Segment Information

9 Months Ended

Sep. 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 nine months ended September 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 September 30, 2023
Revenues	$	432,835	$	311,766	$	—	$	744,601
Adjusted EBITDA		128,322		23,373		(25,404)		126,291
Depreciation, depletion and amortization		29,494		7,001		222		36,717
Accretion on asset retirement obligation		651		4,314		327		5,292
Total assets		1,046,404		415,373		904,081		2,365,858
Capital expenditures		33,806		10,369		249		44,424
Three Months Ended September 30, 2022
Revenues	$	444,306	$	419,529	$	—	$	863,835
Adjusted EBITDA		155,185		96,812		(29,041)		222,956
Depreciation, depletion and amortization		28,354		5,388		216		33,958
Accretion on asset retirement obligation		553		3,444		433		4,430
Total assets		1,020,849		325,580		973,433		2,319,862
Capital expenditures		36,389		4,604		367		41,360
Nine Months Ended September 30, 2023
Revenues	$	1,420,758	$	951,068	$	—	$	2,371,826
Adjusted EBITDA		524,218		98,807		(89,007)		534,018
Depreciation, depletion and amortization		85,575		22,057		641		108,273
Accretion on asset retirement obligation		1,880		12,941		1,056		15,877
Total assets		1,046,404		415,373		904,081		2,365,858
Capital expenditures		94,205		25,904		921		121,030
Nine Months Ended September 30, 2022
Revenues	$	1,640,970	$	1,224,159	$	—	$	2,865,129
Adjusted EBITDA		810,615		290,648		(97,357)		1,003,906
Depreciation, depletion and amortization		82,738		15,554		656		98,948
Accretion on asset retirement obligation		1,660		10,331		1,299		13,290
Total assets		1,020,849		325,580		973,433		2,319,862
Capital expenditures		79,896		13,200		1,421		94,517

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Net income	$	73,691	$	181,007	$	349,152	$	860,443
Provision for income taxes		16,781		474		66,839		1,424
Interest (income) expense, net		(1,683)		1,836		(1,557)		13,469
Depreciation, depletion and amortization		36,717		33,958		108,273		98,948
Accretion on asset retirement obligations		5,292		4,430		15,877		13,290
Non-service related pension and postretirement benefit (credits) costs		(4,507)		857		(5,692)		2,189
Net loss resulting from early retirement of debt		—		394		1,126		14,143
Adjusted EBITDA	$	126,291	$	222,956	$	534,018	$	1,003,906
EBITDA from idled or otherwise disposed operations		30		3,624		8,726		9,972
Selling, general and administrative expenses		24,279		26,107		73,092		79,271
Other		1,095		(690)		7,189		8,114
Segment Adjusted EBITDA from coal operations	$	151,695	$	251,997	$	623,025	$	1,101,263