Segment Information

9 Months Ended

Sep. 30, 2021

Segment Information

Segment Information

18. 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 nine months ended September 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.

					Corporate,
					Other and
(In thousands)	MET		Thermal		Eliminations		Consolidated
Three Months Ended September 30, 2021
Revenues	$	295,291	$	299,096	$	25	$	594,412
Adjusted EBITDA		118,548		52,737		(39,690)		131,595
Depreciation, depletion and amortization		25,041		5,488		231		30,760
Accretion on asset retirement obligation		508		4,419		510		5,437
Total assets		965,252		193,060		772,637		1,930,949
Capital expenditures		61,504		507		2,078		64,089
Three Months Ended September 30, 2020
Revenues	$	168,054	$	213,299	$	908	$	382,261
Adjusted EBITDA		12,407		31,616		(26,597)		17,426
Depreciation, depletion and amortization		24,221		8,150		259		32,630
Accretion on asset retirement obligation		486		3,842		619		4,947
Total assets		759,202		216,708		677,427		1,653,337
Capital expenditures		57,424		568		(892)		57,100
Nine Months Ended September 30, 2021
Revenues	$	693,522	$	707,394	$	1,429	$	1,402,345
Adjusted EBITDA		221,391		107,589		(99,962)		229,018
Depreciation, depletion and amortization		68,577		15,170		694		84,441
Accretion on asset retirement obligation		1,523		13,256		1,532		16,311
Total assets		965,252		193,060		772,637		1,930,949
Capital expenditures		204,347		1,370		6,329		212,046
Nine Months Ended September 30, 2020
Revenues	$	489,660	$	597,887	$	19,467	$	1,107,014
Adjusted EBITDA		76,037		19,600		(76,028)		19,609
Depreciation, depletion and amortization		69,028		23,310		1,767		94,105
Accretion on asset retirement obligation		1,458		11,526		1,955		14,939
Total assets		759,202		216,708		677,427		1,653,337
Capital expenditures		193,586		9,381		2,694		205,661

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)	2021		2020		2021		2020
Net income (loss)	$	89,143	$	(191,467)	$	110,967	$	(266,090)
Provision for (benefit from) income taxes		(1,082)		379		1,301		(206)
Interest expense, net		6,151		2,530		12,746		6,389
Depreciation, depletion and amortization		30,760		32,630		84,441		94,105
Accretion on asset retirement obligations		5,437		4,947		16,311		14,939
Costs related to proposed joint venture with Peabody Energy		—		4,423		—		15,938
Asset impairment and restructuring		—		163,106		—		176,371
Gain on property insurance recovery related to Mountain Laurel longwall		—		—		—		(23,518)
Gain on divestitures		—		—		—		(1,369)
Non-service related pension and postretirement benefit costs		1,186		878		3,252		3,076
Reorganization items, net		—		—		—		(26)
Adjusted EBITDA	$	131,595	$	17,426	$	229,018	$	19,609
EBITDA from idled or otherwise disposed operations		3,074		2,896		10,637		10,691
Selling, general and administrative expenses		21,081		21,541		66,679		64,024
Other		15,535		2,160		22,646		1,313
Segment Adjusted EBITDA from coal operations	$	171,285	$	44,023	$	328,980	$	95,637