Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 23, 2024 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-13105 | |
Entity Registrant Name | Arch Resources, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 43-0921172 | |
Entity Address, Address Line One | One CityPlace Drive | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63141 | |
City Area Code | 314 | |
Local Phone Number | 994-2700 | |
Title of 12(b) Security | Common stock, $.01 par value | |
Trading Symbol | ARCH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 18,116,434 | |
Entity Central Index Key | 0001037676 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Consolidated Income Statements | ||
Revenues | $ 680,190 | $ 869,931 |
Costs, expenses and other operating | ||
Cost of sales (exclusive of items shown separately below) | 567,723 | 571,737 |
Depreciation, depletion and amortization | 38,820 | 35,479 |
Accretion on asset retirement obligations | 5,869 | 5,292 |
Selling, general and administrative expenses | 25,587 | 26,022 |
Other operating income, net | (15,983) | (5,169) |
Costs, expenses and other operating | 622,016 | 633,361 |
Income from operations | 58,174 | 236,570 |
Interest expense, net | ||
Interest expense | (4,316) | (4,126) |
Interest and investment income | 6,100 | 3,336 |
Interest expense, net | 1,784 | (790) |
Income before nonoperating expenses | 59,958 | 235,780 |
Nonoperating expense | ||
Non-service related pension and postretirement benefit (costs) credits | (286) | 592 |
Net loss resulting from early retirement of debt | (1,126) | |
Nonoperating expenses | (286) | (534) |
Income before income taxes | 59,672 | 235,246 |
Provision for income taxes | 3,719 | 37,138 |
Net income | $ 55,953 | $ 198,108 |
Net income per common share | ||
Basic earnings per share (in dollars per share) | $ 3.05 | $ 11.05 |
Diluted earnings per share (in dollars per share) | $ 2.98 | $ 10.02 |
Weighted average shares outstanding | ||
Basic weighted average shares outstanding (in shares) | 18,347 | 17,924 |
Diluted weighted average shares outstanding (in shares) | 18,775 | 19,784 |
Dividends declared per common share (in dollars per share) | $ 1.65 | $ 3.11 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Consolidated Statements of Comprehensive Income | ||
Net Income (Loss) | $ 55,953 | $ 198,108 |
Pension, postretirement and other post-employment benefits | ||
Comprehensive loss before tax | (2,006) | (2,895) |
Provision for income taxes | 427 | 636 |
Other comprehensive loss, pension, postretirement and other post-employment benefits, net of tax | (1,579) | (2,259) |
Available-for-sale securities | ||
Comprehensive loss before tax | (4) | (15) |
Provision for income taxes | 1 | 3 |
Other comprehensive (loss) income, available-for-sale securities, net of tax | (3) | (12) |
Total other comprehensive loss | (1,582) | (2,271) |
Total comprehensive income | $ 54,371 | $ 195,837 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 285,531 | $ 287,807 |
Short-term investments | 34,252 | 32,724 |
Restricted cash | 1,100 | 1,100 |
Trade accounts receivable (net of $0 allowance at March 31, 2024 and December 31, 2023) | 224,084 | 273,522 |
Other receivables | 10,519 | 13,700 |
Inventories | 243,690 | 244,261 |
Other current assets | 63,393 | 64,653 |
Total current assets | 862,569 | 917,767 |
Property, plant and equipment, net | 1,235,775 | 1,228,891 |
Other assets | ||
Deferred income taxes | 120,792 | 124,024 |
Equity investments | 24,053 | 22,815 |
Fund for asset retirement obligations | 144,146 | 142,266 |
Other noncurrent assets | 47,351 | 48,410 |
Total other assets | 336,342 | 337,515 |
Total assets | 2,434,686 | 2,484,173 |
Current Liabilities | ||
Accounts payable | 178,119 | 205,001 |
Accrued expenses and other current liabilities | 113,360 | 127,617 |
Current maturities of debt | 35,341 | 35,343 |
Total current liabilities | 326,820 | 367,961 |
Long-term debt | 107,959 | 105,252 |
Asset retirement obligations | 260,252 | 255,740 |
Accrued pension benefits | 861 | 878 |
Accrued postretirement benefits other than pension | 47,384 | 47,494 |
Accrued workers' compensation | 155,838 | 154,650 |
Other noncurrent liabilities | 68,124 | 72,742 |
Total liabilities | 967,238 | 1,004,717 |
Stockholders' equity | ||
Common stock, $0.01 par value, authorized 300,000 shares, issued 30,785 and 30,557 shares at March 31, 2024 and December 31, 2023, respectively | 308 | 306 |
Paid-in capital | 754,054 | 720,029 |
Retained earnings | 1,854,621 | 1,830,018 |
Treasury stock, 12,607 and 12,197 shares at March 31, 2024 and December 31, 2023, respectively, at cost | (1,178,735) | (1,109,679) |
Accumulated other comprehensive income | 37,200 | 38,782 |
Total stockholders' equity | 1,467,448 | 1,479,456 |
Total liabilities and stockholders' equity | $ 2,434,686 | $ 2,484,173 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Condensed Consolidated Balance Sheets | ||
Trade accounts receivable, allowance | $ 0 | $ 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000 | 300,000 |
Common stock, shares issued (in shares) | 30,785 | 30,557 |
Treasury stock, shares (in shares) | 12,607 | 12,197 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities | ||
Net income | $ 55,953 | $ 198,108 |
Adjustments to reconcile to cash from operating activities: | ||
Depreciation, depletion and amortization | 38,820 | 35,479 |
Accretion on asset retirement obligations | 5,869 | 5,292 |
Deferred income taxes | 3,660 | 35,548 |
Employee stock-based compensation expense | 5,588 | 6,767 |
Amortization relating to financing activities | 658 | 450 |
Gain on disposals and divestitures, net | (24) | (279) |
Reclamation work completed | (1,355) | (3,887) |
Contribution to fund for asset retirement obligations | (1,881) | (1,141) |
Changes in: | ||
Receivables | 52,618 | (57,968) |
Inventories | 571 | (48,140) |
Accounts payable, accrued expenses and other current liabilities | (33,481) | (63,508) |
Income taxes, net | 30 | 1,491 |
Other | 1,240 | 17,909 |
Cash provided by operating activities | 128,266 | 126,121 |
Investing activities | ||
Capital expenditures | (45,446) | (30,541) |
Minimum royalty payments | (50) | (113) |
Proceeds from disposals and divestitures | 90 | 343 |
Purchases of short-term investments | (11,332) | (2,930) |
Proceeds from sales of short-term investments | 9,867 | 8,000 |
Investments in and advances to affiliates, net | (4,203) | (4,329) |
Cash used in investing activities | (51,074) | (29,570) |
Financing activities | ||
Proceeds from issuance of term loan due 2025 | 20,000 | |
Payments on term loan due 2024 | (3,502) | (750) |
Payments on convertible debt | (58,430) | |
Net payments on other debt | (12,796) | (12,647) |
Debt financing costs | (1,500) | |
Purchases of treasury stock | (13,749) | (20,806) |
Dividends paid | (43,662) | (66,902) |
Payments for taxes related to net share settlement of equity awards | (24,259) | (27,055) |
Proceeds from warrants exercised | 43,719 | |
Cash used in financing activities | (79,468) | (142,871) |
Decrease in cash and cash equivalents, including restricted cash | (2,276) | (46,320) |
Cash and cash equivalents, including restricted cash, beginning of period | 288,907 | 237,159 |
Cash and cash equivalents, including restricted cash, end of period | 286,631 | 190,839 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash and cash equivalents | 285,531 | 189,739 |
Restricted Cash | $ 1,100 | $ 1,100 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Paid-in Capital | Treasury Stock, at cost | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Beginning Balance at Dec. 31, 2022 | $ 288 | $ 724,660 | $ (986,171) | $ 1,565,374 | $ 61,429 | $ 1,365,580 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (55,140) | (55,140) | ||||
Dividend Equivalents earned on RSU grants | 120 | (2,354) | (2,234) | |||
Purchase of common stock under share repurchase program | (13) | (18,994) | (19,007) | |||
Employee stock-based compensation | 6,767 | 6,767 | ||||
Cash paid for convertible debt repurchased | (44,486) | (44,486) | ||||
Issuance of shares of common stock under long-term incentive plan | 3 | 3 | ||||
Common stock withheld related to net share settlement of equity awards | (27,055) | (27,055) | ||||
Issuance of shares of common stock for warrants exercised | 10 | 43,719 | 43,729 | |||
Total comprehensive income (loss) | 198,108 | (2,271) | 195,837 | |||
Ending Balance at Mar. 31, 2023 | 301 | 703,712 | (1,005,165) | 1,705,988 | 59,158 | 1,463,994 |
Beginning Balance at Dec. 31, 2023 | 306 | 720,029 | (1,109,679) | 1,830,018 | 38,782 | 1,479,456 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends on common shares | (30,671) | (30,671) | ||||
Dividend Equivalents earned on RSU grants | 72 | (679) | (607) | |||
Purchase of common stock under share repurchase program | (16,432) | (16,432) | ||||
Employee stock-based compensation | 5,588 | 5,588 | ||||
Receipt of shares from exercise of capped call, value | 52,624 | (52,624) | ||||
Common stock withheld related to net share settlement of equity awards | (24,259) | (24,259) | ||||
Issuance of shares of common stock for warrants exercised | 2 | 2 | ||||
Total comprehensive income (loss) | 55,953 | (1,582) | 54,371 | |||
