Q4 2023 Alpha Metallurgical Resources Inc Earnings Call

Okay.

Operator: Greetings and welcome to the Alpha Metallurgical Resources fourth quarter 2023 results conference. At this time, all participants are on a listen-only conference call.

Speaker Change: Greetings and welcome to the Alpha Metallurgical resources fourth quarter 2023 results conference call at.

At this time all participants are on a listen only mode. A question and answer session will follow the formal presentation.

Operator: A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Emily O'Quinn, Senior Vice President, Investor Relations and Communications. You may begin.

Speaker Change: Please note this conference is being recorded.

Speaker Change: I'll now turn the conference over to your host Emily O'quinn Senior Vice President Investor Relations and Communications you may begin.

Emily O'quinn: Thank you, Rob, and good morning, everyone. Before we get started, let me remind you that in our prepared remarks, our comments regarding anticipated business and financial performance contain forward-looking statements, and actual results may differ materially from those discussed. For more information regarding forward-looking statements and some of the factors that can affect them, please refer to the company's fourth quarter and full year 2023 earnings release and the associated SEC filing. Please also see those documents for information about our use of non-GAAP measures and their reconciliation to GAAP measures.

Emily O'quinn: Thank you, Rob and good morning, everyone.

Emily O'quinn: Before we get started let me remind you that during our prepared remarks, our comments regarding anticipated business and financial performance contain forward looking statements and actual results may differ materially from those just yet.

Emily O'quinn: For more information regarding forward looking statements and some of the factors that can affect them. Please refer to the company's fourth quarter and full year 2023 earnings release and the associated SEC filing. Please also see those documents for information about our use of non-GAAP measures and their reconciliation to GAAP measures.

Emily O'quinn: Participating on the call today are Alpha's Chief Executive Officer, Andy Edson, and our President and Chief Operating Officer, Jason Whitehead. Also participating on the call are Todd Muncy, our Chief Financial Officer, and Dan Horn, our Chief Commercial Officer. With that, I will turn the call over to Andy. Thanks, Emily. Good morning, everyone.

Emily O'quinn: Participating on the call today are else's, Chief Executive Officer, Andy Edson, and our President and Chief Operating Officer, Jason Whitehead also participating on the call are Todd Muncy, Our Chief Financial Officer, and Dan Horn, Our Chief commercial officer with that I will turn the call over to Andy.

Andy Edson: Thanks, Sam and good morning, everyone.

Andy Edson: This morning, we announced our fourth-quarter results with adjusted EBITDA of $266 million. For the full year, Alpha generated over a billion dollars in adjusted EBITDA, which marks the second year in a row achieving that milestone. While 2023 was not without its challenges, I couldn't be prouder of the way that we responded as a company to those challenges and finished the year strong. The team did an excellent job of identifying issues, building a battle plan, and executing decisively to overcome whatever obstacle we faced. We ended the year within, or better than, nearly all of our guidance ranges, having shipped a total of 17 million tons, with 15.3 million of that being met coal. Our overall MET segment costs for the year were in line at $111.67. What costs in the All Other category came in better than for guys?

Andy Edson: This morning, we announced our fourth quarter results with adjusted EBITDA of $266 million for the full year Alpha generated over $1 billion in adjusted EBITDA, which marks the second year in a row of achieving that milestone of 2023 was not without its challenges I couldnt be prouder of the way that we responded as a company to those challenges and finished the year strong.

Andy Edson: The team did an excellent job of identifying issues building a battle plan and are executing decisively to overcome whatever obstacle we face.

Andy Edson: We ended the year within or better than nearly all of our guidance ranges, having shipped a total of 17 million tonnes with $15 $3 million of that being met coal.

Andy Edson: Our overall met segment costs for the year were in line at $111.67 all costs in the all other category came in better than guidance.

Andy Edson: SG&A idle operations expense DNA and tax rate all ended the year within our guidance range Capex came in at $245 $4 million, which is technically a below the low end of the given range.

Andy Edson: SG&A, idle operations expense, DD&A, and tax rate all ended the year within our guidance range. However, CapEx came in at $245.4 million, which is technically below the low end of the given range. However, when adding the 21 million dollars of carryover that we have rolled into 2023, that puts us nearly exactly at the midpoint of our issued guidance for last year. Another milestone we reached during the fourth quarter was exceeding $1 billion in the share repurchase program. Since the program's inception in March of 2022, we have returned more than $1.1 billion to stockholders in the form of buybacks, repurchasing over 6.6 million shares of Alpha stock. We remain committed to our previously stated strategy of utilizing available free cash flow for the program as the preferred method of returning capital contingent upon minimum cash levels and market conditions.

Andy Edson: However, when adding the $21 million of carryover that we've rolled into 2023 that puts us nearly exactly at the midpoint of our issued guidance for last year.

Andy Edson: Another milestone we reached in the fourth quarter was exceeding $1 billion in the share repurchase program since the program's inception in March of 2022, we have returned more than $1 $1 billion to stockholders in the form of buybacks repurchasing over $6 6 million shares of Alpha stock.

Andy Edson: We remain committed to our previously stated strategy of utilizing available free cash flow for the program as the preferred method of returning capital contingent upon our minimum cash levels and market conditions.

Andy Edson: As we look ahead, the board has set May 2nd as the date of our next annual meeting of stockholders, and this morning, we announced a list of director candidates who will stand for election to our board at that meeting. We also announced that, following significant tenures with the company, two of our current directors have reached the age at which they may no longer stand for election, per our corporate governance guidelines, and they have retired from the board effective today. Al Ferrara is our longest-serving director, having been with us since 2016.

Andy Edson: As we look ahead. The board has set made the second is the date of our next annual meeting of stockholders and this morning, we announced the list of director candidates, who will stand for election to our board at that meeting.

Andy Edson: We also announced that following significant 10 years with the company two of our current directors have reached the age of which they may no longer stand for election per our corporate governance guidelines and they've retired from the board effective today.

Andy Edson: Al Ferrara is our longest serving director having been with US since 2016 allo set the template for how an audit committee should be led and we appreciate how it influences, particularly impacted the finance and accounting functions of the company.

Andy Edson: Al has set the template for how an audit committee should be led, and we appreciate how his influence has particularly impacted the finance and accounting functions of the company. Mike Quillen, and what can you say about Mike that hasn't already been said? He started this whole thing back in 2002 when he founded Alpha Natural Resources, and he's devoted much of the last two decades to building this company and seeing it through to its current success. It's hard to imagine the board without these two long-standing directors, but we've been blessed to have them at Alpha for as long as we have, and as we announced this morning, Liz Fessenden has also retired from the board, effective today. We will miss Liz very much.

