Regional Results and Analysis

                   
(in millions, except per ton data) 2012 Third

Quarter
2011 Third

Quarter

% Change

Quarter /

Quarter
2012 Second

Quarter

% Change

Sequential
 

Illinois Basin
Tons sold 6.919 6.631 4.3% 6.977 (0.8)%
Coal sales price per ton (1) $52.20 $50.83 2.7% $53.22 (1.9)%
Segment Adjusted EBITDA Expense per ton (2) $32.04 $31.67 1.2% $32.81 (2.3)%
Segment Adjusted EBITDA (2) $140.3 $127.2 10.3% $142.7 (1.7)%
 

Central Appalachia
Tons sold 0.523 0.616 (15.1)% 0.493 6.1%
Coal sales price per ton (1) $79.96 $79.99 - $80.73 (1.0)%
Segment Adjusted EBITDA Expense per ton (2) $68.04 $59.76 13.9% $62.10 9.6%
Segment Adjusted EBITDA (2) $6.2 $12.5 (50.4)% $9.2 (32.6)%
 

Northern Appalachia
Tons sold 1.467 0.820 78.9% 1.063 38.0%
Coal sales price per ton (1) $65.43 $89.89 (27.2)% $85.35 (23.3)%
Segment Adjusted EBITDA Expense per ton (2) $55.73 $62.07 (10.2)% $71.92 (22.5)%
Segment Adjusted EBITDA (2) $15.8 $23.7 (33.3)% $21.2 (25.5)%
 

Total (3)
Tons sold 8.910 8.326 7.0% 8.661 2.9%
Coal sales price per ton (1) $56.00 $56.89 (1.6)% $59.17 (5.4)%
Segment Adjusted EBITDA Expense per ton (2) $38.48 $37.75 1.9% $40.23 (4.3)%
Segment Adjusted EBITDA (2) $160.2 $166.0 (3.5)% $171.6 (6.6)%
 
(1) Sales price per ton is defined as total coal sales divided by total tons sold.

(2) For definitions of Segment Adjusted EBITDA expense per ton and Segment Adjusted EBITDA and related reconciliations to comparable GAAP financial measures, please see the end of this release.
(3) Total includes White Oak, other, corporate and eliminations.
 

Reflecting higher Illinois Basin and Northern Appalachia sales volumes, ARLP sold a record 8.9 million tons of coal in the 2012 Quarter, an increase of 7.0% over the 2011 Quarter. Coal sales volumes in the Illinois Basin increased from the 2011 Quarter primarily as a result of strong sales and production performance from the Warrior and Gibson North mines and the addition of the Onton mine. In Central Appalachia, lower coal sales volumes compared to the 2011 Quarter reflect the idling of the Pontiki mining complex in August 2012 due to regulatory actions. Compared to the Sequential Quarter, improved coal recoveries at both Central Appalachia mines and increased unit shifts at MC Mining contributed to higher coal sales volumes. Coal sales volumes in Northern Appalachia increased from the 2011 and Sequential Quarters reflecting the start-up of longwall production at the Tunnel Ridge mine in May 2012. Total coal inventory increased by approximately 155,000 tons during the 2012 Quarter to approximately one million tons. The increase primarily reflects higher production and the timing of shipments from our River View mine as barge traffic was impacted by adverse weather-related conditions during the 2012 Quarter. Shipment schedules are returning to normal and ARLP anticipates coal inventories will trend lower to approximately 350,000 tons by the end of the year.

If you liked this article you might like

United States to Withdraw From the Paris Climate Agreement, Sending Coal Stocks Higher

Markets Close at Record High Following Trump's Paris Climate Accord Announcement

Trump Climate Accord Stance May Be Negotiating Tactic for Coal

Consol Directors Double Down On Open Market Share Buys