false000170471500017047152023-11-022023-11-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_______________

FORM 8-K
 
 CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported): November 2, 2023

 ALPHA METALLURGICAL RESOURCES, INC.
(Exact Name of Registrant as Specified in Charter)
 
Delaware
(State or Other Jurisdiction of Incorporation) 
001-38735
81-3015061
(Commission File Number)
(IRS Employer Identification No.)
 
340 Martin Luther King Jr. Blvd.
Bristol, Tennessee 37620
(Address of Principal Executive Offices, zip code)
 
(423) 573-0300
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockAMRNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company      ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 





Item 2.02 Results of Operations and Financial Condition. 

On November 2, 2023, Alpha Metallurgical Resources, Inc. (the “Company”) issued a press release announcing earnings and other financial results for its fiscal quarter ended September 30, 2023. The press release is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits. 

(d) Exhibits
Exhibit 99.1
Press Release dated November 2, 2023
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Alpha Metallurgical Resources, Inc.
Date: November 2, 2023
By:
/s/ J. Todd Munsey
Name: J. Todd Munsey
Title: Chief Financial Officer




EXHIBIT INDEX
Exhibit No.Description
Exhibit 99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



FOR IMMEDIATE RELEASE
image.jpg
        
                                                                 
Alpha Announces Financial Results for Third Quarter 2023

•Posts third quarter net income of $93.8 million, or $6.65 per diluted share
•Announces Adjusted EBITDA of $153.9 million for the quarter
•Continues progress on buyback program, with nearly $940 million returned to shareholders since program inception as of October 27, 2023
•Announces $300 million increase in authorization for the share repurchase program, bringing total authorization to $1.5 billion
•Declares quarterly dividend of $0.50 per share, after which the dividend program will cease
•Issues 2024 operational guidance
•Announces completed refinancing of Asset-Based Revolving Credit Facility (ABL)
•Completes transition to pure-play metallurgical producer with the closure of last remaining thermal mine, Slabcamp

BRISTOL, Tenn., November 2, 2023 - Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported financial results for the third quarter ending September 30, 2023.

(millions, except per share)
Three months ended
Sept. 30, 2023June 30, 2023Sept. 30, 2022
Net income
$93.8$181.4$252.8
Net income per diluted share
$6.65$12.16$14.27
Adjusted EBITDA(1)
$153.9$258.5$296.2
Operating cash flow
$157.2$317.2$497.0
Capital expenditures($54.7)($54.9)($33.3)
Tons of coal sold4.24.34.1
__________________________________
1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules.


amrpressreleasefooter.jpg

"As we recently disclosed, our third quarter results were impacted by some challenging events that resulted in lowered shipment guidance for the year," said Andy Eidson, Alpha's chief executive officer. "Part of this was due to a mechanical failure experienced during the quarter at Dominion Terminal Associates, the Newport News facility where we export a majority of our coal. The port infrastructure is in need of capital investment to minimize downtime and operational interruptions. Therefore, we are developing plans to make the necessary investments over a period of several years, both to spread out the expenditures and to methodically work through the improvements in the least disruptive way, allowing for use of the facility while renovations occur."

Eidson continued: "Despite the challenges of Q3, our team continues to operate safely, perform well, and advance our long-term goals. The share buyback program is a significant example of our ability to execute, with nearly $940 million in repurchases completed since the start of the program and approximately $560 million left on the board's newly-increased authorization. Following the dividend payment for this quarter, we will consolidate our capital return efforts to focus on share repurchases and expect to continue with that approach as long as buybacks make sense from a market, trading price, and valuation perspective. Additionally, we have successfully refinanced our ABL, achieving superior terms to the previous facility thanks to the company's improved financial position, the most important of which was achieving a four-year term on the facility. On the operational side, our years-long transition to a pure-play metallurgical coal producer is now complete following the closure of Slabcamp, our final remaining thermal mine. Our outlook for 2024 is bright, with a solid base of committed tonnage to domestic customers and the balance of our output available for export."

Financial Performance

Alpha reported net income of $93.8 million, or $6.65 per diluted share, for the third quarter 2023, as compared to net income of $181.4 million, or $12.16 per diluted share, in the second quarter.

For the third quarter, total Adjusted EBITDA was $153.9 million, compared to $258.5 million in the second quarter.