Ending Balance at Mar. 31, 2024 | $ 308 | $ 754,054 | $ (1,178,735) | $ 1,854,621 | $ 37,200 | $ 1,467,448 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Consolidated Statements of Stockholders' Equity | ||
Purchase of shares of common stock under share repurchase program | 94,701 | 131,156 |
Issuance of shares of common stock under long-term incentive plan | 275,053 | |
Issuance of shares of common stock for warrants exercised | 227,981 | 1,037,679 |
Receipt of shares from the exercise of capped call | 315,721 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation | |
Basis of Presentation | 1. The accompanying unaudited condensed consolidated financial statements include the accounts of Arch Resources, Inc. (“Arch Resources”) and its subsidiaries and controlled entities (“Arch” or the “Company”). Unless the context indicates otherwise, the terms “Arch” and the “Company” are used interchangeably in this Quarterly Report on Form 10-Q. The Company’s primary business is the production of metallurgical and thermal coal from underground and surface mines located throughout the United States, for sale to steel producers, utility companies, and industrial accounts both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Wyoming and Colorado. All subsidiaries are wholly owned. Intercompany transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and U.S. Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three months ended March 31, 2024 are not necessarily indicative of results to be expected for the year ending December 31, 2024. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission. Certain amounts have been reclassified to conform to the current period's presentation. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies | |
Accounting Policies | 2. Recently Adopted Accounting Guidance There is no recently issued accounting guidance effective that is expected to have a material impact on the Company’s financial position, results of operations, or liquidity. Recent Accounting Guidance Issued Not Yet Effective In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Company’s annual periods beginning June 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the ASU to determine its impact on the Company’s disclosures. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss) | 3. The following items are included in accumulated other comprehensive income (loss) (“AOCI”), net of tax: Pension, Postretirement Accumulated and Other Post- Other Employment Available-for- Comprehensive Benefits Sale Securities Income (loss) Balances at December 31, 2023 $ 38,783 $ (1) $ 38,782 Unrealized gains — 5 5 Amounts reclassified from accumulated other comprehensive income (2,006) (9) (2,015) Tax effect 427 1 428 Balances at March 31, 2024 $ 37,204 $ (4) $ 37,200 The following amounts were reclassified out of AOCI: Three Months Ended March 31, Line Item in the Condensed Consolidated Details About AOCI Components 2024 2023 Income Statements (In thousands) Pension, postretirement and other post-employment benefits Amortization of actuarial gains, net 1 $ 2,006 $ 2,858 Non-service related pension and postretirement benefit credits Amortization of prior service credits — 37 Non-service related pension and postretirement benefit credits (427) (636) Provision for income taxes $ 1,579 $ 2,259 Net of tax Available-for-sale securities 2 $ 9 $ (22) Interest and investment income (1) 5 Provision for income taxes $ 8 $ (17) Net of tax 1 2 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventories | |
Inventories | 4. Inventories consist of the following: March 31, December 31, 2024 2023 (In thousands) Coal $ 95,492 $ 99,174 Repair parts and supplies 148,198 145,087 $ 243,690 $ 244,261 The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $1.6 million at March 31, 2024 and $1.6 million at December 31, 2023. |
Investments in Available-for-Sa
Investments in Available-for-Sale Securities | 3 Months Ended |
Mar. 31, 2024 | |
Investments in Available-for-Sale Securities | |
Investments in Available-for-Sale Securities | 5. The Company has invested in marketable debt securities, primarily highly liquid U.S. Treasury securities and investment grade corporate bonds. These investments are held in the custody of a major financial institution. These securities are classified as available-for-sale securities and, accordingly, the unrealized gains and losses are recorded through other comprehensive income. The Company’s investments in available-for-sale marketable securities are as follows: March 31, 2024 Gross Allowance Unrealized for - Credit Fair Cost Basis Gains Losses Losses Value (In thousands) Available-for-sale: U.S. government and agency securities $ 31,291 $ 12 $ (7) $ — $ 31,296 Corporate notes and bonds 2,956 4 (4) — 2,956 Total Investments $ 34,247 $ 16 $ (11) $ — $ 34,252 December 31, 2023 Gross Allowance Unrealized for - Credit Fair Cost Basis Gains Losses Losses Value (In thousands) Available-for-sale: U.S. government and agency securities $ 28,764 $ 14 $ (5) $ — $ 28,773 Corporate notes and bonds 3,951 1 (1) — 3,951 Total Investments $ 32,715 $ 15 $ (6) $ — $ 32,724 The aggregate fair value of investments with unrealized losses that had been owned for less than a year was $5.6 million and $2.2 million at March 31, 2024 and December 31, 2023, respectively. The aggregate fair value of investments with unrealized losses that were owned for over a year was million at March 31, 2024 and December 31, 2023, respectively. The unrealized losses in the Company’s portfolio at March 31, 2024 are the result of normal market fluctuations. The Company does not intend to sell these investments before recovery of their amortized cost base. The debt securities outstanding at March 31, 2024 have maturity dates ranging from the second quarter of 2024 through the second quarter of 2025. The Company classifies its investments as current based on the nature of the investments and their availability to provide cash for use in current operations, if needed. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Expenses and Other Current Liabilities. | |
Accrued Expenses and Other Current Liabilities | 6. Accrued expenses and other current liabilities consist of the following: March 31, December 31, 2024 2023 (In thousands) Payroll and employee benefits $ 30,832 $ 37,259 Taxes other than income taxes 44,063 51,155 Interest 1,372 2,395 Workers’ compensation 17,775 18,724 Asset retirement obligations 6,091 6,089 Other 13,227 11,995 $ 113,360 $ 127,617 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Debt and Financing Arrangements | |
Debt and Financing Arrangements | 7. March 31, December 31, 2024 2023 (In thousands) Term loan due 2025 ($20.0 million face value) $ 20,000 $ — Term loan due 2024 — 3,502 Tax Exempt Bonds ($98.1 million face value) 98,075 98,075 Other 27,733 40,529 Debt issuance costs (2,508) (1,511) 143,300 140,595 Less: current maturities of debt 35,341 35,343 Long-term debt $ 107,959 $ 105,252 Term Loan Facility On February 8, 2024, the Company entered into a new senior secured term loan credit agreement in the principal amount of $20.0 million (the “Term Loan”) with PNC Bank, National Association, as administrative and collateral agent. The Term Loan requires quarterly principal amortization payments of $3.3 million and matures on June 30, 2025. The interest rate on the facility is, at the option of Arch Resources, either (i) Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of .10% plus an applicable margin of 3.00%, subject to a SOFR floor of 0.00%, or (ii) a base rate plus an applicable margin of 2.00%. The Term Loan is guaranteed by substantially all of the domestic subsidiaries of the Company. Additionally, the Term Loan is secured by substantially all the assets of the Company and the guarantors, subject to customary exceptions (including an exclusion for owned and leased real property). The Term Loan contains the following financial maintenance covenants: (i) total net leverage not to exceed 2.00 to 1.00 for the trailing four four The Term Loan is subject to certain usual and customary mandatory prepayment events, including 100% of net cash proceeds of debt issuances (other than debt permitted to be incurred under the terms of the Term Loan). The Term Loan contains customary affirmative and negative covenants and representations; and customary events of default, subject to customary thresholds and exceptions. As of March 31, 2024, the Company was in compliance with the Term Loan debt covenants. The proceeds from the Term Loan were used to pay off the $3.5 million balance of the existing term loan debt facility. Additionally, the Company incurred approximately $1.5 million in debt issuance costs related to the Term Loan. Accounts Receivable Securitization Facility On August 3, 2022, the Company amended and extended its existing trade accounts receivable securitization facility provided to Arch Receivable Company, LLC, a special-purpose entity that is a wholly owned subsidiary of Arch Resources (“Arch Receivable”) (the “Securitization Facility”), which supports the issuance of letters of credit and requests for cash advances. The amendment to the Securitization Facility increased the size of the facility from $110 million to $150 million of borrowing capacity and extended the maturity date to August 1, 2025. Under the Securitization Facility, Arch Receivable, Arch Resources