e8vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 24, 2009 (February 24, 2009)
Arch Coal, Inc.
(Exact name of registrant as specified in its charter)
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| Delaware
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1-13105
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43-0921172 |
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(Commission File Number)
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(I.R.S. Employer Identification No.) |
| incorporation) |
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CityPlace One
One CityPlace Drive, Suite 300
St. Louis, Missouri 63141
(Address, including zip code, of principal executive offices)
Registrant’s telephone number, including area code: (314) 994-2700
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
Item 7.01 Regulation FD Disclosure.
On February 24, 2009, Steven F. Leer, Chairman and Chief Executive Officer of Arch Coal, Inc.,
will deliver a presentation at the BMO Capital Markets 2009 Global Metals and Mining Conference
that will include written communication comprised of slides. The slides from the presentation are
attached hereto as Exhibit 99.1 and are hereby incorporated by reference.
A copy of the slides will be available at http://investor.archcoal.com/events.cfm for
30 days.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is attached hereto and furnished herewith.
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| Exhibit |
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Description |
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99.1
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Slides from the presentation at the BMO Capital Markets 2009
Global Metals and Mining Conference. |
1
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| Dated: February 24, 2009 |
Arch Coal, Inc.
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By: |
/s/ Robert G. Jones
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Robert G. Jones |
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Senior Vice President – Law, General Counsel and
Secretary |
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Exhibit Index
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| Exhibit |
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Description |
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99.1
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Slides from the presentation at the BMO Capital Markets 2009
Global Metals and Mining Conference. |
exv99w1
Exhibit 99.1
BMO Capital Markets
2009 Global Metals & Mining Conference |
| Steve Leer, Chairman & CEO Arch Coal, Inc. |
| Hollywood, Florida February 24, 2009 |
| Forward-Looking Information |
| This presentation contains “forward-looking statements” — that is, statements related to future,
not past, events. In this context, forward-looking statements often address our expected future
business and financial performance, and often contain words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” or “will.” Forward-looking statements by their nature
address matters that are, to different degrees, uncertain. For us, particular uncertainties arise
from changes in the demand for our coal by the domestic electric generation industry; from
legislation and regulations relating to the Clean Air Act and other environmental initiatives; from
operational, geological, permit, labor and weather-related factors; from fluctuations in the amount
of cash we generate from operations; from future integration of acquired businesses; and from
numerous other matters of national, regional and global scale, including those of a political,
economic, business, competitive or regulatory nature. These uncertainties may cause our actual
future results to be materially different than those expressed in our forward-looking statements.
We do not undertake to update our forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by law. For a description of
some of the risks and uncertainties that may affect our future results, you should see the risk
factors described from time to time in the reports we file with the Securities and Exchange
Commission. |
| This presentation includes certain non-GAAP financial measures, including Adjusted EBITDA. These
non-GAAP financial measures are not measures of financial performance in accordance with generally
accepted accounting principles and may exclude items that are significant in understanding and
assessing our financial results. Therefore, these measures should not be considered in isolation or
as an alternative to net income from operations, cash flows from operations, earnings per
fully-diluted share or other measures of profitability, liquidity or performance under generally
accepted accounting principles. You should be aware that our presentation of these measures may not
be comparable to similarly-titled measures used by other companies. A reconciliation of these
financial measures to the most comparable measures presented in accordance with generally accepted
accounting principles has been included at the end of this presentation. |
| CURRENT COAL MARKET OUTLOOK I LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| After an exceptionally strong first half of 2008, energy markets have weakened considerably
25.00 -i |
20.00 f II
15.00 I#W I
10.00 * Ia /k/fcVif V I
nil JLn. MijK/1 *“Wl/\“V|/ ‘H Crude Oil
500 /AjjytoMti Yj**0 Natural Gas
I
tiiKjijggSM** .a* -~~~ —— ¦” ¦* Coal/CAPP
—
1
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 |
| — NYMEX Light Sweet Crude — NYMEX Henry Hub Nat Gas — CAPP NYMEX 12000
•Global economic recession has led to a contraction in energy demand |
| -Electricity use and steel production have slowed
•Weak market trends also are spurring swift supply rationalization
- -Lack of credit causing financial distress among smaller or leveraged companies
- -Expansion projects are being delayed and production is being trimmed
- -Under investment in supply will set the stage for next market up-cycle
Source: ACI, NYMEX, Argus Coal Daily Slide 3 |
| CURRENT COAL MARKET OUTLOOK H LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Power generation and coal consumption are likely to be down in 2009, but so will supply |
| · Global economic slowdown is putting
pressure on coal markets in the near term Change in Consumption of U.S. Coal
(in million tons)
— Expect demand contraction26
of 50 million tons in 2009,20 14
driven by reduced power and
export demand as well asM
the potential for natural gas
displacement(13) |
| · Supply rationalization is underway,
and will help to rebalance markets (50)
– Announced domestic coal supply 2005 2006 2007 2008 2009E cuts total nearly 35 million tons
— We’re already seeing production |
W Arch Coal, Inc.
Source: EEI, EIA, MSHA and ACI Slide 4 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Prosperity is linked to electricity use
1.000
0.900 Australia / ? Canada Norway Iceland
(9\ Poland\ / Kuwait
0.800 \A ? \ United
? \ Russia \ States
? China\ \
0.700 , . A—
Indonesia. \ \
0.600 ?India S. Africa Japan, France, Netherlands,
Pakistan \ Israel, United Kingdom, Italy
0.500 ?— -X—
Nigeria Argentina, Mexico, Brazil
0.400 <
Ethiopia
0.300
0 200 World average HDI = 0.729
—
0.100 World average per capita electricity
consumption = 3,427 kWh/person/year
0 5,000 10,00015,00020,000 25,000 30,000 35,000
Electricity consumption per capita (in kWh) W| _ |
| Source: United Nations Human Development Report 2007/2008 Slide 5 |
| CURRENT COAL MARKET OUTLOOK ABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN CLEAN COAL ABOUT
ARCH COAL |
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Coal has been the world’s fastest-growing fuel source in the past seven years
Cumulative Percent Change in Global Energy Consumption
2000 — 2007 |
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(in million tonnes of oil equivalent)
Coal 35% |
| Nat. Gasl 20% • Since 2000, global coal use has
grown by 35%, nearly double the
— h consumption growth in natural gas |
| Hydro I 16%
¦ ¦ • Growth in coal demand will
1 continue to be driven by consumption |
| Oil 11% in the developing world, with gains in
1 the developed world as well |
| Nuclear! 6% • Fossil fuels are expected to remain |
| dominant global energy sources
through 2030 |
W Arch Coal, Inc.
Source: BP Statistical Review of World Energy 2008 Slide 6 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Around the world, countries are building coal plants
to fuel electricity needs
Plants Under Construction ,<.
—
j*. 2007 Global
y*0 Coal Production:
f(~ 6 billion metric tons
f ......... >. ,j Europe (non-CIS)
—
M i £*r I I Oth a
—— —— —
Africa by 2013
— |
| Source: ACI and Platts International Slide 7 |
| CURRENT COAL MARKET OUTLOOK ABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN CLEAN COAL ABOUT
ARCH COAL |
| In the United States, electricity demand has steadily climbed since 1950
4000
3500
3000
2500
2000 |
| 0
Residential Commercial “Industrial Other** Dj Arch coai.inc. |
| Source: EIA *LTM ending 11/30/08 **Includes power sold directly to transportation sector and
self-generating power Slide 8 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
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U.S. coal consumption growth will be driven by increasing capacity utilization and new plant start-ups
Average Capacity Factors at Anticipated Annual Supply Needs for
Existing U.S. Coal-Fueled Power Plants U.S. Coal Plants Under Construction
(percent of plant utilization) .................. (in millions of tons)
85% — 20
80% Demonstrated at Summer Demand Peak
80% ™- ¦ PRB ¦ Non-PRB
75%— —74% 15
70% 67%. — ¦ ¦¦II III 10 ...................
