Alliance Resource Partners (ARLP) 29 Jul 242024 Q2 Earnings call transcript

Greetings, and welcome to the Alliance Resource Partners, L.P.

Second Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Cary Marshall, Senior Vice President and Chief Financial Officer.

Thank you, and good morning and welcome everyone. Earlier this morning, Alliance Resource Partners released its second quarter 2024 financial and operating results, which we refer to as our 2024 quarter. discuss market as for conditions now perspective as XXXX. will current on and we those well results our And updated outlook

answer Following the we remarks, your to our questions. will prepared call open

release. that some subject are Securities contained and with statements variety in Before beginning, filings a morning's reflected a of remarks in time include to and today uncertainties risks, and the from Exchange also our this of our Commission forward-looking may assumptions press time reminder to

publicly forward-looking based result more revise to these or as law update statement, whether are or required these vary us, those new otherwise, projected if of forward-looking prove risks materialize materially available or partnership In While expected. these to remarks, any a information currently may providing we assumptions future do statements so. by the on unless uncertainties actual underlying one events of information, to if results from incorrect, or obligation or has our or no

second which the you to an Form contain our earnings operations release this X-K. June SEC error. had which Earlier does Finally, under to quarter press error a X-K. the has morning on morning's the and and with XX, and item correct the from ended posted earnings attached and furnished of measures version release, reconciliations this we Form our end have contained we differences for we of the financial release measures. this website comparable published was financial the a earnings non-GAAP discussing the Definitions Wire Business months be income at the by our XXXX between filed Form on that morning, SEC been Also, is obvious X this typographical not discovered in these most And release line refer we that the financial will measures of directly for to of GAAP are non-GAAP the cover certain XXXX. X-K, also

of required call for our his out second I President give way, review of Craft, quarter, over our senior successfully results June, Chief of the with the unsecured XXXX. then to Joe XXXX we to that the notes in comments. X.XXX% balance With million Chairman, the our turn update senior preliminaries and In redeemed and the $XXX the were million of XXXX in for notes due guidance, issued will Officer, due Executive begin an of $XXX.X ARLP's outstanding we

markets by from of senior notes to of the flexibility, We $XXX The right terms confidence March also our offering to by represents the increased certain of million, a further and extended provide senior amended XXXX vote the our million us million. of export the and reliable, maturity to as to to strengthened facility vision credit record over additional capital obviously successful investors was and markets we significantly offering a We track cash generator the execute its business to plan. The well over strong received in ARLP's low past flow the ability with cost to our years. producer revolving our $XXX the recently upsize completion both oversubscribed. as has liquidity sheet balance emphasized that issued notes years access $XXX including was communicated a coal domestic proven XX be the

$XXX increase of royalty segment high and revolution. was we our grown $XX a electric AI the that EBITDA gas data centers cash vehicles, which shared in adjusted unlevered capitalize adjusted by driven manufacturing, to and electricity the poised flow value XXXX. view segment has and onshore continued are expected our million a also We to we major from contributor segment expectation our to the also free offering from XXXX oil business, demand gas in prospects outlined of U.S. on success. In The oil EBITDA in the for and margin particular, royalties million and in growth

our oil of prices During X.X% Average equivalent the X.X% prices realized quarter, X.X% which reached to and per royalty prices, second XXXX, Reflecting gas our the we quarter XXX,XXX higher. solid post realized for sales and BOE of volumes a XXXX BOE oil refer gas sequentially, minerals up or to BOE, Oil barrels were were average as commodity quarter. XXXX sales increase as versus results segment year-over-year. higher per continued

revenue were sales Tunnel And Basin, in coal shipments our by and production volumes sales at our were as reflecting from X.X%, Turning outages coal XX.X% to down Delayed volumes shipments high export and water to XX.X%, down X.X% from mostly the than the shipments down quarter, segment. Hamilton end on lock expected our declined of coal sales for mine. XXXX Basin, tons volumes coal Ohio compared sales Illinois Appalachia, reflecting Hamilton Mining million our decreased the grow volumes MC declined decreased XX.X% tons In million to XXXX and sales sales XXX,XXX quarter. mines. Compared X.X%. tons, our quarter, sequential lower to by while to as due lower lower to the were In quarter compared levels X.X the to the XXXX production volumes the while Ridge the quarter, coal inventories Illinois caused X.X to results Coal River the XXXX the XX.X% for compared XXXX tons. which quarter. region, sales increase in in the to a included an our sold impacting sales declined Appalachia, to strength price realized to coal ton Tunnel sequentially. order X.X% the attributed ton X.X% price to in ton up book, the were average was Reflecting coal Ridge Appalachia. was pricing down quarter we $XX.XX Coal By in the flood per Basin our per X.X%. to operation. Compared shipments ton well Appalachia sequential Illinois price Basin primarily ton And and quarter, our Illinois the mix Basin in The X.X%, of at at X.X% to increase due Illinois contracted sales realized domestic mine. of Appalachia in Illinois rose waters due compared X.X% mine. sold the in higher increase Ridge improved increased XXXX shipments sales and Basin per sold the by year-over-year, realizations higher the price $XX.XX a per Tunnel for to X.X% per by

sold the Hamilton coal X.X%. in tons were experienced royalty River X.X% primarily X.X% and volumes, Our sold segment a quarter coal royalty increase View cold in up and decrease royalty per with prices XXXX coal from revenue tons an and royalty our up ton down mines Sequentially, year-over-year. during

related the at down mining XXXX of per per region quarter the year expense at in as were River View. In XX.X% operations consolidated period. due XXXX $XXX.X the operation X.X% segment recoveries and in to across adjusted and tons increased increased ton million, sold XX.X% Segment ton were the conditions quarter during XXXX a our to production costs risk expense X and the lowered moves, million sequential respectively. the the challenging compared longwall EBITDA adjusted total due XXXX all and primarily respectively, Sequentially, at As sold result XXXX X.X% result, Illinois by control the Appalachia, to compared increased increases and from EBITDA quarter. reduced lower quarter that the and production Basin for recoveries revenues for total ago revenues Hamilton consolidated The Appalachia to and XXXX X%. maintenance quarters per $XXX.X were down X.X% quarters by sequential in a reduced to

into Basin with was while third the were moved at moves in Tunnel move quarter longwall at in moves XXXX end Illinois moves quarter, Ridge, X.X Illinois we million each Appalachia. Coal tons For planned at X in Appalachia XXXX the the completed of with anticipate Basin now at quarter July. the levels and the Hamilton X the X fourth and longwall X inventory and Mettiki in We and quarter. in longwall the X

the the levels We X half of anticipate tonnage the back than tons throughout ratably as balance a year-end. normal million to at expect be levels more being sales million inventory production X.X of year, and reduced to year. these higher result, the levels anticipate We of inventory in

of the Bitcoin $XX,XXX, while own XXXX we we of Bitcoin decrease price value month-end quarter, partnership's fourth a the During the million X.X%. upon digital a amount the of $X.X in fair increased assets saw of based

a that price, at it our at million the capacity this quarter. last mining started in we quarter, at described the price load approximately end the when monetize own $XX,XXX, Bitcoin XX% We View to as checked project from was the already quarter. end Bitcoin electricity the morning the mine. at we up pilot XXXX I River now $XX.X As yet XXXX Bitcoins I approximately at underutilized for valued XXXX XXX of paid note of approximately earlier

million to quarter million the million the reflect mentioned $XXX.X fourth which income for adjusted $XXX.X ago Net in to revenues and $X.XX the quarter million the unit XXXX or compared higher year $XXX.X per unit $XXX.X fourth XXXX was the total was the in operating period. to sequential These which or Adjusted income period. Our were $X.XX decreases prior in million EBITDA expenses lower ARLP $XXX.X and respectively. compares EBITDA in $XXX.X per million and attributable year previously. quarter net

distribution the balance quarter. our invested $XXX.X $XXX.X X.XXx leverage million XX was to the million of adjusted million million more net $XXX.X cash to in in paid and cash of end, our in cash million million $XXX of the in capital cash million $XXX.X At activities trailing and Alliance total sheet months EBITDA. XX% sequential the per operating quarter, X.XXx expenditures And slightly the quarterly the balance sequential beginning also for our year. $XXX.X the and ratios cash. to unit. from from sequential generated $XX.X XXXX turning flows and a the total quarter quarter of $XXX.X of included the down flow sheet the uses increased debt Now XXXX were at which compared quarter Alliance XXXX up $X.XX from of and equivalents million, approximately on Free liquidity in quarter. to quarter, than

markets our in are this full year outlook adjusting Based morning's Now guidance. on our our release. year-end, turning updated we detailed to and year-to-date guidance results for through

inventories for this half to press has net pricing to we the in year production it generation the or elevated meet back start back thermal prudent slowed although mentioned on have U.S. been demand strong Basin level more coal a demand. In As down, is rely has export summer, coal prices the are for down sulfur since release, Illinois are cooling our morning's slow the and mainly at production favorable. is this seeing this of customers we coal-based that decided high markets, until their utility accelerating for domestic power of

million XX XXXX result, million X.X% for of sales between tons fall revised original within the tons to As midpoint a below is million for volumes to a that XX.X a guidance our our total range new guidance year. with coal expects XX.X midpoint

the of to sales tons expect domestic to We the be utilities this due total, million committed range XX our tons a the Basin range the currently and million contracting are committed anticipate net year. We Of tons sales X.X timing continuing in be some above or this will during minor tons million to Appalachia are fourth to XX% that burn Illinois be spot volumes and domestic year. there our in that activity for the XXXX market, to summer our million customer XX.X sales of in range. tons at quarter, volumes XXXX tons of updated X.XX modest sales X.X our to for adjustments of the guidance million to made the of the and reflect tons quarter to shipments XX.XX while of for occurred midpoint million in to expected tonnage movement to end the quarter. price the markets. We committed sales be sales was XX.X opportunities At approximately XXXX committed of average, the export to

we a XXXX planning in domestic As for market. of are sold over to our unsold now half the position be coal result,

to expect book beyond We now customers coal in the range be to ton of to per commitments a for of firm deliveries sold $XX $XX.XX previous for per per volumes, in on the of and versus $XX. range of ton In pricing compared wanting $XX.XX previous a up $XX.XX months, in pricing the future. Based we also sales near for we to our Basin, as ton. lower anticipate $XX over the expectation versus the range previously. as X $XX.XX to of will actively ton $XX.XX their in additional most XXXX are increased price the per our of secure sales next the we we to market And Appalachia, to ton $XX.XX $XX $XX.XX to Illinois $XX.XX to expect

ton, of to of $XX Illinois in to $XX range the range. expect to now expect cost $XX For we a cost we $XX. range the Basin, segment in ton $XX of we Appalachia, per be previous while to ton per versus the be per to to adjusted expect $XX expense our EBITDA ton, In range the $XX per in $XX

relates it see raising our for guidance activity volumes acreage. segment, strong Basin to gas our from As to we continue and we are oil our royalties as Permian

For oil, to barrels previously. barrels we to expect X.X X.X X.X million million million versus million X.X

versus For million expect million million $X.X versus barrels MCF for to XXX,XXX natural previously. to $X.X gas, $X XXX,XXX And expect XXX,XXX liquids, XXX,XXX $X.X previously. barrels we million MCF to we to

expected be lowering to we our in range Interest reflects be versus $XXX ARLP. that, the Joe? to Joe his $XX $XXX for the of which The for impact by refinancing our activities momentum $XXX million in will remainder million expense, million over on we capital turn same. And the $XXX million. million million for and call I previously. of the our market the excited to continue the maintenance business. And comments is build in ranges now to remain with expenditures are outlook $XX guidance are the our minerals range to We guidance to to finally, of

I Good Cary. offering completing morning, would everyone. to in significance June. you, reiterate the our Thank notes senior like of

its As ventures. in represents ARLP from growth offering strengthens markets, Cary further coal, pursue gas our will said, and initiatives capital vote and business balance oil allow of the new confidence sheet to royalties and which a the other successful

Warrior will low structure. many with in position, reliable, make most liquidity We advance enhanced investments major cost years and year, Ridge, to our Hamilton, plan coupled more operating continue for projects next in improve expect these When complex. them Tunnel View cost remain River to infrastructure Starting come. to at their and we productive our producer the mines our we the regions

think for bullish and us for making term coal resonate, key serve, the the the we industry large. U.S. and As we themes coal markets about industry to longer intermediate of the a number outlook our at continue prospects particularly on

domestic continue year's publication potential last will forecasts heat August. year to Weather of producers next exceed for half pricing and essentially and summer production industry for XX with Year-to-date, utility time, it the looking is in country, as ahead been in is pace. coal at trends generation suggest current progresses, to year-over-year. Further, reasonable many this the is burn supply by XXXX. with tons close thermal First, has utilities coal same U.S. demand. projecting supporting million improved one coal second Eastern close coal flat in wave will At significantly XXXX cooling that are encouraged XX% power XXXX. parts we record-breaking Therefore, across down that production U.S. as expect pushing of recent will decline the coal-based temperatures the by supply has demand is And driven through strong slowed demand of out we heading stockpiles year. into

export Turning to market. the

our has lower guidance met coal and steam for Our changed coal sulfur not offerings.

earlier, bids the meet sulfur Cary guidance our completed our our at As coal minimum updated guidance for did pricing recent thresholds, our time not highest quarter. we explaining Illinois reduced Basin sales this volume said forecast,

upward back APIX per respond then, the trend Friday, demand. the volumes pricing this by week. can the $X quickly If last from beginning up since around meet However, of ton higher index market we jumped adding continues, to

than from years year, expected we led and now of by electricity U.S. growth is for this core massive what drive low plans that In growth resource to power anticipated customers' to come, confident demand data this centers of the pace remain was forefront reliability of our the Beyond fundamentals requirements AI, manufacturing. rapid many in in many the grid and greater at in is cases, multiples onshoring discussions. are

and the demand. Earlier nuclear published recognize will how parties of grid, Journal nation's article forced roughly risk the about baseload reliable be of their administration baseload the reason. data from fleet plants, implemented, will during may companies for generating direct centers. existing these the than with baseloads the existing another the if for supply capacity Street owners energy true, coal of this the coal early If peak grid of removing must As are month, retirement stay on Biden-Harris tech in talks X/X increase looking longer planned times to particularly an prefer. The Wall

in to resource have planners and the risk are Fortunately, created. Eastern policies regulators state U.S. that the up Biden-Harris waking the

of May, demand require reason to just a CEO now for trend ago their by the reverse testimony, A major XXX that filed source might a of on also Natural be facility Committee a a power. testified before flat would industrial X coal see he one megawatts He size More acknowledging to of are a his require close acknowledged American amounts this that customers facility would reconsider of years of demand after of are economic acceleration the previous of importantly, significant electricity. interim Senate driven generation. In and beginning Energy how in to Electric customers activity kind who the plans be a In cited and the large typically area. is manufacturing for few electricity, region prematurely scale Power we Resources. our decades

Xx he to for single says, it over a site. amount of data for common is to center anywhere Now XXx single require from a power this

which in capacity. Another Last immediate generating released report emphasized comes the important they add example month, to from shift the of MISO. reliability need a

large spot seasons across retirements. new significant adequacy actions pressures capacity adequacy. a are load risk development increasing and new added additions They capacity Specifically, and could they on that said to economic additions delay resource resource time over absent spurring grow all activities

of that capacity have of decades, and will several Eastern affordably. market plants the saying for across reliability for been do reliably what previously see years the United early safely, keep critical done deferral retirements, States. retirement to jeopardize forced they the continue early All baseload on this grid believe We what the of the will to lights we underscores allowing planned have

up, I I year-over-year the momentum combined deliver quarter Before quarter's and record solid are another seeing are wrap results, first with realized We another on we And the strong when growth. our we business. to like highlight of to would track in exceptionally royalties oil year. gas

by exposure risk. Our operating without growth hedge-free perhaps the is flows generated providing growth commodity importantly, self-funded oil and more predominantly in prices, segment, organic gas cash and royalties from to

royalty remaining weighted in the the are Our is and XX. Permian, acres heavily net the fastest-growing locations basin towards which Lower

the demand Going to front forward, to concludes to X committed and year am demand cash anticipate grow to increased us this recognize for be look delivering we growth. In opportunity successful of our to us rapid open the should us years continue continue the we to flows, in prepared we segment a grow encouraged Operator? of We strong another of over now well this poised next questions. call and and value growth investors have to and encouraged are are unitholder in will from the for be in fundamentals proposition are benefit will enabling closing, to XXXX. That positioned growth the forward by I operator opportunities give ask are started this the demand. generator the what for electricity I to that value. comments,

Benchmark Nathan from with comes Company. The question first Our Instructions] [Operator Martin

on the out start to side. want export I

year sales change. saw the because prices backs in could was 'XX to release prepared the I that aren't in we mentioned Then decreasing remarks, recent you're cause last guidance Joe, said, think part of net week supportive. reason that full in your increase You you the

price that production market? is there? enough So look shift at export if look what what color about backs give And do tons to today's could the or net Maybe price that like? just would back ARLP's bring favorable the APIX you you $XXX, is view we more little a back to

Yes.

it So the we the the they -- range in $XXX think of of planning were was instead as were when I Monday, mentioned guidance, for that like I $XXX. last more

high the we've sulfur at So high temporary higher than $XXX. we feel don't And typically whatever $XXX sulfur we've discounts to And a reason, been. level been we market. about in But it situation, they most for but have what recently, our like know. been have that seeing that's transacted

encouraged week. are what by did we So this market past the

for at targeted we with prefer level We have that ago, $XXX $XXX improve feel few But to we said the to that range, a those minutes and but to comfortable before can told our $XXX a like level markets. is enter lower historically not a level. to markets you wait we go transact I and

know last volatile. can was So be APIX all week We encouraging.

to We've got the the the is equipment. people. the ready news good capacity. We've So got We've respond. we're got

as just market market it's the to will bring of So we will enter us whether that not. what a matter or

Okay. sulfur Got versus where discount And it. kind of an have historical the we levels? just so idea, is

probably, don't made what higher recent know, is be bids the would than It's decision. this most we what I typically were it XX% when

far as of what to it would as -- X% So say, anywhere XX% a the on XX%, from percent APIX. can total, see what of range you

wanted That's to coal per ton I then also cost Okay. the Got helpful. some on it. increases additional on thoughts the get side. And

sticky least expect with being guessing know could about the current the built that ton? still were your op that mean, to full really wrap impact ] half? and you second the quarter, to denominator above 'XX? as moves you should shipment of inventory. up XXX,XXX heading But guidance. This the lower ton Anything end multiple think of some the help those per about I tons didn't cost at think into And [ how guys longwall had we high you else I'm improve per I costs the projects. anything guys year costs for

Yes.

that we up operating just full than you mentioned The other ended impact other at just ones capacity. the not is

at had was by MC driven some that the end at previously that of took and days we June anticipated Mettiki we vacation inventories basically weren't Mining. the So and at

days the we And thought some our railcars for that of that sense -- production, were created got shipments. we less we did didn't would the get by we get some the just reallocated of impacted we So the less quarter that cars in results. the operating impacted that bridge and collapse

look forward that more we do normal levels sense that because next As we've us the the cost back in. in for believe of year, we of projects to productivity invested into we'll get

Tunnel we better get travel time we is are reserve had actually our shafts The actually into and at us project Ridge at available moving both material year. Ridge is Warrior, the and the scheduled be So And coal will faster reduce than up that geology. of completing allow Warrior beginning next project Tunnel to to anticipated.

We View, going the better expect -- operation. to get been into down that entry into entered coal of we've will coal XXsteam reject higher County now went the that continue X. point as View River into of part we through the project portal into we're some this to We've XX. time mine the compared constructing of the was is. get to completed mining in View seams. sand, are year. At have what part we higher Henderson our sloping We the had X, we It other November we've that construction believe and a River at recoveries that going when through part we River the We

believe our And River cost View into to XXXX so have we do going mine. from better going we're

operations of those So should benefit all year. next X

we're had conditions encouraged basically believe we also year, future the as for we the well. far Mettiki mining what as at that the at panels geology as starting next We are adverse last year seeing for

compared year. for year been we're next experiencing improve and what will we've costs this our that to feel what we projecting So

investing year. would look to think what for right project now. operation the our Joe said, good Yes. shields I also next addition add I Mettiki -- thing at yes, in in we're do new And to that, only longwall Nate, at Hamilton our the

we And for operation of look a as lower go out as of year, so maintenance result well. costs forward next that we'll going into that, as

period the next but everything a of true. we've we costs projects that mines as terms into still year So of transition in The the go now, are good. holds past look right communicated in in

Appalachia over area. of would of of only just Baltimore terms in some in volumes I for think Joe I thing the for add the other the quarter, the collapse outages the the mentioned impact

look the on we high quarter, quarter during you as If that, levels the in addition water well. Ohio overall to experience did River at the

when tons we it of So million roughly we the that had quarter. impact in to worked terms of combine be X.X the X out there,

So it's are well just not and up in quarter. lost, tons the those we'll as quarter they're fourth deferred as here the that making those be third

about with X.X million the it that water relationship little Joe associated level in over to the collapse. ton as port the volumes mentioned impact earlier So was on a the high bridge as issues well bit

thing our as other complete year. these looking into lower projects we capital we capital The should be year, next this numerous had

Okay. Great, just guys. with one And then just XXXX. sticking more finally,

lower like you You in roughly additional would be that And prepared and some puts I get confident exports your XXX,XXX that of, current that thoughts? guess, you Are my I Are is remarks since much But soon. that to said XX commitments well you expect add that looks know below slightly tons last you added your you Cary, about on to usual. quarter. assumption, below you still guys you year seems the domestically with than maybe It shipment sell based XX% at midpoint It usually where tons true? next relatively million supplement are? of great kind there. can

Yes. looking for of customers Essentially, conversations all our book their for completing in are XXXX.

anticipation be have gas been price LNG prices gas the today's some prices price years, will it deferral next year has off that to natural should The next want year. in to curve coverage. People difficult primarily there higher proper is don't in higher, for forward low made prior stronger. secure So be

back have we on been production. some So pull and believe there

needs realistic to point active willing to are be the getting we're the that are utilities the think conversations where I ongoing. and producers next So are what year and about the

So earnings about a position significantly better we at next to should our talk call. have

maybe? least Joe, directionally on comments, at for Any pricing XXXX,

like you any -- because guidance active negotiations. can't time I said, we're we're in I give this at

run feel or rate So million year that is markets. X back we good ton we to month targeting about -- successful for ton a we feel securing for what hopeful million we're are if can year next X our we a that those And a get -- -sales we're coal future.

next Our NOBLE Reichman from with comes question Mark Capital Markets.

of Illinois I production how that I lost traffic, due by April, in the sales and/or Just the, and that was to River Gibson. get I the guess, the Because View but deferred at was Hamilton? at to View Basin, it XXX,XXX going barge were guess kind much was that River know in offset

Illinois So most production understand -- a future sounds you Basin? of in it I just all lost just better in made -- of then much the of like up going was is to want what quarters. could on if kind little the to that going get And how

Yes.

just in more River we're Maybe of was Tunnel kind communicated rig-related. about, River a terms was but previously most XXX,XXX the and View-related. Mark, of think, View-related, versus that most Ridge-related talking was small of amount that we I had of that

So had whatever by View impact Gibson. we at River offset was

impacted. very was the number So River of terms it in a was quarter small View where

was River at Okay. it XX,XXX Recently, and Tunnel in that was and sound Ridge. like a XXX,XXX disclosure there of financing of your kind View did

a maybe I that bit. just So little misunderstood

#XX because how in terms traffic the slowing barge lower lost of View the seam? recoveries So mining then, to much production the initial the of at of the River was versus due

the that sulfur. a seam. Most got Most there that production. in seam recoveries, higher other we of produced XX the it mean, of get didn't coal we the that we I just was And had recoveries is challenge

relates View pace operation -- River inventory coal View at move So of we're that anticipated. of our part to River issue into rest on than having -- to coal slower that it's blend so had what we a having our

we will believe by of us... the be the that So again, year, end behind

Yes.

on getting shipments River made has was other is the all up these all I deferred made are kind of transitory. time, pricing export even these what guess, In at Gibson almost of I issues over words, that improvements it View, like accelerate. South of sounds may up volumes with So been for

the the if just is or #X think historical overall in the the the forward your -- would were moves longwall look just guidance, what it reduction market? it what biggest sales you Is the is at the pulling guidance? or So to you it reason to be do export total is attributed

market. export the primarily It's

down in based care the And the business can actually half. do as the there the pulling we business. earlier, are our market Cary of in we is production on the some that the be said lower, the we fourth in primarily spot got burn. opportunities that the of take pricing just We've summer believe, will ground our at contracted second on for So export because beginning anticipated of than volume quarter But inventory year.

guidance projects. lower we of And the would in because so say expecting driven is what a market reason our -- our export primarily stronger than XXXX of current were sales I

to And due that mainly was Hamilton?

mainly it's high Hamilton sulfur, View. River Yes, to both and due the

during overlooked Hamilton. I that quarter -- Yes, That at recognize was Hamilton. View Okay. of what of I the really didn't and the others and going kind I at kind looked River on was

guidance, but reducing you're the higher. sales expected are coal while coal So prices

So it seems like sets if for XXXX. that down utilities are their nicely drawing inventories, up you pretty

maintenance guidance, major your was the drivers what at looking there? the Just capital in reductions

look at of the when Mark, couple throughout I on just been kind of you trending think how we've there's year. things a that,

reduced As it bit we're CapEx well. a what numbers lower And forecast you behind guidance to tonnage numbers capital with spend, our the the original our as fact the that was. levels is seeing leads little

also with spend in good discussions time terms. to We of -- deal payment a vendors with relationship in did

We beginning defer allowed those. year well. expectations of able into in us And since the were commitments the had payments those more defer those in to numbers of you terms XXXX some to payment as terms favorable to negotiate so capital make we some prepayments year terms where securing to for of able of were next the of that

So combination adjusted the to guidance. all of those of led the

comes Dave question Stonegate. with from next Storms Our

quarter or is knock-on Just this logistical the the a of some outside something effect in jump slightly a was the coal if and noticed that's from delays if number curious keeping took that elevated? this purchases is there else

some contracts. additional in related to that is our buying ability sales number Mettiki where the That allows for met that met coal mine of to put have some coal our we we're some on coal to

related what that's that's to. So

Yes.

