10q10k10q10k.net

What changed in Alpha Metallurgical Resources, Inc.'s 10-K — 2022 vs 2023

vs

Paragraph-level year-over-year comparison of Alpha Metallurgical Resources, Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+477 added−459 removedSource: 10-K (2023-12-31) vs 10-K (2022-12-31)

Top changes in Alpha Metallurgical Resources, Inc.'s 2023 10-K

477 paragraphs added · 459 removed · 351 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

119 edited+44 added−15 removed209 unchanged
Biggest changePreparation Plants, Loadouts, and Docks The following is a summary of information regarding our active preparation plants as of December 31, 2022 : Preparation Plant Year Constructed/Upgraded Processing Capacity (Tons per hour) Utilization % Power Source Met Bandmill 2010 1,200 69% American Electric Power Kepler 1967 900 49% American Electric Power Kingston 1974/2001 700 59% American Electric Power Marfork 1994/2019 2,400 58% American Electric Power McClure 1979/2019 1,100 55% American Electric Power Toms Creek 1980/2004 1,100 37% American Electric Power Power Mountain 1985/2010 1,200 30% American Electric Power All Other Mammoth 1950/2008 1,200 26% American Electric Power The following is a summary of information regarding our active loadouts and docks as of December 31, 2022 : 9 Table of Contents Loadout/Dock Year Constructed Loading Capacity (Tons per hour) Pax Loadout 2006 3,500 Feats Loadout 1975 3,500 Marmet Dock 1986 1,600 Export Terminal The following is a summary of information regarding DTA (in which we own a 65% interest) as of December 31, 2022: Export Terminal Year Constructed Loading Capacity (Tons per hour) Storage Capacity (Net tons) DTA 1984 Up to 6,500 1.7 million Coal Mining Techniques We use four different mining techniques to extract coal from the ground: room-and-pillar mining, truck-and-shovel mining and truck and front-end loader mining, contour mining, and highwall mining.
Biggest changeThe following is a summary of information regarding our active loadouts and docks as of December 31, 2023 : 9 Table of Contents Loadout/Dock Year Constructed Loading Capacity (Tons per hour) Pax Loadout 2006 3,500 Feats Loadout 1975 3,500 Marmet Dock 1986 1,600 Export Terminal The following is a summary of information regarding DTA (in which we own a 65% interest) as of December 31, 2023: Export Terminal Year Constructed Loading Capacity (Tons per hour) Storage Capacity (Net tons) DTA 1984 Up to 6,500 1.7 million Coal Mining Techniques We use four different mining techniques to extract coal from the ground: room-and-pillar mining, truck-and-shovel mining and truck and front-end loader mining, contour mining, and highwall mining.
On May 29, 2020, certain of our subsidiaries (Contura Coal West, LLC and Contura Wyoming Land, LLC), one of which held the mining permits 7 Table of Contents for the Western Mines, were merged with certain subsidiaries of ESM to become wholly-owned subsidiaries of ESM and to complete the permit transfer process in connection with the ESM Transaction.
On May 29, 2020, certain of our subsidiaries 7 Table of Contents (Contura Coal West, LLC and Contura Wyoming Land, LLC), one of which held the mining permits for the Western Mines, were merged with certain subsidiaries of ESM to become wholly-owned subsidiaries of ESM and to complete the permit transfer process in connection with the ESM Transaction.
Other states will be required to develop new plans for areas that were previously in “attainment,” but do not meet the revised standards. On December 7, 2020, the EPA announced the agency’s final 17 Table of Contents decision to retain the existing National Ambient Air Quality Standards for particulate matter (PM) set by the Obama-Biden Administrations without changes.
Other states will be required to develop new plans for areas that were previously in “attainment,” but do not meet the revised standards. On December 7, 2020, the EPA announced the agency’s final 17 Table of Contents decision to retain the existing National Ambient Air Quality Standards for particulate matter set by the Obama-Biden Administrations without changes.
Future legislation, regulations or orders, as well as future interpretations and more rigorous enforcement of existing laws, regulations or orders, may require substantial increases in equipment and operating costs to us and delays, interruptions, or a termination of operations, the extent of which we cannot predict. In particular, the U.S.
Future legislation, regulations or orders, as well as future interpretations and more rigorous enforcement of existing laws, regulations or orders, may require substantial increases in equipment and operating costs to us and delays, interruptions, or a termination of operations, the likelihood or extent of which we cannot predict. In particular, the U.S.
Coal Industry Retiree Health Benefit Act of 1992 Unlike many companies in the coal business, we do not have any liability under the Coal Industry Retiree Health Benefit Act of 1992 (the “Coal Act”), which requires the payment of substantial sums to provide lifetime health benefits to union-represented miners (and their dependents) who retired before 1992, because liabilities under the Coal Act that had been imposed on Alpha Natural Resources, Inc. were settled in the bankruptcy process. 25 Table of Contents GLOSSARY Acquisition.
Coal Industry Retiree Health Benefit Act of 1992 Unlike many companies in the coal business, we do not have any liability under the Coal Industry Retiree Health Benefit Act of 1992 (the “Coal Act”), which requires the payment of substantial sums to provide lifetime health benefits to union-represented miners (and their dependents) who retired before 1992, because liabilities under the Coal Act that had been imposed on Alpha Natural Resources, Inc. were settled in the bankruptcy process. 26 Table of Contents GLOSSARY Acquisition.
Direct impacts on coal mining and processing operations include Clean Air Act permitting requirements and emission control requirements relating to particulate matter, which may include controlling fugitive dust.
Direct impacts on coal mining and processing operations include Clean Air Act permitting requirements and emission control requirements relating to particulate matter (“PM”), which may include controlling fugitive dust.
(2) Equipment: S = Shovel/Excavator/Loader/Trucks; CM = Continuous Miner; H = Highwall Miner (3) CSX = CSX Transportation; NS = Norfolk Southern Railway Company (4) Tons of coal purchased from third parties and not processed are not included. (5) Net book value of property, plant and equipment and owned and leased mineral rights as of December 31, 2022.
(2) Equipment: S = Shovel/Excavator/Loader/Trucks; CM = Continuous Miner; H = Highwall Miner (3) CSX = CSX Transportation; NS = Norfolk Southern Railway Company (4) Tons of coal purchased from third parties and not processed are not included. (5) Net book value of property, plant and equipment and owned and leased mineral rights as of December 31, 2023.
Although this agreement does not create any binding obligations for nations to limit their GHG emissions, it does include pledges to voluntarily limit or reduce future emissions. On June 1, 2017, the Trump administration announced that the U.S. will withdraw from the Paris Agreement. This withdrawal formally took effect on November 4, 2020.
Although this agreement does not create any binding obligations for nations to limit their GHG emissions, it does include pledges to voluntarily limit or reduce future emissions. On June 1, 2017, the Trump administration announced that the U.S. would withdraw from the Paris Agreement. This withdrawal formally took effect on November 4, 2020.
With customers across the globe, high-quality reserves and significant port capacity, we reliably supply metallurgical coal products to the steel industry. We operate highly productive, cost-competitive coal mines across the CAPP coal basin. Our portfolio of mining operations consists of 15 underground mines, nine surface mines and eight coal preparation plants.
With customers across the globe, high-quality reserves and significant port capacity, we reliably supply metallurgical coal products to the steel industry. We operate highly productive, cost-competitive coal mines across the CAPP coal basin. Our portfolio of mining operations consists of 15 underground mines, seven surface mines and nine coal preparation plants.
On December 30, 2022, the EPA and COE announced the final Revised Definition of Waters of the United States rule, which reasserts the agencies’ CWA jurisdiction over wetlands and certain ephemeral streams. On January 18, 2023, the rule was published in the Federal Register. The rule will be effective on March 20, 2023.
On December 30, 2022, the EPA and COE announced the final Revised Definition of Waters of the United States rule, which reasserts the agencies’ CWA jurisdiction over wetlands and certain ephemeral streams. On January 18, 2023, the rule was published in the Federal Register. The rule was effective on March 20, 2023.
The standard is based on the performance of a supercritical pulverized coal boiler implementing partial carbon capture and storage (“CCS”). Modified and reconstructed fossil fuel fired steam generating units 20 Table of Contents must implement the most efficient generation achievable through a combination of best operating practices and equipment upgrades, to meet an emission standard consistent with best historical performance.
The standard is based on the performance of a supercritical pulverized coal boiler implementing partial carbon capture and storage (“CCS”). Modified and reconstructed fossil fuel fired steam generating units must implement the most efficient generation achievable through a combination of best operating practices and equipment upgrades, to meet an emission standard consistent with best historical performance.
These coal consumption patterns are influenced by many factors beyond our control, including the demand for electricity, which is significantly dependent upon summer and winter temperatures, and commercial 12 Table of Contents and industrial outputs in the U.S., environmental and other government regulations, technological developments and the location, availability, quality and price of competing sources of power.
These coal consumption patterns are influenced by many factors beyond our control, including the demand for electricity, which is significantly dependent upon summer and winter temperatures, and commercial and industrial outputs in the U.S., environmental and other government regulations, technological developments and the location, availability, quality and price of competing sources of power.
A number of states have enacted legislative mandates requiring electricity suppliers to use renewable energy sources to generate a certain percentage of power. For example, on September 10, 2018, California adopted a law that requires all electricity consumed by the state to be generated from renewable sources such as solar, wind and hydropower by 2045.
A number of states have enacted legislative 21 Table of Contents mandates requiring electricity suppliers to use renewable energy sources to generate a certain percentage of power. For example, on September 10, 2018, California adopted a law that requires all electricity consumed by the state to be generated from renewable sources such as solar, wind and hydropower by 2045.
As the mine permit transfer process relating to our sale of the Western Assets to Blackjewel had not been completed prior to Blackjewel’s and certain of its affiliates’ filing petitions for relief under chapter 11 of title 11 of the U.S. Code (the “Bankruptcy Code”), we remained the permitholder in good standing for both mines.
As the mine permit transfer process relating to our sale of the Western Assets to Blackjewel had not been completed prior to Blackjewel’s and certain of its affiliates’ filing petitions for relief under chapter 11 of title 11 of the U.S. Code (the “Bankruptcy Code”), we remained the permitholder in good standing for both 15 Table of Contents mines.
The economically mineable part of an indicated and, in some cases, a measured coal resource. Production stage property. A property with material extraction of coal reserves. Productivity. As used in this report, refers to clean metric tons of coal produced per underground man hour worked, as published by the MSHA. Proven mineral reserve.
The economically mineable part of an indicated and, in some cases, a measured coal resource. Production stage property. A property with material extraction of coal reserves. Productivity. As used in this report, refers to clean metric tons of coal produced per underground man hour worked, as published by the MSHA. 28 Table of Contents Proven mineral reserve.
Coal used primarily to generate electricity and to make coke for the steel industry with a heat value ranging between 10,500 and 15,500 BTU’s per pound. British Thermal Unit or BTU.
Coal used primarily to generate electricity and to make coke for the steel industry with a heat value ranging between 10,500 and 15,500 BTUs per pound. British Thermal Unit or BTU.
The process commonly includes “recontouring” or reshaping the land to its approximate original appearance, restoring topsoil and planting native grass and ground covers. Reclamation operations are usually under way before the mining of a particular site is completed. Reclamation is closely regulated by both state and federal law. 27 Table of Contents Roof.
The process commonly includes “recontouring” or reshaping the land to its approximate original appearance, restoring topsoil and planting native grass and ground covers. Reclamation operations are usually under way before the mining of a particular site is completed. Reclamation is closely regulated by both state and federal law. Roof.
For instance, waters that states have designated as impaired (i.e., as not meeting present water quality standards) are subject to Total Maximum Daily Load regulations, which may lead to the adoption of more stringent discharge standards for our coal mines and could require more costly treatment.
For 22 Table of Contents instance, waters that states have designated as impaired (i.e., as not meeting present water quality standards) are subject to Total Maximum Daily Load regulations, which may lead to the adoption of more stringent discharge standards for our coal mines and could require more costly treatment.
In connection with ESM’s acquisition of the Western Assets from Blackjewel, on October 18, 2019, we and ESM 15 Table of Contents finalized an agreement that provided, among other items, for the eventual transfer of the Western Asset permits from us to ESM and replacement by ESM of our surety bonds associated with these properties.
In connection with ESM’s acquisition of the Western Assets from Blackjewel, on October 18, 2019, we and ESM finalized an agreement that provided, among other items, for the eventual transfer of the Western Asset permits from us to ESM and replacement by ESM of our surety bonds associated with these properties.
Regulatory authorities have considerable discretion in the timing of the permit issuance 16 Table of Contents and the public and other agencies have rights to comment on and otherwise engage in the permitting process, including through intervention in the courts. The Abandoned Mine Land Fund, which is part of SMCRA, requires a fee on all coal produced.
Regulatory authorities have considerable discretion in the timing of the permit issuance and the public and other agencies have rights to comment on and otherwise engage in the permitting process, including through intervention in the courts. The Abandoned Mine Land Fund, which is part of SMCRA, requires a fee on all coal produced.
The proposed rule would update the standards coal operators must meet to self-insure, modernize and streamline the application process and fix the amount of security applicants must post. The proposed rule would also clarify acceptable forms of security and establish an appeals process. Comments on the proposed rule are due no later than March 20, 2023.
The proposed rule would update the standards coal operators must meet to self-insure, modernize and streamline the application process and fix the amount of security applicants must post. The proposed rule would also clarify acceptable forms of security and establish an appeals process. Comments on the proposed rule were originally due no later than March 20, 2023.
Public notice of the proposed permit is given, which also provides for a comment period before a permit can be issued. Some SMCRA mine permits take over a year to prepare, depending on the size and complexity of the mine and may take months or even years to be issued.
Public notice of the proposed permit is given, which also provides for a comment period before a permit can be issued. Some SMCRA mine permits take over a year to prepare, depending on the size and complexity of the mine and may 16 Table of Contents take months or even years to be issued.
Installation of additional emission control measures will make it more costly to operate coal-fired power plants, potentially making coal a less attractive fuel. On February 26, 2019, the EPA published a final rule amending the NOx SIP Call regulations to allow states to establish alternative monitoring and reporting requirements for certain sources. • Cross-State Air Pollution Rule.
Installation of additional emission control measures will make it more costly to operate coal-fired power plants, potentially making coal a less attractive fuel. On February 26, 2019, the EPA published a final rule amending the NOx SIP Call regulations to allow states to establish alternative monitoring and reporting requirements for certain sources.
Regulation of mercury emissions by the EPA (and in particular, the reconsideration by the current EPA of any rulemaking relating to the MATS rule during the prior presidential administration), states, Congress, or pursuant to an international treaty may further decrease the demand for coal.
Regulation of mercury emissions by the EPA (and in particular, the reconsideration by the current EPA of 19 Table of Contents any rulemaking relating to the MATS rule during the prior presidential administration), states, Congress, or pursuant to an international treaty may further decrease the demand for coal.
Most state hazardous waste laws do not regulate CCR as hazardous wastes. The EPA also concluded that beneficial uses of CCR, other than for mine filling, pose no significant risk and no additional national regulations of such 23 Table of Contents beneficial uses are needed.
Most state hazardous waste laws do not regulate CCR as hazardous wastes. The EPA also concluded that beneficial uses of CCR, other than for mine filling, pose no significant risk and no additional national regulations of such beneficial uses are needed.
B quality met coal from the Upper Chilton, Upper Cedar Grove, and No. 2 Gas coal seams. Mine lives range from 4 to 17 years. Coal is processed at the Bandmill Preparation Plant and loaded onto CSX rail for delivery to customers. Kepler – Kepler is a mining complex located in Wyoming, McDowell, and Raleigh counties, West Virginia.
B quality met coal from the Upper Chilton, Upper Cedar Grove, and No. 2 Gas coal seams. Mine lives range from 5 to 16 years. Coal is processed at the Bandmill Preparation Plant and loaded onto CSX rail for delivery to customers. Kepler – Kepler is a mining complex located in Wyoming, McDowell, and Raleigh counties, West Virginia.
In recognition of the interdependence 13 Table of Contents between safety and operations, our “Safe Production” process promotes the effective utilization of procedures, developing safety action plans at each operating group and sharing of best practices, safety alerts and lessons learned across the entire organization.
In recognition of the interdependence between safety and operations, our “Safe Production” process promotes the effective utilization of procedures, developing safety action plans at each operating group and sharing of best practices, safety alerts and lessons learned across the entire organization.
In 2022, we achieved an overall Non-fatal days lost (“NFDL”) safety incident rate that was 54% better than the U.S. industry average NFDL safety incident rate per 200,000 hours worked. The industry rate is based on available data for the first three quarters of 2022 and the Alpha rate reflects full year 2022.
In 2023, we achieved an overall Non-fatal days lost (“NFDL”) safety incident rate that was 41% better than the U.S. industry average NFDL safety incident rate per 200,000 hours worked. The industry rate is based on available data for the first three quarters of 2023 and the Alpha rate reflects full year 2023.
Every employee has a voice in the safety process at each of our mines and other operating sites. Our behavior-based safety process empowers employees to engage in the elimination of at-risk behaviors in the workplace and in incident prevention and continuous improvement.
Every employee has a voice in the safety process at each of our mines 13 Table of Contents and other operating sites. Our behavior-based safety process empowers employees to engage in the elimination of at-risk behaviors in the workplace and in incident prevention and continuous improvement.
The Federal Mine Safety and Health Act of 1977 (“Mine Act”) significantly expanded the enforcement of safety and health standards and imposed safety and health standards on all aspects of mining operations. All of the states in which we operate also have state programs for mine safety and health regulation and enforcement.
The Federal Mine Safety and Health Act of 1977 (“Mine Act”) significantly expanded the enforcement of safety and health standards and imposed safety and health standards on all aspects of mining operations. All of the states in which we 25 Table of Contents operate also have state programs for mine safety and health regulation and enforcement.
Employee Training and Development At Alpha, we strive to maintain a diverse and inclusive workforce and a positive culture where employees can contribute their best work, take pride in doing the right thing, and work to improve and strengthen the organization.
Employee Training and Development At Alpha, we strive to maintain a positive culture where employees can contribute their best work, take pride in doing the right thing, and work to improve and strengthen the organization.
Coal from the surface mines may be processed through the Kingston Preparation Plant, trucked to and processed through the Mammoth Plant, or trucked directly to the Pax Loadout or Marmet Dock for delivery to customers. Marfork – Marfork is a mining complex located in Raleigh, Boone, Kanawha, and Fayette counties, West Virginia.
Coal from the 8 Table of Contents surface mines may be processed through the Kingston Preparation Plant, trucked to and processed through the Mammoth Plant, or trucked directly to the Pax Loadout or Marmet Dock for delivery to customers. Marfork – Marfork is a mining complex located in Raleigh, Boone, Kanawha, and Fayette counties, West Virginia.
During the years ended December 31, 2022 and 2021, approximately 54% and 76%, respectively, of our thermal coal sales volume were delivered pursuant to long-term contracts. Distribution and Transportation Coal consumed domestically is usually sold at the mine and transportation costs are normally borne by the purchaser.
During the years ended December 31, 2023 and 2022, approximately 21% and 54%, respectively, of our thermal coal sales volume were delivered pursuant to long-term contracts. Distribution and Transportation Coal consumed domestically is usually sold at the mine and transportation costs are normally borne by the purchaser.
Nuclear Regulatory Authority or the state agency that has been delegated this authority. 24 Table of Contents Mine Safety and Health Stringent health and safety standards have been in effect since Congress enacted the Coal Mine Health and Safety Act of 1969.
Nuclear Regulatory Authority or the state agency that has been delegated this authority. Mine Safety and Health Stringent health and safety standards have been in effect since Congress enacted the Coal Mine Health and Safety Act of 1969.
That part of a coal resource for which quantity and quality are estimated on the basis of adequate geological evidence and sampling sufficient to establish geological and quality continuity with reasonable certainty. 26 Table of Contents Inferred coal resource.
That part of a coal resource for which quantity and quality are estimated on the basis of adequate geological evidence and sampling sufficient to establish geological and quality continuity with reasonable certainty. Inferred coal resource.
A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 1 to 19 years. Coal from the underground mines is processed at the Marfork Preparation Plant and loaded onto the CSX rail for delivery to customers.
A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 2 to 17 years. Coal from the underground mines is processed at the Marfork Preparation Plant and loaded onto the CSX rail for delivery to customers.
As of December 31, 2022, we had approximately 3,500 employees working at our mining operations across Central Appalachia in Virginia and West Virginia, while the remainder of our personnel were employed at our headquarters in Bristol, Tennessee, in Julian, West Virginia, or at other administrative offices throughout the region.
As of December 31, 2023, we had approximately 3,900 employees working at our mining operations across Central Appalachia in Virginia and West Virginia, while the remainder of our personnel were employed at our headquarters in Bristol, Tennessee, in Julian, West Virginia, or at other administrative offices throughout the region.
As of December 31, 2022 and 2021, our posted third-party surety bond amount in all states where we operate was approximately $165.6 million and $176.1 million, respectively, which was used to primarily secure the performance of our reclamation and lease obligations.
As of December 31, 2023 and 2022, our posted third-party surety bond amount in all states where we operate was approximately $177.1 million and $165.6 million, respectively, which was used to primarily secure the performance of our reclamation and lease obligations.
Circuit in May 2014. In that case, the Court denied a rulemaking petition citing agency discretion and budgetary restrictions, and ruled that the EPA has reasonable discretion to carry out its delegated responsibilities, which include determining the timing and relative priority of its regulatory agenda. In July 2014, the D.C.
In that case, the Court denied a rulemaking petition citing agency discretion and budgetary restrictions, and ruled that the EPA has reasonable discretion to carry out its delegated responsibilities, which include determining the timing and relative priority of its regulatory agenda. In July 2014, the D.C. Circuit denied a petition seeking a rehearing of the case en banc.
The Clean Water Rule was the subject of extensive legal challenges, injunctions and administrative action, and was formally repealed in December 22 Table of Contents 2019. After the U.S.
The Clean Water Rule was the subject of extensive legal challenges, injunctions and administrative action, and was formally repealed in December 2019. After the U.S.
A and Mid-Vol. quality met coal from the Upper Banner, Lower Banner, and Jawbone coal seams. The complex also has three active surface mines which produce primarily High-Vol. A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 1 to 36 years.
A and Mid-Vol. quality met coal from the Upper Banner, Lower Banner, and Jawbone coal seams. The complex also has two active surface mines which produce primarily High-Vol. A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 2 to 27 years.
As of December 31, 2022, approximately 41% of our total workforce had at least ten years of service with our Company, while approximately 28% had fifteen or more years of service with our Company. Employee Compensation and Benefits We require a skilled workforce with mining experience and proficiency as well as qualified managers and supervisors to run our business.
As of December 31, 2023, approximately 37% of our total workforce had at least ten years of service with our Company, while approximately 25% had fifteen or more years of service with our Company. Employee Compensation and Benefits We require a skilled workforce with mining experience and proficiency as well as qualified managers and supervisors to run our business.
A coking coal used in steel production with a volatile matter content between 31% and 34.5% on a dry basis. High-Vol B. A coking coal used in steel production with a volatile matter content between 34.5% and 38% on a dry basis. Indicated coal resource.
A property with no disclosed coal reserves. High-Vol A. A coking coal used in steel production with a volatile matter content between 31% and 34.5% on a dry basis. High-Vol B. A coking coal used in steel production with a volatile matter content between 34.5% and 38% on a dry basis. Indicated coal resource.
Refer to Note 15 to the Consolidated Financial Statements for further information on our acquisition-related obligations. On December 8, 2017, we closed a transaction with Blackjewel to sell our Western Mines located in the Powder River Basin (“PRB”), Wyoming, along with related coal reserves, equipment, infrastructure and other real properties.
Refer to Note 14 to the Consolidated Financial Statements for further information on our acquisition-related obligations. On December 8, 2017, we closed a transaction with Blackjewel to sell our Western Mines located in the PRB, Wyoming, along with related coal reserves, equipment, infrastructure and other real properties.
(6) Proven and probable reserves as of December 31, 2022. Refer to Item 2. Properties for further information. Feasibility/Pre-feasibility studies are not considered cost beneficial for Power Mountain and Mammoth complexes. Aracoma – Aracoma is a mining complex located in Logan, Mingo, and Boone counties, West Virginia. The complex has four active underground mines which produce primarily High-Vol.
(6) Proven and probable reserves as of December 31, 2023. Refer to Item 2. Properties for further information. Feasibility/Pre-feasibility study not considered cost beneficial for Power Mountain complex. Aracoma – Aracoma is a mining complex located in Logan, Mingo, and Boone counties, West Virginia. The complex has three active underground mines which produce primarily High-Vol.
For states to meet their requirements under the Final CSAPR Update rule, a number of coal-fired electric generating units will likely need to be retired, rather than retrofitted with the necessary emission control technologies, reducing demand for thermal coal.
The court directed the EPA to revise the rule to address this failure. For states to meet their requirements under the Final CSAPR Update rule, a number of coal-fired electric generating units will likely need to be retired, rather than retrofitted with the necessary emission control technologies, reducing demand for thermal coal.
A hard, dry carbon substance produced by heating coal to a very high temperature in the absence of air. Coke is used in the manufacture of iron and steel. Its production results in a number of useful byproducts. Coking coal. Coal used to produce coke, the primary source of carbon used in steelmaking. Development stage property.
A hard, dry carbon substance produced by heating coal to a very high temperature in the absence of air. Coke is used in the manufacture of iron and steel. Its production results in a number of useful byproducts. Coking coal. Coal used to produce coke, the primary source of carbon used in steelmaking. Cumberland Back-to-Back Coal Supply Agreement.
As posted on our Company website, several of our mine operations have been recognized on numerous occasions for outstanding performance and have received several awards in the areas of safety and mine rescue. In 2022, Alpha mine rescue teams won a national championship along with several other first-place awards in both overall competition honors and technical category titles.
As posted on our Company website, several of our mine operations have been recognized on numerous occasions for outstanding performance and have received several awards in the areas of safety and mine rescue. In 2023, Alpha mine rescue teams won two overall grand champion awards along with several other first-place awards in both overall competition honors and technical category titles.
Coal is processed at the Mammoth Preparation Plant and loaded onto NS rail for delivery to customers. Equipment Our plant and equipment, including underground and surface equipment, are of varying age, in good operational condition, and are regularly maintained and serviced by a dedicated maintenance workforce and third-party suppliers, including scheduled preventive maintenance.
Coal from the mine is processed at the Chess Processing Plant and loaded onto CSX rail for delivery to customers. Equipment Our plant and equipment, including underground and surface equipment, are of varying age, in good operational condition, and are regularly maintained and serviced by a dedicated maintenance workforce and third-party suppliers, including scheduled preventive maintenance.
A property with disclosed coal reserves but no material extraction. ESG. Environmental, social and governance sustainability criteria. ESM Transaction. The sale by Blackjewel L.L.C. (“Blackjewel”) of the Eagle Butte and Belle Ayr mines located in Wyoming (the “Western Mines” or “Western Assets”) to Eagle Specialty Materials (“ESM”), an affiliate of FM Coal, LLC on October 18, 2019.
ESG. Environmental, social and governance sustainability criteria. ESM Transaction. The sale by Blackjewel L.L.C. (“Blackjewel”) of the Eagle Butte and Belle Ayr mines located in Wyoming (the “Western Mines” or “Western Assets”) to Eagle Specialty Materials (“ESM”), an affiliate of FM Coal, LLC on October 18, 2019.
We entered into various settlement agreements with the Debtors, their bankruptcy successor, and third parties as part of the Debtors’ bankruptcy reorganization process. We assumed acquisition-related obligations through those settlement agreements, which became effective on July 26, 2016, the effective date of the Debtors’ Plan of Reorganization.
We entered into various settlement agreements with the Debtors, their bankruptcy successor, and third parties as part of the Debtors’ bankruptcy reorganization process. We assumed acquisition-related obligations through those settlement agreements, which became effective on July 26, 2016, the effective date of the Debtors’ Plan of Reorganization. As of December 31, 2023, we did not have any remaining acquisition-related obligations.
Any longer-term agreement would generally have a renegotiation of price each subsequent contract year. Export sales are generally made on an annual, quarterly, or spot cargo basis. Annual and quarterly agreements typically have market-indexed pricing that changes with the market monthly.
Domestic met customers typically enter into one-year agreements with a fixed price for the entire contract year. Any longer-term agreement would generally have a renegotiation of price each subsequent contract year. Export sales are generally made on an annual, quarterly, or spot cargo basis. Annual and quarterly agreements typically have market-indexed pricing that changes with the market monthly.
For the years ended December 31, 2022 and 2021, we recorded $2.6 million and $5.7 million, respectively, of expense related to this excise tax.
For the years ended December 31, 2023 and 2022, we recorded $4.6 million and $2.6 million, respectively, of expense related to this excise tax.
Refer to Notes 23 and 24 to the Consolidated Financial Statements for geographical information about our coal sales and additional segment information. We have a substantial reserve base of 336.7 million tons of proven and probable reserves as of December 31, 2022.
Refer to Notes 22 and 23 to the Consolidated Financial Statements for geographical information about our coal sales and additional segment information. We have a substantial reserve base of 316.0 million tons of proven and probable reserves as of December 31, 2023.
However, our operations could be affected if the attainment status of the areas in which we operate changes in the future. A suit by industry challenging the EPA’s 2015 Ozone NAAQS ( Murray Energy Corp. v. EPA) is currently pending in the D.C. Circuit. In April 2017, the D.C.
However, our operations could be affected if the attainment status of the areas in which we operate changes in the future. A suit by industry in the D.C. Circuit challenged the EPA’s 2015 Ozone NAAQS (Murray Energy Corp. v.
Monetary sanctions, expensive compliance measures and, in severe circumstances, criminal sanctions may be imposed for failure to comply with these laws. As of December 31, 2022, we had accrued $179.0 million for reclamation liabilities and mine closures, including $37.0 million of current liabilities.
Monetary sanctions, expensive compliance measures and, in severe circumstances, criminal sanctions may be imposed for failure to comply with these laws. As of December 31, 2023, we had accrued $205.4 million for reclamation liabilities and mine closures, including $38.9 million of current liabilities.
The ESM Transaction was approved by the United States Bankruptcy Court for the Southern District of West Virginia (the “WV Bankruptcy Court”) pursuant to an order on October 4, 2019. The Company was the former owner of the Western Assets, having sold them to Blackjewel in December 2017. Exploration stage property. A property with no disclosed coal reserves. High-Vol A.
The ESM Transaction was approved by the United States Bankruptcy Court for the Southern District of West Virginia (the “WV Bankruptcy Court”) pursuant to an order on October 4, 2019. The Company was the former owner of the Western Assets, having sold them to Blackjewel in December 2017. 27 Table of Contents Exploration stage property.
Thermal coal accounted for approximately 5% and 8% of our coal revenues for the years ended December 31, 2022 and 2021, respectively. We often enter into long-term contracts with our thermal coal customers.
Thermal coal accounted for approximately 5% of our coal revenues for each of the years ended December 31, 2023 and 2022. We sometimes enter into long-term contracts with our thermal coal customers.
In the thermal market, of the approximately 524.5 million tons produced in the U.S. in 2022, we produced approximately 2.2 million tons, or less than 1%. Only a small portion of overall U.S. thermal production is shipped internationally, but there is strong competition in the domestic market. Approximately 39% of our thermal coal tons sold were shipped internationally in 2022.
In the thermal market, of the approximately 502.0 million tons produced in the U.S. in 2023, we produced approximately 1.9 million tons, or less than 1%. Only a small portion of overall U.S. thermal production is shipped internationally, but there is strong competition in the domestic market. Approximately 66% of our thermal coal tons sold were shipped internationally in 2023.
In July 2018, the EPA published a final rule extending certain deadlines under the original rules, granting certain authority to states with authorized CCR programs and establishing groundwater protection standards for certain constituents. The EPA and OSM plan additional rulemaking relating to CCR.
The rules also require fugitive dust controls and impose various monitoring, cleanup, and closure requirements. In July 2018, the EPA published a final rule extending certain deadlines under the original rules, granting certain authority to states with authorized CCR programs and establishing groundwater protection standards for certain constituents. The EPA and OSM plan additional rulemaking relating to CCR.
Export coal is usually sold at the loading port, with purchasers responsible for further transportation. For our export sales, we negotiate transportation agreements with various providers, including railroads, trucks, barge lines, and terminal facilities to transport shipments to the relevant loading port.
Export coal is usually sold at the loading port, with purchasers responsible for further transportation. For our export sales, we negotiate transportation agreements with various providers, including railroads, trucks, barge lines, and terminal facilities to transport shipments to the relevant loading port. We coordinate with customers, mining facilities and transportation providers to establish shipping schedules that meet each customer’s needs.
The balance was shipped from our preparation plants, loadout facilities or mines via truck or barge. Our export sales are primarily shipped to DTA and Pier 6 (Lambert’s Point) shipping ports in the Hampton Roads area of Virginia. We may ship limited export quantities through other U.S. ports when warranted by logistics and economics.
Our export sales are primarily shipped to DTA and Pier 6 (Lambert’s Point) shipping ports in the Hampton Roads area of Virginia. We may ship limited export quantities through other U.S. ports when warranted by logistics and economics.
In December 2014, the EPA finalized regulations that address the management of coal ash as a non-hazardous solid waste under Subtitle D. The rules impose engineering, structural and siting standards on surface impoundments and landfills that hold coal combustion wastes and mandate regular inspections. The rules also require fugitive dust controls and impose various monitoring, cleanup, and closure requirements.
In December 2014, the EPA finalized regulations that address the management 24 Table of Contents of coal ash as a non-hazardous solid waste under Subtitle D. The rules impose engineering, structural and siting standards on surface impoundments and landfills that hold coal combustion wastes and mandate regular inspections.
Recent court decisions, regulatory actions and proposed legislation have created uncertainty over CWA jurisdiction and permitting requirements. 21 Table of Contents CWA requirements that may directly or indirectly affect our operations include the following: Wastewater Discharge Prior to discharging any pollutants into waters of the United States, coal mining companies must obtain a National Pollutant Discharge Elimination System (“NPDES”) permit from the appropriate state or federal permitting authority.
CWA requirements that may directly or indirectly affect our operations include the following: Wastewater Discharge Prior to discharging any pollutants into waters of the United States, coal mining companies must obtain a National Pollutant Discharge Elimination System (“NPDES”) permit from the appropriate state or federal permitting authority.
In the met coal market, of the approximately 67.8 million tons produced in the U.S. in 2022, we produced approximately 13.9 million tons, or 21%. A significant portion of U.S. met coal production is shipped internationally, where it competes directly with international sources of production. Approximately 75% of our met coal tons sold were shipped internationally in 2022.
In the met coal market, of the approximately 72.4 million tons produced in the U.S. in 2023, we produced approximately 14.8 million tons, or 20%. A significant portion of U.S. met coal production is shipped internationally, where it competes directly with international sources of production. Approximately 71% of our met coal tons sold were shipped internationally in 2023.
In August 2019, the D.C. Circuit upheld the rule with the exception of the secondary NAAQS standards addressing protection of animals, crops and vegetation, which were sent back to the EPA for further consideration.
EPA), which resulted in the court upholding the rule with the exception of the secondary NAAQS standards addressing protection of animals, crops and vegetation, which were sent back to the EPA for further consideration.
If we were found to be in violation of these regulations we could face penalties or restrictions that may materially and adversely affect our operations, financial results and liquidity.
Our compliance with these or any other new mine health and safety regulations could increase our mining costs. If we were found to be in violation of these regulations we could face penalties or restrictions that may materially and adversely affect our operations, financial results and liquidity.
Usually located several hundred feet below the earth’s surface, an underground mine’s coal is removed mechanically and transferred by shuttle car and conveyor to the surface. 28 Table of Contents
United Mine Workers of America. Underground mine. Also known as a “deep” mine. Usually located several hundred feet below the earth’s surface, an underground mine’s coal is removed mechanically and transferred by shuttle car and conveyor to the surface. 29 Table of Contents
Circuit denied a petition seeking a rehearing of the case en banc. Litigation regarding these issues may continue and could result in the need for additional air pollution controls for coal-fired units and our operations.
Litigation regarding these issues may continue and could result in the need for additional air pollution controls for coal-fired units and our operations.
We strive to maintain positive working relationships with organized labor. Relations with our employees are important to our success, and we believe that we have good relations with our workforce.
Relations with our employees are important to our success, and we believe that we have good relations with our workforce.
Under CERCLA and similar state laws, joint and several liability may be imposed on hazardous substance generators, site owners, transporters, lessees and others regardless of fault or the legality of the original disposal activity. Although the EPA currently excludes most wastes generated by coal mining and processing operations from the primary hazardous waste laws.
Under CERCLA and similar state laws, joint and several liability may be imposed on hazardous substance generators, site owners, transporters, lessees and others regardless of fault or the legality of the original disposal activity.
In the first quarter of 2023, we completed a series of transactions to acquire a number of coal trucks and related equipment and facilities to secure trucking services for our operations. We incur substantial expenses each year to procure goods and services in support of our respective business activities in addition to capital expenditures.
In the first quarter of 2023, we completed a series of transactions to acquire a number of coal trucks and related equipment and facilities to secure trucking services for our operations.
We predominantly produce metallurgical (“met”) coal, which is shipped to domestic and international steel and coke producers. Although our strategic focus is on the production of met coal, we also produce thermal coal which is primarily sold to the domestic power generation industry.
We predominantly produce metallurgical (“met”) coal, which is shipped to domestic and international steel and coke producers. Although our strategic focus is on the production of met coal, we also produce thermal coal as byproduct and it is primarily sold to large utilities and industrial customers both in the United States and across the world.
Cooling Water Intake In May 2014, the EPA issued a new final rule pursuant to Section 316(b) of the CWA that affects the cooling water intake structures at power plants in order to reduce fish impingement and entrainment. The rule is expected to affect over 500 power plants.
Its ultimate impact on our operations remains uncertain until the agencies regularly implement and apply the rule. Cooling Water Intake In May 2014, the EPA issued a new final rule pursuant to Section 316(b) of the CWA that affects the cooling water intake structures at power plants in order to reduce fish impingement and entrainment.
Certain of our subsidiaries have wage agreements with the United Mine Workers of America (“UMWA”) representing roughly 3% of our workforce. Certain of our subsidiaries have wage agreements with the UMWA that are subject to termination by either the employer or the UMWA, without cause, on July 31, 2025 and one on February 28, 2026.
Certain of our subsidiaries have wage agreements with the UMWA that are subject to termination by either the employer or the UMWA, without cause, on July 31, 2025 and one on February 28, 2026. We strive to maintain positive working relationships with organized labor.
We frequently provide training opportunities for operations employees to obtain certifications for Emergency Medical Technician (“EMT”), Mechanical Engineering Technology (“MET”), foreman and supervisory certifications, and electrical certifications in addition to providing apprentice miner training and supervisor training programs.
Selected participants are given robust safety and mining training over a six-month period in order to obtain their required miner’s certification. We frequently provide training opportunities for operations employees to obtain certifications for Emergency Medical Technician (“EMT”), Mechanical Engineering Technology (“MET”), foreman and supervisory certifications, and electrical certifications in addition to providing apprentice miner training and supervisor training programs.
The coal we purchase is loaded in some cases directly from mines and preparation plants operated by third parties or from an export terminal. Virtually all of our coal is transported from the mine to our preparation plants by truck or belt conveyor systems.
Our captive coal is loaded from our preparation plants, loadout facilities, and in certain cases directly from our mines. The coal we purchase is loaded in some cases directly from mines and preparation plants operated by third parties or from an export terminal.
These requirements could increase our customers’ costs and may adversely affect the demand for coal, which may materially impact our results or operations. Effluent Guidelines On November 3, 2015, the EPA published the final rule for Effluent Limitations Guidelines and Standards (“ELGS”), revising the regulations for the Steam Electric Power Generating category, which became effective on January 4, 2016.
Effluent Guidelines On November 3, 2015, the EPA published the final rule for Effluent Limitations Guidelines and Standards (“ELGS”), revising the regulations for the Steam Electric Power Generating category, which became effective on January 4, 2016.
Effective February 1, 2021, we changed our corporate name from Contura Energy, Inc. to Alpha Metallurgical Resources, Inc. to more accurately reflect our strategic focus on the production of met coal. Following the effectiveness of our name change, our ticker symbol on the New York Stock Exchange changed from “CTRA” to “AMR” effective on February 4, 2021.
This transaction accelerated our strategic exit from thermal coal production to shift our focus to met coal production. Effective February 1, 2021, we changed our corporate name from Contura Energy, Inc. to Alpha Metallurgical Resources, Inc. to more accurately reflect our strategic focus on the production of met coal.
To have a successful operation, we endeavor to establish and maintain relationships with and among our employees that are built upon mutual respect, trust, and appreciation.
To have a successful operation, we endeavor to establish and maintain relationships with and among our employees that are built upon mutual respect, trust, and appreciation. Due to the industry shortage of skilled and experienced employees, we have an extensive in-house apprentice miner training program.

