Segment Information

3 Months Ended

Mar. 31, 2024

Segment Information

Segment Information

14. 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 months ended March 31, 2024 and 2023 are presented below. The Corporate, Other, and Eliminations grouping includes these charges: idle operations; equity investments; change in fair value of coal derivatives, net; corporate overhead; land management activities; certain miscellaneous revenue; and the elimination of intercompany transactions.

					Corporate,
					Other and
(In thousands)	MET		Thermal		Eliminations		Consolidated
Three Months Ended March 31, 2024
Revenues	$	417,065	$	263,125	$	—	$	680,190
Adjusted EBITDA		129,536		930		(27,603)		102,863
Depreciation, depletion and amortization		31,390		7,168		262		38,820
Accretion on asset retirement obligation		647		4,810		412		5,869
Capital expenditures		37,033		7,544		869		45,446
Three Months Ended March 31, 2023
Revenues	$	536,172	$	333,759	$	—	$	869,931
Adjusted EBITDA		263,057		46,255		(31,971)		277,341
Depreciation, depletion and amortization		27,853		7,408		218		35,479
Accretion on asset retirement obligation		615		4,314		363		5,292
Capital expenditures		24,761		5,493		287		30,541

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

	Three Months Ended March 31,
(In thousands)	2024		2023
Net income	$	55,953	$	198,108
Provision for income taxes		3,719		37,138
Interest expense, net		(1,784)		790
Depreciation, depletion and amortization		38,820		35,479
Accretion on asset retirement obligations		5,869		5,292
Non-service related pension and postretirement benefit costs (credits)		286		(592)
Net loss resulting from early retirement of debt		—		1,126
Adjusted EBITDA	$	102,863	$	277,341
EBITDA from idled or otherwise disposed operations		3,697		4,032
Selling, general and administrative expenses		25,587		26,022
Other		(1,681)		1,917
Segment Adjusted EBITDA from coal operations	$	130,466	$	309,312