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 ...

[PART I](index=5&type=section&id=PART%20I) This section provides an overview of Arch Coal's business, operations, sales, regulatory environment, and key risk factors [Item 1. Business](index=5&type=section&id=ITEM%201.%20Business) Arch Coal, Inc. is a major global coal producer with operations segmented into Powder River Basin thermal coal, Metallurgical coal, and Other Thermal coal [Introduction and History](index=5&type=section&id=Introduction%20and%20History) Arch Coal is a leading global coal producer, selling approximately 90 million tons in 2019 and emerging from Chapter 11 bankruptcy in 2016 - In 2019, the company sold approximately **90 million tons of coal** from 8 active mines located in major U.S. coal-producing regions[14](index=14&type=chunk) - The company emerged from Chapter 11 bankruptcy in October 2016 after filing for reorganization in January 2016[20](index=20&type=chunk)[21](index=21&type=chunk) - In June 2019, Arch agreed to form a joint venture with Peabody Energy, combining their Powder River Basin and Colorado mining operations, with Arch holding a **33.5% economic interest**[23](index=23&type=chunk) [The Coal Industry and Mining Operations](index=7&type=section&id=The%20Coal%20Industry%20and%20Mining%20Operations) The company operates in a competitive global coal market, producing both thermal and metallurgical coal through surface and underground mining methods - In 2019, thermal coal represented **92% of sales volume**, while metallurgical coal contributed **43% of sales revenue**, highlighting the significant price premium for metallurgical products[34](index=34&type=chunk) - The company's operations are divided into three reportable segments: Powder River Basin (PRB), Metallurgical (MET), and Other Thermal[55](index=55&type=chunk) Active Mining Complexes Summary (as of Dec 31, 2019) | Mining Complex | Segment | Tons Sold 2019 (millions) | Assigned Reserves (million tons) | Property, Plant & Equipment ($ millions) | | :--- | :--- | :--- | :--- | :--- | | Black Thunder | Powder River Basin | 72.0 | 747.7 | 299.4 | | Coal Creek | Powder River Basin | 2.6 | 92.2 | 44.5 | | Mountain Laurel | Metallurgical | 1.4 | 21.4 | 32.6 | | Beckley | Metallurgical | 1.0 | 25.5 | 63.5 | | Leer South/Sentinel | Metallurgical | 1.1 | 43.2 | 197.5 | | Leer | Metallurgical | 4.1 | 48.3 | 252.9 | | West Elk | Other Thermal | 4.1 | 50.5 | 49.9 | | Viper | Other Thermal | 1.5 | 40.4 | 35.3 | | **Totals** | | **87.8** | **1,069.2** | **975.6** | [Sales, Marketing and Customers](index=16&type=section&id=Sales%2C%20Marketing%20and%20Customers) Arch Coal markets its products to a diverse customer base, with significant international exports and a substantial portion of sales under long-term contracts - The three largest customers accounted for approximately **21% of total coal revenues** in 2019, and the ten largest customers accounted for **47%**[79](index=79&type=chunk) Seaborne Revenues by Destination (2019) | Region | Revenue (in thousands) | | :--- | :--- | | Europe | $ 537,117 | | Asia | $ 322,029 | | Central and South America | $ 82,476 | | Africa | $ 18,698 | | **Total** | **$ 960,320** | - In 2019, approximately **56% of coal was sold under long-term supply arrangements**, with remaining tons under these agreements totaling about **129 million tons** and an average remaining term of **2.7 years** as of December 31, 2019[83](index=83&type=chunk) [Environmental and Other Regulatory Matters](index=19&type=section&id=Environmental%20and%20Other%20Regulatory%20Matters) The company's operations are subject to extensive federal, state, and local environmental and safety regulations, significantly impacting costs and demand - The company is required to obtain numerous governmental permits for mining, which can be costly, time-consuming, and subject to legal challenges[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - As of December 31, 2019, the company had posted approximately **$528.9 million in surety bonds** for reclamation purposes and **$156.5 million** for other obligations like workers' compensation[114](index=114&type=chunk) - Air quality regulations, particularly those targeting emissions of sulfur dioxide, nitrogen oxides, mercury, and greenhouse gases from coal-fueled power plants, indirectly but significantly affect the demand for coal[118](index=118&type=chunk) - The EPA finalized the Affordable Clean Energy (ACE) rule in June 2019 to replace the Clean Power Plan, establishing new guidelines for states to address greenhouse gas emissions from existing coal-fired power plants, though its ultimate effect is subject to litigation[137](index=137&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=ITEM%201A.%20Risk%20Factors) The company faces significant risks from volatile coal prices, competition, extensive environmental regulations, and the proposed joint venture with Peabody - Profitability is highly dependent on coal prices, which are volatile and influenced by factors beyond the company's control, including demand for electricity and steel, competition from other fuels (especially natural gas), and environmental regulations[163](index=163&type=chunk)[166](index=166&type=chunk) - Competition from low-priced natural gas has decreased demand for thermal coal and contributed to the closure of coal-fired power plants, a trend that could continue to adversely affect the business[173](index=173&type=chunk) - Extensive and evolving environmental regulations, particularly those related to air emissions and climate change (e.g., Clean Power Plan/ACE rule, Paris Agreement), could significantly reduce future demand for coal and increase customer costs[221](index=221&type=chunk)[222](index=222&type=chunk) - The proposed joint venture with Peabody faces risks, including failure to obtain regulatory approval, inability to realize expected synergies, and diversion of management attention[254](index=254&type=chunk)[255](index=255&type=chunk) [Item 2. Properties](index=46&type=section&id=ITEM%202.%20Properties) As of December 31, 2019, Arch Coal controlled approximately 1.8 billion tons of proven and probable recoverable coal reserves, primarily through long-term federal leases - The company estimated it owned or controlled approximately **1.8 billion tons of proven and probable recoverable reserves** at year-end 2019[269](index=269&type=chunk) Assigned and Unassigned Recoverable Coal Reserves (Tons in millions, as of Dec 31, 2019) | Reserve Type | Wyoming | Central App. | Northern App. | Illinois | Colorado | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Assigned** | 840 | 47 | 92 | 40 | 51 | **1,070** | | **Unassigned** | 260 | 49 | 139 | 284 | - | **732** | | **Total** | **1,100** | **96** | **231** | **324** | **51** | **1,802** | - A significant portion of western U.S. coal is controlled through the federal Lease by Application (LBA) process, which can take five to ten years or more to complete[278](index=278&type=chunk) [Item 3. Legal Proceedings](index=49&type=section&id=ITEM%203.%20Legal%20Proceedings) The company is involved in various legal claims arising in the ordinary course of business, which management does not expect to have a material adverse financial effect - The company states that ongoing legal proceedings arising from the ordinary course of business are not expected to have a material adverse effect on its financial condition[288](index=288&type=chunk) [Item 4. Mine Safety Disclosures](index=49&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters is included in Exhibit 95 of this Annual Report on Form 10-K - Mine safety disclosures required under the Dodd-Frank Act are provided in Exhibit 95 of the Form 10-K[289](index=289&type=chunk) [PART II](index=50&type=section&id=PART%20II) This section covers Arch Coal's common equity market, selected financial data, management's discussion and analysis, and market risk disclosures [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=50&type=section&id=ITEM%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Arch Coal's common stock trades on the NYSE, with the company paying dividends and actively repurchasing shares under an authorized program 2019 Quarterly Common Stock Prices and Dividends | Quarter | High Price | Low Price | Dividends per Share | | :--- | :--- | :--- | :--- | | First | $93.64 | $80.69 | $0.45 | | Second | $99.96 | $86.71 | $0.45 | | Third | $93.81 | $69.31 | $0.45 | | Fourth | $86.00 | $70.41 | $0.45 | Share Repurchases (Q4 2019) | Period | Total Shares Purchased | Average Price Paid | Remaining Authorization ($ thousands) | | :--- | :--- | :--- | :--- | | Oct 2019 | 127,002 | $78.73 | $223,118 | | Nov 2019 | 6,377 | $78.39 | $222,618 | | Dec 2019 | 0 | - | $222,618 | | **Total Q4** | **133,379** | **$78.72** | **$222,618** | - Since the inception of the stock repurchase program, the company has repurchased **10,088,378 shares** for approximately **$827 million**, with **$223 million** remaining under the authorization as of year-end 2019[300](index=300&type=chunk) [Item 6. Selected Financial Data](index=53&type=section&id=ITEM%206.%20Selected%20Financial%20Data) This section provides a five-year summary of key financial and operating data, including revenues, net income, and tons sold Selected Financial Data (Year Ended Dec 31) | Metric (in thousands, except per share) | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Revenues** | $2,294,352 | $2,451,787 | $2,324,623 | | **Income from operations** | $242,870 | $279,138 | $234,336 | | **Net income** | $233,799 | $312,577 | $238,450 | | **Diluted EPS** | $13.52 | $15.15 | $9.84 | | **Total assets** | $1,867,756 | $1,887,060 | $1,979,632 | | **Long-term debt** | $290,066 | $300,186 | $310,134 | | **Cash from operating activities** | $419,714 | $417,963 | $396,474 | | **Tons sold** | 90,305 | 96,792 | 98,218 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=ITEM%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 2019 financial results, highlighting revenue decline due to market softness, strong liquidity, and increased capital expenditures for the Leer South mine [Results of Operations (2019 vs. 2018)](index=58&type=section&id=Results%20of%20Operations%20%282019%20vs.%202018%29) In 2019, revenues decreased by 6.4% to $2.29 billion due to lower volumes and weaker metallurgical pricing, leading to a decline in net income Consolidated Sales Performance (2019 vs. 2018) | Metric | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | Coal Sales (in thousands) | $2,294,352 | $2,451,787 | $(157,435) | | Tons Sold (in thousands) | 90,305 | 96,792 | (6,487) | - Cost of sales decreased by **$52.2 million**, or **2.7%**, in 2019 compared to 2018, primarily due to lower operating taxes, reduced purchased coal costs, and a build in coal inventories[311](index=311&type=chunk) - The company recorded **$13.8 million** in costs related to the proposed joint venture with Peabody and a **$9.0 million loss** on the sale of its Coal-Mac operation[311](index=311&type=chunk)[317](index=317&type=chunk)[318](index=318&type=chunk) [Operational Performance by Segment (2019 vs. 2018)](index=61&type=section&id=Operational%20Performance%20by%20Segment%20%282019%20vs.%202018%29) In 2019, all segments experienced a decline in Adjusted EBITDA, primarily driven by lower sales prices in Metallurgical and reduced volumes in Powder River Basin and Other Thermal Segment Performance Comparison (2019 vs. 2018) | Segment | Metric | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Powder River Basin** | Tons Sold (k) | 74,531 | 79,542 | | | Cash Margin/ton | $1.45 | $1.58 | | | Adjusted EBITDA (k) | $110,528 | $126,525 | | **Metallurgical** | Tons Sold (k) | 7,769 | 7,747 | | | Cash Margin/ton | $39.26 | $44.87 | | | Adjusted EBITDA (k) | $305,363 | $349,524 | | **Other Thermal** | Tons Sold (k) | 7,717 | 9,089 | | | Cash Margin/ton | $5.22 | $7.11 | | | Adjusted EBITDA (k) | $41,495 | $68,620 | [Liquidity and Capital Resources](index=72&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity of $412 million at year-end 2019, with significant cash usage for capital expenditures and shareholder returns - Total liquidity at December 31, 2019 was approximately **$412 million**, including **$289 million** in cash, equivalents, and short-term investments[379](index=379&type=chunk) Summary of Cash Flows (Year Ended Dec 31, in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Operating Activities | $419,714 | $417,963 | | Investing Activities | $(239,111) | $(103,952) | | Financing Activities | $(292,520) | $(322,676) | - Capital expenditures increased significantly to **$266.4 million** in 2019 from **$95.3 million** in 2018, primarily due to development of the Leer South mine[384](index=384&type=chunk)[302](index=302&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=ITEM%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from commodity prices and interest rates, with hedging strategies in place for a portion of its sales and debt 2020 Sales Commitments (as of Dec 31, 2019) | Segment | Commitment Type | Tons (millions) | Avg. Price/ton | | :--- | :--- | :--- | :--- | | **Metallurgical** | N. America Priced Coking | 1.8 | $107.11 | | | Seaborne Priced Coking | 0.2 | $83.44 | | | Seaborne Unpriced Coking | 2.2 | - | | **Powder River Basin** | Priced | 58.1 | $12.22 | | | Unpriced | 1.8 | - | | **Other Thermal** | Priced | 3.1 | $33.65 | | | Unpriced | 0.3 | - | - The company is exposed to interest rate risk on approximately **$291.8 million of variable-rate debt**, though this risk is largely mitigated by interest rate swaps[429](index=429&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=76&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's consolidated financial statements, accompanying notes, and the independent auditor's report for 2017-2019 - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting[451](index=451&type=chunk)[452](index=452&type=chunk) - A critical audit matter identified was the valuation of the Asset Retirement Obligation (ARO) liability, which totaled **$252.8 million** and involves significant management judgment and subjective assumptions regarding reclamation costs, timing, and discount rates[456](index=456&type=chunk)[457](index=457&type=chunk) [PART III](index=77&type=section&id=PART%20III) This section incorporates information regarding the company's directors, executive compensation, security ownership, and principal accountant fees by reference [Items 10-14. Directors, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=77&type=section&id=ITEMS%2010%2C%2011%2C%2012%2C%2013%20and%2014) Information for these items is incorporated by reference from the company's definitive proxy statement for its 2020 Annual Meeting of Stockholders - Information regarding directors, executive compensation, security ownership, and related matters is not included directly in the 10-K but is incorporated by reference from the forthcoming 2020 proxy statement[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk) [PART IV](index=78&type=section&id=PART%20IV) This section details the exhibits and financial statement schedules filed as part of the Form 10-K report [Item 15. Exhibits and Financial Statement Schedules](index=78&type=section&id=ITEM%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including material contracts and credit facilities - This section provides an index of all financial statements, schedules, and exhibits filed with the 10-K, including material contracts and credit facilities[439](index=439&type=chunk)[440](index=440&type=chunk)

Arch Coal Inc. (NYSE:ARCH) Q4 2019 Results Conference Call February 6, 2020 11:00 AM ET Company Participants Deck Slone - Senior Vice President of Strategy John Eaves - Chief Executive Officer Paul Lang - President and Chief Operating Officer John Drexler - Senior Vice President and Chief Financial Officer. Conference Call Participants Lucas Pipes - B. Riley FBR Daniel Scott - Clarksons Platou Securities Mark Levin - Benchmark Company Dave Gagliano - BMO Capital Markets Chris LaFemina - Jefferies Michael Du ...

Arch Coal, Inc. (NYSE:ARCH) Q3 2019 Earnings Conference Call October 22, 2019 10:00 AM ET Company Participants Deck Slone – Senior Vice President-Strategy John Eaves – Chief Executive Officer Paul Lang – President and Chief Operating Officer John Drexler – Senior Vice President and Chief Financial Officer Conference Call Participants Mark Levin – Seaport Global Lucas Pipes – B. Riley FBR Dave Gagliano – BMO Capital Markets Michael Dudas – Vertical Research Operator Good day, and welcome to the Arch Coal Thi ...