… 98 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

91 edited+39 added−17 removed210 unchanged
Biggest changeOn June 1, 2017, the Trump administration announced that the U.S. would withdraw from the agreement, however, on February 19, 2021, the U.S. formally rejoined the Paris Agreement; • state and regional climate change initiatives implementing renewable portfolio standards or cap-and-trade schemes; • challenges to or denials of permits for new coal-fired power plants or retrofits to existing plants by state regulators and environmental organizations due to concerns related to GHG emissions from the new or existing plants; • private litigation against coal companies or power plant operators based on GHG-related concerns; • the Glasgow Climate Pact resulting from the 2021 United Nations Climate Change Conference (COP26) held from October 31 to November 13, 2021, which, though not legally binding, contains a plan to reduce use of coal by 40%.
Biggest changeOn June 1, 2017, the Trump administration announced that the U.S. would withdraw from the agreement, however, on February 19, 2021, the U.S. formally rejoined the Paris Agreement; • the EPA’s regulations to reduce the transport of nitrogen oxide and ozone on prevailing winds from the Midwest and South U.S. to states in the Northeast; • proposed EPA regulations to increase the stringency of the National Ambient Air Quality Standards for particulate matter emissions; • the EPA's February 2024 regulations increasing the stringency of the National Ambient Air Quality Standards for the primary (health-based) annual standard for PM2.5; • state and regional climate change initiatives implementing renewable portfolio standards or cap-and-trade schemes; • challenges to or denials of permits for new coal-fired power plants or retrofits to existing plants by state regulators and environmental organizations due to concerns related to GHG emissions from the new or existing plants; • private litigation against coal companies or power plant operators based on GHG-related concerns; • the Glasgow Climate Pact resulting from the 2021 United Nations Climate Change Conference (COP26) held from October 31 to November 13, 2021, which, though not legally binding, contains a plan to reduce use of coal by 40%; and • the agreement of the participating countries at the 2023 COP28 conference to call on governments worldwide to speed up the transition away from fossil fuels to renewables such as wind and solar power.
If several of these customers were to concurrently and significantly reduce their purchases of coal, or if we were unable to sell coal to them on terms as favorable to us as previous sales, we could face a significant reduction in sales while we attempt to sell the coal to other customers in the global marketplace.
If several of these customers were concurrently and significantly to reduce their purchases of coal, or if we were unable to sell coal to them on terms as favorable to us as previous sales, we could face a significant reduction in sales while we attempt to sell the coal to other customers in the global marketplace.
We depend on reliable supplies of mining equipment, replacement parts and materials such as explosives, diesel fuel, tires, steel, magnetite and other raw materials and consumables, which in some cases, do not have ready substitutes. Some equipment and materials are needed to comply with regulations, such as proximity detection devices on continuous mining machines and steel.
We depend on reliable supplies of mining equipment, replacement parts and materials such as explosives, diesel fuel, tires, steel, magnetite and other raw materials and consumables, which in some cases, do not have ready substitutes. Some equipment and materials are needed to comply with regulations, such as proximity detection devices on continuous mining machines.
Adverse operating conditions and events that we have experienced in the past and/or may experience in the future include: • changes or variations in geologic, hydrologic or other conditions, such as the thickness of the coal deposits and the amount of rock, clay or other non-coal material embedded in or overlying the coal deposit; • mining, processing and loading equipment failures and unexpected maintenance problems; • limited availability or increased costs of mining, processing and loading equipment and parts and other materials from suppliers; • difficulties associated with mining under or around surface obstacles; • unfavorable conditions with respect to proximity to and availability, reliability and cost of transportation facilities; • adverse weather and natural disasters, such as heavy snows, heavy rains and flooding, lightning strikes, hurricanes or earthquakes; • accidental mine water discharges, coal slurry releases and failures of an impoundment or refuse area, including inadvertent environmental impacts to the local community; • mine safety accidents, including fires and explosions from methane and other sources; • hazards or occurrences that could result in personal injury and loss of life; • a shortage of skilled and unskilled labor; • security breaches, cyber attacks or terroristic acts; • strikes and other labor-related interruptions; • delays or difficulties in, the unavailability of, or unexpected increases in the cost of acquiring, developing or permitting new acquisitions from the federal government and other new mining reserves and surface rights; • competition and/or conflicts with other natural resource extraction activities and production within our operating areas; • the termination of material contracts by state or other governmental authorities; and • fatalities, personal injuries or property damage arising from train derailments, mined material or overburden leaving permit boundaries, underground mine blowouts, impoundment failures, subsidence or other unexpected incidents.
Adverse operating conditions and events that we have experienced in the past and/or may experience in the future include: 39 Table of Contents • changes or variations in geologic, hydrologic or other conditions, such as the thickness of the coal deposits and the amount of rock, clay or other non-coal material embedded in or overlying the coal deposit; • mining, processing and loading equipment failures and unexpected maintenance problems; • limited availability or increased costs of mining, processing and loading equipment and parts and other materials from suppliers; • difficulties associated with mining under or around surface obstacles; • unfavorable conditions with respect to proximity to and availability, reliability and cost of transportation facilities; • adverse weather and natural disasters, such as heavy snows, heavy rains and flooding, lightning strikes, hurricanes or earthquakes; • accidental mine water discharges, coal slurry releases and failures of an impoundment or refuse area, including inadvertent environmental impacts to the local community; • mine safety accidents, including fires and explosions from methane and other sources; • hazards or occurrences that could result in personal injury and loss of life; • a shortage of skilled and unskilled labor; • security breaches, cyber attacks or terroristic acts; • strikes and other labor-related interruptions; • delays or difficulties in, the unavailability of, or unexpected increases in the cost of acquiring, developing or permitting new acquisitions from the federal government and other new mining reserves and surface rights; • competition and/or conflicts with other natural resource extraction activities and production within our operating areas; • the termination of material contracts by state or other governmental authorities; and • fatalities, personal injuries or property damage arising from train derailments, mined material or overburden leaving permit boundaries, underground mine blowouts, impoundment failures, subsidence or other unexpected incidents.
For example, it could: • make it more difficult for us to pay or refinance our debts as they become due during adverse economic and industry conditions because any related decrease in revenues could cause us to not have sufficient cash flows from operations to make our scheduled debt payments; • force us to seek additional capital, restructure or refinance our debts, or sell assets; • cause us to be less able to take advantage of significant business opportunities such as acquisition opportunities and to react to changes in market or industry conditions; • cause us to use a portion of our cash flow from operations for debt service, reducing the availability of working capital and delaying or preventing investments, capital expenditures, research and development and other business activities; • cause us to be more vulnerable to general adverse economic and industry conditions; • expose us to the risk of increased interest rates because certain of our borrowings are at variable rates of interest; • expose us to the risk of foreclosure on substantially all of our assets and those of most of our subsidiaries, which secure certain of our indebtedness if we default on payment or are unable to comply with covenants or restrictions in any of the agreements; • limit our ability to borrow additional monies in the future to fund working capital, capital expenditures and other general corporate purposes; and • result in a downgrade in the credit ratings of our indebtedness, which could harm our ability to incur additional indebtedness and result in more restrictive borrowing terms, including increased borrowing costs and more restrictive covenants, all of which could affect our internal cost of capital estimates and therefore impact operational and investment decisions.
For example, it could: • make it more difficult for us to pay or refinance our debts as they become due during adverse economic and industry conditions because any related decrease in revenues could cause us to not have sufficient cash flows from operations to make our scheduled debt payments; • force us to seek additional capital, restructure or refinance our debts, or sell assets; • cause us to be less able to take advantage of significant business opportunities such as acquisition opportunities and to react to changes in market or industry conditions; • cause us to use a portion of our cash flow from operations for debt service, reducing the availability of working capital and delaying or preventing investments, capital expenditures, research and development and other business activities; • cause us to be more vulnerable to general adverse economic and industry conditions; 48 Table of Contents • expose us to the risk of increased interest rates because certain of our borrowings are at variable rates of interest; • expose us to the risk of foreclosure on substantially all of our assets and those of most of our subsidiaries, which secure certain of our indebtedness if we default on payment or are unable to comply with covenants or restrictions in any of the agreements; • limit our ability to borrow additional monies in the future to fund working capital, capital expenditures and other general corporate purposes; and • result in a downgrade in the credit ratings of our indebtedness, which could harm our ability to incur additional indebtedness and result in more restrictive borrowing terms, including increased borrowing costs and more restrictive covenants, all of which could affect our internal cost of capital estimates and therefore impact operational and investment decisions.
Our operations are subject to a wide variety of federal, state and local environmental, health and safety, transportation, labor and other laws and regulations relating to matters such as: • blasting; • controls on emissions and discharges; • the effects of operations on surface water and groundwater quality and availability; 32 Table of Contents • the storage, treatment and disposal of wastes and the authorizations necessary to create new waste management facilities; • the remediation of contaminated soil, surface water and groundwater; • surface subsidence from underground mining; • the classification of plant and animal species near our mines as endangered or threatened species; • the reclamation of mined sites; and • employee health and safety, and benefits for current and former employees (described in more detail below).
Our operations are subject to a wide variety of federal, state and local environmental, health and safety, transportation, labor and other laws and regulations relating to matters such as: 33 Table of Contents • blasting; • controls on emissions and discharges; • the effects of operations on surface water and groundwater quality and availability; • the storage, treatment and disposal of wastes and the authorizations necessary to create new waste management facilities; • the remediation of contaminated soil, surface water and groundwater; • surface subsidence from underground mining; • the classification of plant and animal species near our mines as endangered or threatened species; • the reclamation of mined sites; and • employee health and safety, and benefits for current and former employees (described in more detail below).
The following factors, among others, could affect our stock price: • our operating and financial performance, including reserve estimates; • an unexpected mine or environmental incident; • quarterly variations in the rate of growth of our financial indicators, such as net income per share, net income and revenues; • the public reaction to our press releases, our other public announcements and our filings with the SEC; • strategic actions by our competitors; 47 Table of Contents • changes in revenue or earnings estimates, or changes in recommendations or withdrawal of research coverage, by equity research analysts; • speculation in the press or investment community; • research analysts’ coverage of our common stock, or their failure to cover our common stock; • sales of our common stock by us, our directors or officers or the selling stockholders or the perception that such sales may occur; • our payment of dividends; • changes in accounting principles, policies, guidance, interpretations or standards; • additions or departures of key management personnel; • actions by our stockholders; • general market conditions, including fluctuations in commodity prices; • public sentiment regarding climate change and fossil fuels; • domestic and international economic, legal and regulatory factors unrelated to our performance; and • the realization of any of the other risks described under this “Risk Factors” section or described elsewhere in this document.
The following factors, among others, could affect our stock price: • our operating and financial performance, including reserve estimates; • an unexpected mine or environmental incident; • quarterly variations in the rate of growth of our financial indicators, such as net income per share, net income and revenues; • the public reaction to our press releases, our other public announcements and our filings with the SEC; • strategic actions by our competitors; • changes in revenue or earnings estimates, or changes in recommendations or withdrawal of research coverage, by equity research analysts; • speculation in the press or investment community; • research analysts’ coverage of our common stock, or their failure to cover our common stock; • sales of our common stock by us, our directors or officers or the selling stockholders or the perception that such sales may occur; • our payment of dividends; • changes in accounting principles, policies, guidance, interpretations or standards; • additions or departures of key management personnel; • actions by our stockholders; • general market conditions, including fluctuations in commodity prices; • public sentiment regarding climate change and fossil fuels; • domestic and international economic, legal and regulatory factors unrelated to our performance; and • the realization of any of the other risks described under this “Risk Factors” section or described elsewhere in this document.
Disruption of any of these transportation services due to weather-related problems, mechanical difficulties, fuel and supply costs, strikes, lockouts, bottlenecks, terrorist attacks or other events could impair our ability to supply coal to our customers, resulting in decreased shipments and revenue.
Disruption of any of these transportation services due to weather-related problems, mechanical difficulties, fuel and supply costs, strikes, lockouts, bottlenecks, accidents, terrorist attacks or other events could impair our ability to supply coal to our customers, resulting in decreased shipments and revenue.
If we do not maintain sufficient borrowing capacity under our letter of credit facilities, we may be unable to provide financial assurance for self-insured obligations and could negatively impact our ability to fund future working capital, capital expenditure or other general corporate requirements.
If we do not maintain sufficient borrowing capacity under our letter of credit facilities, we may be unable to provide financial assurance for self-insured obligations which could negatively impact our ability to fund future working capital, capital expenditure or other general corporate requirements.
Furthermore, some leases require us to produce a minimum quantity of coal and/or pay minimum production royalties. If those requirements are not met, the leasehold interest may terminate. 42 Table of Contents Strategic transactions, including acquisitions, involve a number of risks, any of which could result in a material adverse effect on our business, financial condition or results of operations.
Furthermore, some leases require us to produce a minimum quantity of coal and/or pay minimum production royalties. If those requirements are not met, the leasehold interest may terminate. Strategic transactions, including acquisitions, involve a number of risks, any of which could result in a material adverse effect on our business, financial condition or results of operations.
Those prices depend upon factors beyond our control (some of which are described in more detail in other risk factors below), including but not limited to: • the demand for domestic and foreign coal and coke, which depends significantly on the demand for steel and electricity; • the price and availability of natural gas, other alternative fuels and alternative steel production technologies; • domestic and foreign economic conditions, including economic downturns and the strength of the global and U.S. economies; • the consumption pattern of industrial customers, electricity generators and residential users; • the legal, regulatory and tax environment for our industry and those of our customers; • adverse weather, climactic or other natural conditions, natural disasters, epidemics, pandemics (such as the COVID-19 virus) and other public health challenges; • the quantity, quality and pricing of coal available in the resale market; • factors affecting the timely delivery of our products to customers; • the effects of worldwide energy conservation or emissions measures; • competition from other suppliers of coal and other energy sources; and • the proximity to and availability, reliability and cost of transportation and port facilities. 29 Table of Contents A period of sustained low coal prices in the U.S. and other countries would materially adversely affect our operating results and cash flows, as well as the value of our coal reserves, and would cause a number of other risks that we face to increase in likelihood, magnitude and duration.
Those prices depend upon factors beyond our control (some of which are described in more detail in other risk factors below), including but not limited to: • the demand for domestic and foreign coal and coke, which depends significantly on the demand for steel; • the price and availability of natural gas, other alternative fuels and alternative steel production technologies; • domestic and foreign economic conditions, including economic downturns and the strength of the global and U.S. economies; • the consumption pattern of industrial customers; • factors affecting the timely delivery of our products to customers; • the proximity to and availability, reliability and cost of transportation and port facilities; • the legal, regulatory and tax environment for our industry and those of our customers; • the quantity, quality and pricing of coal available in the resale market; • the effects of emissions control measures; • adverse weather, climactic or other natural conditions, natural disasters, epidemics, pandemics (such as the COVID-19 virus) and other public health challenges; and • competition from other suppliers of coal and other energy sources. 30 Table of Contents A period of sustained low coal prices in the U.S. and other countries would materially adversely affect our operating results and cash flows, as well as the value of our coal reserves, and would cause a number of other risks that we face to increase in likelihood, magnitude and duration.
Continuing low demand for thermal coal, or further declines in demand, by North American electric power generators could reduce the price of our thermal coal, which would reduce our revenues. Thermal coal accounted for approximately 5% of our coal revenues for the year ended December 31, 2022.
Continuing low demand for thermal coal, or further declines in demand, by North American electric power generators could reduce the price of our thermal coal, which would reduce our revenues. Thermal coal accounted for approximately 5% of our coal revenues for the year ended December 31, 2023.
Our workforce could become increasingly unionized in the future and our unionized or union-free workforce could strike, which could adversely affect the stability of our production and reduce our profitability. Approximately 97% of our total workforce and approximately 96% of our hourly workforce was union-free as of December 31, 2022.
Our workforce could become increasingly unionized in the future and our unionized or union-free workforce could strike, which could adversely affect the stability of our production and reduce our profitability. Approximately 97% of our total workforce and approximately 96% of our hourly workforce was union-free as of December 31, 2023.
Any failure to comply with those covenants may constitute a breach under the revolving credit facility that could result in the acceleration of all or a substantial portion of any outstanding indebtedness and termination of revolving credit commitments under the revolving credit facility.
Any failure to comply with those covenants may constitute a breach under the New ABL Facility that could result in the acceleration of all or a substantial portion of any outstanding indebtedness and termination of revolving credit commitments under the New ABL Facility.
If we are unable to 43 Table of Contents obtain additional capital, we may not be able to maintain or increase our existing production rates, and we could be forced to reduce or delay capital expenditures or change our business strategy, sell assets or restructure or refinance our indebtedness, all of which could have a material adverse effect on our business or financial condition.
If we are unable to obtain additional capital, we may not be able to maintain or increase our existing production rates, and we could be forced to reduce or delay capital expenditures or change our business strategy, sell assets or restructure or refinance our indebtedness, all of which could have a material adverse effect on our business or financial condition.
A change of control (as defined under the instruments governing our debt) is an event of default, permitting our lenders to accelerate the maturity of certain borrowings. Further, our borrowing arrangements impose other restrictions on us, including 48 Table of Contents with respect to mergers or consolidations with other companies and the sale of substantially all of our assets.
A change of control (as defined under the instruments governing our debt) is an event of default, permitting our lenders to accelerate the maturity of certain borrowings. Further, our borrowing arrangements impose other restrictions on us, including with respect to mergers or consolidations with other companies and the sale of substantially all of our assets.
In the future, we may undertake strategic transactions such as the acquisition or disposition of coal mining and related infrastructure assets, interests in coal mining companies, joint ventures or other strategic transactions involving companies with coal mining or other energy assets.
We have in the past, and may in the future, undertake strategic transactions such as the acquisition or disposition of coal mining and related infrastructure assets, interests in coal mining companies, joint ventures or other strategic transactions involving companies with coal mining or other energy assets.
Risks inherent in these strategic transactions include, but are not limited to: • accurately assessing the geological conditions of acquired properties; • the ability to obtain and maintain surety bonds, at acceptable rates, related to acquired properties; • uncertainties in assessing the value, strengths, and potential profitability, and identifying the extent of all weaknesses, risks, contingent liabilities and other liabilities of acquisition candidates and strategic partners; • the potential loss of key customers, management and employees of an acquired business; • the ability to achieve identified operating and financial synergies from an acquisition or other strategic transactions in the amounts and on the time frame due to inaccurate assumptions underlying estimates of expected cost savings, the deterioration of general industry and business conditions, unanticipated legal, insurance and financial compliance costs, or other factors; • the ability of management to manage successfully our exposure to pending and potential litigation and regulatory obligations; • the ability of a purchaser to complete the transfer of operating permits related to our divested operations; • unanticipated increases in competition that limit our ability to expand our business or capitalize on expected business opportunities, including retaining current customers; and • unanticipated changes in business, industry, market, or general economic conditions that differ from the assumptions underlying our rationale for pursuing the acquisition or other strategic transactions.
Risks inherent in these strategic transactions include, but are not limited to: • accurately assessing the geological conditions of acquired properties; • the ability to obtain and maintain surety bonds, at acceptable rates, related to acquired properties and other obligations; • uncertainties in assessing the value, strengths, and potential profitability, and identifying the extent of all weaknesses, risks, contingent liabilities and other liabilities of acquisition candidates and strategic partners; • the potential loss of key customers, management and employees of an acquired business; 45 Table of Contents • the ability to achieve identified operating and financial synergies from an acquisition or other strategic transactions in the amounts and on the time frame due to inaccurate assumptions underlying estimates of expected cost savings, the deterioration of general industry and business conditions, unanticipated legal, insurance and financial compliance costs, or other factors; • the ability of management to manage successfully our exposure to pending and potential litigation and regulatory obligations; • the ability of a purchaser to complete the transfer of operating permits related to our divested operations and to otherwise properly fulfill all assumed contractual, legal and regulatory obligations; • unanticipated increases in competition that limit our ability to expand our business or capitalize on expected business opportunities, including retaining current customers; and • unanticipated changes in business, industry, market, or general economic conditions that differ from the assumptions underlying our rationale for pursuing the acquisition or other strategic transactions.
Similarly, the repurchase or redemption rights or liquidation preferences we might assign to holders of preferred stock could affect the residual value of the common stock. Provisions in our organizational documents and the instruments governing our debt may discourage a takeover attempt, even if doing so might be beneficial to our stockholders.
Similarly, the repurchase or redemption rights or liquidation preferences we might assign to holders of preferred stock could affect the residual value of the common stock, as the Board may determine. Provisions in our organizational documents and the instruments governing our debt may discourage a takeover attempt, even if doing so might be beneficial to our stockholders.
Thus, past or ongoing violations of federal and state mining laws by us or by coal mining operations owned or controlled by our significant 35 Table of Contents stockholders, directors or officers or by entities linked to us through OSM’s AVS could provide a basis to revoke existing permits and to deny the issuance of additional permits or modification or amendment of existing permits.
Thus, past or ongoing violations of federal and state mining laws by us or by coal mining operations owned or controlled by our significant stockholders, directors or officers or by entities linked to us through OSM’s AVS could provide a basis to revoke existing permits and to deny the issuance of additional permits or modification or amendment of existing permits.
Any increase in the per-ton compensation for services we pay for the production of contractor-produced coal could increase our costs and, therefore, lower our earnings and adversely affect our results of operations. We also contract with third parties to perform reclamation services for properties that are no longer in operation.
Any increase in the per-ton 44 Table of Contents compensation for services we pay for the production of contractor-produced coal could increase our costs and, therefore, lower our earnings and adversely affect our results of operations. We also contract with third parties to perform reclamation services for properties that are no longer in operation.
Mine Safety and Health Administration (MSHA) and the states of Virginia and West Virginia have implemented and proposed changes to mine safety and health requirements to impose more stringent health and safety controls, enhance mine inspection and enforcement practices, increase sanctions, and expand monitoring and reporting; and • Greenhouse gas (GHG) emissions reductions are being considered that could increase our costs, require additional controls, or compel us to limit our current operations.
Mine Safety and Health Administration (“MSHA”) and the states of Virginia and West Virginia have implemented and proposed changes to mine safety and health requirements to impose more stringent health and safety controls, enhance mine inspection and enforcement practices, increase sanctions, and expand monitoring and reporting; and • Greenhouse gas (“GHG”) emissions reductions are being considered that could increase our costs, require additional controls, or compel us to limit our current operations.
Our coal production at our mines is subject to operating conditions and events, many of which are beyond our control, that could disrupt operations, affect production and the cost of mining for varying lengths of time and have a significant impact on 37 Table of Contents our operating results.
Our coal production at our mines is subject to operating conditions and events, many of which are beyond our control, that could disrupt operations, affect production and the cost of mining for varying lengths of time and have a significant impact on our operating results.
As detailed in the following pages, these risks include, but are not limited to, the following: • Risks relating to our industry and the global economy , such as those associated with declines in coal prices, loss of customers, our ability to obtain financing and other services, competition, decreased demand for coal, customer creditworthiness and global economic disruptions. • Risks relating to regulatory and legal developments , such as those associated with regulatory requirements and costs, healthcare regulations and costs, permit approvals, climate change regulations, environmental laws and treaties, unfavorable tax actions, decreased demand for energy, environmental cleanup costs and maintenance of internal controls. • Risks relating to our operations , such as those associated with mining and other conditions, many of which are beyond our control, decreased demand for coal, disruptions in transportation services, the availability of skilled workers, higher than estimated employee benefit costs, the availability of coal reserves, equipment availability, equipment breakdown, higher than anticipated property reclamation or mine closure costs, unionization, cybersecurity, the complexity of mining in Central Appalachia, our dependence upon third parties and our ability to make capital investments. • Risks relating to our liquidity , such as our ability to obtain or renew surety bonds, our need to maintain capacity for required letters of credit, limitations imposed on us by our revolving credit facility or any future debt instruments and access to funds when needed. • Risks relating to the ownership of our common stock , such as those associated with compliance with securities laws, the availability of an orderly trading market for our common stock, our ability to continue to pay quarterly dividends and repurchase common shares, dilution or other effects resulting from the issuance of additional securities, impediments to our acquisition by a third party and limited fora for stockholder litigation matters.
As detailed in the following pages, these risks include, but are not limited to, the following: • Risks relating to our industry and the global economy , such as those associated with declines in coal prices, loss of customers, our ability to obtain financing and other services, competition, decreased demand for coal, customer creditworthiness and global economic disruptions. • Risks relating to regulatory and legal developments , such as those associated with regulatory requirements and costs, healthcare regulations and costs, permit approvals, climate change regulations, social and governance initiatives and regulations, environmental laws and treaties, unfavorable tax actions, decreased demand for energy, environmental cleanup costs and maintenance of internal controls. • Risks relating to our operations , such as those associated with mining and other conditions, many of which are beyond our control, decreased demand for coal, disruptions in transportation services, the availability of skilled workers, higher than estimated employee benefit costs, the availability of coal reserves, equipment availability, equipment breakdown, higher than anticipated property reclamation or mine closure costs, unionization, cybersecurity, artificial intelligence, the complexity of mining in Central Appalachia, our dependence upon third parties and our ability to make capital investments. • Risks relating to our liquidity , such as our ability to obtain or renew surety bonds, our need to maintain capacity for required letters of credit (“LCs”), limitations imposed on us by our revolving credit facility or any future debt instruments and access to funds when needed. • Risks relating to the ownership of our common stock , such as those associated with compliance with securities laws, the availability of an orderly trading market for our common stock, our ability to continue to repurchase common shares, as the Board may determine from time to time, dilution or other effects resulting from the issuance of additional securities, impediments to our acquisition by a third party and limited fora for stockholder litigation matters.
Because transportation costs represent a 38 Table of Contents significant portion of the total cost of coal for our customers, increases in transportation costs could also reduce overall demand for coal or make our coal production less competitive than coal produced from other sources or other regions.
Because transportation costs represent a significant portion of the total cost of coal for our customers, increases in transportation costs could also reduce overall demand for coal or make our coal production less competitive than coal produced from other sources or other regions.
We cannot predict the size of future issuances of our common stock or securities convertible into common stock or the effect, if any, that future issuances and sales of shares of our common stock will have on the market price of our common stock or the dividend amount payable per share on our common stock.
We cannot predict the size of future issuances of our common stock or securities convertible into common stock or the effect, if any, that 50 Table of Contents future issuances and sales of shares of our common stock will have on the market price of our common stock or the dividend amount payable per share on our common stock, if any.
