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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2024

☐Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to .

Commission file number: 1-13105

Arch Resources, Inc.

(Exact name of registrant as specified in its charter)


Delaware		43-0921172
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification Number)


One CityPlace Drive
Suite 300
St. Louis
Missouri		63141
(Address of principal executive offices)		(Zip code)
Registrant’s telephone number, including area code: (314) 994-2700 (Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, $.01 par value	ARCH	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At October 31, 2024 there were 18,108,609 shares of the registrant’s common stock outstanding.

Table of Contents

TABLE OF CONTENTS


	Page
Part I FINANCIAL INFORMATION	3
Item 1. Financial Statements	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3. Quantitative and Qualitative Disclosures About Market Risk	42
Item 4. Controls and Procedures	42
Part II OTHER INFORMATION	43
Item 1. Legal Proceedings	43
Item 1A. Risk Factors	43
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 4. Mine Safety Disclosures	47
Item 5. Other Information	47
Item 6. Exhibits	48
Signatures	54

Table of Contents

Part I

FINANCIAL INFORMATION

Item 1.Financial Statements.

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share data)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

	(Unaudited)				(Unaudited)
Revenues	$	617,899	$	744,601	$	1,906,840	$	2,371,826
Costs, expenses and other operating
Cost of sales (exclusive of items shown separately below)		558,596		596,889		1,655,003		1,774,753
Depreciation, depletion and amortization		40,890		36,717		118,149		108,273
Accretion on asset retirement obligations		5,869		5,292		17,608		15,877
Selling, general and administrative expenses		20,603		24,279		68,708		73,092
Merger related costs		7,002		—		7,002		—
Severance costs related to voluntary separation plan		6,649		—		6,649		—
Other operating income, net		(5,461)		(2,858)		(23,854)		(10,037)
		634,148		660,319		1,849,265		1,961,958

Income (loss) from operations		(16,249)		84,282		57,575		409,868

Interest expense, net
Interest expense		(3,912)		(3,120)		(12,161)		(10,783)
Interest and investment income		5,665		4,803		17,168		12,340
		1,753		1,683		5,007		1,557

Income (loss) before nonoperating expenses		(14,496)		85,965		62,582		411,425

Nonoperating expense
Non-service related pension and postretirement benefit credits		1,667		4,507		1,096		5,692
Net loss resulting from early retirement of debt		—		—		—		(1,126)
		1,667		4,507		1,096		4,566

Income (loss) before income taxes		(12,829)		90,472		63,678		415,991
(Benefit from) provision for income taxes		(6,608)		16,781		(887)		66,839
Net income (loss)	$	(6,221)	$	73,691	$	64,565	$	349,152

Net income (loss) per common share
Basic earnings (loss) per share	$	(0.34)	$	4.05	$	3.55	$	19.20
Diluted earnings (loss) per share	$	(0.34)	$	3.91	$	3.50	$	18.12
Weighted average shares outstanding
Basic weighted average shares outstanding		18,097		18,187		18,180		18,189
Diluted weighted average shares outstanding		18,097		18,840		18,450		19,270
Dividends declared per common share	$	0.25	$	3.97	$	3.01	$	9.53

The accompanying notes are an integral part of the condensed consolidated financial statements.

Table of Contents

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

	(Unaudited)					(Unaudited)
Net income (loss)	$	(6,221)	$	73,691	$	64,565	$	349,152

Pension, postretirement and other post-employment benefits
Comprehensive loss before tax		(2,006)		(9,770)		(6,018)		(15,560)
Provision for income taxes		427		2,147		1,281		3,419
		(1,579)		(7,623)		(4,737)		(12,141)
Available-for-sale securities
Comprehensive income before tax		192		54		201		15
Provision for income taxes		(41)		(12)		(43)		(4)
		151		42		158		11

Total other comprehensive loss		(1,428)		(7,581)		(4,579)		(12,130)
Total comprehensive income (loss)	$	(7,649)	$	66,110	$	59,986	$	337,022

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except per share data)


	September 30, 2024		December 31, 2023
Assets		(Unaudited)
Current assets
Cash and cash equivalents	$	219,595	$	287,807
Short-term investments		36,347		32,724
Restricted cash		1,100		1,100
Trade accounts receivable (net of $0 allowance at September 30, 2024 and December 31, 2023)		239,994		273,522
Other receivables		8,580		13,700
Inventories		235,091		244,261
Other current assets		47,716		64,653
Total current assets		788,423		917,767
Property, plant and equipment, net		1,238,534		1,228,891
Other assets
Deferred income taxes		126,608		124,024
Equity investments		23,088		22,815
Fund for asset retirement obligations		147,932		142,266
Other noncurrent assets		46,293		48,410
Total other assets		343,921		337,515
Total assets	$	2,370,878	$	2,484,173

Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable	$	153,189	$	205,001
Accrued expenses and other current liabilities		112,767		127,617
Current maturities of debt		126,897		35,343
Total current liabilities		392,853		367,961
Long-term debt		—		105,252
Asset retirement obligations		267,486		255,740
Accrued pension benefits		816		878
Accrued postretirement benefits other than pension		46,530		47,494
Accrued workers’ compensation		158,902		154,650
Other noncurrent liabilities		60,337		72,742
Total liabilities		926,924		1,004,717
Stockholders' equity
Common stock, $0.01 par value, authorized 300,000 shares, issued 30,805 and 30,557 shares at September 30, 2024 and December 31, 2023, respectively		308		306
Paid-in capital		764,202		720,029
Retained earnings		1,839,125		1,830,018
Treasury stock, 12,701 and 12,197 shares at September 30, 2024 and December 31, 2023, respectively, at cost		(1,193,884)		(1,109,679)
Accumulated other comprehensive income		34,203		38,782
Total stockholders’ equity		1,443,954		1,479,456
Total liabilities and stockholders’ equity	$	2,370,878	$	2,484,173

