Arch Resources Reports Third Quarter 2024 Results

Core Insights - Arch Resources, Inc. reported a net loss of $6.2 million, or $0.34 per diluted share, in Q3 2024, a significant decline from a net income of $73.7 million, or $3.91 per diluted share, in Q3 2023 [1][3] - The company achieved a milestone in its pending merger with CONSOL Energy, receiving all necessary international approvals and managing through operational challenges [2][8] - Arch declared a fixed quarterly cash dividend of $0.25 per share, totaling $4.6 million, payable on November 26, 2024 [2][7] Financial Performance - Revenues for Q3 2024 were $617.9 million, down from $744.6 million in the same quarter of the previous year [1][13] - Adjusted EBITDA for Q3 2024 was $44.2 million, compared to $126.3 million in Q3 2023 [1][20] - The thermal segment returned to profitability, aided by improved performance in the Powder River Basin operations [5] Operational Highlights - The company managed through a three-week outage of the shiploader at Curtis Bay Terminal, which reduced coking coal shipments by approximately 200,000 tons [2][4] - Arch is transitioning the Leer South mine to enhance operational execution in 2025, with expectations for improved performance beginning mid-Q4 2024 [2][4] - The metallurgical marketing and logistics team faced challenges but continued to position the company for long-term value creation [2][3] Merger Update - The merger with CONSOL Energy is expected to close by the end of Q1 2025, pending customary closing conditions and stockholder approvals [8][9] - Projected benefits of the merger include cost savings of $110 million to $140 million annually and enhanced operational capabilities [8][9] Cash Flow and Debt Management - Arch generated cash provided by operating activities of $24.9 million in Q3 2024, with a working capital build of $18.2 million [6] - The company paid down $5.1 million in debt, ending Q3 with $255.9 million in cash and short-term investments, resulting in a net cash position of $127.7 million [6][19]