Financial Performance - Q4 2024 operating profit was $3.9 million and net income was $7.6 million, a significant recovery from prior year losses [4]. - Q4 2024 Adjusted EBITDA increased to $9.0 million, up 26.8% from Q4 2023, while FY 2024 Adjusted EBITDA rose to $59.4 million, up 116% from 2023 [4][3]. - FY 2024 consolidated net income increased to $33.7 million, or $4.55 per share, compared to a net loss of $39.6 million, or $5.29 per share in 2023 [4]. - Revenues for Q4 2024 were $70,418,000, a 24% increase from $56,757,000 in Q4 2023 [41]. - Gross profit for the year ended December 31, 2024, was $29,756,000, compared to $14,591,000 in 2023, representing a 103% increase [41]. - Net income for Q4 2024 was $7,564,000, compared to a net loss of $43,967,000 in Q4 2023 [41]. - Consolidated Adjusted EBITDA for Q4 2024 was $8,994,000, up from $7,090,000 in Q4 2023, indicating a 27% increase [42]. - The company reported earnings per share of $1.04 for Q4 2024, compared to a loss of $5.88 per share in Q4 2023 [41]. - Segment Adjusted EBITDA for the year ended December 31, 2024, was $60,357,000, compared to $25,137,000 in 2023, indicating a significant increase of 139.5% [46]. - Operating profit for the year ended December 31, 2024, was $35,705,000, a recovery from an operating loss of $70,137,000 in 2023 [46]. - The total revenues for the year ended December 31, 2024, were $237,708,000, a decrease from $214,794,000 in 2023, representing a decline of 10.7% [46]. Segment Performance - Coal Mining segment delivered 6,133 thousand tons in 2024, with revenues of $20.4 million, and an operating profit of $2.0 million, a turnaround from a loss of $62.3 million in 2023 [8][9]. - North American Mining segment revenues grew to $34.9 million in 2024, with an operating profit of $0.8 million, compared to an operating loss of $0.6 million in 2023 [12][13]. - North American Mining executed contracts expected to deliver net present value after-tax cash flows of approximately $20 million over terms ranging from 6 to 20 years [21]. - The outlook for the Coal Mining segment customers has improved, with new contracts expected to enhance long-term growth [32]. Cash Flow and Capital Management - The company had consolidated cash of $72.8 million and total debt of $99.5 million as of December 31, 2024 [6]. - In 2024, the company paid $6.6 million in dividends and repurchased approximately 317,000 shares for $9.9 million [7]. - Consolidated capital expenditures are expected to total approximately $58 million in 2025, with significant cash flow generation anticipated [31]. - The company maintains a conservative capital structure while pursuing growth opportunities [33]. Operational Focus - The company is focused on strategic diversification to generate cash for reinvestment or distribution to investors [33]. - The company emphasizes operational excellence and environmental stewardship in its business practices [34]. - Long-lived asset impairment charges for the year ended December 31, 2024, were $0, compared to $65,887,000 in 2023, indicating a significant reduction in impairment losses [46]. - Operating expenses for the year ended December 31, 2024, totaled $70,285,000, compared to $68,614,000 in 2023, reflecting a slight increase of 2.4% [46]. Reporting and Compliance - The Annual Report on Form 10-K has been filed with the SEC, providing detailed financial information [35].

Financial Performance - Total revenue for 2024 was $237.7 million, an increase of 10.6% from $214.8 million in 2023[373] - Operating profit for 2024 was $35.7 million, compared to a loss of $70.1 million in 2023, marking a significant turnaround[373] - In 2024, NACCO Industries reported a net income of $33.741 million, a significant increase of $73.328 million compared to a net loss of $39.587 million in 2023[382] - The company recorded an income tax benefit of $0.1 million in 2024 on income before tax of $33.6 million, compared to a benefit of $24.6 million on a loss of $64.2 million in 2023[378] - Operating profit increased by $95.7 million in 2024, reaching $24.3 million, largely due to the absence of a long-lived asset impairment charge and business interruption insurance recoveries[406] Revenue Breakdown - The Coal Mining segment generated revenues of $68.6 million in 2024, down from $85.4 million in 2023, while NAMining revenues increased to $119.6 million from $90.5 million[373] - The Minerals Management segment reported revenues of $34.6 million in 2024, up from $33.0 million in 2023[373] - Total revenues for the Coal Mining segment in 2024 were $68.611 million, a decrease from $85.415 million in 2023, resulting in a gross loss of $10.764 million[404] - Total tons delivered by the North American Mining segment decreased to 54,963 in 2024 from 56,655 in 2023, while total revenues increased by 32.6% to $119.6 million[409][410] - Revenues decreased by 19.7% in 2024 compared to 2023, primarily due to reduced customer requirements at MLMC caused by a boiler issue at the Red Hills Power Plant[405] Expenses and Charges - Interest expense increased to $5.6 million in 2024 from $2.5 million in 2023 due to higher average borrowings and interest rates[374] - A non-cash impairment charge of $65.9 million was recorded in 2023 due to indicators of impairment at MLMC[367] - The company recognized a pension settlement charge of $1.8 million in 2023 related to the termination of the Combined Defined Benefit Plan[376] - The company plans to terminate its defined benefit pension plan in 2025, which is expected to lead to a significant non-cash settlement charge and a substantial year-over-year decrease in net income and EBITDA compared to 2024[432] Cash Flow and Debt - The company experienced a decrease in net cash provided by operating activities, totaling $22.289 million in 2024, down $32.201 million from $54.490 million in 2023[382] - NACCO's total debt increased to $99.514 million in 2024, up $63.558 million from $35.956 million in 2023, leading to a debt to total capitalization ratio of 20%[395] - NACCO Natural Resources amended its revolving credit facility to increase commitments to $200 million and extend maturity to September 2028, with $70 million borrowed as of December 31, 2024[386] - The average borrowing under the revolving credit facility was $27.2 million in 2024, with a weighted-average annual interest rate of 8.83%, compared to $6.2 million and 6.06% in 2023[388] Future Outlook and Plans - The company plans to spend approximately $58 million on property, plant, and equipment in 2025, with allocations of $13 million for Coal Mining, $17 million for NAMining, and $20 million for Minerals Management[393] - NACCO anticipates a modest year-over-year increase in consolidated operating profit for 2025, supported by solid customer demand in the Coal Mining segment[419] - NAMining expects to generate increasing operating profit over time, with new contracts projected to deliver approximately $20 million in net present value cash flows[422] - Mitigation Resources is expected to achieve full-year profitability starting in 2025, with plans for growth in ecological restoration services and mitigation projects[430] - Consolidated capital expenditures are projected to be approximately $58 million in 2025, with allocations of $13 million for Coal Mining, $17 million for NAMining, $20 million for Minerals Management, and $8 million for ReGen Resources and other growth businesses[433] Market Conditions - The average price of West Texas Intermediate crude oil was $76.55 in 2024, down from $77.64 in 2023, while Henry Hub natural gas prices decreased to $2.19 from $2.54[414] - The Coal Mining segment anticipates a reduction in operating profit in 2025 due to expected decreases in contractually determined per ton sales prices[421] Strategic Initiatives - The company is pursuing growth and diversification by leveraging its core natural resources management skills, with a focus on acquiring additional mineral interests and improving the outlook for its Coal Mining segment[434] - ReGen Resources was established in 2023 to develop energy projects, including solar and gas-fired generation, primarily on reclaimed mining properties[431] - The company aims to maintain a conservative capital structure while generating cash for reinvestment or distribution to investors through share repurchases or dividends[435]

Core Viewpoint - NACCO Industries will release its 2024 Fourth Quarter and Full Year financial results on March 5, 2025, followed by a conference call on March 6, 2025 to discuss these results [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter and full year of 2024 will be released after market close on March 5, 2025 [1]. - A conference call is scheduled for March 6, 2025 at 8:30 a.m. Eastern Time to discuss the financial results [2]. Group 2: Conference Call Details - The conference call can be accessed via a toll-free number for North America and an international number, with a conference ID provided [2]. - A replay of the call will be available until March 13, 2025, with specific numbers for toll-free and international access [2]. - The call will also be webcast live on NACCO's Investor Relations website, with an archive available two hours after the live call ends [2]. Group 3: Company Overview - NACCO Industries focuses on delivering aggregates, minerals, reliable fuels, and environmental solutions through its portfolio of NACCO Natural Resources businesses [3].

Financial Data and Key Metrics Changes - The company reported an operating profit of $19.7 million and net income of $15.6 million, equating to $2.14 per share, compared to an operating loss of $6.3 million and a net loss of $3.8 million or a loss of $0.51 per share in the previous year [18] - EBITDA increased to $25.7 million from $400,000 in 2023, including $13.6 million of insurance recovery income [18] Business Line Data and Key Metrics Changes - Coal Mining segment reported an operating profit of $19.9 million and segment adjusted EBITDA of $22.1 million, compared to an operating loss of $4.7 million in 2023 [19] - Minerals Management's revenues increased 54% to $8.8 million, with operating profit improving to $6.2 million, up 71% from $3.6 million in the previous year [20] - North American Mining reported an operating loss of approximately $0.5 million, down from a profit of $900,000 in 2023, with segment adjusted EBITDA at $2.2 million [20] Market Data and Key Metrics Changes - North American Mining's revenue increased 24% year-over-year due to favorable pricing and delivery mix at limestone quarries, despite lower customer demand [13] - The company anticipates solid customer demand at coal mining operations in 2025, benefiting from the absence of temporary price concessions [25] Company Strategy and Development Direction - The company is optimistic about its trajectory and the performance of its business segments, including efforts to protect its coal mining business [18] - The company is expanding its operations outside Florida, with ongoing projects in Texas, Nebraska, Arkansas, and Virginia, leveraging relationships with top aggregate producers [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's future, citing favorable macroeconomic trends and expected increases in profitability across segments [25][24] - The company is taking actions to terminate its defined benefit pension plan to eliminate future volatility from pension obligations [27] Other Important Information - The company ended the quarter with approximately $63 million in cash and $70 million in debt, and amended its revolving credit facility to increase commitments to $200 million [28] Q&A Session Summary Question: What happens when a customer is facing financial difficulties? - The response indicated that actions depend on the specific situation, including potentially pulling employees away and securing equipment [30] Question: Are you able to say how many tons that contract is? - The company noted that as it diversifies into different minerals, tonnage becomes a less meaningful statistic [31] Question: Would you expect tonnage to bounce back after the decline due to rain and customer maintenance? - Management indicated that typically, tonnage would bounce back, but hurricanes have impacted operations in Florida [33] Question: How do you categorize the businesses as consolidated and unconsolidated? - The categorization relies on control and is evaluated on a contract-by-contract basis [42] Question: Are there M&A opportunities to accelerate diversification? - The company is expanding rapidly outside Florida and has relationships with several top aggregate producers, indicating potential for growth [44]

Financial Performance - Revenues for the three months ended September 30, 2024, increased to $61,656 thousand, up 32.4% from $46,546 thousand in the same period of 2023[6] - Gross profit for the three months ended September 30, 2024, was $7,244 thousand, compared to a loss of $2,174 thousand in the same period of 2023[6] - Net income for the three months ended September 30, 2024, was $15,635 thousand, a significant improvement from a net loss of $3,832 thousand in the same period of 2023[9] - Basic earnings per share for the three months ended September 30, 2024, was $2.14, compared to a loss of $0.51 per share in the same period of 2023[6] - Operating profit for the three months ended September 30, 2024, was $19,699 thousand, compared to an operating loss of $6,267 thousand in the same period of 2023[6] Cash and Cash Equivalents - Total cash and cash equivalents at the end of the period was $63,052 thousand, down from $128,167 thousand at the end of the same period in 2023[13] - The company had net cash used for operating activities of $(2,879) thousand for the nine months ended September 30, 2024, compared to $63,020 thousand in the same period of 2023[13] - The company experienced a net cash provided by financing activities of $11,877 thousand for the nine months ended September 30, 2024[13] Business Segments - The company operates three business segments: Coal Mining, NAMining, and Minerals Management, focusing on natural resources and environmental solutions[17] - The Coal Mining segment operates under long-term contracts, with MLMC's contract running through April 1, 2032, and is affected by customer demand and diesel fuel price fluctuations[20] - The NAMining segment operates in five states and includes exclusive responsibility for the Thacker Pass lithium project in northern Nevada[27] - The Minerals Management segment generates income primarily through leasing royalty and mineral interests, with a focus on gas, oil, and coal production[29] Expenditures and Investments - The company made expenditures for property, plant, and equipment totaling $(30,697) thousand for the nine months ended September 30, 2024[13] - Expenditures for property, plant, and