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Item 5. Market for Registrant’s Common Equity

2026-02-27 compared with 2025-02-28 · 13 added, 569 removed, 16 unchanged (97% of the section changed)

6 unchanged sentences

The section of our Proxy Statement entitled “Stock Performance Graph” is incorporated herein by reference.

For information on securities authorized for issuance under our equity compensation plans, see “Item 12.

For information on securities authorized for issuance under our equity compensation plans, refer to “Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.”

Dividend Policy

Pursuant to the dividend policy adopted by the Board on May 3, 2022, the Board declared quarterly cash dividends on the Company’s common stock during the years ended December 31, 2023 and 2022.

The holders of the Company’s common stock are entitled to receive such dividends, if any, when they are declared by the Board.

The decision to declare and pay cash dividends will be made by the Board and will depend on the Company’s earnings, financial condition and other relevant factors.

On August 2, 2023, the Board determined to end the Company’s fixed dividend program following the quarterly dividend declared and paid in the fourth quarter of 2023.

Refer to Note 7 for further information related to the Company’s dividend program.

Pursuant to the dividend policy adopted by the Board on May 3, 2022, the Board declared quarterly cash dividends on our common stock during the years ended December 31, 2023 and 2022.

The holders of our common stock are entitled to receive such dividends, if any, when they are declared by the Board.

Any decision to declare and pay cash dividends will be made by the Board and will depend on our earnings, financial condition and other relevant factors.

On August 2, 2023, the Board determined to end our fixed dividend program following the quarterly dividend declared and paid in the fourth quarter of 2023.

Refer to Note 7 to the Consolidated Financial Statements for further information related to our dividend program.

Repurchase of Common Stock

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:

The following table reflects repurchases of common shares during the fourth quarter of 2025, and the remaining amount available for future repurchases, pursuant to our 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)

3 unchanged sentences

December 1, 2025 through December 31, 2025 52,115 $ 191.85 52,115 $ 361,291

(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.

(2) The Company adopted a capital return program in 2019, including a stock repurchase plan with no expiration date that permitted the Company to repurchase up to an aggregate amount of $100 million of the Company’s common stock.

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

(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.

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis provides a narrative of our results of operations and financial condition for the years ended December 31, 2024 and 2023.

The following discussion and analysis should be read in conjunction with our Consolidated Financial Statements and related notes and the risk factors included elsewhere in this Annual Report on Form 10-K.

For discussion on results of operations and financial condition pertaining to 2022 and year-over-year comparisons between 2023 and 2022, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023.

The following discussion includes forward-looking statements about our business, financial condition and results of operations, including discussions about management’s expectations for our business.

These statements represent projections, beliefs and expectations based on current circumstances and conditions and in light of recent events and trends, and you should not construe these statements either as assurances of performance or as promises of a given course of action.

Instead, various known and unknown factors are likely to cause our actual performance and management’s actions to vary, and the results of these variances may be both material and adverse.

See “Cautionary Statement Regarding Forward-Looking Statements” and “Item 1A.

Risk Factors.”

Market Overview

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.

steel mills was 75.0% for the week ending February 15, 2025.

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

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

We are a Tennessee-based mining company with operations across Virginia and West Virginia.

With customers across the globe, high-quality reserves and significant port capacity, we are a leading supplier of metallurgical coal products to the steel industry.

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

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.

We also sell coal produced by others, some of which is processed and/or blended with coal produced from our mines prior to resale, with the remainder purchased for resale.

As of December 31, 2024, we had 298.6 million tons of reserves, which included 287.8 million tons of proven and probable metallurgical reserves and 10.8 million tons of proven and probable thermal reserves.

We began operations on July 26, 2016, with mining operations in NAPP, CAPP, and the PRB.

Through the Acquisition, we acquired a significant reserve base.

We also acquired Alpha Natural Resources Inc.’s 40.6% interest in the DTA coal export terminal in Newport News, Virginia, and on March 31, 2017, we acquired a portion of another partner’s ownership stake and increased our interest to 65.0%.

We merged with Alpha Natural Resources Holdings, Inc.

and ANR, Inc.

on November 9, 2018.

On December 8, 2017, we closed a transaction with Blackjewel to sell our Western Mines located in the PRB, Wyoming, along with related coal reserves, equipment, infrastructure and other real properties (our former PRB operations).

On October 4, 2019, we closed on the ESM Transaction in connection with Blackjewel’s subsequent bankruptcy filing.

On May 29, 2020, certain of our subsidiaries (Contura Coal West, LLC and Contura Wyoming Land, LLC), one of which held the mining permits for the Western Mines, were merged with certain subsidiaries of ESM to become wholly-owned subsidiaries of ESM and to complete the permit transfer process in connection with the ESM Transaction.

On December 10, 2020, we closed on a transaction with Iron Senergy Holdings, LLC, to sell our thermal coal mining operations located in Pennsylvania consisting primarily of our Cumberland mining complex and related property (our former NAPP operations).

The disposition of our former NAPP operations accelerated our strategic exit from thermal coal production to shift our focus toward met coal production.

For the years ended December 31, 2024 and 2023, sales of met coal were 15.9 million tons and 15.3 million tons, respectively, and accounted for approximately 93% and 90%, respectively, of our coal sales volume.

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 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.

For the years ended December 31, 2024 and 2023 approximately 78% and 74%, respectively, of our coal revenues were derived from coal sales made to customers outside the United States.

In addition, we generate other revenues from equipment sales, rentals, terminal and processing fees, coal and environmental analysis fees, royalties and the sale of natural gas.

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, 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 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, 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

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, 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.

In December 2022, we purchased substantially all of the assets of a mining equipment component manufacturing and rebuild business to help secure the supply of certain underground mining equipment parts needed for our operations.

Refer to Note 2 for additional information.

Factors Affecting Our Results of Operations

Sales Agreements.

We manage our commodity price risk for coal sales through the use of coal supply agreements.

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

Tons % Priced Average Committed Realized Price per Ton

Met - Domestic $152.94

Met - Export $113.11

Met Total 15.0 million 32 % $143.81

Thermal 1.2 million 95 % $80.74

Met Segment 16.2 million 37 % $131.73

Realized Pricing.

Our realized price per ton of coal is influenced by many factors that vary by region, including (i) coal quality, which includes energy (heat content), sulfur, ash, volatile matter and moisture content;

(ii) differences in market conventions concerning transportation costs and volume measurement;

and (iii) regional supply and demand.

• Coal Quality .

The energy content or heat value of thermal coal is a significant factor influencing coal prices as higher energy coal is more desirable to consumers and typically commands a higher price in the market.

The heat value of coal is commonly measured in British thermal units or the amount of heat needed to raise the temperature of one pound of water by one-degree Fahrenheit.

Coal from the Eastern and Midwest regions of the United States tends to have a higher heat value than coal found in the western United States.

Coal volatility is a significant factor influencing met coal pricing as coal with a lower volatility has historically been more highly valued and typically commands a higher price in the market.

The volatility refers to the loss in mass, less moisture, when coal is heated in the absence of air.

The volatility of met coal determines the percentage of feed coal that becomes coke, known as coke yield, with lower volatility producing a higher coke yield.

• Market Conventions .

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 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.

In addition, for domestic sales contracts, as customers typically bear the cost of transportation from our mines, our operations located further away from the end user of the coal may command lower prices.

• Regional Supply and Demand .

Our realized price per ton is influenced by market forces of the regional market into which such coal is to be sold.

Market pricing may vary according to region and lead to different discounts or premiums to the most directly comparable benchmark price for such coal product.

Our results of operations are dependent upon our ability to maximize productivity and control costs.

Our primary expenses are for operating supply costs, repair and maintenance expenditures, cost of purchased coal, royalties, wages and benefits, freight and handling costs and taxes incurred in selling our coal.

The principal goods and services we use in our operations include maintenance and repair parts and services, electricity, fuel, roof control and support items, explosives, tires, conveyance structure, ventilation supplies and lubricants.

Our management strives to aggressively control costs and improve operating performance to mitigate external cost pressures.

We experience volatility in operating costs related to fuel, explosives, steel, tires, contract services and healthcare, among others, and take measures to mitigate the increases in these costs at all operations.

We have a centralized sourcing group for major supplier contract negotiation and administration, for the negotiation and purchase of major capital goods, and to support the business units.

We promote competition between suppliers and seek to develop relationships with suppliers that focus on lowering our costs.

We seek suppliers who identify and concentrate on implementing continuous improvement opportunities within their area of expertise.

To the extent upward pressure on costs exceeds our ability to realize sales increases, or if we experience unanticipated operating or transportation difficulties, our operating margins would be negatively impacted.

We may also experience difficult geologic conditions, delays in obtaining permits, labor shortages, unforeseen equipment problems, and unexpected shortages of critical materials such as tires, fuel and explosives that may result in adverse cost increases and limit our ability to produce at forecasted levels.

Results of Operations

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

The following table summarizes information about our revenues during the years ended December 31, 2024 and 2023:

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) %

Other revenues 10,706 14,787 (4,081) (27.6) %

Total revenues $ 2,957,285 $ 3,471,417 $ (514,132) (14.8) %

Tons sold 17,127 17,072 55 0.3 %

Coal revenues.

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 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.

Cost and Expenses

The following table summarizes information about our costs and expenses during the years ended December 31, 2024 and 2023:

Year Ended December 31, Increase (Decrease)

(In thousands) 2024 2023 $ %

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

Depreciation, depletion and amortization 167,331 136,869 $ 30,462 22.3 %

Accretion on asset retirement obligations 25,050 25,500 $ (450) (1.8) %

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

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

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 $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 assets placed in service during 2023 and 2024.

Selling, general and administrative.

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

The following table summarizes information about our total other expense, net during the years ended December 31, 2024 and 2023:

Year Ended December 31, Increase (Decrease)

(In thousands) 2024 2023 $ %

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

Income Tax Expense

The following table summarizes information about our income tax expense during the years ended December 31, 2024 and 2023:

Year Ended December 31, Increase (Decrease)

(In thousands) 2024 2023 $ %

Income tax expense $ 23,171 $ 123,503 $ (100,332) (81.2) %

Income taxes.

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 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 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.

Non-GAAP Financial Measures

The discussion below contains “non-GAAP financial measures.” These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S.

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.” 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.

Adjusted EBITDA is presented because management believes it is a useful indicator of the financial performance of our coal operations.

We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues.

Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold.

We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs.

Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold.

Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations.

The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.

Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.

The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance.

Furthermore, analogous measures are used by industry analysts to evaluate the Company’s operating performance.

Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments and other factors.

Included below are reconciliations of non-GAAP financial measures to GAAP financial measures.

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, 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) %

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 %

Depreciation, depletion and amortization - production (1)

113,399 113,399

Accretion on asset retirement obligations 25,050 25,500 (450) (1.8) %

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

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

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 - 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.

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 to Adjusted EBITDA for the years ended December 31, 2024 and 2023:

Year Ended December 31,

(In thousands) 2024 2023

Net income $ 187,579 $ 721,956

Interest expense 3,811 6,923

Interest income (18,208) (11,933)

Income tax expense 23,171 123,503

Depreciation, depletion, and amortization 167,331 136,869

Non-cash stock compensation expense 12,318 19,017

Loss on extinguishment of debt — 2,753

Accretion on asset retirement obligations 25,050 25,500

Amortization of acquired intangibles, net 6,700 8,523

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

The following table summarizes Adjusted EBITDA:

Year Ended December 31, Increase (Decrease)

(In thousands) 2024 2023 $ %

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

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.

Liquidity and Capital Resources

Our primary sources of liquidity are derived from existing unrestricted cash balances, proceeds from future coal sales, and amounts available under our revolving credit agreement.

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.

We may also use cash in accordance with our share repurchase program.

We rely on a number of assumptions in budgeting for our future activities.

These include the costs for mine development to sustain capacity of our operating mines, our cash flows from operations, effects of regulation and taxes by governmental agencies, mining technology improvements and reclamation costs.

These assumptions are inherently subject to significant business, political, economic, regulatory, environmental and competitive uncertainties, pending and existing climate-related initiatives, contingencies and risks, all of which are difficult to predict and many of which are beyond our control.

For example, if the new authorization process for all self-insured coal mine operators is adopted, it would substantially increase the collateral required to secure our self-insured federal black lung obligations.

Refer to the DCMWC Reauthorization Process section below for more information.

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.

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

We may seek to sell equity or debt securities or obtain additional bank credit facilities.

The sale of equity securities could result in dilution to our stockholders.

The incurrence of additional indebtedness could result in increased fixed obligations and additional covenants that could restrict our operations.

The following table summarizes our total liquidity as of December 31, 2024:

(in thousands )

December 31, 2024

Cash and cash equivalents $ 481,578

Credit facility availability (1)

Minimum liquidity requirement (75,000)

Total liquidity $ 519,429

(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

We are required to provide cash collateral to secure our obligations under certain worker’s compensation, black lung, reclamation-related obligations, financial payments and other performance obligations, and other operating agreements.

Future regulatory changes relating to these obligations could result in increased obligations, additional costs, or additional collateral requirements which could require greater use of alternative sources of funding for this purpose, which would reduce our liquidity.

Refer to the DCMWC Reauthorization Process section below for information related to the new authorization process for self-insured coal mine operators being implemented by the U.S.

Department of Labor (Division of Coal Mine Workers’ Compensation).

As of December 31, 2024, we had the following cash collateral on our Consolidated Balance Sheets:

(in thousands )

December 31, 2024

Long-term restricted cash $ 122,583

Long-term restricted investments 43,131

Short-term and long-term deposits 4,974

Total cash collateral $ 170,688

Off-Balance Sheet Arrangements

We are required to provide financial assurance in order to perform the post-mining reclamation required by our mining permits, pay workers’ compensation claims under workers’ compensation laws in various states, pay federal black lung benefits, and perform certain other obligations.

In order to provide the required financial assurance, we generally use surety bonds for post-mining reclamation and workers’ compensation obligations.

We also use bank LCs to collateralize certain obligations.

As of December 31, 2024, we had the following outstanding surety bonds and LCs:

(in thousands )

December 31, 2024

Surety bonds $ 182,769

Letters of credit (1)

(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 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 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.

Capital Requirements

Our capital expenditures for the year ended December 31, 2024 were $198.8 million.

We expect to spend between $152.0 million and $182.0 million on capital expenditures during 2025.

At the midpoint of guidance, this total includes approximately $117 million in sustaining maintenance capital, approximately $40 million in planned projects to invest in mine development, and approximately $10 million in carryover from 2024 due to timing and availability of supplies and contract labor.

Contractual Obligations

The following is a summary of our significant contractual obligations as of December 31, 2024:

(in thousands )

2025 2026 2027 2028 2029 After 2029 Total

Minimum royalties $ 18,809 $ 17,537 $ 16,346 $ 16,444 $ 15,964 $ 138,898 $ 223,998

Coal purchase commitments 70,473 — — — — — 70,473

Unconditional purchase obligations (1)

190,493 11,679 2,387 — — — 204,559

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

(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.

Additionally, we have long-term liabilities relating to asset retirement obligations, pension benefits, black lung benefits, postretirement life insurance benefits, and workers’ compensation benefits.

The table below reflects the estimated undiscounted cash flows for these obligations:

(in thousands) 2025 2026 2027 2028 2029 After 2029 Total

Asset retirement obligation $ 30,686 $ 33,760 $ 30,134 $ 36,607 $ 30,934 $ 332,428 $ 494,549

Pension benefit obligation (1)

31,887 31,881 31,792 31,540 31,271 861,377 1,019,748

Black lung benefit obligation 11,209 10,893 10,672 10,518 10,455 204,648 258,395

Postretirement life insurance benefit obligation 600 599 600 603 604 12,329 15,335

Workers’ compensation benefit obligation 8,063 5,804 4,861 4,296 3,969 48,257 75,250

Total $ 82,445 $ 82,937 $ 78,059 $ 83,564 $ 77,233 $ 1,459,039 $ 1,863,277

(1) The estimated undiscounted cash flows are expected to be paid from the defined benefit pension plan assets held within the defined benefit pension plan trust.

Refer to Note 17 for further disclosures related to this obligation.

Business Updates

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.

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.

We own a 65.0% interest in DTA, a coal export terminal in Newport News, Virginia.

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 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 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.

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.

Access to additional funds from liquidity-generating transactions or other sources of external financing is subject to market conditions and certain limitations, including our credit rating and covenant restrictions in our credit facilities.

As a regular part of our business, we review opportunities for, and engage in discussions and negotiations concerning, the acquisition or disposition of coal mining and related infrastructure assets and interests in coal mining companies, and acquisitions or dispositions of, or combinations or other strategic transactions involving companies with coal mining or other energy assets.

When we believe that these opportunities are consistent with our strategic plans and our acquisition or disposition criteria, we will make bids or proposals and/or enter into letters of intent and other similar agreements.

These bids or proposals, which may be binding or non-binding, are customarily subject to a variety of conditions and usually permit us to terminate the discussions and any related agreement if, among other things, we are not satisfied with the results of due diligence.

Any acquisition opportunities we pursue could materially affect our liquidity and capital resources and may require us to incur indebtedness, seek equity capital or both.

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, 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.

Benefits are frozen under the Pension Plan.

Annual funding contributions to the Pension Plan are made as recommended by consulting actuaries based upon the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) funding standards.

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

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 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

Refer to Note 7 and “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” for information on the share repurchase program and the shares repurchased during the current period.

Dividend Program

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

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:

Year Ended December 31,

2024 2023 2022

Cash flows (in thousands):

Net cash provided by operating activities $ 579,919 $ 851,159 $ 1,484,005

Net cash used in investing activities (230,986) (166,000) (329,357)

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

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.

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.

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.

Analysis of Material Debt Covenants

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.

We evaluate our estimates and assumptions on an ongoing basis and adjust such estimates and assumptions as facts and circumstances require.

Foreign currency and energy markets, and fluctuations in demand for steel products have combined to increase the uncertainty inherent in such estimates and assumptions.

As future events and their effects cannot be determined with precision, actual results may differ significantly from these estimates.

Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

Our asset retirement obligations arise from the federal Surface Mining Control and Reclamation Act of 1977 and similar state statutes, which require that mine property be restored in accordance with specified standards and an approved reclamation plan.

Significant reclamation activities include reclaiming refuse and slurry ponds, reclaiming the pit and support acreage at surface mines, sealing portals at deep mines, and the treatment of water.

We determine the future cash flows necessary to satisfy our reclamation obligations on a permit-by-permit basis based upon current permit requirements and various estimates and assumptions, including estimates of disturbed acreage, cost estimates, and assumptions regarding productivity.

We are also faced with increasingly stringent environmental regulation, much of which is beyond our control, which could increase our costs and materially increase our asset retirement obligations.

Estimates of disturbed acreage are determined based on approved mining plans and related engineering data.

Cost estimates are based upon third-party costs.

Productivity assumptions are based on historical experience with the equipment that is expected to be utilized in the reclamation activities.

Our asset retirement obligations are initially recorded at fair value.

In order to determine fair value, we use assumptions including a discount rate and third-party margin.

Each is discussed further below:

• Discount Rate.

Asset retirement obligations are initially recorded at fair value.

We utilize discounted cash flow techniques to estimate the fair value of our obligations.

We base our discount rate on the rates of treasury bonds with maturities similar to expected mine lives and adjust for our credit standing as necessary after considering funding and assurance provisions.

Changes in our credit standing could have a material impact on our asset retirement obligations.

• Third-Party Margin.

The measurement of an obligation at fair value is based upon the amount a third party would demand to perform the obligation.

Because we plan to perform a significant amount of the reclamation activities with internal resources, a third-party margin was added to the estimated costs of these activities.

This margin was estimated based upon our historical experience with contractors performing similar types of reclamation activities.

The inclusion of this margin will result in a recorded obligation that is greater than our estimates of our cost to perform the reclamation activities.

If our cost estimates are accurate, the excess of the recorded obligation over the cost incurred to perform the work will be recorded as a reduction to Depreciation, depletion and amortization within our Consolidated Statements of Operations at the time that reclamation work is completed.

On at least an annual basis, we review our reclamation liabilities and make necessary adjustments for permit changes as granted by state authorities, additional costs resulting from accelerated mine closures, and revisions to cost estimates and productivity assumptions to reflect current experience and updated plans.

At December 31, 2024, we had recorded asset retirement obligation liabilities of $219.7 million, including amounts reported as current.

While the precise amount of these future costs cannot be determined with certainty, as of December 31, 2024, we estimate that the aggregate undiscounted cost of final mine closures is approximately $494.5 million.

Refer to Note 14 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for reclamation disclosures including a table summarizing the changes in asset retirement obligations for the years ended December 31, 2024 and 2023.

Retirement Plans.

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.

Funding of the Pension Plan is in accordance with requirements of ERISA, and our contributions can be deducted for federal income tax purposes.

We contributed $12.3 million to our Pension Plan for the year ended December 31, 2024.

For the year ended December 31, 2024, we recorded a net periodic benefit cost of $4.5 million for our Pension Plan and have recorded a net obligation of $100.6 million which is net of assets of $351.4 million.

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 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.

• The expected long-term rate of return on plan assets is an assumption of the rate of return on plan assets reflecting the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation.

We establish the expected long-term rate of return on plan assets at the beginning of each fiscal year based upon historical returns and projected returns on the underlying mix of invested assets.

The Pension Plan investment targets are 50% equity securities and 50% fixed income funds (refer to Note 17 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for additional disclosures on this assumption).

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 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%.

Any difference between the actual experience and the assumed experience is deferred as an unrecognized actuarial gain or loss and amortized into expense in future periods.

• 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 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 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.

The corresponding effects of a one percentage-point decrease in discount rate would decrease the net periodic pension cost for the year ended December 31, 2024 by approximately $1.9 million and increase the projected benefit obligation as of December 31, 2024 by approximately $52.7 million.

Coal Workers’ Pneumoconiosis.

We are required by federal and state statues to provide benefits to employees for awards related to coal workers’ pneumoconiosis disease (black lung).

Certain of our subsidiaries are insured for black lung benefit obligations by a third-party insurance provider and certain subsidiaries are self-insured for black lung benefit obligations and may fund certain benefit payments through a Section 501(c)(21) tax-exempt trust fund.

Provisions are made for estimated benefits based on annual evaluations prepared by independent actuaries.

Charges are made to operations for self-insured black lung claims, as determined by an independent actuary at the present value of the actuarially computed liability for such benefits over the employee’s applicable term of service.

These actuarially determined liabilities use various actuarial assumptions, including the discount rate, future cost trends, demographic assumptions, and return on plan assets to estimate the costs and obligations for these items.

• 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 cost.

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

The weighted average discount rate used to determine black lung benefit obligations was 5.66% for the year ended December 31, 2024.

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

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, 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.

Moreover, regulatory changes could affect our obligation to satisfy these or additional obligations.

As of December 31, 2024, we had estimated black lung benefit obligations of approximately $114.3 million, including amounts reported as current, which are net of assets of $2.7 million that are held in a tax-exempt trust fund.

For the year ended December 31, 2024, we recorded a net periodic benefit cost of $10.5 million for our black lung benefit obligations.

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

Income Taxes.

We recognize deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities.

Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In evaluating our ability to recover our deferred tax assets within the jurisdiction in which they arise, we consider all available positive and negative evidence, including the expected reversals of deferred tax liabilities, projected future taxable income, taxable income available via carryback to prior years, tax planning strategies, and results of recent operations.

We assess the realizability of our deferred tax assets, including scheduling the reversal of our deferred tax assets and liabilities, to determine the amount of valuation allowance needed.

Scheduling the reversal of deferred tax asset and liability balances requires judgment and estimation.

We believe the deferred tax liabilities relied upon as future taxable income in our assessment will reverse in the same period and jurisdiction and are of the same character as the temporary differences giving rise to the deferred tax assets that will be realized.

At December 31, 2024, a valuation allowance of $48.7 million has been provided on deferred tax assets not expected to provide future tax benefits.

Refer to Note 16 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for additional disclosures on income taxes.

Asset Impairment.

GAAP requires that a long-lived asset group that is held and used should be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset group might not be recoverable.

Once indicators of potential impairment are identified, testing of a long-lived asset group for impairment is a two-step process.

Step one evaluates the recoverability of an asset group by comparing its projected future net undiscounted cash flows to its carrying value.

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.

The amount of any potential impairment is allocated to the individual long-lived assets within the asset group on a pro-rata basis, except that the carrying value of individual long-lived assets are not reduced below their individual estimated fair values.

Long-lived assets located in a close geographic area are grouped together for purposes of impairment testing when, after considering revenue and cost interdependencies, circumstances indicate the assets are used together to produce future cash flows.

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.

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.

Risk Factors” in this Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission.

New Accounting Pronouncements.

Refer to Note 2 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for disclosures related to new accounting policies adopted.

(1) The total authorization to repurchase our stock under the existing common share repurchase program adopted by our Board of Directors on March 4, 2022 is $1.5 billion.

Refer to Note 7 to the Consolidated Financial Statements for additional information.

(2) We adopted a capital return program in 2019, including a stock repurchase plan with no expiration date that permitted us to repurchase up to an aggregate amount of $100 million of our common stock, of which $67.6 million remains available.

This amount is not included in the table above as we suspended this stock repurchase plan on October 1, 2019 and do not currently intend to make further repurchases under it.

(3) 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.

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

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