Financial Analysis

Note 8. Commitments and Contingencies Environmental Matters The Company is subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the construction and operation of its plants, mines and other facilities and with respect to remediating environmental conditions that may exist at its own and other properties. The Company believes it is in compliance with federal, state and local environmental laws and regulations. The Company accrues for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and can be reasonably estimated. As of March 31, 2026 and December 31, 2025, there were no accruals for environmental matters other than asset retirement obligations for mine reclamation. Miscellaneous Litigation From time to time, the Company is party to lawsuits arising in the ordinary course of business. The Company records costs relating to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on the Companys future results of operations cannot be predicted with certainty as any such effect depends on future results of operations and the amount and timing of the resolution of such matters. As of March 31, 2026 and December 31, 2025, there were no items accrued for miscellaneous litigation. Other Commitments and Contingencies The Company is party to various transportation and throughput agreements …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 5. Debt The Company's debt consisted of the following (in thousands): March 31, 2026 December 31, 2025 Weighted Average Interest Rate Final Maturity Senior Secured Notes $ 156,517 $ 156,517 7.875 % December 2028 ABL Borrowings Varies (1) September 2028 (2) Debt discount ( 2,096 ) ( 2,265 ) Total debt 154,421 154,252 Less: current debt Total long-term debt $ 154,421 $ 154,252 (1) Borrowings under the Amended ABL Facility bear interest at a rate equal to Secured Overnight Financing Rate (""SOFR"") ranging from 1.5 % to 2.0 % or an alternate base rate plus an applicable margin, which is determined based on the average availability of the commitments under the Amended ABL Facility, ranging from 0.5 % to 1.0 %. (2) The Amended ABL Facility extends the maturity date 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). Senior Secured Notes On December 6, 2021, the Company issued $ 350.0 million in aggregate principal amount of 7.875 % senior secured notes due 2028 (the Notes) at an initial price of 99.3 % of their face amount. The Notes were issued to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in transactions outside the United States in accordance with Regulation S under the Securities Act. The Company used the net proceeds of the offering of the Notes, together with cash on hand, t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 11. Fair Value of Financial Instruments During the three months ended March 31, 2026, there were no transfers between Level 1, Level 2 and Level 3. The Company uses quoted dealer prices for similar contracts in active over-the-counter markets for determining fair value of Level 2 liabilities. There were no changes to the valuation techniques used to measure liability fair values on a recurring basis during the three months ended March 31, 2026. The following methods and assumptions were used to estimate the fair value for which the fair value option was not elected: Cash, cash equivalents and restricted cash, short-term investments, receivables and trade accounts payable The carrying amounts reported in the Condensed Balance Sheets approximate fair value due to the short-term nature of these assets and liabilities. Debt The Company's outstanding debt is carried at cost. As of March 31, 2026 and December 31, 2025 , there were no borrowings outstanding under the Amended ABL Facility, with $ 140.5 million available, net of outstanding letters of credit of $ 2.5 million. The estimated fair value of the Notes as of March 31, 2026 was approximately $ 157.5 million based upon observable market data (Level 2). …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Note 4. Income Taxes For the three months ended March 31, 2026 and 2025, the Company estimated its annual effective tax rate and applied this effective tax rate to its year-to-date pretax income at the end of the interim reporting period. The tax effect of unusual or infrequently occurring items, including the effects of changes in tax laws or rates and changes in judgment about the realizability of deferred tax assets, are reported in the interim period in which they occur. For the three months ended March 31, 2026, the Company had income tax expense of $ 6.4 million. The effective income tax rate for the three months ended March 31, 2026 varied from the statutory federal income tax rate of 21 %, primarily due to tax benefits related to depletion and Internal Revenue Code (""IRC"") Section 250 Deduction: Foreign-Derived Intangible Income (""FDII""). For the three months ended March 31, 2025, the Company had an income tax benefit of $ 6.0 million, which also includes a benefit related to depletion and FDII. 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 changes include, among other things, an update to FDII to Foreign-Derived Deduction Eligible Income (""FDDEI""), which provide s for, among other things, a permanent deduction of 33.34 % of FDDEI, which reduces the statutory tax rate to 14 % of such income. T …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 6. Leases The Company enters into rental agreements for certain mining equipment that are for periods of 12 months or less, some of which include options to extend the leases. Leases that are for periods of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense on these agreements on a straight-line basis over the lease term. Additionally, the Company has certain finance leases for mining equipment that expire over various contractual periods. These leases have remaining lease terms of one to ten years and include an option to renew. Amortization expense for finance leases is included in depreciation and depletion expense. Supplemental balance sheet information related to leases was as follows (in thousands): March 31, 2026 December 31, 2025 Finance lease right-of-use assets, net (1) $ 136,477 $ 141,853 Finance lease liabilities Current 29,080 29,669 Noncurrent 50,476 54,492 Total finance lease liabilities $ 79,556 $ 84,161 Weighted average remaining lease term - finance leases (in months) 62.1 62.0 Weighted average discount rate - finance leases (2) 6.99 % 6.99 % (1) Finance lease right-of-use assets are recorded net of accumulated amortization of $ 73.9 million and $ 64.4 million and are included in property, plant and equipment, net in the Condensed Balance Sheets as of March 31, 2026 and the Balance Sheets as of December 31, 2025 , respectively. (2) When an implicit discount rate is not readily available in a lease, the Company …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Note 12. Segment Information The Company generates revenue primarily through the production of steelmaking coal for sale to the steel industry. The Company also generates ancillary revenues from the sale of natural gas extracted as a byproduct from the underground coal mines and royalty revenues from leased properties. The Company has one reportable segment identified as Mining which consists of: Mine No. 4, Mine No. 7 and the Blue Creek mi ne. The Company has determined that its natural gas and royalty businesses did not meet the criteria in ASC 280 to be considered as a reportable segment. Therefore, the Company has included their results in an all other category as a reconciling item to consolidated amounts. The Company does not allocate all of its assets, or its depreciation and depletion expense, selling, general and administrative expenses, transactions costs, interest income (expense), and income tax expense (benefit) by segment. The following tables include reconciliations of segment information to consolidated amounts (in thousands): For the three months ended March 31, 2026 2025 Revenues Mining $ 448,469 $ 294,933 All other 10,119 5,010 Total revenues $ 458,588 $ 299,943 Segment profit Revenue $ 448,469 $ 294,933 Cash cost of sales (1) 288,695 244,028 Other segment items (2) 1,723 1,707 Segment profit $ 158,051 $ 49,198 Transportation and royalties Mining $ 113,620 $ 82,617 All other Total transportation and royalties $ 113,620 $ 82,617 Assets Mining $ 2,670,391 $ 2 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Note 2. Summary of Significant Accounting Policies The Company's significant accounting policies are consistent with those disclosed in Note 2 to its audited financial statements included in the 2025 Annual Report. Use of Estimates The Company prepares its financial statements in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Due to the inherent uncertainty involved in making estimates, actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include short-term deposits and highly liquid investments that have original maturities of three months or less when purchased and are stated at cost, which approximates fair value. Restricted cash consists of cash that the Company is contractually obligated to maintain in a money market account as collateral for workers' compensation claims. Restricted cash is classified as noncurrent based on the nature of the restriction. Investments Instruments with maturities greater than three months, but less than twelve months, are included in short-term investments. The Company purchases fixed income securities and certificates of deposits with varying maturities that are classified as available for sale and are carried a …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Note 9. Stockholders' Equity Common Shares The Company is authorized to issue up to 140,000,000 common shares, $ 0.01 par value per share. Holders of common shares are entitled to receive dividends when authorized by the Board. Stock Repurchase Program On March 26, 2019, the Board approved the Company's second stock repurchase program (the New Stock Repurchase Program) that authorizes repurchases of up to an aggregate of $ 70.0 million of the Company's outstanding common stock. The Company fully exhausted its previous stock repurchase program (the ""First Stock Repurchase Program"") of $ 40.0 million of its outstanding common stock. The New Stock Repurchase Program does not require the Company to repurchase a specific number of shares or have an expiration date. The New Stock Repurchase Program may be suspended or discontinued by the Board at any time without prior notice. Under the New Stock Repurchase Program, the Company may repurchase shares of its common stock from time to time, in amounts, at prices and at such times as the Company deems appropriate, subject to market and industry conditions, share price, regulatory requirements and other considerations as determined from time to time by the Company. The Companys repurchases may be executed using open market purchases or privately negotiated transactions in accordance with applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act, and repurchases may be executed pursuant to Rule 10b5-1 under …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing