|
Delaware
|
|
43-0921172
|
(State or other jurisdiction
|
|
(I.R.S. Employer
|
of incorporation or organization)
|
|
Identification Number)
|
One CityPlace Drive
|
|
|
Suite 300
|
|
|
St. Louis
|
|
|
Missouri
|
|
63141
|
(Address of principal executive offices)
|
|
(Zip code)
|
Title of each class
|
Trading symbol
|
Name of each exchange on which registered
|
Common stock, $.01 par value
|
ARCH
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|
|
|
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
Page
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
2
|
Arch Coal, Inc. and Subsidiaries
Condensed Consolidated Income Statements
(in thousands, except per share data)
|
|||||||||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
Revenues
|
$
|
570,222
|
|
|
$
|
592,349
|
|
|
$
|
1,125,405
|
|
|
$
|
1,167,644
|
|
Costs, expenses and other operating
|
|
|
|
|
|
|
|
|
|
||||||
Cost of sales (exclusive of items shown separately below)
|
451,088
|
|
|
474,388
|
|
|
889,559
|
|
|
929,168
|
|
||||
Depreciation, depletion and amortization
|
26,524
|
|
|
30,549
|
|
|
51,797
|
|
|
60,252
|
|
||||
Accretion on asset retirement obligations
|
5,137
|
|
|
6,993
|
|
|
10,274
|
|
|
13,985
|
|
||||
Amortization of sales contracts, net
|
11
|
|
|
3,248
|
|
|
76
|
|
|
6,299
|
|
||||
Change in fair value of coal derivatives and coal trading activities, net
|
(8,400
|
)
|
|
15,138
|
|
|
(21,381
|
)
|
|
11,724
|
|
||||
Selling, general and administrative expenses
|
25,209
|
|
|
24,756
|
|
|
49,298
|
|
|
50,704
|
|
||||
Costs related to proposed joint venture with Peabody Energy
|
3,018
|
|
|
—
|
|
|
3,018
|
|
|
—
|
|
||||
Loss on sale of Lone Mountain Processing, LLC
|
4,304
|
|
|
—
|
|
|
4,304
|
|
|
—
|
|
||||
Other operating income, net
|
(3,239
|
)
|
|
(7,318
|
)
|
|
(4,889
|
)
|
|
(14,250
|
)
|
||||
|
503,652
|
|
|
547,754
|
|
|
982,056
|
|
|
1,057,882
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from operations
|
66,570
|
|
|
44,595
|
|
|
143,349
|
|
|
109,762
|
|
||||
Interest expense, net
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense
|
(4,375
|
)
|
|
(5,050
|
)
|
|
(8,807
|
)
|
|
(10,445
|
)
|
||||
Interest and investment income
|
2,088
|
|
|
1,552
|
|
|
4,231
|
|
|
2,825
|
|
||||
|
(2,287
|
)
|
|
(3,498
|
)
|
|
(4,576
|
)
|
|
(7,620
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before nonoperating expenses
|
64,283
|
|
|
41,097
|
|
|
138,773
|
|
|
102,142
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Nonoperating (expenses) income
|
|
|
|
|
|
|
|
||||||||
Non-service related pension and postretirement benefit (costs) credits
|
(1,336
|
)
|
|
68
|
|
|
(3,102
|
)
|
|
(1,235
|
)
|
||||
Net loss resulting from early retirement of debt and debt restructuring
|
—
|
|
|
(485
|
)
|
|
—
|
|
|
(485
|
)
|
||||
Reorganization items, net
|
(16
|
)
|
|
(740
|
)
|
|
71
|
|
|
(1,041
|
)
|
||||
|
(1,352
|
)
|
|
(1,157
|
)
|
|
(3,031
|
)
|
|
(2,761
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
62,931
|
|
|
39,940
|
|
|
135,742
|
|
|
99,381
|
|
||||
Provision for (benefit from) income taxes
|
91
|
|
|
(3,366
|
)
|
|
161
|
|
|
(3,910
|
)
|
||||
Net income
|
$
|
62,840
|
|
|
$
|
43,306
|
|
|
$
|
135,581
|
|
|
$
|
103,291
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share
|
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per common share
|
$
|
3.80
|
|
|
$
|
2.15
|
|
|
$
|
7.97
|
|
|
$
|
5.03
|
|
Diluted earnings per common share
|
$
|
3.53
|
|
|
$
|
2.06
|
|
|
$
|
7.45
|
|
|
$
|
4.81
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
16,543
|
|
|
20,156
|
|
|
17,018
|
|
|
20,529
|
|
||||
Diluted weighted average shares outstanding
|
17,781
|
|
|
21,036
|
|
|
18,190
|
|
|
21,456
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share
|
$
|
0.45
|
|
|
$
|
0.40
|
|
|
$
|
0.90
|
|
|
$
|
0.80
|
|
3
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
Net income
|
|
$
|
62,840
|
|
|
$
|
43,306
|
|
|
$
|
135,581
|
|
|
$
|
103,291
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss) before tax
|
|
(2,778
|
)
|
|
(12,293
|
)
|
|
(61
|
)
|
|
(5,736
|
)
|
||||
Income tax benefit (provision)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
(2,778
|
)
|
|
(12,293
|
)
|
|
(61
|
)
|
|
(5,736
|
)
|
||||
Pension, postretirement and other post-employment benefits
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss) before tax
|
|
2,902
|
|
|
3,653
|
|
|
2,902
|
|
|
3,653
|
|
||||
Income tax benefit (provision)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
2,902
|
|
|
3,653
|
|
|
2,902
|
|
|
3,653
|
|
||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss) before tax
|
|
274
|
|
|
177
|
|
|
651
|
|
|
(481
|
)
|
||||
Income tax benefit (provision)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
274
|
|
|
177
|
|
|
651
|
|
|
(481
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total other comprehensive income (loss)
|
|
398
|
|
|
(8,463
|
)
|
|
3,492
|
|
|
(2,564
|
)
|
||||
Total comprehensive income
|
|
$
|
63,238
|
|
|
$
|
34,843
|
|
|
$
|
139,073
|
|
|
$
|
100,727
|
|
4
|
|
June 30,
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
232,429
|
|
|
$
|
264,937
|
|
Short term investments
|
162,656
|
|
|
162,797
|
|
||
Trade accounts receivable
|
182,824
|
|
|
200,904
|
|
||
Other receivables
|
32,950
|
|
|
48,926
|
|
||
Inventories
|
172,841
|
|
|
125,470
|
|
||
Other current assets
|
56,993
|
|
|
75,749
|
|
||
Total current assets
|
840,693
|
|
|
878,783
|
|
||
Property, plant and equipment, net
|
870,889
|
|
|
834,828
|
|
||
Other assets
|
|
|
|
|
|
||
Equity investments
|
106,072
|
|
|
104,676
|
|
||
Other noncurrent assets
|
71,876
|
|
|
68,773
|
|
||
Total other assets
|
177,948
|
|
|
173,449
|
|
||
Total assets
|
$
|
1,889,530
|
|
|
$
|
1,887,060
|
|
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current Liabilities
|
|
|
|
|
|
||
Accounts payable
|
$
|
138,735
|
|
|
$
|
128,024
|
|
Accrued expenses and other current liabilities
|
162,741
|
|
|
183,514
|
|
||
Current maturities of debt
|
13,068
|
|
|
17,797
|
|
||
Total current liabilities
|
314,544
|
|
|
329,335
|
|
||
Long-term debt
|
295,263
|
|
|
300,186
|
|
||
Asset retirement obligations
|
236,317
|
|
|
230,304
|
|
||
Accrued pension benefits
|
11,649
|
|
|
16,147
|
|
||
Accrued postretirement benefits other than pension
|
79,992
|
|
|
83,163
|
|
||
Accrued workers’ compensation
|
173,621
|
|
|
174,303
|
|
||
Other noncurrent liabilities
|
80,194
|
|
|
48,801
|
|
||
Total liabilities
|
1,191,580
|
|
|
1,182,239
|
|
||
|
|
|
|
||||
Stockholders' equity
|
|
|
|
|
|
||
Common stock, $0.01 par value, authorized 300,000 shares, issued 25,047 shares at June 30, 2019 and December 31, 2018, respectively
|
250
|
|
|
250
|
|
||
Paid-in capital
|
728,996
|
|
|
717,492
|
|
||
Retained earnings
|
647,440
|
|
|
527,666
|
|
||
Treasury stock, 8,785 shares and 7,216 shares at June 30, 2019 and December 31, 2018, respectively, at cost
|
(725,524
|
)
|
|
(583,883
|
)
|
||
Accumulated other comprehensive income
|
46,788
|
|
|
43,296
|
|
||
Total stockholders’ equity
|
697,950
|
|
|
704,821
