BRISTOL, Tenn. — Alpha Metallurgical Resources on Friday reported financial results for the fourth quarter and full year ending December 31, 2024.
Among the top takeaways in the written statement:
- The company reported a net loss of $2.1 million for the fourth quarter of 2024;
- Posted Adjusted EBITDA of $53.2 million for the quarter;
- Reduced 2025 volume guidance for metallurgical coal shipments to 14.5 million tons;
- Increases full-year cost of coal sales guidance range to $103 to $110 per ton;
- Reduced letters of credit outstanding by $15 million during the quarter.
“As expected, the weak metallurgical coal market negatively impacted our results for the fourth quarter,” said Andy Eidson, Alpha’s chief executive officer. “We continue to see lower levels of met coal demand which is keeping pricing subdued. As always, we strive to accurately assess the landscape and take actions as necessary to match our business to those realities.
“The adjustments we’re announcing today to our full year 2025 guidance for met coal shipment volumes and costs of coal sales are reflective of lower amounts of purchased coal than previously expected, as well as the impact of severe weather in both January and February on our operating plans. As we look ahead, our priorities continue to be the safe operation of our mines and the financial protection of the business against these difficult market circumstances,” he said.
Alpha reported a net loss of $2.1 million, or $0.16 per diluted share, for the fourth quarter 2024, as compared to net income of $3.8 million, or $0.29 per diluted share, in the third quarter.
Total Adjusted EBITDA was $53.2 million for the fourth quarter, compared to $49.0 million in the third quarter.
Fourth quarter net realized pricing for the Met segment was $127.84 per ton.
Alpha’s Met segment cost of coal sales decreased to an average of $108.82 per ton in the fourth quarter, compared to $114.27 per ton in the third quarter.
Cash provided by operating activities in the fourth quarter decreased to $56.3 million as compared to $189.5 million in the third quarter. The third quarter benefited from a decrease in working capital of $144.5 million. Capital expenditures for the fourth quarter were $42.7 million compared to $31.5 million for the third quarter.
As of December 31, 2024, the company had total liquidity of $519.4 million, including cash and cash equivalents of $481.6 million and $112.9 million of unused availability under the asset based revolving credit facility (ABL), partially offset by a minimum required liquidity of $75 million as required by the ABL.
As of December 31, 2024, the company had no borrowings and $42.1 million in letters of credit outstanding under the ABL, a reduction of $15 million in letters of credit outstanding as compared to the third quarter. Total long-term debt, including the current portion of long-term debt as of December 31, 2024, was $5.8 million.
As previously announced, Alpha’s board of directors authorized a share repurchase program allowing for the expenditure of up to $1.5 billion for the repurchase of the company’s common stock.
As of February 21, 2025, the company has acquired approximately 6.6 million shares of common stock at a cost of approximately $1.1 billion, or approximately $165.74 per share. The number of common stock shares outstanding as of February 21, 2025 was 13,052,684.
The timing and amount of share repurchases will continue to be determined by the company’s management based on its evaluation of market conditions, the trading price of the stock, applicable legal requirements, compliance with the provisions of the company’s debt agreements and other factors.
Alpha is reducing its full-year 2025 guidance for metallurgical coal shipment volumes. The new metallurgical coal shipments guidance range is 14.5 million tons to 15.5 million tons, down from the prior range of 15 million tons to 16 million tons.
Additionally, the company is increasing its 2025 cost of coal sales guidance range to $103 to $110 per ton, up from the prior range of $103 to $108 per ton.
As of February 20, Alpha has committed and priced approximately 32% of its metallurgical coal for 2025 at an average price of $143.81 per ton and 95% of its thermal coal for the year at an average price of $80.74 per ton.
dmcgee@bristolnews.com — Twitter: @DMcGeeBHC