equipment totaled $8,296 million for the three months ended September 30, 2024, significantly down from $23,759 million in the prior year, a decrease of 65.0%[79] - The company is targeting investments of up to $20 million in the Minerals Management segment for Q4 2024, with future investments expected to be accretive[168] Insurance Recoveries - The company reported business interruption insurance recoveries of $13,612 thousand for the three months ended September 30, 2024[6] - The company recognized income of $13.6 million in Q3 2024 related to business interruption insurance recoveries due to a boiler outage at the Red Hills Power Plant[21] Stockholder Equity - As of September 30, 2024, total stockholders' equity was $397,310,000, a decrease from $428,445,000 on September 30, 2023[15] - The balance of retained earnings as of September 30, 2024, was $367,814,000, down from $404,478,000 on September 30, 2023[15] Revenue Recognition - Revenue from goods transferred at a point in time decreased to $17.134 million in Q3 2024 from $17.966 million in Q3 2023, while revenue from services transferred over time increased to $44.522 million from $28.580 million[56] - Revenue from the Minerals Management segment is recognized when control of the product is transferred, with immaterial differences noted between estimated and actual amounts received for oil and natural gas sales[52] - The Company recognizes revenue from mitigation credits at the point control transfers to the customer, with fluctuations in revenue primarily due to changes in customer demand[49] Future Outlook - The company plans to continue focusing on expanding its mining operations and enhancing its mineral management services to drive future growth[81] - The company anticipates significant year-over-year increases in Coal Mining operating profit and Segment Adjusted EBITDA in Q4 2024, primarily due to higher earnings from unconsolidated coal mining operations[161] - Mitigation Resources expects to achieve profitability beginning in 2025 based on current expectations for new projects and timing of permit approvals[176] Other Financial Metrics - The effective income tax rate for Q3 2024 was 18.3%, compared to 34.5% in Q3 2023[113] - Interest expense increased to $1.386 million in Q3 2024, reflecting higher average borrowings and interest rates[114] - The debt to total capitalization ratio increased to 15% as of September 30, 2024, compared to 9% at December 31, 2023[131]

Financial Performance - Q3 2024 operating profit reached $19.7 million, a significant increase from a $6.3 million operating loss in Q3 2023, primarily due to $13.6 million in business interruption insurance income[1][2] - Net income for Q3 2024 was $15.6 million, compared to a net loss of $3.8 million in Q3 2023[1][2] - EBITDA for Q3 2024 was $25.7 million, a substantial increase from $423,000 in Q3 2023[2] - Revenues for the three months ended September 30, 2024, increased to $61,656,000 from $46,546,000 in the same period last year, representing a 32.3% growth[41] - Gross profit for the three months ended September 30, 2024, was $7,244,000 compared to a loss of $2,174,000 in the prior year, indicating a significant recovery[41] - Net income for the three months ended September 30, 2024, was $15,635,000, a turnaround from a net loss of $3,832,000 in the same quarter of 2023[41] - Basic earnings per share for the three months ended September 30, 2024, were $2.14, compared to a loss of $0.51 per share in the same period last year[41] - Operating profit for the three months ended September 30, 2024, was $19,699,000, a substantial improvement from an operating loss of $6,267,000 in the prior year[41] - Total revenues for the nine months ended September 30, 2024, were $167.29 million, a decrease from $158.037 million in the same period of 2023[45][46] - Gross profit for the nine months ended September 30, 2024, was $21.28 million, compared to a gross loss of $20.305 million in the previous year[45][46] - Segment Adjusted EBITDA for the nine months ended September 30, 2024, was $50.772 million, an increase from $18.726 million in the same period of 2023[45][46] - Operating profit for the nine months ended September 30, 2024, was $31.822 million, while the previous year reported an operating loss of $2.703 million[45][46] - Earnings from unconsolidated operations for the nine months ended September 30, 2024, totaled $42.054 million, compared to $37.662 million in the same period of 2023[45][46] - Business interruption insurance recoveries amounted to $13.612 million for the nine months ended September 30, 2024[45] Segment Performance - Coal Mining segment reported an operating profit of $19.9 million in Q3 2024, recovering from a loss of $4.7 million in Q3 2023, despite lower revenues[4][5] - North American Mining revenues increased to $32.3 million in Q3 2024, up from $21.7 million in Q3 2023, driven by higher reimbursed costs and favorable pricing[11] - Minerals Management revenues improved to $8.8 million in Q3 2024, compared to $5.7 million in Q3 2023, with operating profit rising to $6.2 million from $3.6 million[17] - The coal mining segment generated revenues of $17,706,000 for the three months ended September 30, 2024, down from $18,665,000 in the same period last year[43] Future Outlook - Full-year 2024 capital expenditures are expected to total approximately $69 million, with $38 million planned for the fourth quarter[22] - The company anticipates significant year-over-year increases in Coal Mining operating profit and Segment Adjusted EBITDA in Q4 2024, driven by improved results at Mississippi Lignite Mining Company[8] - North American Mining expects to see increased operating profit and Segment Adjusted EBITDA in Q4 2024, supported by amended limestone contracts and expanded scope of work[13] - Full-year 2024 net income is expected to increase significantly compared to 2023, reflecting overall improvements across segments[21] - The Minerals Management segment anticipates a moderate production decline in 2025, with expected unlevered after-tax returns on invested capital in the mid-teens as the business matures[27] - Mitigation Resources expects to achieve profitability beginning in 2025, based on current expectations for new projects and timing of permit approvals[28] Strategic Initiatives - The Company is terminating its defined benefit pension plan, expecting a noncash settlement charge in 2025 upon termination[29] - The Company is pursuing growth through acquisitions of additional mineral interests and new contracts at Mitigation Resources and North American Mining, which should be accretive to the long-term outlook[31] - NACCO is focused on managing coal production costs and maximizing efficiencies to help customers be more competitive, which benefits the Coal Mining segment[33] - NACCO established ReGen Resources to develop solar and other energy-related projects on reclaimed mining properties, addressing the increasing demand for power generation sources[34] - The Company maintains a conservative capital structure while pursuing strategic diversification to generate cash for reinvestment[35] - The Company has ten mitigation banks and four permittee-responsible mitigation projects across several states, indicating a strong foundation for growth in Mitigation Resources[28] Market Considerations - The Company believes that fluctuations in natural gas prices and renewable energy availability could affect coal demand from its customers[33] - The Company is committed to maintaining high levels of customer service and operational excellence with a focus on safety and environmental stewardship[35] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $16,618,000, slightly up from $16,760,000 in the same period last year[43] - Operating expenses for the nine months ended September 30, 2024, were $50.033 million, compared to $48.036 million in the same period of 2023[45][46] - The cost of sales for the nine months ended September 30, 2024, was $146.01 million, a slight increase from $150.447 million in the previous year[45][46] - Depreciation, depletion, and amortization for the nine months ended September 30, 2024, totaled $18.95 million, compared to $21.429 million in the same period of 2023[45][46]

Consolidated Financial Performance - The company reported an operating profit of $19.7 million for Q3 2024, a significant improvement from a $6.3 million operating loss in Q3 2023, marking a $25.966 million increase [2][3] - Net income for Q3 2024 was $15.6 million, compared to a net loss of $3.8 million in Q3 2023, reflecting a $19.467 million improvement [2][3] - The Q3 2024 results included $13.6 million in business interruption insurance income, which contributed to the overall financial improvement [3][7] Segment Performance Coal Mining - Coal Mining segment delivered 5,809 thousand tons in Q3 2024, slightly up from 5,733 thousand tons in Q3 2023 [5] - Revenues from the Coal Mining segment were $17.7 million in Q3 2024, down from $18.7 million in Q3 2023, primarily due to lower deliveries at Mississippi Lignite Mining Company [5][7] - The segment achieved an operating profit of $19.9 million in Q3 2024, compared to a loss of $4.7 million in Q3 2023, driven by improved operational efficiencies and the insurance recoveries [6][8] North American Mining - North American Mining revenues increased to $32.3 million in Q3 2024 from $21.7 million in Q3 2023, primarily due to higher reimbursed costs and favorable pricing [12] - Despite the revenue growth, the segment reported an operating loss of $0.5 million in Q3 2024, down from a profit of $0.9 million in Q3 2023, attributed to higher expenses and a reserve charge [13][12] Minerals Management - The Minerals Management segment saw revenues rise to $8.8 million in Q3 2024 from $5.7 million in Q3 2023, with operating profit increasing to $6.2 million from $3.6 million [15][16] - The improvements were mainly due to higher production volumes from assets acquired in late 2023 [16] Outlook - The company anticipates significant year-over-year increases in Coal Mining operating profit and Segment Adjusted EBITDA for Q4 2024, driven by improved results at Mississippi Lignite Mining Company and higher deliveries [10][20] - North American Mining expects to see operating profit and Segment Adjusted EBITDA increase in Q4 2024, supported by amended contracts and expanded scopes of work [13][25] - The Minerals Management segment is projected to experience a decrease in operating profit and Segment Adjusted EBITDA for Q4 2024 compared to 2023, influenced by market expectations for natural gas and oil prices [17][18] Capital Expenditures and Financial Position - The company had consolidated cash of $63.1 million and total debt of $70.2 million as of September 30, 2024 [4] - Full-year 2024 capital expenditures are expected to total approximately $69 million, with $38 million planned for Q4 2024 [22][15]

Group 1 - NACCO Industries will release its 2024 Third Quarter financial results on October 30, 2024, after market close [1] - A conference call to discuss the financial results will be held on October 31, 2024, at 8:30 a.m. Eastern Time [1] - The conference call can be accessed via telephone or webcast, with a replay available until November 7, 2024 [1] Group 2 - NACCO Industries specializes in delivering aggregates, minerals, reliable fuels, and environmental solutions through its portfolio of businesses [2] - Additional information about NACCO Industries can be found on its website [2]

Financial Data and Key Metrics Changes - The company's operating profit for Q2 2024 increased by 321% year-over-year, with a reported operating profit of $6.2 million compared to $2.5 million in Q2 2023. Excluding a $4.5 million gain on the sale of a legacy land asset, the operating profit still increased over 60% from the previous year [4][10][11] - Consolidated net income for Q2 2024 was $6 million or $0.81 per share, compared to $2.5 million or $0.34 per share in Q2 2023 [9][10] - EBITDA rose to $13.5 million from $9.2 million year-over-year, with the gain on sale included in these results [10] Business Line Data and Key Metrics Changes - The Coal Mining segment reported an operating profit of $2.8 million, a significant improvement from an operating loss of $4.7 million in Q2 2023. Segment adjusted EBITDA was $5.7 million [11][12] - North American Mining's operating profit improved by 39% to $3.1 million, with adjusted EBITDA increasing by 36% to $5.5 million compared to the previous year [7][12] - Minerals Management's operating profit increased due to the previously mentioned gain on sale, but revenues declined by 39% primarily due to lower natural gas and oil prices [7][8] Market Data and Key Metrics Changes - The Coal Mining segment's revenues decreased due to fewer coal deliveries, but operational efficiency improved year-over-year as the company established itself in a new mine area [5][6] - The North American Mining segment diversified into additional minerals, including phosphate mining for a new customer in Florida, contributing to the segment's growth [7] Company Strategy and Development Direction - The company is optimistic about the growth prospects in its North American Mining segment, focusing on expanding relationships with existing customers and acquiring new ones [19][20] - The company aims to build a diversified portfolio of businesses to mitigate risks associated with reliance on coal mining for power generation [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook for the remainder of 2024, anticipating significant improvements in the Coal Mining segment and contributions from North American Mining growth initiatives [9][12] - The company expects consolidated net income to increase in the second half of 2024 compared to the same period in 2023, despite anticipated higher income tax expenses and net interest expenses [15][16] Other Important Information - The company ended the quarter with approximately $62 million in cash and $61 million in debt, with $89 million available under its revolving credit facility [17] - The company repurchased approximately 108,000 shares for $3.3 million under an existing share repurchase program [17] Q&A Session Summary Question: Growth prospects for North American Mining - Management highlighted success in expanding relationships with existing customers and acquiring new customers, with a focus on diversifying product lines and geographic reach [19][20] Question: Opportunities in phosphate mining - Management confirmed ongoing efforts to identify additional phosphate customers, indicating a fresh approach to this segment [24] Question: Capital costs for replenishing inventory - Management indicated a reinvestment pace of $20 million per year, but did not provide a specific capital cost for replenishing inventory [25] Question: Oil production decline - Management explained that the decline in oil production is part of a long-term strategy, focusing on both active producing wells and those that may produce in the future [26][27] Question: Capital expenditure in coal operations - Management clarified that capital expenditures are carefully balanced and may vary due to timing of investments rather than a change in strategy [28][29] Question: Insurance recovery on boiler outage - Management provided mixed visibility on insurance recovery efforts related to the boiler outage, indicating ongoing work but no specific numbers [31][32] Question: Free cash flow and working capital - Management noted that working capital fluctuations are normal and do not follow typical manufacturing patterns, with expectations for normalization over time [33][35] Question: Return on investment across segments - Management indicated that the highest returns are seen in unconsolidated coal mining operations and legacy natural gas assets, with a balanced approach to capital allocation across all segments [36][37][38]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _______________________________________________________________________________________________________________________________________________________________________________________________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...