[Forward-Looking Statements](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section outlines the inherent risks and uncertainties associated with forward-looking statements in the report - The report contains forward-looking statements, identified by specific terms, which are inherently subject to **risks and uncertainties**[8](index=8&type=chunk) - Key risks encompass **global pandemics, inflation, tariffs, customer relations, rising costs, labor issues, competition, litigation, cybersecurity threats, and various operational and regulatory challenges**[8](index=8&type=chunk)[11](index=11&type=chunk) [Part I. Financial Information](index=6&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed financial statements and management's discussion and analysis of financial performance [Item 1. Financial Statements](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section provides the unaudited condensed financial statements and detailed notes for Warrior Met Coal, Inc [Condensed Statements of Operations](index=7&type=section&id=Condensed%20Statements%20of%20Operations) This section presents the company's unaudited condensed statements of operations for the specified periods Condensed Statements of Operations (in thousands, except per-share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $297,523 | $396,524 | $597,466 | $900,036 | | Total Costs and Expenses | $289,800 | $325,620 | $607,127 | $680,055 | | Operating Income (Loss) | $7,723 | $70,904 | $(9,661) | $219,982 | | Net Income (Loss) | $5,606 | $70,711 | $(2,562) | $207,700 | | Basic Net Income (Loss) per Share | $0.11 | $1.35 | $(0.05) | $3.98 | | Diluted Net Income (Loss) per Share | $0.11 | $1.35 | $(0.05) | $3.97 | | Dividends per Share | $0.08 | $0.08 | $0.16 | $0.66 | [Condensed Balance Sheets](index=8&type=section&id=Condensed%20Balance%20Sheets) This section presents the company's unaudited condensed balance sheets as of June 30, 2025, and December 31, 2024 Condensed Balance Sheets (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------------- | :-------------------------- | :---------------- | | Total Current Assets | $852,745 | $887,062 | | Total Assets | $2,645,402 | $2,591,516 | | Total Current Liabilities | $185,627 | $170,430 | | Total Liabilities | $565,117 | $500,699 | | Total Stockholders' Equity | $2,080,285 | $2,090,817 | [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) This section presents the company's unaudited condensed statements of cash flows for the specified periods Condensed Statements of Cash Flows (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | $48,463 | $251,033 | | Net Cash Used in Investing Activities | $(172,097) | $(223,309) | | Net Cash Provided by (Used in) Financing Activities | $15,490 | $(56,898) | | Net Decrease in Cash, Cash Equivalents and Restricted Cash | $(108,144) | $(29,174) | | Cash, Cash Equivalents and Restricted Cash at End of Period | $390,988 | $709,023 | [Condensed Statements of Changes in Stockholders' Equity](index=10&type=section&id=Condensed%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section presents the company's unaudited condensed statements of changes in stockholders' equity Condensed Statements of Changes in Stockholders' Equity (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Common Stock, End of Period | $548 | $545 | $548 | $545 | | Additional Paid in Capital, End of Period | $290,677 | $281,801 | $290,677 | $281,801 | | Retained Earnings, End of Period | $1,839,636 | $1,816,617 | $1,839,636 | $1,816,617 | | Total Stockholders' Equity, End of Period | $2,080,285 | $2,048,387 | $2,080,285 | $2,048,387 | [Notes to Condensed Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies and specific financial line items [Note 1. Business and Basis of Presentation](index=11&type=section&id=Note%201.%20Business%20and%20Basis%20of%20Presentation) This note describes Warrior Met Coal's business as a steelmaking coal supplier and the basis of financial statement presentation - Warrior Met Coal is a U.S.-based, low-cost producer and exporter of **premium quality steelmaking coal (HCC)** from Alabama, primarily serving Europe, South America, and Asia[23](index=23&type=chunk)[80](index=80&type=chunk) - Ancillary revenues are generated from **natural gas** extracted as a byproduct and **royalty revenues** from leased properties[23](index=23&type=chunk)[71](index=71&type=chunk) - The Collective Bargaining Agreement with the labor union expired on **April 1, 2021**, with negotiations for a new contract ongoing[25](index=25&type=chunk)[89](index=89&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=11&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's significant accounting policies, including revenue recognition and estimates - Significant accounting policies remain **consistent with the 2024 Annual Report**[26](index=26&type=chunk) - Financial statements rely on **management estimates and assumptions**, which may differ from actual results[27](index=27&type=chunk) - Revenue is recognized upon **transfer of control of goods** to customers, with pricing for average pricing contracts based on estimated consideration[33](index=33&type=chunk) - The company maintains **trade credit insurance** on most customers, historically recognizing no material credit losses[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 3. Inventories, net](index=12&type=section&id=Note%203.%20Inventories%2C%20net) This note provides a breakdown of the company's net inventories, including coal and raw materials Inventories, net (in thousands) | Inventory Type | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Coal | $105,972 | $118,504 | | Raw materials, parts, supplies and other, net | $108,943 | $89,086 | | Total inventories, net | $214,915 | $207,590 | [Note 4. Income Taxes](index=13&type=section&id=Note%204.%20Income%20Taxes) This note details income tax expenses and benefits, including the impact of the new One, Big, Beautiful Bill Act (OBBBA) Income Tax Expense (Benefit) (in thousands) | Period | 2025 | 2024 | | :--------------------- | :--------------- | :--------------- | | 3 Months Ended June 30 | $4,310 (expense) | $8,519 (expense) | | 6 Months Ended June 30 | $(1,720) (benefit) | $27,641 (expense) | - The **One, Big, Beautiful Bill Act (OBBBA)**, enacted July 4, 2025, updates the IRC Section 250 Deduction to FDDEI, reducing the statutory tax rate to **14%** for such income, effective after December 31, 2025[40](index=40&type=chunk)[121](index=121&type=chunk)[134](index=134&type=chunk) - OBBBA also classifies metallurgical coal as a **critical mineral** eligible for a **2.5% advanced manufacturing production tax credit (45X Credit)** through 2029 and temporarily decreases the royalty rate for coal leases on federal lands to not more than **7%** through 2034[40](index=40&type=chunk)[88](index=88&type=chunk) [Note 5. Debt](index=13&type=section&id=Note%205.%20Debt) This note outlines the company's debt structure, primarily Senior Secured Notes and the ABL Facility Debt Summary (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | Interest Rate | Final Maturity | | :------------------- | :------------ | :---------------- | :------------ | :------------- | | Senior Secured Notes | $156,517 | $156,517 | 7.875% | December 2028 | | ABL Borrowings | $— | $— | Varies | December 2026 | | Debt discount | $(2,592) | $(2,905) | | | | Total debt | $153,925 | $153,612 | | | - The company has paid down **$193.5 million** in principal on the Senior Secured Notes since inception[42](index=42&type=chunk)[164](index=164&type=chunk) - As of June 30, 2025, there were **no outstanding loans** under the ABL Facility, with **$2.5 million** in letters of credit issued and **$113.5 million** of availability[46](index=46&type=chunk)[159](index=159&type=chunk) [Note 6. Leases](index=14&type=section&id=Note%206.