Skip to main contentBrean Capital 2014 Global Resources & Infrastructure Conference – Alpha Natural Resources Inc. Investor Presentation | Shale Experts
2014 BMO 23rd Global Metals and Mining Conference Brean Capital 2014 Global Resources & Infrastructure Conference May 28, 2014
Alpha Natural Resources Highlights Highlights Comments Top 3 U.S. coal producer based on key metrics: reserves, revenues Global Size and Scale Size and scale to weather short-term headwinds and capitalize on future market upturn…
Alpha Natural Resources Overview Strategy to Create an Industry Leader 4
Focus on Strategy Execution Support and augment metallurgical coal franchise Maximize Shareholder Value Create Address durable, non- sustainable strategic steam coal operations portfolio 5
Proactive Management Position ANR for Future Aggressive Operating Cost Reductions in 2013 and 2014 to Enhance Cost Structure for Current Market Environment MP Est. Change Category 2012 2013 2014* from 2012 Eastern cost/ton** 73.77…
Proactive Management Position ANR for Future Aggressive SG&A and Capex Reductions in 2013 and 2014 MP Est. Change Category 2012 2013 2014* from 2012 SG&A (in millions) 209.8 159.0 125.0 -84.8 Capex (in millions) 498.1 257.8 250.0…
Proactive Management Position ANR for Future Monetized Portion of Alphas Natural Gas Portfolio Monetized a portion of Alpha's Marcellus acreage for 300 million; 100mm in cash and 9.5mm shares of RICE* Alpha has entered into a new JV…
Proactive Management Position ANR for Future Enhanced Financial Flexibility Amended credit agreement: 3/31/14 Debt Maturity Profile* Extended holiday on interest ( in millions) coverage ratio through 2015 1,429 Provided…
Leading Global Supplier 170 Customers in 29 Countries on 5 Continents Europe: Conneaut, OH Canada/Mexico: Sweden 6.8mm tons Met Finland Baltimore, MD 1.1mm tons Met 2.6mm Russia tons Thermal Lamberts United Kingdom…
Large Port Capacity = Flexibility Alpha Has The Largest Port Capacity Of Any U.S. Coal Producer U.S. East Coast DTA - Virginia Alpha owns 41% share Lamberts Point - Virginia Alpha is the largest shipper Pier IX - Virginia Alpha…
Operational Diversification = Flexibility Western Coal Operations 2013 Eastern Coal Operations 2013 38.2 million tons thermal 28.6 million tons thermal 20.1 million tons met Total Mines: 86* WYOMING Underground 60; Surface 26 Prep…
More Balanced Growth Forecast for 2014 Global Steel Use Growth Rates 2012-2014F 10.0% 8.4% 8.0% 6.3% 6.0% 5.5% 5.0% 4.3% 4.6% 4.6% 4.0% 3.2% 3.1%2.8% 2.8% 3.0% 3.1%3.3% 2.1% 2.0% 2.0% 1.3% 0.2% 0.0% European Union Other…
U.S. Exports Strong in 2013 2013 Exports Reached 117mm Tons: 66mm Met, 51mm Thermal Met Exports (mm short tons) Thermal Exports (mm short tons) YoY YoY Region 2011 2012 2013 Region 2011 2012 2013 Change % Change % North America 5.1…
U.S Export Headwinds - Forex Unfavorable Exchange Ratios Lower the Competitiveness of U.S. Coals The Australian Dollar has depreciated 12% to Its not just the Australian DollarMost global the USD since early 2013 mining currencies have…
Coal Demand Still Growing Robustly Sources: Platts 18
Coal Demand Still Growing Robustly Sources: World Resources Institute 19
U.S. Steam Market Has Multiple Challenges Gas Regulations Level of Impact High U.S. Economy and Demand Medium High Growth Medium Low Cost Exports / Global Coal Supply Macroeconomic Substitution Climate 21
Financial Overview Resources to Enhance Shareholder Value 22
ANR: Historical Financial Results Revenue and Adjusted EBITDA Continue aggressive capex, SG&A and 8,000 7,108 operating cost control 6,975 7,000 2012 & 2013 FCF impacted by litigation 6,000 4,954 related disbursements & markets…
Strategically Positioned for Future Leading global coal producer with broad by product and regional diversification Top 5 globally in metallurgical coal 170 customers in 29 countries More export capacity than any other US producer…
Appendices www.alphanr.com 26
Reconciliation of Adjusted EBITDA Reconciliation of EBITDA from Continuing Operations to Income (Loss) from Continuing Operations and Reconcilition of Adjusted EBITDA from Continuing Operations to EBITDA from Continuing Operations…
Reconciliation of Free Cash Flow Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities Years Ended December 31, 2013 2012 2011 2010 2009 2008 2007 2006 2005 Net cash provided by operating activities 109,018…
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, 2013 December 31, 2012 Cost of coal sales per ton-East 72.51 71.76 Impact…
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