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,889,530
|
|
|
$
|
1,887,060
|
|
5
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(Unaudited)
|
||||||
Operating activities
|
|
|
|
|
|
||
Net income
|
$
|
135,581
|
|
|
$
|
103,291
|
|
Adjustments to reconcile to cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation, depletion and amortization
|
51,797
|
|
|
60,252
|
|
||
Accretion on asset retirement obligations
|
10,274
|
|
|
13,985
|
|
||
Amortization of sales contracts, net
|
76
|
|
|
6,299
|
|
||
Deferred income taxes
|
13,385
|
|
|
8,730
|
|
||
Employee stock-based compensation expense
|
11,473
|
|
|
7,992
|
|
||
(Gains) losses on disposals and divestitures, net
|
(1,415
|
)
|
|
131
|
|
||
Net loss resulting from early retirement of debt and debt restructuring
|
—
|
|
|
485
|
|
||
Amortization relating to financing activities
|
1,826
|
|
|
2,170
|
|
||
Changes in:
|
|
|
|
||||
Receivables
|
17,871
|
|
|
(20,212
|
)
|
||
Inventories
|
(47,370
|
)
|
|
(28,245
|
)
|
||
Accounts payable, accrued expenses and other current liabilities
|
4,497
|
|
|
(11,879
|
)
|
||
Income taxes, net
|
24,575
|
|
|
11,560
|
|
||
Other
|
3,336
|
|
|
(9,563
|
)
|
||
Cash provided by operating activities
|
225,906
|
|
|
144,996
|
|
||
Investing activities
|
|
|
|
|
|
||
Capital expenditures
|
(87,854
|
)
|
|
(30,049
|
)
|
||
Minimum royalty payments
|
(1,125
|
)
|
|
(124
|
)
|
||
Proceeds from disposals and divestitures
|
1,591
|
|
|
56
|
|
||
Purchases of short term investments
|
(89,454
|
)
|
|
(110,359
|
)
|
||
Proceeds from sales of short term investments
|
90,424
|
|
|
105,150
|
|
||
Investments in and advances to affiliates, net
|
(3,275
|
)
|
|
—
|
|
||
Cash used in investing activities
|
(89,693
|
)
|
|
(35,326
|
)
|
||
Financing activities
|
|
|
|
|
|
||
Payments on term loan due 2024
|
(1,500
|
)
|
|
(1,500
|
)
|
||
Net payments on other debt
|
(8,845
|
)
|
|
(7,307
|
)
|
||
Debt financing costs
|
—
|
|
|
(529
|
)
|
||
Net loss resulting from early retirement of debt and debt restructuring
|
—
|
|
|
(50
|
)
|
||
Dividends paid
|
(15,264
|
)
|
|
(16,333
|
)
|
||
Purchases of treasury stock
|
(143,142
|
)
|
|
(115,973
|
)
|
||
Other
|
30
|
|
|
10
|
|
||
Cash used in financing activities
|
(168,721
|
)
|
|
(141,682
|
)
|
||
Decrease in cash and cash equivalents, including restricted cash
|
(32,508
|
)
|
|
(32,012
|
)
|
||
Cash and cash equivalents, including restricted cash, beginning of period
|
264,937
|
|
|
273,602
|
|
||
Cash and cash equivalents, including restricted cash, end of period
|
$
|
232,429
|
|
|
$
|
241,590
|
|
|
|
|
|
||||
Cash and cash equivalents, including restricted cash, end of period
|
|
|
|
||||
Cash and cash equivalents
|
$
|
232,429
|
|
|
$
|
241,590
|
|
Restricted cash
|
—
|
|
|
—
|
|
||
|
$
|
232,429
|
|
|
$
|
241,590
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
Treasury
|
|
Accumulated Other
|
|
|
||||||||||||
|
Common
|
|
Paid-In
|
|
Retained
|
|
Stock at
|
|
Comprehensive
|
|
|
||||||||||||
|
Stock
|
|
Capital
|
|
Earnings
|
|
Cost
|
|
Income
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Balances, January 1, 2019
|
$
|
250
|
|
|
$
|
717,492
|
|
|
$
|
527,666
|
|
|
$
|
(583,883
|
)
|
|
$
|
43,296
|
|
|
$
|
704,821
|
|
Dividends on common shares ($0.45/share)
|
—
|
|
|
—
|
|
|
(8,111
|
)
|
|
—
|
|
|
—
|
|
|
(8,111
|
)
|
||||||
Total comprehensive income
|
—
|
|
|
—
|
|
|
72,741
|
|
|
—
|
|
|
3,094
|
|
|
75,835
|
|
||||||
Employee stock-based compensation
|
—
|
|
|
5,651
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,651
|
|
||||||
Purchase of 872,317 shares of common stock under share repurchase program
|
—
|
|
|
—
|
|
|
—
|
|
|
(78,249
|
)
|
|
—
|
|
|
(78,249
|
)
|
||||||
Balances at March 31, 2019
|
$
|
250
|
|
|
$
|
723,143
|
|
|
$
|
592,296
|
|
|
$
|
(662,132
|
)
|
|
$
|
46,390
|
|
|
$
|
699,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends on common shares ($0.45/share)
|
—
|
|
|
—
|
|
|
(7,696
|
)
|
|
—
|
|
|
—
|
|
|
(7,696
|
)
|
||||||
Total comprehensive income
|
—
|
|
|
—
|
|
|
62,840
|
|
|
—
|
|
|
398
|
|
|
63,238
|
|
||||||
Employee stock-based compensation
|
—
|
|
|
5,822
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,822
|
|
||||||
Purchase of 697,255 shares of common stock under share repurchase program
|
—
|
|
|
—
|
|
|
—
|
|
|
(63,392
|
)
|
|
—
|
|
|
(63,392
|
)
|
||||||
Warrants exercised
|
—
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||||||
Balances at June 30, 2019
|
$
|
250
|
|
|
$
|
728,996
|
|
|
$
|
647,440
|
|
|
$
|
(725,524
|
)
|
|
$
|
46,788
|
|
|
$
|
697,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances, January 1, 2018
|
$
|
250
|
|
|
$
|
700,125
|
|
|
$
|
247,232
|
|
|
$
|
(302,109
|
)
|
|
$
|
20,367
|
|
|
$
|
665,865
|
|
Dividends on common shares ($0.40/share)
|
—
|
|
|
—
|
|
|
(8,553
|
)
|
|
—
|
|
|
—
|
|
|
(8,553
|
)
|
||||||
Total comprehensive income
|
—
|
|
|
—
|
|
|
59,985
|
|
|
—
|
|
|
5,899
|
|
|
65,884
|
|
||||||
Employee stock-based compensation
|
—
|
|
|
3,845
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,845
|
|
||||||
Purchase of 407,091 shares of common stock under share repurchase program
|
—
|
|
|
—
|
|
|
—
|
|
|
(38,589
|
)
|
|
—
|
|
|
(38,589
|
)
|
||||||
Warrants exercised
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||||
Balances at March 31, 2018
|
$
|
250
|
|
|
$
|
703,980
|
|
|
$
|
298,664
|
|
|
$
|
(340,698
|
)
|
|
$
|
26,266
|
|
|
$
|
688,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends on common shares ($0.40/share)
|
—
|
|
|
—
|
|
|
(8,217
|
)
|
|
—
|
|
|
—
|
|
|
(8,217
|
)
|
||||||
Total comprehensive income
|
—
|
|
|
—
|
|
|
43,306
|
|
|
—
|
|
|
(8,463
|
)
|
|
34,843
|
|
||||||
Employee stock-based compensation
|
—
|
|
|
4,147
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,147
|
|
||||||
Purchase of 960,105 shares of common stock under share repurchase program
|
—
|
|
|
—
|
|
|
—
|
|
|
(78,287
|
)
|
|
—
|
|
|
(78,287
|
)
|
||||||
Warrants exercised
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Balances at June 30, 2018
|
$
|
250
|
|
|
$
|
708,127
|
|
|
$
|
333,753
|
|
|
$
|
(418,985
|
)
|
|
$
|
17,803
|
|
|
$
|
640,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
8
|
9
|
10
|
|
|
|
Pension,
|
|
|
|
|
||||||||
|
|
|
Postretirement
|
|
|
|
|
||||||||
|
|
|
and Other
|
|
|
|
Accumulated
|
||||||||
|
|
|
Post-
|
|
|
|
Other
|
||||||||
|
Derivative
|
|
Employment
|
|
Available-for-
|
|
Comprehensive
|
||||||||
|
Instruments
|
|
Benefits
|
|
Sale Securities
|
|
Income
|
||||||||
|
(In thousands)
|
||||||||||||||
Balance at December 31, 2018
|
$
|
3,328
|
|
|
$
|
40,311
|
|
|
$
|
(343
|
)
|
|
$
|
43,296
|
|
Unrealized gains
|
3,072
|
|
|
3,331
|
|
|
666
|
|
|
7,069
|
|
||||
Amounts reclassified from AOCI
|
(3,133
|
)
|
|
(429
|
)
|
|
(15
|
)
|
|
(3,577
|
)
|
||||
Balance at June 30, 2019
|
$
|
3,267
|
|
|
$
|
43,213
|
|
|
$
|
308
|
|
|
$
|
46,788
|
|
|
||||||||||||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
||||||||||||
Details About AOCI Components
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Line Item in the Condensed Consolidated Statement of Operations
|
||||||||
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Coal hedges
|
|
$
|
1,743
|
|
|
$
|
—
|
|
|
$
|
2,104
|
|
|
$
|
—
|
|
|
Revenues
|
Interest rate hedges
|
|
514
|
|
|
348
|
|
|
1,029
|
|
|
488
|
|
|
Interest expense
|
||||
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Provision for (benefit from) income taxes
|
||||
|
|
$
|
2,257
|
|
|
$
|
348
|
|
|
$
|
3,133
|
|
|
$
|
488
|
|
|
Net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pension, postretirement and other post-employment benefits
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pension settlement
|
|
429
|
|
|
1,371
|
|
|
429
|
|
|
1,371
|
|
|
Non-service related pension and postretirement benefit (costs) credits
|
||||
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Provision for (benefit from) income taxes
|
||||
|
|
$
|
429
|
|
|
$
|
1,371
|
|
|
$
|
429
|
|
|
$
|
1,371
|
|
|
Net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
$
|
15
|
|
|
$
|
16
|
|
|
$
|
15
|
|
|
$
|
16
|
|
|
Interest and investment income
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Provision for (benefit from) income taxes
|
||||
|
|
$
|
15
|
|
|
$
|
16
|
|
|
$
|
15
|
|
|
$
|
16
|
|
|
Net of tax
|
|
11
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Coal
|
|
$
|
83,432
|
|
|
$
|
40,982
|
|
Repair parts and supplies
|
|
89,409
|
|
|
84,488
|
|
||
|
|
$
|
172,841
|
|
|
$
|
125,470
|
|
|
June 30, 2019
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Balance Sheet
|
||||||||||||||
|
|
|
|
|
|
|
Classification
|
||||||||||||||||
|
|
|
Gross Unrealized
|
|
Fair
|
|
Short-Term
|
|
Other
|
||||||||||||||
|
Cost Basis
|
|
Gains
|
|
Losses
|
|
Value
|
|
Investments
|
|
Assets
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency securities
|
$
|
58,283
|
|
|
$
|
94
|
|
|
$
|
—
|
|
|
$
|
58,377
|
|
|
$
|
58,377
|
|
|
$
|
—
|
|
Corporate notes and bonds
|
104,066
|
|
|
247
|
|
|
(34
|
)
|
|
104,279
|
|
|
104,279
|
|
|
—
|
|
||||||
Total Investments
|
$
|
162,349
|
|
|
$
|
341
|
|
|
$
|
(34
|
)
|
|
$
|
162,656
|
|
|
$
|
162,656
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Balance Sheet
|
||||||||||||||
|
|
|
|
|
|
|
|
|
Classification
|
||||||||||||||
|
|
|
Gross Unrealized
|
|
Fair
|
|
Short-Term
|
|
Other
|
||||||||||||||
|
Cost Basis
|
|
Gains
|
|
Losses
|
|
Value
|
|
Investments
|
|
Assets
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and agency securities
|
$
|
100,003
|
|
|
$
|
11
|
|
|
$
|
(126
|
)
|
|
$
|
99,888
|
|
|
$
|
99,888
|
|
|
$
|
—
|
|
Corporate notes and bonds
|
63,137
|
|
|
4
|
|
|
(232
|
)
|
|
62,909
|
|
|
62,909
|
|
|
—
|
|
||||||
Total Investments
|
$
|
163,140
|
|
|
$
|
15
|
|
|
$
|
(358
|
)
|
|
$
|
162,797
|
|
|
$
|
162,797
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
(Tons in thousands)
|
|
2019
|
|
2020
|
|
Total
|
|||
Coal sales
|
|
1,540
|
|
|
489
|
|
|
2,029
|
|
Coal purchases
|
|
772
|
|
|
225
|
|
|
997
|
|
13
|
|
|
June 30, 2019
|
|
|
|
December 31, 2018
|
|
|
||||||||||||||||
Fair Value of Derivatives
|
|
Asset
|
|
Liability
|
|
|
|
Asset
|
|
Liability
|
|
|
||||||||||||
(In thousands)
|
|
Derivative
|
|
Derivative
|
|
|
|
Derivative
|
|
Derivative
|
|
|
||||||||||||
Derivatives Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Coal
|
|
$
|
7,728
|
|
|
$
|
(637
|
)
|
|
|
|
|
$
|
2,342
|
|
|
$
|
(805
|
)
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Derivatives Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Heating oil -- diesel purchases
|
|
923
|
|
|
(650
|
)
|
|
|
|
|
532
|
|
|
—
|
|
|
|
|
||||||
Coal -- held for trading purposes
|
|
45,685
|
|
|
(46,807
|
)
|
|
|
|
|
10,329
|
|
|
(10,701
|
)
|
|
|
|
||||||
Coal -- risk management
|
|
33,804
|
|
|
(25,150
|
)
|
|
|
|
|
5,672
|
|
|
(19,579
|
)
|
|
|
|
||||||
Natural gas
|
|
—
|
|
|
—
|
|
|
|
|
4
|
|
|
(4
|
)
|
|
|
||||||||
Total
|
|
$
|
80,412
|
|
|
$
|
(72,607
|
)
|
|
|
|
|
$
|
16,537
|
|
|
$
|
(30,284
|
)
|
|
|
|
||
Total derivatives
|
|
$
|
88,140
|
|
|
$
|
(73,244
|
)
|
|
|
|
|
$
|
18,879
|
|
|
$
|
(31,089
|
)
|
|
|
|
||
Effect of counterparty netting
|
|
(72,594
|
)
|
|
72,594
|
|
|
|
|
|
(17,801
|
)
|
|
17,801
|
|
|
|
|
||||||
Net derivatives as classified in the balance sheets
|
|
$
|
15,546
|
|
|
$
|
(650
|
)
|
|
$
|
14,896
|
|
|
$
|
1,078
|
|
|
$
|
(13,288
|
)
|
|
$
|
(12,210
|
)
|
14
|
|
|
Gain (Loss) Recognized in Other Comprehensive Income
|
|
Gains (Losses) Reclassified from Other Comprehensive Income into Income
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Coal sales
|
(1)
|
$
|
4,010
|
|
|
$
|
(15,462
|
)
|
|
$
|
1,743
|
|
|
$
|
—
|
|
Coal purchases
|
(2)
|
(340
|
)
|
|
2,705
|
|
|
—
|
|
|
—
|
|
||||
Totals
|
|
$
|
3,670
|
|
|
$
|
(12,757
|
)
|
|
$
|
1,743
|
|
|
$
|
—
|
|
|
|
Gain (Loss) Recognized
|
||||||
|
|
2019
|
|
2018
|
||||
Coal trading — realized and unrealized
|
(3)
|
$
|
(718
|
)
|
|
$
|
384
|
|
Coal risk management — unrealized
|
(3)
|
9,137
|
|
|
(15,505
|
)
|
||
Natural gas trading— realized and unrealized
|
(3)
|
(19
|
)
|
|
(17
|
)
|
||
Change in fair value of coal derivatives and coal trading activities, net total
|
|
$
|
8,400
|
|
|
$
|
(15,138
|
)
|
|
|
|
|
|
||||
Coal risk management— realized
|
(4)
|
$
|
(881
|
)
|
|
$
|
(1,649
|
)
|
Heating oil — diesel purchases
|
(4)
|
$
|
(1,369
|
)
|
|
$
|
3,657
|
|
|
|
Gain (Loss) Recognized in Other Comprehensive Income
|
|
Gains (Losses) Reclassified from Other Comprehensive Income into Income
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Coal sales
|
(1)
|
$
|
9,247
|
|
|
$
|
(10,231
|
)
|
|
$
|
2,787
|
|
|
$
|
—
|
|
Coal purchases
|
(2)
|
(906
|
)
|
|
2,163
|
|
|
(686
|
)
|
|
—
|
|
||||
Totals
|
|
$
|
8,341
|
|
|
$
|
(8,068
|
)
|
|
$
|
2,101
|
|
|
$
|
—
|
|
15
|
|
|
Gain (Loss) Recognized
|
||||||
|
|
2019
|
|
2018
|
||||
Coal trading — realized and unrealized
|
(3)
|
$
|
(1,101
|
)
|
|
$
|
942
|
|
Coal risk management — unrealized
|
(3)
|
22,562
|
|
|
(12,630
|
)
|
||
Natural gas trading— realized and unrealized
|
(3)
|
(80
|
)
|
|
(36
|
)
|
||
Change in fair value of coal derivatives and coal trading activities, net total
|
|
$
|
21,381
|
|
|
$
|
(11,724
|
)
|
|
|
|
|
|
||||
Coal risk management— realized
|
(4)
|
$
|
(5,292
|
)
|
|
$
|
(2,680
|
)
|
Heating oil — diesel purchases
|
(4)
|
$
|
(732
|
)
|
|
$
|
3,675
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Payroll and employee benefits
|
|
$
|
49,418
|
|
|
$
|
57,166
|
|
Taxes other than income taxes
|
|
72,502
|
|
|
75,017
|
|
||
Interest
|
|
221
|
|
|
156
|
|
||
Acquired sales contracts
|
|
319
|
|
|
570
|
|
||
Workers’ compensation
|
|
18,108
|
|
|
20,044
|
|
||
Asset retirement obligations
|
|
12,297
|
|
|
13,113
|
|
||
Other
|
|
9,876
|
|
|
17,448
|
|
||
|
|
$
|
162,741
|
|
|
$
|
183,514
|
|
16
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Term loan due 2024 ($293.3 million face value)
|
|
$
|
292,224
|
|
|
$
|
293,626
|
|
Other
|
|
21,669
|
|
|
30,449
|
|
||
Debt issuance costs
|
|
(5,562
|
)
|
|
(6,092
|
)
|
||
|
|
308,331
|
|
|
317,983
|
|
||
Less: current maturities of debt
|
|
13,068
|
|
