226


$         193.54


100 %

Met segment - thermal coal

428


38,416


$           89.76



Total Met segment Coal revenues

4,542


834,642


$         183.76



All Other Coal revenues

42


2,946


$           70.14



Non-GAAP Coal revenues

4,584


837,588


$         182.72



Add: Freight and handling fulfillment revenues


119,539





Coal revenues

4,584


$       957,127





INVESTOR & MEDIA CONTACT: EMILY O'QUINN
InvestorRelations@AlphaMetResources.com
CorporateCommunications@AlphaMetResources.com
(423) 573-0369

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SOURCE Alpha Metallurgical Resources, Inc.