ARCH - Earnings call transcript Q2 2019

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Operator

Good day and welcome to the Arch Coal Second Quarter 2019 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Deck Slone, Arch’s Senior Vice President for Strategy. Please go ahead, sir.

Deck Slone

Good morning from St. Louis. today. us joining for Thanks

forward-looking Before we made our that statements be remind future Securities the Litigation Reform let this call, me Act. considered may during performance to and you according including to business Private certain financial begin, statements statements expected relating

cause different reports the in by in more their to the matters actual that uncertainties with These our annual that address statements uncertain. may which quarterly we results detail SEC filed Forward-looking are and nature degrees future are to different We may a as events, materially statements update than be future our those except as forward-looking do our be expressed required statements. results whether to information, otherwise, in of by new not law. undertake or described forward-looking

to reconciliation section the you find copy release, that like can of at this measures financial press we remind of in website non-GAAP plan end have you a investor to we discuss a of archcoal.com. which the our morning that I at would our the of also posted

call morning, and Paul COO, John Arch’s have CFO. Lang, this we Eaves, and CEO; Drexler, Arch’s President our John the On

We questions. will take with to be thereafter your will and we happy some brief formal begin John. remarks

John W. Eaves

at core new pleased plans and creation. creating Hitting assets shareholders just just South. via report good our Deck return operating successful robust coal strategy long-term we free joint and value we I Western story made our a on delivered to Leer promising venture of compelling significant coking for record value our excellent program, am for portfolio cost morning performance Arch its amount involving that everyone. capital of generate the growth the cash progress executing highly Thanks levels for a quarter cash, again we announced delivered while and thermal We on our return during to an ended performance margins. strong another clear exceptional QX and highlights

strong of a even facet particularly prices. the across of maintained weaker program. in half coal modestly In of pleased for via returned and dividend during more million return share of shareholders capital we during short, $X.X same temporary on continued momentum program the the All to payments million the against consisting $XX million $XX stage suspension set backdrop repurchases business am QX with a progress second we the despite of buyback every excellent our I coking and year quarter. the via totaled

in in even South we directing Importantly Leer maintained pace strong first to half. more the steady growth and the project while that program $XX year's million a than

we XXXX. more have far million to So same in XXXX shareholders, returned period the during in XX% nearly $XXX than nearly

shares since Our Since of initiating May nearly and initial total program's approximately the of progress XX% we back outstanding is of in capital our bought a capital return have returned million $XXX XXXX of impressive. shareholders. the launch program to

capital range XXXX significant just We of a XXXX. generating level and that return growth across cash transformative averaged As maintain shareholders back the in to stated full capacity we more not XXXX year to and fact can the capabilities to evidence markets pace we our past, a of while half in expect the return a much we capital the the year's consider this if powerful in be have as we scenarios. strong wide as that project executing in have to of

period than started and coking the majority The to only coking X% quarter. output and first the up weakening QX. strong Global were during And more the factors road late a Despite the capacity coal American through up and in the metric roughly $XXX in XX% averaged was in in balanced. continued than with were XX% view demand while second in in near-term. blast to generally price coking North start Europe. imports more the off to coking High-Vol country A we furnaces we demand more Chinese coal of in for coal half India a that Global is prices half well first got the coking expect this coal counterbalancing the markets year. furnace above steel solid per ton weakness blast see markets, see to of demand Turning coal -- in an acceleration U.S. averaged XXXX

of of exports for reason track below continue to coking see up supply the levels, coal also first We the year-over-year peak the were XXXX Australian well on the half side. XXXX during pricing modestly optimism year but for the half XX% reserves. Aussie coking again in coking strong XXXX U.S. exports. the met In the the nearly of coal underscoring the environment, coal first declined despite exports U.S. maturity

the trade deliver tensions just going of weather the health are markets global did and marketplace course downturns to represent healthy. value the to risk when just exceptional overall forward built come economy as structure but a such are that when they Of

which during our Arch's should With incremental our clearly return South impending these accelerated the call proposition quarter. to of identified very operational include synergies second Leer creation enhance transition out some mine, strategy We've world of value strategic long-term that defined for to growth. completion and combination over drivers generating now mine into Looking longwall later this year, the capital our sharpening deliver long-term. this shareholders further value significant highly build I'll its Energy performance new commentary Paul robust Lang the Peabody turn elevate the the base over while significant should heart the a further. program, Paul. Arch's should improvement reserve long-term the further already remain ultimate our drivers unlock with four value on the powerful still strategic company's class venture of still Leer for and of ahead These further. we that the substantial focus cash confident In joint drivers potential and on

Paul A. Lang

Thanks John and morning everyone. good

progress through pleased remain the we execution as the sharply balance during year. strong noted focused and of operational John we're that the As maintaining with excellence quarter on our we

its X.X strong ton realizations portfolio of quarter second record as we the During and of performance the range. marketing guidance record per million of mine costs We near a of shipped coal despite our bottom move was cash coking ton. coking reported delivered We Leer sales. we the margin coking at achieved which coal our importantly and $XX.XX operational at core on $XX.XX more coal longwall continued segment per tons

this levels move the in Of costs. with reserve outstanding Leer longwall another mine longwall particular even note exceptionally excellent cash Leer improve to the transition achieve transition from XX plus where of years during its mine turned track the its will into upon maintain heart low going high and performance. inches the approximately Later first X continued operation. will Even should to of year the feet to base record average and its enable same about approximately increase X feet. thickness productivity five This

the to as pleased we're longwall in I've making discussed class a South of report is excellent Leer carbon the world line I'm progress mine. copy the which that affectively the in development past of Leer

is among you expected coking States. to margin the be As highest lowest coal United in South cost, know mines the Leer

by While out progress. we're just process pace with encouraged development of we the the the of gate are

the excess keep of perspective is of deliver million the today's longwall indicated. strong $XX third quarter in opposed of result accelerated it As million the longwall this start fourth XXXX we to of even To date this every operation of prices an at $XX as shifted to should EBITDA. additionally expected as month to startup a quarter the previously the

accelerated capital Obviously, on the work be quickly In South to operation of the as we anticipate timeline approximately support further. XXXX getting $XXX longwall Leer accelerate opportunity the at of possible million initially in development indicated. remain development will for sharply $XX that versus was now spending focused still in and million every as looking the we

remain originally maintaining continuous with approximately market $XXX quarters which development premium our X.X to million spending million original process. estimate qualities at High-Vol Moreover into we $XXX product the development sold complete While still we Leer These the the the we have comfortable are prices. will tons tons stated compressing be to producing miners capital anticipate based our during project. million fewer of as than same A coal of

recently up the in the Leer of with aim legislation $XXX develop of rapid the mine. short a across It's generate market of tax wide new passed those South we the of to state conditions. the years. of of EBITDA the range lower at expect payback very total XX% severance the the us form a The course to expect tons than capital more to the that in scenarios. over West next to given Consequently our of mining we recall Leer In coal equates legislation XX should market in Virginia sector. current investment to XX% roughly South would investment anticipated also payments needed to That million important incenting state of of enable recover

positive environment XXXX also tons in with the an the ship market raise strong first despite this and coal I'm half operational our pleased which for the of the past represents X.X to gives coking guidance report during expect coal comfort it million few seen remainder at softer the to year to we X.X With now tons weeks. somewhat million of execution we've of outlook increase XXX,XXX coking -- midpoint. us the the sufficient the

cost of $XX to guidance ton for to at per Additionally tightened our the segment improvement we've $XX midpoint. range this of an $X.XX a

our in modest every incremental are tweaks they improvement reflective of commitment these are our While to of continuous aspect business.

metallurgical quarter achieved segment third be shipping we the be are now based expect of we to projected the from to by for volumes relatively comparable quarter financial lower index in pricing. what contribution the second As as increased to XXXX counterbalanced

take what rail in us thermal just of spending capital of in that of the during our generate flooding significantly side On levels disciplined we strategy the market terms assets meaningful while That period. continue to the our is and from again quarter being offering despite cash impact ended thermal free curtailed to managing service the the allowed costs.

improve our second cash are we of Basin free greater from we thermal due year capital to ahead in prior cash and segments. lower the even Powder volume both a other guidance cost segments spending. of the and contribution logistics Looking and maintaining from Thus principally half expect River all

benefiting thermal venture creates and our involving been Western will our the recently made and by synergies renewables under and filing unique to Federal our gas and joint Moving Commission. the consumers. both review customers strengthen lower that transaction business believe currently with their Hart-Scott-Rodino announced the Peabody this has the costs competitiveness combination We assets, natural is Trade with

As you this call. additional today's we information given to questions be of process appreciate provide the can will able the to not and answer related though review on nature

high Before performance strong the on speaking gauge closing to was for stewardship. both excellence a Arch's in we safety environmental Arch team Even which I against is those a want our performance exceptional fronts. past Generally congratulate bar. and against it performance metrics another

As just one employee million surpassed example the Leer without recently X reportable mine a hours injury.

be recognized Among was we collected Quality to rewarding during Award. those the Black honors also accolades noteworthy by outside the In quarter. of Wyoming Environmental with entities Top it's XXXX addition and several Thunder Reclamation Department honored

Rocky In Coal significant Colorado West recognition mine Mountain in Institute received as and in commendable addition Elk underground from achievements. mine our the the These are safest XXXX. Mining

our every I'll summary of we in hit Drexler, critical intend John expect that quarter In half to marks over our CFO. the last maintain during and call strong second continue John. area the and With we turn momentum the to to performance of year. that

John T. Drexler

and good morning Paul Thanks everyone.

capital returning generating Paul low indicated of the substantial have return accelerating operations, the significant cost execute you, high of to Leer of and on plan and up John and our in cash amounts from we flows our investing start shareholders. South our As to project, continued

position. update brief our a and liquidity flows, cash First capital allocation, on

credits. generate $XX We of cash million. during to for flows with million of $XXX million spending quarter is total capital the the the operating quarter's refund tax highest for timing quarter significant Capital approximately of Due expected be year. flows alternative second includes Leer was That equipment million. $XX.X continue minimum cash the to of includes capital. This rebuilds in $XX.X the to development with South of capital the the maintenance the remainder maintenance of

project and in expect million As we over spend it full million South the capital invested at now total to $XX.X stands Leer year. the to relates $XXX

substantial made to accelerate us significant have the we development to allowing milestones discussed longwall. the date achieving have startup of process of Paul progress and John the As in

our last Consistent quarters capital to devoted with cash our of several in return flow excess capital program. the needs was

shares or pending during million. outstanding a shares second shares our quarter in the announcement a fact over approximately the back time the with we the the quarter second out of date the achieved back we initial of of initial quarter we of despite during We XX% in for X% our bought $XXX buyback For million this quarters. Peabody. shares of $XX for XXX,XXX joint our of light X.X have To just market were level million of outstanding or venture buying period total spent nine

XXth September to of believe business of normal the the our XXth. South program payment to recurring Also simultaneously dual approved paid our our million. common of first cash $X.X the close also stockholders build dividends Aug capital. our returning to quarter project record is focus funding on million We we our share excellent at total capital high quarterly dividend of shareholders initiated recurring since XXXX during an dividend the The the of board dividend quarter we paid the repurchases quarterly per via dividends the share and scheduled Leer allocation while represents return $X.XX $XX which to of out of of paid be bringing next in on

uses adjusted view said we the of over continue an as provide stock longer-term our the Looking which ahead cash return but to will having evaluate risk excellent value. to we best continue that

current Given operation. our Leer of capital the South to out while to of year, strong expectation return to free of flows shareholders our the simultaneously resources funding we and build continue the for remainder cash the cash expect

we our million with combined with facilities quarter when Regarding in and had the the of our borrowing liquidity. cash ended of liquidity capacity $XXX $XXX million we credit

million maintain of stated have liquidity a the above $XXX range. that comfortably million we component the like very positioned being of we to are just of our cash range As that end and to we high $XXX with substantial in

protection low through markets Our coal substantial full market sheet are us cost provides when our with balance to by combined generate cycle the operations us allowing value strong healthy.

