Segment Information

12 Months Ended

Dec. 31, 2023

Segment Information

Segment Information

23. 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 (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, “Divestitures” to the Consolidated Financial Statements.

Reporting segment results for the years ended December 31, 2023, 2022 and 2021 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
Year Ended December 31, 2023
Revenues	$	1,892,326	$	1,253,517	$	—	$	3,145,843
Adjusted EBITDA		717,834		125,469		(129,261)		714,042
Depreciation, depletion and amortization		116,550		28,996		872		146,418
Accretion on asset retirement obligation		2,507		17,255		1,408		21,170
Total assets		1,064,510		437,776		981,887		2,484,173
Capital expenditures		141,210		33,212		1,615		176,037
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

A reconciliation of segment Adjusted EBITDA to net income:

	Year Ended		Year Ended		Year Ended
	December 31,		December 31,		December 31,
(In thousands)	2023		2022		2021
Net income	$	464,038	$	1,330,914	$	337,573
Provision for (benefit from) income taxes		87,514		(251,926)		1,874
Interest (income) expense, net		(2,438)		13,162		23,344
Depreciation, depletion and amortization		146,418		133,300		120,327
Accretion on asset retirement obligations		21,170		17,721		21,748
Loss on divestitures		—		—		24,225
Non-service related pension and postretirement benefit (credits) costs		(3,786)		2,841		4,339
Net loss resulting from early retirement of debt		1,126		14,420		—
Adjusted EBITDA	$	714,042	$	1,260,432	$	533,430
EBITDA from idled or otherwise disposed operations		15,986		(828)		2,469
Selling, general and administrative expenses		98,871		105,355		92,342
Other		14,404		10,857		(9,702)
Segment Adjusted EBITDA from coal operations	$	843,303	$	1,375,816	$	618,539