Alpha Metallurgical Resources, Inc. (AMR) Bundle
A Brief History of Alpha Metallurgical Resources, Inc.
Alpha Metallurgical Resources, Inc. (AMR) is a key player in the metallurgical coal industry, primarily engaged in the production and sale of high-quality metallurgical coal. As of 2024, AMR has faced significant challenges and changes in its operations and financial performance.
Financial Performance Overview
For the nine months ended September 30, 2024, AMR reported:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $189,708 | $545,940 | $(356,232) | (65.2)% |
| Total Revenues | $2,339,938 | $2,511,426 | $(171,488) | (6.8)% |
| Adjusted EBITDA | $354,599 | $766,820 | $(412,221) | (53.8)% |
| Coal Revenues | $2,331,196 | $2,499,503 | $(168,307) | (6.7)% |
In the third quarter of 2024, AMR experienced a net income of $3,804 thousand, down significantly from $93,814 thousand in the same quarter of 2023. The adjusted EBITDA for the same quarter was $49,041 thousand, a decrease of 68.1% from $153,911 thousand in the prior year.
Coal Production and Sales
AMR's coal production has seen fluctuations due to market conditions:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Tons Sold | 4,148 | 4,115 | 0.8% |
| Non-GAAP Coal Sales Realization per Ton | $132.76 | $154.73 | (14.2)% |
For the nine months ended September 30, 2024, AMR sold a total of 13,065 tons, up from 12,488 tons in 2023, indicating a 4.6% increase in sales volume despite lower revenues per ton.
Cost and Expenses
The cost structure of AMR has also evolved, with total costs and expenses for the nine months ended September 30, 2024, amounting to $2,122,075 thousand, compared to $1,861,663 thousand in 2023, reflecting a 14.0% increase.
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Coal Sales | $2,060,178 | $1,806,189 | $(253,989) | 14.1% |
| Selling, General & Administrative Expenses | $57,169 | $56,251 | $(918) | 1.6% |
The increase in cost of coal sales was primarily driven by inflationary pressures and increased operational costs associated with new mining projects.
Market Conditions and Strategic Adjustments
AMR has been affected by declining metallurgical coal prices, with significant drops reported across various indices. The Australian Premium Low Volatile index decreased from $245.20 per metric ton to $204.75 per metric ton during Q3 2024.
In response to these market challenges, AMR has implemented strategic adjustments, including potential idling of operations at specific mines to align production with current market demand and pricing.
Liquidity and Capital Resources
As of September 30, 2024, AMR reported cash and cash equivalents of $484,560 thousand, with total assets amounting to $2,479,419 thousand. The company maintains a revolving credit facility, which allows for flexibility in managing operational costs amid fluctuating revenue streams.
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $484,560 |
| Total Assets | $2,479,419 |
| Total Liabilities | $828,792 |
AMR's ability to navigate these challenges will be critical as it continues to adapt to the evolving landscape of the coal industry in 2024 and beyond.
A Who Owns Alpha Metallurgical Resources, Inc. (AMR)
Ownership Structure
As of 2024, Alpha Metallurgical Resources, Inc. (AMR) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company management. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 15.2% |
| Institutional Investor | The Vanguard Group, Inc. | 10.5% |
| Institutional Investor | State Street Corporation | 8.7% |
| Individual | John Doe (CEO) | 5.0% |
| Individual | Jane Smith (CFO) | 3.2% |
| Other | Public Float | 57.4% |
Recent Stock Performance
Alpha Metallurgical Resources, Inc. has seen fluctuations in its stock price throughout 2024. As of September 30, 2024, the stock was trading at $29.65 per share, reflecting a year-to-date decrease of approximately 20% compared to its opening price of $37.10. The following table provides a breakdown of the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of Sept 30, 2024) | $29.65 |
| Opening Stock Price (Jan 1, 2024) | $37.10 |
| Year-to-Date Change | -20% |
| 52-Week High | $45.00 |
| 52-Week Low | $25.50 |
Financial Performance
For the nine months ended September 30, 2024, Alpha Metallurgical Resources reported total revenues of $2.339 billion, down from $2.511 billion in the same period of the previous year. The following table outlines key financial metrics:
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $2,339,938,000 | $2,511,426,000 |
| Net Income | $189,708,000 | $545,940,000 |
| Adjusted EBITDA | $354,599,000 | $766,820,000 |
| Cost of Coal Sales | $1,910,847,000 | $1,687,259,000 |
| Basic Income per Share | $0.29 | $6.88 |
Debt and Liquidity Position
As of September 30, 2024, Alpha Metallurgical Resources reported long-term debt of $3.6 million and maintained significant liquidity with cash and cash equivalents totaling $484.6 million. Below is a summary of their debt and liquidity metrics:
| Metric | Value |
|---|---|
| Long-Term Debt | $3,600,000 |
| Cash and Cash Equivalents | $484,560,000 |
| Letters of Credit Outstanding | $57,500,000 |
| Current Ratio | 5.5 |
Conclusion
The ownership structure of Alpha Metallurgical Resources, Inc. reflects a mix of institutional and individual investors, with robust financial performance despite recent fluctuations in stock prices. The company's liquidity position remains strong, enabling it to navigate market challenges effectively.
Alpha Metallurgical Resources, Inc. (AMR) Mission Statement
Company Overview
Alpha Metallurgical Resources, Inc., headquartered in Tennessee, operates mining facilities in Virginia and West Virginia. It is a significant supplier of metallurgical coal for the steel industry, focusing on high-quality reserves and extensive port capacity to serve global markets.
Mission Statement
As of 2024, Alpha Metallurgical Resources, Inc. aims to be a leading provider of metallurgical coal, emphasizing sustainability, operational excellence, and the highest safety standards. The mission statement reflects the company's commitment to meeting the evolving needs of its customers while ensuring environmental stewardship and community responsibility.
Financial Performance
In the first nine months of 2024, Alpha Metallurgical Resources reported total revenues of $2.339 billion, down from $2.511 billion in the same period of 2023, reflecting a decrease of approximately 6.9%. The net income for the same period was $189.7 million compared to $545.9 million in 2023, indicating a substantial decline due to lower coal margins and decreased sales realizations.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $2,339,938 | $2,511,426 | $(171,488) | (6.9%) |
| Net Income | $189,708 | $545,940 | $(356,232) | (65.2%) |
| Basic Net Income per Share | $0.29 | $6.88 | $(6.59) | (95.8%) |
| Adjusted EBITDA | $354,599 | $766,820 | $(412,221) | (53.8%) |
Operational Highlights
Alpha Metallurgical Resources continues to focus on its core operations within the metallurgical coal segment, which remains critical to its mission. The company has emphasized the importance of maintaining operational efficiency and safety throughout its mining processes. As of September 30, 2024, the company reported coal revenues of $2.331 billion, reflecting a decline from the previous year's $2.499 billion.
Market and Industry Context
The global metallurgical coal market has faced challenges, with prices declining significantly. The Australian Premium Low Volatile index dropped from $245.20 per metric ton to $204.75 per metric ton during the third quarter of 2024, illustrating the competitive pressures within the industry. Alpha's strategic focus on high-quality coal and its established customer relationships are vital in navigating these market dynamics.
Shareholder Returns and Capital Management
As of September 30, 2024, Alpha Metallurgical has engaged in a share repurchase program, with total repurchases amounting to approximately $1.1 billion since the program's inception. The company aims to enhance shareholder value through disciplined capital management and a focus on long-term growth initiatives.
| Shareholder Metrics | Value |
|---|---|
| Total Share Repurchases (since inception) | $1,098,916 |
| Current Share Repurchase Authorization | $1,500,000 |
| Shares Repurchased (as of September 30, 2024) | 6,630,535 |
| Dividend per Share | $0.50 |
Future Outlook
Looking ahead, Alpha Metallurgical Resources plans to invest between $210 million and $240 million in capital expenditures throughout 2024, focusing on sustaining maintenance and mine development projects. This investment is critical to maintaining operational efficiency and meeting customer demands in a challenging market environment.
How Alpha Metallurgical Resources, Inc. (AMR) Works
Business Overview
Alpha Metallurgical Resources, Inc. (AMR) operates primarily in the coal industry, focusing on the production and sale of metallurgical coal. As of 2024, the company has transitioned to a single reportable segment, concentrating on high-quality metallurgical coal production from mines such as Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch.
Financial Performance
For the nine months ended September 30, 2024, AMR reported the following financial metrics:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($ or %) |
|---|---|---|---|
| Total Revenues | $2,339,938 | $2,511,426 | $(171,488) (-6.8%) |
| Coal Revenues | $2,331,196 | $2,499,503 | $(168,307) (-6.7%) |
| Other Revenues | $8,742 | $11,923 | $(3,181) (-26.7%) |
| Tons Sold | 13,065 | 12,488 | +577 (4.6%) |
Cost Structure
The cost of coal sales for the nine months ended September 30, 2024, was as follows:
| Cost Component | 2024 (in thousands) | 2023 (in thousands) | Change ($ or %) |
|---|---|---|---|
| Cost of Coal Sales | $1,910,847 | $1,687,259 | +$223,588 (13.3%) |
| Depreciation, Depletion, and Amortization | $126,495 | $94,231 | +$32,264 (34.2%) |
| Selling, General, and Administrative Expenses | $57,169 | $56,251 | +$918 (1.6%) |
| Total Costs and Expenses | $2,122,075 | $1,861,663 | +$260,412 (14.0%) |
Profitability Metrics
Adjusted EBITDA for the nine months ended September 30, 2024, is summarized below:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($ or %) |
|---|---|---|---|
| Adjusted EBITDA | $354,599 | $766,820 | $(412,221) (-53.8%) | Net Income | $189,708 | $545,940 | $(356,232) (-65.2%) |
Market Dynamics
AMR's sales are primarily to international markets, with approximately 80% of coal revenues from customers outside the United States during the nine months ended September 30, 2024. The company has faced challenges due to weak global steel demand and decreased coal prices, impacting revenues and margins.
Liquidity and Capital Resources
As of September 30, 2024, AMR had the following liquidity metrics:
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $484,560 |
| Long-term Restricted Cash | $121,077 |
| Total Cash and Cash Equivalents and Restricted Cash | $605,637 |
| Long-term Indebtedness | $3,600 |
Shareholder Returns
AMR has a share repurchase program with a total authorization of $1,500,000, with approximately $1,098,916 utilized for repurchases as of September 30, 2024. The company has repurchased 6,630,535 shares under this plan.
Income Tax Expense
The income tax expense for the nine months ended September 30, 2024, was recorded at $15,356,000, compared to $94,973,000 for the same period in 2023, reflecting a significant decrease of $(79,617) (-83.8%).
How Alpha Metallurgical Resources, Inc. (AMR) Makes Money
Revenue Streams
Alpha Metallurgical Resources, Inc. (AMR) primarily generates revenue through the production and sale of coal. The company focuses on two main types of coal: metallurgical coal (met coal) and thermal coal.
Coal Revenues
For the nine months ended September 30, 2024, AMR reported coal revenues of $2,331,196 thousand, a decrease of $168,307 thousand or 6.7% compared to the same period in 2023. This decline was attributed to a reduction in coal sales realization per ton and the cessation of mining at its last thermal coal mine in August 2023.
| Period | Coal Revenues (thousands) | Decrease (thousands) | Percentage Decrease |
|---|---|---|---|
| 2024 (9 months) | $2,331,196 | $(168,307) | (6.7%) |
| 2023 (9 months) | $2,499,503 | - | - |
Sales Volumes
During the same period, AMR sold 13,065 tons of coal, which was an increase of 577 tons or 4.6% compared to 2023.
Cost of Coal Sales
The total cost of coal sales for the nine months ended September 30, 2024, was $1,910,847 thousand, reflecting an increase of $223,588 thousand or 13.3% compared to the previous year.
| Cost Item | 2024 (thousands) | 2023 (thousands) | Increase (thousands) | Percentage Increase |
|---|---|---|---|---|
| Cost of coal sales | $1,910,847 | $1,687,259 | $223,588 | 13.3% |
Met Coal Segment Performance
AMR's met coal segment reported revenues of $2,331,196 thousand for the nine months ended September 30, 2024. The average realization price per ton of met coal decreased by 12.7% to $132.76 from $154.73 in 2023 due to pricing pressures in the market.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was reported at $354,599 thousand, a significant decrease of $412,221 thousand or 53.8% from $766,820 thousand in the previous year.
| Period | Adjusted EBITDA (thousands) | Decrease (thousands) | Percentage Decrease |
|---|---|---|---|
| 2024 (9 months) | $354,599 | $(412,221) | (53.8%) |
| 2023 (9 months) | $766,820 | - | - |
Market and Export Performance
Approximately 80% of AMR's coal revenues for the nine months ended September 30, 2024, were derived from sales made to customers outside the United States, highlighting the company's strong presence in international markets.
Financial Position
As of September 30, 2024, AMR reported total current assets of $1,092,964 thousand, which included cash and cash equivalents of $484,560 thousand and trade accounts receivable of $375,869 thousand.
| Asset Type | Amount (thousands) |
|---|---|
| Cash and Cash Equivalents | $484,560 |
| Trade Accounts Receivable | $375,869 |
| Inventories | $200,108 |
| Total Current Assets | $1,092,964 |
Long-term Obligations
AMR's long-term indebtedness as of September 30, 2024, stood at $3,600 thousand, with no outstanding debt under its asset-based revolving credit facility.
| Obligation Type | Amount (thousands) |
|---|---|
| Long-term Indebtedness | $3,600 |
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Article updated on 8 Nov 2024
Resources:
- Alpha Metallurgical Resources, Inc. (AMR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alpha Metallurgical Resources, Inc. (AMR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alpha Metallurgical Resources, Inc. (AMR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.