Contura Announces Second Quarter 2020 Results

BRISTOL, Tenn., Aug. 7, 2020 /PRNewswire/ -- Contura Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier, today reported results for the second quarter ending June 30, 2020.

                          
     (millions, except per share)


                          
     
              Three months ended


                                          June 30, 2020   
     
     Mar. 31, 2020   
     
     June 30, 2019(2)


     Net (loss) income(3)                        $(238.3)            $(39.8)                   $24.3


     Net (loss) income(3)
      per diluted share                          $(13.02)            $(2.18)                   $1.25


     Adjusted EBITDA(1)                             $16.9               $60.2                   $140.8


     Operating cash
      flow(4)                                       $79.0              $(0.1)                  $102.5


     Capital expenditures                         $(41.5)            $(49.6)                 $(42.8)


     Tons of coal sold                                5.1                 5.5                      6.4


     
     __________________________________



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



     
     2.    
              Excludes discontinued operations, except as noted.



     
     3.               From continuing operations. First and second quarters 2020 no longer have
                          discontinued operations.



     
     4.               Includes discontinued operations. First and second quarters 2020 no longer have
                          discontinued operations.

"Our second quarter results serve as continued evidence of Contura's commitment to adeptly managing through the current global uncertainty," said chairman and chief executive officer, David Stetson. "Even with a weeks-long furlough in April, our team increased our cash quarter-over-quarter, lowered our overall debt, and kept costs roughly on par with our stellar first quarter cost performance. As we look to the back half of 2020, we believe these steps to streamline our company will serve us well despite any additional market fluctuations that may occur."

Financial Performance

Contura reported a net loss from continuing operations of $238.3 million, or $13.02 per diluted share, for the second quarter 2020. The second quarter loss includes a pre-tax, non-cash asset impairment charge of $161.7 million, which resulted primarily from our strategic decisions to idle the Kielty mine and not pursue the new impoundment at Cumberland resulting in a significantly shorter mine life. In the first quarter 2020, the company had a net loss from continuing operations, including non-cash asset impairment charges of $33.7 million, of $39.8 million or $2.18 diluted share.

Total Adjusted EBITDA was $17 million for the second quarter, compared with $60 million in the first quarter, primarily due to lower CAPP - Met price realizations.

Coal Revenues

                              
     (millions)


                                  Three months ended


                                     June 30, 2020   Mar. 31, 2020


        CAPP -Met                             $316.3         $362.4


        CAPP -Thermal                          $36.7          $38.7


        NAPP                                   $57.5          $66.9


        CAPP -Met (excl. f&h)
                   (1)                       $261.5         $308.7


        CAPP -Thermal (excl.
         f&h)
                (1)                  $32.1          $35.0


        NAPP (excl. f&h)
             (1)                              $52.0          $64.6




        Tons Sold             
     (millions)

    ---

                                  Three months ended


                                     June 30, 2020   Mar. 31, 2020


        CAPP -Met                                3.2            3.3


        CAPP -Thermal                            0.6            0.6


        NAPP                                     1.3            1.5


     
     __________________________________



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

The CAPP - Met revenue decline in the second quarter was driven by an $11 per ton decline in price realizations relative to the first quarter. CAPP - Thermal revenues also declined quarter-over-quarter due to lower realized prices. Second quarter NAPP revenues were lower as a result of lower volumes and prices.

Coal Sales Realization((1))

                   
     (per ton)


                       Three months ended


                          June 30, 2020   Mar. 31, 2020


     CAPP -Met                     $81.61         $92.80


     CAPP -Thermal                 $49.52         $56.73


     NAPP                          $40.19         $42.81


     
     __________________________________



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

The second quarter 2020 metallurgical coal prices continued softening, with our average CAPP - Met coal sales realization declining 12 percent to $81.61 per ton against the prior quarter. While our domestic business continues to benefit from annual fixed price contracts, the lower second quarter realizations were primarily driven by our export business, where prices declined as a result of COVID-19 related demand reduction. Thermal coal price realizations were also impacted by reduced demand in the second quarter with both CAPP - Thermal and NAPP segments experiencing lower realizations.

Cost of Coal Sales

                                 (in millions, except per ton
                                             data)


                                            Three months ended


                                               June 30, 2020   Mar. 31, 2020


     Cost of Coal Sales                                 $383.3         $397.9


     Cost of Coal Sales (excl.
      f&h/idle)
      (1)                                              $310.5         $328.1




                               
              (per ton)


     CAPP -Met
      (1)                                              $74.41         $70.68


     CAPP -Thermal
       (1)                                             $45.38         $53.07


     NAPP
                (1)                               $32.98         $39.68


     
     __________________________________



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

Contura achieved continued strong cost performance in its CAPP - Met segment in the second quarter. The reported second quarter cost of coal sales was $74.41 per ton versus $70.68 per ton in the first quarter. Excluding the impact of the April furloughs, incremental one-time COVID-19 mitigation costs, and the partially offsetting benefit from an annual severance tax adjustment, the second quarter cost of coal sales were roughly on par with first quarter.

NAPP cost of coal sales for the quarter was $32.98 per ton, down from $39.68 per ton in the first quarter, which was impacted by a longwall move in March. CAPP - Thermal also reported solid cost of coal sales performance, improving to $45.38 per ton for the quarter as compared to $53.07 for the prior quarter.

Selling, general and administrative (SG&A) and depreciation, depletion and amortization (DD&A) expenses

                                   
     (millions)


                                       Three months ended


                                          June 30, 2020   Mar. 31, 2020



     
     SG&A                                        $12.0          $15.5


        Less: non-cash stock
         compensation and one-time
         expenses                                  $(1.9)        $(2.1)


        Non-GAAP SG&A(1)                            $10.1          $13.4





     
     DD&A                                        $49.3          $54.5


     
     __________________________________



     
     1.               Represents Non-GAAP SG&A which is defined under "Non-GAAP Financial Measures."

As a result of additional overhead reductions, Contura's second quarter 2020 SG&A expenses were $10.1 million, excluding non-cash stock compensation expense and one-time expenses of $1.9 million, and down $3.3 million from the prior quarter. Contura expects non-GAAP SG&A expenses for the full year 2020 to be in the range of $45 million to $50 million.

Liquidity and Capital Resources

"In response to the wide-ranging impacts of the COVID-19 pandemic, we took aggressive action in early April to optimize cash by temporarily idling certain operations, which resulted in a $41 million reduction in inventory and overall net working capital change of $99 million in the second quarter," said Andy Eidson, Contura's chief financial officer. "As we continue to analyze our liquidity, we expect capex for the remainder of the year to be in the $45-$50 million range, and we still anticipate receiving an accelerated AMT tax refund of approximately $66 million in the second half of the year and approximately $14 million of payroll tax deferrals until 2021 and 2022."

Cash provided by operating activities for the second quarter 2020 was $79.0 million and capital expenditures for the second quarter were $41.5 million. In the prior period, the cash used in operating activities was $0.1 million and capital expenditures were $49.6 million. Contura expects capital expenditures for the full year 2020 to be in the range of $135 million to $140 million.

As of June 30, 2020, Contura had $238.4 million in unrestricted cash and $157.5 million in restricted cash, deposits and investments. Total long-term debt, including the current portion of long-term debt as of June 30, 2020, was $628.1 million, down approximately $25 million from the prior quarter. At the end of the second quarter, the company had total liquidity of $240.2 million, including cash and cash equivalents of $238.4 million and $1.8 million of unused commitments available under the Asset-Based Revolving Credit Facility. The future available capacity under the Asset-Based Revolving Credit Facility is subject to inventory and accounts receivable collateral requirements and the achievement of certain financial ratios. As of June 30, 2020, the company had $30.8 million in borrowings and $121.7 million in letters of credit outstanding under the Asset-Based Revolving Credit Facility.

Operational and Strategic Update

As previously announced, certain operations were temporarily idled in early April in response to market conditions, inventory levels and expected customer deferrals. As of May 4, all Contura sites were back to nearly normal staffing levels and operating capacity with additional precautions in place to help reduce the risk of exposure to COVID-19.

On May 29, two previously wholly-owned subsidiaries of Contura Energy--Contura Coal West, LLC and Contura Wyoming Land, LLC--merged with certain subsidiaries of Eagle Specialty Materials, LLC. In completing this transaction, Contura ended its connection with the Powder River Basin.

On June 22, the company announced that its Ruby Energy (also known as Kielty) underground mine and the Delbarton Preparation Plant were to be idled due to adverse market conditions and uneconomic pricing and cost structures. Kielty produces both thermal and metallurgical coal.

During the second quarter, the company also decided against spending over $60 million for a refuse impoundment at Cumberland Mine and amended its supply agreements to expire as of December 31, 2022. Unless a buyer emerges for the Cumberland Mine, the company will cease operations upon the expiration of its outstanding coal supply commitments in late 2022 or early 2023.

Also in June, the company completed the acquisition of the Feats Loadout facility in Logan County, West Virginia, which is served by the CSX railroad. With this transaction, Contura adds transportation optionality to its existing network and increased ability to leverage low vol metallurgical coal sales opportunities through Dominion Terminal Associates.

Looking ahead, the company continues to progress on its capital projects and its shift to higher-quality, lower-cost mines. "Even in spite of the disruptions caused by the COVID-19 pandemic, development at our new metallurgical mines remains on schedule," said Jason Whitehead, Contura's chief operating officer. "The low vol Road Fork No. 52 Mine added a second production section in mid-June, and will be positioned to be at three sections by the first of 2021, while the high vol project at Lynn Branch has completed initial underground cuts and expects to be in production by the fourth quarter of this year. The Black Eagle Mine, our high vol A project, is progressing well through the corridor to the main reserve block, which we anticipate to be in production by next year."

Conference Call

The company plans to hold a conference call regarding its second quarter 2020 results on August 7, 2020, at 10:00 a.m. Eastern time. The conference call will be available live on the investor section of the company's website at https://investors.conturaenergy.com/investors. Analysts who would like to participate in the conference call should dial 866-270-1533 (domestic toll-free) or 412-317-0797 (international) approximately 15 minutes prior to the start of the call.

ABOUT CONTURA ENERGY

Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate mining operations across major coal basins in Pennsylvania, Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power. For more information, visit www.conturaenergy.com.

FORWARD-LOOKING STATEMENTS

This news release includes forward-looking statements. These forward-looking statements are based on Contura'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 Contura'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 Contura to predict these events or how they may affect Contura. Except as required by law, Contura 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.

INVESTOR CONTACT
investorrelations@conturaenergy.com

Alex Rotonen, CFA
423.956.6882

MEDIA CONTACT
corporatecommunications@conturaenergy.com

Emily O'Quinn
423.573.0369

FINANCIAL TABLES FOLLOW

Non-GAAP Financial Measures

The discussion below contains "non-GAAP financial measures." These are financial measures which 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," 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. 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, idled and closed mine costs and coal inventory acquisition accounting impacts. 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.

                                                                           
              
                CONTURA ENERGY, INC. AND SUBSIDIARIES


                                                                
              
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


                                                                  
              
                (Amounts in thousands, except share and per share data)




                                                           Three Months Ended June 30,                                           Six Months Ended June 30,


                                                 2020                                   2019                                  2020                      2019



     Revenues:



     Coal revenues                                     $
       410,614                                            $
              653,828                              $
         878,981     $
           1,260,788



     Other revenues                            1,224                                    2,378                                              3,317                          4,532



     Total revenues                          411,838                                  656,206                                            882,298                      1,265,320



     Costs and expenses:


      Cost of coal sales (exclusive
       of items shown separately
       below)                                 383,279                                  496,746                                            781,139                      1,012,440


      Depreciation, depletion and
       amortization                            49,262                                   62,814                                            103,727                        124,085


      Accretion on asset retirement
       obligations                              7,304                                    6,847                                             14,679                         13,079


      Amortization of acquired
       intangibles, net                         2,096                                    (343)                                             2,961                        (7,026)


      Asset impairment and
       restructuring                          184,173                                    5,826                                            217,882                          5,826


      Selling, general and
       administrative expenses
       (exclusive of depreciation,
       depletion and amortization
       shown separately above)                 12,028                                   14,783                                             27,509                         35,734


      Merger-related costs                          -                                     156                                                                              987



     Total other operating (income) loss:


      Mark-to-market adjustment
       for acquisition-related
       obligations                            (2,052)                                   1,014                                           (17,049)                         2,950


      Other (income) expense                    (124)                                   1,414                                              (704)                       (7,485)


      Total costs and expenses                635,966                                  589,257                                          1,130,144                      1,180,590


      (Loss) income from operations         (224,128)                                  66,949                                          (247,846)                        84,730



     Other income (expense):



     Interest expense                       (18,814)                                (16,077)                                          (36,419)                      (31,232)



     Interest income                           5,533                                    1,885                                              6,511                          3,821


      Loss on modification and
       extinguishment of debt                       -                                (26,459)                                                                        (26,459)


      Equity loss in affiliates               (1,047)                                 (2,475)                                           (1,790)                       (2,959)


      Miscellaneous loss, net                     188                                    (523)                                             (720)                       (1,389)


      Total other expense, net               (14,140)                                (43,649)                                          (32,418)                      (58,218)


      (Loss) income from continuing
       operations before income
       taxes                                (238,268)                                  23,300                                          (280,264)                        26,512


      Income tax (expense) benefit               (33)                                   1,000                                              2,155                          5,778


      Net (loss) income from
       continuing operations                (238,301)                                  24,300                                          (278,109)                        32,290



     Discontinued operations:


      Loss from discontinued
       operations before income
       taxes                                        -                               (163,867)                                                                       (165,457)


      Income tax benefit from
       discontinued operations                      -                                  25,906                                                                           26,321


      Loss from discontinued
       operations                                   -                               (137,961)                                                                       (139,136)



     Net loss                                        $
       (238,301)                                         $
              (113,661)                           $
         (278,109)    $
           (106,846)





     Basic loss per common share:


      (Loss) income from continuing
       operations                                       $
       (13.02)                                              $
              1.27                              $
         (15.22)         $
           1.70


      Loss from discontinued
       operations                                   -                                  (7.21)                                                                          (7.32)



     Net loss                                          $
       (13.02)                                            $
              (5.94)                             $
         (15.22)       $
           (5.62)





     Diluted loss per common share


      (Loss) income from continuing
       operations                                       $
       (13.02)                                              $
              1.25                              $
         (15.22)         $
           1.66


      Loss from discontinued
       operations                                   -                                  (7.10)                                                                          (7.14)



     Net loss                                          $
       (13.02)                                            $
              (5.85)                             $
         (15.22)       $
           (5.48)




      Weighted average shares -
       basic                               18,304,853                               19,123,705                                         18,275,382                     19,009,643


      Weighted average shares -
       diluted                             18,304,853                               19,420,471                                         18,275,382                     19,480,183

                                         
              
                CONTURA ENERGY, INC. AND SUBSIDIARIES


                                   
              
                CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)


                                
              
                (Amounts in thousands, except share and per share data)




                                                             June 30, 2020                                                 December 31, 2019


                  
              
                Assets



     Current assets:


      Cash and cash
       equivalents                                                             $
              238,438                                         $
        212,793


      Trade accounts
       receivable, net of
       allowance for doubtful
       accounts of $793 and
       $0 as of June 30, 2020
       and December 31, 2019                                       183,820                                         244,666


      Inventories, net                                             143,198                                         162,659


      Prepaid expenses and
       other current assets                                        122,354                                          91,361


      Total current assets                                         687,810                                         711,479


      Property, plant, and
       equipment, net of
       accumulated
       depreciation and
       amortization of
       $351,561 and $314,276
       as of June 30, 2020
       and December 31, 2019                                       423,367                                         583,262


      Owned and leased
       mineral rights, net of
       accumulated depletion
       and amortization of
       $34,961 and $27,877 as
       of June 30, 2020 and
       December 31, 2019                                           495,303                                         523,141


      Other acquired
       intangibles, net of
       accumulated
       amortization of
       $35,717 and $32,686 as
       of June 30, 2020 and
       December 31, 2019                                           103,439                                         125,145


      Long-term restricted
       cash                                                        109,930                                         122,524


      Deferred income taxes                                              -                                         33,065


      Other non-current
       assets                                                      220,389                                         204,207



     Total assets                                                           $
              2,040,238                                       $
        2,302,823


                           Liabilities and Stockholders' Equity



     Current liabilities:


      Current portion of
       long-term debt                                                           $
              30,390                                          $
        28,485


      Trade accounts payable                                        70,027                                          98,746


      Acquisition-related
       obligations - current                                        30,019                                          33,639


      Accrued expenses and
       other current
       liabilities                                                 161,453                                         154,282


      Total current
       liabilities                                                 291,889                                         315,152


      Long-term debt                                               597,706                                         564,481


      Acquisition-related
       obligations - long-
       term                                                         18,283                                          46,259


      Workers' compensation
       and black lung
       obligations                                                 266,390                                         260,778


      Pension obligations                                          198,582                                         204,086


      Asset retirement
       obligations                                                 207,001                                         184,130


      Deferred income taxes                                            389                                             422


      Other non-current
       liabilities                                                  50,583                                          31,393


      Total liabilities                                          1,630,823                                       1,606,701



     Commitments and Contingencies


                                   Stockholders' Equity


      Preferred stock -par
       value $0.01, 5.0
       million shares
       authorized, none
       issued                                                            -


      Common stock -par
       value $0.01, 50.0                         December 31, 2019
       million shares
       authorized, 20.6
       million issued and
       18.3 million
       outstanding at June
       30, 2020 and 20.5
       million issued and
       18.2 million
       outstanding at                                                  206                                             205


      Additional paid-in
       capital                                                     777,650                                         775,707


      Accumulated other
       comprehensive loss                                         (69,747)                                       (58,616)


      Treasury stock, at
       cost: 2.3 million
       shares at June 30,
       2020 and December 31,
       2019                                                      (106,955)                                      (107,984)


      Retained earnings                                          (191,739)                                         86,810


      Total stockholders'
       equity                                                      409,415                                         696,122


      Total liabilities and
       stockholders' equity                                                  $
              2,040,238                                       $
        2,302,823


                                             
              
                CONTURA ENERGY, INC. AND SUBSIDIARIES


                                  
              
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


                                                     
              
                (Amounts in thousands)




                                                                                                    Six Months Ended June 30,


                                                                                2020                                           2019



     
                Operating activities:



     Net loss                                                                         $
              (278,109)                          $
        (106,846)


      Adjustments to reconcile net loss to net cash provided by operating
       activities:



     Depreciation, depletion and amortization                               103,727                                          269,997



     Amortization of acquired intangibles, net                                2,961                                          (7,026)


      Accretion of acquisition-related obligations discount                    2,227                                            3,220


      Amortization of debt issuance costs and accretion of
       debt discount                                                           7,389                                            6,724


      Mark-to-market adjustment for acquisition-related
       obligations                                                          (17,049)                                           2,950



     (Gain) loss on disposal of assets                                        (755)                                           1,372


      Gain on assets acquired in an exchange transaction                           -                                         (9,083)


      Loss on modification and extinguishment of debt                              -                                          26,459



     Asset impairment and restructuring                                     217,882                                           22,294



     Accretion on asset retirement obligations                               14,679                                           13,079



     Employee benefit plans, net                                             10,605                                            9,564



     Deferred income taxes                                                   33,032                                         (33,623)



     Stock-based compensation                                                 3,121                                            4,774



     Equity loss in affiliates                                                1,790                                            2,959



     Other, net                                                                  92                                              405



     Changes in operating assets and liabilities                           (22,654)                                        (90,086)


                   Net cash provided by operating activities                  78,938                                          117,133



     
                Investing activities:



     Capital expenditures                                                  (91,090)                                        (83,882)



     Proceeds on disposal of assets                                           1,285                                            1,048



     Purchases of investment securities                                    (18,607)                                         (9,899)



     Maturity of investment securities                                       10,653                                           21,316



     Capital contributions to equity affiliates                             (2,416)                                         (4,807)



     Other, net                                                                  47                                               93


                   Net cash used in investing activities                   (100,128)                                        (76,131)



     
                Financing activities:



     Proceeds from borrowings on debt                                        57,500                                          544,946



     Principal repayments of debt                                          (29,559)                                       (550,000)



     Principal repayments of notes payable                                    (574)                                           (821)


      Principal repayments of financing lease obligations                    (1,614)                                         (2,100)



     Debt issuance costs                                                          -                                         (5,839)



     Common stock repurchases and related expenses                            (155)                                         (4,874)



     Other, net                                                                   -                                             914


                   Net cash provided by (used in) financing activities        25,598                                         (17,774)


      Net increase in cash and cash equivalents and restricted
       cash                                                                    4,408                                           23,228


      Cash and cash equivalents and restricted cash at
       beginning of period                                                   347,680                                          477,246


      Cash and cash equivalents and restricted cash at end of
       period                                                                            $
              352,088                             $
        500,474


The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.

                                        As of June 30,


                            2020                        2019


     Cash and cash
      equivalents                $
     238,438                    $
     249,597


     Short-term
      restricted cash
      (included in
      prepaid expenses
      and other current
      assets)              3,720                        34,309


     Long-term
      restricted cash    109,930                       216,568


     Total cash and cash
      equivalents and
      restricted cash
      shown in the
      Condensed
      Consolidated
      Statements of Cash
      Flows                      $
     352,088                    $
     500,474


                                                                              
              
         CONTURA ENERGY, INC. AND SUBSIDIARIES


                                                                                 
             
          ADJUSTED EBITDA RECONCILIATION


                                                                                     
           
            (Amounts in thousands)




                                              
       
          Three Months Ended                                                             Six Months Ended June 30,


                            March 31, 2020                                  June 30, 2020                                 June 30, 2019        2020                       2019


     Net (loss) income from
      continuing operations                $
       (39,808)                                          $
              (238,301)                             $
              24,300                     $
        (278,109)   $
       32,290


     Interest expense               17,605                           18,814                                                    16,077                              36,419            31,232


     Interest income                 (978)                         (5,533)                                                  (1,885)                            (6,511)          (3,821)


     Income tax (benefit)
      expense                      (2,188)                              33                                                   (1,000)                            (2,155)          (5,778)


     Depreciation,
      depletion and
      amortization                  54,465                           49,262                                                    62,814                             103,727           124,085


     Merger-related costs                -                                                                                      156                                                  987


     Management
      restructuring costs
      (1)                             947                                                                                                                          947


     Non-cash stock
      compensation expense           2,078                            1,044                                                     (546)                              3,122             4,725


     Mark-to-market
      adjustment -
      acquisition-related
      obligations                 (14,997)                         (2,052)                                                    1,014                            (17,049)            2,950


     Accretion on asset
      retirement
      obligations                    7,375                            7,304                                                     6,847                              14,679            13,079


     Loss on modification
      and extinguishment of
      debt                               -                                                                                   26,459                                               26,459


     Asset impairment and
      restructuring (2)             33,709                          184,173                                                     5,826                             217,882             5,826


     Cost impact of coal
      inventory fair value
      adjustment (3)                     -                                                                                    1,033                                                8,209


     Gain on assets
      acquired in an
      exchange transaction
      (4)                               -                                                                                                                                      (9,083)


     Loss on partial
      settlement of benefit
      obligations                    1,167                               63                                                                                        1,230


     Amortization of
      acquired intangibles,
      net                              865                            2,096                                                     (343)                              2,961           (7,026)


     Adjusted EBITDA                         $
       60,240                                              $
              16,903                             $
              140,752                      $
          77,143   $
       224,134





     
     (1) Management restructuring costs
              are related to severance expense
              associated with senior
              management changes.



     
     (2) Asset impairment and
              restructuring for the six months
              ended June 30, 2020 includes
              long-lived asset impairments of
              $195,447 and restructuring
              expense of $22,435 as a result
              of continued weakening coal
              prices and the strategic actions
              with respect to two thermal coal
              mining complexes. Asset
              impairment for the six months
              ended June 30, 2019 primarily
              related to the write-off of
              prepaid purchased coal from
              Blackjewel as a result of
              Blackjewel's Chapter 11
              bankruptcy filing on July 1,
              2019.



     
     (3) The cost impact of the coal
              inventory fair value adjustment
              as a result of the Alpha Merger
              was completed during the three
              months ended June 30, 2019.



     
     (4) During the six months ended June
              30, 2019, the Company entered
              into an exchange transaction
              which primarily included the
              release of the PRB overriding
              royalty interest owed to the
              Company in exchange for met coal
              reserves which resulted in a
              gain of $9,083.

                                                                                    
              
                CONTURA ENERGY, INC. AND SUBSIDIARIES


                                                                                            
              
                RESULTS OF OPERATIONS




                                                                        
            
     Three Months Ended March 31, 2020


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                      NAPP                                                All Other   Consolidated
                                                         Thermal


     Coal revenues                          $
       362,403                                             $
              38,743                                                   $
         66,907                 $
       314 $
       468,367


     Less: Freight and
      handling
      fulfillment
      revenues                     (53,664)                             (3,743)                                                                    (2,346)                               (59,753)


     Non-GAAP Coal
      revenues                              $
       308,739                                             $
              35,000                                                   $
         64,561                 $
       314 $
       408,614


     Tons sold                        3,327                                  617                                                                       1,508                           5        5,457


     Non-GAAP Coal
      sales realization
      per ton                                 $
       92.80                                              $
              56.73                                                    $
         42.81               $
       62.80   $
       74.88




     Cost of coal sales
      (exclusive of
      items shown
      separately below)                     $
       292,972                                             $
              38,482                                                   $
         63,013               $
       3,393 $
       397,860


