Q2 2026 Warrior Met Coal Inc Earnings Call

August 5, 2026

Operator: Good afternoon. My name is Drew, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Met Coal Q2 2026 financial results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. This call is being recorded and will be available for replay on the company's website. I would now like to turn the call over to Brian Chopin, Chief Accounting Officer and Controller. Please go ahead.

Speaker #1: today. At this time, I would like to welcome everyone to the WARRIOR Q2 2026 Financial Results Conference call. At this time, all lines are in a listen-only mode. conduct a question-and-answer session.

Speaker #1: mode. Following the presentation, we will to turn the call over to Brian Chopin, Chief Accounting Officer and Controller. Please go ahead.

Speaker #2: Good afternoon, and welcome, everyone, to the Warrior Met Coal Q2 2026 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.

Brian Chopin: Good afternoon, and welcome everyone to Warrior's second quarter 2026 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 Q2 2026 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: 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 expected in our forward-looking statements.

Speaker #2: We do not undertake to update our forward-looking be materially different from those 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, and our Q2 press release furnished to the SEC on Form 8K, which is also posted on our website.

Brian Chopin: We'll also be discussing certain non-GAAP financial measures, which are defined and reconciled to comparable GAAP financial measures in our second quarter 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-Q for the quarter ended 30 June 2026 with the SEC this afternoon. You can find additional information regarding the company on our website at www.warriormetcoal.com, which also includes a second quarter supplemental slide deck that was posted this afternoon. 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'll be happy to answer any questions. With that, I will now turn the call over to Walt.

Speaker #2: Additionally, we will be following our Form 10-Q for the quarter ended June 30, 2026, with the SEC this afternoon. You can find additional information regarding the company on our website at www.warriormetcoal.com, which also 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'll be happy to answer any questions.

Speaker #2: With that, I will now turn the call over to Walt.

Speaker #3: Thanks, Brian. Hello, everyone, and thank you for taking the time to join us today to discuss our Q2 2026 results. I'll start by providing an overview of the quarter before Dale reviews our results and additional details.

Walt Scheller: Thanks, Brian. Hello, everyone, and thank you for taking the time to join us today to discuss our second quarter 2026 results. I'll start by providing an overview of the quarter before Dale reviews our results in additional detail. The second quarter marked a key inflection point as we clearly realized the incremental earnings and cash flow contributions of Blue Creek. We believe there's even more value to be realized as we work towards Blue Creek's full potential. This inflection point was characterized by significant margin expansion and generation of more than $103 million of free cash flow, which came as a result from record sales volumes, improved pricing, and a lower cost profile. These results brought free cash flow to +$11 million at the midpoint of the year.

Speaker #3: The Q2 marked a key inflection point as we clearly realized the incremental earnings and cash flow contributions of Blue Creek. And we believe there's even more value to be realized as we work towards Blue Creek's full potential.

Speaker #3: This inflection point was characterized by significant margin expansion and generation of more than $103 million of free cash flow, which came as a result of record sales volumes.

Speaker #3: Improved pricing, and a lower cost profile. These results brought free cash flow to a positive $11 million at the midpoint of the year. Now, as Blue Creek operational and our development spending complete, we've entered into the next phase of WARRIOR's growth.

Walt Scheller: Now with Blue Creek operational and our development spending complete, we've entered into the next phase of Warrior's growth, which is focused on free cash flow generation, balance sheet strength, and stockholder returns over the long term. Looking at our markets more broadly, the second quarter 2026 was characterized by the pockets of normalization of supply conditions following the weather-related disruptions observed earlier in the year. Despite these fluctuations, steel fundamentals remained relatively unchanged. The tragic mining incident in China in late May briefly tightened sentiment around domestic coking coal availability and resulted in additional safety inspections and higher domestic coking coal and coke prices. The impact of this sentiment shift was material and was clearly observed with the reopening of the arbitrage between the China CFR and Australian FOB indices, which had remained predominantly closed for over a year.

Speaker #3: Which is focused on free cash flow generation. Balance sheet strength and stockholder returns over the long term. Looking at our markets more broadly, the Q2 2026 was characterized by the pockets of normalization of supply conditions following the weather-related disruptions observed earlier in the year.

Speaker #3: Despite these fluctuations, steel fundamentals remained relatively unchanged. The tragic mining incident in China in late May briefly tightened sentiment around domestic coke and coal availability and resulted in additional safety inspections and higher domestic coke and coal and coke prices.

Speaker #3: The impact of this sentiment shift was material, and was clearly observed with the reopening of the arbitrage between the China CFR and Australian FOB indices.

Speaker #3: Which had remained predominantly closed for over a year. Demand from India continued to be resilient, but weak steel margins subdued Chinese buying activity, and continued pressure from Chinese steel exports prevented the broader market from developing stronger, with the expected benefits of protectionist measures not materializing.

Walt Scheller: Demand from India continued to be resilient, but weak steel margins subdued Chinese buying activity, and the continued pressure from Chinese steel exports prevented the broader market from developing stronger momentum. In Europe, we continued to see the expected benefits of protectionist measures materializing, but the recovery remains uneven and is not strong enough to offset weakness in other regions. Freight rates and their corresponding demurrage rates remained materially above their recent averages and as a result, had a negative impact on our average net selling price. The World Steel Association reported recently that global pig iron production declined during H1 2026 by 1.9% as compared to the same period last year. India continued to show growth with a 2.7% increase year-over-year, while China remained the primary source of weakness as the country continues to grapple with soft internal demand and weak steel margins.

Speaker #3: But the recovery remains uneven and is not strong enough to offset weakness and other reasons. Great rates and their corresponding demurrage rates remained materially above their recent averages and, as a result, had a negative impact on our average net selling price.

Speaker #3: The World Steel Association reported recently the global pig iron production declines during the first six months of 2026 by 1.9%. As compared to the same period last year.

Speaker #3: India continued to show growth, with a 2.7% increase year over year, while China remained the primary source of weakness as the country continues to grapple with soft internal demand and weak steel margins.

Speaker #3: This regional split remains consistent with the broader market narrative. With resilient demand in India and parts of Asia, offset by continued softness in China, and an uneven recovery across developed markets.