|
17,797
|
|
||
Long-term debt
|
|
$
|
295,263
|
|
|
$
|
300,186
|
|
17
|
18
|
Notional Amount (in millions)
|
Effective Date
|
Fixed Rate
|
Receive Rate
|
Expiration Date
|
|
|
|
|
|
$250.0
|
June 28, 2019
|
2.025%
|
1-month LIBOR
|
June 30, 2020
|
$200.0
|
June 30, 2020
|
2.249%
|
1-month LIBOR
|
June 30, 2021
|
$100.0
|
June 30, 2021
|
2.315%
|
1-month LIBOR
|
June 30, 2023
|
19
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(In thousands)
|
||||||||||||||
Income tax provision at statutory rate
|
$
|
13,216
|
|
|
$
|
8,387
|
|
|
$
|
28,506
|
|
|
$
|
20,870
|
|
Percentage depletion allowance
|
(3,457
|
)
|
|
(2,488
|
)
|
|
(7,764
|
)
|
|
(7,095
|
)
|
||||
State taxes, net of effect of federal taxes
|
831
|
|
|
583
|
|
|
1,843
|
|
|
1,337
|
|
||||
Change in valuation allowance
|
(11,292
|
)
|
|
(7,317
|
)
|
|
(23,805
|
)
|
|
(17,956
|
)
|
||||
Current expense associated with uncertain tax positions
|
844
|
|
|
792
|
|
|
1,437
|
|
|
2,181
|
|
||||
Other, net
|
(51
|
)
|
|
(3,323
|
)
|
|
(56
|
)
|
|
(3,247
|
)
|
||||
Provision for (benefit from) income taxes
|
$
|
91
|
|
|
$
|
(3,366
|
)
|
|
$
|
161
|
|
|
$
|
(3,910
|
)
|
|
|
June 30, 2019
|
||||||||||||||
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments in marketable securities
|
|
$
|
162,656
|
|
|
$
|
58,377
|
|
|
$
|
104,279
|
|
|
$
|
—
|
|
Derivatives
|
|
15,378
|
|
|
13,883
|
|
|
740
|
|
|
755
|
|
||||
Total assets
|
|
$
|
178,034
|
|
|
$
|
72,260
|
|
|
$
|
105,019
|
|
|
$
|
755
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
$
|
3,048
|
|
|
$
|
—
|
|
|
$
|
3,048
|
|
|
$
|
—
|
|
20
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
|
|
(In thousands)
|
||||||
Balance, beginning of period
|
|
$
|
851
|
|
|
$
|
532
|
|
Realized and unrealized gains recognized in earnings, net
|
|
(398
|
)
|
|
(542
|
)
|
||
Purchases
|
|
537
|
|
|
1,000
|
|
||
Issuances
|
|
—
|
|
|
—
|
|
||
Settlements
|
|
(235
|
)
|
|
(235
|
)
|
||
Ending balance
|
|
$
|
755
|
|
|
$
|
755
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(In thousands)
|
||||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||
Basic weighted average shares outstanding
|
16,543
|
|
|
20,156
|
|
|
17,018
|
|
|
20,529
|
|
Effect of dilutive securities
|
1,238
|
|
|
880
|
|
|
1,172
|
|
|
927
|
|
Diluted weighted average shares outstanding
|
17,781
|
|
|
21,036
|
|
|
18,190
|
|
|
21,456
|
|
21
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(In thousands)
|
||||||||||||||
Self-insured occupational disease benefits:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
1,669
|
|
|
$
|
1,860
|
|
|
$
|
3,338
|
|
|
$
|
3,720
|
|
Interest cost(1)
|
1,354
|
|
|
1,194
|
|
|
2,708
|
|
|
2,389
|
|
||||
Total occupational disease
|
$
|
3,023
|
|
|
$
|
3,054
|
|
|
$
|
6,046
|
|
|
$
|
6,109
|
|
Traumatic injury claims and assessments
|
2,410
|
|
|
2,188
|
|
|
4,554
|
|
|
5,199
|
|
||||
Total workers’ compensation expense
|
$
|
5,433
|
|
|
$
|
5,242
|
|
|
$
|
10,600
|
|
|
$
|
11,308
|
|
22
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(In thousands)
|
||||||||||||||
Interest cost(1)
|
$
|
2,259
|
|
|
$
|
2,270
|
|
|
$
|
4,517
|
|
|
$
|
4,541
|
|
Expected return on plan assets(1)
|
(2,724
|
)
|
|
(3,080
|
)
|
|
(5,447
|
)
|
|
(6,161
|
)
|
||||
Pension settlement(1)
|
(429
|
)
|
|
(1,371
|
)
|
|
(429
|
)
|
|
(1,371
|
)
|
||||
Net benefit credit
|
$
|
(894
|
)
|
|
$
|
(2,181
|
)
|
|
$
|
(1,359
|
)
|
|
$
|
(2,991
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(In thousands)
|
||||||||||||||
Service cost
|
$
|
120
|
|
|
$
|
139
|
|
|
$
|
240
|
|
|
$
|
279
|
|
Interest cost(1)
|
877
|
|
|
919
|
|
|
1,753
|
|
|
1,837
|
|
||||
Net benefit cost
|
$
|
997
|
|
|
$
|
1,058
|
|
|
$
|
1,993
|
|
|
$
|
2,116
|
|
23
|
24
|
|
|
PRB
|
|
MET
|
|
Other
Thermal
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Three Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues
|
|
$
|
210,149
|
|
|
$
|
261,245
|
|
|
$
|
98,205
|
|
|
$
|
623
|
|
|
$
|
570,222
|
|
Adjusted EBITDA
|
|
14,696
|
|
|
101,936
|
|
|
10,922
|
|
|
(21,990
|
)
|
|
105,564
|
|
|||||
Depreciation, depletion and amortization
|
|
4,880
|
|
|
17,343
|
|
|
3,689
|
|
|
612
|
|
|
26,524
|
|
|||||
Accretion on asset retirement obligation
|
|
3,135
|
|
|
531
|
|
|
603
|
|
|
868
|
|
|
5,137
|
|
|||||
Total assets
|
|
236,527
|
|
|
605,657
|
|
|
136,899
|
|
|
910,447
|
|
|
1,889,530
|
|
|||||
Capital expenditures
|
|
13,209
|
|
|
31,150
|
|
|
3,211
|
|
|
1,138
|
|
|
48,708
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues
|
|
$
|
229,878
|
|
|
$
|
259,032
|
|
|
$
|
99,814
|
|
|
$
|
3,625
|
|
|
$
|
592,349
|
|
Adjusted EBITDA
|
|
26,491
|
|
|
86,657
|
|
|
11,842
|
|
|
(39,605
|
)
|
|
85,385
|
|
|||||
Depreciation, depletion and amortization
|
|
8,304
|
|
|
18,018
|
|
|
3,701
|
|
|
526
|
|
|
30,549
|
|
|||||
Accretion on asset retirement obligation
|
|
4,885
|
|
|
469
|
|
|
565
|
|
|
1,074
|
|
|
6,993
|
|
|||||
Total assets
|
|
379,613
|
|
|
551,012
|
|
|
134,319
|
|
|
884,469
|
|
|
1,949,413
|
|
|||||
Capital expenditures
|
|
3,065
|
|
|
11,899
|
|
|
2,559
|
|
|
3,073
|
|
|
20,596
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
|
$
|
422,878
|
|
|
$
|
514,507
|
|
|
$
|
184,183
|
|
|
$
|
3,837
|
|
|
$
|
1,125,405
|
|
Adjusted EBITDA
|
|
35,279
|
|
|
193,470
|
|
|
17,041
|
|
|
(32,972
|
)
|
|
212,818
|
|
|||||
Depreciation, depletion and amortization
|
|
9,745
|
|
|
33,725
|
|
|
7,124
|
|
|
1,203
|
|
|
51,797
|
|
|||||
Accretion on asset retirement obligation
|
|
6,271
|
|
|
1,061
|
|
|
1,207
|
|
|
1,735
|
|
|
10,274
|
|
|||||
Total assets
|
|
236,527
|
|
|
605,657
|
|
|
136,899
|
|
|
910,447
|
|
|
1,889,530
|
|
|||||
Capital expenditures
|
|
13,623
|
|
|
62,374
|
|
|
9,461
|
|
|
2,396
|
|
|
87,854
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
|
$
|
475,306
|
|
|
$
|
497,379
|
|
|
$
|
191,334
|
|
|
$
|
3,625
|
|
|
$
|
1,167,644
|
|
Adjusted EBITDA
|
|
53,993
|
|
|
170,399
|
|
|
27,510
|
|
|
(61,604
|
)
|
|
190,298
|
|
|||||
Depreciation, depletion and amortization
|
|
16,727
|
|
|
35,003
|
|
|
7,536
|
|
|
986
|
|
|
60,252
|
|
|||||
Accretion on asset retirement obligation
|
|
9,771
|
|
|
937
|
|
|
1,130
|
|
|
2,147
|
|
|
13,985
|
|
|||||
Total assets
|
|
379,613
|
|
|
551,012
|
|
|
134,319
|
|
|
884,469
|
|
|
1,949,413
|
|
|||||
Capital expenditures
|
|
3,763
|
|
|
17,728
|
|
|
3,765
|
|
|
4,793
|
|
|
30,049
|
|
25
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Net income
|
|
$
|
62,840
|
|
|
$
|
43,306
|
|
|
$
|
135,581
|
|
|
$
|
103,291
|
|
Provision for (benefit from) income taxes
|
|
91
|
|
|
(3,366
|
)
|
|
161
|
|
|
(3,910
|
)
|
||||
Interest expense, net
|
|
2,287
|
|
|
3,498
|
|
|
4,576
|
|
|
7,620
|
|
||||
Depreciation, depletion and amortization
|
|
26,524
|
|
|
30,549
|
|
|
51,797
|
|
|
60,252
|
|
||||
Accretion on asset retirement obligations
|
|
5,137
|
|
|
6,993
|
|
|
10,274
|
|
|
13,985
|
|
||||
Amortization of sales contracts, net
|
|
11
|
|
|
3,248
|
|
|
76
|
|
|
6,299
|
|
||||
Loss on sale of Lone Mountain Processing, LLC
|
|
4,304
|
|
|
—
|
|
|
4,304
|
|
|
—
|
|
||||