we in half our performance with XXXX. summary In of pleased are the first

enhance complex return aggressively driving capital using Our and by rapidly continue to of program. are investing our low by generate Arch to South value and cost Leer cash operations we substantial our high the in that on forward return

call With path you the of to turn same We Operator remainder expect that to back we questions. continue I'll for ready the take down are XXXX. that to over

Operator

Instructions]. question We'll take from Global. Mark our [Operator first of Levin Seaport

Mark Levin

Thanks.

seem you're I the calls think a hat your don't it little overall solid editorializing, that was entire which Related Just a point bit consistent do QX long is can and was yeah -- per thinking man to that talk cost to for my earlier, improve of second the to about a QX great to your something XXXX? seams been pleasure, great that has you so talk where we to execution lot are can't the a that from time And significantly off this company. remember there -- met thinking tons about expect maybe and to my so I execution. what which I this related when can't hour to into about entering again you job. on to reference thicker in operations I maybe and reference about to

Paul A. Lang

Paul. is this Mark, will Yeah on off I that. take

and the move, day what had strong. mine think to quarter. a a they same, longwall a was decision just continued pull one what the outstanding. both by was Sentinel performance it's out and The As only done on went clearly I of the had struggle kind Beckley schedule at the it team made every you I'd start the the look is just been offset solid coming move of longwall good Leer. versus by call that Mount through of we were -- one we'll reinforced. ahead to an we outstanding But was Quarter-over-quarter the got QX productivity they and what QX with aspect at Probably Laurel quarter both

reflected to per man productivity So, hour in the see the in think starting numbers. ton I that you're

Mark Levin

to maybe earnings about versus offsetting contribution about about you think like will met for what volume referenced those also weaker QX QX you more think somewhat given just thermal and pricing press QX and think in QX the how or half, EBITDA look I when outlook second now PRB in to maybe what [ph] EBITDA maybe like And might versus more QX think better look factors? the release financially, with similar other in being you the when the coal QX in

Paul A. Lang

Yeah, obviously indication pretty gave Mark met on the we good segment.

PRB look operating I to know quite and we third normal call not at strongest quarter I'd you that back as the fairly the well think we're and are you quarter PRB there's every As usually but what indication out there. is

So there's offset see nothing shipping normal would kind QX I that in PRB the of that the strong schedule.

equal you on a the for prices, all thermal take you pretty pretty year, in so and think good and could that adjust things On we're indication a think where we're I our from would at. good indication also QX being expecting give typical it our other say I last have pickup

Mark Levin

are question, market, Again you my I over XX%, in a lot a know you your of recovered kind aware guys the exports little point customers your haven't to prices a to I you bit are guys in second do what's what's in of guys quarter just Australian on met and market kind last fair we a thinking? weakened I I here expect Europe seeing seeing or are know heck experts U.S. couple months of up going obviously advantage domestically on what picked whole quarter steel the stabilize from so mean this of prices in first or you're is market, and the market about still from a going but around and year Australia. the what all what down met in from hearing amount, are question the have last the X% think they

John W. Eaves

on on committed really the not guidance of what comfortably concern there's of conversations lot I midpoint third coking discussion European a about I call economic customers. the what the tariffs. what coal our is quarter a on any we There's as would on of seeing global -- lot enter our pushback. with we're Mark, based side of XX% at situation the think and a we're lot I We've had economy, the think

people cautious the but think to customers now are being relative coal. not lot had I concern a I right of haven't taking