and certain of Arch Resources’ subsidiaries party to the Securitization Facility have granted to the administrator of the 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. As of March 31, 2024, letters of credit totaling Inventory-Based Revolving Credit Facility On August 3, 2022, Arch Resources amended the senior secured inventory-based revolving credit facility in an aggregate principal amount of $50 million (the “Inventory Facility”). Availability under the Inventory Facility is subject to a borrowing base consisting of (i) 85% of the net orderly liquidation value of eligible coal inventory, plus (ii) the lesser of (x) 85% of the net orderly liquidation value of eligible parts and supplies inventory and (y) 35% of the amount determined pursuant to clause (i), plus (iii) 100% of Arch Resources’ Eligible Cash (defined in the Inventory Facility), subject to reduction for reserves imposed by Regions. The amendment of the Inventory Facility extended the maturity of the facility to August 3, 2025; maintained the minimum liquidity requirement of $100 million and included provisions that reduce the advance rates for coal inventory and parts and supplies, depending on liquidity, as defined in the agreement. The Inventory Facility contains certain customary affirmative and negative covenants; events of default, subject to customary thresholds and exceptions; and representations, including certain cash management and reporting requirements that are customary for asset-based credit facilities. The Inventory Facility also includes a requirement to maintain liquidity equal to or exceeding $100 million at all times. As of March 31, 2024, letters of credit totaling $26.2 million were outstanding under the facility with $23.8 million available for borrowings. Equipment Financing On July 29, 2021, the Company entered into an equipment financing arrangement accounted for as debt. The Company received maturing on February 1, 2025. Upon maturity, the Company will have the option to purchase the equipment. Tax Exempt Bonds On July 2, 2020, the West Virginia Economic Development Authority (the “Issuer”) issued $53.1 million aggregate principal amount of Solid Waste Disposal Facility Revenue Bonds (Arch Resources Project), Series 2020 (the “Tax Exempt Bonds”) pursuant to an Indenture of Trust dated as of June 1, 2020 (the “Indenture of Trust”) between the Issuer and Citibank, N.A., as trustee (the “Trustee”). On March 4, 2021, the Issuer issued an additional million of Series 2021 Tax Exempt Bonds. The proceeds of the Tax Exempt Bonds were loaned to the Company pursuant to a Loan Agreement dated as of June 1, as supplemented by a First Amendment to Loan Agreement dated as of March 1, 2021 (collectively, the “Loan Agreement”), each between the Issuer and the Company. The Tax Exempt Bonds are payable solely from payments to be made by the Company under the Loan Agreement as evidenced by a Note from the Company to the Trustee. The proceeds of the Tax Exempt Bonds have been used to finance certain costs of the acquisition, construction, reconstruction, and equipping of solid waste disposal facilities at the Company’s Leer South development, and for capitalized interest and certain costs related to issuance of the Tax Exempt Bonds. The Tax Exempt Bonds bear interest payable each January 1 and July 1, commencing January 1, 2021 for the Series 2020 and July 1, 2021 for the Series 2021, and have a final maturity of July 1, 2045; however, the Tax Exempt Bonds are subject to mandatory tender on July 1, 2025 at a purchase price equal to 100% of the principal amount of the Tax Exempt Bonds, plus accrued interest to July 1, 2025. The Series 2020 and Series 2021 Tax Exempt Bonds bear interest of Convertible Debt On November 3, 2020, the Company issued $155.3 million in aggregate principal amount of 5.25% convertible senior notes due 2025 (“Convertible Notes ” or “Convertible Debt”). The net proceeds from the issuance of the Convertible Notes, after deducting offering related costs of $5.1 million and cost of a “Capped Call Transaction” as defined below of $17.5 million, were approximately $132.7 million. For the three months ended March 31, 2023, the Company repurchased the remaining Convertible Notes with a principal amount of $13.2 million for aggregate consideration consisting of $58.4 million in cash. In connection with the repurchase, the Company recognized a loss of $1.1 million. This amount is included as “Net loss resulting from early retirement of debt” in the accompanying Condensed Consolidated Income Statements. Capped Call Transactions On February 16, 2024, Arch Resources, Inc. (the “Company”) agreed with each of Bank of Montreal, Goldman Sachs & Co. LLC and Jefferies International Limited (each a “Counterparty” and collectively, the “Counterparties”) to terminate and unwind certain capped call transactions by and between the Company and each Counterparty (such transactions, the “Capped Calls”). The Company entered into the Capped Calls in connection with the offering of its now-retired Convertible Notes, in order to reduce the potential dilution upon conversion of the notes. The Company retired |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Taxes | |
Income Taxes | 8. The Company's effective tax rate for three months ended March 31, 2024 is based on its estimated full year effective tax rate, adjusted for discrete items. The effective tax rate for the three months ended March 31, 2024 was For the three months ended March 31, 2023, the Company's effective tax rate was 15.8%. The effective tax rate for the three months ended March 31, 2023 differed from the U.S. federal statutory rate of 21%, primarily due to the income tax benefit for excess percentage depletion and discrete tax benefits related to equity compensation. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Fair Value Measurements | 9. The hierarchy of fair value measurements assigns a level to fair value measurements based on the inputs used in the respective valuation techniques. The levels of the hierarchy, as defined below, give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. ● Level 1 is defined as observable inputs such as quoted prices in active markets for identical assets. Level 1 assets include U.S. Treasury securities, and coal swaps and futures that are submitted for clearing on the New York Mercantile Exchange. ● Level 2 is defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s Level 2 assets and liabilities include U.S. government agency securities, coal commodity contracts, and interest rate swaps with fair values derived from quoted prices in over-the-counter markets or from prices received from direct broker quotes. ● Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. These include the Company’s commodity option contracts (heating oil) valued using modeling techniques, such as Black-Scholes, that require the use of inputs, particularly volatility, that are rarely observable. The table below sets forth, by level, the Company’s financial assets and liabilities that are recorded at fair value in the accompanying Condensed Consolidated Balance Sheet: March 31, 2024 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 34,252 $ 31,296 $ 2,956 $ — Fund for asset retirement obligations 144,146 144,146 — — Total assets $ 178,398 $ 175,442 $ 2,956 $ — The Company’s contracts with its counterparties allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. For classification purposes, the Company records the net fair value of all the positions with these counterparties as a net asset or liability. Each level in the table above displays the underlying contracts according to their classification in the accompanying Condensed Consolidated Balance Sheet, based on this counterparty netting. Fair Value of Long-Term Debt At March 31, 2024 and December 31, 2023, the fair value of the Company’s debt, including amounts classified as current, was $145.8 million and $142.1 million, respectively. Fair values are based upon observed prices in an active market, when available, or from valuation models using market information, which fall into Level 2 in the fair value hierarchy. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings per Common Share | |
Earnings per Common Share | 10. The Company computes basic net income per share using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities may consist of warrants, restricted stock units, and convertible debt. The dilutive effect of outstanding warrants and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method whereas the Convertible Debt uses the if converted method. The following table provides the basic and diluted earnings per share by reconciling the numerators and denominators of the computations: Three Months Ended March 31, 2024 2023 (In Thousands) Net income attributable to common shares $ 55,953 $ 198,108 Adjustment of interest expense attributable to Convertible Notes — 108 Diluted net income attributable to common stockholders 55,953 198,216 Basic weighted average shares outstanding 18,347 17,924 Effect of dilutive securities 428 1,524 Convertible Notes (a) — 336 Diluted weighted average shares outstanding 18,775 19,784 (a) Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted at the beginning of the year ended December 31, 2023. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. The Capped Call Transaction is anti-dilutive and is excluded from the calculation of diluted earnings per share. |
Workers Compensation Expense
Workers Compensation Expense | 3 Months Ended |
Mar. 31, 2024 | |
Workers Compensation Expense | |
Workers' Compensation Expense | 11. The Company is liable under the Federal Mine Safety and Health Act of 1969, as subsequently amended, to provide for pneumoconiosis (occupational disease) benefits to eligible employees, former employees and dependents. The Company currently provides for federal claims principally through a self-insurance program. The Company is also liable under various state workers’ compensation statutes for occupational disease benefits. The occupational disease benefit obligation represents the present value of the actuarially computed present and future liabilities for such benefits over the employees’ applicable years of service. In October 2019, the Company filed an application with the Office of Workers’ Compensation Programs (“OWCP”) within the Department of Labor for reauthorization to self-insure federal black lung benefits. In February 2020, the Company received a reply from the OWCP confirming its status to remain self-insured contingent upon posting additional collateral of of receipt of the letter. The Company is currently appealing the ruling from the OWCP and has received an extension to self-insure during the appeal process. On January 18, 2023, the OWCP proposed revisions to regulations under the Black Lung Benefits Act governing authorization of self-insurers. The revisions seek to codify the practice of basing a self-insured operator’s security requirement on an actuarial assessment of its total present and future black lung liability. A material change to the regulations is the requirement that all self-insured operators must post security equal to The proposed regulations were posted to the Federal Register on January 19, 2023 with written comments to be accepted within 60 days of this date. A subsequent extended comment period expired on April 19, 2023; however, the final regulations have not yet been published. If the above regulation is codified into law, the Company will be required to post additional collateral to maintain its self-insured status. The Company is evaluating alternatives to self-insurance, including the purchase of commercial insurance to cover these claims. Additionally, the Company is assessing additional sources of liquidity, and other items to satisfy the proposed regulations. In addition, the Company is liable for workers’ compensation benefits for traumatic injuries which are calculated using actuarially-based loss rates, loss development factors and discounted based on a risk free rate. Traumatic workers’ compensation claims are insured with varying retentions/deductibles, or through state-sponsored workers’ compensation programs. Workers’ compensation expense consists of the following components: Three Months Ended March 31, 2024 2023 (In thousands) Self-insured occupational disease benefits: Service cost $ 1,278 $ 993 Interest cost (1) 1,565 1,511 Net amortization (1) (3) (241) Total occupational disease $ 2,840 $ 2,263 Traumatic injury claims and assessments 2,484 1,690 Total workers’ compensation expense $ 5,324 $ 3,953 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Condensed Consolidated Income Statements on the line item “Non-service related pension and postretirement benefit (credits) costs.” |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
Employee Benefit Plans | |
Employee Benefit Plans | 12. Employee Benefit Plans The following table details the components of pension benefit credit: Three Months Ended March 31, 2024 2023 (In thousands) Interest cost (1) $ 11 $ 1,534 Expected return on plan assets (1) — (1,518) Amortization of prior service credits (1) — (37) Amortization of other actuarial (gains) (1) (22) (195) Net benefit credit $ (11) $ (216) The following table details the components of other postretirement benefit credit: Three Months Ended March 31, 2024 2023 (In thousands) Service cost $ 49 $ 58 Interest cost (1) 605 674 Amortization of other actuarial gains (1) (1,981) (2,422) Net benefit credit $ (1,327) $ (1,690) (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Condensed Consolidated Income Statements on the line item “Non-service related pension and postretirement benefit credits (costs).” In February 2022, the Board of Directors approved the termination of the Company’s Cash Balance Pension Plan. The Company has executed plan amendments regarding the termination and filed an Application for Determination for Terminating Pension Plan with the Internal Revenue Service (“IRS”), which was approved by the IRS during the first quarter of 2023. The Company also prepared and filed appropriate notices and documents related to the Pension Plan's termination and wind-down with the Pension Benefit Guaranty Corporation (“PBGC”). The Company no longer administers or pays the retirement benefits of the Cash Balance Pension Plan. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | 13. Commitments and Contingencies The Company accrues for costs related to contingencies when a loss is probable and the amount is reasonably determinable. Disclosure of contingencies is included in the financial statements when it is at least reasonably possible that a material loss or an additional material loss in excess of amounts already accrued may be incurred. The Company is a party to numerous claims and lawsuits with respect to various matters. The ultimate resolution of any such legal matter could result in outcomes that may be materially different from amounts the Company has accrued for such matters. The Company believes it has recorded adequate reserves for these matters. In the normal course of business, the Company is a party to certain financial instruments with off-balance sheet risk, such as bank letters of credit, performance or surety bonds, and other guarantees and indemnities related to the obligations of affiliated entities which are not reflected in the Company’s Condensed Consolidated Balance Sheets. However, the underlying liabilities that they secure, such as asset retirement obligations, workers’ compensation liabilities, and other obligations, are reflected in the Company’s Condensed Consolidated Balance Sheets. As of March 31, 2024, the Company had outstanding surety bonds with a face amount of $500.1 million to secure various obligations and commitments and $78.1 million of letters of credit under its Securitization and Inventory Facilities used to collateralize certain obligations. The Company posted million in cash collateral related to various obligations; this amount is recorded within “Other noncurrent assets” on the Condensed Consolidated Balance Sheets. As of March 31, 2024, the Company’s reclamation-related obligations of $266.3 million were supported by surety bonds of $403.2 million. The Company has posted million in cash collateral related to reclamation surety bonds. Additionally, in the first quarter of 2024, the Company contributed an additional million as of March 31, 2024. This amount is recorded as “Fund for asset retirement obligations” on the Condensed Consolidated Balance Sheets. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Information | |
Segment Information | 14. The Company’s reportable business segments are based on two distinct lines of business, metallurgical and thermal, and may include a number of mine complexes. The Company manages its coal sales by market and coal quality, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Company’s marketing and operations management. Mining operations are evaluated based on Adjusted EBITDA, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses, divided by segment tons sold), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing the Company’s financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income, income from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate the Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Metallurgical (MET) segment, containing the Company’s metallurgical operations in West Virginia, and the Thermal segment containing the Company’s thermal operations in Wyoming and Colorado. Reporting segment results for the three months ended March 31, 2024 and 2023 are presented below. The Corporate, Other, and Eliminations grouping includes these charges: idle operations; equity investments; change in fair value of coal derivatives, net; corporate overhead; land management activities; certain miscellaneous revenue; and the elimination of intercompany transactions. Corporate, Other and (In thousands) MET Thermal Eliminations Consolidated Three Months Ended March 31, 2024 Revenues $ 417,065 $ 263,125 $ — $ 680,190 Adjusted EBITDA 129,536 930 (27,603) 102,863 Depreciation, depletion and amortization 31,390 7,168 262 38,820 Accretion on asset retirement obligation 647 4,810 412 5,869 Capital expenditures 37,033 7,544 869 45,446 Three Months Ended March 31, 2023 Revenues $ 536,172 $ 333,759 $ — $ 869,931 Adjusted EBITDA 263,057 46,255 (31,971) 277,341 Depreciation, depletion and amortization 27,853 7,408 218 35,479 Accretion on asset retirement obligation 615 4,314 363 5,292 Capital expenditures 24,761 5,493 287 30,541 A reconciliation of net income to Adjusted EBITDA and segment Adjusted EBITDA from coal operations follows: Three Months Ended March 31, (In thousands) 2024 2023 Net income $ 55,953 $ 198,108 Provision for income taxes 3,719 37,138 Interest expense, net (1,784) 790 Depreciation, depletion and amortization 38,820 35,479 Accretion on asset retirement obligations 5,869 5,292 Non-service related pension and postretirement benefit costs (credits) 286 (592) Net loss resulting from early retirement of debt — 1,126 Adjusted EBITDA $ 102,863 $ 277,341 EBITDA from idled or otherwise disposed operations 3,697 4,032 Selling, general and administrative expenses 25,587 26,022 Other (1,681) 1,917 Segment Adjusted EBITDA from coal operations $ 130,466 $ 309,312 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition | |
Revenue Recognition | 15. ASC 606-10-50-5 requires that entities disclose disaggregated revenue information in categories (such as type of goods or services, geography, market, type of contract, etc.) that depict how the nature, amount, timing, and uncertainty of revenue and cash flow are affected by economic factors. ASC 606-10-55-89 explains that the extent to which an entity’s revenue is disaggregated depends on the facts and circumstances that pertain to the entity’s contracts with customers and that some entities may need to use more than one type of category to meet the objective for disaggregating revenue. In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of its coal and customer relationships and provides meaningful disaggregation of each segment’s results. The Company has further disaggregated revenue between North America and Seaborne revenues which depicts the pricing and contract differences between the two. North America revenue is characterized by contracts with a term of one year or longer and typically the pricing is fixed; whereas Seaborne revenue generally is derived from spot or short term contracts with an index-based pricing mechanism. Corporate, Other and MET Thermal Eliminations Consolidated (in thousands) Three Months Ended March 31, 2024 North America revenues $ 35,584 $ 205,663 $ — $ 241,247 Seaborne revenues 381,481 57,462 — 438,943 Total revenues $ 417,065 $ 263,125 $ — $ 680,190 Three Months Ended March 31, 2023 North America revenues $ 71,407 $ 287,259 $ — $ 358,666 Seaborne revenues 464,765 46,500 — 511,265 Total revenues $ 536,172 $ 333,759 $ — $ 869,931 As of March 31, 2024, the Company has outstanding performance obligations for the remainder of 2024 of 40.9 million tons of fixed price contracts and 5.2 million tons of variable price contracts. Additionally, the Company has outstanding performance obligations beyond 2024 of approximately 66.5 million tons of fixed price contracts and 1.7 million tons of variable price contracts. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Leases | 16. The Company has operating and financing leases for mining equipment, office equipment, office space and transloading terminals with remaining lease terms ranging from less than one year to approximately three years. Some of these leases include both lease and non-lease components which are accounted for as a single lease component as the Company has elected the practical expedient to combine these components for all leases. As most of the leases do not provide an implicit rate, the Company calculated the “right-of-use” (“ROU”) assets and lease liabilities using its secured incremental borrowing rate at the lease commencement date. As of March 31, 2024 and December 31, 2023, the Company had the following ROU assets and lease liabilities within its Condensed Consolidated Balance Sheets: March 31, December 31, 2024 2023 Assets Balance Sheet Classification Operating lease right-of-use assets Other noncurrent assets $ 8,960 $ 9,626 Financing lease right-of-use assets Other noncurrent assets 1,297 1,621 Total Lease Assets $ 10,257 $ 11,247 Liabilities Balance Sheet Classification Financing lease liabilities - current Accrued expenses and other current liabilities $ 2,866 $ 1,041 Operating lease liabilities - current Accrued expenses and other current liabilities 2,807 2,789 Financing lease liabilities - long-term Other noncurrent liabilities - 2,079 Operating lease liabilities - long-term Other noncurrent liabilities 6,604 7,351 $ 12,277 $ 13,260 Weighted average remaining lease term in years Operating leases 3.07 3.32 Finance leases 1.00 1.25 Weighted average discount rate Operating leases 5.5% 5.5% Finance leases 6.4% 6.4% Information related to leases was as follows: Three Months Ended March 31, 2024 2023 Operating lease information: Operating lease cost $ 803 $ 831 Operating cash flows from operating leases 866 876 Financing lease information: Financing lease cost $ 393 $ 393 Operating cash flows from financing leases 303 303 Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows: Operating Finance Year Leases Leases (In thousands) 2024 $ 2,415 $ 908 2025 3,266 2,111 2026 3,080 — 2027 1,533 — 2028 — — Thereafter — — Total minimum lease payments $ 10,294 $ 3,019 Less imputed interest (883) (153) Total lease liabilities $ 9,411 $ 2,866 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Event. | |
Subsequent Event | 17. Subsequent Event On April 25, 2024, the Company announced the board approval of a quarterly dividend of $1.11 per share for stockholders of record on May 31, 2024, with a payment date of June 14, 2024. The dividend consists of a fixed component of |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements include the accounts of Arch Resources, Inc. (“Arch Resources”) and its subsidiaries and controlled entities (“Arch” or the “Company”). Unless the context indicates otherwise, the terms “Arch” and the “Company” are used interchangeably in this Quarterly Report on Form 10-Q. The Company’s primary business is the production of metallurgical and thermal coal from underground and surface mines located throughout the United States, for sale to steel producers, utility companies, and industrial accounts both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Wyoming and Colorado. All subsidiaries are wholly owned. Intercompany transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and U.S. Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three months ended March 31, 2024 are not necessarily indicative of results to be expected for the year ending December 31, 2024. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission. Certain amounts have been reclassified to conform to the current period's presentation. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance There is no recently issued accounting guidance effective that is expected to have a material impact on the Company’s financial position, results of operations, or liquidity. Recent Accounting Guidance Issued Not Yet Effective In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Company’s annual periods beginning June 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the ASU to determine its impact on the Company’s disclosures. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss). | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Pension, Postretirement Accumulated and Other Post- Other Employment Available-for- Comprehensive Benefits Sale Securities Income (loss) Balances at December 31, 2023 $ 38,783 $ (1) $ 38,782 Unrealized gains — 5 5 Amounts reclassified from accumulated other comprehensive income (2,006) (9) (2,015) Tax effect 427 1 428 Balances at March 31, 2024 $ 37,204 $ (4) $ 37,200 |
Schedule of Comprehensive Income Reclassifications | Three Months Ended March 31, Line Item in the Condensed Consolidated Details About AOCI Components 2024 2023 Income Statements (In thousands) Pension, postretirement and other post-employment benefits Amortization of actuarial gains, net 1 $ 2,006 $ 2,858 Non-service related pension and postretirement benefit credits Amortization of prior service credits — 37 Non-service related pension and postretirement benefit credits (427) (636) Provision for income taxes $ 1,579 $ 2,259 Net of tax Available-for-sale securities 2 $ 9 $ (22) Interest and investment income (1) 5 Provision for income taxes $ 8 $ (17) Net of tax 1 2 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventories | |
Inventories | March 31, December 31, 2024 2023 (In thousands) Coal $ 95,492 $ 99,174 Repair parts and supplies 148,198 145,087 $ 243,690 $ 244,261 |
Investments in Available-for-_2
Investments in Available-for-Sale Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments in Available-for-Sale Securities | |
Available-for-sale Securities | March 31, 2024 Gross Allowance Unrealized for - Credit Fair Cost Basis Gains Losses Losses Value (In thousands) Available-for-sale: U.S. government and agency securities $ 31,291 $ 12 $ (7) $ — $ 31,296 Corporate notes and bonds 2,956 4 (4) — 2,956 Total Investments $ 34,247 $ 16 $ (11) $ — $ 34,252 December 31, 2023 Gross Allowance Unrealized for - Credit Fair Cost Basis Gains Losses Losses Value (In thousands) Available-for-sale: U.S. government and agency securities $ 28,764 $ 14 $ (5) $ — $ 28,773 Corporate notes and bonds 3,951 1 (1) — 3,951 Total Investments $ 32,715 $ 15 $ (6) $ — $ 32,724 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Expenses and Other Current Liabilities. | |
