Alpha Metallurgical Resources, Inc. · NYSE:AMR
Alpha Metallurgical Resources — Contura Energy — Deutsche Bank 2019 Global Industrials & Materials Summit
18 slides from Alpha Metallurgical Resources's conference presentation, Jun 5, 2019
Slide 1: Contura Energy: Investor Presentation
Exhibit 99.1 Contura Energy: Investor Presentation Deutsche Bank 2019 Global Industrials & Materials Summit, June 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: Investment Highlights
Investment Highlights Operational Sales and Marketing Financial • Largest U.S. met coal producer • Advantaged sales and logistics • Well-capitalized balance sheet • High quality, diverse met mine platform serving domestic and • Manageable legacy liabilities portfolio international customers • Signif
Slide 4: Contura Snapshot
Contura Snapshot Prep Plants ▪ Largest met coal producer in the United States with a Pennsylvania premier, low-cost NAPP thermal coal operation and a high Export Terminal quality CAPP thermal business ▪ Operating footprint of 12 preparation plants with 23 Maryland underground mines and 9 surface min
Slide 5: Contura – Who We Are
Contura – Who We Are Responsible Environmental Stewardship ▪ Strong 99.9% compliance rate with all federal and state water quality standards since 2016 ▪ Reclaimed ~3,500 acres and planted ~2.0 million trees since 2016 ▪ Received numerous environmental awards for reclamation, mine construction and m
Slide 6: Contura's Strategic Focus
Contura’s Strategic Focus ▪ 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 Optimize ▪ Evaluate existing assets
Slide 7: Well-defined Capital Return Program
Well-defined Capital Return Program(1) ▪ Authorized return of capital up to $250 million ▪ No restricted payment limitations at total leverage of 3.0x or under ▪ Program can be executed as soon as the term loan refinancing closes, at the discretion of the board ▪ Capital return could be in form of s
Slide 8: Expected Tax Refunds and Restricted Cash Releases
Expected Tax Refunds and Restricted Cash Releases Significant Tax Benefits Expected Following Merger 2019 2020 2021 2022 2023 (US$ Millions) AMT Credit Monetization(1) - $68.8 $34.4 $17.2 $17.2 172(f) 10 Year NOL Carryback(2) - - 43.8 - - Total Expected Cash Refunds - $68.8 $78.2 $17.2 $17.2 Gross F
Slide 9: Well Capitalized Balance Sheet with Manageable Legacy Liabilities
Well Capitalized Balance Sheet with Manageable Legacy Liabilities Strong Capitalization, backed with nearly $500 million in total cash(1) US$ Millions Mar. 31, 2019 US$ Millions Mar. 31, 2019 New Term Loan(2) $562 Workers’ Comp, Black Lung & Insurance(3) $213 LCC Notes 74 Pension Obligation 179 Othe
Slide 10: Largest and Most Diverse Producer of Met Coal in the U.S.
Largest and Most Diverse Producer of Met Coal in the U.S. Largest Public Met Producer in the U.S.(1) Broad, High Quality Product Portfolio 2018 Sales Volumes (million tons) 2018 Met Volumes (2) High Vol 11.6 Mid Vol Low Vol LV 7% HVA 40% 7.9 MV 7.7 7.6 28% HVB 25% 2.5 2.3 75% of Contura’s production
Slide 11: Substantial Organic Growth Opportunities
Substantial Organic Growth Opportunities Overview of Metallurgical Growth Projects Est. Production Timing Quality (mm tons / year) Road Fork 52 0.6 – 0.8(1) Q4 2019 LV Lynn Branch 1.0 – 1.2(1) Q2 2020 HVB+ Deep Mine 42 1.0 – 1.5 TBD MV Freeport 2.5 – 3.5 TBD HVB Deep Mine 42 Lynn Branch Project ▪ 20
Slide 12: T&L Platform Provides Global Customer Access
T&L Platform Provides Global Customer Access Trading & Logistics Overview Logistics Access Coal River CSX NS Prep Plant Type (1) Barge ▪ Contura is among the largest exporters of U.S. Cumberland T ✓ ✓ ✓ metallurgical coal McClure/Toms Creek M ✓ ✓ Bandmill M ✓ Delbarton T ✓ ▪ Expect to purchase betwe
Slide 13: DTA Bolsters Export Logistics & Strategic Positioning
DTA Bolsters Export Logistics & Strategic Positioning Facility Description ▪ Dominion Terminal Associates (DTA) is a world-class coal export terminal facility located in Newport News, Virginia ▪ DTA is a strategic cornerstone of Contura’s Trading & Logistics business, providing excellent coal blendi
Slide 14: Favorable Market Dynamics Support Long-Term Pricing
Favorable Market Dynamics Support Long-Term Pricing ▪ Demand shows modest growth globally, driven by India where expected steel demand is forecast to grow by more than 7% annually in 2019 and 2020(1) ▪ Another key market for Contura, Central & South America, is forecast to grow at an accelerating ra
Slide 15: Metallurgical Coal Prices Remain Firm
Q4Metallurgical 2018 Metallurgical Coal Prices Sales Remain Comment Firm Aussie Premium LV ($/tonne) Platts US HVA ($/tonne) Platts US LV ($/tonne) Platts US HVB ($/tonne) $275 260 $250 242 239 229 227 221 $225 217 217 212 207 208 203 204 196 199 199 199 $200 192 188 188 185 182 185 172 173 175 172
Slide 16: Appendix
Appendix June 2019 16
Slide 17: Overview of Select 2019-2023 Estimated Cash Obligations
Overview of Select 2019-2023 Estimated Cash Obligations as of 12/31/18 Payments to decline significantly over the next several years once payments for Contingent Revenue and LCC Obligations conclude in 2023 2019 2020 2021 2022 2023 (US$ Millions) Acquisition Related Obligations $17.9 $20.8 $7.9 $4.2
Slide 18: 2019 Operating and Financial Guidance
2019 Operating and Financial Guidance (as of 5/15/19) Shipments (million tons) Low High CAPP – Metallurgical 12.2 12.8 CAPP – Thermal 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) Averag
Contura Energy — Deutsche Bank 2019 Global Industrials & Materials Summit on 6ix