Contura Energy Inc., a leading U.S. coal supplier, expects total 2019 coal shipments in the range of 24.6 million to 26.7 million tons across all operations for 2019. This includes 12.2 million to 12.8 million tons of Central Appalachia metallurgical coal, 4.6 million to 5.2 million tons of CAPP thermal coal, and 1 million to 1.5 million tons of met coal. Northern Appalachia shipments are anticipated to be between 6.8 million and 7.2 million tons, according to Contura Energy.
“Through the completion of our recent merger with Alpha Natural Resources, Contura’s operational scale, production flexibility, and experienced workforce combine to create the premier met coal supplier in the U.S., complemented by a cost-effective eastern thermal coal portfolio,” said Kevin Crutchfield, chief executive officer. “Contura is well-positioned within both domestic and international markets for an active and successful 2019.”
As of January 7, approximately 40% of the midpoint of anticipated 2019 CAPP metallurgical coal shipments were committed and priced at an average expected per-ton realization of $123.10, with an additional 26% committed and either unpriced or priced based on various indices. Based on the midpoint of guidance, 90% of anticipated 2019 NAPP coal shipments were committed and priced at an average expected per-ton realization of $43.10 and the CAPP thermal segment had 81% of its anticipated 2019 shipments committed and priced at $54.60 per ton.
Contura’s capital expenditures for 2019 are expected to be in the range of $170 million to $190 million, including approximately $60 million planned for growth projects and reserve replacement. SG&A cost is estimated at $50 million to $60 million, including annual incentive bonuses, but excluding one-time and non-recurring items and stock compensation. The company expects 2019 cash interest expense to be between $40 million and $44 million. Depreciation, depletion and amortization for 2019 will be provided after the purchase price allocation on the merger is completed.