ARCH - Arch Resources to pay out half of Q3 cash flow to shareholders

Arch Resources ( NYSE: ARCH ) +10.8% in Thursday's trading despite missing Q3 adjusted earnings estimates, as the coal producer declared a $206.4M quarterly cash dividend out of $412.7M in discretionary cash flow, or cash flow from operating activities after contributions to the thermal mine reclamation fund and less capital expenditures.

Q3 net income doubled to $181M, or $8.68/share, from $89.1M, or $4.92/share, in the year-earlier, on revenues of $863.8M, up 45% Y/Y, as coal prices and global demand remained strong.

Q3 adjusted EBITDA rose to $223M from $131.6M in the year-ago quarter.

Since the beginning of the year, Arch ( ARCH ) said it has generated more than $1B in operating cash flows, deployed $677.8M under its capital return program including the December 2022 dividend, reduced debt by $426.9M, and raised its net cash position to $323.4M.

Arch ( ARCH ) said it expects coking coal shipments to increase modestly in Q4 from Q3, but has adjusted down full-year volume guidance to reflect ongoing logistical disruptions.

The company said the Leer South mine in West Virginia progressed into better geology in September and has continued to execute at an improved productivity level in October.

Arch Resources' ( ARCH ) stock price return shows a 75% YTD gain and a 65% increase during the past year .

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