0001704715--12-312023Q3false3111100017047152023-01-012023-09-3000017047152023-10-27xbrli:shares00017047152023-07-012023-09-30iso4217:USD00017047152022-07-012022-09-3000017047152022-01-012022-09-30iso4217:USDxbrli:shares00017047152023-09-3000017047152022-12-3100017047152021-12-3100017047152022-09-300001704715us-gaap:CommonStockMember2021-12-310001704715us-gaap:AdditionalPaidInCapitalMember2021-12-310001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001704715us-gaap:TreasuryStockCommonMember2021-12-310001704715us-gaap:RetainedEarningsMember2021-12-310001704715us-gaap:RetainedEarningsMember2022-01-012022-03-3100017047152022-01-012022-03-310001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001704715us-gaap:CommonStockMember2022-01-012022-03-310001704715us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001704715us-gaap:TreasuryStockCommonMember2022-01-012022-03-310001704715us-gaap:CommonStockMember2022-03-310001704715us-gaap:AdditionalPaidInCapitalMember2022-03-310001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001704715us-gaap:TreasuryStockCommonMember2022-03-310001704715us-gaap:RetainedEarningsMember2022-03-3100017047152022-03-310001704715us-gaap:RetainedEarningsMember2022-04-012022-06-3000017047152022-04-012022-06-300001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001704715us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001704715us-gaap:TreasuryStockCommonMember2022-04-012022-06-300001704715us-gaap:CommonStockMember2022-04-012022-06-300001704715us-gaap:CommonStockMember2022-06-300001704715us-gaap:AdditionalPaidInCapitalMember2022-06-300001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001704715us-gaap:TreasuryStockCommonMember2022-06-300001704715us-gaap:RetainedEarningsMember2022-06-3000017047152022-06-300001704715us-gaap:RetainedEarningsMember2022-07-012022-09-300001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001704715us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001704715us-gaap:TreasuryStockCommonMember2022-07-012022-09-300001704715us-gaap:CommonStockMember2022-07-012022-09-300001704715us-gaap:CommonStockMember2022-09-300001704715us-gaap:AdditionalPaidInCapitalMember2022-09-300001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001704715us-gaap:TreasuryStockCommonMember2022-09-300001704715us-gaap:RetainedEarningsMember2022-09-300001704715us-gaap:CommonStockMember2022-12-310001704715us-gaap:AdditionalPaidInCapitalMember2022-12-310001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001704715us-gaap:TreasuryStockCommonMember2022-12-310001704715us-gaap:RetainedEarningsMember2022-12-310001704715us-gaap:RetainedEarningsMember2023-01-012023-03-3100017047152023-01-012023-03-310001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001704715us-gaap:CommonStockMember2023-01-012023-03-310001704715us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001704715us-gaap:TreasuryStockCommonMember2023-01-012023-03-310001704715us-gaap:CommonStockMember2023-03-310001704715us-gaap:AdditionalPaidInCapitalMember2023-03-310001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001704715us-gaap:TreasuryStockCommonMember2023-03-310001704715us-gaap:RetainedEarningsMember2023-03-3100017047152023-03-310001704715us-gaap:RetainedEarningsMember2023-04-012023-06-3000017047152023-04-012023-06-300001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001704715us-gaap:CommonStockMember2023-04-012023-06-300001704715us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001704715us-gaap:TreasuryStockCommonMember2023-04-012023-06-300001704715us-gaap:CommonStockMember2023-06-300001704715us-gaap:AdditionalPaidInCapitalMember2023-06-300001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001704715us-gaap:TreasuryStockCommonMember2023-06-300001704715us-gaap:RetainedEarningsMember2023-06-3000017047152023-06-300001704715us-gaap:RetainedEarningsMember2023-07-012023-09-300001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001704715us-gaap:CommonStockMember2023-07-012023-09-300001704715us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001704715us-gaap:TreasuryStockCommonMember2023-07-012023-09-300001704715us-gaap:CommonStockMember2023-09-300001704715us-gaap:AdditionalPaidInCapitalMember2023-09-300001704715us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001704715us-gaap:TreasuryStockCommonMember2023-09-300001704715us-gaap:RetainedEarningsMember2023-09-300001704715amr:CoalMetMemberus-gaap:NonUsMember2023-07-012023-09-300001704715amr:CoalMetMemberus-gaap:NonUsMember2022-07-012022-09-300001704715amr:CoalMetMemberus-gaap:NonUsMember2023-01-012023-09-300001704715amr:CoalMetMemberus-gaap:NonUsMember2022-01-012022-09-300001704715amr:CoalThermalMemberus-gaap:NonUsMember2023-07-012023-09-300001704715amr:CoalThermalMemberus-gaap:NonUsMember2022-07-012022-09-300001704715amr:CoalThermalMemberus-gaap:NonUsMember2023-01-012023-09-300001704715amr:CoalThermalMemberus-gaap:NonUsMember2022-01-012022-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMemberus-gaap:NonUsMember2023-07-012023-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMemberus-gaap:NonUsMember2022-07-012022-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMemberus-gaap:NonUsMember2023-01-012023-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMemberus-gaap:NonUsMember2022-01-012022-09-300001704715amr:CoalMetMembercountry:US2023-07-012023-09-300001704715amr:CoalMetMembercountry:US2022-07-012022-09-300001704715amr:CoalMetMembercountry:US2023-01-012023-09-300001704715amr:CoalMetMembercountry:US2022-01-012022-09-300001704715amr:CoalThermalMembercountry:US2023-07-012023-09-300001704715amr:CoalThermalMembercountry:US2022-07-012022-09-300001704715amr:CoalThermalMembercountry:US2023-01-012023-09-300001704715amr:CoalThermalMembercountry:US2022-01-012022-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMembercountry:US2023-07-012023-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMembercountry:US2022-07-012022-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMembercountry:US2023-01-012023-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMembercountry:US2022-01-012022-09-300001704715amr:CoalMetMember2023-07-012023-09-300001704715amr:CoalMetMember2022-07-012022-09-300001704715amr:CoalMetMember2023-01-012023-09-300001704715amr:CoalMetMember2022-01-012022-09-300001704715amr:CoalThermalMember2023-07-012023-09-300001704715amr:CoalThermalMember2022-07-012022-09-300001704715amr:CoalThermalMember2023-01-012023-09-300001704715amr:CoalThermalMember2022-01-012022-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMember2023-07-012023-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMember2022-07-012022-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMember2023-01-012023-09-300001704715us-gaap:PublicUtilitiesInventoryCoalMember2022-01-012022-09-3000017047152023-10-012023-09-3000017047152024-01-012023-09-3000017047152025-01-012023-09-3000017047152026-01-012023-09-3000017047152027-01-012023-09-300001704715us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310001704715us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-09-300001704715us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-09-300001704715us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310001704715us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-09-300001704715us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-09-300001704715us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-07-012023-09-300001704715us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-07-012022-09-300001704715us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-01-012023-09-300001704715us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-01-012022-09-300001704715amr:AccumulatedDefinedBenefitPlantAdjustmentSettlementGainLossAttributabletoParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001704715amr:AccumulatedDefinedBenefitPlantAdjustmentSettlementGainLossAttributabletoParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001704715amr:AccumulatedDefinedBenefitPlantAdjustmentSettlementGainLossAttributabletoParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001704715amr:AccumulatedDefinedBenefitPlantAdjustmentSettlementGainLossAttributabletoParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001704715us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-07-012023-09-300001704715us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-07-012022-09-300001704715us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-09-300001704715us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-09-300001704715us-gaap:EmployeeStockOptionMember2023-07-012023-09-300001704715us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001704715us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001704715us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001704715us-gaap:StockCompensationPlanMember2023-07-012023-09-300001704715us-gaap:StockCompensationPlanMember2022-07-012022-09-300001704715us-gaap:StockCompensationPlanMember2023-01-012023-09-300001704715us-gaap:StockCompensationPlanMember2022-01-012022-09-3000017047152023-02-210001704715us-gaap:SubsequentEventMember2023-10-3100017047152023-02-212023-02-2100017047152023-04-032023-04-0300017047152023-05-032023-05-0300017047152023-07-052023-07-0500017047152023-08-022023-08-020001704715us-gaap:SubsequentEventMember2023-10-032023-10-030001704715us-gaap:SubsequentEventMember2023-10-312023-10-3100017047152016-07-2600017047152022-12-1500017047152023-03-1500017047152023-06-150001704715amr:ABLFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-12-060001704715amr:ABLFacilityMemberus-gaap:LetterOfCreditMember2021-12-060001704715amr:ABLFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-12-310001704715amr:ABLFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-09-300001704715amr:ABLFacilityMemberus-gaap:LineOfCreditMember2023-09-300001704715amr:ABLFacilityMemberus-gaap:LineOfCreditMember2022-12-310001704715amr:NewAssetBasedRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMember2023-10-270001704715amr:NewAssetBasedRevolvingCreditFacilityMemberus-gaap:LetterOfCreditMemberus-gaap:SubsequentEventMember2023-10-270001704715amr:NewAssetBasedRevolvingCreditFacilityMemberus-gaap:LetterOfCreditMemberus-gaap:SubsequentEventMember2023-10-272023-10-27xbrli:pure0001704715amr:TermSecuredOvernightFinancingRateSOFRMemberamr:NewAssetBasedRevolvingCreditFacilityMemberus-gaap:SubsequentEventMember2023-10-272023-10-270001704715amr:NewAssetBasedRevolvingCreditFacilityMemberus-gaap:SubsequentEventMemberus-gaap:BaseRateMember2023-10-272023-10-270001704715amr:NewAssetBasedRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMember2023-10-272023-10-270001704715amr:ContingentRevenueObligationMember2023-09-300001704715amr:ContingentRevenueObligationMember2022-12-310001704715amr:EnvironmentalSettlementObligationsMember2023-09-300001704715amr:EnvironmentalSettlementObligationsMember2022-12-310001704715us-gaap:FairValueMeasurementsRecurringMember2023-09-300001704715us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001704715us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001704715us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001704715us-gaap:FairValueMeasurementsRecurringMember2022-12-310001704715us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001704715us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001704715us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001704715us-gaap:FairValueInputsLevel3Member2022-12-310001704715us-gaap:FairValueInputsLevel3Member2023-01-012023-09-300001704715us-gaap:FairValueInputsLevel3Member2023-09-300001704715us-gaap:FairValueInputsLevel3Member2021-12-310001704715us-gaap:FairValueInputsLevel3Member2022-01-012022-09-300001704715us-gaap:FairValueInputsLevel3Member2022-09-300001704715us-gaap:PensionPlansDefinedBenefitMember2023-07-012023-09-300001704715us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300001704715us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-09-300001704715us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-09-300001704715us-gaap:PensionPlansDefinedBenefitMember2023-04-012023-06-300001704715us-gaap:PensionPlansDefinedBenefitMember2022-04-012022-06-300001704715us-gaap:DefinedBenefitPostretirementHealthCoverageMember2023-07-012023-09-300001704715us-gaap:DefinedBenefitPostretirementHealthCoverageMember2022-07-012022-09-300001704715us-gaap:DefinedBenefitPostretirementHealthCoverageMember2023-01-012023-09-300001704715us-gaap:DefinedBenefitPostretirementHealthCoverageMember2022-01-012022-09-300001704715amr:CumberlandBackToBackCoalSupplyAgreementsMember2023-01-012023-06-30utr:T0001704715amr:CumberlandBackToBackCoalSupplyAgreementsMember2022-07-012022-09-300001704715amr:CumberlandBackToBackCoalSupplyAgreementsMember2022-01-012022-09-300001704715amr:NewAssetBasedRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2023-09-300001704715us-gaap:SuretyBondMember2023-09-300001704715us-gaap:CollateralPledgedMemberamr:ReclamationRelatedObligationsMember2023-09-300001704715amr:WorkersCompensationAndBlackLungObligationsMember2023-09-300001704715amr:WorkersCompensationAndBlackLungObligationsMember2022-12-310001704715amr:ReclamationRelatedObligationsMember2023-09-300001704715amr:ReclamationRelatedObligationsMember2022-12-310001704715amr:FinancialPaymentsAndOtherPerformanceObligationsMember2023-09-300001704715amr:FinancialPaymentsAndOtherPerformanceObligationsMember2022-12-310001704715amr:ContingentRevenueObligationMember2023-09-300001704715amr:ContingentRevenueObligationMember2022-12-310001704715amr:OtherOperatingAgreementsMember2023-09-300001704715amr:OtherOperatingAgreementsMember2022-12-310001704715us-gaap:DefinedBenefitPostretirementHealthCoverageMember2020-02-210001704715us-gaap:DefinedBenefitPostretirementHealthCoverageMember2020-02-200001704715us-gaap:DefinedBenefitPostretirementHealthCoverageMember2022-02-100001704715srt:MinimumMemberus-gaap:DefinedBenefitPostretirementHealthCoverageMember2023-01-310001704715srt:MaximumMemberus-gaap:DefinedBenefitPostretirementHealthCoverageMember2023-01-31amr:segment0001704715stpr:VAus-gaap:OperatingSegmentsMemberamr:MetMember2023-01-012023-09-30amr:mineamr:plant0001704715us-gaap:OperatingSegmentsMemberstpr:WVamr:MetMember2023-01-012023-09-300001704715stpr:WVamr:OtherOperatingSegmentsAndIntersegmentEliminationsMember2023-01-012023-09-300001704715us-gaap:OperatingSegmentsMemberamr:MetMember2023-07-012023-09-300001704715amr:OtherOperatingSegmentsAndIntersegmentEliminationsMember2023-07-012023-09-300001704715us-gaap:OperatingSegmentsMemberamr:MetMember2022-07-012022-09-300001704715amr:OtherOperatingSegmentsAndIntersegmentEliminationsMember2022-07-012022-09-300001704715us-gaap:OperatingSegmentsMemberamr:MetMember2023-01-012023-09-300001704715amr:OtherOperatingSegmentsAndIntersegmentEliminationsMember2023-01-012023-09-300001704715us-gaap:OperatingSegmentsMemberamr:MetMember2022-01-012022-09-300001704715amr:OtherOperatingSegmentsAndIntersegmentEliminationsMember2022-01-012022-09-300001704715amr:ExportCoalRevenueMember2023-07-012023-09-300001704715amr:ExportCoalRevenueMember2022-07-012022-09-300001704715amr:ExportCoalRevenueMember2023-01-012023-09-300001704715amr:ExportCoalRevenueMember2022-01-012022-09-300001704715amr:ExportCoalRevenueMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-07-012023-09-300001704715amr:ExportCoalRevenueMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-07-012022-09-300001704715amr:ExportCoalRevenueMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-01-012023-09-300001704715amr:ExportCoalRevenueMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-01-012022-09-300001704715us-gaap:CustomerConcentrationRiskMemberamr:CustomerOneMemberus-gaap:SalesRevenueNetMember2023-07-012023-09-300001704715us-gaap:CustomerConcentrationRiskMemberamr:CustomerOneMemberus-gaap:SalesRevenueNetMember2022-07-012022-09-300001704715us-gaap:CustomerConcentrationRiskMemberamr:CustomerOneMemberus-gaap:SalesRevenueNetMember2023-01-012023-09-300001704715us-gaap:CustomerConcentrationRiskMemberamr:CustomerOneMemberus-gaap:SalesRevenueNetMember2022-01-012022-09-300001704715us-gaap:CustomerConcentrationRiskMemberamr:TopTenCustomersMemberus-gaap:SalesRevenueNetMember2023-07-012023-09-300001704715us-gaap:CustomerConcentrationRiskMemberamr:TopTenCustomersMemberus-gaap:SalesRevenueNetMember2022-07-012022-09-300001704715us-gaap:CustomerConcentrationRiskMemberamr:TopTenCustomersMemberus-gaap:SalesRevenueNetMember2023-01-012023-09-300001704715us-gaap:CustomerConcentrationRiskMemberamr:TopTenCustomersMemberus-gaap:SalesRevenueNetMember2022-01-012022-09-300001704715us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-07-012023-09-30amr:customer0001704715us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-07-012022-09-300001704715us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2023-01-012023-09-300001704715us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-01-012022-09-300001704715us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2023-01-012023-09-300001704715us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-09-30

(Exact name of registrant as specified in its charter)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes   ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Sec.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes   ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ Yes   x No

Securities registered pursuant to Section 12(b) of the Act:

Number of shares of the registrant’s Common Stock, $0.01 par value, outstanding as of October 27, 2023: 13,283,594

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, including those directly affecting our coal mining and production and those affecting our customers’ coal usage, including potential climate change initiatives;

•our ability to obtain or renew surety bonds on acceptable terms or maintain our current bonding status;

•worldwide market demand for coal and steel, including demand for U.S. coal exports, and competition in coal markets;

•attracting and retaining key personnel and other employee workforce factors, such as labor relations;

•our ability to pay dividends on our common stock and execute our share repurchase program;

•our ability to self-insure certain of our black lung obligations without a significant increase in required collateral;

•our ability to meet collateral requirements and fund employee benefit obligations;

•inflationary pressures on supplies and labor and significant or rapid increases in commodity prices;

•disruptions in delivery or changes in pricing from third-party vendors of key equipment and materials that are necessary for our operations, such as diesel fuel, steel products, explosives, tires and purchased coal;

•our ability to consummate financing or refinancing transactions, and other services, and the form and degree of these services available to us, which may be significantly limited by the lending, investment and similar policies of financial institutions and insurance companies regarding carbon energy producers and the environmental impacts of coal combustion;

•failures in performance, or non-performance, of services by third-party contractors, including contract mining and reclamation contractors;

•disruption in third-party coal supplies;

•cybersecurity attacks or failures, threats to physical security, extreme weather conditions or other natural disasters;

•the imposition or continuation of barriers to trade, such as tariffs;

•increased volatility and uncertainty regarding worldwide markets, seaborne transportation and our customers as a result of developments in and around Ukraine and the consequent export controls and financial and economic sanctions;

•changes in, renewal or acquisition of, terms of and performance of customers under coal supply arrangements and the refusal by our customers to receive coal under agreed-upon contract terms;

•reductions or increases in customer coal inventories and the timing of those changes;

•our production capabilities and costs;

•our ability to obtain, maintain or renew any necessary permits or rights;

•the effects of the COVID-19 pandemic on our operations and the world economy;

•inherent risks of coal mining, including those that are beyond our control;

•changes in, interpretations of, or implementations of domestic or international tax or other laws and regulations, including the Inflation Reduction Act of 2022 and its related regulations;

•our relationships with, and other conditions affecting, our customers, including the inability to collect payments from our customers if their creditworthiness declines;

•our indebtedness and potential future indebtedness;

•reclamation and mine closure obligations;

•steel and coke producers switching to alternative energy sources such as natural gas, renewables and coal from basins where we do not operate;

•our assumptions concerning economically recoverable coal reserve estimates;

•our ability to mine properties due to defects in title on leasehold interests; and

•other factors, including the other factors discussed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section included elsewhere in this Quarterly Report on Form 10-Q and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections included elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2022.

The list of factors identified above is not exhaustive. We caution readers not to place undue reliance on any forward-looking statements, which are based on information currently available to us and speak only as of the dates on which they are made. When considering these forward-looking statements, you should keep in mind the cautionary statements in this report. We do not undertake any responsibility to publicly revise these forward-looking statements to take into account events or circumstances that occur after the date of this report. Additionally, except as expressly required by federal securities laws, we do not undertake any responsibility to update you on the occurrence of any unanticipated events, which may cause actual results to differ from those expressed or implied by the forward-looking statements contained in this report.

Item 1. Financial Statements

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.

Alpha is a Tennessee-based mining company with operations across 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.

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 nine months ended September 30, 2023 and 2022. 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 nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or any other period. These interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Certain immaterial amounts for the three and nine months ended September 30, 2022 in the Condensed Consolidated Financials Statements and notes to the Condensed Consolidated Financials Statements have been recast to reclassify discontinued operations and present the related amounts within continuing operations as part of the All Other category.

There are no new pronouncements issued but not yet effective expected to have a material impact on the Company’s financial position, results of operations, or liquidity.

The Company earns revenues primarily through the sale of coal produced by Company operations and coal purchased from third parties. The Company extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities.

The Company has disaggregated revenue between met coal and thermal coal and export and domestic revenues which depicts the pricing and contract differences between the two. Export revenue generally is derived by spot or short-term contracts with pricing determined at the time of shipment or based on a market index, whereas domestic revenue is characterized by contracts that typically have a term of one year or longer and with fixed pricing terms. The following tables disaggregate the Company’s coal revenues by product category and by market to depict how the nature, amount, timing, and uncertainty of the Company’s coal revenues and cash flows are affected by economic factors:

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied as of September 30, 2023:

The following tables summarize the changes to accumulated other comprehensive loss during the nine months ended September 30, 2023 and 2022:

The following table summarizes the amounts reclassified from accumulated other comprehensive loss and the Condensed Consolidated Statements of Operations line items affected by the reclassification during the three and nine months ended September 30, 2023 and 2022:

(1) These accumulated other comprehensive loss components are included in the computation of net periodic benefit costs for certain employee benefit plans. Refer to Note 13.

The number of shares used to calculate basic net income per common share is based on the weighted average number of the Company’s outstanding common shares during the respective period. The number of shares used to calculate diluted net income per common share is based on the number of common shares used to calculate basic net income per common share plus the dilutive effect of stock options and other stock-based instruments held by the Company’s employees and directors during the period, and the Company’s outstanding warrants. The dilutive effect of outstanding stock-based instruments is determined by application of the treasury stock method. The stock options and warrants become dilutive for diluted net income per common share calculations when the market price of the Company’s common stock exceeds the exercise price. Anti-dilution also occurs in periods of a net loss, and the dilutive impact of all warrants and share-based compensation awards are excluded.

For the three and nine months ended September 30, 2023, 0 and 1,240 stock-based instruments, respectively, were excluded from the computation of dilutive net income per common share because they would have been anti-dilutive. For the three and nine months ended September 30, 2022, no warrants, stock options, or other stock-based instruments were excluded from the computation of dilutive net income per common share because they would have been anti-dilutive. When applying the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share are higher than the Company’s average stock price during an applicable period.

The following table presents the net income per common share for the three and nine months ended September 30, 2023 and 2022:

Inventories, net consisted of the following: 

On February 21, 2023, the Company’s Board of Directors (the “Board”) approved a $200,000 increase to the existing common share repurchase program that the Board adopted on March 4, 2022, bringing the total authorization to repurchase the Company’s stock to $1,200,000. As of September 30, 2023, the Company had repurchased an aggregate of 5,976,397 shares under the plan for an aggregate purchase price of approximately $910,281 (comprised of $910,101 of share repurchases and $180 of related fees). The Company has also accrued a stock repurchase excise tax of $3,482 related to the share repurchase program as of September 30, 2023, which is recorded in treasury stock at cost.

On October 31, 2023, the Board approved an additional $300,000 increase to the share repurchase program, bringing the total authorization to repurchase the Company’s stock to $1,500,000.

Pursuant to the dividend policy adopted by the Board on May 3, 2022, the Board declared the following quarterly cash dividends on the Company’s common stock during the nine months ended September 30, 2023:

(1) Excludes dividend equivalents paid or accrued of $682 as of September 30, 2023. As of September 30, 2023, a related $6,736 balance was held on deposit to facilitate the dividend payment on October 3, 2023.

On August 2, 2023, the Board determined to end the Company’s fixed dividend program following the quarterly dividend declared and to be paid in the fourth quarter of 2023 and to focus instead on the Company’s share repurchase program.

On October 31, 2023, the Board declared a quarterly cash dividend of $0.50 per share which will be payable on December 15, 2023 for stockholders of record as of December 1, 2023.

On July 26, 2016, the Company issued 810,811 warrants, which are classified as equity instruments. Pursuant to the underlying warrants agreement, the warrants were exercisable for cash or on a cashless basis at any time until their expiration, and no fractional shares were to be issued upon warrant exercises. Pursuant to the underlying warrants agreement, the exercise price was adjusted from $45.086 per share to $44.972 per share as of the March 15, 2023 dividend record date and to $44.820 per share as of the June 15, 2023 dividend record date, while the warrant share number remained unchanged at 1.20. At 5:00 pm Eastern Time on July 26, 2023 the Company’s Series A Warrants expired pursuant to their terms.

As of September 30, 2023, no warrants remained outstanding as the warrants expired during the current quarter. For the three and nine months ended September 30, 2023, the Company issued 96,556 and 169,028 shares of common stock, respectively, resulting from exercises of its warrants and, pursuant to the terms of the underlying warrants agreement, withheld 4,978 and 20,139 of the issued shares, respectively, in satisfaction of the warrant exercise price and in lieu of fractional shares, which were subsequently reclassified as treasury stock in the amount of $577 and $2,368, respectively.

As of September 30, 2022, 211,477 warrants were outstanding, with a total of 245,313 shares underlying the un-exercised warrants. For the three and nine months ended September 30, 2022, the Company issued 60,084 and 678,241 shares of common stock, respectively, resulting from exercises of its warrants and, pursuant to the terms of the underlying warrants agreement, withheld 18,151 and 186,397 of the issued shares, respectively, in satisfaction of the warrant exercise price and in lieu of fractional shares, which were subsequently reclassified as treasury stock in the amounts of $1,680 and $18,331, respectively.

Accrued expenses and other current liabilities consisted of the following: 

Long-term debt consisted of the following: 

At September 30, 2023, the Company’s Second Amended and Restated Asset-Based Revolving Credit Agreement (the “ABL Agreement”) included a senior secured asset-based revolving credit facility (the “ABL Facility”). Under the ABL Facility, the Company could borrow cash or obtain letters of credit, on a revolving basis, in an aggregate amount of up to $155,000, of which no more than $150,000 could represent outstanding letters of credit ($125,000 on a committed basis and another $25,000 on an uncommitted cash collateralized basis). The facility’s maturity date was December 6, 2024. As of September 30, 2023 and December 31, 2022, there were no outstanding borrowings under the ABL Facility. As of September 30, 2023 and December 31, 2022, the Company had $60,927 and $61,877 letters of credit outstanding under the ABL Facility, respectively. The ABL Agreement, as amended, and related documents contained negative and affirmative covenants including certain financial covenants. The Company was in compliance with all covenants under these agreements as of September 30, 2023.

On October 27, 2023, the Company terminated its existing ABL Agreement and along with certain of its directly and indirectly owned subsidiaries (the “Borrowers”) entered into a new Credit Agreement (the “New ABL Agreement”) with Regions Bank, as lender, swingline lender, LC issuer, administrative agent, collateral agent, and lead arranger, along with ServisFirst Bank and Texas Capital Bank, as joint lead arrangers and the other lenders party thereto. The New ABL Agreement continues to include an asset-based revolving credit facility (the “New ABL Facility”) which allows the Company to borrow cash or obtain letters of credit (“LCs”), on a revolving basis, in an aggregate amount of up to $155,000. The Company may request an increase to the capacity of the facility of up to $75,000 provided that $25,000 may be solely for the purpose of providing additional availability to obtain cash collateralized LCs. Availability under the New ABL Facility is calculated monthly and fluctuates based on qualifying amounts of coal inventory, trade accounts receivable and in certain circumstances specified amounts of cash. The Company must maintain minimum liquidity, as defined in the New ABL Agreement, of $75,000. The New ABL Facility matures on October 27, 2027. As part of the transition from the previous ABL Facility to the New ABL Facility, the Company temporarily collateralized outstanding LCs with approximately $62,754 in cash. The Company expects to replace the cash collateral with new LCs under the New ABL Facility prior to year-end 2023.

Under the terms of the New ABL Facility, letter of credit fees will be calculated at 3.25% (including a fronting fee of 0.25%) while future borrowings will bear interest based on the character of the loan (defined as either a “Term Secured Overnight Financing Rate Loan” (or “Term SOFR Loan”) or a “Base Rate Loan”) plus an applicable rate of 3.10% for a Term SOFR Loan and 2.00% for a Base Rate Loan. The Company may elect the character and interest period for each loan. All amounts borrowed may be repaid prior to maturity without penalty. A commitment fee of 0.375% will be charged on any unused capacity.

The New ABL Facility is guaranteed by substantially all of Alpha’s directly and indirectly owned subsidiaries that are not Borrowers (the “Guarantors”) and is secured by all or substantially all assets of the Borrowers and Guarantors.

Acquisition-related obligations consisted of the following:

During the first quarter of 2023, the Company paid the final calculated payment pursuant to terms of the Contingent Revenue Obligation. Refer to Note 11 for further disclosures related to the fair value assignment and methods used.

The following table summarizes the changes in asset retirement obligations for the nine months ended September 30, 2023:

(1) Included within Accrued expenses and other current liabilities on the Company’s Condensed Consolidated Balance Sheets. Refer to Note 7.

The estimated fair values of financial instruments are determined based on relevant market information. These estimates involve uncertainty and cannot be determined with precision.

The carrying amounts for cash and cash equivalents, trade accounts receivable, net, prepaid expenses and other current assets, restricted cash, deposits, trade accounts payable, accrued expenses and other current liabilities, and environmental settlement obligations approximate fair value as of September 30, 2023 and December 31, 2022 due to the short maturity of these instruments.

The following tables set forth by level, within the fair value hierarchy, the Company’s financial and non-financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2023 and December 31, 2022. Financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the determination of fair value for assets and liabilities and their placement within the fair value hierarchy levels.

(1) Classified as Long-term restricted investments on the Company’s Condensed Consolidated Balance Sheets.

(1) Includes $46,052 classified as Short-term investments and $105,735 classified as Long-term restricted investments on the Company’s Condensed Consolidated Balance Sheets.

The following tables are reconciliations of the financial and non-financial assets and liabilities that were accounted for at fair value on a recurring basis and that were categorized within Level 3 of the fair value hierarchy:

(1) The loss recognized in earnings resulted primarily from an increase in forecasted future revenue as of September 30, 2022.

The following methods and assumptions were used to estimate the fair values of the assets and liabilities in the tables above:

Trading Securities - Typically includes certificates of deposit, corporate fixed income, and U.S. government securities. The fair values are obtained from a third-party pricing service provider. The fair values provided by the pricing service provider are based on observable market inputs including credit spreads and broker-dealer quotes, among other inputs. The Company classifies the prices obtained from the pricing services within Level 2 of the fair value hierarchy because the underlying inputs are directly observable from active markets. However, the pricing models used entail a certain amount of subjectivity and therefore differing judgments in how the underlying inputs are modeled could result in different estimates of fair value.

Contingent Revenue Obligation - The fair value of the Contingent Revenue Obligation was estimated using a Black-Scholes pricing model. The inputs included in the Black-Scholes pricing model are the Company’s forecasted future revenue, the stated royalty rate, the remaining periods in the obligation, annual risk-free interest rate based on the U.S. Constant Maturity Treasury Curve and annualized volatility. The annualized volatility was calculated by observing volatilities for comparable companies with adjustments for the Company's size and leverage. As the royalty period ended on December 31, 2022, the fair value of the remaining obligation as of that date represents the actual final calculated payment made during the first quarter of 2023. Refer to Note 9 for additional information.

For the nine months ended September 30, 2023, the Company recorded income tax expense of $94,973 on income before income taxes of $640,913. The income tax expense differs from the expected statutory amount primarily due to the permanent impact of percentage depletion and foreign-derived intangible income deductions, partially offset by the impact of state income taxes, net of federal impact. For the nine months ended September 30, 2022, the Company recorded income tax expense of $113,953 on income before income taxes of $1,341,818. The income tax expense differs from the expected statutory amount primarily due to the decrease in the valuation allowance and the permanent impact of percentage depletion and foreign-derived intangible income deductions, partially offset by the impact of state income taxes, net of federal impact.

The components of net periodic benefit cost (credit) other than the service cost component for black lung are included in the line item miscellaneous (expense) income, net in the Condensed Consolidated Statements of Operations.

The following table details the components of the net periodic benefit cost (credit) for pension obligations:

During the three months ended June 30, 2023, an annual census data actuarial revaluation of pension obligations was performed, which resulted in an increase in the liability for pension obligations of approximately $3,630 with the offset to accumulated other comprehensive loss and a slight increase in net periodic benefit cost to be recognized subsequent to the revaluation date. An annual census data actuarial revaluation of pension obligations was also performed during the three months ended June 30, 2022, which resulted in an increase in the liability for pension obligations of approximately $4,837 with the offset to accumulated other comprehensive loss and a slight decrease in net periodic benefit credit to be recognized subsequent to the revaluation date.

The following table details the components of the net periodic benefit cost for black lung obligations:

The Company is self-insured for health benefit coverage for all of its active employees. Estimated liabilities for health and medical claims are recorded based on the Company’s historical experience and include a component for incurred but not paid claims. During the three months ended September 30, 2023 and 2022 the Company incurred total expenses of $22,040 and $18,324, respectively, and during the nine months ended September 30, 2023 and 2022, the Company incurred total expenses of $61,866 and $49,334, respectively, which primarily include claims processed and an estimate for claims incurred but not paid.

There were no material related party transactions for the nine months ended September 30, 2023 or 2022.

Estimated losses from loss contingencies are accrued by a charge to income when available information indicates that it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated.

If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the Condensed Consolidated Financial Statements when it is at least reasonably possible that a loss may be incurred and that the loss could be material.

The Company leases coal mining and other equipment under long-term financing and operating leases with varying terms. In addition, the Company leases mineral interests and surface rights from landowners under various terms and royalty rates.

Coal royalty expense was $39,284 and $44,340 for the three months ended September 30, 2023 and 2022, respectively. Coal royalty expense was $136,308 and $174,310 for the nine months ended September 30, 2023 and 2022, respectively.

Extensive regulation of the impacts of mining on the environment and of maintaining workplace safety has had, and is expected to continue to have, a significant effect on the Company’s costs of production and results of operations. Further regulations, legislation or litigation in these areas may also cause the Company’s sales or profitability to decline by increasing costs or by hindering the Company’s ability to continue mining at existing operations or to permit new operations.

During the normal course of business, contract-related matters arise between the Company and its customers. When a loss related to such matters is considered probable and can reasonably be estimated, the Company records a liability.

During the first half of 2023, the Company purchased and sold 399 tons, totaling $15,170, under the Cumberland Back-to-Back Coal Supply Agreements. For the three and nine months ended September 30, 2022, the Company purchased and sold 443 and 1,120 tons, respectively, totaling $16,979 and $43,100, respectively, under the Cumberland Back-to-Back Coal Supply Agreements.

As of June 30, 2023, the Cumberland Back-to-Back Coal Supply Agreements had been fully performed.

In the normal course of business, the Company is a party to certain guarantees and financial instruments with off-balance sheet risk, such as bank letters of credit, performance or surety bonds, and other guarantees and indemnities related to the obligations of affiliated entities which are not reflected in the Company’s Condensed Consolidated Balance Sheets. However, the underlying liabilities that they secure, such as asset retirement obligations, workers’ compensation liabilities, and royalty obligations, are reflected in the Company’s Condensed Consolidated Balance Sheets.

The Company is required to provide financial assurance in order to perform the post-mining reclamation required by its mining permits, pay workers’ compensation claims under workers’ compensation laws in various states, pay federal black lung benefits, and perform certain other obligations. In order to provide the required financial assurance, the Company generally uses surety bonds for post-mining reclamation and workers’ compensation obligations. The Company can also use bank letters of credit to collateralize certain obligations.

As of September 30, 2023, the Company had $60,927 letters of credit outstanding under the ABL Agreement.

As of September 30, 2023, the Company had outstanding surety bonds with a total face amount of $175,339 to secure various obligations and commitments. To secure the Company’s reclamation-related obligations, the Company has $33,372 of collateral in the form of restricted cash and restricted investments supporting these obligations as of September 30, 2023.

The Company meets frequently with its surety providers and has discussions with certain providers regarding the extent of and the terms of their participation in the program. These discussions may cause the Company to shift surety bonds between providers or to alter the terms of their participation in our program. To the extent that surety bonds become unavailable or the Company’s surety bond providers require additional collateral, the Company would seek to secure its obligations with letters of credit, cash deposits or other suitable forms of collateral. The Company’s failure to maintain, or inability to acquire, surety bonds or to provide a suitable alternative would have a material adverse effect on its liquidity. These failures could result from a variety of factors, including the lack of availability, higher cost or unfavorable market terms of new surety bonds, and the exercise by third-party surety bond issuers of their right to refuse to renew the surety.

Amounts included in restricted cash provide collateral to secure the following obligations:

Amounts included in restricted investments provide collateral to secure the following obligations:

(1) Classified as long-term trading securities as of September 30, 2023 and December 31, 2022.

Amounts included in deposits provide collateral to secure the following obligations:

(1) Included $6,736 and $84,748 related to the Company’s dividend payable as of September 30, 2023 and December 31, 2022, respectively. Refer to Note 6 for additional information.

(2) Included within Other non-current assets on the Company’s Condensed Consolidated Balance Sheets.

In July 2019, the U.S. Department of Labor (Division of Coal Mine Workers’ Compensation or “DCMWC”) began implementing a new authorization process for all self-insured coal mine operators. As requested by the DCMWC, the Company filed an application and supporting documentation for reauthorization to self-insure certain of its black lung obligations in October 2019. As a result of this application, the DCMWC notified the Company in a letter dated February 21, 2020 that the Company was reauthorized to self-insure certain of its black lung obligations for a period of one-year from February 21, 2020. The DCMWC reauthorization is contingent, however, upon the Company’s providing collateral of $65,700 to secure certain of its black lung obligations. This proposed collateral requirement is an increase from the approximate $2,600 in collateral that the Company currently provides to secure these self-insured black lung obligations. The reauthorization process provided the Company with the right to appeal the security determination in writing within 30 days of the date of the notification, which appeal period the DCMWC agreed to extend to May 22, 2020. The Company exercised this right of appeal in connection with the substantial increase in the amount of required collateral. In February 2021, the U.S. Department of Labor (“DOL”) withdrew its Federal Register notice seeking comments on its bulletin describing its new method of calculating collateral requirements. The DOL removed the bulletin from its website in May 2021. On February 10, 2022, a telephone conference was held with DCMWC and DOL decision makers wherein the Company presented facts and arguments in support of its appeal. No ruling has been made on the appeal, but during the call the Company indicated that it would be willing to allocate an additional $10,000 in collateral. If the Company’s appeal is unsuccessful, the Company may be required to provide additional letters of credit to receive the self-insurance reauthorization from the DCMWC or alternatively insure these black lung obligations through a third-party provider that would likely also require the Company to provide additional collateral. In January 2023, the DOL proposed for public comment new regulations which, if adopted, would substantially increase the collateral required to secure self-insured federal black lung obligations. Under the proposed 120% minimum collateral requirement, the Company estimates it could be required to provide approximately $80,000 to $100,000 of collateral to secure certain of its black lung obligations. The DOL has indicated that it expects that some form of these new regulations could go into effect in the fourth quarter of 2023. A significant increase in these collateral obligations could have a materially adverse effect on the Company’s liquidity.

The Company is party to legal proceedings from time to time. These proceedings, as well as governmental examinations, could involve various business units and a variety of claims including, but not limited to, contract disputes, personal injury claims, property damage claims (including those resulting from blasting, trucking and flooding), environmental and safety issues, securities-related matters and employment matters. While some legal matters may specify the damages claimed by the plaintiffs, many seek an unquantified amount of damages. Even when the amount of damages claimed against the Company or its subsidiaries is stated, (i) the claimed amount may be exaggerated or unsupported; (ii) the claim may be based on a novel legal theory or involve a large number of parties; (iii) there may be uncertainty as to the likelihood of a class being certified or the ultimate size of the class; (iv) there may be uncertainty as to the outcome of pending appeals or motions; and/or (v) there may be significant factual issues to be resolved. As a result, if such legal matters arise in the future, the Company may be unable to estimate a range of possible loss for matters that have not yet progressed sufficiently through discovery and the development of important factual information and legal issues. The Company records accruals based on an estimate of the ultimate outcome of these matters, but these estimates can be difficult to determine and involve significant judgment.

The Company extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities. The Company conducts mining operations only in the United States with mines in Central Appalachia (“CAPP”). The Company has one reportable segment: Met, which consists of five active mines and two preparation plants in Virginia, sixteen active mines and five preparation plants in West Virginia, as well as expenses associated with certain idled/closed mines.

In addition to the one reportable segment, the All Other category includes general corporate overhead and corporate assets and liabilities, the former CAPP - Thermal operations consisting of one preparation plant in West Virginia, and the elimination of certain intercompany activity, as well as expenses associated with certain idled/closed mines. Certain immaterial amounts as of and for the three and nine months ended September 30, 2022 in the Condensed Consolidated Financials Statements and notes to the Condensed Consolidated Financials Statements have been recast to reclassify discontinued operations and present the related amounts within continuing operations as part of the All Other category.

Reportable segment operating results are regularly reviewed by the Chief Operating Decision Maker (the “CODM”), who is the Chief Executive Officer of the Company.

Segment operating results and capital expenditures for the three and nine months ended September 30, 2023 and 2022 were as follows: 

			Three Months Ended September 30, 2023
			Met						All Other						Consolidated
Total revenues			$	733,536					$	8,284					$	741,820
Depreciation, depletion, and amortization			$	31,893					$	689					$	32,582
Amortization of acquired intangibles, net			$	2,069					$	—					$	2,069
Adjusted EBITDA			$	172,414					$	(18,503)					$	153,911
Capital expenditures			$	54,237					$	488					$	54,725

 

The following tables present a reconciliation of net income (loss) to Adjusted EBITDA for the three and nine months ended September 30, 2023 and 2022: