Alpha Natural Resources 10-K 1 Mar 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Feb. 23, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	Alpha Natural Resources, Inc.
Entity Central Index Key	0001301063
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			1.3
Entity Common Stock, Shares Outstanding		120,798,160

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues:
Coal revenues	$2,210,629	$2,140,367	$1,558,665
Freight and handling revenues	189,874	279,853	205,086
Other revenues	95,004	48,533	42,403
Total revenues	2,495,507	2,468,753	1,806,154
Costs and expenses:
Cost of coal sales (exclusive of items shown separately below)	1,616,905	1,627,960	1,284,840
Gain on sale of coal reserves	0	(12,936)	0
Freight and handling costs	189,874	279,853	205,086
Other expenses	21,016	91,461	22,725
Depreciation, depletion and amortization	252,395	164,969	153,987
Amortization of acquired coal supply agreements, net	127,608	0	0
Selling, general and administrative expenses (exclusive of depreciation and amortization shown separately above)	170,414	71,923	58,485
Total costs and expenses	2,378,212	2,223,230	1,725,123
Income from operations	117,295	245,523	81,031
Other income (expense):
Interest expense	(82,825)	(39,812)	(40,366)
Interest income	1,769	7,351	2,266
Loss on early extinguishment of debt	(5,641)	(14,702)	0
Gain on termination of Cliffs' merger, net	0	56,315	0
Miscellaneous income (expense), net	3,186	(3,834)	(93)
Total other income (expense), net	(83,511)	5,318	(38,193)
Income from continuing operations before income taxes	33,784	250,841	42,838
Income tax (expense) benefit	33,023	(52,242)	(9,965)
Income from continuing operations	66,807	198,599	32,873
Discontinued operations
Loss from discontinued operations	(14,278)	(27,873)	(6,653)
Mine closure/asset impairment charges	0	(30,172)	0
Gain on sale of discontinued operations	0	13,622	0
Income tax benefit	5,476	11,035	1,335
Loss from discontinued operations	(8,802)	(33,388)	(5,318)
Net income	58,005	165,211	27,555
Less : Net loss from discontinued operations attributable to noncontrolling interest	0	(490)	(179)
Net income attributable to Alpha Natural Resources, Inc.	58,005	165,701	27,734
Amounts attributable to Alpha Natural Resources, Inc.
Income from continuing operations, net of tax	66,807	198,599	32,873
Loss from discontinued operations, net of tax	(8,802)	(32,898)	(5,139)
Net income attributable to Alpha Natural Resources, Inc.	$58,005	$165,701	$27,734
Basic earnings per share:
Income from continuing operations attributable to Alpha Natural Resources, Inc.	0.74	2.9	0.51
Loss from discontinued operations attributable to Alpha Natural Resources, Inc.	-0.1	-0.48	-0.08
Net income attributable to Alpha Natural Resources, Inc.	0.64	2.42	0.43
Diluted earnings per share:
Income from continuing operations attributable to Alpha Natural Resources, Inc.	0.73	2.83	0.51
Loss from discontinued operations attributable to Alpha Natural Resources, Inc.	-0.1	-0.47	-0.08
Net income attributable to Alpha Natural Resources, Inc.	0.63	2.36	0.43

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$465,869	$676,190
Trade accounts receivable, net	232,631	163,674
Inventories, net	176,372	86,594
Prepaid expenses and other current assets	176,953	65,325
Total current assets	1,051,825	991,783
Property, equipment and mine development costs, net	1,082,446	356,758
Owned and leased mineral rights, net	1,985,855	180,458
Owned lands	91,262	12,882
Goodwill	357,868	20,547
Acquired coal supply agreements, net	396,491	0
Deferred income taxes	0	83,689
Other non-current assets	157,024	63,721
Total assets	5,122,771	1,709,838
Current liabilities:
Current portion of long-term debt	33,500	232
Note payable	0	18,288
Trade accounts payable	143,400	102,975
Accrued expenses and other current liabilities	258,293	140,459
Total current liabilities	435,193	261,954
Long-term debt	756,753	432,795
Pension and postretirement medical benefit obligations	682,991	60,211
Asset retirement obligations	190,724	90,565
Deferred income taxes	316,464	0
Other non-current liabilities	149,357	68,621
Total liabilities	2,531,482	914,146
Stockholders' equity:
Preferred stock - par value $0.01, 10,000,000 shares authorized, none issued	0	0
Common stock - par value $0.01, 200,000,000 shares authorized,120,782,952 issued and 120,473,495 outstanding at December 31, 2009 and 70,513,880 issued and outstanding at December 31, 2008	1,208	705
Additional paid-in capital	2,194,305	484,261
Accumulated other comprehensive income (loss)	5,812	(30,107)
Treasury stock, at cost: 309,457 and 0 shares at December 31, 2009 and December 31, 2008, respectively	(8,874)	0
Retained earnings	398,838	340,833
Total stockholders' equity	2,591,289	795,692
Total liabilities and stockholders' equity	$5,122,771	$1,709,838

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
	Dec. 31, 2009	Dec. 31, 2008
Stockholders' equity:
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value	0.01	0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	120,782,952	70,513,880
Common stock, shares outstanding	120,473,495	70,513,880
Treasury stock, at cost, shares	309,457	0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating activities:
Net income attributable to Alpha Natural Resources, Inc.	$58,005	$165,701	$27,734
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	253,736	172,570	159,579
Amortization of acquired coal supply agreements, net	127,608	0	0
Amortization of debt issuance costs	4,689	4,364	2,318
Mark-to-market adjustments for derivatives	(3,647)	47,265	(8,925)
Accretion of asset retirement obligation	12,101	7,499	6,845
Accretion of debt discount	11,516	7,681	0
Loss on early extinguishment of debt	5,641	14,702	0
Stock-based compensation	37,802	17,871	9,681
Gain on sale of discontinued operations	0	(13,622)	0
Gain on sale of coal reserves	0	(12,936)	0
Employee benefit plans, net	30,696	8,673	8,552
Mine closure/asset impairment charges	0	34,706	0
Deferred income taxes	(49,754)	(17,107)	1,032
Other, net	547	(1,601)	348
Changes in operating assets and liabilities:
Trade accounts receivable, net	14,574	19,674	(12,968)
Inventories, net	(11,609)	(16,037)	15,543
Prepaid expenses and other current assets	(40,037)	(1,438)	8,195
Other non-current assets	1,080	(2,736)	(24,303)
Trade accounts payable	(26,735)	14,324	23,548
Accrued expenses and other current liabilities	(22,384)	13,864	11,684
Pension and postretirement medical benefit obligations	(37,450)	164	(969)
Asset retirement obligations	(7,298)	(4,825)	(6,124)
Other non-current liabilities	(2,861)	(713)	3,971
Net cash provided by operating activities	356,220	458,043	225,741
Investing activities:
Capital expenditures	(187,093)	(137,751)	(126,381)
Cash acquired from Foundation	23,505	0	0
Proceeds from disposition of property and equipment	1,197	16,649	6,101
Purchase of acquired companies	0	0	(43,908)
Purchases of marketable securities	(119,419)	0	0
Proceeds from sale of discontinued operations	0	45,000	0
Proceeds from sale of investment in coal terminal	0	1,500	0
Investment in Dominion Terminal Facility	0	(2,824)	0
Other, net	0	(199)	(1,015)
Net cash used in investing activities	(281,810)	(77,625)	(165,203)
Financing activities:
Proceeds from issuance of long-term debt	0	287,500	18,900
Payments of bank overdraft	0	(160)	(23,654)
Principal repayments of note payable	(18,288)	(595)	(20,941)
Principal repayments on long-term debt	(249,875)	(193,973)	(15,580)
Debt issuance costs	(13,067)	(10,861)	0
Premium payment on early extinguishment of debt	0	(10,736)	0
Excess tax benefit from stock-based awards	434	1,980	40
Proceeds from issuance of common stock, net of offering costs of $7,834	0	164,666	0
Common stock repurchases	(8,874)	0	0
Proceeds from exercise of stock options	5,171	3,586	3,932
Other, net	(232)	0	(2,126)
Net cash (used in) provided by financing activities	(284,731)	241,407	(39,429)
Net (decrease) increase in cash and cash equivalents	(210,321)	621,825	21,109
Cash and cash equivalents at beginning of period	676,190	54,365	33,256
Cash and cash equivalents at end of period	465,869	676,190	54,365
Supplemental disclosures of cash flow information:
Issuance of common stock for acquisition accounting	1,628,601	0	0
Insurance premium financing	$0	$18,288	$18,883

