ARCH COAL INC 
By ST. LOUIS, April 22, 2014 /PRNewswire/ -- Arch Coal, Inc. (NYSE: ACI) today reported a net loss of $124.1 million, or $0.59 per diluted share, in the first quarter of 2014. After excluding non-cash accretion of acquired coal supply agreements, Arch's first quarter 2014 adjusted net loss was $126.5 million, or $0.60 per diluted share, compared with an adjusted net loss of $71.8 million, or $0.34 per diluted share, in the prior-year quarter. Revenues totaled $736 million in the first quarter of 2014, and adjusted earnings before interest, taxes, depreciation, depletion and amortization ("EBITDA") represented $27.6 million.
Earnings Highlights
-------------------
Quarter Ended
In $ millions, except per
share data 3/31/14 3/31/13
------------------------- ------- -------
Revenues (1) $736.0 $737.4
Loss from Operations (1) (73.1) (51.4)
Net Loss (124.1) (70.0)
Diluted LPS (0.59) (0.33)
----------- ----- -----
Adjusted Net Loss (2) (126.5) (71.8)
Adjusted Diluted LPS (2) (0.60) (0.34)
Adjusted EBITDA (2) $27.6 $83.6
1/-Excludes discontinued
operations.
2/- Defined and reconciled under "Reconciliation of non-GAAP
measures."
"As expected, our first quarter results reflect a challenging global metallurgical coal market and the impact of rail performance issues," said John W. Eaves, Arch's president and chief executive officer. "At Arch, we are taking proactive steps to manage our controllable costs and capital spending, reduce our cash outflows and preserve our liquidity. Moreover, we are reducing our expected metallurgical coal sales volume by approximately 1 million tons for 2014 in response to soft market conditions and concentrating our metallurgical production in our lowest-cost assets in Appalachia. Based on the smooth start-up of the Leer longwall mine in the first quarter of 2014, we also are lowering our full year cost-per-ton guidance in Appalachia."
"At the same time, we are encouraged by the strengthening dynamics in the U.S. thermal market," added Eaves. "Positive electric generation and coal demand trends to date, declining U.S. coal generator stockpiles and higher competing fuel prices should provide the catalyst for improvement in our domestic thermal coal operations during 2014."
Liquidity
As of March 31, 2014, Arch had a total liquidity position of $1.4 billion, with more than $1.1 billion of that in cash and short-term investments. The company continues to have no borrowings under its revolving credit facility and has no debt maturities until 2018.
Consistent with the company's strategy to re-align its asset portfolio, Arch divested non-strategic assets in Appalachia during the first quarter of 2014, including its Hazard thermal mining complex in Kentucky and its ADDCAR equipment subsidiary. Total consideration for these divestitures was $46 million. As a result of these sales, Arch recorded a pre-tax gain of $13.8 million in the first quarter of 2014, which is included in other net operating income. Offsetting this gain in that line, Arch recorded a charge of $12.5 million for the three months ended March 31, 2014, associated with minimum port and rail commitments for export tonnage.
Core Values
Arch subsidiaries earned 12 safety and environmental awards in the three months ended March 31, 2014. Most notably, Arch's Leer mine attained the 2013 Greenlands Award, West Virginia's top environmental honor in the U.S. coal industry. This honor marks the tenth time that an Arch subsidiary has earned this prestigious award since 2001. In addition, the Coal-Mac operation completed 2 million employee hours without a lost-time safety incident in March 2014. Furthermore, five of Arch's operations and facilities attained a Perfect Zero - a dual goal of operating without a reportable safety incident or environmental violation - for the three months ended March 31, 2014.
"We commend our employees for achieving such safety and environmental accomplishments, and for their ongoing commitment to living our core values," said Paul A. Lang, Arch's executive vice president and chief operating officer. "We are constantly striving for improvement at all of our operations, with an ultimate goal of a Perfect Zero across our entire operating platform each and every quarter."