Net loss resulting from early retirement of debt and debt restructuring
|
|
—
|
|
|
485
|
|
|
—
|
|
|
485
|
|
||||
Non-service related pension and postretirement benefit costs
|
|
1,336
|
|
|
(68
|
)
|
|
3,102
|
|
|
1,235
|
|
||||
Reorganization items, net
|
|
16
|
|
|
740
|
|
|
(71
|
)
|
|
1,041
|
|
||||
Costs associated with proposed joint venture with Peabody Energy
|
|
3,018
|
|
|
—
|
|
|
3,018
|
|
|
—
|
|
||||
Adjusted EBITDA
|
|
$
|
105,564
|
|
|
$
|
85,385
|
|
|
$
|
212,818
|
|
|
$
|
190,298
|
|
26
|
|
PRB
|
MET
|
Other
Thermal
|
Corporate,
Other and
Eliminations
|
Consolidated
|
||||||||||
|
(in thousands)
|
||||||||||||||
Three Months Ended June 30, 2019
|
|
|
|
|
|
||||||||||
North America revenues
|
$
|
210,149
|
|
$
|
54,896
|
|
$
|
47,885
|
|
$
|
623
|
|
$
|
313,553
|
|
Seaborne revenues
|
—
|
|
206,349
|
|
50,320
|
|
—
|
|
256,669
|
|
|||||
|
|
|
|
|
|
||||||||||
Total revenues
|
$
|
210,149
|
|
$
|
261,245
|
|
$
|
98,205
|
|
$
|
623
|
|
$
|
570,222
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended June 30, 2018
|
|
|
|
|
|
||||||||||
North America revenues
|
$
|
229,035
|
|
$
|
38,323
|
|
$
|
40,547
|
|
$
|
3,625
|
|
$
|
311,530
|
|
Seaborne revenues
|
843
|
|
220,709
|
|
59,267
|
|
—
|
|
280,819
|
|
|||||
|
|
|
|
|
|
||||||||||
Total revenues
|
$
|
229,878
|
|
$
|
259,032
|
|
$
|
99,814
|
|
$
|
3,625
|
|
$
|
592,349
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2019
|
|
|
|
|
|
||||||||||
North America revenues
|
$
|
422,878
|
|
$
|
99,562
|
|
$
|
94,414
|
|
$
|
3,837
|
|
$
|
620,691
|
|
Seaborne revenues
|
—
|
|
414,945
|
|
89,769
|
|
—
|
|
504,714
|
|
|||||
|
|
|
|
|
|
||||||||||
Total revenues
|
$
|
422,878
|
|
$
|
514,507
|
|
$
|
184,183
|
|
$
|
3,837
|
|
$
|
1,125,405
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
||||||||||
North America revenues
|
$
|
473,395
|
|
$
|
68,001
|
|
$
|
84,214
|
|
$
|
3,625
|
|
$
|
629,235
|
|
Seaborne revenues
|
1,911
|
|
429,378
|
|
107,120
|
|
—
|
|
538,409
|
|
|||||
|
|
|
|
|
|
||||||||||
Total revenues
|
$
|
475,306
|
|
$
|
497,379
|
|
$
|
191,334
|
|
$
|
3,625
|
|
$
|
1,167,644
|
|
27
|
|
Three Months Ended June 30, 2019
|
||
|
(In thousands)
|
||
Operating lease information:
|
|
||
Operating lease cost
|
$
|
916
|
|
Operating cash flows from operating leases
|
869
|
|
|
Weighted average remaining lease term in years
|
5.45
|
|
|
Weighted average discount rate
|
5.5
|
%
|
Year
|
Amount
|
||
|
(In thousands)
|
||
2019
|
$
|
2,101
|
|
2020
|
3,616
|
|
|
2021
|
3,367
|
|
|
2022
|
3,292
|
|
|
2023
|
3,261
|
|
|
Thereafter
|
11,153
|
|
|
Total minimum lease payments
|
$
|
26,790
|
|
Less imputed interest
|
(5,012
|
)
|
|
|
|
||
Total operating lease liability
|
$
|
21,778
|
|
|
|
||
As reflected on balance sheet:
|
|
||
Accrued expenses and other current liabilities
|
$
|
2,909
|
|
Other noncurrent liabilities
|
18,869
|
|
|
|
|
||
Total operating lease liability
|
$
|
21,778
|
|
28
|
29
|
30
|
|
|
Three Months Ended June 30,
|
||||||||||
|
|
2019
|
|
2018
|
|
(Decrease) / Increase
|
||||||
|
|
(In thousands)
|
||||||||||
Coal sales
|
|
$
|
570,222
|
|
|
$
|
592,349
|
|
|
$
|
(22,127
|
)
|
Tons sold
|
|
20,976
|
|
|
22,952
|
|
|
(1,976
|
)
|
|
Three Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Increase (Decrease) in Net Income
|
||||||
|
(In thousands)
|
||||||||||
Cost of sales (exclusive of items shown separately below)
|
$
|
451,088
|
|
|
$
|
474,388
|
|
|
$
|
23,300
|
|
Depreciation, depletion and amortization
|
26,524
|
|
|
30,549
|
|
|
4,025
|
|
|||
Accretion on asset retirement obligations
|
5,137
|
|
|
6,993
|
|
|
1,856
|
|
|||
Amortization of sales contracts, net
|
11
|
|
|
3,248
|
|
|
3,237
|
|
|||
Change in fair value of coal derivatives and coal trading activities, net
|
(8,400
|
)
|
|
15,138
|
|
|
23,538
|
|
|||
Selling, general and administrative expenses
|
25,209
|
|
|
24,756
|
|
|
(453
|
)
|
|||
Costs related to proposed joint venture with Peabody Energy
|
3,018
|
|
|
—
|
|
|
(3,018
|
)
|
|||
Loss on sale of Lone Mountain Processing, LLC
|
4,304
|
|
|
—
|
|
|
(4,304
|
)
|
|||
Other operating income, net
|
(3,239
|
)
|
|
(7,318
|
)
|
|
(4,079
|
)
|
|||
Total costs, expenses and other
|
$
|
503,652
|
|
|
$
|
547,754
|
|
|
$
|
44,102
|
|
31
|
|
Three Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Increase (Decrease) in Net Income
|
||||||
|
(In thousands)
|
||||||||||
Non-service related pension and postretirement benefit (costs) credits
|
$
|
(1,336
|
)
|
|
$
|
68
|
|
|
$
|
(1,404
|
)
|
Net loss resulting from early retirement of debt and debt restructuring
|
—
|
|
|
(485
|
)
|
|
485
|
|
|||
Reorganization items, net
|
(16
|
)
|
|
(740
|
)
|
|
724
|
|
|||
Total nonoperating expense
|
$
|
(1,352
|
)
|
|
$
|
(1,157
|
)
|
|
$
|
(195
|
)
|
|
Three Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Increase (Decrease) in Net Income
|
||||||
|
(In thousands)
|
||||||||||
Provision for (Benefit from) income taxes
|
$
|
91
|
|
|
$
|
(3,366
|
)
|
|
$
|
(3,457
|
)
|
32
|
|
|
Six Months Ended June 30,
|
||||||||||
|
|
2019
|
|
2018
|
|
(Decrease) / Increase
|
||||||
|
|
(In thousands)
|
||||||||||
Coal sales
|
|
$
|
1,125,405
|
|
|
$
|
1,167,644
|
|
|
$
|
(42,239
|
)
|
Tons sold
|
|
41,701
|
|
|
46,616
|
|
|
(4,915
|
)
|
|
Six Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Increase (Decrease) in Net Income
|
||||||
|
(In thousands)
|
||||||||||
Cost of sales (exclusive of items shown separately below)
|
$
|
889,559
|
|
|
$
|
929,168
|
|
|
$
|
39,609
|
|
Depreciation, depletion and amortization
|
51,797
|
|
|
60,252
|
|
|
8,455
|
|
|||
Accretion on asset retirement obligations
|
10,274
|
|
|
13,985
|
|
|
3,711
|
|
|||
Amortization of sales contracts, net
|
76
|
|
|
6,299
|
|
|
6,223
|
|
|||
Change in fair value of coal derivatives and coal trading activities, net
|
(21,381
|
)
|
|
11,724
|
|
|
33,105
|
|
|||
Selling, general and administrative expenses
|
49,298
|
|
|
50,704
|
|
|
1,406
|
|
|||
Costs related to proposed joint venture with Peabody Energy
|
3,018
|
|
|
—
|
|
|
(3,018
|
)
|
|||
Loss on sale of Lone Mountain Processing, LLC
|
4,304
|
|
|
—
|
|
|
(4,304
|
)
|
|||
Other operating income, net
|
(4,889
|
)
|
|
(14,250
|
)
|
|
(9,361
|
)
|
|||
Total costs, expenses and other
|
$
|
982,056
|
|
|
$
|
1,057,882
|
|
|
$
|
75,826
|
|
33
|
|
Six Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Increase (Decrease) in Net Income
|
||||||
|
(In thousands)
|
||||||||||
Non-service related pension and postretirement benefit (costs) credits
|
$
|
(3,102
|
)
|
|
$
|
(1,235
|
)
|
|
$
|
(1,867
|
)
|
Net loss resulting from early retirement of debt and debt restructuring
|
—
|
|
|
(485
|
)
|
|
485
|
|
|||
Reorganization items, net
|
71
|
|
|
(1,041
|
)
|
|
1,112
|
|
|||
Total nonoperating expense
|
$
|
(3,031
|
)
|
|
$
|
(2,761
|
)
|
|
$
|
(270
|
)
|
|
Six Months Ended June 30,
|
||||||||||
|
2019
|
|
2018
|
|
Increase (Decrease) in Net Income
|
||||||
|
(In thousands)
|
||||||||||
Provision for (Benefit from) income taxes
|
$
|
161
|
|
|
$
|
(3,910
|
)
|
|
$
|
(4,071
|
)
|
34
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
Variance