Statements of Cash Flows (Paren

Statements of Cash Flows (Parenthetical) (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Financing activities:
Offering costs for issuance of common stock	$0	$7,834	$0

Consolidated Statements of Shar

Consolidated Statements of Shareholders Equity and Comprehensive Income (USD $)
In Thousands, except Share data	Total Alpha Natural Resources Inc. Equity	Common Stock	Additional Paid-in Capital	Treasury Stock at Cost	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest	Total
Beginning Balance, shares at Dec. 31, 2006		64,964
Beginning Balance at Dec. 31, 2006	$344,049	$650	$215,020	$0	$147,398	($19,019)		$344,049
Comprehensive income:
Net income (loss)	27,734				27,734		(179)	27,555
Unrealized gains (losses) related to cash flow hedges, net of income tax benefit (expense) of $2,070, $3,111 and ($552) for the year 2007, 2008 and 2009, respectively	(6,298)					(6,298)		(6,298)
Adjustments to unrecognized gains and losses and amortization of employee benefit costs, net of income tax of ($997), ($478) and ($9,092) for the year 2007, 2008 and 2009, respectively	3,027					3,027		3,027
Total comprehensive income (loss)	24,463						(179)	24,284
Contribution from noncontrolling interest							1,752	1,752
Exercise of stock options	3,972	3	3,969					3,972
Exercise of stock options, shares		268
Stock-based compensation and net issuance of common stock for share vesting	8,352	5	8,347					8,352
Stock-based compensation and net issuance of common stock for share vesting, shares		537
Ending Balance at Dec. 31, 2007	380,836	658	227,336	0	175,132	(22,290)	1,573	382,409
Ending Balance, shares at Dec. 31, 2007		65,769
Comprehensive income:
Net income (loss)	165,701				165,701		(490)	165,211
Unrealized gains (losses) related to cash flow hedges, net of income tax benefit (expense) of $2,070, $3,111 and ($552) for the year 2007, 2008 and 2009, respectively	(9,226)					(9,226)		(9,226)
Adjustments to unrecognized gains and losses and amortization of employee benefit costs, net of income tax of ($997), ($478) and ($9,092) for the year 2007, 2008 and 2009, respectively	1,409					1,409		1,409
Total comprehensive income (loss)	157,884						(490)	157,394
Initial impact of Accounting Standards Codification 470-20, net of income tax of $23,429	69,851		69,851					69,851
Contribution of noncontrolling interest in Gallatin in exchange for cash							(1,083)	(1,083)
Proceeds from public offering of common shares ($41.25 per share), net of offering costs of $7,834	164,666	42	164,624					164,666
Proceeds from public offering of common shares ($41.25 per share), net of offering costs of $7,834, shares		4,182
Exercise of stock options	3,586	2	3,584					3,586
Exercise of stock options, shares		213
Stock-based compensation and net issuance of common stock for share vesting	18,869	3	18,866					18,869
Stock-based compensation and net issuance of common stock for share vesting, shares		350
Ending Balance at Dec. 31, 2008	795,692	705	484,261	0	340,833	(30,107)		795,692
Ending Balance, shares at Dec. 31, 2008		70,514
Comprehensive income:
Net income (loss)	58,005				58,005			58,005
Unrealized gains (losses) related to cash flow hedges, net of income tax benefit (expense) of $2,070, $3,111 and ($552) for the year 2007, 2008 and 2009, respectively	4,192					4,192		4,192
Amounts reclassified to earnings related to the termination of hedge accounting, net of income tax benefit of ($6,968)	17,668					17,668		17,668
Change in fair value of available-for-sale marketable securities, net of income tax benefit of $140	(220)					(220)		(220)
Adjustments to unrecognized gains and losses and amortization of employee benefit costs, net of income tax of ($997), ($478) and ($9,092) for the year 2007, 2008 and 2009, respectively	14,279					14,279		14,279
Total comprehensive income (loss)	93,924							93,924
Equity consideration for the Foundation acquisition	1,667,339	489	1,666,850					1,667,339
Equity consideration for the Foundation acquisition, shares		48,904
Exercise of stock options	5,171	6	5,165					5,171
Exercise of stock options, shares		564
Stock-based compensation and net issuance of common stock for share vesting	29,163	8	38,029	(8,874)				29,163
Stock-based compensation and net issuance of common stock for share vesting, shares		801
Ending Balance at Dec. 31, 2009	$2,591,289	$1,208	$2,194,305	($8,874)	$398,838	$5,812		$2,591,289
Ending Balance, shares at Dec. 31, 2009		120,783

Statements of Shareholders Equi

Statements of Shareholders Equity and Comprehensive Income (Parenthetical) (USD $)
	Total Alpha Natural Resources Inc. Equity	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Total
Comprehensive income
Tax effect on unrealized gains (losses)	$2,070,000			$2,070,000	$2,070,000
Tax effect on adjustments to unrecognized gains and losses and amortization of employee benefit costs	(997,000)			(997,000)	997,000
Comprehensive income
Tax effect on unrealized gains (losses)	3,111,000			3,111,000	3,111,000
Tax effect on adjustments to unrecognized gains and losses and amortization of employee benefit costs	(478,000)			(478,000)	478,000
Tax effect on initial impact of Financial Accounting Standards Board Staff Position APB 14-1	23,429,000		23,429,000		23,429,000
Offering costs of public offering of common shares	7,834,000	7,834,000	7,834,000		7,834,000
Proceeds from public offering of common shares, per share		41.25
Comprehensive income
Tax effect on unrealized gains (losses)	(552,000)			(552,000)	552,000
Tax effect on change in fair value of available-for-sale marketable securities	140,000			140,000	140,000
Tax effect on adjustments to unrecognized gains and losses and amortization of employee benefit costs	(9,092,000)			(9,092,000)	9,092,000
Tax effect on amounts reclassified to earnings related to the termination of hedge accounting	($6,968,000)			($6,968,000)	$6,968,000

