Warrior Met Coal, Inc. (HCC) Bundle
A Brief History of Warrior Met Coal, Inc.
Warrior Met Coal, Inc. is a U.S.-based supplier to the global steel industry, primarily engaged in the mining of non-thermal metallurgical coal. The company operates underground mines in Alabama, known for producing premium quality hard-coking coal (HCC) with low sulfur content and strong coking properties. As of 2024, Warrior Met Coal continues to be a significant player in the coal market, with a focus on environmentally and socially responsible mining practices.
Financial Performance Overview
For the nine months ended September 30, 2024, Warrior Met Coal reported sales of $1,208.4 million, a decrease from $1,288.4 million in the same period of 2023, representing a 6.2% decline. The decrease was primarily attributed to a drop in the average net selling price per metric ton of steelmaking coal, which fell from $237.32 in 2023 to $218.79 in 2024.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Sales | $1,208.4 million | $1,288.4 million |
| Average net selling price per metric ton | $218.79 | $237.32 |
| Net income | $249.5 million | $349.8 million |
| Cost of sales | $778.5 million | $723.5 million |
| Adjusted EBITDA | $394.6 million | $535.2 million |
Production and Sales Volumes
In terms of production, Warrior Met Coal produced 5.6 million metric tons of steelmaking coal for the nine months ended September 30, 2024, up from 5.1 million metric tons in the prior year, marking an 8% increase. The metric tons sold also increased slightly, from 5.4 million in 2023 to 5.5 million in 2024.
| Production Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Metric tons produced | 5.570 million | 5.149 million |
| Metric tons sold | 5.523 million | 5.429 million |
Cost Structure and Expenses
Warrior Met Coal's cost of sales for the nine months ended September 30, 2024, was $778.5 million, representing 63.4% of total revenues, compared to $723.5 million or 55.1% in 2023. The increase in costs has been driven by higher labor and supply costs, as well as increased transportation expenses.
| Cost Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cost of sales | $778.5 million | $723.5 million |
| Selling, general and administrative expenses | $45.5 million | $38.8 million |
| Depreciation and depletion expenses | $114.8 million | $101.8 million |
Market Position and Strategic Direction
Warrior Met Coal remains focused on serving international steel producers, with a geographic customer mix predominantly in Asia (43%), Europe (39%), and South America (17%). The company has been proactive in addressing market challenges, including inflationary pressures affecting operational costs, which have increased between 25% to 35% in various categories such as labor and materials.
Overall, Warrior Met Coal continues to adapt to market dynamics while maintaining its commitment to high-quality production and responsible mining practices.
A Who Owns Warrior Met Coal, Inc. (HCC)
Shareholder Composition
As of 2024, Warrior Met Coal, Inc. (HCC) has a diversified ownership structure comprising institutional investors, retail shareholders, and insiders. The largest shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares Owned | Notable Shareholders |
|---|---|---|---|
| Institutional Investors | 72.4% | 37,887,000 | BlackRock, Vanguard Group |
| Insiders | 5.8% | 3,058,000 | Management and Board Members |
| Retail Investors | 21.8% | 11,600,000 | Public Shareholders |
Major Institutional Shareholders
The following table lists the top institutional investors in Warrior Met Coal, Inc. as of 2024:
| Institution | Ownership Percentage | Shares Held |
|---|---|---|
| BlackRock, Inc. | 15.1% | 7,900,000 |
| The Vanguard Group, Inc. | 12.3% | 6,400,000 |
| State Street Corporation | 8.7% | 4,500,000 |
| Invesco Ltd. | 5.4% | 2,800,000 |
| Wellington Management Company, LLP | 4.3% | 2,300,000 |
Insider Ownership
Insider ownership remains a significant aspect of Warrior Met Coal’s equity structure. The management team and board members hold approximately 5.8% of the total shares outstanding. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Walter J. Scheller III | CEO | 1,200,000 |
| David J. S. Hunn | CFO | 500,000 |
| Board Members | Various | 1,358,000 |
Stock Performance and Market Capitalization
As of the end of September 2024, Warrior Met Coal, Inc. has shown variable stock performance:
| Metric | Value |
|---|---|
| Stock Price (as of September 30, 2024) | $34.50 |
| Market Capitalization | $1.8 billion |
| 52-week High | $42.75 |
| 52-week Low | $29.50 |
Dividend Information
Warrior Met Coal, Inc. has a history of paying dividends to its shareholders. The following table summarizes the recent dividend activity:
| Dividend Type | Amount per Share | Declaration Date | Payment Date |
|---|---|---|---|
| Regular Quarterly Dividend | $0.08 | October 25, 2024 | November 12, 2024 |
| Special Dividend | $0.50 | February 9, 2024 | March 7, 2024 |
Conclusion on Ownership Dynamics
The ownership structure of Warrior Met Coal, Inc. reflects a strong presence of institutional investors, which contributes to the stability of the company’s stock. The insider holdings indicate confidence from management in the company's future performance, while the dividend policy signifies a commitment to returning value to shareholders.
Warrior Met Coal, Inc. (HCC) Mission Statement
The mission of Warrior Met Coal, Inc. is to be a leading supplier of high-quality metallurgical coal to the global steel industry, committed to sustainable practices and community engagement. The company focuses on delivering superior value to its stakeholders through operational excellence, innovation, and a dedication to safety and environmental stewardship.
Financial Overview
For the three months ending September 30, 2024, Warrior Met Coal reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales | $319.9 million | $416.9 million |
| Net Income | $41.8 million | $85.4 million |
| Average Net Selling Price per Metric Ton | $189.54 | $203.56 |
| Metric Tons Sold | 1,688,000 | 2,048,000 |
| Cash Cost of Sales per Metric Ton | $136.10 | $126.36 |
| Cost of Sales | $231.6 million | $260.4 million |
Customer Distribution
For the same period, the geographic distribution of sales was as follows:
| Region | Percentage of Total Sales |
|---|---|
| Europe | 44% |
| Asia | 41% |
| South America | 15% |
| United States | 1% |
Production Metrics
In terms of production for the nine months ending September 30, 2024:
| Metric | 2024 | 2023 |
|---|---|---|
| Metric Tons Produced | 5,570,000 | 5,149,000 |
| Average Net Selling Price per Metric Ton | $218.79 | $237.32 | Cash Cost of Sales per Metric Ton | $140.07 | $132.49 |
Key Financial Data
Warrior Met Coal's key financial data for the nine months ended September 30, 2024, includes:
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenues | $1,227.8 million | $1,312.8 million |
| Net Income | $249.5 million | $349.8 million |
| Operating Income | $259.1 million | $407.9 million |
| Interest Expense | $3.5 million | $16.3 million |
| Depreciation and Depletion | $114.8 million | $101.8 million |
Capital Expenditures
For the nine months ending September 30, 2024, Warrior Met Coal incurred capital expenditures of:
| Type | Amount (in millions) |
|---|---|
| Mining | $78.9 |
| All Other | $247.6 |
| Total | $326.5 |
Dividends
As of September 30, 2024, Warrior Met Coal declared dividends of:
| Type | Dividend per Share | Dividends Paid (in millions) |
|---|---|---|
| Common Stock | $0.08 | $40.5 |
Future Projections
Warrior Met Coal plans to increase production significantly in the coming years with the development of the Blue Creek mine, expecting:
| Year | Projected Production (metric tons) |
|---|---|
| 2024 | 200,000 |
| 2025 | 900,000 |
| 2026 | 2,700,000 |
| 2027 | 4,400,000 |
The company is focused on operational excellence, innovation, and sustainability to achieve its mission and enhance stakeholder value.
How Warrior Met Coal, Inc. (HCC) Works
Company Overview
Warrior Met Coal, Inc. is a U.S.-based supplier of metallurgical coal, primarily used in steel production. The company operates two primary mines in Alabama: Mine No. 4 and Mine No. 7. As of December 31, 2023, these mines held approximately 82.9 million metric tons of recoverable reserves, with an additional 67.6 million metric tons located at the undeveloped Blue Creek mine.
Production and Sales Metrics
For the nine months ended September 30, 2024, Warrior Met produced 5.6 million metric tons of steelmaking coal, an 8% increase from 5.1 million metric tons during the same period in 2023. The total sales for this period amounted to $1,208.4 million, down from $1,288.4 million in 2023, reflecting a 6.2% decline.
| Metric | 2024 | 2023 |
|---|---|---|
| Metric tons sold | 5,523,000 | 5,429,000 |
| Metric tons produced | 5,570,000 | 5,149,000 |
| Average net selling price per metric ton | $218.79 | $237.32 |
| Cash cost of sales per metric ton | $140.07 | $132.49 |
Financial Performance
For the third quarter of 2024, Warrior Met reported sales of $319.9 million, a decrease from $416.9 million in the same quarter of 2023. The decline was primarily driven by a 17.6% decrease in sales volume, which fell by 0.4 million metric tons.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues | $327.7 million | $423.5 million |
| Cost of Sales | $231.6 million | $260.4 million |
| Net Income | $41.8 million | $85.4 million |
| Basic Earnings per Share | $0.80 | $1.64 |
Cost Structure
The cost of sales for the nine months ended September 30, 2024, was $778.5 million, representing 63.4% of total revenues. This was an increase from $723.5 million, or 55.1% of total revenues in 2023.
| Cost Breakdown | 2024 | 2023 |
|---|---|---|
| Cost of Sales | $778.5 million | $723.5 million |
| Depreciation and Depletion | $114.8 million | $101.8 million |
| Selling, General and Administrative Expenses | $45.5 million | $38.8 million |
| Business Interruption Expenses | $0.4 million | $8.1 million |
Market Dynamics
The geographic distribution of sales for the nine months ended September 30, 2024, comprised 43% in Asia, 39% in Europe, 17% in South America, and 1% in the United States. The demand for steelmaking coal is closely tied to the global steel industry's performance, which has been experiencing fluctuations due to economic conditions and technological advancements.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities was $313.2 million, a decrease from $456.0 million in 2023. The decrease in cash flow is attributed to reduced sales and increased operational costs.
| Cash Flow Metrics | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $313.2 million | $456.0 million |
| Cash and Cash Equivalents at End of Period | $583.2 million | $686.8 million |
| Total Assets | $2.58 billion | $2.36 billion |
Conclusion of Financial Metrics
Warrior Met Coal continues to navigate a challenging market landscape with strategic adjustments in production and sales. The company's focus on maintaining operational efficiency while managing costs is crucial as it adapts to evolving market conditions.
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Production Metrics
For the nine months ended September 30, 2024, Warrior Met Coal produced 5.6 million metric tons of steelmaking coal, an 8% increase compared to the same period in 2023. The breakdown of production metrics is as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Metric Tons Sold (in thousands) | 5,523 | 5,429 |
| Metric Tons Produced (in thousands) | 5,570 | 5,149 |
| Average Net Selling Price per Metric Ton ($) | 218.79 | 237.32 |
| Cash Cost of Sales per Metric Ton ($) | 140.07 | 132.49 |
Geographic Distribution of Sales
The geographic distribution of sales for the nine months ended September 30, 2024, was as follows:
| Region | % of Sales |
|---|---|
| Asia | 43% |
| Europe | 39% |
| South America | 17% |
| United States | 1% |
Financial Performance Overview
For the nine months ended September 30, 2024, Warrior Met Coal reported the following financial results:
| Financial Metric | Amount ($ in millions) |
|---|---|
| Net Income | 249.5 |
| Operating Income | 259.1 |
| Adjusted EBITDA | 394.6 |
Cost Management and Challenges
Warrior Met Coal faced increased costs primarily due to inflation, with significant rises in labor, construction materials, and supply chain costs. The cash cost of sales per metric ton increased to $140.07 for the nine months ended September 30, 2024, from $132.49 in the previous year.
Outlook
The outlook for Warrior Met Coal remains contingent on the global steelmaking industry, demand for steelmaking coal, and market conditions affecting pricing and sales volumes.
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Article updated on 8 Nov 2024
Resources:
- Warrior Met Coal, Inc. (HCC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Warrior Met Coal, Inc. (HCC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Warrior Met Coal, Inc. (HCC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.