Financial Data and Key Metrics Changes - In Q1 2025, the company recorded net income attributable to common stockholders of $34 million or $0.27 per diluted share and adjusted EBITDA of $144 million, demonstrating strong performance amid challenging market conditions [27][28] - The company generated $30 million in free cash flow, net of $47 million of continued development at the Centurion mine [28] - As of March 31, the company held nearly $700 million in cash and over $1 billion in liquidity, maintaining a cash-positive net debt position [29] Business Line Data and Key Metrics Changes - The seaborne thermal segment achieved $84 million of adjusted EBITDA with 32% margins, exceeding production forecasts by exporting an additional 400,000 tons [29][30] - The seaborne metallurgical segment reported $13 million of adjusted EBITDA, with sales modestly below company targets due to lagging market conditions [30] - The US thermal mines generated $69 million of adjusted EBITDA, with the PRB mines exceeding expectations by shipping 19.6 million tons [31][32] Market Data and Key Metrics Changes - US generator inventories have declined by more than 25% on a days burn basis since the beginning of the year, indicating strong demand for coal [21] - Coal generation in the US is projected to increase by 5% for the full year, while US coal production is expected to decline by 6% [21] - Thermal coal prices reached four-year lows in March, prompting production rationalization as demand remains intact with 600 GW of coal generation under construction or in development, primarily in Asia [22] Company Strategy and Development Direction - The company is focused on cost control and managing its diversified global portfolio to navigate cyclical market softness [6][27] - The Centurion mine is on budget and ahead of schedule, projected to have a low cost structure and high margins in the steelmaking coal universe [7][36] - The company supports the US coal industry and aims to capitalize on rising electricity demand and the potential unretirement of coal plants [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the coal market dynamics, noting a significant increase in coal fuel generation by 20% over the prior year [11] - The company anticipates increasing demand throughout 2025, with a strong start to the year and expectations for a stronger second half [35] - Management highlighted the importance of sustainable longwall production at the Moranbah North mine and the potential impacts of the material adverse change notice [17][41] Other Important Information - The company notified Anglo American of a material adverse change related to the Moranbah North mine, which remains inactive following a gas ignition event [16][17] - The company is exploring a potential partial sale of the Centurion line, independent of the Anglo acquisition process [66] Q&A Session Summary Question: What is the process following the MAC notification regarding Moranbah North? - Management indicated a ten-day period for Anglo to respond, followed by a potential ninety-day cure period to resolve the MAC [42][43] Question: What constitutes a sustainable resolution for the MAC? - Management emphasized the need for sustainable longwall production and a clear timeline for resuming operations [46][47] Question: How does the MAC impact financing processes? - Financing discussions are currently on hold due to uncertainty surrounding the Moranbah North mine [49] Question: What are the implications of the executive orders signed to support US coal production? - Management noted that the orders aim to prevent further coal plant closures and encourage long-term contracts for coal supply [90][91] Question: How does the agreement with Associated Electric Cooperative affect capital deployment? - Management clarified that the agreement does not change capital investment strategies, as the company has always positioned itself for long-term operations [97][99]

Financial Data and Key Metrics Changes - In Q1 2025, the company recorded net income attributable to common stockholders of $34 million or $0.27 per diluted share, with adjusted EBITDA of $144 million [27] - The company generated $30 million in free cash flow, net of $47 million of continued development at Centurion [27] - As of March 31, the company held nearly $700 million in cash and had over $1 billion in liquidity, maintaining a cash positive net debt position [28] Business Line Data and Key Metrics Changes - The seaborne thermal segment achieved $84 million in adjusted EBITDA with 32% margins, exceeding production forecasts by exporting an additional 400,000 tons [28] - The seaborne metallurgical segment reported $13 million in adjusted EBITDA, with sales modestly below company targets due to lagging market conditions [29] - The US thermal mines generated $69 million in adjusted EBITDA, with the PRB mines exceeding expectations by shipping 19.6 million tons [30] Market Data and Key Metrics Changes - US generator inventories have declined by more than 25% on a days burn basis since the beginning of the year, indicating strong demand for coal [20] - Coal generation in the US is projected to increase by 5% for the full year, while US coal production is expected to decline by 6% [21] - Thermal coal prices reached four-year lows in March, but demand remains intact with 600 GW of coal generation under construction or in various stages of development, primarily in Asia [22] Company Strategy and Development Direction - The company is focused on cost control and managing its diversified global portfolio to navigate cyclical market softness [5] - The Centurion mine is on budget and ahead of schedule, projected to have a low cost structure and high margins in the steelmaking coal universe [6] - The company supports the US administration's efforts to revitalize the coal industry and expand coal-fired generation, aligning with rising electricity demand [7][10] Management's Comments on Operating Environment and Future Outlook - Management noted that coal fuel generation in the US is up 20% over the prior year, indicating a shift in market share from higher-priced natural gas [10] - The company anticipates increasing demand throughout 2025, with a strong start to the year and expectations for a stronger second half [34] - Management expressed confidence in the long-term demand for coal, citing substantial US coal demand for many years into the future [13] Other Important Information - The company notified Anglo American of a material adverse change (MAC) related to the Moranbah North mine, which remains inactive following a gas ignition event [16] - The acquisition of premium steelmaking coal mines in Australia is under scrutiny due to uncertainties surrounding the Moranbah North mine [17] - The company is exploring a potential partial sale of the Centurion line, independent of the Anglo acquisition process [63] Q&A Session Summary Question: What is the process following the MAC notification regarding Moranbah North? - Management indicated a ten-day period for Anglo to respond, followed by a potential ninety-day cure period to resolve the MAC [40] Question: What constitutes a sustainable resolution for the MAC? - Management stated that a sustainable longwall production must be established for the agreement to proceed, but specifics were not disclosed [45] Question: How does the MAC impact financing processes? - Financing discussions are currently on hold due to uncertainties surrounding the Moranbah North mine [48] Question: What differentiates the current event at Moranbah North from past incidents? - Management emphasized the significant potential impacts of the current situation, which they believe constitutes a MAC [53] Question: How will the executive orders supporting US coal production impact the business? - Management noted that the orders aim to prevent further coal plant closures and encourage long-term contracts, which could benefit the company [87]