Arch Resources, Inc. (NYSE:ARCH) Q4 2022 Earnings Conference Call February 16, 2023 10:00 AM ET Company Participants Deck Slone - Vice President, Strategy Paul Lang - Chief Executive Officer John Drexler - Chief Operating Officer Matt Giljum - Chief Financial Officer Conference Call Participants Lucas Pipes - B. Riley Securities David Gagliano - BMO Nathan Martin - The Benchmark Company Michael Dudas - Vertical Research Partners Chris LaFemina - Jefferies Operator Good day and welcome to the Fourth Quarter ...

Sales Performance - For the year ended December 31, 2022, coal sales increased by $1,516.6 million or 68.7% compared to 2021, with tons sold rising by 5.3 million tons or 7.2%[371] - Metallurgical operations coal sales rose by $1,008.6 million primarily due to higher realized pricing, while thermal segment coal sales increased by $509.4 million for the same reason[371] - The company reported consolidated revenues of $3.724 billion for the year ended December 31, 2022, with metallurgical revenues at $2.158 billion and thermal revenues at $1.567 billion[394] - For thermal coal, tons sold increased to 70.442 million in 2022 from 65.280 million in 2021, a variance of 5.162 million tons[386] - Coal sales per ton sold for metallurgical coal rose to $223.91 in 2022, an increase of $97.47 compared to $126.44 in 2021[386] Financial Performance - In the year ended December 31, 2022, the company reported a net loss of $14.4 million due to early retirement of debt, which included repayment of $273.8 million of its Term Loan and repurchases of approximately $142.1 million of Convertible Notes[382] - For the year ended December 31, 2022, net income was $1,330,914, a significant increase from $337,573 in 2021[400] - Adjusted EBITDA for coal operations reached $1,375,816, up from $618,539 in the previous year, indicating strong operational performance[400] - The provision for income taxes in 2022 was a benefit of $251.9 million, compared to a provision of $1.9 million in 2021, resulting in a net income increase of $253.8 million[382] Cost and Expenses - The cost of sales for 2022 increased by $759.0 million or 48.0% compared to 2021, driven by higher sales volumes and prices, as well as general inflationary pressures[375] - The cash cost per ton sold for thermal coal was $14.57 in 2022, up from $11.35 in 2021, reflecting an increase of $3.22[386] - The company achieved a cash margin per ton sold of $130.30 for metallurgical coal in 2022, an increase of $72.70 from $57.60 in 2021[386] Debt and Liquidity - Total debt was reduced by approximately 71% during 2022, with $273.8 million repaid from the Term Loan and $142.1 million in Convertible Notes repurchased[404] - The company ended 2022 with cash, equivalents, and short-term investments of $273.1 million, resulting in total liquidity of $400.8 million[404] - The company plans to maintain minimum liquidity levels of approximately $250 million to $300 million, primarily held in cash[404] - The amendment of the trade accounts receivable securitization facility increased borrowing capacity from $110 million to $150 million, maturing on August 1, 2025[413] Operational Developments - The company expects the addition of the second longwall operation at Leer South to significantly increase future volumes and improve cost structure relative to peers[388] - The company is pursuing strategic alternatives for its thermal assets, including potential divestiture, while shrinking its operational footprint[367] - The company anticipates purchasing approximately 40 to 45 million gallons of diesel fuel for operations in 2023, with 15 million gallons protected by heating oil call options at an average strike price of $4.07 per gallon[451] Asset Retirement and Pension Plans - The company completed approximately $7.2 million of Asset Retirement Obligation (ARO) work at thermal operations in 2022, down from $33.5 million in 2021[367] - As of December 31, 2022, the asset retirement obligation liabilities were $244.4 million, with an estimated aggregate uninflated and undiscounted cost of final mine closures of approximately $389.8 million[438] - The company has non-contributory defined benefit pension plans covering certain salaried and hourly employees, with benefits based on years of service and compensation[440] - The expected long-term rate of return on plan assets is established at the beginning of each fiscal year based on historical and projected returns, targeting 15% equity and 85% fixed income securities[441] Market Conditions - The company expects coking coal prices to remain volatile due to reduced demand for finished steel products and potential further reductions[365] - Domestic thermal coal consumption was supported by high natural gas prices, but shipment volumes were negatively impacted by rail service constraints in the second half of 2022[366] - The company anticipates that coal generator stockpiles are likely below desired levels at many U.S. power stations, despite recent declines in natural gas prices[366] Shareholder Returns - A variable rate dividend of $3.11 per share was declared for stockholders, with approximately $456.4 million paid in dividends during 2022[405] - The company repurchased 1,118,457 shares for approximately $158.8 million in 2022, totaling 11,206,835 shares repurchased since the program's inception[409]

Arch Resources, Inc. (NYSE:ARCH) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET Company Participants Deck Slone - SVP, Strategy Paul Lang - CEO John Drexler - COO Matt Giljum - CFO Conference Call Participants Dave Gagliano - BMO Capital Markets Lucas Pipes - B. Riley Nathan Martin - The Benchmark Company Alex Hacking - Citi Michael Dudas - Vertical Research Operator Good morning, and thank you for standing by. Welcome to the Arch Resources Third Quarter 2022 Earnings Conference Call. At this ...

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Arch Resources, Inc. (NYSE:ARCH) Q4 2021 Earnings Conference Call February 15, 2022 10:00 AM ET Company Participants Deck Slone - SVP of Strategy Paul Lang - CEO and President John Drexler - COO Matt Giljum - CFO Conference Call Participants Alex Hacking - Citigroup David Gagliano - BMO Capital Markets Lucas Pipes - B. Riley FBR Michael Dudas - Vertical Research Partners Nathan Martin - The Benchmark Company Operator Good day. And welcome to the Arch Resources, Incorporated Fourth Quarter 2021 Earnings C ...