Alpha Announces Fourth Quarter and Full Year 2022 Financial Results

• Posts net income of $220.7 million, or $13.37 per diluted share, for the quarter
• Reports fourth quarter Adjusted EBITDA of $247.9 million
• Returns roughly $517 million to shareholders through buybacks in 2022
• Returns approximately $100 million to shareholders through dividends declared in 2022
• Increases share buyback authorization to $1.2 billion from prior level of $1 billion
• Increases quarterly dividend to $0.44 from $0.418 per share

BRISTOL, Tenn., February 23, 2023 – Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products for the steel industry, today reported results for the fourth quarter and full year ending December 31, 2022.

(millions, except per share)

 Three months ended Dec. 31, 2022Three months ended Sept. 30, 2022Three months ended Dec. 31, 2021
Net income$220.7$252.8$257.4
Net income per diluted share$13.37$14.27$13.45
Adjusted EBITDA(1)$247.9$296.2$318.5
Operating cash flow$185.0$497.0$104.3
Capital expenditures($61.0)($33.3)($22.9)
Tons of coal sold3.94.14.0

1. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules.


“2022 was an extremely successful year for our company,” said Andy Eidson, Alpha’s chief executive officer. “Even with the previously-announced fourth quarter issues that prevented us from finishing as strong as we would have liked, the year as a whole brought about record performance in Adjusted EBITDA and operating cash flow as well as the successful elimination of our term loan debt. In 2022, we returned more than half a billion dollars of capital to our stockholders in the form of share repurchases and we declared $100 million in dividends in 2022, the most recent of which we paid on January 3, 2023. Additionally, the Alpha board has approved an increase in the share repurchase authorization of $200 million to further demonstrate our commitment to our capital return program. We look forward to bringing this positive momentum into the rest of 2023.”


Financial Performance

Alpha reported net income of $220.7 million, or $13.37 per diluted share, for the fourth quarter 2022. In the third quarter of 2022, the company had net income of $252.8 million, or $14.27 per diluted share.

For the fourth quarter, total Adjusted EBITDA was $247.9 million, compared to $296.2 million in the third quarter 2022.

Todd Munsey, chief financial officer, commented on the fourth quarter results: “As mentioned in our earnings pre-announcement, fourth quarter volumes were weaker than expected, largely due to challenging geology and transportation issues, both of which have continued to improve as we have worked through the first quarter of 2023.”

Coal Revenues

(millions)Three months ended Dec. 31, 2022Three months ended Sept. 30, 2022
Met Segment$804.9$840.6
All Other$16.3$27.2
Met Segment (excl. freight & handling)(1)$699.0$718.1
All Other (excl. freight & handling)(1)$16.3$27.2

Tons Sold

(millions)Three months ended Dec. 31, 2022Three months ended Sept. 30, 2022
Met Segment3.83.9
All Other0.10.2

1. Represents Non-GAAP coal revenues which is defined and reconciled under “Non-GAAP Financial Measures” and “Results of Operations.”

Coal Sales Realization(1)

(per ton)Three months ended Dec. 31, 2022Three months ended Sept. 30, 2022
Met Segment$186.29$184.31
All Other$126.10$109.27

1. Represents Non-GAAP coal sales realization which is defined and reconciled under “Non-GAAP Financial Measures” and “Results of Operations.”


Fourth quarter net realized pricing for the Met segment was $186.29 per ton and net realization in the All Other category was $126.10.

The table below provides a breakdown of our Met segment coal sold in the fourth quarter by pricing mechanism.

(in millions, except per ton data)
Three months ended Dec. 31, 2022

Met Segment SalesTons SoldCoal RevenuesRealization/ton(1)% of Met Tons Sold
Export - Other Pricing Mechanisms1.1$218.3$196.8833%
Export - Australian Indexed1.4$253.4$183.5941%
Total Met Coal Revenues3.4$641.9$190.94100%
Thermal Coal Revenues0.4$57.0$146.24
Total Met Segment Coal Revenues (excl. freight & handling)(1)3.8$698.9$186.29

1. Represents Non-GAAP coal sales realization which is defined and reconciled under “Non-GAAP Financial Measures” and “Results of Operations.”


Cost of Coal Sales

(in millions, except per ton data)Three months ended Dec. 31, 2022Three months ended Sept. 30, 2022
Cost of Coal Sales$549.1$554.1
Cost of Coal Sales (excl. freight & handling/idle)(1)$434.3$425.4

(per ton)Three months ended Dec. 31, 2022Three months ended Sept. 30, 2022
Met Segment(1)$112.97$104.86
All Other(1)$80.76$67.48

1. Represents Non-GAAP cost of coal sales and Non-GAAP cost of coal sales per ton which is defined and reconciled under “Non-GAAP Financial Measures” and “Results of Operations.”


Alpha’s fourth quarter Met segment cost of coal sales increased to an average of $112.97 per ton. Third quarter cost of coal sales for the Met segment was $104.86. Cost of coal sales for the All Other category increased to $80.76 per ton in the fourth quarter 2022 against an average cost of $67.48 per ton in the third quarter 2022. The higher costs in fourth quarter were attributable to operational challenges and approximately $2.00 per ton of discretionary incentive compensation to our employees.


Liquidity and Capital Resources

Cash provided by operating activities in the fourth quarter decreased to $185.0 million as compared to $497.0 million in the third quarter 2022. Third quarter 2022 operating cash flow included an approximate $235 million reduction in accounts receivable as a result of coal indices softening from historical highs reached earlier in the year. In addition, the fourth quarter operating cash was reduced by a reclass to deposits of approximately $85 million related to the previously announced quarterly and special dividend. Capital expenditures for the fourth quarter 2022 were $61.0 million compared to $33.3 million for the third quarter of 2022.

As of December 31, 2022, the company had total liquidity of $441.1 million, including cash and cash equivalents of $301.9 million, short-term investments of $46.1 million, and $93.1 million of unused availability under the ABL. The future available capacity under the ABL is subject to inventory and accounts receivable collateral requirements and the maintenance of certain financial ratios. As of December 31, 2022, the company had no borrowings and $61.9 million in letters of credit outstanding under the ABL. Total long-term debt, including the current portion of long-term debt as of December 31, 2022, was $11 million.


Dividend Program

On February 21, 2023, Alpha’s board of directors declared a quarterly cash dividend payment of $0.44 per share, increased from the prior quarter’s dividend of $0.418 per share, which will become payable on April 3, 2023 for holders of record as of March 15, 2023.

Any decision to pay future cash dividends will be made by the board and depend on Alpha’s future earnings and financial condition and other relevant factors.


Share Repurchase Program

In 2022, Alpha’s board of directors authorized a share repurchase program allowing for the expenditure of up to $1 billion for the repurchase of the company’s common stock. On February 21, 2023, Alpha’s board increased this authorization by $200 million, bringing the total authorization of the share repurchase program to $1.2 billion. As of January 31, 2023, the company has acquired approximately 3.8 million shares of common stock at a cost of approximately $560 million. The number of common stock shares outstanding as of January 31, 2023 was 15,326,644, not including the potentially dilutive effect of unexercised warrant shares or unvested equity awards.

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.


Operational and Performance Update

During the fourth quarter, in our continuing efforts to secure in-demand supplies and services, our subsidiary Maxxim Rebuild Co., LLC (“Maxxim”) purchased certain assets of Industrial Plating and Machine, Inc., which manufactures essential mining equipment components, including gear cases. In addition, in January 2023, Maxxim completed a series of transactions to acquire a number of coal trucks and related equipment and facilities.

As of February 14, 2023, Alpha has committed and priced approximately 38% of its metallurgical coal within the Met segment at an average price of $195.89 per ton and 52% of thermal coal in the Met segment at an average expected price of $119.79 per ton. In the All Other category the company is 97% committed and priced at an average price of $94.08 per ton.

2023 Guidance

in millions of tonsLowHigh
Met Segment16.417.8
All Other0.30.6
Total Shipments16.718.4

Committed/Priced1,2,3CommittedAverage Price
Metallurgical - Domestic$193.17
Metallurgical - Export$207.66
Metallurgical Total38%$195.89
Met Segment39%$186.39
All Other97%$94.08

Metallurgical Total38%
Met Segment34%
All Other--%

Costs per ton4LowHigh
Met Segment$106.00$112.00
All Other$87.00$93.00

In millions (except taxes)LowHigh
Idle Operations Expense$21$31
Cash Interest Expense$2$10
Capital Expenditures$250$280
Tax Rate15%20%

1. Based on committed and priced coal shipments as of February 14, 2023. Committed percentage based on the midpoint of shipment guidance range.
2. Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations.
3. Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates.
4. Note: The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP cost of coal sales per ton sold financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliation. The most directly comparable GAAP measure, GAAP cost of sales, is not accessible without unreasonable efforts on a forward-looking basis. The reconciling items include freight and handling costs, which are a component of GAAP cost of sales. Management is unable to predict without unreasonable efforts freight and handling costs due to uncertainty as to the end market and FOB point for uncommitted sales volumes and the final shipping point for export shipments. These amounts have historically varied and may continue to vary significantly from quarter to quarter and material changes to these items could have a significant effect on our future GAAP results.
5. Excludes expenses related to non-cash stock compensation and non-recurring expenses.


Additionally, the board of directors has scheduled the company’s annual meeting of stockholders for May 3, 2023.


Conference Call

The company plans to hold a conference call regarding its fourth quarter and full year 2022 results on February 23, 2023, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company’s website at Analysts who would like to participate in the conference call should dial 877-407-0832 (domestic toll-free) or 201-689-8433 (international) approximately 15 minutes prior to start time.


About Alpha Metallurgical Resources

Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit


Forward-Looking Statements

This news release includes forward-looking statements. These forward-looking statements are based on Alpha’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha’s control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur.



Non-GAAP Financial Measures

The discussion below contains “non-GAAP financial measures.” These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP” or “GAAP”). Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “non-GAAP coal revenues,” “non-GAAP cost of coal sales,” “non-GAAP coal margin,” and “Adjusted cost of produced coal sold.” We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments. Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance or any other measure of operating results or liquidity presented in accordance with GAAP. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization – production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. We also use Adjusted cost of produced coal sold to distinguish the cost of captive produced coal from the effects of purchased coal. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.

Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company’s operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, and capital investments.

Included below are reconciliations of non-GAAP financial measures to GAAP financial measures.


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Investor Contact

External Resources

Metallurgical Coal Producers Association (MCPA)

National Mining Association (NMA) Industry News and Resources