ALLIANCE RESOURCE PARTNERS LP

Previous wording

We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States. Our strategy is to provide our customers with reliable, baseload fuel for electricity generation to meet load expectations. The primary focus of our business is to maximize the value of our existing mineral assets, both in the production of coal from our mining assets and the leasing and development of our coal and oil & gas mineral ownership. In addition, we continue to position ourselves as a reliable energy provider for the future as we pursue opportunities that support the growth and development of energy and related infrastructure. We intend to pursue strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments. We believe that our diverse and rich resource base and strategic investments will allow us to continue to create long-term value for unitholders.

Current wording

We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests located in key producing regions across the United States. Our core objective is to maximize the value of our mineral asset base—both through coal production from our mining operations and through the leasing and development of our coal and oil & gas mineral interests. Our strategy is to provide reliable, baseload fuel for electricity generating customers while positioning the Partnership for long-term growth through investments in energy and related infrastructure. Leveraging our relationships with electric utilities, industrial customers, and government partners, we intend to pursue strategic opportunities that complement our operational strengths. We believe our diverse resource portfolio and targeted investments will continue to create long-term value for our unitholders.

Previous wording

We are the second largest coal producer in the eastern United States with seven operating underground mining complexes near many of the major eastern utility generating plants and on major coal hauling railroads in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia, as well as a coal-loading terminal in Indiana. Two of our mines also have loading facilities located on the Ohio River.

Current wording

We are the second largest coal producer in the eastern United States and as of December 31, 2025, we operated seven underground mining complexes across Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia and a coal-loading terminal on the Ohio River in Indiana. We manage and report our coal operations under two regions, Illinois Basin and Appalachia. We market our coal production to major domestic and international utilities and industrial customers.

Previous wording

In addition to our mining operations, Alliance Resource Properties owns or leases substantially all of our coal mineral resources and the majority of our coal mineral reserves in the Illinois and Appalachia Basins that are (a) leased to our internal mining complexes or (b) near our coal mining operations but not yet leased.

Current wording

We also hold coal mineral reserves and resources in Illinois, Indiana, Kentucky, Pennsylvania and West Virginia. Substantially all of our coal mineral resources and a majority of our coal mineral reserves are owned or leased by Alliance Resource Properties, which are (a) leased or subleased to our mining complexes or (b) near other internal and external coal mining operations but not yet leased. We generate intercompany royalty income through the leasing and development of our coal mineral reserves and resources.

Previous wording

Total revenues decreased 4.6% to $2.45 billion in 2024 compared to $2.57 billion in 2023 primarily due to lower coal sales and transportation revenues, partially offset by higher other revenues.

Current wording

Total revenues decreased 10.4% to $2.19 billion in 2025 compared to $2.45 billion 2024 primarily due to lower coal sales pricing and transportation revenues.

Previous wording

Segment Adjusted EBITDA Expense increased 8.9% to $1.53 billion primarily related to our coal operations which increased 8.0% to $1.50 billion, as a result of higher per ton costs, partially offset by lower coal sales volumes. Segment Adjusted EBITDA Expense per ton sold for our coal operations increased 11.6% to $45.07 per ton sold in 2024 compared to $40.38 per ton in 2023, primarily due to certain cost increases, which are discussed below by category:

Current wording

Segment Adjusted EBITDA Expense decreased 9.1% to $1.39 billion in 2025 primarily related to our coal operations which decreased 9.3% to $1.36 billion, as a result of lower per ton costs and sales volumes. Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 8.4% to $41.29 per ton sold in 2025 compared to $45.07 per ton in 2024, primarily due to an increased sales mix of tons from lower cost operations, higher recoveries from several mines and fewer longwall move days at our Hamilton operation as well as the following per ton cost decreases:

Previous wording

Depreciation, depletion and amortization expense increased to $285.4 million for 2024 compared to $268.0 million for 2023 primarily due to increased sales of higher depreciation cost tons at our Tunnel Ridge mine as a result of lower production volumes at the mine in 2024.

Current wording

Depreciation, depletion and amortization expense increased to $299.4 million in 2025 compared to $285.4 million in 2024 primarily as a result of recent capital investments at our River View and Tunnel Ridge mines.

Previous wording

During 2024, we recorded $31.1 million of non-cash asset impairment charges as a result of our decision to reduce production at our MC Mining operation due to market uncertainty, challenging geology and higher costs. Please read “Item 8. Financial Statements and Supplementary Data—Note 9 – Long-Lived Asset Impairments.”

Current wording

During 2024, we recorded $31.1 million of non-cash asset impairment charges as a result of our decision to reduce production at our MC Mining operation due to market uncertainty, challenging geology and higher costs. Please read “Item 8. Financial Statements and Supplementary Data—Note 9 – Long-Lived Asset Impairments” for more information.

Previous wording

Net income attributable to ARLP for 2024 was $360.9 million, or $2.77 per basic and diluted limited partner unit, compared to $630.1 million, or $4.81 per basic and diluted limited partner unit, for 2023 as a result of lower revenues, increased operating expenses and a $31.1 million non-cash impairment charge, partially offset by a $22.4 million increase in the fair value of our digital assets.

Current wording

Net income attributable to ARLP for 2025 was $311.2 million, or $2.40 per basic and diluted limited partner unit, compared to $360.9 million, or $2.77 per basic and diluted limited partner unit, for 2024 as a result of lower revenues and

Previous wording

Our 2024 Segment Adjusted EBITDA decreased $215.7 million, or 21.3%, to $796.5 million from 2023 Segment Adjusted EBITDA of $1.01 billion.

Current wording

Our 2025 Segment Adjusted EBITDA decreased $14.6 million, or 1.8%, to $781.9 million from 2024 Segment Adjusted EBITDA of $796.5 million.

Previous wording

Appalachia Coal Operations – Segment Adjusted EBITDA decreased 50.4% to $164.1 million for 2024 from $330.7 million in 2023. The decrease of $166.6 million was primarily attributable to lower coal sales, which decreased 15.7% to $712.7 million in 2024 from $845.3 million in 2023, and higher operating expenses. The decrease in coal sales reflects lower sales volumes and prices. Coal sales volumes decreased by 12.2% compared to 2023 primarily due to reduced production at our Tunnel Ridge operation as a result of lower demand and challenging mining conditions. Average coal sales prices decreased by 4.0% compared to 2023 as a result of lower export price realizations from our Mettiki and MC Mining operations. Segment Adjusted EBITDA Expense increased 6.8% to $551.7 million in 2024 from $516.5 million in 2023 due to higher operating expenses per ton, partially offset by lower sales volumes. Segment Adjusted EBITDA Expense per ton for 2024 increased by 21.7% compared to 2023 due to reduced production as a result of challenging mining conditions that lowered recoveries and increased costs related to labor, roof control, outside expenses, and maintenance during 2024.

Current wording

transition to a new longwall district. Average coal sales price per ton decreased by 1.8% compared to 2024 primarily due to reduced domestic pricing from our Tunnel Ridge and MC Mining operations and lower export price realizations from MC Mining and Mettiki, partially offset by a greater mix of higher priced sales tons from the MC Mining and Mettiki operations during 2025. Segment Adjusted EBITDA Expense decreased 16.7% to $459.4 million in 2025 from $551.7 million in 2024 due to reduced volumes and lower per ton operating expenses. Segment Adjusted EBITDA Expense per ton for 2025 decreased by 1.3% compared to 2024 due to higher recoveries at the Mettiki and MC Mining operations.

Previous wording

Oil & Gas Royalties – Segment Adjusted EBITDA decreased to $117.0 million for 2024 from $121.5 million in 2023. The decrease of $4.5 million was primarily due to lower average sales price per BOE, which decreased 8.4% to $40.65 per BOE, partially offset by increased volumes in 2024, which increased by 9.6%, and increased expenses. Higher BOE volumes during 2024 resulted from increased drilling and completion activities on our properties and additional volumes from oil & gas mineral interest acquisitions.

Current wording

Oil & Gas Royalties – Segment Adjusted EBITDA increased slightly to $117.5 million for 2025 from $117.0 million in 2024. The increase was primarily due to increased volumes in 2025, which increased by 7.2%, higher other revenues and lower expenses, partially offset by lower average sales price per BOE, which decreased 7.0% to $37.79 per BOE. Higher BOE volumes during 2025 resulted from increased drilling and completion activities on our properties and additional volumes from oil & gas mineral interest acquisitions.

Previous wording

Coal Royalties – Segment Adjusted EBITDA increased 6.8% to $44.0 million for 2024 from $41.2 million in 2023. The $2.8 million increase was a result of increased royalty tons sold and higher average royalty rates per ton.

Current wording

Coal Royalties – Segment Adjusted EBITDA increased 20.2% to $52.9 million for 2025 from $44.0 million in 2024. The $8.9 million increase was a result of increased royalty tons sold and higher average royalty rates per ton.

