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What changed in Alpha Metallurgical Resources, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Alpha Metallurgical Resources, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+481 added−518 removedSource: 10-K (2025-02-28) vs 10-K (2023-12-31)

Top changes in Alpha Metallurgical Resources, Inc.'s 2024 10-K

481 paragraphs added · 518 removed · 385 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

130 edited+32 added−56 removed186 unchanged
Biggest changePreparation Plants, Loadouts, and Docks The following is a summary of information regarding our active preparation plants as of December 31, 2023 : Preparation Plant Year Constructed/Upgraded Processing Capacity (Tons per hour) Utilization % Power Source Bandmill 2010 1,200 66% American Electric Power Kepler 1967 900 54% American Electric Power Kingston 1974/2001 700 73% American Electric Power Marfork 1994/2019 2,400 70% American Electric Power McClure 1979/2019 1,100 53% American Electric Power Toms Creek 1980/2004 1,100 43% American Electric Power Power Mountain 1985/2010 1,200 26% American Electric Power Chess Processing (1) 1980/1998 2,200 N/A American Electric Power Mammoth 1950/2008 1,200 18% American Electric Power (1) Plant refurbished in 2023.
Biggest changeEquipment Our plant and equipment, including underground and surface equipment, are of varying age, in good operational condition, and are regularly maintained and serviced by a dedicated maintenance workforce and third-party suppliers, including scheduled preventive maintenance. 12 Table of Contents Preparation Plants, Loadouts, and Docks The following is a summary of information regarding our active and temporarily idled preparation plants as of December 31, 2024 : Preparation Plant Year Constructed/Upgraded Processing Capacity (Tons per hour) Utilization % Power Source Bandmill 2010 1,200 67% American Electric Power Kepler 1967 900 52% American Electric Power Kingston 1974/2001 700 74% American Electric Power Marfork 1994/2019 2,400 69% American Electric Power McClure 1979/2019 1,100 53% American Electric Power Toms Creek 1980/2004 1,100 40% American Electric Power Power Mountain 1985/2010 1,200 25% American Electric Power Chess Processing (1) 1980/1998 2,200 13% American Electric Power Mammoth 1950/2008 1,200 13% American Electric Power (1) Plant was refurbished in 2023, began processing coal in the first quarter of 2024, and was temporarily idled in the fourth quarter of 2024.
We do not use mountaintop removal mining and currently have no plans to do so in the future. Room-and-Pillar Mining Certain of our mines in CAPP use room-and-pillar mining methods. In this type of mining, main airways and transportation entries are developed and maintained while remote-controlled continuous miners extract coal from the seam, leaving pillars to support the roof.
We do not use mountaintop removal mining and currently have no plans to do so in the future. Room-and-Pillar Mining Certain of our mines use room-and-pillar mining methods. In this type of mining, main airways and transportation entries are developed and maintained while remote-controlled continuous miners extract coal from the seam, leaving pillars to support the roof.
Although this agreement does not create any binding obligations for nations to limit their GHG emissions, it does include pledges to voluntarily limit or reduce future emissions. On June 1, 2017, the Trump administration announced that the U.S. would withdraw from the Paris Agreement. This withdrawal formally took effect on November 4, 2020.
Although this agreement does not create any binding obligations for nations to limit their GHG emissions, it does include pledges to voluntarily limit or reduce future emissions. On June 1, 2017, the first Trump administration announced that the U.S. would withdraw from the Paris Agreement. This withdrawal formally took effect on November 4, 2020.
Shuttle cars or battery coal haulers are used to transport coal from the continuous miner to the conveyor belt for transport to the surface. This method is more flexible than longwall mining and often used to mine smaller coal blocks or thinner seams of coal. Ultimate seam recovery of in-place reserves is less than that achieved with longwall mining.
Shuttle cars or battery coal haulers are generally used to transport coal from the continuous miner to the conveyor belt for transport to the surface. This method is more flexible than longwall mining and often used to mine smaller coal blocks or thinner seams of coal. Ultimate seam recovery of in-place reserves is less than that achieved with longwall mining.
Highwall mining methods are used in connection with some contour mining operations. Depending on geology and market destination, coal mined by contour mining may need to be processed in preparation plants to remove rock and impurities before it becomes a saleable clean coal. Highwall Mining We utilize highwall mining methods at certain of our CAPP surface mines.
Highwall mining methods are used in connection with some contour mining operations. Depending on geology and market destination, coal mined by contour mining may need to be processed in preparation plants to remove rock and impurities before it becomes a saleable clean coal. Highwall Mining We utilize highwall mining methods at certain of our surface mines.
All employees have access to our Employee Assistance Program (“EAP”) at no cost, which gives them and their family access to licensed professionals for help with mental health, stress, addiction, grievances, relationship issues, childcare and eldercare services, legal and personal finance services and other work/life balance matters.
All employees have access to our Employee Assistance Program at no cost, which gives them and their family access to licensed professionals for help with mental health, stress, addiction, grievances, relationship issues, childcare and eldercare services, legal and personal finance services and other work/life balance matters.
Item 1. Business Unless otherwise indicated or the context otherwise requires, references in this “Item 1. Business” section to “the combined company,” “we,” “us” and other similar terms refer to Alpha Metallurgical Resources, Inc. and its consolidated subsidiaries (previously Contura Energy, Inc. and its consolidated subsidiaries). Disclosures in this “Item 1.
Item 1. Business Unless otherwise indicated or the context otherwise requires, references in this “Item 1. Business” section to “the combined company,” “we,” “us” and other similar terms refer to Alpha Metallurgical Resources, Inc. and its consolidated subsidiaries (previously Contura Energy, Inc. and its consolidated subsidiaries).
All of this production is also processed in preparation plants to remove rock and impurities before it becomes saleable clean coal. Truck-and-Shovel Mining and Truck and Front-End Loader Mining We utilize truck/shovel and truck/front-end loader mining methods at some of our CAPP surface mines.
All of this production is also processed in preparation plants to remove rock and impurities before it becomes saleable clean coal. Truck-and-Shovel Mining and Truck and Front-End Loader Mining We utilize truck/shovel and truck/front-end loader mining methods at some of our surface mines.
(6) Proven and probable reserves as of December 31, 2023. Refer to Item 2. Properties for further information. Feasibility/Pre-feasibility study not considered cost beneficial for Power Mountain complex. Aracoma – Aracoma is a mining complex located in Logan, Mingo, and Boone counties, West Virginia. The complex has three active underground mines which produce primarily High-Vol.
(6) Proven and probable reserves as of December 31, 2024. Refer to Item 2. Properties for further information. Feasibility/pre-feasibility study not considered cost beneficial for Power Mountain complex. Aracoma – Aracoma is a mining complex located in Logan, Mingo, and Boone counties, West Virginia. The complex has three active underground mines which produce primarily High-Vol.
Over the past several years, the EPA has revised its NAAQS for nitrogen oxide, sulfur dioxide, particulate matter and ozone, in each case making the standards more stringent. As a result, some states will be required to amend their existing individual state implementation plans (“SIPs”) to achieve compliance with the new air quality standards.
Over the past several years, the EPA has revised its NAAQS for nitrogen oxide, sulfur dioxide, particulate matter and ozone, in each case making the standards more stringent. As a result, some states have been, and will be, required to amend their existing individual state implementation plans (“SIPs”) to achieve compliance with the new air quality standards.
The complex has one active underground mine (with an estimated life of 15 years) which produces primarily Low-Vol. quality met coal from the Pocahontas No. 3 coal seam. Coal is processed at the Kepler Preparation Plant and either loaded onto NS rail or trucked to the Feats Loadout and loaded onto the CSX rail for delivery to customers.
The complex has one active underground mine (with an estimated life of 12 years) which produces primarily Low-Vol. quality met coal from the Pocahontas No. 3 coal seam. Coal is processed at the Kepler Preparation Plant and either loaded onto NS rail or trucked to the Feats Loadout and loaded onto the CSX rail for delivery to customers.
(2) Equipment: S = Shovel/Excavator/Loader/Trucks; CM = Continuous Miner; H = Highwall Miner (3) CSX = CSX Transportation; NS = Norfolk Southern Railway Company (4) Tons of coal purchased from third parties and not processed are not included. (5) Net book value of property, plant and equipment and owned and leased mineral rights as of December 31, 2023.
(2) Equipment: S = Shovel/Excavator/Loader/Trucks; CM = Continuous Miner; H = Highwall Miner (3) CSX = CSX Transportation; NS = Norfolk Southern Railway Company (4) Tons of coal purchased from third parties and not processed are not included. (5) Net book value of property, plant and equipment and owned and leased mineral rights as of December 31, 2024.
These methods are similar and involve using large, electric or hydraulic-powered shovels or diesel-powered front-end loaders to remove earth and rock (overburden) covering a coal seam which is later used to refill the excavated coal pits after the coal is removed. The loading equipment places the coal into trucks for transportation to a preparation plant or loadout area.
These methods are similar and involve using large, electric or hydraulic-powered shovels or diesel-powered front-end loaders to remove earth and rock (overburden) covering a coal seam that is later used to refill the excavated coal pits after the coal is removed. The loading equipment places the coal into trucks for transportation to a preparation plant or loadout area.
Contour Mining We use contour mining at certain of our CAPP surface mines, which limits the overburden removal from above a coal seam or series of coal seams.
Contour Mining We use contour mining at certain of our surface mines, which limits the overburden removal from above a coal seam or series of coal seams.
It establishes the first federal limits on the levels of arsenic, mercury, selenium and nitrate-nitrites in flue gas desulfurization that can be discharged as wastewater from power plants, based on technology improvements over the last three decades. On April 25, 2017, the EPA stayed the implementation of the rule indefinitely to allow for reconsideration.
It established the first federal limits on the levels of arsenic, mercury, selenium and nitrate-nitrites in flue gas desulfurization that can be discharged as wastewater from power plants, based on technology improvements over the last three decades. On April 25, 2017, the EPA stayed the implementation of the rule indefinitely to allow for reconsideration.
Selected participants are given robust safety and mining training over a six-month period in order to obtain their required miner’s certification. We frequently provide training opportunities for operations employees to obtain certifications for Emergency Medical Technician (“EMT”), Mechanical Engineering Technology (“MET”), foreman and supervisory certifications, and electrical certifications in addition to providing apprentice miner training and supervisor training programs.
Selected participants are given robust safety and mining training over a six-month period in order to obtain their required miner’s certification. We frequently provide training opportunities for operations employees to obtain certifications for Emergency Medical Technician, Mechanical Engineering Technology, foreman and supervisory certifications, and electrical certifications in addition to providing apprentice miner training and supervisor training programs.
Since the passage of the MINER Act, enforcement scrutiny has increased, including more inspection hours at mine sites, an increase in the number of inspections and an increase in the number of issuances and related penalties. Various states also have enacted their own new laws and regulations addressing many of these same subjects. The U.S.
Since the passage of the MINER Act, enforcement scrutiny has increased, including more inspection hours at mine sites, an increase in the number of inspections and an increase in the number of issuances and related penalties. Various states also have enacted their own new laws and regulations addressing many of these same subjects.
Effective October 1, 2022, the trust fund was funded by an excise tax on coal sold of $1.10 per ton for deep-mined coal and $0.55 per ton for surface-mined coal, neither amount to exceed 4.4% of the gross sales price. The excise tax does not apply to coal shipped outside the United States.
Effective October 1, 2022, the trust fund is funded by an excise tax on coal sold of $1.10 per ton for deep-mined coal and $0.55 per ton for surface-mined coal, neither amount to exceed 4.4% of the gross sales price. The excise tax does not apply to coal shipped outside the United States.
We depend upon rail, barge, trucking and other systems to deliver coal to markets. In the years ended December 31, 2023 and 2022, our produced coal was transported from the mines and to the customer primarily by rail, with the main rail carriers being CSX Transportation and Norfolk Southern Railway Company.
We depend upon rail, barge, trucking and other systems to deliver coal to markets. In the years ended December 31, 2024 and 2023, our produced coal was transported from the mines and to the customer primarily by rail, with the main rail carriers being CSX Transportation and Norfolk Southern Railway Company.
For additional information about the Company’s legal proceedings, refer to Note 21 , part (d), to the Consolidated Financial Statements, which is incorporated herein by reference. 14 Table of Contents ENVIRONMENTAL AND OTHER REGULATORY MATTERS Federal, state and local authorities regulate the U.S. coal mining industry and the industries it serves with respect to matters such as employee health and safety, permitting and licensing requirements, air quality standards, water quality, plant and wildlife protection, the reclamation of mining properties after mining has been completed, the discharge of materials into the environment, surface subsidence from underground mining, and the effects of mining on groundwater quality and availability.
For additional information about the Company’s legal proceedings, refer to Note 20 , part (d), to the Consolidated Financial Statements, which is incorporated herein by reference. 18 Table of Contents ENVIRONMENTAL AND OTHER REGULATORY MATTERS Federal, state and local authorities regulate the U.S. coal mining industry and the industries it serves with respect to matters such as employee health and safety, permitting and licensing requirements, air quality standards, water quality, plant and wildlife protection, the reclamation of mining properties after mining has been completed, the discharge of materials into the environment, surface subsidence from underground mining, and the effects of mining on groundwater quality and availability.
In January 2020, the EPA and the COE issued a final rule that attempts to clarify the Clean Water Act's (“CWA”) jurisdictional reach over waters of the United States, referred to as the Navigable Waters Protection Rule (“NWPR”). The rule replaces a rule issued in June 2015 by the previous presidential administration, the Clean Water Rule.
In January 2020, the EPA and the COE issued a final rule that attempts to clarify the Clean Water Act's (“CWA”) jurisdictional reach over waters of the United States, referred to as the Navigable Waters Protection Rule (“NWPR”). The rule replaced a rule issued in June 2015 by the previous presidential administration, the Clean Water Rule.
Other states will be required to develop new plans for areas that were previously in “attainment,” but do not meet the revised standards. On December 7, 2020, the EPA announced the agency’s final 17 Table of Contents decision to retain the existing National Ambient Air Quality Standards for particulate matter set by the Obama-Biden Administrations without changes.
Other states will be required to develop new plans for areas that were previously in “attainment,” but do not meet the revised standards. On December 7, 2020, the EPA announced the agency’s final decision to retain the existing National Ambient Air Quality Standards for particulate matter set by the 21 Table of Contents Obama-Biden Administrations in 2012 without changes.
More stringent standards for carbon dioxide emissions as a result of these rulemakings could further reduce demand for coal, and our business would be adversely impacted. The United States Congress has, from time to time, considered legislation to reduce GHG emissions, such as a resolution referred to as the Green New Deal, which was introduced in the U.S.
More stringent standards for carbon dioxide emissions as a result of these rulemakings could further reduce demand for coal, and our business would be adversely impacted. 25 Table of Contents The United States Congress has, from time to time, considered legislation to reduce GHG emissions, such as a resolution referred to as the Green New Deal, which was introduced in the U.S.
A number of states have enacted legislative 21 Table of Contents mandates requiring electricity suppliers to use renewable energy sources to generate a certain percentage of power. For example, on September 10, 2018, California adopted a law that requires all electricity consumed by the state to be generated from renewable sources such as solar, wind and hydropower by 2045.
A number of states have enacted legislative mandates requiring electricity suppliers to use renewable energy sources to generate a certain percentage of power. For example, on September 10, 2018, California adopted a law that requires all electricity consumed by the state to be generated from renewable sources such as solar, wind and hydropower by 2045.
As the mine permit transfer process relating to our sale of the Western Assets to Blackjewel had not been completed prior to Blackjewel’s and certain of its affiliates’ filing petitions for relief under chapter 11 of title 11 of the U.S. Code (the “Bankruptcy Code”), we remained the permitholder in good standing for both 15 Table of Contents mines.
As the mine permit transfer process relating to our sale of the Western Assets to Blackjewel had not been completed prior to Blackjewel’s and certain of its affiliates’ filing petitions for relief under chapter 11 of title 11 of the U.S. Code (the “Bankruptcy Code”), we remained the permitholder in good standing for both mines.
We promote competition between suppliers and seek to develop relationships with suppliers that focus on lowering our costs while improving quality and service. We seek suppliers who identify and concentrate on implementing continuous improvement opportunities within their area of expertise. Competition The coal industry is highly competitive, both in the U.S. and internationally.
We promote competition between suppliers and seek to develop relationships with suppliers that focus on lowering our costs while improving quality and service. We seek suppliers who identify and concentrate on implementing continuous improvement opportunities within their area of expertise. 15 Table of Contents Competition The coal industry is highly competitive, both in the U.S. and internationally.
Coal Industry Retiree Health Benefit Act of 1992 Unlike many companies in the coal business, we do not have any liability under the Coal Industry Retiree Health Benefit Act of 1992 (the “Coal Act”), which requires the payment of substantial sums to provide lifetime health benefits to union-represented miners (and their dependents) who retired before 1992, because liabilities under the Coal Act that had been imposed on Alpha Natural Resources, Inc. were settled in the bankruptcy process. 26 Table of Contents GLOSSARY Acquisition.
Coal Industry Retiree Health Benefit Act of 1992 Unlike many companies in the coal business, we do not have any liability under the Coal Industry Retiree Health Benefit Act of 1992 (the “Coal Act”), which requires the payment of substantial sums to provide lifetime health benefits to union-represented miners (and their dependents) who retired before 1992, because liabilities under the Coal Act that had been imposed on Alpha Natural Resources, Inc. were settled in the bankruptcy process. 31 Table of Contents
The following is a summary of information regarding our active loadouts and docks as of December 31, 2023 : 9 Table of Contents Loadout/Dock Year Constructed Loading Capacity (Tons per hour) Pax Loadout 2006 3,500 Feats Loadout 1975 3,500 Marmet Dock 1986 1,600 Export Terminal The following is a summary of information regarding DTA (in which we own a 65% interest) as of December 31, 2023: Export Terminal Year Constructed Loading Capacity (Tons per hour) Storage Capacity (Net tons) DTA 1984 Up to 6,500 1.7 million Coal Mining Techniques We use four different mining techniques to extract coal from the ground: room-and-pillar mining, truck-and-shovel mining and truck and front-end loader mining, contour mining, and highwall mining.
The following is a summary of information regarding our active loadouts and docks as of December 31, 2024 : Loadout/Dock Year Constructed Loading Capacity (Tons per hour) Pax Loadout 2006 3,500 Feats Loadout 1975 3,500 Marmet Dock 1986 1,600 Export Terminal The following is a summary of information regarding DTA (in which we own a 65% interest) as of December 31, 2024: Export Terminal Year Constructed Loading Capacity (Tons per hour) Storage Capacity (Net tons) DTA 1984 Up to 6,500 1.7 million Coal Mining Techniques We use four different mining techniques to extract coal from the ground: room-and-pillar mining, truck-and-shovel mining and truck and front-end loader mining, contour mining, and highwall mining.
For 22 Table of Contents instance, waters that states have designated as impaired (i.e., as not meeting present water quality standards) are subject to Total Maximum Daily Load regulations, which may lead to the adoption of more stringent discharge standards for our coal mines and could require more costly treatment.
For instance, waters that states have designated as impaired (i.e., as not meeting present water quality standards) are subject to Total Maximum Daily Load regulations, which may lead to the adoption of more stringent discharge standards for our coal mines and could require more costly treatment.
In connection with ESM’s acquisition of the Western Assets from Blackjewel, on October 18, 2019, we and ESM finalized an agreement that provided, among other items, for the eventual transfer of the Western Asset permits from us to ESM and replacement by ESM of our surety bonds associated with these properties.
In connection with ESM’s acquisition of the Western Assets from Blackjewel, on October 18, 2019, we and ESM 19 Table of Contents finalized an agreement that provided, among other items, for the eventual transfer of the Western Asset permits from us to ESM and replacement by ESM of our surety bonds associated with these properties.
Regulatory authorities have considerable discretion in the timing of the permit issuance and the public and other agencies have rights to comment on and otherwise engage in the permitting process, including through intervention in the courts. The Abandoned Mine Land Fund, which is part of SMCRA, requires a fee on all coal produced.
Regulatory authorities have considerable discretion in the timing of the permit issuance 20 Table of Contents and the public and other agencies have rights to comment on and otherwise engage in the permitting process, including through intervention in the courts. The Abandoned Mine Land Fund, which is part of SMCRA, requires a fee on all coal produced.
On May 29, 2020, certain of our subsidiaries 7 Table of Contents (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 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.
Public notice of the proposed permit is given, which also provides for a comment period before a permit can be issued. Some SMCRA mine permits take over a year to prepare, depending on the size and complexity of the mine and may 16 Table of Contents take months or even years to be issued.
Public notice of the proposed permit is given, which also provides for a comment period before a permit can be issued. Some SMCRA mine permits take over a year to prepare, depending on the size and complexity of the mine and may take months or even years to be issued.
Installation of additional emission control measures will make it more costly to operate coal-fired power plants, potentially making coal a less attractive fuel. On February 26, 2019, the EPA published a final rule amending the NOx SIP Call regulations to allow states to establish alternative monitoring and reporting requirements for certain sources.
Installation of additional emission control measures will make it more costly to operate coal-fired power plants, potentially making coal a less attractive fuel. On February 26, 2019, the EPA published a final rule amending the NOx SIP Call regulations to allow states to establish alternative monitoring and reporting requirements for certain sources. • Cross-State Air Pollution Rule.
Regulation of mercury emissions by the EPA (and in particular, the reconsideration by the current EPA of 19 Table of Contents any rulemaking relating to the MATS rule during the prior presidential administration), states, Congress, or pursuant to an international treaty may further decrease the demand for coal.
Regulation of mercury emissions by the EPA (and in particular, the reconsideration by the current EPA of any rulemaking relating to the MATS rule during the prior presidential administration), states, Congress, or pursuant to an international treaty may further decrease the demand for coal.
Virtually all of our coal is transported from the mine to our preparation plants by truck or belt conveyor systems. It is transported from preparation plants 11 Table of Contents and loading facilities to the customer by means of railroads, trucks, barge lines, and lake-going and ocean-going vessels from terminal facilities.
Virtually all of our coal is transported from the mine to our preparation plants by truck or belt conveyor systems. It is transported from preparation plants and loading facilities to the customer by means of railroads, trucks, barge lines, and lake-going and ocean-going vessels from terminal facilities.
Like the NWPR, the Revised Definition of Waters of the United States rule has been the subject of legal challenges. On May 25, 2023, the U.S. Supreme Court’s decision in Sackett v. EPA limited the jurisdiction of the EPA and the COE over wetlands.
Like the NWPR, the Revised Definition of Waters of the United States rule has been the subject of legal challenges. On May 25, 2023, the U.S. Supreme Court’s decision in Sackett v. EPA limited the jurisdiction of the EPA and the COE over 27 Table of Contents wetlands.
B quality met coal from the Upper Chilton, Upper Cedar Grove, and No. 2 Gas coal seams. Mine lives range from 5 to 16 years. Coal is processed at the Bandmill Preparation Plant and loaded onto CSX rail for delivery to customers. Kepler – Kepler is a mining complex located in Wyoming, McDowell, and Raleigh counties, West Virginia.
B quality met coal from the Upper Chilton, Upper Cedar Grove, and No. 2 Gas coal seams. Mine lives range from 4 to 13 years. Coal is processed at the Bandmill Preparation Plant and loaded onto CSX rail for delivery to customers. Kepler – Kepler is a mining complex located in Wyoming, McDowell, and Raleigh counties, West Virginia.
Every employee has a voice in the safety process at each of our mines 13 Table of Contents and other operating sites. Our behavior-based safety process empowers employees to engage in the elimination of at-risk behaviors in the workplace and in incident prevention and continuous improvement.
Every employee has a voice in the safety process at each of our mines and other operating sites. Our behavior-based safety process empowers employees to engage in the elimination of at-risk behaviors in the workplace and in incident prevention and continuous improvement.
Section 402 of the CWA creates a process for establishing effluent limitations for discharges to streams that are protective of water quality standards through the NPDES program, and corresponding programs implemented by state regulatory agencies.
Section 402 of the CWA creates a process for establishing effluent limitations for discharges to streams that are protective of water 26 Table of Contents quality standards through the NPDES program, and corresponding programs implemented by state regulatory agencies.
The Federal Mine Safety and Health Act of 1977 (“Mine Act”) significantly expanded the enforcement of safety and health standards and imposed safety and health standards on all aspects of mining operations. All of the states in which we 25 Table of Contents operate also have state programs for mine safety and health regulation and enforcement.
The Federal Mine Safety and Health Act of 1977 (“Mine Act”) significantly expanded the enforcement of safety and health standards and imposed safety and health standards on all aspects of mining operations. All of the states in which we operate also have state programs for mine safety and health regulation and enforcement.
We offer our employees competitive fixed base pay; a bonus incentive program for administrative positions tied to company safety, environmental stewardship, and financial performance; an operations bonus incentive program tied to site-specific safety, environmental stewardship and production goals; retention programs; paid time-off including holidays; a comprehensive benefits package that includes medical, dental, and vision coverage; disability and life insurance coverages; and a 401(k) retirement savings program with an employer match.
We offer our employees competitive fixed base pay; a bonus incentive program for administrative positions tied to company safety, environmental stewardship, and financial performance; an operations bonus incentive program tied to site-specific safety, environmental stewardship and production goals; paid time-off including holidays; a comprehensive benefits package that includes medical, dental, and vision coverage; disability and life insurance coverages; and a 401(k) retirement savings program.
A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 2 to 11 years. Coal from the underground mine is processed at the Kingston Preparation Plant and trucked to the Pax Loadout to be loaded onto CSX rail for delivery to customers.
A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 1 to 10 years. Coal from the underground mine is processed at the Kingston Preparation Plant and trucked to the Pax Loadout to be loaded onto CSX rail for delivery to customers.
For each of the years ended December 31, 2023 and 2022, we recorded $2.0 million of expense related to these fees.
For each of the years ended December 31, 2024 and 2023, we recorded $2.0 million of expense related to these fees.
During the years ended December 31, 2023 and 2022, approximately 21% and 54%, respectively, of our thermal coal sales volume were delivered pursuant to long-term contracts. Distribution and Transportation Coal consumed domestically is usually sold at the mine and transportation costs are normally borne by the purchaser.
During the years ended December 31, 2024 and 2023, approximately 24% and 21%, respectively, of our thermal coal sales volume were delivered pursuant to long-term contracts. Distribution and Transportation Coal consumed domestically is usually sold at the mine and transportation costs are normally borne by the purchaser.
As of December 31, 2023, approximately 37% of our total workforce had at least ten years of service with our Company, while approximately 25% had fifteen or more years of service with our Company. Employee Compensation and Benefits We require a skilled workforce with mining experience and proficiency as well as qualified managers and supervisors to run our business.
As of December 31, 2024, approximately 37% of our total workforce had at least ten years of service with our Company, while approximately 26% had fifteen or more years of service with our Company. Employee Compensation and Benefits We require a skilled workforce with mining experience and proficiency as well as qualified managers and supervisors to run our business.
Ultimate seam recovery of in-place reserves on average exceeds 90%. Depending on geology and market destination, surface-mined coal may need to be processed in a preparation plant before sale.
Ultimate seam recovery of in- 13 Table of Contents place reserves on average exceeds 90%. Depending on geology and market destination, surface-mined coal may need to be processed in a preparation plant before sale.
Certain of our subsidiaries have wage agreements with the UMWA that are subject to termination by either the employer or the UMWA, without cause, on July 31, 2025 and one on February 28, 2026. We strive to maintain positive working relationships with organized labor.
Certain of our subsidiaries have wage agreements with the UMWA representing roughly 3% of our workforce. Certain of our subsidiaries have wage agreements with the UMWA that are subject to termination by either the employer or the UMWA, without cause, on July 31, 2025 and one on February 28, 2026. We strive to maintain positive working relationships with organized labor.
As of December 31, 2023, we had approximately 3,900 employees working at our mining operations across Central Appalachia in Virginia and West Virginia, while the remainder of our personnel were employed at our headquarters in Bristol, Tennessee, in Julian, West Virginia, or at other administrative offices throughout the region.
As of December 31, 2024, we had approximately 3,800 employees working at our mining operations across Central Appalachia in Virginia and West Virginia, while the remainder of our personnel were employed at our headquarters in Bristol, Tennessee, in Julian, West Virginia, or at other administrative offices throughout the region.
Kingston – Kingston is a mining complex located in Fayette and Raleigh counties, West Virginia. The complex has one active underground mine, which produces primarily Mid-Vol. quality met coal from the Douglas coal seam. The complex also has three active surface mines which produced High-Vol.
Kingston – Kingston is a mining complex located in Fayette and Raleigh counties, West Virginia. The complex has one active underground mine, which produces primarily Mid-Vol. quality met coal from the Douglas coal seam. The complex also has two active surface mines which produce High-Vol.
To help retain key employees in certain positions, our long-term incentive program awards cash or equity grants with time-based and performance-based vesting conditions. Certain key employees are also eligible to participate in our non-qualified deferred compensation plan.
To help retain key employees in 16 Table of Contents certain positions, our long-term incentive program awards cash or equity grants with time-based and performance-based vesting conditions. Certain key employees are also eligible to participate in our non-qualified deferred compensation plan.
Mine Safety and Health Administration (“MSHA”) continues to interpret and implement various provisions of the MINER Act, along with introducing new proposed regulations and standards. For example, the second phase of MSHA’s respirable coal mine dust rule went into effect in February 2016 and requires increased sampling frequency and the use of continuous personal dust monitors.
MSHA continues to interpret and implement various provisions of the MINER Act, along with introducing new proposed regulations and standards. For example, the second phase of MSHA’s respirable coal mine dust rule went into effect in February 2016 and requires increased sampling frequency and the use of continuous personal dust monitors.
Rail shipments constituted approximately 89% and 84% of total shipments of coal volume from our mines during the years ended December 31, 2023 and 2022, respectively. The balance was shipped from our preparation plants, loadout facilities or mines via truck or barge.
Rail shipments constituted approximately 90% and 89% of total shipments of coal volume from our mines during the years ended December 31, 2024 and 2023, respectively. The balance was shipped from our preparation plants, loadout facilities or mines via truck or barge.
This presumption, in some cases, can be rebutted where the person or entity can demonstrate that it in fact does not or did not have authority directly or indirectly to determine the manner in which the relevant coal mining operation is conducted.
These presumptions, in some cases, can be rebutted where the person or entity can demonstrate that it in fact does not or did not have authority directly or indirectly to determine the manner in which the relevant coal mining operation is conducted.
On January 18, 2023, the U.S. Department of Labor announced a notice of proposed rulemaking by its Office of Workers’ Compensation Programs to revise regulations governing the standards related to self-insurance by coal mine operators.
On January 18, 2023, the U.S. Department of Labor (“DOL”) 30 Table of Contents announced a notice of proposed rulemaking by its Office of Workers’ Compensation Programs to revise regulations governing the standards related to self-insurance by coal mine operators.
The proposed rule would set 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 proposal also includes other requirements to protect miner health and update existing respiratory protection requirements.
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.
In 2023, we achieved an overall Non-fatal days lost (“NFDL”) safety incident rate that was 41% better than the U.S. industry average NFDL safety incident rate per 200,000 hours worked. The industry rate is based on available data for the first three quarters of 2023 and the Alpha rate reflects full year 2023.
In 2024, we achieved an overall Non-fatal days lost (“NFDL”) safety incident rate that was 46% better than the U.S. industry average NFDL safety incident rate per 200,000 hours worked. The industry rate is based on available data for the first three quarters of 2024 for bituminous coal and the Alpha rate reflects full year 2024.
None of the violations or the monetary penalties assessed upon us have been material. Future liability under or compliance with environmental and safety requirements could, however, have a material adverse effect on our operations or competitive position. Under some circumstances, substantial fines and penalties, including revocation, denial or suspension of mining permits, may be imposed under the laws described below.
Future liability under or compliance with environmental and safety requirements could, however, have a material adverse effect on our operations or competitive position. Under some circumstances, substantial fines and penalties, including revocation, denial or suspension of mining permits, may be imposed under the laws described below.
District Court for the District of Arizona vacated and remanded the NWPR on August 30, 2021, the EPA and the COE halted implementation of the NWPR nationwide and are interpreting “waters of the United States” consistent with the pre-2015 regulatory regime.
District Court for the District of Arizona vacated and remanded the NWPR on August 30, 2021, the EPA and the COE halted implementation of the NWPR nationwide and announced that they were interpreting “waters of the United States” consistent with the pre-2015 regulatory regime.
The court directed the EPA to revise the rule to address this failure. For states to meet their requirements under the Final CSAPR Update rule, a number of coal-fired electric generating units will likely need to be retired, rather than retrofitted with the necessary emission control technologies, reducing demand for thermal coal.
For states to meet their requirements under the Final CSAPR Update rule, a number of coal-fired electric generating units will likely need to be retired, rather than retrofitted with the necessary emission control technologies, reducing demand for thermal coal.
As of December 31, 2023 and 2022, our posted third-party surety bond amount in all states where we operate was approximately $177.1 million and $165.6 million, respectively, which was used to primarily secure the performance of our reclamation and lease obligations.
As of December 31, 2024 and 2023, our posted third-party surety bond amount in all states where we operate totaled approximately $182.8 million and $177.1 million, respectively, which was used to primarily secure the performance of our reclamation and lease obligations.
Reconstructed units must implement the most efficient generating technology based on the size of the unit (supercritical steam conditions for larger units, to meet a standard of 1,800 lb CO2/MWh-gross, and subcritical conditions for smaller units to meet a standard of 2,000 lb CO2/MWh-gross). Numerous legal challenges to the final rule are currently pending.
Reconstructed units must implement the most efficient generating technology based on the size of the unit (supercritical steam conditions for larger units, to meet a standard of 1,800 lb CO2/MWh-gross, and subcritical conditions for smaller units to meet a standard of 2,000 lb CO2/MWh-gross). Numerous legal challenges to the final rule were filed in the U.S.
Future legislation, regulations or orders, as well as future interpretations and more rigorous enforcement of existing laws, regulations or orders, may require substantial increases in equipment and operating costs to us and delays, interruptions, or a termination of operations, the likelihood or extent of which we cannot predict. In particular, the U.S.
Future legislation, regulations or orders, as well as future interpretations and more rigorous enforcement of existing laws, regulations or orders, may result in substantial increases in equipment and operating costs and delays, interruptions, or a termination of operations, the likelihood or extent of which we cannot predict.
Monetary sanctions, expensive compliance measures and, in severe circumstances, criminal sanctions may be imposed for failure to comply with these laws. As of December 31, 2023, we had accrued $205.4 million for reclamation liabilities and mine closures, including $38.9 million of current liabilities.
Monetary sanctions, expensive compliance measures and, in severe circumstances, criminal sanctions may be imposed for failure to comply with these laws. As of December 31, 2024, we had accrued $219.7 million for reclamation liabilities and mine closures, including $29.9 million of current liabilities.
For the years ended December 31, 2023 and 2022, we recorded $4.6 million and $2.6 million, respectively, of expense related to this excise tax.
For the years ended December 31, 2024 and 2023, we recorded $3.8 million and $4.6 million, respectively, of expense related to this excise tax.
However, on January 6, 2023, the EPA proposed to revise the primary (health-based) annual standard for PM2.5, from its current level of 12.0 parts per billion (ppb or µg/m3) to within the range of 9.0 to 10.0 µg/m3.
However, on January 6, 2023, the EPA proposed to revise the primary (health-based) annual standard for PM2.5, from its then-current level of 12.0 micrograms per cubic meter (µg/m3) to within the range of 9.0 to 10.0 µg/m3.
In the thermal market, of the approximately 502.0 million tons produced in the U.S. in 2023, we produced approximately 1.9 million tons, or less than 1%. Only a small portion of overall U.S. thermal production is shipped internationally, but there is strong competition in the domestic market. Approximately 66% of our thermal coal tons sold were shipped internationally in 2023.
In the thermal market, of the approximately 435.7 million tons produced in the U.S. in 2024, we produced approximately 1.1 million tons, or less than 1%. Only a small portion of overall U.S. thermal production is shipped internationally, but there is strong competition in the domestic market. Approximately 70% of our thermal coal tons sold were shipped internationally in 2024.
In the met coal market, of the approximately 72.4 million tons produced in the U.S. in 2023, we produced approximately 14.8 million tons, or 20%. A significant portion of U.S. met coal production is shipped internationally, where it competes directly with international sources of production. Approximately 71% of our met coal tons sold were shipped internationally in 2023.
In the met coal market, of the approximately 73.1 million tons produced in the U.S. in 2024, we produced approximately 14.6 million tons, or 20%. A significant portion of U.S. met coal production is shipped internationally, where it competes directly with international sources of production. Approximately 77% of our met coal tons sold were shipped internationally in 2024.
The rules also require fugitive dust controls and impose various monitoring, cleanup, and closure requirements. In July 2018, the EPA published a final rule extending certain deadlines under the original rules, granting certain authority to states with authorized CCR programs and establishing groundwater protection standards for certain constituents. The EPA and OSM plan additional rulemaking relating to CCR.
In July 2018, the EPA published a final rule extending certain deadlines under the original rules, granting certain authority to states with authorized CCR programs and establishing groundwater protection standards for certain constituents. The EPA and OSM plan additional rulemaking relating to CCR.
On April 3, 2023, the EPA issued a proposed rule that the EPA said would strengthen and update the MATS for power plants to reflect recent developments in control technologies and the performance of these plants.
On April 3, 2023, the EPA issued a proposed rule that the EPA said would strengthen and update the MATS for power plants to reflect recent developments in control technologies and the performance of these plants. The EPA issued a final revised MATS rule for EGUs in April 2024 that establishes more stringent standards than the previous rule.
In 2009, the EPA issued a finding that emissions of carbon dioxide, methane and other GHGs present an endangerment to public health and the environment. The EPA has since adopted regulations under existing provisions of the CAA pursuant to this finding.
These commitments and agreements could further reduce demand and prices for our coal. In 2009, the EPA issued a finding that emissions of carbon dioxide, methane and other GHGs present an endangerment to public health and the environment. The EPA has since adopted regulations under existing provisions of the CAA pursuant to this finding.
In December 2014, the EPA finalized regulations that address the management 24 Table of Contents of coal ash as a non-hazardous solid waste under Subtitle D. The rules impose engineering, structural and siting standards on surface impoundments and landfills that hold coal combustion wastes and mandate regular inspections.
In December 2014, the EPA finalized regulations that address the management of coal ash as a non-hazardous solid waste under Subtitle D. The rules impose engineering, structural and siting standards on surface impoundments and landfills that hold coal combustion wastes and mandate regular inspections. The rules also require fugitive dust controls and impose various monitoring, cleanup, and closure requirements.
Domestic met customers typically enter into one-year agreements with a fixed price for the entire contract year. Any longer-term agreement would generally have a renegotiation of price each subsequent contract year. Export sales are generally made on an annual, quarterly, or spot cargo basis. Annual and quarterly agreements typically have market-indexed pricing that changes with the market monthly.
Our met coal sales are typically made to customers with whom we have a long-term relationship. Domestic met customers typically enter into one-year agreements with a fixed price for the entire contract year. Any longer-term agreement would generally have a renegotiation of price each subsequent contract year. Export sales are generally made on an annual, quarterly, or spot cargo basis.
The proposed rule would update the standards coal operators must meet to self-insure, modernize and streamline the application process and fix the amount of security applicants must post. The proposed rule would also clarify acceptable forms of security and establish an appeals process. Comments on the proposed rule were originally due no later than March 20, 2023.
The proposed rule would update the standards coal operators must meet to self-insure, modernize and streamline the application process and fix the amount of security applicants must post. The proposed rule would also clarify acceptable forms of security and establish an appeals process.
On October 7, 2023, California Governor Gavin Newsom signed three landmark climate disclosure bills that are more stringent than the proposed SEC rules.
On October 7, 2023, California Governor Gavin Newsom signed three landmark climate disclosure bills that are more stringent than the proposed U.S. Securities and Exchange Commission (“SEC”) rules.
The complex has three active underground mines which produce High-Vol. A quality met coal from the Eagle coal seam and one active underground mine that produces mid-vol quality met coal from the Glen Alum Tunnel seam. The complex also has two active surface mines which produce High-Vol.
A quality met coal from the Eagle coal seam and one active underground mine that produces mid-vol quality met coal from the Glen Alum Tunnel seam. The complex also has two active surface mines which produce High-Vol. A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams.
On February 7, 2024, the EPA revised the primary (health-based) annual standard for PM2.5, from its current level of 12.0 µg/m3 to 9.0 µg/m3. The EPA retained the 24-hour standard and the current primary 24-hour standard for PM10, which provides protection against coarse particles.
On February 7, 2024, the EPA revised the primary (health-based) annual standard for PM2.5, from 12.0 µg/m3 to 9.0 µg/m3. The EPA retained the existing primary 24-hour standards for PM2.5 and for PM10, which provides protection against coarse particles. The EPA also did not change the secondary (welfare-based) standards for fine particles and coarse particles.
A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 2 to 17 years. Coal from the underground mines is processed at the Marfork Preparation Plant and loaded onto the CSX rail for delivery to customers.
A quality met coal as well as some thermal quality coal as a by-product of mining from multiple coal seams. Mine lives range from 2 to 22 years. Coal is processed at either the McClure Preparation Plant or the Toms Creek Preparation Plant and loaded on the CSX or NS rail, respectively for delivery to customers.
Coal is processed at either the McClure Preparation Plant or the Toms Creek Preparation Plant and loaded on the CSX or NS rail, respectively for delivery to customers. Power Mountain – Power Mountain is a mining complex located in Nicholas County, West Virginia. The complex has one active underground mine (with an estimated life of 3 years) which produces High-Vol.
Power Mountain – Power Mountain is a mining complex located in Nicholas County, West Virginia. The complex has one active underground mine (with an estimated life of 4 years) which produces High-Vol. B quality met coal from the Eagle coal seam. Coal is processed at the Power Mountain Preparation Plant and loaded onto NS rail for delivery to customers.
Additional requirements may include tracking and verifications for each transaction related to ammonium nitrate. The outcome of these rulemakings could materially adversely affect our cost or ability to conduct our mining operations. Other Environmental Laws We are required to comply with numerous other federal, state and local environmental laws and regulations in addition to those previously discussed.
The outcome of these rulemakings could materially adversely affect our cost or ability to conduct our mining operations. 29 Table of Contents Other Environmental Laws We are required to comply with numerous other federal, state and local environmental laws and regulations in addition to those previously discussed.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe cannot predict the size of future issuances of our common stock or securities convertible into common stock or the effect, if any, that 50 Table of Contents future issuances and sales of shares of our common stock will have on the market price of our common stock or the dividend amount payable per share on our common stock, if any.
Biggest changeWe may issue additional shares of common stock or convertible securities in subsequent public offerings or, for example, in connection with an acquisition. We cannot predict the size or timing of future issuances, if any, or the effect that any future issuances and sales may have on the market price of our common stock.
A decline in demand for met coal would limit our ability to sell our high quality thermal coal as higher-priced met coal, which would reduce our revenues and profitability, and could affect the economic viability of some of our mines with higher operating costs.
A decline in demand for met coal could limit our ability to sell our high quality thermal coal as higher-priced met coal, which would reduce our revenues and profitability, and could affect the economic viability of some of our mines with higher operating costs.
Adverse operating conditions and events that we have experienced in the past and/or may experience in the future include: 39 Table of Contents • changes or variations in geologic, hydrologic or other conditions, such as the thickness of the coal deposits and the amount of rock, clay or other non-coal material embedded in or overlying the coal deposit; • mining, processing and loading equipment failures and unexpected maintenance problems; • limited availability or increased costs of mining, processing and loading equipment and parts and other materials from suppliers; • difficulties associated with mining under or around surface obstacles; • unfavorable conditions with respect to proximity to and availability, reliability and cost of transportation facilities; • adverse weather and natural disasters, such as heavy snows, heavy rains and flooding, lightning strikes, hurricanes or earthquakes; • accidental mine water discharges, coal slurry releases and failures of an impoundment or refuse area, including inadvertent environmental impacts to the local community; • mine safety accidents, including fires and explosions from methane and other sources; • hazards or occurrences that could result in personal injury and loss of life; • a shortage of skilled and unskilled labor; • security breaches, cyber attacks or terroristic acts; • strikes and other labor-related interruptions; • delays or difficulties in, the unavailability of, or unexpected increases in the cost of acquiring, developing or permitting new acquisitions from the federal government and other new mining reserves and surface rights; • competition and/or conflicts with other natural resource extraction activities and production within our operating areas; • the termination of material contracts by state or other governmental authorities; and • fatalities, personal injuries or property damage arising from train derailments, mined material or overburden leaving permit boundaries, underground mine blowouts, impoundment failures, subsidence or other unexpected incidents.
Adverse operating conditions and events that we have experienced in the past and/or may experience in the future include: • changes or variations in geologic, hydrologic or other conditions, such as the thickness of the coal deposits and the amount of rock, clay or other non-coal material embedded in or overlying the coal deposit; • mining, processing and loading equipment failures and unexpected maintenance problems; • limited availability or increased costs of mining, processing and loading equipment and parts and other materials from suppliers; • difficulties associated with mining under or around surface obstacles; • unfavorable conditions with respect to proximity to and availability, reliability and cost of transportation facilities; • adverse weather and natural disasters, such as heavy snows, heavy rains and flooding, lightning strikes, hurricanes or earthquakes; • accidental mine water discharges, coal slurry releases and failures of an impoundment or refuse area, including inadvertent environmental impacts to the local community; • mine safety accidents, including fires and explosions from methane and other sources; • hazards or occurrences that could result in personal injury and loss of life; • a shortage of skilled and unskilled labor; • security breaches, cyber attacks or terroristic acts; • strikes and other labor-related interruptions; • delays or difficulties in, the unavailability of, or unexpected increases in the cost of acquiring, developing or permitting new acquisitions from the federal government and other new mining reserves and surface rights; • competition and/or conflicts with other natural resource extraction activities and production within our operating areas; • the termination of material contracts by state or other governmental authorities; and • fatalities, personal injuries or property damage arising from train derailments, mined material or overburden leaving permit boundaries, underground mine blowouts, impoundment failures, subsidence or other unexpected incidents.
Deterioration in the reliability of the service provided by rail carriers because of, for example, insufficient allocation of resources to us by rail companies or a strike by railroad workers, would result in increased internal coal handling costs and decreased shipping volumes. If we were unable to find alternatives, our business would be adversely affected, possibly materially.
Deterioration in the reliability of the service provided by rail carriers because of, for example, insufficient allocation of resources to us by rail companies or a strike by railroad workers, could result in increased internal coal handling costs and decreased shipping volumes. If we were unable to find alternatives, our business would be adversely affected, possibly materially.
This conflict may cause additional, severe adverse effects in the region and for international markets. Resulting disruptions could reduce demand for steel made through the use of metallurgical coal and coal-fired electricity, causing a reduction in our revenues or an increase in our costs and thereby materially and adversely affecting our results of operations, financial condition and cash flows.
This conflict may cause additional materially adverse effects in the region and for international markets. Resulting disruptions could reduce demand for steel made through the use of metallurgical coal and coal-fired electricity, causing a reduction in our revenues or an increase in our costs and thereby materially and adversely affecting our results of operations, financial condition and cash flows.
For example, it could: • make it more difficult for us to pay or refinance our debts as they become due during adverse economic and industry conditions because any related decrease in revenues could cause us to not have sufficient cash flows from operations to make our scheduled debt payments; • force us to seek additional capital, restructure or refinance our debts, or sell assets; • cause us to be less able to take advantage of significant business opportunities such as acquisition opportunities and to react to changes in market or industry conditions; • cause us to use a portion of our cash flow from operations for debt service, reducing the availability of working capital and delaying or preventing investments, capital expenditures, research and development and other business activities; • cause us to be more vulnerable to general adverse economic and industry conditions; 48 Table of Contents • expose us to the risk of increased interest rates because certain of our borrowings are at variable rates of interest; • expose us to the risk of foreclosure on substantially all of our assets and those of most of our subsidiaries, which secure certain of our indebtedness if we default on payment or are unable to comply with covenants or restrictions in any of the agreements; • limit our ability to borrow additional monies in the future to fund working capital, capital expenditures and other general corporate purposes; and • result in a downgrade in the credit ratings of our indebtedness, which could harm our ability to incur additional indebtedness and result in more restrictive borrowing terms, including increased borrowing costs and more restrictive covenants, all of which could affect our internal cost of capital estimates and therefore impact operational and investment decisions.
For example, indebtedness could: • make it more difficult for us to pay or refinance our debts as they become due during adverse economic and industry conditions because any related decrease in revenues could cause us to not have sufficient cash flows from operations to make our scheduled debt payments; • force us to seek additional capital, restructure or refinance our debts, or sell assets; • cause us to be less able to take advantage of significant business opportunities such as acquisition opportunities and to react to changes in market or industry conditions; • cause us to use a portion of our cash flow from operations for debt service, reducing the availability of working capital and delaying or preventing investments, capital expenditures, research and development and other business activities; • cause us to be more vulnerable to general adverse economic and industry conditions; • expose us to the risk of increased interest rates because certain of our borrowings are at variable rates of interest; • expose us to the risk of foreclosure on substantially all of our assets and those of most of our subsidiaries, which secure certain of our indebtedness if we default on payment or are unable to comply with covenants or restrictions in any of the agreements; • limit our ability to borrow additional monies in the future to fund working capital, capital expenditures and other general corporate purposes; and • result in a downgrade in the credit ratings of our indebtedness, which could harm our ability to incur additional indebtedness and result in more restrictive borrowing terms, including increased borrowing costs and more restrictive covenants, all of which could affect our internal cost of capital estimates and therefore impact operational and investment decisions.
The terms of our New ABL Facility impose operating and financial restrictions on us, which may limit our ability to respond to changing business and economic conditions. 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.
The terms of our ABL Facility impose operating and financial restrictions on us, which may limit our ability to respond to changing business and economic conditions. 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.
The ongoing military conflict between Russia and Ukraine has resulted in substantial sanctions upon Russia and certain supply and market disruptions, particularly in energy markets. Many governments have banned imports from Russia, including commodities such as oil, natural gas and coal. These events have caused volatility in the aforementioned commodity markets.
The ongoing military conflict between Russia and Ukraine has resulted in substantial sanctions upon Russia and certain supply and market disruptions, particularly in energy markets. Many governments have banned imports from Russia, including commodities such as oil, natural gas and coal. These events have caused volatility in commodity markets.
Further, if the value of the U.S. dollar declines relative to foreign currencies with respect to certain imported supplies or other products, our operating expenses will increase, which could materially adversely impact our profitability. The U.S. and global economies have recently experienced high levels of inflation.
Further, if the value of the U.S. dollar declines relative to foreign currencies with respect to certain imported supplies or other products, our operating expenses will increase, which could materially adversely impact our profitability. The U.S. and global economies recently experienced high levels of inflation.
Availability under the New ABL Facility is calculated monthly and fluctuates based on qualifying amounts of coal inventory, trade accounts receivable and in certain circumstances specified amounts of cash. We must maintain minimum Liquidity, as defined in the New ABL Agreement, of $75.0 million. 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, trade accounts receivable and in certain circumstances specified amounts of cash. We must maintain minimum Liquidity, as defined in the ABL Agreement, of $75.0 million. The ABL Facility matures on October 27, 2027.
The following factors, among others, could affect our stock price: • our operating and financial performance, including reserve estimates; • an unexpected mine or environmental incident; • quarterly variations in the rate of growth of our financial indicators, such as net income per share, net income and revenues; • the public reaction to our press releases, our other public announcements and our filings with the SEC; • strategic actions by our competitors; • changes in revenue or earnings estimates, or changes in recommendations or withdrawal of research coverage, by equity research analysts; • speculation in the press or investment community; • research analysts’ coverage of our common stock, or their failure to cover our common stock; • sales of our common stock by us, our directors or officers or the selling stockholders or the perception that such sales may occur; • our payment of dividends; • changes in accounting principles, policies, guidance, interpretations or standards; • additions or departures of key management personnel; • actions by our stockholders; • general market conditions, including fluctuations in commodity prices; • public sentiment regarding climate change and fossil fuels; • domestic and international economic, legal and regulatory factors unrelated to our performance; and • the realization of any of the other risks described under this “Risk Factors” section or described elsewhere in this document.
The following factors, among others, could affect our stock price: • our operating and financial performance, including reserve estimates; • an unexpected mine or environmental incident; • quarterly variations in the rate of growth of our financial indicators, such as net income per share, net income and revenues; • the public reaction to our press releases, our other public announcements and our filings with the SEC; • strategic actions by our competitors; • changes in revenue or earnings estimates, or changes in recommendations or withdrawal of research coverage, by equity research analysts; • speculation in the press or investment community; • research analysts’ coverage of our common stock, or their failure to cover our common stock; • sales of our common stock by us, our directors or officers or the selling stockholders or the perception that such sales may occur; • our payment of dividends; • changes in accounting principles, policies, guidance, interpretations or standards; • additions or departures of key management personnel; • actions by our stockholders; • general market conditions, including fluctuations in commodity prices; 51 Table of Contents • public sentiment regarding climate change and fossil fuels; • domestic and international economic, legal and regulatory factors unrelated to our performance; and • the realization of any of the other risks described under this “Risk Factors” section or described elsewhere in this document.
Risks inherent in these strategic transactions include, but are not limited to: • accurately assessing the geological conditions of acquired properties; • the ability to obtain and maintain surety bonds, at acceptable rates, related to acquired properties and other obligations; • uncertainties in assessing the value, strengths, and potential profitability, and identifying the extent of all weaknesses, risks, contingent liabilities and other liabilities of acquisition candidates and strategic partners; • the potential loss of key customers, management and employees of an acquired business; 45 Table of Contents • the ability to achieve identified operating and financial synergies from an acquisition or other strategic transactions in the amounts and on the time frame due to inaccurate assumptions underlying estimates of expected cost savings, the deterioration of general industry and business conditions, unanticipated legal, insurance and financial compliance costs, or other factors; • the ability of management to manage successfully our exposure to pending and potential litigation and regulatory obligations; • the ability of a purchaser to complete the transfer of operating permits related to our divested operations and to otherwise properly fulfill all assumed contractual, legal and regulatory obligations; • unanticipated increases in competition that limit our ability to expand our business or capitalize on expected business opportunities, including retaining current customers; and • unanticipated changes in business, industry, market, or general economic conditions that differ from the assumptions underlying our rationale for pursuing the acquisition or other strategic transactions.
Risks inherent in these strategic transactions include, but are not limited to: • accurately assessing the geological conditions of acquired properties; • the ability to obtain and maintain surety bonds, at acceptable rates, related to acquired properties and other obligations; • uncertainties in assessing the value, strengths, and potential profitability, and identifying the extent of all weaknesses, risks, contingent liabilities and other liabilities of acquisition candidates and strategic partners; • the potential loss of key customers, management and employees of an acquired business; • the ability to achieve identified operating and financial synergies from an acquisition or other strategic transactions in the amounts and on the time frame due to inaccurate assumptions underlying estimates of expected cost savings, the deterioration of general industry and business conditions, unanticipated legal, insurance and financial compliance costs, or other factors; • the ability of management to manage successfully our exposure to pending and potential litigation and regulatory obligations; • the ability of a purchaser to complete the transfer of operating permits related to our divested operations and to otherwise properly fulfill all assumed contractual, legal and regulatory obligations; • unanticipated increases in competition that limit our ability to expand our business or capitalize on expected business opportunities, including retaining current customers; and • unanticipated changes in business, industry, market, or general economic conditions that differ from the assumptions underlying our rationale for pursuing the acquisition or other strategic transactions.
A period of sustained low demand for coal, particularly for metallurgical coal (or “met coal”), by U.S. and foreign customers and the potential for negative trade impacts resulting from changing tariff policies could reduce the price of our coal, which would reduce our revenues.
A period of sustained low demand for metallurgical coal (or “met coal”) by U.S. and foreign customers and the potential for negative trade impacts resulting from changing tariff policies could reduce the price of our coal, which would reduce our revenues.
The demand for foreign-produced steel both in foreign markets and in the U.S. market also depends on factors such as tariff rates on steel. For example, in 2018, the U.S. imposed tariffs on imports of steel mill products and a tariff on imports of wrought and unwrought aluminum.
The demand for foreign-produced steel both in foreign markets and in the U.S. market also depends on other factors such as tariff rates on steel. For example, in 2018, the U.S. imposed tariffs on imports of steel mill products and a tariff on imports of wrought and unwrought aluminum.
As detailed in the following pages, these risks include, but are not limited to, the following: • Risks relating to our industry and the global economy , such as those associated with declines in coal prices, loss of customers, our ability to obtain financing and other services, competition, decreased demand for coal, customer creditworthiness and global economic disruptions. • Risks relating to regulatory and legal developments , such as those associated with regulatory requirements and costs, healthcare regulations and costs, permit approvals, climate change regulations, social and governance initiatives and regulations, environmental laws and treaties, unfavorable tax actions, decreased demand for energy, environmental cleanup costs and maintenance of internal controls. • Risks relating to our operations , such as those associated with mining and other conditions, many of which are beyond our control, decreased demand for coal, disruptions in transportation services, the availability of skilled workers, higher than estimated employee benefit costs, the availability of coal reserves, equipment availability, equipment breakdown, higher than anticipated property reclamation or mine closure costs, unionization, cybersecurity, artificial intelligence, the complexity of mining in Central Appalachia, our dependence upon third parties and our ability to make capital investments. • Risks relating to our liquidity , such as our ability to obtain or renew surety bonds, our need to maintain capacity for required letters of credit (“LCs”), limitations imposed on us by our revolving credit facility or any future debt instruments and access to funds when needed. • Risks relating to the ownership of our common stock , such as those associated with compliance with securities laws, the availability of an orderly trading market for our common stock, our ability to continue to repurchase common shares, as the Board may determine from time to time, dilution or other effects resulting from the issuance of additional securities, impediments to our acquisition by a third party and limited fora for stockholder litigation matters.
As detailed in the following pages, these risks include, but are not limited to, the following: • Risks relating to our industry and the global economy , such as those associated with declines in coal prices, loss of customers, our ability to obtain financing and other services, competition, decreased demand for coal, customer creditworthiness and global economic disruptions. • Risks relating to regulatory and legal developments , such as those associated with regulatory requirements and costs, healthcare regulations and costs, permit approvals, climate change regulations, social and governance initiatives and regulations, environmental laws and treaties, unfavorable tax actions, decreased demand for energy, environmental cleanup costs and maintenance of internal controls. • Risks relating to our operations , such as those associated with mining and other conditions, many of which are beyond our control, decreased demand for coal, disruptions in transportation services, the availability of skilled workers, higher than estimated employee benefit costs, the availability of coal reserves, equipment availability, equipment breakdown, higher than anticipated property reclamation or mine closure costs, unionization, cybersecurity, artificial intelligence, the complexity of mining in Central Appalachia, our dependence upon third parties and our ability to make capital investments. • Risks relating to our liquidity , such as our ability to obtain or renew surety bonds, our need to maintain capacity for required letters of credit (“LCs”), limitations imposed on us by our borrowing arrangements or any future debt instruments and access to funds when needed. • Risks relating to the ownership of our common stock , such as those associated with compliance with securities laws, the availability of an orderly trading market for our common stock, our ability to repurchase common shares, as the Board may determine from time to time, dilution or other effects resulting from the issuance of additional securities, impediments to our acquisition by a third party and limited fora for stockholder litigation matters.
Any prolonged global, national or regional economic recession or other similar events could have a material adverse effect on the demand for and price of coal, on our sales, margins and profitability, and on our own ability to obtain financing. 32 Table of Contents We are unable to predict the timing, duration and severity of any potential future disruptions in financial markets and potential future adverse economic conditions in the U.S. and other countries and the impact these events may have on our operations and the industry in general.
Any prolonged global, national or regional economic recession or other similar events could have a material adverse effect on the demand for and price of coal, on our sales, margins and profitability, and on our own ability to obtain financing. 34 Table of Contents We are unable to predict the timing, duration and severity of any potential future disruptions in financial markets and potential future adverse economic conditions in the U.S. and other countries and the impact these events may have on our operations and the industry in general.
Although we have not experienced any material adverse effect on its results of operations, financial condition or cash flows as a result of the war or the resulting volatility as of the date of this report, such volatility, including market expectations of potential changes in coal prices and inflationary pressures on steel products, may significantly affect prices for our coal or the cost of supplies and equipment, as well as the prices of competing sources of energy for our customers, like natural gas.
Although we have not experienced any distinct material adverse effect on our results of operations, financial condition or cash flows as a result of the war or the resulting volatility as of the date of this report, such volatility, including market expectations of potential changes in coal prices and inflationary pressures on steel products, may significantly affect prices for our coal or the cost of supplies and equipment, as well as the prices of competing sources of energy for our customers, like natural gas.
These activities have also aimed to increase the attention on and demand for action related to various ESG matters, which has contributed to increasing societal, investor, and legislative focus and pressure on ESG practices and disclosures, including those related to climate change, GHG emissions targets, business resilience under the assumptions of demand-constrained scenarios, net-zero ambitions, transition plans, actions related to diversity and inclusion, political activities, racial equity audits, and governance standards.
These activities have also aimed to increase the attention on and demand for action related to various ESG matters, which has contributed to increasing societal, investor, and legislative focus and pressure on ESG practices and disclosures, including those related to climate change, GHG emissions targets, business resilience under the assumptions of demand-constrained scenarios, net-zero ambitions, transition plans, actions related to diversity and inclusion, political activities, minority equity audits, and governance standards.
Our operations are subject to a wide variety of federal, state and local environmental, health and safety, transportation, labor and other laws and regulations relating to matters such as: 33 Table of Contents • blasting; • controls on emissions and discharges; • the effects of operations on surface water and groundwater quality and availability; • the storage, treatment and disposal of wastes and the authorizations necessary to create new waste management facilities; • the remediation of contaminated soil, surface water and groundwater; • surface subsidence from underground mining; • the classification of plant and animal species near our mines as endangered or threatened species; • the reclamation of mined sites; and • employee health and safety, and benefits for current and former employees (described in more detail below).
Our operations are subject to a wide variety of federal, state and local environmental, health and safety, transportation, labor and other laws and regulations relating to matters such as: • blasting; • controls on emissions and discharges; • the effects of operations on surface water and groundwater quality and availability; • the storage, treatment and disposal of wastes and the authorizations necessary to create new waste management facilities; • the remediation of contaminated soil, surface water and groundwater; • surface subsidence from underground mining; • the classification of plant and animal species near our mines as endangered or threatened species; • the reclamation of mined sites; and • employee health and safety, and benefits for current and former employees (described in more detail below).
Our bylaws provide, subject to limited exceptions, that the Court of Chancery of the State of Delaware is, to the fullest extent permitted by law, the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders; (iii) any action asserting a claim against us, any director or our officers or employees arising pursuant to any provision of the Delaware General Corporation Law, our certificate of incorporation (including any certificate of designations relating to any class or series of preferred stock) or our bylaws; or (iv) any action asserting a claim against us, any director or our officers or employees that is governed by the internal affairs doctrine.
Our bylaws provide, subject to limited exceptions, that the Court of Chancery of the State of Delaware is, to the fullest extent permitted by law, the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders; (iii) any action asserting a claim against us, any director or our officers or employees arising pursuant to any provision of the Delaware General Corporation Law, our certificate of incorporation (including any certificate of designations relating to any class or series of preferred stock) or our bylaws; or (iv) any action asserting a claim against us, any director or 52 Table of Contents our officers or employees that is governed by the internal affairs doctrine.
Recent actions by the EPA, including the Good Neighbor Plan, the EPA’s February 2024 revision of the primary (health-based) annual standard for PM2.5, from 12.0 µg/m3 to 9.0 µg/m3, the proposed rule for more stringent emission standards for particulate matter emissions, and the proposed MATS rule to regulate emissions of mercury and other metals, fine particulates, and acid gases such as hydrogen chloride from coal- and oil-fired power plants, referred to as “MATS,” may make it more difficult for our customers to continue to use our coal in their operations.
Recent actions by the EPA, including the EPA’s February 2024 revision of the primary (health-based) annual standard for PM2.5, from 12.0 µg/m3 to 9.0 µg/m3, the proposed rule for more stringent emission standards for particulate matter emissions, and the proposed MATS rule to regulate emissions of mercury and other metals, fine particulates, and acid gases such as hydrogen chloride from coal- and oil-fired power plants, referred to as “MATS,” may make it more difficult for our customers to continue to use our coal in their operations.
New laws and regulations, as well as future interpretations or different enforcement of existing laws and regulations, may have a similar or more significant impact on us, including delays, interruptions or a termination of operations. Increasing attention to environmental, social and governance (ESG) matters may negatively affect our business and financial results.
New laws and regulations, as well as future interpretations or different enforcement of existing laws and regulations, may have a similar or more significant impact on us, including delays, interruptions or a termination of operations. Increasing attention to environmental, social and governance (“ESG”) matters may negatively affect our business and financial results.
A decline in demand for met coal relative to thermal coal could cause us to shift coal from the met market to the thermal market, thereby reducing our revenues and profitability. Our business will be adversely affected if we are unable to timely develop or acquire additional coal reserves that are economically recoverable.
A decline in demand for met coal relative to thermal coal could cause us to shift coal from the met market to the thermal market, thereby reducing our revenues and profitability. Our business may be adversely affected if we are unable to timely develop or acquire additional coal reserves that are economically recoverable.
Our second amended and restated certificate of incorporation authorizes us to issue, without the approval of our stockholders, one or more classes or series of preferred stock having such designations, preferences, limitations and relative rights, including preferences over our common stock respecting dividends and distributions, as the Board may determine.
Our certificate of incorporation, as amended, authorizes us to issue, without the approval of our stockholders, one or more classes or series of preferred stock having such designations, preferences, limitations and relative rights, including preferences over our common stock respecting dividends and distributions, as the Board may determine.
The Russia-Ukraine war, and sanctions brought by the United States and other countries against Russia, have caused significant market disruptions that may lead to increased volatility in the price of certain commodities, including oil, natural gas, coal and other sources of energy.
The Russia-Ukraine war, and sanctions brought by the United States and other countries against Russia, have caused significant market disruptions that may lead to further volatility in the price of certain commodities, including oil, natural gas, coal and other sources of energy.
These proposals have included, but are not limited to: (1) the elimination of current deductions, the 60-month amortization period and the 10-year amortization period for exploration and development costs relating to coal and other hard mineral fossil fuels, (2) the repeal of the percentage depletion allowance with respect to coal properties and (3) the repeal of capital gains treatment of coal and lignite royalties.
These proposals have included, but are not limited to: (1) the elimination of current deductions, the 60-month amortization period and the 10-year amortization period for exploration and development costs relating to coal and other hard mineral fossil fuels, (2) the repeal of the percentage depletion allowance with respect to coal properties and (3) the repeal of capital gains 40 Table of Contents treatment of coal and lignite royalties.
Our workforce could become increasingly unionized in the future and our unionized or union-free workforce could strike, which could adversely affect the stability of our production and reduce our profitability. Approximately 97% of our total workforce and approximately 96% of our hourly workforce was union-free as of December 31, 2023.
Our workforce could become increasingly unionized in the future and our unionized or union-free workforce could strike, which could adversely affect the stability of our production and reduce our profitability. Approximately 97% of our total workforce and approximately 96% of our hourly workforce was union-free as of December 31, 2024.
Those prices depend upon factors beyond our control (some of which are described in more detail in other risk factors below), including but not limited to: • the demand for domestic and foreign coal and coke, which depends significantly on the demand for steel; • the price and availability of natural gas, other alternative fuels and alternative steel production technologies; • domestic and foreign economic conditions, including economic downturns and the strength of the global and U.S. economies; • the consumption pattern of industrial customers; • factors affecting the timely delivery of our products to customers; • the proximity to and availability, reliability and cost of transportation and port facilities; • the legal, regulatory and tax environment for our industry and those of our customers; • the quantity, quality and pricing of coal available in the resale market; • the effects of emissions control measures; • adverse weather, climactic or other natural conditions, natural disasters, epidemics, pandemics (such as the COVID-19 virus) and other public health challenges; and • competition from other suppliers of coal and other energy sources. 30 Table of Contents A period of sustained low coal prices in the U.S. and other countries would materially adversely affect our operating results and cash flows, as well as the value of our coal reserves, and would cause a number of other risks that we face to increase in likelihood, magnitude and duration.
Those prices depend upon factors beyond our control (some of which are described in more detail in other risk factors below), including but not limited to: • the demand for domestic and foreign coal and coke, which depends significantly on the demand for steel; • the price and availability of natural gas, other alternative fuels and alternative steel production technologies; • domestic and foreign economic conditions, including economic downturns and the strength of the global and U.S. economies; • the consumption pattern of industrial customers; • factors affecting the timely delivery of our products to customers; • the proximity to and availability, reliability and cost of transportation and port facilities; • the legal, regulatory and tax environment for our industry and those of our customers; • the quantity, quality and pricing of coal available in the resale market; • the effects of emissions control measures; • adverse weather, climatic or other natural conditions, natural disasters, epidemics, pandemics and other public health challenges; and • competition from other suppliers of coal and other energy sources. 32 Table of Contents A period of sustained low coal prices in the U.S. and other countries would materially adversely affect our operating results and cash flows, as well as the value of our coal reserves, and would cause a number of other risks that we face to increase in likelihood, magnitude and duration.
If we are unable to acquire surface rights to access our coal reserves, we may be unable to obtain a permit to mine coal we own and may be required to employ expensive techniques to mine around those sections of land we cannot access in order to access other sections of coal reserves, which could materially and adversely affect our business and our results of operations.
If we are unable to acquire surface rights to access our coal reserves, we may be unable to obtain a permit to mine coal we own and may be required to employ expensive techniques to mine around those sections of land we cannot access in order to 45 Table of Contents access other sections of coal reserves, which could materially and adversely affect our business and our results of operations.
Any increase in the per-ton 44 Table of Contents compensation for services we pay for the production of contractor-produced coal could increase our costs and, therefore, lower our earnings and adversely affect our results of operations. We also contract with third parties to perform reclamation services for properties that are no longer in operation.
Any increase in the per-ton compensation for services we pay for the production of contractor-produced coal could increase our costs and, therefore, lower our earnings and adversely affect our results of operations. We also contract with third parties to perform reclamation services for properties that are no longer in operation.
In particular, the Clean Air Act and similar state and local laws extensively regulate the amount of sulfur dioxide, particulate matter, nitrogen oxides, mercury and other compounds emitted into the air from fossil fuel fired power plants, which are the largest end-users of our thermal coal.
In particular, the Clean Air Act and similar state and local laws extensively regulate the amount of sulfur dioxide, particulate matter, nitrogen 38 Table of Contents oxides, mercury and other compounds emitted into the air from fossil fuel fired power plants, which are the largest end-users of our thermal coal.
Our liability for such claims may be joint and several, so that we may be held responsible for more than our share of the contamination or other damages, or even for the entire share. We operate and maintain a number of coal slurry impoundments. These impoundments are subject to extensive regulation.
Our liability for such claims 35 Table of Contents may be joint and several, so that we may be held responsible for more than our share of the contamination or other damages, or even for the entire share. We operate and maintain a number of coal slurry impoundments. These impoundments are subject to extensive regulation.
Our systems and procedures for internal control over financial reporting or the disclosure controls related to them may in the future have material weaknesses, which may adversely affect the value of our common stock. 38 Table of Contents We are responsible for maintaining systems and documentation necessary to evaluate the effectiveness of our internal control over financial reporting.
Our systems and procedures for internal control over financial reporting or the disclosure controls related to them may in the future have material weaknesses, which may adversely affect the value of our common stock. We are responsible for maintaining systems and documentation necessary to evaluate the effectiveness of our internal control over financial reporting.
In addition, due in part to the extensive and comprehensive regulatory requirements, violations of laws, regulations and permits occur at our operations from time to time and may result in significant costs to us to correct the violations, as well as substantial civil or criminal penalties and limitations or shutdowns of our operations.
In addition, due in part to the extensive and comprehensive regulatory requirements, violations of laws, regulations and permits occur at our operations from time to time and may result in significant costs to us to correct the violations, as well as substantial civil or criminal penalties and limitations or shutdowns of our operations. See “Item 1.
Our insurance, or the insurance of third-party service providers, may not protect us against such occurrences. It is possible that any 41 Table of Contents of these occurrences, or a combination of them, could have a material adverse effect on our business, financial condition and results of operations.
Our insurance, or the insurance of third-party service providers, may not protect us against such occurrences. It is possible that any of these occurrences, or a combination of them, could have a material adverse effect on our business, financial condition and results of operations.
Risks Relating to Our Industry and the Global Economy Declines in coal prices would adversely affect our revenues, operating results, cash flows, financial condition, stock price and the value of our coal reserves. Our results of operations are substantially dependent upon the prices we receive for our coal.
Risks Relating to Our Industry and the Global Economy Declines in coal prices would adversely affect our revenues, operating results, cash flows, financial condition, stock price and the value of our coal reserves. Our results of operations depend substantially upon the prices we receive for our coal.
Downturns and disruptions in the global economy and financial markets have from time to time resulted in, among other things, extreme volatility in securities prices, severely diminished liquidity and credit availability, rating downgrades of certain investments and declining valuations of others, including real estate.
Downturns and disruptions in the global economy and financial markets have from time to time resulted in, among other things, extreme volatility in securities prices, severely diminished liquidity and credit availability, rating downgrades of certain investments and declining valuations of others.
Disruptions in transportation services or port facilities, and increased transportation costs, could impair our ability to supply coal to our customers, reduce demand and adversely affect our business. For the year ended December 31, 2023, 89% of our coal volume was transported from our shipping points to a vessel loading point or customer location by rail.
Disruptions in transportation services or port facilities, and increased transportation costs, could impair our ability to supply coal to our customers, reduce demand and adversely affect our business. For the year ended December 31, 2024, 90% of our coal volume was transported from our shipping points to a vessel loading point or customer location by rail.
In addition, purchasers of our met coal may increasingly be required to implement costly new emissions and other technologies, thereby increasing the risk we bear for customer payment default. For the year ended December 31, 2023 we derived 74% of our coal revenues from coal sales made to customers outside the U.S.
In addition, purchasers of our met coal may increasingly be required to implement costly new emissions and other technologies, thereby increasing the risk we bear for customer payment default. For the year ended December 31, 2024 we derived 78% of our coal revenues from coal sales made to customers outside the U.S.
An active, liquid and orderly trading market for our common stock may not be maintained, and our stock price may be volatile. Alpha’s common stock trades on the New York Stock Exchange under the ticker symbol “AMR.” Active, liquid and orderly trading markets usually result in less price volatility and more efficiency in carrying out investors’ purchase and sale orders.
An active, liquid and orderly trading market for our common stock may not be maintained, and our stock price may be volatile. Alpha’s common stock trades on the NYSE under the ticker symbol “AMR.” Active, liquid and orderly trading markets usually result in less price volatility and more efficiency in carrying out investors’ purchase and sale orders.
We may incur additional secured or unsecured indebtedness in the future, subject to compliance with covenants in our existing debt agreements.
We may incur additional secured or unsecured indebtedness in the future, subject to compliance with covenants in any existing debt agreements.
A series of more stringent requirements will or may become effective in coming years, including: • implementation of the current and more stringent proposed ambient air quality standards for sulfur dioxide, nitrogen oxides, particulate matter and ozone, including the EPA’s issuance of NAAQS in October 2015 of a more stringent ambient air quality standard for ozone and the EPA’s determinations of attainment designations with respect to these rules; • implementation of the EPA's February 2024 revised primary (health-based) annual standard for PM2.5, from 12.0 µg/m3 to 9.0 µg/m3; • implementation of the EPA’s Revised CSAPR to significantly reduce nitrogen oxide and sulfur dioxide emissions from power plants in 12 states in the eastern United States; • continued implementation of the EPA’s MATS, which impose stringent limits on emissions of mercury and other toxic air pollutants from electric power generators, issued in December 2011 and in effect pending completion of judicial review proceedings; • the EPA’s Good Neighbor Plan rules, which secured significant reductions in ozone-forming emissions of nitrogen oxides (NOx) from power plants and industrial facilities in 23 states; • multiple and inconsistent future GHG emission reporting obligations imposed in federal and state laws; • the exposure of workers to silica dust; • implementation of the EPA’s August 2014 final rule on cooling water intake structures for power plants; • more stringent EPA requirements governing management and disposal of coal ash pursuant to a rule finalized in December 2014 and new amendments effective as of August 2018; • implementation of the COE/EPA final rule revising and reissuing Nationwide Permits under Section 404 of the Clean Water Act and applying the conforming rule Revised Definition of Waters of the United States; and 36 Table of Contents • implementation of the EPA’s November 2015 final rule setting effluent discharge limits on the levels of metals that can be discharged from power plants.
A series of more stringent requirements have become effective in recent years or will or may become effective in coming years, including: • implementation of the current and more stringent proposed ambient air quality standards for sulfur dioxide, nitrogen oxides, particulate matter and ozone, including the EPA’s issuance of NAAQS in October 2015 of a more stringent ambient air quality standard for ozone and the EPA’s determinations of attainment designations with respect to these rules; • implementation of the EPA’s February 2024 revised primary (health-based) annual standard for PM2.5, from 12.0 µg/m3 to 9.0 µg/m3; • implementation of the EPA’s Revised CSAPR to significantly reduce nitrogen oxide and sulfur dioxide emissions from power plants in 12 states in the eastern United States; • continued implementation of the EPA’s MATS, which impose stringent limits on emissions of mercury and other toxic air pollutants from electric power generators, issued in December 2011 and in effect pending completion of judicial review proceedings; • multiple and inconsistent future GHG emission reporting obligations imposed in federal and state laws; • the exposure of workers to silica dust; • implementation of the EPA’s August 2014 final rule on cooling water intake structures for power plants; • more stringent EPA requirements governing management and disposal of coal ash pursuant to a rule finalized in December 2014 and new amendments effective as of August 2018; • implementation of the COE/EPA final rule revising and reissuing Nationwide Permits under Section 404 of the Clean Water Act and applying the conforming rule Revised Definition of Waters of the United States; and • implementation of the EPA’s November 2015 final rule setting effluent discharge limits on the levels of metals that can be discharged from power plants.
As this trend continues, the amount of met coal that we sell and the prices that we receive for it could decrease, thereby reducing our revenues and adversely impacting our earnings and the value of our coal reserves.
As this trend continues, the amount of met coal that we sell and the prices that we receive for it in the U.S. could decrease, thereby reducing our revenues and adversely impacting our earnings and the value of our coal reserves.
We may not be able to accurately assess the geological 43 Table of Contents characteristics of any reserves that we now own or subsequently acquire, which may adversely affect our profitability and financial condition.
We may not be able to accurately assess the geological characteristics of any reserves that we now own or subsequently acquire, which may adversely affect our profitability and financial condition.
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.
We may request an increase to the capacity of the facility of up to $75.0 million provided that $25.0 million may be 48 Table of Contents solely for the purpose of providing additional availability to obtain cash collateralized LCs.
This presumption, in some cases, can be rebutted where the person or entity can demonstrate that it in fact does not or did not have authority directly or indirectly to determine the manner in which the relevant coal mining operation is conducted.
This presumption, in some cases, can be rebutted where the person or entity can demonstrate that it in fact does not or 39 Table of Contents did not have authority directly or indirectly to determine the manner in which the relevant coal mining operation is conducted.
Our inability in the future to maintain our New ABL Facility could materially adversely affect our liquidity and our business. 47 Table of Contents Operating results below current levels, or other adverse factors, including a significant increase in interest rates, could result in our being unable to comply with our covenants and payment obligations contained in our borrowing arrangements.
Our inability in the future to maintain our ABL Facility could materially adversely affect our liquidity and our business. Operating results below current levels, or other adverse factors, including a significant increase in interest rates, could result in our being unable to comply with our covenants and payment obligations contained in our borrowing arrangements.
Our profitability depends substantially on our ability to mine in a cost-effective manner coal reserves of the quality our customers need. Although we have coal reserves that we believe could support current production levels for multiple decades, estimating the size and quality of reserves requires significant judgment and could prove to be inaccurate.
Our profitability depends substantially on our ability to mine in a cost-effective manner coal reserves of the quality our customers need. Although we have coal reserves that we believe could support current production levels for more than a decade, estimating the size and quality of reserves requires significant judgment and could prove to be inaccurate.
Federal and state regulatory agencies have the authority to order any of our facilities to be temporarily or permanently closed under certain circumstances, which could materially adversely affect our ability to meet our customers’ demands.
Risks Relating to Regulatory and Legal Developments Federal and state regulatory agencies have the authority to order any of our facilities to be temporarily or permanently closed under certain circumstances, which could materially adversely affect our ability to meet our customers’ demands.
Several states in which we operate consider changes in workers’ compensation laws from time to time, which, if enacted, could adversely affect us. In addition, the U.S. Department of Labor has a legislative directive to periodically review operators’ financial standing and federal black lung liabilities, which could result in a substantial increase in required security, negatively impacting liquidity.
Several states in which we operate consider changes in workers’ compensation laws from time to time, which, if enacted, could adversely affect us. In addition, the DOL has a legislative directive to periodically review operators’ financial standing and federal black lung liabilities, which could result in a substantial increase in required security, negatively impacting liquidity.
In addition, actual coal tonnage recovered from identified reserve areas or properties and revenues and expenditures with respect to our reserves and resources may vary materially from estimates. Accordingly, our estimates may not accurately reflect our actual reserves and resources.
In addition, actual coal tonnage recovered from identified reserve areas or properties and revenues and expenditures with respect to our reserves 46 Table of Contents and resources may vary materially from estimates. Accordingly, our estimates may not accurately reflect our actual reserves and resources.
Alternatively, if a court were to find the choice of forum provision that is contained in our bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely affect our business, financial condition and results of operations. 51 Table of Contents Item 1B.
Alternatively, if a court were to find the choice of forum provision that is contained in our bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely affect our business, financial condition and results of operations. Item 1B. Unresolved Staff Comments None.
At December 31, 2023, we had $10.4 million of indebtedness outstanding, of which $8.6 million is scheduled to mature in the next three years. Our indebtedness could have important consequences to our business, particularly if the amount of our indebtedness should materially increase in the future.
At December 31, 2024, we had $5.8 million of indebtedness outstanding, of which $4.5 million is scheduled to mature in the next three years. Our indebtedness could have important consequences to our business, particularly if the amount of our indebtedness should materially increase in the future.
Item 1A. Risk Factors Summary Investment in our common stock is subject to various risks, including risks and uncertainties inherent in our business.
Item 1A. Risk Factors Summary Investment in our securities is subject to various risks, including risks and uncertainties inherent in our business.
We are required to: • maintain a comprehensive compliance function; • comply with rules promulgated by the New York Stock Exchange; • prepare and distribute periodic public reports in compliance with our obligations under the federal securities laws; • maintain internal policies; and • engage outside counsel and accountants in the above activities.
We are required to: • maintain a comprehensive compliance function; • comply with rules promulgated by the NYSE; • prepare and distribute periodic public reports in compliance with our obligations under the federal securities laws; • maintain internal controls and policies; and • engage outside counsel and accountants in the above activities.
The New ABL Agreement continues to include an asset-based revolving credit facility (the “New ABL Facility”), which among other things, provides for the issuance of LCs. Obligations secured by LCs may increase in the future, for example due to increased collateral obligations associated with black lung obligations.
The ABL Agreement includes an asset-based revolving credit facility (the “ABL Facility”), which among other things, provides for the issuance of LCs. Obligations secured by LCs may increase in the future, for example due to increased collateral obligations associated with black lung obligations.
If inflation were to remain at high levels for an extended period, or increase further, a related increase in our input costs could materially adversely affect our profitability. We purchase coal from third parties, for use in coal blending and for other purposes, for which ready substitutes may not be immediately available.
If inflation were to return to higher levels for an extended period, a related increase in our input costs could materially adversely affect our profitability. We purchase coal from third parties, for use in coal blending and for other purposes, for which ready substitutes may not be immediately available.
As a public company, we must comply with laws, regulations and requirements, certain corporate governance provisions of the Sarbanes-Oxley Act of 2002, related regulations of the SEC and the requirements of the New York Stock Exchange.
As a public company with securities listed on the New York Stock Exchange (“NYSE”), we must comply with laws, regulations and requirements, certain corporate governance provisions of the Sarbanes-Oxley Act of 2002, related regulations of the SEC and the requirements of the NYSE.
On June 1, 2017, the Trump administration announced that the U.S. would withdraw from the agreement, however, on February 19, 2021, the U.S. formally rejoined the Paris Agreement; • the EPA’s regulations to reduce the transport of nitrogen oxide and ozone on prevailing winds from the Midwest and South U.S. to states in the Northeast; • proposed EPA regulations to increase the stringency of the National Ambient Air Quality Standards for particulate matter emissions; • the EPA's February 2024 regulations increasing the stringency of the National Ambient Air Quality Standards for the primary (health-based) annual standard for PM2.5; • state and regional climate change initiatives implementing renewable portfolio standards or cap-and-trade schemes; • challenges to or denials of permits for new coal-fired power plants or retrofits to existing plants by state regulators and environmental organizations due to concerns related to GHG emissions from the new or existing plants; • private litigation against coal companies or power plant operators based on GHG-related concerns; • the Glasgow Climate Pact resulting from the 2021 United Nations Climate Change Conference (COP26) held from October 31 to November 13, 2021, which, though not legally binding, contains a plan to reduce use of coal by 40%; and • the agreement of the participating countries at the 2023 COP28 conference to call on governments worldwide to speed up the transition away from fossil fuels to renewables such as wind and solar power.
Ambassador to the United Nations to submit formal written notification of the United States’ withdrawal from the Paris Agreement; • the EPA’s regulations to reduce the transport of nitrogen oxide and ozone on prevailing winds from the Midwest and South U.S. to states in the Northeast; • proposed EPA regulations to increase the stringency of the National Ambient Air Quality Standards for particulate matter emissions; • the EPA's February 2024 regulations increasing the stringency of the National Ambient Air Quality Standards for the primary (health-based) annual standard for PM2.5; • state and regional climate change initiatives implementing renewable portfolio standards or cap-and-trade schemes; • challenges to or denials of permits for new coal-fired power plants or retrofits to existing plants by state regulators and environmental organizations due to concerns related to GHG emissions from the new or existing plants; 37 Table of Contents • private litigation against coal companies or power plant operators based on GHG-related concerns; • the Glasgow Climate Pact resulting from the 2021 United Nations Climate Change Conference (COP26) held from October 31 to November 13, 2021, which, though not legally binding, contains a plan to reduce use of coal by 40%; and • the agreement of the participating countries at the 2023 COP28 conference to call on governments worldwide to speed up the transition away from fossil fuels to renewables such as wind and solar power.
Risks Relating to Regulatory and Legal Developments The increasingly stringent regulation of the mining industry imposes significant costs on us, and future regulations or violations could increase those costs or limit our ability to produce coal.
The increasingly stringent regulation of the mining industry imposes significant costs on us, and future regulations or violations could increase those costs or limit our ability to produce coal.
Alpha produces coal that is sold directly to both U.S. and foreign customers and indirectly to foreign customers through U.S.-based companies. Coal export revenues accounted for approximately 74% of our coal revenues for the year ended December 31, 2023. Met coal accounted for approximately 95% of our coal revenues for the year ended December 31, 2023.
Alpha produces coal that is sold directly to both U.S. and foreign customers and indirectly to foreign customers through U.S.-based companies. Coal export revenues accounted for approximately 78% of our coal revenues for the year ended December 31, 2024. Met coal accounted for approximately 97% of our coal revenues for the year ended December 31, 2024.
Our estimated total reclamation and mine-closing liabilities were $205.4 million as of December 31, 2023, based upon permit requirements, the historical experience at our operations and a number of variables involving assumptions and estimates.
Our estimated total reclamation and mine-closing liabilities were $219.7 million as of December 31, 2024, based upon permit requirements, the historical experience at our operations and a number of variables involving assumptions and estimates.
Future sales of our common stock in the public market, or the perception that such sales may occur, could reduce our stock price, and any additional capital raised by us through the sale of equity or convertible securities may dilute your ownership. We may issue additional shares of common stock or convertible securities in subsequent public offerings.
Future issuances of our common stock in the public market, or the perception that such issuances may occur, could reduce our stock price, and any additional capital raised by us through the sale of equity or convertible securities may dilute your ownership.
As of December 31, 2023, we had outstanding surety bonds with third parties of approximately $177.1 million. Surety bond issuers and holders may demand additional collateral, unfavorable terms or higher fees.
As of December 31, 2024, we had outstanding surety bonds with third parties of approximately $182.8 million. Surety bond issuers and holders may demand additional collateral, unfavorable terms or higher fees.
Among other provisions, the IRA enacted a 15% corporate alternative minimum tax and a 1% excise tax on repurchases of corporate stock for tax years beginning after December 31, 2022. As of December 31, 2023, we have accrued a stock repurchase excise tax of $4.7 million related to our share repurchase program, which is recorded in treasury stock at cost.
Among other provisions, the IRA enacted a 15% corporate alternative minimum tax and a 1% excise tax on repurchases of corporate stock for tax years beginning after December 31, 2022. In the fourth quarter of 2024, we paid a stock repurchase excise tax of $4.7 million related to our share repurchase program, which was recorded in treasury stock at cost.
Expenditures for certain employee benefits could be materially higher than we have anticipated, which could increase our costs and adversely affect our financial results. Litigation regarding employee compensation could have a material adverse effect upon our liquidity and results of operations. We are responsible for certain liabilities under a variety of benefit plans and other arrangements with employees.
Expenditures for certain employee benefits could be materially higher than we have anticipated, which could increase our costs and adversely affect our financial results. We are responsible for certain liabilities under a variety of benefit plans and other arrangements with employees.
Numerous reports have expressed concern about the impacts of human activity, and in particular the emissions of GHG, such as carbon dioxide and methane, on global climate issues.
Global climate issues continue to attract considerable public and scientific attention. Numerous reports have expressed concern about the impacts of human activity, and in particular the emissions of GHG, such as carbon dioxide and methane, on global climate issues.
From time to time, legislation is proposed that could result in the reduction or elimination of certain U.S. federal income tax provisions currently available to companies engaged in the exploration, development, and production of coal reserves.
Certain U.S. federal income tax provisions currently available with respect to coal percentage depletion and exploration and development may be eliminated by future legislation. From time to time, legislation is proposed that could result in the reduction or elimination of certain U.S. federal income tax provisions currently available to companies engaged in the exploration, development, and production of coal reserves.
Coal sales to our largest customer during the year ended December 31, 2023 accounted for approximately 13% of our total revenues, and coal sales to our 10 largest customers accounted for approximately 74% of our total revenues.
Coal sales to our largest customer during the year ended December 31, 2024 accounted for approximately 16% of our total revenues, and coal sales to our 10 largest customers accounted for approximately 75% of our total revenues.
Access to additional funds from liquidity-generating transactions or other sources of external financing may not be available to us and, if available, would be subject to market conditions and certain limitations, including our credit rating and covenant restrictions in our revolving credit facility. Our indebtedness, as it may exist from time to time, exposes us to various risks.
Access to additional funds from liquidity-generating transactions or other sources of external financing may not be available to us and, if available, would be subject to market conditions and certain limitations, including our credit rating and covenant restrictions in our ABL Facility.
We maintain insurance policies that provide limited coverage for some, but not all, of these risks. Even where covered by insurance, these risks may not be fully covered, and insurers may contest their obligations to make payments. Failures by insurers to make payments could have a material adverse effect on our cash flows, results of operations or financial condition.
Even where covered by insurance, these risks may not be fully covered, and insurers may contest their obligations to make payments. Failures by insurers to make payments could have a material adverse effect on our cash flows, results of operations or financial condition.
The unfunded status of these obligations as of December 31, 2023 included $63.2 million of workers’ compensation obligations, net of expected insurance receivable amounts, $101.9 million of pension obligations and $107.3 million of black lung obligations. These obligations have been estimated based on assumptions including actuarial estimates, discount rates, and changes in health care costs.
The unfunded status of these obligations as of December 31, 2024 included $53.5 million of workers’ compensation obligations, net of expected insurance receivable amounts, $100.6 million of pension obligations and $114.3 million of black lung obligations. These obligations have been estimated based on assumptions including actuarial estimates, discount rates, and changes in health care costs.
Any failure to comply with those covenants may constitute a breach under the New ABL Facility that could result in the acceleration of all or a substantial portion of any outstanding indebtedness and termination of revolving credit commitments under the New ABL Facility.
Any failure to comply with those covenants may constitute a breach under the ABL Facility that could result in the acceleration of all or a substantial portion of any outstanding indebtedness and termination of revolving credit commitments under the ABL Facility. As of December 31, 2024, we are in compliance with the operating and financial covenants under the ABL Facility.
We, along with the mining industry generally, are currently facing a significant shortage of operating staff. Moreover, we are seeing an increasing number of those who leave our employment accept new positions outside the coal industry, further reducing the number of skilled employees available to us and leading to increased labor costs.
Moreover, we are seeing an increasing number of those who leave our employment accept new positions outside the coal industry, further reducing the number of skilled employees available to us and leading to increased labor costs.
If we are unable to provide the financial assurance that is required by state and federal law to secure our reclamation and coal lease obligations, our ability to mine or lease coal and, as a result, our results of operations could be materially and adversely affected.
If we are unable to provide the financial assurance that is required by state and federal law to secure our reclamation and coal lease obligations, our ability to mine or lease coal and, as a result, our results of operations could be materially and adversely affected. 49 Table of Contents Our indebtedness, as it may exist from time to time, exposes us to various risks.
Business—Environmental and Other Regulatory Matters—Clean Water Act—Wastewater Discharge.” MSHA and state regulators may also order the temporary or permanent closing of a mine in the event of certain violations of safety rules, accidents or imminent dangers. In addition, regulators may order changes to mine plans or operations due to their interpretation or application of existing or new laws or regulations.
Business—Environmental and Other Regulatory Matters—Clean Water Act—Wastewater Discharge.” MSHA and state regulators may also order the temporary or permanent closing of a mine in the event of certain violations of safety rules, accidents or imminent dangers.
In addition, the prices we pay for materials are strongly influenced by the global commodities markets. Coal mines consume large quantities of these commodities, such as steel, copper, rubber products, explosives and diesel and other liquid fuels. A rapid or significant increase in the cost of these commodities would increase our mining costs.
Coal mines consume large quantities of these commodities, such as steel, copper, rubber products, explosives and diesel and other liquid fuels. A rapid or significant increase in the cost of these commodities would increase our mining costs.
Risks Relating to Our Liquidity The need to maintain capacity for required LCs could limit our ability to provide financial assurance for self-insured obligations and negatively impact our ability to fund future working capital, capital expenditure or other general corporate requirements.
Risks Relating to Our Liquidity The need to maintain capacity for required LCs could limit our ability to provide financial assurance for self-insured obligations and negatively impact our ability to fund future working capital, capital expenditure or other general corporate requirements. On October 27, 2023, we entered into a new Credit Agreement (the “ABL Agreement”).
The existence of our share repurchase program could cause the price of our common stock to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for our common stock.
The existence of our share repurchase program could cause the price of our common stock to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for our common stock. Additionally, repurchases under our share repurchase program would diminish our cash reserves, which could adversely affect our operating results.
These include: • the 2015 Paris climate summit agreement, which resulted in voluntary commitments by 197 countries to reduce their GHG emissions and could result in additional firm commitments by various nations and states with respect to future GHG emissions.
These include: • the 2015 Paris climate summit agreement, which resulted in voluntary commitments by 197 countries to reduce their GHG emissions and could result in additional firm commitments by various nations and states with respect to future GHG emissions. On January 20, 2025, President Trump signed an executive order requiring the U.S.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIn addition to this periodic reporting, significant cybersecurity risks or threats may also be escalated to the Audit Committee as needed based upon our cyber incident reporting process.
Biggest changeIn addition to this periodic reporting, significant cybersecurity risks or threats may also be escalated to the Audit Committee as needed based upon our cyber incident reporting process. The Audit Committee reports regularly to the entire Board and reviews with the Board any major issues that arise at the committee level, which may include cybersecurity risks.
We track key performance indicators and cybersecurity metrics to evaluate the efficacy of our cybersecurity controls and practices. Further, our cybersecurity program is periodically reviewed by senior members of management and adjusted as needed in an effort to maintain the program’s agility and responsiveness as circumstances and technologies evolve, new cybersecurity threats emerge and regulations change.
We track key performance indicators and cybersecurity metrics to evaluate the efficacy of our cybersecurity controls and practices. Further, our cybersecurity program is periodically reviewed by senior members of management and adjusted as 53 Table of Contents needed in an effort to maintain the program’s agility and responsiveness as circumstances and technologies evolve, new cybersecurity threats emerge and regulations change.
Incident Response We maintain an incident response policy and program focused upon detecting, managing, documenting and reporting incidents affecting our systems and data, including those specific to cybersecurity. In the event of a significant cybersecurity 52 Table of Contents incident, we appoint a dedicated incident team, including a team leader, responsible for managing and coordinating incident response efforts.
Incident Response We maintain an incident response policy and program focused upon detecting, managing, documenting and reporting incidents affecting our systems and data, including those specific to cybersecurity. In the event of a significant cybersecurity incident, we appoint a dedicated incident team, including a team leader, responsible for managing and coordinating incident response efforts.
We separately operate an enterprise risk management (“ERM”) program to identify, evaluate and manage risks. Cybersecurity risks are evaluated alongside other critical business risks under the ERM program to align cybersecurity efforts with our broader business goals and objectives.
In addition, we operate an enterprise risk management (“ERM”) program to identify, evaluate and manage risks. Cybersecurity risks are evaluated alongside other critical business risks under the ERM program to align cybersecurity efforts with our broader business goals and objectives.
The Board may request follow-up data and presentations to address any specific concerns or recommendations. The Audit Committee . The Audit Committee reviews with our management team, including our Senior Vice President – Information Systems and Technology, our cybersecurity frameworks, policies, technologies, programs, opportunities, strategies and risks.
The Board may request follow-up data and presentations to address any specific concerns or recommendations. 54 Table of Contents The Audit Committee . The Audit Committee reviews with our management team, including our Senior Vice President – Information Systems and Technology, our cybersecurity frameworks, policies, technologies, programs, opportunities, strategies and risks.
The IT Department’s security team, a cross-functional group composed of members with substantial professional and technical information technology experience, oversees the cybersecurity program to help ensure the confidentiality, integrity and availability of the company’s systems and mitigate day-to-day threats and exposures.
The IT Department’s security team, a cross-functional group composed of members who all have 12 to 26 years of professional and technical information technology experience, oversees the cybersecurity program to help ensure the confidentiality, integrity and availability of the company’s systems and mitigate day-to-day threats and exposures.
This function is led by our Senior Vice President – Information Systems and Technology, who reports to our Chief Financial Officer.
Management’s Role Our IT Department addresses current and emerging cybersecurity matters. This function is led by our Senior Vice President – Information Systems and Technology, who reports to our Chief Financial Officer.
Removed
The Audit Committee reports regularly to the entire Board and reviews with the Board any major issues that arise at the committee level, which may include cybersecurity risks. 53 Table of Contents Management’s Role Our IT Department addresses current and emerging cybersecurity matters.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe following is a summary of the changes in our coal reserves and resources for the year-ended December 31, 2023: Changes in Coal Reserves (Tons in thousands) 12/31/2022 12/31/2023 Mining Complex Coal Reserves Acquired/Leased Pre-Feasibility (1) Change in Mine Plan Divested (2) Production Coal Reserves Met Aracoma 40,114 — 2,957 820 — (2,615) 41,276 Kepler 43,954 — — 116 (917) (1,963) 41,190 Kingston 32,892 — 6,262 1,724 — (2,221) 38,657 Marfork 106,210 354 — (4,455) — (4,456) 97,653 McClure/Toms Creek 72,094 — 612 (274) — (3,685) 68,747 Elk Run 41,442 — — — (12,985) (23) 28,434 Total 336,706 354 9,831 (2,069) (13,902) (14,963) 315,957 (1) Mineral areas subjected to Pre-feasibility study in current period.
Biggest changeThe following is a summary of the changes in our coal reserves and resources for the year-ended December 31, 2024: Changes in Coal Reserves (Tons in thousands) 12/31/2023 12/31/2024 Mining Complex Coal Reserves Acquired/Leased Change in Mine Plan Divested Production Coal Reserves Met Aracoma 41,276 — (636) — (2,585) 38,055 Kepler 41,190 — (944) — (1,773) 38,473 Kingston 38,657 181 (1,119) — (1,974) 35,745 Marfork 97,653 — (1,170) — (4,495) 91,988 McClure/Toms Creek 68,747 87 1,105 — (3,408) 66,531 Elk Run 28,434 — (407) — (180) 27,847 Total 315,957 268 (3,171) — (14,415) 298,639 58 Table of Contents Changes in Coal Resources (Tons in thousands) 12/31/2023 12/31/2024 Mining Complex Coal Resources Initial Assessment (1) Change in Mine Plan Divested Production Coal Resources Met Aracoma 131,383 — — — — 131,383 Kepler 32,866 — — (2,357) — 30,509 Kingston 26,662 — (684) — — 25,978 Marfork 156,436 — 3,258 — — 159,694 McClure/Toms Creek 43,629 — 20 — — 43,649 Power Mountain 54,683 — 5,781 — (3,378) 57,086 Elk Run 67,883 1,617 (33) — — 69,467 Total 513,542 1,617 8,342 (2,357) (3,378) 517,766 (1) Mineral areas subjected to initial assessment in current year.
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 a geologic, engineering, and economic assumptions.
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, land and operational support 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.
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.
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, 2023, the following estimated market pricing was utilized: Coal quality Market Pricing Per Ton (1) (2) High-Vol. A $162 High- Vol.
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). 55 Table of Contents In determining coal reserves as of December 31, 2024, the following estimated market pricing was utilized: Coal quality Market Pricing Per Ton (1) (2) High-Vol.
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.
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.
East Coast basis. 55 Table of Contents (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.
(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.
Coal Reserves and Resources As of December 31, 2023, we estimate that we owned or controlled approximately 316.0 million tons of marketable proven and probable bituminous coal reserves and approximately 513.5 million tons of in situ bituminous coal resources. Our coal reserve and resource estimates were prepared by Marshall Miller & Associates, Inc.
Coal Reserves and Resources As of December 31, 2024, we estimate that we owned or controlled approximately 298.6 million tons of marketable proven and probable bituminous coal reserves and approximately 517.8 million tons of in situ bituminous coal resources. Our coal reserve and resource estimates were prepared by Marshall Miller & Associates, Inc.
Risks Factors—Risks relating to regulatory and legal developments.” 56 Table of Contents 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 factors.
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 factors.
(2) Mineral areas subjected to Pre-feasibility study in the current year. Internal Controls Disclosure The preparation of coal reserve and resource estimates is conducted in accordance with the Company’s prescribed internal control procedures, which are designed to ensure the reliability of such estimates.
Internal Controls Disclosure The preparation of coal reserve and resource estimates is conducted in accordance with the Company’s prescribed internal control procedures, which are designed to ensure the reliability of such estimates.
The Company’s operations support 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. 57 Table of Contents The Company’s drilling, sample preparation and laboratory analysis are conducted in accordance with internal policies and procedures.
The Company’s 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.
In performing an initial assessment for purposes of determining coal resources as of December 31, 2023, the following estimated market pricing was utilized: Complex Market Pricing Per Ton (1) (2) Aracoma $154 Kepler $167 Kingston $181 Marfork $171 McClure/Toms Creek $177 Power Mountain $154 Elk Run $150 (1) Market pricing shown on U.S.
In performing an initial assessment for purposes of determining coal resources as of December 31, 2024, the following estimated market pricing was utilized: 56 Table of Contents Complex Market Pricing Per Ton (1) (2) Aracoma $197 Kepler $197 Kingston $211 Marfork $201 McClure/Toms Creek $198 Power Mountain $201 Elk Run $191 (1) Market pricing shown on U.S. East Coast basis.
The Company’s 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 the Company’s reserves and resources. The following map shows the locations of our material mining properties and corporate headquarters:
The Company’s 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.
The following is a summary of the Company’s estimated in situ inferred, indicated, and measured coal resources (exclusive of coal reserves) as of December 31, 2023 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 131,383 49,707 81,676 46,592 84,791 20,668 110,715 Kepler WV 32,866 25,857 7,009 596 32,270 3,901 28,965 Kingston WV 26,662 10,957 15,705 13,864 12,798 — 26,662 Marfork WV 156,436 47,377 109,059 61,168 95,268 12,408 144,028 McClure/Toms Creek VA 43,629 13,102 30,527 — 43,629 19,060 24,569 Power Mountain WV 54,683 23,739 30,944 16,695 37,988 22,446 32,237 Elk Run WV 67,883 22,360 45,523 — 67,883 8,681 59,202 Total 513,542 193,099 320,443 138,915 374,627 87,164 426,378 (1) Amounts shown exclusive of coal reserves.
The following is a summary of the Company’s estimated in situ inferred, indicated, and measured coal resources (exclusive of coal reserves) as of December 31, 2024 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 131,383 49,707 81,676 46,592 84,791 20,668 110,715 Kepler WV 30,509 23,500 7,009 596 29,913 17,590 12,919 Kingston WV 25,978 10,769 15,209 13,864 12,114 — 25,978 Marfork WV 159,694 47,415 112,279 61,168 98,526 10,378 149,316 McClure/Toms Creek VA 43,649 13,099 30,550 — 43,649 19,080 24,569 Power Mountain WV 57,086 21,759 35,327 15,110 41,976 27,237 29,849 Elk Run WV 69,467 21,997 47,470 — 69,467 8,705 60,762 Total 517,766 188,246 329,520 137,330 380,436 103,658 414,108 (1) Amounts shown exclusive of coal reserves.
B $140 Mid-Vol. $163 Low-Vol. $163 Thermal $74 (1) Market pricing shown on U.S. East Coast basis.
A $185 High- Vol. B $169 Mid-Vol. $188 Low-Vol. $189 Thermal $77 (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.
(2) Met and thermal pricing based on 10-year and 3-year average, respectively of forecasted pricing from pricing services. 54 Table of Contents The following is a summary of our estimated marketable proven and probable coal reserves as of December 31, 2023 as determined by Marshall Miller: 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 41,276 26,252 15,024 5,473 35,803 22,664 18,612 Kepler WV 41,190 23,031 18,159 258 40,932 15,065 26,125 Kingston WV 38,657 23,051 15,606 632 38,025 22,024 16,633 Marfork WV 97,653 53,333 44,320 2,214 95,439 50,651 47,002 McClure/Toms Creek VA 68,747 47,753 20,994 — 68,747 38,648 30,099 Elk Run WV 28,434 17,341 11,093 139 28,295 4,724 23,710 Total 315,957 190,761 125,196 8,716 307,241 153,776 162,181 (1) Minimum seam height generally 30 inches for underground mines.
The following is a summary of our estimated marketable proven and probable coal reserves as of December 31, 2024 as determined by Marshall Miller: 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 38,055 24,530 13,525 4,603 33,452 20,307 17,748 Kepler WV 38,473 21,478 16,995 209 38,264 12,577 25,896 Kingston WV 35,745 22,020 13,725 554 35,191 22,197 13,548 Marfork WV 91,988 51,204 40,784 2,176 89,812 46,359 45,629 McClure/Toms Creek VA 66,531 47,690 18,841 1,245 65,286 38,111 28,420 Elk Run WV 27,847 17,259 10,588 144 27,703 4,152 23,695 Total 298,639 184,181 114,458 8,931 289,708 143,703 154,936 (1) Minimum seam height generally 30 inches for underground mines.
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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% Met Aracoma WV — 41,276 — — — 36,836 4,440 28 % Kepler WV — — 5,026 36,164 — 41,190 — 42 % Kingston WV 20,584 — 1,632 9,722 6,719 10,528 28,129 41 % Marfork WV 64,318 — 2,555 26,132 4,648 88,588 9,065 30 % McClure/Toms Creek VA 6,265 — 60,936 — 1,546 68,747 — 31 % Elk Run WV — 28,434 — — — 28,434 — 21 % Total 91,167 69,710 70,149 72,018 12,913 274,323 41,634 (1) Kingston thermal reserves primarily proven and >1% sulfur; Marfork and McClure/Toms Creek thermal reserves primarily probable and (2) Recovery percentage defined as estimated coal reserves divided by related estimated in situ measured and indicated coal resources.
Added
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.
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(2) Inferred Resources were not considered material and have not been presented.
Added
Thermal (1) ≤ 1% > 1% Met Aracoma WV — 38,055 — — — 34,413 3,642 29 % Kepler WV — — 5,026 33,447 — 38,473 — 41 % Kingston WV 17,905 — 2,394 9,903 5,543 10,489 25,256 39 % Marfork WV 59,427 — 2,601 26,194 3,766 84,249 7,739 30 % McClure/Toms Creek VA 6,081 — 58,947 — 1,503 66,531 — 31 % Elk Run WV — 27,847 — — — 27,847 — 21 % Total 83,413 65,902 68,968 69,544 10,812 262,002 36,637 (1) Kingston thermal reserves primarily proven and >1% sulfur; Marfork and McClure/Toms Creek thermal reserves primarily probable and (2) Recovery percentage defined as estimated coal reserves divided by related estimated in situ measured and indicated coal resources.
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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% Met Aracoma WV — 131,383 — — — 58,564 72,819 21 % Kepler WV — — 6,948 25,918 — 30,514 2,352 48 % Kingston WV — — 3,189 23,473 — 26,662 — 27 % Marfork WV 104,124 — 3,684 43,799 4,829 60,693 95,743 30 % McClure/Toms Creek VA 8,049 — 35,580 — — 23,724 19,905 24 % Power Mountain WV — 54,683 — — — 5,938 48,745 31 % Elk Run WV — 67,883 — — — — 67,883 28 % Total 112,173 253,949 49,401 93,190 4,829 206,095 307,447 (1) Amounts shown exclusive of coal reserves.
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(2) Inferred resources were not considered material and have not been presented. 57 Table of Contents 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.
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However, also refer to “Item 1. Business—Environmental and Other Regulatory Matters” and “Item 1A.
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Thermal ≤ 1% > 1% Met Aracoma WV — 131,383 — — — 58,564 72,819 21 % Kepler WV — — 6,949 23,560 — 28,157 2,352 47 % Kingston WV — — 2,505 23,473 — 25,978 — 27 % Marfork WV 107,467 — 3,856 43,799 4,572 62,085 97,609 31 % McClure/Toms Creek VA 8,049 — 35,600 — — 23,744 19,905 25 % Power Mountain WV — 57,086 — — — 9,084 48,002 32 % Elk Run WV — 69,467 — — — 14,172 55,295 29 % Total 115,516 257,936 48,910 90,832 4,572 221,784 295,982 (1) Amounts shown exclusive of coal reserves.
Removed
(2) Mineral control released through transfer, termination or lapse of lease, or sale of property.
Added
The Company’s 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.
Removed
Changes in Coal Resources (Tons in thousands) 12/31/2022 12/31/2023 Mining Complex Coal Resources Initial Assessment (1) Pre-Feasibility (2) Change in Mine Plan Divested Production Coal Resources Met Aracoma 143,815 — (14,029) 1,597 — — 131,383 Kepler 34,246 — — (994) (386) — 32,866 Kingston 21,453 5,209 — — — — 26,662 Marfork 159,115 — — (2,679) — — 156,436 McClure/Toms Creek 43,044 — (2,692) 3,277 — — 43,629 Power Mountain 57,777 — — (953) — (2,141) 54,683 Elk Run 67,883 — — — — — 67,883 Total 527,333 5,209 (16,721) 248 (386) (2,141) 513,542 (1) Mineral areas subjected to initial assessment in current year.
Added
Risk Factors for further discussion of risks associated with the estimates of the Company’s reserves and resources. 59 Table of Contents The following map shows the locations of our material mining properties and corporate headquarters:

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosures Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report on Form 10-K. 59 Table of Contents Part II
Biggest changeItem 4. Mine Safety Disclosures Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report on Form 10-K. 60 Table of Contents Part II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeTotal Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (In thousands) (2)(3)(4) October 1, 2023 through October 31, 2023 132,460 $ 232.02 132,460 $ 626,717 November 1, 2023 through November 30, 2023 264,425 $ 253.67 264,425 $ 559,639 December 1, 2023 through December 31, 2023 124,118 $ 318.41 101,989 $ 527,619 521,003 498,874 (1) Includes 22,129 common shares repurchased from employees to satisfy the employees’ statutory tax withholdings upon the vesting of stock grants.
Biggest changeThe 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) October 1, 2024 through October 31, 2024 — $ — — $ 468,835 November 1, 2024 through November 30, 2024 — $ — — $ 468,835 December 1, 2024 through December 31, 2024 — $ — — $ 468,835 — — (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. (3) 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.
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.
(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. This amount does not include stock repurchase related fees and excise taxes.
(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.
Following the effectiveness of our name change on February 1, 2021, our ticker symbol on the New York Stock Exchange changed from “CTRA” to “AMR” effective on February 4, 2021. As of December 31, 2023, there were 86 registered holders of record of our common stock. The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.
Following the effectiveness of our name change on February 1, 2021, our ticker symbol on the New York Stock Exchange changed from “CTRA” to “AMR” effective on February 4, 2021. As of December 31, 2024, there were 66 registered holders of record of our common stock. The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.
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.
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. Repurchase of Common Stock The Company did not repurchase any shares of common stock during the fourth quarter of 2024.
Removed
Repurchase of Common Stock The following table summarizes information about shares of common stock that were repurchased during the fourth quarter of 2023.
Removed
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.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeFinancial Statements and Supplementary Data 80 Report of Independent Registered Public Accounting Firm (PCAOB ID: 49 ) 80 Consolidated Statements of Operations for the Years Ended December 31, 2023, 2022 and 2021 82 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2023, 2022 and 2021 83 Consolidated Balance Sheets as of December 31, 2023 and 2022 84 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2022 and 2021 86 Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2023, 2022 and 2021 88 Notes to Consolidated Financial Statements 89 (1) Business and Basis of Presentation 89 (2) Summary of Significant Accounting Policies 89 (3) Revenue 95 (4) Accumulated Other Comprehensive Loss 96 (5) Net Income per Share 97 (6) Inventories, Net 98 (7) Capital Stock 98 (8) Property, Plant, and Equipment, Net 100 (9) Other Non-current Assets 100 (10) Equity Method Investments 100 (11) Leases 101 (12) Accrued Expenses and Other Current Liabilities 103 (13) Long-Term Debt 103 (14) Acquisition-Related Obligations 104 (15) Asset Retirement Obligations 105 (16) Fair Value of Financial Instruments and Fair Value Measurements 105 (17) Income Taxes 107 (18) Employee Benefit Plans 109 3 (19) Stock-Based Compensation Awards 117 (20) Related Party Transactions 123 (21) Commitments and Contingencies 124 (22) Concentration of Credit Risk and Major Customers 127 (23) Segment Information 127
Biggest changeFinancial Statements and Supplementary Data 79 Report of Independent Registered Public Accounting Firm (PCAOB ID: 49 ) 79 Consolidated Statements of Operations for the Years Ended December 31, 2024, 2023 and 2022 81 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022 82 Consolidated Balance Sheets as of December 31, 2024 and 2023 83 Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022 84 Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2024, 2023 and 2022 86 Notes to Consolidated Financial Statements 87 (1) Business and Basis of Presentation 87 (2) Summary of Significant Accounting Policies 87 (3) Revenue 93 (4) Accumulated Other Comprehensive Loss 94 (5) Net Income per Share 95 (6) Inventories, Net 96 (7) Capital Stock 96 (8) Property, Plant, and Equipment, Net 97 (9) Other Non-current Assets 97 (10) Equity Method Investments 97 (11) Leases 98 (12) Accrued Expenses and Other Current Liabilities 100 (13) Long-Term Debt 100 (14) Asset Retirement Obligations 101 (15) Fair Value of Financial Instruments and Fair Value Measurements 101 (16) Income Taxes 102 (17) Employee Benefit Plans 104 3 (18) Stock-Based Compensation Awards 112 (19) Related Party Transactions 118 (20) Commitments and Contingencies 118 (21) Concentration of Credit Risk and Major Customers 122 (22) Segment Information 122
Item 6. [Reserved] 60 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 61 Results of Operations 64 Liquidity and Capital Resources 71 Critical Accounting Policies and Estimates 75 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 78 Item 8.
Item 6. [Reserved] 61 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 62 Results of Operations 65 Liquidity and Capital Resources 69 Critical Accounting Policies and Estimates 75 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 78 Item 8.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe following tables summarize certain financial information relating to our coal operations for the years ended December 31, 2023 and 2022: 66 Table of Contents 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 Less: 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 Less: Freight and handling costs (438,783) (227) (439,010) Less: Depreciation, depletion and amortization - production (1) (125,716) (9,952) (135,668) Less: Accretion on asset retirement obligations (14,886) (10,614) (25,500) Less: Amortization of acquired intangibles, net (8,523) — (8,523) Less: 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.
Biggest changeThe following tables summarize certain financial information relating to our coal operations for the years ended December 31, 2024 and 2023: 67 Table of Contents 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) % Less: 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) 166,105 135,668 30,437 22.4 % 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 % Less: Freight and handling costs - Met (503,306) (438,783) (64,523) (14.7) % Less: Depreciation, depletion and amortization - production - Met (1) (166,105) (125,716) (40,389) (32.1) % Less: Accretion on asset retirement obligations - Met (25,050) (14,886) (10,164) (68.3) % Less: Amortization of acquired intangibles, net - Met (6,700) (8,523) 1,823 21.4 % Less: 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.
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. 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 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.
Investing Activities. 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 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.
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.
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.
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. In estimating that rate, we use rates of return on high quality, fixed income investments.
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.
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. In estimating that rate, we use rates of return on high quality, fixed income investments.
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.
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.
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.
Sales of thermal coal were 1.8 million tons and 2.2 million tons, respectively, and accounted for approximately 10% and 13%, 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.
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.
For discussion on results of operations and financial condition pertaining to 2021 and year-over-year comparisons between 2022 and 2021, 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, 2022.
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.
Our domestic sales contracts are typically priced free on board (“FOB”) at our mines and on a short 63 Table of Contents 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.
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 64 Table of Contents delivered and on a metric ton basis.
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.
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 69 Table of Contents fashion, on terms acceptable to us, or at all.
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 is in need of capital investment to maximize functionality and minimize downtime due to mechanical issues.
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.
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.
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.
Item 7. 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, 2023 and 2022.
Item 7. 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.
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 75 Table of Contents and liabilities.
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.
The weighted average discount rate used to determine black lung benefit obligations was 5.13% for the year ended December 31, 2023. 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.
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.
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, 2023 and 2022 approximately 74% and 81%, respectively, of our coal revenues were derived from coal sales made to customers outside 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.
The Pension Plan investment targets are 58% equity securities and 42% fixed income funds (refer to Note 18 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 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.
A one percentage-point increase in the discount rate would increase the net periodic black lung benefit cost for the year ended December 31, 2023 by approximately $0.4 million and decrease the projected benefit obligation as of December 31, 2023 by approximately $10.3 million.
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.
At December 31, 2023, a valuation allowance of $48.1 million has been provided on deferred tax assets not expected to provide future tax benefits. Refer to Note 17 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K for additional disclosures on income taxes. Asset Impairment. U.S.
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. U.S.
Refer to Note 18 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, 2023 and 2022.
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.
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.
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.
See below for further discussion. 72 Table of Contents Additionally, we have long-term liabilities relating to asset retirement obligations, pension benefits, black lung benefits, postretirement life insurance benefits, and workers’ compensation benefits.
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.
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, 2023, our operations consisted of twenty-two active mines and nine coal preparation and load-out facilities, with approximately 4,160 employees.
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.
The weighted average discount rate used to determine the pension benefit obligation was 5.10% for the year ended December 31, 2023. 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 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.
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.
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. 77 Table of Contents
A one percentage-point increase in the discount rate would increase the net periodic pension cost for the year ended December 31, 2023 by approximately $1.7 million and decrease the projected benefit obligation as of December 31, 2023 by approximately $48.7 million.
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.
Refer to Note 18 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10- 76 Table of Contents K for a summary of these assumptions and additional disclosures related to our Pension Plan.
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.
Refer to Note 17 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”).
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”).
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, 2023 and 2022, sales of met coal were 15.3 million tons and 14.2 million tons, respectively, and accounted for approximately 90% and 87%, respectively, of our coal sales volume.
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.
Refer to Note 15 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, 2023 and 2022. Retirement Plans.
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. 75 Table of Contents Retirement Plans.
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, 2023 by approximately $2.2 million and increase the projected benefit obligation as of December 31, 2023 by approximately $59.1 million. Coal Workers’ Pneumoconiosis.
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.
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 76 Table of Contents December 31, 2024 by approximately $0.5 million and increase the projected benefit obligation as of December 31, 2024 by approximately $12.8 million.
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. 70 Table of Contents Liquidity and Capital Resources Overview 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.
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 Overview 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.
Refer to Note 18 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, 2023 and 2022. 77 Table of Contents Income Taxes.
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.
As of December 31, 2023, we had estimated black lung benefit obligations of approximately $107.3 million, including amounts reported as current, which are net of assets of $2.6 million that are held in a tax-exempt trust fund. For the year ended December 31, 2023, we recorded a net periodic benefit cost of $3.8 million for our black lung benefit 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 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.
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.
At December 31, 2023, we had recorded asset retirement obligation liabilities of $205.4 million, including amounts reported as current. While the precise amount of these future costs cannot be determined with certainty, as of December 31, 2023, we estimate that the aggregate undiscounted cost of final mine closures is approximately $486.6 million.
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.
Factors Affecting Our Results of Operations Sales Agreements We manage our commodity price risk for coal sales through the use of coal supply agreements.
We manage our commodity price risk for coal sales through the use of coal supply agreements.
Dividend Program Refer to Note 7 for information related to our dividend program. 74 Table of Contents Cash Flows 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.
Dividend Program Refer to Note 7 for information related to our dividend program. Cash Flows 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 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 to be used in 2024 is expected to be 6.20%.
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%.
As of December 31, 2023, we had 316.0 million tons of reserves, which included 303.0 million tons of proven and probable metallurgical reserves and 12.9 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.
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.
Refer to Note 18 for further disclosures related to this obligation. 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. The rating outlook was noted as stable.
Refer to Note 17 for further disclosures related to this obligation. 71 Table of Contents 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.
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.
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.
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.
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.
As of December 31, 2023, we had the following cash collateral on our Consolidated Balance Sheets: (in thousands ) December 31, 2023 Long-term restricted cash $ 115,918 Long-term restricted investments 40,597 Short-term and long-term deposits 5,382 Total cash collateral $ 161,897 71 Table of Contents 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.
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.
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 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. 74 Table of Contents 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.
The amount of any potential impairment is equal to the excess of an asset group’s carrying value over its estimated fair value.
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 net change in cash, cash equivalents, and restricted cash was attributable to the following: Year Ended December 31, 2023 2022 2021 Cash flows (in thousands): Net cash provided by operating activities $ 851,159 $ 1,484,005 $ 174,943 Net cash used in investing activities (166,000) (329,357) (89,855) Net cash used in financing activities (656,428) (981,868) (147,045) Net increase (decrease) in cash and cash equivalents and restricted cash $ 28,731 $ 172,780 $ (61,957) Operating Activities.
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.
Liquidity The following table summarizes our total liquidity as of December 31, 2023: (in thousands ) December 31, 2023 Cash and cash equivalents $ 268,207 Credit facility availability (1) 94,104 Minimum liquidity requirement (75,000) Total liquidity $ 287,311 (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.
Liquidity 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) 112,851 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.
For the year ended December 31, 2023, we recorded a net periodic benefit cost of $2.7 million for our Pension Plan and have recorded a net obligation of $101.9 million which is net of assets of $376.5 million.
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.
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.
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.
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 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.
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.
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.
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.
It is therefore not presently possible to estimate the cost to the company of complying with the rules. 73 Table of Contents 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.
We expect to spend between $210.0 million and $240.0 million on capital expenditures during 2024. At the midpoint of guidance, this total includes approximately $171 million in sustaining maintenance capital, approximately $33 million in planned projects to invest in mine development, and approximately $21 million in carryover from 2023 due to timing and availability of supplies and contract labor.
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.
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.
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.
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.
The Australian Premium Low Volatile declined from its quarter-close level to $315.00 per metric ton on February 15, 2024. The U.S. 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.
Since then, the Australian Premium Low Volatile decreased from quarter-close levels to $190.00 per metric ton, as of February 17, 2025. The U.S. 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.
Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022 Revenues The following table summarizes information about our revenues during the years ended December 31, 2023 and 2022: Year Ended December 31, Increase (Decrease) (In thousands, except for per ton data) 2023 2022 $ or Tons % Coal revenues $ 3,456,630 $ 4,092,987 $ (636,357) (15.5) % Other revenues 14,787 8,605 6,182 71.8 % Total revenues $ 3,471,417 $ 4,101,592 $ (630,175) (15.4) % Tons sold 17,072 16,378 694 4.2 % Coal revenues.
Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 Revenues 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.
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 $25.0 million to our Pension Plan for the year ended December 31, 2023.
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.
Income Tax Expense The following table summarizes information about our income tax expense during the years ended December 31, 2023 and 2022: Year Ended December 31, Increase (Decrease) (In thousands) 2023 2022 $ % Income tax expense $ (123,503) $ (106,205) $ (17,298) (16.3) % Income taxes.
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.
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. The U.S. 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. The U.S.
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. The U.S. 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. The U.S.
Refer to the “Non-GAAP Coal revenues” section below for further detail on coal revenues for the year ended December 31, 2023 compared to the prior year period. 64 Table of Contents Cost and Expenses The following table summarizes information about our costs and expenses during the years ended December 31, 2023 and 2022: Year Ended December 31, Increase (Decrease) (In thousands) 2023 2022 $ % Cost of coal sales (exclusive of items shown separately below) $ 2,356,138 $ 2,285,969 $ 70,169 3.1 % Depreciation, depletion and amortization 136,869 107,620 29,249 27.2 % Accretion on asset retirement obligations 25,500 23,765 1,735 7.3 % Amortization of acquired intangibles, net 8,523 19,498 (10,975) (56.3) % Selling, general and administrative expenses (exclusive of depreciation, depletion and amortization shown separately above) 82,390 71,618 10,772 15.0 % 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) % Total costs and expenses $ 2,608,332 $ 2,520,713 $ 87,619 3.5 % Cost of coal sales.
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. 65 Table of Contents 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.
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.
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.
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.
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.
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”).
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.
Adjusted EBITDA decreased $18.7 million, or 51.8%, for the year ended December 31, 2023 compared to the prior year period.
Coal revenues decreased $510.1 million, or 14.8%, for the year ended December 31, 2024 compared to the prior year period.
Depreciation, depletion and amortization increased $29.2 million, or 27.2%, for the year ended December 31, 2023 compared to the prior year period. The increase was primarily due to an increase in capital expenditures. Amortization of acquired intangibles, net.
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.
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.
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.
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.
As of December 31, 2024, we have one reportable operating segment: Met. Our Met segment operations consist of high-quality met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch.
As of December 31, 2023, we had the following outstanding surety bonds and LCs: (in thousands ) December 31, 2023 Surety bonds $ 177,109 Letters of credit (1) $ 60,896 (1) The LCs outstanding are under the New ABL Agreement dated October 27, 2023. Refer to Note 21, part (c) for further disclosures on off-balance sheet arrangements.
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) $ 42,149 (1) The LCs outstanding are under the ABL Agreement dated October 27, 2023.
Results of Operations Our results of operations for the years ended December 31, 2023 and 2022 are discussed in these “Results of Operations” presented below.
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.
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. Refer to Note 13 for additional disclosures on long-term debt.
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.
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 favorable permanent differences for the percentage depletion allowance and the foreign-derived intangible income deduction.
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.
This is lower than the year-ago period when the capacity utilization rate was 80.5%. 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. Business Overview We are a Tennessee-based mining company with operations across Virginia and West Virginia.
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.
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.
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) .
Coal revenues decreased $636.4 million, or 15.5%, for the year ended December 31, 2023 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 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.
Contractual Obligations The following is a summary of our significant contractual obligations as of December 31, 2023: (in thousands ) 2024 2025 2026 2027 2028 After 2028 Total Minimum royalties $ 14,357 $ 14,394 $ 13,160 $ 11,901 $ 11,851 $ 89,025 $ 154,688 Coal purchase commitments 236,848 — — — — — 236,848 Unconditional purchase obligations (1) 251,038 66,675 — — — — 317,713 Total $ 502,243 $ 81,069 $ 13,160 $ 11,901 $ 11,851 $ 89,025 $ 709,249 (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.
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.
Our year ended December 31, 2023 results of operations were impacted by volatility in coal indices stemming from these factors. 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.
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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAny cash borrowings under the facility would bear a floating rate of interest. No cash borrowings were outstanding under the facilities as of December 31, 2023 or 2022. Refer to Note 13 for additional information. As of December 31, 2023 and 2022, we had investments in trading securities of $40.6 million and $151.8 million respectively.
Biggest changeAny cash borrowings under the facility would bear a floating rate of interest. No cash borrowings were outstanding under the facility as of December 31, 2024 or 2023. Refer to Note 13 for additional information.
As of December 31, 2023 and 2022, the remaining maturities of our acquired debt securities was less than 12 months. Foreign Currency Risk Our transactions are denominated in U.S. dollars, and, as a result, we do not have material exposure to currency exchange-rate risks.
As of December 31, 2024 and 2023, the remaining maturities of our acquired debt securities was less than 12 months. Foreign Currency Risk Our transactions are denominated in U.S. dollars, and, as a result, we do not have material exposure to currency exchange-rate risks.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Commodity Price Risk We manage our commodity price risk for coal sales through the use of coal supply agreements. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors Affecting Our Results of Operations” for information on our sales commitments for 2024.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Commodity Price Risk We manage our commodity price risk for coal sales through the use of coal supply agreements. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors Affecting Our Results of Operations” for information on our sales commitments for 2025.
Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows. 79 Table of Contents
Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows. 78 Table of Contents
While the fair value of these investments is exposed to risk with respect to changes in market rates of interest, we do not believe exposure to changes in interest rates is material to our Consolidated Financial Statements. We manage risk by investing in shorter term highly rated debt obligations (primarily U.S. government securities).
While the fair value of these investments is exposed to risk with respect to changes in market rates of interest, we do not believe exposure to changes in interest rates is material to our Consolidated Financial Statements. We manage risk by investing in shorter term highly rated debt obligations.
As of December 31, 2023, our forecasted diesel fuel usage and fixed price diesel fuel purchase commitments for 2024 are as follows: Budgeted Usage in Gallons % Priced Average Realized Price per Gallon Diesel fuel 23.2 million 73.7 % $3.41 Interest Rate Risk As of December 31, 2023, we maintain a senior secured asset-based revolving credit facility, which was refinanced in the fourth quarter of 2023, under which we may borrow up to $155.0 million (less amounts outstanding for LCs).
As of December 31, 2024, our forecasted diesel fuel usage and fixed price diesel fuel purchase commitments for 2025 are as follows: Budgeted Usage in Gallons % Priced Average Realized Price per Gallon Diesel fuel 23.3 million 68.0 % $2.84 Interest Rate Risk As of December 31, 2024, we maintain a senior secured asset-based revolving credit facility, under which we may borrow up to $155.0 million (less amounts outstanding for LCs).
We have exposure to commodity price risk for supplies that are used directly or indirectly in the normal course of production such as diesel fuel, steel and other items such as explosives.
We have exposure to commodity price risk for supplies that are used directly or indirectly in the normal course of production such as diesel fuel, steel and other items such as explosives. We manage our risk for these items through strategic sourcing contracts in normal quantities with our suppliers.
We manage our risk for these items through strategic sourcing contracts in normal quantities with our suppliers. 78 Table of Contents The market price of diesel fuel fluctuates due to changes in production, seasonality, and other market factors generally outside of our control. Increased fuel costs may have a negative impact on our results of operations and financial condition.
The market price of diesel fuel fluctuates due to changes in production, seasonality, and other market factors generally outside of our control. Increased fuel costs may have a negative impact on our results of operations and financial condition.
Added
As of December 31, 2024 and 2023, we had investments in trading securities of $43.1 million and $40.6 million respectively, primarily consisting of U.S. government securities.

Other AMR 10-K year-over-year comparisons