     Depreciation,
      depletion and
      amortization -
      production (1)                 41,722                                4,849                                                                       6,849                         691       54,111


     Accretion on asset
      retirement
      obligations                     3,502                                2,352                                                                         770                         751        7,375


     Amortization of
      acquired
      intangibles, net                2,581                              (2,095)                                                                        354                          25          865


     Total Cost of coal
      sales                                 $
       340,777                                             $
              43,588                                                   $
         70,986               $
       4,860 $
       460,211


     Less: Freight and
      handling costs               (53,664)                             (3,743)                                                                    (2,346)                               (59,753)


     Less:
      Depreciation,
      depletion and
      amortization -
      production (1)               (41,722)                             (4,849)                                                                    (6,849)                      (691)    (54,111)


     Less: Accretion on
      asset retirement
      obligations                   (3,502)                             (2,352)                                                                      (770)                      (751)     (7,375)


     Less: Amortization
      of acquired
      intangibles, net              (2,581)                               2,095                                                                       (354)                       (25)       (865)


     Less: Idled and
      closed mine costs             (4,157)                             (1,995)                                                                      (825)                    (3,079)    (10,056)


     Non-GAAP Cost of
      coal sales                            $
       235,151                                             $
              32,744                                                   $
         59,842                 $
       314 $
       328,051


     Tons sold                        3,327                                  617                                                                       1,508                           5        5,457


     Non-GAAP Cost of
      coal sales per
      ton                                     $
       70.68                                              $
              53.07                                                    $
         39.68               $
       62.80   $
       60.12




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.

                                                                           
           
     Three Months Ended March 31, 2020


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                       CAPP -                      NAPP                        All Other   Consolidated
                                                          Thermal


     Coal revenues                          $
        362,403                                              $
              38,743                            $
          66,907                   $
            314  $
       468,367


     Less: Total Cost
      of coal sales
      (per table above)           (340,777)                              (43,588)                                          (70,986)                       (4,860)    (460,211)


     GAAP Coal margin                        $
        21,626                                             $
              (4,845)                          $
          (4,079)                 $
         (4,546)   $
       8,156


     Tons sold                        3,327                                    617                                              1,508                              5         5,457


     GAAP Coal margin
      per ton                                  $
        6.50                                              $
              (7.85)                           $
          (2.70)                $
         (909.20)    $
       1.49




     GAAP Coal margin                        $
        21,626                                             $
              (4,845)                          $
          (4,079)                 $
         (4,546)   $
       8,156


     Add: Depreciation,
      depletion and
      amortization -
      production (1)                 41,722                                  4,849                                              6,849                            691        54,111


     Add: Accretion on
      asset retirement
      obligations                     3,502                                  2,352                                                770                            751         7,375


     Add: Amortization
      of acquired
      intangibles, net                2,581                                (2,095)                                               354                             25           865


     Add: Idled and
      closed mine costs               4,157                                  1,995                                                825                          3,079        10,056


     Non-GAAP Coal
      margin                                 $
        73,588                                               $
              2,256                             $
          4,719  
              $                    $
       80,563


     Tons sold                        3,327                                    617                                              1,508                              5         5,457


     Non-GAAP Coal
      margin per ton                          $
        22.12                                                $
              3.66                              $
          3.13  
              $                     $
       14.76




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.

                                                                         
           
     Three Months Ended June 30, 2020


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                     NAPP                       All Other   Consolidated
                                                         Thermal


     Coal revenues                          $
       316,319                                            $
              36,720                          $
         57,499                   $
        76  $
        410,614


     Less: Freight and
      handling
      fulfillment
      revenues                     (54,852)                             (4,634)                                          (5,492)                                (64,978)


     Non-GAAP Coal
      revenues                              $
       261,467                                            $
              32,086                          $
         52,007                   $
        76  $
        345,636


     Tons sold                        3,204                                  648                                             1,294                           1         5,147


     Non-GAAP Coal
      sales realization
      per ton                                 $
       81.61                                             $
              49.52                           $
         40.19                $
        76.00    $
        67.15




     Cost of coal sales
      (exclusive of
      items shown
      separately below)                     $
       297,169                                            $
              35,709                          $
         48,732                $
        1,669  $
        383,279


     Depreciation,
      depletion and
      amortization -
      production (1)                 38,800                                7,260                                             2,172                         694        48,926


     Accretion on asset
      retirement
      obligations                     3,517                                2,267                                               769                         751         7,304


     Amortization of
      acquired
      intangibles, net                2,759                                (903)                                              215                          25         2,096


     Total Cost of coal
      sales                                 $
       342,245                                            $
              44,333                          $
         51,888                $
        3,139  $
        441,605


     Less: Freight and
      handling costs               (54,852)                             (4,634)                                          (5,492)                                (64,978)


     Less:
      Depreciation,
      depletion and
      amortization -
      production (1)               (38,800)                             (7,260)                                          (2,172)                      (694)     (48,926)


     Less: Accretion on
      asset retirement
      obligations                   (3,517)                             (2,267)                                            (769)                      (751)      (7,304)


     Less: Amortization
      of acquired
      intangibles, net              (2,759)                                 903                                             (215)                       (25)      (2,096)


     Less: Idled and
      closed mine costs             (3,906)                             (1,670)                                            (566)                    (1,669)      (7,811)


     Non-GAAP Cost of
      coal sales                            $
       238,411                                            $
              29,405                          $
         42,674  
              $              $
        310,490


     Tons sold                        3,204                                  648                                             1,294                           1         5,147


     Non-GAAP Cost of
      coal sales per
      ton                                     $
       74.41                                             $
              45.38                           $
         32.98  
              $                $
        60.32




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.

                                                                    
            
               Three Months Ended June 30, 2020


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                           CAPP -                                      NAPP                              All Other              Consolidated
                                                            Thermal


     Coal revenues                           $
         316,319                                                                $
         36,720                       $
          57,499                                 $
              76     $
            410,614


     Less: Total Cost
      of coal sales
      (per table above)           (342,245)                                    (44,333)                                                  (51,888)                   (3,139)             (441,605)


     GAAP Coal margin                       $
         (25,926)                                                              $
         (7,613)                       $
          5,611                             $
             (3,063)   $
            (30,991)


     Tons sold                        3,204                                          648                                                      1,294                          1                  5,147


     GAAP Coal margin
      per ton                                 $
         (8.09)                                                              $
         (11.75)                        $
          4.34                          $
             (3,063.00)     $
            (6.02)




     GAAP Coal margin                       $
         (25,926)                                                              $
         (7,613)                       $
          5,611                             $
             (3,063)   $
            (30,991)


     Add: Depreciation,
      depletion and
      amortization -
      production (1)                 38,800                                        7,260                                                      2,172                        694                 48,926


     Add: Accretion on
      asset retirement
      obligations                     3,517                                        2,267                                                        769                        751                  7,304


     Add: Amortization
      of acquired
      intangibles, net                2,759                                        (903)                                                       215                         25                  2,096


     Add: Idled and
      closed mine costs               3,906                                        1,670                                                        566                      1,669                  7,811


     Non-GAAP Coal
      margin                                  $
         23,056                                                                 $
         2,681                        $
          9,333                                 $
              76      $
            35,146


     Tons sold                        3,204                                          648                                                      1,294                          1                  5,147


     Non-GAAP Coal
      margin per ton                            $
         7.20                                                                  $
         4.14                         $
          7.21                              $
              76.00        $
            6.83




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.

                                                                          
           
     Three Months Ended June 30, 2019


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                      NAPP                       All Other   Consolidated
                                                         Thermal


     Coal revenues                          $
       494,093                                             $
              81,701                          $
       78,034  
              $             $
       653,828


     Less: Freight and
      handling
      fulfillment
      revenues                     (67,728)                              (8,190)                                          (1,794)                              (77,712)


     Non-GAAP Coal
      revenues                              $
       426,365                                             $
              73,511                          $
       76,240  
              $             $
       576,116


     Tons sold                        3,429                                 1,189                                             1,747                                  6,365


     Non-GAAP Coal
      sales realization
      per ton                                $
       124.34                                              $
              61.83                           $
       43.64  
              $               $
       90.51




     Cost of coal sales
      (exclusive of
      items shown
      separately below)                     $
       369,703                                             $
              69,932                          $
       56,433                  $
       678  $
       496,746


     Depreciation,
      depletion and
      amortization -
      production (1)                 38,829                                16,502                                             6,522                       609        62,462


     Accretion on asset
      retirement
      obligations                     2,327                                 2,666                                             1,016                       838         6,847


     Amortization of
      acquired
      intangibles, net                3,870                               (4,213)                                                                                  (343)


     Total Cost of coal
      sales                                 $
       414,729                                             $
              84,887                          $
       63,971                $
       2,125  $
       565,712


     Less: Freight and
      handling costs               (67,728)                              (8,190)                                          (1,794)                              (77,712)


     Less:
      Depreciation,
      depletion and
      amortization -
      production (1)               (38,829)                             (16,502)                                          (6,522)                    (609)     (62,462)


     Less: Accretion on
      asset retirement
      obligations                   (2,327)                              (2,666)                                          (1,016)                    (838)      (6,847)


     Less: Amortization
      of acquired
      intangibles, net              (3,870)                                4,213                                                                                     343


     Less: Idled and
      closed mine costs             (2,165)                                (567)                                            (733)                    (886)      (4,351)


     Less: Cost impact
      of coal inventory
      fair value
      adjustment (2)                (1,033)                                                                                                                     (1,033)


     Non-GAAP Cost of
      coal sales                            $
       298,777                                             $
              61,175                          $
       53,906                $
       (208) $
       413,650


     Tons sold                        3,429                                 1,189                                             1,747                                  6,365


     Non-GAAP Cost of
      coal sales per
      ton                                     $
       87.13                                              $
              51.45                           $
       30.86  
              $               $
       64.99




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.



              
                (2)              The cost impact of the coal
                                               inventory fair value adjustment
                                               as a result of the Alpha Merger
                                               was completed during the three
                                               months ended June 30, 2019.

                                                                          
           
     Three Months Ended June 30, 2019


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                      NAPP                        All Other   Consolidated
                                                         Thermal


     Coal revenues                          $
       494,093                                              $
              81,701                           $
         78,034   
              $                 $
       653,828


     Less: Total Cost
      of coal sales
      (per table above)           (414,729)                             (84,887)                                          (63,971)                     (2,125)     (565,712)


     GAAP Coal margin                        $
       79,364                                             $
              (3,186)                          $
         14,063                  $
        (2,125)  $
       88,116


     Tons sold                        3,429                                 1,189                                              1,747                                      6,365


     GAAP Coal margin
      per ton                                 $
       23.14                                              $
              (2.68)                            $
         8.05   
              $                   $
       13.84




     GAAP Coal margin                        $
       79,364                                             $
              (3,186)                          $
         14,063                  $
        (2,125)  $
       88,116


     Add: Depreciation,
      depletion and
      amortization -
      production (1)                 38,829                                16,502                                              6,522                          609         62,462


     Add: Accretion on
      asset retirement
      obligations                     2,327                                 2,666                                              1,016                          838          6,847


     Add: Amortization
      of acquired
      intangibles, net                3,870                               (4,213)                                                                                       (343)


     Add: Idled and
      closed mine costs               2,165                                   567                                                733                          886          4,351


     Add: Cost impact
      of coal inventory
      fair value
      adjustment (2)                  1,033                                                                                                                             1,033


     Non-GAAP Coal
      margin                                $
       127,588                                              $
              12,336                           $
         22,334                    $
          208  $
       162,466


     Tons sold                        3,429                                 1,189                                              1,747                                      6,365


     Non-GAAP Coal
      margin per ton                          $
       37.21                                               $
              10.38                            $
         12.78   
              $                   $
       25.52




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.



              
                (2)              The cost impact of the coal
                                               inventory fair value adjustment
                                               as a result of the Alpha Merger
                                               was completed during the three
                                               months ended June 30, 2019.

                                                                           
          
     Six Months Ended June 30, 2020


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                     NAPP                       All Other   Consolidated
                                                         Thermal


     Coal revenues                          $
       678,722                                            $
              75,463                          $
         124,406                  $
       390 $
       878,981


     Less: Freight and
      handling
      fulfillment
      revenues                    (108,516)                              (8,377)                                         (7,838)                                (124,731)


     Non-GAAP Coal
      revenues                              $
       570,206                                            $
              67,086                          $
         116,568                  $
       390 $
       754,250


     Tons sold                        6,531                                 1,265                                            2,802                            6        10,604


     Non-GAAP Coal
      sales realization
      per ton                                 $
       87.31                                             $
              53.03                            $
         41.60                $
       65.00   $
       71.13




     Cost of coal sales
      (exclusive of
      items shown
      separately below)                     $
       590,141                                            $
              74,191                          $
         111,745                $
       5,062 $
       781,139


     Depreciation,
      depletion and
      amortization -
      production (1)                 80,522                                12,109                                            9,021                        1,385       103,037


     Accretion on asset
      retirement
      obligations                     7,019                                 4,619                                            1,539                        1,502        14,679


     Amortization of
      acquired
      intangibles, net                5,340                               (2,998)                                             569                           50         2,961


     Total Cost of coal
      sales                                 $
       683,022                                            $
              87,921                          $
         122,874                $
       7,999 $
       901,816


     Less: Freight and
      handling costs              (108,516)                              (8,377)                                         (7,838)                                (124,731)


     Less:
      Depreciation,
      depletion and
      amortization -
      production (1)               (80,522)                             (12,109)                                         (9,021)                     (1,385)    (103,037)


     Less: Accretion on
      asset retirement
      obligations                   (7,019)                              (4,619)                                         (1,539)                     (1,502)     (14,679)


     Less: Amortization
      of acquired
      intangibles, net              (5,340)                                2,998                                            (569)                        (50)      (2,961)


     Less: Idled and
      closed mine costs             (8,063)                              (3,665)                                         (1,391)                     (4,748)     (17,867)


     Non-GAAP Cost of
      coal sales                            $
       473,562                                            $
              62,149                          $
         102,516                  $
       314 $
       638,541


     Tons sold                        6,531                                 1,265                                            2,802                            6        10,604


     Non-GAAP Cost of
      coal sales per
      ton                                     $
       72.51                                             $
              49.13                            $
         36.59                $
       52.33   $
       60.22




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.

                                                                 
            
              Six Months Ended June 30, 2020


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                        CAPP -                                   NAPP                                 All Other             Consolidated
                                                         Thermal


     Coal revenues                          $
       678,722                                                              $
          75,463                       $
         124,406                               $
              390     $
           878,981


     Less: Total Cost
      of coal sales
      (per table above)           (683,022)                                (87,921)                                                  (122,874)                   (7,999)            (901,816)


     GAAP Coal margin                       $
       (4,300)                                                           $
          (12,458)                        $
         1,532                            $
             (7,609)   $
           (22,835)


     Tons sold                        6,531                                    1,265                                                       2,802                         6                10,604


     GAAP Coal margin
      per ton                                $
       (0.66)                                                             $
          (9.85)                         $
         0.55                         $
             (1,268.17)     $
           (2.15)




     GAAP Coal margin                       $
       (4,300)                                                           $
          (12,458)                        $
         1,532                            $
             (7,609)   $
           (22,835)


     Add: Depreciation,
      depletion and
      amortization -
      production (1)                 80,522                                   12,109                                                       9,021                     1,385               103,037


     Add: Accretion on
      asset retirement
      obligations                     7,019                                    4,619                                                       1,539                     1,502                14,679


     Add: Amortization
      of acquired
      intangibles, net                5,340                                  (2,998)                                                        569                        50                 2,961


     Add: Idled and
      closed mine costs               8,063                                    3,665                                                       1,391                     4,748                17,867


     Non-GAAP Coal
      margin                                 $
       96,644                                                               $
          4,937                        $
         14,052                                $
              76     $
           115,709


     Tons sold                        6,531                                    1,265                                                       2,802                         6                10,604


     Non-GAAP Coal
      margin per ton                          $
       14.80                                                                $
          3.90                          $
         5.01                             $
              12.67       $
           10.91




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.

                                                                            
         
     Six Months Ended June 30, 2019


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                    NAPP                        All Other   Consolidated
                                                         Thermal


     Coal revenues                          $
       966,584                                           $
              144,640                          $
         149,564  
              $             $
         1,260,788


     Less: Freight and
      handling
      fulfillment
      revenues                    (132,629)                             (13,814)                                         (2,469)                                (148,912)


     Non-GAAP Coal
      revenues                              $
       833,955                                           $
              130,826                          $
         147,095  
              $             $
         1,111,876


     Tons sold                        6,672                                 2,181                                            3,399                                    12,252


     Non-GAAP Coal
      sales realization
      per ton                                $
       124.99                                             $
              59.98                            $
         43.28  
              $                 $
         90.75




     Cost of coal sales
      (exclusive of
      items shown
      separately below)                     $
       745,622                                           $
              140,645                          $
         123,995                $
       2,178  $
         1,012,440


     Depreciation,
      depletion and
      amortization -
      production (1)                 75,502                                30,614                                           13,149                        4,120       123,385


     Accretion on asset
      retirement
      obligations                     4,660                                 4,731                                            2,033                        1,655        13,079


     Amortization of
      acquired
      intangibles, net                1,050                               (8,782)                                             706                                   (7,026)


     Total Cost of coal
      sales                                 $
       826,834                                           $
              167,208                          $
         139,883                $
       7,953  $
         1,141,878


     Less: Freight and
      handling costs              (132,629)                             (13,814)                                         (2,469)                                (148,912)


     Less:
      Depreciation,
      depletion and
      amortization -
      production (1)               (75,502)                             (30,614)                                        (13,149)                     (4,120)    (123,385)


     Less: Accretion on
      asset retirement
      obligations                   (4,660)                              (4,731)                                         (2,033)                     (1,655)     (13,079)


     Less: Amortization
      of acquired
      intangibles, net              (1,050)                                8,782                                            (706)                                    7,026


     Less: Idled and
      closed mine costs             (3,986)                                (984)                                         (1,562)                     (2,181)      (8,713)


     Less: Cost impact
      of coal inventory
      fair value
      adjustment (2)                (4,751)                              (3,458)                                                                                  (8,209)


     Non-GAAP Cost of
      coal sales                            $
       604,256                                           $
              122,389                          $
         119,964                  $
       (3)   $
         846,606


     Tons sold                        6,672                                 2,181                                            3,399                                    12,252


     Non-GAAP Cost of
      coal sales per
      ton                                     $
       90.57                                             $
              56.12                            $
         35.29  
              $                 $
         69.10




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.



              
                (2)              The cost impact of the coal
                                               inventory fair value adjustment
                                               as a result of the Alpha Merger
                                               was completed during the three
                                               months ended June 30, 2019.

                                                                             
         
     Six Months Ended June 30, 2019


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                     NAPP                         All Other   Consolidated
                                                         Thermal


     Coal revenues                          $
       966,584                                             $
              144,640                          $
         149,564   
              $                 $
         1,260,788


     Less: Total Cost
      of coal sales
      (per table above)           (826,834)                             (167,208)                                         (139,883)                     (7,953)   (1,141,878)


     GAAP Coal margin                       $
       139,750                                            $
              (22,568)                           $
         9,681                  $
        (7,953)   $
         118,910


     Tons sold                        6,672                                  2,181                                             3,399                                     12,252


     GAAP Coal margin
      per ton                                 $
       20.95                                             $
              (10.35)                            $
         2.85   
              $                      $
         9.71




     GAAP Coal margin                       $
       139,750                                            $
              (22,568)                           $
         9,681                  $
        (7,953)   $
         118,910


     Add: Depreciation,
      depletion and
      amortization -
      production (1)                 75,502                                 30,614                                            13,149                        4,120        123,385


     Add: Accretion on
      asset retirement
      obligations                     4,660                                  4,731                                             2,033                        1,655         13,079


     Add: Amortization
      of acquired
      intangibles, net                1,050                                (8,782)                                              706                                    (7,026)


     Add: Idled and
      closed mine costs               3,986                                    984                                             1,562                        2,181          8,713


     Add: Cost impact
      of coal inventory
      fair value
      adjustment (2)                  4,751                                  3,458                                                                                       8,209


     Non-GAAP Coal
      margin                                $
       229,699                                               $
              8,437                           $
         27,131                    $
            3    $
         265,270


     Tons sold                        6,672                                  2,181                                             3,399                                     12,252


     Non-GAAP Coal
      margin per ton                          $
       34.43                                                $
              3.87                             $
         7.98   
              $                     $
         21.65




              
                (1)              Depreciation, depletion and
                                               amortization -production
                                               excludes the depreciation,
                                               depletion and amortization
                                               related to selling, general and
                                               administrative functions.



              
                (2)              The cost impact of the coal
                                               inventory fair value adjustment
                                               as a result of the Alpha Merger
                                               was completed during the three
                                               months ended June 30, 2019.

                                                                        
            
     Three Months Ended March 31, 2020


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                      NAPP                       All Other   Consolidated
                                                         Thermal


     Non-GAAP Cost
      of coal sales                         $
       235,151                                             $
              32,744                          $
      59,842                 $
       314 $
       328,051


     Less: cost of
      purchased coal
      sold                         (30,334)                               (893)                                                                              (31,227)


     Adjusted cost
      of produced
      coal sold                             $
       204,817                                             $
              31,851                          $
      59,842                 $
       314 $
       296,824


     Produced tons
      sold                            2,964                                  604                                              1,508                        5        5,081


     Adjusted cost
      of produced
      coal sold per
      ton (1)                                 $
       69.10                                              $
              52.73                           $
      39.68               $
       62.80   $
       58.42




              
                (1)              Cost of produced coal sold
                                               per ton for our operations
                                               is calculated as non-GAAP
                                               cost of produced coal sold
                                               divided by produced tons
                                               sold.

                                                                        
          
     Three Months Ended June 30, 2020


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                   NAPP                       All Other   Consolidated
                                                         Thermal


     Non-GAAP Cost
      of coal sales                         $
       238,411                                          $
              29,405                          $
      42,674  
              $  $
       310,490


     Less: cost of
      purchased coal
      sold                         (22,932)                               (9)                                                                              (22,941)


     Adjusted cost
      of produced
      coal sold                             $
       215,479                                          $
              29,396                          $
      42,674  
              $  $
       287,549


     Produced tons
      sold                            2,896                                647                                             1,294                        1         4,838


     Adjusted cost
      of produced
      coal sold per
      ton (1)                                 $
       74.41                                           $
              45.43                           $
      32.98  
              $    $
       59.44




              
                (1)              Cost of produced coal sold
                                               per ton for our operations
                                               is calculated as non-GAAP
                                               cost of produced coal sold
                                               divided by produced tons
                                               sold.

                                                                         
           
     Three Months Ended June 30, 2019


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                     NAPP                       All Other   Consolidated
                                                         Thermal


     Non-GAAP Cost
      of coal sales                         $
       298,777                                            $
              61,175                          $
      53,906              $
     (208) $
       413,650


     Less: cost of
      purchased coal
      sold                         (67,320)                             (2,443)                                                                             (69,763)


     Adjusted cost
      of produced
      coal sold                             $
       231,457                                            $
              58,732                          $
      53,906              $
     (208) $
       343,887


     Produced tons
      sold                            2,819                                1,144                                             1,747                                5,710


     Adjusted cost
      of produced
      coal sold per
      ton (1)                                 $
       82.11                                             $
              51.34                           $
      30.86 
              $            $
       60.23




              
                (1)              Cost of produced coal sold
                                               per ton for our operations
                                               is calculated as non-GAAP
                                               cost of produced coal sold
                                               divided by produced tons
                                               sold.

                                                                        
          
     Six Months Ended June 30, 2020


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                  NAPP                       All Other   Consolidated
                                                         Thermal


     Non-GAAP Cost
      of coal sales                         $
       473,562                                         $
              62,149                          $
       102,516                 $
       314 $
       638,541


     Less: cost of
      purchased coal
      sold                         (53,266)                             (902)                                                                              (54,168)


     Adjusted cost
      of produced
      coal sold                             $
       420,296                                         $
              61,247                          $
       102,516                 $
       314 $
       584,373


     Produced tons
      sold                            5,860                              1,251                                            2,802                          6        9,919


     Adjusted cost
      of produced
      coal sold per
      ton (1)                                 $
       71.72                                          $
              48.96                            $
       36.59               $
       52.33   $
       58.91




              
                (1)              Cost of produced coal sold
                                               per ton for our operations
                                               is calculated as non-GAAP
                                               cost of produced coal sold
                                               divided by produced tons
                                               sold.

                                                                           
         
     Six Months Ended June 30, 2019


                  (In thousands,
                   except for per
                   ton data)      CAPP -Met                      CAPP -                   NAPP                        All Other   Consolidated
                                                         Thermal


     Non-GAAP Cost
      of coal sales                         $
       604,256                                          $
              122,389                          $
       119,964              $
     (3) $
       846,606


     Less: cost of
      purchased coal
      sold                        (146,859)                             (5,327)                                                                             (152,186)


     Adjusted cost
      of produced
      coal sold                             $
       457,397                                          $
              117,062                          $
       119,964              $
     (3) $
       694,420


     Produced tons
      sold                            5,390                                2,088                                            3,399                                 10,877


     Adjusted cost
      of produced
      coal sold per
      ton (1)                                 $
       84.86                                            $
              56.06                            $
       35.29 
              $          $
       63.84




              
                (1)              Cost of produced coal sold
                                               per ton for our operations
                                               is calculated as non-GAAP
                                               cost of produced coal sold
                                               divided by produced tons
                                               sold.

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SOURCE Contura Energy, Inc.