Goldman Sachs Global Energy Conference 2010 January 13, 2010 RUNNING RIGHT

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1 Goldman Sachs Global Energy Conference 2010 January 13, 2010

2 Forward Looking Statements Statements in this presentation which are not statements of historical fact are forward-looking statements within the Safe Harbor provision of the Private Securities Litigation Reform Act of Such statements are not guarantees of future performance. Many factors could cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking-statements. These factors are discussed in detail in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in our other filings with the SEC. We make forward-looking statements based on currently available information, and we assume no obligation to update the statements made today or contained in our Annual Report or other filings due to changes in underlying factors, new information, future developments, or otherwise, except as required by law. 2

3 Presentation Overview Market outlook improving across the board Domestic thermal market positioned for 2010 recovery Long-term global fundamentals remain strong Metallurgical market accelerating around the world Alpha Natural Resources investment highlights Enhanced and diversified asset base and operations Strong history of performance Well-positioned in today s market environment Industry leader prepared for future growth Summary: executing according to plan 3

4 Market Outlook Improving

5 Thermal Coal Forecast to Recover Full year 2009 coal consumption estimated to have declined ~10-11 Coal-to-gas switching is estimated to have reduced 2009 coal demand by million tons Recession-driven declines in industrial activity disproportionately impacted coal-fired generation due to concentration of heavy industry in coal-reliant regions Milder-than-normal weather reduced electricity generation in coal-reliant regions Lower levels of U.S. coal exports further decreased demand After an unprecedented decline in U.S. coal consumption in 2009, demand is poised to rebound in 2010 Strong 5-7 increase in U.S. coal consumption forecast by several analysts in 2010 Forward natural gas prices point to a reversal of fuel switching Easy comps and economic recovery lead to forecasts of 2-3 GDP growth in 2010 Return to more normal weather in 2010? Global recovery and weak dollar may drive increasing net exports from the U.S. New coal-fired generation will increase demand New U.S. Coal-fired Generation (GWs) SOURCE: Goldman Sachs, FBR Capital Markets, Macquarie, UBS, Davenport, Simmons, DOE NETL, Internal Analysis 5

6 U.S. Thermal Inventories Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09E Even with projected demand growth in 2010, it will take time to work down currently elevated utility inventories U.S. Utility Stockpiles (mm tons) 5-yr. Avg. ~100MTs of U.S. production has been curtailed on a run-rate basis, but stockpiles have only recently begun to decline If recent analysts forecasts are correct, 2010 demand could increase by 50-70MTs Current inventory levels of approximately MTs suggest that inventories would need to decline by ~40MTs to return to historically normal levels Given current supply and projected demand growth, inventories should normalize in 2H10 SOURCE: Goldman Sachs, Simmons, Energy Information Administration, Internal Analysis 6

7 Global Coal: Long-term, It s All About Asia Global Demand Growth, driven primarily by China, is staggering 10,000 Global Coal Consumption (mm tons) Chinese Net Imports (mm tonnes) 8,000 6,000 4,000 2, E 2015E 2020E 2030E China India US EU Russia Japan Among the countries representing most of the world s coal use, coal consumption is forecast to increase 35 in 20 years ( ) China is forecast to account for over 80 of this growth of more than 2BTs in annual demand, increasing its annual coal consumption by nearly 60 between 2010 and 2030 China s rapid move to net importer is already a well-documented game changer India s coal consumption is forecast to rise nearly 40 between 2010 and 2030 Considering that the U.S., with the world s largest reserves, produces just ~1BTs per year where will the coal come from to satisfy this incremental increase in demand? SOURCE: Energy Information Administration, International Energy Outlook; International Energy Agency, World Energy Outlook; Internal Analysis 7

8 Transformational Changes in Seaborne Trade As Asian Demand Absorbs Seaborne Supply, The Atlantic Basin May Increasingly Rely on U.S. Coals Decreasing trend Increasing trend Spare capacity provides opportunity to ramp exports to meet global demand 8

9 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 China Driving Worldwide Met Coal Demand Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Chinese Growth is Permanently Changing Global Seaborne Met Coal Trading Dynamics Chinese crude steel production increased 12.5 YOY through November, and China now produces nearly half of the world s steel Chinese imports of met coal rose sharply in 2009, exceeding 30M tonnes YTD though November, putting China on pace to have imported nearly 35M tonnes in 2009 Chinese demand will be satisfied primarily by Australia, which is near its current export capacity as evidenced by lengthy vessel queues at Australian ports Availability of seaborne coking coal, which totaled an estimated 240M tons in 2008, will be constrained by the growth of Chinese imports Chinese Crude Steel Production (mm tons) Chinese Net Met Imports (mm tonnes) SOURCE: China s National Bureau of Statistics, Chinese Customs, Macquarie, Internal Analysis 9

10 Met Coal Demand Accelerating Worldwide Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Met Coal Demand in the Atlantic Basin Should Increase As Developed Economies Recover and Steel Production Ramps Up Domestic producers rapid response to the recession drove U.S. service center inventories to 26-yr. lows, despite anemic demand for steel restocking is now necessary U.S. steel production capacity utilization has increased to the range, up from lows in the 30s U.S. service center inventories began to increase in September, the first increase in 12 months The combination of strong Chinese demand and increasing steel capacity utilization in the U.S. and the rest of the world should drive accelerating Atlantic basin met coal demand in 2010 and beyond Service Center Inventories (mm tons) U.S. Steel Capacity Utilization () SOURCE: Metals Service Center Institute, American Iron and Steel Institute, Internal Analysis 10

11 Investment Highlights

12 A Leader in the Domestic Coal Industry Strength, Scale, Diversification Northern Appalachia Production Capacity Shipments 17.9 Reserves 800 Powder River Basin Production Capacity Shipments 49.2 Reserves 760 Illinois Basin Reserves 26 Central Appalachia Production Capacity Shipments 32.1 Reserves 762 Note: Figures pro forma as of 12/31/08. 12

13 Peer Group Comparisons $13.3 Market Capitalization 1 ($ in billions) LTM 9/30/09 Revenue 2 ($ in billions) $9.9 $6.3 $4.6 $5.8 $4.3 $4.0 $3.9 $3.6 $2.9 $2.6 $2.1 $1.7 $0.6 $0.6 $0.5 $1.2 $1.2 $1.1 $0.7 BTU CNX ANR WLT ACI MEE PCX ICO JRCC CLD BTU CNX pro forma ANR MEE ACI PCX CLD WLT ICO JRCC LTM 9/30/09 Tons Sold 2 (in millions) LTM 9/30/09 EBITDA 2 ($ in millions) * Adjusted EBITDA as reported in company documents 252 $1,510 $1, $735 $523 $477 $399 $279 $174 $97 $66 BTU ACI CLD pro forma ANR CNX MEE PCX ICO JRCC WLT BTU CNX pro forma ANR* MEE ACI* WLT CLD ICO JRCC* PCX* Source: Public filings, and company press releases and presentations (1) Market data as of 1/5/10 (2) CLD revenue, tons sold and EBITDA as reported for the 12 months ended 12/31/08 13

14 Diversified National Footprint 2008 Pro Forma Production = 93.0 mt 2008 Pro Forma Coal Sales = 99.2 mt PRB 49.2 mt Geographical diversification smoothes demand variations between regions 2008 Pro Forma Reserves = 2.3 bt PRB 760 mt ILB 26 mt 1 35 Diverse, high quality reserves enhance blending capabilities CAPP 26.8 mt NAPP 17.0 mt NAPP 800 mt CAPP 762 mt Large NAPP/PRB mines complement smaller CAPP mines Steam 85.8 mt 86 Met 13.4 mt Thermal business provides stability to sales portfolio Maintain meaningful upside from met coal 2008 Pro Forma Mining Methodology Mix Surface-West 49.2 mt 53 Most diversified mining portfolio, with 35 underground mines, 24 surface mines and 14 preparation and blending plants Continuous Miner 18.4 mt 15 Long-Wall 13.7 mt Surface-East 11.6 mt 14

15 On Track to Meet or Exceed Synergy Target Annual net synergies conservatively estimated at $45 million at full run-rate anticipated to be achieved by mid-year 2010 Marketing $17-20 Representative examples: Increased Central Appalachian export opportunities through DTA Increased export opportunities through Gulf / New Orleans Increased export opportunities through Baltimore NS steam coal source optimization (cost optimization, freight savings & free-up of potential met coal) Purchasing $11-13 Representative examples: Various mine supplies such as cables, lubes, roof support, tires, belts, filters Volume incentives with primary mine equipment OEMs Diesel and explosives savings Maintenance saving by utilizing Alpha's regional repair facilities Corporate & Administrative $15-17 Representative examples: Insurance and surety savings HR & legal consolidation Recurring cash tax savings Total $43-50 Additional upside possible, primarily driven by additional blending and optimization opportunities depending on future market conditions 15

16 Consistent History of Positive Free Cash Flow Operating Cash Flow ($ in millions) YTD Alpha Pro Forma Capex Alpha Pro Forma FCF Note: Pro forma capex for 2008 and 2009 includes Lease-By-Application (LBA) bonus bid payments of $36.1 million each year. FCF = Operating cash flow less capex. 16

17 Excellent Liquidity and Leverage Position Leverage of approximately 1.2x and liquidity of approximately $1 billion ($ millions) Maturity As of 9/30/09 $650mm Revolving Credit Facility July, 2011 $0 Term Loan A July, Convertible Notes April, Senior Unsecured Bonds August, Other Debt 2 Total Debt $881 Liquidity and Credit Statistics Cash & Equivalents $482 Revolver 650 Additional Accordian Feature Potential 50 Accounts Receivable Securitization Facility 85 Additional Accounts Receivable Securitization Facility Potential 65 Less: Letters of Credit Outstanding (257) Total Potential Liquidity $1,075 Total Debt / LTM EBITDA 1.2x LTM Adjusted EBITDA 1 $735 Note: LTM data as of 9/30/09. (1) LTM combined pro forma Adjusted EBITDA as reported in Form 10-Q for the quarterly period ending September 30,

18 Organic Growth Opportunities Northern Appalachia Mine Resource Description Production Foundation ~ 420 MM Ton Reserve 7 14 MTPY Pitt #8 (+ Sewickley) Freeport ~ 68 MM Ton Reserve 2 3 MTPY (Metallurgical) Central Appalachia Mine Resource Description Production Deep Mine #41 ~ 70 MM Ton Reserve MTPY (Metallurgical) Harts Creek/Atenville ~ 120 MM Ton Reserve 2 3 MTPY Coal Gas Recovery Location Resource Description Production CBM ~ Bcf Resource ~ 5,000 Salable Mcf/Day (current) Marcellus acreage ~ 18,000 Acres TBD Powder River Basin Wyoming Operations Expansion (MM tons/yr) Capacity Phase III ( ) MTPY Belle Ayr LBA 200 Million Tons 2010 Sale 18

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