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Howard Weil 42nd Annual Energy Conference – Arch Coal Inc.

Arch Coal Inc. · Mar 24, 2014 · 15 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 1
    Archs Asset Portfolio Arch is the most diversified U.S. coal producer, and the No. 2 reserve holder in the nation 5+ BillionTon Reserve Base Powder River Basin Appalachia Bituminous Thermal 430 Met/PCI 3,198 million tons…
  2. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 2
    Archs asset base includes a leading, low-cost Powder River Basin position with meaningful available capacity Southern Powder River Basin (2013 production, in millions of tons) Arch has a strong position in the PRB, the nations largest…
  3. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 3
    Arch commences operation of Leer longwall Prep Plant & Train Loadout All major Leer mine infrastructure, including the preparation plant and rail loadout, is up and running Longwall began operating in late 2013, and is expected…
  4. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 4
    Arch expects to play a larger role in the expanding seaborne coal trade 1.7 Seaborne coal trade 2013 billion Archs export volumes 11.5 tons million tons 2012 13 million tons 1.35 30 1 billion tons million tons billion 2020P…
  5. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 5
    Archs strong cost containment and process improvement initiatives are yielding results Powder River Basin (cash costs per ton) Demonstrating the success of process improvement initiatives 0.54 11.19 per ton reduction Controlling…
  6. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 6
    Arch is monetizing non-core assets that dont fit with the companys long-term strategic growth plans Canyon Fuel sale completed in August 2013 for 423 million in cash Transaction pulled forward multiple years of cash flow Sale…
  7. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 7
    Arch extends its funded debt maturity profile to 2018 Debt Maturity Profile (in millions) Short-term debt No long-term debt maturities until 2018 Existing, unsecured bonds Term loan 1,930 350 A significant portion Second lien…
  8. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 8
    Coal Market Update The U.S. plays a sizable and steady role in global metallurgical markets 2012 Metallurgical Export Coal Supply (in millions of metric tonnes) Australia 147 U.S. 64 Canada 29 Mongolia 27 Russia 17 Low-Vol…
  9. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 9
    Incremental metallurgical coal supply growth has outpaced demand growth, depressing prices Additional Seaborne Metallurgical Coal Supply, Before Depletions (in millions of metric tonnes) New metallurgical coal supply 30 Australia…
  10. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 10
    Nations around the world are building coal-based power plants to fuel electricity needs New Coal-Fueled Generation Coming Online by 2018 Capacity under construction, in GW, from 2014-2018 CIS Countries Europe 3 China 12 India…
  11. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 11
    European coal consumption remains strong despite regulatory pressures Coal Burn in Europe With natural gas prices at nearly twice (in millions of metric tonnes) the level prevailing in the U.S., Europe is consuming more coal…
  12. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 12
    Arch sees improving trends in U.S. coal markets during 2014 2014P Positive market trends in 2013 helped (in millions of tons) directional change liquidate the large buildup in U.S. generator coal stockpiles from 2012: Power…
  13. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 13
    Stockpiles at Powder River Basin customers are liquidating at a fast pace Powder River Basin Days of Supply Stockpiles at PRB 100 5-year min & max range customers declined 2013 below 60 days of supply 90 in December 2013 80…
  14. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 14
    Over the longer term, Arch expects 60 GW of coal- based generating capacity to retire by 2018, but the impact on coal consumption will not be as large Coal Consumption for Power Generation Supply Delivered to At-Risk Plants in 2013 (based…
  15. Howard Weil 42nd Annual Energy Conference – Arch Coal Inc. – slide 15
    Ongoing supply rationalization will bring balance to coal markets Appalachian thermal coal is in long-term secular decline. Arch expects thermal output in the region to fall further in 2014. Appalachian* Output Thermal Met (in…

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