The following discussion and analysis provides a narrative of our results of
operations and financial condition for the three months ended March 31, 2020 and
March 31, 2019. You should read the following discussion and analysis of our
financial condition and results of operations together with our financial
statements and related notes appearing in this Form 10-Q and the audited
financial statements for the year ended December 31, 2019 included in our Annual
Report on Form 10-K for the year ended December 31, 2019 (the "2019 Annual
Report"). Some of the information contained in this discussion and analysis or
set forth elsewhere in this Form 10-Q, including information with respect to our
plans and strategy for our business and related financing, includes
forward-looking statements that involve risks and uncertainties. As a result of
many factors, our actual results could differ materially from the results
described in, or implied by, the forward-looking statements contained in the
following discussion and analysis. Please see "Forward-Looking Statements."
Overview

We are a U.S.-based, environmentally and socially minded supplier to the global
steel industry. We are dedicated
entirely to mining non-thermal met coal used as a critical component of steel
production by metal manufacturers in Europe,
South America and Asia. We are a large-scale, low-cost producer and exporter of
premium met coal, also known as hard
coking coal ("HCC"), operating highly-efficient longwall operations in our
underground mines based in Alabama, Mine No. 4
and Mine No. 7.
As of December 31, 2019, based on a reserve report prepared by Marshall Miller &
Associates, Inc. ("Marshall Miller"), Mine No. 4 and Mine No. 7, our two
operating mines, had approximately 105.3 million metric tons of recoverable
reserves and, based on a reserve report prepared by Stantec Consulting Services,
Inc. ("Stantec") our undeveloped Blue Creek mine contained 103.0 million metric
tons of recoverable reserves. As a result of our high quality coal, our realized
price has historically been in line with, or at a slight discount to, the Platts
Premium Low Volatility ("LV") Free On Board ("FOB") Australia Index Price
("Platts Index"). Our HCC, mined from the Southern Appalachian portion of the
Blue Creek coal seam, is characterized by low sulfur, low-to-medium ash, and LV
to mid-volatility ("MV"). These qualities make our coal ideally suited as a
coking coal for the manufacture of steel.
We sell substantially all of our met coal production to steel producers. Met
coal, which is converted to coke, is a critical input in the steel production
process. Met coal is both consumed domestically in the countries where it is
produced and exported by several of the largest producing countries, such as
China, Australia, the United States, Canada and Russia. Therefore, demand for
our coal will be highly correlated to conditions in the global steelmaking
industry. The steelmaking industry's demand for met coal is affected by a number
of factors, including the cyclical nature of that industry's business,
technological developments in the steelmaking process and the availability of
substitutes for steel such as aluminum, composites and plastics. A significant
reduction in the demand for steel products would reduce the demand for met coal,
which would have a material adverse effect upon our business. Similarly, if
alternative ingredients are used in substitution for met coal in the integrated
steel mill process, the demand for met coal would materially decrease, which
could also materially adversely affect demand for our met coal.
The global steelmaking industry's demand for met coal is also affected by
pandemics, epidemics or other public health emergencies, such as the recent
outbreak of the novel coronavirus disease 2019 ("COVID-19"), which has spread
from China to many other countries including the United States. In March 2020,
the World Health Organization ("WHO") declared COVID-19 as a pandemic, and the
President of the United States declared the COVID-19 outbreak a national
emergency. The outbreak has resulted in governments around the world
implementing increasingly stringent measures to help control the spread of the
virus, including quarantines, "shelter in place" and "stay at home" orders,
travel restrictions, business curtailments, school closures, and other measures.
In addition, governments and central banks in several parts of the world have
enacted fiscal and monetary stimulus measures to counteract the impacts of
COVID-19.
We are a company operating in a critical infrastructure industry, as defined by
the U.S. Department of Homeland Security. As such, we continue to operate our
mines in a safe manner under the guidelines issued by the Centers for Disease
Control and Prevention and Alabama State Health Department. This includes, among
other things, eliminating business travel, staggering manbuses, cage and shift
start times to allow for social distancing, enhanced disinfectant cleaning at
all locations, maintaining antibacterial supplies at all locations, providing
employees with masks, gloves and other gear, eliminating visitors or vendors on
property without strict screening process and testing the temperature of all
employees.
Notwithstanding our continued operations, COVID-19 has begun to have and may
continue to have further negative impacts on our two operating mines, supply
chain, transportation networks and customers, which may compress our margins,

