Segment Information

12 Months Ended

Dec. 31, 2022

Segment Information

Segment Information

26. 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 recasted 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 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.

In November of 2021, the Company sold its equity investment Knight Hawk Holdings, LLC, which had been part of its Corporate, Other and Eliminations grouping. For further information on the sale of Knight Hawk Holdings, LLC, please see Note 4 to the Consolidated Financial Statements, “Divestitures.”

On December 31, 2020, the Company sold its Viper operation, which had been part of its Thermal segment. Viper’s results for the full year of 2020 are included in the Company’s full year 2020 results, and in all preceding periods’ results presented herein. For further information on the sale of Viper to Knight Hawk Holdings, LLC, please see Note 4, “Divestitures” to the Consolidated Financial Statements.

Reporting segment results for the year ended December 31, 2022, the year ended December 31, 2021, and the year ended December 31, 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
Year Ended December 31, 2022
Revenues	$	2,157,710	$	1,566,883	$	—	$	3,724,593
Adjusted EBITDA		1,021,932		353,884		(115,384)		1,260,432
Depreciation, depletion and amortization		111,772		20,650		878		133,300
Accretion on asset retirement obligation		2,213		13,775		1,733		17,721
Total assets		1,058,217		381,099		993,792		2,433,108
Capital expenditures		140,031		28,578		4,119		172,728
Year Ended December 31, 2021
Revenues	$	1,149,133	$	1,057,480	$	1,429	$	2,208,042
Adjusted EBITDA		442,830		175,709		(85,109)		533,430
Depreciation, depletion and amortization		99,171		20,231		925		120,327
Accretion on asset retirement obligation		2,030		17,675		2,043		21,748
Total assets		964,761		205,147		947,252		2,117,160
Capital expenditures		227,802		5,949		11,689		245,440
Year Ended December 31, 2020
Revenues	$	641,536	$	801,632	$	24,424	$	1,467,592
Adjusted EBITDA		91,322		34,035		(101,614)		23,743
Depreciation, depletion and amortization		91,202		28,351		1,999		121,552
Accretion on asset retirement obligation		1,943		15,368		2,576		19,887
Total assets		811,605		196,336		714,531		1,722,472
Capital expenditures		269,273		10,719		5,829		285,821

A reconciliation of segment Adjusted EBITDA to net income (loss):

	Year Ended		Year Ended		Year Ended
	December 31,		December 31,		December 31,
(In thousands)	2022		2021		2020
Net income (loss)	$	1,330,914	$	337,573	$	(344,615)
Provision for (benefit from) income taxes		(251,926)		1,874		(7)
Interest expense, net		13,162		23,344		10,624
Depreciation, depletion and amortization		133,300		120,327		121,552
Accretion on asset retirement obligations		17,721		21,748		19,887
Costs related to proposed joint venture with Peabody Energy		—		—		16,087
Asset impairment and restructuring		—		—		221,380
Gain on property insurance recovery related to Mountain Laurel longwall		—		—		(23,518)
Loss (Gain) on divestitures		—		24,225		(1,505)
Non-service related pension and postretirement benefit costs		2,841		4,339		3,884
Net loss resulting from early retirement of debt		14,420		—		—
Reorganization items, net		—		—		(26)
Adjusted EBITDA	$	1,260,432	$	533,430	$	23,743
EBITDA from idled or otherwise disposed operations		(828)		2,469		15,858
Selling, general and administrative expenses		105,355		92,342		82,397
Other		10,857		(9,702)		3,359
Segment Adjusted EBITDA from coal operations	$	1,375,816	$	618,539	$	125,357