Arch Resources (ARCH) 25 Jul 242024 Q2 Earnings call transcript

Good morning, and welcome to the Arch Resources, Inc.

Second Quarter 2024 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Deck Slone. Please go ahead.

St. from morning Good for today. thanks joining and us Louis,

be Before statements statements made let Securities me Litigation performance, relating the according that certain remind you may financial during and our Reform future we forward-looking Private expected statements to begin, to business considered this Act. call, including

our reports address SEC, that are detail more described to by future that file degrees, the different actual quarterly with we statements cause be our Forward-looking from matters uncertain. to their may in expressed annual nature those are forward-looking materially These which results and uncertainties, statements. different in

We the archrsc.com. to our the information, forward-looking to to a statements, future section over be release, copy remind of our the Investors can find you do law. of may whether new otherwise, update at end or of by of as that happy non-GAAP to Drexler, plan except you call result our not we participating undertake this Paul With formal reconciliation website Also our I'll our Lang, will financial that, Matt our we'll measures CEO; remarks, events of earnings be which CFO. discuss and a to like as the morning questions. also turn Giljum, our this press required we a John be on have posted take President; now in After Paul. at call I'd

for Arch creation morning. hearing pleased continues We quarter, value with you on everyone. good to are during this Deck, Thanks, join growth. consistent clear morning, and forward that drive the to that I'm appreciate us plan our I'm Arch and long-term the to call report second glad you

coal driving million $XX tragic quarterly Leer $XX the more debt, with adjusted the favorable X of of Key while ended, tons us from setting second quarter federations. stemming these coking net we the set our the our generation significant in development incremental expect our South, logistical a operating logical million of Francis cash core in rightsize despite a challenges record down back the just an During and for segment operations half where position of longwall substantially EBITDA the in production district, ahead achieved stage of of the team activities the Scott segment, giving thermal to positive of the collapse at $XXX million Bridge, year. paid cash million,

total $XX.X logistical we the market even In program addition, a challenge million we discussed returned return within repurchase $X.X investment quarter, deployed incremental a the of this have shares a XX,XXX our payment quarterly with and cash share second through just the and subdued dividend particular that payable an capital face per the during million note, capital of in We near-term an an with September common of to shareholders. declaration stock in a in million environment. $X.XX $XX additional of of of projected

share repurchases, XXXX. our more generation in included This our February value payments brief of retirement million million than when we've aggregate, of worth or the since we've to and X.X a now a common QX billion over the compared shares in by $X.X including as May in to convertible $XX.XX well that, program repurchase stock over the $XXX reduced count relatively we its $XXX out or dividend now relaunch agree deployed of repurchase level in as of substantial amount time. represents hope capital pointing diluted in well million XXXX, per total In return share and which well the notes. It's of XX% period our

[indiscernible]. driving on we that Looking share value focused count ahead, remain sharply

We with a believe of the that you flow past, share As do repurchases. company's discretionary cash to in we value shareholders has continue to emphasis the tenet them the fully value XXX% expect return framework for and for our to this to know, created shareholders substantial central on future. so is the our proposition strong in

Let's coal before comments over for during call brief on the coking steel our operating markets to on to John now and turning the some switch performance QX. additional commentary

As coking demand market and our a we to remains principally related global estimation speckled are in through now through weak seaborne aware, China. infrastructure challenging part environment macroeconomic property coal in spending

valuation a nonetheless, but have to These factors India in climb erosion the of quarters global and consequential steel in the of evidenced predictable, from demand steel slow on monsoon coalesced recent season prices. lay economics The in multiple out as by effects work.

prices approximately in the peak coal down seen rolled regions major XX% XXXX. versus are steel-producing Our in

European this, of steel coking XX% to up with The markets around under blast estimates. according on furnaces of average market part are factor effect standing had our predict has global to weakness coal the pressure knock As on markets. steel capacity

customer at pressures, in Even however, products, Arch's high-quality Asia, interest with drive. these coking continues to coal particularly

requirements, strong, coal coking coking their expansion and the for in sources for identifying new the of to consistent themselves appear because their steelmakers investment supplies. focused plans Asian long-lived on given buffer order lack coal own increasingly long-term

we accurate, supply mine removed in new for that of have major months, base and ample the a expect depletion chain. coal story fit global continue coking that persist. predictable have base production our of minings to assuming coking time, outages Given of global X% replacement mine inquiries we a a over supply remains the opportunity the modest investment Moreover, a to the and current over achieve with strategic on to our cost Meanwhile, resource build increasingly only customer market that to we'll represents new, assets. growing global coal reflecting number such customer seaborne side coal degradation We believe basis. good last of the take strong supply the prices X% production suppliers, Asian marginal capacity. Recent and on are on the below the couple prices with of emphasis high an fragile

various strengthen and starts of to begins demand global expect steel reassure markets once themselves. these global result a coal the factors, balance to coking company seaborne quickly we As to

ahead, value-generating our on capital soft strong execution operating with environment. Looking for platforms stockholders, driving focused very supporting sharply remain even continuous market its returns across we entire improvement our

