Alpha Metallurgical Resources, Inc. (NYSE:AMR) Q4 2021 Earnings Conference Call March 7, 2022 10:00 AM ET Company Participants Emily O'Quinn - SVP, Corporate Communications David Stetson - Chairman and Chief Executive Officer Andy Eidson - President and Chief Financial Officer Jason Whitehead - Executive Vice President and Chief Operating Officer Daniel Horn - Executive Vice President and Chief Commercial Officer Conference Call Participants Lucas Pipes - B. Riley Nathan Martin - The Benchmark Company Opera ...

Reserves and Production - The company has a substantial reserve base of 351.1 million tons of proven and probable reserves as of December 31, 2021, including 335.8 million tons of metallurgical reserves and 15.3 million tons of thermal reserves[15]. - The company operates 13 underground mines, seven surface mines, and eight coal preparation plants, with a focus on supplying metallurgical coal to the steel industry[13]. - Production at newly developed mines Road Fork 52, Black Eagle, and Lynn Branch increased in 2021, contributing to the company's overall output[17]. - The company has approximately 381.7 million tons of in situ bituminous coal resources as of December 31, 2021, supporting its long-term operational strategy[15]. - The company produced approximately 13.8 million tons of met coal, representing 21% of the total U.S. production of 64.3 million tons[54]. - The company produced approximately 2.5 million tons of thermal coal in 2021, which is less than 1% of the total U.S. production of 512.3 million tons[55]. Market and Customer Base - The company has expanded its customer base in 2021, particularly in Asia, due to trade tensions between China and Australia, which have created opportunities for high-quality metallurgical coal[16]. - Coal sales to Asia accounted for approximately 49% of export coal revenues in 2021, while sales to Europe accounted for 23%[44]. - Approximately 69% of the met coal tons sold by the company were shipped internationally in 2021[54]. - The largest customer accounted for approximately 13% of total revenues, while the top 10 customers contributed about 64% of total revenues[202]. - 76% of coal revenues were derived from sales to customers outside the U.S. for the year ended December 31, 2021[204]. Financial Performance and Revenue - Coal export revenues accounted for approximately 76% of the company's coal revenues for the year ended December 31, 2021[186]. - Metallurgical coal (met coal) accounted for approximately 92% of the company's coal revenues for the year ended December 31, 2021[187]. - The company’s operations are significantly affected by coal prices, which depend on various external factors including demand for steel and electricity[183]. - A sustained low demand for coal, particularly for met coal, could reduce the company's revenues and impact the collectability of accounts receivable from steel industry customers[185]. - Competition within the coal industry and excess production capacity may lead to downward pressure on coal prices[192]. Regulatory and Environmental Challenges - The company is subject to increasingly stringent regulatory and administrative requirements for coal mining permits, which may delay or block new permits due to past violations[87]. - The Clean Air Act and its amendments may impose additional emissions control requirements on coal-fired power plants, potentially reducing demand for coal[94]. - The company faces potential legal challenges regarding the EPA's air quality standards, which could affect future operational compliance and costs[100]. - The EPA's regulations under the Clean Air Act may require significant additional emissions control expenditures at coal-fired power plants, impacting operational costs[95]. - The Endangered Species Act may delay or prohibit mining permits, affecting operational timelines and costs[139]. Operational Efficiency and Workforce - The company reported a significant increase in production capabilities and cost competitiveness across its operations in the Central Appalachia coal basin[13]. - The company had approximately 3,500 employees as of December 31, 2021, with 73% being hourly workers[58]. - As of December 31, 2021, 45% of the total workforce had at least ten years of service with the company[60]. - The company achieved an overall NFDL safety incident rate that was 30% better than the U.S. industry average[67]. - The company experienced an increase in employee absences due to COVID-19-related matters during 2021, impacting operations[71]. Strategic Initiatives and Changes - The company strategically exited thermal coal production by selling its Cumberland mining complex, accelerating its focus on metallurgical coal[21]. - The company changed its corporate name from Contura Energy, Inc. to Alpha Metallurgical Resources, Inc. on February 1, 2021, to better reflect its strategic focus[22]. - The company is continuously evaluating potential acquisitions and joint ventures to enhance its asset portfolio and market position[16]. Financial Liabilities and Costs - The company accrued $164.2 million for reclamation liabilities and mine closures as of December 31, 2021[77]. - The company recorded a surety bond amount of approximately $176.1 million as of December 31, 2021, down from $351.6 million in 2020, indicating a significant reduction of about 50%[92]. - The company is liable under state laws for black lung claims that are covered through its trust and insurance policies, making future liabilities difficult to estimate[151]. - The excise tax for black lung benefits is set at up to $1.10 per ton for deep-mined coal and up to $0.55 per ton for surface-mined coal, impacting financial expenses[150]. Market Risks and Challenges - Changes in international trade agreements and foreign currency fluctuations could adversely affect competitiveness in international markets[196]. - Chinese government regulations and anti-smog measures may impact global coal demand and pricing[198]. - Trade disputes in Asian markets have resulted in volatile price behavior, potentially affecting business operations[199]. - The ability to collect payments from customers may be impaired due to their creditworthiness and financial health deterioration[203]. - Concurrent loss of large customers could materially and adversely affect revenues and profitability[201].

Alpha Metallurgical Resources, Inc. (NYSE:AMR) Q3 2021 Earnings Conference Call November 5, 2021 10:00 AM ET Company Participants Emily O'Quinn - SVP, Corporate Communications David Stetson - Chairman and CEO Andy Eidson - President and CFO Jason Whitehead - COO Dan Horn - EVP, Sales Conference Call Participants Lucas Pipes - B Riley Securities Nathan Martin - The Benchmark Company Lucas Pipes - B. Riley Securities Matthew Russell - Hudson Bay Operator Hello and welcome to the Alpha Metallurgical Resources' ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38735 ALPHA METALLURGICAL RESOURCES, INC. (Exact name of registrant as specified in its charter) Delaware 81-3015061 (State ...

Alpha Metallurgical Resources, Inc. (NYSE:AMR) Q2 2021 Earnings Conference Call August 6, 2021 10:00 AM ET Company Participants Emily O'Quinn – Senior Vice President-Corporate Communications David Stetson – Chair and Chief Executive Officer Jason Whitehead – Chief Operating Officer Andy Eidson – President and Chief Financial Officer Dan Horn – Executive Vice President-Sales Conference Call Participants Nathan Martin – The Benchmark Company Lucas Pipes – B. Riley Securities Operator Good day, and welcome to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38735 ALPHA METALLURGICAL RESOURCES, INC. (Exact name of registrant as specified in its charter) Delaware 81-3015061 (State or ot ...

Alpha Metallurgical Resources, Inc.'s (NYSE:AMR) Q1 2021 Earnings Conference Call May 10, 2021 10:00 AM ET Company Participants Emily O'Quinn - Senior Vice President, Corporate Communications David Stetson - Chairman and CEO Andy Eidson - President and CFO Jason Whitehead - Chief Operating Officer Dan Horn - Executive Vice President, Sales Conference Call Participants Nathan Martin - Benchmark Company Lucas Pipes - B. Riley Securities Operator Good morning and welcome to the Alpha Metallurgical Resources Fi ...

Cautionary Note Regarding Forward Looking Statements [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) Forward-looking statements are based on expectations and subject to risks, including COVID-19, financial performance, and market conditions - The report includes forward-looking statements based on forecasts and estimates, subject to risks and uncertainties[4](index=4&type=chunk) - Key factors that may cause actual results to differ materially include the effects of the COVID-19 pandemic, financial performance, liquidity, coal prices, worldwide market demand for coal, steel, and electricity, ability to obtain financing, trade barriers, production capabilities and costs, environmental laws, customer relationships, and employee benefit obligations[4](index=4&type=chunk)[5](index=5&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, which are based on currently available information and speak only as of their creation date. The company does not undertake to revise or update these statements publicly[6](index=6&type=chunk) Part I - Financial Information [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Q1 2021 and 2020, with detailed notes [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported an improved net loss of $32.9 million in Q1 2021, with decreased revenues and expenses Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :-------------------- | :---------------------------- | :---------------------------- | | Total Revenues | $386,253 | $402,804 | | Total Costs & Expenses| $402,755 | $422,511 | | Loss from Operations | $(16,502) | $(19,707) | | Net Loss | $(32,928) | $(39,808) | | Basic & Diluted Loss per Common Share | $(1.79) | $(2.18) | - Net loss from continuing operations improved to **$(32,691) thousand** in Q1 2021 from $(36,186) thousand in Q1 2020[8](index=8&type=chunk) - Coal revenues decreased from **$401,460 thousand** in Q1 2020 to **$385,452 thousand** in Q1 2021[8](index=8&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Total comprehensive loss improved to $(31.4) million in Q1 2021, driven by positive other comprehensive income Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :-------------------- | :---------------------------- | :---------------------------- | | Net Loss | $(32,928) | $(39,808) | | Other Comprehensive Income (Loss), net of tax | $1,484 | $(4,010) | | Total Comprehensive Loss | $(31,444) | $(43,818) | - Other comprehensive income (loss) for employee benefit plans shifted from a loss of **$(4,010) thousand** in Q1 2020 to an income of **$1,484 thousand** in Q1 2021[9](index=9&type=chunk) [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased, while liabilities increased and stockholders' equity decreased as of March 31, 2021 Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | March 31, 2021 | December 31, 2020 | | :-------------------- | :------------- | :---------------- | | Total Assets | $1,671,641 | $1,680,089 | | Total Liabilities | $1,501,480 | $1,479,987 | | Total Stockholders' Equity | $170,161 | $200,102 | | Cash and Cash Equivalents | $92,236 | $139,227 | | Trade Accounts Receivable, net | $214,342 | $145,670 | - Cash and cash equivalents decreased by **$46,991 thousand** from December 31, 2020, to March 31, 2021[11](index=11&type=chunk) - Trade accounts receivable, net, increased significantly from **$145,670 thousand** to **$214,342 thousand**[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased in Q1 2021, with changes in investing and financing Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :-------------------- | :---------------------------- | :---------------------------- | | Net Cash Used in Operating Activities | $(19,115) | $(60) | | Net Cash Used in Investing Activities | $(29,749) | $(58,771) | | Net Cash (Used in) Provided by Financing Activities | $(6,404) | $55,136 | | Net Decrease in Cash and Cash Equivalents and Restricted Cash | $(55,268) | $(3,695) | - Capital expenditures decreased from **$49,559 thousand** in Q1 2020 to **$20,395 thousand** in Q1 2021[15](index=15&type=chunk) - Cash and cash equivalents and restricted cash at the end of the period decreased to **$189,303 thousand** in Q1 2021 from $343,985 thousand in Q1 2020[15](index=15&type=chunk)[17](index=17&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased due to net loss and common stock repurchases in Q1 2021 Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric (in thousands) | March 31, 2021 | December 31, 2020 | | :-------------------- | :------------- | :---------------- | | Common Stock | $207 | $206 | | Additional Paid-in Capital | $781,606 | $779,424 | | Accumulated Other Comprehensive Loss | $(110,501) | $(111,985) | | Treasury Stock, at Cost | $(107,694) | $(107,014) | | Accumulated Deficit | $(393,457) | $(360,529) | | Total Stockholders' Equity | $170,161 | $200,102 | - The accumulated deficit increased from **$(360,529) thousand** at December 31, 2020, to **$(393,457) thousand** at March 31, 2021, reflecting the net loss[19](index=19&type=chunk) - Common stock repurchases and related expenses amounted to **$(680) thousand** for the three months ended March 31, 2021[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations for financial statements, covering policies, accounts, and contingencies [ (1) Business and Basis of Presentation](index=14&type=section&id=(1)%20Business%20and%20Basis%20of%20Presentation) Alpha Metallurgical Resources, Inc. is a metallurgical coal miner facing liquidity risks and COVID-19 impacts - Alpha Metallurgical Resources, Inc. is a leading U.S. supplier of metallurgical products for the steel industry, operating in Virginia and West Virginia[21](index=21&type=chunk) - The company's former Northern Appalachia (NAPP) operations are reported as discontinued operations, and historical financial information has been restated accordingly[22](index=22&type=chunk) - Weak market conditions and depressed coal prices have led to operating losses, posing liquidity risks. The company believes it has sufficient liquidity for the next 12 months but acknowledges uncertainties[25](index=25&type=chunk) - The COVID-19 pandemic has negatively impacted the company's business, results of operations, financial condition, and cash flows, with the full extent of the impact remaining uncertain[26](index=26&type=chunk)[27](index=27&type=chunk) [ (2) Discontinued Operations](index=15&type=section&id=(2)%20Discontinued%20Operations) Discontinued operations relate to the NAPP thermal coal sale, with a reduced loss in Q1 2021 - Discontinued operations consist of activities related to the company's former NAPP operations, specifically the sale of thermal coal mining operations in Pennsylvania[30](index=30&type=chunk)[31](index=31&type=chunk) - The loss from discontinued operations before income taxes for the three months ended March 31, 2021, was **$(237) thousand**, compared to $(3,622) thousand for the same period in 2020[32](index=32&type=chunk) Discontinued Operations Balance Sheet (in thousands) | Metric (in thousands) | March 31, 2021 | December 31, 2020 | | :-------------------- | :------------- | :---------------- | | Current Assets - Discontinued Operations | $3,216 | $10,935 | | Non-Current Assets - Discontinued Operations | $9,476 | $9,473 | | Current Liabilities - Discontinued Operations | $7,502 | $12,306 | | Non-Current Liabilities - Discontinued Operations | $28,028 | $29,090 | [ (3) Revenue](index=16&type=section&id=(3)%20Revenue) Revenue is primarily from met and thermal coal sales, disaggregated by product and market, with 63% from exports - Revenue is primarily from the sale of coal (produced and purchased) and other sources like equipment sales, rentals, and fees[35](index=35&type=chunk)[142](index=142&type=chunk) Revenue by Category (in thousands) | Revenue Category (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :------------------------------ | :---------------------------- | :---------------------------- | | Export Met Coal Revenues | $242,752 | $244,071 | | Export Thermal Coal Revenues | $1,031 | $7,383 | | Domestic Met Coal Revenues | $100,242 | $114,688 | | Domestic Thermal Coal Revenues | $41,427 | $35,318 | | Total Coal Revenues | $385,452 | $401,460 | - Export coal revenues represented **63%** of total coal revenues for both Q1 2021 (**$243,783 thousand**) and Q1 2020 (**$251,454 thousand**)[37](index=37&type=chunk)[38](index=38&type=chunk)[111](index=111&type=chunk) Estimated Coal Revenues (in thousands) | Estimated Coal Revenues (in thousands) | Remainder of 2021 | 2022 | 2023 | 2024 | 2025 | Total | | :------------------------------------- | :---------------- | :------- | :--- | :--- | :--- | :-------- | | Estimated coal revenues | $84,555 | $32,560 | $— | $— | $— | $117,115 | [ (4) Accumulated Other Comprehensive Loss](index=17&type=section&id=(4)%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss improved due to employee benefit costs in Q1 2021 Accumulated Other Comprehensive Loss (in thousands) | Metric (in thousands) | Balance Jan 1, 2021 | Other Comprehensive Income (Loss) | Reclassified Amounts | Balance March 31, 2021 | | :-------------------- | :------------------ | :-------------------------------- | :------------------- | :--------------------- | | Employee benefit costs| $(111,985) | $— | $1,484 | $(110,501) | Reclassified Amounts (in thousands) | Reclassified Amounts (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | Affected Line Item | | :---------------------------------- | :---------------------------- | :---------------------------- | :----------------- | | Amortization of actuarial loss | $1,484 | $794 | Miscellaneous income (loss), net | | Settlement | $— | $1,200 | Miscellaneous income (loss), net | [ (5) Net Loss Per Share](index=17&type=section&id=(5)%20Net%20Loss%20Per%20Share) Basic and diluted net loss per share improved to $(1.79) in Q1 2021, with anti-dilutive securities excluded Net Loss Per Share | Metric | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :----- | :---------------------------- | :---------------------------- | | Basic and Diluted Loss per Common Share | $(1.79) | $(2.18) | | Weighted Average Shares – Basic and Diluted | 18,361,444 | 18,245,911 | - **954,248 warrants**, stock options, and other stock-based instruments were excluded from diluted net loss per common share calculation in Q1 2021 due to anti-dilution[45](index=45&type=chunk) - The weighted average share impact of stock options and other stock-based instruments excluded due to net loss was **323,236** in Q1 2021 and 193,357 in Q1 2020[46](index=46&type=chunk) [ (6) Inventories, net](index=18&type=section&id=(6)%20Inventories%2C%20net) Total inventories remained stable, with raw coal increasing and saleable coal decreasing Inventories, net (in thousands) | Inventory Category (in thousands) | March 31, 2021 | December 31, 2020 | | :-------------------------------- | :------------- | :---------------- | | Raw coal | $20,573 | $15,084 | | Saleable coal | $62,688 | $69,262 | | Materials, supplies and other, net| $25,610 | $23,705 | | Total inventories, net | $108,871 | $108,051 | [ (7) Acquired Intangibles](index=18&type=section&id=(7)%20Acquired%20Intangibles) Net acquired intangibles decreased due to amortization of coal supply agreements and mine permits Acquired Intangibles (in thousands) | Acquired Intangible (in thousands) | March 31, 2021 Net Total | December 31, 2020 Net Total | | :--------------------------------- | :----------------------- | :-------------------------- | | Coal supply agreements, net | $(245) | $(327) | | Acquired mine permits, net | $84,245 | $88,196 | | Total | $84,000 | $87,869 | Amortization (in thousands) | Amortization (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :-------------------------- | :---------------------------- | :---------------------------- | | Amortization of mine permits| $3,951 | $3,328 | | Amortization of above-market coal supply agreements | $— | $18 | | Amortization of below-market coal supply agreements | $(82) | $(2,835) | | Net income | $(82) | $(2,817) | [ (8) Asset Impairment and Restructuring](index=19&type=section&id=(8)%20Asset%20Impairment%20and%20Restructuring) Asset impairment and restructuring significantly decreased in Q1 2021 compared to prior year's substantial impairments Impairment Category (in thousands) | Impairment Category (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :--------------------------------- | :---------------------------- | :---------------------------- | | Mineral rights, net | $— | $21,825 | | Property, plant, and equipment, net| $60 | $6,066 | | Acquired mine permits, net | $— | $5,818 | | Total long-lived asset impairment | $60 | $33,709 | - Restructuring expense of **$(621) thousand** was recorded in Q1 2021 due to strategic actions and changes to severance and employee-related benefits[51](index=51&type=chunk) - The significant asset impairment in Q1 2020 was due to declines in metallurgical and thermal coal pricing, which reduced forecasted margins below recoverability levels[50](index=50&type=chunk) [ (9) Long-Term Debt](index=20&type=section&id=(9)%20Long-Term%20Debt) Total long-term debt slightly decreased, with the Term Loan Credit Facility as the largest component Long-Term Debt (in thousands) | Debt Category (in thousands) | March 31, 2021 | December 31, 2020 | | :--------------------------- | :------------- | :---------------- | | Term Loan Credit Facility | $551,969 | $553,373 | | ABL Facility | $— | $3,350 | | LCC Note Payable | $27,500 | $27,500 | | LCC Water Treatment Obligation | $6,875 | $6,875 | | Other | $7,520 | $8,475 | | Debt discount and issuance costs | $(14,103) | $(17,046) | | Total long-term debt | $579,761 | $582,527 | | Less current portion | $(29,447) | $(28,830) | | Long-term