|
2019
|
|
2018
|
|
Variance
|
||||||||||||
Powder River Basin
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tons sold (in thousands)
|
17,149
|
|
|
18,792
|
|
|
(1,643
|
)
|
34,289
|
|
|
38,535
|
|
|
(4,246
|
)
|
||||||
Coal sales per ton sold
|
$
|
12.08
|
|
|
$
|
12.06
|
|
|
$
|
0.02
|
|
$
|
12.13
|
|
|
$
|
12.11
|
|
|
$
|
0.02
|
|
Cash cost per ton sold
|
$
|
11.29
|
|
|
$
|
10.66
|
|
|
$
|
(0.63
|
)
|
$
|
11.14
|
|
|
$
|
10.72
|
|
|
$
|
(0.42
|
)
|
Cash margin per ton sold
|
$
|
0.79
|
|
|
$
|
1.40
|
|
|
$
|
(0.61
|
)
|
$
|
0.99
|
|
|
$
|
1.39
|
|
|
$
|
(0.40
|
)
|
Adjusted EBITDA (in thousands)
|
$
|
14,696
|
|
|
$
|
26,491
|
|
|
$
|
(11,795
|
)
|
$
|
35,279
|
|
|
$
|
53,993
|
|
|
$
|
(18,714
|
)
|
Metallurgical
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tons sold (in thousands)
|
1,892
|
|
|
2,009
|
|
|
(117
|
)
|
3,685
|
|
|
3,764
|
|
|
(79
|
)
|
||||||
Coal sales per ton sold
|
$
|
115.87
|
|
|
$
|
104.38
|
|
|
$
|
11.49
|
|
$
|
117.01
|
|
|
$
|
109.78
|
|
|
$
|
7.23
|
|
Cash cost per ton sold
|
$
|
62.07
|
|
|
$
|
61.33
|
|
|
$
|
(0.74
|
)
|
$
|
64.60
|
|
|
$
|
64.59
|
|
|
$
|
(0.01
|
)
|
Cash margin per ton sold
|
$
|
53.80
|
|
|
$
|
43.05
|
|
|
$
|
10.75
|
|
$
|
52.41
|
|
|
$
|
45.19
|
|
|
$
|
7.22
|
|
Adjusted EBITDA (in thousands)
|
$
|
101,936
|
|
|
$
|
86,657
|
|
|
$
|
15,279
|
|
$
|
193,470
|
|
|
$
|
170,399
|
|
|
$
|
23,071
|
|
Other Thermal
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tons sold (in thousands)
|
1,916
|
|
|
2,036
|
|
|
(120
|
)
|
3,602
|
|
|
4,203
|
|
|
(601
|
)
|
||||||
Coal sales per ton sold
|
$
|
39.09
|
|
|
$
|
36.77
|
|
|
$
|
2.32
|
|
$
|
38.85
|
|
|
$
|
36.16
|
|
|
$
|
2.69
|
|
Cash cost per ton sold
|
$
|
33.62
|
|
|
$
|
31.19
|
|
|
$
|
(2.43
|
)
|
$
|
34.39
|
|
|
$
|
29.82
|
|
|
$
|
(4.57
|
)
|
Cash margin per ton sold
|
$
|
5.47
|
|
|
$
|
5.58
|
|
|
$
|
(0.11
|
)
|
$
|
4.46
|
|
|
$
|
6.34
|
|
|
$
|
(1.88
|
)
|
Adjusted EBITDA (in thousands)
|
$
|
10,922
|
|
|
$
|
11,842
|
|
|
$
|
(920
|
)
|
$
|
17,041
|
|
|
$
|
27,510
|
|
|
$
|
(10,469
|
)
|
35
|
36
|
Three Months Ended June 30, 2019
|
Powder River Basin
|
Metallurgical
|
Other Thermal
|
Idle and Other
|
Consolidated
|
||||||||||
(In thousands)
|
|
|
|
|
|
||||||||||
GAAP Revenues in the consolidated statements of operations
|
$
|
210,149
|
|
$
|
261,245
|
|
$
|
98,205
|
|
$
|
623
|
|
$
|
570,222
|
|
Less: Adjustments to reconcile to Non-GAAP Segment coal sales revenue
|
|
|
|
|
|
||||||||||
Coal risk management derivative settlements classified in "other income"
|
—
|
|
—
|
|
(1,036
|
)
|
—
|
|
(1,036
|
)
|
|||||
Coal sales revenues from idled or otherwise disposed operations and pass through agreements not included in segments
|
—
|
|
—
|
|
—
|
|
623
|
|
623
|
|
|||||
Transportation costs
|
2,924
|
|
41,963
|
|
24,339
|
|
—
|
|
69,226
|
|
|||||
Non-GAAP Segment coal sales revenues
|
$
|
207,225
|
|
$
|
219,282
|
|
$
|
74,902
|
|
$
|
—
|
|
$
|
501,409
|
|
Tons sold
|
17,149
|
|
1,892
|
|
1,916
|
|
|
|
|||||||
Coal sales per ton sold
|
$
|
12.08
|
|
$
|
115.87
|
|
$
|
39.09
|
|
|
|
||||
|
|
|
|
|
|
||||||||||
Three Months Ended June 30, 2018
|
Powder River Basin
|
Metallurgical
|
Other Thermal
|
Idle and Other
|
Consolidated
|
||||||||||
(In thousands)
|
|
|
|
|
|
||||||||||
GAAP Revenues in the consolidated statements of operations
|
$
|
229,878
|
|
$
|
259,032
|
|
$
|
99,814
|
|
$
|
3,625
|
|
$
|
592,349
|
|
Less: Adjustments to reconcile to Non-GAAP Segment coal sales revenue
|
|
|
|
|
|
||||||||||
Coal risk management derivative settlements classified in "other income"
|
—
|
|
—
|
|
1,649
|
|
—
|
|
1,649
|
|
|||||
Coal sales revenues from idled or otherwise disposed operations and pass through agreements not included in segments
|
—
|
|
—
|
|
—
|
|
3,625
|
|
3,625
|
|
|||||
Transportation costs
|
3,176
|
|
49,308
|
|
23,281
|
|
—
|
|
75,765
|
|
|||||
Non-GAAP Segment coal sales revenues
|
$
|
226,702
|
|
$
|
209,724
|
|
$
|
74,884
|
|
$
|
—
|
|
$
|
511,310
|
|
Tons sold
|
18,792
|
|
2,009
|
|
2,036
|
|
|
|
|||||||
Coal sales per ton sold
|
$
|
12.06
|
|
$
|
104.38
|
|
$
|
36.77
|
|
|
|
||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
37
|
Six Months Ended June 30, 2019
|
Powder River Basin
|
Metallurgical
|
Other Thermal
|
Idle and Other
|
Consolidated
|
||||||||||
(In thousands)
|
|
|
|
|
|
||||||||||
GAAP Revenues in the consolidated statements of operations
|
$
|
422,878
|
|
$
|
514,507
|
|
$
|
184,183
|
|
$
|
3,837
|
|
$
|
1,125,405
|
|
Less: Adjustments to reconcile to Non-GAAP Segment coal sales revenue
|
|
|
|
|
|
||||||||||
Coal risk management derivative settlements classified in "other income"
|
—
|
|
—
|
|
1,008
|
|
—
|
|
1,008
|
|
|||||
Coal sales revenues from idled or otherwise disposed operations and pass through agreements not included in segments
|
—
|
|
—
|
|
—
|
|
3,837
|
|
3,837
|
|
|||||
Transportation costs
|
6,930
|
|
83,261
|
|
43,221
|
|
—
|
|
133,412
|
|
|||||
Non-GAAP Segment coal sales revenues
|
$
|
415,948
|
|
$
|
431,246
|
|
$
|
139,954
|
|
$
|
—
|
|
$
|
987,148
|
|
Tons sold
|
34,289
|
|
3,685
|
|
3,602
|
|
|
|
|||||||
Coal sales per ton sold
|
$
|
12.13
|
|
$
|
117.01
|
|
$
|
38.85
|
|
|
|
||||
|
|
||||||||||||||
Six Months Ended June 30, 2018
|
Powder River Basin
|
Metallurgical
|
Other Thermal
|
Idle and Other
|
Consolidated
|
||||||||||
(In thousands)
|
|
|
|
|
|
||||||||||
GAAP Revenues in the consolidated statements of operations
|
$
|
475,306
|
|
$
|
497,379
|
|
$
|
191,334
|
|
$
|
3,625
|
|
$
|
1,167,644
|
|
Less: Adjustments to reconcile to Non-GAAP Segment coal sales revenue
|
|
|
|
|
|
||||||||||
Coal risk management derivative settlements classified in "other income"
|
—
|
|
—
|
|
2,680
|
|
—
|
|
2,680
|
|
|||||
Coal sales revenues from idled or otherwise disposed operations and pass through agreements not included in segments
|
—
|
|
—
|
|
—
|
|
3,625
|
|
3,625
|
|
|||||
Transportation costs
|
8,655
|
|
84,192
|
|
36,675
|
|
—
|
|
129,522
|
|
|||||
Non-GAAP Segment coal sales revenues
|
$
|
466,651
|
|
$
|
413,187
|
|
$
|
151,979
|
|
$
|
—
|
|
$
|
1,031,817
|
|
Tons sold
|
38,535
|
|
3,764
|
|
4,203
|
|
|
|
|||||||
Coal sales per ton sold
|
$
|
12.11
|
|
$
|
109.78
|
|
$
|
36.16
|
|
|
|
38
|
|
|
||||||||||||||
Three Months Ended June 30, 2019
|
Powder River Basin
|
Metallurgical
|
Other Thermal
|
Idle and Other
|
Consolidated
|
||||||||||
(In thousands)
|
|
|
|
|
|
||||||||||
GAAP Cost of sales in the consolidated statements of operations
|
$
|
195,948
|
|
$
|
159,419
|
|
$
|
88,749
|
|
$
|
6,972
|
|
$
|
451,088
|
|
Less: Adjustments to reconcile to Non-GAAP Segment cash cost of coal sales
|
|
|
|
|
|
||||||||||
Diesel fuel risk management derivative settlements classified in "other income"
|
(612
|
)
|
—
|
|
—
|
|
—
|
|
(612
|
)
|
|||||
Transportation costs
|
2,924
|
|
41,963
|
|
24,339
|
|
—
|
|
69,226
|
|
|||||
Cost of coal sales from idled or otherwise disposed operations and pass through agreements not included in segments
|
—
|
|
—
|
|
—
|
|
4,580
|
|
4,580
|
|
|||||
Other (operating overhead, certain actuarial, etc.)