In addition, purchasers of our met coal may increasingly be required to implement costly new emissions and other technologies, thereby increasing the risk we bear for customer payment default. For the year ended December 31, 2022 we derived 81% of our coal revenues from coal sales made to customers outside the U.S.
In addition, purchasers of our met coal may increasingly be required to implement costly new emissions and other technologies, thereby increasing the risk we bear for customer payment default. For the year ended December 31, 2023 we derived 74% of our coal revenues from coal sales made to customers outside the U.S.
A decline in 40 Table of Contents demand for met coal relative to thermal coal could cause us to shift coal from the met market to the thermal market, thereby reducing our revenues and profitability. Our business will be adversely affected if we are unable to timely develop or acquire additional coal reserves that are economically recoverable.
A decline in demand for met coal relative to thermal coal could cause us to shift coal from the met market to the thermal market, thereby reducing our revenues and profitability. Our business will be adversely affected if we are unable to timely develop or acquire additional coal reserves that are economically recoverable.
Risks Relating to Regulatory and Legal Developments The extensive regulation of the mining industry imposes significant costs on us, and future regulations or violations could increase those costs or limit our ability to produce coal.
Risks Relating to Regulatory and Legal Developments The increasingly stringent regulation of the mining industry imposes significant costs on us, and future regulations or violations could increase those costs or limit our ability to produce coal.
We may not be able to accurately assess the geological characteristics of any reserves that we now own or subsequently acquire, which may adversely affect our profitability and financial condition.
We may not be able to accurately assess the geological 43 Table of Contents characteristics of any reserves that we now own or subsequently acquire, which may adversely affect our profitability and financial condition.
Cybersecurity disruptions could cause physical harm to people or the environment; damage or destroy assets; compromise business systems; result in proprietary information being altered, lost, or stolen; result in employee, customer, or third-party information being 39 Table of Contents compromised; or otherwise disrupt our business operations.
Cybersecurity disruptions could cause physical harm to people or the environment; damage or destroy assets; compromise business systems; result in proprietary information being altered, lost, or stolen; result in employee, customer, or third-party information being compromised; or otherwise disrupt our business operations.
Risks Relating to Our Liquidity The need to maintain capacity for required letters of credit could limit our ability to provide financial assurance for self- insured obligations and negatively impact our ability to fund future working capital, capital expenditure or other general corporate requirements.
Risks Relating to Our Liquidity The need to maintain capacity for required LCs could limit our ability to provide financial assurance for self-insured obligations and negatively impact our ability to fund future working capital, capital expenditure or other general corporate requirements.
Alpha produces coal that is sold directly to both U.S. and foreign customers and indirectly to foreign customers through U.S.-based companies. Coal export revenues accounted for approximately 81% of our coal revenues for the year ended December 31, 2022. Met coal accounted for approximately 95% of our coal revenues for the year ended December 31, 2022.
Alpha produces coal that is sold directly to both U.S. and foreign customers and indirectly to foreign customers through U.S.-based companies. Coal export revenues accounted for approximately 74% of our coal revenues for the year ended December 31, 2023. Met coal accounted for approximately 95% of our coal revenues for the year ended December 31, 2023.
These include: 33 Table of Contents • the 2015 Paris climate summit agreement, which resulted in voluntary commitments by 197 countries to reduce their GHG emissions and could result in additional firm commitments by various nations and states with respect to future GHG emissions.
These include: • the 2015 Paris climate summit agreement, which resulted in voluntary commitments by 197 countries to reduce their GHG emissions and could result in additional firm commitments by various nations and states with respect to future GHG emissions.
A substantial portion of our non-income taxes are levied as a percentage of gross revenues, while others are levied on a per ton basis. If such liabilities were to arise, or if non-income tax rates were to increase significantly, our results of operations could be materially and adversely affected.
We pay non-income taxes on the coal we produce. A substantial portion of our non-income taxes are levied as a percentage of gross revenues, while others are levied on a per ton basis. If such liabilities were to arise, or if non-income tax rates were to increase significantly, our results of operations could be materially and adversely affected.
Disruptions in transportation services and increased transportation costs could impair our ability to supply coal to our customers, reduce demand and adversely affect our business. For the year ended December 31, 2022, 84% of our coal volume was transported from our shipping points to a vessel loading point or customer location by rail.
Disruptions in transportation services or port facilities, and increased transportation costs, could impair our ability to supply coal to our customers, reduce demand and adversely affect our business. For the year ended December 31, 2023, 89% of our coal volume was transported from our shipping points to a vessel loading point or customer location by rail.
Alternatively, if a court were to find the choice of forum provision that is contained in our bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely affect our business, financial condition and results of operations. Item 1B. Unresolved Staff Comments None.
Alternatively, if a court were to find the choice of forum provision that is contained in our bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely affect our business, financial condition and results of operations. 51 Table of Contents Item 1B.
Access to additional funds from liquidity-generating transactions or other sources of external financing may not be available to us and, if available, would be subject to market conditions and certain limitations, including our credit rating and covenant restrictions in our revolving credit facility. 45 Table of Contents Our indebtedness exposes us to various risks.
Access to additional funds from liquidity-generating transactions or other sources of external financing may not be available to us and, if available, would be subject to market conditions and certain limitations, including our credit rating and covenant restrictions in our revolving credit facility. Our indebtedness, as it may exist from time to time, exposes us to various risks.
To maintain and improve our controls and procedures, we must commit significant resources, may be required to hire additional staff and need to continue to provide effective management oversight, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.
These activities may divert management’s attention from other business concerns. To maintain and improve our controls and procedures, we must commit significant resources, may be required to hire additional staff and need to continue to provide effective management oversight, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.
Our estimated total reclamation and mine-closing liabilities were $179.0 million as of December 31, 2022, based upon permit requirements, the historical experience at our operations and a number of variables involving assumptions and estimates.
Our estimated total reclamation and mine-closing liabilities were $205.4 million as of December 31, 2023, based upon permit requirements, the historical experience at our operations and a number of variables involving assumptions and estimates.
As of December 31, 2022, we had outstanding surety bonds with third parties of approximately $165.6 million. Surety bond issuers and holders may demand additional collateral, unfavorable terms or higher fees.
As of December 31, 2023, we had outstanding surety bonds with third parties of approximately $177.1 million. Surety bond issuers and holders may demand additional collateral, unfavorable terms or higher fees.
Expenditures for certain employee benefits could be materially higher than we have anticipated, which could increase our costs and adversely affect our financial results. We are responsible for certain liabilities under a variety of benefit plans and other arrangements with employees.
Expenditures for certain employee benefits could be materially higher than we have anticipated, which could increase our costs and adversely affect our financial results. Litigation regarding employee compensation could have a material adverse effect upon our liquidity and results of operations. We are responsible for certain liabilities under a variety of benefit plans and other arrangements with employees.
Dividends on our common stock are only payable if declared by the Board and permitted by Delaware law. Dividends on our common stock will be paid only if declared by the Board. The Board is not legally obligated or required to declare dividends on our common stock even if we have funds available for that purpose.
Dividends on our common stock may be paid only if declared by the Board. The Board is not legally obligated or required to declare dividends on our common stock even if we have funds available for that purpose.
Global climate issues continue to attract considerable public and scientific attention. Numerous reports have expressed concern about the impacts of human activity, and in particular the emissions of GHG, such as carbon dioxide and methane, on global climate issues.
Numerous reports have expressed concern about the impacts of human activity, and in particular the emissions of GHG, such as carbon dioxide and methane, on global climate issues.
At December 31, 2022, we had $11.0 million of indebtedness outstanding, of which $9.0 million is scheduled to mature in the next three years. Our indebtedness could have important consequences to our business, particularly if the amount of our indebtedness should materially increase in the future.
At December 31, 2023, we had $10.4 million of indebtedness outstanding, of which $8.6 million is scheduled to mature in the next three years. Our indebtedness could have important consequences to our business, particularly if the amount of our indebtedness should materially increase in the future.
The unfunded status of these obligations as of December 31, 2022 included $71.8 million of workers’ compensation obligations, net of expected insurance receivable amounts, $110.8 million of pension obligations and $90.9 million of black lung obligations. These obligations have been estimated based on assumptions including actuarial estimates, discount rates, and changes in health care costs.
The unfunded status of these obligations as of December 31, 2023 included $63.2 million of workers’ compensation obligations, net of expected insurance receivable amounts, $101.9 million of pension obligations and $107.3 million of black lung obligations. These obligations have been estimated based on assumptions including actuarial estimates, discount rates, and changes in health care costs.
Coal sales to our largest customer during the year ended December 31, 2022 accounted for approximately 25% of our total revenues, and coal sales to our 10 largest customers accounted for approximately 70% of our total revenues.
Coal sales to our largest customer during the year ended December 31, 2023 accounted for approximately 13% of our total revenues, and coal sales to our 10 largest customers accounted for approximately 74% of our total revenues.
Resulting disruptions could reduce demand for steel made through the use of metallurgical coal and coal-fired electricity, causing a reduction in our revenues or an increase in our costs and thereby materially and adversely affecting our results of operations, financial condition and cash flows.
This conflict may cause additional, severe adverse effects in the region and for international markets. Resulting disruptions could reduce demand for steel made through the use of metallurgical coal and coal-fired electricity, causing a reduction in our revenues or an increase in our costs and thereby materially and adversely affecting our results of operations, financial condition and cash flows.
A series of more stringent requirements will or may become effective in coming years, including: • implementation of the current and more stringent proposed ambient air quality standards for sulfur dioxide, nitrogen oxides, particulate matter and ozone, including the EPA’s issuance of NAAQS in October 2015 of a more stringent ambient air quality standard for ozone and the EPA’s determinations of attainment designations with respect to these rules; • implementation of the EPA’s Revised CSAPR to significantly reduce nitrogen oxide and sulfur dioxide emissions from power plants in 12 states in the eastern United States; • continued implementation of the EPA’s MATS, which impose stringent limits on emissions of mercury and other toxic air pollutants from electric power generators, issued in December 2011 and in effect pending completion of judicial review proceedings; • the exposure of workers to silica dust; • implementation of the EPA’s August 2014 final rule on cooling water intake structures for power plants; • more stringent EPA requirements governing management and disposal of coal ash pursuant to a rule finalized in December 2014 and new amendments effective as of August 2018; • implementation of the COE/EPA final rule revising and reissuing Nationwide Permits under Section 404 of the Clean Water Act; and • implementation of the EPA’s November 2015 final rule setting effluent discharge limits on the levels of metals that can be discharged from power plants.
A series of more stringent requirements will or may become effective in coming years, including: • implementation of the current and more stringent proposed ambient air quality standards for sulfur dioxide, nitrogen oxides, particulate matter and ozone, including the EPA’s issuance of NAAQS in October 2015 of a more stringent ambient air quality standard for ozone and the EPA’s determinations of attainment designations with respect to these rules; • implementation of the EPA's February 2024 revised primary (health-based) annual standard for PM2.5, from 12.0 µg/m3 to 9.0 µg/m3; • implementation of the EPA’s Revised CSAPR to significantly reduce nitrogen oxide and sulfur dioxide emissions from power plants in 12 states in the eastern United States; • continued implementation of the EPA’s MATS, which impose stringent limits on emissions of mercury and other toxic air pollutants from electric power generators, issued in December 2011 and in effect pending completion of judicial review proceedings; • the EPA’s Good Neighbor Plan rules, which secured significant reductions in ozone-forming emissions of nitrogen oxides (NOx) from power plants and industrial facilities in 23 states; • multiple and inconsistent future GHG emission reporting obligations imposed in federal and state laws; • the exposure of workers to silica dust; • implementation of the EPA’s August 2014 final rule on cooling water intake structures for power plants; • more stringent EPA requirements governing management and disposal of coal ash pursuant to a rule finalized in December 2014 and new amendments effective as of August 2018; • implementation of the COE/EPA final rule revising and reissuing Nationwide Permits under Section 404 of the Clean Water Act and applying the conforming rule Revised Definition of Waters of the United States; and 36 Table of Contents • implementation of the EPA’s November 2015 final rule setting effluent discharge limits on the levels of metals that can be discharged from power plants.
The passage of these or other similar proposals could increase our taxable income and negatively impact our cash flows and the value of an investment in our common stock. Changes in tax laws, particularly in the areas of non-income taxes, could cause our financial position and profitability to deteriorate. We pay non-income taxes on the coal we produce.
The passage of these or other similar proposals could increase our taxable income and negatively impact our cash flows and the value of an investment in our common stock. Changes in tax laws, in the areas of both income taxes and non-income taxes, may materially affect our results of operations and could cause our financial position and profitability to deteriorate.
Moreover, we are seeing an increasing number of those who leave our employment accept new positions outside the coal industry, further reducing the number of skilled employees available to us and leading to increased labor costs.
We, along with the mining industry generally, are currently facing a significant shortage of operating staff. Moreover, we are seeing an increasing number of those who leave our employment accept new positions outside the coal industry, further reducing the number of skilled employees available to us and leading to increased labor costs.
We may be subject to claims under federal or state law for toxic torts, natural resource damages and other damages as well as for the investigation and clean-up of soil, surface water, sediments, groundwater and other natural resources.
Our operations use certain hazardous materials, and, from time to time, we generate limited quantities of hazardous wastes. We may be subject to claims under federal or state law for toxic torts, natural resource damages and other damages as well as for the investigation and clean-up of soil, surface water, sediments, groundwater and other natural resources.
Coal mines consume large quantities of these commodities, such as steel, copper, rubber products, explosives and diesel and other liquid fuels. A rapid or significant increase in the cost of these commodities would increase our mining costs.
In addition, the prices we pay for materials are strongly influenced by the global commodities markets. Coal mines consume large quantities of these commodities, such as steel, copper, rubber products, explosives and diesel and other liquid fuels. A rapid or significant increase in the cost of these commodities would increase our mining costs.
Other extensive environmental laws, including existing and potential future legislation, treaties and regulatory requirements relating to air emissions, waste management and water discharges, affect our customers and could further reduce the demand for coal as a fuel source and cause prices and sales of our coal to materially decline. 34 Table of Contents Our customers’ operations are subject to extensive laws and regulations relating to environmental matters, including air emissions, wastewater discharges and the storage, treatment and disposal of wastes and operational permits.
Other extensive environmental laws, including existing and potential future legislation, treaties and regulatory requirements relating to air emissions, waste management and water discharges, affect our customers and could further reduce the demand for coal as a fuel source and cause prices and sales of our coal to materially decline.
The existence of our share repurchase program could cause the price of our common stock to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for our common stock. Additionally, repurchases under our share repurchase program would diminish our cash reserves, which could adversely affect our operating results.
The existence of our share repurchase program could cause the price of our common stock to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for our common stock.
Our union-represented employees could strike, which would disrupt our production, increase our costs and disrupt shipments of coal to our customers, and could result in the closure of affected mines, all of which could reduce our profitability. Certain provisions in our coal supply agreements may result in economic penalties upon our failure to meet specifications.
Our union-represented employees could strike, which would disrupt our production, increase our costs and disrupt shipments of coal to our customers, and could result in the closure of affected mines, all of which could reduce our profitability.
Our profitability depends substantially on our ability to mine in a cost-effective manner coal reserves of the quality our customers need. Although we have coal reserves that we believe could support current production levels for multiple decades, we have not yet developed the mines for all our reserves.
Our profitability depends substantially on our ability to mine in a cost-effective manner coal reserves of the quality our customers need. Although we have coal reserves that we believe could support current production levels for multiple decades, estimating the size and quality of reserves requires significant judgment and could prove to be inaccurate.
We also depend upon trucks, barges and ocean vessels to deliver coal to our customers. In addition, much of our coal is transported from our mines to our loading facilities by trucks owned and operated by third parties.
In addition, much of our coal is transported from our mines to our loading facilities by trucks owned and operated by third parties.
Any significant reduction in availability or increase in cost of any mining equipment or key supplies could adversely affect our operations and increase our costs, which could adversely affect our operating results and cash flows.
Any significant reduction in availability or increase in cost of any mining equipment or key supplies could adversely affect our operations and increase our costs, which could adversely affect our operating results and cash flows. Diesel fuel is one of our largest variable costs and a sustained shortage of diesel fuel could negatively and materially impact our results of operations.
If we are unable to reach an agreement with the holders of such rights, or to do so on a cost-effective basis, we may incur increased costs, and our ability to mine could be impaired, which could materially and adversely affect our business and results of operations. 41 Table of Contents Mining in Central Appalachia is more complex and involves more regulatory constraints than mining in other areas of the U.S., which could affect our mining operations and cost structures in these areas.
If we are unable to reach an agreement with the holders of such rights, or to do so on a cost-effective basis, we may incur increased costs, and our ability to mine could be impaired, which could materially and adversely affect our business and results of operations.
For example: • During the COVID-19 pandemic, global supply chain disruptions, including COVID-19-related factory closures and port congestion have reduced our ability to obtain some materials used in our operations, have reduced the demand for steel, and therefore for met coal, and have affected railroad and other transportation systems. • The Chinese government has from time to time implemented regulations and promulgated new laws or restrictions on its domestic coal industry, sometimes with little advance notice, which may affect worldwide coal demand, supply and prices.
For example: • During the COVID-19 pandemic, global supply chain disruptions, including COVID-19-related factory closures and port congestion reduced our ability to obtain some materials used in our operations, reduced the demand for steel, and therefore for met coal, and affected railroad and other transportation systems. • The Chinese government has from time to time implemented regulations and promulgated new laws or restrictions on its domestic coal industry, sometimes with little advance notice, which may affect worldwide coal demand, supply and prices. • Although we do not have assets in the Middle East, we do have customers in the region, and if the scope of the ongoing conflicts in that region were to expand materially, the international transport of some goods could become more difficult, even to certain areas outside the Middle East, and shipping costs could increase substantially.
Operating results below current levels, or other adverse factors, including a significant increase in interest rates, could result in our being unable to comply with our covenants and payment obligations contained in our borrowing arrangements.
Our inability in the future to maintain our New ABL Facility could materially adversely affect our liquidity and our business. 47 Table of Contents Operating results below current levels, or other adverse factors, including a significant increase in interest rates, could result in our being unable to comply with our covenants and payment obligations contained in our borrowing arrangements.
Additionally, our independent registered public accounting firm may issue an adverse report indicating that our internal controls are not effective due to deficiencies in how our 46 Table of Contents controls are documented, designed, operated or reviewed.
We are responsible for assessing the operating effectiveness of internal controls over financial reporting and we may conclude that our internal controls over financial reporting are ineffective. Additionally, our independent registered public accounting firm may issue an adverse report indicating that our internal controls are not effective due to deficiencies in how our controls are documented, designed, operated or reviewed.
The stock markets in general have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. These broad market fluctuations may adversely affect the trading price of our common stock.
The stock markets in general have experienced extreme volatility that has often been unrelated to the operating performance of particular companies.
We compete with numerous other coal producers in various regions of the U.S. for domestic and international sales. We also compete in international markets against coal producers in other countries. International demand for U.S. coal exports also affects coal demand in the U.S. This competition affects domestic and international coal prices and our ability to retain or attract coal customers.
International demand for U.S. coal exports also affects coal demand in the U.S. This competition affects domestic and international coal prices and our ability to retain or attract coal customers.
The ability of energy conservation technologies, 36 Table of Contents public initiatives and government incentives to reduce electricity consumption or to support other forms of renewable energy could also lead to a reduction in the demand for and the price of coal.
The ability of energy conservation technologies, public initiatives and government incentives to reduce electricity consumption or to support other forms of renewable energy could also lead to a reduction in the demand for and the price of coal. If prices for coal are not competitive, our business, financial condition and results of operations may be materially harmed.
Most of our coal supply agreements contain provisions requiring us to deliver coal meeting quality thresholds for certain characteristics such as British Thermal Units (“BTU”), sulfur content, ash content, grindability, moisture and ash fusion temperature. Failure to meet these specifications could result in economic penalties, including price adjustments, the rejection of deliveries or termination of the contracts.
Certain provisions in our coal supply agreements may result in economic penalties upon our failure to meet specifications. 46 Table of Contents Most of our coal supply agreements contain provisions requiring us to deliver coal meeting quality thresholds for certain characteristics such as BTUs, sulfur content, ash content, grindability, moisture and ash fusion temperature.
Decreased availability or increased costs of key equipment and materials, including certain items mandated by regulations, increased commodities costs, sustained inflation or increased costs of coal that we purchase from third parties, could increase our cost of production and decrease our profitability.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” for a description of our estimated costs of these liabilities. 42 Table of Contents Decreased availability or increased costs of key equipment and materials, including certain items mandated by regulations, increased commodities costs, sustained inflation or increased costs of coal that we purchase from third parties, could increase our cost of production and decrease our profitability.
If such concurrent loss of large customers or a significant reduction in our sales volume to such customers were to happen, our revenues and profitability could be materially and adversely affected. 30 Table of Contents Competition within the coal industry may adversely affect our ability to sell coal, and excess production capacity in the industry could put downward pressure on coal prices.
If such concurrent loss of large customers 31 Table of Contents or a significant reduction in our sales volume to such customers were to happen, our revenues and profitability could be materially and adversely affected.
There can be no assurance that any share repurchases would enhance stockholder value because the market price of our common stock may decline below the levels at which we repurchased such shares. Any failure to repurchase shares could negatively impact our reputation, investor confidence in us and our stock price.
Additionally, repurchases under our share repurchase program would diminish our cash reserves, which could 49 Table of Contents adversely affect our operating results. There can be no assurance that any share repurchases would enhance stockholder value because the market price of our common stock may decline below the levels at which we repurchased such shares.
More stringent standards for carbon dioxide pollution as a result of these rulemakings could further reduce demand for coal, and our business would be adversely impacted. In addition, certain banks and other financing sources have taken actions to limit available financing for the development of new coal-fueled power plants, which also may adversely impact the future global demand for coal.
In addition, certain banks and other financing sources have 35 Table of Contents taken actions to limit available financing for the development of new coal-fueled power plants, which also may adversely impact the future global demand for coal.
If prices for coal are not competitive, our business, financial condition and results of operations may be materially harmed. Our systems and procedures for internal control over financial reporting or the disclosure controls related to them may in the future have material weaknesses, which may adversely affect the value of our common stock.
Our systems and procedures for internal control over financial reporting or the disclosure controls related to them may in the future have material weaknesses, which may adversely affect the value of our common stock. 38 Table of Contents We are responsible for maintaining systems and documentation necessary to evaluate the effectiveness of our internal control over financial reporting.
We are unable to predict the timing, duration and severity of any potential future disruptions in financial markets and potential future adverse economic conditions in the U.S. and other countries and the impact these events may have on our operations and the industry in general.
Any prolonged global, national or regional economic recession or other similar events could have a material adverse effect on the demand for and price of coal, on our sales, margins and profitability, and on our own ability to obtain financing. 32 Table of Contents We are unable to predict the timing, duration and severity of any potential future disruptions in financial markets and potential future adverse economic conditions in the U.S. and other countries and the impact these events may have on our operations and the industry in general.
The geological characteristics of Central Appalachian coal reserves, such as depth of overburden and coal seam thickness, make them complex and costly to mine. As mines become depleted, replacement reserves may not be available or, if available, may not be able to be mined at costs comparable to those of the depleting or depleted mines.
As mines become depleted, replacement reserves may not be available or, if available, may not be able to be mined at costs comparable to those of the depleting or depleted mines.
In addition, significant changes from period to period could result in significant variability in our operating results, which could reduce comparability between periods and impact our liquidity. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” for a description of our estimated costs of these liabilities.
In addition, significant changes from period to period could result in significant variability in our operating results, which could reduce comparability between periods and impact our liquidity. See “Item 7.
Our insurance may not protect us against such occurrences. It is possible that any of these occurrences, or a combination of them, could have a material adverse effect on our business, financial condition and results of operations. Strategic targets, such as energy-related assets, may be at greater risk of future cybersecurity attacks than other targets in the U.S.
Our insurance, or the insurance of third-party service providers, may not protect us against such occurrences. It is possible that any 41 Table of Contents of these occurrences, or a combination of them, could have a material adverse effect on our business, financial condition and results of operations.
In addition, uncertainty caused by federal and state regulations could cause thermal coal customers to be uncertain of their coal requirements in future years, which could adversely affect our ability to sell coal to such customers under multi-year sales contracts. 31 Table of Contents Downturns and disruptions in the global economy and financial markets have had, and could in the future have, a material adverse effect on the demand for and price of coal, which could have a material negative effect on our sales, costs, margins and profitability and ability to obtain financing.
Downturns and disruptions in the global economy and financial markets have had, and could in the future have, a material adverse effect on the demand for and price of coal, which could have a material negative effect on our sales, costs, margins and profitability and ability to obtain financing.
Disruption in shipment levels over long periods of time could cause our customers to look to other sources for their coal needs, negatively affecting our revenues and results of operations.
Disruption in shipment levels over long periods of time could cause our customers to look to other sources for their coal needs, negatively affecting our revenues and results of operations. 40 Table of Contents An increase in transportation costs could have an adverse effect on our ability to increase or to maintain production on a profit-making basis and could therefore adversely affect our revenues and earnings.
We are currently assessing the impact of the IRA but do not expect it to have a material impact on our results of operations. Risks Relating to Our Operations Our coal mining production and delivery is subject to conditions and events, many of which are beyond our control, that could result in higher operating expenses and decreased production and sales.
Beginning in 2026, the FDII deduction will be reduced from 37.5% to 21.875% of FDII. Risks Relating to Our Operations Our coal mining production and delivery is subject to conditions and events, many of which are beyond our control, that could result in higher operating expenses and decreased production and sales.
Each of these agreements includes, among other things, provisions that provide for the issuance of letters of credit. Obligations secured by letters of credit may increase in the future, for example due to increased collateral obligations associated with Black Lung obligations.
The New ABL Agreement continues to include an asset-based revolving credit facility (the “New ABL Facility”), which among other things, provides for the issuance of LCs. Obligations secured by LCs may increase in the future, for example due to increased collateral obligations associated with black lung obligations.

