HCC - Earnings call transcript Q3 2019

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Operator

Good afternoon. My name is Rocco, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Met Coal Third Quarter 2019 Financial Results Conference Call. [Operator Instructions]. Please also note today's event is being recorded.

have forward-looking to may statements, from discussed. I discussion that differ begin, those contain may and we been note asked today's materially Before actual results

on company's forward-looking also this have asked call Investors discussed accompanying at of to the company tables refer For the filings. the been statements, the that in press posted information and SEC www.warriormetcoal.com. the the regarding to more release of company's during the company's has press note non-GAAP release I measures located please section earnings reconciliations financial website

addition company to brief In to its posted the section Investors the earnings website presentation has slide www.warriormetcoal.com. release, supplemental of at a the

Chief your Here company's Scheller, are today Executive Walt remarks. discuss Scheller, Mr. results the you may Officer. Financial Mr. Dale begin Officer; to Boyles, Chief and Mr.

Walter Scheller

downtime. the high in challenging conditions their strong third successfully $XXX in the recorded strong longwall X.X with anticipating quarter $XX impacting X of efficiencies results coal revenues, volume achieving proactively which in which drove in X.X short XXXX, the move you to remarks, million Thanks, today significant near-record us equipment the the results. of discuss to quarterly tons led Hello, adjusted EBITDA and operator. was by will produced made to well you'll expectations of everyone, XX%. ask despite is our high moves Dale mines taking sales managing performance, of our exceeded These Warrior third review in the levels efforts increase detail that flow prices. of We longwall of and and production the short continued sales quarter After to million. the time free driving longwall volumes performed third and million quarter same volumes. and our questions. join the for demonstrate tons production results exceptionally We quarter The an of have the our million in planning additional $XXX XXXX. completed XXXX cash moves, third quarter my and quarter, year, opportunity third amount then to met this our in of employees achieved thank market million Production our compared in consistent

the addition, set mines strive for in that we to extremely to reduced and conditions. safe to from geological X. impact example to purchased as through shields shields production less investments the flexibility a in In and good reach improved production with minimize capacity of full capital and longwall we've efficiencies our time the made environment. unexpected if beneficial Mine of production periods risk equipment A moves. we extra we mitigation the the continue encountered utilization downtime is better additional downtime required also The that longwall It therefore, move longwall provided on a be mitigated

development costs expenditures period The during ongoing mine of the the X This of into longwall the compared last Mine X for company quarter on area of third million plan. the costs year. amount the panel during $XX $XX to million spent year the development capital next this mine includes same extension North, and

bunkering it presentation be X included as shaft cash completed, North Pages state-of-the-art hoist the website. spending system. substation of new North seen XX our and the construction including facilities, new will on portal, our investor extension addition, bathhouse, the and equipment to In and feature is of X can power XX a service on When

period. over in mining to that sometime longwall be in to X the to same capital that expect area time the spread X intend years, next spending We and

continue in of the challenging will which few million to XXXX. short be the discuss a reflects XX% our during which to conditions, sales of third We volume quarter quarter increase third the customers I despite quarter compared XXXX, of year a X.X this achieved strong tons same minutes. market a in Demand the of from

into Our and America third were into in South geography XX% sales of XX% the did Asia By Europe Asia. quarter when both sales by in way mix comparison, the include XX% into of geographical XXXX quarter in South into any last America. third were year's higher not sales Europe, and

short amounts our manage of second met Inventories chain quarter tons increased coal our and supply We the production the port. continuously to inventory short primarily possible due XXX,XXX levels from tons, volumes. while the optimizing to higher to to flow deliveries the XXX,XXX lowest

factors are can significantly caused as the by such be storms mixed, related timing by or Our impacted delayed schedules delays in that Gulf. actual inventory primarily of several level loading

quarter The Index third $XX approximately metric price started lower per the Australian in Platts Vol July. than or lower Premium where the ton quarter it closed XX% Low

Remember, rate Our blended gross for Index period quarter Australian low the and the is percentage Vol FOB was was mid coal price than XXX% Premium realization Low the XX%. sales. of price vol prior year the a third actual of Platts higher met our of and

Let's now turn third the to market conditions quarter. in

of global off achieved of in first half the had first in strong same X.X% eased third the for up volume of production XXXX. still production XXXX very global we somewhat growth months the pig third a in by the iron pig of XXXX. results X global As the of growth quarter, the iron iron saw the rate pig period Despite production anticipated, slower quarter, we coming over was

prominent remaining as contracted like felt production, Chinese production volume Atlantic global as iron almost across producing countries Japan. were rates production all in pig X.X%. countries the countries excluding Lower producing in the well by other However, Basin

third the XX% quarter. their slower in contributed compressed The indices pricing than among steel X believed softer their the to third On to during more toward widely activity producers it is but the end lower margins. reflects of third the dip demand the seasonally coal low July the quarter. levels, average, normally that these met believe the corrected prices and from major establishing a points of factors, response period is We quarter others,

of expected, drivers in correction Where met and past as most a restrictions was second, coal were pricing: and coals disruptions as participants. significantly strong imported third, highly implementation quicker first, in performance as for continues predicted, met of surprising slower the supply your focused largely quarters. minimal market port the that being global X demonstrate the and the We behind on than correction unique of with chain seaboard coal; our the there producer. business China; Chinese operated believe strategy steeper outside value premium, pure-play Despite demand principal to the

the in the appropriate we've any flow also as Our to this continued to goal is strategy, business We've in to pricing and not the reward experienced just past. generation support invested where in conditions profitably maximize cash in and environment, stockholders warrant. favorable operate we've our conditions

the as the credit a employees, I we hard of thank work in and are us and successes perform dedication for did all them as help our to operational Our third doing strongly they've to been quarter.

as X efficiently priority first for strive rates the and Where some achieving remains working and ultimately the your lowest top we the Our safety that success step marketplace. incident to country safely, the is injuries. working in most but important are in of

Blue discussing to give Creek the to strong wanted third an our I also In on you growth update in addition project. quarter, performance our

presentation our our through quarterly You of investor can website. to refer XX on Slides XX

high Creek the of United A vol previously stated, coal the few States. Blue As met of remaining one is in untapped premium reserves

and Blue significant the has to potential by early value excited are promising results from to our believe Creek the work, our We deliver stockholders.

XX life has the with of short million work a of initial annual single mine tons with a focused Our of potential operation years. production to on feasibility longwall approximately X XX

robust we X $XXX across in returns years. met continue refine over demonstrated initial coal the of studies XXXX, to million $XXX parameters have estimate approximately of range While to initial studies prices. capital These million expenditures project our

evaluating to transportation geological Creek's pursue strategic for obtaining and project to activities and These maintain continues storage to areas. parameters. course momentum include marketing Blue drilling additional rail several and barge and and refuse permits gather core project partnerships; slurry Warrior activities hole optimize data;

construction currently plans are development with are the several to that to We ensure finalize plans solid. working vendors

of longwalls, million to mean considering the potential short up also are if X X approximately tons, for We of would annual desired. allowing which production full

financing we continue explore to arrangements as potential Additionally, plan project alternatives. well as to offtake

point early on which development. in fully by make decision future Blue shovel-ready to We expect be a at a Creek excited position and extremely by permitted will We're be would Warrior XXXX, our potential at Blue see portfolio. our to we We of and updates forward providing the few future look Creek, to the cornerstone months. believe next project's become over the the stockholders

now quarter Dale address our detail. in I'll greater to third results ask

Dale Boyles

Thanks, Walt.

$XX income a the share of on $X third basis share was third or diluted XXXX, GAAP net income For compared $X.XX quarter in XXXX. per diluted to or $XX per million million of net quarter the of

per $X.XX diluted the income net of of other $X.XX million the XXXX. quarter for diluted to or $XX quarter the nonrecurring adjusted share XXXX third share Excluding was per income, third in compared non-GAAP

the XX% $XX over Adjusted by same volumes. and EBITDA in higher third EBITDA to in a of driven quarter in the compared last third XXXX. in was million offset expenses higher power and decrease sales EBITDA primarily million prices, margin slightly XX% $XX compensation XXXX. XX% cost quarter in in decrease XX% partially by maintenance adjusted compared stock period of third average was quarterly the same period The the selling quarter was the increase The net an year, and adjusted as company's of to

This $XXX ton the increase million per the XXXX. dropped compared XXXX Index in the to was decreased increase primarily due in million short price quarter. of XX% third in in to selling sales $XXX year. prices the the net were same The average revenues period Total volumes. last third to XX% the third significantly same approximately during in quarter period quarter compared

net Demurrage year. to Our period of short price of was compared to the ton price other the third quarter quarter an year. gross our $XXX third of same charges in XXX% last the in in gross and realization reduced price per XXXX average realization this $XXX selling

million in Mining FOB of Cash due XXXX. approximately or FOB volumes per period revenues in the in to ton, was the XX% cash of of reflecting compared the is or of the to XX% XXXX. the quarter compared third higher benefits $XXX decrease in short cost primarily The capital mining of quarter port, third same $XXX production investments. million of of the $XX third our quarter $XXX port, revenues to cost mining sales was XX% sales,

compared prior recorded X% to the in year higher $X quarter SG&A this in expenses stock last period. approximately to million expenses were of primarily higher year. the due revenues approximately year Expenses compensation $X over third were about total or million

third or lower third by our quarter debt quarter the outstanding depletion partially in the period amortization million offset quarter our and was of issuance debt XXXX. about and revenues of compared same the total to interest million and the our $X expense of flat early were due compared to for debt plus interest This $XX on million in our XXXX. was to $X interest year Depreciation Net of expenses with XXXX of included facilities, were last the the credit of cost amount period first by portion income. same retirement of X% a associated

$X due during Other The XXXX same in losses, $X the a received X in predecessors, income the income approximately of This the to our recorded NOLs, their Energy net deferred million reflects corresponding with proceeds a income of the our its year. XXXX, period unexpected claims. noncash taxes third sheet. one expense third quarter in our reflected of balance expense proceeds operating of and affiliates utilization on decrease Walter outstanding Canada, company quarter recorded result was tax million of settlement with in or bankruptcy primarily of and last for from

may with valuation fourth quarter the on NOLs allowance you the company's deferred of associated taxes released XXXX. in the recall, As we income

third federal our quarters fully XXXX or paid expired. X until of the continue utilization reduce to the and of NOLs We state tax and will liability are expect XXXX the taxes our no income and that cash in to utilized NOLs

expect will the conversion drive cash free to this significant continue next We several years. over flow

cash Turning to flow.

mine activities million free development $XXX flows cash the the $XX capital million third of quarter, million. was for $XX sales The of of volumes, a cash year. of plus XXXX. cash by primarily quarterly third provided generated working During quarter flow capital decrease cost of operating compared prices in to expenditures of of capital primarily and low free the this This, which $XX million used of result $XXX quarter company result in and receivable. lower cash million to the million average This working in by the high in accounts $XX stronger due third was to a net due decrease was offset -- record near lower selling flow,

to compared million and last mine million $XX year's in a cost support third cost Cash of year. and activities used to same area. that continuous X quarter incurred were third capital in period the XXXX unit investing related developing quarter was $XX of million costs expenditures forward new in panels in mine the This miner $X North for longwall development the development included results in

flows activities were million consisted of primarily million company and Cash XXXX, capital payment of the $X lease million of quarterly used plus financing $XX the of obligations stock a of quarter in repayments $XX $X of of in third through dividend million. repurchases of

balance The remains leverage X.XXx sheet EBITDA. company's with ratio adjusted strong a of

flexibility third addition, total our consisting million believe We and have flow short-term of Creek development pursue investments of with facility. we This our balance with $XXX is available of of we of of $XXX In decide generation Blue and the million ABL credit strong cash and will $XXX quarter project year. of million ample free sheet million. $X outstanding the us liquidity under as letters available net cash if next liquidity to and provide our significant cash end of equivalents approximately

summary, strong in reflected and generation strong quarterly This offset performance and performance. lower was In sales cash performance operational the by increase XX% volumes, free market third pricing. overall that strong flow production drove quarter a financial strong

the our turning Now remainder XXXX. to guidance outlook for and of

moves we We for quarter longwall complete had X a X a fourth compared in moves in X move in total expect longwall of to the XXXX total to more XXXX. of

reaffirming second as the XXXX our full are guidance call. issued year during for our previously quarter We

per million; follows: capital as X.X to expenditures port of of million year out to of noncash full tax $XX to a $XX million; cash expenses our $XX tons; cost million X%. and short $XX X.X set production development to full is million press net release, sales of guidance SG&A X.X cash million interest rate XX% tax X.X of million $XX million million wholesales As $XX $XXX short deferred of to million; expense tons; $XXX million; of XX%; of short XXXX expense our in mine of cost $XX to $XX ton; of FOB to income to million

it now Walt comments. back for turn his I'll to final

Walter Scheller

Thanks, Dale.

very on Q&A, the and course, support and, of for comments we move outlook more the engagement in fourth to appreciate our operational company with we pleased a and received from like to I'd about and its few make We're Before the we XXXX, and company's the of financial the performance employees. quarter. stockholders quarter strong third have our

feedback our contracted we regular our to customers, consistent from in sales volumes on fairly Based expect remain the fourth quarter.

Asia. opportunities spot in in iron low met the input despite mainly margins thin and market to prices. due any that expect in prices steel We the will be producers prices believe ore global to coal by steel We continue high will pressured concentrated correction recent be

restrictions fourth For and that quarter port and ease markets will for the these XXXX Chinese remain activity to on deliveries. anticipate we the the pricing trading reasons, market cautious volatility conditions, current continue resumes impact until

our More remainder of based the for production market end conditions However, still specifically, our lowest are sales we our the the targets. the quarter after year we but fourth strong these at well. XXXX the reaffirming goes year, year-to-date, expect inputs, and to our the everything volumes guidance be expected performance if of targets considering guidance high of on along with

months ran purposely me in quarter. for color this coal capture peak in the met you cash volumes of periods during first profitability expectation more free on Let the the to the sales We production and the hard especially of flow give maximum fourth bit pricing. and a year operations X

routine the XX-day downtime the as advantage more completing on as to we maintenance to off well result, expect of additional days quarter to days equipment normally conditions move. market periods, contains performing allocate X as longwall key take more a fourth holiday As for

we these levels expect During production outages, our inventory to decrease.

mantra, hope that adjust with the environment performance us and conservative market business issue agree this repeated downturn corner, to the run the as that reflects allow I targets you'll our it the as operations next year to Finally, often the throughout just were year. the pricing around our flexible changes we if and geologic

like that, for call open to Operator? With questions. the we'd

Operator

David question BMO of first from Gagliano Today's comes Capital. Instructions]. [Operator

David Gagliano

while in sounds think that of shipments, fourth one there. terms terms obviously, decline, for quarter it quarter-over-quarter them -- I just But -- might like end it steep it's production hit of pretty hit you of so the at the market you you -- in plus and seasonal -- conditions.

zone As that you to reason that lately? to look be to any volumes XXXX, per ton seen expect quarter not into million X back we've

Walter Scheller

for are next it'd putting so year to that want quarter-on-quarter. building and we're still do sorry. now, we'll comment that our really don't budget on me targets I'm right I what announce production so be still next We're to our we premature what year, for Well, together, think for David,

David Gagliano

terms it it -- it Anything Okay. Understood. downtime a maintenance. of normal than, in I very does mine, a obviously, guess pretty conditions like is the other well, significant at you routine extraordinary called quarter-over-quarter -- significant or drop. again, But seem

wondering I'm color can So you little if give on... a just more

Walter Scheller

Sure.

I'm -- sorry. things the of One

even delivery longwall phase moves, get longwall or the short did, we in One to were moves, at longwall happening know for moves of when when for one that's do X -- if if have mine the this X. down beginning of things we we'd those know year shields didn't the time. to walking additional X-day And X- able to we just the at the would for set Mine We to We just this basically didn't get very we year. of Mine we other. is budgeted be we would move from reduce able

cutting moves year. of several production thousand additional X longwall with tons hundred So the up for

opportunity. same that move The does have Mine X not

our us XXX,XXX some lower intend run to work a at time. the will to some on of on us period a it'll much full-blown that over will rate for a well tons. cost We infrastructure be require like do of skips that So and move,

these So it's year. what all There's things nothing wrong. done that. mines again, pretty like really we've we've pushed hard just And is

You see some set done ourselves up forward. work to we really success for want to going get

Operator

question Clarksons. Daniel And comes of our Scott next from today

Daniel Scott

David's follow-up question me Let a quarter. on solid very on

new tons Or X.X would of and something did that two that? -- we potential vacations that in for about million and with quarter imagine, signal moves X rate You summer X? the whatnot. a there Does kind a longwall is that I Mines with, think prevent should run

Walter Scheller

for moves because into longwall future. indefinitely continue two X sets have moves And what of we low panel, either. do one and X: relatively following didn't moving is shields, the Mine we where can have really set the different will we again, we'll not -- relatively be seam; the not is whether have that and it high on longwall full-blown to extra for able one moves. longwall zero-day Well, set Because to one for all of on of shields depends or in operate their is seam; we're longwalls

you So be Mine assume going can't X zero-day forward. just at everything will that moves

was And again, I think hard, long. all what we pushed we pretty year did

got that know done. like up, and some got coming things holidays we've we some Now we'd get to we've

run get we'll intend mines done, is as to fourth we those the So practical we in and quarter. hard as think the

we So way I plan the that's think doing. on

Daniel Scott

about Is -- X helpful. year? you did Pretty that XXX sure just right. a end on -- sure you said roughly couple ideal. quarter -- you it's I of Where that of to when And exactly kind I'm there sales see of inventories. million but set not right Is All for that production? million do market up help ago you're think you weakness? I about is now, by quarters X.X inventories, fourth yourselves where versus was at Very sold, XXX,XXX of tons produced, you think

Walter Scheller

it mines do a is expectation. -- -- sales. X bit the we very quarter a do don't wasn't think coal quarter of the inventory I probably I have achieve, we sales production do three, have a market inventory. quarter. the that it's work gives to if We fourth about to have more But so the in both. probably pleased with think It X realistic I sell we're And and quite we allows to still the Well, at weakness. the into did us the work think said more the we performance I have anticipated little I the -- think third strong down coal did in opportunity going us -- the fourth the that little and

customers us. well performed for coal. actually customers their Our our -- took We very

Daniel Scott

but one can a Okay. longwall, then a the quick, a X production Mines Great. about could kind layer SEC is, the longwall, -- be of comments next be reserve not And the and that X just here. of follow-up real your When XX your years? reality environment just and think your in compare life on what could over in what for I and filings outlook Blue kind the to for how the that you could Creek X, second high-commodity

Walter Scheller

Blue XX-plus you say years, less Mine lives let's X, I two for to in something the little operations Creek. longwall, a longwall you'd look there. like XX, longwall, XX in reserve at years. it time be mine range. XX to well XX to single And is probably in, at the Mine little -- you years all three that's know, in we Well, so. XX- you're but probably maybe of range, us, don't I'd XX would look -- A basically, a half, to X over that it by it cut put closer running and the than wouldn't bit, expect to XX that. at that, one capacity longwalls down in had with it One XX-year again, somewhere need say drop Two to you a dropped or if a together

Operator

Bank. of Terry Chris question Deutsche next Our from comes

Christopher Terry

from couple of A me. questions

the on determined as it, it Creek and next early on bottom-up project a the of completely economics? the market-driven you well? following just look on maybe decision Or at a point. somewhat sort you how starting approach of size as year see Blue on Is how is that Just

Walter Scheller

from think it long-term I But type at the it's a started we what -- view it we that as but -- vol be both, that's long a pricing we high will produced bottoms coal there. Well, do coal A for looked I because up. think of

So going a will believe up. forward the keeping vol consideration next XX with But what for years. naturally, be doing high-volume high the we we're A, in bottom's we're the market XX,

Christopher Terry

just is that of renewing Okay. just just practice came shelf then the could terms through, that? that if registration in And you routine some of wondered give comments. I

Dale Boyles

That only had with out Yes. was before. housekeeping we routine allowed S-X before the or investors provide maintenance The there really. to just do us that had we block trades, to where equity

really housekeeping that had So this shelf there. given universal broad, us is out just a

little we because goes time lower that So to in the of review the us effective just it immediately. And sometime to weekly some it delay quicker that access wanted a market so a a plus, already we're if cost. capital filer, And market at in gives future. SEC future, wouldn't bit the

So just really housekeeping.

Christopher Terry

more market, the market. by on restrictions year? might Asia. don't end the overall Okay. appreciate year? think as any resolution much any the China comments looking that it just I a just overall you clearing for And on year? sell the for next some the into event import the in Is do the when that terms last of Or me, could market, Early Just happen view But next in at one that? you of get on key we

Walter Scheller

quarter first Well, more -- be expectation our it clarity. is the next be we'll I have In year, think year. early it'll will next

it tighter. they be of I tight, just the if surprise think the surprising to stayed year, -- now wouldn't if from not end as

Operator

Instructions]. from [Operator question Pipes of FBR. B. next comes Lucas Today's Riley

Lucas Pipes

I for Walt, higher of you and guidance. thought the just towards that I heard is sales? on quick both Does end a you -- follow-up QX. would that say be production

Walter Scheller

be if year opportunity And still hard the perspective, $XXX met opportunity first take were would ton, the for months mines mines frankly, year. in coal market X running and see presents advantage of continue we'd us to as the our also a as I as what the ready as Yes, them these get could our the be that. It's itself pricing of did presents next from lull we expect ready we gives we a run to the just and to prices itself. that. And as strong

Lucas Pipes

That's very helpful.

I the X.X production million on the So tons. sales think X.X million end on high be side, about and would tons, side, the

So those are those a maybe the good kind place in on as of model? be edging up to

Walter Scheller

so. I would Yes, assume

Lucas Pipes

bigger Creek. build That's of Blue sector about relates do very Or pretty buying back of continue The How do you risky another undemanding, about How towards that's more euphemism. this than to are question an your as versus it process helpful. about a be -- strategy And in allocating think and kind valuations buy? then think to kind the in pretty context? capital maybe that's development inherently do think out buying stock? How you mine you producing? this already there

Dale Boyles

buybacks. on on our just right, dividends, the you we're buybacks. more though the we of you bit focused we've focus on think Others -- both are even special to tended haven't worked. as Well, I little if you and special look buybacks look really sector, as Well, a those mean well doing returns, at strictly price, just when look stock at I look overall. it at across

would down other is XX%, of at "Well, you think XX%. companies those coal I look the some and price say,

is the and valuation. don't we what trade low So on the really this we we're others some to performing, we're continue doing. rewarded see buyback focus perform. doesn't of a working?" we So be Yet can't such getting doing. are I And at -- to sector But things for seem

capital at that think at allocation. So look continually we I

million $XXX and a in and growth on NPV, today. $XXX almost returns that's that opportunity, is in large we years yes, the are starting project to $XXX a there takes That's where the pretty there. environment, And a that basically XX% a project We while, risk X that's price IRR. provide huge developing construct at million. and spend information And are on that

us. I are acquisition as are before, we in well, of options. those fore yes we've all for at all looking probably said those, But just mean, the kind and So opportunities different kind -- less of balance -- to the we try

of compare high and high-quality a get to is Blue coal the because just because there you lot we Creek there. There's of of go profile have type and to so Just out return not opportunities the that to have. add-on, that that

Lucas Pipes

very very, helpful of That's to one color. I going I'll broader that. back kind appreciate last sneak And in, market. the one

X selling you of customers I'm the Is half Is the from shipments seeing end of any said Europe, China? in up the ex Brazil wouldn't second are much by think you -- ago, to region? in I you are kind of What very pretty well, you still And what be be weak? Europe months what's different demand wondering, Would year. regions? in Asia feel terms holding appreciated. your spot

Walter Scheller

Well, to in of expect signs I really, comments, we see that little What the and quarter we third we some same did I maybe Europe saw move everywhere, just tons is quarter. we into there. into things would weakness that the we continue see said Any We have in and have, in Asia some spot a those think as saw here strengthening China. sales general the weakness. fourth my normally except bit, changing

where year this for the that year our automotive But is I think be next most may we expectation see picking regions. we'll sector bit. continue to for back performance about think I up a did

Operator

Clarksons. And follow-up today Scott is a at our from Daniel next question

Daniel Scott

Real quick, from a returns. just on capital to ago of nail couple what down said you there you minutes

route. guys clearly gone have dividend the You special

construction program whether forward continue Blue the say, understanding $XXX can it's that it's your but about peers. think number, -- that to Creek, Your with a you speak we Board million outperformed stock you capital final during Creek? would when that -- or of the lower And has has Blue return whether moving

Dale Boyles

that we've this changed the were to if Blue with been we working move that we as to in right in forward policy make expect don't change. our policy decision has past. And at that Well, nothing policy point, now, Creek, to

Now opportunity. that if people of investors clearly, does, of dividends, special and that understand of would or we there's that then at kind group it announce lot the time. group we a that And a the also prefer is cash -- like there that likes a the growth looks our buybacks. But investors

belt tool our all the to So to in stockholders. satisfy use we're our going tools

not a And you that, we to don't forms. returns, shareholders current So give anything to percentage policy. cash, that than the set no, but turn will we're be our we're capital I have to excess say, extent or other the going to returning in to to various like off allocation capital there's sticking

Operator

And remarks. to gentlemen, this over session. back question-and-answer concludes team ladies the conference I'd final like and any for turn to the the management

Walter Scheller

call our afternoon. Coal. your interest Thank appreciate for Met concludes We today. this in Warrior joining us you again That

Operator

has attending Thank today's thank you, now all for and sir. concluded, conference presentation. you we Today's

day. your have You may wonderful a now disconnect lines, and

Warrior Met Coal (HCC) 31 Oct 192019 Q3 Earnings call transcript