BROOKWOOD, Ala.--(BUSINESS WIRE)--
Warrior Met Coal, Inc. (“Warrior” or the “Company”) (NYSE: HCC)
announced today that Standard & Poor’s (“S&P”) Rating Services has
affirmed the Company’s corporate credit rating of “B+”, with a stable
outlook. At the same time, S&P raised the issue-level rating on the
Company’s Senior Secured Notes due 2024 from “BB-” to “BB” and the
recovery rating to “1” from “2”. S&P cited the Company’s strong
performance, strong credit metrics and stable outlook as reasons for its
new ratings. The upgrade reflects S&P’s view about Warrior’s ability to
maintain strong EBITDA margins, low debt leverage and strong free cash
flow in 2019.
Warrior is a large-scale, low-cost U.S. based producer and exporter of
premium hard coking coal (“HCC”) operating highly efficient longwall
operations in its underground mines located in Alabama. The HCC that
Warrior produces from the Blue Creek coal seam contains very low sulfur
and has strong coking properties, and is of a similar quality to coal
referred to as the premium HCC produced in Australia. The premium nature
of Warrior’s HCC makes it ideally suited as a base feed coal for steel
makers and results in price realizations near the HCC industry average
index price. Warrior sells all of its met coal production to steel
producers in Europe, South America and Asia. For more information about
Warrior Met Coal, please visit www.warriormetcoal.com.
Forward-Looking Statements
This press release contains, and the Company’s officers and
representatives may from time to time make, forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended.All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or
may occur in the future are forward-looking statements, including
statements regarding sales and production growth, ability to maintain
cost structure, demand, the future direction of prices, expected capital
expenditures and future effective income tax rates. The words “believe,”
“expect,” “anticipate,” “plan,” “intend,” “estimate,” “project,”
“target,” “foresee,” “should,” “would,” “could,” “potential,” or other
similar expressions are intended to identify forward-looking statements.
However, the absence of these words does not mean that the statements
are not forward-looking. These forward-looking statements represent
management’s good faith expectations, projections, guidance or beliefs
concerning future events, and it is possible that the results described
in this press release will not be achieved.These forward-looking
statements are subject to risks, uncertainties and other factors, many
of which are outside the Company’s control, that could cause actual
results to differ materially from the results discussed in the
forward-looking statements, including, without limitation, fluctuations
or changes in the pricing or demand for the Company’s coal (or met coal
generally) by the global steel industry; federal and state tax
legislation; changes in interpretation or assumptions and/or updated
regulatory guidance regarding the Tax Cuts and Jobs Act of 2017;
legislation and regulations relating to the Clean Air Act and other
environmental initiatives; regulatory requirements associated with
federal, state and local regulatory agencies, and such agencies’
authority to order temporary or permanent closure of the Company’s
mines; operational, logistical, geological, permit, license, labor and
weather-related factors, including equipment, permitting, site access,
operational risks and new technologies related to mining; the Company’s
obligations surrounding reclamation and mine closure; inaccuracies in
the Company’s estimates of its met coal reserves; the Company’s
expectations regarding its future tax rate as well as its ability to
effectively utilize its NOLs; the Company’s ability to develop or
acquire met coal reserves in an economically feasible manner;
significant cost increases and fluctuations, and delay in the delivery
of raw materials, mining equipment and purchased components; competition
and foreign currency fluctuations; fluctuations in the amount of cash
the Company generates from operations, including cash necessary to pay
any special or quarterly dividend or the timing and amount of any stock
repurchases the Company makes under its stock repurchase program; the
Company’s ability to comply with covenants in its credit facility or
indenture relating to the Notes; integration of businesses that the
Company may acquire in the future; adequate liquidity and the cost,
availability and access to capital and financial markets; failure to
obtain or renew surety bonds on acceptable terms, which could affect the
Company’s ability to secure reclamation and coal lease obligations;
costs associated with litigation, including claims not yet asserted; and
other factors described in the Company’s Form 10-K for the year ended
December 31, 2017, Form 10-Q for the quarterly period ended September
30, 2018 and other reports filed from time to time with the Securities
and Exchange Commission (the “SEC”), which could cause the Company’s
actual results to differ materially from those contained in any
forward-looking statement. The Company’s filings with the SEC are
available on its website at www.warriormetcoal.com
and on the SEC’s website at www.sec.gov.
Any forward-looking statement speaks only as of the date on which it
is made, and, except as required by law, the Company does not undertake
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.New
factors emerge from time to time, and it is not possible for the Company
to predict all such factors.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190123005880/en/
Analysts and Investors, contact:
Dale W. Boyles, (205) 554-6129
News
Media, contact:
William Stanhouse, (205) 554-6131
Source: Warrior Met Coal, Inc.