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Item 5. Market for Registrant’s Common Equity

2025-02-28 compared with 2024-02-26 · 199 added, 271 removed, 386 unchanged (55% of the section changed)

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Repurchase of Common Stock

The following table summarizes information about shares of common stock that were repurchased during the fourth quarter of 2023.

Total Number of Shares Purchased (1)

Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)

The Company did not repurchase any shares of common stock during the fourth quarter of 2024.

The following table reflects the remaining amount available for repurchases pursuant to the Company’s common share repurchase programs:

Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)

Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (In thousands) (1)(2)(3)

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December 1, 2024 through December 31, 2024 — $ — — $ 468,835

521,003 498,874

(1) Includes 22,129 common shares repurchased from employees to satisfy the employees’ statutory tax withholdings upon the vesting of stock grants.

Shares that are repurchased to satisfy the employees’ statutory tax withholdings are recorded in treasury stock at cost.

(2) On February 21, 2023 and October 31, 2023, the Board approved increases to the existing common share repurchase program adopted March 4, 2022, bringing the total authorization to repurchase the Company’s stock to $1.2 billion and $1.5 billion, respectively.

(1) The total authorization to repurchase the Company’s stock under the existing common share repurchase program adopted by

the Board on March 4, 2022 is $1.5 billion.

Refer to Note 7 for additional information.

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The Company suspended this stock repurchase plan on October 1, 2019 and does not currently intend to make further repurchases under it.

(4) We cannot estimate the number of shares that will be repurchased because decisions to purchase are subject to market and business conditions, levels of available liquidity, our cash needs, restrictions under agreements or obligations, legal or regulatory requirements or restrictions, and other relevant factors.

(3) The Company cannot estimate the number of shares that will be repurchased because decisions to purchase are subject to market and business conditions, levels of available liquidity, our cash needs, restrictions under agreements or obligations, legal or regulatory requirements or restrictions, and other relevant factors.

This amount does not include stock repurchase related fees and excise taxes.

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Market Overview

Throughout 2023, metallurgical coal markets generally showed strength with periods of volatility in the face of economic pressures, geopolitical uncertainty, and global recessionary fears.

Macroeconomic conditions around the world remain inconsistent, with some economies, like the United States, exhibiting continued resilience to these external pressures, while others, like the European Union, having experienced a significant downturn.

While central bankers in the United States and Europe are expected to lower interest rates within the 2024 calendar year in response to easing inflation, uncertainty remains regarding when those actions may be taken and how quickly they may impact overall economic conditions.

Organizations such as the International Monetary Fund and The World Bank have issued muted expectations about global growth prospects for 2024-2025, citing a slower-than-historical-average pace of expansion and downside risks related to geopolitical shocks, supply disruptions, or prolonged tight monetary conditions.

Geopolitical strife—namely the Russian war in Ukraine and the violence in the Middle East—has impacted coal markets by upending natural trade flows and, at times, causing shipping delays due to violence stemming from these conflicts.

Continued volatility in metallurgical markets is possible as these macroeconomic and geopolitical circumstances evolve.

Metallurgical coal indices ended the fourth quarter within a few percentage points of where they started in October 2023, with the U.S.

East Coast High Volatile B index representing the largest move, an increase of 6%, of the four indices Alpha closely monitors.

The Australian Premium Low Volatile index decreased from $333.00 per metric ton at the start of the fourth quarter to $323.75 metric ton at the end of December.

East Coast Low Volatile index increased from $258.00 per metric ton at the beginning of October to $268.00 per metric ton at the end of December.

East Coast High Volatile A index moved from $288.00 per metric ton at the start of the fourth quarter to $281.00 per metric ton at quarter close, and the U.S.

East Coast High Volatile B index increased from $238.00 per metric ton to $252.00 per metric ton at the end of the year.

Since then, all four indices have softened.

The Australian Premium Low Volatile declined from its quarter-close level to $315.00 per metric ton on February 15, 2024.

East Coast indices of Low Volatile, High Volatile A and High Volatile B measured $265.00, $262.00, and $221.00 per ton, respectively, as of the same date.

The world manufacturing Purchasing Managers’ Index (“PMI”) increased to 50.0 in January 2024, up from 49.0 in December 2023 and breaking a 16-month stretch of below-50.0 contractionary levels.

India, an important market for Alpha, recorded January 2024 PMI of 56.5, up from 54.9 in December 2023.

PMI data for the United States rose to 50.7 in January 2024, up from a December 2023 level of 47.9, marking the strongest improvement in operating conditions since September 2022.

Brazilian PMI also progressed from its December 2023 level of 48.4, with the January 2024 PMI of 52.8 representing an 18-month high for the country’s manufacturing economy.

China’s headline PMI was unchanged from December 2023 to January 2024, coming in at 50.8.

While still firmly in contractionary territory, Europe’s PMI data show positive momentum, with the January 2024 manufacturing PMI hitting a 10-month high of 46.6, up significantly from 44.4 in December 2023.

As compiled by the World Steel Association (“WSA”), December 2023 global crude steel production of 135.7 million metric tons from 71 countries represented a decrease of 5.3% in comparison to the year-ago period.

The largest steel-producing country, China, produced 67.4 million metric tons in December 2023, 14.9% less than it produced in December 2022.

The next largest producer, India, posted an increased December 2023 production level of 12.1 million metric tons, up 9.5% from its December 2022 level.

Crude steel production in the United States of 6.8 million metric tons in December 2023 represented an

increase of 7.6% from the year-ago period.

South Korea produced 5.4 million metrics tons of steel in December 2023, an increase of 2.7% over production from December 2022.

Turkey and Iran produced 3.2 million metric tons and 2.9 million metric tons in December 2023, which represented the two largest year-over-year percentage increases (21.2% and 12.1%, respectively) among the top ten steel-producing countries.

In terms of regional analysis, December 2023 crude steel production represented an increase against the year-ago period for all reporting regions but the Asia and Oceania region, which contains both India and China, and South America.

Asia and Oceania produced 96.4 million metric tons of crude steel for the month, a 9.7% decrease from December 2022, while South America’s 3.2 million metric tons was a 3.2% decrease from December 2022.

Metallurgical coal markets ended 2024 at sharply lower levels than they began the calendar year, with each of Alpha’s followed indices experiencing at least a 30% drop.

For example, the Australian Premium Low Vol index declined by 40% from the start of the year until the end.

These downward movements in metallurgical coal indices were primarily due to a decline in steel demand, which was influenced by uncertainty in geopolitics and economic conditions across the globe.

With numerous elections having been held and leaders elected within 2024, markets are now attempting to digest the anticipated future actions and governing priorities of these recently installed governments.

For example, the new U.S.

Administration has expressed its commitment to imposing tariffs on certain imported goods and materials.

If new tariffs are imposed and trade wars occur, these circumstances will likely impact natural coal trade flows and the cost of materials for coal producers.

Many of the factors that negatively influenced metallurgical coal markets, such as depressed steel demand, continue to loom over the current pricing environment.

Additional uncertainty around fiscal policies, shifting geopolitical priorities and trade practices, as well as the overall economic health of the major coal-producing and coal-buying regions of the world will continue to influence metallurgical coal pricing.

Absent an increase in steel demand and a more certain geopolitical and economic backdrop, challenging coal market conditions are expected to continue in the coming months.

Metallurgical coal prices experienced limited movement throughout the fourth quarter of 2024.

Of the four indices Alpha closely monitors, the Australian Premium Low Volatile index represents the largest move, a reduction of 4%.

The Australian Premium Low Volatile index fell from $204.75 per metric ton on October 1, 2024, to $196.50 per metric ton on December 31, 2024.