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and reduce demand for the met coal that we produce, including as a result of
preventative and precautionary measures that we, other businesses and
governments are taking. The COVID-19 outbreak is a widespread public health
crisis that is adversely affecting the economies and financial markets of many
countries, including those of our customers, which are primarily located in
Europe, South America and Asia. Any resulting economic downturn could adversely
affect demand for our met coal and contribute to volatile supply and demand
conditions affecting prices and volumes. The progression of COVID-19 could also
negatively impact our business or results of operations through the temporary
closure of one of our mines, customers or critical suppliers, or the McDuffie
Coal Terminal at the Port of Mobile, Alabama, or a disruption to our rail and
barge carriers, which would delay or prevent deliveries to our customers, among
others.
In addition, the ability of our employees and our suppliers' and customers'
employees to work may be significantly impacted by individuals contracting or
being exposed to COVID-19, or as a result of the control measures noted above,
which may significantly affect the demand for met coal. Our customers may be
directly impacted by business curtailments or weak market conditions and may not
be willing or able to fulfill their contractual obligations or open letters of
credit. We may also experience delays in obtaining letters of credit or
processing letter of credit payments due to the impacts of COVID-19 on foreign
issuing and U.S. intermediary banks. Furthermore, the progression of, and global
response to, the COVID-19 outbreak has begun to cause, and increases the risk
of, further delays in construction activities and equipment deliveries related
to our capital projects, including potential delays in obtaining permits from
government agencies. The extent of such delays and other effects of COVID-19 on
our capital projects, certain of which are outside of our control, is unknown,
but they may impact or delay the timing of anticipated benefits of capital
projects.

In light of the uncertainties regarding the duration of the COVID-19 pandemic
and its overall impact on the Company, its operations and the global economy, we
are withdrawing our full-year 2020 guidance issued on February 19, 2020 at this
time. We are also appropriately adjusting our operational needs, including
managing our expenses, capital expenditures, working capital, liquidity and cash
flows. In addition, as a precautionary measure, we borrowed $70.0 million under
the ABL Facility on March 24, 2020 ( the "ABL Draw") in order to increase the
Company's cash position and preserve financial flexibility. We intend on
retaining the funds in cash to preserve liquidity amid the growing uncertainty
surrounding the COVID-19 outbreak. We also delayed the budgeted $25.0 million
development of Blue Creek until at least July 1, 2020 and temporarily suspended
our Stock Repurchase Program. Our financial approach continues to focus on cash
flow management and protecting the balance sheet in order to strategically move
through this period of uncertainty and mitigate potential long-term impacts to
the business (see Liquidity and Capital Resources below).

On March 27, 2020, the President of the United States signed and enacted into
law the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). The
CARES Act, among other things, provides temporary relief from certain aspects of
the Tax Cuts and Jobs Act of 2017 that had imposed limitations on the
utilization of certain losses, interest expense deductions and alternative
minimum tax ("AMT") credits. The CARES Act also provides opportunities for
businesses to improve their cash flows by obtaining refunds for prior taxable
years and reducing their income and deferring payroll tax liabilities for the
current taxable year. Specifically, Section 2305 of the CARES Act accelerates
the ability to receive refunds of remaining AMT credits for tax years 2019, 2020
and 2021. As a result, we recorded an adjustment of approximately $11.3 million
to reclassify AMT credits from a non-current income tax receivable to a current
income tax receivable as we now expect to receive these refunds this year. We
now expect to receive approximately $24.3 million in 2020 for refunds of AMT
credits. We are continuing to evaluate the impact of the CARES Act on our
business, financial results and disclosures.
How We Evaluate Our Operations
Our primary business, the mining and exporting of met coal for the steel
industry, is conducted in one business segment: mining. All other operations and
results are reported under the "All Other" category as a reconciling item to
consolidated amounts, which includes the business results from our sale of
natural gas extracted as a byproduct from our underground coal mines and
royalties from our leased properties. Our natural gas and royalty businesses do
not meet the criteria in ASC 280, Segment Reporting, to be considered as
operating or reportable segments.
Our management uses a variety of financial and operating metrics to analyze our
performance. These metrics are significant factors in assessing our operating
results and profitability and include: (i) Segment Adjusted EBITDA (as defined
below), a non-GAAP financial measure; (ii) sales volumes and average selling
price, which drive coal sales revenue; (iii) cash cost of sales, a non-GAAP
financial measure; and (iv) Adjusted EBITDA, a non-GAAP financial measure.

                                       20
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                                         For the three months ended
                                                  March 31,
                                          2020                2019
(in thousands)
Segment Adjusted EBITDA              $     69,824       $      187,053
Metric tons sold                            1,646                1,901
Metric tons produced                        1,904                2,084
Gross price realization(1)                     89 %                 98 %

Average selling price per metric ton $ 134.47 $ 194.47 Cash cost of sales per metric ton $ 91.55 $ 95.71 Adjusted EBITDA

$     61,655       $      181,018


(1) For the three months ended March 31, 2020 and 2019, our gross price
realization represents a volume weighted-average calculation of our daily
realized price per ton based on gross sales, which excludes demurrage and other
charges, as a percentage of the Platts Index price.
Segment Adjusted EBITDA
We define Segment Adjusted EBITDA as net income adjusted for other revenues,
cost of other revenues, depreciation and depletion, selling, general and
administrative, loss on early extinguishment of debt, other income and certain
transactions or adjustments that the Chief Executive Officer, our Chief
Operating Decision Maker, does not consider for the purposes of making decisions
to allocate resources among segments or assessing segment performance. Segment
Adjusted EBITDA is used as a supplemental financial measure by management and by
external users of our financial statements, such as investors, industry
analysts, lenders and ratings agencies, to assess:
•            our operating performance as compared to the operating performance
             of other companies in the coal industry, without regard to financing
             methods, historical cost basis or capital structure;

• the ability of our assets to generate sufficient cash flow to pay dividends;




• our ability to incur and service debt and fund capital expenditures; and


•            the viability of acquisitions and other capital expenditure projects
             and the returns on investment of various investment

opportunities.




Sales Volumes, Gross Price Realization and Average Net Selling Price
We evaluate our operations based on the volume of coal we can safely produce and
sell in compliance with regulatory standards, and the prices we receive for our
coal. Our sales volume and sales prices are largely dependent upon the terms of
our annual coal sales contracts, for which prices generally are set on daily
index averages. The volume of coal we sell is also a function of the pricing
environment in the international met coal markets and the amounts of LV and MV
coal that we sell. We evaluate the price we receive for our coal on two primary
metrics: first, our gross price realization and second, our average net selling
price per metric ton.
Our gross price realization represents a volume weighted-average calculation of
our daily realized price per ton based on the blended gross sales of our LV and
MV coal, excluding demurrage and quality specification adjustments, as a
percentage of the Platts Index daily price. Our gross price realizations reflect
the premiums and discounts we achieve on our LV and MV coal versus the Platts
Index price because of the high quality premium products we sell into the export
markets. In addition, the premiums and discounts in a quarter or year can be
impacted by a rising or falling price environment.
On a quarterly basis, our blended gross selling price per metric ton may differ
from the Platts Index price per metric ton, primarily due to our gross sales
price per ton being based on a blended average of gross sales price on our LV
and MV coals as compared to the Platts Index price due to the fact that many of
our met coal supply agreements are based on a variety of indices such as the
Platts Index and the Steel Index and due to the timing of shipments.

