WARRIOR MET COAL, INC.
For the period ended Dec 31, 2025. Filed Feb 12, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 12, 2026
HCC$84.15+4.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-02-13.
0001691303-25-000010
Item 7. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-02-12.
0001193125-26-048914
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 180 previous paragraphs and 178 current paragraphs.
73 unchanged; 77 reworded; 24 added; 28 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Commencement of Blue Creek Longwall
Current report
We commenced longwall operations at the Blue Creek mine in October 2025, eight months ahead of schedule and on budget. The ahead-of-schedule start of Blue Creek's longwall is already having an impact on our production profile, cost structure, and earnings potential heading into 2026. Due to the accelerated startup of the longwall, we produced approximately 1.8 million metric tons in 2025 and expect to produce at a minimum approximately 4.1 to 4.4 million metric tons in 2026.
Current report
We have invested approximately $240.3 million in 2025 and $956.8 million in the Blue Creek, project-to-date. While the longwall operations have recently commenced, there remains a significant amount of surface infrastructure to be completed to finish the overall project. Warrior remains on budget and expects total Blue Creek project capital expenditures of $995 million to $1.075 billion. The remaining amounts are expected to be primarily spent by the end of the first quarter of 2026.
Current report
Finalization of Federal Coal Lease Acquisition
Current report
On November 25, 2025, Warrior Met Coal BC, LLC (“Warrior BC”), a wholly-owned subsidiary of the Company, entered into Federal Coal Lease ALES-056519 at Mine No. 1 (the “Mine No. 1 Lease”) and Warrior Met Coal Mining, LLC (“Warrior Mining”, and together with Warrior BC, the “Companies”), a wholly-owned subsidiary of the Company, entered into Federal Coal Lease ALES-055797 at Mine No. 4 (the “Mine No. 4 Lease”, and, together with the Mine No. 1 Lease, the “Leases”), each with the United States of America through the Bureau of Land Management (the “BLM”) of the United States Department of the Interior.
Current report
The Mine No. 1 Lease covers approximately 8,346 acres and the Mine No. 4 Lease covers approximately 5,704 acres. The BLM estimates the Mine No. 1 Lease tract contains approximately 32.9 million metric tons of recoverable coal reserves, and the Mine No. 4 Lease tract contains approximately 15.3 million metric tons of recoverable coal reserves. Subject to the terms and conditions thereof, the Leases provide the Companies with the exclusive right to drill for, mine, extract, remove or otherwise process and dispose of the coal deposits in, upon, or under the lands described therein. Each Lease has a minimum term of 20 years and for so long thereafter as coal is produced in commercial quantities from the leased lands, subject to readjustment of lease terms at the end of the twentieth lease year and each 10-year period thereafter. Pursuant to each lease, each Company is required to pay customary production royalties of 7% of the value of the coal produced and per acre annual rental payments to the BLM.
Current report
Warrior BC bid approximately $32 million for the Mine No. 1 Lease and has submitted a payment for approximately $6.4 million, which is the first of five equal payments. Warrior Mining bid approximately $15 million for the Mine No. 4 Lease and has submitted a payment for approximately $3.0 million, which is the first of five equal payments. Successive installments are due each year on the anniversary of the Leases for the next four years. These future installments were recorded at a discount using our credit-adjusted risk-free rate and are presented in the Consolidated Balance Sheets as short and long-term federal coal lease obligations. As of December 31, 2025, the present value of the short-term and long-term obligations were $8.8 million and $23.7 million, respectively.
Current report
On January 13, 2026, the U.S. Department of the Interior issued mining plan approval documents for each Lease, thereby authorizing coal development and mining operations on parts of each Lease within the area of mining plan approval.
Current report
Global steelmaking coal markets remained challenged throughout 2025, driven primarily by depressed global steel demand, record‑high Chinese steel exports, and an abundant global supply of steelmaking coal. During the fourth quarter of 2025, pricing for high‑quality steelmaking coal improved slightly, reversing the consistent weakening experienced during the first half of the year. As of February 10, 2026, the Platts Index price for premium LV coal was $251.50 per metric ton, while the Platts Low Vol HCC was $208.60 per metric ton. Seasonal restocking activity and resilient steel production continued to support demand, with India emerging as a significant near‑term driver of import requirements.
Current report
Weather‑related supply constraints—most notably the arrival of Cyclone Koji in Australia in January 2026—contributed to a sharp increase in premium LV coal pricing. According to Wood Mackenzie, this event may result in prolonged operational disruptions due to chronic underinvestment in Queensland’s mining and logistical infrastructure. Despite these temporary supply constraints, we expect the overall pricing environment in 2026 to remain broadly consistent with 2025 levels, reflecting persistent global steel demand weakness, elevated Chinese steel exports, and continued abundance in global steelmaking coal supply.
Current report
The United States government continues to impose a broad range of tariffs on foreign goods imported into the U.S., with certain nations and regions enacting retaliatory tariffs on U.S. exports. Ongoing trade and tariff uncertainty has contributed to lower seaborne coal prices. Any newly implemented tariffs or other trade measures—whether imposed by the U.S. or by trading partners—could reduce economic activity, increase our operating costs, diminish demand for steelmaking coal, alter customer purchasing behaviors, disrupt our supply chain, or materially impact steelmaking coal pricing. These measures could also limit trade with the U.S. or produce other adverse economic outcomes.
Current report
It remains too early to quantify the impact of current or potential tariffs on our consolidated financial statements. We continue to monitor the evolving trade environment and evaluate actions to mitigate potential adverse effects on our business.
Current report
On July 4, 2025, the One, Big, Beautiful Bill Act ("OBBBA") was enacted into law and includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The changes include, among other things, an update to IRC Section 250 Deduction: FDII to Foreign-Derived Deduction Eligible Income ("FDDEI"), which provides for, among other things, a permanent deduction of 33.34% of FDDEI, which reduces the statutory tax rate to 14% of such income. The OBBBA also classified metallurgical coal as a critical mineral eligible for the advanced manufacturing production tax credit under Section 45X (the "45X Credit") of the Internal Revenue Code. The 45X Credit for metallurgical coal provides for a credit of 2.5% of eligible production costs through 2029. Section 50202 of the OBBBA also temporarily decreases the royalty rate for coal leases on federal lands to not more than 7% through 2034. We are currently assessing the impact of the OBBBA on our consolidated financial statements.
Current report
Collective Bargaining Agreement
Current report
We have one reportable segment identified as Mining which consists of Mine No. 4, Mine No. 7 and the Blue Creek mine. We determined that our natural gas and royalty business did not meet the criteria in ASC 280, Segment Reporting, to be considered as a reportable segment. Therefore, we have included their results in an "all other" category as a reconciling item to consolidated amounts.
