Alpha Natural Resources Alpha Natural Resources European Investor Presentation Tuohy Brothers 4th Annual Energy Conference August 5, 2013 1
Alpha Natural Resources Highlights Leading U.S. Producer with Global Reach Leading US supplier and exporter of metallurgical coal with expertise in blending and optimization Globally 3 in metallurgical coal by shipment volume Exports…
Alpha Natural Resources Alpha Natural Resources Overview European Investor Presentation Strategy to Create an Industry Leader 4
Focus on Three-Pronged Strategy Support and augment metallurgical coal franchise Create durable, Address non- sustainable strategic steam coal operations portfolio Focus on Maximizing Shareholder Value 5
Strategic Repositioning: Decisive Action Adjusted production and shipments in response to current market & pricing environment Expecting 2013 shipment volumes of approximately 83-91mm tons* Implemented cost containment initiatives…
Leading Global Supplier Customers on 5 continents Europe: Conneaut, OH Sweden 8.8mm tons Finland Baltimore, MD Russia Canada/Mexico: Lamberts United Kingdom Point/Norfolk, VA Netherlands 2.0mm tons Canada Belgium Poland…
Logistics Flexibility Through Port Diversity Total Port Capacity 25 30mm tons U.S. East Coast Dominion Terminal Associates - Virginia Alpha owns 41% share Norfolk Southerns Lamberts Point Terminal - Virginia Alpha is largest…
Operational Diversification Western Coal Operations 2012 Eastern Coal Operations 2012 47 million tons thermal 42 million tons thermal 20 million tons met Total Mines: 91* Underground 66; Surface 25 Prep Plants: 25* * As of…
Multiple Organic Met Coal Opportunities Deep Mine 41 S. CAPP Cresson - AMFIRE Reserve 64MT Freeport Reserve 25MT Production cap. 1.7-1.8mm/yr. Mine Production cap. 600-750K/yr. Mine life 35+ years Mine life 30+ years Capex 45-50…
Alpha Natural Resources Market Overview European Investor Presentation BRICS Drive Global Growth 12
Asia Drives Thermal Demand China 6.2% World CAGR 30,000 25,000 4.4% 3.0% CAGR CAGR Electric Generation (TWh) 20,000 (2009-2020) 2009 2015 2020 15,000 India Other Asia 10,000 2.7% CAGR 6.2% 2.4% 5,000 (2009-2020)…
BRIC Nations Dominate Growth Developing Nations Need Met Coal Steel use in 2012 compared with 2007 Developed World Developing World 600 500 - 15% + 44% Historical Forecast 400 Million Tonnes 300 200 100 0…
Global Met Cutbacks May Increase Announced Global Met Coal Reductions Producer Location The global metallurgical coal market weakened U.S. - Appalachia throughout 2012 and 1H13 U.S. - Appalachia Q3 benchmark of 145/tonne FOBT…
U.S. Steam Mixed; CAPP Issues Persist Reduced coal production and increased burn lead to lower utility inventories YTD U.S. coal production is down 5.7% Coal is 38% of generation today, up from low 30%s in 2Q12 due to higher NG prices…
Regulation Causing Coal Unit Retirements U.S. domestic thermal market remains challenged with announcements of retirements/conversions of coal fired power plants in 28 states Disproportionately impacting Eastern U.S. and CAPP thermal…
Alpha Natural Resources Financial Overview European Investor Presentation Resources to Enhance Shareholder Value 18
ANR: Historical Financial Results Revenue and Adjusted EBITDA 8,000 7,108 Continue aggressive capex, SG&A and 6,975 7,000 operating cost control 6,000 2012 FCF impacted by litigation related 5,000 disbursements & markets 3,917 4,000…
Liquidity & Debt Profile 6/30/13, updated ( millions) Maturity for recent activity 1,100mm Revolving Credit Facility June, 2016 0 Term Loan B May, 2020 625 2.375% Convertible Notes April, 2015 107 3.25% Convertible Notes August,…
Well-Positioned for Future Growth Leading global met producer with consistent performance enhanced by product and regional diversification o 3 globally in metallurgical coal More export capacity than any other US producer allows…
Appendices www.alphanr.com 22
Reconciliation Guidance (in millions, except per ton and percentage amounts) 2013 Average per Ton Sales Realization on NOTES: Committed and Priced Coal Shipments1,2,3 1. Based on committed and priced coal shipments as of July 17,…
Reconciliation of Adjusted EBITDA Alpha Natural Resources, Inc. and Subsidiaries Reconciliation of EBITDA and Adjusted EBITDA to Net Loss (In Thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2013…
Reconciliation of Adjusted Income Alpha Natural Resources, Inc. and Subsidiaries Reconciliation of Adjusted Net Loss to Net Loss (In Thousands Except Shares and Per Share Data) (Unaudited) Three Months Ended Six Months Ended…
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