Business and Basis of Presentat

Business and Basis of Presentation
	12 Months Ended Dec. 31, 2009 USD / shares
Business and Basis of Presentation [Abstract]
Business and Basis of Presentation	(1)Business and Basis of Presentation Business Alpha Natural Resources, Inc. and its consolidated subsidiaries (the Company) are primarily engaged in the business of extracting, processing and marketing steam and metallurgical coal from surface and deep mines, and mainly sell to electric utilities, steel and coke producers, and industrial customers. The Company, through its subsidiaries, is also involved in marketing coal produced by others to supplement its own production and, through blending, provides its customers with coal qualities beyond those available from its own production. On July31, 2009, Alpha Natural Resources, Inc. (Old Alpha) and Foundation Coal Holdings, Inc. (Foundation) merged (the Merger) with Foundation continuing as the surviving legal corporation of the Merger. Subsequent to the Merger, Foundation was renamed Alpha Natural Resources, Inc. (the Company or Alpha). For financial accounting purposes, the Merger was treated as a reverse acquisition and Old Alpha was treated as the accounting acquirer. Accordingly, Old Alphas financial position as of December31, 2008 and its results of operations for the years ended December31, 2008 and 2007 do not include financial results for Foundation. For the year ended December31, 2009, Foundations financial results are included for the five month period August1, 2009 through December31, 2009 (Note 20). At December31, 2009, the Companys operations consisted of 36 deep and 25 surface mines, which are located in Virginia, West Virginia, Pennsylvania, Kentucky and Wyoming. At December31, 2009, the Company had approximately 6,400 employees, of which 21% are affiliated with union representation with the United Mine Workers of America (UMWA). The Companys union represented employees are primarily located in Virginia, West Virginia and Pennsylvania. On April7, 2008, the Company completed concurrent public offerings of 4,181,817 shares of common stock at $41.25 per share and $287,500 aggregate principal amount of 2.375% convertible senior notes due 2015 (the Convertible Notes). The aggregate net proceeds from the common stock offerings and the notes offerings were $443,262 after commissions and expenses. Basis of Presentation The consolidated financial statements include Alpha and its majority owned and controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. During 2008, Old Alpha announced the permanent closure of the Whitetail Kittanning Mine, an adjacent coal preparation plant and other ancillary facilities (Kingwood) and sold its interest in Gallatin Materials LLC (Gallatin) (See Note 24). The results of Kingwood and Gallatin have been reported as discontinued operations for all periods presented. On January1, 2009, Old Alpha adopted Accounting Standards Codification (ASC) 470-20, Debt with Conversion and other Options (ASC 470-20). ASC 470-20 has been retrospectively applied as of the issuance date of April7, 2008 for the Companys outstanding 2.375% convertible senior notes due 2015 (the Convertible Notes). ASC 470-20 requires issuers of convertible debt instruments that may be settled wholly or

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(2)Summary of Significant Accounting Policies Use of Estimates The Companys consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the Companys consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include inventories; mineral reserves; allowance for non-recoupable advanced mining royalties; asset impairments; environmental and reclamation obligations; acquisition accounting; pensions, postemployment, postretirement medical and other employee benefit obligations; useful lives for depreciation, depletion, and amortization; workers compensation and black lung claims; current and deferred income taxes; reserves for contingencies and litigation; revenue recognized using the percentage of completion method; and fair value of financial instruments. Estimates are based on facts and circumstances believed to be reasonable at the time; however, actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of cash held with reputable depository institutions and highly liquid, short-term investments with original maturities of three months or less. Cash and cash equivalents are stated at cost, which approximates fair market value. The Companys cash equivalents consist of Commercial Paper and Money Market Funds and are maintained in AAA rated funds. As of December31, 2009, all of the Companys cash and cash equivalents held with our depository institution were guaranteed through a combination of FDIC insurance and the Companys participation in a Transaction Account Guarantee Program offered by the Companys depository institution. Marketable Securities The Company classifies its marketable securities as available-for-sale. These securities are recorded initially at cost and adjusted to fair value at each reporting date. Unrealized gains and losses resulting from the fair value adjustments are classified as a separate component of stockholders equity. Realized gains and losses on available-for-sale securities are computed using the specific identification method. Marketable securities with maturities of one year or less are reported in Prepaid expenses and other current assets (See Note 5). Marketable securities with maturities of greater than one year are reported in Other non-current assets (See Note 8). Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Companys best estimate of the amount of probable credit losses in the Companys existing accounts receivable. The Company establishes provisions for losses on accounts receivable when it is probable that all or part of the outstanding balance will n

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	(3)Earnings Per Share The number of shares used to calculate basic earnings (loss)per share is based on the weighted average number of the Companys outstanding common shares during the respective periods. The number of shares used to calculate diluted earnings (loss)per share is based on the number of common shares used to calculate basic earnings (loss)per share plus the dilutive effect of stock options and other stock-based instruments held by the Companys employees and directors during each period and the Convertible Notes when these are convertible into the Companys common stock. The Convertible Notes, which were issued in April2008, become dilutive for earnings per share calculations when the average share price for the quarter exceeds the conversion price of $54.66. The shares that would be issued to settle the conversion spread are included in the diluted earnings per share calculation when the conversion option is in the money. For the year ended December31, 2009, the conversion option for the Convertible Notes was not in the money, and therefore there was no dilutive earnings per share impact. For the year ended December31, 2008, there were 734,613 shares included in the computation of year-to-date diluted earnings per share for the period when the Convertible Notes were in the money during the year. The following table provides a reconciliation of weighted-average shares outstanding used in the basic and diluted earnings per share computations for the periods presented: Years Ended December 31, 2009 2008 2007 Weighted average shares basic 90,662,718 68,453,724 64,631,507 Dilutive effect of stock equivalents 1,039,910 1,806,011 377,923 Weighted average shares- diluted 91,702,628 70,259,735 65,009,430

Inventories, net

Inventories, net
	12 Months Ended Dec. 31, 2009 USD / shares
Inventories, net [Abstract]
Inventories, net	(4)Inventories, net Inventories, net consisted of the following: December 31, 2009 2008 Raw coal $ 19,180 $ 9,018 Saleable coal 112,004 61,297 Equipment purchased for resale 1,489 2,282 Materials and supplies, net 43,699 13,997 Total inventories, net $ 176,372 $ 86,594

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Prepaid Expenses and Other Current Assets [Abstract]
Prepaid Expenses and Other Current Assets	(5)Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, 2009 2008 Marketable securities short term (1) $ 29,501 $ Prepaid insurance 33,776 22,148 Notes and other receivables 28,402 15,074 Prepaid longwall move expenses 3,186 Advanced mining royalties, net 3,522 2,538 Refundable income taxes 29,590 Derivative financial instruments 7,939 8,040 Construction costs in excess of billings 19,535 Prepaid freight 13,229 11,312 Other prepaid expenses 8,273 6,213 Total prepaid expenses and other current assets $ 176,953 $ 65,325 (1) Short-term marketable securities consisted of the following: December 31, 2009 Unrealized Cost Gain Loss Fair value Short-term marketable securities: US treasury and agency securities $ 22,338 $ $ (15 ) $ 22,323 Corporate debt securities 7,180 (2 ) 7,178 Total short-term marketable securities $ 29,518 $ $ (17 ) $ 29,501

Property, Equipment and Mine De

Property, Equipment and Mine Development Cost
	12 Months Ended Dec. 31, 2009 USD / shares
Property, Equipment and Mine Development Costs [Abstract]
Property, Equipment and Mine Development Costs	(6) Property, Equipment and Mine Development Costs Property, equipment, and mine development costs consisted of the following: December 31, 2009 2008 Plant and mining equipment $ 1,453,837 $ 681,362 Mine development 125,541 84,815 Coalbed methane equipment 6,211 Office equipment and software 30,005 15,118 Vehicles and other 14,814 13,759 Construction in progress 67,201 3,982 1,697,609 799,036 Less accumulated depreciation, depletion and amortization 615,163 442,278 Total property, equipment and mine development costs, net $ 1,082,446 $ 356,758 Depreciation and amortization expense from continuing operations associated with property, equipment and mine development costs was $182,616, $121,102 and $115,446 for the years ended December31, 2009, 2008, and 2007, respectively. Interest costs applicable to major asset additions are capitalized during the construction period. During the years ended December31, 2009, 2008, and 2007, interest costs of $492, $942, and $1,743 were capitalized, respectively. As of December31, 2009, the Company had commitments to purchase approximately $51,063 of new equipment, expected to be acquired at various dates in 2010.