East Coast Low Volatile index decreased slightly from $189.00 per metric ton at the beginning of the quarter to $188.00 per metric ton at quarter end.

East Coast High Volatile A index fell from $184.00 per metric ton in October to $183.00 per metric ton at the end of December 2024, and the U.S.

East Coast High Volatile B index opened and closed the quarter at $171.00 per metric ton.

Since then, the Australian Premium Low Volatile decreased from quarter-close levels to $190.00 per metric ton, as of February 17, 2025.

East Coast Low Volatile, High Volatile A, and High Volatile B indices measured $187.00, $185.00, and $171.00 per ton, respectively, as of the same date.

The world manufacturing Purchasing Managers’ Index (“PMI”) showed signs of improvement in operating conditions for the first time in seven months, with January’s PMI of 50.1, up from December’s level of 49.6.

The United States’ PMI increased above the 50.0 neutral mark for the first time in seven months, at 51.2 in January from 49.4 in December.

India, one of Alpha’s key markets, remains firmly in expansionary territory with a January PMI of 57.7, an increase from 56.4 in December.

Brazil’s January PMI of 50.7, represents an upward move from December’s PMI of 50.4.

China’s PMI of 50.1 in January declined from its December level of 50.5.

Europe’s January PMI of 46.6, an eight-month high, up from December’s PMI of 45.1, remains in a contractionary environment.

According to the World Steel Association, (“WSA”), the December 2024 global crude steel production of 144.5 million metric tons from 71 countries represented an increase of 5.6% compared to December 2023.

China, the largest steel-producing country, recorded the largest year-over-year percentage increase in December production, with its 76.0 million metric tons being 11.8% higher than its December 2023 levels.

India’s steel production was 13.6 million metric tons in December 2024, up 9.5% from the year-ago period.

Japan’s 6.9 million metric tons of steel produced in December 2024 was down 1.1% compared to December 2023, and the United States produced 6.7 million metric tons of crude steel in December, a 2.4% drop year-over-year.

Of the top ten steel-producing countries, Iran posted the most significant percentage drop, as its 2.6 million metric tons of

December 2024 production represented 8.2% less than the country produced a year ago.

Regionally, in December 2024, crude steel production in the Asia and Oceania region, which contains both India and China, was 106.3 million metric tons, an increase of 9.0% compared to its December 2023 levels.

The European Union’s December 2024 crude steel production of 9.6 million metric tons represented an increase of 7.2% from its December 2023 levels.

North America produced 8.8 million metric tons in December, 4.3% less than the year-ago period.

The American Iron and Steel Institute’s capacity utilization rate for U.S.

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This is lower than the year-ago period when the capacity utilization rate was 77.7%.

In the seaborne thermal market, the API2 index started the fourth quarter at $124.85 per metric ton and decreased to $103.85 per metric ton at the end of December 2023.

In the seaborne thermal market, the API2 index was $118.25 per metric ton on October 1, 2024, and decreased to $113.15 per metric ton on December 31, 2024.

Business Overview

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We operate high-quality, cost-competitive coal mines across the CAPP coal basin.

As of December 31, 2023, our operations consisted of twenty-two active mines and nine coal preparation and load-out facilities, with approximately 4,160 employees.

As of December 31, 2024, our operations consisted of twenty active mines and eight active coal preparation and load-out facilities, with approximately 4,040 employees.

We produce, process, and sell met coal and thermal coal.

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Sales of thermal coal were 1.2 million tons and 1.8 million tons, respectively, and accounted for approximately 7% and 10%, respectively, of our coal sales volume.

Our sales of met coal were made primarily to steel companies in the northeastern and midwestern regions of the United States and in several countries in Asia, Europe, and the Americas.

Our sales of met coal were made primarily in several countries in Asia, Europe, and the Americas and to steel companies in the northeastern and midwestern regions of the United States.

Our sales of thermal coal were made primarily to large utilities and industrial customers both in the United States and across the world.

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We also record freight and handling fulfillment revenue within coal revenues for freight and handling services provided in delivering coal to certain customers, which are a component of the contractual selling price.

As of December 31, 2023, we have one reportable segment:

As of December 31, 2024, we have one reportable operating segment:

Our Met segment operations consist of high-quality met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch.

The coal produced by our Met segment operations is predominantly met coal with some amounts of thermal coal being produced as a byproduct of mining.

In addition to the one reportable segment, our All Other category includes general corporate overhead and corporate assets and liabilities, our former CAPP - Thermal operations consisting of one preparation plant in West Virginia, and the elimination of certain intercompany activity, as well as expenses associated with certain idled/closed mines.

The coal produced by our Met segment operations is predominantly met coal with small amounts of thermal coal being produced as a byproduct of mining.

The All Other category included our former CAPP - Thermal operating segment which was comprised of our mining complexes which produced, as a primary product, thermal quality coal.

Refer to Notes 21 and 22 for additional disclosures on our reportable segment, geographic areas, and export coal revenue information.

As discussed in the “Market Overview” presented above, monetary tightening in the United States and Europe, weak economic conditions across the globe, and geopolitical unrest from the ongoing war between Russia and Ukraine and violence in the Middle East influenced metallurgical coal markets in 2023.

Our year ended December 31, 2023 results of operations were impacted by volatility in coal indices stemming from these factors.

As discussed in the “Market Overview” presented above, metallurgical coal prices remain at lower levels than in recent years due to weak global steel demand which has been influenced by a slowdown in manufacturing activity, economic pressures, and geopolitical uncertainty.

Our results of operations for the year ended December 31, 2024 were impacted by these factors.

In November 2024, the Checkmate Powellton mine within the Elk Run mining complex was temporarily idled.

This decision was driven by the recent decreases in coal prices, discussed above, and the current economic characteristics of the mine.

From its idled state the mine could be returned to production if circumstances warrant.

We will continue to evaluate market conditions and expect to adjust our operations accordingly.

Other Business Development s

During 2023, development was completed and production began at our Rolling Thunder and Checkmate Powellton mines within our Power Mountain and Elk Run mining complexes, respectively, which produce High-Vol.

In 2024, we began the development phase for our new Kingston Wildcat underground mine located in Fayette County, West Virginia.

The mine, which will produce a Low-Vol.

quality met coal, is expected to begin production late in 2025.

In 2023, we completed development of and production began at our Rolling Thunder and Checkmate Powellton mines within our Power Mountain and Elk Run mining complexes, respectively, which produce High-Vol.

B quality met coal from the Powellton coal seam.

In August 2023, we completed our transition to a pure-play metallurgical producer with the closure of Slabcamp, which was our last remaining thermal mine.

In August 2023, we completed our transition to a pure-play metallurgical producer with the closure of Slabcamp, our last remaining thermal coal mine.

In the first quarter of 2023, we completed a series of transactions to acquire a number of coal trucks and related equipment and facilities to secure trucking services for our operations.

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As of February 20, 2025, we had sales commitments for 2025 as follows:

Tons % Priced Average Realized Price per Ton

Tons % Priced Average Committed Realized Price per Ton

Met - Domestic $152.94

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Coal sales contracts are priced according to conventions specific to the market into which such coal is to be sold.

Our domestic sales contracts are typically priced free on board (“FOB”) at our mines and on a short

Our international sales contracts are typically priced FOB at the shipping port from which such coal is delivered and on a metric ton basis.

Our domestic sales contracts are typically priced free on board (“FOB”) at our mines and on a short ton basis.

Our international sales contracts are typically priced FOB at the shipping port from which such coal is

delivered and on a metric ton basis.

Accordingly, for international sales contracts, we typically bear the cost of transportation from our mines to the applicable outbound shipping port, and our coal sales realization per ton calculation reflects the conversion of such tonnage from metric tons into short tons, as well as the elimination of the freight and handling fulfillment component of coal sales revenue.

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Our results of operations for the years ended December 31, 2024 and 2023 are discussed in these “Results of Operations” presented below.

For comparability purposes, certain immaterial segment information for the year ended December 31, 2023 has been recast to conform to the current year presentation.

Refer to Note 22.

Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023

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Coal revenues decreased $510.1 million, or 14.8%, for the year ended December 31, 2024 compared to the prior year period.

The decrease was primarily due to a 20.7% reduction in average coal sales realization within our Met segment as pricing moderated from the higher levels experienced during the prior year, partially offset by a 6.9% increase in coal sales volumes.

The elevated coal sales pricing environment in the prior year period was driven by increased coal demand, resulting from improved economic activity, coupled with limited supply response.

Coal revenues within our All Other category also declined due to the closure of Slabcamp, which was our last remaining thermal mine, in August of 2023.

The decrease was due to a $460.1 million, or 13.5%, reduction in coal revenues within our Met segment coupled with a $50.0 million reduction in All Other coal revenues due to the cessation of mining at our last thermal coal mine in August of 2023.

The reduction in Met segment coal revenues was attributable to a 16.5% decrease in coal sales realization per ton as pricing decreased from the prior year period, partially offset by a 3.5% increase in coal sales volumes.

Refer to the “Non-GAAP Coal revenues” section below for further detail on coal revenues for the year ended December 31, 2024 compared to the prior year period.

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Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) 74,000 82,390 $ (8,390) (10.2) %

Total other operating loss (income):

Mark-to-market adjustment for acquisition-related obligations — 8,880 (8,880) (100.0) %

Other (income) expense (1,088) 3,363 (4,451) (132.4) %

Other operating loss (income) 4,749 (1,088) $ 5,837 536.5 %

Total costs and expenses $ 2,729,431 $ 2,608,332 $ 121,099 4.6 %

Cost of coal sales.

Cost of coal sales increased $70.2 million, or 3.1%, for the year ended December 31, 2023 compared to the prior year period as a result of increased costs due to inflationary pressure and increased levels of coal purchases partially offset by lower royalties, taxes, and freight and handling costs due to the lower coal pricing environment.

Cost of coal sales increased $95.5 million, or 4.1%, for the year ended December 31, 2024 compared to the prior year period due to an increase in the average cost of coal sales per ton of 3.7%.

The increase in average cost of coal sales per ton was primarily related to an increase in freight and handling costs due to a relatively higher percentage of export sales resulting in higher rail, transloading, and ocean vessel freight costs, coupled with inflationary pressure as well as start up related and idled costs associated with our Checkmate Powellton mine, partially offset by reductions in royalties and taxes as a result of a lower coal pricing environment.

Depreciation, depletion and amortization.

Depreciation, depletion and amortization increased $30.5 million, or 22.3%, for the year ended December 31, 2024 compared to the prior year period.

The increase was primarily due to an increase in capital expenditures.

Amortization of acquired intangibles, net.

Amortization of acquired intangibles, net decreased $11.0 million, or 56.3%, for the year ended December 31, 2023 compared to the prior year period.

The decrease was primarily driven by accelerated prior period amortization of certain acquired mine permits as a result of an update to the estimated life of the associated mines.

The increase was primarily due to an increase in assets placed in service during 2023 and 2024.

Selling, general and administrative.

Selling, general and administrative expenses increased $10.8 million, or 15.0%, for the year ended December 31, 2023 compared to the prior year period.

This increase was primarily related to increases of $10.8 million in stock compensation expense and $1.7 million in wages and benefits expense, partially offset by decreases of $2.0 million in professional services fees and $0.7 million in incentive pay.

Mark-to-market adjustment for acquisition-related obligations.

The mark-to-market adjustment for acquisition-related obligations was $8.9 million for the year ended December 31, 2022.

As the royalty period for our Contingent Revenue Obligation ended on December 31, 2022, there was no mark-to-market adjustment recorded during the year ended December 31, 2023.

Refer to Notes 14 and 16 for additional information on the Contingent Revenue Obligation.

Other (income) expense .

Other income increased $4.5 million, or 132.4%, for the year ended December 31, 2023 compared to the prior year period, primarily due to an increase in income on sale of assets in the current period.

Selling, general and administrative expenses decreased $8.4 million, or 10.2%, for the year ended December 31, 2024 compared to the prior year period.

This decrease was primarily related to decreases of $8.7 million in stock compensation expense and $3.1 million in incentive pay, partially offset by an increase of $1.5 million in severance pay.

Other operating loss (income) .

Other operating loss increased $5.8 million, or 536.5%, for the year ended December 31, 2024 compared to the prior year period, primarily due to a decrease in income on sale of assets in the current period.

Total Other Expense, Net

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Total other expense, net $ 17,104 $ 17,626 $ (522) (3.0) %

Total other expense, net decreased $8.5 million, or 32.5%, for the year ended December 31, 2023 compared to the prior year period, primarily related to decreased interest expense due to a reduction in outstanding debt and increased interest income due to rising interest rates, partially offset by an increase in net periodic benefit costs for pension obligations.

Income Tax Expense

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Income tax expense of $23.2 million was recorded for the year ended December 31, 2024 on income before income taxes of $210.8 million.

The effective tax rate differs from the federal statutory rate of 21% primarily due to favorable permanent differences for the percentage depletion allowance and the foreign-derived intangible income deduction.

The effective tax rate of 11.0% differs from the federal statutory rate of 21% primarily due to

the permanent impact of stock compensation, percentage depletion, and foreign-derived intangible income deductions, partially offset by the impact of non-deductible compensation and state income taxes, net of federal impact.

Income tax expense of $123.5 million was recorded for the year ended December 31, 2023 on income before income taxes of $845.5 million.

The effective tax rate differs from the federal statutory rate of 21% primarily due to the decrease in the valuation allowance and favorable permanent differences for the percentage depletion allowance and the foreign-derived intangible income deduction.

The effective tax rate of 14.6% differs from the federal statutory rate of 21% primarily due to the permanent impact of percentage depletion, foreign-derived intangible income, and stock compensation deductions, partially offset by the impact of non-deductible compensation and state income taxes, net of federal impact.

Refer to Note 16 for additional information.

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GAAP” or “GAAP”).

Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “non-GAAP coal revenues,” “non-GAAP cost of coal sales,” and “non-GAAP coal margin.” We use Adjusted EBITDA to measure the operating performance of our segments and allocate resources to the segments.

Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP.

Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “non-GAAP coal revenues,” “non-GAAP cost of coal sales,” and “non-GAAP coal margin.” In addition to net income, we use Adjusted EBITDA to measure the operating performance of our reportable segment.

Adjusted EBITDA does not purport to be an alternative to net income as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP.

Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies.

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The following tables summarize certain financial information relating to our coal operations for the years ended December 31, 2024 and 2023:

Year Ended December 31, 2023

(In thousands, except for per ton data) Met All Other Consolidated

Coal revenues $ 3,406,643 $ 49,987 $ 3,456,630

Freight and handling fulfillment revenues (438,783) (227) (439,010)

Non-GAAP Coal revenues $ 2,967,860 $ 49,760 $ 3,017,620

Tons sold 16,543 529 17,072

Non-GAAP Coal sales realization per ton $ 179.40 $ 94.06 $ 176.76

Cost of coal sales (exclusive of items shown separately below) $ 2,303,129 $ 53,009 $ 2,356,138

Depreciation, depletion and amortization - production (1)

125,716 9,952 135,668

Accretion on asset retirement obligations 14,886 10,614 25,500

Amortization of acquired intangibles, net 8,523 — 8,523

Total Cost of coal sales $ 2,452,254 $ 73,575 $ 2,525,829

Freight and handling costs (438,783) (227) (439,010)

Depreciation, depletion and amortization - production (1)

(125,716) (9,952) (135,668)

Accretion on asset retirement obligations (14,886) (10,614) (25,500)

Amortization of acquired intangibles, net (8,523) — (8,523)

Idled and closed mine costs (16,983) (10,015) (26,998)

Non-GAAP Cost of coal sales $ 1,847,363 $ 42,767 $ 1,890,130

Tons sold 16,543 529 17,072

Non-GAAP Cost of coal sales per ton $ 111.67 $ 80.84 $ 110.72

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

Year Ended December 31, 2023

(In thousands, except for per ton data) Met All Other Consolidated

Coal revenues $ 3,406,643 $ 49,987 $ 3,456,630

Total Cost of coal sales (per table above) (2,452,254) (73,575) (2,525,829)

GAAP Coal margin $ 954,389 $ (23,588) $ 930,801

Tons sold 16,543 529 17,072

GAAP Coal margin per ton $ 57.69 $ (44.59) $ 54.52

GAAP Coal margin $ 954,389 $ (23,588) $ 930,801

Depreciation, depletion and amortization - production (1)

125,716 9,952 135,668

Accretion on asset retirement obligations 14,886 10,614 25,500

Amortization of acquired intangibles, net 8,523 — 8,523

Idled and closed mine costs 16,983 10,015 26,998

Non-GAAP Coal margin $ 1,120,497 $ 6,993 $ 1,127,490

Tons sold 16,543 529 17,072

Non-GAAP Coal margin per ton $ 67.73 $ 13.22 $ 66.04

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

Year Ended December 31, 2022

(In thousands, except for per ton data) Met All Other Consolidated

Year Ended December 31, Increase (Decrease)

(In thousands, except for per ton data) 2024 2023 $ or Tons %

Coal revenues $ 2,946,579 $ 3,456,630 $ (510,051) (14.8) %

Freight and handling fulfillment revenues (529,043) (20) (529,063)

Non-GAAP Coal revenues $ 3,489,472 $ 74,452 $ 3,563,924

Tons sold 15,478 900 16,378

Non-GAAP Coal sales realization per ton $ 225.45 $ 82.72 $ 217.60

Coal revenues - All Other — (49,987) 49,987 100.0 %

Coal revenues - Met $ 2,946,579 $ 3,406,643 $ (460,064) (13.5) %

Freight and handling fulfillment revenues - Met (503,306) (438,783) (64,523) (14.7) %

Non-GAAP Coal revenues - Met $ 2,443,273 $ 2,967,860 $ (524,587) (17.7) %

Non-GAAP Coal sales realization per ton - Met $ 142.66 $ 179.40 $ (36.74) (20.5) %

Cost of coal sales (exclusive of items shown separately below) $ 2,451,601 $ 2,356,138 $ 95,463 4.1 %

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Total Cost of coal sales $ 2,649,456 $ 2,525,829 $ 123,627 4.9 %

Freight and handling costs (529,043) (20) (529,063)

Depreciation, depletion and amortization - production (1)

(100,584) (6,036) (106,620)

Accretion on asset retirement obligations (13,590) (10,175) (23,765)

Amortization of acquired intangibles, net (15,699) (3,799) (19,498)

Idled and closed mine costs (21,646) (6,911) (28,557)

Non-GAAP Cost of coal sales $ 1,675,082 $ 53,267 $ 1,728,349

Tons sold 15,478 900 16,378

Non-GAAP Cost of coal sales per ton $ 108.22 $ 59.19 $ 105.53

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

Year Ended December 31, 2022

(In thousands, except for per ton data) Met All Other Consolidated

Coal revenues $ 4,018,515 $ 74,472 $ 4,092,987

Total Cost of coal sales (per table above) (2,355,644) (80,208) (2,435,852)

GAAP Coal margin $ 1,662,871 $ (5,736) $ 1,657,135

Tons sold 15,478 900 16,378

GAAP Coal margin per ton $ 107.43 $ (6.37) $ 101.18

GAAP Coal margin $ 1,662,871 $ (5,736) $ 1,657,135

Depreciation, depletion and amortization - production (1)

Total Cost of coal sales - All Other — (71,978) 71,978 100.0 %

Total Cost of coal sales - Met $ 2,649,456 $ 2,453,851 $ 195,605 8.0 %

Freight and handling costs - Met (503,306) (438,783) (64,523) (14.7) %

Depreciation, depletion and amortization - production - Met (1)

(166,105) (125,716) (40,389) (32.1) %

Accretion on asset retirement obligations 13,590 10,175 23,765

Amortization of acquired intangibles, net 15,699 3,799 19,498

Idled and closed mine costs 21,646 6,911 28,557

Non-GAAP Coal margin $ 1,814,390 $ 21,185 $ 1,835,575

Tons sold 15,478 900 16,378

Non-GAAP Coal margin per ton $ 117.22 $ 23.54 $ 112.08

Accretion on asset retirement obligations - Met (25,050) (14,886) (10,164) (68.3) %

Amortization of acquired intangibles, net - Met (6,700) (8,523) 1,823 21.4 %

Idled and closed mine costs - Met (29,868) (18,580) (11,288) (60.8) %

Non-GAAP Cost of coal sales - Met $ 1,918,427 $ 1,847,363 $ 71,064 3.8 %

Non-GAAP Cost of coal sales per ton - Met $ 112.01 $ 111.67 $ 0.34 0.3 %

GAAP Coal margin - Met $ 297,123 $ 952,792 $ (655,669) (68.8) %

GAAP Coal margin per ton - Met $ 17.35 $ 57.59 $ (40.24) (69.9) %

Non GAAP Coal margin - Met $ 524,846 $ 1,120,497 $ (595,651) (53.2) %

Non GAAP Coal margin per ton - Met $ 30.64 $ 67.73 $ (37.09) (54.8) %

Tons sold - Met 17,127 16,543 584 3.5 %

(1) Depreciation, depletion and amortization - production excludes the depreciation, depletion and amortization related to selling, general and administrative functions.

Year Ended December 31, Increase (Decrease)

(In thousands, except for per ton data) 2023 2022 $ or Tons %

Met segment operations:

Tons sold 16,543 15,478 1,065 6.9 %

Non-GAAP Coal revenues $ 2,967,860 $ 3,489,472 $ (521,612) (14.9) %

Non-GAAP Coal sales realization per ton $ 179.40 $ 225.45 $ (46.05) (20.4) %

All Other category:

Tons sold 529 900 (371) (41.2) %

Non-GAAP Coal revenues $ 49,760 $ 74,452 $ (24,692) (33.2) %

Non-GAAP Coal sales realization per ton $ 94.06 $ 82.72 $ 11.34 13.7 %

Non-GAAP Coal revenues.

Met segment operations non-GAAP coal revenues decreased $521.6 million, or 14.9%, for the year ended December 31, 2023 compared to the prior year period.

The decrease was primarily due to a $46.05, or 20.4%, reduction in average non-GAAP coal sales realization as prices moderated from the higher levels experienced during the prior year period, partially offset by a 6.9% increase in Met coal sales volumes.

The elevated coal sales pricing environment in the prior year period was driven by increased coal demand, resulting from improved economic activity, coupled with limited supply response.

All Other category non-GAAP coal revenues decreased $24.7 million, or 33.2%, for the year ended December 31, 2023 compared to the prior year period primarily due to a decline in coal sales volumes with the closure of Slabcamp, which was our last remaining thermal mine, in August of 2023.

Year Ended December 31, Increase (Decrease)

(In thousands, except for per ton data) 2023 2022 $ %

Met segment operations:

Non-GAAP Cost of coal sales $ 1,847,363 $ 1,675,082 $ 172,281 10.3 %

Non-GAAP Cost of coal sales per ton $ 111.67 $ 108.22 $ 3.45 3.2 %

Non-GAAP Coal margin per ton $ 67.73 $ 117.22 $ (49.49) (42.2) %

All Other category:

Non-GAAP Cost of coal sales $ 42,767 $ 53,267 $ (10,500) (19.7) %

Non-GAAP Cost of coal sales per ton $ 80.84 $ 59.19 $ 21.65 36.6 %

Non-GAAP Coal margin per ton $ 13.22 $ 23.54 $ (10.32) (43.8) %

Non-GAAP cost of coal sales.

Met segment operations non-GAAP cost of coal sales increased $172.3 million, or 10.3%, for the year ended December 31, 2023 compared to the prior year period.

The increase was primarily driven by a 6.9% increase in Met coal sales volumes combined with a 3.2% increase in average non-GAAP cost of coal sales per ton.

The increase in average non-GAAP cost of coal sales per ton was primarily driven by inflationary pressures and increased levels of coal purchases, partially offset by lower royalties and taxes as a result of a lower coal pricing environment.

All Other category non-GAAP cost of coal sales decreased $10.5 million, or 19.7%, for the year ended December 31, 2023 compared to the prior year period primarily due to the closure of Slabcamp, which was our last remaining thermal mine, in August of 2023.

Non-GAAP Coal revenues - Met.

Met segment non-GAAP coal revenues decreased $524.6 million, or 17.7%, for the year ended December 31, 2024 compared to the prior year period.

The decrease was primarily due to a $36.74 per ton, or 20.5%, reduction in non-GAAP coal sales realization per ton as weaker global steel demand reduced metallurgical coal pricing, partially offset by a 3.5% increase in coal sales volumes.

Non-GAAP Cost of coal sales - Met.

Met segment non-GAAP cost of coal sales increased $71.1 million, or 3.8%, for the year ended December 31, 2024 compared to the prior year period, primarily related to a 3.5% increase in coal sales volumes.

Average cost of coal sales per ton increased slightly by 0.3% as inflationary pressure and start up related and idled costs associated with our Checkmate Powellton mine were mostly offset by reductions in royalties and taxes as a result of a lower coal pricing environment.

Adjusted EBITDA

The following tables present a reconciliation of net income (loss) to Adjusted EBITDA for the years ended December 31, 2023 and 2022:

The following tables present a reconciliation of net income to Adjusted EBITDA for the years ended December 31, 2024 and 2023:

Year Ended December 31,

(In thousands) Met All Other Consolidated

Net income (loss) $ 938,495 $ (216,539) $ 721,956

(In thousands) 2024 2023

Net income $ 187,579 $ 721,956

Interest expense 3,811 6,923

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Adjusted EBITDA $ 407,752 $ 1,033,111

Year Ended December 31, 2022

(In thousands) Met All Other Consolidated

Net income (loss) $ 1,647,104 $ (198,559) $ 1,448,545

Interest expense 202 21,600 21,802

Interest income (541) (2,646) (3,187)

Income tax expense — 106,205 106,205

Depreciation, depletion and amortization 100,584 7,036 107,620

Non-cash stock compensation expense 4 7,480 7,484

Mark-to-market adjustment - acquisition-related obligations — 8,880 8,880

Accretion on asset retirement obligations 13,590 10,175 23,765

Amortization of acquired intangibles, net 15,699 3,799 19,498

Adjusted EBITDA $ 1,776,642 $ (36,030) $ 1,740,612

The following table summarizes Adjusted EBITDA for our Met segment operations and All Other category:

The following table summarizes Adjusted EBITDA:

Year Ended December 31, Increase (Decrease)

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Adjusted EBITDA $ 407,752 $ 1,033,111 $ (625,359) (60.5) %

Met operations $ 1,087,803 $ 1,776,642 $ (688,839) (38.8) %

All Other (54,692) (36,030) (18,662) (51.8) %

Total $ 1,033,111 $ 1,740,612 $ (707,501) (40.6) %

Met segment operations.

Adjusted EBITDA decreased $625.4 million, or 60.5%, for the year ended December 31, 2024 compared to the prior year period.

The decrease in Adjusted EBITDA was primarily driven by decreased coal margin and lower non-GAAP coal sales realization per ton in the current period.

All Other category.

Adjusted EBITDA decreased $18.7 million, or 51.8%, for the year ended December 31, 2023 compared to the prior year period.

The decrease in Adjusted EBITDA was primarily driven by a decrease in tons sold and decreased coal margin, partially offset by higher non-GAAP coal sales realization per ton in the current period.

Liquidity and Capital Resources

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Our primary capital resource requirements stem from the cost of our coal production and purchases, selling and administrative expenses, taxes, capital expenditures, debt service obligations, reclamation obligations, and collateral requirements.

As of December 31, 2024, we had $2.9 million of long-term indebtedness outstanding, net of current portion, and no indebtedness and $42.1 million letters of credit outstanding under our ABL Facility (as defined below).

We believe that cash on hand and cash generated from our operations will be sufficient to meet our working capital, anticipated capital expenditure, income tax, debt service, collateral and reclamation obligations requirements for the next 12 months and the reasonably foreseeable future.

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Increased scrutiny of ESG matters specific to the coal sector could negatively influence our ability to raise capital in the future and result in a reduced number of surety and insurance providers.

We may need to raise additional funds if market conditions deteriorate, if one or more of our assumptions prove to be incorrect or if we choose to expand our acquisition or development efforts or any other activity more rapidly than we presently anticipate and we may not be able to do so in a timely fashion, on terms acceptable to us, or at all.

fashion, on terms acceptable to us, or at all.

Additionally, we may elect to raise additional funds before we need them if the conditions for raising capital are favorable.

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Total liquidity $ 519,429

(1) Comprised of our unused commitments available under our New ABL Agreement after considering $60.9 million of outstanding LCs, subject to limitations described therein.

(1) Comprised of our unused commitments available under our ABL Agreement after considering $42.1 million of outstanding LCs, subject to limitations described therein.

Cash Collateral

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Letters of credit (1)

(1) The LCs outstanding are under the New ABL Agreement dated October 27, 2023.

(1) The LCs outstanding are under the ABL Agreement dated October 27, 2023.

Refer to Note 20, part (c) for further disclosures on off-balance sheet arrangements.

Debt Financing and Related Transactions

On October 27, 2023, we terminated our existing ABL Agreement and entered into a New ABL Agreement.

Under the New ABL Facility, we may borrow cash or obtain LCs, on a revolving basis, in an aggregate amount of up to $155.0 million.

On October 27, 2023, we terminated our existing ABL Agreement and entered into a new Credit Agreement (the “ABL Agreement”).

The ABL Agreement includes an asset-based revolving credit facility (the “ABL Facility”).

Under the ABL Facility, we may borrow cash or obtain LCs, on a revolving basis, in an aggregate amount of up to $155.0 million.

We may request an increase to the capacity of the facility of up to $75.0 million provided that $25.0 million may be solely for the purpose of providing additional availability to obtain cash collateralized LCs.

Availability under the New ABL Facility is calculated monthly and fluctuates based on qualifying amounts of coal inventory and trade accounts receivable (the “Borrowing Base”).

Generally, under the terms of the New ABL Facility, to the extent outstanding borrowings and LC’s exceed the Borrowing Base, the specified amount of cash would be restricted and used to collateralize any excess outstanding amounts.

The New ABL Facility matures on October 27, 2027.

Availability under the ABL Facility is calculated monthly and fluctuates based on qualifying amounts of coal inventory and trade accounts receivable (the “Borrowing Base”).

Generally, under the terms of the ABL Facility, to the extent outstanding borrowings and LC’s exceed the Borrowing Base, the specified amount of cash would be restricted and used to collateralize any excess outstanding amounts.

The ABL Facility matures on October 27, 2027.

During the fourth quarter of 2024, in connection with our routine surety program review and negotiations, we received a reduction of $15.0 million in collateral requirements under the ABL Facility related to our insured high-deductible workers compensation and black lung obligations.

These collateral releases increased our availability under the ABL Facility and thus our financial liquidity.

Refer to Note 13 for additional disclosures on long-term debt.

Acquisition-Related Obligations

During the first quarter of 2023, we paid the final calculated payment pursuant to terms of the Contingent Revenue Obligation.

At December 31, 2023, we had no acquisition-related obligations outstanding.

Refer to Note 14 for additional disclosures on acquisition-related obligations.

Capital Requirements

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Total $ 279,775 $ 29,216 $ 18,733 $ 16,444 $ 15,964 $ 138,898 $ 499,030

(1) Includes contractual commitments related to the purchase of equipment, diesel fuel, and electricity as well as for rail freight and export terminal costs, including approximately $48.4 million in 2024 for expected DTA funding.

(1) Includes contractual commitments related to capital expenditures and the purchase of diesel fuel, as well as rail freight and export terminal costs, including approximately $48.4 million in 2025 for expected DTA funding.

See below for further discussion.

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Business Updates

On August 3, 2023, S&P Global Ratings upgraded its issuer credit rating on the Company to B+ from B based on the strength of our balance sheet.

On December 5, 2024, S&P Global Ratings upgraded its issuer credit rating on the Company to BB- from B+ based on the strength of our balance sheet.

The rating outlook was noted as stable.

On November 6, 2023, S&P Global Ratings affirmed our B+ issuer credit rating and stable rating outlook on the New ABL Facility.

On July 18, 2023, Moody’s Investors Service upgraded our Corporate Family Rating to B1 from B2, upgraded our Probability of Default Rating to B1-PD from B2-PD, and affirmed our B1 rating on the ABL Facility.

Our Speculative Grade Liquidity Rating remained unchanged at SGL-2.

The rating outlook was revised to stable from positive.

On November 3, 2023, Moody’s Investors Service maintained our B1 Corporate Family Rating, B1-PD Probability of Default Rating, and SGL-2 Speculative Grade Liquidity Rating, and affirmed our B1 rating on the New ABL Facility.

Should we receive any negative outlook ratings in the future, such negative outlook ratings would result in potential liquidity risks for us, including the risks of declines in our stock value, declines in our cash and cash equivalents, less availability and higher costs of additional credit, and requests for additional collateral by surety providers.

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DTA provides us with the ability to fulfill a broad range of customer coal quality requirements through coal blending, while also providing storage capacity and transportation flexibility.

DTA is in need of capital investment to maximize functionality and minimize downtime due to mechanical issues.

DTA needs capital investment to maximize functionality and minimize downtime due to mechanical issues.

Under the terms of our partnership related agreements with respect to our investment in DTA, we are required to fund our proportionate share of DTA’s ongoing operating and capital costs.

Beyond our share of routine operating costs, we expect we will invest up to an incremental $25.0 million per year for infrastructure and equipment upgrades at DTA over the next 6 years.

Our 2024 funding of DTA (including routine operating and capital costs and infrastructure and equipment upgrades) is expected to total approximately $48.4 million.

Beyond our share of routine operating costs, we expect we will invest an average of approximately $27.0 million per year for infrastructure and equipment upgrades at DTA over the next 5 years.

In addition, to mitigate the risk of shipment delays during the upgrade period, in April 2024, we entered into a 3-year agreement which would allow for the loading of 1.2 to 2.0 million tons of coal annually at a third party terminal in Newport News, VA.

We continually strive to enhance our capital structure and financial flexibility.

As opportunities arise, we will continue to consider the possibility of refinancing or repayment of any outstanding debt and amendment of our credit facility, and may consider the sale of other assets or businesses, and such other measures as we believe circumstances warrant.

We may refinance or repay outstanding debt, seek to amend our credit facility, undertake additional borrowings, sell assets or businesses or take other measures as we believe circumstances warrant.

We may decide to pursue or not pursue these opportunities at any time.

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There can be no assurance that additional financing will be available on terms acceptable to us, or at all.

During the year ended December 31, 2023, we paid federal and state income taxes of $79.2 million.

Refer to Note 17 for further income tax disclosures.

We sponsored three qualified non-contributory pension plans (“Pension Plans”) which covered certain salaried and non-union hourly employees.

Effective as of December 31, 2023, the assets and liabilities of the Pension Plans were merged into one qualified non-contributory defined benefit pension plan (“Pension Plan”).

During the year ended December 31, 2024, we paid federal and state income taxes of $12.1 million and received state income tax refunds of $3.8 million.

Refer to Note 16 for further disclosures related to income taxes.

We sponsor a qualified non-contributory pension plan (“Pension Plan”) which covers certain salaried and non-union hourly employees.

Participants accrued benefits either based on certain formulas, the participant’s compensation prior to retirement or plan specified amounts for each year of service.

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Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006.

We contributed $25.0 million to the Pension Plan in 2023 and expect to contribute $25.0 million in 2024, including amounts above the estimated minimum required contributions for the respective plan years.

We contributed $12.3 million in minimum contributions to the Pension Plan in 2024 and expect to contribute $16.5 million in 2025.

Refer to Note 17 for further disclosures related to the Pension Plan and the related obligation.

DCMWC Reauthorization Process

In July 2019, the U.S.

Department of Labor (Division of Coal Mine Workers’ Compensation or “DCMWC”) began implementing a new authorization process for all self-insured coal mine operators.

As requested by DCMWC, we filed an application and supporting documentation for reauthorization to self-insure certain of our black lung obligations in October 2019.

As a result of this application, the DCMWC notified us in a letter dated February 21, 2020 that we were reauthorized to self-insure certain of our black lung obligations for a period of one-year from February 21, 2020.

The DCMWC reauthorization was contingent, however, upon us providing collateral of $65.7 million to secure certain of our black lung obligations.

This collateral requirement, which the DCMWC advises represents 70% of our estimated future liability according to the DCMWC’s estimation methodology, would have been an increase of approximately 2,400% from the approximately $2.6 million in collateral which we (previously by Alpha Natural Resources Inc.

prior to the Merger) have provided since 2016 to secure these self-insured black lung obligations.

Future liability has not previously been estimated by the DCMWC in connection with the reauthorization process but is now being considered as part of its new collateral-setting methodology.

The reauthorization process provided us with the right to appeal the security determination in writing within 30 days of the date of the notification, which appeal period the DCMWC agreed to extend to May 22, 2020, and we exercised this right of appeal.

We strongly disagree with the DCMWC’s substantially higher collateral determination and the methodology through which the calculation was derived.

In February 2021, the U.S.

Department of Labor (“DOL”) withdrew its Federal Register notice seeking comments on its bulletin describing its new method of calculating collateral requirements.

The DOL removed the bulletin from its website in May 2021.

On February 10, 2022, a telephone conference was held with DCMWC and DOL decision makers wherein we presented facts and arguments in support of our appeal.

No ruling has been made on the appeal, but during the call we indicated that we would be willing to allocate an additional $10.0 million in collateral.

If our appeal is unsuccessful, we may be required to provide additional LCs in order to receive self-insurance reauthorization from the DCMWC or insure these black lung obligations through a third-party provider, which would likely also require us to provide additional collateral.

In January 2023, the DOL proposed for public comment new regulations which, if adopted, would substantially increase the collateral required to secure self-insured federal black lung obligations.

Under the proposed 120% minimum collateral requirement, we estimate we could be required to provide approximately $80.0 million to $100.0 million of collateral to secure certain of our black lung obligations.

The DOL has indicated that it expects that some form of these new regulations could go into effect in the first quarter or early second quarter of 2024.

A significant increase in these collateral obligations could have a materially adverse effect on our liquidity.

In January 2025, the DOL published new regulations outlining the requirements and procedures for authorizing operators to self-insure their liabilities under the Black Lung Benefits Act (the “2025 Final Regulation”), and we anticipate it would require a substantial increase in the collateral required to secure self-insured federal black lung obligations.

Under the 2025 Final Regulation’s 100% minimum collateral requirement, if this requirement is not modified or stayed through legal action, we estimate we would be required to provide approximately $80.0 million to $100.0 million of collateral to secure certain of our black lung obligations.

The 2025 Final Regulation permits us to use combinations of letters of credit, surety bonds, and cash to

meet the collateral requirement.

We received a letter from the Division of Coal Mine Workers’ Compensation (“DCMWC”) dated January 14, 2025, outlining the new procedures and application process for authorizing operators to self-insure under the new regulation.

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 a 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.

DCMWC stated that additional guidance would be provided in due course after consultation with new DOL leadership.

Supreme Court's Decision on the Chevron Deference Standard

The United States Supreme Court's decision in Loper Bright Enterprises v.

Raimondo, issued on June 28, 2024, eliminated a 40-year old precedent of judicial deference to regulatory agencies’ interpretation of federal laws.

Federal agencies such as the DOL and EPA have relied on this now-overturned principle, known as “Chevron deference” in defense of various regulations.

Although the Court’s decision does not explicitly affect any prior agency decisions, regulations made final after the date of the decision, such as the DOL’s recently issued black lung regulations, may be subject to more intense scrutiny by the courts if they are challenged by any affected party.

For example, on July 18, 2024, the Fifth Circuit Court of Appeals directed the lower District Court to reconsider its dismissal of a lawsuit challenging a DOL rule that permits retirement plan fiduciaries to consider environmental, social and governance factors when selecting investments.

In the case of State of Utah v.

Su, et al., the Court of Appeals stated that in order to determine whether the DOL exceeded its statutory authority, “given the upended legal landscape,” the District Court needed to reassess the merits of the plaintiffs’ challenge to the DOL rule.

New York State Act

In December 2024, the state of New York adopted a law purporting to impose significant, ongoing charges upon a variety of companies involved in the production and use of fossil fuels, including our company (the “Act”).

Other states are contemplating adopting similar laws.

We believe that the new law is unconstitutional under the U.S.

Constitution.

In February 2025, we, along with numerous U.S.

states and other entities involved in the fossil fuel industry, filed a complaint against the attorney general of New York and other New York officials.

The complaint was filed in the federal district court for the Northern District of New York and requests that the court (a) declare that the Act is preempted by federal statutes and otherwise violates the U.S.

Constitution, (b) declare that that the Act is unenforceable, and (c) enjoin the state of New York and its officials from taking any action to implement or enforce the Act.

Although we believe that the Act is very unlikely to be upheld, the outcome cannot be predicted with certainty.

If the Act, or similar acts adopted in other U.S.

states, were upheld, our liquidity would be materially, adversely affected.

Respirable Crystalline Silica Final Rule

In April 2024, MSHA issued its final rule, Lowering Miners’ Exposure to Respirable Crystalline Silica and Improving Respiratory Protection, to reduce miner exposures to respirable crystalline silica and improve respiratory protection for all airborne hazards.

The final rule lowers the permissible exposure limit of respirable crystalline silica at 50 micrograms per cubic meter of air (µg/m3) for a full shift exposure, calculated as an 8-hour time weighted average, for all miners.

The final rule also includes other requirements to protect miner health and update existing respiratory protection requirements.

For coal mine operators, the deadline for compliance with the new rule is April 14, 2025.

Our compliance with these or any other new health and safety regulations could increase our mining costs substantially.

Further, if we were ever found to be in violation of these regulations, we could face penalties or restrictions that may materially and adversely affect our operations, financial results and liquidity.

Climate Effect Disclosures

In March 2024, the Securities and Exchange Commission (“SEC”) adopted new rules requiring issuers to disclose certain climate-related information beginning in 2025.

Shortly following their release, the rules were stayed by a federal court.

The SEC subsequently stayed the rules pending resolution of ongoing litigation.

On February 11, 2025, the SEC announced it will pause litigation of the climate disclosure rule.

We cannot be certain whether or when these rules will take effect or what form they may ultimately take.

It is therefore not presently possible to estimate the cost to the company of complying with the rules.

Share Repurchase Program

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Refer to Note 7 for information related to our dividend program.

Cash, cash equivalents, and restricted cash increased by $28.7 million and $172.8 million and decreased by $62.0 million over the years ended December 31, 2023, 2022, and 2021, respectively.

Cash, cash equivalents, and restricted cash increased by $220.0 million, $28.7 million, and $172.8 million over the years ended December 31, 2024, 2023, and 2022, respectively.

The net change in cash, cash equivalents, and restricted cash was attributable to the following:

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Net cash used in financing activities (128,897) (656,428) (981,868)

Net increase (decrease) in cash and cash equivalents and restricted cash $ 28,731 $ 172,780 $ (61,957)

Net increase in cash and cash equivalents and restricted cash $ 220,036 $ 28,731 $ 172,780

Operating Activities.

Net cash provided by operating activities for the year ended December 31, 2024 decreased compared to the year ended December 31, 2023 primarily due to the reduction in Met non-GAAP coal margin discussed above in “Results of Operations,” partially offset by changes in operating assets and liabilities.

Operating assets and liabilities fluctuated as the prior year period was negatively impacted by significant increases in accounts receivable and inventory and the final payment of our contingent revenue obligation, partially offset by a reduction in the amount held on deposit for the payment of dividends.

The decrease in net cash provided by operating activities for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily attributable to lower coal sale realizations, increased operating costs due to inflationary pressures, and increased levels of coal purchases, partially offset by lower royalties and taxes as a result of the lower coal pricing environment.

The increase in net cash provided by operating activities for the year ended December 31, 2022 compared to the year ended December 31, 2021 was primarily attributable to the improvement in our results from operations as discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022, primarily offset by an increase in deposits related to our January 2023 dividend payment and payments on operating liabilities.

Investing Activities.

Net cash used in investing activities for the year ended December 31, 2024 increased compared to the year ended December 31, 2023 despite a lower level of capital expenditures, as the prior year period benefited from a higher level of net proceeds from investment security activity.

The increased level of net proceeds from investment security activity in the prior year period was primarily due to the liquidation of certain marketable securities to facilitate the transfer of funds to another financial institution.

The decrease in net cash used in investing activities for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily driven by increased cash flows from net sales and maturities of investment securities, partially offset by increased capital expenditures.

The increase in net cash used in investing activities for the year ended December 31, 2022 compared to the year ended December 31, 2021 was primarily driven by increases in net purchases of investment securities and capital expenditures.

In addition, we purchased substantially all of the assets of a mining equipment component manufacturing and rebuilding business (refer to Note 2 for further information).

Financing Activities.

Net cash used in financing activities for the year ended December 31, 2024 decreased compared to the year ended December 31, 2023, driven by a significant reduction in level of stock repurchases made under our share repurchase program as well as a reduction in dividends paid due to the payment of a one-time special dividend in the prior year period and the cessation of our fixed dividend program in the fourth quarter of 2023.

The decrease in net cash used in financing activities for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily driven by decreases in principal repayments of long-term debt as a result of the payoff of the Term Loan Credit Facility in the prior year period, partially offset by increases in dividend and dividend equivalents paid which included the payment of a one time dividend of $5.00 per share in 2023 and common stock repurchases under our share repurchase program during the current period.

The increase in net cash used in financing activities for the year ended December 31, 2022 compared to the year ended December 31, 2021 was primarily driven by the voluntary prepayments of our remaining outstanding principal borrowings under the Term Loan Credit Facility and the common stock repurchases under our share repurchase program during 2022.

Analysis of Material Debt Covenants

We are in compliance with all covenants under the New ABL Agreement, as of December 31, 2023, including the requirement that we maintain minimum liquidity, as defined in the New ABL Agreement, of $75.0 million.

A breach of the covenants in the New ABL Agreement could result in a default under the terms of such agreement, and the respective lenders could then elect to declare any amounts borrowed due and payable and require outstanding LCs to be cash collateralized.

In addition, a default under the terms of would inhibit our ability to make certain restricted payments, as defined in the New ABL Agreement, including the Company’s ability to repurchase shares of the Company’s common stock.

We are in compliance with all covenants under the ABL Agreement, as of December 31, 2024, including the requirement that we maintain minimum liquidity, as defined in the ABL Agreement, of $75.0 million.

A breach of the covenants in the ABL Agreement could result in a default under the terms of such agreement, and the respective lenders could then elect to declare any amounts borrowed due and payable and require outstanding LCs to be cash collateralized.

In addition, a default under the terms of would inhibit our ability to make certain restricted payments, as defined in the ABL Agreement, including the Company’s ability to repurchase shares of the Company’s common stock.

Critical Accounting Policies and Estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets

and liabilities.

We base our estimates on historical experience and on various other factors and assumptions, including the current economic environment, that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

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Retirement Plans.

We had three non-contributory defined benefit retirement Pension Plans covering certain of our salaried and non-union hourly employees, all of which were frozen.

Effective as of December 31, 2023, the assets and liabilities of the Pension Plans were merged into one qualified non-contributory defined benefit Pension Plan.

We have a non-contributory defined benefit retirement Pension Plan covering certain of our salaried and non-union hourly employees, all of which are frozen.

Benefits are based on either the employee’s compensation prior to retirement or stated amounts for each year of service with us.

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Refer to Note 17 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for disclosures summarizing the changes in this projected benefit obligation for the years ended December 31, 2024 and 2023.

The calculation of the net periodic benefit expense (credit) and projected benefit obligation associated with our Pension Plan requires the use of a number of assumptions, which are used by our independent actuaries to make the underlying calculations.

Refer to Note 18 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-

K for a summary of these assumptions and additional disclosures related to our Pension Plan.

The calculation of the net periodic benefit cost (credit) and projected benefit obligation associated with our Pension Plan requires the use of a number of assumptions, which are used by our independent actuaries to make the underlying calculations.

Refer to Note 17 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for a summary of these assumptions and additional disclosures related to our Pension Plan.

Changes in these assumptions can result in different net periodic benefit expense and liability amounts, and actual experience can differ from the assumptions.

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Investments are rebalanced on a periodic basis to stay within these targeted guidelines.

The expected long-term rate of return on plan assets assumption used to determine net periodic benefit expense was 6.20% for the year ended December 31, 2023.

The expected long-term rate of return on plan assets assumption used to determine net periodic benefit cost was 5.70% for the year ended December 31, 2024.

The expected long-term rate of return on plan assets assumption to be used in 2025 is expected to be 5.70%.

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• The discount rate represents our estimate of the interest rate at which pension benefits could be effectively settled.

Assumed discount rates are used in the measurement of the projected and accumulated benefit obligations and the interest cost component of the net periodic benefit expense.

Assumed discount rates are used in the measurement of the projected and accumulated benefit obligations and the interest cost component of the net periodic benefit cost.

In estimating that rate, we use rates of return on high quality, fixed income investments.

The weighted average discount rate used to determine the pension benefit obligation was 5.65% for the year ended December 31, 2024.

The differences resulting from actual versus assumed discount rates are amortized into pension net periodic benefit expense (credit) over the remaining average life of the active plan participants.

The differences resulting from actual versus assumed discount rates are amortized into pension net periodic benefit cost (credit) over the remaining average life of the active plan participants.

A one percentage-point increase in the discount rate would increase the net periodic pension cost for the year ended December 31, 2024 by approximately $1.5 million and decrease the projected benefit obligation as of December 31, 2024 by approximately $43.7 million.

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• The discount rate represents our estimate of the interest rate at which black lung benefit obligations could be effectively settled.

Assumed discount rates are used in the measurement of the black lung benefit obligations and the interest cost and service cost components of the net periodic benefit expense.

Assumed discount rates are used in the measurement of the black lung benefit obligations and the interest cost and service cost components of the net periodic benefit cost.

In estimating that rate, we use rates of return on high quality, fixed income investments.

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A one percentage-point increase in the discount rate would increase the net periodic black lung benefit cost for the year ended December 31, 2024 by approximately $0.4 million and decrease the projected benefit obligation as of December 31, 2024 by approximately $10.6 million.

The corresponding effects of a one percentage-point decrease in discount rate would decrease the net periodic black lung benefit cost for the year ended December 31, 2023 by approximately $0.5 million and increase the projected benefit obligation as of December 31, 2023 by approximately $12.6 million.

The corresponding effects of a one percentage-point decrease in discount rate would decrease the net periodic black lung benefit cost for the year ended

December 31, 2024 by approximately $0.5 million and increase the projected benefit obligation as of December 31, 2024 by approximately $12.8 million.

If our assumptions do not materialize as expected, actual cash expenditures and costs that we incur could differ materially from our current estimates.

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If the carrying value of an asset group exceeds its projected future net undiscounted cash flows, step two is performed whereby the fair value of the asset group is estimated and compared to its carrying amount.

The fair value of an asset group is generally determined using discounted cash flow analysis.

The amount of any potential impairment is equal to the excess of an asset group’s carrying value over its estimated fair value.

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Our asset groups generally consist of the assets and applicable liabilities of one or more mines and preparation plants and associated coal reserves for which cash flows are largely independent of cash flows of other mines, preparation plants and associated reserves.

We estimate the fair value of an asset group generally using discounted cash flow analysis based on estimates of future sales volumes, coal prices, production costs, and a risk-adjusted cost of capital.

Changes in any of these assumptions could materially impact the estimated undiscounted cash flows of our asset groups.

Refer to Note 2 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K.

During the year ended December 31, 2024, due to a softening in metallurgical coal pricing combined with the relatively higher cost nature of our Rolling Thunder and Checkmate Powellton mines which recently began production and had not yet ramped up to full planned production levels and the temporary idling of our Checkmate Powellton mine in November 2024, our Power Mountain and Elk Run mining complexes were tested for impairment.

Estimated future undiscounted cash flows were projected to significantly exceed each complex’s respective carrying value and no impairment charges were required.

However, estimates of future cash flows are based on assumptions including future sales volumes, coal pricing, and production costs and changes in any of these assumptions could materially impact projected cash flows.

For example, future impairment charges may occur if projected coal pricing weakens further or if mines are required to be idled for more extended periods.

Refer also to Note 2 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K.

For a further discussion of the factors that could result in a change in our assumptions, see “Item 1A.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity