Arch Resources, Inc. (NYSE:ARCH) Q1 2021 Earnings Conference Call April 22, 2021 10:00 AM ET Company Participants Deck Slone - Senior Vice President of Strategy Paul Lang - Chief Executive Officer and President John Drexler - Senior Vice President and Chief Operating Officer Matt Giljum - Senior Vice President and Chief Financial Officer Conference Call Participants Matt Key - B. Riley Securities Nathan Martin - The Benchmark Company Lucas Pipes - B. Riley Securities Operator Good day, everyone. Welcome to ...

Financial Data and Key Metrics Changes - The company achieved cash costs of $61.13 per ton for the year, slightly above the midpoint of guidance despite a nearly 1 million ton reduction in coking coal shipments due to the pandemic [18] - Fourth quarter operating cash flows were $5 million, weaker than the third quarter, reflecting the semi-annual payment of production taxes [31] - Total liquidity at year-end was $315 million, with unrestricted cash of $284 million [32] Business Line Data and Key Metrics Changes - The company maintained a first quartile cost structure in its core coking coal segment despite significant market-driven volume reductions [7] - The Leer South growth project is expected to significantly improve cash-generating capabilities, with startup anticipated in about six months [18][20] - The company plans to produce around 2 million tons from Coal Creek in 2021, the final full year of operation before reclamation begins in 2022 [11] Market Data and Key Metrics Changes - Global steel production was up nearly 6% in December 2020 compared to December 2019, indicating a strong recovery in the steel market [13] - The price of hot rolled coil is trading at levels 50% to 150% above last year's pandemic-driven lows [14] - The US East Coast High-Vol A price assessment is up nearly 50% compared to last summer's lows, reflecting strong demand and reduced supply [15] Company Strategy and Development Direction - The company is strategically pivoting to focus on metallurgical coal, aiming to become a premier producer of metallurgical coal in the US [10] - Plans include reducing the operating footprint of thermal assets and optimizing cash generation for future reclamation [24] - The company is committed to environmental, social, and governance (ESG) leadership, achieving a loss time incident rate of 0.93, nearly three times better than the industry average [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the ongoing impacts of COVID-19, with expectations for modest sequential increases in coking coal shipments in Q1 2021 [27] - The company is optimistic about the post-pandemic recovery, anticipating increased demand for metallurgical coal as economies stimulate growth [69] - Management highlighted the importance of operational excellence and continuous improvement across the enterprise [27] Other Important Information - The company reduced corporate staffing levels by 25% and cut overhead costs by $10 million per year through a voluntary separation program [8] - The divestiture of the Viper thermal mine reduced long-term undiscounted mine closure obligations by about $21 million [10] - The company plans to target a reduction of $40 million in Asset Retirement Obligation (ARO) at Coal Creek over the next 18 months [25] Q&A Session Summary Question: Can you provide a breakdown of growth CapEx with Leer versus maintenance sustaining capital in 2021? - Management indicated that they are trending towards the upper end of the $360 million to $390 million range for Leer South, with maintenance CapEx expected to run around $100 million post-startup [38][39] Question: What should we expect for thermal guidance and costs? - The thermal guidance is primarily influenced by PRB operations, with costs expected to be between $11.50 and $12 per ton [44] Question: What is the coking coal volume outlook for 2021? - Management expects flat shipment levels for Q1, with an increase anticipated in the second half of the year as Leer South comes online [48]

Part I Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported a significant net loss in Q3 2020, driven by declining revenues and a substantial asset impairment charge Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $382,261 | $619,467 | $1,107,014 | $1,744,872 | | **Income (loss) from operations** | $(187,680) | $106,481 | $(256,857) | $249,830 | | **Net income (loss)** | $(191,467) | $106,769 | $(266,090) | $242,350 | | **Diluted earnings (loss) per share** | $(12.64) | $6.34 | $(17.57) | $13.66 | Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total current assets** | $562,982 | $706,747 | | **Total assets** | $1,653,337 | $1,867,756 | | **Total liabilities** | $1,287,691 | $1,227,220 | | **Total stockholders' equity** | $365,646 | $640,536 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $55,914 | $334,053 | | **Cash used in investing activities** | $(111,945) | $(154,002) | | **Cash provided by (used in) financing activities** | $73,585 | $(269,560) | - During Q3 2020, the company recorded a significant asset impairment charge of **$163.1 million** related to its thermal coal segments and an equity investment, driven by reduced demand, low prices, and the termination of the proposed joint venture with Peabody[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes poor Q3 2020 results to weak coal markets and COVID-19, leading to strategic shifts including thermal asset divestiture and dividend suspension - The proposed joint venture with Peabody Energy was blocked by the U.S. District Court on September 29, 2020, leading Arch to terminate the joint venture and pursue strategic alternatives for its thermal assets, including potential divestiture, to focus on metallurgical products[136](index=136&type=chunk) - The COVID-19 pandemic significantly impacted domestic and global economies, leading to demand destruction for coal, with the company receiving force majeure notices and deferring over **three million tons** of Powder River Basin contractual obligations[131](index=131&type=chunk)[133](index=133&type=chunk) - As of September 30, 2020, total liquidity was approximately **$265 million**, and the company suspended its quarterly dividend and share repurchase program in April 2020 to preserve capital and fund the Leer South development[197](index=197&type=chunk)[196](index=196&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) Q3 2020 revenues declined **38.3%** to **$382.3 million** due to lower sales volumes and pricing, resulting in a significant operating loss and a nine-month net loss Coal Sales Performance (Q3 2020 vs Q3 2019) | Metric | Q3 2020 | Q3 2019 | Change | | :--- | :--- | :--- | :--- | | **Coal sales (in thousands)** | $382,261 | $619,467 | $(237,206) | | **Tons sold (in thousands)** | 17,128 | 26,257 | (9,129) | - The decrease in Q3 2020 coal sales was driven by an **$86.4 million** decline from Metallurgical operations, an **$89.1 million** decline from the Powder River Basin, and a **$61.6 million** decline from Other Thermal operations[138](index=138&type=chunk) - A major contributor to the operating loss in Q3 2020 was a **$163.1 million** asset impairment charge related to the Coal Creek, West Elk, and Viper thermal mines, and the Knight Hawk equity investment[139](index=139&type=chunk)[145](index=145&type=chunk) Coal Sales Performance (Nine Months 2020 vs 2019) | Metric | Nine Months 2020 | Nine Months 2019 | Change | | :--- | :--- | :--- | :--- | | **Coal sales (in thousands)** | $1,107,014 | $1,744,872 | $(637,858) | | **Tons sold (in thousands)** | 47,367 | 67,958 | (20,591) | [Operational Performance](index=61&type=section&id=Operational%20Performance) All operating segments experienced significant Adjusted EBITDA declines, with Metallurgical cash margin per ton collapsing due to lower pricing and Powder River Basin volumes decreasing Segment Performance (Three Months Ended September 30) | Segment | Metric | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Powder River Basin** | Adjusted EBITDA (in thousands) | $34,486 | $50,153 | | | Cash margin per ton sold | $2.38 | $2.25 | | **Metallurgical** | Adjusted EBITDA (in thousands) | $12,407 | $70,814 | | | Cash margin per ton sold | $6.26 | $34.00 | | **Other Thermal** | Adjusted EBITDA (in thousands) | $(2,870) | $16,659 | | | Cash margin per ton sold | $(2.96) | $8.36 | - The Metallurgical segment's performance was severely impacted by declining coking coal prices and lower shipment volumes due to COVID-19's effect on the steelmaking supply chain[173](index=173&type=chunk) - The Powder River Basin segment's volume decline was driven by competitive natural gas pricing, growth in renewable energy, and reduced electricity demand from COVID-19 responses[171](index=171&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity decreased to **$265 million** by Q3 2020, leading to dividend suspension and new financing, while cash from operations plummeted due to poor results - Total liquidity as of September 30, 2020 was approximately **$265 million**, comprising **$220 million** in cash and investments and **$44.6 million** in availability under credit facilities[197](index=197&type=chunk)[198](index=198&type=chunk) - In 2020, the company entered into a **$53.6 million** equipment financing arrangement and arranged for **$53.1 million** in tax-exempt bonds to finance the Leer South development project[194](index=194&type=chunk)[195](index=195&type=chunk) - Cash from operations for the nine months ended Sep 30, 2020, was **$55.9 million**, a significant decrease from **$334.1 million** in the same period of 2019, due to deteriorating operational results[199](index=199&type=chunk)[200](index=200&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces commodity price risk, particularly in coal markets, and uses derivatives to manage diesel fuel price exposure, with specific sales commitments detailed Sales Commitments as of October 22, 2020 (Priced Tons) | Segment | 2020 Tons (millions) | 2020 Price/ton | 2021 Tons (millions) | 2021 Price/ton | | :--- | :--- | :--- | :--- | :--- | | **Metallurgical (Coking & Thermal)** | 6.1 | - | 2.0 | - | | **Powder River Basin** | 53.6 | $12.35 | 42.8 | $12.56 | | **Other Thermal** | 3.2 | $30.12 | 1.7 | $34.28 | - The company is exposed to price risk for diesel fuel and uses derivatives to manage it, having protected prices on approximately **4 million gallons** through swaps and options for the remainder of 2020[208](index=208&type=chunk) [Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal controls - Based on an evaluation as of September 30, 2020, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[210](index=210&type=chunk) Part II Other Information [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The U.S. District Court ruled in favor of the FTC on September 29, 2020, blocking the proposed joint venture with Peabody Energy, leading to its termination - On February 26, 2020, the FTC filed a complaint to block the proposed joint venture with Peabody Energy, alleging it would eliminate competition in the Southern Powder River Basin thermal coal market[215](index=215&type=chunk) - The U.S. District Court upheld the FTC's decision on September 29, 2020, after which the company and Peabody jointly terminated the joint venture[216](index=216&type=chunk) [Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) The ongoing COVID-19 pandemic significantly impacts global economies, financial markets, and coal demand and prices, potentially exacerbating existing business risks - The COVID-19 pandemic has caused a widespread health crisis and economic downturn, which has negatively impacted and will continue to adversely affect the company's business, financial condition, and results of operations[218](index=218&type=chunk)[219](index=219&type=chunk) - The pandemic may heighten other risks, including those related to coal prices, market conditions, capital access, supply chain disruptions, and customer purchasing patterns[221](index=221&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in Q3 2020, with **$223 million** remaining under its **$1.05 billion** share repurchase authorization - No shares of common stock were repurchased during the quarter ended September 30, 2020[223](index=223&type=chunk) - As of September 30, 2020, approximately **$223 million** was remaining under the company's total **$1.05 billion** share repurchase authorization[224](index=224&type=chunk)[223](index=223&type=chunk) [Mine Safety Disclosures](index=81&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety violation information, as required by the Dodd-Frank Act, is provided in Exhibit 95 to this Quarterly Report on Form 10-Q - The statement concerning mine safety violations required by Section 1503(a) of the Dodd-Frank Act is included as Exhibit 95 to the Form 10-Q[225](index=225&type=chunk) [Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including credit agreements, financing amendments, and CEO/CFO certifications - Lists various legal and financial documents filed as exhibits, including amendments to credit and receivables purchase agreements[227](index=227&type=chunk)[228](index=228&type=chunk) - Includes CEO and CFO certifications under Sarbanes-Oxley Sections 302 (Rule 13a-14(a)) and 906 (Section 1350)[233](index=233&type=chunk)

Arch Resources, Inc. (NYSE:ARCH) Q3 2020 Results Earnings Conference Call October 22, 2020 10:00 AM ET Company Participants Deck Slone - Senior Vice President of Strategy Paul Lang - President, Chief Executive Officer John Drexler - Senior Vice President, Chief Operating Officer Matt Giljum - Senior Vice President, Chief Financial Officer Conference Call Participants Lucas Pipes - B. Riley Financial Mark Levin - The Benchmark Company Wayne Cooperman - Cobalt Capital Operator Good day and welcome to the Arch ...

Arch Resources, Inc. (NYSE:ARCH) Q2 2020 Results Earnings Conference Call July 28, 2020 10:00 AM ET Company Participants Deck Slone - Senior Vice President, Strategy Paul Lang - President and CEO John Drexler - Chief Operating Officer Matt Giljum - Chief Financial Officer Conference Call Participants Scott Schier - Clarksons David Gagliano - BMO Capital Markets Mark Levin - The Benchmark Company Michael Dudas - Vertical Research Lucas Pipes - B. Riley FBR Operator Good day. And welcome to the Arch Resources ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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, 2020 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: 1-13105 Arch Resources, Inc. (Exact name of registrant as specified in its charter) Delaware 43-0921172 (State or ...

Financial Data and Key Metrics Changes - In Q1 2020, Arch Coal reported a cash outflow from operating activities of $12 million, primarily due to negative changes in working capital of nearly $35 million [31] - Capital spending for the quarter totaled $87 million, with $62 million allocated to the Leer South project, expected to be the highest spending of the year [32] - The company ended the quarter with $323 million in total liquidity, including $234 million in cash, which is below historical targets but deemed sufficient for operations [35] Business Line Data and Key Metrics Changes - The core metallurgical segment shipped 1.5 million tons of metallurgical coal, maintaining performance in line with expectations despite seasonal shipping channel closures [23] - The average cash cost for the metallurgical segment was $58.42 per ton, positioning Arch Coal well on the U.S. cost curve, approximately $20 to $25 per ton below the median for U.S. coking coal mines [24] - Both thermal segments reported negative cash margins due to low natural gas prices and weak power markets, with expectations of continued margin compression in Q2 [28] Market Data and Key Metrics Changes - The steel markets have weakened considerably, with major producers announcing output curtailments, impacting global metallurgical markets [19] - The company has commitments totaling over 58 million tons in the Powder River Basin and 3.8 million tons in other thermal segments, aiming to restore profitability in these areas [29] Company Strategy and Development Direction - Arch Coal is focused on the rapid development of the Leer South mine, with nearly 45% of the projected capital already spent and a longwall startup expected in Q3 2021 [15][25] - The company is adjusting its corporate support structure to align with its strategic direction, including a 30% reduction in corporate staff through a voluntary separation program [16] - Arch Coal is pursuing a joint venture with Peabody to combine thermal operations in the Powder River Basin, which is expected to create a stable and cost-competitive supply platform [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving results in the second half of 2020, despite the challenges posed by the ongoing economic shutdown [14] - The company is taking steps to maintain liquidity throughout the crisis, including trimming $20 million from capital spending plans and suspending quarterly dividends [17][34] - Management emphasized the importance of a strong balance sheet and the ability to adapt to market conditions, with plans to respond to improving market conditions as the economy stabilizes [20][36] Other Important Information - The Federal Trade Commission has challenged the proposed joint venture with Peabody, with court proceedings expected to commence in mid-June [17] - The company has implemented safety measures in response to COVID-19, including staggering shifts and limiting meetings, which have minimally impacted operational performance [22][57] Q&A Session Summary Question: Transition of CEO and future leadership - David Gagliano congratulated John Eaves on his transition and inquired about capital allocation and liquidity strategies in light of market conditions [39][40] Response: Capital allocation strategy - Paul Lang highlighted the unique opportunity presented by the Leer South project, emphasizing its potential to lower costs and produce high-quality coal [41] - John Drexler noted the expected cash flow generation from Leer South, reinforcing the decision to proceed with the project [43][44] Question: Impact of COVID-19 on operations - Michael Dudas asked about the operational impact of COVID-19 and safety measures implemented [55] Response: Operational performance during COVID-19 - John Drexler confirmed that operations have continued to perform well despite safety measures, with minimal impacts on productivity [56] Question: Customer inquiries and market conditions - Michael Dudas inquired about customer inquiries and potential benefits for Arch Coal amid market challenges [59] Response: Customer engagement and market positioning - John Drexler indicated that Arch Coal has received inquiries from customers seeking reliable supply amid market disruptions, positioning the company favorably [60][63]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 March 31, 2020 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: 1-13105 Arch Coal Inc. (Exact name of registrant as specified in its charter) Delaware 43-0921172 (State or other ...