Segment Information

6 Months Ended

Jun. 30, 2022

Segment Information

Segment Information

15. 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, 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, income 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, 2022 and 2021 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 June 30, 2022
Revenues	$	724,492	$	408,866	$	—	$	1,133,358
Adjusted EBITDA		396,426		93,336		(29,795)		459,967
Depreciation, depletion and amortization		27,432		5,134		214		32,780
Accretion on asset retirement obligation		553		3,444		433		4,430
Total assets		1,019,408		287,039		1,007,200		2,313,647
Capital expenditures		25,927		4,594		348		30,869
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
Six Months Ended June 30, 2022
Revenues	$	1,196,664	$	804,630	$	—	$	2,001,294
Adjusted EBITDA		655,429		193,836		(68,315)		780,950
Depreciation, depletion and amortization		54,384		10,166		440		64,990
Accretion on asset retirement obligation		1,106		6,888		866		8,860
Total assets		1,019,408		287,039		1,007,200		2,313,647
Capital expenditures		43,508		8,596		1,053		53,157
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

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

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Net income	$	407,563	$	27,866	$	679,435	$	21,824
Provision for income taxes		496		2,006		951		2,383
Interest expense, net		4,610		2,794		11,633		6,595
Depreciation, depletion and amortization		32,780		27,884		64,990		53,681
Accretion on asset retirement obligations		4,430		5,437		8,860		10,874
Non-service related pension and postretirement benefit costs		459		539		1,332		2,066
Net loss resulting from early retirement of debt		9,629		—		13,749		—
Adjusted EBITDA	$	459,967	$	66,526	$	780,950	$	97,423
EBITDA from idled or otherwise disposed operations		3,957		3,997		6,348		7,563
Selling, general and administrative expenses		26,516		24,119		53,164		45,599
Other		(678)		8,376		8,804		7,111
Segment Adjusted EBITDA from coal operations	$	489,762	$	103,018	$	849,266	$	157,696