Schedule of Accrued Expenses and Other Current Liabilities | March 31, December 31, 2024 2023 (In thousands) Payroll and employee benefits $ 30,832 $ 37,259 Taxes other than income taxes 44,063 51,155 Interest 1,372 2,395 Workers’ compensation 17,775 18,724 Asset retirement obligations 6,091 6,089 Other 13,227 11,995 $ 113,360 $ 127,617 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt and Financing Arrangements | |
Schedule of Long-term debt | March 31, December 31, 2024 2023 (In thousands) Term loan due 2025 ($20.0 million face value) $ 20,000 $ — Term loan due 2024 — 3,502 Tax Exempt Bonds ($98.1 million face value) 98,075 98,075 Other 27,733 40,529 Debt issuance costs (2,508) (1,511) 143,300 140,595 Less: current maturities of debt 35,341 35,343 Long-term debt $ 107,959 $ 105,252 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Summary of Financial Assets and Liabilities Accounted for at Fair Value | March 31, 2024 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investments in marketable securities $ 34,252 $ 31,296 $ 2,956 $ — Fund for asset retirement obligations 144,146 144,146 — — Total assets $ 178,398 $ 175,442 $ 2,956 $ — |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings per Common Share | |
Schedule of Weighted Average Number of Shares | Three Months Ended March 31, 2024 2023 (In Thousands) Net income attributable to common shares $ 55,953 $ 198,108 Adjustment of interest expense attributable to Convertible Notes — 108 Diluted net income attributable to common stockholders 55,953 198,216 Basic weighted average shares outstanding 18,347 17,924 Effect of dilutive securities 428 1,524 Convertible Notes (a) — 336 Diluted weighted average shares outstanding 18,775 19,784 (a) Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted at the beginning of the year ended December 31, 2023. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. The Capped Call Transaction is anti-dilutive and is excluded from the calculation of diluted earnings per share. |
Workers Compensation Expense (T
Workers Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Workers Compensation Expense | |
Workers' compensation expense | Workers’ compensation expense consists of the following components: Three Months Ended March 31, 2024 2023 (In thousands) Self-insured occupational disease benefits: Service cost $ 1,278 $ 993 Interest cost (1) 1,565 1,511 Net amortization (1) (3) (241) Total occupational disease $ 2,840 $ 2,263 Traumatic injury claims and assessments 2,484 1,690 Total workers’ compensation expense $ 5,324 $ 3,953 (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Condensed Consolidated Income Statements on the line item “Non-service related pension and postretirement benefit (credits) costs.” |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Employee Benefit Plans | |
Schedule of Pension Benefit Costs (Credits) | The following table details the components of pension benefit credit: Three Months Ended March 31, 2024 2023 (In thousands) Interest cost (1) $ 11 $ 1,534 Expected return on plan assets (1) — (1,518) Amortization of prior service credits (1) — (37) Amortization of other actuarial (gains) (1) (22) (195) Net benefit credit $ (11) $ (216) The following table details the components of other postretirement benefit credit: Three Months Ended March 31, 2024 2023 (In thousands) Service cost $ 49 $ 58 Interest cost (1) 605 674 Amortization of other actuarial gains (1) (1,981) (2,422) Net benefit credit $ (1,327) $ (1,690) (1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Condensed Consolidated Income Statements on the line item “Non-service related pension and postretirement benefit credits (costs).” |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Information | |
Schedule of Operating Segment Results | Corporate, Other and (In thousands) MET Thermal Eliminations Consolidated Three Months Ended March 31, 2024 Revenues $ 417,065 $ 263,125 $ — $ 680,190 Adjusted EBITDA 129,536 930 (27,603) 102,863 Depreciation, depletion and amortization 31,390 7,168 262 38,820 Accretion on asset retirement obligation 647 4,810 412 5,869 Capital expenditures 37,033 7,544 869 45,446 Three Months Ended March 31, 2023 Revenues $ 536,172 $ 333,759 $ — $ 869,931 Adjusted EBITDA 263,057 46,255 (31,971) 277,341 Depreciation, depletion and amortization 27,853 7,408 218 35,479 Accretion on asset retirement obligation 615 4,314 363 5,292 Capital expenditures 24,761 5,493 287 30,541 |
Schedule of Reconciliation of Net Income to Adjusted EBITDA | Three Months Ended March 31, (In thousands) 2024 2023 Net income $ 55,953 $ 198,108 Provision for income taxes 3,719 37,138 Interest expense, net (1,784) 790 Depreciation, depletion and amortization 38,820 35,479 Accretion on asset retirement obligations 5,869 5,292 Non-service related pension and postretirement benefit costs (credits) 286 (592) Net loss resulting from early retirement of debt — 1,126 Adjusted EBITDA $ 102,863 $ 277,341 EBITDA from idled or otherwise disposed operations 3,697 4,032 Selling, general and administrative expenses 25,587 26,022 Other (1,681) 1,917 Segment Adjusted EBITDA from coal operations $ 130,466 $ 309,312 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition | |
Schedule of effects of revenue recognition | Corporate, Other and MET Thermal Eliminations Consolidated (in thousands) Three Months Ended March 31, 2024 North America revenues $ 35,584 $ 205,663 $ — $ 241,247 Seaborne revenues 381,481 57,462 — 438,943 Total revenues $ 417,065 $ 263,125 $ — $ 680,190 Three Months Ended March 31, 2023 North America revenues $ 71,407 $ 287,259 $ — $ 358,666 Seaborne revenues 464,765 46,500 — 511,265 Total revenues $ 536,172 $ 333,759 $ — $ 869,931 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Schedule of right-of-use assets and lease liabilities | March 31, December 31, 2024 2023 Assets Balance Sheet Classification Operating lease right-of-use assets Other noncurrent assets $ 8,960 $ 9,626 Financing lease right-of-use assets Other noncurrent assets 1,297 1,621 Total Lease Assets $ 10,257 $ 11,247 Liabilities Balance Sheet Classification Financing lease liabilities - current Accrued expenses and other current liabilities $ 2,866 $ 1,041 Operating lease liabilities - current Accrued expenses and other current liabilities 2,807 2,789 Financing lease liabilities - long-term Other noncurrent liabilities - 2,079 Operating lease liabilities - long-term Other noncurrent liabilities 6,604 7,351 $ 12,277 $ 13,260 Weighted average remaining lease term in years Operating leases 3.07 3.32 Finance leases 1.00 1.25 Weighted average discount rate Operating leases 5.5% 5.5% Finance leases 6.4% 6.4% |
Schedule of Information Related to Leases | Three Months Ended March 31, 2024 2023 Operating lease information: Operating lease cost $ 803 $ 831 Operating cash flows from operating leases 866 876 Financing lease information: Financing lease cost $ 393 $ 393 Operating cash flows from financing leases 303 303 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows: Operating Finance Year Leases Leases (In thousands) 2024 $ 2,415 $ 908 2025 3,266 2,111 2026 3,080 — 2027 1,533 — 2028 — — Thereafter — — Total minimum lease payments $ 10,294 $ 3,019 Less imputed interest (883) (153) Total lease liabilities $ 9,411 $ 2,866 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance | $ 1,479,456 | $ 1,365,580 |
Tax effect | 3,719 | 37,138 |
Ending Balance | 1,467,448 | 1,463,994 |
Accumulated Other Comprehensive Income (loss) | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance | 38,782 | 61,429 |
Unrealized gains | 5 | |
Amounts reclassified from accumulated other comprehensive income | (2,015) | |
Tax effect | 428 | |
Ending Balance | 37,200 | $ 59,158 |
Pension, Postretirement and Other Post-Employment Benefits | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance | 38,783 | |
Amounts reclassified from accumulated other comprehensive income | (2,006) | |
Tax effect | 427 | |
Ending Balance | 37,204 | |
Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning Balance | (1) | |
Unrealized gains | 5 | |
Amounts reclassified from accumulated other comprehensive income | (9) | |
Tax effect | 1 | |
Ending Balance | $ (4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) | ||
Interest expense | $ (4,316) | $ (4,126) |
Net loss resulting from early retirement of debt | 1,126 | |
Interest and investment income | 6,100 | 3,336 |
Total before tax | 59,672 | 235,246 |
Provision for income taxes | 3,719 | 37,138 |
Net Income (Loss) | 55,953 | 198,108 |
Pension, postretirement and other post-employment benefits | ||
Accumulated Other Comprehensive Income (Loss) | ||
Provision for income taxes | 427 | |
Available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Provision for income taxes | 1 | |
Reclassification out of Accumulated Other Comprehensive Income | Pension, postretirement and other post-employment benefits | ||
Accumulated Other Comprehensive Income (Loss) | ||
Amortization of actuarial gains, net 1 | 2,006 | 2,858 |
Amortization of prior service credits | 37 | |
Provision for income taxes | 427 | 636 |
Net Income (Loss) | 1,579 | 2,259 |
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Interest and investment income | 9 | (22) |
Provision for income taxes | 1 | (5) |
Net Income (Loss) | $ 8 | $ (17) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventories | ||
Coal | $ 95,492 | $ 99,174 |
Repair parts and supplies | 148,198 | 145,087 |
Inventories | 243,690 | 244,261 |
Allowance for slow-moving and obsolete inventories | $ 1,600 | $ 1,600 |
Investments in Available-for-_3
Investments in Available-for-Sale Securities - Schedule of investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | $ 34,247 | $ 32,715 |
Available-for-sale, Gross Unrealized Gains | 16 | 15 |
Available-for-sale, Gross Unrealized Losses | (11) | (6) |
Available-for-sale, Fair Value | 34,252 | 32,724 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | 31,291 | 28,764 |
Available-for-sale, Gross Unrealized Gains | 12 | 14 |
Available-for-sale, Gross Unrealized Losses | (7) | (5) |
Available-for-sale, Fair Value | 31,296 | 28,773 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, Cost Basis | 2,956 | 3,951 |
Available-for-sale, Gross Unrealized Gains | 4 | 1 |
Available-for-sale, Gross Unrealized Losses | (4) | (1) |
Available-for-sale, Fair Value | $ 2,956 | $ 3,951 |
Investments in Available-for-_4
Investments in Available-for-Sale securities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments in Available-for-Sale Securities | ||
Unrealized losses owned for less than 12 months | $ 5.6 | $ 2.2 |
Unrealized losses owed for over a year | $ 0 | $ 2.3 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accrued Expenses and Other Current Liabilities. | ||
Payroll and employee benefits | $ 30,832 | $ 37,259 |
Taxes other than income taxes | 44,063 | 51,155 |
Interest | 1,372 | 2,395 |
Workers' compensation | 17,775 | 18,724 |
Asset retirement obligations | 6,091 | 6,089 |
Other | 13,227 | 11,995 |
Accrued expenses and other current liabilities | $ 113,360 | $ 127,617 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Long term debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (2,508) | $ (1,511) |
Total | 143,300 | 140,595 |
Less: current maturities of debt | 35,341 | 35,343 |
Long-term debt | 107,959 | 105,252 |
Term loan due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 20,000 | |
Debt instrument, face amount | 20,000 | |
Term loan due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 3,502 | |
Tax Exempt Bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt | 98,075 | 98,075 |
Debt instrument, face amount | 98,100 | |
Other Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 27,733 | $ 40,529 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements (Details) $ in Thousands | 3 Months Ended | ||||||||||
Feb. 16, 2024 shares | Feb. 08, 2024 USD ($) | Aug. 03, 2022 USD ($) | Jul. 29, 2021 USD ($) M | Nov. 03, 2020 USD ($) | Jul. 02, 2020 USD ($) | Mar. 31, 2024 USD ($) shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Aug. 02, 2022 USD ($) | Mar. 04, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Payments on term loan | $ 3,502 | $ 750 | |||||||||
Receipt of shares from the exercise of capped call | shares | 315,721 | 315,721 | |||||||||
Proceeds from issuance of debt | $ 20,000 | ||||||||||
Restricted cash | 1,100 | $ 1,100 | $ 1,100 | ||||||||
Debt financing costs | $ 1,500 | 1,500 | |||||||||
Outstanding debt | 143,300 | $ 140,595 | |||||||||
New Term Loan Debt Facility | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loan, face value | 20,000 | ||||||||||
Amortization payments | $ 3,300 | ||||||||||
Term loan due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loan, face value | 20,000 | ||||||||||
Total net leverage | 2 | ||||||||||
Term of financial maintenance covenants, maximum total net leverage ratio | 12 months | ||||||||||
Maximum consolidated EBITDA to consolidated interest expense ratio | 3.50 | ||||||||||
Term of financial maintenance covenants on consolidated EBITDA | 12 months | ||||||||||
Customary mandatory prepayment events | 100% | ||||||||||
Term loan due 2025 | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Financial maintenance covenant for liquidity | $ 100,000 | ||||||||||
Term loan due 2025 | SOFR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Applicable margin on interest rate | 3% | ||||||||||
Adjustment to basis spread on variable rate | 10% | ||||||||||
Floor, basis spread on variable rate | 0% | ||||||||||
Term loan due 2025 | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Applicable margin on interest rate | 2% | ||||||||||
Term loan due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Payments on term loan | $ 3,500 | ||||||||||
Accounts Receivable Securitization Facility | Line of Credit | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | 98,100 | ||||||||||
Letters of credit outstanding | 51,900 | ||||||||||
Accounts Receivable Securitization Facility | Regions Bank | Line of Credit | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | $ 150,000 | $ 110,000 | |||||||||
Inventory-Based Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Covenant amount | 23,800 | ||||||||||
Inventory-Based Revolving Credit Facility | Regions Bank | Line of Credit | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loan, face value | $ 50,000 | ||||||||||
Letters of credit outstanding | 26,200 | ||||||||||
Borrowing base percentage, coal inventory | 85 | ||||||||||
Borrowing base percentage, parts and supplies inventory | 85 | ||||||||||
Borrowing base, percentage of clause | 35 | ||||||||||
Percent of eligible cash | 100% | ||||||||||
Covenant amount | $ 100,000 | ||||||||||
Equipment financing arrangement | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loan, face value | $ 23,500 | ||||||||||
Number of monthly payments | M | 42 | ||||||||||
Interest rate | 7.35% | ||||||||||
Tax Exempt Bonds | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loan, face value | 98,100 | ||||||||||
Series 2020 Tax Exempt Bonds | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loan, face value | $ 53,100 | ||||||||||
Interest rate | 5% | ||||||||||
Mandatory tender percentage | 100% | ||||||||||
Series 2021 Tax Exempt Bonds | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loan, face value | $ 45,000 | ||||||||||
Interest rate | 4.125% | ||||||||||
Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Term loan, face value | $ 155,300 | ||||||||||
Interest rate | 5.25% | ||||||||||
Net proceeds of convertible debt | $ 132,700 | ||||||||||
Principal amount of convertible notes | 13,200 | ||||||||||
Cash on convertible notes | 58,400 | ||||||||||
Deferred Offering Costs | 5,100 | ||||||||||
Loss on debt conversion | $ 1,100 | ||||||||||
Capped Call Transactions | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Capped call, transaction cost | $ 17,500 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Taxes | ||
Effective income tax rate (as a percent) | 6.20% | 15.80% |
U.S. federal statutory rate (as percent) | 21% | 21% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Investments in marketable securities | $ 34,252 | $ 32,724 |
Fund for asset retirement obligations | 144,146 | |
Total assets | 178,398 | |
Level 1 | ||
Assets: | ||
Investments in marketable securities | 31,296 | |
Fund for asset retirement obligations | 144,146 | |
Total assets | 175,442 | |
Level 2 | ||
Assets: | ||
Investments in marketable securities | 2,956 | |
Fund for asset retirement obligations | 0 | |
Total assets | 2,956 | |
Level 3 | ||
Assets: | ||
Investments in marketable securities | 0 | |
Fund for asset retirement obligations | 0 | |
Total assets | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contribution to fund asset retirement obligations | $ 1,881 | $ 1,141 | |
Fair value of debt, including amounts classified as current | 145,800 | $ 142,100 | |
Asset retirement obligations | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contribution to fund asset retirement obligations | $ 1,900 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings per Common Share | ||
Net income attributable to common shares | $ 55,953 | $ 198,108 |
Adjustment of interest expense attributable to Convertible Notes | 108 | |
Diluted net income attributable to common shareholders | $ 55,953 | $ 198,216 |
Weighted average shares outstanding: | ||
Basic weighted average shares outstanding (in shares) | 18,347 | 17,924 |
Effect of dilutive securities (in shares) | 428 | 1,524 |
Convertible Notes (in shares) | 336 | |
Diluted weighted average shares outstanding (in shares) | 18,775 | 19,784 |
Workers Compensation Expense (D
Workers Compensation Expense (Details) - USD ($) $ in Millions | 1 Months Ended | |
Jan. 18, 2023 | Feb. 29, 2020 | |
Workers Compensation Expense | ||
Self-insured operators must post security percent | 120% | |
Additional collateral amount | $ 71.1 | |
Number of days required to submit additional collateral to retain self-insurance status | 30 days |
Workers Compensation Expense -
Workers Compensation Expense - Worker's compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Total workers' compensation expense | ||
Accrued Workers' Compensation [Line Items] | ||
Total workers' compensation expense | $ 5,324 | $ 3,953 |
Occupational disease | ||
Accrued Workers' Compensation [Line Items] | ||
Service cost | 1,278 | 993 |
Interest cost | 1,565 | 1,511 |
Amortization of other actuarial (gains) | (3) | (241) |
Net benefit credit | 2,840 | 2,263 |
Traumatic injury claims and assessments | ||
