Contura Announces First Quarter 2019 Results.

BRISTOL, Tenn: Contura Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier, today reported results for the first quarter ending March 31, 2019.

Highlights include:

Net Income from continuing operations of $8 million for the first quarter 2019 compared with $58 million in the same period last year(1)

Adjusted EBITDA(3) of $83 million for the quarter compared with $99 million in the same period last year(1)

Under Contura's new interim leadership, company obtains commitments for new $555 million first lien facility to replace its existing term loan, substantially improving capital return flexibility

Board of directors adopts capital return program; capital return of up to $250 million authorized

Company approves new low-cost, West Virginia metallurgical coal project; expected online in 2020

Integration activities are progressing as planned, and search for permanent CEO well underway

Updating cost guidance for 2019

(millions, except per share)

Three months ended March 31,

2019(1)

2018(1)

Net income(2)

$8.0

$58.3

Net income(2) per diluted share

$0.41

$5.66

Adjusted EBITDA(3)

$83.4

$99.0

Operating cash flow(4)

$14.6

$(30.3)

Capital expenditures

$41.1

$19.4

Tons of coal sold

5.9

3.8

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1. Excludes discontinued operations.

2. From continuing operations.

3. These are non-GAAP financial measures. A reconciliation of Net Income to Adjusted EBITDA is included in tables accompanying the financial schedules.

4. Includes discontinued operations.

   "Following Contura's transformational merger in the fourth quarter of last year, resulting in the largest metallurgical coal portfolio in the U.S., we placed substantial focus this past quarter on buttressing the company's already solid balance sheet and unlocking additional cash generation potential for our shareholders," said board chairman Neale Trangucci. "Today, we are pleased to announce commitments to refinance our outstanding term loan facility, which provides our company with significantly greater flexibility to allocate capital to maximize shareholder value."

   With regard to the first quarter results, Mark Manno, interim co-chief executive officer and chief administrative & legal officer and secretary said, "As we worked to integrate our expanded asset portfolio over the past quarter and a half, certain operational challenges arose that negatively impacted production efficiency, particularly at one of our CAPP - Met complexes, while a temporary, partial idling of one of our CAPP - Thermal mines was required to bring mine infrastructure up to Contura standards. Both issues are being addressed to better position these assets for long-term success."

   "These factors, along with softer than anticipated sales volumes due to pricing dynamics alluded to on our last earnings call, converged this past quarter to result in performance that trended below our expectations," added Andy Eidson, interim co-chief executive officer and chief financial officer. "We do not believe these issues reflect fundamental changes in our business or assets, and have already implemented measures to remediate these issues over the current and remaining quarters of 2019. While we anticipate costs to revert to our previously forecasted run rate before year end, we are revising our cost guidance slightly to better reflect updated full-year expectations."

   Financial Performance

   Results for the first quarter of 2019 include the full quarter impact of the Alpha merger, which closed in November 2018. The Trading and Logistics (T&L) segment sales in the first quarter of 2018 were largely driven by Alpha-related shipments, which are now included in the Central Appalachia Met (CAPP - Met) segment for the first quarter of this year.

   Contura reported net income from continuing operations of $8.0 million, or $0.41 per diluted share, for the first quarter 2019. In the first quarter 2018, the company had net income from continuing operations of $58.3 million or $5.66 per diluted share.

   Total adjusted EBITDA was $83.4 million for the first quarter, compared with $99.0 million in the prior year quarter, adjusted to remove the impact of discontinued operations. The first quarter 2019 EBITDA was negatively influenced by three primary factors that the company does...