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Dec 31, 2023
Warrior Met Coal Q4 2023 Earnings Report
Warrior Met Coal reported strong Q4 2023 results, driven by increased production and sales volumes, and made significant progress in developing its Blue Creek growth project.
Key Takeaways
Warrior Met Coal reported Q4 2023 net income of $128.9 million, or $2.47 per diluted share, compared to net income of $99.7 million, or $1.93 per diluted share, in the fourth quarter of 2022. The Company reported Adjusted EBITDA of $163.7 million in the fourth quarter of 2023, compared to Adjusted EBITDA of $147.5 million in the fourth quarter of 2022.
Achieved net income of $128.9 million and Adjusted EBITDA of $163.7 million in the fourth quarter.
Recorded a 34% increase in sales volumes and a 21% increase in production volumes for the full year.
Generated $701.1 million of cash from operating activities during 2023.
Made excellent progress in developing the Blue Creek growth project, investing $127.8 million in the fourth quarter.
Warrior Met Coal
Warrior Met Coal
Forward Guidance
The Company's outlook for 2024 is subject to many risks that may impact performance, such as market conditions in the steel and steelmaking coal industries and overall global economic and competitive conditions.
Positive Outlook
- Coal sales between 7.4 - 8.2 million short tons
- Coal production between 7.4 - 8.0 million short tons
- Capital expenditures for sustaining existing mines $100 - $110 million
- Blue Creek project and other discretionary capital expenditures $335 - $390 million
- Mine development costs $28 - $38 million
Challenges Ahead
- Four planned longwall moves (Q1, Q3, and Q4 has two moves)
- HCC index pricing, geography of sales and freight rates
- Exclusion of other non-recurring costs
- New labor contract
- Inflationary pressures