With products exceptionally presence coal positioned John? we to returns our to anticipated John our growth. With on Asian and coking operational are steel QX. in sustainability turn performance upward portfolio, further spend I'll believe markets in call we and high-quality rate capitalize leadership, for the as in discussion then with to recognize well stabilizes cost-competitive over rapid demand global its that,

Thanks, and everyone. Paul, morning, good

discussed, than the the forced Arch as just seaborne manner volumes tons in coking to an the disruption chain extreme coal, team all even million Arch challenging great were Paul that direct logistics As already virtually of I excellent in to effective navigated team to we shipping more X through our support logistics during providers an busy that and extend want and appreciation to our work, DTA during to also for and to commend May. wanted I other time. our their April for the rail QX,

would had we East representing tons due also XXX,XXX terminals. into I additional than that that the busy schedule QX Coast slipped X out point at to just more June extremely both vessels, shipping the

bond. QX, half vessels we a While that start jump more year's those when loadings moving July back substantially provide disappointed fell the those out of early anticipate to we were

the operating year that phase progress. overall deliver logistics we million guidance as full of momentum, million can the are achieve necessary X.X further is [indiscernible] of strong on QX step-up confident the tons. chain our performance our we well our between and in operational Given Bolstering to the positive X sales of confidence as continuing

producing during team indicated, for a the metallurgical QX, performance As delivered more time. record tons total in first Paul X.X million than the

the progressed X and even in in in X there for October. late South is strong Leer early in Just the as as District final September advanced or District important, into prepares panel mine achieving rates transition the early July

overall will our data mining you X XX% should As more and in the in production which periods. XX% advantageous, that shows drive that levels profile a coal in is thicker District recall, step-up seam future to the

Now, the few due segment's challenging margins, a compressed QX on environment. in which were the operating to logistical let's spend metallurgical minutes

vessel acted sale in accretion. QX retimed rail movements, related lower estimated midstreaming to in average than In logistical to impact greater of netback disruptions fees had vessel $XX which, total, an demurrage, aggregate, activities, our million and increased

also also we were also costs we than shipments High-Vol a As B QX, to had ratable of QX segment's coal. higher may possible due to directed actively be that dampened as which loading the logistical an difficult cash worth metallurgical during noting it pressured average during percentage aside, stock the coking The net. environment every

byproducts of XXX,XXX nearly result, of thermal the the tons As quarter. we during shipment a deferred

reduced Given costs value to by inventory segment's per that ton. is shipping the an $X estimated schedule this thermal the immaterial, unit Metallurgical served byproduct product increase the for

half. in reverse expect We second costs to these the unit year's

segment Basin in in thermal performance We contribution of by outlook That an expecting an stronger year's are expectation appreciably operations driven and from is end. the our principally from also back Powder River QX. the the improving QX positive

As recall, entered you to rate tons. annual we at XXXX production of an million XX close will

expectation X or sales. Based incremental million to and that related tons million the tons estimated we ship volumes an of would our on intra-year XX so

demand, for ]. gas prices with activity coupled virtually power [ grow while muted Unfortunately, depressed different of all natural influx roles requests an spurring new buying

build and that year during quarters. On excess As inventory pit in note, a in first a months result, in QX stripping year's a first spent a realigning positive rates month. the activities more operating stripping of our the shipping half significant much we X resulted PRB completed reduced and with the QX the in we

a pit and production is post the cost. overburden, the in you the of the most step removal share is the inventory aware, are lion's of that constitutes As pit formed sitting of still

Consequently, the incurred. has our will these ship margins per-ton of operating tons, a since when impact been cash already they cost positive do on have most

tons on of much twice do. X inventory are more typically as Wyoming, than We is we sitting as would which million in currently pit

again allow even efficiently During to balance. Meanwhile, expect dampened inventory this contracts some half, monetize us under the that legacy pit back exceed generated which solid West as EBITDA, ship to it netback. adjusted several Elk will year we and operated production, to of continued shipments

outlook West Elk compelling. importantly, remains at the More longer-term

is team At in outer of West the $XX are ton excess leasing to of the a same step in quality per $XX the QX, cash is time the West the of transitions for markedly ahead fixed market the expiring. legacy During change Elk's development mine drive time, in should the marketing Those factors business the $XX at the thicker, better, build continued piece, translate into to prices the goal years per book in Elk out continued once with mid-XXXX. first to the lower. contracts ton, across of industrial that aggregate above should cost longwall range where the be in wide and substantially profitability significantly a conditions

Matt, discussing spend few to the and of let's achievements baton the a exemplary passing REIT. minutes Before team's the sustainability

culture of is essential and our a that As business. believe know, safety environmental you success of we firmly for long-term stewardship

the first more employee an half Xx operations of rate XXXX, for X.XX time hours app. incident subsidiary lost of than the better or than During industry Arch's achieved aggregate XXX,XXX total incidents

