Highlights of the CCR Second quarter 2019 results include:
-Cash
distribution of $0.5125 per unit;
-Net
income of $14.4 million;
-Adjusted
EBITDA of $27.6 million;
-Distribution
coverage ratio of 1.2x;
-Net
leverage ratio of 1.6x; and
-Increased
2020 contracted coal sales volume to 80%.
Operations
Summary
CCR
achieved a second quarter production of 1.8 million tons, which compares
to 1.9 million tons in the second quarter of 2018. The decline in coal
production was due to the impact of an additional longwall move in 2Q19
and slower start-up of the longwall after the move. At our Harvey mine, we
set a new quarterly production record of 384 thousand tons.
Total
costs during the second quarter were $75.3 million compared to $78.7
million in the year-ago quarter. Average cash cost of coal sold per
ton was $31.07 compared to $26.99 in the year-ago
quarter. The impairment to cost per ton was largely driven by lower fixed
cost leverage, higher mine maintenance cost and project expense. Since the
fourth quarter of 2017, we have seen inflation in the cost of supplies
that contain steel and other commodities. However, with steel prices
declining, we expect to see some relief as some of our supply contracts
reset. We have been successful in managing these cost pressures and
keeping our overall cost increases within our annual guidance range.
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Three Months
Ended
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June 30, 2019
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June 30, 2018
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Coal
Production
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million tons
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1.8
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1.9
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Coal Sales
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million tons
|
1.8
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2
|
Average
Revenue Per Ton
|
per ton
|
$47.53
|
$47.34
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Average Cost
of Coal Sold
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per ton
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$31.07
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$26.99
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Average Cash
Margin Per Ton Sold
|
per ton
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$16.46
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$20.35
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2019
Guidance and Outlook
Based
on our year-to-date results, current contracted position, estimated prices
and production plans, please find below our financial and operating
performance guidance for 2019.
-Coal
sales volumes - 6.70-6.95 million tons
-Average
revenue per ton - $47-$48
-Average
cash cost of coal sold per ton - $30.40-$31.40
-Adjusted
EBITDA - $95-$103 million
-Capital
expenditures - $34-$38 million
Related Link: Official Document
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