WARRIOR MET COAL, INC.

Previous wording

The following discussion and analysis provides a narrative of our results of operations and financial condition for the three months ended March 31, 2026 and March 31, 2025. You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes appearing in this Form 10-Q and the audited financial statements for the year ended December 31, 2025 included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Annual Report"). Some of the information contained in this discussion and analysis or set forth elsewhere in this Form 10-Q, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, our actual results could differ materially from the results described in, or implied by, the forward-looking statements contained in the following discussion and analysis. Please see“Forward-Looking Statements.”

Current wording

The following discussion and analysis provides a narrative of our results of operations and financial condition for the three and six months ended June 30, 2026 and June 30, 2025. You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes appearing in this Form 10-Q and the audited financial statements for the year ended December 31, 2025 included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Annual Report"). Some of the information contained in this discussion and analysis or set forth elsewhere in this Form 10-Q, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, our actual results could differ materially from the results described in, or implied by, the forward-looking statements contained in the following discussion and analysis. Please see“Forward-Looking Statements.”

Previous wording

In the three months ended March 31, 2026, we completed the Blue Creek construction project, including the installation of the barge loadout, and invested approximately $66.1 million, bringing total project spending to $1,022.9 million. Final project costs were fully in line with our capital guidance, and no material additional project capital expenditures are expected. With construction complete, Blue Creek is positioned to continue driving higher production, lower costs, and improved cash flow generation as the operation advances through its ramp-up and optimization phase.

Current wording

In the first quarter of 2026, we completed the Blue Creek construction project. We invested approximately $71.3 million in the current year, brining total project spending to $1,028.1 million. Final project costs were fully in line with our capital guidance, and no material additional project capital expenditures are expected. With construction complete, Blue Creek is positioned to continue driving higher production, lower costs, and improved cash flow generation as the operation advances through its ramp-up and optimization phase.

Previous wording

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 March 31, 2026 and December 31, 2025, the present value of the short-term and long-term obligations were $8.8 million and $23.7 million, respectively.

Current wording

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 June 30, 2026, the short-term and long-term obligations were $9.1 million and $24.4 million, respectively. As of December 31, 2025, the short-term and long-term obligations were $8.8 million and $23.7 million, respectively.

Previous wording

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 met 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 met 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 recognized a benefit from the 45X Credit of $8.4 million for the three months ended March 31, 2026, which is reflected as a reduction to cost of sales in the Condensed Statements of Operations and a corresponding reduction to income taxes payable included in other current liabilities in the Condensed Balance Sheets.

Current wording

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 met 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 met 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 recognized a benefit from the 45X Credit of $9.7 million and $18.0 million for the three and six months ended June 30, 2026, which is reflected as a reduction to cost of sales in the Condensed Statements of Operations and a corresponding income tax receivable included in prepaid expenses and other receivables in the Condensed Balance Sheets.

Previous wording

We define Segment Adjusted EBITDA as net income (loss) adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative expenses, business interruption expenses, interest income, interest expense, income tax benefit (expense) and certain transactions or adjustments that the Chief Executive Officer, our Chief Operating Decision Maker, does not consider for the purposes of making decisions to allocate resources among segments or assessing segment performance.

Current wording

We define Segment Adjusted EBITDA as net income (loss) adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative expenses, interest income, interest expense, income tax benefit (expense) and certain transactions or adjustments that the Chief Executive Officer, our Chief Operating Decision Maker, does not consider for the purposes of making decisions to allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our consolidated financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:

Previous wording

We define Adjusted EBITDA as net income (loss) before net interest expense (income), income tax expense (benefit), depreciation and depletion, non-cash asset retirement obligation accretion, non-cash stock compensation expense, other non-cash accretion, non-cash mark-to-market loss (gain) on gas hedges and business interruption 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:

Current wording

We define Adjusted EBITDA as net income (loss) before net interest expense (income), income tax expense (benefit), depreciation and depletion, non-cash asset retirement obligation accretion, non-cash stock compensation expense, other non-cash accretion, non-cash mark-to-market (gain) loss on gas hedges and business interruption 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

We produced 3.2 million metric tons of steelmaking coal for the three months ended March 31, 2026 compared to 2.0 million metric tons for the three months ended March 31, 2025, representing a 55.2% increase. The increased production was primarily driven by an increase in tons produced at the Blue Creek mine.

Current wording

We produced 3.0 million metric tons of steelmaking coal for the three months ended June 30, 2026 compared to 2.1 million metric tons for the three months ended June 30, 2025, representing a 45.0% increase. The increased production was primarily driven by an increase in tons produced at the Blue Creek mine.

