Segment Information

6 Months Ended

Jun. 30, 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 and six months ended June 30, 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 June 30, 2024
Revenues	$	375,958	$	232,793	$	—	$	608,751
Adjusted EBITDA		87,276		1,067		(28,384)		59,959
Depreciation, depletion and amortization		31,089		7,099		251		38,439
Accretion on asset retirement obligation		647		4,810		413		5,870
Capital expenditures		34,132		10,953		1,835		46,920
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
Capital expenditures		35,639		10,042		325		46,006
Six Months Ended June 30, 2024
Revenues	$	793,023	$	495,918	$	—	$	1,288,941
Adjusted EBITDA		216,811		1,999		(55,988)		162,822
Depreciation, depletion and amortization		62,479		14,267		513		77,259
Accretion on asset retirement obligation		1,294		9,620		825		11,739
Capital expenditures		71,166		18,497		2,703		92,366
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
Capital expenditures		60,459		15,535		612		76,606

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)	2024		2023		2024		2023
Net income	$	14,833	$	77,353	$	70,786	$	275,461
Provision for income taxes		2,002		12,920		5,721		50,058
Interest expense, net		(1,470)		(664)		(3,254)		126
Depreciation, depletion and amortization		38,439		36,077		77,259		71,556
Accretion on asset retirement obligations		5,870		5,293		11,739		10,585
Non-service related pension and postretirement benefit costs (credits)		285		(593)		571		(1,185)
Net loss resulting from early retirement of debt		—		—		—		1,126
Adjusted EBITDA	$	59,959	$	130,386	$	162,822	$	407,727
EBITDA from idled or otherwise disposed operations		3,695		4,664		7,392		8,696
Selling, general and administrative expenses		22,518		22,791		48,105		48,813
Other		2,172		4,177		491		6,094
Segment Adjusted EBITDA from coal operations	$	88,344	$	162,018	$	218,810	$	471,330