Previous wording

provided from the issuance of debt or equity will be sufficient to meet our working capital requirements, capital expenditures and additional investments, debt payments, contractual obligations, commitments and distribution payments. Nevertheless, our ability to satisfy our working capital requirements and additional investments, to satisfy our contractual obligations, to fund planned capital expenditures, to service our debt obligations or to pay distributions will depend upon our future operating performance and access to and cost of financing sources, which will be affected by prevailing economic conditions generally, and in both the coal and oil & gas industries specifically, as well as other financial and business factors, some of which are beyond our control. Based on our recent operating cash flow results, current cash position, anticipated future cash flows and sources of financing that we expect to have available, we anticipate being in compliance with the covenants of the Credit Agreement and expect to have sufficient liquidity to fund our operations and growth strategies. However, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, future covenant compliance or liquidity may be adversely affected. Please see “Item 1A. Risk Factors.”

Current wording

We have historically satisfied our working capital requirements and funded our capital expenditures, investments, contractual obligations and debt service obligations with cash generated from operations, cash provided by the issuance of debt or equity, borrowings under credit and securitization facilities and other financing transactions. We believe that existing cash balances, consisting of cash and cash equivalents of $71.2 million at December 31, 2025, future cash flows from operations and investments, borrowings under credit facilities and cash provided from the issuance of debt or equity will be sufficient to meet our working capital requirements, capital expenditures and additional investments, debt payments, contractual obligations, commitments and distribution payments. Nevertheless, our ability to satisfy our working capital requirements and additional investments, to satisfy our contractual obligations, to fund planned capital expenditures, to service our debt obligations or to pay distributions will depend upon our future operating performance and access to and cost of financing sources, which will be affected by prevailing economic conditions generally, and in both the coal and oil & gas industries specifically, as well as other financial and business factors, some of which are beyond our control. Based on our recent operating cash flow results, current cash position, anticipated future cash flows and sources of financing that we expect to have available, we anticipate being in compliance with the covenants of the Credit Agreement and expect to have sufficient liquidity to fund our operations and growth strategies. However, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, future covenant compliance or liquidity may be adversely affected. Please see “Item 1A. Risk Factors.”

Previous wording

In January 2025, we extended the term of the Securitization Facility to January 2026 and decreased the borrowing availability under the facility to $75.0 million. For additional information on the Securitization Facility please read “Item 8. Financial Statements and Supplementary Data—Note 12 – Long-Term Debt”.

Current wording

In January 2026, we extended the term of our $75.0 million Securitization Facility to January 2027. For additional information on the Securitization Facility please read “Item 8. Financial Statements and Supplementary Data—Note 12 – Long-Term Debt”.

Previous wording

Cash provided by operating activities was $803.1 million for 2024 compared to $824.2 million for 2023. The decrease in cash provided by operating activities was primarily due to the decrease in net income adjusted for non-cash items and

Current wording

Cash provided by operating activities was $651.1 million for 2025 compared to $803.1 million for 2024. The decrease in cash provided by operating activities was primarily due to the decrease in net income adjusted for non-cash items and unfavorable working capital changes primarily related to trade receivables and other miscellaneous changes. These decreases were partially offset by favorable working capital changes primarily related to accounts payable, other receivables, and accrued payroll and related benefits.

Previous wording

Net cash used in investing activities was $440.7 million for 2024 compared to $553.3 million for 2023. The decrease in cash used in investing activities was primarily due to acquisitions of oil & gas reserves including the JC Resources Acquisition and purchase of investments in 2023 as well as an increase in accounts payable and accrued liabilities for property, plant and equipment. These decreases were partially offset by increased capital expenditures during 2024. See “Item 8. Financial Statements and Supplementary Data—Note 4 – Acquisitions” for more information on the Belvedere, Jase, JC Resources and Skyland Acquisitions.

Current wording

Net cash used in investing activities was $331.3 million for 2025 compared to $440.7 million for 2024. The decrease in cash used in investing activities was primarily due to the decrease in capital expenditures and a decrease in oil & gas reserve acquisitions in 2025 as compared to 2024. This decrease was partially offset by increased contributions to equity method investments, changes in accounts payable and accrued liabilities and the purchase of equity securities during 2025.

Previous wording

Net cash used in financing activities was $285.3 million for 2024 compared to $507.1 million for 2023. The decrease in cash used in financing activities was primarily attributable to the issuance of our 8.625% Senior Notes due 2029, borrowings under our February 2024 Equipment Financing and the purchase of units under our repurchase program in 2023. These decreases were partially offset by the redemption of our remaining 7.5% Senior Notes due 2025 and cash settlement of grants under our deferred compensation plans.

Current wording

Net cash used in financing activities was $385.7 million for 2025 compared to $285.3 million for 2024. The increase in cash used in financing activities was primarily attributable to proceeds from the issuance of our 2029 Senior Notes and from an equipment financing in 2024. These increases were partially offset by reduced payments on long-term debt, reduced distributions paid to partners in 2025 and the payment for cash settlement of grants under deferred compensation plans in 2024.

Previous wording

We currently estimate our 2025 annual cash requirements, including capital expenditures, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers’ compensation and pneumoconiosis, to be in a range of $519.0 million to $554.0 million. Management anticipates having sufficient cash flow to meet 2024 cash requirements with our December 31, 2024 cash and cash equivalents of $137.0 million and cash flows from operations, or borrowings under revolving credit and securitization facilities or other sources of financing that we expect to have available if necessary. We currently project average estimated annual maintenance capital expenditures over the next five years of approximately $7.28 per ton produced. For additional information on our future cash requirements other than capital expenditures, please see “Item 8. Financial Statements and Supplementary Data—Note 12 – Long-Term Debt,” “—Note 11 – Leases,” “—Note 14 – Employee Benefit Plans,” “—Note 15 – Asset Retirement Obligations,” “—Note 13 – Accrued Workers’ Compensation and Pneumoconiosis Benefits” and “—Note 16 – Commitments and Contingencies.” We will continue to have significant cash requirements over the long term, which may require us to incur debt or seek additional equity capital. The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations.

Current wording

For 2026, we are targeting total capital expenditures between $280 million and $300 million. We project average estimated annual maintenance capital expenditures over the next five years of approximately $7.23 per ton produced.

Previous wording

We account for business acquisitions using the purchase method of accounting. See “Item 8. Financial Statements and Supplementary Data—Note 4 – Acquisitions” for more information on the Belvedere, Jase and Skyland Acquisitions. Assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess purchase price over the fair value of net assets acquired, if any, is recorded as goodwill. Given the time it takes to obtain pertinent information to finalize the acquired business’ balance sheet, it may be several quarters before we are able to finalize those initial fair value estimates. Accordingly, it is not uncommon for the initial estimates to be subsequently revised. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.

Current wording

We account for business acquisitions using the purchase method of accounting. See “Item 8. Financial Statements and Supplementary Data—Note 4 – Acquisitions” for more information on the Skyland and Elk Range Acquisitions. Assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess purchase price over the fair value of net assets acquired, if any, is recorded as goodwill. Given the time it takes to obtain pertinent information to finalize the acquired business’ balance sheet, it may be several quarters before we are able to finalize those initial fair value estimates. Accordingly, it is not uncommon for the initial estimates to be subsequently revised. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.

Previous wording

For the Belvedere, Jase and Skyland Acquisitions, we determined a fair value for the acquired mineral interests using an income approach consisting of discounted cash flow models. The assumptions used in the discounted cash flow models included estimated production, projected cash flows, forward oil & gas prices and risk adjusted discount rates.

Current wording

For the Skyland and Elk Range Acquisitions, we determined a fair value for the acquired mineral interests using an income approach consisting of discounted cash flow models. The assumptions used in the discounted cash flow models included estimated production, projected cash flows, forward oil & gas prices and risk adjusted discount rates.

Previous wording

Estimates of future commodity prices utilized in our impairment analyses consider market information including published forward oil & gas prices. The forecasted price information used in our impairment analyses is consistent with that generally used in evaluating third-party operator drilling decisions and our expected acquisition plans, if any. Prices for future periods will impact the production economics underlying oil & gas reserve estimates. In addition, changes in the price of oil & gas also impact certain costs associated with our expected underlying production and future capital costs.

Current wording

Estimates of future commodity prices utilized in our impairment analyses consider market information including published forward oil & gas prices. The forecasted price information used in our impairment analyses is consistent with that generally used in evaluating third-party operator drilling decisions and our expected acquisition plans, if any. Prices for future periods will impact the production economics underlying oil & gas reserve estimates. In addition, changes in the price of oil & gas also impact certain costs associated with our expected underlying production and future capital costs. The prices of oil & gas are volatile and change from period to period, thus are expected to impact our estimates. Significant

Previous wording

The prices of oil & gas are volatile and change from period to period, thus are expected to impact our estimates. Significant unfavorable changes in the estimated future commodity prices could result in an impairment of our oil & gas mineral interests.

