Warrior Met Coal, Inc. (NYSE:HCC) Q4 2022 Earnings Conference Call February 15, 2023 4:30 PM ET

Company Participants

Walter Scheller - CEO

Dale Boyles - CFO

Conference Call Participants

Lucas Pipes - B. Riley Securities

Nathan Martin - The Benchmark Company

David Gagliano - BMO Capital Markets

Lucas Pipes - B. Riley Securities

David Gagliano - BMO Capital Markets

Operator

Good afternoon. My name is Joe, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Met Coal Fourth Quarter and Full Year 2022 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] This call is being recorded and will be available for replay on the company's website.

Before we begin, I have been asked to note that today's discussion may contain forward-looking statements, and actual results may differ materially from those discussed. For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings.

I have also been asked to note that the company has posted reconciliations to of the non-GAAP financial measures discussed during this call in the tables accompanying the company's earnings press release located on the Investors section of the company's website at www.warriormetcoal.com. In addition to the earnings release, the company has posted a brief supplemental slide presentation to the Investors section of its website at www.warriormetcoal.com.

Here today to discuss the company's results are Mr. Walt Scheller, Chief Executive Officer, and Mr. Dale Boyles, Chief Financial Officer.

Mr. Scheller, you may begin your remarks.

Walter Scheller

Thanks, operator. Hello, everyone, and thank you for taking the time to join us today to discuss our fourth quarter and full year 2022 results. After my remarks, Dale will review our results in additional detail, and then you'll have the opportunity to ask questions.

We ended the fourth quarter with optimism, the strong customer demand to facilitate a drawdown of our inventories with the expectation of continuous improvement in rail transportation and improved performance at the McDufffie Terminal.

Unfortunately, several uncontrollable shipment delays continue to drive higher-than-normal inventories and lower shipment volumes in the fourth quarter. As we mentioned on previous calls, the rail transportation and the McDufffie Terminal performance issues impacted our shipment volumes each quarter during 2022 and caused our demurrage costs to increase by 415% last year.