Goodwill

Goodwill
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill [Abstract]
Goodwill	(7)Goodwill Balance at December31, 2008 $ 20,547 Increase in goodwill due to Merger 337,321 Balance at December31, 2009 $ 357,868

Other Non-current Assets

Other Non-current Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Other Non-current Assets [Abstract]
Other Non-current Assets	(8)Other Non-current Assets Other non-current assets consisted of the following: December 31, 2009 2008 Marketable securities long term (1) $ 89,485 $ Unamortized deferred financing costs, net 14,702 12,161 Advance mining royalties, net 13,357 14,234 Virginia tax credit, net 18,025 19,242 Equity-method investments 11,688 3,484 Derivative financial instruments 2,763 Other 7,004 14,600 Total other non-current assets $ 157,024 $ 63,721 (1) Long-term marketable securities, with maturity dates between one and two years, consisted of the following: December 31, 2009 Unrealized Cost Gain Loss Fair value Long-term marketable securities: US treasury and agency securities $ 89,828 $ $ (343 ) $ 89,485 Total long-term marketable securities $ 89,828 $ $ (343 ) $ 89,485

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Accrued Expenses and Other Current Liabilities [Abstract]
Accrued Expenses and Other Current Liabilities	(9)Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 31, 2009 2008 Wages and employee benefits $ 72,469 $ 47,093 Current portion of asset retirement obligations 14,908 8,375 Deferred income taxes current 10,237 Taxes other than income taxes 58,245 15,489 Freight 8,827 8,575 Current portion of self insured workers compensation obligations 10,893 1,575 Interest payable 11,215 3,237 Derivative financial instruments 14,961 28,123 Current portion of postretirement medical benefit obligations 27,393 1,081 Income taxes 11,749 Other 29,145 15,162 Total accrued expenses and other current liabilities $ 258,293 $ 140,459 As of December31, 2008, the company had a note payable for $18,288 that was incurred to finance various insurance premiums. Interest, accrued at the rate of 4.44%, and principal was due in monthly installments, with the final payment due in October2009. As of December31, 2009, the note was paid in full.

Long-Term Debt

Long-Term Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Long-Term Debt [Abstract]
Long-Term Debt	(10)Long-Term Debt Long-term debt consisted of the following: December 31, 2009 2008 Term loan due 2011 $ 284,750 $ Term loan due 2012 233,125 7.25% senior notes due 2014 298,285 2.375% convertible senior note due 2015 287,500 287,500 Debt discount (80,282 ) (87,830 ) Capital lease obligation 232 Total long-term debt $ 790,253 $ 433,027 Less current portion 33,500 232 Long-term debt, net of current portion $ 756,753 $ 432,795 Old Alpha Credit Agreement On July31, 2009, in conjunction with the Merger (Note 20), Old Alpha terminated its existing senior secured credit facilities, which consisted of a $250,000 term loan facility, of which $233,125 was outstanding at July31, 2009 (and due in 2012), and a $375,000 revolving credit facility. On July31, 2009, the Company repaid the outstanding balance under the term loan and recorded a loss on early extinguishment of debt to write off the remaining balance of deferred loan costs in the amount of $5,641. Alpha Credit Facility Prior to the Merger, Foundation had a credit facility (the Foundation Credit Facility) consisting of $500,000 secured revolving credit line and a $335,000 secured term loan. Repayment of outstanding indebtedness owed under the Foundation Credit Facility includes quarterly payments on the term loan, which began in the third quarter of 2007, with both the term loan and revolving credit line maturing July7, 2011. In connection with the Merger, the Foundation Credit Facility was amended to add the Company and substantially all of the subsidiaries of Old Alpha (the New Subsidiaries) as guarantors under the Foundation Credit Facility (the Alpha Credit Facility). This amendment also provides for an increase in the interest rate to 3.25percentage points over the London interbank offered rate (LIBOR) from 1.25percentage points over LIBOR, subject, in the case of revolving loans, to adjustment based on leverage ratios. Following the Merger and upon the amendment becoming effective, limitations on annual capital expenditure amounts were eliminated and the amount of the accordion feature of the Alpha Credit Facility, pursuant to which Alpha may request the lenders to provide incremental credit facilities under the Alpha Credit Facility, was increased from $100,00 to $200,000, of which $150,000 was utilized to increase the revolving credit line to $650,000. As of December31, 2009, letters of credit in the amount of $113,633 were outstanding under the revolving credit line. As of December31, 2009, the Companys term loan due 2011 under the Alpha Credit Facility had carrying value of $282,738, net of debt discount of $2,012, with $33,500 classified as current portion of long-term debt. 2.375% Convertible Senior Notes Due June2015 Old Alpha issued Convertible Notes with an aggregate principal amount of $287,500 under an indenture dated as of April7, 2008, as supplemented (the Convertible Notes Indenture). Following completion of the Merger, the Company assumed Old Al

Asset Retirement Obligations

Asset Retirement Obligations
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Retirement Obligations [Abstract]
Asset Retirement Obligations	(11)Asset Retirement Obligations As of December31, 2009 and 2008, the Company had recorded asset retirement obligation accruals for mine reclamation and closure costs (including perpetual water treatment) totaling $205,632 and $98,940, respectively. The portion of the costs expected to be incurred within a year was $14,908 and $8,375, as of December31, 2009 and 2008, respectively, is included in Accrued expenses and other current liabilities. There were no assets that were legally restricted for purposes of settling asset retirement obligations at December31, 2009 or 2008. These regulatory obligations are secured by surety bonds. Changes in the asset retirement obligations from continuing operations were as follows: Total asset retirement obligations at December31, 2007 $ 88,056 Accretion for the period 7,229 Decrease due to sale of asset (2,108 ) Sites added during the period 4,266 Revisions in estimated cash flows 1,130 Expenditures for the period (4,541 ) Total asset retirement obligations at December31, 2008 94,032 Accretion for the period 11,581 Acquisitions during the period (Including amounts related to the Merger) 99,910 Sites added during the period 2,615 Revisions in estimated cash flows (1,583 ) Expenditures for the period (6,538 ) Total asset retirement obligations at December31, 2009 $ 200,017 Less current portion (12,324 ) Long-term portion $ 187,693 Changes in the asset retirement obligations from discontinued operations were as follows: Total asset retirement obligation at December31, 2007 $ 3,143 Accretion 270 Revisions in estimated cash flows 1,779 Expenditures for the period (284 ) Total asset retirement obligation at December31, 2008 4,908 Accretion for the period 520 Sites added during the period 477 Revisions in estimated cash flows 470 Expenditures for the period (760 ) Total asset retirement obligation at December31, 2009 $ 5,615 Less current portion (2,584 ) Long-term portion $ 3,031

Other Non-current Liabilities

Other Non-current Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Other Non-current Liabilities [Abstract]
Other Non-current Liabilities	(12)Other Non-current Liabilities Other non-current liabilities consisted of the following: December 31, 2009 2008 Self insured workers compensation obligations $ 32,989 $ 7,872 Black lung obligations 30,334 1,732 Acquired coal supply agreements, net 20,202 Derivative financial instruments 28,366 44,741 Income taxes 13,960 Deferred production tax 12,294 Other 11,212 14,276 Total other non-current liabilities $ 149,357 $ 68,621

