Segment Information

6 Months Ended

Jun. 30, 2021

Segment Information

Segment Information

19. Segment Information

On December 31, 2020, the Company sold its Viper operation. As a result, the Company revised its reportable segments beginning in the first quarter of 2021 to reflect the manner in which the chief operating decision maker (CODM) views the Company’s businesses going forward for purposes of reviewing performance, allocating resources and assessing future prospects and strategic execution. Prior to the first quarter of 2021, the Company had three reportable segments: MET, Powder River Basin (PRB), and Other Thermal. After the divestment of Viper, the Company has three remaining active thermal mines: West Elk, Black Thunder, and Coal Creek. With two distinct lines of business, metallurgical and thermal, the movement to two segments aligns with how the Company makes decisions and allocates resources. No changes were made to the MET Segment and the three remaining thermal mines are now reported as the “Thermal Segment”. The prior periods have been restated to reflect the change in reportable segments.

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, 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 six months ended June 30, 2021 and 2020 are presented below. The

Corporate, Other, and Eliminations grouping includes these charges: idle operations; change in fair value of coal

derivatives and coal trading activities, net; corporate overhead; land management activities; other support functions; and the elimination of intercompany transactions.

the elimination of intercompany transactions.
					Corporate,
					Other and
(In thousands)	MET		Thermal		Eliminations		Consolidated
Three Months Ended June 30, 2021
Revenues	$	219,448	$	230,759	$	182	$	450,389
Adjusted EBITDA		61,246		41,772		(36,492)		66,526
Depreciation, depletion and amortization		22,654		4,993		237		27,884
Accretion on asset retirement obligation		507		4,419		511		5,437
Total assets		941,843		191,164		661,939		1,794,946
Capital expenditures		66,823		575		3,801		71,199
Three Months Ended June 30, 2020
Revenues	$	138,951	$	174,393	$	6,177	$	319,521
Adjusted EBITDA		20,910		(10,114)		(21,528)		(10,732)
Depreciation, depletion and amortization		22,289		7,616		262		30,167
Accretion on asset retirement obligation		486		3,842		658		4,986
Total assets		740,451		356,228		705,710		1,802,389
Capital expenditures		57,514		2,100		1,258		60,872
Six Months Ended June 30, 2021
Revenues	$	398,231	$	408,297	$	1,404	$	807,932
Adjusted EBITDA		102,843		54,853		(60,273)		97,423
Depreciation, depletion and amortization		43,536		9,682		463		53,681
Accretion on asset retirement obligation		1,016		8,837		1,021		10,874
Total assets		941,843		191,164		661,939		1,794,946
Capital expenditures		142,843		864		4,250		147,957
Six Months Ended June 30, 2020
Revenues	$	321,605	$	384,589	$	18,559	$	724,753
Adjusted EBITDA		63,630		(12,016)		(49,431)		2,183
Depreciation, depletion and amortization		44,807		15,161		1,507		61,475
Accretion on asset retirement obligation		972		7,685		1,335		9,992
Total assets		740,451		356,228		705,710		1,802,389
Capital expenditures		136,162		8,813		3,586		148,561

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

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2021		2020		2021		2020
Net income (loss)	$	27,866	$	(49,324)	$	21,824	$	(74,623)
Provision for (benefit from) income taxes		2,006		1,206		2,383		(585)
Interest expense, net		2,794		1,730		6,595		3,859
Depreciation, depletion and amortization		27,884		30,167		53,681		61,475
Accretion on asset retirement obligations		5,437		4,986		10,874		9,992
Costs related to proposed joint venture with Peabody Energy		—		7,851		—		11,515
Asset impairment and restructuring		—		7,437		—		13,265
Gain on property insurance recovery related to Mountain Laurel longwall		—		(14,518)		—		(23,518)
Gain on divestitures		—		(1,369)		—		(1,369)
Non-service related pension and postretirement benefit costs		539		1,102		2,066		2,198
Reorganization items, net		—		—		—		(26)
Adjusted EBITDA	$	66,526	$	(10,732)	$	97,423	$	2,183
EBITDA from idled or otherwise disposed operations		3,997		2,696		7,563		7,795
Selling, general and administrative expenses		24,119		19,738		45,599		42,483
Other		8,376		(906)		7,112		(847)
Segment Adjusted EBITDA from coal operations	$	103,018	$	10,796	$	157,697	$	51,614