Arch Coal Significant Progress Advancing Strategic Objectives

ST. LOUIS, MO - Arch Coal, Inc. reported net income of $60.0 million in the first quarter of 2018, compared with net income of  $51.7 million in the prior-year period. The company earned adjusted earnings before interest, taxes, depreciation, depletion, amortization and non-operating expenses (adjusted EBITDA) 1 of $104.9 million in the first quarter of 2018, compared with $121.2 million of adjusted EBITDA earned in the first quarter of 2017. Revenues totaled $575.3 million for the three months ended March 31, 2018.

"During the first quarter, Arch made significant progress on advancing a range of strategic objectives, including increasing our penetration into seaborne coking coal markets and executing on our ongoing stock buyback program," said John W. Eaves, Arch's chief executive officer. "Our greater international sales exposure yielded significant benefits as we achieved our strongest-ever Metallurgical segment margins despite higher average costs from the coking coal portfolio, and we spent nearly $40 million during the quarter to buy back additional shares. Given the anticipation of substantial free cash flow during the remainder of the year, we expect to focus intently on our capital return program.”

During the first quarter, Arch continued to systematically execute upon its share repurchase program, purchasing more than 0.4 million shares of common stock at a total cost of 

"John T. Drexler, Senior Vice President and Chief Financial Officer, said, “During the quarter, our global coking coal sales strategy, better-than-expected operating performance at the Leer mine and solid support from our cash-generating thermal franchise allowed Arch to overcome weather-related logistical complications and higher costs in the Metallurgical segment," said Paul A. Lang, Arch's president and chief operating officer. "Going forward, we will continue to focus on controlling and lowering costs and managing the quarterly volume volatility that comes with a more significant global customer base."