Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 12, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38061 | ||
Entity Registrant Name | Warrior Met Coal, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-0706839 | ||
Entity Address, Address Line One | 16243 Highway 216 | ||
Entity Address, City or Town | Brookwood | ||
Entity Address, State or Province | AL | ||
Entity Address, Postal Zip Code | 35444 | ||
City Area Code | 205 | ||
Local Phone Number | 554-6150 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,000 | ||
Entity Common Stock, Shares Outstanding (in shares) | 52,255,168 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2021 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days of December 31, 2023, are incorporated by reference into Part III of this report for the year ended December 31, 2023. | ||
Entity Central Index key | 0001691303 | ||
Document Fiscal Year Focus | 2023 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | HCC | ||
Security Exchange Name | NYSE | ||
Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Rights to Purchase Series A Junior Participating Preferred Stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
No Trading Symbol Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Birmingham, Alabama |
Auditor Firm ID | 42 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 738,197 | $ 829,480 |
Short-term investments | 9,030 | 8,608 |
Trade accounts receivable | 98,225 | 151,826 |
Other receivables | 4,379 | 3,637 |
Income tax receivable | 7,833 | 0 |
Inventories, net | 183,949 | 154,039 |
Prepaid expenses and other | 27,553 | 25,519 |
Total current assets | 1,069,166 | 1,173,109 |
Mineral interests, net | 80,442 | 88,636 |
Property, plant and equipment, net | 1,179,609 | 738,947 |
Deferred income taxes | 5,854 | 7,572 |
Other long-term assets | 21,987 | 19,831 |
Total assets | 2,357,058 | 2,028,095 |
Current liabilities: | ||
Accounts payable | 36,245 | 39,026 |
Accrued expenses | 81,612 | 77,435 |
Asset retirement obligations | 12,500 | 3,900 |
Short-term financing lease obligations | 11,463 | 24,089 |
Other current liabilities | 5,850 | 8,674 |
Total current liabilities | 147,670 | 153,124 |
Long-term debt | 153,023 | 302,588 |
Asset retirement obligations | 71,666 | 64,581 |
Black lung obligations | 26,966 | 27,407 |
Financing lease obligations | 8,756 | 9,002 |
Deferred income taxes | 74,531 | 23,378 |
Other long-term liabilities | 0 | 500 |
Total liabilities | 482,612 | 580,580 |
Stockholders’ Equity: | ||
Common stock, $0.01 par value per share (Authorized -140,000,000 shares, 54,240,764 issued and 52,018,923 outstanding as of December 31, 2023 and 53,875,409 issued and 51,653,568 outstanding as of December 31, 2022) | 542 | 539 |
Preferred stock, $0.01 par value per share (10,000,000 shares authorized, no shares issued and outstanding) | 0 | 0 |
Treasury stock, at cost (2,221,841 shares as of December 31, 2023, and December 31, 2022) | (50,576) | (50,576) |
Additional paid in capital | 279,332 | 269,956 |
Retained earnings | 1,645,148 | 1,227,596 |
Total stockholders’ equity | 1,874,446 | 1,447,515 |
Total liabilities and stockholders’ equity | $ 2,357,058 | $ 2,028,095 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock shares issued (in shares) | 54,240,764 | 53,875,409 |
Common stock shares outstanding (in shares) | 52,018,923 | 51,653,568 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 2,221,841 | 2,221,841 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Total revenues | $ 1,676,625 | $ 1,738,738 | $ 1,059,216 |
Costs and expenses: | |||
Cost of sales (exclusive of items shown separately below) | 910,269 | 710,605 | 554,282 |
Cost of other revenues (exclusive of items shown separately below) | 37,486 | 27,047 | 28,899 |
Depreciation and depletion | 127,356 | 115,279 | 141,418 |
Selling, general and administrative | 51,817 | 48,791 | 35,593 |
Business interruption | 8,291 | 23,455 | 21,372 |
Idle mine | 0 | 12,137 | 33,899 |
Total costs and expenses | 1,135,219 | 937,314 | 815,463 |
Operating income | 541,406 | 801,424 | 243,753 |
Interest expense | (17,960) | (31,433) | (36,500) |
Interest income | 40,699 | 12,438 | 1,111 |
Loss on early extinguishment of debt | (11,699) | 0 | (9,678) |
Other (expense) income | (1,027) | 675 | 1,291 |
Income before income taxes | 551,419 | 783,104 | 199,977 |
Income tax expense | 72,790 | 141,806 | 49,096 |
Net income | $ 478,629 | $ 641,298 | $ 150,881 |
Basic and diluted net income per share: | |||
Net income per share—basic (in dollars per share) | $ 9.21 | $ 12.42 | $ 2.94 |
Net income per share—diluted (in dollars per share) | $ 9.20 | $ 12.40 | $ 2.93 |
Weighted average number of shares outstanding—basic (in shares) | 51,973 | 51,622 | 51,382 |
Weighted average number of shares outstanding— diluted (in shares) | 52,045 | 51,715 | 51,445 |
Dividends per share (in dollars per share) | $ 1.16 | $ 1.54 | $ 0.20 |
Sales | |||
Revenues: | |||
Total revenues | $ 1,647,992 | $ 1,707,579 | $ 1,028,283 |
Other revenues | |||
Revenues: | |||
Total revenues | $ 28,633 | $ 31,159 | $ 30,933 |
STATEMENTS OF CHANGES IN EQUITY
STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings |
Balance at beginning of period at Dec. 31, 2020 | $ 725,241 | $ 534 | $ 0 | $ (50,576) | $ 249,746 | $ 525,537 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 150,881 | 150,881 | ||||
Dividends paid | (10,455) | (10,455) | ||||
Stock compensation | 9,355 | 9,355 | ||||
Other | (3,039) | 3 | (3,042) | |||
Balance at end of period at Dec. 31, 2021 | 871,983 | 537 | 0 | (50,576) | 256,059 | 665,963 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 641,298 | 641,298 | ||||
Dividends paid | (79,665) | (79,665) | ||||
Stock compensation | 17,621 | 17,621 | ||||
Other | (3,722) | 2 | (3,724) | |||
Balance at end of period at Dec. 31, 2022 | 1,447,515 | 539 | 0 | (50,576) | 269,956 | 1,227,596 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 478,629 | 478,629 | ||||
Dividends paid | (61,077) | (61,077) | ||||
Stock compensation | 18,300 | 18,300 | ||||
Other | (8,921) | 3 | (8,924) | |||
Balance at end of period at Dec. 31, 2023 | $ 1,874,446 | $ 542 | $ 0 | $ (50,576) | $ 279,332 | $ 1,645,148 |
STATEMENTS OF CHANGES IN EQUI_2
STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share (in dollars per share) | $ 1.16 | $ 1.54 | $ 0.20 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||
Net income | $ 478,629,000 | $ 641,298,000 | $ 150,881,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and depletion | 127,356,000 | 115,279,000 | 141,418,000 |
Deferred income tax expense | 52,871,000 | 141,806,000 | 49,096,000 |
Stock-based compensation expense | 18,207,000 | 17,621,000 | 9,370,000 |
Mark-to-market loss on gas hedges | 0 | 4,043,000 | 1,595,000 |
Amortization of debt issuance costs and debt discount, net | 2,094,000 | 3,165,000 | 1,741,000 |
Accretion and valuation adjustment of ARO | 4,535,000 | 1,941,000 | 3,427,000 |
Loss on early extinguishment of debt | 11,699,000 | 0 | 9,678,000 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 53,601,000 | (29,676,000) | (38,852,000) |
Other receivables | 1,187,000 | 7,225,000 | (2,849,000) |
Income tax receivable | (7,833,000) | 0 | 0 |
Inventories | (30,785,000) | (79,845,000) | 45,693,000 |
Prepaid expenses and other current assets | (2,034,000) | 888,000 | 11,387,000 |
Accounts payable | 215,000 | (5,442,000) | (20,322,000) |
Accrued expenses and other current liabilities | (8,645,000) | 22,803,000 | (16,444,000) |
Other | 11,000 | 798,000 | 5,724,000 |
Net cash provided by operating activities | 701,108,000 | 841,904,000 | 351,543,000 |
INVESTING ACTIVITIES | |||
Purchase of property, plant and equipment | (491,674,000) | (205,242,000) | (57,893,000) |
Deferred mine development costs | (33,112,000) | (48,935,000) | (13,462,000) |
Acquisition of leased mineral rights | 0 | (3,500,000) | 0 |
Acquisitions, net of cash acquired | (2,421,000) | 2,533,000 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 | 209,000 |
Net cash used in investing activities | (527,207,000) | (255,144,000) | (71,146,000) |
FINANCING ACTIVITIES | |||
Dividends paid | (61,077,000) | (79,665,000) | (10,455,000) |
Proceeds from issuance of debt | 0 | 0 | 347,701,000 |
Repayments under ABL Facility | 0 | 0 | (40,000,000) |
Retirements of debt | (162,358,000) | (39,382,000) | (350,304,000) |
Principal repayments of financing lease obligations | (32,330,000) | (30,348,000) | (29,022,000) |
Debt issuance costs paid | 0 | 0 | (11,352,000) |
Other | (9,419,000) | (3,724,000) | (3,042,000) |
Net cash used in financing activities | (265,184,000) | (153,119,000) | (96,474,000) |
Net (decrease) increase in cash and cash equivalents | (91,283,000) | 433,641,000 | 183,923,000 |
Cash and cash equivalents at beginning of period | 829,480,000 | 395,839,000 | 211,916,000 |
Cash and cash equivalents at end of period | 738,197,000 | 829,480,000 | 395,839,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest paid, net of capitalized interest | 23,970,000 | 27,810,000 | 36,359,000 |
Cash paid for income taxes | 27,004,000 | 0 | 0 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Financing leases - equipment | $ 11,312,000 | $ 8,150,000 | $ 46,961,000 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Description of the Business Warrior Met Coal, Inc. is a U.S.-based, environmentally and socially minded supplier to the global steel industry. The Company is dedicated entirely to mining non-thermal steelmaking coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia. The Company is a large-scale, low-cost producer and exporter of premium steelmaking coal, also known as hard-coking coal ("HCC"), operating highly efficient longwall operations in its underground mines based in Alabama. The HCC that the Company produces from the Blue Creek coal seam contains very low sulfur and has strong coking properties. The Company also generates ancillary revenues from the sale of natural gas extracted as a byproduct from the underground coal mines and royalty revenues from leased properties. Basis of Presentation The accompanying financial statements include the accounts of Warrior Met Coal, Inc and its subsidiaries (the "Company"). All significant intercompany transactions and balances have been eliminated in consolidation. Collective Bargaining Agreement The Company's Collective Bargaining Agreement (“CBA”) contract with the United Mine Workers of America (“UMWA”) expired on April 1, 2021 and the labor union initiated a strike after an agreement on a new contract was not reached. As a result of the strike, the Company initially idled Mine No. 4 and scaled back operations at Mine No. 7. In the first quarter of 2022, the Company restarted operations at Mine No. 4. Due to the reduced operations at Mine No. 4 and Mine No. 7, the Company incurred idle mine expenses of $12.1 million and $33.9 million for the years ended December 31, 2022 and December 31, 2021, respectively. These expenses are reported separately in the Statements of Operations and represent expenses incurred while the respective mine is idled or operating below normal capacity, such as electricity, insurance and maintenance labor. The Company incurred business interruption expenses of approximately $8.3 million, $23.5 million and $21.4 million for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 respectively, which represent non-recurring expenses that were directly attributable to the labor strike for incremental safety and security, labor negotiations and other expenses. These expenses are also presented separately in the Statements of Operations. On February 16, 2023, the labor union representing certain of the Company's hourly employees announced that they were ending the strike and made an unconditional offer to return to work. The return-to-work process for eligible employees who wished to return to work which began in February has been completed. The Company continues to engage in good faith efforts with the labor union to reach an agreement on a new contract. Acquisitions On March 31, 2023, the Company acquired the remaining ownership interest in gas wells owned by an independent third party for $2.4 million. The purchase consideration has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The acquisition is not deemed to be material to the financial statements. On March 1, 2022, the Company acquired the remaining 50% interest in Black Warrior Methane and Black Warrior Transmission for $0.3 million. The purchase consideration has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The acquisition is not deemed to be material to the financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The Company prepares its financial statements in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Due to the inherent uncertainty involved in making estimates, actual results could differ from those estimates. Concentrations of Credit Risk and Major Customers The Company’s principal line of business is mining and marketing steelmaking coal to foreign steel producers. For the year ended December 31, 2023, approximately 98.3% of sales were derived from coal shipments to customers, located primarily in Europe, South America and Asia. At December 31, 2023 approximately 97.8% of trade receivables were related to these customers. For the year ended December 31, 2023, the Company's geographic customer mix was 48% in Europe, 29% in Asia, 21% in South America and 2% in the U.S. During the year ended December 31, 2023, E-Commodities Holdings Private Limited, Salzgitter Flachstahl GMBH and Exiros BV Sucursal Uruguay accounted for $246.4 million, or 14.9%, $205.7 million, or 12.4%, and $195.3 million, or 11.8% of total revenues, respectively. During the year ended December 31, 2022, Xcoal Energy & Resources, Salzgitter Flachstahl GMBH and Thyssenkrupp Steel Europe AG accounted for $330.1 million, or 19.1%, $207.8 million or 12.0% and $187.0 million, or 10.8% of total revenues, respectively. During the year ended December 31, 2021, Xcoal Energy & Resources and Salzgitter Flachstahl GMBH accounted for $526.2 million, or 51.0%, and $118.1 million, or 11.4% of total revenues, respectively. Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with the Company's customers are satisfied; for all contracts this occurs when control of the promised goods have been transferred to the Company's customers and risk of loss passes to the customer. For coal shipments to domestic customers via rail, control is transferred when the railcar is loaded. For coal shipments to international customers via ocean vessel, control is transferred when the vessel is loaded at the Port of Mobile in Alabama. Occasionally, the Company will sell coal stockpiles at the barge loadout or port upon which control, title and risk of loss transfers when stockpiles are segregated. For all steelmaking coal sales under average pricing contracts where pricing is not finalized when revenue is recognized, revenue is recorded based on estimated consideration to be received at the date of the sale. For natural gas sales, control is transferred when the gas has been transferred to the pipeline. Revenue is disaggregated between coal sales within the Company's mining segment and natural gas sales included in all other revenues, as disclosed in Note 20. The Company's coal and gas sales generally include up to 45-day payment terms following the transfer of control of the goods to the customer. The Company typically does not include extended payment terms in its contracts with customers. Trade Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are stated at cost. Trade accounts receivable represent customer obligations that are derived from revenue recognized from contracts with customers. Credit is extended based on an evaluation of the individual customer's financial condition. The Company maintains trade credit insurance on the majority of its customers and the geographic regions of coal shipments to these customers. In some instances, the Company requires letters of credit, cash collateral or prepayments from its customers on or before shipment to mitigate the risk of loss. These efforts have consistently resulted in the Company recognizing no historical credit losses. The Company also has never had to have a claim against its trade credit insurance policy. In order to estimate the allowance for credit losses on trade accounts receivable, the Company utilizes an aging approach in which potential impairment is calculated based on how long a receivable has been outstanding (e.g., current, 1-31, 31-60, etc.). The Company calculates an expected credit loss rate based on the Company’s historical credit loss rate, the risk characteristics of its customers, and the current steelmaking coal and steel market environments. As of December 31, 2023, the estimated allowance for credit losses was immaterial and did not have a material impact on the Company's financial statements. Shipping and Handling Costs incurred to transport coal to the point of sale at the Port of Mobile, Alabama, are included in cost of sales and the gross amounts billed to customers, if any, to cover shipping and handling to the ultimate/final destination are included in sales. Cash and Cash Equivalents Cash and cash equivalents include short-term deposits and highly liquid investments that have original maturities of three months or less when purchased and are stated at cost, which approximates fair value. Short-Term Investments Instruments with maturities greater than three months, but less than twelve months, are included in short-term investments. The Company purchases United States Treasury bills with maturities ranging from six to twelve months which are classified as held to maturity and are carried at amortized cost, which approximates fair value. The Company also purchases fixed income securities and certificates of deposits with varying maturities that are classified as available for sale and are carried at fair value. Securities classified as held to maturity securities are those