Financial Data and Key Metrics Changes - Revenue increased by 40% year-over-year to $146.8 million for Q3 2025, compared to $105.2 million in the prior year period [15] - Net income surged to $23.9 million, a 14-fold increase from $1.6 million in the prior year [16] - Adjusted EBITDA rose 1.6 times to $24.9 million, compared to $9.6 million in the prior year [16] - Operating cash flow improved to $23.2 million, up from cash used of $12.9 million in the prior year [16] Business Line Data and Key Metrics Changes - Electric sales increased by 29% to $93.2 million, compared to $72.1 million in the prior year [14] - Coal sales rose by 42% to $68.8 million, compared to $48.3 million in the prior year [14] - Hallador Power delivered 1.6 million megawatt-hours at an average sales price of $49.29 per megawatt-hour, compared to 1.2 million megawatt-hours at $47.55 per megawatt-hour in the same period last year [11] Market Data and Key Metrics Changes - The favorable energy pricing environment was driven by traditional summer weather patterns, increased energy demand, and higher natural gas prices [14] - The company expects to produce approximately 3.8 million tons of coal in 2025, having produced 3.1 million tons through the first nine months [12] Company Strategy and Development Direction - The company submitted an application to the MISO ERIS program to add 525 megawatts of gas generation at the Merom site, indicating a strategic move to grow its generation portfolio [5] - Hallador is evaluating strategic opportunities to acquire additional dispatchable generation assets and infrastructure to diversify its portfolio and enhance growth [10] - The company is transitioning from a commodity-focused coal producer to a vertically integrated independent power producer, leveraging the energy transition to capture expanding margins in power markets [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong market signals for their product offerings and the potential for long-term arrangements [4] - The evolving energy landscape, characterized by the retirement of dispatchable generators in favor of renewables, is creating opportunities for reliable baseload generation [9] - Management does not expect Q4 2025 to replicate the exceptional performance of Q3, anticipating it will resemble Q4 2024 unless extreme weather conditions occur [24] Other Important Information - The company executed a $20 million prepaid forward power sales contract, with delivery scheduled through the first half of 2027, which is a key component of its commercial strategy [6] - Total forward energy and capacity sales position was $571.7 million as of September 30, 2025, down from $685.7 million at the end of 2024 [17] Q&A Session Summary Question: What are the main milestones for the capacity expansion? - Management indicated that the MISO expedited process will review their application, with updates expected in the coming months [21][22] Question: How has Q4 started compared to Q3? - Management noted that Q4 is expected to look similar to Q4 of 2024, with no significant catalysts anticipated to drive performance like Q3 [24] Question: What are the economics of the 525 MW expansion? - Management is still negotiating equipment and has not released specific economic details yet, but they are encouraged by market signals [29][30] Question: What impact will the recent government funding for coal have? - Management believes that government funding could be beneficial for the industry and that Hallador may qualify for some projects [31] Question: Are there any M&A opportunities being pursued? - Management stated they are primarily focused on the coal space and are encouraged by ongoing conversations regarding potential acquisitions [38][39] Question: What is the status of discussions with potential customers? - Management confirmed they are in advanced discussions with multiple parties, including utilities and data center developers, to secure agreements [45][46]