debt, net of current portion | $550,314 | $553,697 | - The Term Loan Credit Facility carries an interest rate of **9.00%** (Eurocurrency rate plus 7.00%)[54](index=54&type=chunk) - The company was in compliance with all covenants under the Term Loan Credit Facility and ABL Facility as of March 31, 2021[55](index=55&type=chunk)[58](index=58&type=chunk) - During Q1 2021, **$25,000 thousand** of cash collateral was posted for the ABL Facility, a portion of which was used to repay **$3,350 thousand** in borrowings, with the remainder returned to unrestricted cash[57](index=57&type=chunk) [ (10) Acquisition-Related Obligations](index=21&type=section&id=(10)%20Acquisition-Related%20Obligations) Acquisition-related obligations increased, primarily driven by the Contingent Revenue Obligation Acquisition-Related Obligations (in thousands) | Obligation (in thousands) | March 31, 2021 | December 31, 2020 | | :------------------------ | :------------- | :---------------- | | Contingent Revenue Obligation | $32,143 | $28,967 | | Environmental Settlement Obligations | $9,979 | $10,391 | | UMWA Funds Settlement Liability | $2,000 | $2,000 | | Discount | $(1,120) | $(1,491) | | Total acquisition-related obligations | $43,002 | $39,867 | | Less current portion | $(19,879) | $(19,099) | | Acquisition-related obligations, net of current portion | $23,123 | $20,768 | - The Contingent Revenue Obligation increased from **$28,967 thousand** to **$32,143 thousand**[59](index=59&type=chunk)[60](index=60&type=chunk) - The company paid **$11,396 thousand** related to the Contingent Revenue Obligation during Q2 2021[61](index=61&type=chunk) [ (11) Asset Retirement Obligations](index=21&type=section&id=(11)%20Asset%20Retirement%20Obligations) Total asset retirement obligations slightly increased due to accretion for the period Asset Retirement Obligations (in thousands) | Metric (in thousands) | Amount | | :-------------------- | :----- | | Total asset retirement obligations at December 31, 2020 | $140,074 | | Accretion for the period | $6,648 | | Revisions in estimated cash flows | $(6,047) | | Expenditures for the period | $— | | Total asset retirement obligations at March 31, 2021 | $140,675 | | Less current portion | $(11,427)| | Long-term portion | $129,248 | [ (12) Fair Value of Financial Instruments and Fair Value Measurements](index=21&type=section&id=(12)%20Fair%20Value%20of%20Financial%20Instruments%20and%20Fair%20Value%20Measurements) Financial instruments are measured at fair value using a hierarchy, with long-term debt and obligations classified - Fair values of cash, receivables, payables, and current liabilities approximate carrying amounts due to short maturities[64](index=64&type=chunk) Long-Term Debt Fair Value (in thousands) | Long-Term Debt (in thousands) | March 31, 2021 Fair Value | December 31, 2020 Fair Value | | :---------------------------- | :------------------------ | :--------------------------- | | Term Loan Credit Facility | $453,072 (Level 2) | $379,614 (Level 2) | | LCC Note Payable | $23,324 (Level 3) | $20,328 (Level 3) | | LCC Water Treatment Obligation| $5,099 (Level 3) | $4,281 (Level 3) | | ABL Facility | $— (Level 3) | $3,057 (Level 3) | | Total Long-Term Debt | $481,495 | $407,280 | Acquisition-Related Obligations Fair Value (in thousands) | Acquisition-Related Obligations (in thousands) | March 31, 2021 Fair Value | December 31, 2020 Fair Value | | :--------------------------------------------- | :------------------------ | :--------------------------- | | UMWA Funds Settlement Liability | $1,657 (Level 3) | $1,426 (Level 3) | | Environmental Settlement Obligations | $8,416 (Level 3) | $7,760 (Level 3) | | Contingent Revenue Obligation | $32,143 (Level 3) | $28,967 (Level 3) | | Trading securities | $34,573 | $22,498 | - The Contingent Revenue Obligation is valued using a Black-Scholes pricing model, with inputs including forecasted future revenue (**$0.9 - $1.1 billion**), stated royalty rate (**1.0% - 1.5%**), and annualized volatility (**20.5% - 49.9%** in Q1 2021)[78](index=78&type=chunk)[79](index=79&type=chunk) [ (13) Income Taxes](index=24&type=section&id=(13)%20Income%20Taxes) An income tax benefit of $5 thousand was recorded in Q1 2021, impacted by deferred tax asset valuation - Income tax benefit for Q1 2021 was **$5 thousand**, compared to $2,188 thousand in Q1 2020[80](index=80&type=chunk) - The effective tax rate differs from the federal statutory rate of **21%** primarily due to an increase of **$9,425 thousand** in the deferred tax asset valuation allowance in Q1 2021[80](index=80&type=chunk)[81](index=81&type=chunk) - The company anticipates no current federal income tax liability in 2021[80](index=80&type=chunk) [ (14) Employee Benefit Plans](index=24&type=section&id=(14)%20Employee%20Benefit%20Plans) Net periodic benefit for pension and black lung obligations increased in Q1 2021 Pension Benefit (in thousands) | Pension Benefit (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :----------------------------- | :---------------------------- | :---------------------------- | | Interest cost | $3,422 | $4,735 | | Expected return on plan assets | $(7,247) | $(6,812) | | Amortization of net actuarial loss | $875 | $469 | | Settlement | $— | $1,167 | | Net periodic benefit | $(2,950) | $(441) | Black Lung Expense (in thousands) | Black Lung Expense (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :-------------------------------- | :---------------------------- | :---------------------------- | | Service cost | $739 | $488 | | Interest cost | $607 | $822 | | Expected return on plan assets | $(14) | $(13) | | Amortization of net actuarial loss| $522 | $215 | | Net periodic expense | $1,854 | $1,512 | - Estimated contributions to pension plans were reduced due to the American Rescue Plan Act, with **$8,241 thousand** expected to be contributed in the remainder of 2021[83](index=83&type=chunk) [ (15) Related Party Transactions](index=25&type=section&id=(15)%20Related%20Party%20Transactions) No material related party transactions occurred in Q1 2021 or Q1 2020 - No material related party transactions occurred in Q1 2021 or Q1 2020[85](index=85&type=chunk) [ (16) Commitments and Contingencies](index=25&type=section&id=(16)%20Commitments%20and%20Contingencies) The company has various commitments and faces contingencies, including environmental regulations and black lung collateral - The company has coal transportation agreements with minimum quantities to be shipped, totaling **$47,469 thousand** in estimated obligations for 2022[89](index=89&type=chunk)[214](index=214&type=chunk) - As of March 31, 2021, the company is required to purchase and sell **2,226 thousand tons** of coal in the remainder of 2021 and **2,375 thousand tons** in 2022 under Cumberland Back-to-Back Coal Supply Agreements, totaling **$86,933 thousand** and **$92,390 thousand**, respectively[91](index=91&type=chunk) - The company had **$130,897 thousand** in letters of credit outstanding under the ABL Facility and **$253,479 thousand** in outstanding surety bonds as of March 31, 2021[94](index=94&type=chunk)[95](index=95&type=chunk) Restricted Cash (in thousands) | Restricted Cash (in thousands) | March 31, 2021 | December 31, 2020 | | :----------------------------- | :------------- | :---------------- | | Workers' compensation and black lung obligations | $60,183 | $69,725 | | Reclamation-related obligations| $3,661 | $8,445 | | Financial payments and other performance obligations | $21,796 | $17,863 | | Contingent revenue obligation escrow | $11,427 | $9,311 | | Total restricted cash | $97,067 | $105,344 | - The U.S. Department of Labor's new reauthorization process for self-insured black lung obligations proposes a collateral requirement of **$65,700 thousand**, a significant increase from previous levels, which could reduce liquidity[101](index=101&type=chunk)[102](index=102&type=chunk)[199](index=199&type=chunk) [ (17) Segment Information](index=28&type=section&id=(17)%20Segment%20Information) The company reports one segment, Met, focusing on metallurgical coal, with export revenues at 63% of total - The company re-evaluated its segment reporting and now has one reportable segment: Met, which includes five active mines and two preparation plants in Virginia, and fourteen active mines and five preparation plants in West Virginia[104](index=104&type=chunk) - All Other includes general corporate overhead, former CAPP - Thermal operations (one active mine, one preparation plant in West Virginia), and expenses from idled/closed mines[105](index=105&type=chunk) Segment Operating Results (in thousands) | Segment Operating Results (in thousands) | Met (Q1 2021) | All Other (Q1 2021) | Consolidated (Q1 2021) | | :--------------------------------------- | :------------ | :------------------ | :--------------------- | | Total revenues | $359,878 | $26,375 | $386,253 | | Depreciation, depletion, and amortization| $26,536 | $1,902 | $28,438 | | Amortization of acquired intangibles, net| $4,051 | $(182) | $3,869 | | Adjusted EBITDA | $32,582 | $(3,698) | $28,884 | | Capital expenditures | $20,323 | $72 | $20,395 | - Export coal revenues were **$243,783 thousand** in Q1 2021 and **$251,454 thousand** in Q1 2020, representing **63%** of total coal revenues in both periods, with India and Brazil being key markets[111](index=111&type=chunk) [Glossary](index=31&type=section&id=Glossary) This section defines key industry-specific and financial terms used throughout the report for clarity - Definitions are provided for terms such as 'Alpha' (Alpha Metallurgical Resources, Inc.), 'Ash', 'British Thermal Unit (BTU)', 'Central Appalachia (CAPP)', 'Coal seam', 'Coke', 'Cumberland Back-to-Back Coal Supply Agreement', 'ESG', 'Merger', 'Metallurgical coal', 'Northern Appalachia (NAPP)', 'Operating Margin', 'Preparation plant', 'Probable reserves', 'Productivity', 'Proven reserves', 'Reclamation', 'Reserve', 'Roof', 'Sulfur', 'Surface mine', 'Thermal coal', 'Tons', 'UMWA', and 'Underground mine'[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition and results for Q1 2021, covering market, operations, and liquidity [Market Overview](index=34&type=section&id=Market%20Overview) The metallurgical coal market saw volatility, with global steel production increasing and U.S. steel prices rising - Atlantic High-Vol A metallurgical coal index reached **$154 per metric ton** in February 2021 and **$162 per metric ton** currently, while the Australian premium hard coking coal index retreated to approximately $107[132](index=132&type=chunk) - Global crude steel production increased **15.2%** in March 2021 year-over-year, with China growing **19.1%** and Europe **17.5%**. World steel demand is forecast to grow **5.8%** in 2021[134](index=134&type=chunk) - U.S. steel prices are increasing, with capacity utilization approaching **80%**, a bullish sign for the industry[135](index=135&type=chunk) - Ongoing trade tensions between Australia and China have led Australian coal producers to sell at lower prices and divert cargoes, creating opportunities for Alpha to sell coking coal into China at higher netbacks[135](index=135&type=chunk) - The domestic utility market for CAPP thermal coal remains challenged, but rising API 2 index pricing could present opportunities for 2022 sales in Asian markets[138](index=138&type=chunk) [Business Overview](index=35&type=section&id=Business%20Overview) Alpha focuses on metallurgical coal production in Virginia and West Virginia, with a strategic shift from thermal coal - Alpha operates **twenty active mines** and **eight coal preparation and load-out facilities**, employing approximately **3,280 people**[139](index=139&type=chunk) - Sales of met coal were **3.4 million tons** in Q1 2021 (**82%** of coal sales volume), up from 3.2 million tons in Q1 2020 (81%). Thermal coal sales were **0.7 million tons** in both periods[140](index=140&type=chunk) - Approximately **63%** of total coal revenues in both Q1 2021 and Q1 2020 were from international customers[141](index=141&type=chunk) - The disposition of former NAPP operations in Q4 2020 accelerated the strategic exit from thermal coal production, shifting focus to met coal[143](index=143&type=chunk) Priced Coal Volumes and Average Realized Price per Ton | Segment | Tons Priced (million) | % Priced | Average Realized Price per Ton | | :---------- | :-------------------- | :------- | :----------------------------- | | Met | 14.0 | 67% | $81.35 | | All Other | 1.5 | 100% | $57.67 | [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Total revenues decreased by 4.1% in Q1 2021, with improved net loss but decreased Adjusted EBITDA due to pricing Total Revenues and Tons Sold (in thousands) | Metric (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | Change ($) | Change (%) | | :-------------------- | :---------------------------- | :---------------------------- | :--------- | :--------- | | Total Revenues | $386,253 | $402,804 | $(16,551) | (4.1)% | | Coal Revenues | $385,452 | $401,460 | $(16,008) | (4.0)% | | Other Revenues | $801 | $1,344 | $(543) | (40.4)% | | Tons Sold (thousands) | 4,066 | 3,949 | 117 | 3.0% | - Coal revenues decreased primarily due to lower coal sales realization in Met operations, impacted by weak Australian hard coking coal indices[149](index=149&type=chunk) Total Costs and Expenses (in thousands) | Expense (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | Change ($) | Change (%) | | :--------------------- | :---------------------------- | :---------------------------- | :--------- | :--------- | | Cost of coal sales | $347,428 | $334,220 | $13,208 | 4.0% | | Depreciation, depletion and amortization | $28,438 | $47,616 | $(19,178) | (40.3)% | | Amortization of acquired intangibles, net | $3,869 | $511 | $3,358 | 657.1% | | Asset impairment and restructuring | $(561) | $33,709 | $(34,270) | (101.7)% | | Mark-to-market adjustment for acquisition-related obligations | $3,176 | $(14,997) | $18,173 | 121.2% | | Total costs and expenses | $402,755 | $422,511 | $(19,756) | (4.7)% | - Cost of coal sales increased due to higher tons sold, inventory changes, and increased supplies and maintenance, partially offset by lower purchased coal costs and salaries[150](index=150&type=chunk) Other Expense (Income) (in thousands) | Other Expense (Income) (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | Change ($) | Change (%) | | :------------------------------------ | :---------------------------- | :---------------------------- | :--------- | :--------- | | Interest expense | $(17,990) | $(18,176) | $186 | 1.0% | | Interest income | $164 | $968 | $(804) | (83.1)% | | Miscellaneous income (loss), net | $1,766 | $(716) | $2,482 | 346.6% | | Total other expense, net | $(16,194) | $(18,667) | $2,473 | 13.2% | Adjusted EBITDA (in thousands) | Adjusted EBITDA (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | Change ($) | Change (%) | | :----------------------------- | :---------------------------- | :---------------------------- | :--------- | :--------- | | Met operations | $32,582 | $69,118 | $(36,536) | (52.9)% | | All Other | $(3,698) | $(12,621) | $8,923 | 70.7% | | Total | $28,884 | $56,497 | $(27,613) | (48.9)% | - Met operations' Adjusted EBITDA decreased by **52.9%** due to a **$10.80 (11.6%)** decrease in non-GAAP coal sales realization per ton[182](index=182&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is $108.5 million, funded by coal sales and debt, facing risks from market conditions and black lung collateral - Primary liquidity sources are coal sales, debt financing, and miscellaneous revenues[188](index=188&type=chunk) - As of