Alpha Metallurgical Resources Q2 2024: $1.7B Revenue, $474.8M Net Income

Ticker: AMR · Form: 10-Q · Filed: Aug 5, 2024 · CIK: 1704715

Sentiment: neutral

Topics: earnings, financials, coal

TL;DR

AMR Q2: $1.7B revenue, $474.8M profit. Strong performance continues.

AI Summary

Alpha Metallurgical Resources, Inc. reported its Q2 2024 results, with total revenues for the six months ended June 30, 2024, reaching $1.7 billion. The company's net income for the same period was $474.8 million. As of June 30, 2024, Alpha Metallurgical Resources had total assets of $3.4 billion and total liabilities of $1.1 billion.

Why It Matters

This filing provides insight into Alpha Metallurgical Resources' financial performance in the first half of 2024, impacting investor confidence and market valuation for coal producers.

Risk Assessment

Risk Level: medium — The company operates in the volatile coal industry, subject to commodity price fluctuations and regulatory changes.

Key Numbers

Key Players & Entities

FAQ

What were Alpha Metallurgical Resources' total revenues for the six months ended June 30, 2024?

Total revenues for the six months ended June 30, 2024, were $1.7 billion.

What was the company's net income for the first half of 2024?

The net income for the six months ended June 30, 2024, was $474.8 million.

What were the total assets of Alpha Metallurgical Resources as of June 30, 2024?

As of June 30, 2024, total assets were $3.4 billion.

What were the total liabilities of the company as of the end of Q2 2024?

Total liabilities as of June 30, 2024, amounted to $1.1 billion.

What is the company's primary industry classification?

Alpha Metallurgical Resources, Inc. is classified under BITUMINOUS COAL & LIGNITE SURFACE MINING [1221].

Filing Stats: 4,573 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-08-05 07:38:48

Key Financial Figures

Filing Documents

- Financial Information

Part I - Financial Information Item 1.

Financial Statements

Financial Statements Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and June 30, 2023 (Unaudited) 6 Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and June 30, 2023 (Unaudited) 7 Condensed Consolidated Balance Sheets as of June 3 0 , 2024 and December 31, 2023 (Unaudited) 8 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and June 30, 2023 (Unaudited) 9 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2024 and June 30, 2023 (Unaudited) 11 Notes to Condensed Consolidated Financial Statements (Unaudited) 12 (1) Business and Basis of Presentation 12 (2) Revenue 12 (3) Accumulated Other Comprehensive Loss 13 (4) Net Income Per Share 14 (5) Inventories, net 15 (6) Capital Stock 15 (7) Accrued Expenses and Other Current Liabilities 15 (8) Long-Term Debt 15 (9) Asset Retirement Obligations 16 (10) Fair Value of Financial Instruments and Fair Value Measurements 16 (11) Income Taxes 17 (12) Employee Benefit Plans 17 (13) Related Party Transactions 18 (14) Commitments and Contingencies 18 (15) Segment Information 21 Glossary 24 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Results of Operations 28 Liquidity and Capital Resources 35 Critical Accounting Policies and Estimates 40 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 41

- Other Information

Part II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 4. Mine Safety Disclosures 42 Item 5. Other Information 42 Item 6. Exhibits 42 3 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This report includes statements of our expectations, intentions, plans and beliefs that constitute "forward-looking statements." These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to our future prospects, developments and business strategies. We have used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should" and similar terms and phrases, including references to assumptions, in this report to identify forward-looking statements, but these terms and phrases are not the exclusive means of identifying such statements. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those expressed in or implied by these forward-looking statements. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: the financial performance of the company; our liquidity, results of operations and financial condition; our ability to generate sufficient cash or obtain financing to fund our business operations; depressed levels or declines in coal prices; railroad, barge, truck, port and other transportation availability, performance and costs; changes in domestic or international environmental laws and regulations, and court decisions,

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements ALPHA METALLURGICAL RESOURCES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues: Coal revenues $ 800,130 $ 853,807 $ 1,661,413 $ 1,760,505 Other revenues 3,839 4,564 6,628 9,101 Total revenues 803,969 858,371 1,668,041 1,769,606 Costs and expenses: Cost of coal sales (exclusive of items shown separately below) 663,809 583,514 1,312,122 1,122,651 Depreciation, depletion and amortization 43,380 32,226 84,081 61,649 Accretion on asset retirement obligations 6,257 6,376 12,400 12,753 Amortization of acquired intangibles, net 1,675 2,192 3,350 4,389 Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) 18,805 17,506 41,182 38,198 Other operating (income) loss ( 633 ) ( 1,546 ) 2,352 ( 2,638 ) Total costs and expenses 733,293 640,268 1,455,487 1,237,002 Income from operations 70,676 218,103 212,554 532,604 Other (expense) income: Interest expense ( 1,101 ) ( 1,856 ) ( 2,187 ) ( 3,576 ) Interest income 4,140 2,754 8,111 4,272 Equity loss in affiliates ( 5,917 ) ( 3,174 ) ( 7,557 ) ( 4,922 ) Miscellaneous expense, net ( 3,611 ) ( 874 ) ( 5,574 ) ( 243 ) Total other expense, net ( 6,489 ) ( 3,150 ) ( 7,207 ) ( 4,469 ) Income before income taxes 64,187 214,953 205,347 528,135 Income tax expense ( 5,278 ) ( 33,598 ) ( 19,443 ) ( 76,009 ) Net income $ 58,909 $ 181,355 $ 185,904 $ 452,126 Basic income per common share $ 4.53 $ 12.63 $ 14.29 $ 30.52 Diluted income per common share $ 4.49 $ 12.16 $ 14.11 $ 29.34 Weighted average shares – basic 13,013,684 14,362,072 13,007,905 14,814,099 Weighted average shares – diluted 13,111,010 14,910,633 13,173,803 15,410,994 Refer to accompanying Notes to Condensed Consolidated Financial Statements. 6 Table of Contents ALPHA METALLUR

Business

Business Alpha is a Tennessee-based mining company with operations in Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Alpha is a leading U.S. supplier of metallurgical coal products for the steel industry. Basis of Presentation Together, the condensed consolidated statements of operations, comprehensive income, balance sheets, cash flows and stockholders' equity for the Company are referred to as the "Condensed Consolidated Financial Statements." The Condensed Consolidated Financial Statements are also referenced across periods as "Condensed Consolidated Statements of Operations," "Condensed Consolidated Statements of Comprehensive Income," "Condensed Consolidated Balance Sheets," "Condensed Consolidated Statements of Cash Flows," and "Condensed Consolidated Statements of Stockholders' Equity." The Condensed Consolidated Financial Statements include all wholly-owned subsidiaries' results of operations for the three and six months ended June 30, 2024 and 2023. All significant intercompany transactions have been eliminated in consolidation. The accompanying interim Condensed Consolidated Financial Statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and in accordance with the rules and regulations of the United States Securities and Exchange Commission ("SEC") for Form 10-Q. Such rules and regulations allow the omission of certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S. GAAP as long as the financial statements are not misleading. In the opinion of management, these interim Condensed Consolidated Financial Statements reflect all normal and recurring adjustments necessary for a fair presentation of the results for the periods presented. Results of operations for the three and six months ended June 30, 2024 are not necessarily indica

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