Previous wording

Sales for the three months ended March 31, 2026 were $448.5 million compared to $294.9 million for the three months ended March 31, 2025. The $153.6 million increase in sales was primarily driven by a $112.7 million increase due to a 38.2% increase in steelmaking coal sales volume primarily due to Blue Creek combined with a $40.9 million increase related to a $14.99 per metric ton increase in the average net selling price per metric ton of our steelmaking coal. The average net selling price of our steelmaking coal increased $14.99 from $149.71 per metric ton in the first quarter of 2025 to $164.70 per metric ton in the first quarter of 2026.

Current wording

Sales for the three months ended June 30, 2026 were $503.6 million compared to $288.5 million for the three months ended June 30, 2025. The $215.1 million increase in sales was primarily driven by a $186.6 million increase due to a 64.7% increase in steelmaking coal sales volume primarily due to Blue Creek combined with a $28.6 million increase related to a $8.60 per metric ton increase in the average net selling price per metric ton of our steelmaking coal. The average net selling price of our steelmaking coal increased $8.60 from $143.31 per metric ton in the second quarter of 2025 to $151.91 per metric ton in the second quarter of 2026.

Previous wording

For the three months ended March 31, 2026, our geographic customer sales volume mix was 61% in Asia, 25% in Europe and 14% in South America. For the three months ended March 31, 2025, our geographic customer sales volume mix was 43.0% in Asia, 36.0% in Europe, 20.0% in South America and 1.0% in the United States. Our geographic customer mix typically varies each period based on the timing of customer orders and shipments.

Current wording

For the three months ended June 30, 2026, our geographic customer sales volume mix was 50% in Asia, 35% in Europe, 14% in South America and 1% in the United States. For the three months ended June 30, 2025, our geographic customer sales volume mix was 52% in Asia, 37% in Europe and 11% in South America. Our geographic customer mix typically varies each period based on the timing of customer orders and shipments.

Previous wording

Other revenues for the three months ended March 31, 2026 were $10.1 million compared to $5.0 million for the three months ended March 31, 2025. 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 $5.1 million increase in other revenues is primarily due to an increase in the Southern Louisiana natural gas price average per Million British Thermal Unit ("MMBtu") of 52% offset partially by a decrease in natural gas sales volumes of 7% compared to the prior year comparable period and a loss on mark-to-market gas hedges of $2.2 million which was included in the prior year comparable period.

Current wording

Other revenues for the three months ended June 30, 2026 were $6.1 million compared to $9.0 million for the three months ended June 30, 2025. 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 $2.9 million decrease in other revenues was primarily due to the prior year comparable period including a gain on mark-to-market gas hedges of $1.8 million. The decrease was also due to a decrease in the Southern Louisiana natural gas price average per Million British Thermal Unit ("MMBtu") of 14% and a decrease in natural gas sales volumes of 1%.

Previous wording

Cost of sales was $290.4 million, or 63.3% of total revenues, for the three months ended March 31, 2026, compared to $245.7 million, or 81.9% of total revenues for the three months ended March 31, 2025. The $44.7 million increase is primarily driven by a $93.3 million increase due to a 753 thousand metric ton increase in steelmaking coal sales volume primarily driven by coal sales from the Blue Creek mine offset partially by a $48.6 million decrease due to a $17.85 per metric ton decrease in cash cost of sales per metric ton due to the sales mix of Blue Creek coal with its inherent lower cost structure, a benefit from the 45X Credit of $8.4 million, our disciplined approach to cost control, an increase in tons produced. For the three months ended March 31, 2026, cost of production represented 64% of cost of sales and transportation and royalties accounted for approximately 39% compared to cost of production of 66% and transportation and royalties of 34% for the three months ended March 31, 2025.

Current wording

Cost of sales was $340.0 million, or 66.7% of total revenues, for the three months ended June 30, 2026, compared to $226.4 million, or 76.1% of total revenues for the three months ended June 30, 2025. The $113.6 million increase was primarily driven by a $145.2 million increase due to a 1,302 thousand metric ton increase in steelmaking coal sales volume primarily driven by coal sales from the Blue Creek mine offset partially by a $31.6 million decrease due to a $9.54 per metric ton decrease in cash cost of sales per metric ton due to the sales mix of Blue Creek coal with its inherent lower cost structure, a benefit from the 45X Credit of $9.7 million, our disciplined approach to cost control and an increase in tons produced. For the three months ended June 30, 2026, cost of production represented 58% of cost of sales and transportation and royalties accounted for approximately 42% compared to cost of production of 67% and transportation and royalties of 33% for the three months ended June 30, 2025.