Mike Quillen and what can you say about Mike that hasn't already been said he started this whole thing back in 2002, when he founded Alpha natural resources and he has devoted much of the last two decades to building this company and seeing it through its current success.

Andy Edson: It's hard to imagine the board without these two long standing directors, but we've been blessed to have them in alpha for as long as we have.

Andy Edson: And as we announced this morning, Liz Fessenden has also retired from the board effective today.

Andy Edson: We will Miss Liz very much she's been a director since 2021 and served as chair of the Board safety Health and Environmental Committee.

Andy Edson: She's been a director since 2021 and served as chair of the Board Safety, Health, and Environmental Committee. She's overseen a time of great accomplishment in environmental and safety awards, better than the national average performance across the portfolio, and back-to-back company records in 2022 and 23 for NFDL and TRIR, respectively. I personally want to thank Liz for her support over the past year in particular. She's been a great source of encouragement and a wonderful mindset coach during my first year in this seat. We appreciate her leadership and wish her all the best. The good thing for me is that all these folks are still on my speed dial list. The bad thing for them is that all these folks are on my speed dial list, so I will be making frequent use of that list.

Andy Edson: She's overseeing the Tom a great accomplishment and environmental and safety awards better than the National average performance across the portfolio and back to back Company Records in 2022, and 23 for N F. D O N T R hour respectively.

Andy Edson: I personally want to thank Linda for her support over the past year in particular, she's been a great source of encouragement and a wonderful mindset coach during my first year in the seat. We appreciate her leadership and wish her all the best.

Andy Edson: The good thing for me is that all of these folks are still on my speed dial list the bad thing.

Andy Edson: For them is that all of these folks are almost speed dial list. So I will be making frequent use of of that list.

Andy Edson: In connection with these departures, the board size has contracted from nine to seven seats, and we're excited to welcome a new and highly qualified individual to our board with the appointment of Shelly Lombard. She comes to us with more than 35 years of experience on Wall Street and in other areas of the financial sector. She'll be a valuable addition to our board and audit committee, and I can't wait to begin working with her.

Andy Edson: In connection with these departures the board sizes contracted from nine to seven seats and we're excited to welcome a new and highly qualified individuals to our board with the appointment of Shelly Lombard.

Andy Edson: Shelly comes to us with more than 35 years of experience on Wall Street and in other areas of the financial sector she'll be a valuable addition to our board and audit Committee and I can't wait to begin working with her.

Todd Muncy: I'll now turn it over to Todd for discussion of our fourth quarter and four-year financial results. Thanks, Andy. Fourth quarter adjusted EBITDA was $266 million, up from our third quarter level of $154 million. We sold 4.6 million tons in the quarter, almost all of which came from our MET segment. 42,000 tons came from the all-leather category.

Andy Edson: I'll now turn it over to Todd for a discussion of our fourth quarter and full year financial results.

Thanks, Andy.

Fourth quarter, adjusted EBITDA was $266 million up from our third quarter level of $154 million, we sold $4 6 million tons in the quarter almost all of which came from <unk> segment 42000 tons came from the all other category quarter.

Todd Muncy: Quarter over quarter realizations increased for the MET segment with an average realization of $183.76 for the fourth quarter, compared to $154.73 in Q3. Export met tons priced against Atlantic Indices and other pricing mechanisms in the fourth quarter realized $175.32 per ton, while export coal priced on Australian indices realized $213.41. These are compared to third quarter realizations of $136.76 per ton and $158.56 respectively. Realizations for our metallurgical sales in the fourth quarter were a total weighted average of $193.54 per ton, up from $160.43 per ton in the prior quarter. Realizations in the incidental thermal portion of the MET segment decreased to $89.76 per ton in Q4 as compared to $92.22 per ton in Q3. Fourth quarter realizations in the all other category were $70.14 as compared to $68.32 per ton in the third quarter.

Todd Muncy: Quarter over quarter realizations increased for the met segment with an average realization of $183 76 for the fourth quarter.

Todd Muncy: Compared to a $154 73 in Q3.

Todd Muncy: Export met tons priced against Atlantic indices, and other pricing mechanisms in the fourth quarter realized $175 32 per ton.

Todd Muncy: Export coal priced on Australian indices realized $213 41 sense.

Todd Muncy: These are compared to third quarters realizations of $136 76 per ton and $158.56 respectively.

Todd Muncy: Realization for our metallurgical sales in the fourth quarter was a total weighted average of $193 54 per ton.

Up from $160 43 per ton in the prior quarter.

Todd Muncy: Realizations and the incidental thermal portion of the met segment decreased to $89 76 per ton in Q4 as compared to $92 22 per ton in Q3.

Todd Muncy: Fourth quarter realizations in the all other category was $70.14.

Todd Muncy: As compared to $68 32 per ton in the third quarter.

Todd Muncy: The cost of coal sales for our MET segment increased to $119 per ton in the fourth quarter, up from $109.95 per ton in Q3. The increase was primarily driven by higher sales-related costs and purchased coal costs, both of which were impacted by higher coal indices during the quarter. Higher labor costs were also a significant factor in the increase for the quarter.

Cost of coal sales for our <unk> segment increased to $119 per ton in the fourth quarter.

Todd Muncy: Up from $109 95 per ton in Q3.

Todd Muncy: The increase was primarily driven by higher sales related costs and purchase coal costs, both of which were impacted by higher coal indices during the quarter.

Todd Muncy: Higher labor costs were also a significant factor in the increase for the quarter.

Todd Muncy: Cost of coal sales in the all other category was $60.07 per ton as compared to $84.73 per ton in the third quarter of 2023. With regard to costs, there are a couple of items creating some real-time pressure on our 2024 cost guidance. First, with the indices remaining above the levels indicated by futures trading back in November when our 24 guidance was issued, we're seeing higher sales-related costs than we're budgeting. Also, we have had opportunities to purchase a higher volume of clean coal to add to the portfolio than was budgeted. And to the degree that these purchases continue at material volumes, this will also create pressure on our published cost of coal sales guidance. SG&A, excluding non-cash stock compensation and non-recurring items, increased to $16.9 million in the fourth quarter as compared to $15.1 million in the third quarter.

Todd Muncy: Cost of coal sales in the all other category was $60 seven per ton as compared to $84 73 per ton in the third quarter 2023.

Todd Muncy: With regard to cost there are a couple of items, creating some real term real time pressure on our 2024 cost guidance first with the indices remaining above the levels indicated about futures trading back in November when our 24 guidance was issued were seeing higher sales related costs that were budgeted.

Todd Muncy: Also we have had opportunities to purchase a higher volume of clean coal to add to the portfolio than was budgeted.

Todd Muncy: And so to the degree that these purchases continue at material volumes. This will also create pressure on our published cost of coal sales guidance.

Todd Muncy: SG&A, excluding noncash stock compensation and nonrecurring items increased to $16 $9 million in the fourth quarter as compared to $15 $1 million in the third quarter.

Todd Muncy: Q4 CapEx was $61.5 million, up from $54.7 million in the third quarter. Moving to the balance sheet and cash flows as of December 31, 2023, we had $268.2 million in unrestricted cash, down from $296.1 million at the end of the third quarter. We had $94.1 million in unused availability under our EBL at the end of the quarter.

Todd Muncy: Q4, Capex was $61 $5 million up from $54 $7 million in the third quarter.

Todd Muncy: Moving to the balance sheet and cash flows as of December 31, 2023, we had $268 $2 million in unrestricted cash down from $296 $1 million at the end of the third quarter, we had $94 $1 million in unused availability under our ABL at the end of the quarter Alpha.

Todd Muncy: Alpha had total liquidity of $287.3 million as of the end of December. This is the value of the 75 million dollar minimum liquidity ABL company. Cash provided by operating activities increased quarter over quarter to $199.4 million in Q4, as compared to $157.2 million in Q3. As of December 31st, our ABL facility had no borrowings and $60.9 million of letters of credit outstanding, which is unchanged from the prior quarter.

Todd Muncy: I also had total liquidity of $287 $3 million as of the end of December which is net of the $75 million minimum liquidity covenant.

Cash provided by operating activities increased quarter over quarter to $199 $4 million in Q4, as compared to $157 $2 million in Q3.

Todd Muncy: As of December 31, our ABL facility had no borrowings and $69 million of letters of credit outstanding which is unchanged from the prior quarter.

Todd Muncy: Turning now to our committed position for 2024, 35% of our metallurgical tonnage in our MET segment is committed and priced at the midpoint of guidance at an average price of $171.33. Another 55% of our MET tonnage is committed, but not yet priced. The thermal byproduct portion of the MET segment is fully committed and priced at the midpoint of guidance at an average price of $77.14. Pursuant to our share repurchase program, we repurchased approximately 500,000 shares at a cost of $137 million in the fourth quarter of 2023. Since the beginning of the program, we have spent approximately 1.09 billion dollars to acquire roughly 6.6 million shares of Alpha's common stock at a weighted average price of $164.87 per share. The outstanding share count has been reduced by more than 30% from the time the program began.

Todd Muncy: Turning now to our committed position for 2024 or 35% of our metallurgical tonnage in our met segment is committed and priced at the midpoint of guidance at an average price of $171.33.

Another 55% of our met tonnage as committed but not yet priced.

Todd Muncy: Thermal byproduct portion of the met segment is fully committed and priced at the midpoint of guidance at an average price of $77 in 2014.

Todd Muncy: Pursuant to our share repurchase program, we repurchased approximately 500000 shares at a cost of $137 million in the fourth quarter of 2023.

Todd Muncy: Since the beginning of the program. We have spent approximately $1.09 billion to acquire roughly $6 6 million shares of alpha's common stock at a weighted average price of $164 87 per share.

Todd Muncy: The outstanding share count has been reduced by more than 30% from the time the program began.

Jason Whitehead: As of February 19, 2024, the number of common stock shares outstanding was approximately 13 million, which includes the impact of 220,067 net shares issued in December 2023 and January 2024. The shares issued in these periods resulted from vestings of previously granted equity awards under the company's long-term incentive plan. The remaining authorization permits approximately $410 million in additional repurchases, contingent, as always, on cash flow levels and market conditions. We are planning a reduction in the cadence of share buybacks over the next few months, up to potentially pausing the program for a bit to build our cash balances back to our targeted level. I will now turn the call over to Jason for some details on the operation. Thanks, Todd, and good morning, everyone. I want to start by recognizing the outstanding safety and environmental compliance performance from our teams in 2023. We've maintained our 99% water quality compliance rate for many years now, and we'll continue expanding our Beyond Compliance initiatives.

Todd Muncy: As of February 19, 2024, the number of common stock shares outstanding was approximately $13 million, which includes the impact of 220067 net shares issued in December 2023 in January 2020 for the shares issued in these periods resulted from vesting of <unk>.

Todd Muncy: Previously granted equity awards under the company's long term incentive plan.

Todd Muncy: The remaining authorization permits approximately $410 million in additional repurchases contingent as always on cash flow levels and market conditions.

Todd Muncy: We are planning a reduction of the cadence of share buybacks over the next few months up to potentially pausing the program for a bit to build our cash balances back to our targeted levels.

Todd Muncy: I will now turn the call over to Jason details on operation.

Jason Whitehead: Thanks, Todd and good morning, everyone.

Jason Whitehead: Want to start.

Jason Whitehead: By recognizing the outstanding safety and environmental compliance performance from our gains in 2023.

Jason Whitehead: We've maintained our 99% water quality compliance rate for many years now and we continued expanding our beyond compliance initiatives.

Jason Whitehead: For safety, we followed a 2022 company record in NFDL performance with another company record, this time for TRIR, in 2023. I can't say enough about our team members making this a top priority day in and day out. And that focus has resulted in performance that is consistently better than the national average.

Jason Whitehead: For safety, we followed a 2022 company record and an S. D. L performance with another company record this time for KR hour in 2023.

Jason Whitehead: I can't say enough about our team members, making this top priority day in and day out.

Jason Whitehead: And that focus has resulted in performance that is consistently better than the national average.

Jason Whitehead: We work hard every day to continue this positive trend into the future. While we're highlighting outstanding performance, I also want to publicly congratulate the winners of Alpha's 2023 Best in Class Award. The competition was tight, and we had record-setting teams that didn't end up winning the overall award. That shows how difficult it is to claim the top spot.

Jason Whitehead: We work hard every day to continue this positive trend into the future.