… 67 more changes not shown on this page.

Item 2. Properties

Properties — owned and leased real estate

16 edited+4 added−6 removed16 unchanged
Biggest changeCoal is expected to be processed at the Elk Run plant and loaded on the CSX rail for delivery to customers. 52 Table of Contents Changes in Coal Resources (Tons in thousands) 12/31/2021 12/31/2022 Mining Complex Coal Resources Initial Assessment (1) Change in Mine Plan Other (2) Coal Resources Met Aracoma 140,657 2,325 833 — 143,815 Kepler 58,734 — (24,488) — 34,246 Kingston 21,254 — 199 — 21,453 Marfork 128,786 95,245 2,967 (67,883) 159,115 McClure/Toms Creek 32,281 — 10,763 — 43,044 Power Mountain — 57,777 — — 57,777 Elk Run — — — 67,883 67,883 Total 381,712 155,347 (9,726) — 527,333 (1) Mineral areas subjected to initial assessment in current year.
Biggest changeChanges in Coal Resources (Tons in thousands) 12/31/2022 12/31/2023 Mining Complex Coal Resources Initial Assessment (1) Pre-Feasibility (2) Change in Mine Plan Divested Production Coal Resources Met Aracoma 143,815 — (14,029) 1,597 — — 131,383 Kepler 34,246 — — (994) (386) — 32,866 Kingston 21,453 5,209 — — — — 26,662 Marfork 159,115 — — (2,679) — — 156,436 McClure/Toms Creek 43,044 — (2,692) 3,277 — — 43,629 Power Mountain 57,777 — — (953) — (2,141) 54,683 Elk Run 67,883 — — — — — 67,883 Total 527,333 5,209 (16,721) 248 (386) (2,141) 513,542 (1) Mineral areas subjected to initial assessment in current year.
Laboratory testing is performed by American National Standards Institute (“ANSI”) certified laboratories and samples are analyzed in accordance with procedures defined under American Society for Testing and Materials (“ASTM”) standards. Core drilling and laboratory testing results are logged into a database with restricted access.
For example, core drilling is conducted by reputable third-party drillers and core samples are tagged. Laboratory testing is performed by American National Standards Institute (“ANSI”) certified laboratories and samples are analyzed in accordance with procedures defined under American Society for Testing and Materials (“ASTM”) standards. Core drilling and laboratory testing results are logged into a database with restricted access.
(2) Pricing shown for primary product judgmentally selected by qualified person based on review of historical average pricing for each complexes coal products over the past 5 years.
East Coast basis. 55 Table of Contents (2) Pricing shown for primary product judgmentally selected by qualified person based on review of historical average pricing for each complexes coal products over the past 5 years.
Coal Reserves and Resources As of December 31, 2022, we estimate that we owned or controlled approximately 336.7 million tons of marketable proven and probable bituminous coal reserves and approximately 527.3 million tons of in situ bituminous coal resources. Our coal reserve and resource estimates were prepared by Marshall Miller & Associates, Inc.
Coal Reserves and Resources As of December 31, 2023, we estimate that we owned or controlled approximately 316.0 million tons of marketable proven and probable bituminous coal reserves and approximately 513.5 million tons of in situ bituminous coal resources. Our coal reserve and resource estimates were prepared by Marshall Miller & Associates, Inc.
The Company’s operations support personnel endeavor to ensure that estimates are prepared in accordance with applicable rules and regulations, that rationale for changes in estimates from prior years are reasonable and supportable, and that cash flow projections are based on reasonable and supportable assumptions with respect to forecasted production rates, coal pricing, and operating and capital costs.
The Company’s operations support personnel endeavor to ensure that estimates are prepared in accordance with applicable rules and regulations, that rationale for changes in estimates from prior years are reasonable and supportable, and that cash flow projections are based on reasonable and supportable assumptions with respect to forecasted production rates, coal pricing, and operating and capital costs. 57 Table of Contents The Company’s drilling, sample preparation and laboratory analysis are conducted in accordance with internal policies and procedures.
However, also refer to “Item 1. Business—Environmental and Other Regulatory Matters” and “Item 1A. Risks Factors—Risks relating to regulatory and legal developments.” Our coal reserve and resource estimates are updated periodically to reflect coal production, acquisitions and dispositions of mineral interests, new drilling, mine or geological data, and changes in regulations, market conditions or other economic factors.
Risks Factors—Risks relating to regulatory and legal developments.” 56 Table of Contents Our coal reserve and resource estimates are updated periodically to reflect coal production, acquisitions and dispositions of mineral interests, new drilling, mine or geological data, and changes in regulations, market conditions or other economic factors.
Internal Controls Disclosure The preparation of coal reserve and resource estimates is conducted in accordance with the Company’s prescribed internal control procedures, which are designed to ensure the reliability of such estimates.
(2) Mineral areas subjected to Pre-feasibility study in the current year. Internal Controls Disclosure The preparation of coal reserve and resource estimates is conducted in accordance with the Company’s prescribed internal control procedures, which are designed to ensure the reliability of such estimates.
The estimates and reports prepared by Marshall Miller are reviewed by our personnel to ensure such reports have been prepared in accordance 49 Table of Contents with applicable rules and regulations and that estimates are based on reasonable assumptions and reflect known facts and circumstances updated through year-end.
The estimates and reports prepared by Marshall Miller are reviewed by our personnel to ensure such reports have been prepared in accordance with applicable rules and regulations and that estimates are based on reasonable assumptions and reflect known facts and circumstances updated through year-end. Economic analysis is a required part of the process of estimating coal reserves and resources.
In determining an initial assessment for purposes of determining coal resources as of December 31, 2022, the following estimated market pricing was utilized: Complex Market Pricing Per Ton (1) (2) Aracoma $147 Kepler $155 Kingston $176 Marfork $165 McClure/Toms Creek $177 Power Mountain $140 Elk Run $138 (1) Market pricing shown on U.S. East Coast basis.
In performing an initial assessment for purposes of determining coal resources as of December 31, 2023, the following estimated market pricing was utilized: Complex Market Pricing Per Ton (1) (2) Aracoma $154 Kepler $167 Kingston $181 Marfork $171 McClure/Toms Creek $177 Power Mountain $154 Elk Run $150 (1) Market pricing shown on U.S.
The Company’s current coal reserves and resource estimates are based on the best information available and are subject to re-assessment when conditions change. Also refer to Item 1A.
The Company’s current coal reserves and resource estimates are based on the best information available and are subject to re-assessment when conditions change. Also refer to Item 1A. Risk Factors for further discussion of risks associated with the estimates of the Company’s reserves and resources. The following map shows the locations of our material mining properties and corporate headquarters:
Economic analysis is a required part of the process of estimating coal reserves and resources. For a coal reserve or resource to be considered economic, generally revenue generated from its sale must exceed its total cost of production (including consideration of development, capital, and operating costs).
For a coal reserve or resource to be considered economic, generally revenue generated from its sale must exceed its total cost of production (including consideration of development, capital, and operating costs). In determining coal reserves as of December 31, 2023, the following estimated market pricing was utilized: Coal quality Market Pricing Per Ton (1) (2) High-Vol. A $162 High- Vol.
The following is a summary of the changes in our coal reserves and resources for the year-ended December 31, 2022: Changes in Coal Reserves (Tons in thousands) 12/31/2021 12/31/2022 Mining Complex Coal Reserves Acquired/Leased Production Pre-Feasibility (1) Change in Mine Plan Other (2) Coal Reserves Met Aracoma 44,181 1,803 (2,612) — (3,258) — 40,114 Kepler 48,611 — (1,813) — (2,844) — 43,954 Kingston 32,489 633 (2,112) — 1,882 — 32,892 Marfork 145,741 — (4,123) 8,106 (2,072) (41,442) 106,210 McClure/Toms Creek 80,077 — (3,538) — (4,445) — 72,094 Elk Run — — — — — 41,442 41,442 Total 351,099 2,436 (14,198) 8,106 (10,737) — 336,706 (1) Mineral areas initially subjected to Pre-feasibility study in current period.
The following is a summary of the changes in our coal reserves and resources for the year-ended December 31, 2023: Changes in Coal Reserves (Tons in thousands) 12/31/2022 12/31/2023 Mining Complex Coal Reserves Acquired/Leased Pre-Feasibility (1) Change in Mine Plan Divested (2) Production Coal Reserves Met Aracoma 40,114 — 2,957 820 — (2,615) 41,276 Kepler 43,954 — — 116 (917) (1,963) 41,190 Kingston 32,892 — 6,262 1,724 — (2,221) 38,657 Marfork 106,210 354 — (4,455) — (4,456) 97,653 McClure/Toms Creek 72,094 — 612 (274) — (3,685) 68,747 Elk Run 41,442 — — — (12,985) (23) 28,434 Total 336,706 354 9,831 (2,069) (13,902) (14,963) 315,957 (1) Mineral areas subjected to Pre-feasibility study in current period.
(2) Inferred Resources were not considered material and have not been presented. 51 Table of Contents Coal Resources (1) (Tons in thousands) Coal Type/Quality Met Coal by Volatility Thermal Sulfur Expected Recovery Percentage (2) Mining Complex Location High-Vol A High-Vol B Mid-Vol Low-Vol Thermal > 1% Met Aracoma WV — 143,815 — — — 60,889 82,926 21 % Kepler WV — — 7,334 26,912 — 30,514 3,732 48 % Kingston WV — — 873 20,580 — 21,453 — 28 % Marfork WV 105,070 — 3,729 43,799 6,517 58,024 101,091 31 % McClure/Toms Creek VA 299 — 42,745 — — 23,139 19,905 25 % Power Mountain WV — 57,777 — — — 7,760 50,017 29 % Elk Run WV 14,204 53,679 — — — — 67,883 28 % Total 119,573 255,271 54,681 91,291 6,517 201,779 325,554 (1) Amounts shown exclusive of coal reserves.
Coal Resources (1) (Tons in thousands) Coal Type/Quality Met Coal by Volatility Thermal Sulfur Expected Recovery Percentage (2) Mining Complex Location High-Vol A High-Vol B Mid-Vol Low-Vol Thermal > 1% Met Aracoma WV — 131,383 — — — 58,564 72,819 21 % Kepler WV — — 6,948 25,918 — 30,514 2,352 48 % Kingston WV — — 3,189 23,473 — 26,662 — 27 % Marfork WV 104,124 — 3,684 43,799 4,829 60,693 95,743 30 % McClure/Toms Creek VA 8,049 — 35,580 — — 23,724 19,905 24 % Power Mountain WV — 54,683 — — — 5,938 48,745 31 % Elk Run WV — 67,883 — — — — 67,883 28 % Total 112,173 253,949 49,401 93,190 4,829 206,095 307,447 (1) Amounts shown exclusive of coal reserves.
In determining coal reserves as of December 31, 2022, the following estimated market pricing was utilized: Coal quality Market Pricing Per Ton (1) (2) High-Vol. A $151 High- Vol. B $130 Mid-Vol. $152 Low-Vol. $152 Thermal $140 (1) Market pricing shown on U.S. East Coast basis.
B $140 Mid-Vol. $163 Low-Vol. $163 Thermal $74 (1) Market pricing shown on U.S. East Coast basis.
The following is a summary of the Company’s estimated in situ inferred, indicated, and measured coal resources (exclusive of coal reserves) as of December 31, 2022 as determined by Marshall Miller: Coal Resources (1) (Tons in thousands) In Situ Coal Resources (2) Reserve Control Stage / Permit Status Exploration Stage Mining Complex Location Total Indicated Measured Owned Leased Permitted Not Permitted Met Aracoma WV 143,815 53,540 90,275 46,647 97,168 26,686 117,129 Kepler WV 34,246 26,223 8,023 596 33,650 4,895 29,351 Kingston WV 21,453 21,075 378 13,031 8,422 873 20,580 Marfork WV 159,115 49,056 110,059 61,168 97,947 13,946 145,169 McClure/Toms Creek VA 43,044 12,706 30,338 — 43,044 20,486 22,558 Power Mountain WV 57,777 24,617 33,160 18,308 39,469 7,761 50,016 Elk Run WV 67,883 22,360 45,523 — 67,883 8,503 59,380 Total 527,333 209,577 317,756 139,750 387,583 83,150 444,183 (1) Amounts shown exclusive of coal reserves.
The following is a summary of the Company’s estimated in situ inferred, indicated, and measured coal resources (exclusive of coal reserves) as of December 31, 2023 as determined by Marshall Miller: Coal Resources (1) (Tons in thousands) In Situ Coal Resources (2) Resource Control Stage / Permit Status Exploration Stage Mining Complex Location Total Indicated Measured Owned Leased Permitted Not Permitted Met Aracoma WV 131,383 49,707 81,676 46,592 84,791 20,668 110,715 Kepler WV 32,866 25,857 7,009 596 32,270 3,901 28,965 Kingston WV 26,662 10,957 15,705 13,864 12,798 — 26,662 Marfork WV 156,436 47,377 109,059 61,168 95,268 12,408 144,028 McClure/Toms Creek VA 43,629 13,102 30,527 — 43,629 19,060 24,569 Power Mountain WV 54,683 23,739 30,944 16,695 37,988 22,446 32,237 Elk Run WV 67,883 22,360 45,523 — 67,883 8,681 59,202 Total 513,542 193,099 320,443 138,915 374,627 87,164 426,378 (1) Amounts shown exclusive of coal reserves.
Coal Reserves (Tons in thousands) Coal Type/Quality Met Coal by Volatility Thermal Sulfur Recovery Percentage (2) Mining Complex Location High-Vol A High-Vol B Mid-Vol Low-Vol Thermal (1) > 1% Met Aracoma WV — 40,114 — — — 37,643 2,471 26 % Kepler WV — — 5,943 38,011 — 43,037 917 42 % Kingston WV 15,452 — 1,526 9,724 6,190 13,787 19,105 41 % Marfork WV 71,315 — 2,620 26,194 6,081 93,279 12,931 31 % McClure/Toms Creek VA 7,272 — 63,052 — 1,770 72,094 — 31 % Elk Run WV 29,895 11,547 — — — 33,115 8,327 22 % Total 123,934 51,661 73,141 73,929 14,041 292,955 43,751 50 Table of Contents (1) Kingston thermal reserves primarily proven and >1% sulfur; Marfork and McClure/Toms Creek thermal reserves primarily probable and (2) Recovery percentage defined as estimated coal reserves divided by related estimated in situ measured and indicated coal resources.
Coal Reserves (Tons in thousands) Coal Type/Quality Met Coal by Volatility Thermal Sulfur Recovery Percentage (2) Mining Complex Location High-Vol A High-Vol B Mid-Vol Low-Vol Thermal (1) > 1% Met Aracoma WV — 41,276 — — — 36,836 4,440 28 % Kepler WV — — 5,026 36,164 — 41,190 — 42 % Kingston WV 20,584 — 1,632 9,722 6,719 10,528 28,129 41 % Marfork WV 64,318 — 2,555 26,132 4,648 88,588 9,065 30 % McClure/Toms Creek VA 6,265 — 60,936 — 1,546 68,747 — 31 % Elk Run WV — 28,434 — — — 28,434 — 21 % Total 91,167 69,710 70,149 72,018 12,913 274,323 41,634 (1) Kingston thermal reserves primarily proven and >1% sulfur; Marfork and McClure/Toms Creek thermal reserves primarily probable and (2) Recovery percentage defined as estimated coal reserves divided by related estimated in situ measured and indicated coal resources.
Removed
(2) Met and thermal pricing based on 10-year and 3-year average, respectively of forecasted pricing from pricing services.
Added
(2) Met and thermal pricing based on 10-year and 3-year average, respectively of forecasted pricing from pricing services. 54 Table of Contents The following is a summary of our estimated marketable proven and probable coal reserves as of December 31, 2023 as determined by Marshall Miller: Coal Reserves (Tons in thousands) Marketable Coal Reserves (1) Reserve Control Stage / Permit Status Production Stage Mining Complex Location Total Proven Probable Owned Leased Permitted Not Permitted Met Aracoma WV 41,276 26,252 15,024 5,473 35,803 22,664 18,612 Kepler WV 41,190 23,031 18,159 258 40,932 15,065 26,125 Kingston WV 38,657 23,051 15,606 632 38,025 22,024 16,633 Marfork WV 97,653 53,333 44,320 2,214 95,439 50,651 47,002 McClure/Toms Creek VA 68,747 47,753 20,994 — 68,747 38,648 30,099 Elk Run WV 28,434 17,341 11,093 139 28,295 4,724 23,710 Total 315,957 190,761 125,196 8,716 307,241 153,776 162,181 (1) Minimum seam height generally 30 inches for underground mines.
Removed
The following is a summary of our estimated marketable proven and probable coal reserves as of December 31, 2022 as determined by Marshall Miller: Coal Reserves (Tons in thousands) Marketable Coal Reserves (1) Reserve Control Stage / Permit Status Production Stage Mining Complex Location Total Proven Probable Owned Leased Permitted Not Permitted Met Aracoma WV 40,114 24,655 15,459 5,335 34,779 22,174 17,940 Kepler WV 43,954 24,770 19,184 258 43,696 16,910 27,044 Kingston WV 32,892 19,135 13,757 652 32,240 15,228 17,664 Marfork WV 106,210 55,393 50,817 2,199 104,011 58,424 47,786 McClure/Toms Creek VA 72,094 49,271 22,823 — 72,094 41,591 30,503 Elk Run WV 41,442 20,929 20,513 139 41,303 12,111 29,331 Total 336,706 194,153 142,553 8,583 328,123 166,438 170,268 (1) Minimum seam height 30 inches for underground mines.
Added
(2) Inferred Resources were not considered material and have not been presented.
Removed
(2) Mineral reclassified based on change in expected processing location. The Company plans to develop a new underground mine and re-start its idled Elk Run processing plant (acquired in 2018) in 2024.
Added
However, also refer to “Item 1. Business—Environmental and Other Regulatory Matters” and “Item 1A.
Removed
(2) Mineral reclassified based on change in expected processing location. The Company plans to develop a new underground mine and re-start its idled Elk Run processing plant (acquired in 2018) in 2024. Coal is expected to be processed at the Elk Run plant and loaded on the CSX rail for delivery to customers.
Added
(2) Mineral control released through transfer, termination or lapse of lease, or sale of property.
Removed
The Company’s drilling, sample preparation and laboratory analysis are conducted in accordance with internal policies and procedures. For example, core drilling is conducted by reputable third-party drillers and core samples are tagged.
Removed
Risk Factors for further discussion of risks associated with the estimates of the Company’s reserves and resources. 53 Table of Contents The following map shows the locations of our material mining properties and corporate headquarters:

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 4. Mine Safety Disclosures Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report on Form 10-K. 54 Table of Contents Part II
Biggest changeItem 4. Mine Safety Disclosures Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report on Form 10-K. 59 Table of Contents Part II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+4 added−3 removed2 unchanged
Biggest changeTotal Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (In thousands) (1),(2),(3) October 1, 2022 through October 31, 2022 404,690 $ 155.20 404,690 $ 215,663 November 1, 2022 through November 30, 2022 274,206 $ 163.86 274,206 $ 570,731 December 1, 2022 through December 31, 2022 134,028 $ 149.40 134,028 $ 550,707 812,924 812,924 (1) On March 4, 2022, the Board adopted a share repurchase program that permitted the Company to repurchase up to an aggregate amount of $150 million of the Company's common stock.
Biggest changeTotal Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (In thousands) (2)(3)(4) October 1, 2023 through October 31, 2023 132,460 $ 232.02 132,460 $ 626,717 November 1, 2023 through November 30, 2023 264,425 $ 253.67 264,425 $ 559,639 December 1, 2023 through December 31, 2023 124,118 $ 318.41 101,989 $ 527,619 521,003 498,874 (1) Includes 22,129 common shares repurchased from employees to satisfy the employees’ statutory tax withholdings upon the vesting of stock grants.
Following the effectiveness of our name change on February 1, 2021, our ticker symbol on the New York Stock Exchange changed from “CTRA” to “AMR” effective on February 4, 2021. As of December 31, 2022, there were 92 registered holders of record of our common stock. The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.
Following the effectiveness of our name change on February 1, 2021, our ticker symbol on the New York Stock Exchange changed from “CTRA” to “AMR” effective on February 4, 2021. As of December 31, 2023, there were 86 registered holders of record of our common stock. The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.
(3) We cannot estimate the number of shares that will be repurchased because decisions to purchase are subject to market and business conditions, levels of available liquidity, our cash needs, restrictions under agreements or obligations, legal or regulatory requirements or restrictions, and other relevant factors. This amount does not include $122 thousand of stock repurchase related fees.
(4) We cannot estimate the number of shares that will be repurchased because decisions to purchase are subject to market and business conditions, levels of available liquidity, our cash needs, restrictions under agreements or obligations, legal or regulatory requirements or restrictions, and other relevant factors. This amount does not include stock repurchase related fees and excise taxes.
(2) The Company adopted a capital return program in 2019, including a stock repurchase plan with no expiration date that permitted the Company to repurchase up to an aggregate amount of $100 million of the Company’s common stock. The Company suspended this stock repurchase plan on October 1, 2019 and does not currently intend to make further repurchases under it.
Refer to Note 7 for additional information. (3) The Company adopted a capital return program in 2019, including a stock repurchase plan with no expiration date that permitted the Company to repurchase up to an aggregate amount of $100 million of the Company’s common stock.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.” Dividend Policy On May 3, 2022, the Board adopted a dividend policy. Pursuant to this policy, the Board initially intended to pay aggregate cash dividends of $1.50 per share of common stock per year, with $0.375 per share paid each quarter.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.” Dividend Policy Pursuant to the dividend policy adopted by the Board on May 3, 2022, the Board declared quarterly cash dividends on the Company’s common stock during the years ended December 31, 2023 and 2022.
Future dividends are subject to declaration by the Board and depend on Alpha’s future earnings and financial condition and other relevant factors. Refer to Note 9 for further information related to the Company’s dividend program. Repurchase of Common Stock The following table summarizes information about shares of common stock that were repurchased during the fourth quarter of 2022.
Repurchase of Common Stock The following table summarizes information about shares of common stock that were repurchased during the fourth quarter of 2023.
Removed
Subsequently, during the year ended December 31, 2022, the Board increased the quarterly dividend amounts and also declared a one-time, special dividend. Refer to Note 25 for subsequent event disclosures related to the Company’s dividend program. The holders of the Company’s common stock are entitled to receive such dividends, if any, when they are declared by the Board.
Added
The holders of the Company’s common stock are entitled to receive such dividends, if any, when they are declared by the Board. The decision to declare and pay cash dividends will be made by the Board and will depend on the Company’s earnings, financial condition and other relevant factors.
Removed
On May 3, 2022 and November 4, 2022, the Board amended the share repurchase program to increase the aggregate amount the Company is permitted to repurchase to $600 million and $1 billion of the Company's common stock, respectively. Refer to Notes 9 and 25 for additional information and subsequent event disclosures.
Added
On August 2, 2023, the Board determined to end the Company’s fixed dividend program following the quarterly dividend declared and paid in the fourth quarter of 2023. Refer to Note 7 for further information related to the Company’s dividend program.
Removed
Refer to Note 9 for information about repurchases related to warrants during the current quarter. Item 6. [Reserved] 55 Table of Contents
Added
Shares that are repurchased to satisfy the employees’ statutory tax withholdings are recorded in treasury stock at cost. (2) On February 21, 2023 and October 31, 2023, the Board approved increases to the existing common share repurchase program adopted March 4, 2022, bringing the total authorization to repurchase the Company’s stock to $1.2 billion and $1.5 billion, respectively.
Added
The Company suspended this stock repurchase plan on October 1, 2019 and does not currently intend to make further repurchases under it.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

2 edited+0 added−0 removed0 unchanged
Biggest changeFinancial Statements and Supplementary Data 77 Report of Independent Registered Public Accounting Firm (PCAOB ID: 49 ) 77 Consolidated Statements of Operations for the Years Ended December 31, 2022, 2021 and 2020 79 Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2022, 2021 and 2020 80 Consolidated Balance Sheets as of December 31, 2022 and 2021 81 Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020 83 Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2022, 2021 and 2020 85 Notes to Consolidated Financial Statements 86 (1) Business and Basis of Presentation 86 (2) Summary of Significant Accounting Policies 87 (3) Discontinued Operations 93 (4) Revenue 95 (5) Accumulated Other Comprehensive Loss 96 (6) Net Income (Loss) per Share 97 (7) Inventories, Net 98 (8) Asset Impairment and Restructuring 99 (9) Capital Stock 100 (10) Property, Plant, and Equipment, Net 102 (11) Other Non-Current Assets 103 (12) Leases 103 (13) Accrued Expenses and Other Current Liabilities 105 (14) Long-Term Debt 105 (15) Acquisition-Related Obligations 107 (16) Asset Retirement Obligations 108 (17) Fair Value of Financial Instruments and Fair Value Measurements 108 (18) Income Taxes 110 (19) Employee Benefit Plans 112 3 (20) Stock-Based Compensation Awards 122 (21) Related Party Transactions 129 (22) Commitments and Contingencies 130 (23) Concentration of Credit Risk and Major Customers 133 (24) Segment Information 133 (25) Subsequent Events 135
Biggest changeFinancial Statements and Supplementary Data 80 Report of Independent Registered Public Accounting Firm (PCAOB ID: 49 ) 80 Consolidated Statements of Operations for the Years Ended December 31, 2023, 2022 and 2021 82 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2023, 2022 and 2021 83 Consolidated Balance Sheets as of December 31, 2023 and 2022 84 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2022 and 2021 86 Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2023, 2022 and 2021 88 Notes to Consolidated Financial Statements 89 (1) Business and Basis of Presentation 89 (2) Summary of Significant Accounting Policies 89 (3) Revenue 95 (4) Accumulated Other Comprehensive Loss 96 (5) Net Income per Share 97 (6) Inventories, Net 98 (7) Capital Stock 98 (8) Property, Plant, and Equipment, Net 100 (9) Other Non-current Assets 100 (10) Equity Method Investments 100 (11) Leases 101 (12) Accrued Expenses and Other Current Liabilities 103 (13) Long-Term Debt 103 (14) Acquisition-Related Obligations 104 (15) Asset Retirement Obligations 105 (16) Fair Value of Financial Instruments and Fair Value Measurements 105 (17) Income Taxes 107 (18) Employee Benefit Plans 109 3 (19) Stock-Based Compensation Awards 117 (20) Related Party Transactions 123 (21) Commitments and Contingencies 124 (22) Concentration of Credit Risk and Major Customers 127 (23) Segment Information 127
Item 6. [Reserved] 55 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 56 Results of Operations 60 Liquidity and Capital Resources 67 Critical Accounting Policies and Estimates 73 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 76 Item 8.
Item 6. [Reserved] 60 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 61 Results of Operations 64 Liquidity and Capital Resources 71 Critical Accounting Policies and Estimates 75 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 78 Item 8.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