Current report
Results of Operations
Current report
We delivered strong results for the year ended December 31, 2025 driven by record sales volumes, the commencement of longwall operations at the transformational Blue Creek mine, and continued cost improvements. The ahead-of-schedule start of Blue Creek's longwall in October 2025 is already reshaping Warrior's production profile, cost structure and earnings potential.
Current report
commenced longwall operations at the Blue Creek mine, eight months ahead of schedule and on budget;
Current report
we finalized two federal coal leases with the BLM, which contain approximately 48 million metric tons of reserves, further strengthening the resource base underpinning our strategic growth initiatives;
Current report
we achieved record annual sales volumes of 8.7 million metric tons, a 21% increase compared to the prior year, and record production volumes of 9.3 million metric tons, a 24% increase compared to the prior year, which reflects strong operational performance from the Blue Creek mine as it produced 1.8 million metric tons and we sold 1.4 million metric tons;
Current report
31, 2025. The marginal well credit is a production-based tax credit that provides a credit for qualified natural gas production and is phased out when natural gas prices exceed certain thresholds.
Current report
Consolidated Statements of Cash Flows
Current report
Amended ABL Facility
Current report
On August 28, 2025, Warrior Met Coal, Inc. (the “Company”) entered into that certain First Amendment to Second Amended and Restated Asset-Based Revolving Credit Agreement (the “Amendment”), by and among the Company and certain of its subsidiaries, as borrowers, the guarantors party thereto, the lenders party thereto and Citibank, N.A. as administrative agent, which amends the Company's existing Second Amended and Restated Asset-Based Revolving Credit Agreement (the “credit facility”, and the credit facility as amended by the Amendment, the “Amended ABL Facility”). The Amendment, among other things, (i) increases the aggregate commitments available to be borrowed under the Amended ABL Facility by $27.0 million to $143.0 million; (ii) extends the maturity date of the credit facility to the earlier of (x) August 28, 2030 and (y) 91 days prior to the maturity date of the Company's 7.875% Senior Notes due 2028 (if such notes are still outstanding as of such date); and (iii) amends certain borrowing base calculations and other terms and provisions of the credit facility. As of December 31, 2025, no loans were outstanding under the Amended ABL Facility and there were $2.5 million of letters of credit issued and outstanding under the Amended ABL Facility. At December 31, 2025, we had $140.5 million of availability under the Amended ABL Facility.
Removed paragraphs (28)
Previous report
On May 3, 2022, we announced the relaunch of the development of our Blue Creek mine, a strategic growth project that we expect will deliver significant future returns to stockholders. We believe that Blue Creek represents one of the few remaining untapped reserves of premium High Vol A steelmaking coal in the United States and that it has the potential to provide us with meaningful growth. We believe that the combination of low production costs and the premium quality of the High Vol A steelmaking coal mined from Blue Creek, assuming we achieve our expected price realizations, will generate some of the highest steelmaking coal margins in the U.S., generate strong investment returns and achieve a rapid payback of our investment across a range of steelmaking coal price environments.
Previous report
Our third-party reserve report indicates that, once developed, Blue Creek will produce a premium High Vol A steelmaking coal that is characterized by low-sulfur and strong coking properties. High Vol A steelmaking coal has traditionally priced at a discount to the Australian Premium Low Vol and the U.S. Low Vol coals; however, we have observed extended periods in which High Vol A steelmaking coal achieved a premium over these indices. We expect U.S. High Vol A coals will continue to become an important component of global steelmakers' coal blends due to their unique characteristics. In addition, we also expect that as the decade progresses, overall production and the supply of premium hard coking coals will be outpaced by the growth in demand coming from countries like India, Indonesia and Vietnam. This trend creates an opportunity for us to take advantage of favorable pricing dynamics driven by the projected tightness in supply and the desirable characteristics of our premium High Vol A steelmaking coal.
Previous report
We believe that the execution risk of Blue Creek is lower than most projects of this size and nature due to utilizing highly experienced engineers with strong backgrounds in building new mines around the world to manage the project. The same highly experienced and knowledgeable engineers and familiar contractors who built mine infrastructure in recent years are being leveraged to build Blue Creek.
Previous report
In 2023, we focused on the slope, return shaft, service shaft, bathhouse, warehouse, and substations. Also, in 2023, we initiated important and highly beneficial project scope changes that we expect will require incremental capital expenditures over the life of the project while lowering operating costs, increasing flexibility to manage risks, and making better use of multi-channel transportation methods. While we originally planned on a single channel to transport coal from the Blue Creek mine via an overland belt to a third-party owned and operated barge loadout facility, we are now constructing a belt conveyor system to a railroad loadout to transport the majority of the coal. We expect this change to de-risk the single channel to market, lower operating costs and move volumes faster to the port. We are also constructing and will operate a barge loadout ourselves rather than utilizing a third-party provider. We believe that the potential economic benefits associated with this scope change should provide us with an inherently robust and cost competitive outbound logistics model that will provide additional flexibility to manage alternative transportation methods.
Previous report
The inclusion of the benefits and incremental capital expenditures relating to these specific scope changes are not expected to have a material impact on the project's economic metrics of net present value and internal rate of return and did not change the project timeline. In addition, we have experienced inflationary cost increases ranging from 25% to 35%, primarily in relation to labor, construction materials, and certain equipment. Inflationary pressures are expected to continue during the remainder of the project development period. While cost inflation has impacted the cost of the project, these inflationary pressures are expected to be offset by an inflationary increase in the long-term price assumption for steelmaking coal. We continue to expect a total project capital expenditure estimate of $995 million to $1.075 billion.
Previous report
In 2024, we made significant progress on the major components for seam access, surface infrastructure and coal transportation. We installed and commissioned the service cage, slope belt, slope car and raw coal belt, which allowed us to begin development of the initial longwall panel with three continuous miner units, producing 190 thousand metric tons during the year. On the surface infrastructure components, we began construction on the dry slurry processing system and we made significant progress on the construction of the preparation plant, which is projected to be online during the middle of 2025. All major preparation plant equipment is on-site awaiting installation. We have also started to take delivery of the longwall shields, and we expect to have all shields on site in the first half of 2025. On the coal transportation components, the clean coal storage silos at the rail loadout were completed, and the construction of the clean coal belt structure and the rail and barge loadouts remain on schedule. We are also focused on increasing the headcount at Blue Creek and continue to work closely with contractors and vendors to overcome supply chain and labor shortages in the mining industry. To date, we have not encountered any significant barriers that have prevented us from achieving our goals.
Previous report
We have invested approximately $350.5 million in 2024 and $716.5 million project-to-date. We expect to spend $225 to $250 million in 2025 on the continued development of Blue Creek and the remaining capital expenditures of $54 million to $109 million in 2026.
Previous report
The project remains on schedule with the longwall scheduled to start up no later than the second quarter of 2026. We expect to ramp up production through the development of the project. Specifically, we expect to produce approximately 900 thousand metric tons in 2025, approximately 2.7 million metric tons in 2026 and approximately 4.4 million metric tons in 2027. We do not expect the tons produced in 2024 and 2025 of approximately 1.1 million metric tons to be sold until the second half of 2025 when the preparation plant comes online. These are estimates subject to revision and we expect to provide updated financial and operational information on Blue Creek in the near future.
Previous report
If we are able to successfully develop Blue Creek, we expect that it will be a transformational investment for us. We expect that the new single longwall mine at Blue Creek will have the capacity to produce an average of 4.4 million metric tons per annum of premium High Vol A met coal over the first ten years of production, thereby increasing our annual production capacity by approximately 60%. We expect the addition of Blue Creek to enhance our already advantageous position on the global cost curve, improve our profitability and cash flow generation, and cement our position as a leading pure play steelmaking coal producer.
Previous report
U.S. inflation is currently at approximately 2.89%, driven by increased energy and food costs, supply constraints and strong consumer demand. While inflation in the overall economy has eased in the last twelve months, we have not seen it easing significantly in the coal mining industry. We expect that inflation will continue to negatively impact our profitability, as we expect inflation to remain high for steel prices, freight rates, labor and other materials and supplies. Specifically, we have experienced inflationary cost increases ranging from 25% to 35%, primarily in relation to labor, construction materials, and certain equipment. In addition, we have experienced inflation in the costs of belt structure, roof bolts, cable, magnetite, rock dust and other supplies, plus labor and parts on equipment repair and rebuilds.
Previous report
During the fourth quarter of 2024, high-quality steelmaking coal prices reached levels not seen since 2021 due to a confluence of weaker demand, excess Chinese steel exports into our customers' markets, and ample supply of steelmaking coals. As of January 21, 2025, the Platts Index price for premium LV coal was $188.00 per metric ton. Per the Wood Mackenzie global metallurgical coal short-term outlook released in January 2025, premium LV coal is expected to be between $195.00 and $207.00 per metric ton for 2025. This expectation is in large part driven by supply tightness and increased buying from India due to modest restocking of steelmaking coals.
Previous report
We believe the pricing environment will remain under pressure due to the persistent weakness in the global steel markets combined with a modest increase in steel growth production in India.
Previous report
Our primary business, the mining and exporting of steelmaking 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, royalties from our leased properties and the business results related to the Blue Creek mine development. Our natural gas and royalty businesses do not meet the criteria in ASC 280, Segment Reporting, to be considered as operating or reportable segments.
Previous report
(7)Represents idle mine expenses incurred in connection with reduced operations at Mine No 4 and Mine No. 7.
Previous report
•we achieved annual sales volumes of 7.2 million metric tons, a 6% increase compared to the prior year, and production volume of 7.5 million metric tons, a 8% increase compared to the prior year, which represent run rates not seen since 2019 and record high annual production for Mine No. 4 of 2.5 million metric tons;
Previous report
•we made excellent progress in developing our world-class Blue Creek growth project, which remains on schedule, and invested $350.5 million in the continued development of Blue Creek, which brings the total project spend to $716.5 million, all self-funded from operating cash flows;
Previous report
•we began production at Blue Creek on time and on budget;
Previous report
•we commenced continuous miner development at Blue Creek, producing 190 thousand metric tons;
Previous report
Business interruption expenses were $0.5 million for the year ended December 31, 2024, compared to $8.3 million for the year ended December 31, 2023. These expenses decreased compared to the prior period primarily due to the end of the strike in February 2023 that had been initiated in April 2021 by the labor union representing certain of the Company's hourly employees. The expenses for the year ended December 31, 2024 represent ongoing legal expenses associated with the labor negotiations and the expenses for the year ended December 31, 2023 represent non-recurring expenses that were directly attributable to the labor strike for incremental safety and security, legal and labor negotiations and other expenses.
Previous report
Loss on early extinguishment of debt for the year ended December 31, 2023 represents a premium paid for the early retirement $146.1 million of our Notes, accelerated amortization of debt discount and debt issuance costs and fees incurred in connection with the transaction.
Previous report
Other expense for the year ended December 31, 2023 represents non-recurring expenses incurred in connection with the ransomware attack discovered by the Company on July 29, 2023 offset partially by proceeds received from the chapter 11 cases from Walter Energy, Inc.
Previous report
During the year ended December 31, 2023, we repurchased in the open market and extinguished approximately $8.0 million principal amount of our Notes at a discount to par value. In connection with the extinguishment of our Notes, we recognized a loss on early extinguishment of debt of $0.1 million which is included in interest expense in the Statements of Operations. In addition, in the third quarter of 2023, we retired approximately $146.1 million of our Notes and recognized a loss on early extinguishment of debt of $11.7 million, which represents a premium paid to retire the debt, accelerated amortization of debt discount, net, and fees incurred in connection with the transaction.
Previous report
Statements of Cash Flows
Previous report
ABL Facility
Previous report
On December 6, 2021, we entered into the Second Amended and Restated Asset-Based Revolving Credit Agreement (the “Second Amended and Restated Credit Agreement”), by and among us and certain of our subsidiaries, as borrowers, the guarantors party thereto, the lenders from time to time party thereto and Citibank, as administrative agent (in such capacity, the "Agent"), which amends and restates in its entirety the existing Amended and Restated Asset-Based Revolving Credit Agreement (as amended, the “ABL Facility”). The Second Amended and Restated Credit Agreement, among other things, (i) extended the maturity date of the ABL Facility to December 6, 2026; (ii) changed the calculation of the interest rate payable on borrowings from being based on a London Inter-Bank Offered Rate to be based on a Secured Overnight Financing Rate, with corresponding changes to the applicable interest rate margins with respect to such borrowings, (iii) amended certain definitions related to the calculation of the borrowing base; (iv) increased the commitments that may be used to issue letters of credit to $65.0 million; and (v) amended certain baskets contained in the covenants to conform to the baskets contained in the indenture governing the Notes (the "Indenture"). The Second Amended and Restated Credit Agreement also allows us to borrow up to $116.0 million through November 2026, subject to availability under the borrowing base and other conditions.