On West the Mining Excellence operations. subsidiary zero Further in Excellence Elk company the In X safety environmental Safety in Award, in of front, an state Colorado Innovative violations across of exceedances an Safety the Technology a QX the mine an SMCRA was honored a under the result, with Reclamation Coal Outstanding surface our as growth, recognized Creek water as Award. State Wyoming Award, award. excellent quality and well all as highlighting team's environmental recorded

their for once On I excellence deep for want and potential team, management to entire Board the performance. of the workforce to commitment again areas senior of the commend the behalf

Matt color With results. on some Matt? turn now our that, to call for I financial over the will additional

John, Thanks, and morning, good everyone.

flow in in a by begin impacted was cash Capital much of which bridge the have discussion Baltimore cash than to second of resulted totaled liquidity. have pivot flow light Operating of build. and the $XX QX, to it collapse $XX was in and ability the with a In would Let's likelihood on $XX for spending million, $XX quarter quarter anticipated totaled of capital cash April, significant in in increase smaller working working we discussed alternative increase discretionary the capital million. impact negatively a a quickly tons, million flows and quarter the methods with shipment tragic million. the shipping

short-term total June quarter, and net $XXX of levels to million. cash Turning million cash reduced We during with position of a $XX of million $XXX debt sheet. the with the $XXX and balance We June $XXX debt liquidity ending ended million, of by million. investments

return program. capital Turning now the to

As Paul the the and program detailed, the we quarter remain active market in logistical soft despite challenging in environment. second

anticipate stockholders in share, year, the has for repurchases fixed segments detail $X.XX XX. would of cash our per XX record to quarter I'll of shortly, and vehicle Our we flows QX, supported increased primary back significant is the those support variable expect our for QX not with September dividend, declared half on of discuss to returns in of we flows on be expectation will payable more dividend a Board and more guidance in the in volumes the share the to returns. cash August

Next, tax visionary investment the to received spend expanding Virginia a West the quarter. I minutes Rebate bring legislation from of on stems severance the encourage want the in levels in few we rebate to from that the most coal-related state and employment. State

has forward highly parts. recall, [indiscernible]. of that to decision our ultimate now in an to created legislation legislation million to incentives proved the and We're the important state that build-out As consideration both the you may beneficial move pleased were the in report with $XXX

coal the of have we decades. of we side mine operations operation, coking that remain for art the our a expect world-class to new On set-piece

For higher indirect and jobs, and tax as incremental has translated tax into substantial revenues. direct of local well a of well-paying receipts host severance number investment that XXX the other state, state as jobs a significantly

The long of production, tax a period. law, of employment process coal to demonstrating in the remain that documenting increases and the from payments in not benefits the investments under also quarter the in of only baseline the state a severance and result the remainder was second refining

host although in future Looking of dynamics. ahead, by market to we timing for expect extent of the potential factors, will additional and be qualify driven rebates including future, a recoveries those the

some guidance guidance taking for the volumes gas funds. our year. comments In segment, for our rest maintained with Finally, have on sales the we my the remarks conclude of full I'll Metallurgical year and about

tons. particularly year While were the the shipments volumes than million for in less the annual than and X more [indiscernible], in in first of of pace May June April, half were

by QX rebate benefits and the byproduct cash For severance thermal any our excludes a the of incremental guidance costs, benefit anticipating inventory future our in potential reduction while tax meaningful year-end.

including other Additionally, in $XXX expected to operating representing adjusted year. is now of to in far several we Federal thus midpoint. SG&A the reduction have this weaker $XX is Total reduction the at million of midpoint, both the million million approximately $X at of range with expense, line and items a $XX now be spending million, million. a $XXX cash guidance results noncash the

carryforwards will $XXX in I'll we will any approximately that, several not million to questions. to carry cash in over we you. expect now we Finally, that are pay ready XXXX. With taxes turn back XXXX take and all and totaling Operator, the call

[Operator Instructions]

from comes Our first Riley. Lucas Pipes question from B.

in realization wondered much of first My pieces is a you contribution QX. there's from benefit and the byproduct, were on speak moving not B and then there's few spoke margin but the a side And rebate, I QX. the High-Vol the met then in somewhat question outlook the would $X I to cost anticipate thermal severance higher maybe a assume from front, volume. higher for to the you I There kind on if that could QX, business. on coal

maybe how as lower realization. wondering impact rates as that might So rail well

margins broadly QX. kind So in coking of QX coal versus

basis. exports on go John XX% you I'll I it's of bridge what Lucas, And the significantly reminder, was key the couple metallurgical of on happened under as annual start And and Drexler. quarter Port think our at Baltimore bridge a themes. the a here. of out collapse. an Obviously, that impacted the second hit with

redirect DTA team a talked having So of rail facility impact transport a to margins the did a transportation. result. as us was managing There It the that. component logistics was of of there. longer our We a lot reduced job the of through a fantastic to

job did get a to flow fantastic coal surcharge impacts, working of but rail there's redirected. that the team So

first well. We it we little got creative about where a as on talked opportunity had bit an call We the quarter midstream. well, as to

up, that took way several was that well. an and margins also incremental the coming that openings there process, delayed. some early through there lower load through recovery getting in when advantage charges So also. get merge, draft we as some the you've getting there of some to vessels again, of you've opportunity loaded tied vessels are that bridge are and Again, got Once got them

coming So costs of had all through. we those

reduced So about that. of result as margin $XX million of impact a of

On is have byproduct The we and you well. a as of met cost Typically, it the shipments. typical the production. our that middlings the byproduct. side, segment of thermal forever standard the on produce hit cadence in on project, XX% about It's that's

low. that is our of in indicated we extremely As value product remarks, inventory

So shipments significant as reduced the we a a cost. unit there's from impact of had what result on planned, pretty

as product. back those of though recovered are year we is The half to middling going ship the be the in that opportunity

And confidence record level. segment operationally came We produced for here. at lot so of [indiscernible] met we've the got a a

We District forward, ability achieve shipment with higher to expect we hard but as that South improvement. good our we've more an levels about and In going the those progress then continue can levels and we ongoing feel projected have the we'll confidence very well. X, its work Leer continuing with to and produce

but Deck. just $XX. John Coast Lucas, on expect the down of I we in might incurred it's for that that today reasons pricing pressure all that look, result East Bridge U.S. the glass $X around look, we articulated, of on add, also sort the just QX as netbacks wouldn't a

look at as that for rate well. a XXX the of think the HVA, in lower QX, is was if that I be rail side implies positive that average that might you which around $XX price

of assuming you don't we're up, you sort of now, on those costs net -- additional So again, prices kind pieces hold have raining that we and take they if those right X netbacks. out

right step we are, you that, we see are point also would in now suggest are unit expansion of that think Certainly a So the out, volumes stronger cost. I today. in an should would those where as anticipate certainly add volumes, which fact up lower result we components, margins that important could

maybe a the So pieces details in about on impact your should question, High-Vol B. of asked stronger And deliver the of all those future. one aggregate really you

B, had percent on During are High-Vol the realization, impact Overall, evening when in note on out. modest quarter, QX, It up We that High-Vol typical ends commentary. front. shipment XX% but want on Low-Vol. were to there XX-plus the High-Vol during XX% shipments A, are splits did our XX% QX we B a in the

back viewed. QX standing best But roles. all as sort think for look it in Bridge take reasons I of was because a QX collapse cover. I lot strained outside of this at and seen affected the The

Team I relevant. think reacting, those out were the able outstanding to of tons and all market divert John very what pointed did bringing considering was amazing. an of job do we and

We behind It as revert effective. to the of at I year. still half it's were optimistic should to the is outside most about the was some of we day really, the the were the We're of that's it, the door back all issues, and which moving big we're touched why able I do important very returns. netbacks were probably But capital on this are costs effective, us. look on think the then at and of us. end And

My Elk? West opportunity West is prepared Or entire appreciate on the is export the you West maybe from at forward? of prices comment so detail. to second specifically could going I on the would the tons? wondered, maybe Elk additional is kind And more on that remarks. for mentioned higher And in if good you And that of output number I a question $XX Elk. use

at the the will Yes, great well. sought market at as produces incredibly relatively The I'll place opportunity thermal in thoughts cost, and as Elk well. in a high-quality question. low markets is export it well Charles industrial in some start Lucas, it's a off that after great product West have

an BTU, are we sought As and of successfully -- the low where some after, quality higher the been on transitioning quality so and the to cost, we think top producing product time the line. from have discussing, in see that more we're be BC for to we've coal, we been higher expansion producing where even very will at going improvement

get Elk, we the to As at miner BC additional out have build continuous continue developed. West deployed units we to

as step-up West that, as Elk build unit result -- of out So seen temporary the a a we out. finishing are so costs at we in here we've as

in the to in from to going expect that be long in we're We down see costs. producing the At haul time, mid-XXXX. step a BC

a $XX we So as we $XX at on bit, even basis indicated into still a we're last sit move is year very as below with little forward. realization lower this where product, legacy year West Elk where products and we we EBITDA here to feel carryover from about generating good a but going there today struggled

pricing industrial American And that pertains to business. X look at tons that, million North really about of

in $XX averaging contracts kick increment new that's step-up And seaborne netbacks and above and clearly, But expect step roll that do, American love a really provides averaging that we the so volumes market and West we visibility course, base XX%, where by around It as legacy of the for Elk. contracts obviously, off is where to there great they're trends. on those determined market and significant the seaborne and business of have the a they're be significant of up. sort will additional in North

we mid-XXXX, West substantial down Elk contributor margin really We're get of talking when very about $XX. expansion much costs we So BC, coal XXX greater but could cost into get come and in as becomes period, mid-XXXX certainly to XXXX into $XX into the quality. to much the we cyclical as BC down a you of with into with XXX and in that that step have the progress comes further thicker higher Btus we get a

Elk becoming, increasingly is again. exciting West again, So story an

Chris comes from LaFemina question Jefferies. from Next

to for in Should that be on we the outlook assume about sheet cash highly then of because gone would situation to free negative cash that strategy kind lot. sheet that second that balance the downturn. the some in kind very buybacks? risks But prices is case in -- weakness be scenario, wanted do accumulation be that the strong to the Or we balance ask deploy have because sheet let's the then where a weaker you maintain very prices cash sheet flow Is assume of of a down the of that that Let's for further have fund capital capital is balance would the balance should and macro you strong. to generative. of used that coal cash nasty buybacks? assume flow? obviously on framework. is in the half you're I allocation Just The want mean

you I'm shares. environment, which nice issue just downturn. have. buy cash trying an back understand a I the is your to to a share in in that how like price obviously, But really upturn, use a mean, in in the high, share higher it price is to was aggressively seems problem not strategy

the So in understand downturn. I'm happens trying to what

as Paul. return of Chris, my several XXX% discretionary tenet cash with repurchases our [indiscernible]. this I'll wants split which out and share Conversely, to be. program hasn't been capital should always on say Matt to dividend the is the give we've shareholders. and of changed. program, thoughts times dynamic you start as effectively to the past, returns allocation and I'll said is between in it has flexible This many

imbalanced; ahead, And of cycle, we've stock there's seems hit; you share the commodity Firstly, think -- And piece relatively are be the phase the supportive reasons second, for think market the X prudent makes As our the which we metallurgical segment is current we when ongoing execution I global buy. quarters going a cross a of [ especially the operational as probably coming supply point where in comfort we in third gives lot economic repurchases to the ] argue the we're good side remains this is look of heavier forward: fundamentals, I knowing somewhat on a seen

this expect, taking the more year cash to equity, if would on dynamic. the the That we'd work. be the the was So as for of balance these we we pullback the of Board is We kind of you set is you some last sheet up to reason recall. the did, And of likely on conditions. actually, wanted putting be rate voted

So we've was I we'd our XXbX-X cash be to that robust about also plans levels. reiterate always when said specific place different -- us don't too a built robust what pretty million. to in level to want likely keep to $XXX in cash I balance, we as spend But a want blackouts. that minimum during That allowed equity

you end, So it's in a now. I not as think weight quite the binary

which, more and equity say, I'd a that's we what set I I the cash prevalent very proud occur. down I'm is you the the in goes the of item use if have a think of this to we very downturn a... ourselves as good news up the slow up among market think been goes continuum little down. equity There's for is is of probably But a is do sheet. this but why balance cash the Matt, built excess on we

where for cost be others. for I going our peers, extremely to I'd painful guess negative go in us, to the position our situation at flows look a cash only thing add, Chris, as compared you it's

probably sustained can't would that really be we that view for very So long. as something

that are going probably a a we to very built term to still think are room where can the profile, I still that of so sheet year maintain we understanding leading that margins conditions the balance on cash have And that be some and we conservative more last short negative in deploy nature.

requirements first, sufficient simply is have even a low very coking to that prices million said where we I cash, million and pricing, you a solid aren't extreme believe where really margin capital coal today, point and we we're $XXX that little where of but some said, levels, of are given a amounts pullback further $XXX generating If very you that margin point And with in see weakness, margins, at sufficient, just comfortable negative low a continue right? with being idea have CapEx debt if compression, requirements. the prices, we you

available that, dry the be will we're pretty fact to powder So us. feeling about positively that really really

the sheet Yes. mean strong strength guys balance a balance obviously to there's I in in critical. I cost are you loss-making the made And in question mines pricing if are a And of agree with at right? look sheet. is already. assets you would a curve, downturn Deck, you Queensland significantly some today, these maintaining no position of mean a I point about being in earlier

as cycle and paper. near I'd your a if sheet even flow in work generating to, on somewhere a deliver pricing, is which ideal of the probably capital case, delivering you sitting alluded you through all bottom hopefully, strong be and a we're returns balance So guys weaker kind that, here in on the to actually market, setup for could stock. which maintaining you in And cash

from from comes the Nathan question Martin next Benchmark The Company.

come I coking the my need math, a to low quarter just in there. tons of shipping wanted call half, it, of to a segment year full you're going By kind range. maintain million back roughly, reach the the end that second it ship means guidance coal to just for to X.X second, to

repeats achievable a saw question that just we quarter in know is First, record There's level production from a XQ. side. that production not. production or perspective? I if Obviously, on don't the a there

there. some also think guys on inventory maybe I you the mentioned

And again just rail handle to chain, cadence tons would additional quarter the any moved, inventory maybe just half. XQ as versus in maybe that help around XQ? shipments well. second into then coal then through that that's but to your the both the finally, already I talk and third logistics port confidence slipped think of that the secondly, XXX,XXX there really And

lot hit you a items. different of Thanks, Nathan. on Yes,

net them. a level Operationally, -- portfolio our delivered on touch we record at production. the I'll So where positioned few that we of

where going the talked levels to in we to a District coal the at lot transitioning panel District producing of improvement South, and XX% last to move to and We've X, to XX%. as continue higher in of transitioning be business those opportunity Leer about see the we're an expect scene X We finishing longwall forward.

get to of there expect beginning We fourth well. That for impact an quarter. towards us will the the have benefit as and

Baltimore So as the and for shipments in QX the we the we a result we constrained of saw production collapse, with build inventory. did had, that

the XXX,XXX met XXX,XXX were indicated tons or inventory of couple missed vessels We we the at think a I just in segment. of of we end QX. around built

to the to beyond. going guidance confidence very work to we've are we QX our levels in into clearly, that going in of So closely a model. year have start achieve the that gives rail got with able But us providers to that be we to need we're but providers, to half back as the jump get port the we've go and seen

that envisioned million X We've new. to tons This fact step million envisioned step-up, to that not X is we as going the of ton that beyond perhaps level. always always sort we've get we're And right? to and need up

we're getting train on something this sets. so solid, looking for service very time, we've quite good And frankly, working a and the rail long is been is and

production District When it the stair of terms far and look stepping X, made production in towards Panel the haven't you coal so Panel we so while progressing District in well in where far, X X South. in at quite conditions Leer thicker X very and really

So lots of positives.

side of confident So about this we the do be feel will there A, confident of equation will the it course, that, rail sort to well. coal of eternal the and very there; B, feel and as be move then

for continued ramp positive. Panel great the District I X. was in the at weeks the We be relative have panel. quarter, end that with and as We that At several District on stair of beginning in he X is Leer direction close to panel proximity started going South Panel and our where of the to starting of described started here Nate, production stepping in And hit we're X. it. very X has

that see again, to levels it's giving and as as further the once step in District through. we go opportunity up we're going So production just get in we South that Leer X into QX, us confidence at the

that of there? shipments issues slow XQ to on with in or things that down the versus cadence port versus of Any anything thoughts remnants XQ the XQ XQ? Any consider would in appreciate guys. I

Yes. No, has think I port the recovery the from good. been

think I real material no any. or there's remnant carryovers, significant if

that heavy million that cadence quarter think X.X us I level we So would be focus for by as forward. ton go said a we

we you get And what depend upon could do there Okay. of time? expect will amount prepared color dollar kind more time just a little severance Maybe Maybe it over potential if remarks those conditions? made Matt, occur? said the I in of think on to market you some then you period And some your What's rebates there. rebate. comments the

mentioned rebate, with and Obviously, first, the this I both think about of that I state. today a gotten online. clear couple in rebate my terms in things Nate, us of Yes. Arch win-win the to I in benefits for are want we've a comments the for South reiterate pretty Leer being the with

$XXX longwall the what were million a the state, taxes increase up Leer XXXX. in mine That's average For what we our South for that in our nearly came paid came Today, a about severance time about paid severance if tax back up, that at we XX% an there, levels, on look annual to the since compared that's we time. paying portfolio. over you --

been has work thing a for to us for department I commend today. they've the are of is goes where operations tax we this, folks that want both lot this sides. to our in think a our and bring we clearly, to done into So what There good in

I as think, benefit we back the the qualify we've We that largest makes had end taken, the overall than Obviously, in being sense. likely far. part So up gotten some of smaller will coming already to think expenditures what is with what look said, going several all ahead, of that future years. I so good we the we've news have

first the be going bite So was biggest. to the

year. sit next to what how got and as it, into the $XX And something is tax But at And something there's the, what things going this. weigh think amounts year, next look of what then, we call on progress, market depending then as in look As this like rest XXXX we roughly million in there today, QX. for here we of could we $X is lines as clearly, opportunity at additional an looking be level again, the like we of year, range the well. of probably we some ultimate severance half million pay markets the price to for to into trail along

I drove what of CapEx kind Matt, wanted Okay. reduction. to the just about ask also And then that?

quite in cash order So everything to really guidance in the we beginning just we're we year where year, year, our at costs capital haven't looking our doing defer sort as we at And where what can what at plan we've of experienced for frankly. the the set flows the the of of the of rightsized been results much first possible. pricing beginning the from as to clearly was half

and So this really defer just taking things be periods future that year we would we trying we to can. those to wherever spending thought

The Markets. Jancic from next conference BMO from comes Capital Katja

is improve that from contribution could thermal thermal Maybe provide to in is The the more side. see? you the half the versus little how maybe side we an the on second half. starting off improvement going first expectation the color a of Can much

where X was shipments. months in first committed, -- the significant Elk I'll the EBITDA. talked with of of guess saw out of I West year a step targeting down can tremendous And the well. the lion's XX million start we others PRB. demand. we half I of gas the tons year see of and in the weigh X, work already we we've the that basin we at we they pressure. tons We've done low rest environment, of even We that Really guess challenged natural this a year. in occurring have kind Katja, had winter, indicated about as they're generating the came million prices, we've the in XX challenging over improvement amount share into lot in that where here, have and of We the see already and we're just first the in the -- but

did team get is furloughs. great production had doing maintenance equipment. But of Thunder Their head and we through parking in did pit parked that inventory. of the so see the a They've equipment a Black higher done job we build stripping in saw job. attrition shipments we reducing The a They're count that and aggressively. with and at optimizing great we what

That we've pit cost incurred coal. uncover inventory, to that the

million as twice around we're We run have would typically tons. at -- probably have We X would much X probably we typically normally as million tons.

back coal So what production levels. as the the into that result, we're is benefit the cost uncover an But incurred the to as of expect that get first to the half in benefit we we improvement we to to back half in year. see our we'll incurred shipments reduce in to get year, going having the half compared that the get the of of a of year, costs

modestly step we year. of the that expect as that positive we I if segment, said, recover thermal cash the think So with the it you half back to all our look be all to into at losses had

thing [ kind most Elk at we mean, we the high becomes there. West we is that of, if I dive tailwind said X you're sort inducing PRB, Katja, headwind things of because times the the the each was Yes, the quarter, and a than more otherwise costs actually that But single-digit continues. back were were visibility shipping part, And the look, is, good of cash, contributions West very of Elk, stripping kind from of have for ] than we we've looking half. in EBITDA at more have or was incurring stripping which would

West have then the the positive PRB. we high got that, top and Elk contribution you've should digits coming meaningfully on a from suddenly, So single of from

that back simple for lion's the half incurred I is in cost the very not that's of meaningful lot while the this additional million million shipping margins. of to it be a say we fact of So significant in back X contribution X will would share the clarity, PRB tons the a half that

that the some together contributions be meaningful again, So means X thermal generating we'll segment. pretty from once cash the

Colorado. the team the still good set the reclamation end in tailwinds year. from in done a they've half for things reacting that in Whether other And change. the short-term to in committed costs. [ whatever of X I ] that's pretty We'll a good on going -- couple all money to when on in we'll years, the what done comfort did we in last We'll has think them sized. those about I or effects in the second the done do months the that I have of we've ]. have last well very addressed. of right up well Converting inventory well -- become very or means what's be [indiscernible] the cut very we the have and of feel And the that [ will they've say at whirlwind the I basis. changes in have lot the market

quickly steel being on [ to or now the and maybe ] the Leer heading year, next where Leer shake plus mine District into is fair -- South with entering million tons up? thicker And South it is with could X.X production the X assume

guidance. any South to specific a District in providing perspective, without Leer But once describing, not business, improvement that guidance provided we for we're absolutely, my from again, is XX% we've range expectations XX% think in formal high absolutely of you're what having what yet within scene since and have X, I with improvement coal from incurred Katja, meaningful -- the expectations.

of the million we rate. on at And or you'll guidance million-ton X a X tons sort kind did least Katja, is provide, this year -- a run of recall, as

it District the So obviously, XXX,XXX higher meaningful as a that X formal look, said, at anticipate if that tons guidance no X run this and point. we rate, so yields John go from million-ton a quarter, level. again, to get step-up million-ton we implies X per and But we from

Michael comes Research. from Vertical from question next Dudas The

do little you you share and a back issues needed how are, how has been done that all to tremendous the and fits the it more normalized assess operations the still how How work given level? been? overcome? activity to everybody that's could a that? logistical Is starts? Baltimore DTA, all John, maybe bit and There

question. good Michael, Yes,

we a think to I commented little expand on it bit further.

bridge the Baltimore event, our logistics to been has responding a of the for a the was talked flows. I significant adjusting call logistics of about that event, flowing, clearly. it, of that We keeping partners working think and call fabulous job post collapse, the closure reacting purpose, with team post practical that Port

CSX ownership XX% with up well. that The stepped stepped DTA, up partner, Our in well.

quarter With said, that essentially that kind all able has XX. I to And significant everything flows. ] really so the we're traditional really time, say opened gone prong back the what the restriction, would we the despite second June challenges. that port achieve without proud of were in Since of to [

impact so see don't And residual any going I forward.

well. The think condition And the of optimize on work I the to stronger close. through so gained going experience them makes we'll team forward process, as that the

put take so And behind us. this, we'll it

discussion is forward As and indicated his Paul forward move positively. move and in

So effects. no residual

can add probably And look, different fact, appreciation fact performed have from there achieve highly the throughput we too. levels a of again, DTA we we and probably really impressive that than maybe was of well we in challenging during a times that terms achievable there. higher in Mike, movement by thought efficient DTA out could team what's really because, to the And an the there performance

there sorted throughput fair at capacity that things we be So believe both and a number more may actually facilities of going forward.

of Michael, numbers, XXX they and railroad quickly resolve major with Curtis railroad. we're the I problems well people miles core the at job. don't compliments but X but the up reacted tragedy Baltimore good an amazing and know million Nothing DTA, say extra and about uncertainly, set the lot that's the of doing from end, do engineers down a for mean but solve or railroad, normally in very to -- the an to that tons as don't I I things but a roughly of whole having ended job. CSX exact the having Bay, did We up quite else the not

The from comes Hacking next Citi. from question Alex

fires. saw. quarter a industry in Unfortunately, the we to just I the were that to wanted outages ask there on of outages couple due

your perspective for your out but understood, that how well fairly does on end that much And impact the Like long? has is capacity have [indiscernible] and think markets? fire? any how Longview I taken -- what's on

and plans I teams there management see are are the [ difficult employees, very and the ]. grow those both to of tough, events All

longwall The also. that or I [ you Longview it's South, about well the mine, on issues touched fire of ] they XX miles which south think the known. pretty had Leer is

on [indiscernible] active. river still long it's South As And we the mine, of came about understand a the it, that the fire wall and that capacity think December. mine, mine a is longwall as near size in somewhat you

the it, of do, to Those ] forever. tons XXXX. tons number out it in are X effectively were We expecting million round call world market [

about in is it's these of to either you my for long [indiscernible] seaborne reduction earlier, see comments look hard but we X% mines, we'll I But as the how think X% what my days, to rule these think a at minimum to residual thumb outages get of maybe or are there's it's damage it occur. back. of XXX XX equipment U.S., fires problems. just if the days no mine on That's in guess

to it's So volume it's to in be for going of all take the some wish out those best, them going market. tough the but situation guys. -- I

are Obviously, a by those kind right market. as we imbalance, look, would But the subdued amount. outages little imbalanced a not talked the significant if back now. of said, this, about we it's the say further. it's pulling market feel look, unfortunate, nature fair amount of Alex, doesn't Paul a

the now year-to-date, monsoon that China, fact track, tend India the which If it's up you to positive. what look excluding sort hot continues X.X%. we up they're is X.X% obviously That's production the world at metal in a click year-to-date. along to despite middle of of right

they're to The sort imports of or Russia is Chinese of up quality is so that on XX And seaborne. while and being X/X are track seaboard that X/X higher opportunistic, be of volume from tons. million lower-quality

the about course, So of tons. market, Australia, where up coal the you've and on in positive that's high-quality from aggregate, is, supply got side, the all which only X the a comes -- million Canada U.S. seaborne

to hit about of going are sort half year. to again, outages X% talked which supportive. the lower We really the back that's So mine of X%,

a look, So that there the of is lot positives reality are here.

demand start markets. indeed we in to quick itself move see we In the could pretty a reassert see fact,

about any We've market Now little the what really good if longer, we rationalization is for cost right? saying where of that, are in environment. we're a supply talked curve. A for down stay they about pressure, little high-cost

Asian at -- now We have a is well interest So that's talked looking that again that would in great environment lot a at great if interest an out well great to major about that relatively it it But have calibrate now Vietnam, right buyers. to and we're that Malaysia, buyer progressing had continue feels trying looking from plays reiterate are Indonesia, addition. we in way. we

positives there. lot of a are there So out

this. say think just really everyone while agency. not they're with finally which might It's I indicative pushback the the we're -- taking balanced. is buying coal, bit getting be no And on wants is a well their coal volume, fact of will the is subdued, -- market their I always their market relatively

So seeing out road. we feel we're the good pretty market there about in what

just India now guess, deck, destocking right? on I And, we for a moment? are in Asian logical that conclusion the are comments growing are few a running been production follow mills a just be up, steel would is weeks, fairly those destocking, the met out. imports China consistently like But price falling coal Because effectively has strong, up the is

right, that's think I Alex.

has So what's we elsewhere. X And pretty about talked again, urgency Again, I they've Asian because can't level for Asian lot factors grow. countries the Europe been are a to while. buyers, and doesn't Asian in persist Asian they think Really China mean low. aren't and of longer the well. buyers of as it buying great We be slow capacity from seen had that continues a this new seeing transpiring with term introspect. the to interest Southeast continues Obviously, where buyers look there we're

selling so If you were started X go mid-sized brokers on producers or ago, the we spot back there, mainly ago, sort just basis. years a of we years sell to X to

it And got those That out base positive, modestly can really does agree is. and we don't tone makers now like them oversupplied destocking want the there because all component oversupplied, and this ago, could sell. its I with that agreed buyers. of year China of A not in suggest more to I the there's that who to and sort feel to world started have is talking that in balance we're absolutely to really we largest return market provide if the But market to wants steel volume we've that. would Chinese business in a the subdued very our feels be customer

if and taken said. I Alex, Yes, watched occurred. no that and very question But I carefully, bond. that worry customers color X seeing back, not Deck add is have thing push of piece And what have something X their we're down are prices destocking about it's have to would little

so. long pay problem pushing As customers I back. We're seeing nervous customers the that as I time, quickly volume, like particularly, same but don't the start pricing when [ per very at get ] not where

bad. what's as be want don't overly to think but think and I optimistic, on Deck going is I I

concludes to our any closing Paul question-and-answer I This conference session. to over Lang back like would turn for the remarks.

balance challenges and to proposition, logistics strong in for our underscore you to sheet marketing and few our have you I really challenge act low-cost and commend Arch team range. I base, key circumstances Thank QX. including of months, in and value the the exceptionally interest the for quickly ready agree ability like rising the to in asset in served hope the our the ever that past particularly our aspects changing in to would end Arch. the

improvement team great focus in our platform. the plan faith entire on and I the Going build maintain operations, over momentum and on to continuous driving this positive forward, fully we we while costs have in the healthy. our we'll to to set group in the future. With softness the October. Stay operator, safe will that call, we stage even the expect of period current market reporting and look stronger and conclude forward for simultaneously that,

has Thank now attending you conference presentation. for concluded. today's The

now disconnect. may You