Alpha Metallurgical Resources, Inc. · NYSE:AMR
Alpha Metallurgical Resources — Contura Energy — Non-Deal Roadshow (January 2019)
21 slides from Alpha Metallurgical Resources's roadshow presentation, Jan 29, 2019
Slide 1: Contura Energy: Non-Deal Roadshow January 2019
Exhibit 99.1 Contura Energy: Non-Deal Roadshow January 2019 1
Slide 2: Forward Looking Statements
Forward Looking Statements This document 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. Th
Slide 3: Contura Snapshot
Contura Snapshot Prep Plants ▪ Largest met coal producer in the United States with a Pennsylvania premier, low-cost NAPP steam coal operation and a high Export Terminal quality CAPP steam business ▪ Operating footprint of 12 preparation plants with 23 Maryland underground mines and 9 surface mines ▪
Slide 4: Update on Alpha Integration Status / Timing
Update on Alpha Integration Status / Timing 1) Integration of New Management Team and Board ✓ 2) Combination of Coal Blending and Marketing Efforts Across Organization ✓ 3) IT, Accounting and HR Integration ✓ 4) Rightsizing of Corporate Overhead across Combined Platform Q1 2019 5) Implementation of
Slide 5: Contura's Strategic Focus
Contura’s Strategic Focus ▪ 1 Expand our operational footprint through strategic investments in existing reserves and potential bolt-on Expand the acquisitions Business ▪ Focus on metallurgical opportunities that have either geographic or portfolio quality synergies 2 Optimize ▪ Evaluate existing as
Slide 6: Investment Highlights
Investment Highlights 1) Largest and Most Diverse U.S. Metallurgical Coal Producer 2) Portfolio of Long-Lived Mines and Substantial Organic Growth Opportunities 3) Advantaged Sales & Logistics Platform Serving Both Domestic and International Markets 4) Well Positioned to Grow Through Accretive Acqui
Slide 7: Largest and Most Diverse Producer of Met Coal in the U.S.
1 Largest and Most Diverse Producer of Met Coal in the U.S. Largest Public Met Producer in the U.S.(1) Broad, High Quality Product Portfolio 2017A Sales Volumes (million tons) 2018E Volumes(4) High Vol Met: 48% Mid Vol 11.9 21% HVA 26% Low Vol HVB PCI MV 13% LV CAPP steam 27% 8% NAPP steam 7.7 5% 6.
Slide 8: Long Mine Lives and Substantial Organic Growth Opportunities
2 Long Mine Lives and Substantial Organic Growth Opportunities Met Reserve Life of Public U.S. Met Coal Producers Implied Reserve Life (Years)(1) 60+ 56 31 28 18 12 Peer 5 Contura Peer 1 Peer 4 Peer 3 Peer 2 Overview of Metallurgical Growth Projects Est. Production Development Project (2) Timing Qua
Slide 9: Advantaged Sales & Logistics Platform
3 Advantaged Sales & Logistics Platform ▪ Contura’s Sales & Logistics platform is anchored by its stake in the world-class Dominion Terminal Associates, which facilitates access to international coal markets, reaching South American, European, Middle Eastern, Asian and Indian customers (60%-75% of m
Slide 10: Well Positioned to Grow Through Accretive Acquisitions
4 Well Positioned to Grow Through Accretive Acquisitions ▪ Contura is well positioned to Contura Met Prep Plants Regional Met Competitor Complexes expand its metallurgical operating position in the Appalachia region due to its geographic footprint, financial flexibility and market knowledge gained f
Slide 11: Proven Track Record of Returning Capital to Shareholders
5 Proven Track Record of Returning Capital to Shareholders ▪ On July 7, 2017, Contura announced that it would pay a special dividend of $8.997 per share, Dividend equal to $100.7 million(1) ▪ On September 26, 2017, Contura announced that it commenced a modified dutch auction tender offer in a price
Slide 12: Favorable Market Dynamics Support Long-Term Pricing
6 Favorable Market Dynamics Support Long-Term Pricing Global Met Prices Continue to Show Strength Evolution of Atlantic Met Coal Prices (US$ / tonne) (US$ / tonne) $300 $300 $250 $250 $200 $195 $187 $200 $195 $184 $150 $160 $150 $100 $100 $50 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 US Low Volatile
Slide 13: Well Capitalized Balance Sheet with Manageable Legacy Liabilities
7 Well Capitalized Balance Sheet with Manageable Legacy Liabilities ▪ Strong Capitalization(1) Run rate cash flow obligations of legacy liabilities ~$60 million ▪ Contura’s Acquisition Related Liabilities and Alpha’s Contingent US$ Millions June 30, 2018 Revenue Obligation expire in 2021 and 2023, r
Slide 14: Highly Attractive and Opportunistic Time to Invest in Contura
8 Highly Attractive and Opportunistic Time to Invest in Contura Trading Multiples Relative Discount Peers(1) S&P 500 MSCI Metals & Mining Index 2019E 28% 61% 36% 9.7x 2020E 35% 40% 1% 9.0x 5.4x 5.9x 5.5x 4.6x 4.6x 4.2x 3.8x 3.8x 3.1x 3.5x Contura Peabody Arch Warrior S&P 500 MSCI Metals & Mining Ind
Slide 15: 2019 Operating and Financial Guidance
2019 Operating and Financial Guidance (January 22, 2019) Shipments (million tons) Low High CAPP – Metallurgical 12.2 12.8 CAPP – Steam 4.6 5.2 NAPP 6.8 7.2 Total Captive 23.6 25.2 Trading & Logistics – Metallurgical 1.0 1.5 Total Shipments 24.6 26.7 Committed / Priced Volumes(1) % Committed(2) Avera
Slide 16: Appendix
Appendix January 2019 16
Slide 17: Overview of Select 2019-2022 Estimated Cash Obligations
Overview of Select 2019-2022 Estimated Cash Obligations as of 9/30/18 Payments to decline significantly over the next several years dropping to ~$60 million annually once payments for Contingent Revenue and LCC Obligations conclude in 2023 Contura Alpha Combined (US$ Millions) 2019 2020 2021 2022 20
Slide 18: Expected Tax Refunds and Restricted Cash Releases
Expected Tax Refunds and Restricted Cash Releases Significant Tax Benefits Following Merger ▪ 2018 Tax Year AMT Credit Monetization: ~$50 million cash refund expected in Q4 2019 – Q1 2020 ▪ 2019-2021 Tax Year AMT Credit Monetization: Potential to reduce tax liabilities otherwise payable or result in
Slide 19: Reconciliation of Combined Net Income to Adjusted EBITDA
Reconciliation of Combined Net Income to Adjusted EBITDA The following table represents the combination of Contura and Alpha’s reconciliations of Net Income to Adjusted EBITDA which has been calculated without making transaction and other adjustments. Therefore it is not in accordance with the requi
Slide 20: Reconciliation of Contura Net Income to Adjusted EBITDA
Reconciliation of Contura Net Income to Adjusted EBITDA In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with
Slide 21: Reconciliation of Alpha Net Income to Adjusted EBITDA
Reconciliation of Alpha Net Income to Adjusted EBITDA In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.