Previous report
Under the ABL Facility, up to $10.0 million of the commitments may be used to incur swingline loans from Citibank and up to $65.0 million of the commitments may be used to issue letters of credit. The ABL Facility will mature on December 6, 2026. As of December 31, 2024, no loans were outstanding under the ABL Facility and there were $2.5 million of letters of credit issued and outstanding under the ABL Facility. At December 31, 2024, the Company had $113.5 million of availability under the ABL Facility.
Previous report
Subject to permitted exceptions, the obligations of the borrowers under the ABL Facility are guaranteed by each of our domestic subsidiaries and secured by (i) first-priority security interests in the ABL Priority Collateral (as defined in the Indenture), which includes, among other things, certain accounts receivables, inventory and cash of ours and the guarantors, and (ii) second-priority security interests in the Notes Priority Collateral (as defined in the Indenture), which includes, among other things, material mining properties, shares of capital stock of the guarantors, intellectual property, as extracted collateral (to the extent not constituting inventory), and certain fixed assets of ours and the guarantors.
Previous report
We are able to voluntarily repay outstanding loans and reduce unused commitments, in each case, in whole or in part, at any time without premium or penalty. We are required to repay outstanding loans and cash collateralize letters of credit anytime the outstanding loans and letters of credit exceed the maximum availability then in effect. We are also required to use net proceeds from certain significant asset sales to repay outstanding loans, but may re-borrow following such prepayments if the conditions to borrowings are met.
Reworded paragraphs (77)
Previous wording
The following discussion and analysis provides a narrative of our results of operations and financial condition for the years ended December 31, 2024 and December 31, 2023. You should read the following discussion and analysis of our financial condition and results of operations together with our audited financial statements and related notes appearing elsewhere in this Annual Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Annual Report, 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, including those factors set forth in“Part I, Item 1A. Risk 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.”
Current wording
The following discussion and analysis provides a narrative of our results of operations and financial condition for the years ended December 31, 2025 and December 31, 2024. You should read the following discussion and analysis of our financial condition and results of operations together with our audited consolidated financial statements and related notes appearing elsewhere in this Annual Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Annual Report, 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, including those factors set forth in“Part I, Item 1A. Risk 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.”
Previous wording
We are a U.S.-based, environmentally and socially minded supplier to the global steel industry. We are dedicated entirely to mining non-thermal steelmaking 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 quality steelmaking 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. We also are developing our world-class Blue Creek mine based in Alabama.
Current wording
We are a U.S.-based, environmentally and socially minded supplier to the global steel industry. We are dedicated entirely to mining non-thermal steelmaking 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 quality steelmaking coal, also known as hard coking coal (“HCC”), operating highly efficient longwall operations in our underground mines based in Alabama. In October 2025, we commenced operations at our transformational Blue Creek mine eight months ahead of schedule.
Previous wording
As of December 31, 2024, Mine No. 4 and Mine No. 7, our two operating mines, had approximately 82.4 million metric tons of recoverable reserves and our Blue Creek mine contained 69.0 million metric tons of recoverable reserves and 39.7 million metric tons of coal resources exclusive of reserves. As a result of our high-quality coal, our Mine No. 7 steelmaking coal realized price has historically been in line with, or at a slight discount to, the Platts Premium Low Volatility ("LV") Free-On-Board Australian Index (the "S&P Platts Index"). Our Mine No. 4 steelmaking coal is a High Vol A quality that typically trades at a larger discount to the price of coal from Mine No. 7. We now primarily target the East Coast High Vol A indices price for our Mine No. 4 coal. Our steelmaking coal, mined from the Southern Appalachian portion of the Blue Creek coal seam, is characterized by low sulfur, low-to-medium ash, and Low Vol to High Vol. These qualities make our coal ideally suited as a coking coal for the manufacture of steel.
Current wording
As of December 31, 2025, our three operating underground mines had approximately 179.3 million metric tons of recoverable reserves and our Blue Creek mine contained 54.0 million metric tons of recoverable reserves. As a result of our high-quality coal, our Mine No. 7 steelmaking coal realized price has historically been in line with, or at a slight discount to, the Platts Premium Low Volatility ("LV") Free-On-Board Australian Index (the "S&P Platts Index"). Our Mine No. 4 and Blue Creek steelmaking coals are a High Volatility A ("HVA") quality coal that typically trades at a discount to the price of coal from Mine No. 7. We primarily target the East Coast High Vol A index for sales of our Mine No. 4 and Blue Creek coals that are destined for the Atlantic Basin. Whereas we target a variety of indices, including Platts Premium Low Vol and Platts Low Vol HCC for sales destined to the Pacific Basins. Our Blue Creek coal is also primarily sold into Asia and is sold on a cost and freight ("CFR") basis. Our steelmaking coal, mined from the Southern Appalachian portion of the Blue Creek coal seam, is characterized by low-to-high volatile matter, low sulfur, high fluidity, and high strength. These qualities make our coal ideally suited as a coking coal for the manufacture of steel.
Previous wording
We sell substantially all of our steelmaking coal production to steel producers. Steelmaking coal, which is converted to coke, is a critical input in the steel production process. Steelmaking 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 steelmaking 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 steelmaking coal, which would have a material adverse effect upon our business. Similarly, if alternative ingredients are used in substitution for steelmaking coal in the integrated steel mill process, the demand for steelmaking coal would materially decrease, which could also materially adversely affect demand for our steelmaking coal.
Current wording
We sell substantially all of our steelmaking coal production to global steel producers. Steelmaking coal, which is converted to coke, is a critical input in the steel production process. Steelmaking 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 steelmaking 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 steelmaking coal, which would have a material adverse effect upon our business. Similarly, if alternative ingredients are used in substitution for steelmaking coal in the integrated steel mill process, the demand for steelmaking coal could materially decrease, which could also materially adversely affect demand for our steelmaking coal.
Previous wording
Update on the Development of Blue Creek
Current wording
On February 21, 2025, we provided an update on the Blue Creek project. Due to the implementation of innovative technologies and best practices, we increased nameplate production capacity of the Blue Creek mine by 25%, from the original production plan of 4.4 million metric tons to 5.4 million metric tons. With better-than-expected recovery and the anticipated addition of a fourth continuous miner unit, our overall nameplate production capacity increases up to approximately 6.4 million metric tons. The additional capacity increases our overall nameplate production capacity by 88%, from 7.3 million metrics tons per year to 13.7 million metrics tons per year. While our nameplate production capacity has significantly increased, actual annual sales and production volumes will be dependent upon steelmaking coal market conditions. Even in these early stages of production and sales, Blue Creek has already contributed to lower cash costs, further improving our position in the first-quartile of the global cost curve. In addition, Blue Creek's low-cost structure has reduced our all-in cash cost breakeven point and enhanced our profitability and cash flow generation.
Previous wording
Our CBA contract with the United Mine Workers of America (“UMWA”) expired on April 1, 2021 and the labor union initiated a strike after an agreement on a new contract was not reached. As a result of the strike, we initially idled Mine No. 4 and scaled back operations at Mine No. 7. In the first quarter of 2022, we restarted operations at Mine No. 4. Due to the reduced operations at Mine No. 4 and Mine No. 7, we incurred idle mine expense of $12.1 million for the year ended December 31, 2022. This expense is reported separately in the Statements of Operations and represents expenses incurred while the respective mine was idled or operating below normal capacity, such as electricity, insurance and maintenance labor. We incurred no idle mine expenses for the years ended December 31, 2023 or December 31, 2024. We incurred business interruption expenses of approximately $0.5 million for the year ended December 31, 2024, which represents ongoing legal expenses associated with the ongoing labor negotiations. We incurred $8.3 million and $23.5 million for the years ended December 31, 2023 and December 31, 2022, respectively, which represent non-recurring expenses that were directly attributable to the labor strike for incremental safety and security, labor negotiations and other expenses. These expenses are also presented separately in the Statements of Operations. On February 16, 2023, the labor union representing certain of the Company's hourly employees announced that they were ending the strike and made an unconditional offer to return to work. We continue to engage in good faith efforts with the labor union to reach an agreement on a new contract.
Current wording
Our Collective Bargaining Agreement contract with the United Mine Workers of America (“UMWA”) expired on April 1, 2021 and the labor union initiated a strike after an agreement on a new contract was not reached. As a result of the strike, we initially idled Mine No. 4 and scaled back operations at Mine No. 7. In the first quarter of 2022, we restarted operations at Mine No. 4. We incurred no idle mine expenses for the years ended December 31, 2023, December 31, 2024 or December 31, 2025. We incurred business interruption expenses of approximately $0.1 million for the year ended December 31, 2025, which represents ongoing legal expenses associated with the ongoing labor negotiations. We incurred $0.5 million and $8.3 million for the years ended December 31, 2024 and December 31, 2023, respectively, which represent non-recurring expenses that were directly attributable to the labor strike for incremental safety and security, labor negotiations and other expenses. These expenses are also presented separately in the Consolidated Statements of Operations. On February 16, 2023, the labor union representing certain of the Company's hourly employees announced that they were ending the strike and made an unconditional offer to return to work. We continue to engage in good faith efforts with the labor union to reach an agreement on a new contract.
Previous wording
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; (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.
Current wording
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, 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. The following table presents supplementary data on a historical basis for each of the periods indicated.
Previous wording
We define Segment Adjusted EBITDA as net income adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative expenses, business interruption expenses, idle mine expenses, loss on early extinguishment of debt, other (expense) income, net interest (income) expense, income tax expense and certain transactions or adjustments that the CEO, 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:
Current wording
We define Segment Adjusted EBITDA as net income adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative expenses, business interruption expenses, loss on early extinguishment of debt, other (expense) income, interest income, interest expense, income tax benefit (expense) and certain transactions or adjustments that the CEO, 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 consolidated financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:
Previous wording
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 coal sales contracts, for which prices generally are set on daily index averages or a quarterly basis. The volume of coal we sell is also a function of the pricing environment in the international steelmaking coal markets and the amounts of Low Vol and High Vol A coal that we sell. We evaluate the price we receive for our coal based on our average net selling price per metric ton.
Current wording
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 steelmaking coal. Our sales volume and sales prices are largely dependent upon the terms of our annual steelmaking coal sales contracts, for which prices generally are set on daily index averages on a quarterly basis. The volume of steelmaking coal we sell is also a function of the pricing environment in the international steelmaking coal markets and the amounts of Low Vol and High Vol A coal that we sell. We evaluate the price we receive for our steelmaking coal based on our average net selling price per metric ton.
Previous wording
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.
Current wording
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 demurrage and quality specification adjustments. We normally compete on a delivered basis when negotiating contract and spot transactions with our global customers. However, depending on market dynamics and other circumstances, the burden of ocean freight may be borne entirely by the supplier, shared between both partners, or assumed entirely by the customer. In the instance when we are responsible for the freight, the freight costs will reduce our net sales revenues and impact our net selling price realizations.
Previous wording
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 GAAP, are classified in the Statements of Operations as costs other than cost of sales, but relate directly to the costs incurred to produce steelmaking coal and sell it free-on-board at the Port of Mobile in 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:
Current wording
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 GAAP, are classified in the Consolidated Statements of Operations as costs other than cost of sales, but relate directly to the costs incurred to produce steelmaking coal and sell it free-on-board at the Port of Mobile in 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 consolidated financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:
Previous wording
We define Adjusted EBITDA as net income before net interest (income) expense, income tax expense, depreciation and depletion, non-cash asset retirement obligation accretion and valuation adjustments, non-cash stock compensation expense, other non-cash accretion and valuation adjustments, non-cash mark-to-market (gain) loss on gas hedges, loss on early extinguishment of debt, business interruption expenses, idle mine expenses and other income and expenses. 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:
Current wording
We define Adjusted EBITDA as net income before net interest (income) expense, income tax expense (benefit), depreciation and depletion, non-cash asset retirement obligation accretion and valuation adjustments, non-cash stock compensation expense, other non-cash accretion and valuation adjustments, non-cash mark-to-market loss (gain) on gas hedges, loss on early extinguishment of debt, business interruption expenses and other expenses. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our consolidated financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:
Previous wording
(1)Represents non-cash accretion expense and valuation adjustment associated with our asset retirement obligations (see Note 8 to our consolidated financial statements).
Current wording
Represents non-cash accretion expense and valuation adjustment associated with our asset retirement obligations (see Note 9 to our consolidated financial statements).
Previous wording
(2)Represents non-cash stock compensation expense associated with equity awards (see Note 12 to our consolidated financial statements).
Current wording
Represents non-cash stock compensation expense associated with equity awards (see Note 16 to our consolidated financial statements).
Previous wording
(3)Represents non-cash accretion expense and valuation adjustments associated with our black lung obligations (see Note 10 to our consolidated financial statements).
Current wording
Represents non-cash accretion expense and valuation adjustments associated with our black lung obligations (see Note 10 to our consolidated financial statements).
Previous wording
(4)Represents non-cash mark-to-market losses (gains) recognized on our gas hedges (see Note 17 to our consolidated financial statements).
Current wording
Represents non-cash mark-to-market (gains) losses recognized on our gas hedges (see Note 18 to our consolidated financial statements).
Previous wording
(5)Represents a loss incurred in connection with the early extinguishment of debt (see Note 13 to our consolidated financial statements).
