2nd Annual Clarkson Platou Securities Roundtable Discussion Mining and Drybulk May 21, 2015 [September 2,] 2014
4 Moving Alpha Forward Experienced management team focused on right-sizing mine portfolio to mitigate near-term pressure and drive toward long-term value creation Continued focus on proactively managing balance sheet and liquidity -…
5 Experienced Industry Leadership Management Team with Long Track Record and Deep Expertise Track record of selective growth and conservative balance sheet management through all market cycles Periodic portfolio reviews to…
6 Alphas Inherent Strengths Operational diversification Leading global supplier Large port capacity Positioned to execute in all parts of the cycle Aggressive management of thermal costs and production Effective early…
8 Operational Diversification Geography Total Mines: 58* Western Coal Operations 2014 (Underground 45; Surface 13) 36.5 million tons thermal Prep Plants: 22* Eastern Coal Operations 2014 29.5 million tons thermal 18.6 million…
9 Leading Global Supplier 150 Customers in 26 Countries on 5 Continents Europe 6.5mm tons Met 4.8mm tons Thermal Canada/Mexico 0.7mm tons Met 0.1mm tons Thermal Asia 1.9mm tons Met Africa/Middle East 2.2mm tons Met 0.3mm…
10 Large Port Capacity Alpha Has the Largest Port Capacity of Any U.S. Coal Producer U.S. East Coast Legend DTA - Virginia Anthracite - Alpha owns 41% share Bituminous Lamberts Point - Virginia Lignite - Alpha is the largest…
Global Coal Market Overview 11
12 Market Overview Expanding global energy needs lead to rising coal demand Coal is the worlds fastest growing major fuel, and least expensive and most reliable form of Global Demand electricity generation Rapid population growth,…
Metallurgical Coal
14 Metallurgical Coal Strategic Considerations Positioned to Execute in All Parts of the Cycle Daily Hard Coking Coal Price 180 Combination of supply cuts and 160 demand growth expected to balance supply/demand equation…
16 Steady Metallurgical Coal Growth Expected Global Seaborne Metallurgical Growth Rate More than 3% pa from 2014 to 2020 300 252 250 207 200 Millions of Tonnes 150 91 96 100 79 72 59 59 48 50 42 16 17 0…
Thermal Coal
18 Thermal Coal Assets Strategic Considerations Aggressively Managing Costs and Production Volumes CAPP Portfolio likely to shrink over long-term due to continued regulatory and competitive challenges Ongoing focus on safety,…
19 India & China Driving Global Demand China and India Account for 90% of Increased Thermal Coal Demand through 2020 8,000 7,595 6,885 7,000 6,000 Millions of Tonnes 5,000 4,000 3,714 3,278 2,895 2,936 3,000…
20 Evolving Domestic Coal Markets STRUCTURAL Regulation Plant retirements Permitting Interregional competition focused on Operating costs Relative geology CYCLICAL Competition from low- priced natural gas and other coal…
21 Coal Remains 1 Fuel for Electricity Generation Coal Averaging Approximately 38% of U.S Power Generation 200 180 160 140 38% 120 100 TWh 80 27% 60 40 Coal Coal and natural gas generation were about even in April 2012…
Natural Gas
23 Natural Gas Strategic Considerations Monetize, Maintain and Grow Success of Rice Energy JV and significant value creation established blueprint for further success in natural gas Multiple options to unlock value from our natural…
24 Alpha Natural Gas Portfolio Enhances Value JV - Rice Energy Alpha contributed 7,500 Marcellus acres Invested approximately 30 million in capital Gross JV acreage grew to 13,000 acres Number of wells operating at the time of…
25 Alpha Natural Gas Portfolio Enhances Value JV - EDF Trading Resources Alpha contributed 12,000 Marcellus acres, adjacent to Rice Energy Gross JV acreage has since grown to more than 20,000 acres On track to achieve its…
Cost Control, Capital Structure and Liquidity Management
27 Proactive Portfolio Management Aggressive Operating Cost Reductions since 2012 to Enhance Cost Structure for Current Market Environment Change Category 2012 2013 2014 from 2012 Eastern cost/ton* 73.77 71.40 61.66 -12.11…
28 Proactive Portfolio Management Aggressive SG&A and Capex Reductions since 2012 Change Category 2012 2013 2014 from 2012 SG&A (in millions) 209.8 159.0 134.0* -75.8 Capex (in millions) 498.1 257.8 227.2 -270.9 SG&A (in…
29 Prudently Managing Capital Structure & Liquidity Preserve Cash, Maintain Financial Flexibility Maintain maturity profile with limited near-term maturities and manage liquidity to support focused operations while emphasizing…
30 Enhanced Financial Flexibility Recent Proactive Steps: Reduced outstanding debt by nearly 400 million Completed 500 million Sr. Sec. 2nd Lien Notes offering Sold 3.5 million shares of Rice Energy for approximately 91 million…
32 Key Takeaways Leading global coal producer with broad product and regional diversification Top 5 in worldwide met shipments Diversified customer base in more than 25 countries Most port capacity among US producers Strong,…
Appendices alphanr.com
34 Reconciliation Use of Non-GAAP Measures In addition to information prepared in accordance with generally accepted accounting principles in the United States (GAAP) provided throughout this presentation, Alpha has presented adjusted…
35 Reconciliation of Cost of Coal Sales Reconciliation of Adjusted Cost of Coal Sales Per Ton-East to Cost of Coal Sales Per Ton Twelve months ended December 31, 2014 December 31, 2013 December 31, 2012 Cost of coal sales per…
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