%20Leases) This note details the company's lease arrangements, including finance lease assets and liabilities Lease Information (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------------- | :------------ | :---------------- | | Finance lease right-of-use assets, net | $128,787 | $56,702 | | Total finance lease liabilities | $81,780 | $19,425 | | Weighted average remaining lease term (months) | 76.9 | 17.9 | | Weighted average discount rate | 7.24% | 7.25% | Lease Expense (in thousands) | Lease Cost Type | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $6,233 | $8,206 | $12,679 | $20,812 | | Amortization of leased assets | $5,733 | $5,775 | $11,457 | $11,533 | | Interest on lease liabilities | $1,858 | $2,322 | $3,167 | $2,673 | | Net lease cost | $13,824 | $16,303 | $27,303 | $35,018 | [Note 7. Net Income (Loss) per Share](index=15&type=section&id=Note%207.%20Net%20Income%20(Loss)%20per%20Share) This note details the calculation of basic and diluted net income (loss) per share for the specified periods Net Income (Loss) per Share (in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $5,606 | $70,711 | $(2,562) | $207,700 | | Basic EPS | $0.11 | $1.35 | $(0.05) | $3.98 | | Diluted EPS | $0.11 | $1.35 | $(0.05) | $3.97 | [Note 8. Commitments and Contingencies](index=16&type=section&id=Note%208.%20Commitments%20and%20Contingencies) This note covers environmental accruals, litigation, transportation agreements, and coal royalty expenses - The company accrues for environmental expenses related to mine reclamation but had **no other environmental or litigation accruals** as of June 30, 2025[53](index=53&type=chunk)[54](index=54&type=chunk) - Transportation and throughput agreements include annual minimum tonnage guarantees, but **no liability was recorded** as of June 30, 2025[55](index=55&type=chunk) Coal Royalty Expenses (in millions) | Period | 2025 | 2024 | | :--------------------- | :---- | :---- | | 3 Months Ended June 30 | $18.9 | $33.2 | | 6 Months Ended June 30 | $41.2 | $76.1 | [Note 9. Stockholders' Equity](index=16&type=section&id=Note%209.%20Stockholders'%20Equity) This note details authorized shares, stock repurchase programs, and dividend declarations - The company has **$59.4 million** remaining authorized for share repurchases under the New Stock Repurchase Program[61](index=61&type=chunk) - The regular quarterly cash dividend was increased to **$0.08 per share** in February 2024[62](index=62&type=chunk)[156](index=156&type=chunk) - A special cash dividend of **$0.50 per share** was declared and paid in February/March 2024[62](index=62&type=chunk)[158](index=158&type=chunk) [Note 10. Derivative Instruments](index=17&type=section&id=Note%2010.%20Derivative%20Instruments) This note describes the company's use of natural gas swap contracts to hedge price exposure - The company uses natural gas swap contracts to hedge price exposure, with **2,750,000 MMBtu contracts outstanding** as of June 30, 2025, a decrease from 5,500,000 MMBtu at December 31, 2024[64](index=64&type=chunk)[175](index=175&type=chunk) Natural Gas Swap Contract Gains/Losses (in millions) | Period | Realized Loss (2025) | Unrealized Gain (2025) | Unrealized Loss (2025) | | :--------------------- | :------------------- | :--------------------- | :--------------------- | | 3 Months Ended June 30 | $(0.4) | $1.8 | N/A | | 6 Months Ended June 30 | $(0.9) | N/A | $(0.4) | [Note 11. Fair Value of Financial Instruments](index=18&type=section&id=Note%2011.%20Fair%20Value%20of%20Financial%20Instruments) This note presents the fair value measurements of financial liabilities, including natural gas swap contracts and Senior Secured Notes Fair Value Measurements of Natural Gas Swap Contracts (in thousands) | Date | Level 2 | Total | | :-------------- | :------ | :---- | | June 30, 2025 | $1,356 | $1,356 | | December 31, 2024 | $1,835 | $1,835 | - The estimated fair value of the Senior Secured Notes was approximately **$158.9 million** as of June 30, 2025, based on Level 2 observable market data[70](index=70&type=chunk) [Note 12. Segment Information](index=18&type=section&id=Note%2012.%20Segment%20Information) This note details the company's operating segments, now including Blue Creek, aggregated into a single Mining segment - The company now has three operating segments: Mine No. 4, Mine No. 7, and the Blue Creek mine, aggregated into one reportable segment called **"Mining"**[72](index=72&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - Natural gas and royalty businesses are reported under an **"All Other"** category, as they do not meet the criteria for reportable segments[73](index=73&type=chunk)[92](index=92&type=chunk) - The Chief Executive Officer (CODM) measures financial performance and allocates resources based on **Segment Adjusted EBITDA**[72](index=72&type=chunk)[95](index=95&type=chunk) Segment Revenues (in thousands) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Mining | $288,491 | $390,424 | $583,424 | $888,423 | | All other | $9,032 | $6,099 | $14,042 | $11,613 | | Total revenues | $297,523 | $396,524 | $597,466 | $900,036 | Segment Profit (in thousands) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Segment profit | $62,079 | $129,120 | $111,277 | $341,531 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides a detailed narrative of the company's financial condition and operational results for the specified periods [Overview](index=21&type=section&id=Overview) This overview describes Warrior Met Coal's business as a premium steelmaking coal producer and market dynamics - As of December 31, 2024, Mine No. 4 and Mine No. 7 had approximately **82.4 million metric tons** of recoverable reserves, with the undeveloped Blue Creek mine containing **69.0 million metric tons**[81](index=81&type=chunk) - The company's high-quality coal is ideally suited as **coking coal for steel manufacturing** due to its low sulfur and low-to-medium ash content[81](index=81&type=chunk) - Demand for the company's coal is highly correlated to the **global steelmaking industry**, influenced by cyclicality, technology, and substitutes[82](index=82&type=chunk) [Update on the Development of Blue Creek](index=21&type=section&id=Update%20on%20the%20Development%20of%20Blue%20Creek) This section provides an update on the Blue Creek mine development, including increased capacity and production milestones - Blue Creek mine's nameplate capacity increased by **25% to 5.4 million metric tons**, boosting overall company capacity by **75% to 12.7 million metric tons per year**[83](index=83&type=chunk) - The Blue Creek project is **ahead of schedule**, with longwall startup anticipated in early Q1 2026[84](index=84&type=chunk) - First commercial sales of **217 thousand metric tons** from Blue Creek occurred in Q2 2025, ahead of schedule[85](index=85&type=chunk) Blue Creek Production and Investment | Metric | 2025 (Expected) | 2026 (Expected) | 2027 (Expected) | To Date (Investment) | Total Project Cost (Estimate) | | :------------------------- | :-------------- | :-------------- | :-------------- | :------------------- | :---------------------------- | | Production (k metric tons) | 900 | 3,600 | 4,400 | N/A | N/A | | Investment (millions) | $225-$250 | N/A | N/A | $823.5 | $995-$1,075 | [Recent Developments](index=23&type=section&id=Recent%20Developments) This section covers recent market conditions, including coal prices, and the impact of the One, Big, Beautiful Bill Act (OBBBA) - Premium low-vol index prices declined **24% YoY in Q2 2025**, averaging **$184.22 per metric ton**, due to weak steel demand and economic slowdown[86](index=86&type=chunk) - The Platts Index price for premium LV coal was **$182.00 per metric ton** as of July 14, 2025, expected to remain between $182.00 and $195.00 for the rest of the year[86](index=86&type=chunk) - The OBBBA introduces a permanent **33.34% deduction for FDDEI** (reducing tax rate to 14%), a **2.5% 45X Credit** for metallurgical coal, and temporarily decreases federal coal lease royalty rates to not more than **7%** through 2034[88](index=88&type=chunk) [Collective Bargaining Agreement](index=23&type=section&id=Collective%20Bargaining%20Agreement) This section notes the expiration of the Collective Bargaining Agreement and ongoing negotiations - The Collective Bargaining Agreement expired on **April 1, 2021**, with negotiations for a new contract ongoing[89](index=89&type=chunk) [How We Evaluate Our Operations](index=23&type=section&id=How%20We%20Evaluate%20Our%20Operations) This section describes the company's operating segments and key metrics used for performance evaluation - The company's operating segments now include Mine No. 4, Mine No. 7, and the Blue Creek mine, aggregated into a single **"Mining"** reportable segment[90](index=90&type=chunk)[91](index=91&type=chunk) - Key performance metrics include **Segment Adjusted EBITDA, sales volumes, average net selling price, cash cost of sales, and Adjusted EBITDA**[93](index=93&type=chunk) Key Operating Metrics | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Segment Adjusted EBITDA | $62,079 | $129,120 | $111,277 | $341,531 | | Metric tons sold (thousands) | 2,013 | 1,904 | 3,983 | 3,835 | | Metric tons produced (thousands) | 2,094 | 1,970 | 4,139 | 3,831 | | Average net selling price per metric ton | $143.31 | $205.05 | $146.48 | $231.66 | | Cash cost of sales per metric ton | $111.53 | $136.39 | $117.63 | $141.82 | | Adjusted EBITDA | $53,568 | $115,943 | $93,056 | $316,140 | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section provides a detailed breakdown of the company's financial performance for the specified periods [Three Months Ended June 30, 2025 and 2024](index=27&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the company's financial performance for the three months ended June 30, 2025, compared to 2024 Key Financials (3 Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :------------------------ | :------- | :------- | :--------- | :--------- | | Total Revenues | $297,523 | $396,524 | $(99,001) | (25.0)% | | Net Income | $5,606 | $70,711 | $(65,105) | (92.1)% | | Sales | $288,491 | $390,424 | $(101,933) | (26.1)% | | Other revenues | $9,032 | $6,099 | $2,933 | 48.1% | | Cost of sales | $226,412 | $261,305 | $(34,893) | (13.4)% | | Depreciation & depletion | $43,255 | $38,150 | $5,105 | 13.4% | | SG&A | $11,923 | $15,492 | $(3,569) | (23.0)% | | Interest expense | $2,890 | $915 | $1,975 | 215.8% | | Interest income | $5,083 | $9,241 | $(4,158) | (45.0)% | Per Unit Metrics (3 Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | Metric tons sold (thousands) | 2,013 | 1,904 | 109 | 5.7% | | Metric tons produced (thousands) | 2,094 | 1,970 | 124 | 6.3% | | Average net selling price per metric ton | $143.31 | $205.05 | $(61.74) | (30.1)% | | Cash cost of sales per metric ton | $111.53 | $136.39 | $(24.86) | (18.2)% | - The geographic customer sales volume mix for Q2 2025 was **52% Asia, 37% Europe, and 11% South America**, shifting from 41% Asia, 38% Europe, and 21% South America in Q2 2024[112](index=112&type=chunk) [Six Months Ended June 30, 2025 and 2024](index=29&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the company's financial performance for the six months ended June 30, 2025, compared to 2024 Key Financials (6 Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :------------------------ | :------- | :------- | :--------- | :--------- | | Total Revenues | $597,466 | $900,036 | $(302,570) | (33.6)% | | Net (Loss) Income | $(2,562) | $207,700 | $(210,262) | (101.2)% | | Sales | $583,424 | $888,423 | $(304,999) | (34.3)% | | Other revenues | $14,042 | $11,613 | $2,429 | 20.9% | | Cost of sales | $472,147 | $546,892 | $(74,745) | (13.7)% | | Depreciation & depletion | $88,532 | $78,173 | $10,359 | 13.2% | | SG&A | $30,365 | $34,352 | $(3,987) | (11.6)% | | Interest expense | $4,997 | $2,036 | $2,961 | 145.4% | | Interest income | $10,376 | $17,395 | $(7,019) | (40.3)% | Per Unit Metrics (6 Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------------- | :------ | :------ | :--------- | :--------- | | Metric tons sold (thousands) | 3,983 | 3,835 | 148 | 3.9% | | Metric tons produced (thousands) | 4,139 | 3,831 | 308 | 8.0% | | Average net selling price per metric ton | $146.48 | $231.66 | $(85.18) | (36.8)% | | Cash cost of sales per metric ton | $117.63 | $141.82 | $(24.19) | (17.1)% | - The geographic customer sales volume mix for the six months ended June 30, 2025, was **47% Asia, 37% Europe, and 16% South America**, compared to 44% Asia, 37% Europe, 18% South America, and 1% United States in the prior year[125](index=125&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity position, cash flows, capital expenditures, and capital allocation policy Total Liquidity (in millions) | Metric | June 30, 2025 | | :-------------------------------------- | :------------ | | Cash and cash equivalents | $383.3 | | Short-term investments (net of collateral) | $38.1 | | Long-term investments | $10.1 | | ABL Facility availability | $113.5 | | **Total Liquidity** | **$545.0** | - Net cash provided by operating activities decreased significantly to **$48.5 million** for the six months ended June 30, 2025, from $251.0 million in the prior year, primarily due to a net loss and changes in working capital[149](index=149&type=chunk)[150](index=150&type=chunk) - Capital expenditures for Blue Creek development were **$107.0 million** for the six months ended June 30, 2025, with **$823.6 million** spent on the project to date[151](index=151&type=chunk)[168](index=168&type=chunk) - The company's Capital Allocation Policy includes a regular quarterly cash dividend of **$0.08 per share** and allows for special dividends or stock repurchases based on excess cash generation and market conditions[153](index=153&type=chunk)[154](index=154&type=chunk) - The company is responsible for black lung liabilities, appealing a DOL requirement to increase collateral to **$28 million** (from $39.8 million initially requested), with new rules requiring **100% security** for self-insured operators[140](index=140&type=chunk)[141](index=141&type=chunk) - Total capital spending for full year 2025 is expected to range from **$315.0 million to $350.0 million**, including **$225.0 million to $250.0 million** for Blue Creek development[169](index=169&type=chunk) [Critical Accounting Policies](index=35&type=section&id=Critical%20Accounting%20Policies) This section confirms no material changes to critical accounting estimates as of June 30, 2025 - No material changes to critical accounting estimates as of June 30, 2025, as described in the **2024 Annual Report**[172](index=172&type=chunk) [Off-Balance Sheet Arrangements](index=35&type=section&id=Off-Balance%20Sheet%20Arrangements) This section details the company's use of surety bonds and letters of credit for various obligations Off-Balance Sheet Arrangements (as of June 30, 2025, in millions) | Purpose | Amount | | :--------------------------- | :----- | | Post-mining reclamation | $47.0 | | Self-insured black lung related claims | $18.6 | | Miscellaneous purposes | $12.6 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section discusses the company's exposure to commodity price, credit, interest rate, inflation, and tariff risks [Commodity Price Risk](index=36&type=section&id=Commodity%20Price%20Risk) This section addresses the company's exposure to price fluctuations in steelmaking coal and natural gas - Steelmaking coal sales are subject to **market price fluctuations** due to indexed pricing terms in supply contracts[174](index=174&type=chunk) - Natural gas swap contracts are used to hedge price exposure, with **2,750,000 MMBtu contracts outstanding** as of June 30, 2025[175](index=175&type=chunk) - Price risk for production supplies like diesel fuel and steel is managed through **strategic sourcing contracts**[176](index=176&type=chunk) [Credit Risk](index=36&type=section&id=Credit%20Risk) This section outlines the company's credit risk from trade receivables and mitigation strategies - Credit risk is concentrated in trade receivables, mitigated by **trade credit insurance, letters of credit, cash collateral, or prepayments**[177](index=177&type=chunk) - Historically, the company has recognized **no material credit losses**[177](index=177&type=chunk) [Interest Rate Risk](index=36&type=section&id=Interest%20Rate%20Risk) This section details the company's exposure to interest rate fluctuations on its variable-rate ABL Facility - Senior Secured Notes have a **fixed interest rate of 7.875%**[178](index=178&type=chunk) - The ABL Facility has a **variable interest rate** based on SOFR or an alternate base rate[179](index=179&type=chunk) - A **100-basis point change** in interest rates would impact annual interest expense under the ABL Facility by approximately **$1.1 million**, assuming full utilization[179](index=179&type=chunk) [Impact of Inflation](index=36&type=section&id=Impact%20of%20Inflation) This section discusses the impact of inflation on production costs and mitigation strategies - Inflationary pressures on production supplies and labor have led to **rising costs**[180](index=180&type=chunk) - Mitigation strategies include **earlier purchase orders, short-term contracts, and leveraging supplier relationships**[180](index=180&type=chunk) [Tariff Risks](index=36&type=section&id=Tariff%20Risks) This section addresses potential impacts of new or retaliatory tariffs on the company's operations and demand - Tariffs could result in **reduced economic activity, increased operating costs, decreased demand for steelmaking coal, supply chain disruptions, and material pricing changes**[181](index=181&type=chunk)[182](index=182&type=chunk) - The company is currently **assessing the impact of tariffs** on its financial statements and business[182](index=182&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of June 30, 2025 - Disclosure controls and procedures were evaluated and deemed **effective** as of June 30, 2025[183](index=183&type=chunk) - No material changes in internal control over financial reporting occurred during the most recently completed fiscal quarter[184](index=184&type=chunk) - Management acknowledges that controls provide only **reasonable assurance** due to inherent limitations and resource constraints[185](index=185&type=chunk) [Part II. Other Information](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, equity sales, defaults, mine safety, and other disclosures [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) This section addresses the company's involvement in ordinary course lawsuits and their potential financial impact - The company is party to lawsuits in the ordinary course of business, accruing costs when a loss is **probable and estimable**[188](index=188&type=chunk) - The company believes the final outcome of current litigation will **not have a material adverse effect** on its financial statements[188](index=188&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section reiterates that no material changes occurred to the risk factors disclosed in the 2024 Annual Report - No material changes to the risk factors disclosed in the **2024 Annual Report**[189](index=189&type=chunk) - The company's performance can be impacted by numerous factors, and new or currently immaterial risks may become material[189](index=189&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no share repurchases under the New Stock Repurchase Program during Q2 2025 - No shares were repurchased under the New Stock Repurchase Program during the three months ended June 30, 2025[190](index=190&type=chunk) - Approximately **$59.0 million** remains authorized for share repurchases under the New Stock Repurchase Program[190](index=190&type=chunk) [Item 3. Defaults on Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20on%20Senior%20Securities) This section confirms that the company reported no defaults on senior securities - No defaults on senior securities were reported[192](index=192&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are provided as Exhibit 95 to the Form 10-Q - Mine safety disclosures are provided in **Exhibit 95** of this Form 10-Q[193](index=193&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) This section notes that no directors or officers adopted or terminated Rule 10b5-1 trading plans during Q2 2025 - No directors or officers adopted or terminated **Rule 10b5-1 trading arrangements** during the three months ended June 30, 2025[194](index=194&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and certifications - The report includes a list of exhibits, such as **corporate governance documents, certifications, and XBRL data**[195](index=195&type=chunk) [Signatures](index=41&type=section&id=SIGNATURES) This section confirms the report was signed by Dale W. Boyles, CFO, on August 6, 2025 - The report was signed by **Dale W. Boyles, Chief Financial Officer**, on August 6, 2025[201](index=201&type=chunk)

Exhibit 99.1 Second Quarter 2025 Results The table below sets forth a comparison of the second quarter 2025 diluted earnings per share contribution recorded by business segment and for the parent company compared with amounts recorded during the same period in 2024. | | Diluted Earnings per Share | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Three Months Ended | | | | | | | | 6/30/2025 | | 6/30/2024 | | CHANGE | | | Water | $ | $ 0.73 | | 0.67 | $ | 0.06 | | Electric | | 0.03 | | 0.01 | | 0.02 ...

Exhibit 99.1 Seadrill Announces Second Quarter 2025 Results Hamilton, Bermuda, August 6, 2025 - Seadrill Limited ("Seadrill" or the "Company") (NYSE: SDRL) today announced its second quarter 2025 results. Quarterly Highlights Financial Highlights | Figures in USD million, unless otherwise indicated | Three months ended June | Three months ended | | --- | --- | --- | | | 30, 2025 | March 31, 2025 | | Total operating revenues | 377 | 335 | | Contract revenues | 288 | 248 | | Net loss | (42) | (14) | | (1) Adj ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36106 EMPIRE STATE REALTY OP, L.P. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or org ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36106 EMPIRE STATE REALTY OP, L.P. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or org ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36106 EMPIRE STATE REALTY OP, L.P. (Exact name of Registrant as specified in its charter) Indicate by check mark whether the registrant has su ...

[Key Highlights & Financial Summary](index=1&type=section&id=Key%20Highlights%20%26%20Financial%20Summary) Coeur Mining reported record Q2 2025 financial results, driven by significant production increases and higher metal prices, achieving record revenue, operating cash flow, and net income, which enabled debt repayment and a share repurchase program Q2 2025 Financial Performance Highlights | Metric | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | | :--- | :--- | :--- | :--- | | Revenue | $480.7M | $360.1M | $222.0M | | Net Income | $70.7M | $33.4M | $1.4M | | Adjusted EBITDA | $243.5M | $148.9M | $52.4M | | Operating Cash Flow | $207.0M | $67.6M | $15.2M | | Free Cash Flow | $146.2M | $17.6M | ($36.2M) | - Production saw substantial year-over-year growth, with silver production increasing by **79%** and gold production by **38%**[3](index=3&type=chunk) - Quarter-over-quarter, silver and gold production rose by **27%** and **25%**, respectively[3](index=3&type=chunk) - The company strengthened its balance sheet by repaying the remaining **$110 million** on its revolving credit facility (RCF), reducing its net leverage ratio to **0.4x**[3](index=3&type=chunk) - A **$75 million** share repurchase program was authorized, with **216,500** shares repurchased during the quarter at an average price of **$9.24** per share[3](index=3&type=chunk) - Full-year 2025 guidance was reaffirmed for production of **380,000 - 440,000 ounces** of gold and **16.7 - 20.3 million ounces** of silver[3](index=3&type=chunk) [Operations Review](index=5&type=section&id=Operations) All five North American operations achieved strong production increases and positive free cash flow in Q2, with significant contributions from the newly acquired Las Chispas and successful ramp-up at Rochester, alongside solid performance from Palmarejo, Kensington, and Wharf [Las Chispas, Mexico](index=5&type=section&id=Las%20Chispas%2C%20Mexico) The Las Chispas mine, in its first full quarter, produced **16,271 ounces of gold** and **1.5 million ounces of silver**, generating **$49.4 million in free cash flow**, with exploration focused on expanding high-grade discoveries Las Chispas Q2 2025 Performance | Metric | Q2 2025 | | :--- | :--- | | Gold Production (oz) | 16,271 | | Silver Production (oz) | 1,488,672 | | Adjusted CAS per AuOz ($/oz) | $894 | | Adjusted CAS per AgOz ($/oz) | $8.94 | | Free Cash Flow ($M) | $49.4M | - Exploration investment totaled approximately **$3 million**, with up to eight rigs active[18](index=18&type=chunk) - The high-grade Augusta discovery has been traced over **320 meters** along strike, consistently yielding high-grade intercepts[18](index=18&type=chunk) [Palmarejo, Mexico](index=6&type=section&id=Palmarejo%2C%20Mexico) The Palmarejo complex produced **27,272 ounces of gold** and **1.7 million ounces of silver**, with free cash flow surging to **$42.3 million**, driven by higher grades and throughput, while exploration focuses on expanding the Hidalgo Corridor Palmarejo Q2 2025 Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Gold Production (oz) | 27,272 | 23,032 | | Silver Production (K oz) | 1,741 | 1,680 | | Adjusted CAS per AuOz ($/oz) | $888 | $882 | | Adjusted CAS per AgOz ($/oz) | $14.39 | $14.37 | | Free Cash Flow ($M) | $42.3M | $2.8M | - Exploration investment was approximately **$4 million**[27](index=27&type=chunk) - Drilling at the Hidalgo Corridor continues to deliver excellent results, extending the strike length by an additional **350 meters** year-to-date[27](index=27&type=chunk) [Rochester, Nevada](index=8&type=section&id=Rochester%2C%20Nevada) The Rochester expansion project showed continued progress with crushed ore tons increasing **24%** to **6.7 million tons**, driving higher production of **1.5 million silver ounces** and **14,302 gold ounces**, and returning to positive free cash flow of **$15.1 million** Rochester Q2 2025 Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Silver Production (K oz) | 1,456 | 1,284 | | Gold Production (oz) | 14,302 | 13,353 | | Adjusted CAS per AgOz ($/oz) | $16.83 | $18.41 | | Adjusted CAS per AuOz ($/oz) | $1,675 | $1,670 | | Free Cash Flow ($M) | $15.1M | ($21.9M) | - The crushing circuit processed **6.7 million tons**, a **24%** increase from the **5.5 million tons** in the previous quarter, reflecting steady increases in circuit availability[33](index=33&type=chunk) [Kensington, Alaska](index=10&type=section&id=Kensington%2C%20Alaska) Kensington's gold production increased to **26,555 ounces**, with adjusted CAS decreasing to **$1,713** per ounce, generating **$19.7 million in free cash flow**, marking the end of a multi-year underground development program Kensington Q2 2025 Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Gold Production (oz) | 26,555 | 22,715 | | Adjusted CAS per AuOz ($/oz) | $1,713 | $1,882 | | Free Cash Flow ($M) | $19.7M | ($9.6M) | - Exploration drilling is progressing well, with a newly-discovered Elmira Hanging Wall Zone expected to be included in year-end resource estimates for the first time[39](index=39&type=chunk) [Wharf, South Dakota](index=11&type=section&id=Wharf%2C%20South%20Dakota) The Wharf mine increased gold production by **18%** to **24,087 ounces**, leading to a **7%** decrease in adjusted CAS to **$1,175** per ounce and a substantial increase in free cash flow to **$37.8 million** Wharf Q2 2025 Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Gold Production (oz) | 24,087 | 20,491 | | Adjusted CAS per AuOz ($/oz) | $1,175 | $1,260 | | Free Cash Flow ($M) | $37.8M | $8.3M | - Exploration investment totaled **$4 million**[49](index=49&type=chunk) - Expansion and infill drilling programs at Wedge and North Foley were completed and are expected to contribute meaningfully to year-end reserve and resource estimates[49](index=49&type=chunk) [Exploration](index=13&type=section&id=Exploration) The company invested approximately **$30 million** in Q2 exploration, with total 2025 investment expected between **$77 million** and **$93 million**, prioritizing resource expansion at Palmarejo, higher-grade zone definition at Rochester, and geological knowledge building at Las Chispas - Total Q2 exploration investment was approximately **$30 million**, consisting of **$23 million** expensed and **$7 million** capitalized[52](index=52&type=chunk) - Top exploration priorities for 2025 are: (1) building the inferred pipeline at Palmarejo, (2) outlining higher-grade structures at Rochester, (3) maintaining a **5-year** reserve life at Kensington, (4) completing expansion programs at Wharf, (5) growing the resource base at Silvertip, and (6) building knowledge of Las Chispas[51](index=51&type=chunk) - At the Silvertip project, exploration investment was **$9 million** in Q2, with drilling commencing in May on three targets: Southern Silver, Discovery, and Saddle Zones[53](index=53&type=chunk) [2025 Guidance](index=14&type=section&id=2025%20Guidance) Coeur reaffirmed its full-year 2025 production and CAS guidance while updating sustaining capital expenditures and G&A expenses to reflect a **$10 million** cash funding decision and non-cash incentive compensation due to strong share price performance 2025 Production Guidance (Ounces) | Mine | Gold (oz) | Silver (K oz) | | :--- | :--- | :--- | | Las Chispas | 42,500 - 52,500 | 4,250 - 5,250 | | Palmarejo | 95,000 - 105,000 | 5,400 - 6,500 | | Rochester | 60,000 - 75,000 | 7,000 - 8,300 | | Kensington | 92,500 - 107,500 | — | | Wharf | 90,000 - 100,000 | 50 - 200 | | **Total** | **380,000 - 440,000** | **16,700 - 20,250** | 2025 Adjusted CAS Guidance ($/oz) | Mine | Gold ($/oz) | Silver ($/oz) | | :--- | :--- | :--- | | Las Chispas | $850 - $950 | $9.25 - $10.25 | | Palmarejo | $950 - $1,150 | $17.00 - $18.00 | | Rochester | $1,250 - $1,450 | $14.50 - $16.50 | | Kensington | $1,700 - $1,900 | — | | Wharf | $1,250 - $1,350 | — | Updated 2025 Capital, Exploration & G&A Guidance ($M) | Category | Previous ($M) | Updated ($M) | | :--- | :--- | :--- | | Capital Expenditures, Sustaining | $132 - $156 | $142 - $156 | | General & Administrative Expenses | $44 - $48 | $48 - $52 | [Financial Statements](index=18&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q2 2025, including the Balance Sheet, Income Statement, and Cash Flow Statement, reflecting the significant impact of the SilverCrest acquisition and strong operational performance [Condensed Consolidated Balance Sheets](index=18&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$4.15 billion** from **$2.30 billion** due to the SilverCrest acquisition, with cash increasing to **$111.6 million** and total debt reduced to **$380.7 million** Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $111,646 | $55,087 | | Total Assets | $4,150,950 | $2,301,747 | | Total Current Liabilities | $327,674 | $330,820 | | Total Debt (Current & Non-Current) | $380,722 | $590,058 | | Total Stockholders' Equity | $2,828,387 | $1,123,252 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) For Q2 2025, the company generated revenue of **$480.7 million**, more than double the prior year, resulting in a net income of **$70.7 million**, or **$0.11 per share**, a significant improvement from Q2 2024 Q2 Income Statement Comparison (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $480,650 | $222,026 | | Total costs and expenses | $340,542 | $205,350 | | Income from operations | $140,108 | $16,676 | | Net Income | $70,726 | $1,426 | | Basic EPS | $0.11 | $0.00 | [Condensed Consolidated Statements of Cash Flows](index=20&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated a record **$207.0 million** in cash from operating activities in Q2 2025, with **$60.6 million** used in investing activities and **$112.8 million** used in financing activities, primarily for debt and lease payments Q2 Cash Flow Comparison (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $206,951 | $15,249 | | Cash used in Investing Activities | ($60,573) | ($51,553) | | Cash from (used in) Financing Activities | ($112,772) | $43,316 | | Increase in Cash | $34,102 | $6,651 | [Appendix: Non-GAAP Reconciliations](index=21&type=section&id=Appendix%3A%20Non-GAAP%20Reconciliations) This appendix provides detailed reconciliations of non-U.S. GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, and Adjusted Costs Applicable to Sales (CAS), to their nearest U.S. GAAP equivalents, offering transparency into various adjustments - The report provides reconciliations for key non-GAAP measures including EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, and Adjusted Costs Applicable to Sales (CAS) per ounce[64](index=64&type=chunk)[67](index=67&type=chunk) Net Debt and Leverage Ratio Trend | Metric | 2Q 2025 | 1Q 2025 | 2Q 2024 | | :--- | :--- | :--- | :--- | | Total debt ($M) | $380.7M | $498.3M | $629.3M | | Net debt ($M) | $269.1M | $420.7M | $555.2M | | Leverage ratio (x) | 0.4x | 0.9x | 2.9x | - Detailed reconciliations of Costs Applicable to Sales (CAS) to Adjusted CAS are provided for each operation, breaking down adjustments for amortization, inventory, and by-product credits to arrive at the per-ounce cost metrics[84](index=84&type=chunk)[86](index=86&type=chunk)[88](index=88&type=chunk)