Current wording
Represents a loss incurred in connection with the early extinguishment of debt.
Previous wording
(6)For the year ended December 31, 2024, represents ongoing legal expenses associated with the ongoing labor negotiations and for all other periods presented represents non-recurring expenses that were directly attributable to the labor strike for incremental safety and security, labor negotiations and other expenses.
Current wording
For the years ended December 31, 2025 and 2024, represents ongoing legal expenses associated with the ongoing labor negotiations and for 2023 represents non-recurring expenses that were directly attributable to the labor strike for incremental safety and security, labor negotiations and other expenses.
Previous wording
(8)Represents non-recurring expenses incurred in connection with the ransomware attack discovered by the Company on July 29, 2023, proceeds received upon settlement of a lawsuit and COVID-19 pandemic related expenses.
Current wording
Represents non-recurring expenses incurred in connection with the ransomware attack discovered by the Company on July 29, 2023.
Previous wording
The following table summarizes certain financial information relating to our operating results that have been derived from our audited financial statements for the years ended December 31, 2024 and 2023.
Current wording
The following table summarizes certain financial information relating to our operating results that have been derived from our audited consolidated financial statements for the years ended December 31, 2025 and 2024.
Previous wording
•we achieved strong net income of $250.6 million, or $4.79 per diluted share and adjusted EBITDA of $447.9 million;
Current wording
we achieved strong net income of $57.0 million, or $1.08 per diluted share and adjusted EBITDA of $256.5 million;
Previous wording
•we delivered positive cash flows from operations of $367.4 million, enabling the second highest annual amount spent on capital expenditures of $488.3 million for the growth of the business;
Current wording
we delivered positive cash flows from operations of $229.2 million, enabling the continued investment in capital expenditures of $402.2 million for the growth of the business;
Previous wording
•we maintained a strong balance sheet with total liquidity of $654.7 million, consisting of cash and cash equivalents of $491.5 million, short-term investments of $5.1 million, net of $9.5 million posted as collateral, long-term investments of $44.6 million, and $113.5 million available under our ABL Facility;
Current wording
we maintained a strong balance sheet with total liquidity of $483.9 million, consisting of cash and cash equivalents of $300.0 million, short-term investments of $43.4 million, net of $9.9 million posted as collateral, and $140.5 million available under our Amended ABL Facility;
Previous wording
•we achieved a total reportable incidence rate of 1.53, which is 65% lower than the national total reportable incidence rate for all underground coal mines in the United States of 4.36 for the nine months ended September 30, 2024 which represents the latest data available; and
Current wording
we achieved a total reportable incidence rate of 1.96, which is 53% lower than the national total reportable incidence rate for all underground coal mines in the United States of 4.20 for the six months ended June 30, 2025 which represents the latest data available; and
Previous wording
•we demonstrated an ongoing commitment to returning capital to our stockholders paying a regular quarterly dividend of $0.08 per share and special dividends of $0.50 per share.
Current wording
we demonstrated an ongoing commitment to returning capital to our stockholders paying a regular quarterly dividend of $0.08 per share.
Previous wording
Sales were $1.5 billion for the year ended December 31, 2024, compared to $1.6 billion for the year ended December 31, 2023. The $148.0 million or 9.0% decrease in sales was primarily driven by a $248.2 million decrease related to a $34.32 decrease in the average net selling price per metric ton of steelmaking coal offset partially by a $100.3 million increase due to a 6% or 0.4 million metric ton increase in steelmaking coal sales volume. The 6% increase in sales volumes was driven by increased production due to both Mine No. 4 and Mine No. 7 operating at higher capacity levels. The average net selling price of our steelmaking coal decreased $34.32 or 14% from $241.64 per metric ton for the year ended December 31, 2023 to $207.32 per metric ton for the year ended December 31, 2024.
Current wording
Sales were $1.3 billion for the year ended December 31, 2025, compared to $1.5 billion for the year ended December 31, 2024. The $223.0 million or 15% decrease in sales was primarily driven by a $533.9 million decrease related to a $61.12 or 29.5% decrease in the average net selling price per metric ton of steelmaking coal offset partially by a $311.0 million increase due to a 1.4 million metric ton increase in steelmaking coal sales volume. Sales volumes for the year ended December 31, 2025, were a record 8.7 million metric tons, a 21% increase, driven by increased production due to the commencement of longwall operations at Blue Creek in October 2025, eight months ahead of schedule and under budget. The average net selling price of our steelmaking coal decreased $61.12 from $207.32 per metric ton for the year ended December 31, 2024 to $146.20 per metric ton for the year ended December 31, 2025. Our average gross price realization was approximately 80% of the Platts Premium Low Vol FOB Australian index price for the year ended December 31, 2025 compared to 89% for the year ended December 31, 2024, primarily driven by 13% higher sales mix of High Vol A steelmaking coal sold primarily into the Pacific Basin, a lower price index relative to premium Low Vol and elevated freight rates to the Pacific Basin.
Previous wording
For the year ended December 31, 2024, the Company's geographic customer mix was 42% in Asia, 38% in Europe, 19% in South America and 1% in the U.S. For the year ended December 31, 2023, the Company's geographic customer mix was 48% in Europe, 33% in Asia and 19% in South America.
Current wording
For the year ended December 31, 2025, the Company's geographic customer mix was 48% in Asia, 37% in Europe, 14% in South America and 1% in the U.S. For the year ended December 31, 2024, the Company's geographic customer mix was 42% in Asia, 38% in Europe, 19% in South America and 1% in the U.S.
Previous wording
Other revenues for the year ended December 31, 2024 were $25.2 million compared to $28.6 million for the year ended December 31, 2023. Other revenues are comprised of revenue derived from our natural gas operations, gains and losses on our natural gas hedges and earned royalty revenue. The $3.4 million decrease in other revenues is primarily driven by a decrease of $0.44 per Million British Thermal Unit ("MMBtu") or 14% in the Southern Louisiana natural gas price average combined with a decrease in sales volumes for the year ended December 31, 2024 compared to the prior year comparable period. The current year also includes a mark-to-market loss of approximately $1.8 million on outstanding gas hedges.
Current wording
Other revenues for the year ended December 31, 2025 were $33.0 million compared to $25.2 million for the year ended December 31, 2024. Other revenues are comprised of revenue derived from our natural gas operations, gains and losses on our natural gas hedges and earned royalty revenue. The $7.8 million increase in other revenues is primarily driven by an increase of $1.30 per Million British Thermal Unit ("MMBtu") or 52% in the Southern Louisiana natural gas price average offset partially by a slight decrease in gas sales volumes for the year ended December 31, 2025 compared to the prior year comparable period. The current year also includes a mark-to-market net gain of $0.2 million on outstanding gas hedges.
Previous wording
Cost of sales (exclusive of items shown separately below) was $1,007.3 million, or 66.0% of total revenues for the year ended December 31, 2024, compared to $910.3 million, or 54.3% of total revenues for the year ended December 31, 2023. The $97.0 million increase in cost of sales was primarily driven by a $55.0 million increase due to a 6% or 0.4 million metric ton increase in steelmaking coal sales volumes combined with a $39.8 million increase due to a $5.50 per metric ton increase in the average cash cost of sales per metric ton. The increase in average cash cost of sales per metric ton is primarily driven by an increase in cost of production from increased labor and supply costs and increased transportation costs due to multiple failures of lock and dam systems that prevented us from barging coal for the majority of the year. For the year ended December 31, 2024, cost of production represented 64% of cost of sales and transportation and royalties accounted for approximately 36% compared to cost of production of 60% and transportation and royalties of 40% for the year ended December 31, 2023.
Current wording
Cost of sales (exclusive of items shown separately below) was $982.4 million, or 75.0% of total revenues for the year ended December 31, 2025, compared to $1,007.3 million, or 66.0% of total revenues for the year ended December 31, 2024. The $24.9 million decrease in cost of sales was primarily driven by a $231.0 million decrease due to a $26.44 per metric ton decrease in the average cash cost of sales per metric ton offset partially by a $207.2 million increase due to a 21% increase in steelmaking coal sales volumes. The decrease in average cash cost of sales per metric ton is primarily driven by the sales mix of Blue Creek coal and its inherently lower cost structure and lower steelmaking coal prices and their effect on our variable cost structure, primarily for wages, transportation and royalties. For the year ended December 31, 2025, cost of production represented 66% of cost of sales and transportation and royalties accounted for approximately 34% compared to cost of production of 64% and transportation and royalties of 36% for the year ended December 31, 2024.
Previous wording
Cost of other revenues was $45.4 million for the year ended December 31, 2024, compared to $37.5 million for the year ended December 31, 2023. The $8.0 million increase is primarily due to an increase of approximately of $7.3 million in our black lung obligation valuation adjustment recorded annually in the fourth quarter primarily attributable to changes in discount rates.
Current wording
Cost of other revenues was $27.7 million for the year ended December 31, 2025, compared to $45.4 million for the year ended December 31, 2024. The $17.8 million decrease is primarily due to a net change of approximately of $8.6 million in our black lung obligation valuation adjustment recorded annually in the fourth quarter primarily attributable to a decrease in open claims and the net impact of a change in discount rates.
Previous wording
Depreciation and depletion was $154.0 million, or 10.1% of total revenues, for the year ended December 31, 2024, compared to $127.4 million, or 7.6% of total revenues for the year ended December 31, 2023. The $26.6 million increase in depreciation and depletion is primarily driven by additional assets placed in service throughout the year and a 6% or 0.4 million metric ton increase in steelmaking coal sales volumes as depreciation and depletion is first capitalized into coal inventory and relieved when the tons are sold.
Current wording
Depreciation and depletion was $188.6 million, or 14.4% of total revenues, for the year ended December 31, 2025, compared to $154.0 million, or 10.1% of total revenues for the year ended December 31, 2024. The $34.6 million increase in depreciation and depletion is primarily driven by additional assets placed in service throughout the year and a 21% increase in steelmaking coal sales volumes as depreciation and depletion is first capitalized into coal inventory and relieved when the tons are sold.
Previous wording
Selling, general and administrative expenses were $63.1 million, or 4.1% of total revenues for the year ended December 31, 2024 compared to $51.8 million, or 3.1% of total revenues for the year ended December 31, 2023. The $11.3 million increase in selling, general and administrative expenses is primarily driven by an increase in employee related expenses.
Current wording
Selling, general and administrative expenses were $65.7 million, or 5.0% of total revenues for the year ended December 31, 2025 compared to $63.1 million, or 4.1% of total revenues for the year ended December 31, 2024. The $2.6 million increase in selling, general and administrative expenses is primarily driven by an increase in employee related expenses.
Previous wording
Interest expense was $4.3 million, or 0.3%, of total revenues, for the year ended December 31, 2024, compared to $18.0 million, or 1.1% of total revenues, for the year ended December 31, 2023. The $13.7 million decrease is due to the early retirement of our Notes in September 2023, an increase in capitalized interest associated with the Blue Creek project and maturity of financing leases.
Current wording
Interest expense was $9.7 million, or 0.7%, of total revenues, for the year ended December 31, 2025, compared to $4.3 million, or 0.3% of total revenues, for the year ended December 31, 2024. The $5.5 million increase is due to interest on new financing leases in 2025.
Previous wording
Interest income was $33.0 million, or 2.2% of total revenues, for the year ended December 31, 2024, compared to $40.7 million, or 2.4% of total revenues, for the year ended December 31, 2023. The $7.7 million decrease was primarily driven by a decrease in invested cash balances and lower rates of return earned on our investments.
Current wording
Interest income was $18.5 million, or 1.4% of total revenues, for the year ended December 31, 2025, compared to $33.0 million, or 2.2% of total revenues, for the year ended December 31, 2024. The $14.6 million decrease was driven by a decrease in invested cash balances and lower rates of return earned on our investments.
Previous wording
For the year ended December 31, 2024, we recognized income tax expense of $33.1 million or an effective tax rate of 11.7% primarily due to pre-tax income of $283.7 million offset partially by an income tax benefit of $14.4 million of depletion and $12.1 million due to a deduction under Section 250 of the Code: Foreign-Derived Intangible Income ("FDII"). For the year ended December 31, 2023, we recognized income tax expense of $72.8 million or an effective tax rate of 13.2% primarily due to pre-tax income of $551.4 million offset partially by an income tax benefit of $26.1 million due to the FDII deduction and $21.8 million of depletion.
Current wording
For the year ended December 31, 2025, we recognized income tax benefit of $2.6 million or an effective tax rate of negative 4.7% primarily due to federal income tax expense at the U.S. statutory tax rate of $11.4 million offset by an income tax benefit of $12.2 million driven by percentage depletion deduction, $4.7 million due to the marginal well tax credit and $4.3 million due to a deduction under Section 250 of the Code: Foreign-Derived Intangible Income ("FDII"). For the year ended December 31, 2024, we recognized income tax expense of $33.1 million or an effective tax rate of 11.7% primarily due to pre-tax income of $283.7 million offset partially by an income tax benefit of $14.4 million of percentage depletion deduction, $12.1 million due to the FDII deduction and $4.9 due to the marginal well tax credit. The OBBBA was enacted on July 4, 2025, and updated the FDII to FDDEI, which provides for, among other things, a permanent deduction of 33.34% of FDDEI, which reduces the statutory tax rate to 14% of such income. The changes will take effect for taxable years beginning after December
Previous wording
At December 31, 2024, we had state NOLs of approximately $945.2 million. These NOLs represent a deferred tax asset of approximately $4.1 million, net of the valuation allowance. See Note 7 of the Notes to the Financial Statements for more information.
Current wording
At December 31, 2025, we had state NOLs of approximately $948.9 million. These NOLs represent a deferred tax asset of approximately $2.9 million, net of the valuation allowance. See Note 7 of the Notes to the Consolidated Financial Statements for more information.
Previous wording
Our sources of cash have been steelmaking coal and natural gas sales to customers, proceeds received from 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 coal and natural gas production operations, working capital, our capital expenditures, including capital expenditures and mine development for the development of Blue Creek, our reclamation obligations, payment of principal and interest on our Notes, professional fees and other non-recurring transaction expenses. In addition, we used available cash on hand to repurchase shares of common stock and to pay our quarterly and special dividends, each of which reduces or reduced cash and cash equivalents.
Current wording
Our sources of cash have been steelmaking coal and natural gas sales to customers, proceeds received from the Notes (as defined below) and access to our Amended ABL Facility. Historically, our primary uses of cash have been for funding the operations of our coal and natural gas production operations, working capital, our capital expenditures, including capital expenditures and mine development for the development of Blue Creek, our reclamation obligations, payment of principal and interest on our Notes, professional fees and other non-recurring transaction expenses. In addition, we used available cash on hand to repurchase shares of common stock and to pay our quarterly and special dividends, each of which reduces or reduced cash and cash equivalents.
Previous wording
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, the development of Blue Creek, capital expenditures, our reclamation obligations, our black lung obligations, professional fees and other non-recurring transaction expenses and strategic investments, and, if declared, to pay our quarterly and/or special dividends. Our ability to fund our capital needs, including the development of Blue Creek, 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 needs, the development of Blue Creek, or special dividends financed partially or wholly with debt financing and our ability to access the capital markets to raise additional capital.
Current wording
Going forward, we will use cash to fund debt service payments on our Notes, the Amended ABL Facility and our other indebtedness, to fund operating activities, working capital, capital expenditures, our reclamation obligations, our finance lease obligations, our black lung obligations, our federal coal lease obligations, professional fees, and other non-recurring transaction expenses 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 Amended ABL Facility, and, in the case of any future strategic investments, capital needs or special dividends financed partially or wholly with debt financing and our ability to access the capital markets to raise additional capital.
Previous wording
Our available liquidity as of December 31, 2024 was $654.7 million, consisting of $491.5 million of cash and cash equivalents, $5.1 million of short-term investments, net of $9.5 million posted as collateral, $44.6 million of long-term investments and $113.5 million available under our ABL Facility, net of outstanding letters of credit. As of December 31, 2024, no loans were outstanding under the ABL Facility and there were $2.5 million of letters of credit issued and outstanding under the ABL Facility.
Current wording
Our available liquidity as of December 31, 2025 was $483.9 million, consisting of $300.0 million of cash and cash equivalents, $43.4 million of short-term investments, net of $9.9 million posted as collateral, and $140.5 million available under our Amended ABL Facility, net of outstanding letters of credit. As of December 31, 2025, no loans were outstanding under the Amended ABL Facility and there were $2.5 million of letters of credit issued and outstanding under the Amended ABL Facility.
Previous wording
We are responsible for medical and disability benefits for black lung disease under the Federal Coal Mine Health and Safety Act of 1969, as amended. Beginning on April 1, 2016 through May 31, 2018, we were insured under a guaranteed cost insurance policy, through a third-party insurance carrier, for black lung claims raised by any employee subsequent to the acquisition of certain assets of Walter Energy. From June 1, 2018 to May 31, 2020 and June 1, 2020 to May 31, 2024, the Company had a deductible policy where the Company was responsible for the first $0.5 million and $1.0 million, respectively, for each black lung claim from any of our employees. Beginning on June 1, 2024, the Company has a deductible policy where the Company is responsible for the first $2.0 million for each black lung related claim from any of our employees.
Current wording
We are responsible for medical and disability benefits for black lung disease under the Federal Coal Mine Health and Safety Act of 1969, as amended. Beginning on April 1, 2016 through May 31, 2018, we were insured under a guaranteed cost insurance policy, through a third-party insurance carrier, for black lung claims raised by any employee subsequent to the acquisition of certain assets of Walter Energy. From June 1, 2018 to May 31, 2020 and June 1, 2020 to May 31, 2024, we had a deductible policy where the Company was responsible for the first $0.5 million and $1.0 million, respectively, for each black lung and workers compensation related claim from any of our employees. Beginning on June 1, 2024, we have a deductible policy where we are responsible for the first $2.0 million of each black lung and workers compensation related claim from any of our employees.
Showing the first 40 of 77 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Current report — wording carried from elsewhere
On January 19, 2023, the DOL proposed revisions to regulations under the Black Lung Benefits Act governing authorization of self-insurers, which was then subsequently revised as part of the final rules published on December 12, 2024, which became effective on January 13, 2025 (the "2025 Final Regulations"). The 2025 Final Regulations required, among other requirements, all self-insured operators to post security of at least 100 percent of their projected black lung liabilities. On January 14, 2025, we received a letter from the DCMWC outlining the new procedures and application process for authorizing operators to self-insure under the new regulations. The letter outlined authorization form requirements and provided a 60-day period for the submission of the required documents. Subsequently, on February 20, 2025, we received another letter from the DCMWC stating that the 60-day deadline to provide information was no longer applicable and no information was required to be submitted at this time. DCWMC further stated that additional guidance would be provided in due course after consultation with the new DOL leadership. We have posted $18.6 million in surety bonds and $9.9 million of collateral recognized as short term investments in addition to maintaining a black lung trust of $0.9 million that was acquired from Walter Energy.
Current report — wording carried from elsewhere
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:
Current report — wording carried from elsewhere
During the year ended December 31, 2025, we have paid $17.8 million of regular quarterly dividends under the Capital Allocation Policy.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The Notes will accrue interest at a rate of 7.875% per year from December 6, 2021. Interest on the Notes will be payable on June 1 and December 1 of each year, commencing on June 1, 2022. The Notes will mature on December 1, 2028.
Previous report — wording carried elsewhere
Notes in a principal amount other than in integrals of $1,000), which resulted in $0.1 million aggregate principal amount of the Notes (the “RP Pro-Rated Tendered Notes”);