Financial Data and Key Metrics Changes - The company reported a net income of $32 million, or $0.61 per diluted share, and adjusted EBITDA of $141 million for Q3 2025 [15] - Free cash flow generation was $39 million, with operating cash flow impacted by negative working capital changes of $52 million [15][16] - Total liquidity at the end of Q3 was $995 million, an increase of $47 million compared to Q2 [16] Business Line Data and Key Metrics Changes - High-CV thermal segment coal production was 7.6 million tons in Q3 2025, down from 8 million tons in Q2 2025, with realized coal revenue of $59.78 per ton and cash cost of $40.53 per ton [5] - Metallurgical segment coal production was 2.3 million tons, down from 2.4 million tons in Q2 2025, with realized coke and coal revenue of $112.94 per ton and cash costs of $94.18 per ton [6] - Powder River Basin (PRB) segment coal production increased to 12.9 million tons, with realized coal revenue of $14.09 per ton and cash cost of $13.04 per ton [8] Market Data and Key Metrics Changes - U.S. power demand remained robust, with coal-fired generation increasing by approximately 12% year-to-date [17] - The PJM RTO market saw a 16% increase in coal-fired generation year-to-date [17] - Internationally, cement demand in India is expected to grow approximately 50% by 2030 compared to 2024 levels [19] Company Strategy and Development Direction - The company is focusing on the recovery and repositioning of long-haul equipment at the Lyr-South mine and exploring the presence of rare earth elements and critical minerals in its operations [4][10] - A measured approach to shareholder returns is being maintained, targeting around 75% of free cash flow for share buybacks and dividends [9] - The company aims to fill out its sales book for 2026 and beyond, having layered in nearly 26 million tons of forward contracts [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming operational challenges and highlighted the potential for improved productivity at the West Elk mine due to transitioning to a thicker coal seam [13] - The company anticipates a performance step change in 2026 due to low-cost asset base and advanced logistics network [13] - Management remains optimistic about the long-term fundamentals of the metallurgical segment despite current pressures on global steel prices [19] Other Important Information - The company returned over 60% of Q3 2025 free cash flow to shareholders, deploying $19 million for share repurchases and $5 million for dividends [9] - The board declared a $0.10 per share dividend payable on December 15th to stockholders of record on November 28th [9] Q&A Session Summary Question: Update on West Elk mine and methane levels - Management confirmed that methane issues have been managed and production is expected to resume soon, with confidence in the future performance of the West Elk mine [29][30] Question: Breakdown of high CV coal for 2026 - The company has 17 million tons of committed high CV coal for 2026, with 14 million tons from PAMC and 3 million tons from West Elk, pricing in the upper 50s [31][32] Question: Insurance proceeds and business interruption claims - Management indicated that total costs related to fire and idling are approaching $100 million, with optimism about the overall insurance claim [37] Question: Confidence in maintaining low costs at PAMC - Management expressed confidence in maintaining low costs at PAMC and improving costs at West Elk as operations stabilize [42][44] Question: Rare earth elements and government involvement - The company is evaluating the potential for recovering rare earth elements and critical minerals, leveraging its scale and existing operations [54][56] Question: Domestic thermal market capacity factors - Management noted that domestic coal-fired generation could increase by 20-30%, driven by investments in coal fleet and data center demand [59][60]

Financial Performance - Core reported net income of $31.6 million, or $0.61 per diluted share, and adjusted EBITDA of $141.2 million in Q3 2025, which included $18.4 million of fire extinguishment and idle mine cash costs at Leer South and a $19.4 million initial recovery of insurance proceeds related to the Leer South combustion-related event[6] - The company generated net cash provided by operating activities of $87.9 million and free cash flow of $38.9 million[6] - Core increased cash and cash equivalents by $31.5 million and overall liquidity by $47.5 million[6] Capital Return Program - Core returned $24.6 million to stockholders via share repurchases and quarterly dividends in Q3 2025, increasing the year-to-date capital return total to $218.3 million[6] - Since February 20, 2025, Core has reduced shares outstanding by approximately 5.2%[19] - As of September 30, 2025, Core had $797.4 million of remaining authorization under its existing $1.0 billion share repurchase program[22] Operational Highlights - The company achieved a strong production and sales volume performance at the Pennsylvania Mining Complex[6] - Core transitioned to a more advantageous reserve area at the West Elk mine[6] - The company raised PRB volume guidance again, taking advantage of improving domestic coal generation[6] - Core signed commitments across all segments and all periods totaling nearly 26 million tons[6] - In 2024, the company's sales volume was 85 million tons and revenue was $4.6 billion[7] Market Position and Strategy - The company has a 35% interest in Dominion Terminal Associates ("DTA")[13] - The company has 27 Mtpa export capacity via ownership interests in two marine terminals[13] - The high calorific value thermal segment has a committed book of ~17 million tons and the Powder River Basin segment has a committed book of business of ~40 million tons for delivery in 2026[28]

Core Insights - Warrior Met Coal, Inc. demonstrated strong financial performance in Q3 2025, showcasing operational excellence and strategic investments, particularly with the early startup of Blue Creek longwall operations [1][5][11] - The company raised its production guidance for 2025 by approximately 10% due to the increased output from Blue Creek, now expected to produce 1,800,000 short tons of High Vol A steelmaking coal, an 80% increase over initial guidance [5][11][39] - Despite weak steelmaking coal market conditions, the company achieved record quarterly sales volume of 2,400,000 short tons, a 27% increase compared to the same quarter last year [18][28] Financial Performance - Warrior Met Coal reported net income of $37 million or $0.70 per diluted share in Q3 2025, down from $42 million or $0.80 per diluted share in Q3 2024 [28] - Adjusted EBITDA for the quarter was $71 million, a decrease from $78 million in the same quarter last year, with an adjusted EBITDA margin of 22% [28][25] - Total revenues were $329 million, slightly up from $328 million in the same quarter last year, driven by a 27% increase in sales volume [30] Operational Highlights - The Blue Creek mine is designed for over 6,000,000 short tons of annual production and aims to be the lowest cost mine globally [9] - Capital expenditures for the Blue Creek project totaled $171 million year-to-date, with $64 million spent in Q3 2025, keeping the project on budget [9][37] - The company successfully won a federal coal lease sale for 58,000,000 short tons of high-quality steelmaking coal reserves, which will enhance its reserve base and extend the life of its operations [12][6] Market Conditions - The steelmaking coal market faced challenges from increased Chinese steel exports and subdued global demand, with a 10% rise in Chinese steel exports compared to the previous year [14][15] - The average price for the PLB FOB Australia index remained stable at $166 per short ton, while the PLB CFR China index averaged $162 per short ton, showing recovery from earlier lows [21][22] - The company expects continued pressure on steelmaking coal prices due to oversupply and trade tensions, but anticipates potential long-term recovery in demand from Europe [16][40] Strategic Outlook - The company is focused on ramping up longwall production and optimizing infrastructure performance at Blue Creek, with completion expected by the end of Q1 2026 [10] - Warrior Met Coal aims to maintain a disciplined approach to capital allocation, with plans for potential dividends and stock buybacks as free cash flow increases [44] - The successful early startup of Blue Creek and strategic reserve acquisition are expected to significantly enhance the company's long-term growth strategy [42]

Business Overview - Alpha sold 171 million tons of coal in 2024, with 76% for export and 24% for domestic markets[11] - Adjusted EBITDA in 2024 was $408 million[11] - The company has a diverse sales mix, including 37% High Vol-A, 31% High Vol-B, 19% Mid Vol, and 13% Low Vol[11] Production and Reserves - Total production in 2024 was 157 million tons, and total reserves as of year-end 2024 were 299 million tons[18] - Marfork complex accounted for 31% of total reserves, while McClure / Toms Creek accounted for 22%[18] Financial Performance - In 2024, the average realized price was $143 per ton[61] - Free cash flow in 2024 was $349 million[62] Capital Expenditures - Planned capital expenditures for 2025 are approximately $140 million, including $98 million for maintenance, $32 million for development projects, and $10 million carryover[64] Safety and Environment - The company has a ~24% lower Total Reportable Incident Rate vs Industry Avg[16] - The company has a ~50% Lower Non-Fatal Days Lost vs Industry Avg[16] Market Outlook - Global finished steel demand is expected to grow by ~40Mt or ~26% from 2029E to 2034E[27]

Financial Performance - Alpha Metallurgical Resources reported a net loss of $5.5 million for Q3 2025, compared to a net loss of $5.0 million in Q2 2025 and a net income of $3.8 million in Q3 2024 [3][7] - Adjusted EBITDA for the third quarter was $41.7 million, down from $46.1 million in the previous quarter [3][7] - Operating cash flow decreased to $50.6 million from $53.2 million in the prior quarter [9] Coal Revenues - Total coal revenues for Q3 2025 were $525.2 million, a decrease from $548.7 million in Q2 2025 [3][7] - The metallurgical segment's coal sales realization was $114.94 per ton, down from $119.43 per ton in the previous quarter [4][8] - Tons of coal sold remained stable at 3.9 million tons for both Q3 2025 and Q2 2025 [3][5] Cost Management - The cost of coal sales in the metallurgical segment decreased to $461.6 million in Q3 2025 from $480.0 million in Q2 2025 [6][8] - The average cost of coal sales per ton in the metallurgical segment was $97.27, down from $100.06 in the previous quarter [8] - The company achieved record quarterly cost performance for coal sales, marking a significant achievement in cost reduction [7][2] Liquidity and Capital Resources - As of September 30, 2025, total liquidity was $568.5 million, including cash and cash equivalents of $408.5 million [10] - Capital expenditures for Q3 2025 were $25.1 million, a decrease from $34.6 million in Q2 2025 [9][10] Share Repurchase Program - The board of directors authorized a share repurchase program of up to $1.5 billion, with approximately 6.8 million shares repurchased at a cost of about $1.1 billion as of October 31, 2025 [11][12] 2025 Guidance Adjustments - The company lowered its 2025 guidance range for capital contributions to equity affiliates to between $35 million and $41 million, down from $44 million to $54 million [13] - Approximately 85% of metallurgical coal for 2025 has been committed and priced at an average price of $122.57 per ton [13][14]

Group 1 - The company primarily invests in turnarounds within the natural resource industries, with a typical holding period of 2-4 years, focusing on value for downside protection and upside participation [1] - The portfolio has achieved a compounded annual growth rate of 34% over the last 7 years, indicating strong performance [1] - Warrior Met Coal (HCC) is a U.S. metallurgical coal mining company with two operating mines and a development project, Blue Creek, which is ahead of schedule, starting longwall mining in October 2025 [2] Group 2 - The investment strategy emphasizes companies with quality characteristics that are trading at depressed valuations, allowing for participation in the upside of natural resource investing while mitigating extreme drawdowns [2]

Group 1 - The company primarily invests in turnarounds within the natural resource industries, with a typical holding period of 2-4 years, focusing on value for downside protection and upside participation [1] - The portfolio has achieved a compounded annual growth rate of 34% over the last 7 years, indicating strong performance [1] - Warrior Met Coal (HCC) is a U.S. metallurgical coal mining company with two operating mines and a development project, Blue Creek, which is ahead of schedule, starting longwall mining in October 2025 [2] Group 2 - The investment strategy emphasizes companies with quality characteristics that are trading at depressed valuations, allowing for participation in the upside of natural resource investing while mitigating extreme drawdowns [2]

Financial Performance - Core Natural Resources, Inc. reported net income of $31.6 million, or $0.61 per diluted share, for Q3 2025, with adjusted EBITDA of $141.2 million [1][2] - The company generated net cash provided by operating activities of $87.9 million and free cash flow of $38.9 million during the quarter [8][29] - Revenues for the third quarter totaled $1,002.5 million [1] Operational Highlights - The transition to a more advantageous reserve area at the West Elk mine is expected to enhance performance due to the B-Seam's greater thickness and higher coal quality [2][3] - The metallurgical segment sold 1.9 million tons of coal, achieving realized coal revenue per ton sold for coking coal of $112.94 [4] - In the Powder River Basin segment, sales volumes reached 13.0 million tons, with realized coal revenue per ton sold at $14.09 [5] Capital Return and Shareholder Returns - Core returned $24.6 million to stockholders through share buybacks and dividends, totaling $218.3 million since the capital return program's launch in February [1][8] - The company has committed to returning approximately 75% of free cash flow to stockholders, primarily through share repurchases and a quarterly dividend of $0.10 per share [7][9] Future Outlook - The company anticipates continued robust free cash flow generation supported by cost control efforts and the expected restart of the Leer South longwall [10] - Core is preparing for a significant performance improvement in 2026, leveraging its diverse asset base and favorable market conditions [18] Rare Earth Elements and Critical Minerals - Core has identified elevated concentrations of rare earth elements and critical minerals at its Black Thunder and Coal Creek mines, indicating potential future opportunities [15][16] - The company is initiating an expanded drilling program to further evaluate these resources and is engaging with technology providers for potential future projects [17]

Financial Data and Key Metrics Changes - The company reported a net income of $37 million or $0.70 per diluted share for Q3 2025, compared to $42 million or $0.80 per diluted share in Q3 2024, indicating a decrease in profitability year-over-year [25] - Adjusted EBITDA for Q3 2025 was $71 million, down from $78 million in the same quarter last year, with an adjusted EBITDA margin of 22% compared to 24% in the prior year [25][26] - Total revenues were $329 million in Q3 2025, slightly up from $328 million in the same quarter last year, primarily driven by a 27% increase in sales volume [26] Business Line Data and Key Metrics Changes - The company achieved record quarterly sales volume of 2.4 million short tons in Q3 2025, a 27% increase from 1.9 million short tons in the same quarter last year [17] - Production volume in Q3 2025 was 2.2 million short tons, up 17% from 1.9 million short tons in Q3 2024 [18] - The Blue Creek mine produced 175,000 short tons during Q3 2025, contributing to the overall increase in production volume [18] Market Data and Key Metrics Changes - The primary index, PLV FOB Australia, averaged $166 per short ton in Q3 2025, while the PLV CFR China index price averaged $162 per short ton, recovering from earlier lows [20] - The Australian LVHCC index price averaged $137 per short ton, and the US East Coast HVA index price averaged $141 per short ton during the same period [21] - The company sold 43% of its coal into Europe, 38% into Asia, and 18% into South America in Q3 2025 [17] Company Strategy and Development Direction - The company has raised its full-year 2025 production volume guidance by approximately 10% due to the earlier startup of Blue Creek longwall operations, now expected to produce approximately 1.8 million short tons of high-vol steelmaking coal [5][11] - The acquisition of 58 million short tons of high-quality steelmaking coal reserves is expected to enhance the company's long-term value proposition and extend the life of its core mining operations [6][12] - The company remains focused on operational excellence and strategic investments to drive shareholder value [4][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing weak steelmaking coal market conditions due to increased Chinese steel exports and subdued global demand, but expressed confidence in the company's operational successes driving strong financial performance [6][33] - The company anticipates continued pressure on steelmaking coal markets due to additional supply coming online and trade tensions affecting global market sentiment [33][48] - Despite challenges, management remains optimistic about long-term growth trajectories and the potential for new trade agreements to support market conditions [33] Other Important Information - The company achieved a gross price realization of 83% in Q3 2025, down from 93% in the same quarter last year, primarily due to relative index pricing and product mix [23] - Cash cost of sales per short ton was approximately $101 in Q3 2025, down from $123 in the same quarter last year, reflecting effective cost management [28] - Free cash flow was negative $20 million due to capital expenditures and mine development costs, but the company maintains a strong liquidity position with $525 million available [31][32] Q&A Session Summary Question: How should we think about production next year with the early Blue Creek startup? - Management indicated that production numbers will be market-driven and are still being evaluated [37] Question: Can you remind us how you are thinking about capital allocation? - The company plans to return excess free cash flow through dividends and possibly stock buybacks [38] Question: Do you still need incremental workers to ramp up production? - Management confirmed that additional hiring will continue over the next year to support operations [39] Question: How will sales shift quarter over quarter? - The company expects a significant increase in sales volume due to Blue Creek production [40] Question: How does the acquisition influence decisions on adding another longwall? - The acquisition enhances efficiency and control over reserves, making future operations more cost-effective [41] Question: What is the outlook for pricing and realizations going forward? - Management expressed cautious optimism about returning to targeted price realizations, depending on market conditions [49][50]