Alpha Metallurgical Resources Reports $2.96 Billion Revenue for 2024, 14.8% Decrease

Alpha Metallurgical Resources, Inc. (AMR) reported total revenues of $2.96 billion for the year ended December 31, 2024, a 14.8% decrease compared to $3.47 billion in 2023. This decline was primarily attributed to a 14.8% decrease in coal revenues, resulting from a 13.5% reduction in metallurgical coal revenues and the cessation of thermal coal mining in August 2023. The decrease in metallurgical coal revenue stemmed from a 16.5% drop in coal sales realization per ton, partially offset by a 3.5% increase in sales volume. Other revenues also decreased by 27.6% to $10.7 million.

Cost of coal sales increased by 4.1% to $2.45 billion in 2024, driven by a 3.7% rise in the average cost per ton. This increase was mainly due to higher freight and handling costs from a higher percentage of export sales and inflationary pressures, partially offset by lower royalties and taxes due to lower coal prices. Selling, general, and administrative expenses decreased by 10.2% to $74 million, primarily due to lower stock compensation and incentive pay. Adjusted EBITDA, a non-GAAP measure, fell by 60.5% to $407.8 million, reflecting the decreased coal margin and lower sales realization per ton.

During 2024, AMR initiated development of the Kingston Wildcat underground mine in West Virginia, projected to begin production in late 2025. In November 2024, the Elk Run mining complex was temporarily idled due to softening metallurgical coal prices and higher costs at the Checkmate Powellton mine. The company also completed its transition to a pure-play metallurgical coal producer in August 2023 with the closure of its last thermal coal mine. In 2023, production commenced at the Rolling Thunder and Checkmate Powellton mines. Further, the company acquired additional coal trucks and equipment in the first quarter of 2023 and purchased a mining equipment component manufacturing and rebuild business in December 2022.

As of December 31, 2024, AMR employed approximately 4,040 full-time employees, with 74% being hourly workers. The company reported an overall non-fatal days lost safety incident rate 46% better than the U.S. industry average. The company's export shipments served customers in 26 countries in 2024, with Asia representing the largest export market (approximately 43% of export coal revenues). Metallurgical coal accounted for approximately 97% of total coal revenues in 2024. Approximately 78% of coal revenues were derived from international sales.

AMR's outlook for the coming months anticipates challenging market conditions due to depressed steel demand and uncertainties surrounding geopolitical and economic factors. The company expects capital expenditures between $152 million and $182 million in 2025. The company also notes ongoing legal proceedings, including a lawsuit challenging a New York state law imposing charges on fossil fuel companies, and the potential impact of the Supreme Court's decision on Chevron deference. The company also highlights the recently implemented respirable crystalline silica final rule from MSHA and the SEC's climate-related disclosure rules, which are currently stayed.