Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss of $79 million, or $1.54 per dilutive share, and adjusted EBITDA of $103 million, which includes $25 million of fire and idle costs from Leer South and $11 million from West Elk [13][14] - For the full year 2025, the net loss was $153 million, or $2.98 per dilutive share, with adjusted EBITDA of $512 million, impacted by $101 million related to Leer South fire and idle costs and $11 million from West Elk idle costs [15][16] - The company returned a total of $245 million to stockholders in 2025, constituting nearly 100% of free cash flow generation [8][9] Business Line Data and Key Metrics Changes - The Leer South mine resumed longwall mining in mid-December 2025 after a combustion event in early 2025, achieving its production target in January 2026 [5][6] - The West Elk mine transitioned to the B seam, which has shown significantly improved mining conditions, and is expected to run at high productivity levels in 2026 [7][8] Market Data and Key Metrics Changes - U.S. utility coal consumption increased by 12% in 2025 compared to 2024, with coal-fired generation in the PJM and MISO areas rising over 19% and 15%, respectively [16][17] - Global coal demand rose by approximately 0.5% to 8.9 billion metric tons in 2025, indicating a multi-year growth pattern [18] Company Strategy and Development Direction - The company is focused on capturing synergies from the merger, operational excellence across its segments, and establishing a safety-driven culture [4][5] - The company plans to return approximately 75% of free cash flow to shareholders, with a significant portion directed to share repurchases and a quarterly dividend of $0.10 per share [8][9] - The company is also advancing efforts in rare earth elements and critical materials, with ongoing projects in the PRB and Northern Appalachia [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance for 2026, expecting strong results from both Leer South and West Elk mines [27][28] - The company anticipates a reduction in idling costs and an increase in insurance recovery compared to 2025, contributing to improved financial performance [24][28] Other Important Information - The company is benefiting from supportive coal policies under the current administration, including a production tax credit for coal and delayed retirements of coal-fired generation units [10][11] - The company is optimistic about the growth in demand for coal driven by the expansion of data centers, particularly in the Americas [17][18] Q&A Session Summary Question: Can you break out the high CV committed and priced for the PAMC portion? - The company has approximately 20.5 million tons committed for high CV, with 12 million domestic and 8.5 million for export, linked to API2 pricing [33][34] Question: What is the outlook for the order book in outer years? - The company contracted over 38 million tons last quarter, with pricing in contango for forward years [38][39] Question: What does the 45X credit mean for shareholder returns? - The company expects higher insurance proceeds and a reduction in idling costs, which will positively impact cash flow and shareholder returns [40][44] Question: How are synergies showing up in the P&L? - Synergies are primarily seen in headcount reductions and improved marketing and logistics, but overall market conditions have impacted their full realization [51][52] Question: What tangible steps have been taken to improve operational delivery for 2026? - The company has all assets running and has implemented schedule changes and production strategies to enhance efficiency [90][91]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss of $79 million, or $1.54 per dilutive share, with adjusted EBITDA of $103 million, which includes $25 million of fire and idle costs from Leer South and $11 million from West Elk [12] - For the full year 2025, the net loss was $153 million, or $2.98 per dilutive share, with adjusted EBITDA of $512 million, impacted by $101 million related to Leer South fire and idle costs and $11 million from West Elk idle costs [13] - The company returned a total of $245 million to stockholders in 2025, constituting nearly 100% of free cash flow generation [7][8] Business Line Data and Key Metrics Changes - The Leer South mine resumed longwall mining in mid-December 2025 after a combustion event in early 2025, achieving its production target in January 2026 [5] - West Elk transitioned to the B seam, which has significantly better mining conditions, and is now running at high productivity levels [6] Market Data and Key Metrics Changes - U.S. utility coal consumption increased by 12% in 2025 compared to 2024, with coal-fired generation in the PJM and MISO areas rising over 19% and 15%, respectively [14] - Global coal demand rose by approximately 0.5% to 8.9 billion metric tons in 2025, continuing a multi-year growth trend [16] Company Strategy and Development Direction - The company is focused on operational excellence, capturing synergies from the merger, and expanding its customer base for high-quality coal [4][5] - The company supports the Trump administration's initiatives to preserve and upgrade the U.S. coal fleet and expand coal exports [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance for 2026, expecting strong results from both Leer South and West Elk mines [24] - The company anticipates a significant reduction in merger-related expenses and an increase in insurance recovery compared to 2025 [21] Other Important Information - The company is advancing efforts in rare earth elements and critical materials, with ongoing projects in the PRB and Northern Appalachia [22][23] - Capital expenditures for 2026 are expected to be between $325 million and $375 million, with a focus on maintenance and growth initiatives [20] Q&A Session Summary Question: Can you break out the high CV committed and priced for PAMC coal? - The company has approximately 20.5 million tons committed for high CV, with 12 million domestic and 8.5 million for export, linked to API2 pricing [30] Question: What is the outlook for shareholder returns? - The company plans to continue returning 75% of free cash flow to shareholders, with expectations for increased returns in 2026 [40] Question: What are the expectations for unit costs in 2026? - The company expects unit costs to improve in 2026 compared to 2025, with a focus on operational efficiency and cost management [57][58] Question: How is the market for high-volume coal with Leer South ramping up? - The company is seeing increased appetite in Asian markets and anticipates contracting significant volumes, particularly linked to PLV prices [62]