Q4 2025 Warrior Met Coal Inc Earnings Call

Speaker #2: At this time, all lines are in a listen-only mode. Following today's presentation, there will be an opportunity to have a question-and-answer session. This call today is being recorded and will be available for replay once the call is over on the company's website.

Speaker #2: I would now like to turn the call over to Brian Chopin, Chief Accounting Officer and Controller. Please go ahead, sir. Good afternoon, and welcome, everyone, to Warrior's fourth quarter and full year 2025 earnings conference call.

Brian M. Chopin: Good afternoon, and welcome everyone to Warrior's fourth quarter and full year 2025 earnings conference call. Before we begin, let me remind you that certain statements made during this call, including statements relating to our expected future business and financial performance, may be considered forward-looking statements according to the Private Securities Litigation Reform Act. Forward-looking statements, by their nature, address matters that are to different degrees uncertain. These uncertainties, which are described in more detail in the company's annual and quarterly reports filed with the SEC, may cause our actual future results to be materially different from those expected in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings.

Brian Chopin: Good afternoon, and welcome everyone to Warrior's fourth quarter and full year 2025 earnings conference call. Before we begin, let me remind you that certain statements made during this call, including statements relating to our expected future business and financial performance, may be considered forward-looking statements according to the Private Securities Litigation Reform Act. Forward-looking statements, by their nature, address matters that are to different degrees uncertain. These uncertainties, which are described in more detail in the company's annual and quarterly reports filed with the SEC, may cause our actual future results to be materially different from those expected in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings.

Speaker #2: Before we begin, let me remind you that certain statements made during this call, including statements relating to our expected future business and financial performance, may be considered forward-looking statements according to the Private Securities Litigation Reform Act.

Speaker #2: Forward-looking statements, by their nature, address matters that are to different degrees uncertain. These uncertainties, which are described in more detail in the company's annual and quarterly reports filed with the SEC, may cause our actual future results to be materially different from those expected in our forward-looking statements.

Speaker #2: We do not undertake to update our forward-looking statements, whether as a result of new information, future events, or otherwise. Except as may be required by law.

Speaker #2: For more information regarding forward-looking statements, please refer to the company's press releases and SEC filings. We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our fourth quarter press release furnished to the SEC on Form 8-K, which is also posted on our website.

Brian M. Chopin: We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our Q4 press release furnished to the SEC on Form 8-K, which is also posted on our website. Additionally, we will be filing our Form 10-K for the year ended December 31, 2025, with the SEC this afternoon. You can find additional information regarding the company on our website at www.warriormetcoal.com, which also includes a Q4 supplemental slide deck that was posted this afternoon. Today, on the call with me are Mr. Walter Scheller, Chief Executive Officer, and Mr. Dale Boyles, Chief Financial Officer. After our formal remarks, we will be happy to answer any questions. With that, I will now return the call over to Walt.

Brian Chopin: We will also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our Q4 press release furnished to the SEC on Form 8-K, which is also posted on our website. Additionally, we will be filing our Form 10-K for the year ended December 31, 2025, with the SEC this afternoon. You can find additional information regarding the company on our website at www.warriormetcoal.com, which also includes a Q4 supplemental slide deck that was posted this afternoon. Today, on the call with me are Mr. Walter Scheller, Chief Executive Officer, and Mr. Dale Boyles, Chief Financial Officer. After our formal remarks, we will be happy to answer any questions. With that, I will now return the call over to Walt.

Speaker #2: Additionally, we will be filing our Form 10K for the year ended December 31st, 2025, with the SEC this afternoon. You can find additional information regarding the company on our website at www.warriormetcoal.com, which also includes a 4th Quarter supplemental slide deck that was posted this afternoon.

Speaker #2: Today on the call with me are Mr. Walt Scheller, Chief Executive Officer, and Mr. Dale Boyles, Chief Financial Officer. After our formal remarks, we will be happy to answer any questions.

Speaker #2: With that, I will now turn the call over to Walt. Thanks, Brian. Hello, everyone, and thank you for taking the time to join us today to discuss our fourth quarter and full year 2025 results.

Walter J. Scheller III: Thanks, Brian. Hello, everyone, and thank you for taking the time to join us today to discuss our fourth quarter and full year 2025 results. I'll start by providing an overview of the quarter before Dale reviews our results in additional detail. 2025 was a transformative year for Warrior, as Blue Creek began reshaping our production profile, cost structure, and long-term earnings potential. This performance was exemplified by our fourth quarter operational and financial results, which exceeded our expectations. As we previously communicated, the longwall operations at Blue Creek began production during the fourth quarter, 8 months ahead of schedule, on budget, and funded by cash flows from operations.

Walter Scheller: Thanks, Brian. Hello, everyone, and thank you for taking the time to join us today to discuss our fourth quarter and full year 2025 results. I'll start by providing an overview of the quarter before Dale reviews our results in additional detail. 2025 was a transformative year for Warrior, as Blue Creek began reshaping our production profile, cost structure, and long-term earnings potential. This performance was exemplified by our fourth quarter operational and financial results, which exceeded our expectations. As we previously communicated, the longwall operations at Blue Creek began production during the fourth quarter, 8 months ahead of schedule, on budget, and funded by cash flows from operations.

Speaker #2: I'll start by providing an overview of the quarter before Dale reviews our results and additional detail. 2025 was a transformative year for WARRIOR. As Blue Creek began reshaping our production profile, cost structure, and long-term earnings potential, this performance was exemplified by our 4th Quarter operational and financial results which exceeded our expectations.

Speaker #2: As we previously communicated, the long-haul operations at Blue Creek began production during the 4th Quarter. Eight months ahead of schedule. On budget, and funded by cash flows from operations.

Speaker #2: In continuing our trend of operational excellence throughout the entire Blue Creek project, the ramp-up of the Blue Creek long-haul was remarkably smooth, especially for a project of this scale.

Walter J. Scheller III: In continuing our trend of operational excellence throughout the entire Blue Creek project, the ramp-up of the Blue Creek longwall was remarkably smooth, especially for a project of this scale, and delivered a strong operating performance during Q4. We achieved an annualized run rate of production during the quarter that well supports our increased volume guidance for 2026. I'll discuss our 2026 guidance later in my comments. Our strong performance in Q4, including a record high quarterly sales volume, wrapped up a remarkably successful year, despite weak market conditions for steelmaking coal. We achieved double-digit volume growth in both sales and production volumes for the full year 2025, which were also record high levels of output for the company.

Walter Scheller: In continuing our trend of operational excellence throughout the entire Blue Creek project, the ramp-up of the Blue Creek longwall was remarkably smooth, especially for a project of this scale, and delivered a strong operating performance during Q4. We achieved an annualized run rate of production during the quarter that well supports our increased volume guidance for 2026. I'll discuss our 2026 guidance later in my comments. Our strong performance in Q4, including a record high quarterly sales volume, wrapped up a remarkably successful year, despite weak market conditions for steelmaking coal. We achieved double-digit volume growth in both sales and production volumes for the full year 2025, which were also record high levels of output for the company.

Speaker #2: And delivered a strong operating performance during the fourth quarter. We achieved an annualized run rate of production during the quarter that well supports our increased volume guidance for 2026.

Speaker #2: I'll discuss our 2026 guidance later in my comments. Our strong performance in the fourth quarter, including a record-high quarterly sales volume, wrapped up a remarkably successful year despite weak market conditions for steelmaking coal.

Speaker #2: We achieved double-digit volume growth in both sales and production volumes for the full year 2025. Which were also record-high levels of output for the company.

Speaker #2: This performance continued to reduce our first quartile cash costs, leveraging the inherently lower cost structure of the Blue Creek mine. In addition to the Blue Creek ramp-up, both Mine 7 and Mine 4 continued their high standards of strong performance, which was particularly important to the overall success of the company.

Walter J. Scheller III: This performance continued to reduce our first quartile cash costs, leveraging the inherently lower cost structure of the Blue Creek mine. In addition to the Blue Creek ramp-up, both Mine Seven and Mine Four continued their high standards of strong performance, which is particularly important to the overall success of the company. Mine Four set a new record high output for both sales and production volume. Total sales volume for 2025 was 9.6 million short tons, a record high, and a 21% increase over the prior year. Production volume was 10.2 million short tons, also a record high and a 24% increase over 2024. Now let me turn to more specifics on the market conditions during the fourth quarter before I share more detail on our operational and financial performance.

Walter Scheller: This performance continued to reduce our first quartile cash costs, leveraging the inherently lower cost structure of the Blue Creek mine. In addition to the Blue Creek ramp-up, both Mine Seven and Mine Four continued their high standards of strong performance, which is particularly important to the overall success of the company. Mine Four set a new record high output for both sales and production volume. Total sales volume for 2025 was 9.6 million short tons, a record high, and a 21% increase over the prior year. Production volume was 10.2 million short tons, also a record high and a 24% increase over 2024. Now let me turn to more specifics on the market conditions during the fourth quarter before I share more detail on our operational and financial performance.

Speaker #2: Mine 4 set a new record-high output for both sales and production volume. Total sales volume for 2025 was 9.6 million short tons, a record high.

Speaker #2: And a 21% increase over the prior year. Production volume was 10.2 million short tons, also a record high, and a 24% increase over 2024. Now let me turn to more specifics on the market conditions during the fourth quarter.

Speaker #2: Before I share more detail on our operational and financial performance. The primary underlying drivers of the weak steelmaking coal markets for the 4th Quarter were a continuation of the same factors we've been discussing each quarter for the past two years.

Walter J. Scheller III: The primary underlying drivers of the weak steelmaking coal markets for Q4 were a continuation of the same factors we've been discussing each quarter for the past two years. In fact, Chinese steel export volumes for 2025 set a new record high of 119 million metric tons, a 7.2% increase year over year. Chinese crude steel production decreased by 4.4% during the same period, prompting the country to contemplate production control and implement export licenses. Beyond the sustained strength in key markets such as India, which grew its pig iron production by over 6% in 2025, global steel fundamentals have not shown significant improvement in the last couple of years.

Walter Scheller: The primary underlying drivers of the weak steelmaking coal markets for Q4 were a continuation of the same factors we've been discussing each quarter for the past two years. In fact, Chinese steel export volumes for 2025 set a new record high of 119 million metric tons, a 7.2% increase year over year. Chinese crude steel production decreased by 4.4% during the same period, prompting the country to contemplate production control and implement export licenses. Beyond the sustained strength in key markets such as India, which grew its pig iron production by over 6% in 2025, global steel fundamentals have not shown significant improvement in the last couple of years.

Speaker #2: In fact, Chinese steel export volumes for 2025 set a new record high of 119 million metric tons, a 7.2% increase year over year. Chinese crude steel production decreased by 4.4% during the same period.

Speaker #2: Prompting the country to contemplate production control and implement export licenses. Beyond the sustained strength in key markets such as India, which grew its pig iron production by over 6% in 2025, global steel fundamentals have not shown significant improvement in the last couple of years.

Speaker #2: While global steelmaking coal markets remain challenged—a continuation of trends we've navigated successfully for the past two years—WARRIOR's disciplined execution and early contributions from Blue Creek allowed us to outperform despite the environment.

Walter J. Scheller III: While global steelmaking coal markets remain challenged, a continuation of trends we've navigated successfully for the past 2 years, Warrior's disciplined execution and early contributions from Blue Creek allowed us to outperform despite the environment. Our primary index, the PLV FOB Australia, performed above our expectations for Q4 and averaged $182 per short ton, which was the highest quarterly average in 2025 and marked the first time at that level since December 2024. The index average was 9% or $15 per ton higher than Q3 of 2025, and was 1% lower than Q4 of 2024.

Walter Scheller: While global steelmaking coal markets remain challenged, a continuation of trends we've navigated successfully for the past 2 years, Warrior's disciplined execution and early contributions from Blue Creek allowed us to outperform despite the environment. Our primary index, the PLV FOB Australia, performed above our expectations for Q4 and averaged $182 per short ton, which was the highest quarterly average in 2025 and marked the first time at that level since December 2024. The index average was 9% or $15 per ton higher than Q3 of 2025, and was 1% lower than Q4 of 2024.

Speaker #2: Our primary index, the POB-FOB Australia, performed above our expectations for the 4th Quarter and averaged $182 per short ton. Which was the highest quarterly average in 2025.

Speaker #2: And marked the first time at that level since December 2024. The index average was 9% or $15 per ton higher than the 3rd Quarter 2025 and was 1% lower than the 4th Quarter 2024.

Speaker #2: As for the main second-tier indices, the Australian LVHCC index price continued its recovery from its low point in the 2nd Quarter and averaged $154 per short ton for the 4th Quarter.

Walter J. Scheller III: As for the main second-tier indices, the Australian LVHCC index price continued its recovery from its low point in Q2 and averaged $154 per short ton for Q4. This is $17 per ton, or 13% higher than Q3 2025, and 1% higher than Q4 2024. As a result, the relativity of Australian LVHCC index price to the Australian PLV index price improved from 82% for Q3 to 85% for Q4 2025. In contrast to the Australian LVHCC index price, the average East Coast HVA index price decreased $6 per ton, or 4%, in Q4 from Q3 and averaged $135 per short ton.

Walter Scheller: As for the main second-tier indices, the Australian LVHCC index price continued its recovery from its low point in Q2 and averaged $154 per short ton for Q4. This is $17 per ton, or 13% higher than Q3 2025, and 1% higher than Q4 2024. As a result, the relativity of Australian LVHCC index price to the Australian PLV index price improved from 82% for Q3 to 85% for Q4 2025. In contrast to the Australian LVHCC index price, the average East Coast HVA index price decreased $6 per ton, or 4%, in Q4 from Q3 and averaged $135 per short ton.

Speaker #2: This was $17 per ton or 13% higher than the 3rd Quarter 2025 and 1% higher than the 4th Quarter 2024. As a result, the relativity of Australian LVHCC index price to the Australian POB index price improved from 82% for the 3rd Quarter to 85% for the 4th Quarter 2025.

Speaker #2: In contrast to the Australian LVHCC index price, the average East Coast HVA index price decreased $6 per ton or 4% in the 4th Quarter from the 3rd Quarter and averaged $135 per short ton.

Speaker #2: As a result, the relativity decreased from 85% for the 3rd Quarter to 75% for the 4th Quarter 2025. We achieved a gross price realization of $75% for the 4th Quarter 2025 compared to 83% in the 3rd Quarter 2025.

Walter J. Scheller III: As a result, the Relativity decreased from 85% for Q3 to 75% for Q4 2025. We achieved a Gross Price Realization of 75% for Q4 2025, compared to 83% in Q3 of 2025. While the average of both main pricing indices increased in Q4 compared to Q3 2025, our lower Gross Price Realization was primarily driven by a combination of four factors. First, our sales mix of High Vol A quality was 8% higher. Second, that higher sales mix of High Vol A quality was primarily sold into the Pacific Basin. We sold 18% more volume into the Pacific Basin in Q4 than Q3 2025.

Walter Scheller: As a result, the Relativity decreased from 85% for Q3 to 75% for Q4 2025. We achieved a Gross Price Realization of 75% for Q4 2025, compared to 83% in Q3 of 2025. While the average of both main pricing indices increased in Q4 compared to Q3 2025, our lower Gross Price Realization was primarily driven by a combination of four factors. First, our sales mix of High Vol A quality was 8% higher. Second, that higher sales mix of High Vol A quality was primarily sold into the Pacific Basin. We sold 18% more volume into the Pacific Basin in Q4 than Q3 2025.

Speaker #2: While the average of both main pricing indices increased in the 4th Quarter compared to the 3rd Quarter 2025, our lower gross price realization was primarily driven by a combination of four factors.

Speaker #2: First, our sales mix of high-vol A quality was 8% higher. Second, that higher sales mix of high-vol A quality was primarily sold into the Pacific Basin.

Speaker #2: We sold 18% more volume into the Pacific Basin in the fourth quarter than in the third quarter of 2025. Third, the merge costs were temporarily higher in the fourth quarter due to longer vessel loading queues that were attributed to modernization work on a shiploader at the terminal.

Walter J. Scheller III: Third, the demurrage costs were temporarily higher in the fourth quarter due to longer vessel loading queues that were attributed to modernization work on a ship loader at the terminal. Fourth, we continued to experience elevated freight rates into the Pacific Basin. As we continue to ramp up Blue Creek production and sales volume, our quarterly gross price realization may be volatile, depending upon the relative index price, product mix, geography, tariffs, and freight rates to the Pacific Basin. However, on a long-term basis, including Blue Creek, we expect our annual gross price realization to be approximately 80 to 85%, assuming the relativities of the Australian LVHCC index price and US East Coast HVA index price to the Australian PLV index price historical averages.

Walter Scheller: Third, the demurrage costs were temporarily higher in the fourth quarter due to longer vessel loading queues that were attributed to modernization work on a ship loader at the terminal. Fourth, we continued to experience elevated freight rates into the Pacific Basin. As we continue to ramp up Blue Creek production and sales volume, our quarterly gross price realization may be volatile, depending upon the relative index price, product mix, geography, tariffs, and freight rates to the Pacific Basin. However, on a long-term basis, including Blue Creek, we expect our annual gross price realization to be approximately 80 to 85%, assuming the relativities of the Australian LVHCC index price and US East Coast HVA index price to the Australian PLV index price historical averages.

Speaker #2: And fourth, we continue to experience elevated freight rates into the Pacific Basin. As we continue to ramp up Blue Creek production and sales volume, our quarterly gross price realization may be volatile depending upon the relative index price, product mix, geography, tariffs, and freight rates to the Pacific Basin.

Speaker #2: However, on a long-term basis, including Blue Creek, we expect our annual gross price realization to be approximately 80 to 85 percent, assuming the relativities of the Australian LVHCC index price and U.S. East Coast HVA index price to the Australian POB index price historical averages.

Speaker #2: However, this may not be 2026, and not until the overall market fundamentals of supply and demand become more balanced across the regions of the world.

Walter J. Scheller III: However, this may not be achievable in 2026, and not until the overall market fundamentals of supply and demand become more balanced across the regions of the world. While Blue Creek product mix will influence our long-term average net selling price, Blue Creek's significantly lower cost structure is expected to more than offset this and drive substantial margin expansion for the company. Strong contractual demand, combined with excellent performance from our legacy mines, and the additional contribution from Blue Creek, enabled Warrior to achieve a record high quarterly sales volume in the fourth quarter of 2.9 million short tons. This result compares to 1.9 million tons in the same quarter of 2024, representing a 53% increase.

Walter Scheller: However, this may not be achievable in 2026, and not until the overall market fundamentals of supply and demand become more balanced across the regions of the world. While Blue Creek product mix will influence our long-term average net selling price, Blue Creek's significantly lower cost structure is expected to more than offset this and drive substantial margin expansion for the company. Strong contractual demand, combined with excellent performance from our legacy mines, and the additional contribution from Blue Creek, enabled Warrior to achieve a record high quarterly sales volume in the fourth quarter of 2.9 million short tons. This result compares to 1.9 million tons in the same quarter of 2024, representing a 53% increase.

Speaker #2: While Blue Creek product mix will influence our long-term average net selling price, Blue Creek's significantly lower cost structure is expected to more than offset this and drive substantial margin expansion for the company.

Speaker #2: Strong contractual demand combined with excellent performance from our legacy mines and the additional contribution from Blue Creek enabled WARRIOR to achieve a record-high quarterly sales volume in the 4th Quarter of $2.9 million short tons.

Speaker #2: This result compares to 1.9 million tons in the same quarter of 2024, representing a 53% increase. We sold 881,000 tons of Blue Creek steelmaking coal during the fourth quarter of 2025.

Walter J. Scheller III: We sold 881,000 tons of Blue Creek steelmaking coal during Q4 2025, which were contractual volumes sold primarily into Asia. Our sales by geography for the fourth quarter break down as follows: 57% into Asia, 34% into Europe, and 9% into South America. Our spot volume was 6% for Q4 2025, and was 9% for the full year. Production volume in Q4 2025 was a record high 3.4 million short tons, compared to 2.1 million in the same quarter of last year, representing a 61% increase. Production from our Blue Creek mine was 1.3 million tons during the fourth quarter and exceeded our expectations.

Walter Scheller: We sold 881,000 tons of Blue Creek steelmaking coal during Q4 2025, which were contractual volumes sold primarily into Asia. Our sales by geography for the fourth quarter break down as follows: 57% into Asia, 34% into Europe, and 9% into South America. Our spot volume was 6% for Q4 2025, and was 9% for the full year. Production volume in Q4 2025 was a record high 3.4 million short tons, compared to 2.1 million in the same quarter of last year, representing a 61% increase. Production from our Blue Creek mine was 1.3 million tons during the fourth quarter and exceeded our expectations.

Speaker #2: Which were contractual volumes sold primarily into Asia. Our sales by geography for the 4th Quarter breakdown as follows: 57% into Asia, 34% into Europe, and 9% into South America.

Speaker #2: Our spot volume was 6% for the 4th Quarter 2025 and was 9% for the full year. Production volume in the 4th Quarter 2025 was a record-high 3.4 million short tons compared to 2.1 million in the same quarter of last year.

Speaker #2: Representing a 61% increase. Production from our Blue Creek mine was 1.3 million tons during the fourth quarter and exceeded our expectations. Our coal inventory levels increased to 1.6 million short tons at the end of December, compared to 1.1 million tons at the end of September 2025.

Walter J. Scheller III: Our coal inventory levels increased to 1.6 million short tons at the end of December, compared to 1.1 million tons at the end of September 2025. The increase in inventory reflects the early startup of Blue Creek's longwall production. The early startup of the Blue Creek longwall was a major contributor to the higher volumes and profitability in the fourth quarter and for the full year 2025. As I noted earlier, the ramp-up of production went smoothly and has already achieved a quarterly run rate of 1.5 million short tons. However, given the expected weak market conditions for steelmaking coal in 2026, we will start the year with an expected production level of 4.5 million short tons from Blue Creek.

Walter Scheller: Our coal inventory levels increased to 1.6 million short tons at the end of December, compared to 1.1 million tons at the end of September 2025. The increase in inventory reflects the early startup of Blue Creek's longwall production. The early startup of the Blue Creek longwall was a major contributor to the higher volumes and profitability in the fourth quarter and for the full year 2025. As I noted earlier, the ramp-up of production went smoothly and has already achieved a quarterly run rate of 1.5 million short tons. However, given the expected weak market conditions for steelmaking coal in 2026, we will start the year with an expected production level of 4.5 million short tons from Blue Creek.

Speaker #2: The increase in inventory reflects the early startup of Blue Creek's longwall production. The early startup of the Blue Creek longwall was a major contributor to the higher volumes and profitability in the fourth quarter and for the full year 2025.

Speaker #2: As I noted earlier, the ramp-up of production went smoothly and has already achieved a quarterly run rate of 1.5 million short tons. However, given the expected weak market conditions for steelmaking coal in 2026, we will start the year with an expected production level of 4.5 million short tons from Blue Creek.

Speaker #2: We plan to sell the excess inventory that was built up in the fourth quarter before we ramp to a higher production level. We plan to ramp production in line with increases in contractual volumes to ensure we support pricing discipline while maximizing long-term value.

Walter J. Scheller III: We plan to sell the excess inventory that was built up in Q4 before we ramp to a higher production level. We plan to ramp production in line with increases in contractual volumes to ensure we support pricing discipline while maximizing long-term value. Financially, we dedicated another $69 million of capital expenditures in Q4 and $240 million for the full year of 2025 to the Blue Creek project. That brings the total project capital expenditures to date to $957 million. As a reminder, this is on a budget and fully paid out of cash flow without any funded debt. Our total project estimate remains unchanged, ranging from $995 million to $1.075 billion.

Walter Scheller: We plan to sell the excess inventory that was built up in Q4 before we ramp to a higher production level. We plan to ramp production in line with increases in contractual volumes to ensure we support pricing discipline while maximizing long-term value. Financially, we dedicated another $69 million of capital expenditures in Q4 and $240 million for the full year of 2025 to the Blue Creek project. That brings the total project capital expenditures to date to $957 million. As a reminder, this is on a budget and fully paid out of cash flow without any funded debt. Our total project estimate remains unchanged, ranging from $995 million to $1.075 billion.

Speaker #2: Financially, we dedicated another $69 million of capital expenditures in the 4th Quarter and $240 million for the full year 2025 to the Blue Creek project.

Speaker #2: That brings the total project capital expenditures to date to $957 million. As a reminder, this is on a budget and fully paid out of cash flow without any funded debt.

Speaker #2: Our total project estimate remains unchanged, ranging from $995 million to $1,075 million. The remaining capital to be spent on the Blue Creek project is expected to occur by the end of the 1st Quarter 2026.

Walter J. Scheller III: The remaining capital to be spent on the Blue Creek project is expected to occur by the end of Q1 2026. The remaining work is primarily related to finishing the barge loadout, finishing a third storage silo at the rail loadout, paving roads, completing storage and shop buildings, and other final project details. None of this final work should have any impact on production from the new mine. Let me take a moment to step back and summarize a few key highlights for the year 2025. First, we were able to start the Blue Creek longwall eight months ahead of schedule, remain on budget, and fund the entire project out of cash flow from operations.

Walter Scheller: The remaining capital to be spent on the Blue Creek project is expected to occur by the end of Q1 2026. The remaining work is primarily related to finishing the barge loadout, finishing a third storage silo at the rail loadout, paving roads, completing storage and shop buildings, and other final project details. None of this final work should have any impact on production from the new mine. Let me take a moment to step back and summarize a few key highlights for the year 2025. First, we were able to start the Blue Creek longwall eight months ahead of schedule, remain on budget, and fund the entire project out of cash flow from operations.

Speaker #2: The remaining work is primarily related to finishing the barge loadout, finishing a third storage silo at the rail loadout, paving roads, completing storage and shop buildings, and other final project details.

Speaker #2: None of this final work should have any impact on production from the new mine. Let me take a moment to step back and summarize a few key highlights for the year 2025.

Speaker #2: First, we were able to start the Blue Creek longwall eight months ahead of schedule, remain on budget, and fund the entire project out of cash flow from operations.

Speaker #2: Second, adding Blue Creek to our production profile adds significant scale to our operations and significantly further improves the company's first quartile cost curve position.

Walter J. Scheller III: Second, adding Blue Creek to our production profile adds significant scale to our operations and significantly further improves the company's first quartile cost curve position, which is expected to drive margin expansion in the future. Third, we were successful in strategically expanding our total reserve base by finalizing two federal coal leases to obtain 53 million short tons of additional reserves. It's also created access to other additional privately owned reserves. Fourth, while we made significant investments in Blue Creek, we managed our costs and spending to meet or exceed all of our guidance targets for 2025. I'll now ask Dale to address our fourth quarter results in greater detail.

Walter Scheller: Second, adding Blue Creek to our production profile adds significant scale to our operations and significantly further improves the company's first quartile cost curve position, which is expected to drive margin expansion in the future. Third, we were successful in strategically expanding our total reserve base by finalizing two federal coal leases to obtain 53 million short tons of additional reserves. It's also created access to other additional privately owned reserves. Fourth, while we made significant investments in Blue Creek, we managed our costs and spending to meet or exceed all of our guidance targets for 2025. I'll now ask Dale to address our fourth quarter results in greater detail.

Speaker #2: Which is expected to drive margin expansion in the future. Third, we were successful in strategically expanding our total reserve base by finalizing two federal coal leases to obtain 53 million short tons of additional reserves.

Speaker #2: This also created access to additional privately owned reserves. Fourth, while we made significant investments in Blue Creek, we managed our costs and spending to meet or exceed all of our guidance targets for 2025.

Speaker #2: I'll now ask Dale to address our 4th Quarter results in greater detail. Thanks, Walt. Our 4th Quarter results continue to the sequential improvement quarter after quarter throughout 2025.

Dale W. Boyles: Thanks, Walt. Our Q4 results continued the sequential improvement quarter after quarter throughout 2025. As Walt discussed earlier, the steelmaking coal markets continued to be pressured in the Q4 by the same factors that we have discussed over the last two years. Despite these market conditions, we continued to outperform expectations for 2025, as we met or exceeded our full year 2025 guidance targets on the back of a strong Q4, both operationally and financially. Let me first highlight our Q4 financial results compared to the Q3 of 2025. Our Q4 Adjusted EBITDA of $93 million was 31% higher than the Q3 of 2025, primarily due to the following factors.

Dale Boyles: Thanks, Walt. Our Q4 results continued the sequential improvement quarter after quarter throughout 2025. As Walt discussed earlier, the steelmaking coal markets continued to be pressured in the Q4 by the same factors that we have discussed over the last two years. Despite these market conditions, we continued to outperform expectations for 2025, as we met or exceeded our full year 2025 guidance targets on the back of a strong Q4, both operationally and financially. Let me first highlight our Q4 financial results compared to the Q3 of 2025. Our Q4 Adjusted EBITDA of $93 million was 31% higher than the Q3 of 2025, primarily due to the following factors.

Speaker #2: As Walt discussed earlier, the steelmaking coal markets continue to be pressured in the fourth quarter by the same factors that we have discussed over the last two years.

Speaker #2: Despite these market conditions, we continue to outperform expectations for 2025 as we met or exceeded our full year 2025 guidance targets on the back of a strong 4th Quarter both operationally and financially.

Speaker #2: Let me first highlight our 4th Quarter financial results compared to the 3rd Quarter of 2025. Our 4th Quarter adjusted EBITDA of $93 million was 31% higher than the 3rd Quarter of 2025, primarily due to the following factors.

Speaker #2: First, our sales volumes were 22% higher in the fourth quarter, including an increase of tons sold from Blue Creek. Second, our average net selling price was $6 per ton lower in the fourth quarter, primarily due to a higher mix of High-Vol A volume sold, and that volume was sold into the Pacific Basin on a CFR basis at elevated freight rates.

Dale W. Boyles: First, our sales volumes were 22% higher in Q4, including an increase of tons sold from Blue Creek. Second, our average net selling price was $6 per ton lower in Q4, primarily due to a higher mix of High Vol A volume sold, and that volume was sold into the Pacific Basin on a CFR basis at elevated freight rates. In addition, demurrage was temporarily higher in Q4, as Walt noted earlier. This result was offset by the increase in the average price indices quarter-over-quarter. Third, cash costs per ton were $7 lower in Q4 and were primarily attributed to Blue Creek's inherently low cost structure, which increased our cash margin per ton. And finally, operating cash flows of $76 million were $29 million lower than Q3 of 2025.

Dale Boyles: First, our sales volumes were 22% higher in Q4, including an increase of tons sold from Blue Creek. Second, our average net selling price was $6 per ton lower in Q4, primarily due to a higher mix of High Vol A volume sold, and that volume was sold into the Pacific Basin on a CFR basis at elevated freight rates. In addition, demurrage was temporarily higher in Q4, as Walt noted earlier. This result was offset by the increase in the average price indices quarter-over-quarter. Third, cash costs per ton were $7 lower in Q4 and were primarily attributed to Blue Creek's inherently low cost structure, which increased our cash margin per ton. And finally, operating cash flows of $76 million were $29 million lower than Q3 of 2025.

Speaker #2: In addition, Demurrage was temporarily higher in the 4th Quarter as Walt noted earlier. This was a result was offset by the increase in the average price indices quarter over quarter.

Speaker #2: Third, cash cost per ton were $7 lower in the 4th Quarter and were primarily attributed to Blue Creek's inherently low-cost structure which increased our cash margin per ton.

Speaker #2: And finally, operating cash flows of $76 million were 29 million lower than the 3rd Quarter of 2025. This result is attributed to the increase in working capital primarily for accounts receivable and inventory as we ramped up the Blue Creek long-wall in the 4th Quarter.

Dale W. Boyles: This result is attributed to the increase in working capital, primarily for accounts receivable and inventory, as we ramped up the Blue Creek longwall in Q4. Our spending for capital expenditures and mine development were a combined $20 million lower in Q4 compared to Q3 of 2025, primarily due to lower investments into Blue Creek. Free cash flow was about $9 million lower in Q4. Now let me compare Q4 of 2025 to the prior year Q4 results. Warrior recorded net income of $23 million, or $0.44 per diluted share, compared to net income of $1 million or $0.02 per diluted share in the same quarter of 2024....

Dale Boyles: This result is attributed to the increase in working capital, primarily for accounts receivable and inventory, as we ramped up the Blue Creek longwall in Q4. Our spending for capital expenditures and mine development were a combined $20 million lower in Q4 compared to Q3 of 2025, primarily due to lower investments into Blue Creek. Free cash flow was about $9 million lower in Q4. Now let me compare Q4 of 2025 to the prior year Q4 results. Warrior recorded net income of $23 million, or $0.44 per diluted share, compared to net income of $1 million or $0.02 per diluted share in the same quarter of 2024....

Speaker #2: Our spending for capital expenditures and mine development was a combined $20 million lower in the fourth quarter compared to the third quarter of 2025, primarily due to lower investments in Blue Creek.

Speaker #2: Free cash flow was about $9 million Quarter. Now let me compare the 4th Quarter of 2025 to the prior year 4th Quarter results. WARRIOR recorded net income of $23 million or 44 cents per diluted share compared to net income of $1 million or 2 cents per diluted share in the same quarter of 2024.

Speaker #2: We reported adjusted EBITDA of $93 million in the 4th Quarter of 2025 compared to $53 million in the same quarter of 2024, an increase of 75%.

Dale W. Boyles: We reported adjusted EBITDA of $93 million in Q4 2025, compared to $53 million in the same quarter of 2024, an increase of 75%. Our adjusted EBITDA margin grew to 24% in Q4 2025, compared to 18% in the same quarter of last year, despite the PLV index being 1.3% lower in Q4 2025. On a per ton basis, our adjusted EBITDA margin grew to $32 per short ton in Q4 2025, compared to $28 in last year's fourth quarter.

Dale Boyles: We reported adjusted EBITDA of $93 million in Q4 2025, compared to $53 million in the same quarter of 2024, an increase of 75%. Our adjusted EBITDA margin grew to 24% in Q4 2025, compared to 18% in the same quarter of last year, despite the PLV index being 1.3% lower in Q4 2025. On a per ton basis, our adjusted EBITDA margin grew to $32 per short ton in Q4 2025, compared to $28 in last year's fourth quarter.

Speaker #2: Our adjusted EBITDA margin grew to 24% in the 4th Quarter of 2025 compared to 18% in the same quarter of last year, despite the PLV index being 1.3% lower in the 4th Quarter of 2025.

Speaker #2: On a per ton basis, our adjusted EBITDA margin grew to $32 per short ton in the 4th Quarter of 2025 compared to $28 in last year's 4th Quarter.

Speaker #2: The primary drivers of these improvements came from 53% higher sales volumes, lower cash cost—including the low-cost Blue Creek tons sold—lower variable transportation and royalty cost, and tightly managing and controlling all other production costs.

Dale W. Boyles: The primary drivers of these improvements came from 53% higher sales volumes, lower cash costs, including the low-cost Blue Creek tons sold, lower variable transportation and royalty costs, and tightly managing and controlling all other production costs. These improvements were partially offset by a 16% lower average net selling price. Total revenues were $384 million in Q4 this year, compared to $297 million in the same quarter last year. The total increase of $87 million was primarily due to the 53% higher sales volumes impact of $154 million, offset by the impact of a decrease in average gross selling prices of $52 million, and a higher mix of High Vol A tons sold of $13 million.

Dale Boyles: The primary drivers of these improvements came from 53% higher sales volumes, lower cash costs, including the low-cost Blue Creek tons sold, lower variable transportation and royalty costs, and tightly managing and controlling all other production costs. These improvements were partially offset by a 16% lower average net selling price. Total revenues were $384 million in Q4 this year, compared to $297 million in the same quarter last year. The total increase of $87 million was primarily due to the 53% higher sales volumes impact of $154 million, offset by the impact of a decrease in average gross selling prices of $52 million, and a higher mix of High Vol A tons sold of $13 million.

Speaker #2: These improvements were partially offset by a 16% lower average net selling price. Total revenues were $384 million in the 4th Quarter of this year compared to $297 million in the same quarter of last year.

Speaker #2: The total increase of $87 million was primarily due to the 53% higher sales volumes, which had an impact of $154 million, offset by the impact of a decrease in average gross selling prices of $52 million and a higher mix of high-ball A tons sold of $13 million.

Speaker #2: In addition, Demurrage and other charges were $6 million higher compared to last year's 4th Quarter. This resulted in an average net selling price of $130 per short ton in the 4th Quarter of 2025 compared to $155 per ton in the 4th Quarter of last year.

Dale W. Boyles: In addition, demurrage and other charges were $6 million higher compared to last year's Q4. This resulted in an average net selling price of $130 per short ton in Q4 2025, compared to $155 per ton in the Q4 of last year. Cash Cost of Sales were $270 million, or 72% of mining revenues in the Q4 this year, compared to $226 million, or 77% of mining revenues in the Q4 of last year. Of the $44 million dollar net increase in Cash Cost of Sales, there was a $119 million dollar increase in cost, which were attributed to the 53% increase in sales volumes.

Dale Boyles: In addition, demurrage and other charges were $6 million higher compared to last year's Q4. This resulted in an average net selling price of $130 per short ton in Q4 2025, compared to $155 per ton in the Q4 of last year. Cash Cost of Sales were $270 million, or 72% of mining revenues in the Q4 this year, compared to $226 million, or 77% of mining revenues in the Q4 of last year. Of the $44 million dollar net increase in Cash Cost of Sales, there was a $119 million dollar increase in cost, which were attributed to the 53% increase in sales volumes.

Speaker #2: Cash cost of sales were $270 million, or 72% of mining revenues, in the fourth quarter of this year, compared to $226 million, or 77% of mining revenues, in the fourth quarter of last year.

Speaker #2: Of the $44 million net increase in cash cost of sales, there was a $119 million increase in costs, which were attributed to the 53% increase in sales volumes.

Speaker #2: These higher costs were offset partially by $75 million of lower costs that were driven by leverage of lower-cost Blue Creek tons sold and lower variable transportation and royalty costs on lower average steelmaking coal price indices.

Dale W. Boyles: These higher costs were offset partially by $75 million of lower costs that were driven by our leverage of lower cost Blue Creek tons sold, and lower variable transportation and royalty costs on lower average steelmaking coal price indices. In addition, we continued to rationalize and tightly manage our spending on supplies, repairs, and maintenance expenses throughout the operations to maintain our low-cost profile. Cash cost of sales per short ton at FOB port was approximately $94 in Q4 2025, compared to $120 in the same quarter last year.

Dale Boyles: These higher costs were offset partially by $75 million of lower costs that were driven by our leverage of lower cost Blue Creek tons sold, and lower variable transportation and royalty costs on lower average steelmaking coal price indices. In addition, we continued to rationalize and tightly manage our spending on supplies, repairs, and maintenance expenses throughout the operations to maintain our low-cost profile. Cash cost of sales per short ton at FOB port was approximately $94 in Q4 2025, compared to $120 in the same quarter last year.

Speaker #2: In addition, we continue to rationalize and tightly manage our spending on supplies, repairs, and maintenance expenses throughout the operations to maintain our low-cost profile.

Speaker #2: Cash cost of sales per short ton (FOB port) was approximately $94 in the 4th Quarter of 2025 compared to $120 in the same quarter last year.

Speaker #2: The 22% decrease was primarily related to lower overall spending at the legacy mines of $11 per ton due to tightly managing our overall spending; lower variable transportation and royalty cost of $5 per ton on lower steel coal prices; and $10 per ton from the incremental sales of low-cost Blue Creek tons.

Dale W. Boyles: The 22% decrease was primarily related to lower overall spending at the legacy mines of $11 per ton due to tightly managing our overall spending, lower variable transportation and royalty costs of $5 per ton on lower steelmaking coal prices, and $10 per ton from the incremental sales of low-cost Blue Creek tons. These lower costs resulted in higher cash margins per ton. Our Q4 2025 SG&A expenses were $18 million and were less than $1 million higher than the same quarter of the prior year, primarily due to higher employee-related expenses. Depreciation and depletion expenses were $56 million, which was higher than Q4 2024, primarily due to the additional assets placed in service at Blue Creek and the higher sales volumes in 2025.

Dale Boyles: The 22% decrease was primarily related to lower overall spending at the legacy mines of $11 per ton due to tightly managing our overall spending, lower variable transportation and royalty costs of $5 per ton on lower steelmaking coal prices, and $10 per ton from the incremental sales of low-cost Blue Creek tons. These lower costs resulted in higher cash margins per ton. Our Q4 2025 SG&A expenses were $18 million and were less than $1 million higher than the same quarter of the prior year, primarily due to higher employee-related expenses. Depreciation and depletion expenses were $56 million, which was higher than Q4 2024, primarily due to the additional assets placed in service at Blue Creek and the higher sales volumes in 2025.

Speaker #2: These lower costs resulted in higher cash margins per ton. Our 4th Quarter 2025 SG&A expenses were $18 million, and were less than $1 million higher than the same quarter of the prior year, primarily due to higher employee-related expenses.

Speaker #2: Depreciation and depletion expenses were $56 million, which was higher than the 4th Quarter of 2024, primarily due to the additional assets placed into service at Blue Creek and the higher sales volumes in 2025.

Speaker #2: We reported income tax expenses of approximately $13 million on pre-tax income of $36 million in the fourth quarter of 2025. Our full-year 2025 effective income tax rate varied from the statutory federal income tax rate of 21%, primarily due to tax benefits recognized for depletion expense, marginal gas well credits, and a foreign-derived intangible income deduction, which exceeded pre-tax book income.

Dale W. Boyles: We recorded income tax expense of approximately $13 million on pre-tax income of $36 million in Q4 2025. Our full year 2025 effective income tax rate varied from the statutory federal income tax rate of 21%, primarily due to tax benefits recognized for depletion expense, marginal gas well credits, and a foreign-derived intangible income deduction, which exceeded pre-tax book income, resulting in an effective income tax rate of -5% for the full year. Now, let's turn to cash flows from Q4 2025. Cash flows from operating activities were $76 million in Q4 2025, and were $22 million higher than the previous year's fourth quarter, despite Blue Creek's negative impact on working capital.

Dale Boyles: We recorded income tax expense of approximately $13 million on pre-tax income of $36 million in Q4 2025. Our full year 2025 effective income tax rate varied from the statutory federal income tax rate of 21%, primarily due to tax benefits recognized for depletion expense, marginal gas well credits, and a foreign-derived intangible income deduction, which exceeded pre-tax book income, resulting in an effective income tax rate of -5% for the full year. Now, let's turn to cash flows from Q4 2025. Cash flows from operating activities were $76 million in Q4 2025, and were $22 million higher than the previous year's fourth quarter, despite Blue Creek's negative impact on working capital.

Speaker #2: Resulting in an effective income tax rate of a negative 5% for the full year. Now let's turn to cash flows from the 4th Quarter of 2025.

Speaker #2: Cash flows from operating activities were $76 million in the fourth quarter of 2025, and were $22 million higher than the previous year's fourth quarter.

Speaker #2: Despite Blue Creek's negative impact on working capital, working capital increased by $8 million during the fourth quarter as the company ramped up production and sales volumes at Blue Creek.

Dale W. Boyles: Working capital increased by $8 million during Q4 as the company ramped up production and sales volumes at Blue Creek. Free Cash Flow was a negative $28 million, due to $76 million in operating cash flows, less cash used for capital expenditures and mine development of $104 million. Capital spending totaled $94 million, which included $69 million spent on Blue Creek, as previously noted. Mine development costs for Blue Creek in Q4 were $10 million. Now that Blue Creek longwall has started production, we do not expect to incur any mine development costs in 2026.

Dale Boyles: Working capital increased by $8 million during Q4 as the company ramped up production and sales volumes at Blue Creek. Free Cash Flow was a negative $28 million, due to $76 million in operating cash flows, less cash used for capital expenditures and mine development of $104 million. Capital spending totaled $94 million, which included $69 million spent on Blue Creek, as previously noted. Mine development costs for Blue Creek in Q4 were $10 million. Now that Blue Creek longwall has started production, we do not expect to incur any mine development costs in 2026.

Speaker #2: Free cash flow was a negative $28 million, due to $76 million in operating cash flows, less cash used for capital expenditures and mine development of $104 million.

Speaker #2: Capital spending totaled $94 million, which included $69 million spent on Blue Creek as previously noted. Mine development costs for Blue Creek in the 4th Quarter were $10 million.

Speaker #2: Now that Blue Creek Long Wall has started production, we do not expect to incur any mine development costs in 2026. While investments in Blue Creek and other development projects drove higher capital spending in 2025, the company continued to maintain strong liquidity and delivered year-over-year improvements in cost efficiency positioning WARRIOR for enhanced profitability as Blue Creek ramps toward full production.

Dale W. Boyles: While investments in Blue Creek and other development projects drove higher capital spending in 2025, the company continued to maintain strong liquidity and delivered year-over-year improvements in cost efficiency, positioning Warrior for enhanced profitability as Blue Creek ramps toward full production. Our total available liquidity at the end of Q4 this year was $484 million, and consisted of cash and cash equivalents of $300 million, short-term investments of $43 million, and $141 million available under our ABL facility. Finally, let me turn to our current outlook and guidance for the full year 2026, as detailed in our earnings release. We expect steelmaking coal markets to remain generally consistent with 2025 levels.

Dale Boyles: While investments in Blue Creek and other development projects drove higher capital spending in 2025, the company continued to maintain strong liquidity and delivered year-over-year improvements in cost efficiency, positioning Warrior for enhanced profitability as Blue Creek ramps toward full production. Our total available liquidity at the end of Q4 this year was $484 million, and consisted of cash and cash equivalents of $300 million, short-term investments of $43 million, and $141 million available under our ABL facility. Finally, let me turn to our current outlook and guidance for the full year 2026, as detailed in our earnings release. We expect steelmaking coal markets to remain generally consistent with 2025 levels.

Speaker #2: Our total available liquidity at the end of the fourth quarter this year was $484 million, and consisted of cash and cash equivalents of $300 million, short-term investments of $43 million, and $141 million available under our ABL facility.

Speaker #2: And finally, let me turn to our current outlook and guidance for the full year 2026 as detailed in our earnings release. We expect steelmaking coal markets to remain generally consistent with 2025 levels.

Speaker #2: However, we entered 2026 from a position of significant strength, with higher contracted volumes, record production capacity, and a structurally lower cost base driven by Blue Creek.

Dale W. Boyles: However, we entered 2026 from a position of significant strength, with higher contracted volumes, record production capacity, and a structurally lower cost base driven by Blue Creek. While the assumption that prices will remain consistent with 2025 may seem conservative, given the recent rally in index pricing, we believe the recent global mining production disruption and inclement weather events may be temporary, and we expect PLV prices may revert downward following the remediation of these disruptions. We anticipate total sales and production volumes to be significantly higher in 2026 than 2025 as a result of starting the Blue Creek longwall eight months early and reaching new record-high output levels. Overall, company contracted volume for 2026 is approximately 90% of total sales volume.

Dale Boyles: However, we entered 2026 from a position of significant strength, with higher contracted volumes, record production capacity, and a structurally lower cost base driven by Blue Creek. While the assumption that prices will remain consistent with 2025 may seem conservative, given the recent rally in index pricing, we believe the recent global mining production disruption and inclement weather events may be temporary, and we expect PLV prices may revert downward following the remediation of these disruptions. We anticipate total sales and production volumes to be significantly higher in 2026 than 2025 as a result of starting the Blue Creek longwall eight months early and reaching new record-high output levels. Overall, company contracted volume for 2026 is approximately 90% of total sales volume.

Speaker #2: While the assumption that prices will remain consistent with 2025 may seem conservative given the recent rally in index pricing, we believe the recent global mining production disruption and inclement weather events may be temporary, and we expect POV prices may revert downward following the remediation of these disruptions.

Speaker #2: We anticipate total sales and production volumes to be significantly higher in 2026 than 2025 as a result of starting the Blue Creek Long Wall eight months early and reaching new record high output levels.

Speaker #2: Overall, company contracted volume for 2026 is approximately 90% of total sales volume. Our sales volume guidance is approximately half a million tons higher than our production volume to reduce our inventory levels to our optimal target level of just below one million short tons.

Dale W. Boyles: Our sales volume guidance is approximately 500,000 tons higher than our production volume to reduce our inventory levels to our optimal target level of just below 1 million short tons. Lastly, we expect to spend the remaining construction CapEx of $50 to 75 million on the Blue Creek project in Q1 2026. From a free cash flow perspective, we expect the first half of 2026 to be free cash flow negative due to the ramp-up of sales and production at Blue Creek, increasing our working capital, and spending the remaining project capital expenditures in the first quarter. We expect to be free cash flow positive in the second half of the year. Obviously, these expectations are highly dependent upon the steelmaking coal markets and actual pricing indices.

Dale Boyles: Our sales volume guidance is approximately 500,000 tons higher than our production volume to reduce our inventory levels to our optimal target level of just below 1 million short tons. Lastly, we expect to spend the remaining construction CapEx of $50 to 75 million on the Blue Creek project in Q1 2026. From a free cash flow perspective, we expect the first half of 2026 to be free cash flow negative due to the ramp-up of sales and production at Blue Creek, increasing our working capital, and spending the remaining project capital expenditures in the first quarter. We expect to be free cash flow positive in the second half of the year. Obviously, these expectations are highly dependent upon the steelmaking coal markets and actual pricing indices.

Speaker #2: And lastly, we expect to spend the remaining construction capex of $50 to $75 million on the Blue Creek project in the first quarter of 2026.

Speaker #2: From our free cash flow perspective, we expect the first half of 2026 to be free cash flow negative, due to the ramp-up of sales and production at Blue Creek.

Speaker #2: Increasing our working capital, and spending the remaining project capital expenditures in the first quarter. We expect to be free cash flow positive in the second half of the year.

Speaker #2: Obviously, these expectations are highly dependent upon the steelmaking coal markets and actual pricing indices. I will now turn it back to Wall for his final comments.

Dale W. Boyles: I will now turn it back to Walt for his final comments.

Dale Boyles: I will now turn it back to Walt for his final comments.

Speaker #1: Thanks, Dale. WARRIOR’s exceptionally well positioned to deliver higher free cash flow and long-term value creation. We expect 2026 sales volumes to be more than 30% higher than 2025, and production volumes to be more than 20% higher than 2025, driven by the contribution of the new Blue Creek mine over the entire year.

Walter J. Scheller III: Thanks, Dale. Warrior is exceptionally well positioned to deliver higher free cash flow and long-term value creation. We expect 2026 sales volumes to be more than 30% higher than 2025, and production volumes to be more than 20% higher than 2025, driven by the contribution of the new Blue Creek mine over the entire year. We expect to reduce our coal inventory levels to just below 1 million tons, which has been reflected on our sales volume guidance. In addition, we've included approximately 4.5 million tons of production from our Blue Creek mine, which could potentially be higher if we continue to be successful with the trial shipment and engage in more long-term contracts with customers.

Walter Scheller: Thanks, Dale. Warrior is exceptionally well positioned to deliver higher free cash flow and long-term value creation. We expect 2026 sales volumes to be more than 30% higher than 2025, and production volumes to be more than 20% higher than 2025, driven by the contribution of the new Blue Creek mine over the entire year. We expect to reduce our coal inventory levels to just below 1 million tons, which has been reflected on our sales volume guidance. In addition, we've included approximately 4.5 million tons of production from our Blue Creek mine, which could potentially be higher if we continue to be successful with the trial shipment and engage in more long-term contracts with customers.

Speaker #1: We expect to reduce our coal inventory levels to just below one million tons, which has been reflected in our sales volume guidance. In addition, we've included approximately 4.5 million tons of production from our Blue Creek mine, which could potentially be higher if we continue to be successful with the trial shipment and engage more long-term contracts with customers.

Speaker #1: Currently, we have 90% of our 2026 midpoint sales volume under contract. Including 85% of the Blue Creek volume. As we look at current steelmaking coal market conditions, pricing levels remain notably strong and well above our original expectations.

Walter J. Scheller III: Currently, we have 90% of our 2026 midpoint sales volume under contract, including 85% of the Blue Creek volume. As we look at the current steelmaking coal market conditions, pricing levels remain notably strong and well above our original expectations. We believe this elevated pricing environment is primarily due to tightness in the premium quality segment as a result of recent supply constraints stemming from Australian weather disruptions and mine production-related challenges in Australia. While it's difficult to predict how quickly supply chains will normalize, we anticipate that prices will remain supported through most of Q1. However, we believe these disruptions are temporary, and unless global steel fundamentals significantly improve, PLV prices should retreat and continue to be impacted by the same market factors that we've seen over the last two years.

Walter Scheller: Currently, we have 90% of our 2026 midpoint sales volume under contract, including 85% of the Blue Creek volume. As we look at the current steelmaking coal market conditions, pricing levels remain notably strong and well above our original expectations. We believe this elevated pricing environment is primarily due to tightness in the premium quality segment as a result of recent supply constraints stemming from Australian weather disruptions and mine production-related challenges in Australia. While it's difficult to predict how quickly supply chains will normalize, we anticipate that prices will remain supported through most of Q1. However, we believe these disruptions are temporary, and unless global steel fundamentals significantly improve, PLV prices should retreat and continue to be impacted by the same market factors that we've seen over the last two years.

Speaker #1: We believe this elevated pricing environment is primarily due to tightness in the premium quality segment, as a result of recent supply constraints stemming from Australian weather disruptions and mine production-related challenges in Australia.

Speaker #1: While it's difficult to predict how quickly supply chains will normalize, we anticipate that prices will remain supported through most of the first quarter. However, we believe these disruptions are temporary, and unless global steel fundamentals significantly improve, POV prices should retreat and continue to be impacted by the same market factors that we've seen over the last two years.

Speaker #1: As a result of the recent increase in POV price, the East Coast High Ball A price has become disconnected from the Pacific Basin indices and may weigh down overall gross price realizations due to the abundant supply of that quality of coal.

Walter J. Scheller III: As a result of the recent increase in PLV price, the East Coast High Vol A price has become disconnected from the Pacific Basin indices and may weigh down overall gross price realization due to the abundant supply of that quality of coal. While we have lots of cautious optimism, we run our company to prepare for the downside risk of weak steelmaking coal markets and hope we're conservative on our price assumptions, as Dale just noted in his comments. In conclusion, 2025 marked a transformational year for Warrior. The early startup of Blue Creek and the strategic expansion of our reserve base have strengthened the foundation of our long-term growth strategy and significantly enhanced our ability to meet sustained global demand for premium steelmaking coal.

Walter Scheller: As a result of the recent increase in PLV price, the East Coast High Vol A price has become disconnected from the Pacific Basin indices and may weigh down overall gross price realization due to the abundant supply of that quality of coal. While we have lots of cautious optimism, we run our company to prepare for the downside risk of weak steelmaking coal markets and hope we're conservative on our price assumptions, as Dale just noted in his comments. In conclusion, 2025 marked a transformational year for Warrior. The early startup of Blue Creek and the strategic expansion of our reserve base have strengthened the foundation of our long-term growth strategy and significantly enhanced our ability to meet sustained global demand for premium steelmaking coal.

Speaker #1: While we have lots of cost optimism, we run our company to prepare for the downside risk of weak steelmaking coal markets and hope we're conservative on our price assumptions as Dale just noted in his comments.

Speaker #1: In conclusion, 2025 marked a transformational year for Warrior. The early startup of Blue Creek and the strategic expansion of our reserve base have strengthened the foundation of our long-term growth strategy and significantly enhanced our ability to meet sustained global demand for premium steelmaking coal.

Speaker #1: With Blue Creek now contributing meaningfully to our scale and cost structure, we enter 2026 from a position of exceptional strength. Supported by expected record volumes, a stronger first-quartile cost platform, disciplined capital allocation, and a clear pathway to higher free cash flow generation.

Walter J. Scheller III: With Blue Creek now contributing meaningfully to our scale and cost structure, we enter 2026 from a position of exceptional strength, supported by expected record volumes, a stronger first quartile cost platform, disciplined capital allocation, and a clear pathway to higher Free Cash Flow generation. Our world-class assets, operational excellence, and commitment to long-term value creation positions Warrior to deliver stronger financial results and increase stockholder returns as we move forward. We appreciate your continued support and look forward to updating you on our progress throughout the year. With that, we'd like to open the call for questions. Operator?

Walter Scheller: With Blue Creek now contributing meaningfully to our scale and cost structure, we enter 2026 from a position of exceptional strength, supported by expected record volumes, a stronger first quartile cost platform, disciplined capital allocation, and a clear pathway to higher Free Cash Flow generation. Our world-class assets, operational excellence, and commitment to long-term value creation positions Warrior to deliver stronger financial results and increase stockholder returns as we move forward. We appreciate your continued support and look forward to updating you on our progress throughout the year. With that, we'd like to open the call for questions. Operator?

Speaker #1: Our world-class assets, operational excellence, and commitment to long-term value creation position WARRIOR to deliver stronger financial results and increased stockholder returns as we move forward.

Speaker #1: We appreciate your continued support and look forward to updating you on our progress throughout the year. With that, we'd like to open the call for questions.

Speaker #1: Operator?

Speaker #2: Thank you. At this time, I would like to remind everyone that to ask a question, please press the star, then the number one button on your telephone keypad.

Dale W. Boyles: Thank you. At this time, I would like to remind everyone that to ask a question, please press the star, then the number one button on your telephone keypad.

Operator: Thank you. At this time, I would like to remind everyone that to ask a question, please press the star, then the number one button on your telephone keypad.

Speaker #2: If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press the star, then number two button.

Operator: ... If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press the star, then number two button. We will now pause just a moment to compile the Q&A roster. And your first question today comes from the line of Nick Giles with B. Riley. Please proceed.

Operator: ... If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press the star, then number two button. We will now pause just a moment to compile the Q&A roster. And your first question today comes from the line of Nick Giles with B. Riley. Please proceed.

Speaker #2: We will now pause just a moment to compile the Q&A roster. And your first question today comes from the line of Nick Giles with B.

Speaker #2: Reilly. Please proceed.

Speaker #3: Thanks, Operator. Good evening, guys, and congrats on the continued progress. You've come out with some really robust guidance here in 2026, and costs are being guided to a range of 95 to 110, fairly wide but just my first question was, what's the POV price assumption you're using?

Lucas Pipes: Thanks, operator. Good evening, guys, and congrats on the continued progress. You know, you've come out with some really robust guidance here in 2026, and costs are being guided to a range of $95 to 110. Fairly wide, but you know, just my first question was, what's the POV price assumption you're using? And then, given that costs in Q4 came in below the low end of this range, I mean, what would prevent you know, that level of cost being repeated in the first half year? Thanks very much.

Nick Giles: Thanks, operator. Good evening, guys, and congrats on the continued progress. You know, you've come out with some really robust guidance here in 2026, and costs are being guided to a range of $95 to 110. Fairly wide, but you know, just my first question was, what's the POV price assumption you're using? And then, given that costs in Q4 came in below the low end of this range, I mean, what would prevent you know, that level of cost being repeated in the first half year? Thanks very much.

Speaker #3: And then given that costs in the fourth quarter came in below the low end of this range, I mean, what would prevent that level of costs being repeated in the first half year?

Speaker #3: Thanks very much.

Speaker #1: Thanks, Nick. Good question. The POV assumption there is a range of 185 to 215. So, it's a little wider, just thinking about the potential increases related to transportation and royalties with the elevated pricing here early in the year.

Dale W. Boyles: Thanks, Nick. Good question. The POV assumption there is a range of $185 to 215, so it's a little wider just, you know, thinking about the potential increases related to transportation and royalties with the elevated pricing here early in the year. Uncertain as to how long they'll continue throughout 2026, but we do expect the POV prices to come back down. On the cost side, good question there. You know, strong cost performance from the existing mines in Blue Creek. What's gonna keep it that low would be prices staying this low, right? Because if we have elevated pricing, which we will have in Q1, it appears, then obviously our transportation royalty costs go up. So the cash cost of production should be fairly steady, but transportation and royalties would be higher.

Dale Boyles: Thanks, Nick. Good question. The POV assumption there is a range of $185 to 215, so it's a little wider just, you know, thinking about the potential increases related to transportation and royalties with the elevated pricing here early in the year. Uncertain as to how long they'll continue throughout 2026, but we do expect the POV prices to come back down. On the cost side, good question there. You know, strong cost performance from the existing mines in Blue Creek. What's gonna keep it that low would be prices staying this low, right? Because if we have elevated pricing, which we will have in Q1, it appears, then obviously our transportation royalty costs go up. So the cash cost of production should be fairly steady, but transportation and royalties would be higher.

Speaker #1: Uncertain as to how long that will continue. Throughout '26, but we do expect the POV prices to come back down. On the cost side, good question there.

Speaker #1: Strong cost performance from the existing mines in Blue Creek. What's going to keep it that low would be prices staying this low, right? Because if we have elevated pricing, which we will have in the first quarter, it appears, then obviously our transportation royalty costs go up.

Speaker #1: So the cash cost of production should be fairly steady, but transportation royalties would be higher.

Speaker #3: Got it. No, I appreciate that detail, Dale. Just to confirm, you said 185 to 215. That's on a short-term basis, correct?

Lucas Pipes: Got it. No, appreciate that detail, Dale. Just to confirm, you said 185 to 215. That's on a short-term basis, correct?

Nick Giles: Got it. No, appreciate that detail, Dale. Just to confirm, you said 185 to 215. That's on a short-term basis, correct?

Speaker #1: Correct.

Dale W. Boyles: Correct.

Dale Boyles: Correct.

Speaker #3: Okay, great, thanks. Second one was—I think you alluded to some of this in your prepared remarks—but how should we be thinking about working capital over the course of 2026?

Lucas Pipes: Okay, great. Thanks. Second one was, you know, I think you alluded to some of this in your prepared remarks, but, you know, how should we be thinking about working capital over the course of 2026? Is it fair to assume you'll build kind of early in the year here? And then same thing on the tax side. I think you had a tax benefit in 2025, but, you know, what should we be penciling in for cash taxes in 2026?

Nick Giles: Okay, great. Thanks. Second one was, you know, I think you alluded to some of this in your prepared remarks, but, you know, how should we be thinking about working capital over the course of 2026? Is it fair to assume you'll build kind of early in the year here? And then same thing on the tax side. I think you had a tax benefit in 2025, but, you know, what should we be penciling in for cash taxes in 2026?

Speaker #3: Is it fair to assume you'll build kind of early in the year here? And then same thing on the tax side. I think you had a tax benefit in 2025, but what should we be penciling in for cash taxes in 2026?

Dale W. Boyles: On the working capital, it's definitely the ramp up of accounts receivable and inventory, because we'll be selling more of the Blue Creek tons this year. So expect that, but as we said in our prepared remarks, too, we're gonna try to take our overall inventories down 500,000 tons. That's probably gonna come more evenly over the year. So the first half, the first quarter will weigh heavily on working capital, and we should get a little relief in the second quarter, definitely in the second half of the year. From a tax standpoint, that really depends on pricing. And you know that the 45X credit kicks in in 2026, and we've said that's about a $40 million benefit to Warrior.

Speaker #1: On the working capital side, definitely the ramp-up of accounts receivable and inventory because we'll be selling more of the Blue Creek tons this year.

Dale Boyles: On the working capital, it's definitely the ramp up of accounts receivable and inventory, because we'll be selling more of the Blue Creek tons this year. So expect that, but as we said in our prepared remarks, too, we're gonna try to take our overall inventories down 500,000 tons. That's probably gonna come more evenly over the year. So the first half, the first quarter will weigh heavily on working capital, and we should get a little relief in the second quarter, definitely in the second half of the year. From a tax standpoint, that really depends on pricing. And you know that the 45X credit kicks in in 2026, and we've said that's about a $40 million benefit to Warrior.

Speaker #1: So expect that, but as we said in our prepared remarks too, we're going to try to take our overall inventories down a half million tons.

Speaker #1: That's probably going to come more evenly over the year. So the first half, the first quarter will weigh heavily on working capital. And we should get a little relief in the second quarter, but definitely in the second half of the year.

Speaker #1: From a tax standpoint, that really depends on pricing. And you know that the 45X credit kicks in in 2026, and we've said that's about a $40 million benefit to Warrior.

Speaker #1: So with these price assumptions, I would say we might not be a cash taxpayer in '26. If will be. But just not a large amount, I don't think.

Dale W. Boyles: So, you know, with these price assumptions, I, I would say we might not be a cash taxpayer in 2026. If prices, you know, stay at a higher level, we, we will be, but just not a large amount, I don't think.

Dale Boyles: So, you know, with these price assumptions, I, I would say we might not be a cash taxpayer in 2026. If prices, you know, stay at a higher level, we, we will be, but just not a large amount, I don't think.

Speaker #3: Got it. Really helpful. One last one, if I could. You've been really successful in adding some federal leases here. In the recent months, and I think you made there was one more tranche since we last spoke.

Lucas Pipes: Got it. Really helpful. One last one, if I could. You know, you've been really successful in adding some federal leases here in the recent months. I think there was one more tranche since we last spoke, and so I was just wondering if you could remind us what those payments look like. I think they're spread out over a number of years.

Nick Giles: Got it. Really helpful. One last one, if I could. You know, you've been really successful in adding some federal leases here in the recent months. I think there was one more tranche since we last spoke, and so I was just wondering if you could remind us what those payments look like. I think they're spread out over a number of years.

Speaker #3: And so I was just wondering if you could remind us what those payments look like. I think they're spread out over a number of years.

Speaker #1: Yeah, that's right. Total, it's four years. And they're about $9 million a year. So it's there's the four payments left.

Dale W. Boyles: Yeah, that's right. Total, it's 4 years, and they're about $9 million a year. So, there's the 4 payments left.

Dale Boyles: Yeah, that's right. Total, it's 4 years, and they're about $9 million a year. So, there's the 4 payments left.

Speaker #3: And that would be reflected in the guide or outside the scope of the guidance?

Lucas Pipes: And that would be reflected in the guide or outside the scope of the guidance?

Nick Giles: And that would be reflected in the guide or outside the scope of the guidance?

Dale W. Boyles: That's all in there.

Speaker #1: That's all in there.

Dale Boyles: That's all in there.

Speaker #3: Got it. Okay. Well, guys, I really appreciate all the detail. I'll turn it over for now, but continue best of luck.

Lucas Pipes: Got it. Okay. Well, guys, I really appreciate all the detail. I'll turn it over for now, but continued best of luck.

Nick Giles: Got it. Okay. Well, guys, I really appreciate all the detail. I'll turn it over for now, but continued best of luck.

Speaker #1: Thanks.

Dale W. Boyles: Thanks.

Dale Boyles: Thanks.

Speaker #2: And the next question is from George Eady with UBS. Please proceed.

Operator: The next question is from George Edi with UBS. Please proceed.

Operator: The next question is from George Edi with UBS. Please proceed.

Speaker #4: Yeah, good day, gents. Can I just go back to guidance again? I mean, you came in 600,000 tons above original production or sales for '25.

Curt Woodworth: Yeah, good day, gents. Can I just go back to guidance again? I mean, you came in 600,000 tons above original production or sales for 2025 and $20 a ton above the original midpoint on cost. These cash cost numbers, even on my estimates, and putting in that POV range, you said, still seem very conservative. I mean, can you talk through, maybe how you came there still year on year? Like, I struggle to see even running, 195 POV a short ton, how you can sort of not be looking for beat guidance again? Thanks.

George Eadie: Yeah, good day, gents. Can I just go back to guidance again? I mean, you came in 600,000 tons above original production or sales for 2025 and $20 a ton above the original midpoint on cost. These cash cost numbers, even on my estimates, and putting in that POV range, you said, still seem very conservative. I mean, can you talk through, maybe how you came there still year on year? Like, I struggle to see even running, 195 POV a short ton, how you can sort of not be looking for beat guidance again? Thanks.

Speaker #4: And $20 a ton above the original midpoint on cost. These cash cost numbers, even on my estimates and putting in that POV range, you said still seem very conservative.

Speaker #4: I mean, can you talk through maybe how you came there? Still year-on-year like I struggle to see even running 195 POV a short time.

Speaker #4: How can you sort of not be looking to beat guidance again? Thanks.

Speaker #1: Okay, George. Yeah, I mean, we built into the guidance just some conservatives. I mean, we said in our comments here, and hope you're wrong on the price assumptions.

Dale W. Boyles: Okay, George. Yeah, I mean, we built into the guidance, you know, just some conservatism, and we said in our comments here, and hope we're wrong on the price assumptions. So, specifically, I'm not really sure what you're targeting other than, you know, we tried to match the cost guidance with kind of where prices might be for the year in that range, but you may have some of that early in the year, and if they do downward, you would have some impact. Now, one of the things you have to remember, that was a POV assumption, and if you looked at the relativities of the low vol's HCC to the PLV, that was about 85%, and here in Q4, Q1, it's been running about 80%. So very similar to what we've seen in 2025.

Dale Boyles: Okay, George. Yeah, I mean, we built into the guidance, you know, just some conservatism, and we said in our comments here, and hope we're wrong on the price assumptions. So, specifically, I'm not really sure what you're targeting other than, you know, we tried to match the cost guidance with kind of where prices might be for the year in that range, but you may have some of that early in the year, and if they do downward, you would have some impact. Now, one of the things you have to remember, that was a POV assumption, and if you looked at the relativities of the low vol's HCC to the PLV, that was about 85%, and here in Q4, Q1, it's been running about 80%. So very similar to what we've seen in 2025.

Speaker #1: So specifically, I'm not really sure what you're targeting other than we tried to match the cost guidance with kind of where prices might be for the year, in that range.

Speaker #1: But you may have some of that early in the year, and if they do repeat that downward, you would have some impact. Now, one of the things you have to remember is that was a POV assumption.

Speaker #1: And if you looked at the relativities of the low vault HCC to the POV, that was about 85%. And here in the first quarter, it's been running about 80%.

Speaker #1: So very similar to what we've seen in '25. On the flip side, though, the US East Coast index is running at about a 65% relativity.

Dale W. Boyles: On the flip side, though, the US East Coast Index is running at about 65% relativity. So anything we sell into the Atlantic is gonna have, you know, some margin offset there because of that. So, those are some of the factors, you know, that we just tried to consider here and be conservative on, because we don't know why the trend on the East Coast High Vol A Index is so, disconnected from the other indexes. So, you know, just trying to, you know, think about how that might trend the rest of this year.

Dale Boyles: On the flip side, though, the US East Coast Index is running at about 65% relativity. So anything we sell into the Atlantic is gonna have, you know, some margin offset there because of that. So, those are some of the factors, you know, that we just tried to consider here and be conservative on, because we don't know why the trend on the East Coast High Vol A Index is so, disconnected from the other indexes. So, you know, just trying to, you know, think about how that might trend the rest of this year.

Speaker #1: So anything we sell into the Atlantic is going to have some margin offset there because of that. So those are some of the factors that we just tried to consider here and be conservative on, because we don't know why the trend on the East Coast high-vol A index is so disconnected from the other indexes.

Speaker #1: So just trying to think about how that might trend the rest of this year.

Speaker #4: Yep. Okay. No, thanks, Dale. And just your comment earlier about being free cash flow positive in the second half—I mean, so that comment from working capital before, if I assume a sort of net neutral working cap position in second quarter, it's hard to not see you free cash flow positive in the second quarter.

Curt Woodworth: Yep. Okay, no, thanks, Dale. Just your comment earlier about being free cash flow positive in the second half. I mean, to the comment from working capital before, if I assume a sort of net neutral working cap position in Q2, it's hard to not see your free cash flow positive in the Q2. Obviously, it depends on prices as well. But is it, is it a quite good chance, even if sort of prices trending a bit lower, we could see a lot of free cash in second half, in Q2, so?

George Eadie: Yep. Okay, no, thanks, Dale. Just your comment earlier about being free cash flow positive in the second half. I mean, to the comment from working capital before, if I assume a sort of net neutral working cap position in Q2, it's hard to not see your free cash flow positive in the Q2. Obviously, it depends on prices as well. But is it, is it a quite good chance, even if sort of prices trending a bit lower, we could see a lot of free cash in second half, in Q2, so?

Speaker #4: Obviously, it depends on prices as well. But is it a quite good chance, even at sort of prices trending a bit lower, we could see a lot of free cash in second half and second quarter, sorry?

Speaker #1: Yeah, I think we could, given where the prices have been recently. If they stay that way in the first quarter, we could see the second quarter break even.

Dale W. Boyles: Yeah, I think we could, given where the prices have been recently. If they stay that way in Q1, we could see, you know, we could see Q2 break even. But, you know, still too early to tell there. But I do think the second half, we will be generating a lot of cash.

Dale Boyles: Yeah, I think we could, given where the prices have been recently. If they stay that way in Q1, we could see, you know, we could see Q2 break even. But, you know, still too early to tell there. But I do think the second half, we will be generating a lot of cash.

Speaker #1: But still too early to tell there. But I do think the second half, we will be generating a lot of cash.

Speaker #4: Yeah. And just on that, Dale, so cash 300 million, is that still a nice minimum buffer? And should we start thinking from second half all that cash growth gets given back to shareholders?

Curt Woodworth: Yeah, and just on that, Dale, so cash, $300 million, is that still a nice minimum buffer? And should we start thinking from second half, all that cash growth gets given back to shareholders? And can you remind us how to think about returns from the second half, or should all of it come back out the door? Or if not, why not?

George Eadie: Yeah, and just on that, Dale, so cash, $300 million, is that still a nice minimum buffer? And should we start thinking from second half, all that cash growth gets given back to shareholders? And can you remind us how to think about returns from the second half, or should all of it come back out the door? Or if not, why not?

Speaker #4: And can you remind us how to think about returns from the second half? Should all of it come back out the door, or, if not, why not?

Speaker #1: Well, I think our cash level right now at 300 million, plus the investments, I guess it's about 342. So that's about where we want to see it on a long-term basis, maybe slightly higher.

Dale W. Boyles: Well, I think our cash level right now at $300 million is, plus the investments, I guess, is about $342 million. So, that's about where we want to see it on a long-term basis, maybe slightly higher. So we might build some cash, just a little bit there. But I do expect us to start returning cash to shareholders in the near future. Now, is that this year, in the second half? It's dependent on pricing, but I would expect that, you know, we would start returning that cash. Now, in what forms? You know, I think what we've said and been pretty consistent about, we think that'll be through a higher fixed quarterly dividend, because we're gonna be a significantly larger company with all the volume increases.

Dale Boyles: Well, I think our cash level right now at $300 million is, plus the investments, I guess, is about $342 million. So, that's about where we want to see it on a long-term basis, maybe slightly higher. So we might build some cash, just a little bit there. But I do expect us to start returning cash to shareholders in the near future. Now, is that this year, in the second half? It's dependent on pricing, but I would expect that, you know, we would start returning that cash. Now, in what forms? You know, I think what we've said and been pretty consistent about, we think that'll be through a higher fixed quarterly dividend, because we're gonna be a significantly larger company with all the volume increases.

Speaker #1: So, we might build some cash—just a little bit there. But I do expect this to start returning cash to shareholders in the near future.

Speaker #1: Now, is that this year in the second half? It's dependent on pricing. But I would expect that we would start returning that cash. Now, in what forms I think what we've said and been pretty consistent about, we think that'll be through a higher fixed quarterly dividend because we're going to be a significantly larger company.

Speaker #1: With all the volume increases, and then we would supplement that with some special cash dividends, and maybe some selected stock buybacks to take advantage of opportunities.

Dale W. Boyles: Then we would supplement that with some special cash dividends and maybe some selected stock buybacks to take advantage of opportunities there. I think, you know, we would see a combination of those forms.

Dale Boyles: Then we would supplement that with some special cash dividends and maybe some selected stock buybacks to take advantage of opportunities there. I think, you know, we would see a combination of those forms.

Speaker #1: So I think we would see it in a combination of those forms.

Speaker #4: Got it. So just on that, Dale, like share prices below 86, today, I think you and I both think that's cheap. Why not stuck on now with the buyback and getting ahead of that before the stock gets more expensive?

Curt Woodworth: All right. So just on that, Dale, like, share price is below $86 today. Like, I think you and I both think that's cheap. Like, why not start going now with the buyback and getting ahead of that before the stock gets more expensive? You know, I think you think also the shares are probably gonna get higher. Like, why not go early on the buyback?

George Eadie: All right. So just on that, Dale, like, share price is below $86 today. Like, I think you and I both think that's cheap. Like, why not start going now with the buyback and getting ahead of that before the stock gets more expensive? You know, I think you think also the shares are probably gonna get higher. Like, why not go early on the buyback?

Speaker #4: I mean, I think you think also the shares are probably going to get higher. Why not go early on the buyback?

Speaker #1: Well, it's a possibility. I'm not going to commit to a particular stock price. We'll just have to look at what are the cash needs of the business at the time and what's the best distribution or the best way to distribute that cash to shareholders.

Dale W. Boyles: Well, it's a possibility. I'm not going to commit to a particular stock price. We'll just have to look at what are the cash needs of the business at the time and what's the best distribution, or the best way to distribute that cash to shareholders.

Dale Boyles: Well, it's a possibility. I'm not going to commit to a particular stock price. We'll just have to look at what are the cash needs of the business at the time and what's the best distribution, or the best way to distribute that cash to shareholders.

Speaker #4: Good. Thanks, Dale. Thanks, Walt.

Curt Woodworth: Thanks. Thanks, Dale. Thanks a lot.

George Eadie: Thanks. Thanks, Dale. Thanks a lot.

Speaker #1: Thanks.

Dale W. Boyles: Thanks.

Dale Boyles: Thanks.

Speaker #2: And the next question is from Katya Jansic with BMO Capital Markets. Please proceed.

Operator: The next question is from Katja Jancic with BMO Capital Markets. Please proceed.

Operator: The next question is from Katja Jancic with BMO Capital Markets. Please proceed.

Speaker #5: Hi. Thank you for taking my questions. You mentioned earlier that there's a big disconnect, right, between high-vol A and the POV markets. With more high-vol A volume coming to the market over the next year, is there a risk that this disconnect could actually at least stay or even potentially become wider?

Operator: Hi. Thank you for taking my questions. You mentioned earlier that there's a big disconnect, right, between High Vol A and the PLV markets. With more High Vol A volume coming to the market over next year, is there a risk that this disconnect could actually at least stay or even potentially become wider?

Katja Jancic: Hi. Thank you for taking my questions. You mentioned earlier that there's a big disconnect, right, between High Vol A and the PLV markets. With more High Vol A volume coming to the market over next year, is there a risk that this disconnect could actually at least stay or even potentially become wider?

Speaker #1: Well, I think you're right. I think it will stay, for a while. When we look at the tons that have been brought into the market with MedInvest bringing their mine back online, Lear South coming back online, and Blue Creek coming online, that's quite a few tons that need to be absorbed.

Walter J. Scheller III: So I think you're right. I think it will stay for a while. You know, when we look at the tons that have been brought into the market with Metinvest bringing their mine back online, Lear South coming back online, and Blue Creek coming online, that's quite a few tons that need to be absorbed. That's gonna take some time. So I think that we're probably looking at a market that's fully supplied for the time being. I think that will get absorbed, and just over what time it takes for that to happen, I'm not quite sure. But I think given some of the things that are where growth is occurring, I think those tons will get absorbed, and we'll get back to a more balanced market.

Walter Scheller: So I think you're right. I think it will stay for a while. You know, when we look at the tons that have been brought into the market with Metinvest bringing their mine back online, Lear South coming back online, and Blue Creek coming online, that's quite a few tons that need to be absorbed. That's gonna take some time. So I think that we're probably looking at a market that's fully supplied for the time being. I think that will get absorbed, and just over what time it takes for that to happen, I'm not quite sure. But I think given some of the things that are where growth is occurring, I think those tons will get absorbed, and we'll get back to a more balanced market.

Speaker #1: That's going to take some time. So I think that we're probably looking at a market that's fully supplied for the time being. I think that we'll get absorbed in just over what time it takes for that to happen.

Speaker #1: I'm not quite sure, but I think given some of the things that are where growth is occurring, I think those tons will get absorbed and we'll get back to a more balanced market.

Speaker #5: And then maybe I missed this, but Dale, you talked about working capital built in the first half. How much of a build could we see?

Operator: Then maybe I missed this, but Dale, you talked about working capital build in the first half. How much of a build could we see?

Katja Jancic: Then maybe I missed this, but Dale, you talked about working capital build in the first half. How much of a build could we see?

Speaker #1: Well, really, it depends on the prices, Katya, because, right, that influences our receivables quite a bit. And how quickly can we bring down our inventories?

Dale W. Boyles: Well, really, it depends on the prices, Katja, because, right, that influences our receivables quite a bit, and how quickly we can bring down our inventories. But it, you know, it could be upwards of $50 million or better in the first half.

Dale Boyles: Well, really, it depends on the prices, Katja, because, right, that influences our receivables quite a bit, and how quickly we can bring down our inventories. But it, you know, it could be upwards of $50 million or better in the first half.

Speaker #1: But it could be upwards of 50 million, or better. In the first half.

Speaker #5: Okay. Thank you.

Operator: Okay, thank you.

Katja Jancic: Okay, thank you.

Speaker #2: And the next question comes from Chris Lafamina with Jefferies. Please proceed.

Operator: The next question comes from Chris LaFemina with Jefferies. Please proceed.

Operator: The next question comes from Chris LaFemina with Jefferies. Please proceed.

Speaker #6: Hey, thanks, operator. Hi, guys. Thanks for taking my questions. Most of my questions have been answered, but I just have maybe one or two follow-ups.

Chris LaFemina: Hey, thanks, operator. Hi, guys. Thanks for taking my... Most of my questions have been answered, but I just have maybe one or two follow-ups. So the first is back on the point of capital returns. You know, you comment on maintaining that level of cash on the balance sheet, but you also have a net cash position, so you have financial capacity to use some debt. And I understand in mining, in particular, in coal mining, balance sheet is sacred, but, you know, you'll be-

Chris LaFemina: Hey, thanks, operator. Hi, guys. Thanks for taking my... Most of my questions have been answered, but I just have maybe one or two follow-ups. So the first is back on the point of capital returns. You know, you comment on maintaining that level of cash on the balance sheet, but you also have a net cash position, so you have financial capacity to use some debt. And I understand in mining, in particular, in coal mining, balance sheet is sacred, but, you know, you'll be-

Speaker #6: So the first is back on the point of capital returns. You comment on maintaining that level of cash on the balance sheet, but you also have a net cash position.

Speaker #6: So, you have financial capacity to use some debt. And I understand, in mining—in particular, in coal mining—the balance sheet is sacred. But you'll be a low-cost producer.

Nathan Martin: ... a low-cost producer, and if prices fall, you'll be an even lower cost producer, and you can weather the storm pretty much no matter how bad it gets. So the question is: would you consider using balance sheet for buybacks in an environment where prices were a lot lower? I know there's a lot of hypothetical situations there, but could you use balance sheet? And if not, why wouldn't you? That's my first question.

Chris LaFemina: ... a low-cost producer, and if prices fall, you'll be an even lower cost producer, and you can weather the storm pretty much no matter how bad it gets. So the question is: would you consider using balance sheet for buybacks in an environment where prices were a lot lower? I know there's a lot of hypothetical situations there, but could you use balance sheet? And if not, why wouldn't you? That's my first question.

Speaker #6: And if prices fall, you'll be an even lower-cost producer. And you can weather the storm pretty much no matter how bad it gets. So the question is, would you consider using balance sheet for buybacks in the environment where prices were a lot lower?

Speaker #6: I know it was a lot of hypothetical situations there, but could you use balance sheet? And if not, why wouldn't you? That's my first question.

Dale W. Boyles: Yeah, no, good question, Chris. I mean, I think, you know, we've kind of done things a little differently than the rest of the industry, right? In the past. So, you know, if prices were to decrease quite significantly, to me, if we had that cash on the balance sheet, that would be an opportunity, a real opportunity for us to take advantage of a buyback. So I think that would be a good situation that we, we'd look to do that.

Dale Boyles: Yeah, no, good question, Chris. I mean, I think, you know, we've kind of done things a little differently than the rest of the industry, right? In the past. So, you know, if prices were to decrease quite significantly, to me, if we had that cash on the balance sheet, that would be an opportunity, a real opportunity for us to take advantage of a buyback. So I think that would be a good situation that we, we'd look to do that.

Speaker #1: Yeah, no, good questions, Chris. I mean, I think, you know, we've kind of done things a little different than the rest of the industry, right, in the past.

Speaker #1: So if prices were to decrease quite significantly, to me, if we have that cash on the balance sheet, that would be an opportunity. A real opportunity for us to take advantage of a buyback.

Speaker #1: So I think that would be a good situation that we would look to do that.

Speaker #6: Okay. Good. I'll leave it at that. Thanks a lot, Katya. Good luck.

Nathan Martin: Okay, good. I'll leave it at that. Thanks a lot, good luck.

Chris LaFemina: Okay, good. I'll leave it at that. Thanks a lot, good luck.

Speaker #2: And the next question is a follow-up from Nick Giles with B. Reilly. Please proceed.

Operator: The next question is a follow-up from Nick Giles with B. Riley. Please proceed.

Operator: The next question is a follow-up from Nick Giles with B. Riley. Please proceed.

Speaker #7: Hey, thanks so much for taking my follow-up. There's been a lot of questions around the realizations, but just for the avoidance of any doubt, can you just remind us what you said on what you're assuming for the relativities as it relates to your guidance?

Lucas Pipes: Hey, thanks so much for taking my follow-up. There's been a lot of, you know, questions around the realizations, but just for the avoidance of any doubt, can you just remind us what you said on what you're assuming for the relativity as it relates to your guidance? Like, obviously, there's a relativity assumption attached to that cost guidance, so just curious what those are.

Nick Giles: Hey, thanks so much for taking my follow-up. There's been a lot of, you know, questions around the realizations, but just for the avoidance of any doubt, can you just remind us what you said on what you're assuming for the relativity as it relates to your guidance? Like, obviously, there's a relativity assumption attached to that cost guidance, so just curious what those are.

Speaker #7: Obviously, there's a relativity assumption attached to that cost guidance. So just curious what those are.

Speaker #1: Yeah. In just overall gross price realizations, we're looking at about a 75% for the year. So hopefully, we're conservative there. But if you look at the East Coast index index, it's 65 today.

Dale W. Boyles: Yeah. In just overall gross price realizations, we're looking at about 75% for the year. So hopefully, we're conservative there, but if you look at the East Coast Index, it's 65 today. And so that has a big, significant impact. And like I say, it's been decreasing. It decreased in the fourth quarter, $6 a ton, so that went from 85% to 75%. So a big swing during, you know, the third quarter to the fourth quarter.

Dale Boyles: Yeah. In just overall gross price realizations, we're looking at about 75% for the year. So hopefully, we're conservative there, but if you look at the East Coast Index, it's 65 today. And so that has a big, significant impact. And like I say, it's been decreasing. It decreased in the fourth quarter, $6 a ton, so that went from 85% to 75%. So a big swing during, you know, the third quarter to the fourth quarter.

Speaker #1: And so that has a big significant impact. And like I say, it's been decreasing. It decreased in the fourth quarter. Six bucks a ton.

Speaker #1: So, that went from 85% to 75%, so a big swing during the third quarter to the fourth quarter. I do think we need to be careful about how we look at relativities.

Lucas Pipes: Got it,

Nick Giles: Got it,

Walter J. Scheller III: I do think we need to be careful about how we look at relativities and remember that, you know, right now, our assumption is high vol A's pretty well supplied, and for relativity to improve, that means the low vol price has to come down to it. So I prefer to see the relativity stay apart if the high vol price isn't gonna increase.

Walter Scheller: I do think we need to be careful about how we look at relativities and remember that, you know, right now, our assumption is high vol A's pretty well supplied, and for relativity to improve, that means the low vol price has to come down to it. So I prefer to see the relativity stay apart if the high vol price isn't gonna increase.

Speaker #1: And remember that right now, our assumption is high vol A's pretty well supplied and for relativities to improve, that means the low vol price has to come down to it.

Speaker #1: So I prefer to see the relativities stay apart. It's a high vol price isn't going to increase.

Speaker #7: Understood. No, I appreciate that perspective, Walt. And maybe just one more, if I could. It looks like sustaining CapEx ticked up by maybe $20 million or so.

Lucas Pipes: Understood. No, I appreciate that, that perspective, Walt. And maybe just one more, if I could. You know, it looks like sustaining CapEx ticked up by, you know, maybe $20 million or so. Not a huge step change, just given you do have a, a new mine coming online. What should we be assuming in kind of 2027 and beyond for sustaining capital?

Nick Giles: Understood. No, I appreciate that, that perspective, Walt. And maybe just one more, if I could. You know, it looks like sustaining CapEx ticked up by, you know, maybe $20 million or so. Not a huge step change, just given you do have a, a new mine coming online. What should we be assuming in kind of 2027 and beyond for sustaining capital?

Speaker #7: Not a huge step change, just given you do have a new mine coming online. What should we be assuming in, kind of, 2027 and beyond for sustaining capital?

Speaker #1: Well, I think all right. I think where we're looking at CapEx for this year, that's going to be pretty normal for where we are right now.

Walter J. Scheller III: Well, I think, all right, I think our where we're looking at CapEx for this year, that's going to be pretty normal for where we are right now. I think we'll see an uptick of $20 to 30 million a year. And I don't know how quickly that'll occur, but as we continue to run Blue Creek and have replacement capital for continuous miners and longwalls and things like that, we'll see an uptick of $20 to 30 million.

Walter Scheller: Well, I think, all right, I think our where we're looking at CapEx for this year, that's going to be pretty normal for where we are right now. I think we'll see an uptick of $20 to 30 million a year. And I don't know how quickly that'll occur, but as we continue to run Blue Creek and have replacement capital for continuous miners and longwalls and things like that, we'll see an uptick of $20 to 30 million.

Speaker #1: I think we'll see an uptick of 20 to 30 million dollars a year. And I don't know how quickly that'll occur, but as we continue to run Blue Creek and have replacement capital for continuous miners and long walls and things like that, we'll see it up an uptick of 20 to 30 million dollars.

Speaker #1: Yeah. That's right, Nick. So sorry, I was going to add some to that. So if you factor in Blue Creek at 20 to 30 million, you're probably looking at 110 to 140 somewhere roughly on a run rate basis.

Dale W. Boyles: Yeah, that's right, Nick. So, sorry, I was gonna add something to that. So if you put factor in Blue Creek of $20 to 30 million, you're probably looking at, you know, 110 to 140 somewhere, roughly on a run rate basis.

Dale Boyles: Yeah, that's right, Nick. So, sorry, I was gonna add something to that. So if you put factor in Blue Creek of $20 to 30 million, you're probably looking at, you know, 110 to 140 somewhere, roughly on a run rate basis.

Speaker #7: Okay. Understood.

Lucas Pipes: Okay. Understood.

Nick Giles: Okay. Understood.

Speaker #1: Some years we can pull that down depending on the price environment. But you're going to be—each year is going to increase for a while because of Blue Creek, as more and more things need to be replaced, etc., going forward.

Dale W. Boyles: Some years we can pull that down depending on the price environment, but you, you're gonna be, you know, each year is gonna increase for a while because of Blue Creek, as more and more things, you know, need to be replaced, et cetera, going forward.

Dale Boyles: Some years we can pull that down depending on the price environment, but you, you're gonna be, you know, each year is gonna increase for a while because of Blue Creek, as more and more things, you know, need to be replaced, et cetera, going forward.

Speaker #7: Okay. Okay. And I lied. I promised this will be my last question, but just anything more to add on the contracting activity? I think you spoke to it, but kind of where do things stand from a contracting perspective for Blue Creek?

Lucas Pipes: Okay, okay. And I, I lied, I promise this will be my last question, but just anything more to add on the contracting activity? I think you spoke to it, but, you know, kind of where do things stand from a contracting perspective for Blue Creek? Could any incremental contracting activity limit the volatility in your realizations, or are you really, you know, at the mercy of the market, if you will?

Nick Giles: Okay, okay. And I, I lied, I promise this will be my last question, but just anything more to add on the contracting activity? I think you spoke to it, but, you know, kind of where do things stand from a contracting perspective for Blue Creek? Could any incremental contracting activity limit the volatility in your realizations, or are you really, you know, at the mercy of the market, if you will?

Speaker #7: Could any incremental contracting activity limit the volatility in your realizations, or are you really at the mercy of the market, if you will?

Speaker #1: I don't think it's going to limit the volatility any more than we see the high vol A price its volatility is going to be the only limit on the Blue Creek price volatility.

Walter J. Scheller III: I don't think it's gonna limit the volatility any more than we see the High Vol A price. Its volatility is going to be the only limit on the Blue Creek price volatility. And in terms of volumes and percentages contracted, right now we're, I think, about 80 percent, 80, 85 percent. And, you know, as we see that number increase and we see that inventory level come down, that's where we'll start to see the opportunity to start to increase production levels, because what we've seen, we can clearly do that.

Walter Scheller: I don't think it's gonna limit the volatility any more than we see the High Vol A price. Its volatility is going to be the only limit on the Blue Creek price volatility. And in terms of volumes and percentages contracted, right now we're, I think, about 80 percent, 80, 85 percent. And, you know, as we see that number increase and we see that inventory level come down, that's where we'll start to see the opportunity to start to increase production levels, because what we've seen, we can clearly do that.

Speaker #1: And in terms of volumes and percentages contracted, right now, we're, I think, about 80%, 80, 85 percent. And as we see that number increase, and we see that inventory level come down, that's where we'll start to see the opportunity to start to increase production levels, because what we've seen, we can clearly do that.

Speaker #7: Okay. Well, kudos to Charles and his team on that front. And guys, congrats again on all the progress. Thanks so much.

Lucas Pipes: Okay. Well, kudos to Charles and his team on that front, and, guys, congrats again on all the progress. Thanks so much.

Nick Giles: Okay. Well, kudos to Charles and his team on that front, and, guys, congrats again on all the progress. Thanks so much.

Speaker #1: Thank you.

Walter J. Scheller III: Thank you.

Walter Scheller: Thank you.

Speaker #7: Thanks, Nick.

Dale W. Boyles: Thanks, Nick.

Dale Boyles: Thanks, Nick.

Speaker #2: And as a reminder, if you do have a question, please press star, then one. Our next question comes from Nathan Martin with the Benchmark Company.

Operator: As a reminder, if you do have a question, please press star, then one. Our next question comes from Nathan Martin with The Benchmark Company. Please proceed.

Operator: As a reminder, if you do have a question, please press star, then one. Our next question comes from Nathan Martin with The Benchmark Company. Please proceed.

Speaker #2: Please proceed.

Speaker #7: Thanks, operator. Good afternoon, gentlemen. Question on mine four. I mean, running at record levels really above its nameplate capacity, I think the last few years, are you guys expecting that to continue?

Nathan Martin: Hey, thanks, operator. Good afternoon, gentlemen. Question on Mine Four. I mean, running at record levels, really above its nameplate capacity, I think, the last few years. Are you guys expecting that to continue? And then related, you know, could you break down full-year sales guidance of 12.5 to 13.5 million tons by mine? I think it would be helpful maybe when trying to understand how to think about the potential quality mix.

Nathan Martin: Hey, thanks, operator. Good afternoon, gentlemen. Question on Mine Four. I mean, running at record levels, really above its nameplate capacity, I think, the last few years. Are you guys expecting that to continue? And then related, you know, could you break down full-year sales guidance of 12.5 to 13.5 million tons by mine? I think it would be helpful maybe when trying to understand how to think about the potential quality mix.

Speaker #7: And then related, could you break down full-year sales guide into 12 and a half to 13 and a half million tons by mine? I think it would be helpful maybe when trying to understand how to think about the potential quality mix.

Speaker #1: Well, I think we'll see Mine 4 run at about the same level as it did this past year. Mine 7 will run at about the same level it did this past year.

Walter J. Scheller III: ... Well, I think we'll see Mine Four running about the same level it did this past year, and Mine Seven running about the same level it did this past year, and then we'll see the 4.5 from Blue Creek. In terms of Mine Four, Mine Four has done an outstanding job of managing their production up and at the same time, their spending and their costs down. And I would expect that to continue. They achieved very, very well last year, and I don't see a reason why that will change.

Walter Scheller: ... Well, I think we'll see Mine Four running about the same level it did this past year, and Mine Seven running about the same level it did this past year, and then we'll see the 4.5 from Blue Creek. In terms of Mine Four, Mine Four has done an outstanding job of managing their production up and at the same time, their spending and their costs down. And I would expect that to continue. They achieved very, very well last year, and I don't see a reason why that will change.

Speaker #1: And then we'll see the four and a half from Blue Creek. In terms of mine four, mine four has done an outstanding job of managing their production up and at the same time, their spending and their costs down.

Speaker #1: And I would expect that to continue. They achieved very, very well last year, and I don't see a reason why that will change.

Speaker #7: Okay. Appreciate that, Walt. And then I know there's some questions on shareholder returns, but maybe taking a step back, how should we think about your priorities for free cash flow overall?

Nathan Martin: Okay, appreciate that, Walt. And then, I know there's some questions on shareholder returns. So maybe taking a step back, you know, how should we think about your priorities for Free Cash Flow overall?

Nathan Martin: Okay, appreciate that, Walt. And then, I know there's some questions on shareholder returns. So maybe taking a step back, you know, how should we think about your priorities for Free Cash Flow overall?

Speaker #1: Well, I think the priorities, once we get past Blue Creek, would be to return cash to shareholders. Until these markets change and demand any further growth on volumes, we would be focused on shareholder returns.

Dale W. Boyles: Well, I think the priorities, once we get past Blue Creek, would be to return cash to shareholders. You know, until these markets change and demand any further growth on volumes, we would be focused on shareholder returns.

Dale Boyles: Well, I think the priorities, once we get past Blue Creek, would be to return cash to shareholders. You know, until these markets change and demand any further growth on volumes, we would be focused on shareholder returns.

Speaker #7: All right. Very helpful, guys. That's all I had left. Best of luck in '26.

Nathan Martin: All right. Very helpful, guys. That's all I had left. Best of luck in 2026.

Nathan Martin: All right. Very helpful, guys. That's all I had left. Best of luck in 2026.

Speaker #1: Thank you.

Walter J. Scheller III: Thank you.

Walter Scheller: Thank you.

Speaker #2: And at this time, there are no further questions in the queue. I would now like to turn the call back over to Mr. Scheller for any final comments.

Operator: At this time, there are no further questions in the queue. I would now like to turn the call back over to Mr. Scheller for any final comments.

Operator: At this time, there are no further questions in the queue. I would now like to turn the call back over to Mr. Scheller for any final comments.

Speaker #1: That concludes our call this afternoon. Thank you again for joining us today, and we appreciate your interest in WARRIOR.

Walter J. Scheller III: That concludes our call this afternoon. Thank you again for joining us today, and we appreciate your interest in Warrior.

Walter Scheller: That concludes our call this afternoon. Thank you again for joining us today, and we appreciate your interest in Warrior.

Operator: Thank you. This concludes today's conference. You may now disconnect your lines, and have a pleasant day.

Operator: Thank you. This concludes today's conference. You may now disconnect your lines, and have a pleasant day.

Speaker #2: day.

Dale W. Boyles: ...

Operator: ...