VARRIOF r MET COAL Third Quarter 2020 Results October 28, 2020 Warrior Met Coal Page 1 Forward looking statements These slides contain, and the officers and representatives of Warrior Met Coal, Inc. (the "Company") may from time to time make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in these slides that address ...

Warrior Met Coal, Inc. (NYSE:HCC) Q3 2020 Earnings Conference Call October 28, 2020 4:30 PM ET Company Participants Walt Scheller – Chief Executive Officer Dale Boyles – Chief Financial Officer Conference Call Participants David Gagliano – BMO Capital Markets Lucas Pipes – B. Riley Securities Chris Terry – Deutsche Bank Operator Good afternoon. My name is Raghu, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Met Coal Third Quarter 2020 Financial R ...

Financial Data and Key Metrics Changes - The company recorded a net loss of approximately $9 million or a loss of $0.18 per diluted share in Q2 2020, compared to a net income of $125 million or $2.43 per diluted share in Q2 2019 [16] - Adjusted EBITDA was $20 million in Q2 2020, down from $176 million in the same period of 2019, primarily driven by a 34% decrease in sales volume and a 38% decrease in average net selling prices [17] - Total revenues were approximately $164 million in Q2 2020, compared to $398 million in the same period last year, reflecting the impact of lower sales volumes and average net selling prices [18] Business Line Data and Key Metrics Changes - Sales volumes in Q2 2020 were 1.5 million short tons, down from 2.2 million short tons in the same quarter last year [11] - Production volume in Q2 2020 was 2.1 million short tons, slightly down from 2.2 million short tons produced in the same quarter last year [12] - The gross price realization for Q2 2020 was 100% of the premium Low Vol FOB Australian index price, higher than the 97% achieved in the prior-year period [13] Market Data and Key Metrics Changes - The average net selling price per short ton decreased approximately 38% in Q2 2020 compared to the same period in 2019, with a Platts Premium Low-Vol FOB Australian index price averaging $85 per metric ton [19] - Global pig iron production was down significantly, averaging 20% to 35% for Q2 2020, while China's production grew by 2.2% for the same period [8][7] - The Australian PLV was valued at $145 per metric ton before a major correction, closing at $116 per metric ton by the end of Q2 2020 [9] Company Strategy and Development Direction - The company has delayed the development of the Blue Creek project until at least early 2021, focusing on preserving cash and liquidity [29] - The company intends to adjust production rates in accordance with demand and manage potential disruption risks due to COVID-19 [35] - The company maintains a strong balance sheet and adequate liquidity, allowing it to weather prolonged economic challenges [37] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q3 volumes, noting that major steel demand sectors have started to show positive improvements [32] - The company expects current inventory levels to remain elevated through year-end, adjusting production rates based on demand [35] - Management highlighted the need for significant changes in market conditions to see improvements in met coal pricing [36] Other Important Information - The company reported a positive free cash flow of $32 million in Q2 2020, with cash used for capital expenditures and mine development costs of $31 million [25] - The total available liquidity at the end of Q2 2020 was $268 million, consisting of cash and cash equivalents of $221 million [28] Q&A Session Summary Question: Expectations for Q3 operating metrics - Management expects a slight strengthening in Q3 and Q4, with production rates adjusted to match sales expectations [41] Question: Capital allocation for full year 2020 - The company is rationalizing capital expenditures while continuing to invest in key projects like the 4 North mine [42][43] Question: Inventory management and production rates - Management intends to match production with sales volumes to avoid further inventory build [48] Question: Market demand and sales split - Sales split for the quarter was 75% in Europe and 25% in South America, with expectations to resume sales in Asia [49] Question: Volume commitments for the second half of the year - Management anticipates a gradual return to normal volume commitments, moving back towards 70%-80% [53][55] Question: Pricing expectations for Q3 - Pricing is expected to remain range-bound, with no significant increases anticipated in the near term [57] Question: Concerns about COVID-19 impacts - The company has had a few positive cases but has not experienced significant outbreaks, and is prepared for potential shutdowns [66]

Financial Performance - Q2 2020 vs Q2 2019 - Revenue decreased by 59% to $163.7 million from $397.6 million[6] - Net loss was $9.2 million, a 107% decrease compared to a net income of $125.5 million[6] - Adjusted EBITDA decreased by 89% to $19.5 million from $175.9 million[6] - Free Cash Flow decreased by 100% to $0.9 million from $197.2 million[6] Financial Performance - Six Months Ended June 30, 2020 vs 2019 - Revenue decreased by 50% to $390.4 million from $775.9 million[7] - Net income decreased by 95% to $12.4 million from $235.9 million[7] - Adjusted EBITDA decreased by 77% to $81.2 million from $356.9 million[7] - Free Cash Flow decreased by 102% to -$4.5 million from $293.7 million[7] Production and Sales - Q2 2020 production volume was 2.116 million short tons, a 4% decrease compared to 2.195 million short tons in Q2 2019[6] - Q2 2020 sales volume was 1.472 million short tons, a 34% decrease compared to 2.240 million short tons in Q2 2019[6]