Current wording

unfavorable changes in the estimated future commodity prices could result in an impairment of our oil & gas mineral interests.

Previous wording

We provide income replacement and medical treatment for work-related traumatic injury claims as required by applicable state laws. We generally provide for these claims through self-insurance programs. Workers’ compensation laws also compensate survivors of workers who suffer employment related deaths. Our liability for traumatic injury claims is the estimated present value of current workers’ compensation benefits, based on our actuary estimates. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates. See “Item 8. Financial Statements and Supplementary Data—Note 13 – Accrued Workers’ Compensation and Pneumoconiosis Benefits” for additional discussion. We had accrued liabilities for workers’ compensation of $47.9 million and $48.0 million for these costs at December 31, 2024 and 2023, respectively. A one-percentage-point reduction in the discount rate would have increased operating expense by approximately $2.1 million for the year ended December 31, 2024. We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a particular claim year have been met. Our receivables for traumatic injury claims under this policy as of December 31, 2024 and 2023 were $3.7 million and $4.1 million, respectively.

Current wording

We provide income replacement and medical treatment for work-related traumatic injury claims as required by applicable state laws. We generally provide for these claims through self-insurance programs. Workers’ compensation laws also compensate survivors of workers who suffer employment related deaths. Our liability for traumatic injury claims is the estimated present value of current workers’ compensation benefits, based on our actuary estimates. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claim development patterns, mortality, medical costs and interest rates. See “Item 8. Financial Statements and Supplementary Data—Note 13 – Accrued Workers’ Compensation and Pneumoconiosis Benefits” for additional discussion. We had accrued liabilities for workers’ compensation of $49.4 million and $47.9 million for these costs at December 31, 2025 and 2024, respectively. A one-percentage-point reduction in the discount rate would have increased operating expense by approximately $2.1 million for the year ended December 31, 2025. We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a particular claim year have been met. Our receivables for traumatic injury claims under this policy as of December 31, 2025 and 2024 were $4.1 million and $3.7 million, respectively.

Previous wording

Coal mining companies are subject to FMSHA and various state statutes for the payment of medical and disability benefits to eligible recipients related to coal worker’s pneumoconiosis, or black lung. We provide for these claims through self-insurance programs. Our pneumoconiosis benefits liability is calculated using the service cost method based on the actuarial present value of the estimated pneumoconiosis benefits obligation. Our actuarial calculations are based on numerous assumptions including disability incidence, medical costs, mortality, death benefits, dependents and discount rates. We had accrued liabilities of $124.3 million and $132.4 million for the pneumoconiosis benefits at December 31, 2024 and 2023, respectively. A one-percentage-point reduction in the discount rate would have increased the expense recognized for the year ended December 31, 2024 by approximately $2.0 million. Under the service cost method used to estimate our pneumoconiosis benefits liability, actuarial gains or losses attributable to changes in actuarial assumptions, such as the discount rate, are amortized over the remaining service period of active miners.

Current wording

Coal mining companies are subject to FMSHA and various state statutes for the payment of medical and disability benefits to eligible recipients related to coal worker’s pneumoconiosis, or black lung. We provide for these claims through self-insurance programs. Our pneumoconiosis benefits liability is calculated using the service cost method based on the actuarial present value of the estimated pneumoconiosis benefits obligation. Our actuarial calculations are based on numerous assumptions including disability incidence, medical costs, mortality, death benefits, dependents and discount rates. We had accrued liabilities of $105.0 million and $124.3 million for the pneumoconiosis benefits at December 31, 2025 and 2024, respectively. A one-percentage-point reduction in the discount rate would have increased the expense recognized for the year ended December 31, 2025 by approximately $0.8 million. Under the service cost method used to estimate our pneumoconiosis benefits liability, actuarial gains or losses attributable to changes in actuarial assumptions, such as the discount rate, are amortized over the remaining service period of active miners.

Previous wording

SMCRA and similar state statutes require that mined property be restored in accordance with specified standards and an approved reclamation plan. A liability is recorded for the estimated cost of future mine asset retirement and closing procedures on a present value basis when incurred or acquired and a corresponding amount is capitalized by increasing the carrying amount of the related long-lived asset. Those costs relate to permanently sealing portals at underground mines and to reclaiming the final pits and support surface acreage for both our underground mines and past surface mines. Examples of these types of costs, common to both types of mining, include, but are not limited to, removing or covering refuse piles and settling ponds, water treatment obligations, and dismantling preparation plants, other facilities and roadway infrastructure. Accrued liabilities of $158.8 million and $150.4 million for these costs are recorded at December 31, 2024 and 2023, respectively. See “Item 8. Financial Statements and Supplementary Data—Note 15 – Asset Retirement Obligations” for additional information. The liability for asset retirement and closing procedures is sensitive to changes in cost estimates, estimated mine lives and timing of post-mine reclamation activities. As changes in estimates occur (such as mine plan revisions, changes in estimated costs or changes in timing of the performance of reclamation activities), the revisions to the obligation and asset are recognized at the appropriate credit-adjusted, risk-free interest rate.

Current wording

SMCRA and similar state statutes require that mined property be restored in accordance with specified standards and an approved reclamation plan. A liability is recorded for the estimated cost of future mine asset retirement and closing procedures on a present value basis when incurred or acquired and a corresponding amount is capitalized by increasing the carrying amount of the related long-lived asset. Those costs relate to permanently sealing portals at underground mines and to reclaiming the final pits and support surface acreage for both our underground mines and past surface mines. Examples of these types of costs, common to both types of mining, include, but are not limited to, removing or covering refuse piles and settling ponds, water treatment obligations, and dismantling preparation plants, other facilities and roadway infrastructure. Accrued liabilities of $157.6 million and $158.8 million for these costs are recorded at December 31, 2025 and 2024, respectively. See “Item 8. Financial Statements and Supplementary Data—Note 15 – Asset Retirement Obligations” for additional information. The liability for asset retirement and closing procedures is sensitive to changes in cost estimates, estimated mine lives and timing of post-mine reclamation activities. As changes in estimates occur (such as mine plan revisions, changes in estimated costs or changes in timing of the performance of reclamation activities), the revisions to the obligation and asset are recognized at the appropriate credit-adjusted, risk-free interest rate.

Previous wording

On at least an annual basis, we review our entire asset retirement obligation liability and make necessary adjustments for permit changes approved by state authorities, changes in the timing of reclamation activities, and revisions to cost estimates and productivity assumptions, to reflect current experience. Adjustments to the liability associated with these assumptions resulted in a increase of $5.6 million for the year ended December 31, 2024. Adjustments to the liability associated with these assumptions resulted in a decrease of $1.5 million for the year ended December 31, 2023.

Current wording

On at least an annual basis, we review our entire asset retirement obligation liability and make necessary adjustments for permit changes approved by state authorities, changes in the timing of reclamation activities, and revisions to cost estimates and productivity assumptions, to reflect current experience. Adjustments to the liability associated with these assumptions resulted in a decrease of $4.2 million for the year ended December 31, 2025. Adjustments to the liability associated with these assumptions resulted in an increase of $5.6 million for the year ended December 31, 2024.

Previous wording

While the precise amount of these future costs cannot be determined with certainty, we have estimated the costs and timing of future asset retirement obligations escalated for inflation, then discounted and recorded at the present value of those estimates. Discounting resulted in reducing the accrual for asset retirement obligations by $120.1 million and $116.2 million at December 31, 2024 and 2023. We estimate that the aggregate undiscounted cost of final mine closure is approximately $278.9 million and $266.6 million at December 31, 2024 and 2023, respectively. If our assumptions differ from actual experiences, or if changes in the regulatory environment occur, our actual cash expenditures and costs that we incur could be materially different than currently estimated.

Current wording

While the precise amount of these future costs cannot be determined with certainty, we have estimated the costs and timing of future asset retirement obligations escalated for inflation, then discounted and recorded at the present value of those estimates. Discounting resulted in reducing the accrual for asset retirement obligations by $112.3 million and $120.1 million at December 31, 2025 and 2024, respectively. We estimate that the aggregate undiscounted cost of final mine closure is approximately $269.9 million and $278.9 million at December 31, 2025 and 2024, respectively. If our assumptions differ from actual experiences, or if changes in the regulatory environment occur, our actual cash expenditures and costs that we incur could be materially different than currently estimated.

Previous wording

See “Item 8. Financial Statements and Supplementary Data—Note 21 – Related-Party Transactions” for a discussion of our related-party transactions.

Current wording

See “Item 8. Financial Statements and Supplementary Data—Note 21 – Related-Party Transactions” and “Item 13. Certain Relationship and Related Transactions, and Director Independence” for a discussion of our related-party transactions.