For the full-year 2009, the Company reported revenues of $2.0 billion, EBITDA of $110.7 million, net income of $127.2 million, and diluted earnings per share of $1.49. In 2008, Patriot reported revenues of $1.7 billion, EBITDA of $44.2 million, net income of $142.7 million and diluted earnings per share of $2.21. Accretion related to shipments on below-market sales and purchase contracts obtained in the Magnum Coal acquisition in July 2008 totaled $66.1 million and $298.6 million, respectively, in the fourth quarter and 2009 year, and $279.4 million in 2008.
"We posted our highest 2009 quarterly EBITDA in the fourth quarter, which represented a solid finish to a challenging year. And for the year we saw EBITDA increase 150 percent versus 2008. Our stronger operating performance, higher revenues and value-added commercial transactions all contributed to the improvements," said Patriot Chief Executive Officer Richard M. Whiting. "Patriot enters the new year with a more seasoned team and more stable operations. As a result, we are positioned to manage near-term challenges and opportunities, and to prosper as coal markets improve."
On Jan. 6, 2010, the Company announced that the U.S. Army Corps of Engineers had finalized its evaluation process and issued the Hobet 45 permit under Section 404 of the Clean Water Act. The Hobet surface mine is part of the Company's Corridor G mining complex in southern West Virginia. At full production capability, the complex produces nearly four million tons of thermal coal annually.
"We are pleased that the Corps of Engineers granted the permit allowing us to continue mining activities at the Hobet mine. We appreciate the diligent efforts of the EPA and the Corps, and we are confident this permit will allow Patriot to continue providing coal for low-cost electricity generation in a manner that reduces any potential impact on the environment," noted Whiting.
Sales in the fourth quarter included 6.7 million tons of thermal and 1.6 million tons of metallurgical coal, an increase from the 6.3 million and 1.5 million tons, respectively, sold in the 2009 third quarter.
For the 2009 year, shipments of 32.8 million tons represented an increase of 4.3 million from the prior year. Revenues in the 2009 fourth quarter were $503.2 million, comparable with revenues of $506.2 million in the 2009 third quarter. Revenues for 2009 increased $390.7 million compared to 2008, primarily due to the inclusion of a full year of Magnum results, partially offset by lower thermal coal volume in 2009. Revenues in the 2009 fourth quarter were $37.9 million lower than the prior year amount, as a result of lower tons sold, partially offset by higher average selling prices.
For 2010, the Company currently anticipates sales volume in the range of 33.0 to 35.0 million tons. This includes metallurgical coal sales of at least 6.5 million tons, representing a meaningful increase over the 5.4 million tons sold in 2009. Additionally, this guidance incorporates the impact of moves at both longwalls in the first quarter of 2010 and extended moves mid-year as both longwalls relocate to new areas within the mines. Based on this expected volume, cost per ton is expected to be in the range of $53.00 to $57.00 for the Appalachia segment and $36.00 to $38.00 for the Illinois Basin segment. These estimated costs per ton compare favorably to $57.13 and $37.30 reported in 2009 for the Appalachia and Illinois Basin segments, respectively.
Patriot Coal Corporation is a leading producer and marketer of coal in the eastern United States, with 14 current mining complexes in Appalachia and the Illinois Basin. The Company ships to domestic and international electric utilities, industrial users and metallurgical coal customers, and controls approximately 1.8 billion tons of proven and probable coal reserves. The Company's common stock trades on the New York Stock Exchange under the symbol PCX.
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