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)


	Nine Months Ended September 30,
	2024		2023

Operating activities		(Unaudited)
Net income	$	64,565	$	349,152
Adjustments to reconcile to cash from operating activities:
Depreciation, depletion and amortization		118,149		108,273
Accretion on asset retirement obligations		17,608		15,877
Deferred income taxes		(1,345)		66,561
Employee stock-based compensation expense		15,819		19,699
Amortization relating to financing activities		2,168		1,317
Gain on disposals and divestitures, net		(213)		(714)
Reclamation work completed		(6,038)		(17,642)
Contribution to fund for asset retirement obligations		(5,667)		(4,421)
Changes in:
Receivables		39,936		(49,950)
Inventories		9,169		(10,199)
Accounts payable, accrued expenses and other current liabilities		(62,824)		(31,241)
Income taxes, net		258		(999)
Other		20,774		8,105
Cash provided by operating activities		212,359		453,818
Investing activities
Capital expenditures		(126,888)		(121,030)
Minimum royalty payments		(988)		(1,113)
Proceeds from disposals and divestitures		219		1,363
Purchases of short-term investments		(41,397)		(23,386)
Proceeds from sales of short-term investments		38,244		30,417
Investments in and advances to affiliates, net		(10,330)		(12,210)
Cash used in investing activities		(141,140)		(125,959)
Financing activities
Proceeds from issuance of term loan due 2025		20,000		—
Payments on term loan due 2025		(6,666)		—
Payments on term loan due 2024		(3,502)		(2,250)
Payments on convertible debt		—		(58,430)
Net payments on other debt		(23,717)		(30,568)
Debt financing costs		(1,516)		—
Purchases of treasury stock		(30,747)		(122,502)
Dividends paid		(68,944)		(183,790)
Payments for taxes related to net share settlement of equity awards		(24,339)		(27,230)
Proceeds from warrants exercised		—		43,949
Cash used in financing activities		(139,431)		(380,821)
Decrease in cash and cash equivalents, including restricted cash		(68,212)		(52,962)
Cash and cash equivalents, including restricted cash, beginning of period	$	288,907	$	237,159
Cash and cash equivalents, including restricted cash, end of period	$	220,695	$	184,197
Cash and cash equivalents, including restricted cash, end of period
SUPPLEMENTAL CASH FLOW INFORMATION
Cash and cash equivalents	$	219,595	$	183,097
Restricted Cash		1,100		1,100
Cash and cash equivalents, including restricted cash, end of period	$	220,695	$	184,197

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)


							Treasury		Accumulated Other
	Common		Paid-In		Retained		Stock at		Comprehensive
	Stock		Capital		Earnings		Cost		Income (Loss)		Total

	(In thousands, except per share data)
Balances at January 1, 2024	$	306	$	720,029	$	1,830,018	$	(1,109,679)	$	38,782	$	1,479,456
Dividends on common shares		—		—		(30,671)		—		—		(30,671)
Dividend Equivalents earned on RSU grants		—		72		(679)		—		—		(607)
Purchase of 94,701 shares of common stock under share repurchase program		—		—		—		(16,432)		—		(16,432)
Receipt of 315,721 shares from the exercise of capped call		—		52,624		—		(52,624)		—		—
Employee stock-based compensation		—		5,588		—		—		—		5,588
Common stock withheld related to net share settlement of equity awards		—		(24,259)		—		—		—		(24,259)
Issuance of 227,981 shares of common stock under long-term incentive plan		2		—		—		—		—		2
Total comprehensive income (loss)		—		—		55,953		—		(1,582)		54,371
Balances at March 31, 2024	$	308	$	754,054	$	1,854,621	$	(1,178,735)	$	37,200	$	1,467,448

Dividends on common shares		—		—		(20,072)		—		—		(20,072)
Dividend equivalents earned on RSU grants		—		49		240		—		—		289
Purchase of 94,367 shares of common stock under share repurchase program		—		—		—		(15,141)		—		(15,141)
Employee stock-based compensation		—		4,857		—		—		—		4,857
Common stock withheld related to net share settlement of equity awards		—		(80)		—		—		—		(80)
Total comprehensive income (loss)		—		—		14,833		—		(1,569)		13,264
Balances at June 30, 2024	$	308	$	758,880	$	1,849,622	$	(1,193,876)	$	35,631	$	1,450,565

Dividends on common shares		—		—		(4,526)		—		—		(4,526)
Dividend equivalents earned on RSU grants		—		11		250		—		—		261
Excise tax on share repurchases		—		—		—		(8)		—		(8)
Employee stock-based compensation		—		5,374		—		—		—		5,374
Other		—		(63)		—		—		—		(63)
Total comprehensive income (loss)		—		—		(6,221)		—		(1,428)		(7,649)
Balances at September 30, 2024	$	308	$	764,202	$	1,839,125	$	(1,193,884)	$	34,203	$	1,443,954

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Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)


							Treasury		Accumulated Other
	Common		Paid-In		Retained		Stock at		Comprehensive
	Stock		Capital		Earnings		Cost		Income		Total