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) Tenaya Therapeutics announced Q2 2025 results, detailing clinical progress for gene therapies TN-201 and TN-401, and maintaining a cash runway into the second half of 2026 [Introduction and Key Highlights](index=1&type=section&id=Introduction%20and%20Key%20Highlights) Tenaya Therapeutics announced its Q2 2025 financial results and provided a business update, highlighting significant progress in its gene therapy clinical trials for MYBPC3-associated HCM (TN-201) and PKP2-associated ARVC (TN-401), with positive DSMB reviews enabling dose escalation and expansion; the company anticipates key data readouts for both programs in Q4 2025 and maintains a cash runway into the second half of 2026 - **Enrollment completed** in Cohorts 1 and 2 of MyPEAK™-1 Phase 1b/2 trial for TN-201 (MYBPC3-associated HCM); positive DSMB safety review enables enrollment of expansion cohorts[1](index=1&type=chunk)[4](index=4&type=chunk) - Cohort 1 of RIDGE™-1 Phase 1b trial for TN-401 (PKP2-associated ARVC) **enrolled**, and first patient dosed in Cohort 2 following DSMB recommendation for dose escalation and expansion[1](index=1&type=chunk)[4](index=4&type=chunk) - Data readouts from both TN-201 and TN-401 clinical programs are planned for the **fourth quarter of 2025**[1](index=1&type=chunk)[4](index=4&type=chunk) - Tenaya Therapeutics has a **cash runway into the second half of 2026**[2](index=2&type=chunk)[14](index=14&type=chunk) [About Tenaya Therapeutics](index=3&type=section&id=About%20Tenaya%20Therapeutics) Tenaya Therapeutics is a clinical-stage biotechnology company dedicated to discovering, developing, and delivering curative therapies for heart disease, leveraging integrated internal capabilities for target validation, capsid engineering, and manufacturing - Tenaya Therapeutics is a clinical-stage biotechnology company focused on discovering, developing, and delivering potentially curative therapies for the **underlying causes of heart disease**[12](index=12&type=chunk) - The company's pipeline includes clinical-stage gene therapies **TN-201** (for MYBPC3-associated HCM) and **TN-401** (for PKP2-associated ARVC), a clinical-stage small molecule **TN-301** (HDAC6 inhibitor for heart failure), and multiple early-stage preclinical programs[12](index=12&type=chunk) [Business and Program Updates](index=1&type=section&id=Business%20and%20Program%20Updates) Tenaya Therapeutics provided updates on its clinical-stage gene therapy programs TN-201 and TN-401, highlighting trial progress, safety reviews, and upcoming data readouts, alongside advancements in research and manufacturing capabilities [TN-201 Gene Therapy for MYBPC3-Associated Hypertrophic Cardiomyopathy (HCM)](index=1&type=section&id=TN-201%20Gene%20Therapy%20for%20MYBPC3-Associated%20Hypertrophic%20Cardiomyopathy%20%28HCM%29) Tenaya Therapeutics has completed enrollment and dosing for Cohort 2 of the MyPEAK™-1 Phase 1b/2 trial for TN-201; a positive DSMB review confirmed an acceptable safety profile, allowing for dose expansion; interim data from Cohort 1 showed promising results, including robust transduction, increased RNA/protein expression, and clinical improvements in patients with severe disease - **Completed enrollment and dosing of three patients** at the 6E13 vg/kg dose level (Cohort 2) in the MyPEAK™-1 Phase 1b/2 clinical trial of TN-201 in May[5](index=5&type=chunk) - Independent DSMB determined TN-201 had an **acceptable safety profile**, enabling enrollment of dose expansion cohorts, with Tenaya anticipating enrolling patients in the 6E13 vg/kg dose expansion cohort[5](index=5&type=chunk) - Interim data from Cohort 1 (3E13 vg/kg) showed **robust transduction and RNA expression** with increasing RNA and protein levels over time; all three patients with severe disease at baseline achieved New York Heart Association Class I, and two experienced improvement in hypertrophy measures[6](index=6&type=chunk) - The MyClimb pediatric non-interventional natural history study has **enrolled over 200 patients at 29 sites worldwide** to characterize MYBPC3-associated HCM in patients under 18[9](index=9&type=chunk) [TN-401 Gene Therapy for PKP2-Associated Arrhythmogenic Right Ventricular Cardiomyopathy (ARVC)](index=2&type=section&id=TN-401%20Gene%20Therapy%20for%20PKP2-Associated%20Arrhythmogenic%20Right%20Ventricular%20Cardiomyopathy%20%28ARVC%29) Enrollment for Cohort 1 of the RIDGE™-1 Phase 1b trial for TN-401 was completed in April 2025; following a positive DSMB recommendation, enrollment for a higher dose Cohort 2 (6E13 vg/kg) has begun, with the first patient dosed; data from the RIDGE natural history study highlighted the high burden of arrhythmia and progressive structural changes in PKP2-associated ARVC patients, alongside low AAV9 immunity, suggesting broad eligibility for TN-401 - **Enrollment of the first cohort of three patients** receiving TN-401 at a dose level of 3E13 vg/kg in the RIDGE-1 Phase 1b clinical trial was completed in April 2025[9](index=9&type=chunk) - In July 2025, the RIDGE-1 DSMB issued a **positive recommendation for both enrollment of a higher dose cohort (6E13 vg/kg)** and additional patients at the 3E13 vg/kg dose; Cohort 2 enrollment is underway, and the first patient has been dosed at 6E13 vg/kg[9](index=9&type=chunk) - Data from the RIDGE natural history study (**191 participants**) indicated a **high burden of arrhythmia** (83% >500 PVCs/day, 49% history of VT) despite standard care, evidence of progressive structural changes, and low levels of preexisting immunity to AAV9 antibodies, making most participants eligible for TN-401[9](index=9&type=chunk) [Research and Manufacturing Capabilities](index=2&type=section&id=Research%20and%20Manufacturing%20Capabilities) Tenaya's Research and Manufacturing teams presented advancements in core capabilities at the American Society for Gene Therapy Annual Meeting, focusing on novel capsid engineering, genetic medicine design, and AAV gene therapy manufacturing - In May 2025, Tenaya's Research and Manufacturing teams presented posters at the **American Society for Gene Therapy 28th Annual Meeting**[8](index=8&type=chunk) - Presentations detailed efforts to advance core capabilities in **novel capsid engineering**, identification, design and optimization of cardiomyocyte-targeting genetic medicines, and manufacturing of AAV gene therapies[8](index=8&type=chunk) [Upcoming Events and Data Readouts](index=2&type=section&id=Upcoming%20Events%20and%20Data%20Readouts) Tenaya Therapeutics plans to release initial Cohort 2 data and an update on Cohort 1 for TN-401 in Q4 2025, along with meaningful new data for both TN-201 and TN-401; an abstract for the MyClimb study has been accepted for presentation at the ESC Annual Meeting, and the company will host a Virtual Key Opinion Leader event in August 2025 - Tenaya anticipates releasing initial Cohort 2 data and an update on Cohort 1 for TN-401 in the **fourth quarter of 2025**[9](index=9&type=chunk) - Meaningful new data readouts for both TN-201 and TN-401 clinical programs are planned for the **fourth quarter of 2025**[4](index=4&type=chunk) - An abstract regarding Tenaya's pediatric non-interventional natural history study, MyClimb, has been accepted for presentation at the upcoming **European Society of Cardiology (ESC) Annual Meeting** (August 29-September 1)[9](index=9&type=chunk) - Tenaya plans to host a Virtual Key Opinion Leader event, **'Measuring Protein Expression in Cardiac Gene Therapy,' on August 19, 2025**[14](index=14&type=chunk) [Financial Results](index=3&type=section&id=Financial%20Results) Tenaya Therapeutics reported a reduced net loss for Q2 2025 and H1 2025, driven by lower operating expenses, and maintained a cash position of $71.7 million, extending its runway into the second half of 2026 [Second Quarter 2025 Financial Highlights](index=3&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Tenaya Therapeutics reported a net loss of $23.3 million for Q2 2025, an improvement from $29.4 million in Q2 2024, driven by reduced R&D and G&A expenses; the company ended the quarter with $71.7 million in cash, cash equivalents, and marketable securities, providing a cash runway into the second half of 2026 - Cash, cash equivalents and investments in marketable securities were **$71.7 million** as of June 30, 2025[14](index=14&type=chunk) - The company expects its current funds to support planned operations into the **second half of 2026**[14](index=14&type=chunk) Key Financial Highlights (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (in millions USD) | Q2 2024 (in millions USD) | Change (QoQ, millions USD) | | :----------------------- | :------------------------ | :------------------------ | :------------------------- | | Research & Development | $17.4 | $22.6 | -$5.2 | | General & Administrative | $6.7 | $8.2 | -$1.5 | | Net Loss | $(23.3) | $(29.4) | +$6.1 | | Net Loss Per Share | $(0.14) | $(0.34) | +$0.20 | [Condensed Statements of Operations](index=5&type=section&id=Condensed%20Statements%20of%20Operations) For the second quarter of 2025, Tenaya Therapeutics reported a net loss of $23.3 million, a decrease from $29.4 million in the prior year, primarily due to lower operating expenses; for the six months ended June 30, 2025, the net loss was $50.1 million, an improvement from $61.7 million in the same period of 2024 Condensed Statements of Operations (Three Months Ended June 30) | Metric | Q2 2025 (in thousands USD) | Q2 2024 (in thousands USD) | Change (QoQ, thousands USD) | | :----------------------- | :------------------------- | :------------------------- | :-------------------------- | | Research and development | $17,370 | $22,649 | -$5,279 | | General and administrative | $6,712 | $8,174 | -$1,462 | | Total operating expenses | $24,082 | $30,823 | -$6,741 | | Loss from operations | $(24,082) | $(30,823) | +$6,741 | | Interest income | $815 | $1,393 | -$578 | | Net loss | $(23,283) | $(29,431) | +$6,148 | | Net loss per share | $(0.14) | $(0.34) | +$0.20 | | Weighted-average shares | 162,791,579 | 85,706,501 | +77,085,078 | Condensed Statements of Operations (Six Months Ended June 30) | Metric | H1 2025 (in thousands USD) | H1 2024 (in thousands USD) | Change (YoY, thousands USD) | | :----------------------- | :------------------------- | :------------------------- | :-------------------------- | | Research and development | $38,446 | $47,704 | -$9,258 | | General and administrative | $13,174 | $16,881 | -$3,707 | | Total operating expenses | $51,620 | $64,585 | -$12,965 | | Loss from operations | $(51,620) | $(64,585) | +$12,965 | | Interest income | $1,449 | $2,845 | -$1,396 | | Net loss | $(50,147) | $(61,659) | +$11,512 | | Net loss per share | $(0.37) | $(0.74) | +$0.37 | | Weighted-average shares | 136,476,623 | 83,344,414 | +53,132,209 | [Condensed Balance Sheet Data](index=5&type=section&id=Condensed%20Balance%20Sheet%20Data) As of June 30, 2025, Tenaya Therapeutics reported an increase in cash, cash equivalents, and marketable securities to $71.7 million from $61.4 million at the end of 2024; total assets slightly increased, while total liabilities decreased over the same period Condensed Balance Sheet Data (As of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change (thousands USD) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------- | | Cash, cash equivalents and marketable securities | $71,667 | $61,446 | +$10,221 | | Total assets | $122,151 | $119,940 | +$2,211 | | Total liabilities | $22,323 | $27,086 | -$4,763 | | Total liabilities and stockholders' equity | $122,151 | $119,940 | +$2,211 | [Legal and Contact Information](index=3&type=section&id=Legal%20and%20Contact%20Information) This section provides standard disclaimers regarding forward-looking statements, outlining inherent risks and uncertainties, and lists key contact information for Tenaya Therapeutics [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides a standard disclaimer regarding forward-looking statements, emphasizing that they are based on current expectations and involve inherent risks and uncertainties; it outlines various factors that could cause actual results to differ materially from projections, including clinical trial outcomes, regulatory approvals, funding, and market conditions - The press release contains forward-looking statements based on current expectations, involving assumptions, risks, and uncertainties that may cause actual results to **differ**[13](index=13&type=chunk)[15](index=15&type=chunk) - Key risks include the timing and progress of clinical trials, unexpected safety events, potential failure of product candidates, differences from expected results, ability to obtain approvals, funding needs, reliance on third parties, competition, and **intellectual property protection**[15](index=15&type=chunk) - Tenaya assumes **no obligation to update or revise** any forward-looking statements, except as required by law[15](index=15&type=chunk) [Tenaya Contacts](index=4&type=section&id=Tenaya%20Contacts) This section provides contact information for Tenaya Therapeutics' corporate communications, investor relations, and media inquiries - Contact information is provided for **Michelle Corral** (VP, Corporate Communications and Investor Relations), **Anne-Marie Fields** (Precision AQ for Investors), and **Wendy Ryan** (Ten Bridge Communications for Media)[16](index=16&type=chunk)

[Part I. Financial Information](index=8&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Consolidated Financial Statements](index=8&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The company's unaudited statements show increased net income and total assets of $8.36 billion as of June 30, 2025 Consolidated Statements of Income Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Total revenues** | $1,358,931 | $1,112,457 | | **Operating income** | $252,354 | $215,140 | | **Net income** | $151,452 | $126,560 | | **Diluted EPS** | $2.51 | $2.23 | Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $8,359,141 | $8,425,571 | | **Total Liabilities** | $5,174,806 | $5,321,023 | | **Total Equity** | $3,184,335 | $3,104,548 | | **Total Long-Term Debt (net)** | $2,370,863 | $2,385,286 | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Cash from Operating Activities** | $448,809 | $250,926 | | **Cash used in Investing Activities** | $(348,511) | $(341,776) | | **Cash provided by (used in) Financing Activities** | $(136,114) | $83,929 | [Note 2. Revenue](index=15&type=section&id=Note%202.%20Revenue) Total revenues grew to $1.36 billion for the first six months of 2025, driven by higher natural gas sales Disaggregated Revenue (Six Months Ended June 30) | Revenue Source | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Natural gas sales to customers | $1,239,435 | $987,856 | | Transportation revenues | $74,465 | $69,554 | | Securitization customer charges | $24,842 | $23,226 | | Miscellaneous revenues | $13,317 | $12,065 | | **Total revenues from contracts with customers** | **$1,352,059** | **$1,092,701** | [Note 3. Regulatory Assets and Liabilities](index=16&type=section&id=Note%203.%20Regulatory%20Assets%20and%20Liabilities) Net regulatory liabilities increased to $211.3 million by June 30, 2025, due to changes in various regulatory accounts Net Regulatory Assets and Liabilities | Date | Total Regulatory Assets (in thousands) | Total Regulatory Liabilities (in thousands) | Net Position (in thousands) | | :--- | :--- | :--- | :--- | | June 30, 2025 | $310,087 | $(521,417) | $(211,330) | | Dec 31, 2024 | $379,216 | $(490,088) | $(110,872) | - Amortization of regulatory assets, representing recovery through rates, was **$7.4 million** for the six months ended June 30, 2025, compared to **$9.5 million** for the same period in 2024[44](index=44&type=chunk) [Note 4 & 5. Credit Facility and Long-Term Debt](index=17&type=section&id=Note%204%20%26%205.%20Credit%20Facility%20and%20Long-Term%20Debt) The company maintained a total debt-to-capital ratio of 50.7% with $2.40 billion in long-term debt as of June 30, 2025 - The company has a **$1.35 billion** revolving credit facility and a commercial paper program of the same amount, with **$872.4 million** of commercial paper outstanding at June 30, 2025[45](index=45&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) Long-Term Debt Composition (June 30, 2025) | Debt Instrument | Amount (in thousands) | | :--- | :--- | | Total Senior Notes | $2,150,000 | | KGSS-I Securitized Utility Tariff Bonds | $272,798 | | **Total long-term debt, net** | **$2,400,627** | - The company's total debt-to-capital ratio was **50.7%** at June 30, 2025, in compliance with the credit agreement's covenant of no more than 70%[46](index=46&type=chunk) [Note 6. Equity](index=18&type=section&id=Note%206.%20Equity) The company initiated a forward sale agreement for 2.5 million shares and maintained a $225.5 million ATM program - In May 2025, the company entered into a forward sale agreement for **2.5 million shares** of common stock[53](index=53&type=chunk) - As of June 30, 2025, the company had **$225.5 million** of equity available for issuance under its at-the-market (ATM) program[54](index=54&type=chunk) - A dividend of **$0.67 per share** was declared in August 2025, payable in September 2025[55](index=55&type=chunk) [Note 12. Commitments and Contingencies](index=22&type=section&id=Note%2012.%20Commitments%20and%20Contingencies) The company manages environmental remediation costs for former MGP sites and complies with federal pipeline safety regulations - The company is responsible for environmental conditions at **12 former MGP sites** in Kansas and is governed by a consent agreement with the KDHE for investigation and remediation[72](index=72&type=chunk)[73](index=73&type=chunk) - In July 2025, the KCC approved an increase in the cap for the Accounting Authority Order (AAO) to recover MGP remediation costs to **$32.0 million** from $15.0 million[74](index=74&type=chunk) - The company is subject to federal pipeline safety regulations from PHMSA, and new rules under the PIPES Act could require material expenditures[79](index=79&type=chunk)[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income rose to $151.5 million in H1 2025, driven by new rates and customer growth, with robust liquidity and ongoing regulatory activities [Regulatory Activities](index=28&type=section&id=Regulatory%20Activities) The company is actively pursuing and has received approvals for rate increases across Oklahoma, Kansas, and Texas - **Oklahoma:** A settlement for a **$41.1 million** base rate revenue increase was approved by the OCC in July 2025[103](index=103&type=chunk) - **Kansas:** The KCC approved a **$7.2 million** increase related to the Gas System Reliability Surcharge (GSRS), effective August 2025[104](index=104&type=chunk) - **Texas:** Filed a rate case for a **$41.1 million** revenue increase and received approvals for GRIP filings in the West-North and Central-Gulf areas totaling **$23.6 million**[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Financial Results and Operating Information](index=29&type=section&id=Financial%20Results%20and%20Operating%20Information) Operating income increased 17% year-over-year to $252.4 million, driven by new rates and customer growth Selected Financial Results (Six Months Ended June 30) | Metric | 2025 (in millions) | 2024 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenues | $1,359.0 | $1,112.5 | 22% | | Cost of natural gas | $630.4 | $455.0 | 39% | | Operating income | $252.4 | $215.1 | 17% | - The **$37.3 million increase** in six-month operating income was primarily due to an increase of **$73.0 million** from new rates and **$3.9 million** from net customer growth, partially offset by higher expenses[117](index=117&type=chunk)[122](index=122&type=chunk) - The average total number of customers increased by **16,000** to 2,303,000 for the six months ended June 30, 2025, compared to the same period in 2024[124](index=124&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity remains strong, supported by operating cash flow and a $1.35 billion credit facility, with 2025 capex projected at $750 million - Primary liquidity sources are operating cash flow and commercial paper, supported by a **$1.35 billion** revolving credit facility[128](index=128&type=chunk)[133](index=133&type=chunk) Credit Ratings (as of June 30, 2025) | Rating Agency | Long-term Rating | Short-term Rating | Outlook | | :--- | :--- | :--- | :--- | | Moody's | A3 | Prime-2 | Stable | | S&P | A- | A-2 | Stable | - Full-year 2025 capital expenditures and asset removal costs are expected to be approximately **$750 million**[123](index=123&type=chunk) [Cash Flow Analysis](index=35&type=section&id=Cash%20Flow%20Analysis) Operating cash flow increased significantly to $448.8 million due to favorable working capital changes Cash Flow Summary (Six Months Ended June 30) | Activity | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Operating Cash Flow | $448.8 | $250.9 | | Investing Cash Flow | $(348.5) | $(341.8) | | Financing Cash Flow | $(136.1) | $83.9 | - The increase in operating cash flow was primarily due to working capital changes related to the recovery of regulatory assets[146](index=146&type=chunk) - The increase in cash used in financing activities was primarily due to the repayment of notes payable[147](index=147&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks, including commodity, interest-rate, and credit risk, are actively managed and mitigated - Commodity price risk from natural gas price fluctuations is mitigated by purchased-gas cost adjustment mechanisms, which pass costs to customers without profit[169](index=169&type=chunk) - Interest-rate risk exists from commercial paper borrowings and future debt financing needs, which the company may manage using fixed-rate debt and swaps[171](index=171&type=chunk) - Counterparty credit risk is not material due to a large, diversified customer base of approximately **2.3 million** and tariff provisions for security deposits[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective as of June 30, 2025, with no material changes to internal controls - Management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[173](index=173&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[174](index=174&type=chunk) [Part II. Other Information](index=41&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing litigation from normal business operations is not expected to have a material adverse effect on the company's financials - The company states that it is involved in various litigation matters from the normal course of operations, but believes the outcomes will not have a material adverse effect on its financials[175](index=175&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This report references the risk factors disclosed in the company's Annual Report, with no material changes noted - The report directs investors to consider the risks set forth in the company's Annual Report, noting that no material changes have occurred in the risk factors[176](index=176&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including governance documents, underwriting agreements, and officer certifications - Key exhibits filed include an Underwriting Agreement and a Forward Sale Agreement, both dated May 8, 2025, related to a common stock offering[182](index=182&type=chunk) - Certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits[182](index=182&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 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, 2025 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36522 Investar Holding Corporation (E ...