109 edited+35 added−65 removed79 unchanged
Biggest changeYear Ended December 31, 2022 (In thousands, except for per ton data) Met All Other Consolidated Coal revenues $ 4,018,515 $ 74,472 $ 4,092,987 Less: Total Cost of coal sales (per table above) (2,355,644) (80,208) (2,435,852) GAAP Coal margin $ 1,662,871 $ (5,736) $ 1,657,135 Tons sold 15,478 900 16,378 GAAP Coal margin per ton $ 107.43 $ (6.37) $ 101.18 GAAP Coal margin $ 1,662,871 $ (5,736) $ 1,657,135 Add: Depreciation, depletion and amortization - production (1) 100,584 6,036 106,620 Add: Accretion on asset retirement obligations 13,590 10,175 23,765 Add: Amortization of acquired intangibles, net 15,699 3,799 19,498 Add: Idled and closed mine costs 21,646 6,911 28,557 Non-GAAP Coal margin $ 1,814,390 $ 21,185 $ 1,835,575 Tons sold 15,478 900 16,378 Non-GAAP Coal margin per ton $ 117.22 $ 23.54 $ 112.08 (1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. 63 Table of Contents Year Ended December 31, 2021 (In thousands, except for per ton data) Met All Other Consolidated Coal revenues $ 2,173,647 $ 78,977 $ 2,252,624 Less: Freight and handling fulfillment revenues (380,457) (520) (380,977) Non-GAAP Coal revenues $ 1,793,190 $ 78,457 $ 1,871,647 Tons sold 15,569 1,270 16,839 Non-GAAP Coal sales realization per ton $ 115.18 $ 61.78 $ 111.15 Cost of coal sales (exclusive of items shown separately below) $ 1,607,157 $ 70,625 $ 1,677,782 Depreciation, depletion and amortization - production (1) 99,963 9,362 109,325 Accretion on asset retirement obligations 13,571 12,949 26,520 Amortization of acquired intangibles, net 13,671 (427) 13,244 Total Cost of coal sales $ 1,734,362 $ 92,509 $ 1,826,871 Less: Freight and handling costs (380,457) (520) (380,977) Less: Depreciation, depletion and amortization - production (1) (99,963) (9,362) (109,325) Less: Accretion on asset retirement obligations (13,571) (12,949) (26,520) Less: Amortization of acquired intangibles, net (13,671) 427 (13,244) Less: Idled and closed mine costs (16,858) (9,720) (26,578) Non-GAAP Cost of coal sales $ 1,209,842 $ 60,385 $ 1,270,227 Tons sold 15,569 1,270 16,839 Non-GAAP Cost of coal sales per ton $ 77.71 $ 47.55 $ 75.43 (1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Biggest changeYear Ended December 31, 2022 (In thousands, except for per ton data) Met All Other Consolidated Coal revenues $ 4,018,515 $ 74,472 $ 4,092,987 Less: Total Cost of coal sales (per table above) (2,355,644) (80,208) (2,435,852) GAAP Coal margin $ 1,662,871 $ (5,736) $ 1,657,135 Tons sold 15,478 900 16,378 GAAP Coal margin per ton $ 107.43 $ (6.37) $ 101.18 GAAP Coal margin $ 1,662,871 $ (5,736) $ 1,657,135 Add: Depreciation, depletion and amortization - production (1) 100,584 6,036 106,620 Add: Accretion on asset retirement obligations 13,590 10,175 23,765 Add: Amortization of acquired intangibles, net 15,699 3,799 19,498 Add: Idled and closed mine costs 21,646 6,911 28,557 Non-GAAP Coal margin $ 1,814,390 $ 21,185 $ 1,835,575 Tons sold 15,478 900 16,378 Non-GAAP Coal margin per ton $ 117.22 $ 23.54 $ 112.08 (1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. 68 Table of Contents Year Ended December 31, Increase (Decrease) (In thousands, except for per ton data) 2023 2022 $ or Tons % Met segment operations: Tons sold 16,543 15,478 1,065 6.9 % Non-GAAP Coal revenues $ 2,967,860 $ 3,489,472 $ (521,612) (14.9) % Non-GAAP Coal sales realization per ton $ 179.40 $ 225.45 $ (46.05) (20.4) % All Other category: Tons sold 529 900 (371) (41.2) % Non-GAAP Coal revenues $ 49,760 $ 74,452 $ (24,692) (33.2) % Non-GAAP Coal sales realization per ton $ 94.06 $ 82.72 $ 11.34 13.7 % Non-GAAP Coal revenues.
We strongly disagree with the DCMWC’s substantially higher collateral determination and the methodology through which the calculation was derived. In February 2021, the U.S. Department of Labor (“DOL”) withdrew its Federal Register notice seeking comments on its bulletin describing its new method of calculating collateral requirements. The Department removed the bulletin from its website in May 2021.
We strongly disagree with the DCMWC’s substantially higher collateral determination and the methodology through which the calculation was derived. In February 2021, the U.S. Department of Labor (“DOL”) withdrew its Federal Register notice seeking comments on its bulletin describing its new method of calculating collateral requirements. The DOL removed the bulletin from its website in May 2021.
Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, and capital investments.
Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments and other factors.
Principal goods and services we use in our operations include maintenance and repair parts and services, electricity, fuel, roof control and support items, explosives, tires, conveyance structure, ventilation supplies and lubricants. Our management strives to aggressively control costs and improve operating performance to mitigate external cost pressures.
The principal goods and services we use in our operations include maintenance and repair parts and services, electricity, fuel, roof control and support items, explosives, tires, conveyance structure, ventilation supplies and lubricants. Our management strives to aggressively control costs and improve operating performance to mitigate external cost pressures.
Participants accrued benefits either based on certain formulas, the participant’s compensation prior to retirement or plan specified amounts for each year of service. Benefits are frozen under these Pension Plans. Annual funding contributions to the Pension Plans are made as recommended by consulting actuaries based upon the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) funding standards.
Participants accrued benefits either based on certain formulas, the participant’s compensation prior to retirement or plan specified amounts for each year of service. Benefits are frozen under the Pension Plan. Annual funding contributions to the Pension Plan are made as recommended by consulting actuaries based upon the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) funding standards.
As a result of this application, the DCMWC notified us in a letter dated February 21, 2020 that we were reauthorized to self-insure certain of our black lung obligations for a period of one-year from February 21, 2020. The DCMWC reauthorization is contingent, however, upon us providing collateral of $65.7 million to secure certain of our black lung obligations.
As a result of this application, the DCMWC notified us in a letter dated February 21, 2020 that we were reauthorized to self-insure certain of our black lung obligations for a period of one-year from February 21, 2020. The DCMWC reauthorization was contingent, however, upon us providing collateral of $65.7 million to secure certain of our black lung obligations.
In addition to the one reportable segment, our All Other category includes general corporate overhead and corporate assets and liabilities, our former CAPP - Thermal operations consisting of one active mine and one preparation plant in West Virginia, and the elimination of certain intercompany activity, as well as expenses associated with certain idled/closed mines.
In addition to the one reportable segment, our All Other category includes general corporate overhead and corporate assets and liabilities, our former CAPP - Thermal operations consisting of one preparation plant in West Virginia, and the elimination of certain intercompany activity, as well as expenses associated with certain idled/closed mines.
For discussion on results of operations and financial condition pertaining to 2020 and year-over-year comparisons between 2021 and 2020, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2021.
For discussion on results of operations and financial condition pertaining to 2021 and year-over-year comparisons between 2022 and 2021, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022.
This collateral requirement, which the DCMWC advises represents 70% of our estimated future liability according to the DCMWC’s estimation methodology, is an increase of approximately 2,400% from the approximately $2.6 million in collateral which we (previously by Alpha Natural Resources Inc. prior to the Merger) have provided since 2016 to secure these self-insured black lung obligations.
This collateral requirement, which the DCMWC advises represents 70% of our estimated future liability according to the DCMWC’s estimation methodology, would have been an increase of approximately 2,400% from the approximately $2.6 million in collateral which we (previously by Alpha Natural Resources Inc. prior to the Merger) have provided since 2016 to secure these self-insured black lung obligations.
We may also experience difficult geologic conditions, delays in obtaining 59 Table of Contents permits, labor shortages, unforeseen equipment problems, and unexpected shortages of critical materials such as tires, fuel and explosives that may result in adverse cost increases and limit our ability to produce at forecasted levels.
We may also experience difficult geologic conditions, delays in obtaining permits, labor shortages, unforeseen equipment problems, and unexpected shortages of critical materials such as tires, fuel and explosives that may result in adverse cost increases and limit our ability to produce at forecasted levels.
Item 7. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis provides a narrative of our results of operations and financial condition for the years ended December 31, 2022 and 2021.
Item 7. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis provides a narrative of our results of operations and financial condition for the years ended December 31, 2023 and 2022.
In addition, we purchased substantially all of the assets of a mining equipment component manufacturing and rebuilding business (refer to Note 2 for further information).
In addition, we purchased substantially all of the assets of a mining equipment component manufacturing and rebuilding business (refer to Note 2 for further information). Financing Activities.
The Pension Plans investment targets are 58% equity securities and 42% fixed income funds (refer to Note 19 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for additional disclosures on this assumption). Investments are rebalanced on a periodic basis to stay within these targeted guidelines.
The Pension Plan investment targets are 58% equity securities and 42% fixed income funds (refer to Note 18 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for additional disclosures on this assumption). Investments are rebalanced on a periodic basis to stay within these targeted guidelines.
Results of Operations Our results of operations for the years ended December 31, 2022 and 2021 are discussed in these “Results of Operations” presented below.
Results of Operations Our results of operations for the years ended December 31, 2023 and 2022 are discussed in these “Results of Operations” presented below.
If our appeal is unsuccessful, we may be required to provide additional letters of credit in order to receive self-insurance reauthorization from the DCMWC or insure these black lung obligations through a third-party provider, which would likely also require us to provide additional collateral.
If our appeal is unsuccessful, we may be required to provide additional LCs in order to receive self-insurance reauthorization from the DCMWC or insure these black lung obligations through a third-party provider, which would likely also require us to provide additional collateral.
The weighted average discount rate used to determine black lung benefit obligations was 5.42% for the year ended December 31, 2022. The differences resulting from actual versus assumed discount rates are amortized into black lung net periodic benefit cost over the remaining average life of the active plan participants.
The weighted average discount rate used to determine black lung benefit obligations was 5.13% for the year ended December 31, 2023. The differences resulting from actual versus assumed discount rates are amortized into black lung net periodic benefit cost over the remaining average life of the active plan participants.
We may need to raise additional funds if market conditions deteriorate, and we may not be able to do so in a timely fashion, on terms acceptable to us, or at all; or one or more of our assumptions prove to be incorrect or if we choose to 67 Table of Contents expand our acquisition, exploration, appraisal, or development efforts or any other activity more rapidly than we presently anticipate.
We may need to raise additional funds if market conditions deteriorate, if one or more of our assumptions prove to be incorrect or if we choose to expand our acquisition or development efforts or any other activity more rapidly than we presently anticipate and we may not be able to do so in a timely fashion, on terms acceptable to us, or at all.
Refer to Note 16 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for reclamation disclosures including a table summarizing the changes in asset retirement obligations for the years ended December 31, 2022 and 2021. Retirement Plans.
Refer to Note 15 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for reclamation disclosures including a table summarizing the changes in asset retirement obligations for the years ended December 31, 2023 and 2022. Retirement Plans.
A one percentage-point increase in the discount rate would increase the net periodic black lung benefit cost for the year ended December 31, 2022 by approximately $0.3 million and decrease the projected benefit obligation as of December 31, 2022 by approximately $8.4 million.
A one percentage-point increase in the discount rate would increase the net periodic black lung benefit cost for the year ended December 31, 2023 by approximately $0.4 million and decrease the projected benefit obligation as of December 31, 2023 by approximately $10.3 million.
Our domestic sales contracts are typically priced free on board (“FOB”) at our mines and on a short ton basis. Our international sales contracts are typically priced FOB at the shipping port from which such coal is delivered and on a metric ton basis.
Our domestic sales contracts are typically priced free on board (“FOB”) at our mines and on a short 63 Table of Contents ton basis. Our international sales contracts are typically priced FOB at the shipping port from which such coal is delivered and on a metric ton basis.
The expected long-term rate of return on plan assets assumption used to determine net periodic benefit expense was 5.80% for the year ended December 31, 2022. The expected long-term rate of return on plan assets assumption to be used in 2023 is expected to be 6.20%.
The expected long-term rate of return on plan assets assumption used to determine net periodic benefit expense was 6.20% for the year ended December 31, 2023. The expected long-term rate of return on plan assets assumption to be used in 2024 is expected to be 6.20%.
Sales of thermal coal were 2.2 million tons and 2.9 million tons, respectively, and accounted for approximately 13% and 17%, respectively, of our coal sales volume. Our sales of met coal were made primarily to steel companies in the northeastern and midwestern regions of the United States and in several countries in Asia, Europe, and the Americas.
Sales of thermal coal were 1.8 million tons and 2.2 million tons, respectively, and accounted for approximately 10% and 13%, respectively, of our coal sales volume. Our sales of met coal were made primarily to steel companies in the northeastern and midwestern regions of the United States and in several countries in Asia, Europe, and the Americas.
We also sell coal produced by others, some of which is processed and/or blended with coal produced from our mines prior to resale, with the remainder purchased for resale.
We produce, process, and sell met coal and thermal coal. We also sell coal produced by others, some of which is processed and/or blended with coal produced from our mines prior to resale, with the remainder purchased for resale.
The weighted average discount rate used to determine the pension benefit obligations was 5.42% for the year ended December 31, 2022. The differences resulting from actual versus assumed discount rates are amortized into pension net periodic benefit expense (credit) over the remaining average life of the active plan participants.
The weighted average discount rate used to determine the pension benefit obligation was 5.10% for the year ended December 31, 2023. The differences resulting from actual versus assumed discount rates are amortized into pension net periodic benefit expense (credit) over the remaining average life of the active plan participants.
Refer to Note 74 Table of Contents 19 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for disclosures summarizing these underlying assumptions and the changes in these projected benefit obligations for the years ended December 31, 2022 and 2021. Income Taxes.
Refer to Note 18 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for disclosures summarizing these underlying assumptions and the changes in these projected benefit obligations for the years ended December 31, 2023 and 2022. 77 Table of Contents Income Taxes.
In order to provide the required financial assurance, we generally use surety bonds for post-mining reclamation and workers’ compensation obligations. We also use bank letters of credit to collateralize certain obligations.
In order to provide the required financial assurance, we generally use surety bonds for post-mining reclamation and workers’ compensation obligations. We also use bank LCs to collateralize certain obligations.
GAAP” or “GAAP”). Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “non-GAAP coal revenues,” “non-GAAP cost of coal sales,” “non-GAAP coal margin,” and “Adjusted cost of produced coal sold.” We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments.
Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “non-GAAP coal revenues,” “non-GAAP cost of coal sales,” and “non-GAAP coal margin.” We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments.
At December 31, 2022, a valuation allowance of $53.8 million has been provided on deferred tax assets not expected to provide future tax benefits. Refer to Note 18 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for additional disclosures on income taxes. Asset Impairment. U.S.
At December 31, 2023, a valuation allowance of $48.1 million has been provided on deferred tax assets not expected to provide future tax benefits. Refer to Note 17 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for additional disclosures on income taxes. Asset Impairment. U.S.
Refer to Note 18 for additional information. 61 Table of Contents Non-GAAP Financial Measures The discussion below contains “non-GAAP financial measures.” These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S.
Refer to Note 17 for additional information. Non-GAAP Financial Measures The discussion below contains “non-GAAP financial measures.” These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP” or “GAAP”).
We believe that cash on hand and cash generated from our operations will be sufficient to meet our working capital requirements, anticipated capital expenditures, income taxes, debt service requirements, acquisition-related obligations, and reclamation obligations for the next 12 months and the reasonably foreseeable future. We may also use cash in accordance with our share repurchase program and dividend program.
We believe that cash on hand and cash generated from our operations will be sufficient to meet our working capital, anticipated capital expenditure, income tax, debt service, collateral and reclamation obligations requirements for the next 12 months and the reasonably foreseeable future. We may also use cash in accordance with our share repurchase program.
The increase in net cash used in financing activities for the year ended December 31, 2022 compared to the year ended December 31, 2021 was primarily driven by the voluntary prepayments of our remaining outstanding principal borrowings under the Term Loan Credit Facility and the common stock repurchases under our share repurchase program during the current period (refer to Note 9 and Note 14 for further information).
The increase in net cash used in financing activities for the year ended December 31, 2022 compared to the year ended December 31, 2021 was primarily driven by the voluntary prepayments of our remaining outstanding principal borrowings under the Term Loan Credit Facility and the common stock repurchases under our share repurchase program during 2022.
As of December 31, 2022, we have one reportable segment: Met. Our Met segment operations consist of high-quality met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch. The coal produced by our Met segment operations is predominantly met coal with some amounts of thermal coal being produced as a byproduct of mining.
Our Met segment operations consist of high-quality met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch. The coal produced by our Met segment operations is predominantly met coal with some amounts of thermal coal being produced as a byproduct of mining.
A one percentage-point increase in the discount rate would increase the net periodic pension cost for the year ended December 31, 2022 by approximately $1.5 million and decrease the projected benefit obligation as of December 31, 2022 by approximately $47.5 million.
A one percentage-point increase in the discount rate would increase the net periodic pension cost for the year ended December 31, 2023 by approximately $1.7 million and decrease the projected benefit obligation as of December 31, 2023 by approximately $48.7 million.
The corresponding effects of a one percentage-point decrease in discount rate would decrease the net periodic pension cost for the year ended December 31, 2022 by approximately $2.0 million and increase the projected benefit obligation as of December 31, 2022 by approximately $57.5 million. Coal Workers’ Pneumoconiosis.
The corresponding effects of a one percentage-point decrease in discount rate would decrease the net periodic pension cost for the year ended December 31, 2023 by approximately $2.2 million and increase the projected benefit obligation as of December 31, 2023 by approximately $59.1 million. Coal Workers’ Pneumoconiosis.
As of December 31, 2022, we had estimated black lung benefit obligations of approximately $90.9 million, including amounts reported as current, which are net of assets of $2.5 million that are held in a tax-exempt trust fund. For the year ended December 31, 2022, we recorded a net periodic benefit cost of $6.6 million for our black lung benefit obligations.
As of December 31, 2023, we had estimated black lung benefit obligations of approximately $107.3 million, including amounts reported as current, which are net of assets of $2.6 million that are held in a tax-exempt trust fund. For the year ended December 31, 2023, we recorded a net periodic benefit cost of $3.8 million for our black lung benefit obligations.
Refer to Note 19 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for a summary of these assumptions and additional disclosures related to our Pension Plans.
Refer to Note 18 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10- 76 Table of Contents K for a summary of these assumptions and additional disclosures related to our Pension Plan.
The corresponding effects of a one percentage-point decrease in discount rate would decrease the net periodic black lung benefit cost for the year ended December 31, 2022 by approximately $0.4 million and increase the projected benefit obligation as of December 31, 2022 by approximately $10.2 million.
The corresponding effects of a one percentage-point decrease in discount rate would decrease the net periodic black lung benefit cost for the year ended December 31, 2023 by approximately $0.5 million and increase the projected benefit obligation as of December 31, 2023 by approximately $12.6 million.
At December 31, 2022, we had recorded asset retirement obligation liabilities of $179.0 million, including amounts reported as current. While the precise amount of these future costs cannot be determined with certainty, as of December 31, 2022, we estimate that the aggregate undiscounted cost of final mine closures is approximately $473.3 million.
At December 31, 2023, we had recorded asset retirement obligation liabilities of $205.4 million, including amounts reported as current. While the precise amount of these future costs cannot be determined with certainty, as of December 31, 2023, we estimate that the aggregate undiscounted cost of final mine closures is approximately $486.6 million.
The increase in net cash provided by operating activities for the year ended December 31, 2021 compared to the year ended December 31, 2020 was primarily attributable to the improvement in our results from operations as discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2021, partially offset by changes in operating assets and liabilities.
The increase in net cash provided by operating activities for the year ended December 31, 2022 compared to the year ended December 31, 2021 was primarily attributable to the improvement in our results from operations as discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022, primarily offset by an increase in deposits related to our January 2023 dividend payment and payments on operating liabilities.
Amortization of acquired intangibles, net increased $6.3 million, or 47.2%, for the year ended December 31, 2022 compared to the prior year period. The increase was primarily driven by accelerated current period amortization of certain acquired mine permits as a result of an update to the estimated life of the associated mines. Selling, general and administrative.
Amortization of acquired intangibles, net decreased $11.0 million, or 56.3%, for the year ended December 31, 2023 compared to the prior year period. The decrease was primarily driven by accelerated prior period amortization of certain acquired mine permits as a result of an update to the estimated life of the associated mines. Selling, general and administrative.
Refer to Note 19 for further disclosures related to this obligation. Discontinued Operations Refer to Note 3 for disclosure information on discontinued operations. DCMWC Reauthorization Process In July 2019, the U.S. Department of Labor (Division of Coal Mine Workers’ Compensation or “DCMWC”) began implementing a new authorization process for all self-insured coal mine operators.
Refer to Note 18 for further disclosures related to the Pension Plan and the related obligation. DCMWC Reauthorization Process In July 2019, the U.S. Department of Labor (Division of Coal Mine Workers’ Compensation or “DCMWC”) began implementing a new authorization process for all self-insured coal mine operators.
Access to additional funds from liquidity-generating transactions or other sources of external financing is subject to market conditions and certain limitations, including our credit rating and covenant restrictions in our credit facilities.
We may decide to pursue or not pursue these opportunities at any time. Access to additional funds from liquidity-generating transactions or other sources of external financing is subject to market conditions and certain limitations, including our credit rating and covenant restrictions in our credit facilities.
Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006. We contributed $3.4 million to the Pension Plans in 2022. We expect to contribute $25.0 million to the Pension Plans in 2023, which includes amounts above the estimated minimum required contributions for the 2023 plan year.
Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006. We contributed $25.0 million to the Pension Plan in 2023 and expect to contribute $25.0 million in 2024, including amounts above the estimated minimum required contributions for the respective plan years.
As of December 31, 2022, we were not in a Liquidity Period. 72 Table of Contents Critical Accounting Policies and Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.
Critical Accounting Policies and Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets 75 Table of Contents and liabilities.
