Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 21, 2022 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-13105 | |
Entity Registrant Name | Arch Resources, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 43-0921172 | |
Entity Address, Address Line One | One CityPlace Drive | |
Entity Address, Address Line Two | SuiteĀ 300 | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63141 | |
City Area Code | 314 | |
Local Phone Number | 994-2700 | |
Title of 12(b) Security | Common stock, $.01 par value | |
Trading Symbol | ARCH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 15,477,360 | |
Amendment Flag | false | |
Entity Central Index Key | 0001037676 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Operations | ||
Revenues | $ 867,936 | $ 357,543 |
Costs, expenses and other operating | ||
Cost of sales (exclusive of items shown separately below) | 508,225 | 309,906 |
Depreciation, depletion and amortization | 32,210 | 25,797 |
Accretion on asset retirement obligations | 4,430 | 5,437 |
Change in fair value of coal derivatives and coal trading activities, net | 15,519 | 528 |
Selling, general and administrative expenses | 26,648 | 21,480 |
Other operating income, net | (3,439) | (5,268) |
Costs, expenses and other operating | 583,593 | 357,880 |
Income (loss) from operations | 284,343 | (337) |
Interest expense, net | ||
Interest expense | (7,047) | (4,128) |
Interest and investment income | 24 | 328 |
Interest expense, net | (7,023) | (3,800) |
Income (loss) before nonoperating expenses | 277,320 | (4,137) |
Nonoperating expenses | ||
Non-service related pension and postretirement benefit costs | (873) | (1,527) |
Net loss resulting from early retirement of debt | (4,120) | |
Nonoperating expenses | (4,993) | (1,527) |
Income (loss) before income taxes | 272,327 | (5,664) |
Provision for income taxes | 455 | 378 |
Net income (loss) | $ 271,872 | $ (6,042) |
Net income (loss) per common share | ||
Basic earnings (loss) per share (in dollars per share) | $ 17.60 | $ (0.40) |
Diluted earnings (loss) per share (in dollars per share) | $ 12.89 | $ (0.40) |
Weighted average shares outstanding | ||
Basic weighted average shares outstanding (in shares) | 15,448 | 15,283 |
Diluted weighted average shares outstanding (in shares) | 21,271 | 15,283 |
Dividends declared per common share (in dollars per share) | $ 0.25 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||
Net income (loss) | $ 271,872 | $ (6,042) |
Derivative instruments | ||
Comprehensive income before tax | 1,763 | 689 |
Other comprehensive income, derivative instruments, net of tax | 1,763 | 689 |
Pension, postretirement and other post-employment benefits | ||
Comprehensive income (loss) before tax | (522) | 547 |
Other comprehensive income (loss), pension, postretirement and other post-employment benefits, net of tax | (522) | 547 |
Available-for-sale securities | ||
Comprehensive income before tax | 182 | 101 |
Other comprehensive income, available-for-sale securities, net of tax | 182 | 101 |
Total other comprehensive income | 1,423 | 1,337 |
Total comprehensive income (loss) | $ 273,295 | $ (4,705) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 318,725 | $ 325,194 |
Short-term investments | 14,463 | |
Restricted Cash | 1,100 | 1,101 |
Trade accounts receivable (net of $0 allowance at March 31, 2022 and December 31, 2021) | 323,167 | 324,304 |
Other receivables | 9,807 | 8,271 |
Inventories | 203,997 | 156,734 |
Other current assets | 50,217 | 52,804 |
Total current assets | 907,013 | 882,871 |
Property, plant and equipment, net | 1,111,359 | 1,120,043 |
Other assets | ||
Equity investments | 16,494 | 15,403 |
Fund for asset retirement obligations | 40,000 | 20,000 |
Other noncurrent assets | 76,019 | 78,843 |
Total other assets | 132,513 | 114,246 |
Total assets | 2,150,885 | 2,117,160 |
Current Liabilities | ||
Accounts payable | 147,284 | 131,986 |
Accrued expenses and other current liabilities | 179,200 | 167,304 |
Current maturities of debt | 182,611 | 223,050 |
Total current liabilities | 509,095 | 522,340 |
Long-term debt | 132,290 | 337,623 |
Asset retirement obligations | 193,745 | 192,672 |
Accrued pension benefits | 948 | 1,300 |
Accrued postretirement benefits other than pension | 73,828 | 73,565 |
Accrued workers' compensation | 222,462 | 224,105 |
Other noncurrent liabilities | 94,265 | 81,689 |
Total liabilities | 1,226,633 | 1,433,294 |
Stockholders' equity | ||
Common stock, $0.01 par value, authorized 300,000 shares, issued 25,565 and 25,481 shares at March 31, 2022 and December 31, 2021, respectively | 256 | 255 |
Paid-in capital | 748,999 | 784,356 |
Retained earnings | 986,797 | 712,478 |
Treasury stock, 10,088 shares at March 31, 2022 and December 31, 2021, respectively, at cost | (827,381) | (827,381) |
Accumulated other comprehensive income | 15,581 | 14,158 |
Total stockholders' equity | 924,252 | 683,866 |
Total liabilities and stockholders' equity | $ 2,150,885 | $ 2,117,160 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets | ||
Trade accounts receivable, allowance | $ 0 | $ 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 25,565,000 | 25,481,000 |
Treasury stock, shares (in shares) | 10,088,000 | 10,088,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net income (loss) | $ 271,872 | $ (6,042) |
Adjustments to reconcile to cash from operating activities: | ||
Depreciation, depletion and amortization | 32,210 | 25,797 |
Accretion on asset retirement obligations | 4,430 | 5,437 |
Deferred income taxes | 372 | |
Employee stock-based compensation expense | 8,203 | 3,885 |
Amortization relating to financing activities | 770 | 1,326 |
Gain on disposals and divestitures, net | (352) | (188) |
Reclamation work completed | (4,278) | (11,553) |
Contribution to fund asset retirement obligations | (20,000) | |
Changes in: | ||
Receivables | (399) | (18,929) |
Inventories | (47,263) | (28,387) |
Accounts payable, accrued expenses and other current liabilities | 14,115 | 13,827 |
Income taxes, net | 442 | (33) |
Coal derivative assets and liabilities, including margin account | 15,833 | (537) |
Other | 17,356 | 20,711 |
Cash provided by operating activities | 292,939 | 5,686 |
Investing activities | ||
Capital expenditures | (22,288) | (76,758) |
Minimum royalty payments | (62) | |
Proceeds from disposals and divestitures | 360 | 188 |
Proceeds from sales of short-term investments | 14,450 | 34,981 |
Investments in and advances to affiliates, net | (2,088) | (1,114) |
Cash used in investing activities | (9,566) | (42,765) |
Financing activities | ||
Payments on term loan | (271,537) | (750) |
Proceeds from tax exempt bonds | 44,985 | |
Net payments on other debt | (10,134) | (9,536) |
Debt financing costs | (1,194) | |
Dividends paid | (3,851) | |
Payments for taxes related to net share settlement of equity awards | (4,827) | (1,316) |
Proceeds from warrants exercised | 506 | |
Cash (used in) provided by financing activities | (289,843) | 32,189 |
Decrease in cash and cash equivalents, including restricted cash | (6,470) | (4,890) |
Cash and cash equivalents, including restricted cash, beginning of period | 326,295 | 193,445 |
Cash and cash equivalents, including restricted cash, end of period | 319,825 | 188,555 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash and cash equivalents | 318,725 | 169,593 |
Restricted Cash | 1,100 | 18,962 |
Cash and cash equivalents, including restricted cash | $ 319,825 | $ 188,555 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Common Stock | Paid-in CapitalCumulative Effect, Period of Adoption, Adjustments | Paid-in Capital | Retained EarningsCumulative Effect, Period of Adoption, Adjustments | Retained Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustments | Total |
Beginning Balance at Dec. 31, 2020 | $ 253 | $ 767,484 | $ 378,906 | $ (827,381) | $ (35,701) | $ 283,561 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Total comprehensive income (loss) | (6,042) | 1,337 | (4,705) | ||||||
Employee stock-based compensation | 3,885 | 18 | 3,903 | ||||||
Issuance of shares of common stock under long-term incentive plan | 1 | 1 | |||||||
Common stock withheld related to net share settlement of equity awards | (1,317) | (1,317) | |||||||
Ending Balance at Mar. 31, 2021 | 254 | 770,052 | 372,882 | (827,381) | (34,364) | 281,443 | |||
Beginning Balance at Dec. 31, 2021 | 255 | 784,356 | 712,478 | (827,381) | 14,158 | 683,866 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends on common shares | (4,271) | (4,271) | |||||||
Total comprehensive income (loss) | 271,872 | 1,423 | 273,295 | ||||||
Employee stock-based compensation | 8,203 | 8,203 | |||||||
Issuance of shares of common stock under long-term incentive plan | 1 | 1 | |||||||
Common stock withheld related to net share settlement of equity awards | (4,827) | (4,827) | |||||||
Issuance of shares of common stock for warrants exercised | 506 | 506 | |||||||
Ending Balance (ASU 2020-06) at Mar. 31, 2022 | $ (39,239) | $ 6,718 | $ (32,521) | ||||||
Ending Balance at Mar. 31, 2022 | $ 256 | $ 748,999 | $ 986,797 | $ (827,381) | $ 15,581 | $ 924,252 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholder's Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Stockholder's Equity | ||
Dividends declared per common share (in dollars per share) | $ 0.25 | |
Issuance of shares of common stock under long-term incentive plan (in shares) | 71,338 | 59,166 |
Issuance of shares of common stock for warrants exercised (in shares) | 13,239 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Basis of Presentation | |
Basis of Presentation | 1. The accompanying unaudited condensed consolidated financial statements include the accounts of Arch Resources, Inc. (āArch Resourcesā) and its subsidiaries (āArchā or the āCompanyā). Unless the context indicates otherwise, the terms āArchā and the āCompanyā are used interchangeably in this Quarterly Report on Form 10-Q. The Companyās primary business is the production of metallurgical and thermal coal from underground and surface mines located throughout the United States, for sale to steel producers, utility companies, and industrial accounts both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Wyoming and Colorado. All subsidiaries are wholly owned. Intercompany transactions and accounts have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and U.S. Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2021 included in the Companyās Annual Report on Form 10-K for the year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies | |
Accounting Policies | 2. Recently Adopted Accounting Guidance In August 2020, the FASB issued ASU 2020-06 , The if-converted method assumes the conversion of convertible instruments occurs at the beginning of the reporting period and diluted weighted average shares outstanding includes the common shares issuable upon conversion of the convertible instruments. ASU 2020-06 is effective for public business entities, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company adopted ASU 2020-06 on January 1, 2022 under the modified retrospective approach. ā Upon issuance of the Company's $155.3 million principal amount of 5.25 % convertible senior notes due 2025 (the "Convertible Notes") in November 2020, the Company bifurcated the debt and equity components of the Convertible Notes to long-term debt and additional paid-in capital in its consolidated balance sheet. The amount recorded to additional paid-in capital represented a debt discount that was being amortized to interest expense over the life of the Convertible Notes. As part of the adoption of ASU 2020-06, the Company (i) reversed the equity component recorded to additional paid-in capital of $39.2 million, (ii) recorded a cumulative effect of the adoption of ASU 2020-06 of $6.7 million to retained earnings, representing a reversal of the debt discount that was amortized to interest expense, and (iii) an offsetting increase in debt. See ā Additionally, upon adoption of ASU 2020-06, the treasury stock method utilized by the Company to calculate earnings per share through December 31, 2021 is no longer permitted. Accordingly, the Company has transitioned to the if-converted method utilizing the modified retrospective approach, resulting in 4.2 million shares being included in the Company's weighted-average diluted shares outstanding for the quarter ended March 31, 2022. Under the previous treasury stock method, the diluted earnings per share would have been approximately $13.73 . As a result of the adoption of ASU 2020-06, diluted earnings per share decreased by for the quarter end March 31, 2022. See Note 11, āEarnings (Loss) per Common Shareā for additional information. ā Recent Accounting Guidance Issued Not Yet Effective There are no new pronouncements issued but not yet effective expected to have a material impact on the Companyās financial position, results of operations, or liquidity. ā |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss) | 3. The following items are included in accumulated other comprehensive income (loss) (āAOCIā), net of tax: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pension, ā ā ā ā ā ā ā ā ā Postretirement ā ā ā ā Accumulated ā ā ā ā ā and Other Post- ā ā ā ā Other ā ā Derivative ā Employment ā Available-for- ā Comprehensive ā ā Instruments ā Benefits ā Sale Securities ā Income (loss) ā (In thousands) Balance at December 31, 2021 ā $ (1,763) ā $ 16,103 ā $ (182) $ 14,158 Unrealized gains (losses) ā 223 ā ā ā ā 223 Amounts reclassified from accumulated other comprehensive income (loss) ā 1,540 ā (522) ā 182 1,200 Balances at March 31, 2022 ā $ ā ā $ 15,581 ā $ ā $ 15,581 ā The following amounts were reclassified out of AOCI: ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, Line Item in the Consolidated Details About AOCI Components 2022 2021 Statements of Operations ā ā ā ā ā ā ā ā ā ā Interest rate hedges ā (112) ā (624) ā ā Interest expense Interest rate hedges (ineffective portion) ā ā (1,428) ā ā ā ā Net loss resulting from early retirement of debt ā ā ā ā ā ā Provision for income taxes ā ā $ (1,540) ā $ (624) ā Net of tax ā ā ā ā ā ā ā ā ā ā Pension, postretirement and other post-employment benefits ā ā ā ā ā ā ā ā ā Amortization of actuarial gains (losses), net 1 ā $ 627 ā $ (591) ā Non-service related pension and postretirement benefit (costs) credits Amortization of prior service credits ā ā (105) ā ā 44 ā ā Non-service related pension and postretirement benefit (costs) credits ā ā ā ā ā ā Provision for income taxes ā ā $ 522 ā $ (547) ā Net of tax ā ā ā ā ā ā ā ā ā ā Available-for-sale securities 2 ā $ (182) ā $ 10 ā Interest and investment income ā ā ā ā ā ā Provision for income taxes ā ā $ (182) ā $ 10 ā Net of tax 1 2 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Inventories | 4. Inventories consist of the following: ā ā ā ā ā ā ā ā ā March 31, December 31, ā 2022 2021 ā ā (In thousands) Coal ā $ 113,330 ā $ 75,653 Repair parts and supplies ā 90,667 ā 81,081 ā ā $ 203,997 ā $ 156,734 ā The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $2.3 million at March 31, 2022 and $2.3 million at December 31, 2021. |
Investments in Available-for-Sa
Investments in Available-for-Sale Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments in Available-for-Sale Securities | |
Investments in Available-for-Sale Securities | 5. The Company has invested in marketable debt securities, primarily highly liquid U.S. Treasury securities and investment grade corporate bonds. These investments are held in the custody of a major financial institution. These securities are classified as available-for-sale securities and, accordingly, the unrealized gains and losses are recorded through other comprehensive income. During the quarter of March 31, 2022, the Company liquidated its remaining investments. The Companyās investments in available-for-sale marketable securities are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā March 31, 2022 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross ā ā Allowance ā ā ā ā ā ā ā ā Unrealized ā ā for - Credit ā Fair ā Cost Basis Gains Losses ā ā Losses Value ā ā (In thousands) Available-for-sale: ā ā ā ā ā ā ā U.S. government and agency securities ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā Corporate notes and bonds ā ā ā ā ā ā ā ā ā ā Total Investments ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross ā ā Allowance ā ā ā ā ā ā ā ā Unrealized ā ā for - Credit ā Fair ā Cost Basis Gains ā Losses ā ā Losses Value ā (In thousands) Available-for-sale: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government and agency securities ā $ 6,074 ā $ ā ā $ (71) ā $ ā ā $ 6,003 Corporate notes and bonds ā 8,571 ā ā ā (111) ā ā ā 8,460 Total Investments ā $ 14,645 ā $ ā ā $ (182) ā $ ā ā $ 14,463 ā There were no investments with unrealized losses that were owned for less than a year at March 31, 2022 and December 31, 2021, respectively. The aggregate fair value of investments with unrealized losses that were owned for over a year was $0.0 million and $14.5 million at March 31, 2022 and December 31, 2021, respectively. The Company classifies its investments as current based on the nature of the investments and their availability to provide cash for use in current operations. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2022 | |
Derivatives | |
Derivatives | 6. Diesel fuel price risk management The Company is exposed to price risk with respect to diesel fuel purchased for use in its operations. The Company anticipates purchasing approximately 40 to 45 million gallons of diesel fuel for use in its operations during 2022. To protect the Companyās cash flows from increases in the price of diesel fuel for its operations, the Company purchased heating oil call options. At March 31, 2022, the Company had protected the price of expected diesel fuel purchases for 2022 with approximately per gallon. These positions are not designated as hedges for accounting purposes, and therefore, changes in the fair value are recorded immediately to earnings. Coal price risk management positions The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market in order to manage its exposure to coal prices. The Company has exposure to the risk of fluctuating coal prices related to forecasted, index-priced sales or purchases of coal or to the risk of changes in the fair value of a fixed price physical sales contract. Certain derivative contracts may be designated as hedges of these risks. At March 31, 2022, the Company held derivatives for risk management purposes that are expected to settle in the following years: ā ā ā ā (Tons in thousands) 2022 Coal sales 221 Coal purchases 11 ā Tabular derivatives disclosures The Company has master netting agreements with all of its counterparties which allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Companyās credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the Condensed Consolidated Balance Sheets. The amounts shown in the table below represent the fair value position of individual contracts, and not the net position presented in the accompanying Condensed Consolidated Balance Sheets. The fair value and location of derivatives reflected in the accompanying Condensed Consolidated Balance Sheets are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā March 31, 2022 ā ā ā December 31, 2021 ā ā Fair Value of Derivatives Asset ā Liability ā ā ā ā Asset ā Liability ā ā (In thousands) ā Derivative ā Derivative ā ā ā ā Derivative ā Derivative ā ā ā Derivatives Not Designated as Hedging Instruments ā ā ā ā ā ā Heating oil -- diesel purchases ā 8,547 ā ā ā ā 1,219 ā ā ā Coal -- risk management ā ā ā (12,838) ā ā 4,885 ā (2,203) ā Total ā $ 8,547 ā $ (12,838) ā ā $ 6,104 ā $ (2,203) ā Total derivatives ā $ 8,547 ā $ (12,838) ā ā $ 6,104 ā $ (2,203) ā Effect of counterparty netting ā ā ā ā ā ā (1,890) ā 1,890 ā Net derivatives as classified in the balance sheets ā $ 8,547 ā $ (12,838) ā $ (4,291) ā $ 4,214 ā $ (313) ā $ 3,901 ā ā ā ā ā ā ā ā ā ā ā March 31, December 31, ā ā ā ā 2022 ā 2021 Net derivatives as reflected on the balance sheets (in thousands) ā ā Heating Oil and coal Other current assets ā $ 8,547 ā $ 4,214 Coal Accrued expenses and other current liabilities ā (12,838) ā (313) ā ā ā ā $ (4,291) ā $ 3,901 ā The Company had a current asset representing cash collateral posted to a margin account for derivative positions primarily related to coal derivatives of $2.6 million and $2.8 million at March 31, 2022 and December 31, 2021, respectively. These amounts are not included with the derivatives presented in the table above and are included in āother current assetsā in the accompanying Condensed Consolidated Balance Sheets. The effects of derivatives on measures of financial performance are as follows: Derivatives Not Designated as Hedging Instruments (in thousands) Three Months Ended March 31, ā ā ā ā ā ā ā ā ā ā Gain (Loss) Recognized ā ā ā 2022 ā ā 2021 Coal risk management ā unrealized (3) $ (15,519) ā $ (528) ā ā ā ā ā ā ā Coal risk managementā realized (4) $ (9,074) ā $ 138 Heating oil ā diesel purchases (4) $ 6,801 ā $ ā Location in statement of operations: (1) ā Revenues (2) ā Cost of sales (3) ā Change in fair value of coal derivatives and coal trading activities, net (4) ā Other operating (income) expense, net ā At March 31, 2022 and 2021, the Company did not have any derivative contracts designated as hedging instruments, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses and Other Current Liabilities. | |
Accrued Expenses and Other Current Liabilities | 7. Accrued expenses and other current liabilities consist of the following: ā ā ā ā ā ā ā ā ā March 31, December 31, ā ā 2022 ā 2021 ā ā (In thousands) Payroll and employee benefits ā $ 44,901 ā $ 55,898 Taxes other than income taxes ā 64,061 ā 61,582 Interest ā 4,322 ā 3,439 Workersā compensation ā 16,290 ā 14,202 Asset retirement obligations ā 21,781 ā 21,781 Coal derivatives ā ā 12,838 ā ā 313 Other ā 15,007 ā 10,089 ā ā $ 179,200 ā $ 167,304 ā |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2022 | |
Debt and Financing Arrangements | |
Debt and Financing Arrangements | 8. ā ā ā ā ā ā ā ā ā March 31, December 31, ā ā 2022 ā 2021 ā (In thousands) Term loan due 2024 ($8.8 million face value) ā $ 8,752 ā $ 280,353 Tax Exempt Bonds ($98.1 million face value) ā ā 98,075 ā ā 98,075 Convertible Debt ($155.3 million face value) ā ā 155,250 ā ā 121,617 Other ā 60,720 ā 70,836 Debt issuance costs ā (7,896) ā (10,208) ā ā ā 314,901 ā ā 560,673 Less: current maturities of debt ā 182,611 ā 223,050 Long-term debt ā $ 132,290 ā $ 337,623 ā Term Loan Facility In 2017, the Company entered into a senior secured term loan credit agreement in an aggregate principal amount of $300 million (the āTerm Loan Debt Facilityā) with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, and the other financial institutions from time to time party thereto (collectively, the āLendersā). The Term Loan Debt Facility was issued at 99.50% of the face amount and will mature on March 7, 2024. The term loans provided under the Term Loan Debt Facility (the āTerm Loansā) are subject to quarterly principal amortization payments in an amount equal to $750,000 . The interest rate on the Term Loan Debt Facility is, at the option of Arch Resources, either (i) LIBOR plus an applicable margin of The Term Loan Debt Facility is guaranteed by all existing and future wholly owned domestic subsidiaries of the Company (collectively, the āSubsidiary Guarantorsā and, together with Arch Resources, the āLoan Partiesā), subject to customary exceptions, and is secured by first priority security interests on substantially all assets of the Loan Parties, including 100% of the voting equity interests of directly owned domestic subsidiaries and 65% of the voting equity interests of directly owned foreign subsidiaries, subject to customary exceptions. During the first quarter of 2022, the Company repaid $271.5 million of the Term Loans leaving a remaining balance of $8.8 million. The remaining balance of million was left as certain terms and conditions governing the Term Loan are incorporated into the Companyās outstanding indebtedness. As a result of the repayment, the Company recorded million as ānet loss resulting from early retirement of debtā in the accompanying Condensed Consolidated Statement of Operations relating to deferred financing fees, original issue discount, and the ineffective portion of an interest rate swap designated as a cashflow hedge, partially offset by gains on repurchases of the Term Loans. Accounts Receivable Securitization Facility On September 30, 2020, the Company amended and extended its existing trade accounts receivable securitization facility provided to Arch Receivable Company, LLC, a special-purpose entity that is a wholly owned subsidiary of Arch Resources (āArch Receivableā) (the āSecuritization Facilityā), which supports the issuance of letters of credit and requests for cash advances. The amendment to the Securitization Facility reduced the size of the facility from $160 million to $110 million of borrowing capacity and extended the maturity date to September 29, 2023. Under the Securitization Facility, Arch Receivable, Arch Resources and certain of Arch Resourcesās subsidiaries party to the Securitization Facility have granted to the administrator of the Securitization Facility a first priority security interest in eligible trade accounts receivable generated by such parties from the sale of coal and all proceeds thereof. As of March 31, 2022, letters of credit totaling Inventory-Based Revolving Credit Facility On September 30, 2020, Arch Resources amended the senior secured inventory-based revolving credit facility in an aggregate principal amount of $50 million (the āInventory Facilityā) with Regions Bank (āRegionsā) as administrative agent and collateral agent, as lender and swingline lender (in such capacities, the āLenderā) and as letter of credit issuer. Availability under the Inventory Facility is subject to a borrowing base consisting of (i) 85% of the net orderly liquidation value of eligible coal inventory, plus (ii) the lesser of (x) 85% of the net orderly liquidation value of eligible parts and supplies inventory and (y) 35% of the amount determined pursuant to clause (i), plus (iii) 100% of Arch Resourcesās Eligible Cash (defined in the Inventory Facility), subject to reduction for reserves imposed by Regions. The amendment of the Inventory Facility extended the maturity of the facility to September 29, 2023; eliminated the provision that accelerated maturity upon Liquidity (as defined in the Inventory Facility) falling below a specified level; and reduced the minimum Liquidity requirement from $175 million to $100 million. Additionally, the amendment included provisions that reduce the advance rates for coal inventory and parts and supplies, depending on āliquidity.ā The Inventory Facility contains certain customary affirmative and negative covenants; events of default, subject to customary thresholds and exceptions; and representations, including certain cash management and reporting requirements that are customary for asset-based credit facilities. The Inventory Facility also includes a requirement to maintain liquidity equal to or exceeding $100 million at all times. As of March 31, 2022, letters of credit totaling $27.7 million were outstanding under the facility with $22.3 million available for borrowings. Equipment Financing On March 4, 2020, the Company entered into an equipment financing arrangement accounted for as debt. The Company received million in exchange for conveying an interest in certain equipment in operation at its Leer mine and entered into a master lease arrangement for that equipment. The financing arrangement contains customary terms and events of default and provides for maturing on March 4, 2024. Upon maturity, all interests in the subject equipment will revert back to the Company. On July 29, 2021, the Company entered into an additional equipment financing arrangement accounted for as debt. The Company received maturing on February 1, 2025. Upon maturity, the Company will have the option to purchase the equipment. Tax Exempt Bonds On July 2, 2020, the West Virginia Economic Development Authority (the āIssuerā) issued $53.1 million aggregate principal amount of Solid Waste Disposal Facility Revenue Bonds (Arch Resources Project), Series 2020 (the āTax Exempt Bondsā) pursuant to an Indenture of Trust dated as of June 1, 2020 (the āIndenture of Trustā) between the Issuer and Citibank, N.A., as trustee (the āTrusteeā). On March 4, 2021, the Issuer issued an additional million of Series 2021 Tax Exempt Bonds. The proceeds of the Tax Exempt Bonds were loaned to the Company pursuant to a Loan Agreement dated as of June 1, as supplemented by a First Amendment to Loan Agreement dated as of March 1, 2021 (collectively, the āLoan Agreementā), each between the Issuer and the Company. The Tax Exempt Bonds are payable solely from payments to be made by the Company under the Loan Agreement as evidenced by a Note from the Company to the Trustee. The proceeds of the Tax Exempt Bonds have been used to finance certain costs of the acquisition, construction, reconstruction, and equipping of solid waste disposal facilities at the Companyās Leer South development, and for capitalized interest and certain costs related to issuance of the Tax Exempt Bonds. The Tax Exempt Bonds bear interest payable each January 1 and July 1, commencing January 1, 2021 for the Series 2020 and July 1, 2021 for the Series 2021, and have a final maturity of July 1, 2045; however, the Tax Exempt Bonds are subject to mandatory tender on July 1, 2025 at a purchase price equal to 100% of the principal amount of the Tax Exempt Bonds, plus accrued interest to July 1, 2025. The Series 2020 and Series 2021 Tax Exempt Bonds bear interest of The Company utilized all of the Tax Exempt Bond proceeds in 2021. Convertible Debt On November 3, 2020, the Company issued $155.3 million in aggregate principal amount of 5.25% convertible senior notes due 2025 (āConvertible Notes ā or āConvertible Debtā). The net proceeds from the issuance of the Convertible Notes, after deducting offering related costs of $5.1 million and cost of a āCapped Call Transactionā as defined below of $17.5 million, were approximately $132.7 million. The Convertible Notes bear interest at the annual rate of 5.25%, payable semiannually in arrears on May 15 and November 15 of each year, beginning on May 15, 2021, and will mature on November 15, 2025, unless earlier converted, redeemed or repurchased by the Company. ā The Convertible Notes are convertible into cash, shares of the Companyās common stock or a combination thereof, at the Companyās election, at an initial conversion rate of 26.7917 shares of common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $37.325 per share, subject to adjustment pursuant to the terms of the indenture governing the Convertible Notes (the "Indenture"). ā The conversion rate of the Convertible Notes may be adjusted in certain circumstances, including in connection with a conversion of the Convertible Notes made following certain fundamental changes and under other circumstances set forth in the Indenture such as a declaration of a dividend. ā During the first quarter of 2022, the strike price was revalued to $37.126 per share as a result of the first quarter dividend declaration. The Convertible Notes may be converted at any time after, and including, July 15, 2025 until the close of business on the second scheduled trading day immediately before the maturity date. ā During the first quarter of 2022, the common stock sale condition of the Convertible Notes was satisfied. As described in the Indenture, this condition is satisfied when the closing stock price exceeds trading days prior to quarter end. As a result, the Convertible Notes are currently convertible at the election of noteholders during the second quarter of 2022 and are classified as current maturities of debt on the Companyās Consolidated Balance Sheet at March 31, 2022. ā As of March 31, 2022, all of the Convertible Notes remained outstanding. In addition, from April 1, 2022 to the date of this filing, the Company has not received any conversion requests for Convertible Notes and does not anticipate receiving any conversion requests in the near term as the market value of the Convertible Notes exceeds the conversion value of the Convertible Notes. As of March 31, 2022, the if-converted value of the Convertible Notes exceeded the principal amount by It is the Companyās current intent and policy to settle any conversions of notes through a combination of cash and shares. ā Capped Call Transactions ā In connection with the offering of the Convertible Notes, the Company entered into privately negotiated convertible note hedge transactions (collectively, the āCapped Call Transactionsā). The Capped Call Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Companyās common stock that initially underlie the Convertible Notes. ā The Capped Call Transactions are expected generally to reduce the potential dilution and/or offset any cash payments the Company is required to make in excess of the principal amount due upon conversion of the Convertible Notes in the event that the market price of the Companyās common stock is greater than the strike price of the Capped Call Transactions, which was initially $37.325 per share and the initial cap price was $52.255 per share. The initial call and cap prices are subject to adjustments under the terms of the underlying capped call agreements, including various transactions such as the payment of dividends. The number of shares underlying the Capped Call Transactions is ā Accounting Treatment of the Convertible Notes and Related Hedge Transactions As the Capped Call Transactions meet certain accounting criteria, the Capped Call Transactions were classified as equity and are not accounted for as derivatives. Initially the proceeds from the offering of the Convertible Notes were separated into liability and equity components. On the date of issuance, the liability and equity components of the Convertible Notes were calculated to be approximately $114.5 million and $40.8 million, respectively. The amount recorded to additional paid-in capital represented a debt discount that was being amortized to interest expense over the life the Convertible Notes. ā Upon issuance of the Company's $155.3 million principal amount of 5.25% convertible senior notes due 2025 (the "Convertible Notes") in November 2020, the Company bifurcated the debt and equity components of the Convertible Notes to long-term debt and additional paid-in capital in its consolidated balance sheet. The amount recorded to additional paid-in capital represented a debt discount that was being amortized to interest expense over the life of the Convertible Notes. As part of the adoption of ASU 2020-06, the Company (i) reversed the equity component recorded to additional paid-in capital of $39.2 million, (ii) recorded a cumulative effect of the adoption of ASU 2020-06 of $6.7 million to retained earnings, representing a reversal of the debt discount that was amortized to interest expense, and (iii) an offsetting increase in debt. See ā As of March 31, 2022, the Convertible Notes had an outstanding principal balance of $155.3 illion and unamortized issuance costs of $4.4 million. ā Total interest expense related to the Convertible Debt for the three months ended March 31, 2022 was $2.3 million, which was related to the contractual interest coupon of $2.0 million and $0.3 million of amortization of deferred financing fees. Total interest expense related to the Convertible Debt for the three months ended March 31, 2021 was million related to the amortization of the discount on the liability component and amortization of deferred financing fees. ā Interest Rate Swaps ā The Company entered into a series of interest rate swaps to fix a portion of the LIBOR interest payments due under the Term Loan Debt Facility. Through the date of the prepayment, the interest rate swaps qualified for cash flow hedge accounting treatment, and as such, the change in the fair value of the interest rate swaps was recorded on the Companyās Condensed Consolidated Balance Sheets as an asset or liability with the effective portion of the gains or losses reported as a component of accumulated other comprehensive income and the ineffective portion reported in earnings. Due to the Company repaying the majority of the Term Loans, the interest rate swaps no longer qualify for cash flow hedge accounting and is considered ineffective. As a result, the Company reclassified million from other comprehensive income to expense. Additionally, future changes in value of the interest rate swaps will be recorded to āother operating income, netā in the accompanying Condensed Consolidated Statements of Operations. The fair value of the interest rate swaps at March 31, 2022 is a liability of $0.3 million, which is recorded within Other noncurrent liabilities. The Company realized $0.1 million of losses during the three months ended March 31, 2022, related to settlements of the interest rate swaps, which were recorded to interest expense on the Companyās Condensed Consolidated Statements of Operations. The interest rate swaps are classified as Level 2 within the fair value hierarchy. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes | |
Income Taxes | 9. A reconciliation of the federal income tax provision at the statutory rate to the actual provision for income taxes follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā 2022 2021 ā ā (In thousands) Income tax provision (benefit) at statutory rate ā $ 57,188 ā $ (1,189) Percentage depletion and other permanent items ā (10,185) ā 1,660 State taxes, net of effect of federal taxes ā 1,215 ā (292) Change in valuation allowance ā (48,133) ā 412 Current expense associated with uncertain tax positions ā ā 376 ā ā 361 Other, net ā (6) ā (574) Provision for income taxes ā $ 455 ā $ 378 ā |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | 10. The hierarchy of fair value measurements assigns a level to fair value measurements based on the inputs used in the respective valuation techniques. The levels of the hierarchy, as defined below, give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. ā Level 1 is defined as observable inputs such as quoted prices in active markets for identical assets. Level 1 assets may include available-for-sale securities, U.S. Treasury securities, and coal swaps and futures that are submitted for clearing on the New York Mercantile Exchange. ā Level 2 is defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Companyās Level 2 assets and liabilities may include U.S. government agency securities, coal commodity contracts, and interest rate swaps with fair values derived from quoted prices in over-the-counter markets or from prices received from direct broker quotes. ā Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. These may include the Companyās commodity option contracts (coal and heating oil) valued using modeling techniques, such as Black-Scholes, that require the use of inputs, particularly volatility, that are rarely observable. The table below sets forth, by level, the Companyās financial assets and liabilities that are recorded at fair value in the accompanying Condensed Consolidated Balance Sheet: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā March 31, 2022 ā Total Level 1 Level 2 Level 3 ā ā (In thousands) Assets: ā ā ā ā Investments in marketable securities ā $ ā ā $ ā ā $ ā ā $ ā Derivatives ā 8,547 ā ā ā ā ā 8,547 Total assets ā $ 8,547 ā $ ā ā $ ā ā $ 8,547 Liabilities: ā ā ā ā ā ā ā ā Derivatives ā $ 13,121 ā $ ā ā $ 13,121 ā $ ā ā The Companyās contracts with its counterparties allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. For classification purposes, the Company records the net fair value of all the positions with these counterparties as a net asset or liability. Each level in the table above displays the underlying contracts according to their classification in the accompanying Condensed Consolidated Balance Sheet, based on this counterparty netting. The following table summarizes the change in fair values of financial instruments categorized as Level 3. ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2022 ā Three Months Ended March 31, 2021 ā (In thousands) ā ā ā ā ā ā ā Balance, beginning of period ā $ 1,219 ā $ ā ā Realized and unrealized gains (losses) recognized in earnings, net ā 6,490 ā ā ā Purchases ā 998 ā ā ā Settlements ā (160) ā ā ā Ending balance ā $ 8,547 ā $ ā ā ā Fair Value of Long-Term Debt At March 31, 2022 and December 31, 2021, the fair value of the Companyās debt, including amounts classified as current, was $741.9 million and $819.5 million, respectively. Fair values are based upon observed prices in an active market, when available, or from valuation models using market information, which fall into Level 2 in the fair value hierarchy. |
Earnings (Loss) per Common Shar
Earnings (Loss) per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings per Common Share | |
Earnings (Loss) per Common Share | 11. The Company computes basic net income (loss) per share using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities may consist of warrants, restricted stock units, and convertible debt. The dilutive effect of outstanding warrants and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. The weighted average share impact of warrants, restricted stock units, and convertible debt that were excluded from the calculation of diluted shares due to the Company incurring a net loss for the three months ending March 31, 2021 were The following table provides the basic and diluted earnings per share by reconciling the numerators and denominators of the computations: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā ā 2022 2021 ā (In Thousands) ā ā ā ā ā ā ā Net income (loss) attributable to common shares $ 271,872 $ (6,042) Adjustment of interest expense attributable to Convertible Notes ā ā 2,309 ā ā ā ā Diluted net income (loss) attributable to common stockholders ā ā 274,181 ā ā (6,042) ā ā ā ā ā ā ā ā ā Basic weighted average shares outstanding ā ā 15,448 ā ā 15,283 ā Effect of dilutive securities ā ā 1,651 ā ā ā ā Convertible Notes (a) ā ā 4,173 ā ā ā ā Diluted weighted average shares outstanding ā 21,271 ā 15,283 (a) Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted at the beginning of the year ended December 31, 2022. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. The Capped Call Transaction is anti-dilutive and is excluded from the calculation of diluted earnings per share. ā |
Workers Compensation Expense
Workers Compensation Expense | 3 Months Ended |
Mar. 31, 2022 | |
Workers' Compensation Expense | |
Workers' Compensation Expense | 12. The Company is liable under the Federal Mine Safety and Health Act of 1969, as subsequently amended, to provide for pneumoconiosis (occupational disease) benefits to eligible employees, former employees and dependents. The Company currently provides for federal claims principally through a self-insurance program. The Company is also liable under various state workersā compensation statutes for occupational disease benefits. The occupational disease benefit obligation represents the present value of the actuarially computed present and future liabilities for such benefits over the employeesā applicable years of service. In October 2019, the Company filed an application with the Office of Workersā Compensation Programs (āOWCPā) within the Department of Labor for reauthorization to self-insure federal black lung benefits. In February 2020, the Company received a reply from the OWCP confirming Archās status to remain self-insured contingent upon posting additional collateral of of receipt of the letter. The Company is currently appealing the ruling from the OWCP and has received an extension to self-insure during the appeal process. The Company is evaluating alternatives to self-insurance, including the purchase of commercial insurance to cover these claims. In addition, the Company is liable for workersā compensation benefits for traumatic injuries which are calculated using actuarially-based loss rates, loss development factors and discounted based on a risk free rate. Traumatic workersā compensation claims are insured with varying retentions/deductibles, or through state-sponsored workersā compensation programs. Workersā compensation expense consists of the following components: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā ā 2022 2021 ā ā (In thousands) ā Self-insured occupational disease benefits: ā ā Service cost ā $ 1,498 ā $ 1,949 ā Interest cost (1) ā 1,152 ā 1,110 ā Net amortization (1) ā 157 ā 591 ā Total occupational disease ā $ 2,807 ā $ 3,650 ā Traumatic injury claims and assessments ā 2,056 ā 1,805 ā Total workersā compensation expense ā $ 4,863 ā $ 5,455 ā (1) In accordance with the adoption of ASU 2017-07, āCompensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,ā these costs are recorded within Nonoperating expenses in the Condensed Consolidated Statements of Operations on the line item āNon-service related pension and postretirement benefit costs.ā |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Employee Benefit Plans | |
Employee Benefit Plans | 13. Employee Benefit Plans The following table details the components of pension benefit costs (credits): ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā 2022 2021 ā ā ā ā ā ā ā Interest cost (1) ā $ 1,093 ā $ 1,068 Expected return on plan assets (1) ā ā (1,432) ā ā (1,824) Pension settlement (1) ā ā ā ā Amortization of prior service costs (credits) (1) ā (53) ā (28) Net benefit credit ā $ (392) ā $ (784) ā The following table details the components of other postretirement benefit cost (credit): ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā 2022 2021 ā ā ā ā ā ā ā Service cost ā $ 71 ā $ 85 Interest cost (1) ā 501 ā 528 Amortization of other actuarial gains (1) ā (627) ā ā Net benefit (credit) cost ā $ (55) ā $ 613 (1) In accordance with the adoption of ASU 2017-07, āCompensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,ā these costs are recorded within Nonoperating expenses in the Condensed Consolidated Statement of Operations on the line item āNon-service related pension and postretirement benefit costs.ā (1) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 14. Commitments and Contingencies The Company accrues for costs related to contingencies when a loss is probable and the amount is reasonably determinable. Disclosure of contingencies is included in the financial statements when it is at least reasonably possible that a material loss or an additional material loss in excess of amounts already accrued may be incurred. The Company is a party to numerous claims and lawsuits with respect to various matters. The ultimate resolution of any such legal matter could result in outcomes that may be materially different from amounts the Company has accrued for such matters. The Company believes it has recorded adequate reserves for these matters. In the normal course of business, the Company is a party to certain financial instruments with off-balance sheet risk, such as bank letters of credit, performance or surety bonds, and other guarantees and indemnities related to the obligations of affiliated entities which are not reflected in the Companyās Condensed Consolidated Balance Sheets. However, the underlying liabilities that they secure, such as asset retirement obligations, workersā compensation liabilities, and other obligations, are reflected in the Companyās Condensed Consolidated Balance Sheets. As of March 31, 2022, the Company had outstanding surety bonds with a face amount of $586.4 million to secure various obligations and commitments and $95.3 million of letters of credit under its Securitization and Inventory Facilities used to collateralize certain obligations. The Company had posted million in cash collateral related to various obligations; this amount is recorded within āNoncurrent assetsā on the Condensed Consolidated Balance Sheets. As of March 31, 2022, the Companyās reclamation-related obligations of $215.5 million were supported by surety bonds of $500.3 million and $20.0 million in letters of credit used to collateralize certain obligations. The Company has posted $0.6 million in cash collateral related to reclamation surety bonds. This amount is recorded within āNoncurrent assetsā on the Condensed Consolidated Balance Sheets. Additionally, in the first quarter of 2022, the Company contributed an additional $20 million to a fund that will serve to defease the long-term asset retirement obligation for its thermal asset base bringing the total to $40.0 million as of March 31, 2022. This amount is recorded as āFund for asset retirement obligationsā on the Condensed Consolidated Balance Sheets. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information | |
Segment Information | 15. The Companyās reportable business segments are based on two distinct lines of business, metallurgical and thermal, and may include a number of mine complexes. The Company manages its coal sales by market, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Companyās marketing and operations management. Mining operations are evaluated based on Adjusted EBITDA, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses, divided by segment tons sold), and on other non-financial measures, such as safety and environmental performance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing the Companyās financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income (loss), income (loss) from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate the Companyās operating performance. Investors should be aware that the Companyās presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Metallurgical (MET) segment, containing the Companyās metallurgical operations in West Virginia, and the Thermal segment containing the Companyās thermal operations in Wyoming and Colorado. Reporting segment results for the three months ended March 31, 2022 and 2021 are presented below. The Corporate, Other, and Eliminations grouping includes these charges: idle operations; change in fair value of coal derivatives and coal trading activities, net; corporate overhead; land management activities; other support functions; and the elimination of intercompany transactions. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate, ā ā ā ā ā ā ā ā ā ā Other and ā ā ā (In thousands) ā MET ā Thermal ā Eliminations ā Consolidated ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2022 ā ā ā ā ā ā ā ā Revenues ā $ 472,171 ā $ 395,765 ā $ ā $ 867,936 Adjusted EBITDA ā 259,003 ā 100,500 ā (38,520) 320,983 Depreciation, depletion and amortization ā 26,952 ā 5,032 ā 226 32,210 Accretion on asset retirement obligation ā 553 ā 3,444 ā 433 4,430 Total assets ā 1,001,734 ā 227,009 ā 922,142 2,150,885 Capital expenditures ā 17,580 ā 4,002 ā 706 22,288 ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2021 ā ā ā ā ā ā ā Revenues ā $ 178,781 ā $ 177,540 ā $ 1,222 ā $ 357,543 Adjusted EBITDA ā 41,597 ā 13,081 ā (23,781) ā 30,897 Depreciation, depletion and amortization ā 20,882 ā 4,688 ā 227 ā 25,797 Accretion on asset retirement obligation ā 508 ā 4,419 ā 510 ā 5,437 Total assets ā 886,840 ā 196,957 ā 690,361 ā 1,774,158 Capital expenditures ā 76,021 ā 288 ā 449 ā 76,758 ā A reconciliation of net income (loss) to adjusted EBITDA and segment Adjusted EBITDA from coal operations follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā (In thousands) 2022 2021 ā Net income (loss) ā $ 271,872 ā $ (6,042) ā Provision for income taxes ā ā 455 ā ā 378 ā Interest expense, net ā 7,023 ā 3,800 ā Depreciation, depletion and amortization ā 32,210 ā 25,797 ā Accretion on asset retirement obligations ā 4,430 ā 5,437 ā Non-service related pension and postretirement benefit costs ā 873 ā 1,527 ā Net loss resulting from early retirement of debt ā ā 4,120 ā ā ā ā Adjusted EBITDA ā $ 320,983 ā $ 30,897 ā EBITDA from idled or otherwise disposed operations ā ā 2,390 ā ā 3,566 ā Selling, general and administrative expenses ā ā 26,648 ā ā 21,480 ā Other ā ā 9,482 ā ā (1,265) ā Segment Adjusted EBITDA from coal operations ā $ 359,503 ā $ 54,678 ā ā |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
Revenue Recognition | |
Revenue Recognition | 16. ASC 606-10-50-5 requires that entities disclose disaggregated revenue information in categories (such as type of goods or services, geography, market, type of contract, etc.) that depict how the nature, amount, timing, and uncertainty of revenue and cash flow are affected by economic factors. ASC 606-10-55-89 explains that the extent to which an entityās revenue is disaggregated depends on the facts and circumstances that pertain to the entityās contracts with customers and that some entities may need to use more than one type of category to meet the objective for disaggregating revenue. In general, the Companyās business segmentation is aligned according to the nature and economic characteristics of its coal and customer relationships and provides meaningful disaggregation of each segmentās results. The Company has further disaggregated revenue between North America and Seaborne revenues which depicts the pricing and contract differences between the two. North America revenue is characterized by contracts with a term of one year or longer and typically the pricing is fixed; whereas Seaborne revenue generally is derived by spot or short term contracts with an index-based pricing mechanism. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate, ā ā ā ā ā ā ā ā ā ā Other and ā ā ā ā ā MET ā Thermal ā Eliminations ā Consolidated ā (in thousands) Three Months Ended March 31, 2022 ā ā ā ā ā ā ā ā North America revenues ā $ 3,651 ā $ 305,563 ā $ ā ā $ 309,214 Seaborne revenues ā 468,520 ā 90,202 ā ā ā 558,722 ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 472,171 ā $ 395,765 ā $ ā ā $ 867,936 ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2021 ā ā ā ā ā ā ā ā North America revenues ā $ 24,835 ā $ 164,213 ā $ 1,222 ā $ 190,270 Seaborne revenues ā 153,946 ā 13,327 ā ā ā 167,273 ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 178,781 ā $ 177,540 ā $ 1,222 ā $ 357,543 ā ā ā ā ā ā ā ā ā ā ā ā ā ā As of March 31, 2022, the Company has outstanding performance obligations for the remainder of 2022 of 60.3 million tons of fixed price contracts and 6.5 million tons of variable price contracts. Additionally, the Company has outstanding performance obligations beyond 2022 of approximately 65.7 million tons of fixed price contracts and 4.3 million tons of variable price contracts. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | 17. The Company has operating and financing leases for mining equipment, office equipment, office space and transloading terminals with remaining lease terms ranging from less than one year to approximately five years. Some of these leases include both lease and non-lease components which are accounted for as a single lease component as the Company has elected the practical expedient to combine these components for all leases. As most of the leases do not provide an implicit rate, the Company calculated the āright-of-useā (āROUā) assets and lease liabilities using its secured incremental borrowing rate at the lease commencement date. As of March 31, 2022 and December 31, 2021, the Company had the following ROU assets and lease liabilities within the Companyās Condensed Consolidated Balance Sheets: ā ā ā ā ā ā ā ā ā ā March 31, December 31, ā ā ā ā 2022 ā 2021 Assets Balance Sheet Classification ā ā Operating lease right-of-use assets Other noncurrent assets ā $ 14,024 ā $ 14,646 Financing lease right-of-use assets Other noncurrent assets ā ā 3,891 ā ā 4,215 Total Lease Assets ā ā ā $ 17,915 ā $ 18,861 ā ā ā ā ā ā ā ā ā Liabilities ā Balance Sheet Classification ā ā ā ā ā ā Financing lease liabilities - current ā Accrued expenses and other current liabilities ā $ 931 ā $ 917 Operating lease liabilities - current ā Accrued expenses and other current liabilities ā ā 2,652 ā ā 2,606 Financing lease liabilities - long-term ā Other noncurrent liabilities ā ā 3,859 ā ā 4,097 Operating lease liabilities - long-term ā Other noncurrent liabilities ā ā 12,009 ā ā 12,713 ā ā ā ā $ 19,451 ā $ 20,333 ā ā ā ā ā ā ā ā ā Weighted average remaining lease term in years ā ā ā ā ā ā ā ā Operating leases ā ā ā ā 4.89 ā ā 5.14 Finance leases ā ā ā ā 3.00 ā ā 3.25 ā ā ā ā ā ā ā ā ā Weighted average discount rate ā ā ā ā ā ā ā ā Operating leases ā ā ā ā 5.5% ā ā 5.5% Finance leases ā ā ā ā 6.4% ā ā 6.4% ā Information related to leases was as follows: ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā ā ā 2022 ā 2021 ā ā ā ā ā ā ā ā Operating lease information: ā ā ā ā ā ā Operating lease cost ā ā $ 831 ā ā $ 846 Operating cash flows from operating leases ā 866 ā ā ā 860 ā ā ā ā ā ā ā ā ā Financing lease information: ā ā ā ā ā ā Financing lease cost ā ā $ 393 ā ā $ 393 Operating cash flows from financing leases ā ā 303 ā ā ā 303 ā ā ā ā Future minimum lease payments under non-cancellable leases as of March 31, 2022 were as follows: ā ā ā ā ā ā ā ā ā Operating ā ā Finance Year ā Leases ā ā Leases ā (In thousands) 2022 ā $ 2,522 ā ā $ 908 2023 ā 3,356 ā ā 1,210 2024 ā 3,200 ā ā 1,210 2025 ā 3,185 ā ā 2,111 2026 ā 3,080 ā ā ā Thereafter ā 1,532 ā ā ā Total minimum lease payments ā $ 16,875 ā ā $ 5,439 Less imputed interest ā (2,214) ā ā (649) ā ā ā ā ā ā ā ā Total lease liabilities ā $ 14,661 ā ā $ 4,790 ā |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Event. | |
Subsequent Event | ā 18. Subsequent Event ā On April 26, 2022, the Company announced the board approval of a quarterly fixed and variable dividend of $8.11 per share for stockholders of record on May 31, 2022, with a payment date of June 15, 2022. ā ā |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and U.S. Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2021 included in the Companyās Annual Report on Form 10-K for the year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss). | |
Schedule of Accumulated Other Comprehensive Income (Loss) | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pension, ā ā ā ā ā ā ā ā ā Postretirement ā ā ā ā Accumulated ā ā ā ā ā and Other Post- ā ā ā ā Other ā ā Derivative ā Employment ā Available-for- ā Comprehensive ā ā Instruments ā Benefits ā Sale Securities ā Income (loss) ā (In thousands) Balance at December 31, 2021 ā $ (1,763) ā $ 16,103 ā $ (182) $ 14,158 Unrealized gains (losses) ā 223 ā ā ā ā 223 Amounts reclassified from accumulated other comprehensive income (loss) ā 1,540 ā (522) ā 182 1,200 Balances at March 31, 2022 ā $ ā ā $ 15,581 ā $ ā $ 15,581 |
Schedule of Comprehensive Income Reclassifications | ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, Line Item in the Consolidated Details About AOCI Components 2022 2021 Statements of Operations ā ā ā ā ā ā ā ā ā ā Interest rate hedges ā (112) ā (624) ā ā Interest expense Interest rate hedges (ineffective portion) ā ā (1,428) ā ā ā ā Net loss resulting from early retirement of debt ā ā ā ā ā ā Provision for income taxes ā ā $ (1,540) ā $ (624) ā Net of tax ā ā ā ā ā ā ā ā ā ā Pension, postretirement and other post-employment benefits ā ā ā ā ā ā ā ā ā Amortization of actuarial gains (losses), net 1 ā $ 627 ā $ (591) ā Non-service related pension and postretirement benefit (costs) credits Amortization of prior service credits ā ā (105) ā ā 44 ā ā Non-service related pension and postretirement benefit (costs) credits ā ā ā ā ā ā Provision for income taxes ā ā $ 522 ā $ (547) ā Net of tax ā ā ā ā ā ā ā ā ā ā Available-for-sale securities 2 ā $ (182) ā $ 10 ā Interest and investment income ā ā ā ā ā ā Provision for income taxes ā ā $ (182) ā $ 10 ā Net of tax 1 2 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Inventories | ā ā ā ā ā ā ā ā ā March 31, December 31, ā 2022 2021 ā ā (In thousands) Coal ā $ 113,330 ā $ 75,653 Repair parts and supplies ā 90,667 ā 81,081 ā ā $ 203,997 ā $ 156,734 |
Investments in Available-for-_2
Investments in Available-for-Sale Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments in Available-for-Sale Securities | |
Available-for-sale Securities | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā March 31, 2022 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross ā ā Allowance ā ā ā ā ā ā ā ā Unrealized ā ā for - Credit ā Fair ā Cost Basis Gains Losses ā ā Losses Value ā ā (In thousands) Available-for-sale: ā ā ā ā ā ā ā U.S. government and agency securities ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā Corporate notes and bonds ā ā ā ā ā ā ā ā ā ā Total Investments ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2021 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Gross ā ā Allowance ā ā ā ā ā ā ā ā Unrealized ā ā for - Credit ā Fair ā Cost Basis Gains ā Losses ā ā Losses Value ā (In thousands) Available-for-sale: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā U.S. government and agency securities ā $ 6,074 ā $ ā ā $ (71) ā $ ā ā $ 6,003 Corporate notes and bonds ā 8,571 ā ā ā (111) ā ā ā 8,460 Total Investments ā $ 14,645 ā $ ā ā $ (182) ā $ ā ā $ 14,463 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivatives | |
Schedule of Price Risk Derivatives | ā ā ā ā (Tons in thousands) 2022 Coal sales 221 Coal purchases 11 |
Disclosure of Fair Value of Derivatives | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā March 31, 2022 ā ā ā December 31, 2021 ā ā Fair Value of Derivatives Asset ā Liability ā ā ā ā Asset ā Liability ā ā (In thousands) ā Derivative ā Derivative ā ā ā ā Derivative ā Derivative ā ā ā Derivatives Not Designated as Hedging Instruments ā ā ā ā ā ā Heating oil -- diesel purchases ā 8,547 ā ā ā ā 1,219 ā ā ā Coal -- risk management ā ā ā (12,838) ā ā 4,885 ā (2,203) ā Total ā $ 8,547 ā $ (12,838) ā ā $ 6,104 ā $ (2,203) ā Total derivatives ā $ 8,547 ā $ (12,838) ā ā $ 6,104 ā $ (2,203) ā Effect of counterparty netting ā ā ā ā ā ā (1,890) ā 1,890 ā Net derivatives as classified in the balance sheets ā $ 8,547 ā $ (12,838) ā $ (4,291) ā $ 4,214 ā $ (313) ā $ 3,901 ā ā ā ā ā ā ā ā ā ā ā March 31, December 31, ā ā ā ā 2022 ā 2021 Net derivatives as reflected on the balance sheets (in thousands) ā ā Heating Oil and coal Other current assets ā $ 8,547 ā $ 4,214 Coal Accrued expenses and other current liabilities ā (12,838) ā (313) ā ā ā ā $ (4,291) ā $ 3,901 |
Effects of Derivatives on Measures of Financial Performance | ā ā ā ā ā ā ā ā ā ā Gain (Loss) Recognized ā ā ā 2022 ā ā 2021 Coal risk management ā unrealized (3) $ (15,519) ā $ (528) ā ā ā ā ā ā ā Coal risk managementā realized (4) $ (9,074) ā $ 138 Heating oil ā diesel purchases (4) $ 6,801 ā $ ā Location in statement of operations: (1) ā Revenues (2) ā Cost of sales (3) ā Change in fair value of coal derivatives and coal trading activities, net (4) ā Other operating (income) expense, net ā |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses and Other Current Liabilities. | |
Schedule of Accrued Expenses and Other Current Liabilities | ā ā ā ā ā ā ā ā ā March 31, December 31, ā ā 2022 ā 2021 ā ā (In thousands) Payroll and employee benefits ā $ 44,901 ā $ 55,898 Taxes other than income taxes ā 64,061 ā 61,582 Interest ā 4,322 ā 3,439 Workersā compensation ā 16,290 ā 14,202 Asset retirement obligations ā 21,781 ā 21,781 Coal derivatives ā ā 12,838 ā ā 313 Other ā 15,007 ā 10,089 ā ā $ 179,200 ā $ 167,304 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt and Financing Arrangements | |
Schedule of Long-term debt | ā ā ā ā ā ā ā ā ā March 31, December 31, ā ā 2022 ā 2021 ā (In thousands) Term loan due 2024 ($8.8 million face value) ā $ 8,752 ā $ 280,353 Tax Exempt Bonds ($98.1 million face value) ā ā 98,075 ā ā 98,075 Convertible Debt ($155.3 million face value) ā ā 155,250 ā ā 121,617 Other ā 60,720 ā 70,836 Debt issuance costs ā (7,896) ā (10,208) ā ā ā 314,901 ā ā 560,673 Less: current maturities of debt ā 182,611 ā 223,050 Long-term debt ā $ 132,290 ā $ 337,623 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes | |
Schedule of Effective Income Tax Rate Reconciliation | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā 2022 2021 ā ā (In thousands) Income tax provision (benefit) at statutory rate ā $ 57,188 ā $ (1,189) Percentage depletion and other permanent items ā (10,185) ā 1,660 State taxes, net of effect of federal taxes ā 1,215 ā (292) Change in valuation allowance ā (48,133) ā 412 Current expense associated with uncertain tax positions ā ā 376 ā ā 361 Other, net ā (6) ā (574) Provision for income taxes ā $ 455 ā $ 378 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Summary of Financial Assets and Liabilities Accounted for at Fair Value | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā March 31, 2022 ā Total Level 1 Level 2 Level 3 ā ā (In thousands) Assets: ā ā ā ā Investments in marketable securities ā $ ā ā $ ā ā $ ā ā $ ā Derivatives ā 8,547 ā ā ā ā ā 8,547 Total assets ā $ 8,547 ā $ ā ā $ ā ā $ 8,547 Liabilities: ā ā ā ā ā ā ā ā Derivatives ā $ 13,121 ā $ ā ā $ 13,121 ā $ ā |
Summary of Change in the Fair Values of Financial Instruments Categorized as Level 3 | ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2022 ā Three Months Ended March 31, 2021 ā (In thousands) ā ā ā ā ā ā ā Balance, beginning of period ā $ 1,219 ā $ ā ā Realized and unrealized gains (losses) recognized in earnings, net ā 6,490 ā ā ā Purchases ā 998 ā ā ā Settlements ā (160) ā ā ā Ending balance ā $ 8,547 ā $ ā ā |
Earnings (Loss) per Common Sh_2
Earnings (Loss) per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings per Common Share | |
Schedule of Weighted Average Number of Shares | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā ā 2022 2021 ā (In Thousands) ā ā ā ā ā ā ā Net income (loss) attributable to common shares $ 271,872 $ (6,042) Adjustment of interest expense attributable to Convertible Notes ā ā 2,309 ā ā ā ā Diluted net income (loss) attributable to common stockholders ā ā 274,181 ā ā (6,042) ā ā ā ā ā ā ā ā ā Basic weighted average shares outstanding ā ā 15,448 ā ā 15,283 ā Effect of dilutive securities ā ā 1,651 ā ā ā ā Convertible Notes (a) ā ā 4,173 ā ā ā ā Diluted weighted average shares outstanding ā 21,271 ā 15,283 (a) Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted at the beginning of the year ended December 31, 2022. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. The Capped Call Transaction is anti-dilutive and is excluded from the calculation of diluted earnings per share. |
Workers' Compensation Expense (
Workers' Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Workers' Compensation Expense | |
Workers' compensation expense | Workersā compensation expense consists of the following components: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā ā 2022 2021 ā ā (In thousands) ā Self-insured occupational disease benefits: ā ā Service cost ā $ 1,498 ā $ 1,949 ā Interest cost (1) ā 1,152 ā 1,110 ā Net amortization (1) ā 157 ā 591 ā Total occupational disease ā $ 2,807 ā $ 3,650 ā Traumatic injury claims and assessments ā 2,056 ā 1,805 ā Total workersā compensation expense ā $ 4,863 ā $ 5,455 ā (1) In accordance with the adoption of ASU 2017-07, āCompensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,ā these costs are recorded within Nonoperating expenses in the Condensed Consolidated Statements of Operations on the line item āNon-service related pension and postretirement benefit costs.ā |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Employee Benefit Plans | |
Schedule of Pension Benefit Costs (Credits) | The following table details the components of pension benefit costs (credits): ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā 2022 2021 ā ā ā ā ā ā ā Interest cost (1) ā $ 1,093 ā $ 1,068 Expected return on plan assets (1) ā ā (1,432) ā ā (1,824) Pension settlement (1) ā ā ā ā Amortization of prior service costs (credits) (1) ā (53) ā (28) Net benefit credit ā $ (392) ā $ (784) ā The following table details the components of other postretirement benefit cost (credit): ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā 2022 2021 ā ā ā ā ā ā ā Service cost ā $ 71 ā $ 85 Interest cost (1) ā 501 ā 528 Amortization of other actuarial gains (1) ā (627) ā ā Net benefit (credit) cost ā $ (55) ā $ 613 (1) In accordance with the adoption of ASU 2017-07, āCompensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,ā these costs are recorded within Nonoperating expenses in the Condensed Consolidated Statement of Operations on the line item āNon-service related pension and postretirement benefit costs.ā |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information | |
Schedule of Operating Segment Results | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate, ā ā ā ā ā ā ā ā ā ā Other and ā ā ā (In thousands) ā MET ā Thermal ā Eliminations ā Consolidated ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2022 ā ā ā ā ā ā ā ā Revenues ā $ 472,171 ā $ 395,765 ā $ ā $ 867,936 Adjusted EBITDA ā 259,003 ā 100,500 ā (38,520) 320,983 Depreciation, depletion and amortization ā 26,952 ā 5,032 ā 226 32,210 Accretion on asset retirement obligation ā 553 ā 3,444 ā 433 4,430 Total assets ā 1,001,734 ā 227,009 ā 922,142 2,150,885 Capital expenditures ā 17,580 ā 4,002 ā 706 22,288 ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2021 ā ā ā ā ā ā ā Revenues ā $ 178,781 ā $ 177,540 ā $ 1,222 ā $ 357,543 Adjusted EBITDA ā 41,597 ā 13,081 ā (23,781) ā 30,897 Depreciation, depletion and amortization ā 20,882 ā 4,688 ā 227 ā 25,797 Accretion on asset retirement obligation ā 508 ā 4,419 ā 510 ā 5,437 Total assets ā 886,840 ā 196,957 ā 690,361 ā 1,774,158 Capital expenditures ā 76,021 ā 288 ā 449 ā 76,758 |
Schedule of Reconciliation of Net Income (Loss) to Adjusted EBITDA | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā (In thousands) 2022 2021 ā Net income (loss) ā $ 271,872 ā $ (6,042) ā Provision for income taxes ā ā 455 ā ā 378 ā Interest expense, net ā 7,023 ā 3,800 ā Depreciation, depletion and amortization ā 32,210 ā 25,797 ā Accretion on asset retirement obligations ā 4,430 ā 5,437 ā Non-service related pension and postretirement benefit costs ā 873 ā 1,527 ā Net loss resulting from early retirement of debt ā ā 4,120 ā ā ā ā Adjusted EBITDA ā $ 320,983 ā $ 30,897 ā EBITDA from idled or otherwise disposed operations ā ā 2,390 ā ā 3,566 ā Selling, general and administrative expenses ā ā 26,648 ā ā 21,480 ā Other ā ā 9,482 ā ā (1,265) ā Segment Adjusted EBITDA from coal operations ā $ 359,503 ā $ 54,678 ā |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue Recognition | |
Schedule of effects of revenue recognition | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Corporate, ā ā ā ā ā ā ā ā ā ā Other and ā ā ā ā ā MET ā Thermal ā Eliminations ā Consolidated ā (in thousands) Three Months Ended March 31, 2022 ā ā ā ā ā ā ā ā North America revenues ā $ 3,651 ā $ 305,563 ā $ ā ā $ 309,214 Seaborne revenues ā 468,520 ā 90,202 ā ā ā 558,722 ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 472,171 ā $ 395,765 ā $ ā ā $ 867,936 ā ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, 2021 ā ā ā ā ā ā ā ā North America revenues ā $ 24,835 ā $ 164,213 ā $ 1,222 ā $ 190,270 Seaborne revenues ā 153,946 ā 13,327 ā ā ā 167,273 ā ā ā ā ā ā ā ā ā ā ā ā ā Total revenues ā $ 178,781 ā $ 177,540 ā $ 1,222 ā $ 357,543 ā ā ā ā ā ā ā ā ā ā ā ā ā |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Schedule of right-of-use assets and lease liabilities | ā ā ā ā ā ā ā ā ā ā March 31, December 31, ā ā ā ā 2022 ā 2021 Assets Balance Sheet Classification ā ā Operating lease right-of-use assets Other noncurrent assets ā $ 14,024 ā $ 14,646 Financing lease right-of-use assets Other noncurrent assets ā ā 3,891 ā ā 4,215 Total Lease Assets ā ā ā $ 17,915 ā $ 18,861 ā ā ā ā ā ā ā ā ā Liabilities ā Balance Sheet Classification ā ā ā ā ā ā Financing lease liabilities - current ā Accrued expenses and other current liabilities ā $ 931 ā $ 917 Operating lease liabilities - current ā Accrued expenses and other current liabilities ā ā 2,652 ā ā 2,606 Financing lease liabilities - long-term ā Other noncurrent liabilities ā ā 3,859 ā ā 4,097 Operating lease liabilities - long-term ā Other noncurrent liabilities ā ā 12,009 ā ā 12,713 ā ā ā ā $ 19,451 ā $ 20,333 ā ā ā ā ā ā ā ā ā Weighted average remaining lease term in years ā ā ā ā ā ā ā ā Operating leases ā ā ā ā 4.89 ā ā 5.14 Finance leases ā ā ā ā 3.00 ā ā 3.25 ā ā ā ā ā ā ā ā ā Weighted average discount rate ā ā ā ā ā ā ā ā Operating leases ā ā ā ā 5.5% ā ā 5.5% Finance leases ā ā ā ā 6.4% ā ā 6.4% |
Schedule of Information Related to Leases | ā ā ā ā ā ā ā ā ā ā ā ā Three Months Ended March 31, ā ā ā 2022 ā 2021 ā ā ā ā ā ā ā ā Operating lease information: ā ā ā ā ā ā Operating lease cost ā ā $ 831 ā ā $ 846 Operating cash flows from operating leases ā 866 ā ā ā 860 ā ā ā ā ā ā ā ā ā Financing lease information: ā ā ā ā ā ā Financing lease cost ā ā $ 393 ā ā $ 393 Operating cash flows from financing leases ā ā 303 ā ā ā 303 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of March 31, 2022 were as follows: ā ā ā ā ā ā ā ā ā Operating ā ā Finance Year ā Leases ā ā Leases ā (In thousands) 2022 ā $ 2,522 ā ā $ 908 2023 ā 3,356 ā ā 1,210 2024 ā 3,200 ā ā 1,210 2025 ā 3,185 ā ā 2,111 2026 ā 3,080 ā ā ā Thereafter ā 1,532 ā ā ā Total minimum lease payments ā $ 16,875 ā ā $ 5,439 Less imputed interest ā (2,214) ā ā (649) ā ā ā ā ā ā ā ā Total lease liabilities ā $ 14,661 ā ā $ 4,790 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2020 | Nov. 03, 2020 | |
Statutory Accounting Practices | ||||
Debt instrument, face amount | $ 155.3 | $ 155.3 | $ 155.3 | |
Interest rate | 5.25% | 5.25% | ||
Equity components of the convertible notes | $ 40.8 | |||
Shares included in weighted-average diluted shares | 4,173 | 4,200 | ||
Paid-in Capital | ||||
Statutory Accounting Practices | ||||
Equity components of the convertible notes | $ 39.2 | $ 39.2 | ||
Retained Earnings | ||||
Statutory Accounting Practices | ||||
Equity components of the convertible notes | $ 6.7 | $ 6.7 | ||
ASU 2020-06 | ||||
Statutory Accounting Practices | ||||
Diluted earnings per share | $ 13.73 | |||
Decreased by diluted earnings per share | $ 0.84 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Income (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance | $ 683,866 |
Ending Balance | 924,252 |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance | 14,158 |
Unrealized gains (losses) | 223 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,200 |
Ending Balance | 15,581 |
Derivative instruments | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance | (1,763) |
Unrealized gains (losses) | 223 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,540 |
Pension, postretirement and other post-employment benefits | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance | 16,103 |
Amounts reclassified from accumulated other comprehensive income (loss) | (522) |
Ending Balance | 15,581 |
Available-for-sale securities | |
Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance | (182) |
Amounts reclassified from accumulated other comprehensive income (loss) | $ 182 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Schedule of Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) | ||
Interest expense | $ (7,047) | $ (4,128) |
Net loss resulting from early retirement of debt | 4,120 | |
Interest and investment income | 24 | 328 |
Provision for (benefit from) income taxes | (455) | (378) |
Net income (loss) | 271,872 | (6,042) |
Reclassification out of Accumulated Other Comprehensive Income | Derivative instruments | ||
Accumulated Other Comprehensive Income (Loss) | ||
Interest expense | (112) | (624) |
Net loss resulting from early retirement of debt | (1,428) | |
Provision for (benefit from) income taxes | 0 | 0 |
Net income (loss) | (1,540) | (624) |
Reclassification out of Accumulated Other Comprehensive Income | Pension, postretirement and other post-employment benefits | ||
Accumulated Other Comprehensive Income (Loss) | ||
Amortization of actuarial gains (losses), net | 627 | (591) |
Amortization of prior service credits | (105) | 44 |
Provision for (benefit from) income taxes | 0 | 0 |
Net income (loss) | 522 | (547) |
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Interest and investment income | (182) | 10 |
Provision for (benefit from) income taxes | 0 | 0 |
Net income (loss) | $ (182) | $ 10 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories | ||
Coal | $ 113,330 | $ 75,653 |
Repair parts and supplies | 90,667 | 81,081 |
Inventories | 203,997 | 156,734 |
Allowance for slow-moving and obsolete inventories | $ 2,300 | $ 2,300 |
Investments in Available-for-_3
Investments in Available-for-Sale Securities (Schedule of Investments) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale, Cost Basis | $ 14,645 |
Available-for-sale, Losses | (182) |
Available-for-sale, Fair Value | 14,463 |
U.S. government and agency securities | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale, Cost Basis | 6,074 |
Available-for-sale, Losses | (71) |
Available-for-sale, Fair Value | 6,003 |
Corporate notes and bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Available-for-sale, Cost Basis | 8,571 |
Available-for-sale, Losses | (111) |
Available-for-sale, Fair Value | $ 8,460 |
Investments in Available-for-_4
Investments in Available-for-Sale Securities (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments in Available-for-Sale Securities | ||
Unrealized losses owned for less than 12 months | $ 0 | $ 0 |
Unrealized losses owed for over a year | $ 0 | $ 14.5 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - Not Designated as Hedging Instrument gal in Millions | 3 Months Ended |
Mar. 31, 2022$ / Optiongal | |
Call Option | Heating Oil | |
Derivative [Line Items] | |
Quantities under derivative contracts (in gallons) | 12 |
Derivative, average price risk option strike price (in used per gallon) | $ / Option | 2.61 |
Diesel Purchases | Minimum | |
Derivative [Line Items] | |
Diesel fuel purchased annually (in gallons) | 40 |
Diesel Purchases | Maximum | |
Derivative [Line Items] | |
Diesel fuel purchased annually (in gallons) | 45 |
Derivatives (Schedule of Price
Derivatives (Schedule of Price Risk Derivatives) (Details) - 2022 T in Thousands | 3 Months Ended |
Mar. 31, 2022T | |
Coal sales | |
Derivative [Line Items] | |
Derivatives held (in tons) | 221 |
Coal purchases | |
Derivative [Line Items] | |
Derivatives held (in tons) | 11 |
Derivatives (Disclosure Of Fair
Derivatives (Disclosure Of Fair Value Of Derivatives) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative Assets | $ 8,547 | $ 6,104 |
Derivative Liabilities | (12,838) | (2,203) |
Effect of counterparty netting in derivative assets | (1,890) | |
Effect of counterparty netting in derivative liabilities | 1,890 | |
Derivative Asset | 8,547 | 4,214 |
Derivative Liability | (12,838) | (313) |
Net derivatives as classified in the balance sheets | (4,291) | 3,901 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 8,547 | 6,104 |
Derivative Liabilities | (12,838) | (2,203) |
Coal Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 4,885 | |
Derivative Liabilities | (12,838) | (2,203) |
Heating oil - diesel purchases | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | $ 8,547 | 1,219 |
Derivative Liabilities | $ 0 |
Derivatives (Net Derivatives As
Derivatives (Net Derivatives As Reflected On The Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ (4,291) | $ 3,901 |
Current asset representing cash collateral posted | 2,600 | 2,800 |
Heating oil and coal | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | 8,547 | 4,214 |
Coal Contract | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net derivatives as classified in the balance sheet | $ (12,838) | $ (313) |
Derivatives (Effects Of Derivat
Derivatives (Effects Of Derivatives On Measures Of Financial Performance) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Coal Contract | Change in fair value of coal derivatives and coal trading activities, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized Gain (Loss) on Derivatives | $ (15,519) | $ (528) |
Coal Contract | Other operating (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized Gain (Loss) on Derivatives | (9,074) | $ 138 |
Heating oil - diesel purchases | Other operating (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Heating oil realized and unrealized gains and losses | $ 6,801 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Expenses and Other Current Liabilities. | ||
Payroll and employee benefits | $ 44,901 | $ 55,898 |
Taxes other than income taxes | 64,061 | 61,582 |
Interest | 4,322 | 3,439 |
Workers' compensation | 16,290 | 14,202 |
Asset retirement obligations | 21,781 | 21,781 |
Coal derivatives | 12,838 | 313 |
Other | 15,007 | 10,089 |
Accrued expenses and other current liabilities | $ 179,200 | $ 167,304 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements (Long term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2020 | Nov. 03, 2020 |
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ (7,896) | $ (10,208) | ||
Total | 314,901 | 560,673 | ||
Less: current maturities of debt | 182,611 | 223,050 | ||
Long-term debt | 132,290 | 337,623 | ||
Debt instrument, face amount | 155,300 | $ 155,300 | $ 155,300 | |
Term loan due 2024 ($8.8 million face value) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 8,752 | 280,353 | ||
Debt instrument, face amount | 8,800 | 8,800 | ||
Tax Exempt Bonds | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 98,075 | 98,075 | ||
Debt instrument, face amount | 98,100 | 98,100 | ||
Convertible Debt. | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 155,250 | 121,617 | ||
Debt instrument, face amount | 155,300 | 155,300 | ||
Other Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 60,720 | $ 70,836 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements (Company Debt Narrative) (Details) $ / shares in Units, shares in Millions | Jul. 29, 2021USD ($)installment | Nov. 03, 2020USD ($)$ / sharesshares | Oct. 29, 2020$ / shares | Sep. 30, 2020USD ($) | Sep. 29, 2020USD ($) | Sep. 28, 2020USD ($) | Jul. 02, 2020USD ($) | Mar. 04, 2020USD ($)installment | Mar. 07, 2017USD ($) | Mar. 31, 2022USD ($)item$ / shares | Mar. 31, 2021USD ($) | Dec. 31, 2018 | Dec. 31, 2021USD ($) | Mar. 04, 2021USD ($) | Nov. 30, 2020USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Term loan, face value | $ 155,300,000 | $ 155,300,000 | $ 155,300,000 | ||||||||||||
Letters of credit outstanding | 95,300,000 | ||||||||||||||
Interest rate | 5.25% | 5.25% | |||||||||||||
Restricted Cash | 1,100,000 | $ 18,962,000 | $ 1,101,000 | ||||||||||||
Derivative liabilities | 12,838,000 | 2,203,000 | |||||||||||||
Debt financing costs | 1,194,000 | ||||||||||||||
Equity components liability of the convertible notes | 114,500,000 | ||||||||||||||
Equity components of the convertible notes | 40,800,000 | ||||||||||||||
Long-term Debt | 314,901,000 | 560,673,000 | |||||||||||||
Unamortized Debt Issuance Expense | 4,400,000 | ||||||||||||||
Paid-in Capital | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Equity components of the convertible notes | $ 39,200,000 | $ 39,200,000 | |||||||||||||
Retained Earnings | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Equity components of the convertible notes | 6,700,000 | $ 6,700,000 | |||||||||||||
New Term Loan Debt Facility | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Term loan, face value | $ 300,000,000 | ||||||||||||||
Percentage of face amount | 99.50 | ||||||||||||||
Quarterly principal amortization payments | $ 750,000 | ||||||||||||||
Term loan repaid | 271,500,000 | ||||||||||||||
Amount of voting equity interests of domestic subsidiaries guaranteed (percent) | 100 | ||||||||||||||
Amount of voting equity interests of foreign owned subsidiaries guaranteed (percent) | 65 | ||||||||||||||
Long-term Debt | 8,800,000 | ||||||||||||||
Loss on Early Repayment of Debt | 4,100,000 | ||||||||||||||
New Term Loan Debt Facility | Line of Credit | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin on interest rate | 2.75% | ||||||||||||||
New Term Loan Debt Facility | Line of Credit | LIBOR | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin on interest rate | 1.00% | ||||||||||||||
New Term Loan Debt Facility | Line of Credit | Base Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin on interest rate | 1.75% | ||||||||||||||
Interest Rate Swap | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Derivative liabilities | 300,000 | ||||||||||||||
Gain (loss) on interest rate swap | 100,000 | ||||||||||||||
Amount reclassified from other comprehensive income to expense | 1,400,000 | ||||||||||||||
Accounts Receivable Securitization Facility | Line of Credit | Secured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Current borrowing capacity | 42,400,000 | ||||||||||||||
Letters of credit outstanding | 67,600,000 | ||||||||||||||
Accounts Receivable Securitization Facility | Regions Bank | Line of Credit | Secured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Current borrowing capacity | $ 110,000,000 | $ 160,000,000 | |||||||||||||
Inventory-Based Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Covenant amount | 22,300,000 | ||||||||||||||
Inventory-Based Revolving Credit Facility | Regions Bank | Line of Credit | Secured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Term loan, face value | $ 50,000,000 | ||||||||||||||
Letters of credit outstanding | 27,700,000 | ||||||||||||||
Borrowing base percentage, coal inventory | 85 | ||||||||||||||
Borrowing base percentage, parts and supplies inventory | 85 | ||||||||||||||
Borrowing base, percentage of clause | 35 | ||||||||||||||
Percent of eligible cash | 100.00% | ||||||||||||||
Covenant amount | $ 100,000,000 | $ 100,000,000 | $ 175,000,000 | ||||||||||||
Equipment financing arrangement | Secured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Term loan, face value | $ 23,500,000 | $ 53,600,000 | |||||||||||||
Number of monthly payments | installment | 42 | 48 | |||||||||||||
Interest rate | 7.35% | 6.34% | |||||||||||||
Tax Exempt Bonds | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Term loan, face value | $ 98,100,000 | $ 98,100,000 | |||||||||||||
Series 2020 Tax Exempt Bonds | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Term loan, face value | $ 53,100,000 | ||||||||||||||
Interest rate | 5.00% | ||||||||||||||
Mandatory tender percentage | 100.00% | ||||||||||||||
Series 2021 Tax Exempt Bonds | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Term loan, face value | $ 45,000,000 | ||||||||||||||
Interest rate | 4.125% | ||||||||||||||
Convertible Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Term loan, face value | $ 155,300,000 | ||||||||||||||
Interest rate | 5.25% | ||||||||||||||
Net proceeds of convertible debt | $ 132,700,000 | ||||||||||||||
Initial Conversion ratio | 0.267917 | ||||||||||||||
Initial Conversion price (in dollars per share) | $ / shares | $ 37.325 | $ 37.126 | |||||||||||||
Stock price trigger (as a percent) | 130.00% | ||||||||||||||
Trading days, number | item | 20 | ||||||||||||||
Convertible Notes exceeded the principal amount | $ 419,200,000 | ||||||||||||||
Consecutive trading days, period | item | 30 | ||||||||||||||
Total interest expense | $ 2,300,000 | 3,700,000 | |||||||||||||
Contractual interest coupon | 2,000,000 | 2,000,000 | |||||||||||||
Amortization of debt discount | $ 300,000 | $ 1,700,000 | |||||||||||||
Deferred Offering Costs | $ 5,100,000 | ||||||||||||||
Capped Call Transactions | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Initial strike price (in dollars per share) | $ / shares | $ 37.325 | ||||||||||||||
Number of underlying shares | shares | 4.2 | ||||||||||||||
Cap price | $ / shares | $ 52.255 | ||||||||||||||
Capped call, transaction cost | $ 17,500,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Taxes | ||
Income tax provision (benefit) at statutory rate | $ 57,188 | $ (1,189) |
Percentage depletion and other permanent items | (10,185) | 1,660 |
State taxes, net of effect of federal taxes | 1,215 | (292) |
Change in valuation allowance | (48,133) | 412 |
Current expense associated with uncertain tax positions | 376 | 361 |
Other, net | (6) | (574) |
Provision for income taxes | $ 455 | $ 378 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Investments in marketable securities | $ 14,463 | |
Derivatives | $ 8,547 | |
Total assets | 8,547 | |
Liabilities: | ||
Derivatives | 13,121 | |
Level 1 | ||
Assets: | ||
Investments in marketable securities | 0 | |
Derivatives | 0 | |
Total assets | 0 | |
Liabilities: | ||
Derivatives | 0 | |
Level 2 | ||
Liabilities: | ||
Derivatives | 13,121 | |
Level 3 | ||
Assets: | ||
Investments in marketable securities | 0 | |
Derivatives | 8,547 | |
Total assets | 8,547 | |
Liabilities: | ||
Derivatives | $ 0 |
Fair Value Measurements (Change
Fair Value Measurements (Change In The Fair Values Of Financial Instruments Categorized As Level 3) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, beginning of period | $ 1,219 |
Realized and unrealized gains (losses) recognized in earnings, net | (6,490) |
Purchases | 998 |
Settlements | (160) |
Ending balance | $ 8,547 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurements | ||
Fair value of debt, including amounts classified as current | $ 741.9 | $ 819.5 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Earnings per Common Share | |||
Antidilutive Securities excluded | 1,158,000 | ||
Net income (loss) attributable to common shares | $ 271,872 | $ (6,042) | |
Adjustment of interest expense attributable to Convertible Notes | 2,309 | ||
Diluted net income (loss) attributable to common stockholders | $ 274,181 | $ (6,042) | |
Weighted average shares outstanding: | |||
Basic weighted average shares outstanding (in shares) | 15,448,000 | 15,283,000 | |
Effect of dilutive securities (in shares) | 1,651,000 | ||
Convertible Notes | 4,173,000 | 4,200,000 | |
Diluted weighted average shares outstanding (in shares) | 21,271,000 | 15,283,000 |
Workers' Compensation Expense_2
Workers' Compensation Expense (Narrative) (Details) $ in Millions | 1 Months Ended |
Feb. 29, 2020USD ($) | |
Workers' Compensation Expense | |
Additional collateral amount | $ 71.1 |
Number of days required to submit additional collateral to retain self-insurance status | 30 days |
Workers' Compensation Expense_3
Workers' Compensation Expense (Worker's Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Total workers' compensation expense | ||
Accrued Workers' Compensation [Line Items] | ||
Total workers' compensation expense | $ 4,863 | $ 5,455 |
Occupational disease | ||
Accrued Workers' Compensation [Line Items] | ||
Service cost | 1,498 | 1,949 |
Interest cost | 1,152 | 1,110 |
Net amortization | (157) | (591) |
Net benefit (credit) cost | 2,807 | 3,650 |
Traumatic injury claims and assessments | ||
Accrued Workers' Compensation [Line Items] | ||
Traumatic injury claims and assessments | $ 2,056 | $ 1,805 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined benefit pension plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1,093 | $ 1,068 |
Expected return on plan assets | (1,432) | (1,824) |
Pension settlement | 0 | 0 |
Amortization of prior service credits | (53) | (28) |
Net benefit (credit) cost | (392) | (784) |
Other postretirement benefits plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 71 | 85 |
Interest cost | 501 | 528 |
Amortization of other actuarial losses (gains) | (627) | 0 |
Net benefit (credit) cost | $ (55) | $ 613 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Surety Bonds Outstanding | $ 586,400 | |
Letters of credit outstanding | 95,300 | |
Cash collateral for surety bond | 5,600 | |
Contribution to fund asset retirement obligations | 20,000 | |
Long-term asset retirement obligation | 40,000 | $ 20,000 |
Asset retirement obligations | ||
Loss Contingencies [Line Items] | ||
Reclamation-related obligations | 215,500 | |
Surety Bonds Outstanding | 500,300 | |
Letters of credit outstanding | 20,000 | |
Cash collateral for surety bond | 600 | |
Contribution to fund asset retirement obligations | 20,000 | |
Long-term asset retirement obligation | $ 40,000 |
Segment Information (Schedule O
Segment Information (Schedule Of Operating Segment Results) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)item | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of distinct lines of business | item | 2 | ||
Revenues | $ 867,936 | $ 357,543 | |
Adjusted EBITDA | 320,983 | 30,897 | |
Depreciation, depletion and amortization | 32,210 | 25,797 | |
Accretion on asset retirement obligations | 4,430 | 5,437 | |
Total assets | 2,150,885 | 1,774,158 | $ 2,117,160 |
Capital expenditures | 22,288 | 76,758 | |
Operating Segments | MET | |||
Segment Reporting Information [Line Items] | |||
Revenues | 472,171 | 178,781 | |
Adjusted EBITDA | 259,003 | 41,597 | |
Depreciation, depletion and amortization | 26,952 | 20,882 | |
Accretion on asset retirement obligations | 553 | 508 | |
Total assets | 1,001,734 | 886,840 | |
Capital expenditures | 17,580 | 76,021 | |
Operating Segments | Thermal | |||
Segment Reporting Information [Line Items] | |||
Revenues | 395,765 | 177,540 | |
Adjusted EBITDA | 100,500 | 13,081 | |
Depreciation, depletion and amortization | 5,032 | 4,688 | |
Accretion on asset retirement obligations | 3,444 | 4,419 | |
Total assets | 227,009 | 196,957 | |
Capital expenditures | 4,002 | 288 | |
Corporate, Other and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 1,222 | |
Adjusted EBITDA | (38,520) | (23,781) | |
Depreciation, depletion and amortization | 226 | 227 | |
Accretion on asset retirement obligations | 433 | 510 | |
Total assets | 922,142 | 690,361 | |
Capital expenditures | $ 706 | $ 449 |
Segment Information (Reconcilia
Segment Information (Reconciliation Segment Income To Net Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Information | ||
Net income (loss) | $ 271,872 | $ (6,042) |
Provision for income taxes | 455 | 378 |
Interest expense, net | 7,023 | 3,800 |
Depreciation, depletion and amortization | 32,210 | 25,797 |
Accretion on asset retirement obligations | 4,430 | 5,437 |
Non-service related pension and postretirement benefit costs | 873 | 1,527 |
Net loss resulting from early retirement of debt | 4,120 | |
Adjusted EBITDA | 320,983 | 30,897 |
EBITDA from idled or otherwise disposed operations | 2,390 | 3,566 |
Selling, general and administrative expenses | 26,648 | 21,480 |
Other | 9,482 | (1,265) |
Segment Adjusted EBITDA from coal operations | $ 359,503 | $ 54,678 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 867,936 | $ 357,543 |
North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 309,214 | 190,270 |
Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 558,722 | 167,273 |
Operating Segments | MET | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 472,171 | 178,781 |
Operating Segments | MET | North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,651 | 24,835 |
Operating Segments | MET | Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 468,520 | 153,946 |
Operating Segments | Thermal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 395,765 | 177,540 |
Operating Segments | Thermal | North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 305,563 | 164,213 |
Operating Segments | Thermal | Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 90,202 | 13,327 |
Corporate, Other and Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 1,222 |
Corporate, Other and Eliminations | North America revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 1,222 |
Corporate, Other and Eliminations | Seaborne revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 | $ 0 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) T in Millions | Mar. 31, 2022T |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, fixed price contracts (in tons) | 60.3 |
Remaining performance obligation, variable price contracts (in tons) | 6.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, fixed price contracts (in tons) | 65.7 |
Remaining performance obligation, variable price contracts (in tons) | 4.3 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Mar. 31, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease terms | 5 years |
Leases (Lease Assets and Liabil
Leases (Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease right-of-use assets | $ 14,024 | $ 14,646 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Financing lease right-of-use assets | $ 3,891 | $ 4,215 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Total Lease Assets | $ 17,915 | $ 18,861 |
Liabilities | ||
Financing lease liabilities - current | $ 931 | $ 917 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating lease liabilities - current | $ 2,652 | $ 2,606 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Financing lease liabilities - long-term | $ 3,859 | $ 4,097 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Operating lease liabilities - long-term | $ 12,009 | $ 12,713 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total Lease Liabilities | $ 19,451 | $ 20,333 |
Leases (Weighted Average Lease
Leases (Weighted Average Lease Term And Discount Rate) (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Weighted average remaining lease term in years | 4 years 10 months 20 days | 5 years 1 month 20 days |
Weighted average remaining lease term in years | 3 years | 3 years 3 months |
Weighted average discount rate | 5.50% | 5.50% |
Weighted average discount rate | 6.40% | 6.40% |
Leases (Other Information Relat
Leases (Other Information Related to Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease information: | ||
Operating lease cost | $ 831 | $ 846 |
Operating cash flows from operating leases | 866 | 860 |
Financing lease cost | 393 | 393 |
Operating cash flows from financing leases | $ 303 | $ 303 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Operating Leases | |
2022 | $ 2,522 |
2023 | 3,356 |
2024 | 3,200 |
2025 | 3,185 |
2026 | 3,080 |
Thereafter | 1,532 |
Total minimum lease payments | 16,875 |
Less imputed interest | (2,214) |
Total operating lease liability | 14,661 |
Finance Leases | |
2022 | 908 |
2023 | 1,210 |
2024 | 1,210 |
2025 | 2,111 |
Total minimum lease payments | 5,439 |
Less imputed interest | (649) |
Total finance lease liability | $ 4,790 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 26, 2022$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Quarterly dividend | $ 8.11 |