Q2 2020 Contura Energy Inc Earnings Call
Thanks Wendy.
Anymore.
[laughter] does he see chemicals 'cause that's.
My question, that's got to start by deal.
Today's because they see the we'd be in looked really good luck.
Good question you made a then one that's going to.
No because I guess.
Good God.
Please note this event is being recorded.
Oh I get your other conference call. That's why many Oquinn Vice President Corporate Communications. Please go ahead.
Thank you Francesca and good morning, everyone.
Before we get started let me remind you that during our prepared remarks and the two in a period our comments related to expected business and financial performance contain forward looking statement and actual results may differ materially from those disgusting.
More information regarding forward looking statements and some of the factors that can affect Dan. Please refer to the company's second quarter 2020 earnings release any associated Sep filing.
Please also see those documents for information about our use of non-GAAP measures and their reconciliation to GAAP measures.
Depending on the call today, our culture, as chairman and Chief Executive Officer, David That's it and Chief Financial Officer Andy.
Also participate participating on the call its Jason White, good our Chief operating officer, who is available to answer questions on operation with that I'll turn the call over to David [noise].
Thank you and like good morning, everyone and thank you for joining us today.
For get into the details of our second quarter results I want to acknowledge the unprecedented circumstances, Oh Sydney experiencing for the last few months, which had made for a strange in difficult quarter four businesses across the world.
Unprecedented is a word that has been overuse describes pandemic, but it's an accurate description.
All been forced to continuously adapt to a rapidly shifting environment that none of us it never seen before.
As a company we've done well in implementing additional precautions and protocols in response to ever changing guidelines.
Well the how the controller seeing continues to meet and in both cases exceed expectations, even in such adverse circumstances.
This resilience among our workforce is one of the many reasons why so optimistic about contours future, even amidst a challenging conditions were facing.
Oh, we have kept up our strong cost performance, we accomplished this well maintaining consistently high standards and the areas of safety and environmental performance.
Across the organization or second quarter safety performance in the metrics up and have to yell at DPL I'd, both favorable to the National average we continue to perform favorably in these areas on a year to date basis.
Environmental stewardship, our second quarter water quality compliance rate remained at 99.9% and we achieved a 62% reduction in violations compared to the three year average.
These are not just never see was there a meaningful measure of success that we take very seriously on a daily basis, there even harder to achieve during challenging periods of external pressure and uncertainty like we've experienced this quarter I.
I commend our people across the organization for their good work.
As usual after my prepared remarks, Andy will discuss our second quarter results, which include adjusted EBITDA of $17 million and an increase of cash balance quarter over quarter from a macro perspective, yes. It's I think it's important to understand our results alongside the dramatic swings experienced this quarter.
Which in my view make our comps accomplishments even more impressive.
April began with a widespread idling of our mining properties with many operations being idle for as long as four weeks.
This allowed us to normalize or inventory levels provided us sometime to analyze the various impacts the pandemic on our business.
We continue to fulfill our customer contracts during this time.
The first week and they all come to our properties, we're back online at nearly normal staffing levels and operating capacity.
Before the close of the quarter in June we announced the strategic decision to strengthen our Companys financial performance.
To briefly touching on those announcements in the thinking behind our.
Hi, there was our goal is not only to bolster our immediate financial capabilities and these uncertain times.
But also to create a direct pathway, becoming a more streamlined and efficient pure play metallurgical coal company.
We announced a new shorter time line with regard to recall supply agreements at a couple of mine in Pennsylvania.
And our decision not to invest the new impairment project there.
Continue to actually Mark at the mine for sale between now at the end of 2022, when our customer contracts expire.
We believe this directionally Cumberland makes the most sense for conserve both from a short term cost perspective any longer term strategic standpoint, we've already begun reaping the benefits of our decision to koblin.
Within the past week, we have received over $30 million and surety bond reductions due to our decision not to construct a new Wynn palace.
In June we also announced a 60 day warn notice and the decision to Eyelock healthy mine and the Dell Barton Prep plant West, Virginia, due to an economic pricing in cost structures.
Plan reflects the station of Aktiv mining operations within the next six weeks.
Well those are examples of mines that are being deemphasized or removed from our portfolio. You heard me just got some exciting development projects that are under way over the last couple of years that are designed to augment our business in the long run.
We expect these operations to help US replacement properties are nearing the end up there my life or no longer cost effective in the near term.
And I'll quickly gave you an update on where we stand on road for 52.
I can you go in land branch projects.
We're pleased to report that wrote for 52 is now like multi section production with the second section having coming online in June and ability that a third section in early 2021.
Like Eagle is also working toward a multi section capability with roughly three quarters of the Bell corridor to the main reserve body now complete and airway development currently underway.
We expect to be in a multi section production from the main reserve body, a black Eagle beginning next year.
Lastly, after completing additional cuts underground at land branch, we're installing a surface infrastructure.
And expect to resume production sometime in the fourth quarter of this year.
These projects demonstrate our commitment to building a leaner.
More sustainable portfolio at lower cost higher quality mind, they help us strengthen our cost structure and increase our sales capabilities over time, and we continue to make meaningful progress on all of them in the second quarter.
Additionally in June we completed the acquisition of the Pete flowed out in Logan County, West Virginia.
With service on the CSX Railroad. This property brings additional optionality to our existing transportation network bolstering our ability to leverage low ball metallurgical coal sales opportunities through our port facility known as the DTA.
We recognize the world is transitioning towards an economy that relies less on fossil fuels for power generation and we therefore had accelerated our strategic exit from the thermal coal mining to put a finer point on our strategic direction for the next couple of years I expect our portfolio optimization initiatives, some of which I've touched.
And in my remarks, about kelty, and convoluted well make us a leading pure play met coal company by the end of 2022.
Once these initiatives are completed I expect contours very cost competitive met production profile to allow for shipments of up to 14 million times I've met coal annually with less than 1 million tons incidental thermal coal shipments a year.
Transition is well underway and I'm confident we have the right strategy there why team in place to execute on our plan successfully.
We discussed on our recent earnings calls incredible work that's been done on the cost containment front and you may recall that our first quarter cost performance is essential that met segment was that multiyear lows.
Proud to report that despite the pressures the last several months, we're able to match the level of performance in the second quarter when the impacts of the furloughs onetime Covance litigation costs and a partially offsetting severance tax adjustments are backed out.
Andy will discuss this in more detail, but our progress in this regard continues to be a testament to the resilience of our workforce and Jason's outstanding leadership.
I've talked a lot about cost since they are part of a business that we can manage and control, but obviously the markets are different story.
While there is no crystal ball to show us what the future looks like.
Or we can expect prices decline higher there are few metrics in signals that we've noticed over the last few weeks that our informing our estimation of the third and fourth quarter may hold for us.
There's been much discussion Nicole community about potential hands of optimism in the market landscape, while we would welcome any improved pricing structure over the coming weeks or months. We believe it is wise to continue preparing as though depressed pricing environment, we've been experiencing will continue.
Even with welcome improvements that May come we still expect the back half the 2020 to be challenging [noise].
While there are indications that the steel industry is showing some improvement July the June data from the World Steel Association shows material year over year crude steel production declines in all of our key markets ranging from 20% reduction in Europe, So nearly 35% decline in United States.
Among the major crude steel producing markets.
The only country reporting production growth for the month of June as well as year to date is China. They grew 4.5% 1.4% respectively.
Global data shows a 6% year to date Cline and overall crude steel production with a 2020 forecast any heading a similar trend for the second half a 2020 and total annual production estimated declined by 6.4%.
World Steel Association forecasts, a 3.8% rebound in 21.
Of course, the hope is that summer numbers are making our market the bottom, but that remains to be saying.
Well the crude steel production numbers have much room for improvement in many questions remain unanswered regarding global economic activity, we're seeing early positive signs of the manufacturing sector.
China is manufacturing PMI continue to show growth with Europe returned to growth in July.
Certainly the Contura one of the strongest improvements the manufacturing.
Well I was reported in Brazil.
Which recorded PMI rating a 58.2 in July.
From 51.6 in June.
Manufacturing PMI moved into modest expansion for the first time since February well, India's manufacturing sector remained in contraction amid corona virus related lockdowns.
We had apologies in advance I'd like to close my remarks by quickly getting on my Soapbox.
Last week, Mark My one year anniversary of returning to lead management Tara.
In that year, we've streamlined management exited the PRB devised a comprehensive solution at Koblin accelerated our met focus capital projects brought efficiencies to mining operations reduce cost across the organization strengthen our liquidity and managed to some of the most difficult times I've seen a Mike.
Career. These accomplishments will result of art tire team at Contura.
Jason why head to return to my management team. That's one year ago. His leadership of operations has been beyond expectations.
Dan Horn, Adele Davidson somehow managed to find homes, where our products throughout the world when demand and pricing constraints created tremendous headwinds.
Efforts allow Jason to continue operations at an optimal level.
In addition to my team I'm most proud of is convincing Roger Nicholson Lee the comfort of is private practice to return to the grind to be in general counsel I loaded came up with not just legal challenges, but he manages the environmental safety an HR aspects of our company all of which I might point out it reached all time performance since he's come onboard.
Hey, Dan you Addison for the last many of the shareholders and analysts was called away Andy as a person they called reach out to the understand our financial performance as well as our strategy.
And you also have the unfortunate role of had an office less than 10 feet per mine, Jason Roger Hideout, and Julie in West, Virginia, It Dan and Bill at locate himself hundreds of miles away from the office, but we do work extremely well together, regardless of geography, Andy as my sounding board on strategy.
It was due in large part is good work that we advanced the ball PRB complement journeys trying times 80 manages our liquidity provides team members with real time data for decision, making is responsible for M&A activity and there hasn't been a decision made since returning that doesn't have as fingerprints all over it all this to say.
But to collect the power. This team is why we are well positioned to continue making progress even in such challenging days I couldn't pass up the opportunity to express my gratitude for all they've done. Thanks for letting me get on this moment. So taken recognize what I believe is the best team in the industry with that I'll turn the call over to 80 per se.
Additionally, financials.
Thanks, David and thanks, David.
Con elements there.
So we did expect the second quarter to be challenging both operationally and from a planning perspective and that certainly proved to be true on both counts.
We started the second quarter with higher unit costs all production for the month of April since we did temporarily idle most of the mines for the majority of the month.
The good news is that once we return to effectively normal operations in May and June we were able to match the outstanding cost performance that we established in the first quarter with average cost coming in below $70 a ton for our cap met mines.
While we're very proud of how effectively we control the costs across the organization, especially in the mass segment.
We're certainly not complacent.
I'll retire industry is still under significant pressure with so many macro issues remaining unsolved as David mentioned, we're clearly if it affected by these uncertainties, but instead of dwelling on circumstances, we can't control and for the most part can't predict.
We're focused on controlling what we can control the effective cost management careful matching up production with demand and most importantly, a sharp continued focus on cash flows.
We ended the quarter with approximately $238 million, an unrestricted cash and total liquidity of $240 million as David mentioned as in his remarks, one of our key goals with the temporary Modelings in April was to reduce our inventory and hence bolster our cash balances we successfully converted around $41 million of inventory in India.
Cash during that month, which helped us increase our cash balance in the second quarter by $11 million over the first despite the difficult environment in our end markets.
This increase is also net of a $26 million pay down of revolving credit facility.
The facility now stands at $31 million and borrowings and $122 million of.
Letters of credit outstanding as of June 30, with approximately $2 million of remaining availability.
Naturally ABL availability as Todd to market pricing in regards to valuations of inventory and accounts receivable. So that does fluctuate and the current challenged market.
We're seeing some pretty pretty low Todd areas, which should rebound as soon as the market does provide us some relief.
On our cash flows we had a strong quarter relative to the market conditions with the second quarter operating cash flow of $79 million and Capex of 41, and a half million dollars.
Since we're no longer moving ahead with the current on refuse empowerment investment. We now expect our capex for the second half of the year to be around $45 million to $50 million compared to more than $90 million spend in the first half of the year.
This would take our expected full year capex to range of approximately $135 million to $140 million, which is nearly $50 million less than our original guidance for 2020.
As I mentioned earlier, we were able to reduce our inventory more than $41 million.
Or nearly half a million tons during the quarter.
Accounts receivable were also.
Strong source working capital during the quarter as total receivables declined by more than $60 million.
And prepaid expenses that another 20 million dollar improvement, which was partially offset by $24 million reduction in payables in total we saw around 100 million dollar.
Improvement in working net working capital position for the quarter.
Next I want to give a brief update on the Tommy of expected $66 million AOMT credit monetization refund.
While we had originally expected receive the refund an early part of.
This quarter third quarter, and Alex more likely to come in the latter part of Q3 or potentially drift into the fourth quarter. We understand this delay to be the result of slowed IRS processing timelines. There is a result of kobin related shut downs the only change from our previous discussion on this topic is the expected timing of the refund not our expectation of receiving.
And we're aggressively pursuing the refund in concert with our tax advisors and an IRS tax payer advocate.
