February 28, 2024 - Alpha Metallurgical Resources Inc (NYSE:AMR) released its 8-K filing on February 26, 2024, disclosing its financial results for the fourth quarter and full year ending December 31, 2023. The Tennessee-based coal mining company, which operates across Virginia and West Virginia, specializes in producing low-ash metallurgical coal for domestic and international steel producers.

Alpha Metallurgical Resources Inc Reports Strong Q4 and Full Year 2023 Earnings

Financial Highlights and Operational Performance

AMR's financial performance in the fourth quarter was marked by a robust net income of $176.0 million, or $12.88 per diluted share, a significant improvement from the $93.8 million, or $6.65 per diluted share, reported in the third quarter. The company's Adjusted EBITDA for the quarter was $266.3 million, compared to $153.9 million in the previous quarter, showcasing strong operational efficiency and profitability.

The company's coal revenues for the Met segment in Q4 were $954.2 million, with coal sales realization per ton at $183.76, reflecting a favorable market pricing environment. The cost of coal sales in the Met segment increased to an average of $119.00 per ton, primarily due to higher sales-related costs and purchased coal costs, as well as increased labor costs.

Liquidity, Capital Resources, and Share Repurchase Program

AMR's liquidity position remained solid, with total liquidity of $287.3 million as of December 31, 2023. This includes cash and cash equivalents of $268.2 million and $94.1 million of unused availability under the Asset-Based Lending (ABL) facility. The company's long-term debt stood at a modest $10.4 million, consisting primarily of equipment financing obligations.

Under its share repurchase program, AMR has acquired approximately 6.6 million shares of common stock at a cost of approximately $1.1 billion, demonstrating confidence in its financial stability and commitment to delivering shareholder value.

Our fourth quarter results reflect a team effort to finish the year strong, and I'm pleased to report we were successful in that endeavor," said Andy Eidson, Alpha's chief executive officer. "Building on this positive momentum, Alpha completed the year having generated over a billion dollars in 2023 Adjusted EBITDA and having invested more than a billion dollars into our share repurchase program since its inception."

Board of Directors and Future Outlook

AMR announced changes to its board of directors, with the appointment of Shelly Lombard, a financial expert with over 35 years of experience, effective at market close on February 26, 2024. The company has also scheduled its annual meeting for May 2, 2024, and provided guidance for its 2024 financial activity, which will be reported within the Met segment following the closure of its last thermal mine in 2023.

Alpha Metallurgical Resources Inc's strong Q4 and full-year 2023 financial results, along with its strategic share repurchase program and board enhancements, position the company well for continued success in the metallurgical coal market. For detailed financial tables and further information, please refer to the full 8-K filing.

Explore the complete 8-K earnings release (here) from Alpha Metallurgical Resources Inc for further details.