Segment Information

9 Months Ended

Sep. 30, 2024

Segment Information

Segment Information

16. Segment Information

The Company’s reportable business segments are based on two distinct lines of business, metallurgical and thermal, and may include a number of mine complexes. The Company manages its coal sales by market and coal quality, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Company’s marketing and operations management. Mining operations are evaluated based on Adjusted EBITDA, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses, divided by segment tons sold), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing the Company’s financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income (loss), income (loss) from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate the Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Metallurgical (MET) segment, containing the Company’s metallurgical operations in West Virginia, and the Thermal segment containing the Company’s thermal operations in Wyoming and Colorado.

Reporting segment results for the three and nine months ended September 30, 2024 and 2023 are presented below. The Corporate, Other, and Eliminations grouping includes these charges: idle operations; equity investments; change in fair value of coal derivatives, net; corporate overhead; land management activities; certain miscellaneous revenue; and the elimination of intercompany transactions.

					Corporate,
					Other and
(In thousands)	MET		Thermal		Eliminations		Consolidated
Three Months Ended September 30, 2024
Revenues	$	361,916	$	255,983	$	—	$	617,899
Adjusted EBITDA		54,167		12,847		(22,853)		44,161
Depreciation, depletion and amortization		32,702		7,864		324		40,890
Accretion on asset retirement obligation		647		4,810		412		5,869
Capital expenditures		23,438		10,818		266		34,522
Three Months Ended September 30, 2023
Revenues	$	432,835	$	311,766	$	—	$	744,601
Adjusted EBITDA		128,322		23,373		(25,404)		126,291
Depreciation, depletion and amortization		29,494		7,001		222		36,717
Accretion on asset retirement obligation		651		4,314		327		5,292
Capital expenditures		33,806		10,369		249		44,424
Nine Months Ended September 30, 2024
Revenues	$	1,154,938	$	751,902	$	—	$	1,906,840
Adjusted EBITDA		270,978		14,846		(78,841)		206,983
Depreciation, depletion and amortization		95,181		22,130		838		118,149
Accretion on asset retirement obligation		1,942		14,430		1,236		17,608
Capital expenditures		94,603		29,315		2,970		126,888
Nine Months Ended September 30, 2023
Revenues	$	1,420,758	$	951,068	$	—	$	2,371,826
Adjusted EBITDA		524,218		98,807		(89,007)		534,018
Depreciation, depletion and amortization		85,575		22,057		641		108,273
Accretion on asset retirement obligation		1,880		12,941		1,056		15,877
Capital expenditures		94,205		25,904		921		121,030

A reconciliation of net income (loss) to Adjusted EBITDA and segment Adjusted EBITDA from coal operations follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Net income (loss)	$	(6,221)	$	73,691	$	64,565	$	349,152
(Benefit from) provision for income taxes		(6,608)		16,781		(887)		66,839
Interest expense, net		(1,753)		(1,683)		(5,007)		(1,557)
Depreciation, depletion and amortization		40,890		36,717		118,149		108,273
Accretion on asset retirement obligations		5,869		5,292		17,608		15,877
Merger related costs		7,002		—		7,002		—
Severance costs related to voluntary separation plan		6,649		—		6,649		—
Non-service related pension and postretirement benefit credits		(1,667)		(4,507)		(1,096)		(5,692)
Net loss resulting from early retirement of debt		—		—		—		1,126
Adjusted EBITDA	$	44,161	$	126,291	$	206,983	$	534,018
EBITDA from idled or otherwise disposed operations		4,101		30		11,493		8,726
Selling, general and administrative expenses		20,603		24,279		68,708		73,092
Other		(1,851)		1,095		(1,360)		7,189
Segment Adjusted EBITDA from coal operations	$	67,014	$	151,695	$	285,824	$	623,025