Also in connection with the cares Act and as we've previously announced we still expect to defer approximately $14 million in payroll taxes until 2021 and 22 with the total expected deferral mountain distributed evenly across those two years.
As to our financial results, we reported $17 million of adjusted EBITDA in the second quarter.
Again, the quarter was very challenging concluded idlings enclosures, among not just our our customers, but also our properties in April the $70 million compared to Q1 EBITDA of $60 million.
Second quarter continued to show our strong performance on cost with cat in that segment reporting a cost of $74.41.
However, it is important to highlight then.
When you include the impact of April furloughs incremental costs related to cope with not team mitigation and the partial offset.
The benefit from.
Adjustments to our annual severance tax accrual you exclude those from the calculation our second quarter costs were approximately in line with Q1, averaging just below $70 Todd.
This is becoming a standing comment for me on these calls, but as to kind of tag on to what David said I cant fan of about Jason is operations team for their continued excellence and cost management.
Overall cap met generated $18 million of EBITDA during the quarter with northern App, adding another $9 million of EBITDA and the cat thermal segment contributing more than $2 million of EBITDA.
As DNA expenses are not allocated into segment EBITDA results.
So look at our cost reduction progress in central Apple Central Appalachia, little differently, and I do want to count on this a little bit.
It may be useful to track the three quarter moving average starting with Q1 of 20 not team.
Over that time, our cap net costs have declined from nearly $90 a ton to the mid seventys for the weight or for the moving average three quarters ending June Thirtyth 2020, with the last two months of the quarter, averaging $70 a ton.
When the when all the previously mentioned adjustments are factored in and a similar analysis looking at kept thermal.
It's declined materially from roughly $57 per ton.
In Q1 of not team to under $50. A time, most recent three quarter period, even a lot of reduced production levels. So again, it's just goes to point out that it's not just chat mad we're seeing cost improvements across the board.
And really a testament to operations in the entire company for continuing to monitor cost and control everything that we can't control.
On the revenue front, our cat met shipments remained strong in the second quarter with the total volume of 3.2 million tons shipped now only about 100000 tons from the prior quarter.
The revenue shortfall was obviously driven by weak mark and market conditions in the export market with our cat and that average realization down $11 a ton to just under $82 a ton in Q2 kept thermal volume was essentially flat with first quarter with total shipments of around 600000 tons and realizations declining to just under $50.
As a ton from the mid Fiftys in the prior quarter.
Net revenues declined as a result of lower volumes and lower prices with the shipments declined by 200000 tons.
So 1.3 million tons.
In the quarter with price realization declining 6% to just over $40 a ton.
Another area, where we've.
Exhibit strong focus on cost isn't SGN, a which after excluding noncash stock comp and onetime Tom items declined to $10 million in second quarter, compared with 13.4 million in the first quarter.
For modeling purposes, we expect our SGN a for the full year 2020 to come in between 45 and $50 million down from $60 million.
For fiscal year 2019.
I'll close my prepared remarks with comment on the department of Labor request as you may recall earlier in the year. We did receive letter from the deal well regarding collateral amounts for certain black lung obligations in which we could potentially see our self insured collateral increased nearly 25 fold. So approximately $66 million, we filed an appeal.
So this potential increase but have not yet received decision from the deal.
We'll provide an update once we have additional information to share.
So with that operator, I believe we're ready to open blonde for questions.
We will now begin the question announces first.
Ask a question you may.
And then one that's done.
Okay, then answering your question it's been addressed.
Regarding your question.
Vincent.
The first question is from carcass yet.
Yes.
Hi, good morning, everyone.
In the release in your prepared remarks, you mentioned costs would have been relatively flat quarter on quarter asset code 19 impacts and.
The shutdown does that mean that you expect.
Costs to be clustered in the low seventys side in the second half of the year or is there. So some lingering impacts that we should expect.
Hey, Scott this is Andy.
I can.
Let Jason jump in.
When when he feels appropriate, but I think by and large again, it's kind of hard to predict where the market is going.
In the next two quarters naturally if we kind of holding static with where they are I do think that expectation is is very much in line with what we believe is going to happen from a cost perspective, but again fluctuations further pressure on the market.
Ken and drought.
Cost response via production adjustments or.
As the market rebounds, we will see an increase of natural increase from sales related costs, which.
As a reminder comprises about 9% to 10% of our total cost so.
You know partial were partially reflecting lower severance taxes lower royalties those kinds of things and our current cost base, but I.
I think by and large yes, I think we're pretty comfortable that these costs are sustainable for the long term.
Okay. That's helpful and I mean, the cost reductions that you've made across your operations are very impressive congratulations on that switching gears a little bit.
Certain pricing kind of remained depressed for the rest of the year or maybe even into early 2021, and we don't see a quick rebound.
Do you think we may see any additional mine idlings are our most of these kind of behind you at this point.
I'll I'll take that Jason can can.
Provide input as well.
We're not anticipating any at this point time, we think we matched up production with the sales in demand we're seeing out in the future doesn't we designed to system Scott that allows us to flex flex up flex down.
So we do we do have that capability, but as I sit here today.
I'm not anticipating any changes in our in our.
Production outlook for the rest of year.
Okay, great that's going to here. Thanks for taking my questions and best of luck, Hey, Scott. Thank you so much.
Next question is how Lucas pipes in the B. Riley FBR. Please go ahead.
Hey, good good morning, everybody and I'd like to second that congratulations really really well.
Especially amidst this very difficult environment.
I wanted to.
It's kind of.
Ask you about the outlook on the shipment.
But for the second half of this year.
Specifically around met coal kind of Q3 Q4.
No I mean, the more detail you can provide the better but I'd like to get a sense for for the order flow and what we could expect.
Thank you.
Hey, Lucas it's Andy.
That's a that is the question of the hour pretty sticky will naturally we we were still.
On a gotten suspension.
Regards to pretty much everything everything except for SGN and Capex, but.
We do have van Horn here available to give his view on the market that we have much given the way of true numerical guidance, but he can surely share some anecdotal views of the market Dan.
Excellent.
We're all watching the Steelers you, obviously very closely.
A few signs that things are improving versus where they were a few months ago. We will will fall is on these analysis. Okay blast furnace years, starting up here, we see up steel pricing generally around the world start in Greece, except you are in North America.
Starting to North America.
We're still struggling to see that coke plants are necessarily picking up any more production. So.
It is clearly we'd see mode.
You see a few things is give me a little bit optimism.
Good idea is instead can't rosy how that translates.
In the accretion small.
Hi, I appreciate that and thank you.
Maybe to follow up on this.
You did a really good job destocking.
During the second quarter what.
Is there need to rebuild inventories or would you say, you're kind of pretty well position some inventory standpoints yet.
Yes, I think we're in pretty good shape Lucas.
Again, we've taken our inventory levels from.
That about half million tons across the board I think probably 350000 tons of the reduction was on the Missad that leaves us around 1.2 1.3 million tons of inventory available, which I think is a pretty good level to allow both the operations in the sales team to do the do what they need to do to symptom.
Eight orders so I think we're in good shape from that perspective and.
We certainly don't want to.
Build inventory.
Just just stocking up on the ground.
So it's good that we were able to these talk to a level that we're basically we targeted.
And it worked out really well in April so.
Short answer I think we're in good shape, we don't need to build any more nor do we really need to cut any more thank our inventory levels are pretty pretty appropriate with what we're seeing in the market.
Very good to hear thank you then I'll sneak one last one then.
The release of 30 million on the surety side.
Good good to see that.
It could we expect more.
What's the strategy of kind of exiting thermal by the end of 2022.
I really I really wish I had a optimistic answer for you look at the surety companies. The surety markets right now are really really challenging I believe all of our peers or are staying the same things there's been.
S.G. concerns across the board.
And it as usual, it's not theres not a good bifurcation between thermal and met coal coal seems to be coal and so that makes it a little bit of a challenge as far as.
As far as making our optimizing our portfolios I wouldn't expect much in the way of additional release of.
Bonding collateral in the near term I believe now there's probably more concerns from a credit perspective across the industry, which will keep that cash tied up for a bit longer until we see the market turn but hopefully once we see returned to a better more normal world that we're used to experiencing we will see some improvements.
And in surety.
Portfolios and maybe a little bit more collateral will be return.
Very good everyone really appreciate it and again really goldani. Thank you.
Thanks look thanks Lucas.
We've run out of time, some mark can ask any questions right.
Your mind Mark go ahead.
The next question is from Mark Let me with benchmark. Please go ahead.
No you probably had been doing everybody a favor.
[laughter].
Yes, just a couple of quick ones. So.
You know without getting into guidance because I know.
Prices are volatile in the market is exceedingly volatile.
Any feeling as to whether or not Q2 looks like the trough it sounds like when you're thinking.
Thanks about Q3 volumes I would think would be would be higher.
And.
Consequence cost would be would be lower.
Under the price and sort of the key delta, but maybe Andy or you are.
Are you thinking that Q3, just sort of naturally should be a step up if you were let's just hold met prices flat or equal.
Q2.
As far as shipments Mark.
Well I'm just thinking like the EBITDA bridge from Q2 to Q3 like you should have higher volumes you should have lower costs, just because you'll have higher volumes and then if I were just do assume that met prices all else being equal were flat Q2 to Q3 is it reasonable to assume that Q2 is the EBITDA trough for the year.
Oh, absolutely if that if those particular assumptions hold true I think that math works I think.
Based on on we just what we just heard from Dan I think anecdotally.
I'm not sure it's safe to assume that Q3 will be an improvement.
It has the potential too but.
It's the market is still pretty tough and.
Yes.
So.
But your math, the math works, but everything hinges on shipments and market demand on prices that's.
Thats a sticky wicket.
Okay, and it looks like from a Capex perspective, you spent 90 or 90 million or so in the first half so getting your guidance, maybe another 50 million or so in the second half so even stronger cash burn perspective, you can be in better shape, particularly with 66 million coming in I guess right.
Oh absolutely.
Okay, Yeah, just making sure now onto less positive stuff.
Domestic Matt.
So I know sensitive and Dan and others, probably don't want to talk a whole lot about it. So I just want to talk a little bit about strategy.
You know given where netbacks are in the market.
And how tough it is out there as well as you've mentioned, what's kind of the thought process in terms of mix meeting domestic versus export 21 versus 20, given what you're seeing right now.
Well I'll I'll start it off we will.
We sell them like to provide our strategy on our sales strategy to all of our competitors. So.
You probably won't hear much from me on that point, we we have never really said, we have a fixed target as to domestic versus export.
And historically like in 2019, we were about 66%.
Export and this year, we're about 73 in lot of that cadence. So from the some deferrals that we're having all the domestic side, we push that coal into the international markets, but.
And last day in wants to.
Sure our playbook on our stress our wholesale strategy with everyone.
Dan would you like to share that book with arch and everybody else [laughter] I'll pass on that I'll, just add that we're comfortable on the low end.
Hi.
Weighed into the season market see what.
Volumes and prices look like.
Acquisitions were comfortable.
I figured I might get answers like that but I thought it was worth of dry.
Good trademark.
Hi, Thank you and then.
On the on the pricing side speaking very generally I'm not talking domestic I'm just talking across the board.
When we look at the assessments from Plas, either for a and B and and and U.S. low vol.
I do you feel like those are accurate representations of what you guys are realizing in the market or are there discounts that you have to take in a tighter market or an up more oversupplied challenging market today or are those just or there is pretty good representations of what you guys are seeing.
Mark I mean, there assessments, you're right there assessments and Nick I think Directionally there correct.
We sell so many products.
Said this before that Theres no strong correlation necessarily between what the products we sell.
And the indices directly because differences inspects differences in volumes.
Hi, Directionally, there, okay, but weak market as it is before weak market, we tend to sell a discounted in a rising market we tend to sell premiums.
That makes that makes sense, and dan or or or or anybody else how did on the rail side.
Our the eastern rails.
Given that theres, so much challenge in the market right now.
Both from a price and from a demand perspective have you seen a corresponding decrease in rates have they been willing to work with you and.
And help everybody get through these tough times or have the rates been kind of sticky at higher levels.
Oh.
It was speaking mark the real rates move with coal pricing and there should be.
Depend on the products, we have raised for different types Paul so.
Yes, they move accordingly.
So are they.
They are better for us.
This pricing levels in our renewals $250.
Got it.
Well great job on the cost cost side in particular, echoing what everyone else said before and.
Yeah look forward to chatting next quarter.
Thanks, Mark Thanks Bart.
This concludes kind of a question answer session I would like to turn the conference back over to Devin censoring for any closing remarks.
Again, I want to thank everyone for joining us the call today and your interest in Contura and wish everyone. A great day integrate weekend. Thank you so much.
The conference call US now concluded. Thank you for attending today's presentation you may now disconnect.
[music].
[noise] [noise].
[music].
[music].
[noise].
[noise].
[music].
[music].
[music].
[music].
[music].