Item 2. Properties
Item 2. Properties
Our Properties
Refer to “Item 1. Business” for information on our active mining properties.
Our corporate headquarters consists of approximately 50,000 square feet of leased office space at 340 Martin Luther King Jr. Boulevard in Bristol, Tennessee.
Coal Reserves and Resources
As of December 31, 2025, we estimate that we owned or controlled approximately 294.5 million tons of marketable proven and probable bituminous coal reserves and approximately 522.6 million tons of in situ bituminous coal resources. Our coal reserve and resource estimates were prepared by Marshall Miller & Associates, Inc. (“Marshall Miller”), an independent professional mine engineering and geological consulting firm. Technical Summary Reports prepared by Marshall Miller, as a qualified person, for each of our material mining properties are filed as exhibits to this Annual Report on Form 10-K and incorporated herein by reference.
Coal reserve and resource estimates are based on data obtained from drilling activities and other available geologic data. Estimating reserves and resources requires the use of geologic, engineering, and economic assumptions. Our engineering and land personnel work closely with Marshall Miller to ensure the integrity and accuracy of the data used to calculate the estimates as well as to ensure the assumptions used are reasonable based on our historical results as well as current and future anticipated mine plans. We provide Marshall Miller with historical property information including property maps, deed, lease, and permit information, drilling and lab results, mine plans, production quantities, development, capital, and operating costs as well as market information. For our active and certain idled Met mining properties, Marshall Miller performs an initial assessment and based on the level of geological evidence estimates our coal resources and classifies such resources as either inferred, indicated or measured. When we consider it cost beneficial, Marshall Miller further conducts a pre-feasibility study to estimate our coal reserves and classify such reserves as either proven or probable. The estimates and reports prepared by Marshall Miller are reviewed by our personnel to ensure such reports have been prepared in accordance with applicable rules and regulations and that estimates are based on reasonable assumptions and reflect known facts and circumstances updated through year-end.
Economic analysis is a required part of the process of estimating coal reserves and resources. For a coal reserve or resource to be considered economic, generally revenue generated from its sale must exceed its total cost of production (including consideration of development, capital, and operating costs).
In determining coal reserves as of December 31, 2025, the following estimated market pricing was utilized:
Coal quality Market Pricing Per Ton (1) (2)
High-Vol. A $183
High- Vol. B $169
Mid-Vol. $190
Low-Vol. $191
Thermal $82
(1) Market pricing shown on U.S. East Coast basis.
(2) Met and thermal pricing based on 10-year and 3-year average, respectively, of forecasted pricing from pricing services.
The following is a summary of our estimated marketable proven and probable coal reserves as of December 31, 2025 as determined by Marshall Miller:
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Coal Reserves (Tons in thousands)
Marketable Coal Reserves (1)
Reserve Control Stage / Permit Status Production Stage
Mining Complex Location Total Proven Probable Owned Leased Permitted Not Permitted
Met
Aracoma WV 35,120 22,671 12,449 4,389 30,731 17,677 17,443
Kepler WV 36,159 20,631 15,528 209 35,950 15,996 20,163
Kingston/Mammoth WV 33,324 19,926 13,398 555 32,769 20,120 13,204
Marfork WV 96,799 51,687 45,112 2,268 94,531 54,388 42,411
McClure/Toms Creek VA 65,237 46,948 18,289 — 65,237 36,653 28,584
Elk Run WV 27,847 17,259 10,588 144 27,703 4,152 23,695
Total 294,486 179,122 115,364 7,565 286,921 148,986 145,500
(1) Minimum seam height generally 30 inches for underground mines.
Coal Reserves (Tons in thousands)
Coal Type/Quality
Met Coal by Volatility Thermal Sulfur Recovery Percentage (2)
Mining Complex Location High-Vol. A High-Vol. B Mid-Vol. Low-Vol. Thermal (1)
≤ 1% > 1%
Met
Aracoma WV — 35,120 — — — 31,539 3,581 27 %
Kepler WV — — 5,018 31,141 — 36,159 — 39 %
Kingston/Mammoth WV 15,329 — 3,034 9,889 5,072 11,115 22,209 37 %
Marfork WV 63,497 — 2,034 26,150 5,118 86,558 10,241 31 %
McClure/Toms Creek VA 6,047 57,698 — 1,492 65,237 — 32 %
Elk Run WV — 27,847 — — — 27,847 — 21 %
Total 84,873 62,967 67,784 67,180 11,682 258,455 36,031
(1) Kingston/Mammoth thermal reserves primarily proven and >1% sulfur; Marfork and McClure/Toms Creek thermal reserves primarily probable and ≤ 1% sulfur.
(2) Recovery percentage defined as estimated coal reserves divided by related estimated in situ measured and indicated coal resources.
In performing an initial assessment for purposes of determining coal resources as of December 31, 2025, the following estimated market pricing was utilized:
Complex Market Pricing Per Ton (1) (2)
Aracoma $197
Kepler $206
Kingston/Mammoth $221
Marfork $206
McClure/Toms Creek $208
Power Mountain $201
Elk Run $191
(1) Market pricing shown on U.S. East Coast basis.
(2) Pricing shown for primary product judgmentally selected by qualified person based on review of historical average pricing for each complexes coal products over the past 5 years.
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The following is a summary of our estimated in situ inferred, indicated, and measured coal resources (exclusive of coal reserves) as of December 31, 2025 as determined by Marshall Miller:
Coal Resources (1) (Tons in thousands)
In Situ Coal Resources (2)
Resource Control Stage / Permit Status Exploration Stage
Mining Complex Location Total Indicated Measured Owned Leased Permitted Not Permitted
Met
Aracoma WV 126,614 48,352 78,262 46,592 80,022 16,546 110,068
Kepler WV 28,471 22,950 5,521 596 27,875 17,069 11,402
Kingston/Mammoth WV 23,472 10,206 13,266 13,864 9,608 — 23,472
Marfork WV 155,194 46,764 108,430 61,168 94,026 6,487 148,707
McClure/Toms Creek VA 43,960 13,143 30,817 — 43,960 19,621 24,339
Power Mountain WV 75,440 31,578 43,862 11,849 63,591 54,518 20,922
Elk Run WV 69,467 21,998 47,469 — 69,467 8,705 60,762
Total 522,618 194,991 327,627 134,069 388,549 122,946 399,672
(1) Amounts shown exclusive of coal reserves.
(2) Inferred resources were not considered material and have not been presented.
Coal Resources (1) (Tons in thousands)
Coal Type/Quality
Met Coal by Volatility Thermal Sulfur Expected Recovery Percentage (2)
Mining Complex Location High-Vol. A High-Vol. B Mid-Vol. Low-Vol. Thermal ≤ 1% > 1%
Met
Aracoma WV — 126,614 — — — 58,564 68,050 20 %
Kepler WV — — 5,363 23,108 — 26,571 1,900 48 %
Kingston/Mammoth WV — — — 23,472 — 23,472 — 40 %
Marfork WV 103,602 — 3,650 43,799 4,143 61,450 93,744 31 %
McClure/Toms Creek VA 8,347 35,613 — — 42,925 1,035 25 %
Power Mountain WV — 75,440 — — — 10,285 65,155 31 %
Elk Run WV — 69,467 — — — 14,172 55,295 29 %
Total 111,949 271,521 44,626 90,379 4,143 237,439 285,179
(1) Amounts shown exclusive of coal reserves.
(2) Expected recovery percentage defined as potential estimated recoverable tons divided by estimated in situ measured and indicated coal resources.
Our coal reserves and resources are owned or are controlled through leases with third parties, which have varied expiration dates and either have options to renew or are expected to be renewed until all mineable and merchantable coal is exhausted. Leases require the payment of production royalties to lessors based on a stated percentage of sales revenue less freight cost and may contain annual minimum payment requirements. We permit coal reserves and resources in advance of mining. Currently, there are no known permitting issues that would impact the reporting of our coal reserves or resources. However, also refer to “Item 1. Business—Environmental and Other Regulatory Matters” and “Item 1A. Risks Factors—Risks relating to regulatory and legal developments.”
Our coal reserve and resource estimates are updated periodically to reflect coal production, acquisitions and dispositions of mineral interests, new drilling, mine or geological data, and changes in regulations, market conditions or other economic
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factors. As coal seams in the United States have been mined for many years and are well established, we do not conduct material exploration activity. However, we periodically conduct drilling of additional core holes to provide additional geological evidence as part of our routine mine permitting and planning processes. The following is a summary of the changes in our coal reserves and resources for the year ended December 31, 2025:
Changes in Coal Reserves (Tons in thousands)
12/31/2024 12/31/2025
Mining Complex Coal Reserves Acquired/Leased Pre-Feasibility (1)
Change in Mine Plan Divested Production Coal Reserves
Met
Aracoma 38,055 — 524 (864) — (2,595) 35,120
Kepler 38,473 — — (624) — (1,690) 36,159
Kingston/Mammoth 35,745 — 978 (1,244) — (2,155) 33,324
Marfork 91,988 — 8,375 579 — (4,143) 96,799
McClure/Toms Creek 66,531 — — 2,008 — (3,302) 65,237
Elk Run 27,847 — — — — — 27,847
Total 298,639 — 9,877 (145) — (13,885) 294,486
(1) Mineral areas subjected to pre-feasibility study in current period.
Changes in Coal Resources (Tons in thousands)
12/31/2024 12/31/2025
Mining Complex Coal Resources Acquired/ Leased Pre-Feasibility (1)
Change in Mine Plan Divested Production Coal Resources
Met
Aracoma 131,383 — (4,769) — — — 126,614
Kepler 30,509 — — (785) (1,253) — 28,471
Kingston/Mammoth 25,978 — (2,506) — — — 23,472
Marfork 159,694 — (3,668) (832) — — 155,194
McClure/Toms Creek 43,649 — — 311 — — 43,960
Power Mountain 57,086 21,014 — — — (2,660) 75,440
Elk Run 69,467 — — — — — 69,467
Total 517,766 21,014 (10,943) (1,306) (1,253) (2,660) 522,618
(1) Mineral areas subjected to pre-feasibility study in current period.
Internal Controls Disclosure
The preparation of coal reserve and resource estimates is conducted in accordance with our prescribed internal control procedures, which are designed to ensure the reliability of such estimates. On an annual basis, our personnel meet with the independent qualified person to provide updates to the data and assumptions to be used in performing the reserve and resource estimates. Our personnel review the work of the qualified person to ensure such work is prepared in accordance with applicable rules and regulations and that the data and assumptions used are supportable based on historical results and current and future mine plans and reflect known facts and circumstances through the reporting date. For example, our land personnel verify the property maps and control areas used by the qualified person based on review of underlying deed and lease records. Our engineering personnel ensure estimates are based on current mine plans, incorporate the most recent drilling and lab data, properly reflect changes in permitting status, consider known encumbrances, and are consistent with operating knowledge and expectations in terms of mining methods, recovery rates, minimum seam heights or maximum strip ratios, and saleable qualities. Our land and accounting personnel endeavor to ensure that estimates are prepared in accordance with applicable rules and regulations, that rationale for changes in estimates from prior years are reasonable and supportable, and that cash flow projections are based on reasonable and supportable assumptions with respect to forecasted production rates, coal pricing, and operating and capital costs.
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Our drilling, sample preparation and laboratory analysis are conducted in accordance with internal policies and procedures. For example, core drilling is conducted by reputable third-party drillers and core samples are tagged. Laboratory testing is performed by American National Standards Institute (“ANSI”) certified laboratories and samples are analyzed in accordance with procedures defined under American Society for Testing and Materials (“ASTM”) standards. Core drilling and laboratory testing results are logged into a database with restricted access. In addition, our qualified person performs independent data verification procedures to ensure data is of sufficient quantity and reliability to reasonably support the coal reserve and resource estimates.
Coal reserve and resource amounts are estimates and as estimates have inherent risks due to data accuracy, uncertainty from geologic interpretation, mine plan assumptions, uncontrolled property rights and permit availability, uncertainty with respect to future market supply and demand, and changes in laws and regulations. Our current coal reserves and resource estimates are based on the best information available and are subject to re-assessment when conditions change. Also refer to “Item 1A. Risk Factors” for further discussion of risks associated with the estimates of our reserves and resources.
The following map shows the locations of our material mining properties and corporate headquarters: