The following discussion and analysis provides a narrative of our results of operations and financial condition for the three and six months ended June 30, 2026 and June 30, 2025. You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes appearing in this Form 10-Q and the audited financial statements for the year ended December 31, 2025 included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Annual Report"). Some of the information contained in this discussion and analysis or set forth elsewhere in this Form 10-Q, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, our actual results could differ materially from the results described in, or implied by, the forward-looking statements contained in the following discussion and analysis. Please see “Forward-Looking Statements.” Overview We are a U.S.-based, environmentally and socially minded supplier to the global steel industry headquartered in Brookwood, Alabama. We are dedicated entirely to mining non-thermal steelmaking coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia. We are a large-scale, low-cost producer and exporter of premium quality steelmaking coal, also known as hard coking coal (“HCC”), operating highly-efficient longwall operations in our underground mines based in Alabama, Mine No. 4, Mine No. 7 and Blue Creek. We commenced longwall operations at our transformational Blue Creek mine based in Alabama eight months ahead of schedule in October 2025. As of December 31, 2025, based on a reserve report prepared by Marshall Miller & Associates, Inc. ("Marshall Miller"), our three operating underground mines had approximately 179.3 million metric tons of recoverable reserves and our Blue Creek mine contained 54.0 million metric tons of recoverable reserves. As a result of our high-quality coal, our Mine No. 7 steelmaking coal realized price has historically been in line with, or at a slight discount to, the Platts Premium Low Volatility ("LV") Free-On-Board Australian Index (the "S&P Platts Index"). Our Mine No. 4 and Blue Creek steelmaking coals are High Volatility A ("HVA") quality coal that typically trades at a discount to the price of coal from Mine No. 7. We primarily target the East Coast High Vol A index for sales of our Mine No. 4 and Blue Creek coals that are destined for the Atlantic Basin, whereas we target a variety of indices, including Platts Premium Low Vol and Platts Low Vol HCC for sales destined to the Pacific Basins. Our Blue Creek coal is also primarily sold into Asia and is sold on a cost and freight ("CFR") basis. Our steelmaking coal, mined from the Southern Appalachian portion of the Blue Creek coal seam, is characterized by low-to-high volatile matter, low sulfur, high fluidity, and high strength. These qualities make our coal ideally suited as a coking coal for the manufacture of steel. We sell substantially all of our steelmaking coal production to global steel producers. Steelmaking coal, which is converted to coke, is a critical input in the steel production process. Steelmaking coal is both consumed domestically in the countries where it is produced and exported by several of the largest producing countries, such as China, Australia, the United States, Canada and Russia. Therefore, demand for our coal will be highly correlated to conditions in the global steelmaking industry. The steelmaking industry’s demand for steelmaking coal is affected by a number of factors, including the cyclical nature of that industry’s business, technological developments in the steelmaking process and the availability of substitutes for steel such as aluminum, composites and plastics. A significant reduction in the demand for steel products would reduce the demand for steelmaking coal, which would have a material adverse effect upon our business. Similarly, if alternative ingredients are used in substitution for steelmaking coal in the integrated steel mill process, the demand for steelmaking coal could materially decrease, which could also materially adversely affect demand for our steelmaking coal. Completion of Blue Creek Development We commenced longwall operations at the Blue Creek mine in October 2025, eight months ahead of schedule and on budget. The ahead-of-schedule start of Blue Creek's longwall is already positively impacting our production profile, cost structure, and earnings potential. On February 21, 2025, we provided an update on the Blue Creek project. Due to the implementation of innovative technologies and best practices, we increased nameplate production capacity of the Blue Creek mine by 25%, from the original production plan of 4.4 million metric tons to 5.4 million metric tons. With better-than-expected recovery and the anticipated addition of a fourth continuous miner unit, our overall nameplate production capacity increased up to approximately 6.4 million metric tons. The additional capacity increased our overall nameplate production capacity by 88%, from 7.3 million metric tons per year to 13.7 million metric tons per year. While our nameplate production capacity has significantly increased, actual annual sales and production volumes will be dependent upon steelmaking coal market conditions. Even in these early stages of production and sales, Blue Creek has already contributed to 16 lower cash costs, further improving our position in the first-quartile of the global cost curve. In addition, Blue Creek's low-cost structure has reduced our all-in cash cost breakeven point and enhanced profitability and cash flow generation. In the first quarter of 2026, we completed the Blue Creek construction project. We invested approximately $71.3 million in the current year, brining total project spending to $1,028.1 million. Final project costs were fully in line with our capital guidance, and no material additional project capital expenditures are expected. With construction complete, Blue Creek is positioned to continue driving higher production, lower costs, and improved cash flow generation as the operation advances through its ramp-up and optimization phase. Finalization of Federal Coal Lease Acquisition On November 25, 2025, Warrior Met Coal BC, LLC (“Warrior BC”), a wholly-owned subsidiary of the Company, entered into Federal Coal Lease ALES-056519 at Mine No. 1 (the “Mine No. 1 Lease”) and Warrior Met Coal Mining, LLC (“Warrior Mining”, and together with Warrior BC, the “Companies”), a wholly-owned subsidiary of the Company, entered into Federal Coal Lease ALES-055797 at Mine No. 4 (the “Mine No. 4 Lease”, and, together with the Mine No. 1 Lease, the “Leases”), each with the United States of America through the Bureau of Land Management (the “BLM”) of the United States Department of the Interior. The Mine No. 1 Lease covers approximately 8,346 acres and the Mine No. 4 Lease covers approximately 5,704 acres. The BLM estimates the Mine No. 1 Lease tract contains approximately 32.9 million metric tons of recoverable coal reserves, and the Mine No. 4 Lease tract contains approximately 15.3 million metric tons of recoverable coal reserves. Subject to the terms and conditions thereof, the Leases provide the Companies with the exclusive right to drill for, mine, extract, remove or otherwise process and dispose of the coal deposits in, upon, or under the lands described therein. Each Lease has a minimum term of 20 years and for so long thereafter as coal is produced in commercial quantities from the leased lands, subject to readjustment of lease terms at the end of the twentieth lease year and each 10-year period thereafter. Pursuant to each lease, each Company is required to pay customary production royalties of 7% of the value of the coal produced and per acre annual rental payments to the BLM. Warrior BC bid approximately $32 million for the Mine No. 1 Lease and has submitted a payment for approximately $6.4 million, which is the first of five equal payments. Warrior Mining bid approximately $15 million for the Mine No. 4 Lease and has submitted a payment for approximately $3.0 million, which is the first of five equal payments. Successive installments are due each year on the anniversary of the Leases for the next four years. These future installments were recorded at a discount using our credit-adjusted risk-free rate and are presented in the Consolidated Balance Sheets as short and long-term federal coal lease obligations. As of June 30, 2026, the short-term and long-term obligations were $9.1 million and $24.4 million, respectively. As of December 31, 2025, the short-term and long-term obligations were $8.8 million and $23.7 million, respectively. On January 13, 2026, the U.S. Department of the Interior issued mining plan approval documents for each Lease, thereby authorizing coal development and mining operations on parts of each Lease within the area of mining plan approval. Recent Developments During the second quarter of 2026, global steelmaking coal market conditions reflected tightening coal supply in China and uneven demand across major seaborne markets. Premium low-volatility ("Premium LV") metallurgical ("met") coal prices remained supported by production disruptions and safety inspections in China's Shanxi province, which reduced Chinese domestic coking coal availability and increased demand for seaborne imports. As a result, Chinese buyers became a more significant influence on seaborne price formation, offsetting weaker demand in other markets. Premium LV FOB prices averaged $238.27 per metric ton during the second quarter of 2026, compared to $234.67 per metric ton in the first quarter of 2026 and $184.22 per metric ton in the second quarter of 2025. Steelmaking coal demand in China strengthened during the second quarter of 2026 as supply disruptions reduced domestic production and inventories, increasing reliance on imported coal. According to Wood Mackenzie, cumulative production losses in Shanzi province could reach 15 to 25 million metric tons through August 2026, while mine inventories declined to approximately one million metric tons by the end of June, an eight-year low. In contrast, demand in India softened due to elevated inventories, weaker steel demand, and seasonal monsoon impacts, while demand in Europe and other Atlantic Basin markets remained generally stable despite continued sensitivity to steel margins and broader economic conditions. The United States government continued to pursue a range of trade and tariff measures affecting international commerce, with certain countries implementing responsive actions. Ongoing trade and tariff uncertainty continued to contribute to volatility in global steel and steelmaking coal markets. The implementation of additional tariffs or other trade measures by the United States, or retaliatory actions by other countries, could adversely affect economic activity, operating costs, demand for steelmaking coal, supply chains, and pricing conditions. At this time, the ultimate impact of tariffs and related trade actions on the Company’s financial condition, results of operations, or cash flows cannot be reasonably estimated. The Company continues to monitor trade developments and assess potential 17 impacts on its business. On July 4, 2025, the One, Big, Beautiful Bill Act ("OBBBA") was enacted into law and includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The changes include, among other things, an update to IRC Section 250 Deduction: FDII to Foreign-Derived Deduction Eligible Income ("FDDEI"), which provides for, among other things, a permanent deduction of 33.34% of FDDEI, which reduces the statutory tax rate to 14% of such income. The OBBBA also classified met coal as a critical mineral eligible for the advanced manufacturing production tax credit under Section 45X (the "45X Credit") of the Internal Revenue Code. The 45X Credit for met coal provides for a credit of 2.5% of eligible production costs through 2029. Section 50202 of the OBBBA also temporarily decreases the royalty rate for coal leases on federal lands to not more than 7% through 2034. We recognized a benefit from the 45X Credit of $9.7 million and $18.0 million for the three and six months ended June 30, 2026, which is reflected as a reduction to cost of sales in the Condensed Statements of Operations and a corresponding income tax receivable included in prepaid expenses and other receivables in the Condensed Balance Sheets. Collective Bargaining Agreement The Company's Collective Bargaining Agreement ("CBA") with the labor union representing certain of the Company's hourly employees expired on April 1, 2021. The Company continues to engage in good faith efforts with the labor union to reach an agreement on a new contract. How We Evaluate Our Operations We have one reportable segment identified as Mining which consists of Mine No. 4, Mine No. 7 and the Blue Creek mine. We determined that our natural gas and royalty businesses did not meet the criteria in ASC 280, Segment Reporting, to be considered as a reportable segment. Therefore, we have included their results in an "all other" category as a reconciling item to consolidated amounts. Our management uses a variety of financial and operating metrics to analyze our performance. These metrics are significant factors in assessing our operating results and profitability and include: (i) Segment Adjusted EBITDA (as defined below), a non-GAAP financial measure; (ii) sales volumes and average net selling price, which drive coal sales revenue; (iii) cash cost of sales, a non-GAAP financial measure; and (iv) Adjusted EBITDA, a non-GAAP financial measure. The following table presents supplementary data on a historical basis for each of the periods indicated. For the three months ended June 30, For the six months ended June 30, (in thousands) 2026 2025 2026 2025 Segment Adjusted EBITDA $ 163,548 $ 62,079 $ 321,599 $ 111,277 Metric tons sold 3,315 2,013 6,038 3,983 Metric tons produced 3,036 2,094 6,209 4,139 Average net selling price per metric ton $ 151.91 $ 143.31 $ 157.68 $ 146.48 Cash cost of sales per metric ton $ 101.99 $ 111.53 $ 103.81 $ 117.63 Cost of production % 58 % 67 % 59 % 67 % Transportation and royalties % 42 % 33 % 41 % 33 % Adjusted EBITDA $ 156,903 $ 53,568 $ 300,258 $ 93,056 Segment Adjusted EBITDA We define Segment Adjusted EBITDA as net income (loss) adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative expenses, interest income, interest expense, income tax benefit (expense) and certain transactions or adjustments that the Chief Executive Officer, our Chief Operating Decision Maker, does not consider for the purposes of making decisions to allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our consolidated financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess: •our operating performance as compared to the operating performance of other companies in the coal industry, without regard to financing methods, historical cost basis or capital structure; •the ability of our assets to generate sufficient cash flow to pay distributions; 18 •our ability to incur and service debt and fund capital expenditures; and •the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities, such as Blue Creek. Sales Volumes and Average Net Selling Price We evaluate our operations based on the volume of coal we can safely produce and sell in compliance with regulatory standards, and the prices we receive for our steelmaking coal. Our sales volume and sales prices are largely dependent upon the terms of our annual steelmaking coal sales contracts, for which prices generally are set on daily index averages on a quarterly basis. The volume of steelmaking coal we sell is also a function of the pricing environment in the international steelmaking coal markets and the amounts of Low Vol and High Vol A coal that we sell. We evaluate the price we receive for our steelmaking coal based on our average net selling price per metric ton. Our average net selling price per metric ton represents our coal net sales revenue divided by total metric tons of coal sold. In addition, our average net selling price per metric ton is net of demurrage and quality specification adjustments. We normally compete on a delivered basis when negotiating contract and spot transactions with our global customers. However, depending on market dynamics and other circumstances, the burden of ocean freight may be borne entirely by the supplier, shared between both partners, or assumed entirely by the customer. In the instance when we are responsible for the freight, the freight costs will reduce our net sales revenues and impact our net selling price realizations. Cash Cost of Sales We evaluate our cash cost of sales on a cost per metric ton basis. Cash cost of sales is based on reported cost of sales and includes items such as freight, royalties, manpower, fuel and other similar production and sales cost items, and may be adjusted for other items that, pursuant to accounting principles generally accepted in the United States ("GAAP"), are classified in the Consolidated Statements of Operations as costs other than cost of sales, but relate directly to the costs incurred to produce steelmaking coal and sell it free-on-board at the Port of Mobile in Alabama. Our cash cost of sales per metric ton is calculated as cash cost of sales divided by the metric tons sold. Cash cost of sales is used as a supplemental financial measure by management and by external users of our consolidated financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess: •our operating performance as compared to the operating performance of other companies in the coal industry, without regard to financing methods, historical cost basis or capital structure; and •the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities, such as Blue Creek. We believe that this non-GAAP financial measure provides additional insight into our operating performance, and reflects how management analyzes our operating performance and compares that performance against other companies on a consistent basis for purposes of business decision making by excluding the impact of certain items that management does not believe are indicative of our core operating performance. We believe that cash cost of sales presents a useful measure of our controllable costs and our operational results by including all costs incurred to produce steelmaking coal and sell it free-on-board at the Port of Mobile in Alabama. Period-to-period comparisons of cash cost of sales are intended to help management identify and assess additional trends potentially impacting our Company that may not be shown solely by period-to-period comparisons of cost of sales. Cash cost of sales should not be considered an alternative to cost of sales or any other measure of financial performance or liquidity presented in accordance with GAAP. Cash cost of sales excludes some, but not all, items that affect cost of sales, and our presentation may vary from the presentations of other companies. As a result, cash cost of sales as presented below may not be comparable to similarly titled measures of other companies. The following table presents a reconciliation of cash cost of sales to total cost of sales, the most directly comparable GAAP financial measure, on a historical basis for each of the periods indicated. For the three months ended June 30, For the six months ended June 30, (in thousands) 2026 2025 2026 2025 Cost of sales (exclusive of depreciation and depletion) $ 340,046 $ 226,412 $ 630,464 $ 472,147 Asset retirement obligation accretion (806 ) (966 ) (1,612 ) (1,931 ) Stock compensation expense (1,133 ) (942 ) (2,050 ) (1,684 ) Cash cost of sales $ 338,107 $ 224,504 $ 626,802 $ 468,532 19 Adjusted EBITDA We define Adjusted EBITDA as net income (loss) before net interest expense (income), income tax expense (benefit), depreciation and depletion, non-cash asset retirement obligation accretion, non-cash stock compensation expense, other non-cash accretion, non-cash mark-to-market (gain) loss on gas hedges and business interruption expenses. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our consolidated financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess: •our operating performance as compared to the operating performance of other companies in the coal industry, without regard to financing methods, historical cost basis or capital structure; and •the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities, such as Blue Creek. We believe that the presentation of Adjusted EBITDA in this report provides information useful to investors in assessing our financial condition and results of operations. The GAAP measure most directly comparable to Adjusted EBITDA is net income (loss). Adjusted EBITDA should not be considered an alternative to net income (loss) or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjustments exclude some, but not all, items that affect net income and our presentation of Adjusted EBITDA may vary from that presented by other companies. The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, on a historical basis for each of the periods indicated. For the three months ended June 30, For the six months ended June 30, (in thousands) 2026 2025 2026 2025 Net income (loss) $ 87,429 $ 5,606 $ 159,770 $ (2,562 ) Interest expense (income), net 3,381 (2,195 ) 3,965 (5,380 ) Income tax expense (benefit) 3,711 4,310 10,154 (1,720 ) Depreciation and depletion 58,293 43,255 110,566 88,532 Asset retirement obligation accretion (1) 1,113 1,331 2,225 2,662 Stock compensation expense (2) 2,478 2,045 12,577 10,098 Other non-cash accretion (3) 495 495 990 989 Mark-to-market (gain) loss on gas hedges (4) - (1,303 ) - 415 Business interruption (5) 3 24 11 22 Adjusted EBITDA $ 156,903 $ 53,568 $ 300,258 $ 93,056 (1)Represents non-cash accretion expense associated with our asset retirement obligations. (2)Represents non-cash stock compensation expense associated with equity awards. (3)Represents non-cash accretion expense associated with our black lung obligations. (4)Represents mark-to-market gain recognized on gas hedges. (5)Represents ongoing legal expenses associated with the ongoing labor negotiations. 20 Results of Operations Three Months Ended June 30, 2026 and 2025 The following table summarizes certain unaudited financial information for these periods. For the three months ended June 30, ($ in thousands) 2026 % of Total Revenues 2025 % of Total Revenues Revenues: Sales $ 503,594 98.8 % $ 288,491 97.0 % Other revenues 6,096 1.2 % 9,032 3.0 % Total revenues 509,690 100.0 % 297,523 100.0 % Costs and expenses: Cost of sales (exclusive of items shown separately below) 340,046 66.7 % 226,412 76.1 % Cost of other revenues (exclusive of items shown separately below) 7,033 1.4 % 8,210 2.8 % Depreciation and depletion 58,293 11.4 % 43,255 14.5 % Selling, general and administrative 9,797 1.9 % 11,923 4.0 % Total costs and expenses 415,169 81.5 % 289,800 97.4 % Operating income 94,521 18.5 % 7,723 2.6 % Interest expense (5,526 ) (1.1 )% (2,890 ) (1.0 )% Interest income 2,145 0.4 % 5,083 1.7 % Income before income tax expense 91,140 17.9 % 9,916 3.3 % Income tax expense 3,711 0.7 % 4,310 1.4 % Net income $ 87,429 17.2 % $ 5,606 1.9 % Sales and cost of sales components on a per unit basis were as follows: For the three months ended June 30, 2026 2025 Met Coal (metric tons in thousands) Metric tons sold 3,315 2,013 Metric tons produced 3,036 2,094 Average net selling price per metric ton $ 151.91 $ 143.31 Cash cost of sales per metric ton $ 101.99 $ 111.53 We produced 3.0 million metric tons of steelmaking coal for the three months ended June 30, 2026 compared to 2.1 million metric tons for the three months ended June 30, 2025, representing a 45.0% increase. The increased production was primarily driven by an increase in tons produced at the Blue Creek mine. Sales for the three months ended June 30, 2026 were $503.6 million compared to $288.5 million for the three months ended June 30, 2025. The $215.1 million increase in sales was primarily driven by a $186.6 million increase due to a 64.7% increase in steelmaking coal sales volume primarily due to Blue Creek combined with a $28.6 million increase related to a $8.60 per metric ton increase in the average net selling price per metric ton of our steelmaking coal. The average net selling price of our steelmaking coal increased $8.60 from $143.31 per metric ton in the second quarter of 2025 to $151.91 per metric ton in the second quarter of 2026. For the three months ended June 30, 2026, our geographic customer sales volume mix was 50% in Asia, 35% in Europe, 14% in South America and 1% in the United States. For the three months ended June 30, 2025, our geographic customer sales volume mix was 52% in Asia, 37% in Europe and 11% in South America. Our geographic customer mix typically varies each period based on the timing of customer orders and shipments. Other revenues for the three months ended June 30, 2026 were $6.1 million compared to $9.0 million for the three months ended June 30, 2025. Other revenues are comprised of revenue derived from our natural gas operations, gains and losses on our natural gas hedges and earned royalty revenue. The $2.9 million decrease in other revenues was primarily due to the prior year comparable 21 period including a gain on mark-to-market gas hedges of $1.8 million. The decrease was also due to a decrease in the Southern Louisiana natural gas price average per Million British Thermal Unit ("MMBtu") of 14% and a decrease in natural gas sales volumes of 1%. Cost of sales was $340.0 million, or 66.7% of total revenues, for the three months ended June 30, 2026, compared to $226.4 million, or 76.1% of total revenues for the three months ended June 30, 2025. The $113.6 million increase was primarily driven by a $145.2 million increase due to a 1,302 thousand metric ton increase in steelmaking coal sales volume primarily driven by coal sales from the Blue Creek mine offset partially by a $31.6 million decrease due to a $9.54 per metric ton decrease in cash cost of sales per metric ton due to the sales mix of Blue Creek coal with its inherent lower cost structure, a benefit from the 45X Credit of $9.7 million, our disciplined approach to cost control and an increase in tons produced. For the three months ended June 30, 2026, cost of production represented 58% of cost of sales and transportation and royalties accounted for approximately 42% compared to cost of production of 67% and transportation and royalties of 33% for the three months ended June 30, 2025. Cost of other revenues was $7.0 million or 1.4% of total revenues, for the three months ended June 30, 2026, compared to $8.2 million, or 2.8% of total revenues for the three months ended June 30, 2025. The decrease was primarily driven by lower gas compression costs and a 1% decrease in gas sales volumes. Depreciation and depletion expenses were $58.3 million, or 11.4% of total revenues, for the three months ended June 30, 2026, compared to $43.3 million, or 14.5% of total revenues for the three months ended June 30, 2025. The $15.0 million increase in depreciation and depletion is primarily driven by an increase in additional assets placed into service at Blue Creek combined with a 64.7% increase in steelmaking coal sales volume as depreciation and depletion is first capitalized into coal inventory and relieved when the tons are sold. Selling, general and administrative expenses were $9.8 million, or 1.9% of total revenues, for the three months ended June 30, 2026, compared to $11.9 million, or 4.0% of total revenues, for the three months ended June 30, 2025. The $2.1 million decrease in selling, general and administrative expenses for the period was primarily due to a gain of $2.4 million related to recoveries received in connection with the Walter Energy bankruptcy proceedings. Interest expense was $5.5 million, or 1.1% of total revenues, for the three months ended June 30, 2026, compared to interest expense of $2.9 million, or 1.0% of total revenues, for the three months ended June 30, 2025. The $2.6 million increase was due to an increase in interest on additional financing leases and imputed interest on the federal coal lease obligations. Interest income was $2.1 million, or 0.4% of total revenues for the three months ended June 30, 2026, compared to $5.1 million, or 1.7% of total revenues for the three months ended June 30, 2025. The $2.9 million decrease was primarily driven by a decrease in invested cash balances and lower rates of return earned on our investments. For the three months ended June 30, 2026, we recognized an income tax expense of $3.7 million compared to income tax expense of $4.3 million for the three months ended June 30, 2025. We estimated our annual effective tax rate and applied this effective tax rate to our year-to-date pretax income at the end of the interim reporting period. The $3.7 million income tax expense for the three months ended June 30, 2026, was driven by pre-tax income and depletion and Internal Revenue Code ("IRC") Section 250 Deduction: Foreign-Derived Deduction Eligible Income ("FDDEI") deductions. The prior year comparable period income tax expense was driven by a pre-tax income, depletion and FDII deductions. The OBBBA was enacted on July 4, 2025, and updated the FDII to FDDEI, which provides for, among other things, a permanent deduction of 33.34% of FDDEI, which reduces the statutory tax rate to 14% of such income. The changes take effect for taxable years beginning after December 31, 2025. 22 Six Months Ended June 30, 2026 and 2025 The following table summarizes certain unaudited financial information for these periods. For the six months ended June 30, ($ in thousands) 2026 % of Total Revenues 2025 % of Total Revenues Revenues: Sales $ 952,063 98.3 % $ 583,424 97.6 % Other revenues 16,215 1.7 % 14,042 2.4 % Total revenues 968,278 100.0 % 597,466 100.0 % Costs and expenses: Cost of sales (exclusive of items shown separately below) 630,464 65.1 % 472,147 79.0 % Cost of other revenues (exclusive of items shown separately below) 15,363 1.6 % 16,083 2.7 % Depreciation and depletion 110,566 11.4 % 88,532 14.8 % Selling, general and administrative 37,996 3.9 % 30,365 5.1 % Total costs and expenses 794,389 82.0 % 607,127 101.6 % Operating income 173,889 18.0 % (9,661 ) (1.6 )% Interest expense (8,697 ) (0.9 )% (4,997 ) (0.8 )% Interest income 4,732 0.5 % 10,376 1.7 % Net income (loss) before income tax expense 169,924 17.5 % (4,282 ) (0.7 )% Income tax expense (benefit) 10,154 1.0 % (1,720 ) (0.3 )% Net income (loss) $ 159,770 16.5 % $ (2,562 ) (0.4 )% Sales and cost of sales components on a per unit basis were as follows: For the six months ended June 30, 2026 2025 Met Coal (metric tons in thousands) Metric tons sold 6,038 3,983 Metric tons produced 6,209 4,139 Average net selling price per metric ton $ 157.68 $ 146.48 Cash cost of sales per metric ton $ 103.81 $ 117.63 We produced 6.2 million metric tons of steelmaking coal for the six months ended June 30, 2026 compared to 4.1 million metric tons for the six months ended June 30, 2025, representing a 50.0% increase. The increased production was primarily driven by an increase in tons produced at the Blue Creek mine. Sales for the six months ended June 30, 2026 were $952.1 million compared to $583.4 million for the six months ended June 30, 2025. The $368.6 million or 63.2% increase in sales was primarily driven by a $301.0 million increase in sales due to a 51.6% or 2,055 thousand metric ton increase in steelmaking coal sales volume and a $67.6 million increase in sales related to a 7.6% or $11.20 per metric ton increase in the average net selling price per metric ton of steelmaking coal. For the six months ended June 30, 2026, our geographic customer sales volume mix was 55% in Asia, 30% in Europe, 14% in South America and 1% in the United States. For the six months ended June 30, 2025, our geographic customer sales volume mix was 47% in Asia, 37% in Europe and 16% in South America. Our geographic customer mix typically varies each period based on the timing of customer orders and shipments. 23 Other revenues for the six months ended June 30, 2026 were $16.2 million compared to $14.0 million for the six months ended June 30, 2025. Other revenues are comprised of revenue derived from our natural gas operations, gains on sales and disposals of property, plant and equipment and land, changes in the fair value of our natural gas swap contracts, as well as earned royalty revenue. The $2.2 million increase in other revenues were due to an increase in the Southern Louisiana natural gas price average of 20% offset partially by a decrease in sales volume of 2% for the six months ended June 30, 2026. Cost of sales (exclusive of items shown separately below) was $630.5 million, or 65.1%, of total revenues, for the six months ended June 30, 2026, compared to $472.2 million, or 79.0% of total revenues for the six months ended June 30, 2025. The $158.3 million increase was primarily driven by a $241.7 million increase due to a 51.6% or 2,055 thousand metric ton increase in steelmaking coal sales volume partially offset by a $83.4 million decrease due to a $13.82 per metric ton decrease in cash cost of sales per metric ton. The decrease in cash cost of sales per metric ton was due to the sales mix of Blue Creek coal and its inherent lower cost structure, a benefit from the 45X Credit of $18.0 million, our disciplined approach to cost control and an increase in tons produced. For the six months ended June 30, 2026, cost of production represented 59% of cost of sales and transportation and royalties accounted for approximately 41% compared to cost of production of 67% and transportation and royalties of 33% for the six months ended June 30, 2025. Depreciation and depletion expenses were $110.6 million, or 11.4% of total revenues, for the six months ended June 30, 2026, compared to $88.5 million, or 14.8% of total revenues, for the six months ended June 30, 2025. The $22.0 million increase in depreciation and depletion expenses were primarily driven by additional assets placed into service at Blue Creek and a 51.6% or 2,055 thousand metric ton increase in steelmaking coal sales volume as depreciation and depletion is first capitalized into coal inventory and relieved when the tons are sold. Selling, general and administrative expenses were $38.0 million, or 3.9% of total revenues, for the six months ended June 30, 2026, compared to $30.4 million, or 5.1% of total revenues, for the six months ended June 30, 2025. The $7.6 million increase in selling, general and administrative expenses for the period was primarily due to an increase in employee related expenses offset partially by a gain of $2.4 million related to recoveries received in connection with the Walter Energy bankruptcy proceedings. Interest expense was $8.7 million, or 0.9% of total revenues, for the six months ended June 30, 2026, compared to $5.0 million, or 0.8% of total revenues, for the six months ended June 30, 2025. The $3.7 million increase was due to an increase in interest on additional financing leases and imputed interest on the federal coal lease obligations. Interest income was $4.7 million, or 0.5% of total revenues for the six months ended June 30, 2026, compared to $10.4 million, or 1.7%, of total revenues for the six months ended June 30, 2025. The $5.6 million decrease was primarily driven by a decrease in invested cash balances and lower rates of return earned on our investments. We recognized income tax expense of $10.2 million and an income tax benefit of $1.7 million for the six months ended June 30, 2026 and June 30, 2025, respectively. We estimated our annual effective tax rate and applied this effective tax rate to our year-to-date pre-tax income at the end of the interim reporting period. The effective income tax rate for the six months ended June 30, 2026 varied from the statutory federal income tax rate of 21%, primarily due to pre-tax income and Internal Revenue Code ("IRC") Section 250 Deduction: Foreign-Derived Deduction Eligible Income ("FDDEI") deductions. The OBBBA was enacted on July 4, 2025, and updated the FDII to FDDEI, which provides for, among other things, a permanent deduction of 33.34% of FDDEI, which reduces the statutory tax rate to 14% of such income. The changes take effect for taxable years beginning after December 31, 2025. Liquidity and Capital Resources Overview Our sources of cash have been steelmaking coal and natural gas sales to customers, proceeds received from the Notes and access to our Amended ABL Facility. Historically, our primary uses of cash have been for funding the operations of our coal and natural gas production operations, working capital, our capital expenditures, including capital expenditures and mine development for the development of Blue Creek, our reclamation obligations, payment of principal and interest on our Notes, professional fees and other non-recurring transaction expenses. In addition, we used available cash on hand to repurchase shares of common stock and to pay our quarterly and special dividends, each of which reduces or reduced cash and cash equivalents. Going forward, we plan to use cash to fund debt service payments on our Notes, the Amended ABL Facility and our other indebtedness, to fund operating activities, working capital, capital expenditures, our reclamation obligations, our finance lease obligations, our black lung obligations, our federal coal lease obligations, professional fees and other non-recurring transaction expenses and strategic investments, stock repurchases, and, if declared, to pay our quarterly and/or special dividends. Our ability to fund our capital needs going forward will depend on our ongoing ability to generate cash from operations and borrowing availability under the 24 Amended ABL Facility, and, in the case of any future strategic investments, capital needs or special dividends financed partially or wholly with debt financing and our ability to access the capital markets to raise additional capital. Our total liquidity as of June 30, 2026 was $452.9 million, consisting of cash and cash equivalents of $302.3 million, short-term investments of $10.1 million, which is net of $10.1 million posted as collateral and $140.5 million available under our Amended ABL Facility. As of June 30, 2026, no loans were outstanding under the Amended ABL Facility and there were $2.5 million of letters of credit issued and outstanding under the Amended ABL Facility. In the future, we may, at any time and from time to time, seek to retire or purchase additional Notes in open-market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, if any, and other factors. We are responsible for medical and disability benefits for black lung disease under the Federal Coal Mine Health and Safety Act of 1969, as amended. Beginning on April 1, 2016 through May 31, 2018, we were insured under a guaranteed cost insurance policy, through a third-party insurance carrier, for black lung claims raised by any employee subsequent to the acquisition of certain assets of Walter Energy, Inc. ("Walter Energy"). From June 1, 2018 to May 31, 2020 and June 1, 2020 to May 31, 2024, we had a deductible policy where the Company was responsible for the first $0.5 million and $1.0 million, respectively, for each black lung and workers compensation related claim from any of our employees. Beginning on June 1, 2024, we have a deductible policy where we are responsible for the first $2.0 million of each black lung and workers compensation related claim from any of our employees. We assumed all of the black lung liabilities of Walter Energy and its U.S. subsidiaries. We are self-insured for these black lung liabilities and have posted $18.6 million in surety bonds and $10.1 million of collateral recognized as short-term investments in addition to maintaining a black lung trust of $0.7 million that was acquired from Walter Energy. We received a letter from the Division of Coal Mine Workers' Compensation ("DCWMC") on February 21, 2020, under its new process for self-insurance renewals, which would require us to increase the amount of collateral posted to $39.8 million, but we appealed such increase. We received another letter from the DCWMC on December 8, 2021 requesting additional information to support our appeal of the collateral requested by the DOL. On February 9, 2022, the DCWMC held a conference call with representatives from the Company related to our appeal. On July 12, 2022, we received a decision on our appeal from the DCWMC lowering the amount of collateral required to be posted from $39.8 million to $28.0 million. We appealed this decision. On January 19, 2023, the DOL proposed revisions to regulations under the Black Lung Benefits Act governing authorization of self-insurers, which was then subsequently revised as part of the final rules published on December 12, 2024, which became effective on January 13, 2025 (the "2025 Final Regulations"). The 2025 Final Regulations required, among other requirements, all self-insured operators to post security of at least 100 percent of their projected black lung liabilities. On January 14, 2025, we received a letter from the DCMWC outlining the new procedures and application process for authorizing operators to self-insure under the new regulations. The letter outlined authorization form requirements and provided a 60-day period for the submission of the required documents. Subsequently, on February 20, 2025, we received another letter from the DCMWC stating that the 60-day deadline to provide information was no longer applicable and no information was required to be submitted at this time. DCWMC further stated that additional guidance would be provided in due course after consultation with the new DOL leadership. On July 30, 2026, the DOL published a notice of proposed rulemaking that would amend the 2025 Final Regulations. Among other changes, the proposal would replace the current requirement that self-insured operators post security equal to 100% of projected black lung liabilities with a risk-based framework and would permit qualifying operators to phase in required security over a three-year period. The proposed rule remains subject to public comment and may be modified before adoption. The Company is evaluating the proposal and cannot currently predict the ultimate outcome of the rulemaking or reasonably estimate its effect, if any, on the Company's financial position, results of operations or liquidity. In the ordinary course of our business, we are required to provide surety bonds and letters of credit to provide financial assurance for certain transactions and business activities. Federal and state laws require us to obtain surety bonds or other acceptable security to secure payment of certain long-term obligations including mine closure or reclamation costs and other miscellaneous obligations. As of June 30, 2026, we had outstanding surety bonds and letters of credit with parties for post-mining reclamation at all of our mining operations totaling $47.5 million, $18.6 million as collateral for self-insured black lung related claims, $16.0 million for federal coal leases and $6.4 million for miscellaneous purposes. We believe that our future cash flows from operations, together with cash on our balance sheet and proceeds from the borrowings under our Amended ABL Facility, will provide adequate resources to fund our debt service payments, asset retirement obligations, finance lease obligations, federal coal lease obligations, black lung obligations and planned operating and capital expenditure needs for at least the next twelve months and beyond. However, we will continue to assess our liquidity needs in light of the current weakness in steelmaking coal prices. 25 The Company's principal contractual commitments include repayments of long-term debt and related interest, potential minimum throughput payments associated with our rail and port providers, asset retirement obligation payments, black lung obligation payments, payments on various coal and land leases, including the federal coal lease obligations, and payments under financing lease obligations. Currently, there are no known trends or expected changes anticipated in future periods that would not be indicative of past results for our contractual commitments. Refer to the respective notes to our audited financial statements for the year ended December 31, 2025 included in our 2025 Annual Report for further information about our asset retirement obligations (Note 9), black lung obligations (Note 10), financing lease payment obligations (Note 11), federal coal leases (Note 12), credit facilities and long-term debt (Note 13), commitments and contingencies (Note 14), share repurchase programs (Note 17) and derivative instruments (Note 18). If our cash flows from operations are less than we require, we may need to incur additional debt or issue additional equity. From time to time, we may need to access the long-term and short-term capital markets to obtain financing. Our access to, and the availability of, financing on acceptable terms and conditions in the future will be affected by many factors, including: (i) our credit ratings, (ii) the liquidity of the overall capital markets, (iii) the current state of the global economy and (iv) restrictions in our Amended ABL Facility, the indenture governing the Notes (the "Indenture"), and any other existing or future debt agreements. There can be no assurance that we will have or continue to have access to the capital markets on terms acceptable to us or at all. Statements of Cash Flows Cash and cash equivalent balances were $302.3 million and $300.0 million at June 30, 2026 and December 31, 2025, respectively. The following table sets forth, a summary of the net cash (used in) provided by operating, investing and financing activities for the period (in thousands): For the six months ended June 30, 2026 2025 Net cash provided by operating activities $ 120,551 $ 48,463 Net cash used in investing activities (75,728 ) (172,097 ) Net cash (used in) provided by financing activities (42,310 ) 15,490 Net increase (decrease) in cash, cash equivalents and restricted cash $ 2,513 $ (108,144 ) Operating Activities Net cash flows from operating activities consist of net income (loss) adjusted for noncash items, such as depreciation and depletion of property, plant and equipment and mineral interests, deferred income tax expense (benefit), stock-based compensation expense, amortization of debt issuance costs and debt discount, accretion of asset retirement obligations, mark-to-market adjustments on gas hedges and changes in net working capital. The timing between the conversion of our billed and unbilled receivables into cash from our customers, production and sale of coal inventory and disbursements to our vendors is the primary driver of changes in our working capital. Net cash provided by operating activities was $120.6 million for the six months ended June 30, 2026, and was primarily attributed to a net income of $159.8 million adjusted for depreciation and depletion expense of $110.6 million, stock based compensation expense of $12.6 million, deferred income tax benefit of $6.4 million, accretion of asset retirement obligations of $2.2 million and amortization of debt issuance costs and debt discount of $0.8 million offset by an increase in our net working capital of $159.5 million. The increase in net working capital reflects higher accounts receivable due to higher sales volumes and the timing of sales, higher inventories due to higher production and lower accrued expenses due to timing of payments. Net cash provided by operating activities was $48.5 million for the six months ended June 30, 2025, and was primarily attributed to a net loss of $2.6 million adjusted for depreciation and depletion expense of $88.5 million, stock based compensation expense of $10.1 million, deferred income tax benefit of $3.3 million, accretion of asset retirement obligations of $2.7 million, amortization of debt issuance costs and debt discount of $0.8 million and mark-to-market loss on gas hedges of $0.4 million offset by an increase in our net working capital of $45.3 million. The increase in our working capital was primarily driven by increases in accounts receivable due to higher sales volumes and the timing of sales, lower accrued expenses and higher accounts payable. 26 Investing Activities Net cash used in investing activities was $75.7 million and $172.1 million for the six months ended June 30, 2026 and 2025, respectively, primarily due to purchases of property, plant and equipment and mine development offset partially by proceeds from the sale of short term investments. Financing Activities Net cash used in financing activities was $42.3 million for the six months ended June 30, 2026, primarily due to principal repayments of finance lease obligations of $18.6 million, payments for taxes related to net share settlement of equity awards of $14.8 million and payment of regular quarterly dividends of $9.0 million. Net cash provided by financing activities was $15.5 million for the six months ended June 30, 2025, primarily due to the receipt of proceeds on equipment financing for leases yet to commence of $48.8 million offset partially by payments for taxes related to net share settlement of equity awards of $9.4 million, payment of regular quarterly dividends of $9.4 million and principal repayments of finance lease obligations of $14.5 million. Capital Allocation Policy On May 17, 2017, the Board adopted the Capital Allocation Policy of paying a quarterly cash dividend of $0.05 per share. In February 2022, we announced that the Board approved an increase in the regular quarterly cash dividend by 20%, from $0.05 per share to $0.06 per share. In February 2023, we announced that the Board approved an increase in the regular quarterly cash dividend by 17%, from $0.06 per share to $0.07 per share. On February 9, 2024, we announced the Board approved an increase in the regular quarterly cash dividend by 14% from $0.07 per share to $0.08 per share and declared a special cash dividend of $0.50 per share. We intend on returning cash to stockholders in stronger price markets where we are generating significant amounts of cash flow, and less cash to stockholders during weaker markets. We also intend on using stock repurchases when there is no short- or long-term use for additional cash that will deliver meaningful value to stockholders. We have paid a regular quarterly cash dividend every quarter since the Board adopted the Capital Allocation Policy. The Capital Allocation Policy states the following: In addition to the regular quarterly dividend and to the extent that the Company generates excess cash that is beyond the then current requirements of the business, the Board may consider returning all or a portion of such excess cash to stockholders through a special dividend or implementation of a stock repurchase program. Any future dividends or stock repurchases will be at the discretion of the Board and subject to consideration of a number of factors, including business and market conditions, future financial performance and other strategic investment opportunities. The Company will also seek to optimize its capital structure to improve returns to stockholders while allowing flexibility for the Company to pursue selective strategic growth opportunities that can provide compelling stockholder returns. During the six months ended June 30, 2026, we paid $9.0 million of regular quarterly dividends under the Capital Allocation Policy. Regular Quarterly Dividend On February 11, 2025, our Board declared a regular quarterly cash dividend of $0.08 per share, which was paid March 3, 2025, to stockholders of record as of the close of business on February 24, 2025. On April 23, 2025, our Board declared a regular quarterly cash dividend of $0.08 per share, which was paid on May 12, 2025, to stockholders of record as of the close of business on May 5, 2025. On July 29, 2025, our Board declared a regular quarterly cash dividend of $0.08 per share, which was paid on August 15, 2025, to stockholders of record as of the close of business on August 8, 2025. On October 28, 2025, our Board declared a regular quarterly cash dividend of $0.08 per share, which was paid on November 14, 2025, to stockholders of record as of the close of business on November 7, 2025. On February 10, 2026, the Board declared a regular quarterly cash dividend of $0.08 per share, which was paid on March 2, 2026, to stockholders of record as of the close of business on February 23, 2026. On April 20, 2026, the Board declared a regular quarterly cash dividend of $0.08 per share, which was paid on May 7, 2026, to stockholders of record as of the close of business on May 1, 2026. 27 On July 28, 2026, the Board declared a regular quarterly cash dividend of $0.08 per share, which the Company plans to distribute on August 17, 2026, to stockholders of record as of the close of business on August 10, 2026. Amended ABL Facility On August 28, 2025, Warrior Met Coal, Inc. (the “Company”) entered into that certain First Amendment to Second Amended and Restated Asset-Based Revolving Credit Agreement (the “Amendment”), by and among the Company and certain of its subsidiaries, as borrowers, the guarantors party thereto, the lenders party thereto and Citibank, N.A. as administrative agent, which amends the Company's existing Second Amended and Restated Asset-Based Revolving Credit Agreement (the “credit facility”, and the credit facility as amended by the Amendment, the “Amended ABL Facility”). The Amendment, among other things, (i) increases the aggregate commitments available to be borrowed under the Amended ABL Facility by $27.0 million to $143.0 million; (ii) extends the maturity date of the credit facility to the earlier of (x) August 28, 2030 and (y) 91 days prior to the maturity date of the Company's 7.875% Senior Notes due 2028 (if such notes are still outstanding as of such date); and (iii) amends certain borrowing base calculations and other terms and provisions of the credit facility. As of June 30, 2026, no loans were outstanding under the Amended ABL Facility and there were $2.5 million of letters of credit issued and outstanding under the Amended ABL Facility. At June 30, 2026, we had $140.5 million of availability under the Amended ABL Facility. Revolving loan (and letter of credit) availability under the Amended ABL Facility is subject to a borrowing base, which at any time is equal to the sum of certain eligible billed and unbilled accounts receivable, certain eligible inventory, certain eligible supplies inventory and qualified cash, in each case, subject to specified advance rates. The borrowing base availability is subject to certain reserves, which may be established by the agent in its reasonable credit discretion. The reserves may include rent reserves, lower of cost or market reserves, port charges reserves and any other reserves that the Agent determines in its reasonable credit judgment to the extent such reserves relate to conditions that could reasonably be expected to have an adverse effect on the value of the collateral included in the borrowing base. Borrowings under the Amended ABL Facility bear interest at a rate equal to either (i) the Secured Overnight Financing Rate ("SOFR"), or (ii) an alternate base rate plus, in each case of the foregoing (i) and (ii), an applicable margin, which is determined based on the average availability of the commitments under the Amended ABL Facility, ranging currently from 150 bps to 200 bps or 50 bps to 100 bps, respectively. In addition to paying interest on the outstanding borrowings under the Amended ABL Facility, we are required to pay a fee in respect of unutilized commitments, which is based on the availability of the commitments under the Amended ABL Facility, ranging from 25 bps to 37.5 bps. We are also required to pay a fee on amounts available to be drawn under outstanding letters of credit under the Amended ABL Facility at a rate not in excess of 200 bps, and certain administrative fees. The Amended ABL Facility contains customary covenants for asset-based credit agreements of this type, including among other things: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence of certain indebtedness; (iii) restrictions on the existence or incurrence of certain liens; (iv) restrictions on making certain restricted payments; (v) restrictions on making certain investments; (vi) restrictions on certain mergers, consolidations and asset dispositions; (vii) restrictions on certain transactions with affiliates; and (viii) restrictions on modifications to certain indebtedness. Additionally, the Amended ABL Facility contains a springing fixed charge coverage ratio of not less than 1.00 to 1.00, which ratio is tested if availability under the Amended ABL Facility is less than a certain amount. As of June 30, 2026, we were not subject to this covenant. Subject to customary grace periods and notice requirements, the Amended ABL Facility also contains customary events of default. We were in compliance with all applicable covenants under the Amended ABL Facility as of June 30, 2026. Senior Secured Notes On December 6, 2021, we issued $350.0 million in aggregate principal amount of 7.875% senior secured notes due 2028 (the “Notes”) at an initial price of 99.3% of their face amount. The Notes were issued to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in transactions outside the United States in accordance with Regulation S under the Securities Act. We used the net proceeds of the offering of the Notes, together with cash on hand, to fund the redemption of all of our outstanding 8.00% senior secured notes due 2024 (the “Existing Notes”), including payment of the redemption premium in connection with such redemption. Since inception, the Company has paid down principal totaling $193.5 million on the Notes. Interest on the Notes is payable on June 1 and December 1 of each year, commencing on June 1, 2022. The Notes will mature on December 1, 2028. Capital Expenditures Our mining operations require investments to maintain, expand, upgrade or enhance our operations and to comply with environmental regulations. Maintaining and expanding mines and related infrastructure is capital intensive. Specifically, the exploration, 28 permitting and development of met coal reserves, mining costs, the maintenance of machinery and equipment and compliance with applicable laws and regulations require ongoing capital expenditures. The cost of our capital expenditures are also impacted by inflation and tariffs and any prolonged inflation and/or tariffs could result in higher costs and decreased margins and earnings. While a significant amount of the capital expenditures required at our mines has been spent, we must continue to invest capital to maintain our production. In addition, any decisions to increase production at our mines could also affect our capital needs or cause future capital expenditures to be higher than in the past and/or higher than our estimates. To fund our capital expenditures, we may be required to use cash from our operations, incur debt or sell equity securities. Our ability to obtain bank financing or our ability to access the capital markets for future equity or debt offerings may be limited by our financial condition at the time of any such financing or offering and the covenants in our current or future debt agreements, as well as by general economic conditions and uncertainties, that are beyond our control. Our capital expenditures were $109.1 million and $143.5 million for the six months ended June 30, 2026 and June 30, 2025, respectively. Capital expenditures for these periods are primarily related to investments required to finalize the development of Blue Creek as well as expenditures necessary to maintain our property, plant and equipment. Capital expenditures for the development of Blue Creek for the six months ended June 30, 2026 were $71.3 million and $1,028.1 million has been spent on this project to date. Our deferred mine development costs were $30.1 million for the six months ended June 30, 2025, and relate to the development of Blue Creek. Our capital spending is expected to range from $155.0 million to $190.0 million for the full year 2026, consisting of sustaining capital expenditures of approximately $105.0 to $115.0 million and discretionary capital expenditures of $71.3 million invested for the final construction of Blue Creek. Our sustaining capital expenditures include expenditures related to longwall operations and continuous miners. Critical Accounting Policies The financial statements are prepared in conformity with U.S. GAAP, which require the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses in the period presented. Management evaluates these estimates and assumptions on an ongoing basis, using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from management’s estimates. Our most critical accounting estimates are those that are most important to the presentation of our financial condition and results of operations and require management’s most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. These estimates are based upon management’s historical experience and on various other assumptions that we believe are reasonable under the circumstances. Changes in estimates used in these and other items could have a material impact on our financial statements. As of June 30, 2026, there have been no material changes to our critical accounting estimates as described in the "Critical Accounting Policies" in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2025 Annual Report. Off-Balance Sheet Arrangements In the ordinary course of our business, we are required to provide surety bonds and letters of credit to provide financial assurance for certain transactions and business activities. Federal and state laws require us to obtain surety bonds or other acceptable security to secure payment of certain long-term obligations including mine closure or reclamation costs and other miscellaneous obligations. As of June 30, 2026, we had outstanding surety bonds and letters of credit with parties for post-mining reclamation at all of our U.S. mining operations totaling $47.5 million, for collateral for self-insured black lung related claims totaling $18.6 million, for federal coal leases totaling $16.0 million and for miscellaneous purposes totaling $6.4 million. 29