securities that management has the intent and ability to hold to maturity. As of December 31, 2023, the Company’s short-term investments of $9.0 million consisted of cash and fixed income securities. The short-term investments are posted as collateral for the self-insured black lung related claims asserted by or on behalf of former employees of Walter Energy, Inc. ("Walter Energy") and its subsidiaries, which were assumed by the Company and relate to periods prior to March 31, 2016. Inventories Inventories are valued at the lower of cost or net realizable value. Coal inventory costs include labor, supplies, equipment costs, operating overhead, freight, royalties, depreciation and depletion and other related costs. Coal inventories are valued using the first-in, first-out inventory valuation method. The valuation of coal inventories is subject to estimates due to possible gains and losses resulting from inventory movements from the mine site to storage facilities, inherent inaccuracies in belt scales and aerial surveys used to measure quantities and fluctuations in moisture content. Periodic adjustments to coal tonnages on hand are made for an estimate of coal shortages and overages due to these inherent gains and losses, primarily based on historical results from aerial surveys and periodic coal pile clean-ups. Supplies inventories are valued using the average cost method of accounting. Management evaluates its supplies inventory in terms of excess and obsolete exposures which includes such factors as anticipated usage, inventory turnover, inventory levels and ultimate market value. A reserve for excess and obsolete supplies inventory is established and charged to cost of sales in the Statements of Operations. Deferred Longwall Move Expenses Direct costs, including labor and supplies, associated with moving longwall equipment and the related equipment refurbishment costs are deferred and included in prepaid expenses. These deferred costs are amortized on a units-of-production basis into cost of sales over the life of the subsequent panel of coal mined by the longwall equipment. See Note 4 for further disclosures related to deferred longwall move expenses. Advanced Mining Royalties Lease rights to coal reserves are often acquired in exchange for royalty payments. Advance mining royalties are advance payments made to lessors under terms of mineral lease agreements that are recoupable against future production royalties. These advance payments are deferred and charged to operations as the coal reserves are mined. Advance mining royalties are included in other long-term assets. Property, Plant and Equipment Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is recorded principally on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line method over the lesser of the useful life of the improvement or the remaining lease term. Estimated useful lives used in computing depreciation expense range from three fifteen Deferred Mine Development Costs of developing new underground mines and certain underground expansion projects are capitalized. Underground development costs, which are costs incurred to make the coal physically accessible, may include construction permits and licenses, mine design, construction of access roads, main entries, airshafts, roof protection and other facilities. Mine development costs are amortized primarily on a units-of-production basis over the estimated reserve tons directly benefiting from the capital expenditures. Costs amortized during the production phase of a mine are capitalized into inventory and expensed to cost of sales as the coal is sold. Coal sales revenue related to incidental production during the development phase are recorded as sales with an offset to cost of sales based on the estimated cost per ton sold for the mine when the asset is in place for its intended use. Owned and Leased Mineral Interests Costs to obtain coal reserves and lease mineral rights are capitalized based on cost or the fair value at acquisition and depleted using the units-of-production method over the life of proven and probable reserves. Lease agreements are generally long-term in nature (original terms range from 10 to 50 years) and substantially all of the leases contain provisions that allow for automatic extension of the lease term provided certain requirements are met. Depletion expense was $9.6 million, $7.4 million, and $8.3 million for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, respectively, and is included in depreciation and depletion in the accompanying Statements of Operations. Asset Retirement Obligations The Company has certain asset retirement obligations primarily related to mine closing reclamation costs, perpetual water care costs and other costs associated with dismantling and removing facilities. Asset retirement obligations are determined for each mine using various estimates and assumptions, including estimates of disturbed acreage as determined from engineering data, estimates of future costs to reclaim the disturbed acreage and the timing of related cash flows, discounted using a credit-adjusted, risk-free rate. The Company's asset retirement obligations also include estimates to reclaim gas wells in accordance with the Oil and Gas Board of Alabama. On at least an annual basis, the Company reviews the entire asset retirement obligation liability and makes necessary adjustments for permit changes, the anticipated timing of mine closures, and revisions to cost estimates and productivity assumptions to reflect current experience. As changes in estimates occur, the carrying amount of the obligation and asset are revised to reflect the new estimate after applying the appropriate credit-adjusted, risk-free discount rate. The future costs of these obligations are accrued at the estimated fair value in the period in which they are incurred if a reasonable estimate of fair value can be made. The present value of the estimated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. For sites where there is no asset, expense or income is recognized for changes in estimates. Capitalized asset retirement costs are amortized on a units-of-production basis over the estimated reserves. Accretion of the asset retirement obligation is recognized over time and generally will escalate over the life of the producing asset, typically as production declines. Accretion is included in cost of sales on the Statements of Operations. Accrued mine closing costs, perpetual care costs and reclamation costs and other costs of dismantling and removing facilities are regularly reviewed by management and revised for changes in future estimated costs and regulatory requirements, as necessary. For ongoing operations, adjustments to the liability result in an adjustment to the corresponding asset. For some operations, adjustments to the liability are recognized as income or expense in the period the adjustment is recorded as no asset was recorded to offset the liability established during acquisition accounting related to the acquisition of certain assets of Walter Energy as the operations were idle at that time. Any difference between the recorded obligation and the actual cost of reclamation is recorded in profit or loss in the period the obligation is settled. See Note 8 for further disclosures related to asset retirement obligations. Impairment of Long-Lived Assets Property, plant and equipment and other long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that would indicate possible impairment. When impairment indicators exist, the Company uses an estimate of the future undiscounted cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, impairment is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset group. Fair value is generally determined using market quotes, if available, or a discounted cash flow approach. The Company’s estimate of future undiscounted cash flows is based on assumptions including long-term steelmaking coal pricing forecasts, anticipated production volumes and mine operating costs for the life of the mine or estimated useful life of the asset. Equity Award Compensation The Company accounts for equity award-based compensation to employees and non-employee/directors in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. The Company recognizes forfeitures as they occur. The Company recognizes compensation expense associated with equity awards for all awards made to employees as the requisite service, performance and market vesting conditions are met. For units granted containing only service and performance conditions, the fair value of the award is equal to the market price of the Company's common stock at the date of grant. For units granted containing only a market condition, the fair value of the award is determined utilizing a Monte Carlo simulation model which incorporates the total stockholder return hurdles set for each grant. Compensation expense for equity awards with a service-only condition is recognized over the employee’s requisite service period using a graded vesting method. For awards with a performance condition that affects vesting, the performance condition is not considered in determining the award’s grant-date fair value; however, the performance conditions are considered when estimating the quantity of awards that are expected to vest. No compensation expense is recorded for awards with performance conditions until the performance condition is determined to be probable of achievement. For awards with a market condition that affects vesting, the market condition is considered in determining the award’s grant-date fair value. Compensation expense for awards with a market condition is recognized straight-line over the derived or implied service period. Compensation expense for equity awards is included in cost of sales (exclusive of items shown separately below) and selling, general and administrative costs in the accompanying Statements of Operations. Deferred Financing Costs The costs to obtain new debt financing or amend existing financing agreements are deferred and amortized to interest expense over the life of the related indebtedness or credit facility using the straight-line method. As of December 31, 2023 and December 31, 2022, there were $3.0 million and $4.0 million, respectively, of unamortized origination fees related to the ABL Facility (as defined in Note 13) in other long-term assets on the accompanying Balance Sheet. As of December 31, 2023 and December 31, 2022 there were $3.5 million and $8.0 million, respectively, of unamortized deferred financing costs and debt discount, net, related to the Notes (as defined in Note 13), which is presented as a net deduction from the carrying amount of the related debt recognized in the accompanying Balance Sheet. Income Taxes The Company records a tax provision for the expected tax effects of the reported results of operations. The provision for income taxes is determined using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax impact of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is believed more likely than not to be realized. When the Company concludes that all or part of the net deferred income tax assets are not realizable in the future, the Company makes an adjustment to the valuation allowance that is charged to earnings in the period that such determination was made. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level hierarchy has been established for valuing assets and liabilities based on how transparent (observable) the inputs are that are used to determine fair value, with the inputs considered most observable categorized as Level 1 and those that are the least observable categorized as Level 3. Hierarchy levels are defined as follows: Level 1: Quoted prices in active markets for identical assets and liabilities. Level 2: Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. Leases The Company determines if an arrangement is a lease at inception. The Company has an accounting policy election that leases with an initial term of 12 months or less are not recorded on its balance sheet and lease payments are recognized in the Statements of Operations on a straight-line basis over the lease term. A right-of-use asset represents the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. For purpose of calculating such present values, lease payments include components that vary based on an index or rate, using the prevailing index or rate at the commencement date and exclude components that vary based upon other factors. For those leases that do not contain a readily determinable implicit rate, the Company uses its incremental borrowing rate at commencement to determine the present value of lease payments. Variable lease payments not included within lease contracts are expensed as incurred. The Company's leases may include options to extend or terminate the lease, and such options are reflected in the term when their exercise is reasonably certain. Lease expense is recognized on a straight-line basis over the lease term. New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker (CODM). The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows or financial condition. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which focuses on the rate reconciliation and income taxes paid. ASU No. 2023-09 requires a public business entity ("PBE") to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all period presented. The Company early adopted this ASU and the required disclosures are disclosed in Note 7. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories, net are summarized as follows (in thousands): December 31, 2023 December 31, 2022 Coal $ 129,989 $ 109,822 Raw materials, parts, supplies and other, net 53,960 44,217 Total inventories, net $ 183,949 $ 154,039 |
Prepaid Expenses and Other
Prepaid Expenses and Other | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other | Prepaid Expenses and Other Prepaid expenses and other consisted of the following (in thousands): December 31, 2023 December 31, 2022 Deferred longwall move expenses $ 18,513 $ 18,952 Prepaid insurance 1,991 1,424 Other 7,049 5,143 Total prepaid expenses and other $ 27,553 $ 25,519 |
Mineral Interests and Property,
Mineral Interests and Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Mineral Interests and Property, Plant and Equipment, net | Mineral Interests and Property, Plant and Equipment, net Mineral interests totaled $147.7 million and the related accumulated depletion totaled $67.3 million and $59.1 million as of December 31, 2023 and December 31, 2022, respectively. Property, plant and equipment are summarized as follows (in thousands): December 31, 2023 December 31, 2022 Land $ 74,631 $ 72,404 Land improvements 18,372 18,372 Building and leasehold improvements 99,121 81,737 Mine development and infrastructure costs 95,021 70,805 Machinery and equipment 1,087,635 852,141 Financing lease right of use asset 105,469 97,550 Construction in progress 425,124 168,025 Total 1,905,373 1,361,034 Less: Accumulated depreciation (725,764) (622,087) Property, plant and equipment, net $ 1,179,609 $ 738,947 Depreciation and depletion expense was $127.4 million, $115.3 million, and $141.4 million, for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, respectively. Construction in progress includes capitalized interest of $12.1 million and $1.4 million as of December 31, 2023 and December 31, 2022, respectively. |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | Other Long-Term Assets Other long-term assets consisted of the following (in thousands): December 31, 2023 December 31, 2022 Advance mining royalties $ 11,268 $ 7,087 ABL Facility origination fees 3,003 4,003 Other 7,716 8,741 Total other long-term assets $ 21,987 $ 19,831 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense consisted of the following (in thousands): For the years ended December 31, 2023 2022 2021 Current Federal $ 19,914 $ — $ — State 5 — — 19,919 — — Deferred Federal 51,153 143,897 19,031 State 1,718 (2,091) 30,065 52,871 141,806 49,096 Total $ 72,790 $ 141,806 $ 49,096 For the year ended December 31, 2023, the Company recognized income tax expense of $72.8 million or an effective tax rate of 13.2%. The Company's federal income tax payments were $27.0 million in 2023 and there were no federal income tax payments in 2022 or 2021. As of December 31, 2023, the Company has a current income tax receivable of $7.8 million, which is expected to be applied to estimated income tax payments in 2024. Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 21%) by income before income taxes as a result of the following (in thousands): For the years ended December 31, 2023 2022 2021 Amount Rate Amount Rate Amount Rate Income before income tax expense 551,419 $ 783,104 $ 199,977 Tax expense at statutory tax rate 115,798 21.0 % $ 164,452 21.0 % $ 41,995 21.0 % Effect of: Section 250: foreign derived intangible income (26,077) (4.7) % — — % — — % Depletion (21,811) (4.0) % (23,638) (3.0) % (12,227) (6.1) % State and local income tax, net of federal effect 1,925 0.3 % 2,115 0.3 % (22,387) (11.2) % Valuation allowance on deferred tax assets (417) (0.1) % (4,519) (0.6) % 45,952 23.0 % Section 45I marginal well credit — — % (87) — % (4,702) (2.4) % Other 3,372 0.6 % 3,483 0.4 % 465 0.2 % Tax expense recognized $ 72,790 13.2 % $ 141,806 18.1 % $ 49,096 24.6 % The rates for all periods include a benefit related to depletion and a benefit or expense related to adjustments to the valuation allowance on deferred tax assets and Internal Revenue Code ("IRC") Section 45I marginal well credits. For the year ended December 31, 2023, the Company recognized an income tax benefit of $26.1 million related to a deduction under IRC Section 250: Foreign-Derived Intangible Income. The Tax Cuts and Jobs Act was enacted on December 22, 2017 and enacted IRC Section 250: FDII, which provides for among other things, a deduction of 37.5% with respect to foreign-derived intangible income. Beginning in 2026, the deduction is reduced from 37.5% to 22.5% of foreign-derived intangible income. The Company has historically not been eligible to claim the deduction due to the deduction being limited to taxable income and the Company's ability to utilize its net operating losses to offset taxable income. On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA contains a number of revisions to the Internal Revenue Code, including a 15% corporate minimum income tax and a 1% excise tax on corporate stock repurchases in tax years beginning after December 31, 2022. While these tax law changes have no immediate effect and are not expected to have a material adverse effect on our results of operations going forward, we will continue to evaluate its impact as further information becomes available. Deferred Taxes Deferred income tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Significant components of the Company's deferred income tax assets and liabilities were (in thousands): December 31, 2023 December 31, 2022 Deferred income tax assets: Net operating loss and credit carryforwards $ 47,940 $ 98,533 Inventory 2,204 1,560 Asset retirement obligations 17,900 14,466 Black lung obligations 6,134 6,391 Accrued expenses 6,259 5,955 Other 1,299 864 Total deferred income tax assets 81,736 127,769 Less: valuation allowance for deferred income tax assets (41,016) (41,433) Net deferred income tax assets 40,720 86,336 Deferred income tax liabilities: Prepaid expenses (6,757) (8,308) Property, plant and equipment (100,834) (92,748) Other (1,806) (1,086) Total deferred income tax liabilities (109,397) (102,142) Net deferred income tax liability $ (68,677) $ (15,806) During the year ended December 31, 2023, the Company fully utilized all of its federal net operating loss ("NOL") carryforwards and general business credits. The Company has state NOL carryforwards of approximately $928.2 million, which expire predominantly on December 31, 2029 through December 31, 2035. A company generally is allowed a deduction for federal and state NOLs against its federal and state taxable income. If a Company undergoes an “ownership change” as defined in Section 382 of the Code or similar provisions of state law, its ability to deduct federal and state NOLs against its federal or state taxable income and utilize certain other available tax attributes can be limited. While the Company does not believe an ownership change has occurred since April 1, 2016, because the rules under Section 382 are highly complex and actions of the Company's stockholders which are beyond its control or knowledge could impact whether an ownership change has occurred, the Company cannot give you any assurance that another Section 382 ownership change has not occurred or will not occur in the future. As a result of the Company qualifying for the aforementioned exception, were the Company to have undergone a subsequent ownership change prior to April 1, 2018, its federal and state NOLs would effectively be reduced to zero. An ownership change after such date would severely limit the Company's ability to utilize its federal and state NOLs and other tax attributes. Amended Rights Agreement On February 14, 2020, the Company adopted the Rights Agreement, which was amended on March 4, 2022 by Amendment No. 1 to the Rights Agreement and on December 8, 2023 by Amendment No. 2 (the "Rights Agreement", and as amended, the "Amended Rights Agreement"), in an effort to prevent the imposition of significant limitations due to an "ownership change" within the meaning of Section 382 of the Code on the Company's ability to utilize its current federal and state NOLs to reduce its future tax liabilities. The Company's stockholders ratified the Rights Agreement at the 2020 Annual Meeting of Stockholders and ratified the Amendment No. 1 to the Rights Agreement at the 2022 Annual Meeting of Stockholders. The Amended Rights Agreement is intended to supplement the 382 Transfer Restrictions and is designed to serve the interests of all stockholders by preserving the availability of the Company's federal and state NOLs and is similar to plans adopted by other companies with significant federal and state NOLs. Pursuant to the Amended Rights Agreement, one preferred stock purchase right (a “Right” or the “Rights”) was distributed to stockholders of the Company for each share of common stock of the Company outstanding as of the close of business on February 28, 2020. Initially, these Rights will not be exercisable and will trade with the shares of common stock. If the Rights become exercisable, each Right will initially entitle stockholders to buy one one-thousandth of a share of a newly created series of preferred stock designated as “Series A Junior Participating Preferred Stock” at an exercise price of $159.00 per Right. While the Amended Rights Agreement is in effect, any person or group that acquires beneficial ownership of 4.99% or more of the common stock or any existing stockholder who currently owns 5.00% or more of the common stock that acquires any additional shares of common stock (such person, group or existing stockholder, an "Acquiring Person") without approval from the Board would be subject to significant dilution in their ownership interest in the Company. In such an event, each Right will entitle its holder to buy, at the exercise price, common stock having a market value of two times the then current exercise price of the Right and the Rights held by such Acquiring Person will become void. The Amended Rights Agreement also gives discretion to the Board to determine that someone is an Acquiring Person even if they do not own 4.99% or more of the common stock but do own 4.99% or more in value of the outstanding stock, as determined pursuant to Section 382 of the Code and the regulations promulgated thereunder. In addition, the Board has established procedures to consider and approve requests to exempt certain acquisitions of the Company’s securities from the Amended Rights Agreement if the Board determines that doing so would not limit or impair the availability of the federal and state NOLs or is otherwise in the best interests of the Company and conditioned upon and subject to the satisfaction of certain continuing factual representations and covenants. The Board may redeem the Rights for $0.01 per Right at any time before any person or group triggers the Amended Rights Agreement. The distribution of the Rights is not a taxable event for stockholders of the Company and will not affect the Company’s’ financial condition or results of operations (including earnings per share). The Rights will expire on the earliest of (i) the close of business on April 19, 2026, (ii) the time at which the Rights are redeemed as provided in the Amended Rights Agreement, (iii) the time at which the Rights are exchanged as provided in the Amended Rights Agreement, (iv) the time at which the Board determines that the NOLs are fully utilized or no longer available under Section 382 of the Code, (v) the effective date of the repeal of Section 382 of the Code if the Board determines that the Amended Rights Agreement is no longer necessary or desirable for the preservation of NOLs, or (vi) the closing of any merger or other acquisition transaction involving the Company pursuant to an agreement of the type described in the Amended Rights Agreement. Valuation Allowance The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets. The Company establishes valuation allowances if it is not likely it will realize its deferred income tax assets. In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions. The Company considers, among other things, scheduled reversals of deferred tax liabilities, projected future taxable income, the overall business environment, its historical financial results, the industry's historically cyclical financial results, its cumulative three-year income or loss position and potential current and future tax planning strategies. On February 12, 2021, the Alabama Governor signed into law Alabama House Bill 170, now Act 2021-1 (the "Act"). The Act makes several changes to the state’s business tax structure. Among the provisions of the Act, is the repeal of the so-called corporate income tax “throwback rule.” That rule required all sales originating in Alabama and delivered to a jurisdiction where the seller was not subject to tax, to be included in the seller’s Alabama income tax base. Thus, prior to repeal of the throwback rule, the Company had to rely on its Alabama NOL carryforwards to shelter taxes imposed under such throwback rule. As a result of the now repealed throwback rule, effective January 1, 2021, all such sales should now be excluded from Alabama taxable income without the need to utilize Alabama NOLs. As a result of the repeal of the throwback rule, the Company determined that it is not more likely than not that the Company would have sufficient taxable income to utilize all of the Company’s Alabama deferred income tax assets prior to expiration. Therefore, at December 31, 2023, we have a valuation allowance against our state deferred income tax assets of approximately $41.0 million. The following table shows the balance of the Company's valuation allowance and the associated activity during 2023: December 31, 2023 Beginning balance $ 41,433 Addition/(Reduction) - current tax expense/(benefit) (417) Ending balance $ 41,016 Uncertain Tax Positions The Company has filed income tax returns in the U.S. and in various state and local jurisdictions which are routinely examined by tax authorities in these jurisdictions. Federal and state NOLs and carryforwards are subject to adjustments based on examination and the statute of limitations is currently open for all such loss and credit carryforwards. The Company had no unrecognized tax benefits or accruals for unrecognized tax benefits as of December 31, 2023 and 2022, respectively. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Changes in the asset retirement obligations (“ARO”) were as follows (in thousands): December 31, 2023 December 31, 2022 Balance at beginning of period $ 68,481 $ 70,677 Accretion expense 4,175 3,485 Revisions to estimates 16,290 (3,470) Obligations settled (4,780) (2,211) Balance at end of period $ 84,166 $ 68,481 The portion of costs expected to be paid within a year as of December 31, 2023 is $12.5 million. The portion of costs expected to be incurred beyond one year as of December 31, 2023 is $71.7 million. There were no assets that were legally restricted for purposes of settling asset retirement obligations at December 31, 2023. Alabama's regulatory framework technically allows for self-bonding. However, as a practical matter, due to the onerous regulatory requirements for self-bonding, mining companies in Alabama utilize surety bonds, collateral bonds, or letters of credit to meet their financial assurance requirements. At December 31, 2023, the Company had outstanding surety bonds and letters of credit with parties for post-mining reclamation at all of its mining operations totaling $44.3 million, and $5.2 million for miscellaneous purposes. For the years ended December 31, 2023 and December 31, 2022, the change to the liability was primarily attributable to the net impact of changes in discount rates, changes in the timing of scheduled reclamation and current estimates of the costs and scope of remaining reclamation work. For the years ended December 31, 2023 and December 31, 2022, $0.3 million or $0.01 per share and $1.4 million or $0.03 per share, respectively, of the adjustment to the liability was reflected as income in the period because there was no asset recorded to offset the adjustment to the respective liability. This portion of the liability relates to operations that were idle at the time of purchase accounting for the acquisition of certain assets in 2016 and no value was attributed to any asset as an offset for the asset retirement obligation. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2023 December 31, 2022 Accrued wages and employee benefits $ 36,828 $ 32,808 Accrued operating expenses 26,082 30,357 Accrued royalties 12,729 9,389 Accrued freight 4,195 1,842 Accrued interest 1,064 2,038 Accrued non-income taxes 714 1,001 Total accrued expenses $ 81,612 $ 77,435 |
Pneumoconiosis ("Black Lung") O
Pneumoconiosis ("Black Lung") Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Self Insurance Reserve Disclosure [Abstract] | |
Pneumoconiosis ("Black Lung") Obligations | Pneumoconiosis ("Black Lung") Obligations The Company is responsible for medical and disability benefits for black lung disease under the Federal Coal Mine Health and Safety Act of 1969, as amended. Beginning on April 1, 2016 through May 31, 2018, the Company was insured under a guaranteed cost insurance policy, through a third-party insurance carrier, for black lung claims raised by any employee subsequent to the acquisition of certain assets of Walter Energy. Beginning on June 1, 2018 through May 31, 2020, the Company had a deductible policy where the Company is responsible for the first $0.5 million for each black lung claim. Since June 1, 2020, the Company has a deductible policy where the Company is responsible for the first $1.0 million for each black lung claim. In addition, in connection with the acquisition of certain assets of Walter Energy, the Company assumed all black lung liabilities of Walter Energy and its U.S. subsidiaries incurred prior to March 31, 2016, for which the Company is self-insured. Due to a limited operating history as a stand-alone company and as a result of being self-insured for these historical black lung claims, the Department of Labor ("DOL") required the Company to post $17.0 million in the form of Treasury bills or surety bonds as collateral, in addition to maintaining a black lung trust acquired in the Walter Energy acquisition. The Company received a letter from the DOL on February 21, 2020 under its new process for self-insurance renewals that would require it to increase the amount of collateral posted to $39.8 million, but the Company has appealed such increase. The Company received another letter from the DOL on December 8, 2021 requesting additional information to support its appeal of the collateral requested by the DOL. On February 9, 2022, the DOL held a conference call with representatives from the Company related to our appeal. On July 12, 2022, we received a decision on our appeal from the DOL lowering the amount of collateral required to be posted from $39.8 million to $28 million. We appealed this decision. In addition, on January 19, 2023, the DOL proposed revisions to regulations under the Black Lung Benefits Act governing authorization of self-insurers. The proposed rules requires, among other requirements, all self-insured operators to post security of at least 120 percent of their projected black lung liabilities. As of December 31, 2023 and December 31, 2022, the Company had $18.6 million of surety bonds, respectively, and $9.0 million and $8.6 million of collateral recognized as short term investments, respectively. There were also $1.8 million and $2.1 million of assets held in a black lung trust, which is offset against the long-term portion of the black lung obligations within the Balance Sheet as of December 31, 2023 and December 31, 2022, respectively. The estimated total black lung liabilities (net of black lung trust assets) were $28.8 million as of December 31, 2023, of which $1.9 million is classified in other current liabilities and the remainder of $27.0 million is shown as a long-term liability in a separate line item in the Balance Sheets. As of December 31, 2022, the estimated black lung liabilities (net of the black lung trust assets) were $30.3 million, of which $2.8 million is classified in other current liabilities and $27.4 million is classified as a long-term liability in a separate line item in the Balance Sheets. Accretion of the black lung liabilities is included in cost of other revenues on the Statements of Operations. The Company performs an annual evaluation of its black lung liabilities at each balance sheet date. The calculation uses assumptions regarding rates of successful claims, discount factors, benefit increases and mortality rates, among others. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plans The Company sponsors a defined contribution plan to assist its eligible employees in providing for retirement. Generally, under the terms of the plan, employees make voluntary contributions through payroll deductions and the Company makes matching contributions, as defined by the plan. Contributions to these defined contribution plans amounted to $4.0 million for the year ended December 31, 2023, $3.2 million for the year ended December 31, 2022 and $2.5 million for the year ended December 31, 2021 accounted for in cost of sales, cost of other revenues and selling, general and administrative costs in the Statements of Operations. Collective Bargaining Agreement |
Equity Award Plans
Equity Award Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Award Plans | Equity Award Plans Warrior Met Coal, Inc. 2017 Equity Incentive Plan In connection with the Company's initial public offering, the Company adopted the Warrior Met Coal, Inc. 2017 Equity Incentive Plan (the “2017 Equity Plan”). Under the 2017 Equity Plan, directors, officers, employees, consultants and advisors and those of affiliated companies, as well as those who have accepted offers of employment or consultancy from the Company or the Company’s affiliated companies, may be granted equity interest in Warrior Met Coal, Inc. in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards, and performance awards. The total number of shares of common stock, including incentive stock options, available for grant of awards under the 2017 Equity Plan as of December 31, 2023 is 4,332,083. If any outstanding award expires, is canceled, forfeited, or settled in cash, the shares allocable to that award will again be available for grant under the 2017 Equity Plan. As of December 31, 2023, the equity awards granted under the 2017 Equity Plan are comprised of common stock, restricted stock awards, and restricted stock unit awards. The Company recognized stock compensation expense of $18.3 million for the year ended December 31, 2023 associated with awards granted under the 2017 Equity Plan. Unrecognized compensation expense related to the 2017 Equity Plan amounted to approximately $1.7 million as of December 31, 2023. A summary of activity related to restricted stock unit award grants under the 2017 Equity Incentive Plan during the year ended December 31, 2023 is as follows: Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2022 756,063 $ 26.99 Granted 508,927 $ 29.90 Canceled (5,982) $ 36.60 Forfeited (324) $ 37.43 Vested (608,224) $ 29.10 Outstanding at December 31, 2023 650,460 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt consisted of the following (in thousands): December 31, 2023 December 31, 2022 Weighted Average Interest Rate at December 31, 2023 Final Maturity Senior secured notes $ 156,517 $ 310,618 7.875% December 2028 ABL facility — — Varies 1 December 2026 Debt discount, net (3,494) (8,030) Total debt 153,023 302,588 Less: current debt — — Total long-term debt $ 153,023 $ 302,588 1 Borrowings under the ABL Facility bear interest at a rate equal to Secured Overnight Financing Rate ("SOFR") ranging currently from 1.5% and 2.0%, plus a credit adjustment spread, ranging currently from 0.11448% to 0.42826%, or an alternate base rate plus an applicable margin, which is determined based on the average availability of the commitments under the ABL Facility, ranging from 0.5% to 1.0%. The Company's minimum debt repayment schedule, excluding interest, as of December 31, 2023 is as follows (in thousands): Payments Due 2024 2025 2026 2027 2028 Thereafter Senior secured notes $ — $ — $ — $ — $ 153,023 $ — ABL facility — — — — — — Total $ — $ — $ — $ — $ 153,023 $ — ABL Facility On December 6, 2021, the Company entered into the Second Amended and Restated Asset-Based Revolving Credit Agreement (the “Second Amended and Restated Credit Agreement”), by and among the Company and certain of its subsidiaries, as borrowers, the guarantors party thereto, the lenders from time to time party thereto and Citibank, as administrative agent (in such capacity, the "Agent"), which amends and restates in its entirety the existing Amended and Restated Asset-Based Revolving Credit Agreement (as amended, the “ABL Facility”). The Second Amended and Restated Credit Agreement, among other things, (i) extended the maturity date of the ABL Facility to December 6, 2026; (ii) changed the calculation of the interest rate payable on borrowings from being based on a London Inter-Bank Offered Rate to be based on a Secured Overnight Financing Rate, with corresponding changes to the applicable interest rate margins with respect to such borrowings, (iii) amended certain definitions related to the calculation of the borrowing base; (iv) increased the commitments that may be used to issue letters of credit to $65.0 million; and (v) amended certain baskets contained in the covenants to conform to the baskets contained in the indenture governing the Notes (the "Indenture"). The Second Amended and Restated Credit Agreement also allows the Company to borrow up to $116.0 million through November 2026, subject to availability under the borrowing base and other conditions. Under the ABL Facility, up to $10.0 million of the commitments may be used to incur swingline loans from Citibank and up to $65.0 million of the commitments may be used to issue letters of credit. The ABL Facility will mature on December 6, 2026. As of December 31, 2023, no loans were outstanding under the ABL Facility and there were $8.7 million of letters of credit issued and outstanding under the ABL Facility. At December 31, 2023, the Company had $107.4 million of availability under the ABL Facility. Subject to permitted exceptions, the obligations of the borrowers under the ABL Facility are guaranteed by each of the Company's domestic subsidiaries and secured by (i) first-priority security interests in the ABL Priority Collateral (as defined in the Indenture), which includes, among other things, certain accounts receivables, inventory and cash of the Company and the guarantors, and (ii) second-priority security interests in the Notes Priority Collateral (as defined in the Indenture), which includes, among other things, material mining properties, shares of capital stock of the guarantors, intellectual property, as extracted collateral (to the extent not constituting inventory), and certain fixed assets of the Company and the guarantors. The ABL Facility contains customary covenants for asset-based credit agreements of this type, including among other things: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence of certain indebtedness; (iii) restrictions on the existence or incurrence of certain liens; (iv) restrictions on making certain restricted payments; (v) restrictions on making certain investments; (vi) restrictions on certain mergers, consolidations and asset dispositions; (vii) restrictions on certain transactions with affiliates; and (viii) restrictions on modifications to certain indebtedness. Additionally, the ABL Facility contains a springing fixed charge coverage ratio of not less than 1.00 to 1.00, which ratio is tested if availability under the ABL Facility is less than a certain amount. As of December 31, 2023, the Company was not subject to this covenant. Subject to customary grace periods and notice requirements, the ABL Facility also contains customary events of default. The Company was in compliance with all applicable covenants under the ABL Facility as of December 31, 2023. Senior Secured Notes On December 6, 2021, the Company issued $350.0 million in aggregate principal amount of 7.875% senior secured notes due 2028 (the “Notes”) at an initial price of 99.3% of their face amount. The Notes were issued to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in transactions outside the United States in accordance with Regulation S under the Securities Act. The Company used the net proceeds of the offering of the Notes, together with cash on hand, to fund the redemption of all of the Company’s outstanding 8.00% senior secured notes due 2024 (the “2017 Notes”), including payment of the redemption premium in connection with such redemption. As a result, the Company recognized a loss on early extinguishment of debt of $9.7 million which represents the write-off of previously capitalized 2017 Notes debt issuance costs and debt discount, along with the redemption premium. The Notes will accrue interest at a rate of 7.875% per year from December 6, 2021. Interest on the Notes will be payable on June 1 and December 1 of each year, commencing on June 1, 2022. The Notes will mature on December 1, 2028. The Notes are fully and unconditionally guaranteed on a joint and several basis by each of the Company's direct and indirect wholly-owned domestic restricted subsidiaries that are guarantors under the ABL Facility (subject to customary release provisions). At any time prior to December 1, 2024, the Company may redeem the Notes, in whole or in part, at a price equal to 100% of the principal amount of the Notes redeemed plus the Applicable Premium (as defined in the Indenture) and accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. The Notes are redeemable at the Company’s option, in whole or in part, from time to time, on or after December 1, 2024, at redemption prices specified in the Indenture, plus accrued and unpaid interest, if any, to, but excluding the redemption date. At any time on or prior to December 1, 2024, the Company may redeem up to 40% of the aggregate principal amount of the Notes with the proceeds of certain equity offerings, at a redemption price of 108% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to but excluding the redemption date. The Company is also required to make offers to purchase the Notes (i) at a purchase price of 101% of the principal amount thereof in the event it experiences specific kinds of change of control triggering events, (ii) at a purchase price of 103% of the principal amount thereof prior to making certain restricted payments, and (iii) at a purchase price of 100% of the principal amount thereof in the event it makes certain asset sales or dispositions and does not reinvest the net proceeds therefrom or use such net proceeds to repay certain indebtedness, in each case, plus accrued and unpaid interest, if any, to, but excluding the date of purchase . During the year ended December 31, 2023, the Company repurchased in the open market and extinguished approximately $8.0 million principal amount of the Notes. In connection with the extinguishment of our Notes, we recognized a loss on early extinguishment of debt of $0.1 million which is included in interest expense in the Statements of Operations. Offers to Purchase the Notes On August 9, 2023, we commenced an offer to purchase (the “Restricted Payment Offer”), in cash, up to $150.0 million principal amount of its outstanding Notes, at a repurchase price of 103% of the aggregate principal amount of such Notes, plus accrued and unpaid interest with respect to such Notes to, but not including, the date of repurchase (the “Restricted Payment Repurchase Price”). Concurrently with, but separate from, the Restricted Payment Offer, we commenced a cash tender offer (the “Tender Offer” and, together with the Restricted Payment Offer, the “Offers”) to purchase up to $150.0 million principal amount of the Notes at a repurchase price of 104.25% of the aggregate principal amount of such Notes, plus accrued and unpaid interest to, but not including, the date of repurchase (the “TO Repurchase Price”). The Offers expired on September 7, 2023 (the “Expiration Date”). Restricted Payment Offer As of the Expiration Date, $200,000 aggregate principal amount of the Notes were validly tendered and not validly withdrawn pursuant to the Restricted Payment Offer. Pursuant to the terms of the Restricted Payment Offer: (1) an automatic pro ration factor of 49.5674% was applied to the $200,000 aggregate principal amount of the Notes that were validly tendered and not validly withdrawn in the Restricted Payment Offer (rounded down to avoid the purchase of Notes in a principal amount other than in integrals of $1,000), which resulted in $99,000 aggregate principal amount of the Notes (the “RP Pro-Rated Tendered Notes”); (2) we accepted all $99,000 aggregate principal amount of the RP Pro-Rated Tendered Notes for payment of the Restricted Payment Repurchase Price in cash; and (3) the remaining balance of $101,000 aggregate principal amount of the Notes tendered that were not RP Pro-Rated Tendered Notes were not accepted for payment and were returned to the tendering holder of the Notes. We consummated the Restricted Payment Offer on September 8, 2023. Accordingly, pursuant to the terms of the Indenture, we will have the ability from time to time in the future to make one or more restricted payments (the "Proposed Restricted Payment") in the form of special dividends to holders of our common stock and/or repurchases of our common stock in the aggregate amount of up to $299,901,000 consistent with the terms of the Capital Allocation Policy adopted by our Board. Any future Proposed Restricted Payments will be at the discretion of the Board and subject to a number of factors and there can be no assurance that we will make any Proposed Restricted Payments in the future. Tender Offer As of the Expiration Date, $294,770,000 aggregate principal amount of the Notes were validly tendered and not validly withdrawn pursuant to the Tender Offer. Pursuant to the terms of the Tender Offer: (1) an automatic pro ration factor of 49.6% was applied to the $294,770,000 aggregate principal amount of the Notes that were validly tendered and not validly withdrawn in the Tender Offer (rounded down to avoid the purchase of Notes in a principal amount other than in integrals of $1,000), which resulted in $146,002,000 aggregate principal amount of the Notes (the “TO Pro-Rated Tendered Notes”); (2) we accepted all $146,002,000 aggregate principal amount of the TO Pro-Rated Tendered Notes for payment of the TO Repurchase Price in cash; and (3) the remaining balance of $148,768,000 aggregate principal amount of the Notes tendered that were not TO Pro-Rated Tendered Notes were not accepted for payment and were returned to the tendering holder of the Notes. We consummated the Tender Offer on September 11, 2023. In connection with the payments for the RP Pro-Rated Tendered Notes and the TO Pro-Rated Tendered Notes, we recognized a loss on early extinguishment of debt of $11.7 million during the year ended December 31, 2023. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company primarily enters into rental agreements for certain mining equipment that are for periods of 12 months or less, some of which include options to extend the leases. Leases that are for periods of 12 months or less are not recorded on the balance sheet in accordance with the Company's accounting policy election described in Note 2. The Company recognizes lease expense on these agreements on a straight-line basis over the lease term. Additionally, the Company has certain finance leases for mining equipment that expire over various contractual periods. These leases have remaining lease terms of one Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2023 December 31, 2022 Finance lease right-of-use assets, net (1) $ 67,014 $ 69,596 Finance lease liabilities Current 11,463 24,089 Noncurrent 8,756 9,002 Total finance lease liabilities $ 20,219 $ 33,091 Weighted average remaining lease term - finance leases (in months) 20.8 27.2 Weighted average discount rate - finance leases (2) 7.02 % 6.96 % (1) Finance lease right-of-use assets, recorded net of accumulated amortization of $38.5 million and $28.0 million, are included in property, plant and equipment, net in the Balance Sheets as of December 31, 2023 and December 31, 2022, respectively. See Note 5 for additional disclosure. (2) When an implicit discount rate is not readily available in a lease, the Company uses its incremental borrowing rate based on information available at the commencement date when determining the present value of lease payments. The components of lease expense were as follows (in thousands): For the year ended December 31, 2023 2022 Operating lease cost (1): $ 29,675 $ 36,106 Finance lease cost: Amortization of leased assets 21,720 17,587 Interest on lease liabilities 1,935 3,284 Net lease cost $ 53,330 $ 56,977 (1) Includes leases that are for periods of 12 months or less. Maturities of lease liabilities were as follows (in thousands): Finance Leases (1) 2024 15,874 2025 4,423 2026 922 2027 — Thereafter — Total 21,219 Less: amount representing interest (1,000) Present value of lease liabilities $ 20,219 (1) Finance lease payments include $3.0 million of future payments required under signed lease agreements that have not yet commenced. These finance leases will commence during fiscal year 2024 with lease terms between one Supplemental cash flow information related to leases was as follows (in thousands): For the year ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 1,935 $ 3,284 Financing cash flows from finance leases $ 32,330 $ 30,348 Non-cash right-of-use assets obtained in exchange for lease obligations: Finance leases $ 11,312 $ 8,150 |
Leases | Leases The Company primarily enters into rental agreements for certain mining equipment that are for periods of 12 months or less, some of which include options to extend the leases. Leases that are for periods of 12 months or less are not recorded on the balance sheet in accordance with the Company's accounting policy election described in Note 2. The Company recognizes lease expense on these agreements on a straight-line basis over the lease term. Additionally, the Company has certain finance leases for mining equipment that expire over various contractual periods. These leases have remaining lease terms of one Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2023 December 31, 2022 Finance lease right-of-use assets, net (1) $ 67,014 $ 69,596 Finance lease liabilities Current 11,463 24,089 Noncurrent 8,756 9,002 Total finance lease liabilities $ 20,219 $ 33,091 Weighted average remaining lease term - finance leases (in months) 20.8 27.2 Weighted average discount rate - finance leases (2) 7.02 % 6.96 % (1) Finance lease right-of-use assets, recorded net of accumulated amortization of $38.5 million and $28.0 million, are included in property, plant and equipment, net in the Balance Sheets as of December 31, 2023 and December 31, 2022, respectively. See Note 5 for additional disclosure. (2) When an implicit discount rate is not readily available in a lease, the Company uses its incremental borrowing rate based on information available at the commencement date when determining the present value of lease payments. The components of lease expense were as follows (in thousands): For the year ended December 31, 2023 2022 Operating lease cost (1): $ 29,675 $ 36,106 Finance lease cost: Amortization of leased assets 21,720 17,587 Interest on lease liabilities 1,935 3,284 Net lease cost $ 53,330 $ 56,977 (1) Includes leases that are for periods of 12 months or less. Maturities of lease liabilities were as follows (in thousands): Finance Leases (1) 2024 15,874 2025 4,423 2026 922 2027 — Thereafter — Total 21,219 Less: amount representing interest (1,000) Present value of lease liabilities $ 20,219 (1) Finance lease payments include $3.0 million of future payments required under signed lease agreements that have not yet commenced. These finance leases will commence during fiscal year 2024 with lease terms between one Supplemental cash flow information related to leases was as follows (in thousands): For the year ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 1,935 $ 3,284 Financing cash flows from finance leases $ 32,330 $ 30,348 Non-cash right-of-use assets obtained in exchange for lease obligations: Finance leases $ 11,312 $ 8,150 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Matters The Company is subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the construction and operation of its plants, mines and other facilities and with respect to remediating environmental conditions that may exist at its own and other properties. The Company believes that it is in substantial compliance with federal, state and local environmental laws and regulations. The Company accrues for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and can be reasonably estimated. As of December 31, 2023 and December 31, 2022, there were no accruals for environmental matters other than asset retirement obligations for mine reclamation. Miscellaneous Litigation From time to time, the Company is party to a number of lawsuits arising in the ordinary course of their businesses. The Company records costs relating to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on the Company’s future results of operations cannot be predicted with certainty as any such effect depends on future results of operations and the amount and timing of the resolution of such matters. As of December 31, 2023 and December 31, 2022, there were no items accrued for miscellaneous litigation. Walter Canada Settlement Proceeds On July 15, 2015, Walter Energy and certain of its wholly owned U.S. subsidiaries, including Jim Walter Resources, Inc. (“JWR”) filed voluntary petitions for relief under chapter 11 of title 11 of the U.S. Bankruptcy Code (the “Chapter 11 Cases”) in the Northern District of Alabama, Southern Division. On December 7, 2015, Walter Energy Canada Holdings, Inc., Walter Canadian Coal Partnership and their Canadian affiliates (collectively “Walter Canada”) applied for and were granted protection under the Companies’ Creditors Arrangement Act (the “CCAA”) pursuant to an Initial Order of the Supreme Court of British Columbia. In connection with the Company’s acquisition of certain core operating assets of Walter Energy, the Company acquired a receivable owed to Walter Energy by Walter Canada for certain shared services provided by Walter Energy to Walter Canada (the “Shared Services Claim”) and a receivable for unpaid interest owed to Walter Energy from Walter Canada in respect of a promissory note (the “Hybrid Debt Claim”). Each of these claims were asserted by the Company in the Walter Canada CCAA proceedings. Walter Energy deemed these receivables to be uncollectable for the year ended December 31, 2015 and the Company did not assign any value to these receivables in acquisition accounting as collectability was deemed remote. During the year ended December 31, 2023 and December 31, 2022, the Company received approximately $0.2 million and $0.7 million, respectively, which is reflected as other income in the Statements of Operations. The collectability of additional amounts, if any, related to the Shared Services Claim and Hybrid Debt Claim depends on the outcome of, and the timing of any resolutions of, the Walter Canada CCAA proceedings and cannot be predicted with certainty. Commitments and Contingencies—Other The Company is party to various transportation and throughput agreements with rail and barge transportation providers and the Alabama State Port Authority. These agreements contain annual minimum tonnage guarantees with respect to coal transported from the mine sites to the Port of Mobile in Alabama, unloading of rail cars or barges, and the loading of vessels. If the Company does not meet its minimum throughput obligations, which are based on annual minimum amounts, it is required to pay the transportation providers or the Alabama State Port Authority a contractually specified amount per metric ton for the difference between the actual throughput and the minimum throughput requirement. At December 31, 2023 and December 31, 2022, the Company had no liability recorded for minimum throughput requirements. Royalty Obligations A substantial amount of the coal that the Company mines is produced from mineral reserves leased from third-party landowners. These leases convey mining rights to the Company in exchange for royalties to be paid to the landowner as either a fixed amount per ton or as a percentage of the sales price. Although coal leases have varying renewal terms and conditions, they generally last for the economic life of the reserves. Coal royalty expense was $120.5 million, $138.9 million, and $65.4 million, for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Shares The Company is authorized to issue up to 140,000,000 common shares, 0.01 par value per share. Holders of common shares are entitled to receive dividends when authorized by the Company's Board of Directors (the "Board"). Stock Repurchase Program On March 26, 2019, the Board approved the Company's second stock repurchase program (the “New Stock Repurchase Program”) that authorizes repurchases of up to an aggregate of $70.0 million of the Company's outstanding common stock. The Company fully exhausted its previous stock repurchase program (the "First Stock Repurchase Program") of $40.0 million of its outstanding common stock. The New Stock Repurchase Program does not require the Company to repurchase a specific number of shares or have an expiration date. The New Stock Repurchase Program may be suspended or discontinued by the Board at any time without prior notice. Under the New Stock Repurchase Program, the Company may repurchase shares of its common stock from time to time, in amounts, at prices and at such times as the Company deems appropriate, subject to market and industry conditions, share price, regulatory requirements and other considerations as determined from time to time by the Company. The Company’s repurchases may be executed using open market purchases or privately negotiated transactions in accordance with applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act and repurchases may be executed pursuant to Rule 10b5-1 under the Exchange Act. Repurchases will be subject to limitations in the ABL Facility and the Indenture. The Company intends to fund repurchases under the New Stock Repurchase Program from cash on hand and/or other sources of liquidity. Any future repurchases of shares of the Company's common stock will be subject to the 1% excise tax under the IRA. As of December 31, 2022, the Company has repurchased 500,000 shares for approximately $10.6 million, leaving $59.4 million of share repurchases authorized under the New Stock Repurchase Program. Dividends The Company declared the following dividends on common shares as of the filing date of this Form 10-K: Dividend per Share Dividends Paid Dividend Type Declaration Date Record Date Payable Date (in millions) $ 0.07 $ 3.6 Quarterly February 9, 2023 February 20, 2023 February 27, 2023 $ 0.88 $ 46.4 Special February 13, 2023 February 28, 2023 March 7, 2023 $ 0.07 $ 3.7 Quarterly April 25, 2023 May 5, 2023 May 12, 2023 $ 0.07 $ 3.7 Quarterly July 28, 2023 August 7, 2023 August 14, 2023 $ 0.07 $ 3.7 Quarterly October 24, 2023 November 3, 2023 November 10, 2023 $ 0.08 $ 4.2 Quarterly February 9, 2024 February 20, 2024 February 26, 2024 $ 0.50 $ 26.3 Special February 9, 2024 March 1, 2024 March 7, 2024 Preferred Shares |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company enters into natural gas swap contracts from time to time to hedge the exposure to variability in expected future cash flows associated with the fluctuations in the price of natural gas related to the Company’s forecasted sales. As of December 31, 2023 and December 31, 2022, the Company had no natural gas swap contracts outstanding. The Company’s natural gas swap contracts economically hedge certain risks but are not designated as hedges for financial reporting purposes. All changes in the fair value of these derivative instruments are recorded as other revenues in the |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value for which the fair value option was not elected: Cash and cash equivalents, short-term investments, restricted cash, receivables and accounts payable— The carrying amounts reported in the Balance Sheet approximate fair value due to the short-term nature of these assets and liabilities. Debt— The Company's outstanding debt is carried at cost. As of December 31, 2023, the Company had no borrowings outstanding under the ABL Facility, with $107.4 million available, net of $8.7 million of letters of credit issued and outstanding at such time. The estimated fair value of the Notes as of December 31, 2023 is approximately $156.0 million based upon observable market data (Level 2). |
Net Income (Loss) per Share
Net Income (Loss) per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income per Share The computation of basic net income per share is based on the number of weighted average common shares outstanding during the period. The computation of diluted net income per share is based on the weighted average number of shares outstanding plus the incremental shares that would be outstanding assuming issuance of restricted stock. The number of incremental shares is calculated by applying the treasury stock method. Basic and diluted net income per share was calculated as follows (in thousands, except per share data): For the years ended December 31, 2023 2022 2021 Numerator: Net income $ 478,629 $ 641,298 $ 150,881 Denominator: Weighted-average shares used to compute net income per share—basic 51,973 51,622 51,382 Dilutive restricted stock awards and units 72 93 63 Weighted-average shares used to compute net income per share—diluted 52,045 51,715 51,445 Net income per share—basic $ 9.21 $ 12.42 $ 2.94 Net income per share—diluted $ 9.20 $ 12.40 $ 2.93 As of December 31, 2023, there were 208,735 restricted stock unit awards for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share. These awards had a 71,999 share impact on dilutive weighted average shares for the year ended December 31, 2023. As of December 31, 2023, there were 422,277 shares granted under the 2017 Equity Plan to employees, for which neither the service based nor performance based vesting conditions were met as of the measurement date. As such, these shares have been excluded from basic and diluted earnings per share. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company identifies a business as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information. The Company has determined that its two underground mining operations are its operating segments. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Operating segments are aggregated into a reportable segment if the operating segments have similar quantitative economic characteristics and if the operating segments are similar in the following qualitative characteristics: i) nature of products and services; ii) nature of production processes; iii) type or class of customer for their products and services; iv) methods used to distribute the products or provide services; and v) if applicable, the nature of the regulatory environment. The Company has determined that the two operating segments are similar in both quantitative and qualitative characteristics and thus the two operating segments have been aggregated into one reportable segment. The Company has determined that its natural gas and royalty businesses and the Blue Creek mine development did not meet the criteria in ASC 280 to be considered as operating or reportable segments. Therefore, the Company has included their results in an “all other” category as a reconciling item to consolidated amounts. The Company does not allocate all of its assets, or its depreciation and depletion expense, selling, general and administrative expenses, other post-retirement benefits, transactions costs, restructuring costs, interest expense, reorganization items, net and income tax expense by segment. The following tables include reconciliations of segment information to consolidated amounts (in thousands): For the years ended December 31, 2023 2022 2021 Revenues Mining $ 1,647,992 1,707,579 $ 1,028,283 All other 28,633 31,159 30,933 Total revenues $ 1,676,625 $ 1,738,738 $ 1,059,216 For the years ended December 31, 2023 2022 2021 Capital Expenditures Mining $ 168,238 $ 151,194 $ 55,344 All other 323,436 54,048 2,549 Total capital expenditures $ 491,674 $ 205,242 $ 57,893 The Company evaluates the performance of its segment based on Segment Adjusted EBITDA, which is defined as net income adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative, other postretirement benefits, and certain transactions or adjustments that the CODM does not consider for the purposes of making decisions to allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA does not represent and should not be considered as an alternative to cost of sales under GAAP and may not be comparable to other similarly titled measures used by other companies. Below is a reconciliation of Segment Adjusted EBITDA to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands): For the years ended December 31, 2023 2022 2021 Segment Adjusted EBITDA $ 737,723 $ 996,974 $ 474,001 Other revenues 28,633 31,159 30,933 Cost of other revenues (37,486) (27,047) (28,899) Depreciation and depletion (127,356) (115,279) (141,418) Selling, general and administrative (51,817) (48,791) (35,593) Business interruption (8,291) (23,455) (21,372) Idle mine — (12,137) (33,899) Loss on early extinguishment of debt (11,699) — (9,678) Other (expense) income (1,027) 675 1,291 Interest income 40,699 12,438 1,111 Interest expense (17,960) (31,433) (36,500) Income tax expense (72,790) (141,806) (49,096) Net income $ 478,629 $ 641,298 $ 150,881 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 9, 2024, the Board declared a regular quarterly cash dividend of $0.08 per share, which was an increase of 14% over the regular cash dividend declared by the Board on October 24, 2023, totaling approximately $4.2 million, which will be paid on February 26, 2024 to stockholders of record as of the close of business on February 20, 2024. On February 13, 2024, the Board declared a special cash dividend of $0.50 per share, totaling approximately $26.3 million, which will be paid on March 7, 2024 to stockholders of record as of the close of business on March 1, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 478,629 | $ 641,298 | $ 150,881 |
Insider Trading Arrangements
Insider Trading Arrangements shares in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Jack K. Richardson [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 7, 2023, Jack K. Richardson, Chief Operating Officer of the Company, adopted a Rule 10b5-1 trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (a “Rule 10b5-1 Plan”). Mr. Richardson’s plan, which provides for the potential sale of up to 88,000 shares of the Company’s common stock, terminates upon the earlier of December 31, 2025 or the date all shares subject to the plan have been sold. | |
Name | Jack K. Richardson | |
Title | Chief Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 7, 2023 | |
Arrangement Duration | 785 days | |
Aggregate Available | 88 | 88 |
Walter J. Scheller, III [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 8, 2023, Walter J. Scheller, III, Chief Executive Officer and director of the Company, adopted a Rule 10b5-1 Plan. Mr. Scheller’s plan, which provides for the potential sale of up to 150,000 shares of the Company’s common stock, terminates upon the earlier of December 31, 2025 or the date all shares subject to the plan have been sold. | |
Name | Walter J. Scheller, III | |
Title | Chief Executive Officer and director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 8, 2023 | |
Arrangement Duration | 784 days | |
Aggregate Available | 150 | 150 |
Kelli K. Gant [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 9, 2023, Kelli K. Gant, Chief Administrative Officer and Corporate Secretary of the Company, adopted a Rule 10b5-1 Plan. Ms. Gant’s plan, which provides for the potential sale of up to 20,000 shares of the Company’s common stock, terminates upon the earlier of December 31, 2025 or the date all shares subject to the plan have been sold. | |
Name | Kelli K. Gant | |
Title | Chief Administrative Officer and Corporate Secretary | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 9, 2023 | |
Arrangement Duration | 783 days | |
Aggregate Available | 20 | 20 |
Dale W. Boyles [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 15, 2023, Dale W. Boyles, Chief Financial Officer of the Company, adopted a Rule 10b5-1 Plan. Mr. Boyles’ plan, which provided for the potential sale of up to 69,000 shares of the Company’s common stock, terminated upon the earlier of December 31, 2025 or the date all shares subject to the plan have been sold. On November 28, 2023, Mr. Boyles terminated the above-referenced Rule 10b5-1 Plan. | |
Name | Dale W. Boyles | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 15, 2023 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | November 28, 2023 | |
Arrangement Duration | 777 days | |
Aggregate Available | 69 | 69 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Acquisitions | Acquisitions On March 31, 2023, the Company acquired the remaining ownership interest in gas wells owned by an independent third party for $2.4 million. The purchase consideration has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The acquisition is not deemed to be material to the financial statements. On March 1, 2022, the Company acquired the remaining 50% interest in Black Warrior Methane and Black Warrior Transmission for $0.3 million. The purchase consideration has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The acquisition is not deemed to be material to the financial statements. |
Basis of Presentation | Basis of Presentation The accompanying financial statements include the accounts of Warrior Met Coal, Inc and its subsidiaries (the "Company"). All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates |
Concentrations of Credit Risk and Major Customers | Concentrations of Credit Risk and Major Customers |
Revenue Recognition | Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with the Company's customers are satisfied; for all contracts this occurs when control of the promised goods have been transferred to the Company's customers and risk of loss passes to the customer. For coal shipments to domestic customers via rail, control is transferred when the railcar is loaded. For coal shipments to international customers via ocean vessel, control is transferred when the vessel is loaded at the Port of Mobile in Alabama. Occasionally, the Company will sell coal stockpiles at the barge loadout or port upon which control, title and risk of loss transfers when stockpiles are segregated. For all steelmaking coal sales under average pricing contracts where pricing is not finalized when revenue is recognized, revenue is recorded based on estimated consideration to be received at the date of the sale. For natural gas sales, control is transferred when the gas has been transferred to the pipeline. Revenue is disaggregated between coal sales within the Company's mining segment and natural gas sales included in all other revenues, as disclosed in Note 20. The Company's coal and gas sales generally include up to 45-day payment terms following the transfer of control of the goods to the customer. The Company typically does not include extended payment terms in its contracts with customers. |
Trade Accounts Receivable and Allowance for Credit Losses | Trade Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are stated at cost. Trade accounts receivable represent customer obligations that are derived from revenue recognized from contracts with customers. Credit is extended based on an evaluation of the individual customer's financial condition. The Company maintains trade credit insurance on the majority of its customers and the geographic regions of coal shipments to these customers. In some instances, the Company requires letters of credit, cash collateral or prepayments from its customers on or before shipment to mitigate the risk of loss. These efforts have consistently resulted in the Company recognizing no historical credit losses. The Company also has never had to have a claim against its trade credit insurance policy. In order to estimate the allowance for credit losses on trade accounts receivable, the Company utilizes an aging approach in which potential impairment is calculated based on how long a receivable has been outstanding (e.g., current, 1-31, 31-60, etc.). The Company calculates an expected credit loss rate based on the Company’s historical credit loss rate, the risk characteristics of its customers, and the current steelmaking coal and steel market environments. As of December 31, 2023, the estimated allowance for credit losses was immaterial and did not have a material impact on the Company's financial statements. |
Shipping and Handling | Shipping and Handling Costs incurred to transport coal to the point of sale at the Port of Mobile, Alabama, are included in cost of sales and the gross amounts billed to customers, if any, to cover shipping and handling to the ultimate/final destination are included in sales. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include short-term deposits and highly liquid investments that have original maturities of three months or less when purchased and are stated at cost, which approximates fair value. |
Short-Term Investments | Short-Term Investments Instruments with maturities greater than three months, but less than twelve months, are included in short-term investments. The Company purchases United States Treasury bills with maturities ranging from six to twelve months which are classified as held to maturity and are carried at amortized cost, which approximates fair value. The Company also purchases fixed income securities and certificates of deposits with varying maturities that are classified as available for sale and are carried at fair value. Securities classified as held to maturity securities are those securities that management has the intent and ability to hold to maturity. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value. Coal inventory costs include labor, supplies, equipment costs, operating overhead, freight, royalties, depreciation and depletion and other related costs. Coal inventories are valued using the first-in, first-out inventory valuation method. The valuation of coal inventories is subject to estimates due to possible gains and losses resulting from inventory movements from the mine site to storage facilities, inherent inaccuracies in belt scales and aerial surveys used to measure quantities and fluctuations in moisture content. Periodic adjustments to coal tonnages on hand are made for an estimate of coal shortages and overages due to these inherent gains and losses, primarily based on historical results from aerial surveys and periodic coal pile clean-ups. Supplies inventories are valued using the average cost method of accounting. Management evaluates its supplies inventory in terms of excess and obsolete exposures which includes such factors as anticipated usage, inventory turnover, inventory levels and ultimate market value. A reserve for excess and obsolete supplies inventory is established and charged to cost of sales in the Statements of Operations. |
Deferred Longwall Move Expenses | Deferred Longwall Move Expenses Direct costs, including labor and supplies, associated with moving longwall equipment and the related equipment refurbishment costs are deferred and included in prepaid expenses. These deferred costs are amortized on a units-of-production basis into cost of sales over the life of the subsequent panel of coal mined by the longwall equipment. See Note 4 for further disclosures related to deferred longwall move expenses. |
Advanced Mining Royalties | Advanced Mining Royalties Lease rights to coal reserves are often acquired in exchange for royalty payments. Advance mining royalties are advance payments made to lessors under terms of mineral lease agreements that are recoupable against future production royalties. These advance payments are deferred and charged to operations as the coal reserves are mined. Advance mining royalties are included in other long-term assets. |
Property, Plant and Equipment | Property, Plant and Equipment Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is recorded principally on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line method over the lesser of the useful life of the improvement or the remaining lease term. Estimated useful lives used in computing depreciation expense range from three fifteen Deferred Mine Development Costs of developing new underground mines and certain underground expansion projects are capitalized. Underground development costs, which are costs incurred to make the coal physically accessible, may include construction permits and licenses, mine design, construction of access roads, main entries, airshafts, roof protection and other facilities. Mine development costs are amortized primarily on a units-of-production basis over the estimated reserve tons directly benefiting from the capital expenditures. Costs amortized during the production phase of a mine are capitalized into inventory and expensed to cost of sales as the coal is sold. Coal sales revenue related to incidental production during the development phase are recorded as sales with an offset to cost of sales based on the estimated cost per ton sold for the mine when the asset is in place for its intended use. Owned and Leased Mineral Interests Costs to obtain coal reserves and lease mineral rights are capitalized based on cost or the fair value at acquisition and depleted using the units-of-production method over the life of proven and probable reserves. Lease agreements are generally long-term in nature (original terms range from 10 to 50 years) and substantially all of the leases contain provisions that allow for automatic extension of the lease term provided certain requirements are met. Depletion expense was $9.6 million, $7.4 million, and $8.3 million for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, respectively, and is included in depreciation and depletion in the accompanying Statements of Operations. Asset Retirement Obligations The Company has certain asset retirement obligations primarily related to mine closing reclamation costs, perpetual water care costs and other costs associated with dismantling and removing facilities. Asset retirement obligations are determined for each mine using various estimates and assumptions, including estimates of disturbed acreage as determined from engineering data, estimates of future costs to reclaim the disturbed acreage and the timing of related cash flows, discounted using a credit-adjusted, risk-free rate. The Company's asset retirement obligations also include estimates to reclaim gas wells in accordance with the Oil and Gas Board of Alabama. On at least an annual basis, the Company reviews the entire asset retirement obligation liability and makes necessary adjustments for permit changes, the anticipated timing of mine closures, and revisions to cost estimates and productivity assumptions to reflect current experience. As changes in estimates occur, the carrying amount of the obligation and asset are revised to reflect the new estimate after applying the appropriate credit-adjusted, risk-free discount rate. The future costs of these obligations are accrued at the estimated fair value in the period in which they are incurred if a reasonable estimate of fair value can be made. The present value of the estimated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset. For sites where there is no asset, expense or income is recognized for changes in estimates. Capitalized asset retirement costs are amortized on a units-of-production basis over the estimated reserves. Accretion of the asset retirement obligation is recognized over time and generally will escalate over the life of the producing asset, typically as production declines. Accretion is included in cost of sales on the Statements of Operations. Accrued mine closing costs, perpetual care costs and reclamation costs and other costs of dismantling and removing facilities are regularly reviewed by management and revised for changes in future estimated costs and regulatory requirements, as necessary. For ongoing operations, adjustments to the liability result in an adjustment to the corresponding asset. For some operations, adjustments to the liability are recognized as income or expense in the period the adjustment is recorded as no asset was recorded to offset the liability established during acquisition accounting related to the acquisition of certain assets of Walter Energy as the operations were idle at that time. Any difference between the recorded obligation and the actual cost of reclamation is recorded in profit or loss in the period the obligation is settled. See Note 8 for further disclosures related to asset retirement obligations. Impairment of Long-Lived Assets Property, plant and equipment and other long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that would indicate possible impairment. When impairment indicators exist, the Company uses an estimate of the future undiscounted cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, impairment is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset group. Fair value is generally determined using market quotes, if available, or a discounted cash flow approach. The Company’s estimate of future undiscounted cash flows is based on assumptions including long-term steelmaking coal pricing forecasts, anticipated production volumes and mine operating costs for the life of the mine or estimated useful life of the asset. |
Equity Award Compensation | Equity Award Compensation The Company accounts for equity award-based compensation to employees and non-employee/directors in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. The Company recognizes forfeitures as they occur. The Company recognizes compensation expense associated with equity awards for all awards made to employees as the requisite service, performance and market vesting conditions are met. For units granted containing only service and performance conditions, the fair value of the award is equal to the market price of the Company's common stock at the date of grant. For units granted containing only a market condition, the fair value of the award is determined utilizing a Monte Carlo simulation model which incorporates the total stockholder return hurdles set for each grant. Compensation expense for equity awards with a service-only condition is recognized over the employee’s requisite service period using a graded vesting method. For awards with a performance condition that affects vesting, the performance condition is not considered in determining the award’s grant-date fair value; however, the performance conditions are considered when estimating the quantity of awards that are expected to vest. No compensation expense is recorded for awards with performance conditions until the performance condition is determined to be probable of achievement. For awards with a market condition that affects vesting, the market condition is considered in determining the award’s grant-date fair value. Compensation expense for awards with a market condition is recognized straight-line over the derived or implied service period. Compensation expense for equity awards is included in cost of sales (exclusive of items shown separately below) and selling, general and administrative costs in the accompanying Statements of Operations. |
Deferred Financing Costs | Deferred Financing Costs |
Income Taxes | Income Taxes The Company records a tax provision for the expected tax effects of the reported results of operations. The provision for income taxes is determined using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax impact of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is believed more likely than not to be realized. When the Company concludes that all or part of the net deferred income tax assets are not realizable in the future, the Company makes an adjustment to the valuation allowance that is charged to earnings in the period that such determination was made. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level hierarchy has been established for valuing assets and liabilities based on how transparent (observable) the inputs are that are used to determine fair value, with the inputs considered most observable categorized as Level 1 and those that are the least observable categorized as Level 3. Hierarchy levels are defined as follows: Level 1: Quoted prices in active markets for identical assets and liabilities. Level 2: Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. |
Leases | Leases |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker (CODM). The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows or financial condition. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which focuses on the rate reconciliation and income taxes paid. ASU No. 2023-09 requires a public business entity ("PBE") to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all period presented. The Company early adopted this ASU and the required disclosures are disclosed in Note 7. |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net are summarized as follows (in thousands): December 31, 2023 December 31, 2022 Coal $ 129,989 $ 109,822 Raw materials, parts, supplies and other, net 53,960 44,217 Total inventories, net $ 183,949 $ 154,039 |
Prepaid Expenses and Other (Tab
Prepaid Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses | Prepaid expenses and other consisted of the following (in thousands): December 31, 2023 December 31, 2022 Deferred longwall move expenses $ 18,513 $ 18,952 Prepaid insurance 1,991 1,424 Other 7,049 5,143 Total prepaid expenses and other $ 27,553 $ 25,519 |
Mineral Interests and Propert_2
Mineral Interests and Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment are summarized as follows (in thousands): December 31, 2023 December 31, 2022 Land $ 74,631 $ 72,404 Land improvements 18,372 18,372 Building and leasehold improvements 99,121 81,737 Mine development and infrastructure costs 95,021 70,805 Machinery and equipment 1,087,635 852,141 Financing lease right of use asset 105,469 97,550 Construction in progress 425,124 168,025 Total 1,905,373 1,361,034 Less: Accumulated depreciation (725,764) (622,087) Property, plant and equipment, net $ 1,179,609 $ 738,947 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Long-Term Assets | Other long-term assets consisted of the following (in thousands): December 31, 2023 December 31, 2022 Advance mining royalties $ 11,268 $ 7,087 ABL Facility origination fees 3,003 4,003 Other 7,716 8,741 Total other long-term assets $ 21,987 $ 19,831 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consisted of the following (in thousands): For the years ended December 31, 2023 2022 2021 Current Federal $ 19,914 $ — $ — State 5 — — 19,919 — — Deferred Federal 51,153 143,897 19,031 State 1,718 (2,091) 30,065 52,871 141,806 49,096 Total $ 72,790 $ 141,806 $ 49,096 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 21%) by income before income taxes as a result of the following (in thousands): For the years ended December 31, 2023 2022 2021 Amount Rate Amount Rate Amount Rate Income before income tax expense 551,419 $ 783,104 $ 199,977 Tax expense at statutory tax rate 115,798 21.0 % $ 164,452 21.0 % $ 41,995 21.0 % Effect of: Section 250: foreign derived intangible income (26,077) (4.7) % — — % — — % Depletion (21,811) (4.0) % (23,638) (3.0) % (12,227) (6.1) % State and local income tax, net of federal effect 1,925 0.3 % 2,115 0.3 % (22,387) (11.2) % Valuation allowance on deferred tax assets (417) (0.1) % (4,519) (0.6) % 45,952 23.0 % Section 45I marginal well credit — — % (87) — % (4,702) (2.4) % Other 3,372 0.6 % 3,483 0.4 % 465 0.2 % Tax expense recognized $ 72,790 13.2 % $ 141,806 18.1 % $ 49,096 24.6 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred income tax assets and liabilities were (in thousands): December 31, 2023 December 31, 2022 Deferred income tax assets: Net operating loss and credit carryforwards $ 47,940 $ 98,533 Inventory 2,204 1,560 Asset retirement obligations 17,900 14,466 Black lung obligations 6,134 6,391 Accrued expenses 6,259 5,955 Other 1,299 864 Total deferred income tax assets 81,736 127,769 Less: valuation allowance for deferred income tax assets (41,016) (41,433) Net deferred income tax assets 40,720 86,336 Deferred income tax liabilities: Prepaid expenses (6,757) (8,308) Property, plant and equipment (100,834) (92,748) Other (1,806) (1,086) Total deferred income tax liabilities (109,397) (102,142) Net deferred income tax liability $ (68,677) $ (15,806) |
Summary of Valuation Allowance | The following table shows the balance of the Company's valuation allowance and the associated activity during 2023: December 31, 2023 Beginning balance $ 41,433 Addition/(Reduction) - current tax expense/(benefit) (417) Ending balance $ 41,016 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Asset Retirement Obligations | Changes in the asset retirement obligations (“ARO”) were as follows (in thousands): December 31, 2023 December 31, 2022 Balance at beginning of period $ 68,481 $ 70,677 Accretion expense 4,175 3,485 Revisions to estimates 16,290 (3,470) Obligations settled (4,780) (2,211) Balance at end of period $ 84,166 $ 68,481 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): December 31, 2023 December 31, 2022 Accrued wages and employee benefits $ 36,828 $ 32,808 Accrued operating expenses 26,082 30,357 Accrued royalties 12,729 9,389 Accrued freight 4,195 1,842 Accrued interest 1,064 2,038 Accrued non-income taxes 714 1,001 Total accrued expenses $ 81,612 $ 77,435 |
Equity Award Plans (Tables)
Equity Award Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock | A summary of activity related to restricted stock unit award grants under the 2017 Equity Incentive Plan during the year ended December 31, 2023 is as follows: Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2022 756,063 $ 26.99 Granted 508,927 $ 29.90 Canceled (5,982) $ 36.60 Forfeited (324) $ 37.43 Vested (608,224) $ 29.10 Outstanding at December 31, 2023 650,460 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company's debt consisted of the following (in thousands): December 31, 2023 December 31, 2022 Weighted Average Interest Rate at December 31, 2023 Final Maturity Senior secured notes $ 156,517 $ 310,618 7.875% December 2028 ABL facility — — Varies 1 December 2026 Debt discount, net (3,494) (8,030) Total debt 153,023 302,588 Less: current debt — — Total long-term debt $ 153,023 $ 302,588 1 Borrowings under the ABL Facility bear interest at a rate equal to Secured Overnight Financing Rate ("SOFR") ranging currently from 1.5% and 2.0%, plus a credit adjustment spread, ranging currently from 0.11448% to 0.42826%, or an alternate base rate plus an applicable margin, which is determined based on the average availability of the commitments under the ABL Facility, ranging from 0.5% to 1.0%. |
Schedule of Maturities of Long-term Debt | The Company's minimum debt repayment schedule, excluding interest, as of December 31, 2023 is as follows (in thousands): Payments Due 2024 2025 2026 2027 2028 Thereafter Senior secured notes $ — $ — $ — $ — $ 153,023 $ — ABL facility — — — — — — Total $ — $ — $ — $ — $ 153,023 $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2023 December 31, 2022 Finance lease right-of-use assets, net (1) $ 67,014 $ 69,596 Finance lease liabilities Current 11,463 24,089 Noncurrent 8,756 9,002 Total finance lease liabilities $ 20,219 $ 33,091 Weighted average remaining lease term - finance leases (in months) 20.8 27.2 Weighted average discount rate - finance leases (2) 7.02 % 6.96 % (1) Finance lease right-of-use assets, recorded net of accumulated amortization of $38.5 million and $28.0 million, are included in property, plant and equipment, net in the Balance Sheets as of December 31, 2023 and December 31, 2022, respectively. See Note 5 for additional disclosure. |
Components of Lease Expense | The components of lease expense were as follows (in thousands): For the year ended December 31, 2023 2022 Operating lease cost (1): $ 29,675 $ 36,106 Finance lease cost: Amortization of leased assets 21,720 17,587 Interest on lease liabilities 1,935 3,284 Net lease cost $ 53,330 $ 56,977 (1) Includes leases that are for periods of 12 months or less. |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows (in thousands): Finance Leases (1) 2024 15,874 2025 4,423 2026 922 2027 — Thereafter — Total 21,219 Less: amount representing interest (1,000) Present value of lease liabilities $ 20,219 (1) Finance lease payments include $3.0 million of future payments required under signed lease agreements that have not yet commenced. These finance leases will commence during fiscal year 2024 with lease terms between one |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): For the year ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 1,935 $ 3,284 Financing cash flows from finance leases $ 32,330 $ 30,348 Non-cash right-of-use assets obtained in exchange for lease obligations: Finance leases $ 11,312 $ 8,150 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Dividends Declared | The Company declared the following dividends on common shares as of the filing date of this Form 10-K: Dividend per Share Dividends Paid Dividend Type Declaration Date Record Date Payable Date (in millions) $ 0.07 $ 3.6 Quarterly February 9, 2023 February 20, 2023 February 27, 2023 $ 0.88 $ 46.4 Special February 13, 2023 February 28, 2023 March 7, 2023 $ 0.07 $ 3.7 Quarterly April 25, 2023 May 5, 2023 May 12, 2023 $ 0.07 $ 3.7 Quarterly July 28, 2023 August 7, 2023 August 14, 2023 $ 0.07 $ 3.7 Quarterly October 24, 2023 November 3, 2023 November 10, 2023 $ 0.08 $ 4.2 Quarterly February 9, 2024 February 20, 2024 February 26, 2024 $ 0.50 $ 26.3 Special February 9, 2024 March 1, 2024 March 7, 2024 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) per Share | Basic and diluted net income per share was calculated as follows (in thousands, except per share data): For the years ended December 31, 2023 2022 2021 Numerator: Net income $ 478,629 $ 641,298 $ 150,881 Denominator: Weighted-average shares used to compute net income per share—basic 51,973 51,622 51,382 Dilutive restricted stock awards and units 72 93 63 Weighted-average shares used to compute net income per share—diluted 52,045 51,715 51,445 Net income per share—basic $ 9.21 $ 12.42 $ 2.94 Net income per share—diluted $ 9.20 $ 12.40 $ 2.93 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables include reconciliations of segment information to consolidated amounts (in thousands): For the years ended December 31, 2023 2022 2021 Revenues Mining $ 1,647,992 1,707,579 $ 1,028,283 All other 28,633 31,159 30,933 Total revenues $ 1,676,625 $ 1,738,738 $ 1,059,216 |
Reconciliation of Capital Expenditures from Segments to Consolidated | For the years ended December 31, 2023 2022 2021 Capital Expenditures Mining $ 168,238 $ 151,194 $ 55,344 All other 323,436 54,048 2,549 Total capital expenditures $ 491,674 $ 205,242 $ 57,893 |
Reconciliation of Net Income (Loss) from Segments to Consolidated | Below is a reconciliation of Segment Adjusted EBITDA to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands): For the years ended December 31, 2023 2022 2021 Segment Adjusted EBITDA $ 737,723 $ 996,974 $ 474,001 Other revenues 28,633 31,159 30,933 Cost of other revenues (37,486) (27,047) (28,899) Depreciation and depletion (127,356) (115,279) (141,418) Selling, general and administrative (51,817) (48,791) (35,593) Business interruption (8,291) (23,455) (21,372) Idle mine — (12,137) (33,899) Loss on early extinguishment of debt (11,699) — (9,678) Other (expense) income (1,027) 675 1,291 Interest income 40,699 12,438 1,111 Interest expense (17,960) (31,433) (36,500) Income tax expense (72,790) (141,806) (49,096) Net income $ 478,629 $ 641,298 $ 150,881 |
Business and Basis of Present_2
Business and Basis of Presentation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Idle mine costs | $ 0 | $ 12,137 | $ 33,899 | ||
Business interruption costs | $ 8,291 | $ 23,455 | $ 21,372 | ||
Gas Wells | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Payments to acquire equity method investments | $ 2,400 | ||||
Black Warrior Methane (BWM) | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Equity method investment, ownership percentage | 50% | ||||
Black Warrior Transmission (BWT) | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Equity method investment, ownership percentage | 50% | ||||
Black Warrior Transmission (BWT) And Black Warrior Methane (BWM) | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Payments to acquire equity method investments | $ 300 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Concentrations of Credit Risk and Major Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Other revenues | $ 1,676,625 | $ 1,738,738 | $ 1,059,216 |
Customer Concentration Risk | Sales Revenue, Net | E-Commodities Holdings Private Limited | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.90% | ||
Other revenues | $ 246,400 | ||
Customer Concentration Risk | Sales Revenue, Net | Salzgitter Flachstahl GMBH | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.40% | 12% | 11.40% |
Other revenues | $ 205,700 | $ 207,800 | $ 118,100 |
Customer Concentration Risk | Sales Revenue, Net | Exiros BV Sucursal Uruguay | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.80% | ||
Other revenues | $ 195,300 | ||
Customer Concentration Risk | Sales Revenue, Net | Xcoal Energy And Resources | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19.10% | 51% | |
Other revenues | $ 330,100 | $ 526,200 | |
Customer Concentration Risk | Sales Revenue, Net | Thyssenkrupp Steel Europe AG | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.80% | ||
Other revenues | $ 187,000 | ||
Europe, South America & Asia | Geographic Concentration Risk | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 98.30% | ||
Europe, South America & Asia | Geographic Concentration Risk | Trade Receivables | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 97.80% | ||
Europe | Geographic Concentration Risk | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 48% | ||
Asia | Geographic Concentration Risk | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 29% | ||
South America | Geographic Concentration Risk | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21% | ||
United States | Geographic Concentration Risk | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 2% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Short-term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Short-term investments | $ 9,030 | $ 8,608 |
Cash And Fixed Income Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Short-term investments | $ 9,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | Dec. 31, 2023 |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Land Improvements and Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Land Improvements and Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 30 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Owned and Leased Mineral Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depletion | $ 9.6 | $ 7.4 | $ 8.3 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Mineral rights, lease term | 10 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Mineral rights, lease term | 50 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Deferred Financing Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Origination fees | $ (3,003) | $ (4,003) |
ABL facility | Citibank | ||
Line of Credit Facility [Line Items] | ||
Origination fees | (3,500) | (8,000) |
Senior Secured Notes Due 2024 | Senior secured notes | ||
Line of Credit Facility [Line Items] | ||
Unamortized deferred financing costs and debt discount | $ 3,000 | $ 4,000 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Coal | $ 129,989 | $ 109,822 |
Raw materials, parts, supplies and other, net | 53,960 | 44,217 |
Total inventories, net | $ 183,949 | $ 154,039 |
Prepaid Expenses and Other (Det
Prepaid Expenses and Other (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred longwall move expenses | $ 18,513 | $ 18,952 |
Prepaid insurance | 1,991 | 1,424 |
Other | 7,049 | 5,143 |
Total prepaid expenses and other | $ 27,553 | $ 25,519 |
Mineral Interests and Propert_3
Mineral Interests and Property, Plant and Equipment, net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Mineral interests | $ 147,700 | $ 147,700 | |
Mineral properties, accumulated depletion | (67,300) | (59,100) | |
Depreciation and depletion | 127,356 | 115,279 | $ 141,418 |
Capitalized interest | $ 12,100 | $ 1,400 |
Mineral Interests and Propert_4
Mineral Interests and Property, Plant and Equipment, net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Financing lease right of use asset | $ 105,469 | $ 97,550 |
Total | 1,905,373 | 1,361,034 |
Less: Accumulated depreciation | (725,764) | (622,087) |
Property, plant and equipment, net | 1,179,609 | 738,947 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 74,631 | 72,404 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,372 | 18,372 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 99,121 | 81,737 |
Mine development and infrastructure costs | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 95,021 | 70,805 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,087,635 | 852,141 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 425,124 | $ 168,025 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Advance mining royalties | $ 11,268 | $ 7,087 |
ABL Facility origination fees | 3,003 | 4,003 |
Other | 7,716 | 8,741 |
Total other long-term assets | $ 21,987 | $ 19,831 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 19,914 | $ 0 | $ 0 |
State | 5 | 0 | 0 |
Total current income tax expense (benefit) | 19,919 | 0 | 0 |
Deferred | |||
Federal | 51,153 | 143,897 | 19,031 |
State | 1,718 | (2,091) | 30,065 |
Total deferred income tax expense (benefit) | 52,871 | 141,806 | 49,096 |
Tax expense recognized | $ 72,790 | $ 141,806 | $ 49,096 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 12 Months Ended | |||
Feb. 14, 2020 shares $ / shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Income Tax Disclosure [Line Items] | ||||
Income tax expense | $ 72,790,000 | $ 141,806,000 | $ 49,096,000 | |
Effective tax rate (as a percent) | 13.20% | 18.10% | 24.60% | |
Cash paid for income taxes | $ 27,004,000 | $ 0 | $ 0 | |
Income tax receivable | 7,833,000 | 0 | ||
Section 250: foreign derived intangible income | 26,077,000 | 0 | 0 | |
Section 45I marginal well credit | 0 | 87,000 | $ 4,702,000 | |
Exercise price per Right (in dollars per share) | $ / shares | $ 159 | |||
Deferred income tax valuation allowance | 41,016,000 | 41,433,000 | ||
Unrecognized tax benefits | 0 | $ 0 | ||
Alabama | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred income tax valuation allowance | 41,000,000 | |||
Series A Junior Participating Preferred Stock | ||||
Income Tax Disclosure [Line Items] | ||||
Stock entitled to be purchased per Right (in shares) | shares | 0.001 | |||
Preferred Stock Purchase Right | ||||
Income Tax Disclosure [Line Items] | ||||
Rights to be issued per share of common stock (in shares) | shares | 1 | |||
Maximum threshold of beneficial ownership interest acquired before dilution (as a percent) | 4.99% | |||
Maximum interest of beneficial ownership held by existing stockholder before dilution of interest (as a percent) | 5% | |||
Redemption price per Right (in dollars per share) | $ / shares | $ 0.01 | |||
State | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards | $ 928,200,000 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income before income tax expense | $ 551,419 | $ 783,104 | $ 199,977 |
Amount | |||
Tax expense at statutory tax rate | 115,798 | 164,452 | 41,995 |
Section 250: foreign derived intangible income | (26,077) | 0 | 0 |
Depletion | (21,811) | (23,638) | (12,227) |
State and local income tax, net of federal effect | 1,925 | 2,115 | (22,387) |
Valuation allowance on deferred tax assets | (417) | (4,519) | 45,952 |
Section 45I marginal well credit | 0 | (87) | (4,702) |
Other | 3,372 | 3,483 | 465 |
Tax expense recognized | $ 72,790 | $ 141,806 | $ 49,096 |
Rate | |||
Tax expense at statutory tax rate | 21% | 21% | 21% |
Depletion | (4.00%) | (3.00%) | (6.10%) |
Section 250: foreign derived intangible income | (4.70%) | 0% | 0% |
State and local income tax, net of federal effect | 0.30% | 0.30% | (11.20%) |
Valuation allowance on deferred tax assets | (0.10%) | (0.60%) | 23% |
Section 45I marginal well credit | 0% | 0% | (2.40%) |
Other | 0.60% | 0.40% | 0.20% |
Effective tax rate (as a percent) | 13.20% | 18.10% | 24.60% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Net operating loss and credit carryforwards | $ 47,940 | $ 98,533 |
Inventory | 2,204 | 1,560 |
Asset retirement obligations | 17,900 | 14,466 |
Black lung obligations | 6,134 | 6,391 |
Accrued expenses | 6,259 | 5,955 |
Other | 1,299 | 864 |
Total deferred income tax assets | 81,736 | 127,769 |
Less: valuation allowance for deferred income tax assets | (41,016) | (41,433) |
Net deferred income tax assets | 40,720 | 86,336 |
Deferred income tax liabilities: | ||
Prepaid expenses | (6,757) | (8,308) |
Property, plant and equipment | (100,834) | (92,748) |
Other | (1,806) | (1,086) |
Total deferred income tax liabilities | (109,397) | (102,142) |
Net deferred income tax liability | $ (68,677) | $ (15,806) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset Valuation Allowance (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Deferred Tax Asset Valuation Roll Forward | |
Beginning balance | $ 41,433 |
Addition/(Reduction) - current tax expense/(benefit) | (417) |
Ending balance | $ 41,016 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Changes in Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO, beginning balance | $ 68,481 | $ 70,677 |
Accretion expense | 4,175 | 3,485 |
Revisions to estimates | 16,290 | (3,470) |
Obligations settled | (4,780) | (2,211) |
ARO, ending balance | $ 84,166 | $ 68,481 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Asset retirement obligations, current | $ 12,500 | $ 3,900 |
Asset retirement obligations, noncurrent | 71,666 | 64,581 |
Adjustment to liability reflected in income | $ 300 | $ 1,400 |
Adjustment to liability reflected in income (in dollars per share) | $ 0.01 | $ 0.03 |
Surety Bond | ||
Loss Contingencies [Line Items] | ||
Loss contingency | $ 44,300 | |
Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Loss contingency | $ 5,200 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued wages and employee benefits | $ 36,828 | $ 32,808 |
Accrued operating expenses | 26,082 | 30,357 |
Accrued royalties | 12,729 | 9,389 |
Accrued freight | 4,195 | 1,842 |
Accrued interest | 1,064 | 2,038 |
Accrued non-income taxes | 714 | 1,001 |
Total accrued expenses | $ 81,612 | $ 77,435 |
Pneumoconiosis ("Black Lung")_2
Pneumoconiosis ("Black Lung") Obligations (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Jul. 12, 2022 | May 31, 2020 | Feb. 21, 2020 | Apr. 01, 2016 | |
Self Insurance Reserve Disclosure [Abstract] | ||||||
Deductible amount per black lung claim | $ 1,000,000 | $ 500,000 | ||||
Collateral securities | $ 28,000,000 | $ 39,800,000 | $ 17,000,000 | |||
Surety Bonds | 18,600,000 | $ 18,600,000 | ||||
Short-term investments | 9,000,000 | 8,600,000 | ||||
Black lung trust | 1,800,000 | 2,100,000 | ||||
Estimated total black lung liabilities | 28,800,000 | 30,300,000 | ||||
Black lung obligations, current | 1,900,000 | 2,800,000 | ||||
Black lung obligations, noncurrent | $ 26,966,000 | $ 27,407,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
UMWA Collective Bargaining Agreement | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Proportion of company's employees represented by CBA (as a percent) | 21.10% | |||
Successor Benefit Plan | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contributions to defined contribution plans | $ 4 | $ 3.2 | $ 2.5 |
Equity Award Plans - Narrative
Equity Award Plans - Narrative (Details) - 2017 Equity Plan $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant (in shares) | shares | 4,332,083 |
Stock compensation expense | $ 18,300 |
Unrecognized compensation expense | $ 1,700 |
Equity Award Plans - Schedule o
Equity Award Plans - Schedule of Restricted Stock (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Outstanding, end of period (in shares) | 208,735 |
2017 Equity Plan | |
Shares | |
Nonvested, beginning of period (in shares) | 756,063 |
Granted (in shares) | 508,927 |
Canceled (in shares) | (5,982) |
Forfeited (in shares) | (324) |
Vested (in shares) | (608,224) |
Outstanding, end of period (in shares) | 650,460 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning of period (in dollars per share) | $ / shares | $ 26.99 |
Granted (in dollars per share) | $ / shares | 29.90 |
Canceled (in dollars per share) | $ / shares | 36.60 |
Forfeited (in dollars per share) | $ / shares | 37.43 |
Vested (in dollars per share) | $ / shares | $ 29.10 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Debt discount, net | $ (3,494) | $ (8,030) |
Long-term debt | 153,023 | 302,588 |
Less: current debt | 0 | 0 |
Total long-term debt | 153,023 | 302,588 |
ABL facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | 0 |
ABL facility | Secured Overnight Financing Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable rate (as a percent) | 1.50% | |
ABL facility | Secured Overnight Financing Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable rate (as a percent) | 2% | |
ABL facility | Credit Adjustment Spread | Minimum | ||
Debt Instrument [Line Items] | ||
Variable rate (as a percent) | 0.11448% | |
ABL facility | Credit Adjustment Spread | Maximum | ||
Debt Instrument [Line Items] | ||
Variable rate (as a percent) | 0.42826% | |
ABL facility | Base Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable rate (as a percent) | 0.50% | |
ABL facility | Base Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable rate (as a percent) | 1% | |
Senior secured notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 156,517 | $ 310,618 |
Weighted average interest rate (as a percent) | 7.875% |
Debt - Minimum Debt Repayment S
Debt - Minimum Debt Repayment Schedule (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 153,023 |
Thereafter | 0 |
ABL facility | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Senior secured notes | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 153,023 |
Thereafter | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 12 Months Ended | |||||
Dec. 06, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 15, 2023 USD ($) | Oct. 15, 2018 USD ($) | |
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding | $ 8,700,000 | |||||
Loss on extinguishment of debt | 11,699,000 | $ 0 | $ 9,678,000 | |||
Senior Secured Notes Due 2024, New Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 108% | |||||
Senior Secured Notes Due 2024, New Notes | Upon occurrence of a change in control | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101% | |||||
Senior Secured Notes Due 2024, New Notes | Prior to making certain restricted payments | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 103% | |||||
Senior Secured Notes Due 2024, New Notes | Upon occurrence of asset sales or dispositions | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 100% | |||||
Senior secured notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 40% | |||||
Senior secured notes | Senior secured notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 350,000,000 | |||||
Stated interest rate (as a percent) | 7.875% | |||||
Percentage of initial price | 99.30% | |||||
Extinguishment of debt | 8,000,000 | |||||
Loss on extinguishment of debt | 100,000 | |||||
Senior secured notes | Senior Secured Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 8% | |||||
Loss on extinguishment of debt | 9,700,000 | |||||
Senior secured notes | Senior Secured Notes Due 2024, New Notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 100% | |||||
ABL facility | Citibank | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate lender commitment | $ 65,000,000 | |||||
Remaining borrowing capacity | $ 107,400,000 | |||||
Coverage ratio | 1 | |||||
ABL facility | Citibank | Second Amended and Restated Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate lender commitment | $ 116,000,000 | |||||
ABL facility | Citibank | Swingline loan | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate lender commitment | $ 10,000,000 | |||||
Aggregate principal amount drawn | $ 0 | |||||
ABL facility | Citibank | Letter of credit | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding | $ 8,700,000 |
Debt - Offers to Purchase the N
Debt - Offers to Purchase the Notes (Details) - USD ($) | 12 Months Ended | ||||
Sep. 07, 2023 | Aug. 09, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 11,699,000 | $ 0 | $ 9,678,000 | ||
Special dividends, maximum | $ 299,901,000 | ||||
Senior secured notes | Senior Secured Notes Due 2028 , Restricted Payment Offer | |||||
Debt Instrument [Line Items] | |||||
Repurchase amount | 200,000 | ||||
Redemption price, percentage | 103% | ||||
Extinguishment of debt | $ 99,000 | ||||
Pro ration percentage | 49.5674% | ||||
Long-term debt, gross | $ 101,000 | ||||
Senior secured notes | Senior Secured Notes Due 2028 , Restricted Payment Offer | Maximum | |||||
Debt Instrument [Line Items] | |||||
Repurchase amount | $ 150,000,000 | ||||
Senior secured notes | Senior Secured Notes Due 2028, Tender Offer | |||||
Debt Instrument [Line Items] | |||||
Repurchase amount | 294,770,000 | ||||
Redemption price, percentage | 104.25% | ||||
Extinguishment of debt | $ 146,002,000 | ||||
Pro ration percentage | 49.60% | ||||
Long-term debt, gross | $ 148,768,000 | ||||
Senior secured notes | Senior Secured Notes Due 2028, Tender Offer | Maximum | |||||
Debt Instrument [Line Items] | |||||
Repurchase amount | $ 150,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Lessor, Lease, Description [Line Items] | |
Finance lease that have not yet commenced | $ 3 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Finance leases not yet commenced, term | 1 year |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Remaining lease terms | 5 years |
Finance leases not yet commenced, term | 2 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Finance lease right-of-use assets, net | $ 67,014 | $ 69,596 |
Finance lease liabilities | ||
Current | 11,463 | 24,089 |
Noncurrent | 8,756 | 9,002 |
Total finance lease liabilities | $ 20,219 | $ 33,091 |
Weighted average discount rate - finance leases | 7.02% | 6.96% |
Weighted average remaining lease term - finance leases (in months) | 1 year 8 months 23 days | 2 years 3 months 7 days |
Finance lease right-of-use assets, accumulated amortization | $ 38,500 | $ 28,000 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 29,675 | $ 36,106 |
Finance lease cost: | ||
Amortization of leased assets | 21,720 | 17,587 |
Interest on lease liabilities | 1,935 | 3,284 |
Net lease cost | $ 53,330 | $ 56,977 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 15,874 |
2025 | 4,423 |
2026 | 922 |
2027 | 0 |
Thereafter | 0 |
Total | 21,219 |
Less: amount representing interest | (1,000) |
Present value of lease liabilities | 20,219 |
Future payments required under signed lease agreements that have not yet commenced | $ 3,000 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from finance leases | $ 1,935 | $ 3,284 | |
Financing cash flows from finance leases | 32,330 | 30,348 | $ 29,022 |
Non-cash right-of-use assets obtained in exchange for lease obligations: | |||
Finance leases | $ 11,312 | $ 8,150 | $ 46,961 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Settlement proceeds | $ 200,000 | $ 700,000 | |
Throughput obligation | 0 | 0 | |
Coal royalty expense | $ 120,500,000 | $ 138,900,000 | $ 65,400,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2023 | Mar. 26, 2019 | May 02, 2018 | |
Class of Stock [Line Items] | ||||
Common stock shares authorized (in shares) | 140,000,000 | 140,000,000 | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
New Stock Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Authorized amount | $ 70,000,000 | |||
Shares repurchased (in shares) | 500,000 | |||
Shares repurchased, value | $ 10,600,000 | |||
Remaining authorized repurchase amount | $ 59,400,000 | |||
The First Stock Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Authorized amount | $ 40,000,000 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared to Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||||||||
Mar. 01, 2024 | Feb. 20, 2024 | Feb. 09, 2024 | Nov. 03, 2023 | Oct. 24, 2023 | Aug. 07, 2023 | Jul. 28, 2023 | May 05, 2023 | Apr. 25, 2023 | Feb. 28, 2023 | Feb. 20, 2023 | Feb. 13, 2023 | Feb. 09, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||||||||||||||
Dividends Paid | $ 61,077 | $ 79,665 | $ 10,455 | |||||||||||||
Quarterly Dividend | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock dividends per share paid (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | ||||||||||||
Dividends Paid | $ 3,700 | $ 3,700 | $ 3,700 | $ 3,600 | ||||||||||||
Quarterly Dividend | Forecast | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Dividends Paid | $ 4,200 | |||||||||||||||
Quarterly Dividend | Subsequent Event | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock dividends per share paid (in dollars per share) | $ 0.08 | |||||||||||||||
Special Dividend | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock dividends per share paid (in dollars per share) | $ 0.88 | |||||||||||||||
Dividends Paid | $ 46,400 | |||||||||||||||
Special Dividend | Forecast | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Dividends Paid | $ 26,300 | |||||||||||||||
Special Dividend | Subsequent Event | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock dividends per share paid (in dollars per share) | $ 0.50 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Thousands, BTU in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) BTU | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Derivative [Line Items] | |||
Gain (loss) on derivatives | $ 0 | $ (4,043) | $ (1,595) |
Natural gas | Commodity Contract | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative energy measure (in BTUs) | BTU | 0 | ||
Gain (loss) on derivatives | $ (1,200) | $ (27,700) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Narrative (Details) | Dec. 31, 2023 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Letters of credit outstanding | $ 8,700,000 |
Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of debt instrument | 156,000,000 |
ABL Facility | ABL facility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Remaining borrowing capacity | 107,400,000 |
ABL facility | Citibank | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Outstanding debt under ABL Facility | 0 |
Remaining borrowing capacity | $ 107,400,000 |
Net Income (Loss) per Share - S
Net Income (Loss) per Share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income | $ 478,629 | $ 641,298 | $ 150,881 |
Denominator: | |||
Weighted-average shares used to compute net income (loss) per share—basic (in shares) | 51,973 | 51,622 | 51,382 |
Dilutive restricted stock awards and units (in shares) | 72 | 93 | 63 |
Weighted-average shares used to compute net income (loss) per share—diluted (in shares) | 52,045 | 51,715 | 51,445 |
Net income per share—basic (in dollars per share) | $ 9.21 | $ 12.42 | $ 2.94 |
Net income per share—diluted (in dollars per share) | $ 9.20 | $ 12.40 | $ 2.93 |
Net Income (Loss) per Share - N
Net Income (Loss) per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Dilutive restricted stock awards and units (in shares) | 72,000 | 93,000 | 63,000 |
Restricted Stock | 2017 Equity Plan | |||
Class of Stock [Line Items] | |||
Antidilutive securities excluded from the computation of EPS (in shares) | 422,277 | ||
Restricted Stock Units (RSUs) | |||
Class of Stock [Line Items] | |||
Common stock issues to employees and directors, unvested (in shares) | 208,735 | ||
Restricted Stock Units (RSUs) | 2017 Equity Plan | |||
Class of Stock [Line Items] | |||
Common stock issues to employees and directors, unvested (in shares) | 650,460 | 756,063 | |
Dilutive restricted stock awards and units (in shares) | 71,999 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 1 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Other revenues | $ 1,676,625 | $ 1,738,738 | $ 1,059,216 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Other revenues | 28,633 | 31,159 | 30,933 |
Mining | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Other revenues | $ 1,647,992 | $ 1,707,579 | $ 1,028,283 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 491,674 | $ 205,242 | $ 57,893 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 323,436 | 54,048 | 2,549 |
Mining | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 168,238 | $ 151,194 | $ 55,344 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Net Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Segment Adjusted EBITDA | $ 737,723 | $ 996,974 | $ 474,001 |
Other revenues | 1,676,625 | 1,738,738 | 1,059,216 |
Cost of other revenues | (37,486) | (27,047) | (28,899) |
Depreciation and depletion | (127,356) | (115,279) | (141,418) |
Selling, general and administrative | (51,817) | (48,791) | (35,593) |
Business interruption | (8,291) | (23,455) | (21,372) |
Idle mine | 0 | (12,137) | (33,899) |
Loss on early extinguishment of debt | (11,699) | 0 | (9,678) |
Other (expense) income | (1,027) | 675 | 1,291 |
Interest income | 40,699 | 12,438 | 1,111 |
Interest expense | (17,960) | (31,433) | (36,500) |
Income tax expense | (72,790) | (141,806) | (49,096) |
Net income | 478,629 | 641,298 | 150,881 |
Other revenues | |||
Segment Reporting Information [Line Items] | |||
Other revenues | $ 28,633 | $ 31,159 | $ 30,933 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||||||||
Mar. 01, 2024 | Feb. 20, 2024 | Feb. 09, 2024 | Nov. 03, 2023 | Oct. 24, 2023 | Aug. 07, 2023 | Jul. 28, 2023 | May 05, 2023 | Apr. 25, 2023 | Feb. 28, 2023 | Feb. 20, 2023 | Feb. 13, 2023 | Feb. 09, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | ||||||||||||||||
Payment of dividends | $ 61,077 | $ 79,665 | $ 10,455 | |||||||||||||
Quarterly Dividend | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends declared (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | ||||||||||||
Payment of dividends | $ 3,700 | $ 3,700 | $ 3,700 | $ 3,600 | ||||||||||||
Special Dividend | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends declared (in dollars per share) | $ 0.88 | |||||||||||||||
Payment of dividends | $ 46,400 | |||||||||||||||
Forecast | Quarterly Dividend | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Payment of dividends | $ 4,200 | |||||||||||||||
Forecast | Special Dividend | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Payment of dividends | $ 26,300 | |||||||||||||||
Subsequent Event | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Percentage of change in dividend | 14% | |||||||||||||||
Subsequent Event | Quarterly Dividend | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends declared (in dollars per share) | $ 0.08 | |||||||||||||||
Subsequent Event | Special Dividend | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends declared (in dollars per share) | $ 0.50 |