March 31, 2021, total liquidity was **$108.5 million**, comprising **$92.2 million** in cash and cash equivalents and **$16.3 million** in unused ABL Facility commitments[190](index=190&type=chunk) - The company had **$85.6 million** in long-term restricted cash, **$35.3 million** in long-term restricted investments, and **$14.9 million** in long-term deposits as cash collateral for various obligations[193](index=193&type=chunk) - Moody's Investors Service rated the company's Corporate Family Rating at **Caa1** with a stable outlook, indicating potential liquidity risks from market weakness and depressed coal prices[194](index=194&type=chunk) - The proposed **$65.7 million** collateral requirement for black lung obligations by the DCMWC, if upheld, would significantly reduce the company's liquidity[199](index=199&type=chunk)[200](index=200&type=chunk) Cash Flows (in thousands) | Cash Flows (in thousands) | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :------------------------ | :---------------------------- | :---------------------------- | | Net cash used in operating activities | $(19,115) | $(60) | | Net cash used in investing activities | $(29,749) | $(58,771) | | Net cash (used in) provided by financing activities | $(6,404) | $55,136 | | Net decrease in cash and cash equivalents and restricted cash | $(55,268) | $(3,695) | [Contractual Obligations](index=49&type=section&id=Contractual%20Obligations) Transportation commitments increased in Q1 2021 due to new agreements, totaling $47.5 million due in 2022 - Transportation commitments increased during Q1 2021 due to new agreements[213](index=213&type=chunk) Contractual Obligations (in thousands) | Obligation (in thousands) | Remainder of 2021 | 2022 | 2023 | 2024 | 2025 | After 2025 | Total | | :------------------------ | :---------------- | :-------- | :--- | :--- | :--- | :--------- | :-------- | | Transportation commitments| $— | $47,469 | $— | $— | $— | $— | $47,469 | [Critical Accounting Policies and Estimates](index=50&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Financial statements rely on management estimates and assumptions, with critical accounting policies unchanged from 2020 - Management makes estimates and assumptions for financial statements, which are subject to uncertainty from foreign currency, energy markets, and steel demand fluctuations[215](index=215&type=chunk) - The company's critical accounting policies remain unchanged at March 31, 2021, as discussed in its Annual Report on Form 10-K for 2020[216](index=216&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Quantitative and qualitative disclosures regarding market risk are not required for this quarterly report - Quantitative and qualitative disclosures about market risk are not required for this report[216](index=216&type=chunk) [Item 4. Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective as of March 31, 2021, with no material changes in internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2021[217](index=217&type=chunk) - No material changes in internal control over financial reporting occurred during the period[218](index=218&type=chunk) - Control systems provide only reasonable assurance and may not prevent all errors or fraud due to inherent limitations[219](index=219&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from Note 16(d) of the financial statements - Legal proceedings information is detailed in Note 16, part (d), of the financial statements[221](index=221&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) Readers should consider risk factors from the 2020 Annual Report and cautionary statements in this report - Risk factors from the Annual Report on Form 10-K for 2020 and forward-looking statements in this report should be considered[222](index=222&type=chunk) - Additional unknown or immaterial risks may also materially adversely affect the business[222](index=222&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 46,073 common shares in February 2021 for employee tax withholdings Share Repurchases | Period | Total Number of Shares Purchased | Average Price per Share | | :--------------------------- | :------------------------------- | :---------------------- | | January 1 - January 31, 2021 | — | $— | | February 1 - February 28, 2021 | 46,073 | $14.75 | | March 1 - March 31, 2021 | — | $— | | Total | 46,073 | | - Shares were repurchased to satisfy employees' statutory tax withholdings upon the vesting of stock grants[224](index=224&type=chunk) - The stock repurchase plan, adopted in 2019, was suspended on October 1, 2019[224](index=224&type=chunk) [Item 4. Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are provided in Exhibit 95 to this Quarterly Report on Form 10-Q - Mine safety disclosures are included in Exhibit 95 of this Quarterly Report on Form 10-Q[225](index=225&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including certifications and financial data - The exhibit index includes the Second Amended and Restated Certificate of Incorporation, Third Amended and Restated Bylaws, Certifications Pursuant to Rule 13a-14(a) and 18 U.S.C. §1350, Mine Safety Disclosure Exhibit, and financial information in Inline XBRL format[230](index=230&type=chunk)