65%
60% 5
55%
50%
97 98 99 00 01 02 03 04 05 06 07 20092010 2011 2012 |
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•Average utilization for the U.S. coal • Build-out of 16 GW through 2012
generation fleet continues to climb equates to 55 million tons
of new annual coal demand
•Plants have demonstrated the ability
to operate at an 80% level in summer • PRB will likely service roughly half
— Achieving 80% utilization equates to of this demand
an incremental 80 million tons annually
Source: Platts, EIA and ACI Slide 9 |
| CURRENT COAL MARKET OUTLOOK ABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN CLEAN COAL ABOUT
ARCH COAL |
| CAPP index coal prices have fallen considerably; some high-cost supply likely to disappear
Central Appalachia CSX Rail 1.2% Central Appalachia Supply Curve
Coal Index Forward Prices (2007 cash costs per ton)
$100 i |
| I
$111 $111 $70 f
—
2010 current index price *
—— — |
| $57 $57 $59 $62 r~~
—
$20 r*— |
| $10 I .............................................................................................. 1 .........................
2Q093Q094Q092010
0 50 100150 200 250
¦ As of 10/3/08 ¦ As of 2/20/09 Production (in million tons) |
| · CAPP index forward prices have fallen more than 40% since last fall |
| · Current prices are likely below the marginal cost of some producers |
W Arch Coal, Inc.
Source: ACI and Argus Coal Daily Slide 10 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| U.S. coal mining productivity has been on the decline since the start of this decade
Powder River Basin Western Bituminous Central Appalachia
50 (tons per hour) 10 (tons per hour) 7 (tons per hour)
6
40 8
30 6
Mill Mill irltJ
10 ‘— ...... ....... * .... 2 ‘— ....... ....... ’— 2
‘00 ‘02 ‘04’06 ‘08 ‘00 ‘02’04’06’08 ‘00’02’04’06’08
PRB surface Western Bit. underground | CAPP surface ¦ CAPP underground |
| Productivity declines are occurring across all major basins, including
Northern Appalachia and the Illinois Basin |
n Arch Coal, Inc.
Source: ACI, Energy Velocity Slide 11 |
| CURRENT COAL MARKET OUTLOOK ABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN CLEAN COAL ABOUT
ARCH COAL |
| Powder River Basin market expansion is underway
China <r7—~-i—J ! prbm ...... J—Ac—(; -""Jr
& ) / / i ................... v j/ a j y*—\g\ 58—-c./
—
India V \ / 1 j ............... V ............... ? 1©L /"* |
| >1 million ton increase in PRB coal burn |
| 9 Recent test burnsPRB demand has grown by more than 80 million tons in past 5 years, increasing
penetration of existing markets and expanding reach into new markets |
| · Arch has signed agreements with traditional and non-traditional PRB customers to test - as well as increase burn of — PRB coal |
| · This trend should help to further unlock the value of reserves in the region over time |
| CURRENT COAL MARKET OUTLOOK -TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN CLEAN
COAL ABOUT ARCH COAL |
| Since 1990, PRB coal has gained market share in border states just east of the Mississippi River
Border States Border States Border States
East of Mississippi River East of Mississippi River East of Mississippi River |
| Burn by Coal Type circa 1990 Burn by Coal Type circa 1995 Burn by Coal Type circa 2008
¦ PRBNon-PRB ¦ PRBNon-PRB ¦ PRB ¦ Non-PRB
• Eastern border state • By 1995, power plants • Current 73 percent
power plants in Wisconsin, in these four states mix of PRB coal has
Illinois, Tennessee and increased their mix of been achieved with
Mississippi historically PRB coal from 22 relatively modest
burned a small mix of percent to 42 percent capital investment
PRB coal in just five years |
| Source: ACI and Energy Velocity *Border states represent WS, IL, TN and MS Slide 13 |
| CURRENT COAL MARKET OUTLOOK AVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN CLEAN COAL
ABOUT ARCH COAL |
| We foresee increased PRB market expansion opportunities further east of the Mississippi River
Non-Border States (Eastern power plants in non-
East of Mississippi River border states are generally
Burn by Coal Type circa 2008 comparable in design to
27% j \ plants in the border states
f X\ i-csCSw Non-border state plants
V I x~—>/ y w should be able to increase
S h /L——-"" ...... their PRB coal use greatly |
| r ~2-*w> /S \ with minimal investment
¦PRB switching opportunity ( \ 5 ***-*-*.
¦Non-PRB \ \ 7
?V/"~ N \ Based on historical switching in the
fr \ border states and the lower heat
\J content of PRB coal, the theoretical
PRB switching opportunity
>< in the East is substantial >
Source: ACI and Energy Velocity Slide 14 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
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Coal is an affordable and secure energy choice for America
U.S. Energy Reserves U.S. Petroleum Supply U.S. Fuel Prices |
| | | |
(in trillion Btu) (million barrels per day, 2007) ($/million Btu at 2/20/09)
Coal: 94% fcr >10x $6.72 |
| PRB Natural Crude
¦ Coal ¦ Natural Gas ¦ Oil ¦ Domestic ¦ OPEC ¦ Non-OPEC 8800 Gas Oil |
| FOB rail Wellhead
(2Q09) (March 2009) |
W Arch Coal, Inc.
Source: EIA, BP Statistical Review of World Energy 2008, Argus Coal Daily and NYMEX Slide 15 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Since 1970, coal has been used in increasingly clean ways in the United States
|
| Higher efficiency rates and carbon capture technologies |
| create opportunities for reducing carbon intensity as well |
| Source: NMA, EPA NO(Sulfur Dioxide), PM10
(Particulate Matter) Slide 16 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| President Obama recognizes need for low-cost and secure energy; supports clean coal technologies
W: “To the extent ... that we can sequester carbon,
¦ capture greenhouse gases before they’re emitted
I5- r 1 into the atmosphere, that’s going to be good for
1 everybody. Because if we don’t, then we’re going
L* -W A to have a ceiling at some point in terms of
W \ \ w M our ability to expand our economies and
v I fl/ maintain the standard of living
k I fmm
[ Jfi 1 i FAZs U.S. President Obama (2/18/09) |
| · Obama has announced plans to develop five “first-of-a-kind” commercial scale
coal-fueled plants with carbon capture and sequestration (CCS) technology |
| · New stimulus bill includes $3.4 billion to advance clean coal technologies, including
CCS development |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Clean coal technologies can create jobs, increase
energy security and address climate concerns
Plug-in hybrids areCoal can be converted Coal can be converted
perhaps the best andinto transportation fuels, into synthetic natural gas
most realistic way tothus reducing our for use in residential as
decarbonize thereliance on imported well as a wide range of
automotive fleetenergy industrial applications |
| · Coal conversion technologies can unlock coal’s full potential |
| · Arch participates via an equity interest in DKRW, who plans to build a
coal-to-gasoline facility on Arch’s reserves in southern Wyoming |
| - Proposed plant would capture CO2 to enhance recovery
in domestic oil fields 5 Arch Coal‘lnc |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Arch is funding university research projects dedicated to advancing clean coal technologies
The goal of the Consortium for Clean Coal cleaa/ c
Utilization at Washington University in St. Louis W * jVH
is to bring university researchers, industries, W5 j mk %k
foundations and government organizations ¦ g |«5fc*iK I
together to research clean coal technology. ¦ o Wg9M* m
—
II Washing V- • |
| The Clean Coal Technology Center at the
University of Wyoming’s School of Energy |
| imSD| Resources is dedicated to advancing coal
EraQQn utilization research as well as school programs
Hi HBSS9 geared towards energy-related careers.
JJUSamM hfcyjj— Arch Coal Inc.
—— — |
| Source: ACI, university websites Slide 19 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Arch Coal is well-positioned for the future |
| · One of the largest coal producers in the United States |
| · We supply roughly 12 percent of the U.S. coal supply |
| -Provide cleaner-burning, low-sulfur coal to domestic power producers to fuel 6 percent of the nation’s electricity
- -Ship coal to domestic and international steel manufacturers as well as international power producers |
| · Our talented workforce operates large, modern and efficient mines
Industry leader in mine safety and environmental commitment Arch Coal, Inc. |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Arch’s national scope of operations and reserve base includes presence in four major U.S. coal basins
! |___WJi Illinois Basin J
Pow — Kj !h>ht Hawk w
Basin w 13 / ‘— ............................ ‘ |
| 1. Co jBBfffi 1 1u si Sk J tffl v |
| ™2 l$a ra 1 ¦’ fi4 3 1Q S
Bituminous Ts!*8$J| K BI H ¦ Appalachia |
| 1. Arch of Wyoming iSI ISM MR £5 El h Vji’ ,,±,,¦,, ¦ ,, ,,«i « «, ,.