Jason Whitehead: While we're highlighting outstanding performance I also want to publicly congratulate winters of Alpha's 2023, best in Class Awards.

Jason Whitehead: The competition was.

Jason Whitehead: [noise] tight and we had record setting teams and end up winning the overall award that's how difficult is the claimed the top spot.

Jason Whitehead: For 2023, the Midwest Virginia Surface Region won in categories of Deep Mine, Surface Mine, and Preparation Plant. Those winners are Kingston number two, Kingston South Surface, and Kingston Processing, respectively.

Jason Whitehead: For 2023, the mid West Virginia surface region, one in categories of deep mine.

Jason Whitehead: Surface mine in preparation plant.

Jason Whitehead: There's winters, our Kingston number two.

Jason Whitehead: Kingston, South surface and Kingston processing, respectively.

Jason Whitehead: Kingston South Surface Mine, also known as Bishop, has won two years in a row. Jimmy Wood and his Midwest Virginia Surface team deserve all the accolades they have received for sweeping those categories, which is very difficult to do. In the loadout facility category, MarMet RiverDock won best-in-class, while MARV was claimed top hunters in underground belt transfer systems.

Jason Whitehead: Kingston South surface mine also known as Bishop has one two years in a row.

Jason Whitehead: Jimmy Wood and is mid West Virginia surface team deserve all the accolades they have received for sweeping those categories, which is very difficult to do.

Jason Whitehead: And the load out facility category Marvette River Dock, one best in class, while Marvell acclaimed top honors in underground belt transfer system.

Jason Whitehead: Both of those are back-to-back winners two years in a row as well, and I want to thank all the teams for their determination and commitment to exceeding expectations. Now, turning to some operational updates. As I mentioned last quarter, We celebrated the first development cuts at our newest highball mine, Checkmate-Powton, in Q4. Also, during the quarter, we completed renovations to the formerly retired chest processing plant, which is now online and serving this month. Together, Checkmate Paladin and Chess Processing solidify Elk Run as a new complex for Alpha.

Jason Whitehead: Both of those are back to back winters two years in a row as well and I want to thank all the teams for their determination and commitment to exceeding expectations.

Jason Whitehead: Turning to some operational updates as I mentioned last quarter we.

Jason Whitehead: We celebrated the first development cuts at our newest high Vol mine checkmate pattern in Q4.

Jason Whitehead: Also during the quarter, we completed renovations to the formerly retired chess processing plant.

Jason Whitehead: It is now online and serving this mine.

Jason Whitehead: Gather checkmate <unk> and chest processing solidify elk run as a new complex for alpha.

Jason Whitehead: I also want to mention a couple of non-injury incidents we experienced in January at our McClure processing plant and Road Fork 52 deep mine. On January 17, an ignition occurred near McClure's clean coal belt discharge on top of a clean coal silo. We believe the ignition was fueled by dust and ignited by a shorted electrical installation. Again, no injuries, and our team members acted quickly and appropriately to make necessary notifications to agencies and assure there was no fire. Investigations occurred, and no contributing citations were issued.

Jason Whitehead: Also want to mention a couple of non injury incidents, we experienced in January and our Mcclure processing plant and road Fork 52 deep mine.

Jason Whitehead: On January 17th and ignition occurred near but cloris clean called belt discharge on top of a clean coal silo.

Jason Whitehead: We believe the ignition was fuelled by dust and ignited by shorted electrical installation.

Jason Whitehead: No injuries and our team members acted quickly and appropriately to make necessary notifications to agencies and assure there was no fire.

Jason Whitehead: Investigations occurred in no contributing citations have been issued.

Jason Whitehead: While the exact cause of the ignition is still being analyzed, the silo has been examined and is structurally sound, and designs are underway to make repairs. Due to the swift responses, we were able to reroute belt conveyors within the first few days to exclude the clean coal storage silo as to enable continued processing and shipments at normalized run rates, and did not experience any material impact from the non-injury ignition. On January 30, 2024, Roadwork 52's number three section started retreat mining, the fourth and last panel of their active district. Then on January 31st, 2024, a non-injury ignition occurred by the pillar line and gobbed area of the number three entry. And a gob area is a term that we use to describe fully depleted and mined areas similar to those areas that are left behind a longwall.

Jason Whitehead: While the exact cause of the admission is still being analyzed the silo has been examined in a structurally sound and designs are underway to make repairs.

Jason Whitehead: Due to the Swift responses, we were able to reroute belt conveyors within the first few days to exclude the claim cold storage Solow asked two enabled continued processing and shipments at normalized run rates and did not experience any material impact from the non injury ignition.

Jason Whitehead: On January 30th 2024 Road Fork 50, Twos number three section started recreate mining before.

Jason Whitehead: The fourth and last panel of their active district.

Jason Whitehead: Then on January 31st 2020 for a non injury ignition occurred.

Jason Whitehead: And by the pillar of lawn and garden area of the number three entry.

Jason Whitehead: And golf area is a term that we use to describe fully depleted demand areas similar to those areas that are left behind the longwall.

Jason Whitehead: Investigations revealed a roof collapse in the gob of the number 4 entry, exposing an overlying coal seam, and we believe it's likely that coal bed methane entered into the gob from that exposed seam. Other than reports of miners hearing a roof bolt break immediately before the event, an ignition source has not been identified. Investigations resulted in zero related or contributory citations.

Jason Whitehead: Investigations revealed a roof collapse and the job of the number for entry.

Jason Whitehead: Exposing an overlying cold chain and we believe it's likely that coalbed methane entered into the job from that exposed St.

Jason Whitehead: Other than reports of monitors hearing a roof bolt break immediately before the event and ignition source has not been identified.

Jason Whitehead: Investigations resulted in zero related are contributory citations.

Jason Whitehead: And personally, I want to thank the team at Road Fork 52 for their actions on the night of January 31st, but more importantly, and in my opinion, their high standards regarding housekeeping and rock dusting that prevented any more serious issues. Despite the tedious nature of investigating an incident like this underground, our team and regulatory investigators concluded it in about four business days. Of the five CM sections operating at Road Fork 52, number three section was the only section idle during that time.

Speaker Change: And personally I want to thank the team at road Fork 52 for their actions on the night of January 31st, but more importantly, and in my opinion, they're high standards regarding housekeeping and rock dusting that prevented any more serious issues.

Speaker Change: Despite the tedious nature of investigating and this incident like this underground.

Speaker Change: Our team in regulatory investigators concluded in about four business days.

Speaker Change: Of the biopsy them sections operating at Road Fork 52 number three section was the only section idle during that time.

Dan Horn: I will now turn the call over to Dan for some information on the coal market. Thanks, Jason, and good morning. Throughout 2023, metallurgical coal markets generally showed strength with periods of volatility in the face of economic pressures, geopolitical uncertainty, and global recessionary fears. Macroeconomic conditions around the world remain inconsistent, with some economies like the United States exhibiting continued resilience to these external pressures, while others, like the European Union, have experienced significant downfalls. While central bankers in the United States and Europe are expected to lower interest rates within the 2024 calendar year in response to easing inflation, uncertainty remains regarding when those actions may be taken and how quickly they may impact overall economic conditions.

Speaker Change: I will now turn the call over to Dan for some information on the coal markets.

Dan Horn: Thanks, Jason and good morning.

Dan Horn: Throughout 2023 metallurgical coal markets generally showed strength with periods of volatility in the face of economic pressures geopolitical uncertainty and global recessionary fears.

Dan Horn: Macroeconomic conditions around the world remaining consistent.

Dan Horn: With some economies like the United States exhibiting continued resilience to these external pressures.

Dan Horn: Others like the European being Union have experienced significant thousands.

Dan Horn: While central bankers in the United States and Europe are expected to lower interest rates within the 'twenty 'twenty four calendar year in response to easing inflation uncertainty remains regarding when those actions may be taken and how quickly they may impact overall economic conditions.

Dan Horn: Organizations such as the International Monetary Fund and the World Bank have issued muted expectations about global growth prospects for 2024-2025, citing a slower-than-historical average pace of expansion and downside risks related to geopolitical shocks, supply disruption, or Prolonged Tight Monetary Policy. Geopolitical strife, namely the Russian war in Ukraine and the violence in the Middle East, has impacted coal markets by upending natural While we have not been directly impacted by the well-publicized attacks in the Red Sea, we believe that continued volatility in metallurgical markets is possible as these macroeconomic and geopolitical circumstances evolve. Metallurgical coal indices ended the fourth quarter within a few percentage points of where they started in October, but since then, all four indices have softened. The Australian premium level index decreased from $333 per metric ton at the start of the quarter to $323.75 per ton on December 31st.

Dan Horn: Organizations, such as the International Monetary fund and the World Bank have issued muted expectations about global growth prospects for 2024 and 2025.

Dan Horn: Citing our slower than historical average pace of expansion and downside risks related to geopolitical shocks supply disruptions or prolonged tight monetary conditions.

Dan Horn: Geopolitical strife.

Dan Horn: Really the Russian war in Ukraine, and the violence in the Middle East.

Dan Horn: As impacted coal markets light up and a natural trade flows and at times, causing shipping delays do violent stemming from these conflicts.

Dan Horn: While we have not been directly impacted by the well publicized attacks in the Red Sea. We believe the continued volatility in metallurgical markets as possible as these macroeconomic and geopolitical circumstances evolve.

Dan Horn: Metallurgical coal indices ended the fourth quarter within a few percentage points of where they started in October but since then all four indices have softened.

Dan Horn: The Australian premium low vol index decreased from $333 per metric ton at the start of the quarter to $323 75.

Dan Horn: Per ton on December 31.

Dan Horn: The U.S. East Coast Low Vol Index increased from $258 per metric ton at the beginning of October to $268 per metric ton at the end of the quarter. The U.S. East Coast High Vol A Index slid from $288 per metric ton at the start of the fourth quarter to $281 per metric ton at the end of the year. And lastly, the U.S. East Coast High Vol B Index increased from $238 per metric ton at the beginning of October to $252 on December 31st, 2021. As of February 23rd, the U.S. East Coast indices of low vol, high vol A, and high vol B indices measured $265, $255, and $215 per tonne, respectively. The Australian premium low vol index decreased from its quarter level of close to $314 per metric ton on the same day.

Dan Horn: U S East Coast low Vol index increased from $258 per metric ton at the beginning of October to $268 per metric ton at the end of the quarter.

Dan Horn: U S East Coast Highball, a index slipped from $288 per metric ton at the start of the fourth quarter to $281 per metric ton at the end of the year.

Dan Horn: Lastly, the U S East Coast High Vol. B index increased from $238 per metric ton at the beginning of October to $252 on December 31 2023.

Dan Horn: As of February 23rd the U S East Coast indices of low Vol High Vol, a and high vol. B indices measured $2 65 to 55 and $215 per ton respectively.

Dan Horn: The Australian premium low Vol index has decreased from its quarter level close to $314 per metric ton on the same date.

Dan Horn: In the thermal coal markets. The API do index moved from $124 85 per metric ton at start of October.

Dan Horn: In the thermal coal market, the API2 index moved from $124.85 per metric ton at the start of October down to $103.85 per metric ton at the end of the year and down even further to $90.30 as of February 23rd. Despite some of the challenges we faced, Alpha finished the year strong, as you've heard. I want to specifically commend my team for their outstanding efforts to close out the year on a high note. We worked hard to meet our internal goals, which we were successful in doing, while even setting some new logistics records within the company. The accomplishments of last year are impossible without a dedicated team, and I am proud of what the Alpha sales team achieved. Of course, we're hoping to continue the good work this year. And with that, operator, we are now ready to open the call for questions. Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone key.

Dan Horn: $103 85 per metric ton at the end of the year.

Dan Horn: And down even further to $90 30 as of February 23rd.

Speaker Change: Despite some of the challenges we faced alpha finished the year strong as you've heard.

Speaker Change: I want to specifically come and my team for their outstanding efforts to close out the year on a high note. We worked hard to meet our internal goals, which we were successful in doing well, even setting some new logistic records within the company.

Speaker Change: The accomplishments of last you are impossible without a dedicated team and I'm proud of what all the office sales team achieved.

Speaker Change: Of course, we're hoping to continue the good work in this year.

Speaker Change: And with that operator, we're now ready to open the call for questions.

Speaker Change: Thank you.

Speaker Change: At this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

Operator: One moment, please, while we hold for questions. Our first question comes from Lucas Pipes with B Riley Security. Please proceed with your question. Thank you very much, operator. Good morning, everyone.

Speaker Change: One moment please call for questions.

Speaker Change: Our first question comes from Lucas pipes with B Riley Security. Please proceed with your question.

Lucas Pipes: You very much operator, good morning, everyone.

Lucas Pipes: You make it look really easy, but I know this is a lot of hard work, and I want to congratulate you on that. Great, great, great job. Andy, Todd, Dan, I have a question kind of for all three of you. It starts with how you think about the current market environment, what your longer-term expectations are, and then how that feeds into your capital allocation priorities, again, kind of shorter term and longer term as well.

Lucas Pipes: But you make it look nearly easy but I know this is still a lot of artwork and and.

Lucas Pipes: I wanted to congratulate you on that great great great job.

Lucas Pipes: Andy.

Lucas Pipes: Todd Dan I have a question kind of for all three of you.

Lucas Pipes: And it starts with how you think about the current market environment, what your longer expectations are and then how that feeds into your capital allocation priorities.

Lucas Pipes: Again kind of shorter term and longer term as well.

Andy Edson: Todd, I think you mentioned a little bit of a pullback on the buyback in the near term. If you could elaborate on that as well, that would be great. Thank you. Hey Lucas, it's Andy.

Lucas Pipes: What I think you mentioned a little bit of a pull back on the on the buyback in the near term if you could elaborate on that as well I would appreciate it. Thank you.

Lucas Pipes: Okay.

Lucas Pipes: Hey, Lukas, it's Andy Thanks for the call.

Andy Edson: Thanks for the comments and suggestions. And while, as you said, it's not easy, you know, looking at the comments that Jason made on a couple of operational things that we ran into, the teams that have managed those situations, and these things happen relatively frequently when you're underground, you're on a big surface mine, things go sideways sometimes, and it's really a testament to the team that they've been able to manage these things and come through safely and without I like to pass that information along to the operations team. They do make it look easy from my perspective, but I know, as well as you do, it's very, very difficult.

Andy Edson: Comments and and while as you said.

Andy Edson: It's not easy you know looking at.

Andy Edson: The comments that Jason made on a couple of operational.

Andy Edson: Things that we ran into.

Andy Edson: The teams that have managed those situations and these things happen you know relatively frequently when you're when you're underground in your own a big surface mine things go sideways, sometimes and it's really a testament to the team that they've been able to manage these things and come through safely.

And without a broader broader impact so it's not easy and.

Andy Edson: I'd like to pass that along to the operations team that they do make it look easy from my perspective, but I I know as well as you do it's very very difficult as far as how the market feeds into the buyback. So the buyback is as it's always been it's going to be driven by our cash flow every available dollar.

Andy Edson: As far as how the market feeds into the buyback, the buyback is, as it's always been, it's going to be driven by our cash flow. Every available dollar that we have above a certain liquidity target is going to go into the buyback. And so as we look at the market, and I'll let Dan comment on that piece of it, but as we see it, if it starts feeling a little bit shaky, then we're going to tend toward building a little bit higher, getting to the higher end of the liquidity level, whereas we're a little bit toward the lower end of that range right now. And building cash could come in handy if we do get into some doldrums, as we typically do in the spring part of the year.

Andy Edson: We have above a certain liquidity target is going to go into the buyback and so as we look at the market and Daniel I'll, let Dan comment on that piece of it but as we see it you know if it starts feeling a little bit shaky then we're going to tend toward probably building a little bit higher get get to the higher end of the liquidity level.

Andy Edson: As.

Andy Edson: You know, we're a little bit towards the lower end of that range right now and building cash could come in handy, if we do get into some doldrums as we typically do in the.

Andy Edson: The spring part of the year and then also as Todd mentioned seeing some of the cost pressures from particularly at this point in the year. Some purchase coal we've offered opportunistically than buying some coal where we've had a chance to talk.

Andy Edson: And then also, as Todd mentioned, seeing some of the cost pressures from, particularly at this point in the year, some purchased coal. We've opportunistically been buying some coal where we've had a chance to, to put it into some of our shipments. And while that ultimately ends up with the incremental EBITDA, it does create a kind of working capital imbalance with the timing of buying the coal versus realizing the ultimate receipt

Andy Edson: To put it into some of our shipments and while that ultimately ends up with the incremental EBITDA. It does create or kind of a working capital imbalance with the timing of buying the coal versus realizing the ultimate receipt. So that's an additional a little bit of pressure on cash that we're watching out for but it's as I said as long as.

Andy Edson: So that's an additional little bit of pressure on cash that we're watching out for. But it's, as I said, as long as the cash is there, we'll just keep AMRing along and buying those shares. But we have to be cognizant of where the market is. So Dan, anything you want to add there? Yeah, hey, Lucas.

Andy Edson: The cash is there and we'll just keep you know a M mooring along in buying the shares but we have to be cognizant of where the market is so Dan anything you want to add there.

Dan Horn: Yeah, Hey, Lucas.

Dan Horn: You know, I think, you know, we're pleased with our book the way we have it right now. I think the looking forward there, we're, we're going to be shipping into the same markets that we've been talking about in previous calls. I think I'm a little bit encouraged talking to some of our European customers. They probably can't have as tough a year as they had last year in Europe.

Dan Horn: I think.

Dan Horn: We're pleased with our book the way we have it right now I think the welcome.

Dan Horn: Looking forward, there, where we're going to be shipping into the same markets that we've been talking about in previous calls.

Dan Horn: I think I'm, a little bit encouraged talking to some of our European customers.

Dan Horn: They probably cant have as tough a year as they had last year in Europe and talking to most of the customers. They expect continental Europe to increase that.

Dan Horn: I've talked to most of the customers. They expect pot metal production in Europe to increase. That's a positive for us. That means they'll need more coke and more coke and gold. So I spoke in great detail about a lot of the economic and geopolitical uncertainty. We're watching that every day.

Dan Horn: The positive for us that means they'll need more coke in more coking coal.

Dan Horn: Bob.

Dan Horn: So I I don't have looked I spoke in great detail about why the economic and geopolitical uncertainty we're watching that every day. It seems like every day, there's something new.

Dan Horn: It seems like every day there's something new to add to the list. But I think for now, we're kind of confident with what we see in front of us. That's very helpful. Thank you. I look forward to the transcript, Andy, on that new word you used.

Dan Horn: To add to the list, but I think for now where we're kind of confident with what we see in front of us.

Dan Horn: Okay.

Speaker Change: That's very helpful. Thank you.

I look forward to the transcript.

Speaker Change: Andy.

Speaker Change: On that new work you use.

Speaker Change: Tom.

Speaker Change: Or or for that so my second question I wanted to ask about the cadence of shipments and in kind of Q1 Q2, if you could provide a little bit of an outlook.

Lucas Pipes: For my second question, I wanted to ask about the cadence of shipments and Q1, Q2, if you could provide a little bit of an outlook. And then, to circle back on the cost side, can you speak a little bit about where you still see inflationary pressures today, where you're seeing some easement, and what the situation is on the line. Thank you, Barry.

Speaker Change: And then to circle up on the on the cost side.

Speaker Change: Can you speak a little bit too, where you still see inflationary pressures today how are you.

Speaker Change: Seeing some easement what the situation is on that on the labor front. Thank you very much.

Andy Edson: Yeah, Lucas, on the shipment side, so, we typically, if you look at the current configuration of Alpha going back to the fourth quarter of 2020, basically Q1 of every year has been basically the lightest year. And I'm specifically talking about the mesh shipments; if you oscillate those, right behind us is Q4. I mean, historically, we've not had very strong Q4s. And that's something else I do want to compliment the team on again. We talked about trying to finish strong this year, and they delivered beyond anything I could have imagined, you know, 4.6 million total tons, four and a half million of MET is, an all-time record for our Q4, and so part of that was being aggressive on our shipping schedules and logistics. And, you Anytime you can accelerate that, that's a good thing. So it'll probably create even more pressure on Q1, which, again, typically was a little bit lighter. But we would normally see Q1 and Q4 be on the lighter end, Q2 and Q3 be on the stronger end, but we've...

Speaker Change: Yeah, Lucas on the shipment side so we.

Speaker Change: We typically if you look at.

Speaker Change: The current configuration of alpha going back to <unk>.

Speaker Change: Fourth quarter of 2020.

Speaker Change: Basically Q1 of every year has been.

Speaker Change: Basically the lightest year and I'm, specifically talking about the met shipments if you isolate those.

Speaker Change: Right behind it as being Q4, I mean, historically, we've not had very strong Q4, and that's something else that I do want to compliment the team about again, we talked about trying to finish strong this year and they delivered beyond anything I could have imagined and $4 6 million total times, four and a half million of met is.

Speaker Change: An all time record for our Q4, and so part of that was being aggressive on our shipping schedules in logistics and you know, we probably pulled one or two cargos that should've been Q1, 'twenty four shipments we pull those into the fourth quarter, which is a good thing anytime you can accelerate that that's a good thing so it'll probably.

Speaker Change: Create even more pressure on Q1, which again typically it was a little bit lighter, but we would normally see Q1 and Q4 being on the water and two and three b on the stronger end, but we do.

Andy Edson: The way Q4 and Q1 have blended into each other, we'll have to see how that plays out, but I think we're still feeling, you know, relatively okay about where we'll end up in the quarter just based on shipments thus far, but Dan, anything you'd like to add to that? No, you covered that on the call side. It's still a story of inflation; it's still a story of labor. I think we've seen supplies and maintenance costs start to slow down in absolute dollars, but there's still a little bit of inflation on the labor side. I think, you know, we have seen our turnover rate drop over the past quarter, which is, I think that's been a result of our attempt to try to be the, you know, the lead employer in Central Appalachian wage and benefit packages. So the goal was to get people in every seat, and I think to a large degree, we've accomplished that. But it will continue. Obviously, there is only a certain pool of candidates to choose from, and everyone wants those people.

Speaker Change: The way Q4 Q1 blended into each other we'll have to see how that plays out but I think we're still feeling you know relatively okay about where we'll end up on the quarter just based on shipments thus far but Dan anything you want to add to that.

Speaker Change: Okay.

Dan Horn: On the cost side.

It's still a story of inflation is still a story of labor I think we've seen supplies and maintenance top cost.

Dan Horn: Start to slow down in absolute dollars, but theres still a little bit of inflation on the labor side I think.

Dan Horn: <unk> seen our turnover rates.

Dan Horn: Drop over the past quarter, which is I think that's been a result of our attempts to.

Dan Horn: Be the you know the lead employer and simple central Appalachian our wage and benefit packages. So the goal is to get people in every seat and I think to a large degree we've accomplished that but it will continue obviously there are only a certain <unk>.

Dan Horn: Full of candidates to choose from and everyone everyone. Once those people so right.

Andy Edson: Right now, I think we feel pretty good about our situation, you know, cost trends just across the board continue to be somewhat of a challenge, but we're. We're focused on it. We're going to figure out creative ways to either get our productivity up or our costs down in a direct fashion, hopefully start improving that metric. Andy and team, I really appreciate all those comments.

Dan Horn: Right now I think we feel pretty good about our situation, but you.

Dan Horn: You know cost trends just across the board continue to be so.

Dan Horn: Somewhat of a challenge, but where.

Dan Horn: We're focused on it.

Dan Horn: So we're going to figure out creative ways to either get our productivity up or cost down in a direct fashion.

Dan Horn: You know hopefully start improving that that.

Dan Horn: That metric.

Speaker Change: Andy and team I really appreciate all those comments our continued best of luck keep up pick up work.

Lucas Pipes: Continue. Best of luck. Keep up the good work. Thanks, Will. As a reminder, if you'd like to ask a question, please press star 1 on your telephone. One moment, please, while we poll for questions.

Andy Edson: Thanks Lucas.

Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we poll for questions.

Operator: Our next question comes from Nathan Martin with the Benchmark Company. Please proceed with your question. Thanks, operator. Good morning, guys.

Speaker Change: Our next question comes from Nathan Martin with the Benchmark Company. Please proceed with your question.

Nathan Martin: Hey, Thanks, operator, good morning, guys. Congrats on the strong end of the year and thanks for taking my questions.

Nathan Martin: Congratulations on a strong end to the year, and thanks for taking my question. Thank you. Yeah, no problem. Dan, maybe one for you to start.

Nathan Martin: Thanks.

Nathan Martin: Yeah, No problem, Ben maybe maybe one for you to start.

Dan Horn: Spreads between the U.S. MET indices and the Australian indices remain historically wide. It'd be great to get your thoughts on how long you think that persists, and maybe what could drive improvement there. And then how are you thinking about Alpha's mix and maybe the opportunity to sell more tons into Asian markets based on those Aussie indices? And then maybe some comments on the mix that you have committed thus far, which I think is what, 35% committed and priced and then 55% committed and unpriced. That'd be very helpful.

Nathan Martin: Fred's between the U S about indices and the Australia indices remain historically wide and it'd be great to get your thoughts on how long you think that persists, maybe what could drive improvement there and then you know how are you thinking about alpha's mix and maybe the opportunity to sell more tons into Asian markets based on those also.

Nathan Martin: And then maybe some comments maybe on the mix that you have committed thus far which I think is about 35% committed and priced at 155% committed.

Speaker Change: Unpriced very helpful. Thank you.

Dan Horn: Thank you. Yeah, Nate, well, I'm not going to pretend to understand exactly how those indices move and when they're, you know, in sync with each other, but obviously, we'll follow the best realizations for us and for our products. So when we look at that, of course, a lot of the Aussie-linked business will be in Asia, as we've said in past quarters. So our eyes will be on that primarily. I think there's a fair amount of talk about the high ball, high ball this, high ball that.

Speaker Change: Yes.

Speaker Change: Yeah, well I'm not going to pretend to understand exactly how those indices move in when there.

Speaker Change: In sync with each other but.

Speaker Change: Obviously wolf will.

Speaker Change: Fall of the the best realizations for us and for our products. So when we look at that more as a lot of the the Aussie linked business will be in Asia, as we've said in past quarters, though.

Speaker Change: Our our eyes will be on that primarily.

Speaker Change: I think there's a fair amount of talk about the high ball and Ohio. All of this of all of that and we don't hear a lot is the strength of the medium vol and low vol sectors.

Dan Horn: And what we don't hear a lot is the strength of the medium ball and low ball sectors, where we see real strength here in those, in the demand for that. That's not always reflected directly in the indices right away. I think there's a lot of term business that's already been put to bed, and it's a little bit of a soft period here now with the Chinese new year ending and... I mean, some of the Indian steel makers are out of the market right now.

Speaker Change: We see real strength here.

Speaker Change: And those and the demand for that that's not always reflected directly in the indices right away.

Speaker Change: I think there's a lot of <unk>.

Speaker Change: <unk> business has already been put to bed that it's a little bit of a soft period here now with the Chinese new year ending in <unk>.

Speaker Change: Some of the Indian Steelmakers.

Speaker Change: Out of the market right now but.

Dan Horn: But I have the sense that things will get back to normal here soon. Our mix is, as I said, going to be focused more on Asia. But I do think there's opportunities in Europe as well as steelmakers come back from a rotten year in Europe. That's very helpful, Dan. And then a question as well, some of the tons that you sell into the Asian markets, are you having to sell any of those at CFR prices? I don't want to say we have to. We do. Some business is on the ZFR business. Most of it is not.

Speaker Change: Such as things will get back to normal here soon.

Speaker Change: Our mix.

Speaker Change: As I said going to be.

Focus more on Asia, but I do think there's opportunities in Europe as well as the.

Speaker Change: Steelmakers come back from a rotten year in Europe.

Speaker Change: That's very helpful. Dan and then a question as well some of the tons that you sell into the Asian markets, where you haven't been selling those at CFR prices.

Speaker Change: I don't want to say, we have to we do some business is on a CFR business.

Speaker Change: Most of it is not most of it is F O b vessel.

Dan Horn: Most of it is FOB vessel. But if there are opportunities where we need to sell it on a CFR basis, we can and will do that. Got it.

Speaker Change: But if there are opportunities, where we need to sell it on a CFR basis, we can and will do that.

Speaker Change: Got it perfect maybe kind of sticking with that there had been some numerous logistical hurdles as of late for the entire industry Port delays you guys mentioned the Red Sea you made in your prepared remarks, low water levels on the Panama Canal, etc.

Dan Horn: Perfect. Maybe kind of sticking with that, you know, there have been some numerous logistical hurdles as of late for the entire industry, port delays, as you guys mentioned, the Red Sea, you know, maybe your prepared remarks, low water levels on the Panama Canal, etc. It would be great to get an update on what Alpha's seeing on the transportation and logistics front. Sure, I'll take a shot at that.

Speaker Change: It would be great to get an update on what Alpha is seeing you know in the transportation and logistics front.

Speaker Change: Sure I'll take a shot at that and as you said the ocean freight situation as well.

Dan Horn: As you said, the ocean freight situation is a little erratic right now because of the situation. Vessels that normally would transit through the Suez Canal on their way to Asia from the U.S. are now going around the Horn of Africa. That's adding some days and some costs to those ocean voyages, but as we do most of our business on an FOB vessel basis, we don't see that direct impact right now. The freight markets move for other reasons, too. They move during the seasonal grain season, etc.

Speaker Change: Erratic right now because of the situation vessels that normally with transit through the Suez Canal on their way to Asia from the U S. Now we're going around the horn of Africa, that's adding some days and some some costs.

Speaker Change: To those those ocean voyages.

Speaker Change: But as we do most of our business on F O B vessel basis, we don't see that direct impact right now.

Speaker Change: The freight markets move for other reasons do they move through that seasonal grain season et cetera, overall economic weakness probably has a bigger effect on ocean freight and some of these other events.

Dan Horn: Overall economic weakness probably has a bigger effect on ocean freight than some of these other events. We're certainly aware of it, but it hasn't changed our targets at all. You know, with regard to the railroads, they're moving the coal well. We're pleased to see both railroads have been doing a good job for us here in recent months, so I have no other comments there. The Panama Canal situation seems to be getting a little better as well.

Speaker Change: We're certainly aware of it it hasnt changed our targets at all.

Speaker Change: Yeah.

Speaker Change: With regard to the railroads there move in the coal well, we're pleased to see both railroads have.

Speaker Change: It's been doing a good job for us here in recent months, so I am real no no other comments there.

Speaker Change: The Panama Canal situation seems to be getting a little better as well.

Speaker Change: Okay great.

Dan Horn: Okay, great. I think I'll leave it there. Appreciate the color, Dan, and best of luck to you guys on 24th. Thanks.

Speaker Change: I'll leave it there I appreciate the color Dan and best of luck to you guys in 'twenty four.

Dan Horn: Thanks Nate.

Andy Edson: We have reached the end of the question and answer session. I will now turn the call back over to Andy Edson for closing. Thanks again to everyone for joining us today and for your interest in Alpha. We hope you have a great rest of the day. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Dan Horn: We have reached the end of the question and answer session I will now turn the call back over to Andy Hudson for closing remarks.

Andy Hudson: Thanks, again to everyone for joining us today and for your interest in Alpha and we hope you have a great rest of the day.

Speaker Change: This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.

Speaker Change: Okay.