Fair Value of Financial Instrum

Fair Value of Financial Instruments and Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value of Financial Instruments and Fair Value Measurements [Abstract]
Fair Value of Financial Instruments and Fair Value Measurements	(13)Fair Value of Financial Instruments and Fair Value Measurements The estimated fair values of financial instruments are determined based on relevant market information. These estimates involve uncertainty and cannot be determined with precision. The following methods and assumptions are used to estimate the fair value of each class of financial instrument. The carrying amounts for Cash and cash equivalents, Trade accounts receivables, net, Prepaid expenses and other current assets, Trade accounts payable, Accrued expenses and other current liabilities approximate fair value due to the short maturity of these instruments. Long-term Debt: The fair value of the Convertible Notes was estimated using observable market prices as these securities are traded. The fair value of the 2014 Notes and the term loan due 2011 is estimated based on a current market rate of interest offered to the Company for debt of similar maturities. As of December31, 2008, the fair value of the term loan due 2012 was estimated using observable market prices for debt of similar characteristics and maturities. In conjunction with the Merger, the Company repaid the outstanding balance under the term loan due 2012. The carrying value of the Companys capital lease obligation approximates fair value due to the short maturity of these instruments. The estimated fair values of long-term debt were as follows: December 31, 2009 December 31, 2008 Carrying Amount Fair Value Carrying Amount Fair Value Term loan due 2011, net of discount of $2,011 $ 282,739 $ 279,055 $ $ Term loan due 2012 233,125 194,659 7.25% senior notes due 2014, net of discount of $1,295 for December31, 2009 296,990 302,014 2.375% convertible senior notes due 2015, net of discount of $76,976 and $87,830 for December31, 2009 and December31, 2008, respectively 210,524 325,953 199,670 186,013 Capital lease obligation 232 232 Total long-term debt $ 790,253 $ 907,022 $ 433,027 $ 380,904 ASC 820 requires disclosures about how fair value is determined for assets and liabilities and a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and Level 3 Unobservable inputs in which there is little or no market data which require the reporting entity to develop its own assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The following tables set forth by level, within the fair value hierarchy, the Companys financial and non-financial assets and liabilities that were a

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Financial Instruments [Abstract]
Derivative Financial Instruments	(14)Derivative Financial Instruments Forward Contracts The Company manages price risk for coal sales and purchases through the use of coal supply agreements. The Company evaluates each of its coal sales and coal purchase forward contracts to determine whether they meet the definition of a derivative and if so, whether they qualify for the normal purchase normal sale (NPNS) exception prescribed by ASC 815-10-10. The majority of the Companys forward contracts do not qualify as derivatives. The majority of contracts that do qualify as derivatives also qualify for the NPNS exception based on managements intent and ability to physically deliver or take physical delivery of the coal. Contracts that qualify as derivatives and do not qualify for the NPNS exception are accounted for at fair value and accordingly, the Company includes the unrealized gains and losses in current period earnings or losses. Swap Agreements Commodity Swaps The Company uses diesel fuel and explosives in its production process and incurs significant expenses for the purchase of these commodities. Diesel fuel and explosives expenses represented approximately 8% of cost of coal sales for the year ended December31, 2009. The Company is subject to the risk of price volatility for these commodities and as a part of its risk management strategy, the Company enters into swap agreements with financial institutions to mitigate the risk of price volatility for both diesel fuel and explosives. The terms of the swap agreements allow the Company to pay a fixed price and receive a floating price, which provides a fixed price per unit for the volume of purchases being hedged. As of December31, 2009, the Company had swap agreements outstanding to hedge the variable cash flows related to 70% and 38% of anticipated diesel fuel usage for calendar year 2010 and 2011, respectively. The average fixed price per swap for diesel fuel hedges is $2.32 per gallon and $2.43 per gallon for calendar year 2010 and 2011, respectively. As of December31, 2009, the Company had swap agreements outstanding to hedge the variable cash flows related to approximately 71% of anticipated explosives usage in the Powder River Basin for calendar year 2010. All cash flows associated with derivative instruments are classified as operating cash flows in the Consolidated Statements of Cash Flows for the years ended December31, 2009, 2008 and 2007. The Company sells coalbed methane through its Coal Gas Recovery business. Accordingly, the revenues derived from the sale of coalbed methane are subject to volatility based on the changes in natural gas prices. In order to reduce that risk, the Company enters into pay variable, receive fixed natural gas swaps for a portion of its anticipated gas production in order to fix the selling price for a portion of its production. The natural gas swaps have been designated as qualifying cash flow hedges. As of December31, 2009, the Company had swap agreements outstanding to hedge the variable cash flows related to approximately 56% of anticipated natural gas production in 2010. Interest Rate Swap The Company has variable rate debt outstanding and is subject t

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	(15)Income Taxes The total income tax expense (benefit)provided on pre-tax income was allocated as follows: Years Ended December 31, 2009 2008 2007 Continuing operations $ (33,023 ) $ 52,242 $ 9,965 Discontinued operations (5,476 ) (11,035 ) (1,335 ) $ (38,499 ) $ 41,207 $ 8,630 Significant components of income tax expense (benefit)from continuing operations were as follows: Years Ended December 31, 2009 2008 2007 Current tax expense (benefit): Federal $ 19,644 $ 49,470 $ 10,353 State (1,629 ) 13,526 (251 ) $ 18,015 $ 62,996 $ 10,102 Deferred tax expense (benefit): Federal $ (51,583 ) $ (9,678 ) $ (1,737 ) State 545 (1,076 ) 1,600 $ (51,038 ) $ (10,754 ) $ (137 ) Total income tax expense (benefit): Federal $ (31,939 ) $ 39,792 $ 8,616 State (1,084 ) 12,450 1,349 $ (33,023 ) $ 52,242 $ 9,965 A reconciliation of the statutory federal income tax expense at 35% to income from continuing operations before income taxes and the actual income tax expense (benefit)is as follows: Years Ended December 31, 2009 2008 2007 Federal statutory income tax expense $ 11,824 $ 87,795 $ 14,993 Increases (reductions)in taxes due to: Percentage depletion allowance (29,286 ) (22,508 ) (9,851 ) Extraterritorial income exclusion (1,945 ) Deduction for domestic production activities (4,233 ) State taxes, net of federal tax impact (767 ) 7,906 872 Change in valuation allowances (21,324 ) (16,966 ) 3,238 Loss disallowance 2,147 Non-deductible transaction costs 3,214 Other, net 3,316 46 713 Income tax expense (benefit) $ (33,023 ) $ 52,242 $ 9,965 Deferred income taxes result from temporary differences between the reporting of amounts for financial statement purposes and income tax purposes. The net deferred tax assets and liabilities included in the Consolidated Balance Sheets include the following amounts: December 31, 2009 2008 Deferred tax assets Property and equipment $ $ 39,966 Asset retirement obligations 79,157 38,710 Other liabilities 58,388 23,821 Postretirement medical benefit obligations 254,966 23,859 Alternative minimum tax credit carryforwards 80,676 13,507 Goodwill 11,849 13,223 Workers compensation benefit obligations 16,952 3,988 Deferred gains on sales of property investments 1,012 1,236 Defined benefit pension

Employee Benefit Plans

Employee Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefit Plans [Abstract]
Employee Benefit Plans	(16)Employee Benefit Plans The Company sponsors or participates in several benefit plans for its employees, including postemployment health care and life insurance, defined benefit and defined contribution pension plans, and workers compensation and black lung benefits. In connection with the Merger, the Company assumed all of the employee benefit plans of Foundation (the Foundation Plans) and is contractually obligated to continue to provide similar or improved benefits to those Foundation Plans for a period of eighteen months after the Merger date. (a)Company Administered Postretirement Health Care and Life Insurance Benefits Three of Old Alphas subsidiaries assumed collective bargaining agreements as part of two acquisitions that require these subsidiaries to provide postretirement medical benefits to certain employees who retire after the acquisition closing dates. In each case, however, the sellers have retained the obligation to provide postretirement medical benefits to employees who retired prior to the acquisition closing dates (December13, 2002 and March11, 2003, respectively) and to employees who were not retained by these subsidiaries. In addition, one of the sellers retained the obligation to provide postretirement medical benefits to a significant number of the employees who have worked for the Company after the acquisition closing, namely, those employees who met the eligibility criteria by December31, 2003, even if the employees will not retire until sometime in the future. These plans are unfunded and the measurement date is December31 of each year. Effective July1, 2004, Old Alpha adopted a plan offering postretirement medical benefits to active union-free employees that will provide a credit of twenty dollars per individual, or forty dollars per family, per year of service for pre-65year old retirees and nine dollars per month per year of service for post-65year old retirees toward the purchase of medical benefits (as defined) from the Company. Effective April1, 2005 and October3, 2005, the plan was amended to replace two union retiree medical plans with a defined dollar benefit similar to the union-free plan. The Company credits employees assumed in acquisitions for up to ten years of credited service for service with the acquired companies and records the applicable prior service cost at the time the acquisition is completed. In 2007, the Company amended one of the existing plans that resulted in an additional $508 of prior service costs. The components of the change in accumulated benefit obligations of the plans for postretirement medical benefits were as follows: December 31, 2009 2008 Change in benefit obligations: Accumulated benefit obligation-beginning period: $ 61,292 $ 54,784 Service cost 2,273 2,777 Interest cost 4,012 3,421 Actuarial loss 5,227 551 Benefits paid (437 ) (241 ) Curtailment (1,927 ) Accumulated benefit obligation-end of period $ 70,440 $ 61,292 Change in fair value of plan assets:

Stock-Based Compensation Awards

Stock-Based Compensation Awards
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation Awards [Abstract]
Stock-Based Compensation Awards	(17)Stock-Based Compensation Awards The Companys primary stock-based compensation plan is the Alpha Natural Resources, Inc. 2005 Long-Term Incentive Plan (the 2005 LTIP). The principal purpose of the 2005 LTIP is to attract, motivate, reward and retain selected employees, consultants and directors through the granting of stock-based compensation awards. The 2005 LTIP provides for a variety of awards, including non-qualified stock options (options), incentive stock options (within the meaning of Section422 of the Internal Revenue Code of 1986, as amended), stock appreciation rights, non-vested shares, dividend equivalents, performance-based awards and other stock-based awards. The 2005 LTIP is currently authorized for the issuance of awards for up to 8,838,841 shares of common stock. At December31, 2009, 4,476,502 shares of common stock were available for grant under the 2005 LTIP. Due to certain restrictions in the 2005 LTIP, the Company cannot grant stock-based awards to legacy employees of Foundation that became employees of the Company subsequent to the Merger on July31, 2009. On July31, 2009, subsequent to the Merger, the Company adopted the Foundation Amended and Restated 2004 Stock Incentive Plan (the 2004 SIP). The 2004 SIP permits the Company to grant its key employees, directors and consultants options, stock appreciation rights, restricted stock or other stock-based awards. The awards under the 2004 SIP may be granted at fair value with an exercise price of no less than 100% of the fair market value of the Companys common stock on the date of grant. The 2004 SIP is currently authorized for the issuance of awards for up to 6,480,675 shares of common stock, and as of December31, 2009, 1,396,816 shares of common stock were available for grant under the plan. Upon vesting of restricted stock and restricted share units (both time-based and performance-based) or the exercise of options, shares are issued from the 2005 LTIP and the 2004 SIP, respective of which plan the awards were granted from. In November2008, the Board of Directors authorized the Company to repurchase common shares from employees (upon the election by the employee) to satisfy the employees minimum statutory tax withholdings upon the vesting of restricted stock and restricted share units (both time-based and performance-based). During the year ended December31, 2009, the Company repurchased 309,457 common shares from employees at an average price paid per share of $28.68. Shares that are repurchased to satisfy the employees minimum statutory tax withholdings are recorded in Treasury stock at cost, and these shares are not added back into the pool of shares available for grant of the respective plans the shares were granted from. At December31, 2009, the Company had three types of stock-based awards outstanding: restricted stock, restricted share units (both time-based and performance-based), and options. Stock-based compensation expense from continuing operations totaled $37,802, $17,344, and $9,539 for the years ended December31, 2009, 2008, and 2007, respectively. For the years ended December31, 2009, 2008, and 2007, approximately 78%, 52%, and 61%,

Related Party Transactions

Related Party Transactions
	12 Months Ended Dec. 31, 2009 USD / shares
Related Party Transactions [Abstract]
Related Party Transactions	(18)Related Party Transactions For the years ended December31, 2009, 2008 and 2007, there were no material related party transactions.

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(19)Commitments and Contingencies (a)General Estimated losses from loss contingencies and legal expenses associated with the contingency are accrued by a charge to income when information available indicates that it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the consolidated financial statements when it is at least reasonably possible that a loss will be incurred and the loss is material. (b)Commitments and Contingencies Commitments The Company leases coal mining and other equipment under long-term operating leases with varying terms. In addition, the Company leases mineral interests and surface rights from land owners under various terms and royalty rates. As of December31, 2009, aggregate future minimum non-cancelable lease payments under operating leases and minimum royalties under coal leases were as follows: Operating Leases Coal Royalties Total Year Ending December31: 2010 $ 5,884 $ 17,394 $ 23,278 2011 3,812 16,724 20,536 2012 2,335 16,347 18,682 2013 1,144 13,386 14,530 2014 957 9,023 9,980 Thereafter 1,299 64,460 65,759 Total $ 15,431 $ 137,334 $ 152,765 For the years ended December31, 2009, 2008 and 2007, net rent expense from continuing operations amounted to $11,463, $5,065 and $7,069, respectively, and coal royalty expense from continuing operations amounted to $79,799, $83,707 and $66,455, respectively. Other Commitments As of December31, 2009, the Company had commitments to purchase 1,065 tons and 2 tons of coal at a cost of approximately $80,876 and $354 during 2010 and 2011, respectively. In connection with the Merger, the Company assumed the obligations for a federal coal lease, which contains an estimated 224.0million tons of proven and probable coal reserves in the Powder River Basin. The lease bid was $180,500, payable in five equal annual installments of $36,108. The first two installments were paid in 2009 and 2008 by Foundation. The three remaining annual installments of $36,108 each are due on May1, the anniversary date of the lease. Contingencies Extensive regulation of the impacts of mining on the environment and of maintaining workplace safety, and related litigation, has had or may have a significant effect on the Companys costs of production and results of operations. Further regulations, legislation or litigation in these areas may also cause the Companys sales or profitability to decline by increasing costs or by hindering the Companys ability to continue mining at existing operations or to permit new operations. (c)Guarantees and Financial Instruments with Off-Balance Sheet Risk In the normal course of business, the Company is a party to certain guarantees and financial instruments with off-balance sheet risk, such as bank letters of cre

Mergers and Acquisitions

Mergers and Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Mergers and Acquisitions [Abstract]
Mergers and Acquisitions	(20)Mergers and Acquisitions Merger with Foundation Coal Holdings, Inc. On May11, 2009, Old Alpha and Foundation executed an agreement and plan of merger pursuant to which Old Alpha was to be merged with and into Foundation, with Foundation continuing as the surviving corporation of the Merger. On July31, 2009, the Merger was completed and Foundation was renamed Alpha Natural Resources, Inc. The headquarters of the Company are located in Abingdon, VA. The former headquarters of Foundation located in Linthicum Heights, MD will remain open for a period of at least 18months. At the effective time of the Merger on July31, 2009 (the Effective Time), each issued and outstanding share of common stock, par value $0.01, of Foundation, other than any shares owned by Old Alpha, was converted into the right to receive 1.0840 (the Exchange Ratio) shares of common stock, par value $0.01, of Alpha, and each issued and outstanding share of common stock, par value $0.01, of Old Alpha, other than any shares owned by Foundation, automatically became one share of common stock of Alpha. Immediately after the Effective Time, Old Alphas stockholders owned approximately 59% of Alpha common stock and Foundations stockholders owned approximately 41% of Alpha common stock. All currently issued and outstanding options to purchase Foundation common stock vested and were converted into vested options to purchase Alpha common stock, with adjustments to reflect the Exchange Ratio, and all outstanding options to purchase Old Alphas common stock were converted into options to purchase Alpha common stock, without adjustment. Other outstanding equity-based awards of Foundation either vested and were converted into the right to receive 1.0840 shares of Alpha common stock, or were converted into vested and unvested awards with respect to Alpha common stock, as applicable. Other outstanding equity-based awards of Old Alpha were converted into awards with respect to Alpha common stock. No fractional shares of Alpha common stock were issued in the Merger, and Foundations stockholders received cash in lieu of fractional shares, if any, of Alpha common stock. The Merger qualified as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended. For financial accounting purposes, the Merger is treated as a reverse acquisition and Old Alpha is treated as the accounting acquirer. Accordingly, Old Alphas historical financial statements became the historical financial statements of Alpha for comparative purposes. The Company issued 48,452,298 shares of common stock to the shareholders of Foundation, after adjustment to reflect the merger ratio. Certain outstanding equity-based awards of Foundation vested and resulted in the issuance of an additional 451,300 shares of common stock. Additionally, all issued and outstanding options to purchase Foundation common stock vested and were converted into 1,118,497 vested options to purchase Company common stock, with adjustments to reflect the Exchange Ratio. Other outstanding equity-based awards of Foundation consisting of 176,089 restricted stock units vested were converted into the righ

Concentration of Credit Risk an

Concentration of Credit Risk and Major Customers
	12 Months Ended Dec. 31, 2009 USD / shares
Concentration of Credit Risk and Major Customers [Abstract]
Concentration of Credit Risk and Major Customers	(21)Concentration of Credit Risk and Major Customers The Company markets its coal principally to electric utilities in the United States and international and domestic steel producers. As of December31, 2009 and 2008, trade accounts receivable from electric utilities totaled approximately $86,270 and $59,398, respectively. Credit is extended based on an evaluation of the customers financial condition and collateral is generally not required. Credit losses are provided for in the consolidated financial statements and historically have been minimal. The Company is committed under long-term contracts to supply coal that meets certain quality requirements at specified prices. The prices for some multi-year contracts are adjusted based on economic indices or the contract may include year-to-year specified price changes. Qualities and volume for coal are stipulated in coal supply agreements, and may vary from year to year within certain limits at the option of the customer. For the years ended December 31, 2009, 2008, and 2007, the Companys 10 largest customers accounted for approximately 47%, 54% and 42% of Total revenues, respectively. Sales to the Companys largest customer accounted for approximately 12% of Total revenues for the years ended December31, 2009 and 2008 and less than 10% for the year ended December31, 2007.

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information [Abstract]
Segment Information	(22)Segment Information The Company discloses information about operating segments using the management approach, where segments are determined and reported based on the way that management organizes the enterprise for making operating decisions and assessing performance. The Company periodically evaluates its application of accounting guidance for reporting its segments. The Company extracts, processes and markets steam and metallurgical coal from surface and deep mines for sale to electric utilities, steel and coke producers, and industrial customers. The Company operates only in the United States with mines in Central Appalachia, Northern Appalachia, and the Powder River Basin. Prior to the Merger, Old Alpha had only one reportable segment, Coal Operations, which included operations in Central and Northern Appalachia. As a result of the Merger, the Company changed its organizational structure and re-evaluated its reportable segments. Based on review of the required economic characteristics, the Company aggregated its operating results into two reportable segments: Western Coal Operations, which consists of two Powder River Basin surface mines as of December31, 2009 and Eastern Coal Operations, which consists of 36 underground mines and 23 surface mines in Central and Northern Appalachia, as well as the Companys road construction business which operates in Central Appalachia and coal brokerage activities. In addition to the two reportable segments, the All Other category includes an idled underground mine in Illinois; expenses associated with closed mines; Dry Systems Technologies; revenues and royalties from the sale of coalbed methane and natural gas extraction; equipment sales and repair operations; terminal services; general corporate overhead and corporate assets and liabilities. The Company evaluates the performance of its segments based on EBITDA from continuing operations, which the Company defines as Income from continuing operations plus Interest expense, Income tax expense, Amortization of coal supply agreements, net and Depreciation, depletion and amortization, less Interest income and income tax benefit. All prior period segment information has been reclassified to conform to this new presentation. Segment operating results and capital expenditures from continuing operations for the year ended December31, 2009 and segment assets as of December31, 2009 were as follows: Eastern Western Coal Coal All Operations Operations Other Consolidated Total Revenues $ 2,249,027 $ 218,613 $ 27,867 $ 2,495,507 Amortization of acquired coal supply agreements, net $ 78,537 $ 49,071 $ $ 127,608 Depreciation, depletion, and amortization $ 219,047 $ 25,562 $ 7,786 $ 252,395 EBITDA from continuing operations $ 524,042 $ 39,278 $ (68,477 ) $ 494,843 Capital expenditures $ 157,121 $ 18,310 $ 11,662 $ 187,093 Goodwill $ 304,900 $ 47,681 $ 5,287 $ 357,868 Total assets $ 3,654,956 $ 716,454 $ 751,361

Supplemental Guarantor and Non-

Supplemental Guarantor and Non-Guarantor Financial Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Guarantor and Non-Guarantor Financial Information [Abstract]
Supplemental Guarantor and Non-Guarantor Financial Information	(23)Supplemental Guarantor and Non-Guarantor Financial Information On July30, 2004, Foundations subsidiary, Foundation PA (the Issuer Subsidiary), issued the 2014 Notes. The 2014 Notes were guaranteed on a senior unsecured basis by Foundation Coal Corporation (FCC), an indirect parent of Foundation PA, and certain of its subsidiaries. As a result of the Merger, Foundation PA and FCC became subsidiaries of the Company. On August1, 2009, in connection with the Merger, Foundation PA, the Company and certain of its subsidiaries (which were also former subsidiaries of Old Alpha) (the New Subsidiaries) executed a supplemental indenture (the Third Supplemental Indenture), which supplements the indenture dated as of July30, 2004 as supplemented, governing the 2014 Notes. Pursuant to the Third Supplemental Indenture, the Company assumed the obligations of FCC in respect of the 2014 Notes and, along with the New Subsidiaries, became obligated as guarantors on the indenture governing the 2014 Notes. On August1, 2009, in connection with the Merger, FCC merged with and into the Company. In accordance with the indenture governing the 2014 Notes, the Guarantor Subsidiaries are each of the direct and indirect wholly owned subsidiaries of the Company, other than the Issuer Subsidiary and the Non-Guarantor Subsidiary. The Guarantor Subsidiaries have fully and unconditionally guaranteed the 2014 Notes, jointly and severally, on a senior unsecured basis. Presented below are consolidating financial statements as of December31, 2009 and 2008 and for the years ended December31, 2009, 2008, and 2007, respectively, based on the guarantor structure that was in place at December31, 2009. As the Merger is treated as a reverse acquisition and Old Alpha is treated as the accounting acquirer, Old Alphas historical financial statements became the historical financial statements of the Company for comparative purposes. As a result, Parent in the tables below refers to Old Alpha in reference to dates prior to the Merger and to the Company in reference to dates following the Merger; information is presented for Issuer Subsidiary only for dates following the Merger because the Issuer Subsidiary was a subsidiary of Foundation prior to the Merger; and information for Guarantor Subsidiaries prior to the Merger includes only those Guarantor Subsidiaries that were subsidiaries of Old Alpha prior to the Merger. Non-Guarantor Subsidiary refers, for the tables below dated as of and for the periods ended December31, 2009, to ANR Receivables Funding LLC, a wholly-owned indirect subsidiary of the Company formed on March25, 2009 in connection with the A/R Facility, and, for the tables below for the periods ended December31, 2008 and 2007, to Gallatin Materials, LLC, which the Company disposed of on September26, 2008. Neither Non-Guarantor Subsidiary is or was a guarantor of the 2014 Notes. Separate consolidated financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management believes that such information is not material to holders of the Notes. Alpha Natural Resources, Inc. and Subsidiaries Supplemental Conde