3 3 A.:
¦]|SP*PvVi 1. Mountain Laurel |
| 2. Skyline PF o ~,,i ha
,, 3 1P M 2. Coal-Mac
3. Dugout « W mm. *> ~i-i .................... i n- ~«
___, W B 3. Cumberland River
4. Sufco V , , .. «- ,,- ¦
+ air ™ 4. Lone Mountain
5. West Elk .. | 2.9-Billion Ton Reserve Base I |
| ¦ Low-sulfur mWPRBB flVWBITlB mm ILB ¦! (¦CAPPbI
| High-sulfur Y(1,753)P (4) 7 (34 (3m 4W
¦ J Arch Coal, Inc. |
| Source: ACI assigned reserves at 12/31/07 Slide 21 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Arch’s safety and environmental performance
is the best among the largest public coal companies
Lost-Time Safety Incident Rate
(per 200,000 employee-hours worked) • Arch’s safety record is the best
in the U.S. coal industry
3.86 ’ |
| ¦**>>>(( 349 — Awarded MSHAs Sentinels of |
| **’” a337 B331 Safety honor for operating the
- -"306 nation’s safest underground coal
Industry Five Year Average = 3.42
mines in 2006 and 2007 |
| · Arch’s environmental
1.40 088...1 1.02 performance ranks first among
‘-?0.81 major coal industry peers
Arch Five Year Average = 1.07
– Earned 5 National Good
2004 2005 2006 2007 2008 Neighbor Awards since 2003 |
| Sources: ACI, MSHA Slide 22 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| | | | | | | | | | | | |
Arch’s financial performance highlights the success of the company’s market-driven philosophy
Revenues Cash Flow from Operations
(in $millions) ................... (in $millions)
$2,984
$679
$2,500
$308 $331
2006 2007 2008 2006 2007 2008 |
| | | | | | | | | | | | |
Earnings per Share Adj. EBITDA* |
| (fully diluted) (in $millions)
$2.45 $753 |
| ii ....... i ............ i 2
2006 2007 2008 2006 2007 2008 |
| Source: ACI Note: Results adjusted for stock splits. *EBITDA reconciliation is at end of
presentation Slide 23 |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Arch’s market-driven strategy will be the driver of future value creation |
| · Reduce production targets during ,-H
weak market cycles
— Preserves future value of reserve base |
| · Lower capital spending levels BSS
— Match spending with our expectations Jjjk w- iL
of market demand and reduced %/t:
production targets Ohm~ U |
| · Diligently manage controllable costs |fc«
— Maintain operational flexibility at our operations |
| · Remain patient in sales contracting
— Layer in sales as market rebounds
— Use of trading to optimize asset base |
| CURRENT COAL MARKET OUTLOOK LONG-TERM FAVORABLE ENERGY TRENDS ENERGY SECURITY & ADVANCES IN
CLEAN COAL ABOUT ARCH COAL |
| Arch’s future growth avenues are compelling
Strategic Growth Organic Growth
Consider acquisitions or Invest in core businesses to
other investments that enhance profit growth and
strategically fit return on capital, evaluate
and create value opportunities to further upgrade |
| Market Expansion Capital Structure Enhancement |
| Consider investments to Maintain strong balance sheet,
expand market for coal and consider other vehicles
(and improve coal’s value proposition) for value creation, such as
through Btu-conversion and other share repurchases or dividend
advanced coal technologies increases, when advantageous |
Arch Coal, Inc.
Source: ACI Slide 25 |
| EBITDA Reconciliation Chart |
| Included in the accompanying presentation, we have presented certain non-GAAP measures as defined
by Regulation G. The following reconciles these items to net income as reported under GAAP. |
| Year Ended December 31,
200620072008 |
| —
(in $000s)
Net income $260,931$174,929$354,330
Income tax (benefit) expense 7 ,650(19,850) 41,774 |
| Interest expense, net 60,63972,265 64,285 |
| Depreciation, depletion and amortization 208,354242,062 292,848 |
| Expenses from early debt extinguishment and other non-operating 7 ,4472 ,273 .. — .....
—— —
Adjusted EBITDA $545,021 $471,679 $753,237 |