Accrued Workers' Compensation [Line Items] | ||
Traumatic injury claims and assessments | $ 2,484 | $ 1,690 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of net benefit credit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 11 | $ 1,534 |
Expected return on plan assets | 0 | (1,518) |
Amortization of prior service credits | 0 | $ (37) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension and Other Postretirement Benefits Cost (Reversal of Cost) | |
Amortization of other actuarial (gains) | (22) | $ (195) |
Net benefit credit | (11) | (216) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 49 | 58 |
Interest cost | 605 | 674 |
Amortization of other actuarial (gains) | $ (1,981) | $ (2,422) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension and Other Postretirement Benefits Cost (Reversal of Cost) | Pension and Other Postretirement Benefits Cost (Reversal of Cost) |
Net benefit credit | $ (1,327) | $ (1,690) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | |||
Surety Bonds Outstanding | $ 500,100 | ||
Cash collateral for surety bond | 5,600 | ||
Contribution to fund asset retirement obligations | 1,881 | $ 1,141 | |
Fund for asset retirement obligations | 144,146 | $ 142,266 | |
Securitization and Inventory Facilities | |||
Loss Contingencies [Line Items] | |||
Letters of credit outstanding | 78,100 | ||
Asset retirement obligations | |||
Loss Contingencies [Line Items] | |||
Surety Bonds Outstanding | 403,200 | ||
Cash collateral for surety bond | 600 | ||
Reclamation-related obligations | 266,300 | ||
Contribution to fund asset retirement obligations | 1,900 | ||
Fund for asset retirement obligations | $ 144,100 |
Segment Information - Schedule
Segment Information - Schedule of operating segment results (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of distinct lines of business | item | 2 | |
Revenues | $ 680,190 | $ 869,931 |
Adjusted EBITDA | 102,863 | 277,341 |
Depreciation, depletion and amortization | 38,820 | 35,479 |
Accretion on asset retirement obligation | 5,869 | 5,292 |
Capital expenditures | 45,446 | 30,541 |
Operating Segments | MET | ||
Segment Reporting Information [Line Items] | ||
Revenues | 417,065 | 536,172 |
Adjusted EBITDA | 129,536 | 263,057 |
Depreciation, depletion and amortization | 31,390 | 27,853 |
Accretion on asset retirement obligation | 647 | 615 |
Capital expenditures | 37,033 | 24,761 |
Operating Segments | Thermal | ||
Segment Reporting Information [Line Items] | ||
Revenues | 263,125 | 333,759 |
Adjusted EBITDA | 930 | 46,255 |
Depreciation, depletion and amortization | 7,168 | 7,408 |
Accretion on asset retirement obligation | 4,810 | 4,314 |
Capital expenditures | 7,544 | 5,493 |
Corporate, Other and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Adjusted EBITDA | (27,603) | (31,971) |
Depreciation, depletion and amortization | 262 | 218 |
Accretion on asset retirement obligation | 412 | 363 |
Capital expenditures | $ 869 | $ 287 |
Segment Information - Reconcili
Segment Information - Reconciliation segment income to net income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Information | ||
Net Income (Loss) | $ 55,953 | $ 198,108 |
Provision for income taxes | 3,719 | 37,138 |
Interest expense, net | (1,784) | 790 |
Depreciation, depletion and amortization | 38,820 | 35,479 |
Accretion on asset retirement obligation | 5,869 | 5,292 |
Non-service related pension and postretirement benefit costs (credits) | 286 | (592) |
Net loss resulting from early retirement of debt | 1,126 | |
Adjusted EBITDA | 102,863 | 277,341 |
EBITDA from idled or otherwise disposed operations | 3,697 | 4,032 |
Selling, general and administrative expenses | 25,587 | 26,022 |
Other | (1,681) | 1,917 |
Segment Adjusted EBITDA from coal operations | $ 130,466 | $ 309,312 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 680,190 | $ 869,931 |
North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 241,247 | 358,666 |
Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 438,943 | 511,265 |
Operating Segments | MET | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 417,065 | 536,172 |
Operating Segments | MET | North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 35,584 | 71,407 |
Operating Segments | MET | Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 381,481 | 464,765 |
Operating Segments | Thermal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 263,125 | 333,759 |
Operating Segments | Thermal | North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 205,663 | 287,259 |
Operating Segments | Thermal | Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 57,462 | 46,500 |
Corporate, Other and Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate, Other and Eliminations | North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate, Other and Eliminations | Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) T in Millions | Mar. 31, 2024 T |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (in tons) | 40.9 |
Remaining performance obligation, variable price contracts (in tons) | 5.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, fixed price contracts (in tons) | 66.5 |
Remaining performance obligation, variable price contracts (in tons) | 1.7 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Mar. 31, 2024 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease terms | 3 years |
Leases - Lease assets and liabi
Leases - Lease assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Operating lease right-of-use assets | $ 8,960 | $ 9,626 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Financing lease right-of-use assets | $ 1,297 | $ 1,621 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Total Lease Assets | $ 10,257 | $ 11,247 |
Liabilities | ||
Financing lease liabilities - current | $ 2,866 | $ 1,041 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating lease liabilities - current | $ 2,807 | $ 2,789 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Financing lease liabilities - long-term | $ 2,079 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | |
Operating lease liabilities - long-term | $ 6,604 | $ 7,351 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total Lease Liabilities | $ 12,277 | $ 13,260 |
Leases - Weighted average lease
Leases - Weighted average lease term and discount rate (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Leases | ||
Weighted average remaining lease term in years - Operating leases | 3 years 25 days | 3 years 3 months 25 days |
Weighted average remaining lease term in years - Finance leases | 1 year | 1 year 3 months |
Weighted average discount rate - Operating leases | 5.50% | 5.50% |
Weighted average discount rate - Finance leases | 6.40% | 6.40% |
Leases - Other information rela
Leases - Other information related to leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease information: | ||
Operating lease cost | $ 803 | $ 831 |
Operating cash flows from operating leases | 866 | 876 |
Financing lease cost | 393 | 393 |
Operating cash flows from financing leases | $ 303 | $ 303 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating Leases | |
2024 | $ 2,415 |
2025 | 3,266 |
2026 | 3,080 |
2027 | 1,533 |
Total minimum lease payments | 10,294 |
Less imputed interest | (883) |
Total operating lease liabilities | 9,411 |
Finance Leases | |
2024 | 908 |
2025 | 2,111 |
Total minimum lease payments | 3,019 |
Less imputed interest | (153) |
Total finance lease liabilities | $ 2,866 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event | Apr. 25, 2024 $ / shares |
Subsequent Event [Line Items] | |
Quarterly dividend | $ 1.11 |
Fixed dividend | 0.25 |
Variable dividend | $ 0.86 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 55,953 | $ 198,108 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the three months ended March 31, 2024, the following officers of the Company adopted “Rule 10b5-1 trading arrangements” as defined in Item 408 of Regulation S-K, as described in the table below: Type of Expiration Total Shares Name and Title Trading Agreement Date Adopted Date Duration 1 To be Sold 2 Rosemary L. Klein , Senior Vice President - Law, General Counsel and Secretary Rule 10b5-1 Trading Arrangement 3/12/2024 1/31/2025 326 days Up to 8,100 1. Each Rule 10b5-1 trading arrangement permits transactions through and including the earlier to occur of (a) the completion of all sales or (b) the expiration date listed in the table. 2. Represents the maximum number of shares that could potentially be sold pursuant to the Rule 10b5-1 trading arrangement, including sales made in connection with the vesting of future equity awards. Accordingly, in calculating this amount, we have not considered any potential reductions in shares available to be sold due to tax withholdings at the time such equity awards vest, and, for performance-based awards, we have assumed such awards will vest at maximum value. Other than as discussed above, during the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K. |
Rosemary L. Klein | |
Trading Arrangements, by Individual | |
Name | Rosemary L. Klein |
Title | Senior Vice President - Law, General Counsel and Secretary |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 3/12/2024 |
Arrangement Duration | 326 days |
Aggregate Available | 8,100 |
Expiration Date | 1/31/2025 |