Coal Revenues
(millions)
Three months ended
Sept. 30, 2023June 30, 2023
Met Segment$731.5$834.0
All Other$7.5$19.8
Met Segment (excl. freight & handling)(1)
$636.7$715.8
All Other (excl. freight & handling)(1)
$7.5$19.8

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Tons Sold(millions)
Three months ended
Sept. 30, 2023June 30, 2023
Met Segment4.14.1
All Other0.10.2
__________________________________
1. Represents Non-GAAP coal revenues which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."


Coal Sales Realization(1)
(per ton)
Three months ended
Sept. 30, 2023June 30, 2023
Met Segment$154.73$172.51
All Other$68.32$99.66
__________________________________
1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

Third quarter net realized pricing for the Met segment was $154.73 per ton and net realization in the All Other category was $68.32 per ton.

The table below provides a breakdown of our Met segment coal sold in the third quarter by pricing mechanism.

(in millions, except per ton data)
Met Segment SalesThree months ended Sept. 30, 2023
Tons SoldCoal Revenues
Realization/ton(1)
% of Met Tons Sold
Export - Other Pricing Mechanisms1.4$190.5$136.7637%
Domestic1.1$210.1$192.9329%
Export - Australian Indexed1.3$204.4$158.5634%
Total Met Coal Revenues3.8$605.0$160.43100%
Thermal Coal Revenues0.3$31.7$92.22
Total Met Segment Coal Revenues (excl. freight & handling)(1)
4.1$636.7$154.73
__________________________________
1. Represents Non-GAAP coal sales realization which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."

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Cost of Coal Sales
(in millions, except per ton data)
Three months ended
Sept. 30, 2023June 30, 2023
Cost of Coal Sales$564.6$583.5
Cost of Coal Sales (excl. freight & handling/idle)(1)
$461.8$458.9

(per ton)
Met Segment(1)
$109.95$106.35
All Other(1)
$84.73$88.59

__________________________________
1. Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under "Non-GAAP Financial Measures" and "Results of Operations."


Alpha's Met segment cost of coal sales increased to an average of $109.95 per ton in the third quarter, compared to $106.35 per ton in the second quarter of 2023. Cost of coal sales for the All Other category improved to $84.73 per ton in the third quarter, compared to $88.59 per ton in the second quarter.

Liquidity and Capital Resources

Cash provided by operating activities in the third quarter decreased to $157.2 million as compared to $317.2 million in the second quarter. Capital expenditures for the third quarter were $54.7 million compared to $54.9 million for the second quarter.

As of September 30, 2023, the company had total liquidity of $390.1 million, including cash and cash equivalents of $296.1 million and $94.1 million of unused availability under the ABL. As of September 30, 2023, the company had no borrowings and $60.9 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of September 30, 2023, was $10.5 million and consisted primarily of equipment financing obligations.


Asset-Based Revolving Credit Facility (ABL) Refinance

The company successfully completed the refinancing of its Asset-Based Revolving Credit Facility, which was previously set to expire in December 2024. On October 27, 2023, the company terminated its existing ABL agreement and entered into a new facility that matures in October 2027, with Regions Bank as the administrative agent and lead arranger along with ServisFirst Bank and Texas Capital Bank serving as joint lead arrangers.

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The new ABL facility allows the company to borrow cash or obtain letters of credit on a revolving basis up to $155 million. Under the terms of the agreement, interest on letters of credit will be 3.3 percent.

The terms of the credit facility include customary representations and warranties, customary affirmative and negative covenants, and customary events of default.

'We are pleased to complete the process of refinancing the ABL, which serves as an important tool for the company," said Todd Munsey, Alpha's chief financial officer. "Alpha's improved credit metrics positively influenced our ability to negotiate more favorable terms and a longer duration than our prior facility, all of which benefits the company and further strengthens our financial position."

Dividend Program

On October 31, 2023, Alpha's board of directors declared a quarterly cash dividend payment of $0.50 per share, which will become payable on December 15, 2023 for holders of record as of December 1, 2023.

As previously announced, the fixed dividend program will cease at year-end to fully focus the company's capital return efforts on its share buyback program.


Share Repurchase Program

On October 31, 2023, Alpha's board of directors increased its authorization for the company's share repurchase program by $300 million, bringing the authorization to $1.5 billion for the repurchase of the company's common stock. As of October 27, 2023, the company has acquired approximately 6.1 million shares of common stock at a cost of approximately $940 million. The number of common stock shares outstanding as of October 27, 2023 was 13,283,594, not including the potentially dilutive effect of unvested equity awards.

The timing and amount of share repurchases will continue to be determined by the company's management based on its evaluation of market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company's debt agreements, and other factors.


Dominion Terminal Associates Multi-Year Capital Investment Plan

The Dominion Terminal Associates (DTA) facility in Newport News, Virginia, in which Alpha has a sixty-five percent ownership interest, is in need of capital investment to maximize functionality and minimize downtime due to mechanical issues.

Together with DTA leadership and ownership partners, Alpha is evaluating a needs assessment and rough timeline for the recommended work. Beyond the company's share of routine operating
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costs which are expected to be approximately $20 million in 2024, Alpha expects that it will invest up to an incremental $25 million per year for infrastructure and equipment upgrades at DTA over the next 6 years.

Eidson commented on the capital spending needs: "DTA is one of Alpha's most important strategic assets because it connects us with our customers across the globe. We rely on its equipment to unload our coal from railcars, sort it into stockpiles, and then load the product into seafaring vessels, all of which occurs on a tight timeline. As we have experienced this year, a mechanical repair or equipment outage can disrupt these intricate logistics schedules, causing delays in shipments and revenue. Therefore, Alpha is proactively planning for a multi-year investment that we expect will significantly reduce downtime and benefit the company well into the future."

Issuance of 2024 Operational Guidance

The company is issuing operational guidance for the 2024 calendar year. Due to the closure of Slabcamp, Alpha's last remaining thermal coal mine, the company expects virtually all of its 2024 financial activity to be reported within the Met segment.

For sales volumes, the company expects to ship between 15.5 million and 16.5 million metallurgical tons in 2024, as well as incidental thermal coal of between 0.9 million and 1.3 million tons, bringing total expected 2024 shipments to a range of 16.4 million to 17.8 million tons.

For cost of coal sales, Alpha is guiding to a range of $110.00 to $116.00 per ton.

The 2024 guidance range for selling, general and administrative costs is $60 million to $66 million, excluding non-recurring expenses and non-cash stock compensation. Idle operations expense is anticipated to be between $18 million and $28 million. The company expects net cash interest income of between $2 million to $8 million, and depreciation, depletion and amortization between $140 million to $160 million.

Capital expenditures for 2024 are expected to be between $210 million and $240 million, which includes sustaining maintenance capital, planned projects to invest in mine development, and some carryover from 2023 due to timing and availability of supplies and contract labor.

In connection with expected capital investments at DTA, Alpha is guiding to a 2024 range of $40 million to $50 million for capital contributions to equity affiliates. The cash contribution range includes both the cash needed for normal operations of the facility along with the amounts expected to be spent in 2024 related to the facility upgrades.

In 2024, the company expects a tax rate of between 12% to 17%.

2023 Performance Update

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The company is increasing its 2023 guidance range for depreciation, depletion and amortization to a range of $135 million to $145 million, up from the prior guidance of $115 million to $135 million.

As of October 25, 2023 for the 2023 calendar year, Alpha has committed and priced approximately 88% of its metallurgical coal within the Met segment at an average price of $182.08 per ton and 100% of thermal coal in the Met segment at an average expected price of $102.45 per ton. In the All Other category, the company is 95% committed and priced at an average price of $92.23 per ton.


2023 Guidance2024 Guidance
in millions of tonsLowHighLowHigh
Metallurgical14.8 15.2 15.5 16.5 
Thermal1.0 1.4 0.9 1.3 
Met Segment15.8 16.6 
All Other0.5 0.7 
Total Shipments16.3 17.3 16.4 17.8 
Committed/Priced1,2,3
CommittedAverage PriceCommittedAverage Price
Metallurgical - Domestic$192.92 $161.91 
Metallurgical - Export$176.67 
Metallurgical Total88 %$182.08 25 %$161.91 
Thermal100 %$102.45 98 %$76.85 
Met Segment
90 %$174.19 30 %$143.95 
All Other95 %$92.23 
Committed/Unpriced1,3
CommittedCommitted
Metallurgical Total12 %49 %
Thermal— %— %
Met Segment
10 %46 %
All Other— %
Costs per ton4
LowHighLowHigh
Met Segment$110.00 $113.00 $110.00 $116.00 
All Other$87.00 $93.00 
In millions (except taxes)LowHighLowHigh
SG&A5
$59 $65 $60 $66 
Idle Operations Expense$21 $31 $18 $28 
Net Cash Interest Income$3 $5 $2 $8 
DD&A$135 $145 $140 $160 
Capital Expenditures$250 $280 $210 $240 
Capital Contributions to Equity Affiliates6
$28 $30 $40 $50 
Tax Rate12 %17 %12 %17 %
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Notes:    
1.Based on committed and priced coal shipments as of October 25, 2023. Committed percentage based on the midpoint of shipment guidance range.
2.Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations.
3.Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates.
4.Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have historically varied and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results.
5.Excludes expenses related to non-cash stock compensation and non-recurring expenses.
6.The 2024 guidance amount includes contributions to fund normal operations at our DTA export facility of approximately $20 million and expected capital investments related to the facility upgrades of $25 million.


Conference Call

The company plans to hold a conference call regarding its third quarter 2023 results on November 2, 2023, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company’s website at https://alphametresources.com/investors. Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com.


Forward-Looking Statements

This news release includes forward-looking statements. These forward-looking statements are based on Alpha's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha’s control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date
8


this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur. 

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FINANCIAL TABLES FOLLOW

Non-GAAP Financial Measures

The discussion below contains “non-GAAP financial measures.” These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP” or “GAAP”). Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “non-GAAP coal revenues,” “non-GAAP cost of coal sales,” and “non-GAAP coal margin.” We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments. Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is presented because management believes it is a useful indicator of the financial performance of our coal operations. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.

Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company’s operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, and capital investments.

Included below are reconciliations of non-GAAP financial measures to GAAP financial measures.


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ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Amounts in thousands, except share and per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2023202220232022
Revenues:
Coal revenues$738,998 $867,849 $2,499,503 $3,271,845 
Other revenues2,822 1,919 11,923 6,299 
Total revenues741,820 869,768 2,511,426 3,278,144 
Costs and expenses:
Cost of coal sales (exclusive of items shown separately below)564,608 554,055 1,687,259 1,736,826 
Depreciation, depletion and amortization32,582 27,925 94,231 83,690 
Accretion on asset retirement obligations6,376 5,921 19,129 17,822 
Amortization of acquired intangibles, net2,069 4,543 6,458 16,038 
Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above)18,053 15,095 56,251 48,339 
Total other operating loss (income):
Mark-to-market adjustment for acquisition-related obligations— (2,954)— 10,615 
Other expense (income)973 2,713 (1,665)569 
Total costs and expenses624,661 607,298 1,861,663 1,913,899 
Income from operations117,159 262,470 649,763 1,364,245 
Other (expense) income:
Interest expense(1,746)(1,754)(5,322)(20,055)
Interest income4,639 1,058 8,911 1,412 
Equity loss in affiliates(6,660)(4,821)(11,582)(8,318)
Miscellaneous (expense) income, net(614)1,594 (857)4,534 
Total other expense, net(4,381)(3,923)(8,850)(22,427)
Income before income taxes112,778 258,547 640,913 1,341,818 
Income tax expense(18,964)(5,730)(94,973)(113,953)
Net income$93,814 $252,817 $545,940 $1,227,865 
Basic income per common share$6.88 $14.77 $37.87 $68.14 
Diluted income per common share$6.65 $14.27 $36.46 $65.31 
Weighted average shares – basic
13,633,640 17,119,328 14,416,289 18,019,161 
Weighted average shares – diluted
14,110,488 17,718,517 14,973,168 18,800,674 
11


ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Amounts in thousands, except share and per share data)
September 30, 2023December 31, 2022
Assets
Current assets:
Cash and cash equivalents$296,059 $301,906 
Short-term investments— 46,052 
Trade accounts receivable, net of allowance for credit losses of $250 and $239 as of September 30, 2023 and December 31, 2022, respectively432,401 407,210 
Inventories, net271,805 200,574 
Short-term deposits6,736 84,748 
Short-term restricted cash— 24,547 
Prepaid expenses and other current assets41,945 49,384 
Total current assets1,048,946 1,114,421 
Property, plant, and equipment, net of accumulated depreciation and amortization of $547,451 and $491,186 as of September 30, 2023 and December 31, 2022, respectively539,904 442,645 
Owned and leased mineral rights, net of accumulated depletion and amortization of $95,541 and $77,333 as of September 30, 2023 and December 31, 2022, respectively446,364 451,062 
Other acquired intangibles, net of accumulated amortization of $47,498 and $53,719 as of September 30, 2023 and December 31, 2022, respectively48,644 55,102 
Long-term restricted investments71,269 105,735 
Long-term restricted cash83,004 28,941 
Deferred income taxes9,080 11,378 
Other non-current assets105,749 103,195 
Total assets$2,352,960 $2,312,479 
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt$3,438 $3,078 
Trade accounts payable121,472 106,037 
Acquisition-related obligations – current
181 28,254 
Accrued expenses and other current liabilities190,119 265,256 
Total current liabilities315,210 402,625 
Long-term debt7,064 7,897 
Workers’ compensation and black lung obligations180,072 188,247 
Pension obligations90,938 110,836 
Asset retirement obligations148,100 142,048 
Deferred income taxes35,282 10,874 
Other non-current liabilities18,221 20,197 
Total liabilities794,887 882,724 
Commitments and Contingencies
Stockholders’ Equity
Preferred stock - par value $0.01, 5.0 million shares authorized, none issued— — 
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Common stock - par value $0.01, 50.0 million shares authorized, 22.0 million issued and 13.4 million outstanding at September 30, 2023 and 21.7 million issued and 15.5 million outstanding at December 31, 2022220 217 
Additional paid-in capital825,143 815,442 
Accumulated other comprehensive loss(16,343)(12,162)
Treasury stock, at cost: 8.6 million shares at September 30, 2023 and 6.2 million shares at December 31, 2022(1,051,185)(649,061)
Retained earnings 1,800,238 1,275,319 
Total stockholders’ equity1,558,073 1,429,755 
Total liabilities and stockholders’ equity$2,352,960 $2,312,479 
13


ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Amounts in thousands)
Nine Months Ended September 30,
20232022
Operating activities:
Net income$545,940 $1,227,865 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization94,231 83,690 
Amortization of acquired intangibles, net6,458 16,038 
Amortization of debt issuance costs and accretion of debt discount1,585 7,757 
Mark-to-market adjustment for acquisition-related obligations— 10,615 
Gain on disposal of assets(6,089)(2,607)
Accretion on asset retirement obligations19,129 17,822 
Employee benefit plans, net9,989 1,312 
Deferred income taxes27,898 11,406 
Stock-based compensation9,678 4,103 
Equity loss in affiliates11,582 8,318 
Other, net(123)432 
Changes in operating assets and liabilities(68,472)(87,714)
Net cash provided by operating activities651,806 1,299,037 
Investing activities:
Capital expenditures(183,836)(103,351)
Proceeds from disposal of assets7,855 3,010 
Cash paid for business acquired(11,919)— 
Purchases of investment securities(166,515)(181,539)
Sales and maturities of investment securities249,598 117,380 
Capital contributions to equity affiliates(21,844)(13,832)
Other, net24 (4,232)
Net cash used in investing activities(126,637)(182,564)
Financing activities:
Principal repayments of long-term debt(1,686)(450,484)
Dividend and dividend equivalents paid(99,731)(6,807)
Common stock repurchases and related expenses(403,385)(391,166)
Proceeds from exercise of warrants4,322 4,771 
Other, net(1,020)(447)
Net cash used in financing activities(501,500)(844,133)
Net increase in cash and cash equivalents and restricted cash23,669 272,340 
Cash and cash equivalents and restricted cash at beginning of period355,394 182,614 
Cash and cash equivalents and restricted cash at end of period$379,063 $454,954 
Supplemental disclosure of noncash investing and financing activities:
Financing leases and capital financing - equipment$2,059 $2,083 
14


Accrued capital expenditures$11,618 $10,527 
Accrued common stock repurchases$6,275 $5,864 
Accrued dividend payable$9,418 $6,898 

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.
As of September 30,
20232022
Cash and cash equivalents$296,059 $404,430 
Short-term restricted cash— 18,800 
Long-term restricted cash83,004 31,724 
Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows$379,063 $454,954 

15


ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION
(Amounts in thousands)
Three Months EndedNine Months Ended September 30,
September 30, 2023June 30, 2023September 30, 202220232022
Net income$93,814 $181,355 $252,817 $545,940 $1,227,865 
Interest expense1,746 1,856 1,754 5,322 20,055 
Interest income(4,639)(2,754)(1,058)(8,911)(1,412)
Income tax expense 18,964 33,598 5,730 94,973 113,953 
Depreciation, depletion and amortization32,582 32,226 27,925 94,231 83,690 
Non-cash stock compensation expense2,999 3,645 1,520 9,678 4,103 
Mark-to-market adjustment - acquisition-related obligations— — (2,954)— 10,615 
Accretion on asset retirement obligations6,376 6,376 5,921 19,129 17,822 
Amortization of acquired intangibles, net2,069 2,192 4,543 6,458 16,038 
Adjusted EBITDA $153,911 $258,494 $296,198 $766,820 $1,492,729 



16


ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS

Three Months Ended September 30, 2023
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$731,481 $7,517 $738,998 
Less: Freight and handling fulfillment revenues(94,770)(2)(94,772)
Non-GAAP Coal revenues$636,711 $7,515 $644,226 
Tons sold4,115 110 4,225 
Non-GAAP Coal sales realization per ton$154.73 $68.32 $152.48 
Cost of coal sales (exclusive of items shown separately below)$552,737 $11,871 $564,608 
Depreciation, depletion and amortization - production (1)
31,893 377 32,270 
Accretion on asset retirement obligations3,722 2,654 6,376 
Amortization of acquired intangibles, net2,069 — 2,069 
Total Cost of coal sales$590,421 $14,902 $605,323 
Less: Freight and handling costs(94,770)(2)(94,772)
Less: Depreciation, depletion and amortization - production (1)
(31,893)(377)(32,270)
Less: Accretion on asset retirement obligations(3,722)(2,654)(6,376)
Less: Amortization of acquired intangibles, net(2,069)— (2,069)
Less: Idled and closed mine costs(5,507)(2,549)(8,056)
Non-GAAP Cost of coal sales$452,460 $9,320 $461,780 
Tons sold4,115 110 4,225 
Non-GAAP Cost of coal sales per ton$109.95 $84.73 $109.30 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

17


Three Months Ended September 30, 2023
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$731,481 $7,517 $738,998 
Less: Total Cost of coal sales (per table above)(590,421)(14,902)(605,323)
GAAP Coal margin$141,060 $(7,385)$133,675 
Tons sold4,115 110 4,225 
GAAP Coal margin per ton$34.28 $(67.14)$31.64 
GAAP Coal margin$141,060 $(7,385)$133,675 
Add: Depreciation, depletion and amortization - production (1)
31,893 377 32,270 
Add: Accretion on asset retirement obligations3,722 2,654 6,376 
Add: Amortization of acquired intangibles, net2,069 — 2,069 
Add: Idled and closed mine costs5,507 2,549 8,056 
Non-GAAP Coal margin$184,251 $(1,805)$182,446 
Tons sold4,115 110 4,225 
Non-GAAP Coal margin per ton$44.78 $(16.41)$43.18 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

18


Three Months Ended June 30, 2023
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$833,974 $19,833 $853,807 
Less: Freight and handling fulfillment revenues(118,222)— (118,222)
Non-GAAP Coal revenues$715,752 $19,833 $735,585 
Tons sold4,149 199 4,348 
Non-GAAP Coal sales realization per ton$172.51 $99.66 $169.18 
Cost of coal sales (exclusive of items shown separately below)$563,495 $20,019 $583,514 
Depreciation, depletion and amortization - production (1)
31,649 287 31,936 
Accretion on asset retirement obligations3,721 2,655 6,376 
Amortization of acquired intangibles, net2,192 — 2,192 
Total Cost of coal sales$601,057 $22,961 $624,018 
Less: Freight and handling costs(118,222)— (118,222)
Less: Depreciation, depletion and amortization - production (1)
(31,649)(287)(31,936)
Less: Accretion on asset retirement obligations(3,721)(2,655)(6,376)
Less: Amortization of acquired intangibles, net(2,192)— (2,192)
Less: Idled and closed mine costs(4,022)(2,389)(6,411)
Non-GAAP Cost of coal sales$441,251 $17,630 $458,881 
Tons sold4,149 199 4,348 
Non-GAAP Cost of coal sales per ton$106.35 $88.59 $105.54 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

19


Three Months Ended June 30, 2023
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$833,974 $19,833 $853,807 
Less: Total Cost of coal sales (per table above)(601,057)(22,961)(624,018)
GAAP Coal margin$232,917 $(3,128)$229,789 
Tons sold4,149 199 4,348 
GAAP Coal margin per ton$56.14 $(15.72)$52.85 
GAAP Coal margin$232,917 $(3,128)$229,789 
Add: Depreciation, depletion and amortization - production (1)
31,649 287 31,936 
Add: Accretion on asset retirement obligations3,721 2,655 6,376 
Add: Amortization of acquired intangibles, net2,192 — 2,192 
Add: Idled and closed mine costs4,022 2,389 6,411 
Non-GAAP Coal margin$274,501 $2,203 $276,704 
Tons sold4,149 199 4,348 
Non-GAAP Coal margin per ton$66.16 $11.07 $63.64 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
Three Months Ended September 30, 2022
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$840,638 $27,211 $867,849 
Less: Freight and handling fulfillment revenues(122,585)(3)(122,588)
Non-GAAP Coal revenues$718,053 $27,208 $745,261 
Tons sold3,896 249 4,145 
Non-GAAP Coal sales realization per ton$184.31 $109.27 $179.80 
Cost of coal sales (exclusive of items shown separately below)$534,718 $19,337 $554,055 
Depreciation, depletion and amortization - production (1)
26,747 906 27,653 
Accretion on asset retirement obligations3,390 2,531 5,921 
Amortization of acquired intangibles, net3,591 952 4,543 
Total Cost of coal sales$568,446 $23,726 $592,172 
Less: Freight and handling costs(122,585)(3)(122,588)
Less: Depreciation, depletion and amortization - production (1)
(26,747)(906)(27,653)
Less: Accretion on asset retirement obligations(3,390)(2,531)(5,921)
Less: Amortization of acquired intangibles, net(3,591)(952)(4,543)
Less: Idled and closed mine costs(3,580)(2,530)(6,110)
Non-GAAP Cost of coal sales$408,553 $16,804 $425,357 
Tons sold3,896 249 4,145 
Non-GAAP Cost of coal sales per ton$104.86 $67.49 $102.62 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
20


Three Months Ended September 30, 2022
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$840,638 $27,211 $867,849 
Less: Total Cost of coal sales (per table above)(568,446)(23,726)(592,172)
GAAP Coal margin$272,192 $3,485 $275,677 
Tons sold3,896 249 4,145 
GAAP Coal margin per ton$69.86 $14.00 $66.51 
GAAP Coal margin$272,192 $3,485 $275,677 
Add: Depreciation, depletion and amortization - production (1)
26,747 906 27,653 
Add: Accretion on asset retirement obligations3,390 2,531 5,921 
Add: Amortization of acquired intangibles, net3,591 952 4,543 
Add: Idled and closed mine costs3,580 2,530 6,110 
Non-GAAP Coal margin$309,500 $10,404 $319,904 
Tons sold3,896 249 4,145 
Non-GAAP Coal margin per ton$79.44 $41.78 $77.18 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

Nine Months Ended September 30, 2023
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$2,452,462 $47,041 $2,499,503 
Less: Freight and handling fulfillment revenues(319,244)(227)(319,471)
Non-GAAP Coal revenues$2,133,218 $46,814 $2,180,032 
Tons sold12,001 487 12,488 
Non-GAAP Coal sales realization per ton$177.75 $96.13 $174.57 
Cost of coal sales (exclusive of items shown separately below)$1,639,230 $48,029 $1,687,259 
Depreciation, depletion and amortization - production (1)
92,421 922 93,343 
Accretion on asset retirement obligations11,165 7,964 19,129 
Amortization of acquired intangibles, net6,458 — 6,458 
Total Cost of coal sales$1,749,274 $56,915 $1,806,189 
Less: Freight and handling costs(319,244)(227)(319,471)
Less: Depreciation, depletion and amortization - production (1)
(92,421)(922)(93,343)
Less: Accretion on asset retirement obligations(11,165)(7,964)(19,129)
Less: Amortization of acquired intangibles, net(6,458)— (6,458)
Less: Idled and closed mine costs(13,107)(7,558)(20,665)
Non-GAAP Cost of coal sales$1,306,879 $40,244 $1,347,123 
Tons sold12,001 487 12,488 
Non-GAAP Cost of coal sales per ton$108.90 $82.64 $107.87 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
21


