Segment Information

6 Months Ended

Jun. 30, 2023

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 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, 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, 2023 and 2022 are presented below. The Corporate, Other, and Eliminations grouping includes these charges: idle operations; change in fair value of coal derivatives, 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, 2023
Revenues	$	451,752	$	305,542	$	—	$	757,294
Adjusted EBITDA		132,839		29,179		(31,632)		130,386
Depreciation, depletion and amortization		28,228		7,648		201		36,077
Accretion on asset retirement obligation		615		4,314		364		5,293
Total assets		1,074,408		408,516		903,977		2,386,901
Capital expenditures		35,639		10,042		325		46,006
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
Six Months Ended June 30, 2023
Revenues	$	987,923	$	639,302	$	—	$	1,627,225
Adjusted EBITDA		395,896		75,434		(63,603)		407,727
Depreciation, depletion and amortization		56,082		15,056		418		71,556
Accretion on asset retirement obligation		1,229		8,628		728		10,585
Total assets		1,074,408		408,516		903,977		2,386,901
Capital expenditures		60,459		15,535		612		76,606
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

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)	2023		2022		2023		2022
Net income	$	77,353	$	407,563	$	275,461	$	679,435
Provision for income taxes		12,920		496		50,058		951
Interest (income) expense, net		(664)		4,610		126		11,633
Depreciation, depletion and amortization		36,077		32,780		71,556		64,990
Accretion on asset retirement obligations		5,293		4,430		10,585		8,860
Non-service related pension and postretirement benefit (credits) costs		(593)		459		(1,185)		1,332
Net loss resulting from early retirement of debt		—		9,629		1,126		13,749
Adjusted EBITDA	$	130,386	$	459,967	$	407,727	$	780,950
EBITDA from idled or otherwise disposed operations		4,664		3,957		8,696		6,348
Selling, general and administrative expenses		22,791		26,516		48,813		53,164
Other		4,177		(678)		6,094		8,804
Segment Adjusted EBITDA from coal operations	$	162,018	$	489,762	$	471,330	$	849,266