	(In thousands, except per share data)
Balances at January 1, 2023	$	288	$	724,660	$	1,565,374	$	(986,171)	$	61,429	$	1,365,580
Dividends on common shares		—		—		(55,140)		—		—		(55,140)
Dividend Equivalents earned on RSU grants		—		120		(2,354)		—		—		(2,234)
Purchase of 131,156 shares of common stock under share repurchase program		—		(13)		—		(18,994)		—		(19,007)
Employee stock-based compensation		—		6,767		—		—		—		6,767
Cash paid for convertible debt repurchased		—		(44,486)		—		—		—		(44,486)
Issuance of 275,053 shares of common stock under long-term incentive plan		3		—		—		—		—		3
Common stock withheld related to net share settlement of equity awards		—		(27,055)		—		—		—		(27,055)
Issuance of 1,037,679 shares of common stock for warrants exercised		10		43,719		—		—		—		43,729
Total comprehensive income (loss)		—		—		198,108		—		(2,271)		195,837
Balances at March 31, 2023	$	301	$	703,712	$	1,705,988	$	(1,005,165)	$	59,158	$	1,463,994

Dividends on common shares		—		—		(45,011)		—		—		(45,011)
Dividend equivalents earned on RSU grants		—		98		(669)		—		—		(571)
Purchase of 623,304 shares of common stock under share repurchase program		—		—		—		(74,231)		—		(74,231)
Employee stock-based compensation		—		6,439		—		—		—		6,439
Common stock withheld related to net share settlement of equity awards		—		(162)		—		—		—		(162)
Issuance of 29,487 shares of common stock for warrants exercised		—		31		—		—		—		31
Total comprehensive income (loss)		—		—		77,353		—		(2,278)		75,075
Balances at June 30, 2023	$	301	$	710,118	$	1,737,661	$	(1,079,396)	$	56,880	$	1,425,564

Dividends on common shares		—		—		(71,573)		—		—		(71,573)
Dividend equivalents earned on RSU grants		—		159		(2,311)		—		—		(2,152)
Purchase of 215,551 shares of common stock under share repurchase program		—		—		—		(28,482)				(28,482)
Employee stock-based compensation		—		6,493		—		—		—		6,493
Common stock withheld related to net share settlement of equity awards		—		(13)		—		—		—		(13)
Issuance of 386,782 shares of common stock for warrants exercised		4		199		—		—		—		203
Total comprehensive income (loss)		—		—		73,691		—		(7,581)		66,110
Balances at September 30, 2023	$	305	$	716,956	$	1,737,468	$	(1,107,878)	$	49,299	$	1,396,150

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Arch Resources, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Arch Resources, Inc. (“Arch Resources”) and its subsidiaries and controlled entities (“Arch” or the “Company”). Unless the context indicates otherwise, the terms “Arch” and the “Company” are used interchangeably in this Quarterly Report on Form 10-Q. The Company’s primary business is the production of metallurgical and thermal coal from underground and surface mines located throughout the United States, for sale to steel producers, utility companies, and industrial accounts both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Wyoming and Colorado. All subsidiaries are wholly owned. Intercompany transactions and accounts have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of results to be expected for the year ending December 31, 2024. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission.

2. Accounting Policies

Recently Adopted Accounting Guidance

There is no recently issued accounting guidance effective that is expected to have a material impact on the Company’s financial position, results of operations, or liquidity.

Recent Accounting Guidance Issued Not Yet Effective

In November 2023, the FASB issued ASU 2023-07 Segment Reporting – Improving Reportable Segment Disclosures (Topic 280). The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosure to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is currently assessing the timing and impact of adopting the updated provisions.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Company’s annual periods beginning June 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the ASU to determine its impact on the Company’s disclosures.

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3. Entry into a Material Definitive Agreement with CONSOL

On August 20, 2024, the Company, CONSOL Energy Inc. (“CONSOL”), and Mountain Range Merger Sub Inc., a wholly owned subsidiary of CONSOL (“Merger Sub”), entered into an agreement and plan of merger (the “Merger Agreement”). Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Arch (the “Merger”), with Arch thereafter being a wholly-owned subsidiary of CONSOL.

Under the terms of the Merger Agreement, each share of Class A common stock, par value $0.01 per share, of Arch (the “Arch Class A common stock”) and Class B common stock, par value $0.01 per share, of Arch (the “Arch Class B common stock” and together with the Arch Class A common stock, the “Arch common stock”), that is issued and outstanding immediately prior to the effective time of the Merger (other than shares of Arch common stock held by Arch as treasury shares or shares of Arch common stock held by CONSOL or Merger Sub immediately prior to the effective time of the Merger and in each case, not held on behalf of third parties and shares of Arch common stock that are owned by any subsidiary of Arch or CONSOL other than Merger Sub) will be converted automatically into the right to receive, without interest, 1.326 fully paid and nonassessable shares of common stock, par value $0.01 per share, of CONSOL (“CONSOL common stock”) (with cash in lieu of fractional shares).

The Merger Agreement imposes certain restrictions on the conduct of the business of the Company until the closing, such as a requirement to operate in the ordinary course of business and limitations on, among other things, dividends, stock repurchases and debt repurchases, subject, in each case, to certain exceptions.

The Merger is expected to close by the end of the first quarter of 2025, subject to the satisfaction or waiver of certain customary closing conditions, including approval by the Company’s and CONSOL’s stockholders.

The Merger Agreement contains certain termination rights for both the Company and CONSOL. In the event of a termination of the Merger Agreement under certain specified circumstances, the Company or CONSOL may be required to pay the other party a termination fee of $82 million or an expense reimbursement of up to $23.5 million.

During the three months ended September 30, 2024, the Company incurred approximately $7.0 million in transaction costs related to the Merger agreement, all of which were expensed, and are included in the line item “Merger related costs” in the accompanying Condensed Consolidated Statements of Operations.

4. Severance Costs Related to Voluntary Separation Plan

The Company recorded $6.6 million of employee severance expense related to a voluntary separation plan during the three months ended September 30, 2024. This amount is included in “Severance costs related to voluntary separation plan” in the accompanying Condensed Consolidated Statements of Operations. During the three months ended September 30, 2024, 138 employees from the Company’s Thermal Segment accepted the voluntary separation package.

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5. Accumulated Other Comprehensive Income (Loss)

The following items are included in accumulated other comprehensive income (loss) (“AOCI”), net of tax:


	Pension,
	Postretirement				Accumulated
	and Other Post-				Other
	Employment		Available-for-		Comprehensive
	Benefits		Sale Securities		Income (loss)

Balances at December 31, 2023	$	38,783	$	(1)	$	38,782
Unrealized gains		—		210		210
Amounts reclassified from accumulated other comprehensive income (loss)		(6,018)		(9)		(6,027)
Tax effect		1,281		(43)		1,238
Balances at September 30, 2024	$	34,046	$	157	$	34,203

The following amounts were reclassified out of AOCI:


	Three Months Ended September 30,				Nine Months Ended September 30,				Line Item in the Condensed Consolidated
Details About AOCI Components	2024		2023		2024		2023		Statements of Operations

	(In thousands)
Pension, postretirement and other post-employment benefits
Amortization of actuarial gains, net ¹	$	2,006	$	2,792	$	6,018	$	8,509	Non-service related pension and postretirement benefit credits
Amortization of prior service credits		—		25		—		98	Non-service related pension and postretirement benefit credits
Pension Termination		—		6,953		—		6,953	Non-service related pension and postretirement benefit credits
		2,006		9,770		6,018		15,560	Total before tax
		(427)		(2,147)		(1,281)		(3,419)	Provision for income taxes
	$	1,579	$	7,623	$	4,737	$	12,141	Net of tax

Available-for-sale securities ²	$	1	$	(40)	$	9	$	(61)	Interest and investment income
		—		12		(2)		4	(Benefit from) provision for income taxes
	$	1	$	(28)	$	7	$	(57)	Net of tax

¹ Production-related benefits and workers’ compensation costs are included in costs of sales.

² The gains and losses on sales of available-for-sale securities are determined on a specific identification basis.

6. Inventories

Inventories consist of the following:


	September 30,		December 31,
	2024		2023

	(In thousands)
Coal	$	83,654	$	99,174
Repair parts and supplies		151,437		145,087
	$	235,091	$	244,261

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The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $1.5 million at September 30, 2024 and $1.6 million at December 31, 2023, respectively.

7. Investments in Available-for-Sale Securities

The Company has invested in marketable debt securities, primarily highly liquid U.S. Treasury securities and investment grade corporate bonds. These investments are held in the custody of a major financial institution. These securities are classified as available-for-sale securities and, accordingly, the unrealized gains and losses are recorded through other comprehensive income.

The Company’s investments in available-for-sale marketable securities are as follows:


	September 30, 2024

			Gross					Allowance
			Unrealized					for - Credit	Fair
	Cost Basis		Gains		Losses			Losses	Value

	(In thousands)
Available-for-sale:
U.S. government and agency securities	$	14,834	$	78	$	—	$	—	$	14,912
Corporate notes and bonds		21,303		134		(2)		—		21,435
Total Investments	$	36,137	$	212	$	(2)	$	—	$	36,347


	December 31, 2023

			Gross					Allowance
			Unrealized					for - Credit	Fair
	Cost Basis		Gains			Losses		Losses	Value

	(In thousands)
Available-for-sale:
U.S. government and agency securities	$	28,764	$	14	$	(5)	$	—	$	28,773
Corporate notes and bonds		3,951		1		(1)		—		3,951
Total Investments	$	32,715	$	15	$	(6)	$	—	$	32,724

The aggregate fair value of investments with unrealized losses that had been owned for less than a year was $0.0 million and $2.2 million at September 30, 2024 and December 31, 2023, respectively. The aggregate fair value of investments with unrealized losses that were owned for over a year was $1.2 million and $2.3 million at September 30, 2024 and December 31, 2023, respectively. The unrealized losses in the Company’s portfolio at September 30, 2024 are the result of normal market fluctuations. The Company does not intend to sell these investments before recovery of their amortized cost base.

The debt securities outstanding at September 30, 2024 have maturity dates ranging from the fourth quarter of 2024 through the third quarter of 2029. The Company classifies its investments as current based on the nature of the investments and their availability to provide cash for use in current operations, if needed.

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8. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


	September 30,		December 31,
	2024		2023

	(In thousands)
Payroll and employee benefits	$	38,481	$	37,259
Taxes other than income taxes		36,028		51,155
Interest		1,393		2,395
Workers’ compensation		16,980		18,724
Asset retirement obligations		5,913		6,089
Other		13,972		11,995
	$	112,767	$	127,617

9. Debt and Financing Arrangements


	September 30,		December 31,
	2024		2023

	(In thousands)
Term loan due 2025 ($13.3 million face value)	$	13,333	$	—
Term loan due 2024		—		3,502
Tax Exempt Bonds ($98.1 million face value)		98,075		98,075
Other		16,812		40,529
Debt issuance costs		(1,323)		(1,511)
		126,897		140,595
Less: current maturities of debt		126,897		35,343
Long-term debt	$	—	$	105,252

Term Loan Facility

On February 8, 2024, the Company entered into a new senior secured term loan credit agreement in the principal amount of $20.0 million (the “Term Loan”) with PNC Bank, National Association, as administrative and collateral agent. The Term Loan requires quarterly principal amortization payments of $3.3 million and matures on June 30, 2025. The interest rate on the facility is, at the option of Arch Resources, either (i) Secured Overnight Financing Rate (“SOFR”) plus a SOFR adjustment of 0.10% plus an applicable margin of 3.00%, subject to a SOFR floor of 0.00%, or (ii) a base rate plus an applicable margin of 2.00%.

The Term Loan is guaranteed by substantially all of the domestic subsidiaries of the Company. Additionally, the Term Loan is secured by substantially all the assets of the Company and the guarantors, subject to customary exceptions (including an exclusion for owned and leased real property).

The Term Loan contains the following financial maintenance covenants: (i) total net leverage not to exceed 2.00 to 1.00 for the trailing four fiscal quarters; (ii) the ratio of Consolidated EBITDA to Consolidated Interest Expense to be less than 3.50 to 1.00 for the trailing four fiscal quarters; and (iii) liquidity of not less than $100 million at any time.

The Term Loan is subject to certain usual and customary mandatory prepayment events, including 100% of net cash proceeds of debt issuances (other than debt permitted to be incurred under the terms of the Term Loan).

The Term Loan contains customary affirmative and negative covenants and representations; and customary events of default, subject to customary thresholds and exceptions. As of September 30, 2024, the Company was in compliance with the Term Loan debt covenants.

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The proceeds from the Term Loan were used to pay off the $3.5 million balance of the term loan debt facility due 2024. Additionally, the Company incurred approximately $1.5 million in debt issuance costs related to the Term Loan.

Accounts Receivable Securitization Facility

On August 3, 2022, the Company amended and extended its existing trade accounts receivable securitization facility provided to Arch Receivable Company, LLC, a special-purpose entity that is a wholly owned subsidiary of Arch Resources (“Arch Receivable”) (the “Securitization Facility”), which supports the issuance of letters of credit and requests for cash advances. The amendment to the Securitization Facility increased the size of the facility from $110 million to $150 million of borrowing capacity and extended the maturity date to August 1, 2025.

Under the Securitization Facility, Arch Receivable, Arch Resources and certain of Arch Resources’ subsidiaries party to the Securitization Facility have granted to the administrator of the Securitization Facility a first priority security interest in eligible trade accounts receivable generated by such parties from the sale of coal and all proceeds thereof. As of September 30, 2024, letters of credit totaling $50.5 million were outstanding under the facility with $79.6 million available for borrowings.

Inventory-Based Revolving Credit Facility

On August 3, 2022, Arch Resources amended the senior secured inventory-based revolving credit facility in an aggregate principal amount of $50 million (the “Inventory Facility”). Availability under the Inventory Facility is subject to a borrowing base consisting of (i) 85% of the net orderly liquidation value of eligible coal inventory, plus (ii) the lesser of (x) 85% of the net orderly liquidation value of eligible parts and supplies inventory and (y) 35% of the amount determined pursuant to clause (i), plus (iii) 100% of Arch Resources’ Eligible Cash (defined in the Inventory Facility), subject to reduction for reserves imposed by Regions.

The amendment of the Inventory Facility extended the maturity of the facility to August 3, 2025; maintained the minimum liquidity requirement of $100 million and included provisions that reduce the advance rates for coal inventory and parts and supplies, depending on liquidity, as defined in the agreement.

The Inventory Facility contains certain customary affirmative and negative covenants; events of default, subject to customary thresholds and exceptions; and representations, including certain cash management and reporting requirements that are customary for asset-based credit facilities. The Inventory Facility also includes a requirement to maintain liquidity equal to or exceeding $100 million at all times. As of September 30, 2024, letters of credit totaling $26.2 million were outstanding under the facility with $23.8 million available for borrowings.

Equipment Financing

On July 29, 2021, the Company entered into an equipment financing arrangement accounted for as debt. The Company received $23.5 million in exchange for conveying an interest in certain equipment in operation at its Powder River Basin operations and entered into a master lease arrangement for that equipment. The financing arrangement contains customary terms and events of default and provides for 42 monthly payments with an average implied interest rate of 7.35% maturing on February 1, 2025. Upon maturity, the Company will have the option to purchase the equipment.

Tax Exempt Bonds

On July 2, 2020, the West Virginia Economic Development Authority (the “Issuer”) issued $53.1 million aggregate principal amount of Solid Waste Disposal Facility Revenue Bonds (Arch Resources Project), Series 2020 (the “Tax Exempt Bonds”) pursuant to an Indenture of Trust dated as of June 1, 2020 between the Issuer and Citibank, N.A., as trustee (the “Trustee”). On March 4, 2021, the Issuer issued an additional $45.0 million of Series 2021 Tax Exempt Bonds. The proceeds of the Tax Exempt Bonds were loaned to the Company pursuant to a Loan Agreement dated as of June 1, as supplemented by a First Amendment to Loan Agreement dated as of March 1, 2021 (collectively, the “Loan Agreement”), each between the Issuer and the Company. The Tax Exempt Bonds are payable solely from payments to be made by the Company under the Loan Agreement as evidenced by a Note from the Company to the Trustee. The

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proceeds of the Tax Exempt Bonds have been used to finance certain costs of the acquisition, construction, reconstruction, and equipping of solid waste disposal facilities at the Company’s Leer South development, and for capitalized interest and certain costs related to issuance of the Tax Exempt Bonds.

The Tax Exempt Bonds bear interest payable each January 1 and July 1, commencing January 1, 2021 for the Series 2020 and July 1, 2021 for the Series 2021, and have a final maturity of July 1, 2045; however, the Tax Exempt Bonds are subject to mandatory tender on July 1, 2025 at a purchase price equal to 100% of the principal amount of the Tax Exempt Bonds, plus accrued interest to July 1, 2025. The Series 2020 and Series 2021 Tax Exempt Bonds bear interest of 5% and 4.125%, respectively.

Convertible Debt

On November 3, 2020, the Company issued $155.3 million in aggregate principal amount of 5.25% convertible senior notes due 2025 (“Convertible Notes ” or “Convertible Debt”). The net proceeds from the issuance of the Convertible Notes, after deducting offering related costs of $5.1 million and cost of a “Capped Call Transaction” as defined below of $17.5 million, were approximately $132.7 million.

During the nine months ended September 30, 2023, the Company repurchased the remaining Convertible Notes with a principal amount of $13.2 million for aggregate consideration consisting of $58.4 million in cash. In connection with the repurchase, the Company recognized a loss of $1.1 million. This amount is included as “Net loss resulting from early retirement of debt” in the accompanying Condensed Consolidated Statements of Operations.

Capped Call Transactions

On February 16, 2024, the Company agreed with each of Bank of Montreal, Goldman Sachs & Co. LLC and Jefferies International Limited (each a “Counterparty” and collectively, the “Counterparties”) to terminate and unwind certain capped call transactions by and between the Company and each Counterparty (such transactions, the “Capped Calls”). The Company entered into the Capped Calls in connection with the offering of its now-retired Convertible Notes, in order to reduce the potential dilution upon conversion of the notes. During the nine months ended September 30, 2024, the Company retired 315,721 of its outstanding shares via the termination and unwinding of the capped calls.

10. Income Taxes

The Company's effective tax rate for nine months ended September 30, 2024 is based on its estimated full year effective tax rate, adjusted for discrete items. Due to the pretax loss incurred during the quarter and the related impact to the Company’s estimated full year tax rate, the effective tax rate for the three and nine months ended September 30, 2024 was 50.8% and (1.4)%, respectively. The effective tax rates for the three and nine months ended September 30, 2024 differs from the U.S. federal statutory rate of 21%, primarily due to the income tax benefit for excess percentage depletion. The effective tax rate for nine months ended September 30, 2024 also includes the impact of discrete tax benefits related to equity compensation.

For the three and nine months ended September 30, 2023, the Company's effective tax rate was 18.6% and 16.1%, respectively. The effective tax rates for the three and nine months ended September 30, 2023 differs from the U.S. federal statutory rate of 21%, primarily due to the income tax benefit for excess percentage depletion and discrete tax benefits related to equity compensation.

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11. Fair Value Measurements

The hierarchy of fair value measurements assigns a level to fair value measurements based on the inputs used in the respective valuation techniques. The levels of the hierarchy, as defined below, give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

●

Level 1 is defined as observable inputs, such as quoted prices in active markets for identical assets. Level 1 assets include U.S. Treasury securities.

●

Level 2 is defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s Level 2 assets and liabilities include U.S. government agency securities, with fair values derived from quoted prices in over-the-counter markets or from prices received from direct broker quotes.

●

Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The table below sets forth, by level, the Company’s financial assets and liabilities that are recorded at fair value in the accompanying Condensed Consolidated Balance Sheet:


	September 30, 2024
	Total		Level 1		Level 2		Level 3

	(In thousands)
Assets:
Investments in marketable securities	$	36,347	$	14,912	$	21,435	$	—
Fund for asset retirement obligations		147,932		147,932		—		—
Total assets	$	184,279	$	162,844	$	21,435	$	—


	December 31, 2023
	Total		Level 1		Level 2		Level 3

	(In thousands)
Assets:
Investments in marketable securities	$	32,724	$	28,773	$	3,951	$	—
Fund for asset retirement obligations		142,266		142,266		—		—
Total assets	$	174,990	$	171,039	$	3,951	$	—

Fair Value of Long-Term Debt

At September 30, 2024 and December 31, 2023, the fair value of the Company’s debt, including amounts classified as current, was $128.2 million and $142.1 million, respectively. Fair values are based upon observed prices in an active market, when available, or from valuation models using market information, which fall into Level 2 in the fair value hierarchy.

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12. Earnings per Common Share

The Company computes basic net income (loss) per share using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities may consist of warrants, restricted stock units, and convertible debt. The dilutive effect of outstanding warrants and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method whereas the Convertible Debt uses the if converted method. The weighted-average share impact of restricted stock units that were excluded from the calculation of diluted shares due to the Company incurring a net loss for the three months ending September 30, 2024 was 197,677 shares.

The following table provides the basic and diluted earnings per share by reconciling the numerators and denominators of the computations:



		Three Months Ended September 30,			Nine Months Ended September 30,
		2024		2023	2024		2023

(In Thousands)
Net income (loss) attributable to common shares	$	(6,221)	$	73,691	$	64,565	$	349,152
Adjustment of interest expense attributable to Convertible Notes		—		—		—		108
Diluted net income (loss) attributable to common stockholders		(6,221)		73,691		64,565		349,260

Basic weighted average shares outstanding		18,097		18,187		18,180		18,189
Effect of dilutive securities		—		653		270		969
Convertible Notes (a)		—		—		—		112
Diluted weighted average shares outstanding		18,097		18,840		18,450		19,270

(a)

Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted at the beginning of the year ended December 31, 2023. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. The Capped Call Transaction is anti-dilutive and was excluded from the calculation of diluted earnings per share.

13. Workers’ Compensation Expense

The Company is liable under the Federal Mine Safety and Health Act of 1969, as subsequently amended, to provide pneumoconiosis (occupational disease) benefits to eligible employees, former employees and dependents. The Company currently provides for federal claims principally through a self-insurance program. The Company is also liable under various state workers’ compensation statutes for occupational disease benefits. The occupational disease benefit obligation represents the present value of the actuarially computed present and future liabilities for such benefits over the employees’ applicable years of service.

In October 2019, the Company filed an application with the Office of Workers’ Compensation Programs (“OWCP”) within the Department of Labor for reauthorization to self-insure federal black lung benefits. In February 2020, the Company received a reply from the OWCP confirming its status to remain self-insured contingent upon posting additional collateral of $71.1 million within 30 days of receipt of the letter. The Company is currently appealing the ruling from the OWCP and has received an extension to self-insure during the appeal process.

On January 18, 2023, the OWCP proposed revisions to regulations under the Black Lung Benefits Act governing authorization of self-insurers. The revisions seek to codify the practice of basing a self-insured operator’s security requirement on an actuarial assessment of its total present and future black lung liability. A material change to the regulations is the requirement that all self-insured operators must post security equal to 120% of their projected black lung liabilities.

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The proposed regulations were posted to the Federal Register on January 19, 2023 with written comments to be accepted within 60 days of this date. A subsequent extended comment period expired on April 19, 2023. On May 10, 2024, the OWCP forwarded its final rule establishing requirements for Black Lung Benefits Act self-insurance to the Office of Management and Budget (“OMB”) for review. OMB is charged by various executive orders to review significant regulations. OMB reviews are limited to 90 days and may be extended by an additional 30 days; however, OMB reviews often take longer. At this stage in the rulemaking process, no rule text is publicly available, and the final regulations have not yet been published.

If the above regulation is codified into law, the Company will be required to post additional collateral to maintain its self-insured status. The Company is evaluating alternatives to self-insurance, including the purchase of commercial insurance to cover these claims. Additionally, the Company is assessing additional sources of liquidity, and other items to satisfy the proposed regulations.

In addition, the Company is liable for workers’ compensation benefits for traumatic injuries which are calculated using actuarially-based loss rates, loss development factors and discounted based on a risk free rate. Traumatic workers’ compensation claims are insured with varying retentions/deductibles, or through state-sponsored workers’ compensation programs.

Workers’ compensation (credit) expense consists of the following components:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

	(In thousands)
Self-insured occupational disease benefits:
Service cost	$	1,278	$	993	$	3,833	$	2,980
Interest cost⁽¹⁾		1,565		1,511		4,696		4,531
Net amortization⁽¹⁾		(3)		(241)		(8)		(723)
Total occupational disease	$	2,840	$	2,263	$	8,521	$	6,788
Traumatic injury claims and assessments		2,940		(6,834)		8,016		(2,403)
Total workers’ compensation (credit) expense	$	5,780	$	(4,571)	$	16,537	$	4,385

(1)

In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Condensed Consolidated Statements of Operations on the line item “Non-service related pension and postretirement benefit credits.”

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14. Employee Benefit Plans

The following table details the components of pension benefit credit:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

	(In thousands)
Interest cost⁽¹⁾	$	11	$	1,023	$	34	$	4,090
Expected return on plan assets⁽¹⁾		—		(1,012)		—		(4,048)
Pension settlement⁽¹⁾		(2,000)		(3,986)		(2,000)		(3,986)
Amortization of prior service credits ⁽¹⁾		—		(25)		—		(98)
Amortization of other actuarial (gains) ⁽¹⁾		(22)		(129)		(67)		(519)
Net benefit credit	$	(2,011)	$	(4,129)	$	(2,033)	$	(4,561)

The following table details the components of other postretirement benefit credit:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

	(In thousands)
Service cost	$	49	$	58	$	148	$	173
Interest cost⁽¹⁾		605		674		1,815		2,021
Amortization of other actuarial gains ⁽¹⁾		(1,981)		(2,422)		(5,943)		(7,267)
Net benefit credit	$	(1,327)	$	(1,690)	$	(3,980)	$	(5,073)

(1)

In February 2022, the Company’s Board of Directors approved the termination of the Company’s Cash Balance Pension Plan. The Company has executed plan amendments regarding the termination and filed an Application for Determination for Terminating Pension Plan with the Internal Revenue Service (“IRS”), which was approved by the IRS during the first quarter of 2023. The Company also prepared and filed appropriate notices and documents related to the Pension Plan's termination and wind-down with the Pension Benefit Guaranty Corporation. The Company no longer administers or pays the retirement benefits of the Cash Balance Pension Plan.

(1)

15. Commitments and Contingencies

The Company accrues for costs related to contingencies when a loss is probable and the amount is reasonably determinable. Disclosure of contingencies is included in the financial statements when it is at least reasonably possible that a material loss or an additional material loss in excess of amounts already accrued may be incurred.

The Company is a party to numerous claims and lawsuits with respect to various matters. The ultimate resolution of any such legal matter could result in outcomes that may be materially different from amounts the Company has accrued for such matters. The Company believes it has recorded adequate reserves for these matters.

In the normal course of business, the Company is a party to certain financial instruments with off-balance sheet risk, such as bank letters of credit, performance or surety bonds, and other guarantees and indemnities related to the obligations of affiliated entities that are not reflected in the Company’s Condensed Consolidated Balance Sheets. However, the underlying liabilities that they secure, such as asset retirement obligations, workers’ compensation liabilities, and other obligations, are reflected in the Company’s Condensed Consolidated Balance Sheets.

As of September 30, 2024, the Company had outstanding surety bonds with a face amount of $488.5 million to secure various obligations and commitments and $76.7 million of letters of credit under its Securitization and Inventory

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Facilities used to collateralize certain obligations. The Company posted $5.6 million in cash collateral related to various obligations; this amount is recorded within “Other noncurrent assets” on the Condensed Consolidated Balance Sheets.

As of September 30, 2024, the Company’s reclamation-related obligations of $273.4 million were supported by surety bonds of $402.2 million. The Company has posted $0.6 million in cash collateral related to reclamation surety bonds. Additionally, in the first nine months of 2024, the Company contributed an additional $5.6 million representing interest earned to a fund that will serve to defease the long-term asset retirement obligation for its thermal asset base bringing the total to $147.9 million as of September 30, 2024. This amount is recorded as “Fund for asset retirement obligations” on the Condensed Consolidated Balance Sheets.

16. Segment Information

The Company’s reportable business segments are based on two distinct lines of business, metallurgical and thermal, and may include a number of mine complexes. The Company manages its coal sales by market and coal quality, not by individual mining complex. Geology, coal transportation routes to customers, and regulatory environments also have a significant impact on the Company’s marketing and operations management. Mining operations are evaluated based on Adjusted EBITDA, per-ton cash operating costs (defined as including all mining costs except depreciation, depletion, amortization, accretion on asset retirement obligations, and pass-through transportation expenses, divided by segment tons sold), and on other non-financial measures, such as safety and environmental performance. 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 the Company’s financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income (loss), income (loss) from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses Adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate the Company’s operating performance. Investors should be aware that the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The Company reports its results of operations primarily through the following reportable segments: Metallurgical (MET) segment, containing the Company’s metallurgical operations in West Virginia, and the Thermal segment containing the Company’s thermal operations in Wyoming and Colorado.

Reporting segment results for the three and nine months ended September 30, 2024 and 2023 are presented below. The Corporate, Other, and Eliminations grouping includes these charges: idle operations; equity investments; change in fair value of coal derivatives, net; corporate overhead; land management activities; certain miscellaneous revenue; and the elimination of intercompany transactions.

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					Corporate,
					Other and
(In thousands)	MET		Thermal		Eliminations		Consolidated
Three Months Ended September 30, 2024
Revenues	$	361,916	$	255,983	$	—	$	617,899
Adjusted EBITDA		54,167		12,847		(22,853)		44,161
Depreciation, depletion and amortization		32,702		7,864		324		40,890
Accretion on asset retirement obligation		647		4,810		412		5,869
Capital expenditures		23,438		10,818		266		34,522

Three Months Ended September 30, 2023
Revenues	$	432,835	$	311,766	$	—	$	744,601
Adjusted EBITDA		128,322		23,373		(25,404)		126,291
Depreciation, depletion and amortization		29,494		7,001		222		36,717
Accretion on asset retirement obligation		651		4,314		327		5,292
Capital expenditures		33,806		10,369		249		44,424

Nine Months Ended September 30, 2024
Revenues	$	1,154,938	$	751,902	$	—	$	1,906,840
Adjusted EBITDA		270,978		14,846		(78,841)		206,983
Depreciation, depletion and amortization		95,181		22,130		838		118,149
Accretion on asset retirement obligation		1,942		14,430		1,236		17,608
Capital expenditures		94,603		29,315		2,970		126,888

Nine Months Ended September 30, 2023
Revenues	$	1,420,758	$	951,068	$	—	$	2,371,826
Adjusted EBITDA		524,218		98,807		(89,007)		534,018
Depreciation, depletion and amortization		85,575		22,057		641		108,273
Accretion on asset retirement obligation		1,880		12,941		1,056		15,877
Capital expenditures		94,205		25,904		921		121,030

A reconciliation of net income (loss) to Adjusted EBITDA and segment Adjusted EBITDA from coal operations follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Net income (loss)	$	(6,221)	$	73,691	$	64,565	$	349,152
(Benefit from) provision for income taxes		(6,608)		16,781		(887)		66,839
Interest expense, net		(1,753)		(1,683)		(5,007)		(1,557)
Depreciation, depletion and amortization		40,890		36,717		118,149		108,273
Accretion on asset retirement obligations		5,869		5,292		17,608		15,877
Merger related costs		7,002		—		7,002		—
Severance costs related to voluntary separation plan		6,649		—		6,649		—
Non-service related pension and postretirement benefit credits		(1,667)		(4,507)		(1,096)		(5,692)
Net loss resulting from early retirement of debt		—		—		—		1,126
Adjusted EBITDA	$	44,161	$	126,291	$	206,983	$	534,018
EBITDA from idled or otherwise disposed operations		4,101		30		11,493		8,726
Selling, general and administrative expenses		20,603		24,279		68,708		73,092
Other		(1,851)		1,095		(1,360)		7,189
Segment Adjusted EBITDA from coal operations	$	67,014	$	151,695	$	285,824	$	623,025

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17. Revenue Recognition

ASC 606-10-50-5 requires that entities disclose disaggregated revenue information in categories (such as type of goods or services, geography, market, type of contract, etc.) that depict how the nature, amount, timing, and uncertainty of revenue and cash flow are affected by economic factors. ASC 606-10-55-89 explains that the extent to which an entity’s revenue is disaggregated depends on the facts and circumstances that pertain to the entity’s contracts with customers and that some entities may need to use more than one type of category to meet the objective for disaggregating revenue.

In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of its coal and customer relationships and provides meaningful disaggregation of each segment’s results. The Company has further disaggregated revenue between North America and Seaborne revenues which depicts the pricing and contract differences between the two. North America revenue is characterized by contracts with a term of one year or longer and typically the pricing is fixed; whereas Seaborne revenue generally is derived from spot or short-term contracts with an index-based pricing mechanism.


					Corporate,
					Other and
	MET		Thermal		Eliminations		Consolidated

	(in thousands)
Three Months Ended September 30, 2024
North America revenues	$	76,254	$	221,048	$	—	$	297,302
Seaborne revenues		285,662		34,935		—		320,597

Total revenues	$	361,916	$	255,983	$	—	$	617,899

Three Months Ended September 30, 2023
North America revenues	$	108,895	$	251,759	$	—	$	360,654
Seaborne revenues		323,940		60,007		—		383,947

Total revenues	$	432,835	$	311,766	$	—	$	744,601

Nine Months Ended September 30, 2024
North America revenues	$	179,051	$	610,794	$	—	$	789,845
Seaborne revenues		975,887		141,108		—		1,116,995

Total revenues	$	1,154,938	$	751,902	$	—	$	1,906,840

ARCH RESOURCES, INC. 10-Q