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Alpha Natural Resources, Llc
TickerANR

www.alphanr.com

One Alpha Place, Po Box 2345
Abingdon, VA  24212-2345
USA
Phone276.619.4444

Company Information
Company Information
IndustryMining (including metal, coal, etc)
  
# of Employees3546
  
OwnershipPublic Company
  
  
  
  
Fortune 1000 Rank881
Description
Alpha Natural Resources is a leading producer of high-quality
Appalachian coal. Approximately 91 percent of the company's reserve base is high Btu coal and 84 percent is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also one of the nation's largest producers and exporters of metallurgical coal, a key ingredient in steel manufacturing. Alpha and its subsidiaries currently
operate mining complexes in four states, consisting of 67 mines feeding 11 coal preparation and blending plants. The company and its subsidiaries employ approximately 3,700 people.


Top Executives
Executive NameTitle
Crutchfield, KevinPresident, Director
Kroh, DExecutive Vice President
Quillen, MichaelChairman Of The Board, Chief Executive Officer
Stuebe, DavidChief Financial Officer, Vice President, Treasurer
      
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Recent Company Events
DateType of EventDetails
2008-02-12Earnings/DividendsCoal revenues for the quarter rise $32 million compared with the same period in 2006 Net income totals $5.7 million for the quarter; EBITDA increases to $58.9

million from $56.0 million in fourth quarter of 2006 Continued strength in export markets drives price realization in fourth

quarter to highest point in 2007

At year end Alpha retained approximately 9 million tons of planned

metallurgical coal production unsold for 2008 2009 Company wide safety performance improves in 2007 for third successive

year

ABINGDON, Va., Feb. 12 /PRNewswire FirstCall/ Alpha Natural Resources, Inc. , a leading supplier of high quality Appalachian coal, reported an 8 percent improvement in coal revenues in the fourth quarter of 2007 as worldwide demand for metallurgical grade coals showed continuing strength.

Coal revenues for the three months ended Dec. 31, 2007 totaled $437.6 million, up $32.0 million from the fourth quarter of 2006. Net income for the most recent quarter was $5.7 million ($0.09 per diluted share), compared with net income of $63.3 million ($0.98 per diluted share) in the fourth quarter of 2006.

Earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) totaled $58.9 million for the fourth quarter of 2007. For the same period in 2006, the company reported EBITDA of $56.0 million. The definition of EBITDA and a reconciliation to net income, the most closely related GAAP measure, is provided in a table included with the accompanying financial schedules.

A global boom in steel production, coupled with freight and exchange rates that favored U.S. coal producers, resulted in better than planned fourth quarter shipments of high margin metallurgical coal and record sales volumes of nearly 11 million tons for the full year. Alpha is the largest U.S. supplier and exporter of metallurgical coal, which is an essential raw material for the majority of the world's steel makers.

In the fourth quarter of 2007, Alpha contracted approximately four million tons of its planned metallurgical output for 2008 at an average price of $87, approximately $16 higher than its average realized price in the third quarter. At year end the company still had approximately one million tons of planned metallurgical coal production yet to commit and price for 2008 and more than eight million tons uncommitted and unpriced for 2009. Planned production does not include any coal that the company purchases to supplement production and service spot market opportunities.

At the end of 2007, Alpha was almost fully committed on its planned 2008 thermal coal production, while two thirds of 2009 production was available to contract and price. With futures markets indicating a run up in forward thermal coal prices, and exports to Europe tightening U.S. supplies further, Alpha has been in active discussions with utility buyers.

"Market fundamentals continue to improve for both thermal and metallurgical coal, putting prices on a consistent upward trajectory," said Michael Quillen, Chairman and CEO. "As an example, so far in 2008 we've contracted with utilities to supply more than 800,000 tons of thermal coal in 2009 at price levels approximately 50 percent higher than we averaged last year. We believe that our margin and cash generation prospects for at least the next couple of years are very favorable."

Added Kevin Crutchfield, Alpha's president: "The tension between increasing demand for coal around the world and constraints in supply, in our view, will remain intact for some time to come."

Quarterly Financial & Operating Highlights

(in millions, except per share and per ton amounts)

Q4 Q3 Q4

2007 2007 2006

Coal revenues $437.6 $438.6 $405.5

Income from operations $17.8 $20.8 $19.2

Net income $5.7 $8.9 $63.3*

Earnings per diluted share $0.09 $0.14 $0.98*

EBITDA $58.9 $65.1 $56.0

Tons of coal produced and

processed 5.8 6.1 6.0

Tons of coa
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