Walt Scheller: This regional split remains consistent with the broader market narrative, with resilient demand in India and parts of Asia offset by continued softness in China and an uneven recovery across developed markets. Our primary index, the PLV FOB Australia, remained well above the levels observed during most of 2025 and was relatively stable for Q2 2026 as compared to Q1. The index price averaged $216 per ton and was 29% or $49 per ton higher than Q2 2025. For the main secondary indices, the Australian LV HCC index and the CFR India LV HCC index prices increased in Q2 of this year compared to Q2 of last year to an average of $170 and $191 per short ton respectively. The Australian LV HCC index price was $40 per ton or 30% higher than Q2 of last year.

Speaker #3: Our primary index, the PLV FOB Australia, remained well above the levels observed during most of 2025 and was relatively stable for Q2 2026 as compared to the first quarter.

Speaker #3: The index price averaged $216 per ton and was 29%, or $49 per ton, higher than in Q2 2025. For the main secondary indices—the Australian LVHCC Index and the CFR India LVHCC Index—prices increased in Q2 of this year compared to Q2 of last year, to an average of $170 and $191 per short ton, respectively.

Speaker #3: The Australian LVHCC index price was $40 per ton or 30% higher than the Q2 of last year. And the CFR India LVHCC index price was $46 per ton or 32% higher than the Q2 2025.

Walt Scheller: The CFR India LVHCC index price was $46 per ton, or 32% higher than Q2 2025. As a result, the relativity of the Australian LVHCC index price to the Australian PLV index price increased from 78% for Q2 2025 to 79% for Q2 2026. In contrast to the Australian LVHCC and CFR India index prices, the average US East Coast HVA index price decreased $11 per ton, or 7%, in Q2 this year from Q2 of last year and averaged $143 per short ton. As a result, the relativity decreased from 92% for Q2 2025 to 66% for Q2 2026.

Speaker #3: As a result, the relativity of the Australian LVHCC Index price to the Australian PLV Index price increased from 78% for Q2 2025 to 79% for Q2 2026.

Speaker #3: In contrast to the Australian LVHCC and CFR India index prices, the average U.S. East Coast HVA index price decreased $11 per ton, or 7%, in the second quarter of this year from the second quarter of last year, and averaged $143 per short ton.

Speaker #3: As a result, the relativity decreased from 92% for Q2 2025 to 66% for Q2 2026. We continued to see a meaningful discount to the PLV price in each of the last five consecutive quarters in the Atlantic Basin, to the point where it has temporarily become more profitable to sell into the Pacific Basin, despite the higher freight rates.

Walt Scheller: We continue to see a meaningful discount to the PLV price each of the last five consecutive quarters in the Atlantic Basin, to the point where it has temporarily become more profitable to sell into the Pacific Basin despite the higher freight rates. Although we don't expect this to continue once the US East Coast HVA relativities return to normal levels. We achieved a gross price realization of 66% for Q2 of this year compared to 80% in Q2 2025. Our lower gross price realizations were driven by a combination of factors. First, our average main pricing indices for the PLV and LVHCC in the Pacific Basin have increased year-over-year for Q2, while the East Coast High Vol A index decreased in the Atlantic Basin.

Speaker #3: Although we don't expect this to continue once the US East Coast HVA relativities return to normal levels. We achieved a gross price realization of 66% for the Q2 of this year compared to 80% in the Q2 2025.

Speaker #3: Our lower gross price realizations were driven by a combination of factors. First, our average main pricing indices for the PLV and LVHCC in the Pacific Basin had increased year over year for Q2, while the East Coast High Vol A index decreased in the Atlantic Basin.

Speaker #3: Second, freight rates to Asia primarily India were about $13 per ton or 37% higher in the Q2 of 2026 than last year's Q2 and reduced our gross price realization.

Walt Scheller: Second, freight rates to Asia, primarily India, were about $13 per ton or 37% higher in Q2 2026 than last year's Q2 and reduced our gross price realization. Third, gross price realizations were lower due to a 21% higher mix of High Vol A products sold in Q2 of this year. As production from Blue Creek continues to increase, we expect our sales volume mix to become more weighted toward High Vol A products in the Pacific Basin destinations over time. This shift, along with the abnormally depressed second-tier relativities, is expected to naturally lower our gross price realizations. Despite this, we expect the increased weighing toward High Vol A products to drive margin expansion through the impact of the low-cost profile of Blue Creek on lowering our cash cost of sales.

Speaker #3: Third, gross price 21% higher mix of High Vol A products sold in the Q2 of this year. As production from Blue Creek continues to increase, we expect our sales volume mix to become more weighted toward High Vol A products and the Pacific Basin destinations over time.

Speaker #3: This shift along with the abnormally depressed second-tier relativities is expected to naturally lower our gross price realizations. Despite this, we expect the increased weighing toward High Vol A products to drive margin expansion through the impact of the low-cost profile of Blue Creek on lowering our cash cost of sales.

Speaker #3: Turning back to our financial results, for the fourth consecutive quarter, Warrior achieved record-high quarterly sales volume in Q2 of 3.7 million short tons, compared to 2.2 million in Q2 of 2025.

Walt Scheller: Turning back to our financial results, for the fourth consecutive quarter, Warrior achieved record high quarterly sales volume in Q2 of 3.7 million short tons compared to 2.2 million in the same quarter of 2025. This represents a 65% increase, primarily due to the additional sales volume from the Blue Creek mine. Our Q2 sales volume mix was 66% of High Vol A and 34% of Premium Low Vol. Our sales by geography for Q2 break down as follows: 50% into Asia, 35% into Europe, and 14% into South America. Our spot volume was 13% for Q2 2026. Sales volumes into the Pacific Basin were 50% this quarter compared to 52% in Q2 2025.

Speaker #3: This represents a 65% increase, primarily due to the additional sales volume from the Blue Creek mine. Our Q2 sales volume mix was 66% High Vol A and 34% premium low vol.

Speaker #3: Our sales by geography for the Q2 breakdown as follows: 50% into Asia, 35% into Europe, and 14% into South America. Our spot volume was 13% for the Q2 of 2026.

Speaker #3: Sales volumes into the Pacific Basin were 50% this quarter compared to 52% in the Q2 of 2025. Production volume in the Q2 of 2026 was 3.3 million short tons compared to 2.3 million in the Q2 of last year.

Walt Scheller: Production volume in Q2 2026 was 3.3 million short tons compared to 2.3 million in the same quarter of last year, representing a 45% increase. This increase reflects the significant contribution of Blue Creek. Our coal inventory levels decreased to 1.4 million short tons at the end of June this year compared to 1.9 million tons at the end of March 2026. We expect to continue driving our excess inventory downwards over the remainder of the year to maximize sales volume, profitability, and free cash flow. I'll now ask Dale to address our Q2 results in greater detail.

Speaker #3: Representing a 45% increase. This increase reflects a significant contribution of Blue Creek. Our coal inventory levels decreased to 1.4 million short tons at the end of June this year.

Speaker #3: Compared to 1.9 million tons at the end of March 2026. We expect to continue driving our excess inventory downwards over the remainder of the year to maximize sales volume, profitability, and free cash flow.

Speaker #3: I'll now ask Dale to address our Q2 results in greater detail.

Speaker #2: Thanks, Walt. We were pleased with our financial results for the Q2 of 2026, especially with our free cash flow generation. As Walt mentioned, the Q2 marked a key inflection point for our business.

Dale Boyles: Thanks, Walt. We were pleased with our financial results for Q2 2026, especially with our free cash flow generation. As Walt mentioned, Q2 marked a key inflection point for our business. With the Blue Creek construction CapEx behind us, and by using working capital to drive the higher sales and production volumes out of Blue Creek, we were able to generate significant free cash flow. Warrior recorded net income of $87 million, or $1.65 per diluted share in Q2 of this year, compared to net income of $6 million, or $0.11 per diluted share in the same quarter of 2025. We reported adjusted EBITDA of $157 million compared to $54 million in the same quarter of 2025, an increase of 193%.

Speaker #2: With the Blue Creek construction capex behind us and by using working capitals to drive the higher sales and production volumes out of Blue Creek, we were able to generate significant free cash flow.

Speaker #2: WARRIOR recorded net income of $87 million, or $1.65 per diluted share, in the second quarter of this year, compared to net income of $6 million, or $0.11 per diluted share, in the second quarter of 2025.

Speaker #2: We reported adjusted EBITDA of $157 million compared to $54 million in the Q2 of 2025. An increase of $193%. Our adjusted EBITDA margin improved to 31% in the Q2 of 2026 compared to 18% in the Q2 of last year.

Dale Boyles: Our adjusted EBITDA margin improved to 31% in Q2 2026 compared to 18% in the same quarter of 2025. On a per ton basis, our adjusted EBITDA margin improved by 78% to $43 per short ton for Q2 2026 compared to $24 in 2025's Q2. The primary drivers of these improvements were a 65% increase in sales volumes, a 6% increase in average net selling prices, and a 9% reduction in cash cost, reflecting the increasing contribution from our new Blue Creek mine. Total revenues were $510 million compared to $298 million in the same quarter of 2025. The total increase of $212 million was primarily due to the impact of higher sales volumes of $186 million and the impact of an increase in average gross selling prices of $73 million.

Speaker #2: On a per-ton basis, our adjusted EBITDA margin improved by 78% to $43 per short ton for the Q2 of 2026 compared to $24 in the last year's Q2.

Speaker #2: The primary drivers of these improvements were a 65% increase in sales volumes, a 6% increase in average net selling prices, and a 9% reduction in cash cost, reflecting the increasing contribution from our new Blue Creek mine.

Speaker #2: Total revenues were $510 million compared to $298 million in the Q2 of last year. The total increase of $212 million was primarily due to the impact of higher sales volumes of $186 million and the impact of an increase in average gross selling prices of $73 million.

Speaker #2: This was partially offset by the impact of a 21% higher mix of High Vol A tons sold, which had an impact on revenues of $40 million.

Dale Boyles: This was partially offset by the impact of a 21% higher mix of High Vol A tons sold, which had an impact on revenues of $40 million. In addition, the tonnage and other charges were $9 million higher compared to 2025's Q2. This resulted in an average net selling price of $138 per short ton in Q2 2026, compared to $130 in Q2 2025. Cash cost of sales were $338 million, or 67% of mining revenues in Q2 of this year, compared to $225 million, or 78% of mining revenues in Q2 2025.

Speaker #2: In addition, the merge and other charges were $9 million higher compared to last year's Q2. This resulted in an average net selling price of $138 per short ton in the Q2 of 2026 compared to $130 in the Q2 of last year.

Speaker #2: Cash cost of sales were $338 million or $67% of mining revenues in the Q2 of this year compared to $225 million or $78% of mining revenues in the Q2 of last year.

Speaker #2: Of the $113 million net increase in cash cost of sales, there was a $145 million increase in cost, which was attributed to the 65% increase in sales volumes and slightly higher variable transportation and multi-costs on the higher average steelmaking coal price indices.

Dale Boyles: Of the $113 million net increase in Cash cost of sales, there was $145 million increase in cost, which were attributed to the 65% increase in sales volumes and slightly higher variable transportation royalty cost on higher average steelmaking coal price indices. These higher costs were offset partially by $32 million of lower costs that were driven by the leverage of low-cost Blue Creek tons sold and the benefit from the 45X production credit. We have seen smaller amounts of inflation on various materials and supplies as we have previously discussed. However, it has not been aggregate to a material amount at this point in the year. Cash cost of sales per short ton FOB port was approximately $93 compared to $101 in the same quarter 2025. The 9% decrease was primarily related to the factors that I just mentioned on a dollar basis.

Speaker #2: These higher costs were offset partially by $32 million of lower cost that were driven by the leverage of low-cost Blue Creek tons sold and the benefit from the 45x production credit.

Speaker #2: We have seen smaller amounts of inflation on various materials and supplies, as we have previously discussed. However, it has not been aggregated to a material amount at this point in the year.

Speaker #2: Cash cost of sales per short ton, FOB port, was approximately $93 compared to $101 in Q2 last year. The 9% decrease was primarily related to the factors that I just mentioned on a dollar basis.

Speaker #2: Cash margins per short ton increased 57% to $45 in the Q2 from $29 in the Q2 of last year. While we have a higher mix of High Vol A product at lower US East Coast index prices than in previous periods, Blue Creek has created margin expansion with its inherently lower cost structure.

Dale Boyles: Cash margins per short ton increased 57% to $45 in Q2 from $29 in the same quarter of 2025. While we have a higher mix of High Vol A product at lower US East Coast index prices than in previous periods, Blue Creek has created margin expansion with its inherently lower cost structure. Our Q2 2026 SG&A expenses were $10 million and were $2 million lower than Q2 2025. This decrease was due to funds received from the old Walter Energy bankruptcy proceedings of $2 million during this year's Q2. Depreciation and depletion expenses were $58 million in Q2, which was 35% higher than Q2 2025, primarily due to the additional assets placed into service at Blue Creek and the higher sales volume in Q2 2026.

Speaker #2: Our Q2 of 2026 SG&A expenses were $10 million and were $2 million lower than the Q2 of 2025. This decrease was due to funds received from the Old Walter Energy bankruptcy proceedings of $2 million during this year's Q2.

Speaker #2: Depreciation and depletion expenses were $58 million in the Q2, which was 35% higher than the Q2 of 2025, primarily due to the additional assets placed into service at Blue Creek, and the higher sales volume in the Q2 of 2026.

Speaker #2: We recorded income tax expense of approximately $4 million on pre-tax income of $91 million in the Q2 of 2026. Our effective income tax rate varied from the statutory federal income tax rate of 21%, primarily due to tax benefits recognized for depletion expense, and a foreign-derived intangible income deduction, resulting in an effective income tax rate of 4%.

Dale Boyles: We recorded income tax expense of approximately $4 million on pre-tax income of $91 million in Q2 2026. Our effective income tax rate varied from the statutory federal income tax rate of 21%, primarily due to tax benefits recognized for depletion expense and a foreign-derived intangible income deduction, resulting in an effective income tax rate of 4%. Now let's turn to cash flows. Cash flows from operating activities were $132 million in Q2 2026 and were $95 million higher than the previous year's Q2, driven by the growth in revenue. Working capital increased by $14 million, primarily due to higher supplies inventory, higher prepaid expenses, lower accrued expenses, partially offset by favorable collections of accounts receivable. Free cash flow was $103 million due to $132 million of cash provided by operations, combined with cash used for capital expenditures of $29 million.

Speaker #2: Now, let us turn to cash flows. Cash flows from operating activities were $132 million in the Q2 of 2026 and were $95 million higher than the previous year's Q2, driven by the gross and revenue.

Speaker #2: Working capital increased by $14 million primarily due to higher supplies inventory, higher prepaid expenses, lower crude expenses, partially offset by favorable collections of accounts receivable.

Speaker #2: Free cash flow was $103 million due to $132 million of cash provided by operations combined with cash used for capital expenditures of $29 million.

Speaker #2: This Q2 result brought free cash flow to a positive $11 million for the first half of 2026, which was slightly better than we expected.

Dale Boyles: This Q2 result brought free cash flow to a +$11 million for H1 2026, which was slightly better than we expected. The inflection point in our free cash flow generation marks a significant turning point from strategic investment to future stockholder returns. We were pleased that we increased our cash and total liquidity while delivering higher profitability. Our total available liquidity at the end of Q2 was $453 million and consisted of cash and cash equivalents of $302 million, short-term investments of $10 million, and $141 million available under our ABL facility. Given the significant increase in adjusted EBITDA from Q1 2026, I want to highlight the primary drivers of this change. First, our sales volumes were 22% higher in Q2, positively impacted by an increase in tons sold from Blue Creek.

Speaker #2: The inflection point in our free cash flow generation marks a significant turning point from strategic investment to future stockholder returns. We were pleased that we increased our cash and total liquidity while delivering higher earnings and profitability.

Speaker #2: Our total available liquidity at the end of Q2 was $453 million, and consisted of cash and cash equivalents of $302 million, short-term investments of $10 million, and $141 million available under our ABL facility.

Speaker #2: Given the significant increase in adjusted EBITDA from the Q1 of 2026, I want to highlight the primary drivers of this change. First, our sales volumes were 22% higher in the Q2, possibly impacted by an increase in tons sold from Blue Creek.

Speaker #2: Second, the increase of Blue Creek tons sold had a positive impact on cash cost per ton, which were $3 lower in the Q2, primarily attributed to Blue Creek's inherently low cost structure.

Dale Boyles: Second, the increase of Blue Creek tons sold had a positive impact on cash cost per ton, which were $3 lower in Q2, primarily attributed to Blue Creek's inherently low cost structure. Third, our average net selling price decreased in Q2 by about $12 per ton or 8%. This was primarily due to a 5% higher mix of High Vol A volume sold, 11% more volume sold into the Atlantic Basin on lower US East Coast High Vol A prices, higher freight rates into the Pacific Basin due to the Iran conflict, and higher demurrage rates. Finally, cash usage from working capital requirements decreased from $146 million in Q1 to a usage of $14 million in Q2. This resulted in operating cash flows of $132 million, which was $144 million higher than Q1 2026.

Speaker #2: Third, our average net selling price decreased in the Q2 by about $12 per ton, or 8%. This was primarily due to a 5% higher mix of High Vol A volume sold, 11% more volume sold into the Atlantic basin on lower US East Coast High Vol A prices, higher freight rates into the Pacific basin due to the Iran conflict, and higher demurrage rates.

Speaker #2: And finally, cash usage from working capital requirements decreased from $146 million in the Q1 to a usage of $14 million in the Q2. This resulted in operating cash flows of $132 million which was $144 million higher than the Q1 of 2026.

Speaker #2: We were pleased to see that the positive factors significantly outweighed the negative factors. Finally, let me turn to our current outlook and guidance for the full year 2026, as detailed in our earnings release.

Dale Boyles: We were pleased to see the positive factors significantly outweigh the negative factors. Finally, let me turn to our current outlook and guidance for the full year 2026 as detailed in our earnings release. We have been pleased with the continued positive reception of the Blue Creek trial volumes and the adoption by our customers, which has surpassed our high expectations. As a result, the company is raising its sales and production volume guidance by a half million tons. This will increase Blue Creek sales volume to 5 million short tons for the full year, of which 90% is already under contract. As we noted in our Q1 earnings call, we continue to see inflationary cost pressures on a wide variety of materials and supplies such as steel roof supports, shear bits, and diesel fuel. Individually, each of these items is not material to our cost structure.

Speaker #2: We have been pleased with the continued positive reception of the Blue Creek trial volumes and the adoption by our customers. Which has surpassed our high expectations.

Speaker #2: As a result, the company is raising its sales and production volume guidance by a half million tons. This will increase Blue Creek's sales volume to $5 million short tons for the full year, of which 90% is already under contract.

Speaker #2: As we noted in our Q1 earnings call, we continued to see inflationary cost pressures on a wide variety of materials and supplies, such as steel roof supports, shear bits, and diesel fuel.

Speaker #2: Individually, each of these items is not material to our cost structure, however, the aggregation of broader inflation could become larger. While we have not been materially impacted by inflation so far this year, we believe the remainder of the year could see an increase of a few dollars per ton.

Dale Boyles: However, the aggregation of broader inflation could become larger. While we have not been materially impacted by inflation so far this year, we believe the remainder of the year could see an increase of a few dollars per ton. I'll now turn it back to Walt for his final comments.

Speaker #2: I'll now turn it back to Walt for his final comments.

Speaker #3: Thanks, Dale. WARRIOR continued its strong performance in the Q2. Our financial and operational results were better than expected, impacted in part by premium quality steelmaking coal prices being higher for a longer period of time.

Walt Scheller: Thanks, Dale. Warrior continued its strong performance in Q2. Our financial and operational results were better than expected, impacted in part by premium quality steelmaking coal prices being higher for a longer period of time. This strong H1 2026 supports our revised full-year outlook and guidance. Looking forward, we expect the market to remain sensitive to short-term supply disruptions, regional trade flows, and steel market conditions. While the premium segment remains relatively tighter than the broader steelmaking coal market, we do not believe that current steel fundamentals are strong enough to support a sustained return to the price momentum observed earlier in the year. We also expect to see improvements in the supply of Australian premium coals. We'll continue to monitor developments in China very closely, as any further actions from the government can easily sway the markets in either direction.

Speaker #3: This strong first half 2026 supports our revised full-year outlook and guidance. Looking forward, we expect the market to remain sensitive to short-term supply disruptions, regional trade flows, and steel market conditions.

Speaker #3: While the premium segment remains relatively tighter than the broader steelmaking coal market, we do not believe that current steel fundamentals are strong enough to support a sustained return to the price momentum observed earlier in the year.

Speaker #3: We also expect to see improvements in the supply of Australian premium coals. We'll continue to monitor developments in China very closely. As any further actions from the government can easily sway the markets in either direction.

Speaker #3: From a pricing perspective, we expect the PLV to remain above the depressed levels observed through most of 2025. But below the supply-driven highs experienced during the first half of 2026.

Walt Scheller: From a pricing perspective, we expect the PLV to remain above the depressed levels observed through most of 2025, but below the supply-driven highs experienced during H1 2026. The most likely outcome, in our view, is a lower range-bound market with periods of volatility driven by weather, logistics, geopolitical developments, and regional buying patterns. We also continue to expect that 2-tier indices will remain at depressed levels relative to the PLV, as observed for the past several quarters. This expectation could put pressure on our net selling prices, profitability, and free cash flow generation in H2 as compared to H1. We've been pleased with the reception of the product coming out of our new mine, as demonstrated by the successful trials and adoption by our customers.

Speaker #3: The most likely outcome in our view is a lower range-bound market with periods of volatility driven by weather, logistics, geopolitical developments, and regional buying patterns.

Speaker #3: We also continue to expect that second-tier indices will remain at depressed levels relative to the PLV, as observed for the past several quarters. This expectation could put pressure on our net selling prices profitability and free cash flow generation in the second half of the year as compared to the first half.

Speaker #3: We've been pleased with the reception of the product coming out of our new mine as demonstrated by the successful trials and adoption by our customers.

Speaker #3: As a result, we've been able to gain market share. Mostly with strategic customers that recognize our differentiated value proposition. This positive reception from our customers led to the increase in our full-year guidance volumes as Dale described earlier.

Walt Scheller: As a result, we've been able to gain market share, mostly with strategic customers that recognize our differentiated value proposition. This positive reception from our customers led to the increase in our full-year guidance volumes, as Dale described earlier. We believe similar opportunities will continue to present themselves, especially as we approach the contract season later this year. Most importantly, Warrior has the tools to continue to drive value creation for our stockholders by continuing to execute our strategy to optimize production, control our costs, and generate free cash flow. With our high-quality assets and low 1st quartile cost structure, we're as well-positioned as we've ever been to thrive in a wide range of steelmaking coal environments. With that, we'd like to open the call for questions. Operator?

Speaker #3: We believe similar opportunities will continue to present themselves, especially as we approach the contract season later this year. Most importantly, Warrior has the tools to continue to drive value creation for our stockholders by continuing to execute our strategy to optimize production, control our costs, and generate free cash flow.

Speaker #3: With our high-quality assets, and low first quartile cost structure, we're as well positioned as we've ever been to thrive in a wide range of steelmaking coal environments.

Speaker #3: With that, we'd like to open the call for questions. Operator?

Speaker #4: Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Nick Giles with B. Riley Securities. Please go ahead.

Speaker #4: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster.

Speaker #4: The first question comes from Nick Giles, with B. Reilly Securities. Please go ahead.

Speaker #5: Yeah, thank you, Operator. Guys, congrats on another strong quarter. Maybe just a first clarification. Can you provide a breakdown of shipments across each individual mine specifically, Blue Creek?

Nick Giles: Yeah. Thank you, operator. Guys, congrats on another strong quarter. Maybe just a first clarification. Can you provide a breakdown of shipments across each individual mine, specifically Blue Creek?

Speaker #3: No, we don't get into that much detail. We just haven't done that.

Walt Scheller: No. We don't get into that much detail. We just haven't done that.

Speaker #5: Okay. Understood. Maybe just on realizations, they continue to be under pressure. You mentioned the volatility around freight rates. Should we kind of expect more of the same from a relativity perspective in 3Q, and then kind of how much volume could you look to maybe shift to the Atlantic Basin where freight rates may be less volatile?

Nick Giles: Okay. Understood. Maybe just on realizations, they continue to be under pressure. You mentioned the volatility around freight rates. Should we expect more of the same from a relativity perspective in Q3? How much volume could you look to maybe shift to the Atlantic Basin where freight rates may be less volatile?

Walt Scheller: I think you're going to see a continuation of where we've been year to date. I don't expect a great deal of fluctuation there. I do think with the low vol price coming down, it wouldn't surprise me to see the relativities close back up and see us sitting at where the High Vol A price stays a little more steady than the low vol price as it comes down. That's just speculation on my part.

Speaker #3: I think you're going to see kind of a continuation of where we've been year to date. I don't expect a great deal of fluctuation there.

Speaker #3: I do think with the low vol price coming down, it wouldn't surprise me to see the relativities close back up and see us sitting at where the high vol A price kind of stays a little more steady than the low vol prices it comes down.

Speaker #3: That's just speculation on my part.

Speaker #2: Yeah, and as far as shifting shipments to one basin to the other, that really depends on customer demand. And when they want their shipments, because as we said, 90% of our volume this year is under contract.

Dale Boyles: As far as shifting shipments to one basin to the other, that really depends on customer demand, and when they want their shipments, because as we said, 90% of our volume this year is under contract. When they want it is when they want it. We can't really dictate that.

Speaker #2: And when they want it is when they want it. We can't really dictate that.

Speaker #5: No, understood. No, that's helpful. Maybe just, Dale, one for you on shareholder returns. I mean, free cash flow in the quarter was very strong.

Nick Giles: Understood. That's helpful. Maybe just, Dale, one for you on shareholder returns. Free cash flow in the quarter was very strong. Are you getting to a point where you're ready to increase shareholder returns, or would you prefer to build a higher cash balance in the H2?

Speaker #5: Are you getting to a point where you're ready to kind of increase shareholder returns, or would you prefer to build kind of a higher cash balance in the second half

Speaker #2: Yeah, I think so. Even with prices declining as they have in our recent weeks, I do think we're going to start to really see strong cash flow generation, which means or should mean higher returns to shareholders.

Dale Boyles: I think so. Even with prices declining as they have in the recent weeks, I do think we're going to start to really see strong cash flow generation, which means, or should mean, higher returns to shareholders. We're going to have to generate that cash first and see where we go from there.

Speaker #2: We're going to have to generate that cash first. And see where we go from there.

Speaker #5: Awesome. Well, guys, I appreciate the update. I'll turn it over for now, but continued best of luck.

Nick Giles: Awesome. Well, guys, I appreciate the update. I'll turn it over for now, continued best of luck.

Speaker #3: Thank you.

Walt Scheller: Thank you.

Speaker #4: Thank you. The next question comes from George Edy, with UBS. Please go ahead.

Operator: Thank you. The next question comes from George Eadie with UBS. Please go ahead.

Speaker #6: Yeah, good evening. Jen Scritt's stuff this quarter. Dale, can we just quantify that a bit more? What is the ideal sort of steady state cash level?

George Eadie: Good evening, gents. Great stuff this quarter. Dale, can we just quantify that a bit more? What is the ideal steady state cash level? Is it $400? Is that a good estimate? Secondly, can you also remind me the state of potential buybacks in NOLs as well, please?

Speaker #6: Is it 400? Is that a good estimate? And then secondly, can you also remind me the state of potential buybacks and NOLs as well, please?

Speaker #3: Yeah, cash, we like to see

Dale Boyles: Yeah. Cash, we like to see in a range of $350 to $400 million. Total liquidity of around $500 million in total. The status of the NOLs, well, we utilized all the NOLs on the federal side back in 2023, I believe it is, and all we have now is state NOLs, and we still have $900 million of those approximately. But those are. We don't pay any Alabama tax, so I'm not sure we'll be able to use a lot of those NOLs in the future. As far as buybacks, that's one of the options that we have, one of the levers we have in providing returns to shareholders. As we get to that point when we're looking at future returns, we'll give that a consideration.

Speaker #2: is in a range of 350 to 400 million. So a total of total liquidity of around 500 million in total. The status of the NOLs well, we utilized all the NOLs on the federal side back in 2023, I believe it is.

Speaker #2: And all we have now is state NOLs. And we still have 900 million of those approximately. But those are we don't pay any Alabama tax, so I'm not sure we'll be able to use a lot of those NOLs in the future.

Speaker #2: As far as buybacks, that's one of the options. And we have one of the levers we have in providing returns to shareholders. And as we get to that point when we're looking at future returns, we'll give that a consideration.

Speaker #6: Okay, yeah. Thanks, guys. Thanks, Dale. And just on sort of Walt's comments earlier about the pricing dynamic, what are the things you're watching specifically in the market to see high vol A, prices, return to a higher level relative to the Queensland benchmark price structurally on a sort of medium-term view?

George Eadie: Okay. Yeah. Thanks, guys. Thanks, Dale. Just on Walt's comments earlier about the pricing dynamic, what are the things you're watching specifically in the market to see High Vol A prices return to a higher level relative to the Queensland benchmark price structurally on a sort of medium term view?

Speaker #3: I just think that high vol A prices are where they are in the Atlantic Basin because of the volume of high vol A available.

Walt Scheller: I just think that High Vol A prices are where they are in the Atlantic Basin because of the volume of High Vol A available. I think they've disconnected from the low vol price, and as the low vol price begins to retreat, I'm not sure. Again, it's just speculation on my part. I'm not sure that the High Vol A price in the Atlantic Basin will retreat in equal amounts. That's why we closed the relativities up potentially.

Speaker #3: And I think they've disconnected from the low vol price. And as the low vol price begins to retreat, I'm not sure. Again, it's just speculation on my part.

Speaker #3: I'm not sure that the high vol A price in the Atlantic Basin will retreat in equal amounts. So that's what we close the relativities up potentially.

Speaker #6: Okay. So, we need to see supply coming out of high vol, essentially. Is that the answer, you think, or what?

George Eadie: Okay. We need to see supply coming out of high vol essentially is the answer you think, Walt?

Speaker #3: I think that's the final answer, yes.

Walt Scheller: I think that's the final answer, yes.

Speaker #6: All right. Thanks, Jen. Great stuff.

George Eadie: All right. Thanks, gents. Great stuff.

Speaker #2: Thanks, George.

Dale Boyles: Thanks, George.

Speaker #4: Thank you. The next question comes from Katya Janic, with BMO Capital Markets. Please go ahead.

Operator: Thank you. The next question comes from Katja Jancic with BMO Capital Markets. Please go ahead.

Speaker #7: Hi. Thank you for taking my question. Maybe on the cost side. So the performance year to date has been very good. And when we look at your cost target, it does imply a more material increase in cost in second half.

Katja Jancic: Hi. Thank you for taking my question. Maybe on the cost side. The performance year to date has been very good, and when we look at your cost target, it does imply a more material increase in cost in the second half. I know, Dale, you mentioned that there are inflationary pressures, but at the same time, those have not been material. Can you maybe talk about what met coal prices do you assume in the second half specifically that would contribute to maybe higher costs? Or how should we think what the main moving pieces on the cost side are?

Speaker #7: And I know, Dale, you mentioned that there are inflationary pressures, but at the same time, those have not been material. So can you maybe talk about what medical prices do you assume in the second half specifically that would contribute to maybe higher cost?

Speaker #7: Or how should we think what are the main moving pieces on the cost side are?

Speaker #2: Well, you talked about some inflation, but we're pretty near the bottom end of our range already. So we're 93 year to date versus 95 on the bottom.

Dale Boyles: Well, you talked about some inflation, but we're pretty near the bottom end of our range already. We're $93 year to date versus $95 on the bottom. I don't see that as different. The higher number is, yes, based on some higher estimates on pricing, over $200 for a PLV. We baked in some inflation into that number and just provide some cushion for anything that might happen in the second half of the year.

Speaker #2: So I don't see that as different. So in the higher number is, yes, based on some higher estimates on pricing. Well, over 200 for a PLV.

Speaker #2: So we baked in some inflation into that number. And just provide some cushion for anything that might happen in the second half of the year.

Speaker #7: Maybe looking beyond this year on the capex side, can you just remind us what the maintenance capex or how should we think about capex over the next few years?

Katja Jancic: Maybe looking beyond this year on the CapEx side, can you just remind us what the maintenance CapEx, or how should we think about CapEx over the next few years?

Speaker #2: Well, for this year, it was 105 to 115 million is our guide for this year, for the existing mines. And that excluded Blue Creek.

Dale Boyles: Well, for this year, it was $105 to 115 million is our guide for this year for the existing mines. That excluded Blue Creek, you probably need to add another $25 to 30 for that. You're looking at $130 to 150-ish on a recurring basis. Broad range.

Speaker #2: So you probably need to add another 25 to 30 for that. So you're looking at 130 to 150-ish on a recurring basis. Broad range.

Speaker #7: Thank you.

Katja Jancic: Thank you.

Speaker #2: Thank you.

Dale Boyles: Thank you.

Speaker #4: Thank you. The next question comes from Nathan Martin, with the benchmark company. Please go ahead.

Operator: Thank you. The next question comes from Nathan Martin with The Benchmark Company. Please go ahead.

Speaker #1: Yeah, thanks, operator. Good afternoon, guys. Just sticking with the cost per ton for a moment. Some of your peers have talked about elevated diesel prices.

Nathan Martin: Hey, thanks, operator. Good afternoon, guys. Just sticking with the cost per ton for a moment. Some of your peers have talked about elevated diesel prices. Do you guys expect those to impact your operations at all in the back half of the year?

Speaker #1: Do you guys expect those to impact your operations at all in the back half of the year?

Speaker #2: Minimal agree, but not a significant amount. We don't use a lot of diesel. So we don't truck a lot of coal. And what we do truck, we could also ship by rail.

Dale Boyles: Minimal.

Dale Boyles: Minimal. I agree. Not a significant amount. We don't use a lot of diesel. We don't truck a lot of coal. What we do truck, we could also ship by rail. We have optionality there. We just don't typically use a significant amount of diesel.

Walt Scheller: I agree. Not a significant amount. We don't use a lot of diesel. We don't truck a lot of coal. What we do truck, we could also ship by rail. We have optionality there. We just don't typically use a significant amount of diesel.

Speaker #2: So we have optionality there. So but we just don't typically use a significant amount of diesel. But as I said in my prepared remarks, look, when you add them all up, you can see a few dollars a ton when it all adds up between steel prices, and other chemicals, all kinds of things.

Dale Boyles: As I said in my prepared remarks, look, when you add them all up, you could see a few dollars a ton when it all adds up, between steel prices and other chemicals, all kinds of things.

Speaker #1: Got it. Dale, appreciate that. Secondly, could we maybe get a few details around the reported electrical outage at the Portamobile? Any lingering effects there for you guys?

Nathan Martin: Got it, Dale. Appreciate that. Secondly, could we maybe get a few details around the reported electrical outage at the Port of Mobile? Any lingering effects there for you guys?

Speaker #2: No, no lingering effects. We saw it for a few days. I mean, it's really that time of the year where between storms and other things, we expect some outages down there.

Walt Scheller: No. No lingering effects. We saw it for a few days. It's really that time of the year where between storms and other things, we expect some outages down there, and we just managed to have one down there from an electrical standpoint for a few days. No, we don't expect any lingering effects.

Speaker #2: And we just manage to have one down there from an electrical standpoint for a few days. But no, we don't expect any lingering effects.

Speaker #1: All right. Good to hear, Walt. Thank you. And then maybe finally, related to your long-haul moves that all look like one might have shifted from the second quarter into the third quarter, could we get some details around which mines the remaining long-haul moves are occurring at in the various quarters?

Nathan Martin: All right. Good to hear, Walt. Thank you. Maybe finally, related to your Longwall moves, this all looked like one might have shifted from Q2 into Q3. Could we get some details around which mines the remaining Longwall moves are occurring at in the various quarters?

Speaker #2: Well, I think when we look at our long-haul moves, given the number of sets of shields we have, we've worked very hard to make sure we continue to have zero-day long-haul moves.

Walt Scheller: Well, I think when we look at our Longwall moves, given the number of sets of shields we have, we've worked very hard to make sure we continue to have zero-day Longwall moves. I think impact from Longwall moves will be minimal, if any, throughout the rest of the year.

Speaker #2: So I think impact from long-haul moves will be minimal if any throughout the rest of the year.

Speaker #1: All right. Got it. Great. That's all I had left. Very helpful. Appreciate the time.

Nathan Martin: All right. Got it. Great. That's all I had left. Very helpful. Appreciate the time.

Speaker #2: Thank you.

Walt Scheller: Thank you.

Speaker #4: Thank you. The next question comes from Alex Hacking, with Citi. Please go ahead.

Operator: Thank you. The next question comes from Alex Hacking with Citi. Please go ahead.

Speaker #3: Yeah, thanks. I just had one question on the Rail A price. I guess I didn't quite follow the prepared remarks. The price was down $12 quarter-on-quarter.

Alex Hacking: Yeah. Thanks. I just had one question on the realized price. I guess I didn't quite follow the prepared remarks. The price was down $12 quarter on quarter. Indexes were flat-ish. Obviously freight to the Pacific basin was quite a bit higher, but your mix was tilted more towards the Atlantic basin. That seems neutral-ish. I guess, what am I missing as to understand the quarterly decline in the realized price? Thanks.

Speaker #3: Indexes were flat-ish. I mean, I think obviously freight to the Pacific Basin was quite a bit higher, but you're also your mix was tilted more towards the Atlantic Basin.

Speaker #3: So that seems almost neutral-ish. So I guess what am I missing as to the understand the quarterly decline in the rail A price? Thanks.

Speaker #2: Yeah. Well, first, we did have higher volumes. Okay. So but let me see. Looking at the change here, the biggest one was 10% more volume went into Europe versus the first quarter.

Dale Boyles: Yeah. Well, first, we did have higher volumes, okay? Let me see, looking at the change here. The biggest one was 10% more volume went into Europe versus Q1. As we said in our prepared remarks, those prices were lower, US East Coast prices, because they were down when you look at the quarter. We had less going into Asia of about 10%. Asia still, those freight rates were much, much higher.

Speaker #2: And as we said in our prepared remarks, those prices were lower US East Coast prices because they were down. When you look at the quarter, so we had less going into Asia of about 10%.

Speaker #2: But Asia — those prices, those freight rates, were much, much higher. They averaged about $10 a ton higher in the second quarter versus the first quarter.

Alex Hacking: Okay.

Dale Boyles: They averaged about almost $10 a ton higher in Q2 versus Q1.

Speaker #3: Okay. I got it. Thanks.

Alex Hacking: Okay, I got it. Thanks.

Dale Boyles: Thank you.

Speaker #2: Thank you.

Speaker #4: Thank you again. If you have a question, please press star, then one. The next question comes from Chris Lefebvre with Jefferies. Please go ahead.

Operator: Thank you. Again, if you have a question, please press star then one. The next question comes from Chris LaFemina with Jefferies. Please go ahead.

Speaker #6: Hey, guys. Thanks for taking my question. So I want to ask on the cost performance in the quarter and on the cost guidance. So first, in the cost for the quarter, how much of the reduction from the year-ago period was due to 45X tax credits?

Chris LaFemina: Hey, guys. Thanks for taking my question. I want to ask on the cost performance in the quarter and on the cost guidance. First, in the cost for the quarter, how much of the reduction from the year ago period was due to 45X tax credits? Have you disclosed what the tax credit was in the Q2? I apologize if I missed that.

Speaker #6: Have you disclosed what the tax credit was in the second quarter? I apologize if I missed that.

Speaker #2: Yeah, it was about $3 a ton, Chris. Somewhere around $9.

Dale Boyles: Yeah, it was about $3 a ton, Chris.

Chris LaFemina: That was the delta? The delta from last year to this year was $3 a ton?

Speaker #6: That was a delta? The delta from last year to this year was $3 a ton?

Speaker #2: Yes, $3 a ton. That's correct.

Dale Boyles: Yes, $3 a ton. That's correct.

Speaker #6: And then thank you for that. And then secondly, on the lower cost high end of the cost guidance for the year, I assume that's because the higher sales volume is incremental tons that come from Blue Creek, which is lower cost.

Chris LaFemina: Thank you for that. Secondly, on the lower cost, high end of the cost guidance for the year, I assume that's because the higher sales volume is incremental tons that come from Blue Creek, which is lower cost. Is that why the high end of the cost guidance range has been lowered?

Speaker #6: Is that why the high end of the cost guidance range has been lowered?

Speaker #2: Yes. That's right.

Dale Boyles: Yes, that's right.

Speaker #6: So, you said of the 13 to 14 million tons of expected sales this year, 5 million would be from Blue Creek, and it would have been 4.5 before.

Chris LaFemina: You said of the 13 to 14 million tons of expected sales this year, 5 million would be from Blue Creek, and it would've been 4.5 before. Is that correct?

Speaker #6: Is that correct?

Speaker #2: That's correct. And 90% of that is contract.

Dale Boyles: That's correct. 90% of that is contracted.

Speaker #6: Perfect. Thank you so much. I appreciate that.

Chris LaFemina: Perfect. Thank you so much. I appreciate that.

Speaker #2: All right. Thank you, Chris.

Dale Boyles: All right. Thank you, Chris.

Speaker #4: Thank you. And we have a follow-up from Nick Giles with B. Riley Securities. Please go ahead.

Operator: Thank you. We have a follow-up from Nick Giles with B. Riley Securities. Please go ahead.

Speaker #5: Thanks for taking my follow-up. Just given the success you've had in contracting Blue Creek tons thus far, at the expense of stating the obvious that the market remains weak, what would prevent you from moving up to the targeted 6 million-ton run rate sooner than expected or is that still the right kind of target run rate to have in mind as we think about 2027 and beyond?

Nick Giles: Thanks for taking my follow-up. Just given the success you've had in contracting Blue Creek tons thus far, at the expense of stating the obvious that the market remains weak, what would prevent you from moving up to the targeted 6 million tons run rate sooner than expected? Is that still the right kind of target run rate to have in mind as we think about 2027 and beyond?

Speaker #2: Well, I think I still think we're going to try to maximize the production out of that mine. And it's just a matter of getting the people in line and getting the everything worked to where we want it.

Walt Scheller: I still think we're going to try to maximize the production out of that mine. It's just a matter of getting the people in line and getting everything worked to where we want it. Then we will absolutely maximize the production coming out of that mine.

Speaker #2: And then we will absolutely maximize the production coming out of that mine.

Speaker #5: Got it. And maybe, Walt, just on that point, can you just kind of give us an update on where things stand from a hiring perspective?

Nick Giles: Got it. Maybe, Walt, just on that point, can you just give us an update on where things stand from a hiring perspective?

Walt Scheller: Right now, we're staffed to run 4 continuous miner units in Longwall, which is where we wanted to be. We have some openings. We're still trying to fill jobs, we're feeling pretty good about where we're staffed right now.

Speaker #2: Right now, we're staffed to run four continuous miner units. And long-haul, which is where we wanted to be, we are we have some openings.

Speaker #2: We're still trying to fill jobs. But we're feeling pretty good about where we're staffed right now.

Speaker #5: Got it. Okay. Well, thanks again, guys.

Nick Giles: Got it. Okay. Well, thanks again, guys.

Speaker #2: Thank you.

Walt Scheller: Thank you.

Speaker #3: Thank you.

Speaker #4: Thank you. At this time, there are no further questions. I will now turn the call back over to Mr. Scheller for any comments.

Operator: Thank you. At this time, there are no further questions. I will now turn the call back over to Mr. Scheller for any comments.

Speaker #3: That concludes our call this afternoon. Thank you again for joining us today. And we appreciate your interest in WARRIOR.

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

Operator: Thank you. Again, that concludes today's conference. Thank you all for participating. You may now disconnect.

Q2 2026 Warrior Met Coal Inc Earnings Call

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