|
—
|
|
—
|
|
—
|
|
2,392
|
|
2,392
|
|
|||||
Non-GAAP Segment cash cost of coal sales
|
193,636
|
|
117,456
|
|
64,410
|
|
—
|
|
375,502
|
|
|||||
Tons sold
|
17,149
|
|
1,892
|
|
1,916
|
|
|
|
|||||||
Cash Cost Per Ton Sold
|
$
|
11.29
|
|
$
|
62.07
|
|
$
|
33.62
|
|
|
|
||||
|
|
||||||||||||||
Three Months Ended June 30, 2018
|
Powder River Basin
|
Metallurgical
|
Other Thermal
|
Idle and Other
|
Consolidated
|
||||||||||
(In thousands)
|
|
|
|
|
|
||||||||||
GAAP Cost of sales in the consolidated statements of operations
|
$
|
205,532
|
|
$
|
172,548
|
|
$
|
86,800
|
|
$
|
9,508
|
|
$
|
474,388
|
|
Less: Adjustments to reconcile to Non-GAAP Segment cash cost of coal sales
|
|
|
|
|
|
||||||||||
Diesel fuel risk management derivative settlements classified in "other income"
|
1,968
|
|
—
|
|
—
|
|
—
|
|
1,968
|
|
|||||
Transportation costs
|
3,176
|
|
49,308
|
|
23,281
|
|
—
|
|
75,765
|
|
|||||
Cost of coal sales from idled or otherwise disposed operations and pass through agreements not included in segments
|
—
|
|
—
|
|
—
|
|
6,731
|
|
6,731
|
|
|||||
Other (operating overhead, certain actuarial, etc.)
|
—
|
|
—
|
|
—
|
|
2,777
|
|
2,777
|
|
|||||
Non-GAAP Segment cash cost of coal sales
|
$
|
200,388
|
|
$
|
123,240
|
|
$
|
63,519
|
|
$
|
—
|
|
$
|
387,147
|
|
Tons sold
|
18,792
|
|
2,009
|
|
2,036
|
|
|
|
|||||||
Cash Cost Per Ton Sold
|
$
|
10.66
|
|
$
|
61.33
|
|
$
|
31.19
|
|
|
|
||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
39
|
Six Months Ended June 30, 2019
|
Powder River Basin
|
Metallurgical
|
Other Thermal
|
Idle and Other
|
Consolidated
|
||||||||||
(In thousands)
|
|
|
|
|
|
||||||||||
GAAP Cost of sales in the consolidated statements of operations
|
$
|
387,594
|
|
$
|
321,331
|
|
$
|
167,115
|
|
$
|
13,519
|
|
$
|
889,559
|
|
Less: Adjustments to reconcile to Non-GAAP Segment cash cost of coal sales
|
|
|
|
|
|
||||||||||
Diesel fuel risk management derivative settlements classified in "other income"
|
(1,251
|
)
|
—
|
|
—
|
|
—
|
|
(1,251
|
)
|
|||||
Transportation costs
|
6,930
|
|
83,261
|
|
43,221
|
|
—
|
|
133,412
|
|
|||||
Cost of coal sales from idled or otherwise disposed operations and pass through agreements not included in segments
|
—
|
|
—
|
|
—
|
|
8,819
|
|
8,819
|
|
|||||
Other (operating overhead, certain actuarial, etc.)
|
—
|
|
—
|
|
—
|
|
4,700
|
|
4,700
|
|
|||||
Non-GAAP Segment cash cost of coal sales
|
$
|
381,915
|
|
$
|
238,070
|
|
$
|
123,894
|
|
$
|
—
|
|
$
|
743,879
|
|
Tons sold
|
34,289
|
|
3,685
|
|
3,602
|
|
|
|
|||||||
Cash Cost Per Ton Sold
|
$
|
11.14
|
|
$
|
64.60
|
|
$
|
34.39
|
|
|
|
||||
|
|
||||||||||||||
Six Months Ended June 30, 2018
|
Powder River Basin
|
Metallurgical
|
Other Thermal
|
Idle and Other
|
Consolidated
|
||||||||||
(In thousands)
|
|
|
|
|
|
||||||||||
GAAP Cost of sales in the consolidated statements of operations
|
$
|
424,059
|
|
$
|
327,310
|
|
$
|
161,988
|
|
$
|
15,811
|
|
$
|
929,168
|
|
Less: Adjustments to reconcile to Non-GAAP Segment cash cost of coal sales
|
|
|
|
|
|
||||||||||
Diesel fuel risk management derivative settlements classified in "other income"
|
2,407
|
|
—
|
|
—
|
|
—
|
|
2,407
|
|
|||||
Transportation costs
|
8,655
|
|
84,192
|
|
36,675
|
|
—
|
|
129,522
|
|
|||||
Cost of coal sales from idled or otherwise disposed operations and pass through agreements not included in segments
|
—
|
|
—
|
|
—
|
|
10,964
|
|
10,964
|
|
|||||
Other (operating overhead, certain actuarial, etc.)
|
—
|
|
—
|
|
—
|
|
4,847
|
|
4,847
|
|
|||||
Non-GAAP Segment cash cost of coal sales
|
$
|
412,997
|
|
$
|
243,118
|
|
$
|
125,313
|
|
$
|
—
|
|
$
|
781,428
|
|
Tons sold
|
38,535
|
|
3,764
|
|
4,203
|
|
|
|
|||||||
Cash Cost Per Ton Sold
|
$
|
10.72
|
|
$
|
64.59
|
|
$
|
29.82
|
|
|
|
40
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Net income
|
|
$
|
62,840
|
|
|
$
|
43,306
|
|
|
$
|
135,581
|
|
|
$
|
103,291
|
|
Provision for (benefit from) income taxes
|
|
91
|
|
|
(3,366
|
)
|
|
161
|
|
|
(3,910
|
)
|
||||
Interest expense, net
|
|
2,287
|
|
|
3,498
|
|
|
4,576
|
|
|
7,620
|
|
||||
Depreciation, depletion and amortization
|
|
26,524
|
|
|
30,549
|
|
|
51,797
|
|
|
60,252
|
|
||||
Accretion on asset retirement obligations
|
|
5,137
|
|
|
6,993
|
|
|
10,274
|
|
|
13,985
|
|
||||
Amortization of sales contracts, net
|
|
11
|
|
|
3,248
|
|
|
76
|
|
|
6,299
|
|
||||
Loss on sale of Lone Mountain Processing, LLC
|
|
4,304
|
|
|
—
|
|
|
4,304
|
|
|
—
|
|
||||
Net loss resulting from early retirement of debt and debt restructuring
|
|
—
|
|
|
485
|
|
|
—
|
|
|
485
|
|
||||
Non-service related pension and postretirement benefit costs
|
|
1,336
|
|
|
(68
|
)
|
|
3,102
|
|
|
1,235
|
|
||||
Reorganization items, net
|
|
16
|
|
|
740
|
|
|
(71
|
)
|
|
1,041
|
|
||||
Costs associated with proposed joint venture with Peabody Energy
|
|
3,018
|
|
|
—
|
|
|
3,018
|
|
|
—
|
|
||||
Adjusted EBITDA
|
|
105,564
|
|
|
85,385
|
|
|
212,818
|
|
|
190,298
|
|
||||
EBITDA from idled or otherwise disposed operations
|
|
1,473
|
|
|
2,832
|
|
|
567
|
|
|
5,411
|
|
||||
Selling, general and administrative expenses
|
|
25,209
|
|
|
24,756
|
|
|
49,298
|
|
|
50,704
|
|
||||
Other
|
|
(4,692
|
)
|
|
12,017
|
|
|
(16,893
|
)
|
|
5,489
|
|
||||
Segment Adjusted EBITDA from coal operations
|
|
$
|
127,554
|
|
|
$
|
124,990
|
|
|
$
|
245,790
|
|
|
$
|
251,902
|
|
41
|
42
|
|
|
Six Months Ended June 30,
|
|||||
|
|
2019
|
2018
|
||||
|
|
(In thousands)
|
|||||
Cash provided by (used in):
|
|
|
|
|
|
||
Operating activities
|
|
$
|
225,906
|
|
$
|
144,996
|
|
Investing activities
|
|
(89,693
|
)
|
(35,326
|
)
|
||
Financing activities
|
|
(168,721
|
)
|
(141,682
|
)
|
43
|
|
|
2019
|
|||||
|
|
Tons
|
|
$ per ton
|
|||
Metallurgical
|
|
(in millions)
|
|
|
|
||
Committed, North America Priced Coking
|
|
1.1
|
|
|
$
|
126.45
|
|
Committed, North America Unpriced Coking
|
|
0.6
|
|
|
—
|
|
|
Committed, Seaborne Priced Coking
|
|
2.6
|
|
|
131.63
|
|
|
Committed, Seaborne Unpriced Coking
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|||
Committed, Priced Thermal
|
|
1.0
|
|
|
32.50
|
|
|
Committed, Unpriced Thermal
|
|
—
|
|
|
|
||
|
|
|
|
|
|||
Powder River Basin
|
|
|
|
|
|
|
|
Committed, Priced
|
|
69.1
|
|
|
$
|
12.10
|
|
Committed, Unpriced
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|||
Other Thermal
|
|
|
|
||||
Committed, Priced
|
|
7.1
|
|
|
$
|
39.53
|
|
Committed, Unpriced
|
|
0.7
|
|
|
|
|
44
|
45
|
•
|
we may not realize any or all of the potential benefits of the joint venture, including expected synergies;
|
•
|
we will remain liable for significant transaction costs, including legal, financial advisory, accounting, and other costs relating to the joint venture, even if it is not consummated;
|
•
|
if the Implementation Agreement is terminated by us before we complete the joint venture, under certain circumstances, we may be required to pay a termination fee to Peabody of up to $40.0 million;
|
•
|
the pending joint venture transaction could have an adverse impact on our relationships with employees, customers and suppliers; and
|
•
|
the attention of our management and employees may be diverted from day-to-day operations.
|
•
|
inconsistent economic, political or business interests or goals between partners or disagreements with partners on strategy for the most efficient development or operation of mines;
|
•
|
inability to control certain strategic decisions made in respect of properties;
|
•
|
ability of partners to block actions that we believe to be in our or the joint venture’s best interests;
|
•
|
inability of partners to meet their financial and other obligations to the joint venture, joint operation or third parties; and
|
•
|
litigation between partners regarding management, funding or other decisions related to the joint venture or joint operation.
|
46
|
Date
|
Total Number Shares Purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan (in thousands) (1)
|
||||||
April 1 through April 30, 2019
|
311,019
|
|
$
|
91.63
|
|
311,019
|
|
$
|
359,369
|
|
May 1 through May 31, 2019
|
217,246
|
|
$
|
91.58
|
|
217,246
|
|
$
|
339,475
|
|
June 1 through June 30, 2019
|
168,990
|
|
$
|
88.76
|
|
168,990
|
|
$
|
324,475
|
|
Total
|
697,255
|
|
$
|
90.92
|
|
697,255
|
|
|
47
|
2.1
|
|
|
2.2
|
|
|
2.3
|
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
|
10.6
|
|
|
10.7
|
|
|
10.8
|
|
|
10.9
|
|
48
|
10.10
|
|
|
10.11
|
|
|
10.12
|
|
|
10.13
|
|
|
10.14
|
|
|
10.15
|
|
|
10.16
|
|
|
10.17
|
|
|
10.18
|
|
Coal Lease Agreement dated as of March 31, 1992, among Allegheny Land Company, as lessee, and UAC and Phoenix Coal Corporation, as lessors, and related guarantee (incorporated herein by reference to the Current Report on Form 8-K filed by Ashland Coal, Inc. on April 6, 1992).
|
10.19
|
|
|
10.20
|
|
|
10.21
|
|
|
10.22
|
|
|
10.23
|
|
|
10.24
|
|
|
10.25
|
|
|
10.26*
|
|
|
10.27*
|
|
|
10.28
|
|
|
10.29*
|
|
49
|
10.30*
|
|
|
10.31*
|
|
|
10.32*
|
|
|
10.33
|
|
|
10.34
|
|
|
10.35*
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
95
|
|
|
101
|
|
Interactive Data File (Form 10-Q for the three and six months ended June 30, 2019 filed in XBRL). The financial information contained in the XBRL-related documents is “unaudited” and “unreviewed.”
|
50
|
|
|
Arch Coal, Inc.
|
|
|
|
|
|
|
|
By:
|
/s/ John T. Drexler
|
|
|
|
John T. Drexler
|
|
|
|
Senior Vice President and Chief Financial Officer (On behalf of the registrant and as Principal Financial Officer)
|
|
|
|
|
|
|
|
July 24, 2019
|
51
|
732261075 15494375
|
2
|
|
732261075 15494375
|
3
|
|
732261075 15494375
|
1
|
Third Amendment to Third A&R RPA
(Arch Coal)
|
732261075 15494375
|
2
|
Third Amendment to Third A&R RPA
(Arch Coal)
|
732261075 15494375
|
3
|
Third Amendment to Third A&R RPA
(Arch Coal)
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(e)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(f)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ John W. Eaves
|
|
John W. Eaves
|
|
Chief Executive Officer, Director
|
|
Date: July 24, 2019
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ John T. Drexler
|
|
John T. Drexler
|
|
Senior Vice President and Chief Financial Officer
|
|
Date: July 24, 2019
|
|
|
/s/ John W. Eaves
|
|
John W. Eaves
|
|
Chief Executive Officer, Director
|
|
Date: July 24, 2019
|
|
|
/s/ John T. Drexler
|
|
John T. Drexler
|
|
Senior Vice President and Chief Financial Officer
|
|
Date: July 24, 2019
|
|
Mine or Operating Name / MSHA Identification Number
|
Section 104 S&S Citations
(#)
|
Section 104(b) Orders
(#)
|
Section 104(d) Citations and Orders
(#)
|
Section 110(b)(2) Violations
(#)
|
Section 107(a) Orders
(#)
|
Total Dollar Value of MSHA Assessments Proposed
(in thousands)
($)
|
Total Number of Mining Related Fatalities
(#)
|
Received Notice of Pattern of Violations Under Section 104(e)
(Yes/No)
|
Received Notice of Potential to Have Pattern of Violations Under Section 104(e)
(Yes/No)
|
Legal Actions Initiated During Period
(#)
|
Legal Actions Resolved During Period
(#)
|
Legal Actions Pending as of Last Day of Period(1)
(#)
|
Active Operations
|
||||||||||||
Vindex Cabin Run /
18‑00133
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Vindex Bismarck /
46‑09369
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Vindex Jackson Mt. /
18-00170
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Vindex Wolf Den Run /
18-00790
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Vindex Energy /
Vindex / 46-02151
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Vidnex Energy / Carlos Surface /
18-00769
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Vindex Energy / Douglas Island /
18-00749
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Vindex Energy / Dobbin Ridge
Prep Plant / 46-07837
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Vindex Energy / Frostburg
Blend Yard / 18-00709
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Beckley Pocahontas Mine /
46‑05252
|
8
|
—
|
—
|
—
|
—
|
62.0
|
—
|
No
|
No
|
9
|
4
|
15
|
Beckley Pocahontas Plant /
46‑09216
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Coal Mac Holden #22 Prep Plant /
46‑05909
|
—
|
—
|
—
|
—
|
—
|
0.7
|
—
|
No
|
No
|
—
|
—
|
—
|
Coal Mac Ragland Loadout /
46‑08563
|
—
|
—
|
—
|
—
|
—
|
0.2
|
—
|
No
|
No
|
—
|
—
|
—
|
Coal Mac Holden #22 Surface /
46‑08984
|
—
|
—
|
—
|
—
|
—
|
4.6
|
—
|
No
|
No
|
—
|
—
|
—
|
Eastern Birch River Mine /
46-07945
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Sentinel Mine /
46‑04168
|
11
|
—
|
2
|
—
|
—
|
19.1
|
—
|
No
|
No
|
1
|
—
|
1
|
Sentinel Prep Plant /
46‑08777
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Mingo Logan Mountaineer II /
46‑09029
|
18
|
—
|
—
|
—
|
-—
|
67.1
|
—
|
No
|
No
|
5
|
6
|
3
|
Mingo Logan Cardinal Prep Plant /
46‑09046
|
1
|
—
|
—
|
—
|
—
|
0.1
|
—
|
No
|
No
|
—
|
—
|
—
|
Mingo Logan Daniel Hollow /
46‑09047
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Leer #1 Mine /
46‑09192
|
14
|
—
|
—
|
—
|
—
|
36.7
|
—
|
No
|
No
|
3
|
4
|
2
|
Arch of Wyoming Elk Mountain /
48‑01694
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Black Thunder /
48‑00977
|
1
|
—
|
—
|
—
|
—
|
2.4
|
—
|
No
|
No
|
—
|
—
|
—
|
Coal Creek /
48‑01215
|
—
|
—
|
—
|
—
|
—
|
2.7
|
—
|
No
|
No
|
—
|
—
|
—
|
West Elk Mine /
05‑03672
|
5
|
—
|
—
|
—
|
—
|
44.2
|
—
|
No
|
No
|
2
|
—
|
2
|
Viper Mine /
11‑02664
|
8
|
—
|
—
|
—
|
—
|
22.6
|
—
|
No
|
No
|
—
|
—
|
—
|
Leer #1 Prep Plant /
46-09191
|
—
|
—
|
—
|
—
|
—
|
0.1
|
—
|
No
|
No
|
—
|
—
|
—
|
Wolf Run Mining – Sawmill Run
Prep Plant / 46-05544
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Wolf Run Mining / Imperial /
46-09115
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
Wolf Run Mining / Upshur /
46-05823
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
No
|
No
|
—
|
—
|
—
|
(1)
|
See table below for additional details regarding Legal Actions Pending as of June 30, 2019.
|
Mine or Operating Name/MSHA Identification Number
|
Contests of Citations, Orders (as of June 30, 2019)
|
Contests of Proposed Penalties (as of June 30, 2019)
|
Complaints for Compensation (as of June 30, 2019)
|
Complaints of Discharge, Discrimination or Interference (as of June 30, 2019)
|
Applications for Temporary Relief (as of June 30, 2019)
|
Appeals of Judges’ Decisions or Orders (as of June 30, 2019)
|
Beckley Pocahontas Mine / 46-05252
|
10
|
5
|
—
|
—
|
—
|
—
|
Mingo Logan Mountaineer II / 46-09029
|
—
|
3
|
—
|
—
|
—
|
—
|
Leer #1 / 46‑09192
|
—
|
2
|
—
|
—
|
—
|
—
|
Wolf Run Mining / Sentinel / 46-04168
|
—
|
1
|
—
|
—
|
—
|
—
|
Mountain Coal / West Elk / 05-03672
|
—
|
2
|
—
|
—
|
—
|
—
|