Previous wording

Cost of other revenues was $8.3 million or 1.8% of total revenues, for the three months ended March 31, 2026, compared to $7.9 million, or 2.6% of total revenues for three months ended March 31, 2025. The increase is primarily driven by higher gas compression costs offset partially by a 7% decrease in gas sales volumes.

Current wording

Cost of other revenues was $7.0 million or 1.4% of total revenues, for the three months ended June 30, 2026, compared to $8.2 million, or 2.8% of total revenues for the three months ended June 30, 2025. The decrease was primarily driven by lower gas compression costs and a 1% decrease in gas sales volumes.

Previous wording

Depreciation and depletion expenses were $52.3 million, or 11.4% of total revenues, for the three months ended March 31, 2026, compared to $45.3 million, or 15.1% of total revenues for the three months ended March 31, 2025. The $7.0 million increase in depreciation and depletion is primarily driven by an increase in additional assets placed into service at Blue Creek combined with a 38.2% increase in steelmaking coal sales volume as depreciation and depletion is first capitalized into coal inventory and relieved when the tons are sold.

Current wording

Depreciation and depletion expenses were $58.3 million, or 11.4% of total revenues, for the three months ended June 30, 2026, compared to $43.3 million, or 14.5% of total revenues for the three months ended June 30, 2025. The $15.0 million increase in depreciation and depletion is primarily driven by an increase in additional assets placed into service at Blue Creek combined with a 64.7% increase in steelmaking coal sales volume as depreciation and depletion is first capitalized into coal inventory and relieved when the tons are sold.

Previous wording

Interest expense was $3.2 million, or 0.7% of total revenues, for the three months ended March 31, 2026, compared to interest expense of $2.1 million, or 0.7% of total revenues, for the three months ended March 31, 2025. The $1.1 million increase is due to an increase in interest on additional financing leases.

Current wording

Interest expense was $5.5 million, or 1.1% of total revenues, for the three months ended June 30, 2026, compared to interest expense of $2.9 million, or 1.0% of total revenues, for the three months ended June 30, 2025. The $2.6 million increase was due to an increase in interest on additional financing leases and imputed interest on the federal coal lease obligations.

Previous wording

Interest income was $2.6 million, or 0.6% of total revenues for the three months ended March 31, 2026, compared to $5.3 million, or 1.8% of total revenues for the three months ended March 31, 2025. The $2.7 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 $2.1 million, or 0.4% of total revenues for the three months ended June 30, 2026, compared to $5.1 million, or 1.7% of total revenues for the three months ended June 30, 2025. The $2.9 million decrease was primarily driven by a decrease in invested cash balances and lower rates of return earned on our investments.

Previous wording

For the three months ended March 31, 2026, we recognized an income tax expense of $6.4 million compared to income tax benefit of $6.0 million for the three months ended March 31, 2025. We estimated our annual effective tax rate and applied this effective tax rate to our year-to-date pretax income at the end of the interim reporting period. The $6.4 million income tax expense for the three months ended March 31, 2026, is driven by pre-tax income and depletion and Internal Revenue Code ("IRC") Section 250 Deduction: Foreign-Derived Intangible Income ("FDII") deductions. The prior year comparable period income tax benefit is driven by a pre-tax loss and a tax benefit related to depletion and FDII deductions.

Current wording

For the three months ended June 30, 2026, we recognized an income tax expense of $3.7 million compared to income tax expense of $4.3 million for the three months ended June 30, 2025. We estimated our annual effective tax rate and applied this effective tax rate to our year-to-date pretax income at the end of the interim reporting period. The $3.7 million income tax expense for the three months ended June 30, 2026, was driven by pre-tax income and depletion and Internal Revenue Code ("IRC") Section 250 Deduction: Foreign-Derived Deduction Eligible Income ("FDDEI") deductions. The prior year comparable period income tax expense was driven by a pre-tax income, depletion and FDII deductions.

Previous wording

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 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 wording

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 take effect for taxable years beginning after December 31, 2025.

Previous wording

Selling, general and administrative expenses were $28.2 million, or 6.1% of total revenues, for the three months ended March 31, 2026, compared to $18.4 million, or 6.1% of total revenues, for the three months ended March 31, 2025. The $9.8 million increase in selling, general and administrative expenses for the period is primarily due to an increase in employee related expenses, including stock compensation expense.

Current wording

Selling, general and administrative expenses were $38.0 million, or 3.9% of total revenues, for the six months ended June 30, 2026, compared to $30.4 million, or 5.1% of total revenues, for the six months ended June 30, 2025. The $7.6 million increase in selling, general and administrative expenses for the period was primarily due to an increase in employee related expenses offset partially by a gain of $2.4 million related to recoveries received in connection with the Walter Energy bankruptcy proceedings.

Previous wording

Going forward, we plan to 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.

Current wording

Going forward, we plan to 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, stock repurchases, 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

Previous wording

Our total liquidity as of March 31, 2026 was $363.7 million, consisting of cash and cash equivalents of $202.6 million, short-term investments of $20.6 million, which is net of $10.0 million posted as collateral and $140.5 million available under our Amended ABL Facility. As of March 31, 2026, 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.

Current wording

Our total liquidity as of June 30, 2026 was $452.9 million, consisting of cash and cash equivalents of $302.3 million, short-term investments of $10.1 million, which is net of $10.1 million posted as collateral and $140.5 million available under our Amended ABL Facility. As of June 30, 2026, 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 assumed all of the black lung liabilities of Walter Energy and its U.S. subsidiaries. We are self-insured for these black lung liabilities and have posted $18.6 million in surety bonds and $10.0 million of collateral recognized as short-term investments in addition to maintaining a black lung trust of $1.0 million that was acquired from Walter Energy. We received a letter from the Division of Coal Mine Workers' Compensation ("DCWMC") on February 21, 2020, under its new process for self-insurance renewals, which would require us to increase the amount of collateral posted to $39.8 million, but we appealed such increase. We received another letter from the DCWMC on December 8, 2021 requesting additional information to support our appeal of the collateral requested by the DOL. On February 9, 2022, the DCWMC held a conference call with representatives from the Company related to our appeal. On July 12, 2022, we received a decision on our appeal from the DCWMC lowering the amount of collateral required to be posted from $39.8 million to $28.0 million. We appealed this decision.

Current wording

We assumed all of the black lung liabilities of Walter Energy and its U.S. subsidiaries. We are self-insured for these black lung liabilities and have posted $18.6 million in surety bonds and $10.1 million of collateral recognized as short-term investments in addition to maintaining a black lung trust of $0.7 million that was acquired from Walter Energy. We received a letter from the Division of Coal Mine Workers' Compensation ("DCWMC") on February 21, 2020, under its new process for self-insurance renewals, which would require us to increase the amount of collateral posted to $39.8 million, but we appealed such increase. We received another letter from the DCWMC on December 8, 2021 requesting additional information to support our appeal of the collateral requested by the DOL. On February 9, 2022, the DCWMC held a conference call with representatives from the Company related to our appeal. On July 12, 2022, we received a decision on our appeal from the DCWMC lowering the amount of collateral required to be posted from $39.8 million to $28.0 million. We appealed this decision.

Previous wording

Cash balances were $202.6 million and $300.0 million at March 31, 2026 and December 31, 2025, respectively.

Current wording

Cash and cash equivalent balances were $302.3 million and $300.0 million at June 30, 2026 and December 31, 2025, respectively.

Previous wording

Net cash used in operating activities was $11.7 million for the three months ended March 31, 2026, and was primarily attributed to a net income of $72.3 million adjusted for depreciation and depletion expense of $52.3 million, stock based compensation expense of $10.1 million, deferred income tax expense of $1.9 million, accretion of asset retirement obligations of $1.1 million, amortization of debt issuance costs and debt discount of $0.4 million and an increase in our net working capital of $145.8 million, primarily reflecting higher accounts receivable due to higher sales volumes and the timing of sales, higher inventories due to higher production and lower accrued expenses due to timing of payments.

Current wording

Net cash provided by operating activities was $120.6 million for the six months ended June 30, 2026, and was primarily attributed to a net income of $159.8 million adjusted for depreciation and depletion expense of $110.6 million, stock based compensation expense of $12.6 million, deferred income tax benefit of $6.4 million, accretion of asset retirement obligations of $2.2 million and amortization of debt issuance costs and debt discount of $0.8 million offset by an increase in our net working capital of $159.5 million. The increase in net working capital reflects higher accounts receivable due to higher sales volumes and the timing of sales, higher inventories due to higher production and lower accrued expenses due to timing of payments.

Previous wording

Net cash provided by operating activities was $10.9 million for the three months ended March 31, 2025, and was primarily attributed to a net loss of $8.2 million adjusted for depreciation and depletion expense of $45.3 million, stock based compensation expense of $8.1 million, deferred income tax benefit of $6.5 million, mark-to-market loss on gas hedges of $1.7 million, accretion of asset retirement obligations of $1.3 million, amortization of debt issuance costs and debt discount of $0.4 million, and an increase in our net working capital of $31.8 million. The increase in our working capital was primarily driven by increases in accounts receivable due to higher sales volumes and the timing of sales, lower accrued expenses and higher accounts payable.

Current wording

Net cash provided by operating activities was $48.5 million for the six months ended June 30, 2025, and was primarily attributed to a net loss of $2.6 million adjusted for depreciation and depletion expense of $88.5 million, stock based compensation expense of $10.1 million, deferred income tax benefit of $3.3 million, accretion of asset retirement obligations of $2.7 million, amortization of debt issuance costs and debt discount of $0.8 million and mark-to-market loss on gas hedges of $0.4 million offset by an increase in our net working capital of $45.3 million. The increase in our working capital was primarily driven by increases in accounts receivable due to higher sales volumes and the timing of sales, lower accrued expenses and higher accounts payable.

Previous wording

Net cash used in investing activities was $57.4 million and $77.8 million for the three months ended March 31, 2026 and 2025, respectively, primarily due to purchases of property, plant and equipment and mine development offset partially by proceeds from the sale of short term investments. Capital expenditures for the development of Blue Creek were $66.1 million and $55.3 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Net cash used in investing activities was $75.7 million and $172.1 million for the six months ended June 30, 2026 and 2025, respectively, primarily due to purchases of property, plant and equipment and mine development offset partially by proceeds from the sale of short term investments.

Previous wording

Net cash used in financing activities was $28.1 million for the three months ended March 31, 2026, primarily due to payments for taxes related to net share settlement of equity awards of $14.8 million, principal repayments of finance lease obligations of $8.6 million and payment of regular quarterly dividends of $4.7 million.

Current wording

Net cash used in financing activities was $42.3 million for the six months ended June 30, 2026, primarily due to principal repayments of finance lease obligations of $18.6 million, payments for taxes related to net share settlement of equity awards of $14.8 million and payment of regular quarterly dividends of $9.0 million.

Previous wording

Net cash provided by financing activities was $30.3 million for the three months ended March 31, 2025, primarily due to the receipt of proceeds on equipment financing for leases yet to commence of $48.8 million offset partially by payments for taxes related to net share settlement of equity awards of $9.4 million, payment of regular quarterly dividends of $5.2 million and principal repayments of finance lease obligations of $3.9 million.

Current wording

Net cash provided by financing activities was $15.5 million for the six months ended June 30, 2025, primarily due to the receipt of proceeds on equipment financing for leases yet to commence of $48.8 million offset partially by payments for taxes related to net share settlement of equity awards of $9.4 million, payment of regular quarterly dividends of $9.4 million and principal repayments of finance lease obligations of $14.5 million.

Previous wording

During the three months ended March 31, 2026, we paid $4.7 million of regular quarterly dividends under the Capital Allocation Policy.

Current wording

During the six months ended June 30, 2026, we paid $9.0 million of regular quarterly dividends under the Capital Allocation Policy.

Previous wording

Our capital expenditures were $80.1 million and $68.5 million for the three months ended March 31, 2026 and March 31, 2025, respectively. Capital expenditures for these periods are primarily related to investments required to develop Blue Creek as well as expenditures necessary to maintain our property, plant and equipment. Capital expenditures for the development of Blue Creek for the three months ended March 31, 2026 were $66.1 million and $1,022.9 million has been spent on this project to date. Our deferred mine development costs were $10.8 million for the three months ended March 31, 2025, and relate to the development of Blue Creek.

Current wording

Our capital expenditures were $109.1 million and $143.5 million for the six months ended June 30, 2026 and June 30, 2025, respectively. Capital expenditures for these periods are primarily related to investments required to finalize the development of Blue Creek as well as expenditures necessary to maintain our property, plant and equipment. Capital expenditures for the development of Blue Creek for the six months ended June 30, 2026 were $71.3 million and $1,028.1 million has been spent on this project to date. Our deferred mine development costs were $30.1 million for the six months ended June 30, 2025, and relate to the development of Blue Creek.

Previous wording

Our capital spending is expected to range from $155.0 million to $190.0 million for the full year 2026, consisting of sustaining capital expenditures of approximately $105.0 to $115.0 million and discretionary capital expenditures of approximately $50.0 to $75.0 million for the final construction of Blue Creek. Our sustaining capital expenditures include expenditures related to longwall operations and continuous miners.

Current wording

Our capital spending is expected to range from $155.0 million to $190.0 million for the full year 2026, consisting of sustaining capital expenditures of approximately $105.0 to $115.0 million and discretionary capital expenditures of $71.3 million invested for the final construction of Blue Creek. Our sustaining capital expenditures include expenditures related to longwall operations and continuous miners.