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Arch Resources (ARCH) investor relations material
Arch Resources Q3 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q3 2024 marked by a definitive merger agreement with CONSOL Energy, expected to close by Q1 2025, with all major antitrust and international approvals secured.
Q3 results impacted by softness in global metallurgical coal markets, oversupply in domestic thermal coal, and operational challenges including a 3-week ship loader outage.
Reported Q3 2024 net loss of $6.2 million ($0.34 per share) on $617.9 million revenue, compared to net income of $73.7 million in Q3 2023.
Initiated a voluntary separation plan in the Thermal segment to align workforce with lower sales volumes.
Declared a $0.25/share dividend, totaling $4.6 million, payable November 26, 2024.
Financial highlights
Q3 2024 revenue was $617.9 million, down 17% year-over-year; adjusted EBITDA was $44.2 million, down from $126.3 million in Q3 2023.
Cash provided by operations for the nine months was $212.4 million, with $255.9 million in cash and short-term investments at quarter end.
Paid down $5.1 million in debt during Q3; net cash position of $127.7 million at quarter end.
Total capital returned since February 2022 exceeds $1.3 billion, including $736 million in dividends and $614.7 million in share/debt repurchases.
Capital expenditures for the nine months: $126.9 million, focused on maintenance.
Outlook and guidance
Leer and Leer South longwalls expected to restart soon, with improved execution anticipated for 2025.
West Elk mine positioned for margin improvement in 2025 as higher-priced contracts replace expiring legacy deals.
No formal Q4 guidance provided; Q4 volumes expected similar to Q3, with operational improvements anticipated late in the quarter.
Expect continued volatility in coking coal prices due to underinvestment and supply disruptions; thermal production rates to align with secular U.S. coal decline.
Minimum liquidity target of $250–$300 million to be maintained.
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