Note 8 - Revenue

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

REVENUE.

NOTE 8—REVENUE

Our revenue is derived from contracts for the sale of coal and is recognized when the performance obligations under the contract are satisfied, which is at the point in time control is transferred to our customer. Generally, domestic sales contracts have terms of about one year and the pricing is typically fixed. Export sales have spot or term contracts, and pricing can be either fixed or derived against index-based pricing mechanisms. Sales completed with delivery to an export terminal are reported as export revenue.

Disaggregated information about Revenue is presented below:

	Three months ended March 31,
(In thousands)	2024		2023
Coal Sales
North American revenue	$	54,173	$	40,027
Export revenue, excluding Canada		118,503		126,333
Total revenue	$	172,676	$	166,360

Revenue for the first quarter of 2024 includes $0.9 million of additional revenue related to adjustments for performance obligations satisfied in a previous reporting period. These adjustments were due to true-ups of previous estimates for provisional pricing and demurrage as well as price adjustments for minimum specifications or qualities of delivered coal.

As of March 31, 2024, the Company had outstanding performance obligations of approximately 1.1 million tons for contracts with fixed sales prices averaging $168 per ton, excluding freight, as well as 3.1 million tons for contracts with index-based pricing mechanisms. The Company expects to satisfy approximately 78% of the committed tons in 2024, 21% in 2025, and 1% in 2026. Variable amounts, including index-based prices, have not been estimated for the purpose of disclosing remaining performance obligations as permitted under the revenue recognition guidance when variable consideration is allocated entirely to a wholly unsatisfied performance obligation.

Concentrations—During the three months ended March 31, 2024, sales to two individual customers were 10% or more of our total revenue. Sales to these customers represented 19% and 11% of our total revenue during the period. For comparison purposes, during the three months ended March 31, 2023, sales to four individual customers exceeded 10% of total revenue and accounted for approximately 63% of our revenue. Three customers with individual accounts receivable balances equal to 10% or more of total accounts receivable made up approximately 26%, 15%, and 13% of the Company’s accounts receivable balance as of March 31, 2024.