in another on earn were that, that, coal on what we addition to amount to we a of opportunity think of addition small about, -- a that did coal I in to purchase small did Joe have the on side did where purchase was buy able hit volume talking margin that. over to we

typically a that little quarter there is is the of would bit a in that part see. what So you higher than

you good more at where couple basis forward million look so we is going on purchase a month go of were to back think basis, or forward a going of if terms coal in I a we that. terms as on a number in a forecast

Couple of million month? a

where correct. first through we of X quarter a run half rate of Couple of the versus million the are year. million the month, a

side opportunities to gas, you're you then opportunities what Understood. and If Is And an eye is Very there oil there seeing hope? royalty helpful. not, keeps that and producing. expand for? keep out any the would

volumes looking gas? acquisitions. and make continuing investments we're to Yes, on add so Staying through oil to we're and

So to that close. themselves able depends can how what growth on continued give what can't what area that. us. opportunities for precise we're quantify would present on basis It and be. is we number as That's a I just to you exactly a percentage quarter-by-quarter that

comes Our Singular Research. from next with Marsh question David

offering question a item, on of something elevated balance with the Just the is first debt of bit or sheet Is else wanted closing issue The quick on is kind start a to bit balance little a the relative the of housekeeping that there? there to little a timing quarter. Cary.

it was It the is higher than first in where quarter.

our balance the look to if of And $XXX at that existing million. notes proceeds $XXX.X you of in total, was in So used a our pay-off offering total. it offering we million on senior

to really that. it's the sheet as of the gross of amount basis, higher there a result as basis, that a small net was added very balance So close leverage On a a was same. But on that a result bit of it's little to a offering.

Okay.

obviously, So guys balance there prepay, anything on in is pay of left down but... you the what's anywhere, sheet without is terms can going the that $XXX not million

not current not range. in somewhere Yes. it anywhere, we a $XX million do exactly it's loan the facility. The -- where is, associated credit there have but with are balance, million I'm sure going term The $XXX our is million to $XX

So we option could prepayments event to some terms that in be wanted in a loan. that an of certainly the term do

to So like an repay utilize like we'd to capital it, potential event that but find that. be that that going invest to we'd Ideally, the a decide option to that's we could certainly forward. opportunities in

following Absolutely, working now capital question of seen ties the and I've to the on your sit that? inventory. low understood. question, guess, your what back this last as obviously time. And what you and if with with then of target comfortable and think kind you previous this -- highest regard about was level Because is to I typically looking up certainly could just inventory is, then would mean, of internally it's years, the kind most pushing as is be inventory just that kind but you few in $XXX level over you of of quite some any as that? I and for million mean, we're kind it to have million, $XX sense closer of one I

we we to million of what if of from we like Generally million see, speaking, you lower That's a end side than I million on to to tons X on look the year, tons. that X X.X we where tons million higher is And would but last to the number think see. X.X like bit were the million at little anywhere what X.X generally somewhere was a inventory that. between preferably typically the year to tons around like end side, be a at inventory,

anticipate a upon current to million down X the that year. end year our of to by getting based ton X.X So level we the plans, million do

then And last the helpful. That's from one me. Okay. just

or mouth, that seems with throughout it Is Just your of some the the but the guidance eyes would kind statement? is there conservative as spot planning in guidance where and in to or the you fair aren't to -- back made sounds with Just maybe to some of would comments sales get and that like back year a new you the maybe I'm for were regard of currently be the you potential about, the upside half upside. not call, thinking have first the though if you little just trying of than just of new is you neutral would that was to guys right thought -- it bit kind potential a it that of kind put think be kind just words half the guidance in number just your actually you is just be and get here? this tougher

Yes.

planned that won't of the being were at where in because we fourth is able of to guidance. beginning we this It possible think grow, this more and that in us definitely I in the it volume. could back and to sell export have getting that as maintain just pricing year what's timing vessels than the get the would the queue to quarter

current make million but we won't So up higher we $XX than target. could that actually Cary as volume, have all talked that the about our

can So when that the end gave we we of anticipating be could guidance. higher more X the it X the vessels range or if otherwise get weren't we

feel would good XX better, X, it's dependent it hopefully now, about this on more what X, ton right vessels fourth get But is we to is. million maybe like to going up. volume that pricing if would can the X target going be their to we but hit that and believe in holds that market be we So guidance quarter

with comes Bank Landa of from Our Abe next America. question

new refi the what there. the to based this, you your that that cash levels have And cash First a using million million to are minimum on that congrats kind want like and hold? $XXX about I anything Maybe you significant you've of cadence minimum liquidity debt it's your on extension. liquidity do for of cash? cash? touched $XXX like and or And your on off, led plus priorities on kind transaction, the guess, to over increase operations this revolver but of in any deploying

Yes.

we to redeploy is in priority back again to the gas oil plan Our do and segment.

are continuing where some oil gas that are we We're to to and that. able for segment. be opportunities investments to So grow and to additive coal other like of the would we evaluate in

we've at. multiple things we're looking So got

world data supplement So doing engaged be center that there deploy capital core our could are in We've we considering. investment. We that where in also Infinitum's other that we're areas the about possibilities related talked would existing could to talked opportunities some arrangements we about some segments.

the that XX at, continue able to or next that to So so there hopefully growth are going provide Matrix, we're to us looking some we for and -- on. opportunities things over believe we're capitalize be months

looking looking as looking opportunities. very said, good that active that and So that deploy are deploy for capital or Nothing we we're for returns. on there's Cary cash announce And on today, ways cash for to but several things, flow. to to ways capital cash

the over landscape within just just that recent and does to you seem area more area like want go? last has competitive the competitive just Could talk the handful gas It maybe gotten an about years, royalties oil you of months?

we've competitive Yes, since seems it's in been It over it competitive. like it. really gotten has

more we're probably a might current I be right of maintaining been impacted long-term elevated on. by are potentially the has because lower Ukraine, to year are the that this oil that pricing looks in standards now, how on been think underwriting little that our in prices can that pricing than what situations a going going wars with as dealing reasons Europe, East issues for the be geopolitical flows Middle that have

to that So be of stay us that took the a those oil it to is to bid is. it's to win we've to auctions. going haven't on year. factor come we've bid where might reached price lot on, of a but projects where for different for predict And this exactly level things close, long it how We've hard we

that to has pricing of price that that there's going supply adequate adequate been believe acquisitions. We to It's elected the a not bid has or at the acquire opportunities that high. those to opportunity. we've allowed there is be So little to to still level make just us thinking

that. feel to we So And underwriting will able that we're confident stick be going standards. to to deploy we our

the we It's when mentioned, year you from had we'll capital that we've to to growth we able XXXX consistent with Cary We at what space. as this successful 'XX. with what mentioned And so. year value, look be returns with will grow able yield another are able that do, what company We to our record or it in been think to we be achieve continuing will into to XXXX. we've have deploy

what's do a people that some future But to without be patient. or we Sometimes than just compromising are, going optimistic answer you able believe have on it's deploy But capital competition underwriting standards. be to about to we'll hard pricing little being there. to continue it's whether exactly we bit our more

last And me. question helpful. for very That's

think well pretty I priced quote. since XXX, performed have them, you bonds seen as I've above last from Your

can consider You also kind bonds? you $XXX bonds upsize upsizing mentioned would by that circumstances million. your of you Under your what

we That event and in space, you do environment. opportunity of where think just type mineral have that the in you and oil you may think could be larger that that, across about to sizable what be could when potential gas the I out we come that more bigger that. were example done the on say, go certainly opportunities there of scale about could in like than a talking past. a something in be, An scale a

the investments it based to know of else opportunity some that? add to what you there. Joe, have would don't if that anything related upon we be I see are primarily So out

I think that's right. exactly

[Operator Boston Hill Mike Instructions] next question comes Our with Edwards Advisors. from

you a about a little question Ohio I lost break Bridge, in quarter was already disruptions And is the when do had late attending or may that sales? the quick talked of just have and going apologize I River the that it But for can and you're think next you that. you answered obviously so deliveries I Baltimore out flooding the been to call, between how much recoup? loss in it this quarter, just

just sales. not lost definitely deferred sales, it's It's Yes.

that. out bit third a that to $XXX,XXX or balance more We so, the little get in able quarter. so do it And to be may of year will the the of take

we we've the -- Appalachia for sales think think the be anticipated probably volumes, and I about provided I quarter. more in guidance made our a little bit think As region, that up the to it's third

volumes higher in versus quarter see as you'd of So a fourth result quarter that. the the third

all but made -- And be will volumes up. so the

a just follow-up. So quick

in of from guidance? that forecast look addition guidance the the the guidance I that the lower, is the rest or year, what's median at as little rest revised in year, revised in revised that which for catch-up is bit is below of revised the a guidance the for the So earlier? Is to

in revised It the is guidance.

further floor questions to at like back over turn no Cary closing the are for I would Marshall There time. now to this comments.

to well as you. Thank time and the morning call, this support your in Alliance. your And we interest continued everyone appreciate as on

next third This call Thank and Our us currently the and concludes for join expected to time. late operating that is again at you. our everyone call results quarter XXXX we day. discuss our in hope financial will occur October to

you may now your for disconnect Thank You your participation. lines.