Warrior Met Coal, Inc. (NYSE:HCC) Q3 2022 Results Earnings Conference Call November 3, 2022 4:30 PM ET

Company Participants

Walter Scheller, III - Chief Executive Officer

Dale Boyles - Chief Financial Officer

Conference Call Participants

Lucas Pipes - B. Riley Securities

Nathan Martin - The Benchmark Company

Alex Hacking - Citi Investment Research

Mark Zand - Wexford Capital

Patrick Fitzgerald - Robert W. Baird

Operator

Good afternoon. My name is Melanie, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Warrior Met Coal Third Quarter 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 release and the SEC filings.

I have also been asked to note that the company has posted reconciliations 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 at the Investors section at 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, III

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

I'm happy to share our performance from another very strong quarter, delivering results above expectations despite market headwinds. We again demonstrated our ability to leverage our efficient business model to make strong customer demand for our premium met coal and take advantage of strong met coal pricing to deliver those results.

The most notable ongoing headwind constraining our performance relates to shipment delays, which is not a new challenge, but which became particularly problematic during the third quarter due to a variety of factors. Combination of disappointing rail performance, outages from major equipment maintenance work at the Port of Mobile that was eight weeks behind schedule, and substantial vessel congestion led to higher coal inventory levels, missed sales, and higher demurrage costs. While the port maintenance outages should be behind us, we expect to continue to experience port congestion challenges in the upcoming quarters.