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Discontinued Operations [Abstract]
Discontinued Operations	(24)Discontinued Operations Gallatin Materials, LLC On September26, 2008, the Company completed the sale of its interest in Gallatin for cash in the amount of $45,000. An escrow balance of $4,500 was established at the time of the sale by the Company to indemnify and guarantee the buyer against breaches of representations and warranties in the sale agreement and contingencies that may have existed at closing and materialize within one year from the date of the sale. As of December31, 2009, all outstanding obligations had been satisfied and the balance of the escrow account has been released. The Company recorded a gain on the sale of $13,622 in the third quarter of 2008. The results of operations for prior periods have been reported as discontinued operations. Previously, the results of operations were reported in the All Other segment of Old Alpha. The following table reflects the activities for Gallatins discontinued operations for the years ended December31, 2008 and 2007: For The For the Year Ended Year Ended December 31, December 31, 2008 2007 Total revenues $ 6,863 $ Total costs and expenses (13,206 ) (3,227 ) Interest income (expense) (1,930 ) 227 Gain on sale of discontinued operations 13,622 Income (loss)from operations $ 5,349 $ (3,000 ) Income tax (expense)benefit from discontinued operations (1,647 ) 565 Noncontrolling interest in loss from discontinued operations 490 179 Income (loss)from discontinued operations $ 4,192 $ (2,256 ) In connection with the sale of Gallatin on September26, 2008, the noncontrolling interest holders contributed their interests in Gallatin in exchange for cash, thereby eliminating the noncontrolling interest. Kingwood Mining Company, LLC On December3, 2008, the Company announced the permanent closure of Kingwood. The decision was a result of adverse geologic conditions and regulatory requirements that rendered the coal seam unmineable at this location. The mine stopped producing coal in early January2009 and Kingwood ceased equipment recovery operations at the end of April2009. Beginning in the first quarter of 2009, the results of operations for the current and prior periods have been reported as discontinued operations. Previously, the results of operations were reported in the Coal Operations segment of Old Alpha. The following table reflects the activities for Kingwoods discontinued operations for the years ended December31, 2009, 2008 and 2007: For the Years Ended December 31, 2009 2008 2007 Total revenues $ 3,496 $ 88,710 $ 88,612 Total costs and expenses (17,774 ) (138,486 ) (92,265 ) Loss from operations (14,278 ) (49,776 ) (3,653 ) Other expense 4 Income tax benefit from discontinued operations 5,476 12,682 770 Loss from discontinued operations $ (8,802 ) $ (37,090 ) $ (2,883 )

Supplemental Cash Flow Disclosu

Supplemental Cash Flow Disclosures
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Cash Flow Disclosures [Abstract]
Supplemental Cash Flow Disclosures	(25)Supplemental Cash Flow Disclosures Cash paid for interest (net of amounts capitalized) for the years ended December31, 2009, 2008 and 2007 was $40,437, $33,110 and $37,448, respectively. Income taxes paid, net of refunds, by the Company for the years ended December31, 2009, 2008 and 2007 were $20,643, $35,018 and $13,090, respectively.

Quarterly Financial Information

Quarterly Financial Information (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Quarterly Financial Information (Unaudited) [Abstract]
Quarterly Financial Information (Unaudited)	(26)Quarterly Financial Information (Unaudited) Year Ended December 31, 2009 First Second Third Fourth Quarter (1) Quarter (1) Quarter (2) Quarter (3) Total revenues from continuing operations $ 485,959 $ 387,015 $ 729,246 $ 893,287 Income (loss)from continuing operations 46,621 16,678 (16,740 ) 20,248 Income (loss)from discontinued operations attributable to Alpha Natural Resources, Inc. (5,657 ) (1,319 ) 475 (2,301 ) Net income (loss)attributable to Alpha Natural Resources, Inc. 40,964 15,359 (16,265 ) 17,947 Basic earnings per share income (loss)from continuing operations 0.67 0.24 (0.16 ) 0.17 Basic earnings per share loss from discontinued operations (0.08 ) (0.02 ) (0.02 ) Diluted earnings per share income (loss)from continuing operations 0.66 0.24 (0.16 ) 0.17 Diluted earnings per share loss from discontinued operations (0.08 ) (0.02 ) (0.02 ) Basic earnings per share net income (loss) 0.59 0.22 (0.16 ) 0.15 Diluted earnings per share net income (loss) 0.58 0.22 (0.16 ) 0.15 (1) Amounts reported for total revenues from continuing operations were adjusted from the amounts previously reported for the periods ended March31, 2009 and June30, 2009 by ($776) and $846, respectively. The change in total revenues from continuing operations relates to the change in presentation of amounts related to derivative gains and losses and contract settlements. See Note 2 for additional information related to the current year presentation. (2) Amounts reported for loss from continuing operations and net loss attributable to Alpha Natural Resources, Inc. and the related basic and diluted earnings-per-share amounts in the Quarterly Report on Form 10-Q for the period ended September30, 2009 have been adjusted due to the correction of an error discovered in the fourth quarter of 2009 and deemed to be immaterial by the Company. The error related to recording as an expense an employee benefit payment that had previously been accrued, thereby overstating the Companys loss from continuing operations and net loss attributable to Alpha Natural Resources, Inc. and related basic and diluted earnings-per-share amounts for the three months ended September 30, 2009. The Company has adjusted its results for the three months ended September30, 2009 to correct the immaterial error. The following table illustrates the effects of the correction: Previously reported Adjustments As adjusted Loss from continuing operations $ (19,974 ) $ 3,234 $ (16,740 ) Net loss attributable to Alpha Natural Resources, Inc. $ (19,499 ) $ 3,234 $ (16,265 ) Basic earnings per share loss from discontinued operations $ (0.19 ) $ 0.03 $ (0.16 ) Diluted earnings per share loss from discontinued operati

Subsequent Events

Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events [Abstract]
Subsequent Events	(27)Subsequent Events In February2010, the Company entered into a 50/50 joint venture with Rice Drilling Company, LLC (the Joint Venture) to develop a portion of the Companys approximately 20,000 acres of Marcellus shale gas reserves in southwestern Pennsylvania. Subsequent to the agreement, the initial phase of development began and the Joint Venture is currently drilling the first of four wells planned for 2010.