The net change in cash, cash equivalents, and restricted cash was attributable to the following: Year Ended December 31, 2022 2021 2020 Cash flows (in thousands): Net cash provided by operating activities $ 1,484,005 $ 174,943 $ 129,236 Net cash used in investing activities (329,357) (89,855) (209,969) Net cash used in financing activities (981,868) (147,045) (22,376) Net increase (decrease) in cash and cash equivalents and restricted cash $ 172,780 $ (61,957) $ (103,109) Operating Activities.
The net change in cash, cash equivalents, and restricted cash was attributable to the following: Year Ended December 31, 2023 2022 2021 Cash flows (in thousands): Net cash provided by operating activities $ 851,159 $ 1,484,005 $ 174,943 Net cash used in investing activities (166,000) (329,357) (89,855) Net cash used in financing activities (656,428) (981,868) (147,045) Net increase (decrease) in cash and cash equivalents and restricted cash $ 28,731 $ 172,780 $ (61,957) Operating Activities.
Our sales of thermal coal were made primarily to large 57 Table of Contents utilities and industrial customers throughout the United States. For the years ended December 31, 2022 and 2021 approximately 81% and 76%, respectively, of our coal revenues were derived from coal sales made to customers outside the United States.
Our sales of thermal coal were made primarily to large utilities and industrial customers both in the United States and across the world. For the years ended December 31, 2023 and 2022 approximately 74% and 81%, respectively, of our coal revenues were derived from coal sales made to customers outside the United States.
Income Tax Expense The following table summarizes information about our income tax expense during the years ended December 31, 2022 and 2021: Year Ended December 31, Increase (Decrease) (In thousands) 2022 2021 $ % Income tax expense $ (106,205) $ (3,408) $ (102,797) (3,016.3) % Income taxes.
Income Tax Expense The following table summarizes information about our income tax expense during the years ended December 31, 2023 and 2022: Year Ended December 31, Increase (Decrease) (In thousands) 2023 2022 $ % Income tax expense $ (123,503) $ (106,205) $ (17,298) (16.3) % Income taxes.
Additionally, we have long-term liabilities relating to asset retirement obligations, pension benefits, black lung benefits, postretirement life insurance benefits, and workers’ compensation benefits.
See below for further discussion. 72 Table of Contents Additionally, we have long-term liabilities relating to asset retirement obligations, pension benefits, black lung benefits, postretirement life insurance benefits, and workers’ compensation benefits.
As opportunities arise, we will continue to consider the possibility of refinancing, repayment or repurchase of any outstanding debt and amendment of our credit facility, and may consider the sale of other assets or businesses, and such other measures as we believe circumstances warrant. We may decide to pursue or not pursue these opportunities at any time.
We continually strive to enhance our capital structure and financial flexibility. As opportunities arise, we will continue to consider the possibility of refinancing or repayment of any outstanding debt and amendment of our credit facility, and may consider the sale of other assets or businesses, and such other measures as we believe circumstances warrant.
Risk Factors” in this Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. New Accounting Pronouncements. Refer to Note 2 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for disclosures related to new accounting policies adopted.
Refer to Note 2 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for disclosures related to new accounting policies adopted.
The following tables summarize certain financial information relating to our coal operations for the years ended December 31, 2022 and 2021: 62 Table of Contents Year Ended December 31, 2022 (In thousands, except for per ton data) Met All Other Consolidated Coal revenues $ 4,018,515 $ 74,472 $ 4,092,987 Less: Freight and handling fulfillment revenues (529,043) (20) (529,063) Non-GAAP Coal revenues $ 3,489,472 $ 74,452 $ 3,563,924 Tons sold 15,478 900 16,378 Non-GAAP Coal sales realization per ton $ 225.45 $ 82.72 $ 217.60 Cost of coal sales (exclusive of items shown separately below) $ 2,225,771 $ 60,198 $ 2,285,969 Depreciation, depletion and amortization - production (1) 100,584 6,036 106,620 Accretion on asset retirement obligations 13,590 10,175 23,765 Amortization of acquired intangibles, net 15,699 3,799 19,498 Total Cost of coal sales $ 2,355,644 $ 80,208 $ 2,435,852 Less: Freight and handling costs (529,043) (20) (529,063) Less: Depreciation, depletion and amortization - production (1) (100,584) (6,036) (106,620) Less: Accretion on asset retirement obligations (13,590) (10,175) (23,765) Less: Amortization of acquired intangibles, net (15,699) (3,799) (19,498) Less: Idled and closed mine costs (21,646) (6,911) (28,557) Non-GAAP Cost of coal sales $ 1,675,082 $ 53,267 $ 1,728,349 Tons sold 15,478 900 16,378 Non-GAAP Cost of coal sales per ton $ 108.22 $ 59.19 $ 105.53 (1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Year Ended December 31, 2023 (In thousands, except for per ton data) Met All Other Consolidated Coal revenues $ 3,406,643 $ 49,987 $ 3,456,630 Less: Total Cost of coal sales (per table above) (2,452,254) (73,575) (2,525,829) GAAP Coal margin $ 954,389 $ (23,588) $ 930,801 Tons sold 16,543 529 17,072 GAAP Coal margin per ton $ 57.69 $ (44.59) $ 54.52 GAAP Coal margin $ 954,389 $ (23,588) $ 930,801 Add: Depreciation, depletion and amortization - production (1) 125,716 9,952 135,668 Add: Accretion on asset retirement obligations 14,886 10,614 25,500 Add: Amortization of acquired intangibles, net 8,523 — 8,523 Add: Idled and closed mine costs 16,983 10,015 26,998 Non-GAAP Coal margin $ 1,120,497 $ 6,993 $ 1,127,490 Tons sold 16,543 529 17,072 Non-GAAP Coal margin per ton $ 67.73 $ 13.22 $ 66.04 (1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions. 67 Table of Contents Year Ended December 31, 2022 (In thousands, except for per ton data) Met All Other Consolidated Coal revenues $ 4,018,515 $ 74,472 $ 4,092,987 Less: Freight and handling fulfillment revenues (529,043) (20) (529,063) Non-GAAP Coal revenues $ 3,489,472 $ 74,452 $ 3,563,924 Tons sold 15,478 900 16,378 Non-GAAP Coal sales realization per ton $ 225.45 $ 82.72 $ 217.60 Cost of coal sales (exclusive of items shown separately below) $ 2,225,771 $ 60,198 $ 2,285,969 Depreciation, depletion and amortization - production (1) 100,584 6,036 106,620 Accretion on asset retirement obligations 13,590 10,175 23,765 Amortization of acquired intangibles, net 15,699 3,799 19,498 Total Cost of coal sales $ 2,355,644 $ 80,208 $ 2,435,852 Less: Freight and handling costs (529,043) (20) (529,063) Less: Depreciation, depletion and amortization - production (1) (100,584) (6,036) (106,620) Less: Accretion on asset retirement obligations (13,590) (10,175) (23,765) Less: Amortization of acquired intangibles, net (15,699) (3,799) (19,498) Less: Idled and closed mine costs (21,646) (6,911) (28,557) Non-GAAP Cost of coal sales $ 1,675,082 $ 53,267 $ 1,728,349 Tons sold 15,478 900 16,378 Non-GAAP Cost of coal sales per ton $ 108.22 $ 59.19 $ 105.53 (1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that is presented as a supplemental measure and is not intended to replace financial performance or liquidity measures determined in accordance with GAAP. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies.
Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies.
Refer to Note Note 15 and Note 17 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K. 75 Table of Contents For a further discussion of the factors that could result in a change in our assumptions, see “Item 1A.
Refer to Note 2 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K. For a further discussion of the factors that could result in a change in our assumptions, see “Item 1A. Risk Factors” in this Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. New Accounting Pronouncements.
Cash Collateral We are required to provide cash collateral to secure our obligations under certain worker’s compensation, black lung, reclamation-related obligations, financial payments and other performance obligations, and other operating agreements. Additionally, we have short-term restricted cash held in escrow related to our Contingent Revenue Obligation (refer to Note 15).
Cash Collateral We are required to provide cash collateral to secure our obligations under certain worker’s compensation, black lung, reclamation-related obligations, financial payments and other performance obligations, and other operating agreements.
A significant increase in these collateral obligations would have a materially adverse effect on our liquidity. Share Repurchase Program Refer to Note 9 and “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” for information on the share repurchase program and the shares repurchased during the current period.
Share Repurchase Program Refer to Note 7 and “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” for information on the share repurchase program and the shares repurchased during the current period.
Dividend Program Refer to Note 9 and Note 25 for information related to our dividend program, the cash dividends declared during the current period, and the related subsequent event disclosures which includes the declaration of the quarterly cash dividend. 71 Table of Contents Cash Flows Cash, cash equivalents, and restricted cash increased by $172.8 million and decreased by $62.0 million and $103.1 million over the years ended December 31, 2022, 2021, and 2020, respectively.
Dividend Program Refer to Note 7 for information related to our dividend program. 74 Table of Contents Cash Flows Cash, cash equivalents, and restricted cash increased by $28.7 million and $172.8 million and decreased by $62.0 million over the years ended December 31, 2023, 2022, and 2021, respectively.
Any acquisition opportunities we pursue could materially affect our liquidity and capital resources and may require us to incur indebtedness, seek equity capital or both. There can be no assurance that additional financing will be available on terms acceptable to us, or at all.
Any acquisition opportunities we pursue could materially affect our liquidity and capital resources and may require us to incur indebtedness, seek equity capital or both.
Other income decreased $14.3 million, or 130.7%, for the year ended December 31, 2022 compared to the prior year period, primarily due to a decrease in income on sale of assets in the current period.
Other income increased $4.5 million, or 132.4%, for the year ended December 31, 2023 compared to the prior year period, primarily due to an increase in income on sale of assets in the current period.
Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.
The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.
Selling, general and administrative expenses increased $7.7 million, or 12.1%, for the year ended December 31, 2022 compared to the prior year period. This increase in expense was primarily related to increases of $3.6 million in wages and benefits expense, $2.4 million in stock compensation expense, and $2.1 million in professional fees. Mark-to-market adjustment for acquisition-related obligations.
This increase was primarily related to increases of $10.8 million in stock compensation expense and $1.7 million in wages and benefits expense, partially offset by decreases of $2.0 million in professional services fees and $0.7 million in incentive pay. Mark-to-market adjustment for acquisition-related obligations. The mark-to-market adjustment for acquisition-related obligations was $8.9 million for the year ended December 31, 2022.
Funding of the Pension Plans is in accordance with requirements of ERISA, and our contributions can be deducted for federal income tax purposes. We contributed $3.4 million to our Pension Plans for the year ended December 31, 2022.
Benefits are based on either the employee’s compensation prior to retirement or stated amounts for each year of service with us. Funding of the Pension Plan is in accordance with requirements of ERISA, and our contributions can be deducted for federal income tax purposes. We contributed $25.0 million to our Pension Plan for the year ended December 31, 2023.
Analysis of Material Debt Covenants We are in compliance with all covenants under the ABL Agreement, as of December 31, 2022. A breach of the covenants in the ABL Agreement could result in a default under the terms of such agreement, and the respective lenders could then elect to declare all amounts borrowed due and payable.
A breach of the covenants in the New ABL Agreement could result in a default under the terms of such agreement, and the respective lenders could then elect to declare any amounts borrowed due and payable and require outstanding LCs to be cash collateralized.
Income tax expense of $3.4 million was recorded for the year ended December 31, 2021 on income before income taxes of $292.2 million. The effective tax rate differs from the federal statutory rate of 21% primarily due to the decrease in the valuation allowance.
Income tax expense of $123.5 million was recorded for the year ended December 31, 2023 on income before income taxes of $845.5 million. The effective tax rate differs from the federal statutory rate of 21% primarily due to favorable permanent differences for the percentage depletion allowance and the foreign-derived intangible income deduction.
Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021 Revenues The following table summarizes information about our revenues during the years ended December 31, 2022 and 2021: Year Ended December 31, Increase (Decrease) (In thousands, except for per ton data) 2022 2021 $ or Tons % Coal revenues $ 4,092,987 $ 2,252,624 $ 1,840,363 81.7 % Other revenues 8,605 6,062 2,543 41.9 % Total revenues $ 4,101,592 $ 2,258,686 $ 1,842,906 81.6 % Tons sold 16,378 16,839 (461) (2.7) % Coal revenues.
Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022 Revenues The following table summarizes information about our revenues during the years ended December 31, 2023 and 2022: Year Ended December 31, Increase (Decrease) (In thousands, except for per ton data) 2023 2022 $ or Tons % Coal revenues $ 3,456,630 $ 4,092,987 $ (636,357) (15.5) % Other revenues 14,787 8,605 6,182 71.8 % Total revenues $ 3,471,417 $ 4,101,592 $ (630,175) (15.4) % Tons sold 17,072 16,378 694 4.2 % Coal revenues.
Off-Balance Sheet Arrangements We are required to provide financial assurance in order to perform the post-mining reclamation required by our mining permits, pay workers’ compensation claims under workers’ compensation laws in various states, pay federal black lung benefits, and perform certain other obligations.
As of December 31, 2023, we had the following cash collateral on our Consolidated Balance Sheets: (in thousands ) December 31, 2023 Long-term restricted cash $ 115,918 Long-term restricted investments 40,597 Short-term and long-term deposits 5,382 Total cash collateral $ 161,897 71 Table of Contents Off-Balance Sheet Arrangements We are required to provide financial assurance in order to perform the post-mining reclamation required by our mining permits, pay workers’ compensation claims under workers’ compensation laws in various states, pay federal black lung benefits, and perform certain other obligations.
Additionally, the MCPA focuses on our regional presence by combining forces to advance collective interests. 58 Table of Contents Factors Affecting Our Results of Operations Sales Agreements We manage our commodity price risk for coal sales through the use of coal supply agreements.
Factors Affecting Our Results of Operations Sales Agreements We manage our commodity price risk for coal sales through the use of coal supply agreements.
All Other category non-GAAP coal revenues decreased $4.0 million, or 5.1%, for the year ended December 31, 2022 compared to the prior year period primarily due to a decrease in tons sold, partially offset by higher non-GAAP coal sales realization per ton in the current period.
Adjusted EBITDA decreased $688.8 million, or 38.8%, for the year ended December 31, 2023 compared to the prior year period. The decrease in Adjusted EBITDA was primarily driven by decreased coal margin and lower non-GAAP coal sales realization per ton in the current period. All Other category.
Cost and Expenses The following table summarizes information about our costs and expenses during the years ended December 31, 2022 and 2021: Year Ended December 31, Increase (Decrease) (In thousands) 2022 2021 $ % Cost of coal sales (exclusive of items shown separately below) $ 2,285,969 $ 1,677,782 $ 608,187 36.2 % Depreciation, depletion and amortization 107,620 110,047 (2,427) (2.2) % Accretion on asset retirement obligations 23,765 26,520 (2,755) (10.4) % Amortization of acquired intangibles, net 19,498 13,244 6,254 47.2 % Asset impairment and restructuring — (561) 561 100.0 % Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) 71,618 63,901 7,717 12.1 % Total other operating loss (income): Mark-to-market adjustment for acquisition-related obligations 8,880 19,525 (10,645) (54.5) % Other expense (income) 3,363 (10,972) 14,335 130.7 % Total costs and expenses $ 2,520,713 $ 1,899,486 $ 621,227 32.7 % Cost of coal sales.
Refer to the “Non-GAAP Coal revenues” section below for further detail on coal revenues for the year ended December 31, 2023 compared to the prior year period. 64 Table of Contents Cost and Expenses The following table summarizes information about our costs and expenses during the years ended December 31, 2023 and 2022: Year Ended December 31, Increase (Decrease) (In thousands) 2023 2022 $ % Cost of coal sales (exclusive of items shown separately below) $ 2,356,138 $ 2,285,969 $ 70,169 3.1 % Depreciation, depletion and amortization 136,869 107,620 29,249 27.2 % Accretion on asset retirement obligations 25,500 23,765 1,735 7.3 % Amortization of acquired intangibles, net 8,523 19,498 (10,975) (56.3) % Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) 82,390 71,618 10,772 15.0 % Total other operating loss (income): Mark-to-market adjustment for acquisition-related obligations — 8,880 (8,880) (100.0) % Other (income) expense (1,088) 3,363 (4,451) (132.4) % Total costs and expenses $ 2,608,332 $ 2,520,713 $ 87,619 3.5 % Cost of coal sales.
Liquidity and Capital Resources Overview Our primary liquidity and capital resource requirements stem from the cost of our coal production and purchases, our capital expenditures, our debt service, our reclamation obligations, taxes, our regulatory costs and settlements and associated costs. Our primary sources of liquidity are derived from sales of coal, our debt financing, and miscellaneous revenues.
Our primary capital resource requirements stem from the cost of our coal production and purchases, selling and administrative expenses, taxes, capital expenditures, debt service obligations, reclamation obligations, and collateral requirements.
We began operations on July 26, 2016, with mining operations in NAPP, CAPP, and the PRB. Through the Acquisition, we acquired a significant reserve base.
As of December 31, 2023, we had 316.0 million tons of reserves, which included 303.0 million tons of proven and probable metallurgical reserves and 12.9 million tons of proven and probable thermal reserves. We began operations on July 26, 2016, with mining operations in NAPP, CAPP, and the PRB. Through the Acquisition, we acquired a significant reserve base.
In addition, we generate other revenues from equipment sales, rentals, terminal and processing fees, coal and environmental analysis fees, royalties and the sale of natural gas. We also record freight and handling fulfillment revenue within coal revenues for freight and handling services provided in delivering coal to certain customers, which are a component of the contractual selling price.
In addition, we generate other revenues from equipment sales, rentals, terminal and processing fees, coal and environmental analysis fees, royalties and the sale of natural gas.
Refer to Note 2 and Note 8 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K. Contingent Revenue Obligation. Our Contingent Revenue Obligation was assumed in connection with the Merger through the period ended December 31, 2022.
Refer to Note 18 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for disclosures summarizing the changes in this projected benefit obligation for the years ended December 31, 2023 and 2022.
East Coast Low Volatile index increased from $270.00 per metric ton on October 1, 2022 to $278.00 per metric ton at the end of the fourth quarter. The U.S. East Coast High Volatile A index moved from $287.00 per metric ton at the start of October to $275.00 per metric ton at quarter close. U.S.
The Australian Premium Low Volatile index decreased from $333.00 per metric ton at the start of the fourth quarter to $323.75 metric ton at the end of December. The U.S. East Coast Low Volatile index increased from $258.00 per metric ton at the beginning of October to $268.00 per metric ton at the end of December. The U.S.
For the years ended December 31, 2022 and 2021, sales of met coal were 14.2 million tons and 13.9 million tons, respectively, and accounted for approximately 87% and 83%, respectively, of our coal sales volume.
The disposition of our former NAPP operations accelerated our strategic exit from thermal coal production to shift our focus toward met coal production. For the years ended December 31, 2023 and 2022, sales of met coal were 15.3 million tons and 14.2 million tons, respectively, and accounted for approximately 90% and 87%, respectively, of our coal sales volume.
On July 21, 2022, Moody’s Investors Service upgraded our Corporate Family Rating to B2 from B3, upgraded our Probability of Default Rating to B2-PD from B3-PD, assigned a B1 rating to our ABL Facility, and withdrew the B3 rating on our Term Loan Credit Facility following our full repayment. Our Speculative Grade Liquidity Rating remained unchanged at SGL-2.
Our Speculative Grade Liquidity Rating remained unchanged at SGL-2. The rating outlook was revised to stable from positive. On November 3, 2023, Moody’s Investors Service maintained our B1 Corporate Family Rating, B1-PD Probability of Default Rating, and SGL-2 Speculative Grade Liquidity Rating, and affirmed our B1 rating on the New ABL Facility.
Met segment operations non-GAAP coal revenues increased $1,696.3 million, or 94.6%, for the year ended December 31, 2022 compared to the prior year period. The increase was primarily due to higher average non-GAAP coal sales realization of $110.27 per ton resulting from an improved pricing environment compared to the prior year period.
Met segment operations non-GAAP cost of coal sales increased $172.3 million, or 10.3%, for the year ended December 31, 2023 compared to the prior year period. The increase was primarily driven by a 6.9% increase in Met coal sales volumes combined with a 3.2% increase in average non-GAAP cost of coal sales per ton.
For the year ended December 31, 2022, we recorded a net periodic benefit credit of $10.4 million, which included a settlement of $0.2 million, for our Pension Plans and have recorded a net obligation of $110.8 million which are net of assets of $357.6 million.
For the year ended December 31, 2023, we recorded a net periodic benefit cost of $2.7 million for our Pension Plan and have recorded a net obligation of $101.9 million which is net of assets of $376.5 million.
The following tables present a reconciliation of net income (loss) to Adjusted EBITDA for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 (In thousands) Met All Other Consolidated Net income (loss) $ 1,647,104 $ (198,559) $ 1,448,545 Interest expense 202 21,600 21,802 Interest income (541) (2,646) (3,187) Income tax expense — 106,205 106,205 Depreciation, depletion and amortization 100,584 7,036 107,620 Non-cash stock compensation expense 4 7,480 7,484 Mark-to-market adjustment - acquisition-related obligations — 8,880 8,880 Accretion on asset retirement obligations 13,590 10,175 23,765 Amortization of acquired intangibles, net 15,699 3,799 19,498 Adjusted EBITDA $ 1,776,642 $ (36,030) $ 1,740,612 66 Table of Contents Year Ended December 31, 2021 (In thousands) Met All Other Consolidated Net income (loss) $ 439,859 $ (151,069) $ 288,790 Interest expense 184 69,470 69,654 Interest income (6) (330) (336) Income tax expense — 3,408 3,408 Depreciation, depletion and amortization 99,963 10,084 110,047 Non-cash stock compensation expense 28 5,287 5,315 Mark-to-market adjustment - acquisition-related obligations — 19,525 19,525 Gain on settlement of acquisition-related obligations — (1,125) (1,125) Accretion on asset retirement obligations 13,571 12,949 26,520 Asset impairment and restructuring — (561) (561) Amortization of acquired intangibles, net 13,671 (427) 13,244 Adjusted EBITDA $ 567,270 $ (32,789) $ 534,481 The following table summarizes Adjusted EBITDA for our Met segment operations and All Other category: Year Ended December 31, Increase (Decrease) (In thousands) 2022 2021 $ % Adjusted EBITDA Met operations $ 1,776,642 $ 567,270 $ 1,209,372 213.2 % All Other (36,030) (32,789) (3,241) (9.9) % Total $ 1,740,612 $ 534,481 $ 1,206,131 225.7 % Met segment operations.
All Other category non-GAAP cost of coal sales decreased $10.5 million, or 19.7%, for the year ended December 31, 2023 compared to the prior year period primarily due to the closure of Slabcamp, which was our last remaining thermal mine, in August of 2023. 69 Table of Contents Adjusted EBITDA The following tables present a reconciliation of net income (loss) to Adjusted EBITDA for the years ended December 31, 2023 and 2022: Year Ended December 31, 2023 (In thousands) Met All Other Consolidated Net income (loss) $ 938,495 $ (216,539) $ 721,956 Interest expense 731 6,192 6,923 Interest income (644) (11,289) (11,933) Income tax expense — 123,503 123,503 Depreciation, depletion and amortization 125,716 11,153 136,869 Non-cash stock compensation expense 96 18,921 19,017 Loss on extinguishment of debt — 2,753 2,753 Accretion on asset retirement obligations 14,886 10,614 25,500 Amortization of acquired intangibles, net 8,523 — 8,523 Adjusted EBITDA $ 1,087,803 $ (54,692) $ 1,033,111 Year Ended December 31, 2022 (In thousands) Met All Other Consolidated Net income (loss) $ 1,647,104 $ (198,559) $ 1,448,545 Interest expense 202 21,600 21,802 Interest income (541) (2,646) (3,187) Income tax expense — 106,205 106,205 Depreciation, depletion and amortization 100,584 7,036 107,620 Non-cash stock compensation expense 4 7,480 7,484 Mark-to-market adjustment - acquisition-related obligations — 8,880 8,880 Accretion on asset retirement obligations 13,590 10,175 23,765 Amortization of acquired intangibles, net 15,699 3,799 19,498 Adjusted EBITDA $ 1,776,642 $ (36,030) $ 1,740,612 The following table summarizes Adjusted EBITDA for our Met segment operations and All Other category: Year Ended December 31, Increase (Decrease) (In thousands) 2023 2022 $ % Adjusted EBITDA Met operations $ 1,087,803 $ 1,776,642 $ (688,839) (38.8) % All Other (54,692) (36,030) (18,662) (51.8) % Total $ 1,033,111 $ 1,740,612 $ (707,501) (40.6) % Met segment operations.
Refer to Note 19 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for disclosures summarizing the changes in these projected benefit obligations for the years ended December 31, 2022 and 2021. 73 Table of Contents The calculation of the net periodic benefit expense (credit) and projected benefit obligation associated with our Pension Plans requires the use of a number of assumptions, which are used by our independent actuaries to make the underlying calculations.
The calculation of the net periodic benefit expense (credit) and projected benefit obligation associated with our Pension Plan requires the use of a number of assumptions, which are used by our independent actuaries to make the underlying calculations.
Business Overview We are a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, we reliably supply metallurgical coal products to the steel industry. We operate high-quality, cost-competitive coal mines across the CAPP coal basin.
With customers across the globe, high-quality reserves and significant port capacity, we are a leading supplier of metallurgical coal products to the steel industry. We operate high-quality, cost-competitive coal mines across the CAPP coal basin. As of December 31, 2023, our operations consisted of twenty-two active mines and nine coal preparation and load-out facilities, with approximately 4,160 employees.

… 129 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+0 added−2 removed4 unchanged
Biggest changeAs of December 31, 2022, our forecasted diesel fuel usage and fixed price diesel fuel purchase commitments for 2023 are as follows: Budgeted Usage in Gallons % Priced Average Realized Price per Gallon Diesel fuel 22.2 million 73.5 % $3.62 Interest Rate Risk As of December 31, 2021, we had $449.4 million of outstanding borrowings under a Term Loan Credit Facility.
Biggest changeAs of December 31, 2023, our forecasted diesel fuel usage and fixed price diesel fuel purchase commitments for 2024 are as follows: Budgeted Usage in Gallons % Priced Average Realized Price per Gallon Diesel fuel 23.2 million 73.7 % $3.41 Interest Rate Risk As of December 31, 2023, we maintain a senior secured asset-based revolving credit facility, which was refinanced in the fourth quarter of 2023, under which we may borrow up to $155.0 million (less amounts outstanding for LCs).
As of December 31, 2022 and December 31, 2021, the remaining maturities of our acquired debt securities was less than 12 months. Foreign Currency Risk Our transactions are denominated in U.S. dollars, and, as a result, we do not have material exposure to currency exchange-rate risks.
As of December 31, 2023 and 2022, the remaining maturities of our acquired debt securities was less than 12 months. Foreign Currency Risk Our transactions are denominated in U.S. dollars, and, as a result, we do not have material exposure to currency exchange-rate risks.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Commodity Price Risk We manage our commodity price risk for coal sales through the use of coal supply agreements. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors Affecting Our Results of Operations” for information on our sales commitments for 2023.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Commodity Price Risk We manage our commodity price risk for coal sales through the use of coal supply agreements. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors Affecting Our Results of Operations” for information on our sales commitments for 2024.
Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows. 76 Table of Contents
Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows. 79 Table of Contents
We have exposure to commodity price risk for supplies that are used directly or indirectly in the normal course of production such as diesel fuel, steel and other items such as explosives. We manage our risk for these items through strategic sourcing contracts in normal quantities with our suppliers.
We have exposure to commodity price risk for supplies that are used directly or indirectly in the normal course of production such as diesel fuel, steel and other items such as explosives.
The market price of diesel fuel fluctuates due to changes in production, seasonality, and other market factors generally outside of our control. Increased fuel costs may have a negative impact on our results of operations and financial condition.
We manage our risk for these items through strategic sourcing contracts in normal quantities with our suppliers. 78 Table of Contents The market price of diesel fuel fluctuates due to changes in production, seasonality, and other market factors generally outside of our control. Increased fuel costs may have a negative impact on our results of operations and financial condition.
Any cash borrowings under the facility would bear a floating rate of interest. No cash borrowings were outstanding under the facility as of December 31, 2022, or December 31, 2021. As of December 31, 2022, we had $61.9 million letters of credit outstanding under the facility.
Any cash borrowings under the facility would bear a floating rate of interest. No cash borrowings were outstanding under the facilities as of December 31, 2023 or 2022. Refer to Note 13 for additional information. As of December 31, 2023 and 2022, we had investments in trading securities of $40.6 million and $151.8 million respectively.
Removed
The borrowings carried a floating rate of interest and were due in June 2024. In 2022, we voluntarily prepaid the amounts borrowed and terminated the facility. As of December 31, 2022, we maintain a senior secured asset-based revolving credit facility under which we may borrow up to $155.0 million (less amounts outstanding for letters of credit).
Removed
Refer to Note 14 to our consolidated financial statements for additional information, including discussion on the terms of our long-term debt. As of December 31, 2022 and December 31, 2021, we had investments in trading securities of $151.8 million and $30.9 million respectively.

Other AMR 10-K year-over-year comparisons