Nine Months Ended September 30, 2023
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$2,452,462 $47,041 $2,499,503 
Less: Total Cost of coal sales (per table above)(1,749,274)(56,915)(1,806,189)
GAAP Coal margin$703,188 $(9,874)$693,314 
Tons sold12,001 487 12,488 
GAAP Coal margin per ton$58.59 $(20.28)$55.52 
GAAP Coal margin$703,188 $(9,874)$693,314 
Add: Depreciation, depletion and amortization - production (1)
92,421 922 93,343 
Add: Accretion on asset retirement obligations11,165 7,964 19,129 
Add: Amortization of acquired intangibles, net6,458 — 6,458 
Add: Idled and closed mine costs13,107 7,558 20,665 
Non-GAAP Coal margin$826,339 $6,570 $832,909 
Tons sold12,001 487 12,488 
Non-GAAP Coal margin per ton$68.86 $13.49 $66.70 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.


22


Nine Months Ended September 30, 2022
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$3,213,639 $58,206 $3,271,845 
Less: Freight and handling fulfillment revenues(423,132)(21)(423,153)
Non-GAAP Coal revenues$2,790,507 $58,185 $2,848,692 
Tons sold11,726 771 12,497 
Non-GAAP Coal sales realization per ton$237.98 $75.47 $227.95 
Cost of coal sales (exclusive of items shown separately below)$1,684,224 $52,602 $1,736,826 
Depreciation, depletion and amortization - production (1)
81,009 1,953 82,962 
Accretion on asset retirement obligations10,178 7,644 17,822 
Amortization of acquired intangibles, net13,182 2,856 16,038 
Total Cost of coal sales$1,788,593 $65,055 $1,853,648 
Less: Freight and handling costs(423,132)(21)(423,153)
Less: Depreciation, depletion and amortization - production (1)
(81,009)(1,953)(82,962)
Less: Accretion on asset retirement obligations(10,178)(7,644)(17,822)
Less: Amortization of acquired intangibles, net(13,182)(2,856)(16,038)
Less: Idled and closed mine costs(9,892)(9,732)(19,624)
Non-GAAP Cost of coal sales$1,251,200 $42,849 $1,294,049 
Tons sold11,726 771 12,497 
Non-GAAP Cost of coal sales per ton$106.70 $55.58 $103.55 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.
23



Nine Months Ended September 30, 2022
(In thousands, except for per ton data)MetAll OtherConsolidated
Coal revenues$3,213,639 $58,206 $3,271,845 
Less: Total Cost of coal sales (per table above)(1,788,593)(65,055)(1,853,648)
GAAP Coal margin$1,425,046 $(6,849)$1,418,197 
Tons sold11,726 771 12,497 
GAAP Coal margin per ton$121.53 $(8.88)$113.48 
GAAP Coal margin$1,425,046 $(6,849)$1,418,197 
Add: Depreciation, depletion and amortization - production (1)
81,009 1,953 82,962 
Add: Accretion on asset retirement obligations10,178 7,644 17,822 
Add: Amortization of acquired intangibles, net13,182 2,856 16,038 
Add: Idled and closed mine costs9,892 9,732 19,624 
Non-GAAP Coal margin$1,539,307 $15,336 $1,554,643 
Tons sold11,726 771 12,497 
Non-GAAP Coal margin per ton$131.27 $19.89 $124.40 
(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.



Three Months Ended September 30, 2023
(In thousands, except for per ton data)Tons SoldCoal RevenuesNon-GAAP Coal sales realization per ton% of Met Tons Sold
Export - other pricing mechanisms1,393 $190,503 $136.76 37 %
Domestic1,089 210,106 $192.93 29 %
Export - Australian indexed1,289 204,378 $158.56 34 %
Total Met segment - met coal 3,771 604,987 $160.43 100 %
Met segment - thermal coal344 31,724 $92.22 
Total Met segment Coal revenues4,115 636,711 $154.73 
All Other Coal revenues110 7,515 $68.32 
Non-GAAP Coal revenues4,225 644,226 $152.48 
Add: Freight and handling fulfillment revenues— 94,772 
Coal revenues4,225 $738,998 
24

v3.23.3
Cover
Nov. 02, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 02, 2023
Entity Registrant Name ALPHA METALLURGICAL RESOURCES, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-38735
Entity Tax Identification Number 81-3015061
Entity Address, Address Line One 340 Martin Luther King Jr. Blvd.
Entity Address, City or Town Bristol
Entity Address, State or Province TN
Entity Address, Postal Zip Code 37620
City Area Code 423
Local Phone Number 573-0300
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol AMR
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001704715
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