Operational Results
"During the first quarter of 2014, our Appalachian region, anchored by the Leer mine, delivered its strongest cost performance since 2011, prompting a reduction in our 2014 expected cost per ton for that region," said Lang. "In addition, increased domestic thermal demand has resulted in an improving outlook for the West Elk mine in Colorado, prompting us to reduce our 2014 cost per ton for that region. In the Powder River Basin, we remain focused on achieving further improvement during 2014 as rail congestion eases and customer demand climbs."
Arch Coal, Inc.
1Q14 4Q13 1Q13
---- ---- ----
Tons
sold
(in
millions) 31.4 32.3 31.9
Average
sales
price
per
ton $20.09 $19.91 $20.45
Cash
cost
per
ton $18.39 $18.10 $17.42
Cash
margin
per
ton $1.70 $1.81 $3.03
Total
operating
cost
per
ton $21.70 $21.10 $20.82
Operating
margin
per
ton ($1.61) ($1.19) ($0.37)
Consolidated results may not tie to regional
breakout due to exclusion of other assets,
rounding.
Operating
results
exclude
former
Canyon Fuel
subsidiary.
Cash cost per ton is defined and reconciled
under "Reconciliation of non-GAAP measures."
Operating cost per ton is the
sum of cash costs and
depreciation, depletion
and amortization expense divided by tons sold.
----------------------------------------------
Compared with the fourth quarter of 2013, consolidated cash margin per ton declined in the first quarter of 2014, partly due to lower earned margins in the company's Bituminous Thermal segment. Consolidated sales price per ton increased slightly over the same time period, but was offset by a 2 percent increase in consolidated cash cost per ton.
Powder River Basin
1Q14 4Q13 1Q13
---- ---- ----
Tons sold
(in
millions) 25.7 26.4 26.6
Average
sales
price per
ton $12.73 $12.28 $12.68
Cash cost
per ton $11.45 $11.37 $10.65
Cash margin
per ton $1.28 $0.91 $2.03
Total
operating
cost per
ton $12.98 $12.90 $12.24
Operating
margin per
ton ($0.25) ($0.62) $0.44
Cash cost per ton is defined and reconciled under
"Reconciliation of non-GAAP measures."
Operating cost per ton is the sum of cash
costs and depreciation, depletion
and amortization expense
divided by tons sold.
------------------------
In the Powder River Basin, first quarter 2014 cash margin increased more than 40 percent to $1.28 per ton versus the fourth quarter of 2013. The improvement was driven by a 4 percent increase in average sales price per ton, reflecting higher pricing on contracted and market-based tons. Cash cost per ton increased slightly versus the prior-quarter period, due to the impact of lower shipment levels resulting from continued rail service issues.
Appalachia
1Q14 4Q13 1Q13
---- ---- ----
Tons
sold
(in
millions) 3.6 3.5 3.4
Average
sales
price
per
ton $67.70 $69.54 $74.76
Cash
cost
per
ton $65.48 $67.41 $67.16
Cash
margin
per
ton $2.22 $2.13 $7.60
Total
operating
cost
per
ton $80.80 $80.36 $83.50
Operating
margin
per
ton ($13.10) ($10.82) ($8.74)
Cash cost per ton is defined and reconciled under
"Reconciliation of non-GAAP measures."
Operating cost per ton is the sum of cash
costs and depreciation, depletion
and amortization expense
divided by tons sold.
------------------------
In Appalachia, Arch earned a cash margin of $2.22 per ton in the first quarter of 2014, representing a 4 percent increase compared with the fourth quarter of 2013. Average sales price per ton decreased in the first quarter of 2014 versus the prior-quarter period, driven by lower pricing on metallurgical tons. Offsetting this decline, cash cost decreased by $1.93 per ton over the same time period, due to the addition of the Leer longwall and improving geological conditions at Mountain Laurel.
Bituminous
Thermal
1Q14 4Q13 1Q13
---- ---- ----
Tons sold (in
millions) 2.1 2.4 1.9
Average sales
price per ton $28.64 $32.17 $32.39
Cash cost per
ton $22.64 $20.65 $23.50
Cash margin per
ton $6.00 $11.52 $8.89
Total operating
cost per ton $27.17 $25.51 $29.15
Operating margin
per ton $1.47 $6.66 $3.24
Operating results exclude
former Canyon Fuel subsidiary.
Cash cost per ton is defined and reconciled under
"Reconciliation of non-GAAP measures."
Operating cost per ton is the sum of cash
costs and depreciation, depletion
and amortization expense
divided by tons sold.
------------------------
In the Bituminous Thermal segment, Arch earned a cash margin of $6.00 per ton in the first quarter of 2014 compared with $11.52 per ton in the fourth quarter of 2013. Average sales price per ton declined over the same time period, driven by customer contract roll-offs and lower pricing on export tons. First quarter 2014 cash cost per ton increased versus the fourth quarter of 2013, due to the expected impact of lower volume levels at the West Elk mine.
Market Trends
"We are seeing a strengthening domestic thermal market in 2014, supported by improved power demand, depleting customer coal stockpiles, higher natural gas prices and low natural gas storage levels that will need to be rebuilt," said Eaves.
U.S. power generation hit record levels during the first two months of 2014, and Arch expects U.S. coal consumption for power generation to increase more than 25 million tons in 2014 versus 2013 levels. Even with modest supply increases, Arch expects strong reductions in utility coal stockpiles throughout the year, due to solid demand and continued higher prices for competing fuels. Based on internal estimates, U.S. utility coal stockpiles could be below 110 million tons by the end of the summer burn season, or nearly 30 percent below the 10-year average.
While the domestic thermal market is trending upward, the seaborne market remains challenged, as oversupply has pressured global prices for metallurgical and thermal coals. However, Arch believes the long-term outlook for the seaborne coal trade remains positive and the opportunities for U.S. coal significant. Global coal trade is projected to exceed 1.5 billion metric tonnes by 2020, with approximately 100 gigawatts of new coal-fueled power projected to come online in 2014 alone. That new coal-fueled power could result in more than 300 million metric tonnes of incremental annual coal demand this year.
Arch currently expects the global metallurgical coal market to remain soft in 2014, even as global steel production is projected to grow. However, recent and ongoing closures of some high-cost capacity and an improving demand outlook should lead to a more balanced market over time.
Company Outlook
Arch now expects thermal sales volumes for 2014 to be in the range of 124 million to 132 million tons. The company has lowered its metallurgical coal sales guidance, and now expects to ship between 6.3 million and 7.3 million tons for 2014. In addition, Arch has reduced its annual cash cost-per-ton guidance range for both its Appalachian and Bituminous Thermal segments, while maintaining its cost outlook for the Powder River Basin. The company has modestly reduced its capital spending levels to a range of $180 million to $190 million for full year 2014.
"Going forward, we will continue to focus on managing costs and capital across the organization and look for opportunities to offset the impact of external market challenges," said Eaves. "With strong liquidity, low-cost assets, superior reserves and access to growing global coal markets, Arch is strategically positioned to capitalize as coal markets recover."
2014 2015
---- ----
Tons $ per ton Tons $ per ton
---- --------- ---- ---------
Sales
Volume
(in
millions
tons)
---------
Thermal 124.0 - 132.0
Met 6.3 - 7.3
--- --- ---
Total 130.3 - 139.3
Powder
River
Basin
------
Committed,
Priced 102.0 $13.08 57.8 $13.76
Committed,
Unpriced 5.8 8.6
---------- --- ---
Total
Committed 107.8 66.4
Average
Cash
Cost $10.70 - $11.00
Appalachia
----------
Committed,
Priced
Thermal 6.0 $56.88 2.6 $55.34
Committed,
Unpriced
Thermal 0.2 -
Committed,
Priced
Metallurgical 5.0 $83.50 1.6 $85.68
Committed,
Unpriced
Metallurgical 0.5 0.2
------------- --- ---
Total
Committed 11.7 4.4
Average
Cash
Cost $63.00 - $66.00
Bituminous
Thermal
----------
Committed,
Priced 6.2 $31.90 2.5 $38.95
Committed,
Unpriced 0.2 -
---------- --- ---
Total
Committed 6.4 2.5
Average
Cash
Cost $23.00 - $26.00
Corporate
(in
$
millions)
---------
D,D&A $420 - $450
S,G&A $122 - $128
Interest
Expense $382 - $392
Capital
Expenditures $180 - $190
------------ ---- - ----
A conference call regarding Arch Coal's first quarter 2014 financial results will be webcast live today at 10 a.m. Eastern time. The conference call can be accessed via the "investor" section of the Arch Coal website (http://investor.archcoal.com).
U.S.-based Arch Coal, Inc. is one of the world's top coal producers for the global steel and power generation industries, serving customers on five continents. Its network of mining complexes is the most diversified in the United States, spanning every major coal basin in the nation. The company controls more than 5 billion tons of high-quality metallurgical and thermal coal reserves, with access to all major railroads, inland waterways and a growing number of seaborne trade channels. For more information, visit www.archcoal.com.
Forward-Looking Statements: This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from changes in the demand for our coal by the domestic electric generation industry; from legislation and regulations relating to the Clean Air Act and other environmental initiatives; from operational, geological, permit, labor and weather-related factors; from fluctuations in the amount of cash we generate from operations; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. For a description of some of the risks and uncertainties that may affect our future results, you should see the risk factors described from time to time in the reports we file with the Securities and Exchange Commission.
Arch Coal, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended March
31,
------------------------
2014 2013
---- ----
(Unaudited)
Revenues $735,971 $737,370
Costs, expenses and other operating
Cost of sales 686,314 649,743
Depreciation, depletion and
amortization 104,423 110,193
Amortization of acquired sales
contracts, net (3,696) (2,810)
Change in fair value of coal
derivatives and coal trading
activities, net 914 1,308
Selling, general and
administrative expenses 29,136 33,209
Other operating income, net (7,998) (2,842)
------ ------
809,093 788,801
------- -------
Loss from operations (73,122) (51,431)
Interest expense, net
Interest expense (96,471) (95,074)
Interest and investment income 1,843 2,836
----- -----
(94,628) (92,238)
------- -------
Loss from continuing
operations before income
taxes (167,750) (143,669)
Benefit from income taxes (43,611) (59,353)
------- -------
Loss from continuing
operations (124,139) (84,316)
Income from discontinued
operations, net of tax - 14,267
--- ------
Net loss $(124,139) $(70,049)
========= ========
Loss from continuing operations
Basic and diluted loss per
common share $(0.59) $(0.40)
====== ======
Net loss
Basic and diluted loss per
common share $(0.59) $(0.33)
====== ======
Basic and diluted weighted
average shares outstanding 212,171 212,062
======= =======
Dividends declared per common
share $0.01 $0.03
===== =====
Adjusted EBITDA (A) $27,605 $83,629
======= =======
Adjusted diluted loss per
common share (A) $(0.60) $(0.34)
====== ======
(A) Adjusted EBITDA and
Adjusted diluted loss per
common share are defined
and reconciled under
"Reconciliation of Non-
GAAP Measures" later in
this release.
Arch Coal, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2014 2013
---- ----
(Unaudited)
Assets
Current assets
Cash and cash
equivalents $865,761 $911,099
Short term
investments 248,572 248,414
Trade accounts
receivable 230,002 198,020
Other receivables 44,810 31,553
Inventories 224,806 264,161
Prepaid royalties 6,896 8,083
Deferred income
taxes 48,869 49,144
Coal derivative
assets 12,316 14,851
Other current
assets 55,296 56,746
------ ------
Total current
assets 1,737,328 1,782,071
Property, plant
and equipment,
net 6,616,144 6,734,286
Other assets
Prepaid royalties 87,552 87,577
Equity
investments 223,235 221,456
Other noncurrent
assets 158,925 164,803
------- -------
Total other
assets 469,712 473,836
------- -------
Total assets $8,823,184 $8,990,193
========== ==========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $160,361 $176,142
Accrued expenses
and other
current
liabilities 328,561 278,587
Current
maturities of
debt 29,950 33,493
------ ------
Total current
liabilities 518,872 488,222
Long-term debt 5,112,995 5,118,002
Asset retirement
obligations 390,408 402,713
Accrued pension
benefits 10,484 7,111
Accrued
postretirement
benefits other
than pension 37,995 39,255
Accrued workers'
compensation 75,817 78,062
Deferred income
taxes 368,057 413,546
Other noncurrent
liabilities 181,866 190,033
------- -------
Total liabilities 6,696,494 6,736,944
Stockholders' equity
Common stock 2,141 2,141
Paid-in capital 3,040,946 3,038,613
Treasury stock,
at cost (53,848) (53,848)
Accumulated
deficit (897,611) (771,349)
Accumulated other
comprehensive
income 35,062 37,692
------ ------
Total
stockholders'
equity 2,126,690 2,253,249
--------- ---------
Total liabilities
and
stockholders'
equity $8,823,184 $8,990,193
========== ==========
Arch Coal, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
Three Months Ended March
31,
-------------------------
2014 2013
---- ----
(Unaudited)
Operating activities
Net loss $(124,139) $(70,049)
Adjustments to reconcile to cash provided
by operating activities:
Depreciation,
depletion
and
amortization 104,423 118,868
Amortization
of
acquired
sales
contracts,
net (3,696) (2,810)
Amortization
relating
to
financing
activities 3,236 6,167
Prepaid
royalties
expensed 1,803 3,537
Employee
stock-
based
compensation
expense 2,333 2,713
Gains on
disposals
and
divestitures,
net (15,129) (595)
Changes in:
Receivables (27,245) (12,340)
Inventories 7,441 (2,816)
Accounts
payable,
accrued
expenses
and
other
current
liabilities 43,989 38,249
Income
taxes,
net (115) 458
Deferred
income
taxes (43,698) (54,993)
Other 10,522 16,902
------ ------
Cash
provided
by
(used
in)
operating
activities (40,275) 43,291
------- ------
Investing activities
Capital
expenditures (14,454) (54,522)
Additions
to
prepaid
royalties (591) (9,142)
Proceeds
from
disposals
and
divestitures 28,195 714
Purchases
of
short
term
investments (119,176) (26,787)
Proceeds
from
sales of
short
term
investments 117,681 11,534
Investments
in and
advances
to
affiliates (3,242) (4,298)
Change
in
restricted
cash - 1,163
--- -----
Cash
provided
by
(used
in)
investing
activities 8,413 (81,338)
----- -------
Financing activities
Payments
on term
loan (4,875) (4,125)
Net
payments
on
other
debt (4,521) (5,964)
Debt
financing
costs (1,957) -
Dividends
paid (2,123) (6,367)
------ ------
Cash
used in
financing
activities (13,476) (16,456)
------- -------
Decrease
in cash
and cash
equivalents (45,338) (54,503)
Cash and
cash
equivalents,
beginning
of
period 911,099 784,622
------- -------
Cash and
cash
equivalents,
end of
period $865,761 $730,119
======== ========
Arch Coal, Inc. and Subsidiaries
Schedule of Consolidated Debt
(In thousands)
March 31, December 31,
2014 2013
---- ----
(Unaudited)
Term loan due
2018 ($1.92
billion and
$1.93
billion face
value,
respectively) $1,902,731 $1,906,975
7.00% senior
notes due
2019 at par 1,000,000 1,000,000
9.875% senior
notes due
2019
($375.0
million face
value) 362,573 362,358
8.00% senior
secured
notes due
2019 at par 350,000 350,000
7.25% senior
notes due
2020 at par 500,000 500,000
7.25% senior
notes due
2021 at par 1,000,000 1,000,000
Other 27,641 32,162
------ ------
5,142,945 5,151,495
Less: current
maturities
of debt 29,950 33,493
Long-term
debt $5,112,995 $5,118,002
========== ==========
Calculation
of net debt
Total debt $5,142,945 $5,151,495
Less liquid
assets
Cash and cash
equivalents 865,761 911,099
Short term
investments 248,572 248,414
------- -------
1,114,333 1,159,513
Net debt $4,028,612 $3,991,982
========== ==========
Arch Coal, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measures
(In thousands, except per share data)
Included in the accompanying release, we have disclosed certain non-GAAP measures as defined by Regulation G.
The following reconciles these items to the respective figures under GAAP.
Adjusted
EBITDA
Adjusted EBITDA is defined as net income attributable to the Company before the effect of net interest expense, income
taxes, depreciation, depletion and amortization, and the amortization of acquired sales contracts. Adjusted EBITDA may
also be adjusted for items that may not reflect the trend of future results.
Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting
principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing our financial
condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income, income
from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under
generally accepted accounting principles. We believe that Adjusted EBITDA presents a useful measure of our ability to
incur and service debt based on ongoing operations. Furthermore, analogous measures are used by industry analysts to
evaluate our operating performance. In addition, acquisition related expenses are excluded to make results more
comparable between periods. Investors should be aware that our presentation of Adjusted EBITDA may not be comparable to
similarly titled measures used by other companies. The table below shows how we calculate Adjusted EBITDA.
Three Months Ended March 31,
----------------------------
2014 2013
---- ----
Total Company Continuing Operations Discontinued Operations Total Company
------------- --------------------- ----------------------- -------------
Net loss $(124,139) $(84,316) $14,267 $(70,049)
Income tax
benefit (43,611) (59,353) 4,722 (54,631)
Interest
expense, net 94,628 92,238 13 92,251
Depreciation,
depletion and
amortization 104,423 110,193 8,675 118,868
Amortization
of acquired
sales
contracts,
net (3,696) (2,810) - (2,810)
------ ------ --- ------
Adjusted
EBITDA $27,605 $55,952 $27,677 $83,629
======= ======= ======= =======
Adjusted net loss and adjusted diluted loss per share
Adjusted net loss and adjusted diluted loss per common share are adjusted for the after-tax impact of acquisition
related costs and are not measures of financial performance in accordance with generally accepted accounting
principles. We believe that adjusted loss and adjusted diluted loss per common share better reflect the trend of our
future results by excluding items relating to significant transactions. The adjustments made to arrive at these measures
are significant in understanding and assessing our financial condition. Therefore, adjusted net loss and adjusted
diluted loss per share should not be considered in isolation, nor as an alternative to net loss or diluted loss per
common share under generally accepted accounting principles.
Three Months Ended
March 31,
-------------------
2014 2013
---- ----
(Unaudited)
Net loss $(124,139) $(70,049)
Amortization
of acquired
sales
contracts,
net (3,696) (2,810)
Tax impact of
adjustments 1,331 1,012
----- -----
Adjusted net
loss
attributable
to Arch Coal $(126,504) $(71,847)
========= ========
Diluted
weighted
average
shares
outstanding 212,171 212,062
======= =======
Diluted loss
per share
attributable
to Arch Coal $(0.59) $(0.33)
Amortization
of acquired
sales
contracts,
net (0.02) (0.01)
Tax impact of
adjustments 0.01 -
---
Adjusted
diluted loss
per share $(0.60) $(0.34)
====== ======
Cash costs per ton
Cash costs per ton exclude the costs of depreciation, depletion and amortization and pass-through transportation costs,
and may be adjusted for other items that, due to accounting rules, are classified in "other income/expense" on the
statement of operations, but relate directly to the costs incurred to produce coal. Cash costs per ton are not measures
of financial performance in accordance with generally accepted accounting principles. We believe cash costs per ton
better reflect our controllable costs and our operating results by including all cash costs incurred to produce coal.
The adjustments made to arrive at these measures are significant in understanding and assessing our financial condition.
Therefore, cash costs per ton should not be considered in isolation, nor as an alternative to cost of sales per ton
under generally accepted accounting principles.
The following reconciles cost of sales on our condensed consolidated statement of operations to cash cost per ton.
Three Months Ended
March 31,
-------------------
2014 2013
---- ----
(Unaudited)
Cost of sales
on condensed
consolidated
statement of
operations $686,314 $649,743
Transportation
costs billed
to customers (106,959) (92,816)
Settlements of
heating oil
derivatives
used to
manage diesel
fuel purchase
price risk 1,879 4,662
Other (other
operating
segments,
operating
overhead,
land
management,
etc.) (4,689) (5,347)
------ ------
Total cash
costs $576,545 $556,242
Total Tons
sold 31,357 31,925
------ ------
Total cash
cost per ton $18.39 $17.42
====== ======
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SOURCE Arch Coal, Inc.