John T. Drexler

confident years. pretty let conservative balanced. in. longer-term last going weeks this I seen about pretty at guess we We six million weakness are we still depletion investment that those prices some continue is just to last markets me numbers, you pretty jump see growth. John next think years think significant Mark, overall think been need over to guess demand well XX rates as several we've we under the to there's tons X% Yeah, couple where five Arch's look globe pretty are the we million the but to still I new over at XX demand. with meet that the We

not we're So it looking short-term. at

capitalize continue feel when our they our look these quality, our through balance long-term, confident up. manage cost We very and to able move with really being dips structure, to and sheet

Mark Levin

thanks That's again. a great, Congratulations quarter. very good on

John W. Eaves

Martin. Thank you,

Operator

Riley next take Pipes Thank you. Lucas We'll from our question of FBR. B.

Lucas Pipes

good Mark's fantastic Hey, and comments, echo everyone to really that's to see. execution, I like great morning would

John W. Eaves

Lucas. Thanks

Paul A. Lang

Lucas. you Thank

Lucas Pipes

a cost I in you and on be that few have quantify year very can Thank you. later the the wondered basis year, impact with I on and for us a on coal more met this what that if maybe height from both I seam think questions? at follow-up production could questions this later Mark's of strong wanted productivity to Leer starting side hone one higher and then

Paul A. Lang

coming quite has and the XX% while for this in we're effectively impact baked obviously positive. this seam expecting. echoed a A was what into our obviously is We've Lucas, is increase been high numbers.

corresponding bit as same impact have with we've overall been with happier that's couldn't out should be Laurel As you South. has this offsetting time Leer and a have on a there, that but little the go thing Mount where said it at I I Leer same but expecting gone got costs to

John W. Eaves

this we mean forward cost continue performance. second I amount about of about got quarter I had at good Paul while so same structure move feel going Leer's you particularly XX.XX mean Lucas with we our if with mean been has you think I to little a Leer longwall to cost fight modest.

Lucas Pipes

impact of assume those I higher would have correct? then we in XXXX [indiscernible] full And a year

Paul A. Lang

correct. is That

Lucas Pipes

I terms patient very but they a production terms would looks of promising. and XXXX guess to how have and bit little like So, cost be in of look in

as would your would a you. question I So, new tons guidance, on another in you tons South, about we in this normal precisely, some already our captured you -- mentioned as tons those million release of this little under see advance the be low coal additional be the Sentinel, development you would or in met production this higher X.X model? be in context side, production be tons those would Leer could placing Thank around appreciate develop bit mine, where

John T. Drexler

we forward. about John is Yeah, tons will Lucas the move and talked Drexler. The million EBITDA we how tons X.X this they development generate as

now As can how development they're times there. scene Lower you as modest initially small are imagine They reported just but in far as being into that's Sentinel's it's the included occurring. a it's Kittanning very right very as we're

the grow units that we're but Sentinel as some Kittanning at Lower move so And transitioning into will we forward remember scene. CM

all all guidance met incorporated we'll we our forward. as So all move on -- that's in coal of

Lucas Pipes

you shakes in you lackluster got appreciate the things regards that perfect. in it, for of pretty one to think out what up is me, is Okay, XX% phone I demand then thoughts? supply it even would take last environment, your would ringing PRB, a your if one otherwise the and Thank

Paul A. Lang

out all a would tough I It's number at from hard this not B, jobs was with is the heard and a least We've PCI, market a cities. vendors, High-Vol Lucas States, the I'd perspective PRB a concern having thing at we the tell the Central we've the that what County, of reaction story. a out of out been What a their tons market to but without over and calls of XX zero. acknowledging few from. the the was million people the Yeah, just that effectively least large story you about there issue tough to of or said that fascinating the had talk there's find lost PRB lot honest I combination pretty XX impact customer's say million it's about pulled App, the and be there's

Lucas Pipes

thoughts PRB I and luck. I'll on reach continued for additional that it and and the thank turn share your to best in you of Paul color. over

John W. Eaves

Thank you.

Operator

next Thank Dudas you. We'll question take from Vertical our of Michael Research.

Michael Dudas

Good morning gentlemen.

John W. Eaves

morning Good Michael.

Michael Dudas

guess help some the XXXX? lines you some at the where target of competitors into are get maybe since productivity Leer you're to up are current how to concern better for ramping you're and and as relative lever issues helpful activities in been feel trying to the great on South your And of I coalfields from to and going more move there's performance to and and enhancements do the be quality these trouble having, negative you you more question First needs start especially about is vendors that other some as plan Leer as impact XXXX? you issues to some from of your going

Paul A. Lang

Obviously to people the start a to in been were and lot move about the good put front the good relative PRB I'll people shape. but on market. talking East on by labor we the there's pretty Michael of

up opportunity what between had labor somewhere people I on exact it of picking but and skilled South the willing people have forget on electricians it's need the good XXX to other we I'll number interesting a relatively methodically XXX type of and think it's those a at the more people read good we've honestly Clearly we've I've some some of we been hire Leer some pretty doing and side. and doing necessarily to very didn't been to competitors luck In that it. and little some and people. bring East always up some good you've operating the up people are frankly headlines picked and just and pick

the we that the interested one train to with out work a proud to have miners. trying are three on I'm the were I go is think starting I thing off we most rate from this pipeline them issue. advantage that ever not in to we Leer process young ago employees is taking to way of years we're and industry of that has a seem one those good really we're very from just the dependent other. have We in That each started stick paying new go starting other people probably we've this build so steal where anticipated and and And is program to out. the think And probably each want at people. way that training been process people poaching and people doesn't train a about

John W. Eaves

about for South. where Paul therefore and we're we're as turnover of are people just a I jump not going seeing and future think Leer And Leer we our at to on where turnover you lot low said to a having and on the I the today lot growth we're people. we and when certainly South have of Michael but company not just rate look a whole think bringing good the of feel that, trouble employees people

think standpoint positioned we a has probably be. as as I from So well labor we're could

Michael Dudas

last at the comments, quality well performed overall especially as your you it gauging has from months. very would we're be U.S. How follow And globally I is helpful. up guess several angle the side looking the the been just over how on those thermal market that's of Appreciate pretty my coal export that met and the the providers out marketplace going issues are the bit seeing you supply to come market? a tighten on the of Thanks economic close guess into some guys. offset West on up did you of are bottoming maybe and have the the met side help export slowdown their to getting that marketplace we anticipating to are and I the Elk,

Paul A. Lang

go done We've year. will those fairly a earlier roughly But the but API sales tons and though some on that hit we in. those off the just I'm can jump tons high from I'll East we Coal-Mac entire the not a try maybe the displacing X. million job I caught export good European that market. not points values -- or John of XXX,XXX domestic come Yeah, into At about operation out question current our in won't the sure some export and principally jumped marks with of

So West, were so couple off a generally in out Newcastle. the as In do to to And is I careful out we that into aggressive of to and always top, strong judge run obviously about hedges last Newcastle has we're good feel not always been West is going quarters we're the enter the Elk We Elk the just participant come layer in in and have paid standing Elk as going will how market it taking in the XXXX. going good West far as think we're the West it position. which it. just we market going way be try watch and and and at in of relatively

John W. Eaves

Mike coal seeing feel good on we're what side quality we front. the coking about the do on

last If Australia a High-Vol believe [ph] does looked market their doorstep over pet really the so feels dip our A you to lending bring below dollars from little continue the here. It time obviously to and to steadier that. starting product might of etc. good Paul about indicated couple today stability. The or of going in is by more just way hard out. We've tons, the coal feel John bit perspective make We that's additional market. concerns tone good the what see encouraged days despite A it's sort to really continue a allows as is is month market, the has cokeries think had that a that and be the see but couple at to of just But have are getting Australian advantage We'll Asian little and do trading a like we being there of of have we us coking macro referenced. feel A look sort those as coke where semi at better the seemed hearing the to right a High-Vol certainly we be we those last quality The how and lower into interest instrumental a and of significant is lower advantage soft are products. half be High-Vol a that to quality to plays

uncertainty same It's the does. decent of level So do have that the of just we global at sort we markets. economic feel else everybody sort of that about sort export

Michael Dudas

appreciate thoughts. I those

quarter team than only [St. had that the Thanks Blues.] was the a think guys. Coal Louis Arch second better I

Operator

take Bridges Morgan. of from John [Operator our We'll J.P. Instructions]. next question

John Bridges

to like at take echo also seam Maybe Good morning another results. thickness everybody. done. I'd on and question. Lucas's shot comments like Mark I'd Well to And the your

going of so in to expect the it of heart in How you not the come as bulls let the in XXXX? eye Leer XXXX. you seam engineers South and out seam in the You're you stay long before Leer to presumably that's thickness what well, there South the will at do then

Paul A. Lang

this Hey Paul. John, is

that you your out. all that the little be of that's to a out. Southeast best and a in mine head come we the the core was the of a unusual don't few mine the and story. this heart off relatively you good to develop And years thickness the the of First in for John It's kind developed. simply is back we West as reserve. seam to seams coal comments. North and way quite the It go for pretty to we thank had But the to start this thick. had be it's We're had coal head going way we basically

John Bridges

as six South foot coal a in is certainly the And well?

Paul A. Lang

South little Leer advantages longwall thicker importantly over panels. the more past longer we've got it's Leer. in It's and Yeah. probably has a couple talked actually bit as a coal

to So Leer. very we're expecting productivity similar

John W. Eaves

of good. even So this thicker Leer like John longer into now plus as bit coal about Paul is said has that over all takes little years what the operation. lot first that still. thicker, this its step we've It's change of said South looks been Leer panels just sort that Leer Actually a five longwall a

look mining with Leer to really of would we've what So expect years additional Kitanning and like a plus lot we have Lower that five we've Leer there of a seen out and in the last those lot operating South over the we benefits processes. refined learned longwall

really feel So positively.

John Bridges

coal keep and a the up. helping the Okay, price affecting met about great. on And you lot were shortfalls supply commenting

what coal me we having to abate? coal. things that from when in the the that I between on Coleman just big prices any Matt supply bigger of on was One of at thermal the might certainly But sort etcetera of coal disconnect thermal thoughts pressure is the moment. you effect etcetera, that's ESG this seaborne theory as course if had that should investors prices wondered intriguing that coal impact and have a of is given thermal depressing be thermal

John W. Eaves

Paul jump me can and in let Well add on.

I think where we're to certainly the starting on API X thermal of see a lot given is. pressure

their people seen you hedge the I significant a think for XXXX. selves haven’t off more drop is reason

the there's pressure that I place lot year come don't be there'll coal hedges domestically. to of I later off quite you into any in a and XXXX, go that for those know think frankly John go and As

anything. see think a pressure got I you'll XXXX. into we So of lot Paul you move as

Paul A. Lang

the hear is up prices X comment the coal. No, met usual relatively low, make LNG only Coal the is have displaced and Europe, you a build John we inventories lot were commentary of on crashed. API I'd

John Bridges

you hoping line revelation Yeah, new in with. that’s smallest okay. had Okay, I was some

like. Now if I'd you hear it

John W. Eaves

John if love you try to out. you we'd Yeah, hear anything else

John Bridges

on keep results. congratulations, and will Thanks looking. I again good

John W. Eaves

John. you Thank

Operator

you. Thank

time. have further no remarks. at this Eaves it questions to closing for I'll We turn back John

John W. Eaves

I transition of the We thank Energy. heart reserve program, be XXXX the the The you in development Leer Peabody you. focused joining completion executing of to of South, capital at and JV team Leer, to you of forward the the Thank look October. for the management updating the in call in our the drivers four on back return morning. this will want on half with

Operator

concludes ladies conference. you Thank gentlemen. and This today's

You disconnect. may now

Arch Resources (ARCH) 24 Jul 192019 Q2 Earnings call transcript