Fourth Quarter 2019 and Full Year 2019 Highlights Include:
-Cash distribution of $0.5125 per limited partner unit for 4Q19;
-Net income of $9.0 million and $45.6 million for 4Q19 and 2019,
respectively;
-Adjusted EBITDA of $23.6 million and $99.4 million for 4Q19 and
2019, respectively;
-Distribution coverage ratio of 0.9x for 4Q19 and 1.0x for 2019;
-Net leverage ratio of 1.8x as of December 31, 2019;
-Second strongest sales volume year ever for the Pennsylvania Mining
Complex (PAMC); and
-Harvey Mine achieved annual production record.
|
|
Three Months Ended |
|
|
December 31, 2019 |
December 31, 2018 |
Coal Production |
thousand tons |
1,680 |
1,710 |
Coal Sales |
thousand tons |
1,680 |
1,750 |
Average Revenue Per Ton |
per ton |
$45.14 |
$49.81 |
Average Cash Cost of Coal Sold |
per ton |
$30.38 |
$30.54 |
Average Cash Margin Per Ton Sold |
per ton |
$14.76 |
$19.27 |
Operations Summary
CCR produced 1.68 million tons in the fourth quarter of 2019, which
compares to 1.71 million tons in the year-ago quarter. This brings
total CCR production to 6.82 million tons in 2019, which is the
second highest production year in the PAMC's history. Despite a
challenged commodity market, the complex ran at approximately 96%
capacity utilization during 2019, highlighting the sustained
desirability of our product. Additionally, our Harvey mine set an
individual production record during the year of 1.26 million tons,
exceeding its previous record set in 2018. This also marks its third
consecutive record-setting year.
Our total costs during the fourth quarter of 2019 were $70.8 million
compared to $72.7 million in the year-ago period. Average cash cost
of coal sold per ton1 for the fourth quarter was $30.38 compared to
$30.54 in the year-ago quarter. The decrease was due to reduced
maintenance and supply costs and contractor and purchased services
costs. For 2019, our total costs were $287.4 million compared to
$290.6 million in the prior year. Our 2019 average cash cost of coal
sold per ton1 was $30.97 compared to $29.29 for 2018. The increase
was primarily driven by additional equipment rebuilds and longwall
overhauls due to the timing of longwall moves and panel development.
Also, the Partnership faced atypical challenges during the current
year, including a roof fall and equipment breakdowns, resulting in
higher mine maintenance and project expenses. Subsidence expense
also increased in the year-to-year comparison, primarily due to the
timing and nature of the properties undermined.
2020 Guidance and Outlook
Based on our current contracted position, estimated prices and
production plans, we are providing the following financial and
operating performance guidance for 2020.
-Coal sales volumes - 6.1-6.6 million tons
-Coal average revenue per ton - $43.00-$45.00
-Cash cost of coal sold per ton - $30.00-$31.50
-Adjusted EBITDA - $67-$80 million
-Capital expenditures - $25-$30 million
Related Link:
Official Document |