                                       21
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Our average net selling price per metric ton represents our coal net sales
revenue divided by total metric tons of coal sold. In addition, our average net
selling price per metric ton is net of the previously mentioned demurrage and
quality specification adjustments.
Cash Cost of Sales
We evaluate our cash cost of sales on a cost per metric ton basis. Cash cost of
sales is based on reported cost of sales and includes items such as freight,
royalties, manpower, fuel and other similar production and sales cost items, and
may be adjusted for other items that, pursuant to accounting principles
generally accepted in the United States ("GAAP"), are classified in the
Condensed Statements of Operations as costs other than cost of sales, but relate
directly to the costs incurred to produce met coal and sell it FOB at the Port
of Mobile, Alabama. Our cash cost of sales per metric ton is calculated as cash
cost of sales divided by the metric tons sold. Cash cost of sales is used as a
supplemental financial measure by management and by external users of our
financial statements, such as investors, industry analysts, lenders and ratings
agencies, to assess:
•            our operating performance as compared to the operating 

performance


             of other companies in the coal industry, without regard to financing
             methods, historical cost basis or capital structure; and


•            the viability of acquisitions and other capital expenditure projects
             and the returns on investment of various investment

opportunities.




We believe that this non-GAAP financial measure provides additional insight into
our operating performance, and reflects how management analyzes our operating
performance and compares that performance against other companies for purposes
of business decision making by excluding the impact of certain items that
management does not believe are indicative of our core operating performance. We
believe that cash cost of sales presents a useful measure of our controllable
costs and our operational results by including all costs incurred to produce met
coal and sell it FOB at the Port of Mobile, Alabama. Period-to-period
comparisons of cash cost of sales are intended to help management identify and
assess additional trends that potentially impact us and that may not be shown
solely by period-to-period comparisons of cost of sales. Cash cost of sales
should not be considered an alternative to cost of sales or any other measure of
financial performance or liquidity presented in accordance with GAAP. Cash cost
of sales excludes some, but not all, items that affect cost of sales, and our
presentation may vary from the presentations of other companies. As a result,
cash cost of sales as presented below may not be comparable to similarly titled
measures of other companies.
The following table presents a reconciliation of cash cost of sales to total
cost of sales, the most directly comparable GAAP financial measure, on a
historical basis for each of the periods indicated.
                                         For the three months ended
                                                 March 31,
                                            2020              2019
(in thousands)
Cost of sales                         $     151,514       $  182,628
Asset retirement obligation accretion          (369 )           (373 )
Stock compensation expense                     (449 )           (319 )
Cash cost of sales                    $     150,696       $  181,936




Adjusted EBITDA
We define Adjusted EBITDA as net income before net interest expense, income tax
expense, depreciation and depletion, non-cash stock compensation expense,
non-cash asset retirement obligation accretion, loss on early extinguishment of
debt and other income. Adjusted EBITDA is used as a supplemental financial
measure by management and by external users of our financial statements, such as
investors, industry analysts, lenders and ratings agencies, to assess:
•            our operating performance as compared to the operating performance
             of other companies in the coal industry, without regard to financing
             methods, historical cost basis or capital structure; and


•            the viability of acquisitions and other capital expenditure projects
             and the returns on investment of various investment

opportunities.



                                       22

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We believe that the presentation of Adjusted EBITDA in this report provides
information useful to investors in assessing our financial condition and results
of operations. The GAAP measure most directly comparable to Adjusted EBITDA is
net income. Adjusted EBITDA should not be considered an alternative to net
income or loss or any other measure of financial performance or liquidity
presented in accordance with GAAP. Adjustments exclude some, but not all, items
that affect net loss and our presentation of Adjusted EBITDA may vary from that
presented by other companies.
The following table presents a reconciliation of Adjusted EBITDA to net income,
the most directly comparable GAAP financial measure, on a historical basis for
each of the periods indicated.
                                              For the three months ended
                                                       March 31,
                                                2020               2019
Net income                                $      21,545       $      110,447
Interest expense, net                             7,533                8,592
Income tax expense                                3,241               27,984
Depreciation and depletion                       28,692               22,233
Asset retirement obligation accretion (1)           733                  

812


Stock compensation expense (2)                    1,733                

1,194


Loss on early extinguishment of debt (3)              -                9,756
Other income(4)                                  (1,822 )                  -
Adjusted EBITDA                           $      61,655       $      181,018

(1) Represents non-cash accretion expense associated with our asset retirement


      obligations.


(2)   Represents non-cash stock compensation expense associated with equity
      awards.

(3) Represents a loss incurred in connection with the early extinguishment of


      debt (See Note 5 of the "Notes to Condensed Financial Statements" in this
      Form 10-Q).


(4)   Represents settlement proceeds received for the Shared Services Claim and

Hybrid Debt Claim associated with the Walter Canada CCAA (each discussed


      below).




                                       23

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Results of Operations
Three Months Ended March 31, 2020 and 2019
The following table summarizes certain unaudited financial information for the
three months ended March 31, 2020 and 2019.
                                                              For the three months ended
                                                                       March 31,
                                                              % of Total                     % of Total
(in thousands)                                   2020          Revenues         2019          Revenues
Revenues:
Sales                                         $ 221,338        97.6  %       $ 369,681        97.7  %
Other revenues                                    5,382         2.4  %           8,609         2.3  %
Total revenues                                  226,720       100.0  %         378,290       100.0  %
Costs and expenses:
Cost of sales (exclusive of items shown
separately below)                               151,514        66.8  %         182,628        48.3  %
Cost of other revenues (exclusive of items
shown separately below)                           7,561         3.3  %           7,745         2.0  %
Depreciation and depletion                       28,692        12.7  %          22,233         5.9  %
Selling, general and administrative               8,456         3.7  %           8,905         2.4  %
Total costs and expenses                        196,223        86.5  %         221,511        58.6  %
Operating income                                 30,497        13.5  %         156,779        41.4  %
Interest expense, net                            (7,533 )      (3.3 )%          (8,592 )      (2.3 )%
Loss on early extinguishment of debt                  -           -  %          (9,756 )      (2.6 )%
Other income                                      1,822         0.8  %               -           -  %
Income before income taxes                       24,786        10.9  %         138,431        36.6  %
Income tax expense                                3,241         1.4  %          27,984         7.4  %
Net income                                    $  21,545         9.5  %       $ 110,447        29.2  %

Sales and cost of sales components on a per unit basis for the three months ended March 31, 2020 and 2019 were as follows:


                                         For the three months ended
                                                  March 31,
                                           2020               2019
Met Coal (metric tons in thousands)
Metric tons sold                             1,646               1,901
Metric tons produced                         1,904               2,084
Gross price realization(1)                      89 %                98 %

Average selling price per metric ton $ 134.47 $ 194.47 Cash cost of sales per metric ton $ 91.55 $ 95.71




(1) For the three months ended March 31, 2020 and 2019, our gross price
realization represents a volume weighted-average calculation of our daily
realized price per ton based on gross sales, which excludes demurrage and other
charges, as a percentage of the Platts Index price.
Sales for the three months ended March 31, 2020 were $221.3 million compared to
$369.7 million for the three months ended March 31, 2019. The $148.3 million
decrease in revenues was primarily driven by a $98.9 million decrease in
revenues related to a $60.00 decrease in the average selling price per metric
ton of met coal, combined with a $49.6 million decrease in revenues due to a 255
thousand metric ton decrease in met coal sales volume.

                                       24
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For the three months ended March 31, 2020, our geographic customer mix was 54%
in Europe, 26% in South America and 20% in Asia. For the three months ended
March 31, 2019, our geographic customer mix was 49% in Europe and 27% in Asia
and 24% in South America. Our geographic customer mix typically varies each
period based on the timing of customer orders and shipments. There were no
significant changes in our customer base for the three months ended March 31,
2020.
Other revenues for the three months ended March 31, 2020 were $5.4 million
compared to $8.6 million for the three months ended March 31, 2019. Other
revenues are comprised of revenue derived from our natural gas operations, gains
on sales and disposals of property, plant and equipment and land, as well as
earned royalty revenue. The $3.2 million decrease in other revenues is primarily
due to a decrease in average gas selling prices. Cost of other revenues for the
period was consistent with the prior year period.
Cost of sales (exclusive of items shown separately below) was $151.5 million, or
66.8% of total revenues, for the three months ended March 31, 2020, compared to
$182.6 million, or 48.3% of total revenues for the three months ended March 31,
2019. The $31.1 million decrease is primarily driven by a $24.4 million decrease
due to a 255 thousand metric ton decrease in met coal sales volumes combined
with a $6.6 million decrease due to a $4.16 decrease in average cash cost of
sales per metric ton.
Depreciation and depletion was $28.7 million, or 12.7% of total revenues, for
the three months ended March 31, 2020, compared to $22.2 million, or 5.9% for
the three months ended March 31, 2019. The $6.5 million increase in depreciation
and depletion is driven by an increase in depreciable assets.
Selling, general and administrative expenses were $8.5 million, or 3.7% of total
revenues, for the three months ended March 31, 2020, compared to $8.9 million,
or 2.4% of total revenues, for the three months ended March 31, 2019. Selling,
general and administrative expenses for the period was consistent with the prior
year period.
Interest expense, net was $7.5 million, or 3.3% of total revenues, for the three
months ended March 31, 2020, compared to $8.6 million, or 2.3% of total
revenues, for the three months ended March 31, 2019. The $1.1 million decrease
is driven by the retirement of debt of $131.6 million in the first quarter of
2019. Interest expense, net is comprised of interest on our Notes (as defined
below) and ABL Facility and the amortization of debt issuance costs, offset
partially by earned interest income.

For the three months ended March 31, 2019, we recognized a loss on early
extinguishment of debt of $9.8 million upon the extinguishment of $131.6 million
of our Notes (as defined below). The loss on early extinguishment of debt
represents a premium paid to retire the debt, accelerated amortization of debt
discount, net, and fees incurred in connection with the transaction.
Other income was $1.8 million, or 0.8% of total revenues, for the three months
ended March 31, 2020. On July 15, 2015, Walter Energy, Inc. ("Walter Energy")
and certain of its wholly owned U.S. subsidiaries, including Jim Walter
Resources, Inc. ("JWR") filed voluntary petitions for relief under Chapter 11 of
Title 11 of the U.S. Bankruptcy Code (the "Chapter 11 Cases") in the Northern
District of Alabama, Southern Division. On December 7, 2015, Walter Energy
Canada Holdings, Inc., Walter Canadian Coal Partnership and their Canadian
affiliates (collectively "Walter Canada") applied for and were granted
protection under the Companies' Creditors Arrangement Act (the "CCAA") pursuant
to an Initial Order of the Supreme Court of British Columbia.
In connection with our acquisition of certain core operating assets of Walter
Energy, we acquired a receivable owed to Walter Energy by Walter Canada for
certain shared services provided by Walter Energy to Walter Canada (the "Shared
Services Claim") and a receivable for unpaid interest owed to Walter Energy from
Walter Canada in respect of a promissory note (the "Hybrid Debt Claim").  Each
of these claims were asserted by us in the Walter Canada CCAA proceedings.
Walter Energy deemed these receivables to be impaired for the year ended
December 31, 2015 and we did not assign any value to these receivables in
acquisition accounting as collectability was deemed remote.  In March 2020, we
received an additional $1.8 million in settlement proceeds for the Shared
Services Claim and Hybrid Debt Claim which is reflected as other income in the
Condensed Statement of Operations.  These settlement proceeds are in addition to
the $22.8 million received in 2019. The collectability of additional amounts, if
any, related to the Shared Services Claim and Hybrid Debt Claim depends on the
outcome of, and the timing of any resolution of, the Walter Canada CCAA
proceedings and cannot be predicted with certainty.
For the three months ended March 31, 2020, we utilized a discrete period method
to calculate taxes, as we do not believe that the annual effective tax rate
method represents a reliable estimate given the current uncertainty surrounding
the recent outbreak of COVID-19 and its impact on our annual guidance. For the
three months ended March 31, 2020, we

                                       25
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recognized income tax expense of $3.2 million which was principally offset by the utilization of NOLs for cash tax purposes. For the three months ended March 31, 2019, we recognized income tax expense of $28.0 million.



On March 27, 2020, the President of the United States signed and enacted into
law the CARES Act. The CARES Act, among other things, provides temporary relief
from certain aspects of the Tax Cuts and Jobs Act of 2017 that had imposed
limitations on the utilization of certain losses, interest expense deductions
and AMT credits. The CARES Act also provides opportunities for businesses to
improve their cash flows by obtaining refunds for prior taxable years and
reducing their income and deferring payroll tax liabilities for the current
taxable year. Specifically, Section 2305 of the CARES Act accelerates the
ability to receive refunds of remaining AMT credits for tax years 2019, 2020 and
2021. As a result, we recorded an adjustment of approximately $11.3 million to
reclassify AMT credits from a non-current income tax receivable to a current
income tax receivable as we now expect to receive these refunds this year. We
now expect to receive approximately $24.3 million in 2020 for refunds of AMT
credits. We are continuing to evaluate the impact of the CARES Act on our
business, financial results and disclosures.

Liquidity and Capital Resources
Overview
Our sources of cash have been met coal and natural gas sales to customers,
proceeds received from the issuance of the Notes (as defined below) and access
to our ABL Facility. Historically, our primary uses of cash have been for
funding the operations of our met coal and natural gas production operations,
our capital expenditures, our reclamation obligations, payment of principal and
interest on our Notes, professional fees and other non-recurring transaction
expenses. In addition, we have used available cash on hand to repurchase shares
of our common stock, pay quarterly dividends, and pay special dividends, each of
which reduces cash and cash equivalents.
Going forward, we will use cash to fund debt service payments on our Notes, the
ABL Facility and our other indebtedness, to fund operating activities, working
capital, capital expenditures, and strategic investments, and, if declared, to
pay our quarterly and/or special dividends. Our ability to fund our capital
needs going forward will depend on our ongoing ability to generate cash from
operations and borrowing availability under the ABL Facility, and, in the case
of any future strategic investments, capital expenditures, or special dividends
financed partially or wholly with debt financing, our ability to access the
capital markets to raise additional capital.
Our ability to generate positive cash flow from operations in the future will
be, at least in part, dependent on continued stable global economic conditions.
In March 2020, the WHO declared the outbreak of COVID-19 as a global pandemic.
There is significant uncertainty as to the effects of this pandemic on the
global economy, which in turn may, among other things, impact our ability to
generate positive cash flows from operations, fund capital expenditure needs and
successfully execute and fund key initiatives, such as the development of Blue
Creek. As events relating to COVID-19 continue to develop globally and impact
the capital markets, our liquidity could also be adversely impacted due to
possible deterioration in our customers' financial condition and their ability
to timely pay outstanding receivables owed to us.
Our available liquidity as of March 31, 2020 was $302.8 million, consisting of
cash and cash equivalents of $256.7 million and $46.1 million available under
our ABL Facility. As of March 31, 2020, there was $70.0 million outstanding
under the ABL Facility, with $46.1 million available, net of outstanding letters
of credit of $8.9 million. For the three months ended March 31, 2020, cash flows
provided by operating activities were $21.0 million, cash flows used in
investing activities were $20.2 million and cash flows provided by financing
activities were $62.6 million.
We believe that our future cash flows from operations, together with cash on our
balance sheet and proceeds from the ABL Draw, will provide adequate resources to
fund our debt service payments and planned operating and capital expenditure
needs for at least the next twelve months. However, as the impact of the
COVID-19 pandemic on the economy and our operations evolves, we will continue to
assess our liquidity needs. A continued worldwide disruption could materially
affect our future access to our sources of liquidity, particularly our cash
flows from operations, financial condition, capitalization and capital
investments. In the event of a sustained market deterioration, we may need
additional liquidity, which would require us to evaluate available alternatives
and take appropriate actions.
If our cash flows from operations are less than we require, we may need to incur
additional debt or issue additional equity. From time to time we may need to
access the long-term and short-term capital markets to obtain financing. Our
access to, and the availability of, financing on acceptable terms and conditions
in the future will be affected by many factors, including: (i) our credit
ratings, (ii) the liquidity of the overall capital markets, (iii) the current
state of the global economy and

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(iv) restrictions in our ABL Facility, the Indenture (as defined below), and any
other existing or future debt agreements. There can be no assurance that we will
have or continue to have access to the capital markets on terms acceptable to us
or at all.
Statements of Cash Flows
Cash balances were $256.7 million and $193.4 million at March 31, 2020 and
December 31, 2019, respectively.
The following table sets forth, a summary of the net cash provided by (used in)
operating, investing and financing activities for the period (in thousands):

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