AMR 10-K & 10-Q changes, risk factors and insider trading

•Risks relating to our industry and the global economy, such as those associated with declines inlow coal prices, loss of customers, tariffs and other trade restrictions, our ability to obtain financing and other services, competition, decreased demand for coal, customer creditworthiness and global economic disruptions.

•Risks relating to our operations, such as those associated with mining and other conditions, many of which are beyond our control, decreased demand for coal, disruptions in transportation services, the availability of skilled workers, higher than estimated employee benefit costs, the availability of coal reserves, equipment availability, equipment breakdown, higher than anticipated property reclamation or mine closure costs, unionization, cybersecurity, artificial intelligence, the complexity of mining in Central Appalachia, our dependence upon third parties and our ability to make capital investments.

Declines in coal prices and/or sustained low prices would adversely affect our revenues, operating results, cash flows, financial condition, stock price and the value of our coal reserves.

A period of sustained low demand for metallurgical coal (or “met coal”) by U.S. and foreign customers and the potential for negative trade impacts resulting from changing and unpredictable tariff policies could reduce the price of our coal, which would reduce our revenues.

Alpha produces coal that is sold directly to both U.S. and foreign customers and indirectly to foreign customers through U.S.-based companies. CoalFor the year ended December 31, 2025, coal export revenues accounted for approximately 78%73% of our coal revenues for the year ended December 31, 2024.revenues.

Met coal accounted for approximately 97% of our coal revenues forFor the year ended December 31, 2024.2025, met coal accounted for 96% of our coal revenues. Any deterioration in conditions in the U.S. or foreign steel industries, including the demand for steel and the continued financial viability of the industry, could reduce the demand for our met coal and could impact the collectability of our accounts receivable from U.S. or foreign steel industry customers.

The demand for foreign-produced steel both in foreign markets and in the U.S. market also depends substantially on other factors such as tariff rates on steel. For example, in 2018,March 2025, President Trump implemented tariffs, in addition to any existing special rates, on steel and aluminum pursuant to Section 232 of the U.S.Trade imposedExpansion tariffs on importsAct of steel mill products and a tariff on imports of wrought and unwrought aluminum.1962. These tariffs ledmay lead to generally higher rates of steel production in the U.S. and therefore greater domestic demand for met coal. However, Alpha’s export customers include foreign steel producers who may be markedly affected by these and similar tariffs to the extent their imports into the U.S. are curtailed as a result of tariffs. Retaliatory tariffs by foreign nations have already limited international trade and may adversely impact global economic conditions. Additional or augmented tariffs proposed and enacted under the new Trump administration could in turn provoke additional retaliatory tariffs.

In addition, the steel industry’s demand for met coal is affected by a number of factors, including the variable nature of that industry’s business, technological developments in the steel-making process and the availability of substitutes for steel, such as aluminum, composites and plastics. The U.S.North American steel industry increasingly relies on processes to make steel that do not use coke, such as electric arc furnaces or pulverized coal processes. As this trend continues, the amount of met coal that we sell and the prices that we receive for it in theNorth U.S.America could decrease, thereby reducing our revenues and adversely impacting our earnings and the value of our coal reserves. Lower demand for met coal in international markets for any reason would reduce the amount of met coal that we sell and the prices that we receive for it, thereby reducing our revenues and adversely impacting our earnings and the value of our coal reserves. Foreign government policies related to coal production and consumption could also negatively impact pricing and demand for our products.

Coal sales to our largest customer during the year ended December 31, 20242025 accounted for approximately 16%14% of our total revenues, and coal sales to our 10 largest customers accounted for approximately 75%77% of our total revenues. These customers could decide to discontinue purchasing coal from us in the volumes that they have previously purchased or decide not to purchase coal from us at all. If several of these customers were concurrently and significantly to reduce their purchases of coal, or if we were unable to sell coal to them on terms assufficiently favorable to us as previous sales,terms, we could face a significant reduction in sales while we attempt to sell the coal to other customers in the global marketplace. If such a concurrent loss of large customers or a significant reduction in our sales volume to customers were to happen, our revenues and profitability could be materially and adversely affected.

Coal is priced internationally in U.S. dollars, and, as a result, general economic conditions in foreign markets and changes in foreign currency exchange rates may provide our foreign competitors with a competitive advantage. If our competitors’ currencies decline against the U.S. dollar or against our foreign customers’ local currencies, those competitors may be able to offer lower prices for coal to customers. Furthermore, if the currencies of our overseas customers were to significantly decline in value in comparison to the U.S. dollar, those customers may seek decreased prices for the coal we sell to them. Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. SeeRefer to “Item 1. Business—Competition.” Similarly, currency fluctuations could adversely affect demand for U.S. steel.

The ongoing military conflictwar between Russia and Ukraine has resulted in substantial sanctions upon Russia and certain supply and market disruptions, particularly in energy markets. Many governments have banned imports from Russia, including commodities such as oil, natural gas and coal. These events have caused volatility in commodity markets. Although we have not experienced any distinct material adverse effect on our results of operations, financial condition or cash flows as a result of the war or the resulting volatility as of the date of this report, such volatility, including market expectations of potential changes in coal prices and inflationary pressures on steel products, may significantly affect prices for our coal or the cost of supplies and equipment, as well as the prices of competing sources of energy for our customers, like natural gas.

We incur substantial costs to comply with the laws, regulations and permits that apply to our mining and other operations and to address the outcome of inspections. The required compliance and actions to address inspection outcomes are often time consuming and costly and may delay commencement or continuation of exploration or production. In addition, due in part to the extensive and comprehensive regulatory requirements, violations of laws, regulations and permits occur at our operations from time to time and may result in significant costs to us to correct the violations, as well as substantial civil or criminal penalties and limitations or shutdowns of our operations. SeeRefer to “Item 1. Business—Environmental and Other Regulatory Matters—Clean Water Act—Wastewater Discharge.”

Proposed SEC GHG reporting rules have been stayed by federal courts and, under the new Trump administration, the SEC has determined not to defend the rules in court, but there can be no assurances that federal climate rules will not be enforced. California’s enactment of its own GHG reporting laws in October 2023 also suggests the possibility of inconsistent and/or duplicative future GHG reporting requirements, which would likely add to our operating costs.

Further, changes in tax laws may materially affect our results of operations and could cause our financial position and profitability to deteriorate. On August 16, 2022, legislation commonly referred to as the Inflation Reduction Act of 2022 (“IRA”) was signed into law. Among other provisions, the IRA enacted a 15% corporate alternative minimum tax and a 1% excise tax on repurchases of corporate stock for tax years beginning after December 31, 2022. InWe thehave fourth quarter of 2024, we paidaccrued a stock repurchase excise tax of $4.7 million$327 related to ourthe share repurchase program,program as of December 31, 2025, which wasis recorded in treasury stock at cost. Our income is taxable in the U.S., with a significant portion historically qualifying for preferential treatment as foreign-derived intangible income (“FDII”). If U.S. tax rates increase or the FDII deduction is eliminated or reduced our provision for income taxes, results of operations, net income, and cash flows could be adversely affected. Also, if our customers move manufacturing operations to the U.S., our FDII deduction may be reduced. Beginning in 2026, the FDII deduction will be reduced from 37.5% to 21.875% of FDII.

SMCRA establishes operational, reclamation and closure standards for all aspects of surface mining as well as deep mining. We accrue for the costs of current mine disturbance and final mine closure, including the cost of treating mine water discharge where necessary. Our estimated total reclamation and mine-closing liabilities were $219.7$227.4 million as of December 31, 2024,2025, based upon permit requirements, the historical experience at our operations and a number of variables involving assumptions and estimates. Total reclamation and mine-closing liabilities are, therefore, subject to change due to a variety of factors, including estimates of future asset retirement costs and the timing of these costs, estimates of proven reserves, assumptions involving profit margins of third-party contractors, inflation rates and discount rates. Our future operating results and financial position could be materially adversely affected by these factors. In addition, significant changes from period to period could result in significant variability in our operating results, which could reduce comparability between periods and impact our liquidity. SeeRefer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” for a description of our estimated costs of these liabilities.

Our profitability depends substantially on our ability to mine in a cost-effective manner coal reserves of the quality our customers need. Although we have coal reserves that we believe could support current production levels for more thanapproximately a decade, estimating the size and quality of reserves requires significant judgment and could prove to be inaccurate. We may not be able to mine all of our reserves as profitably as we do at our current operations. Under adverse market conditions, some reserves could not be mined profitably at all. In addition, in order to develop our reserves, we must receive various governmental permits. As discussed above, some of these permits are becoming increasingly more difficult and expensive to obtain, and the review process continues to lengthen. We may be unable to obtain the necessary permits on terms that would allow us to operate profitably or at all.

On October 27, 2023, we entered into a new Credit Agreement (the “ABL Agreement”). which was amended and extended on May 6, 2025. The ABL Agreement includes an asset-based revolving credit facility (the “ABL Facility”), which among other things, provides for the issuance of LCs.

Under the ABL Facility, we may borrow cash or obtain LCs, on a revolving basis, in an aggregate amount of up to $155.0$225.0 million. We may request an increase to the capacity of the facility of up to $75.0 million provided that $25.0 million may be solely for the purpose of providing additional availability to obtain cash collateralized LCs. Availability under the ABL Facility is calculated monthly and fluctuates based on qualifying amounts of coal inventory, trade accounts receivable and in certain circumstances specified amounts of cash. We must maintain minimum Liquidity, as defined in the ABL Agreement, of $75.0 million. The ABL Facility matures on OctoberMay 27,4, 2027.2029.

Federal and state laws require us to obtain surety bonds to secure payment of certain long-term obligations such as mine closure or reclamation costs, federal and state workers’ compensation costs (including related to black lung), coal leases and other obligations. These bonds are typically renewable annually. Under applicable regulations, self-bonding may not be available to us as a means to comply with our reclamation bonding obligations for the foreseeable future. Surety bond issuers and holders may not continue to renew the bonds, may demand less favorable terms upon renewal or may impose new or increased collateral requirements. As of December 31, 2024,2025, we had outstanding surety bonds with third parties of approximately$170.0 $182.8million, million.with $147.6 million related to active reclamation projects. Surety bond issuers and holders may demand additional collateral, unfavorable terms or higher fees. Our failure to retain, or inability to acquire, surety bonds or to provide a suitable alternative could adversely affect our ability to mine or lease coal, which would materially adversely affect our business and results of operations. That failure could result from a variety of factors, including lack of availability, higher expense or unfavorable market terms, the exercise by third-party surety bond issuers of their right to refuse to renew the surety bonds, restrictions on availability of collateral for current and future third-party surety bond issuers under the terms of any credit arrangements then in place, or our inability to comply with our reclamation bonding obligations through self-bonding. In addition, as a result of increasing credit pressures on the coal industry, it is possible that surety bond providers could demand cash collateral as a condition to providing or maintaining surety bonds. Any such demands, depending on the amount of any cash collateral required, could have a material adverse impact on our liquidity and financial position. If we are unable to meet cash collateral requirements and cannot otherwise obtain or retain required surety bonds, we may be unable to satisfy legal requirements necessary to conduct our mining operations.

The total authorization to repurchase the Company’sour stock under the existing common share repurchase program adopted by the Company’sour Board of Directors on March 4, 2022 is $1.5 billion. As of December 31, 2024,2025, $401.3$361.3 million of the originally authorized amount remained available for additional repurchases. This share repurchase program does not obligate us to repurchase any dollar amount or number of shares of our common stock and may be suspended or discontinued at any time, which could cause the market price of our common stock to decline.

Dividends on our common stock are only payable if declared by the Board and permitted by Delaware lawlaw, and we are not required to declare dividends at all.

The following discussion includes forward-looking statements about our business, financial condition and results of operations, including discussions about management’s expectations for our business. These statements represent projections, beliefs and expectations based on current circumstances and conditions and in light of recent events and trends, and you should not construe these statements either as assurances of performance or as promises of a given course of action. Instead, various known and unknown factors are likely to cause our actual performance and management’s actions to vary, and the results of these variances may be both material and adverse. SeeRefer to “Cautionary Statement Regarding Forward-Looking Statements” and “Item 1A. Risk Factors.”

Metallurgical coal prices experienced limitedvaried movementmovements throughoutacross the indices during the fourth quarter of 2024.2025. Of the four indices Alpha closely monitors, the Australian Premium Low Volatile index represents the largest move, aan reductionincrease of 4%.14.6%. The Australian Premium Low Volatile index fellincreased from $204.75$190.20 per metric ton on October 1, 2024,2025, to $196.50$218.00 per metric ton on December 31, 2024.2025. The U.S. East Coast Low Volatile index decreased slightlyrose from $189.00$177.00 per metric ton in October to $185.00 per metric ton by the end of December, an increase of 4.5%. By contrast, the U.S. East Coast High Volatile A index fell from $152.50 per metric ton at the beginning of the quarter to $188.00 per metric ton at quarter end. The U.S. East Coast High Volatile A index fell from $184.00 per metric ton in October to $183.00$150.50 per metric ton at the end of Decemberthe 2024,quarter, and the U.S. East Coast High Volatile B index openeddecreased andfrom closed the quarter at $171.00$144.50 per metric ton.ton to $144.20 per metric ton at the quarter’s close. Since then, all four indices have increased from their end-of-quarter levels. As of February 16, 2026, the Australian Premium Low Volatile decreased from quarter-close levelsincreased to $190.00$242.50 per metric ton,ton asfrom ofits Februaryquarter-close 17, 2025.level. The U.S. East Coast Low Volatile, High Volatile A, and High Volatile B indices measured $187.00,$198.00, $185.00,$160.00, and $171.00$150.00 per ton, respectively, as of the same date.

AccordingAs tocompiled by the World Steel Association,Association (“WSA”), the December 2024 global crude steel production ofin 144.5December 2025 reached 139.6 million metric tons from 7170 countriescountries, representedrepresenting ana increase3.7% of 5.6%decrease compared to December 2023.2024. China,The theworld’s largest steel-producing country, China, recorded the largest year-over-year percentage increasedecline inof Decemberthe production,top ten steel-producing countries, with its 76.0December 2025 production of 68.2 million metric tonstons, beingrepresenting 11.8%a higher10.3% thandecrease itsyear-over-year. DecemberThe 2023next levels.largest India’sproducer, steelIndia, productionrecorded was 13.614.8 million metric tons in December 2024,2025, up 9.5%10.1% from theits year-agoDecember period.2024 level. The United States produced 6.9 million metric tons of crude steel in December, representing a 3.6% increase from December 2024. Japan’s 6.96.6 million metric tons of steel produced in December 20242025 was down 1.1%4.8% comparedyear-over-year. to December 2023, andOf the Unitedtop States10 producedsteel-producing 6.7countries, Turkey experienced the largest year-over-year percentage increase, at 18.5%, with 3.5 million metric tons of crudesteel steelproduced in December, a 2.4% drop year-over-year. Of the top ten steel-producing countries, Iran posted the most significant percentage drop, as its 2.6 million metric tons of December 2024 production represented 8.2% less than the country produced a year ago.December. Regionally, in December 2024, crude steel production in the Asia and Oceania region, which contains both India and China, wasproduced 106.3 million metric tons, an increase of 9.0% compared to its December 2023 levels. The European Union’s December 2024 crude steel production of 9.699.7 million metric tons represented an increase of 7.2%crude steel in December 2025, a 6.3% decrease from its December 20232024. levels.The NorthEuropean AmericaUnion produced 8.89.9 million metric tons in December, 4.3%representing lessa than3.9% increase compared to the year-agosame period.period last year. North America’s December 2025 crude steel production was 9.0 million metric tons, down 0.4% from the December 2024 level.

The American Iron and Steel Institute’s capacity utilization rate for U.S. steel mills was 75.0%77.8% for the week ending February 15,14, 2025.2026. This is lowerup thanfrom the year-ago period when the capacity utilization rate was 77.7%.76.5%.

In the seaborne thermal market, the API2 index was $118.25$94.55 per metric ton onas of October 1, 2024,2025, and decreasedincreased to $113.15$96.90 per metric ton on December 31, 2024.2025.

We are a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, we are a leading supplier of metallurgical coal products to the steel industry. We operate high-quality, cost-competitive coal mines across the CAPP coal basin. As of December 31, 2024,2025, our operations consisted of twentynineteen active mines and eight active coal preparation and load-out facilities, with approximately 4,0403,960 employees. We produce, process, and sell met coal and thermal coal. We also sell coal produced by others, some of which is processed and/or blended with coal produced from our mines prior to resale, with the remainder purchased for resale. As of December 31, 2024,2025, we had 298.6294.5 million tons of reserves, which included 287.8282.8 million tons of proven and probable metallurgical reserves and 10.811.7 million tons of proven and probable thermal reserves.

On December 10, 2020, we closed on a transaction with Iron Senergy Holdings, LLC, to sell our thermal coal mining operations located in Pennsylvania consisting primarily of our Cumberland mining complex and related property (our former NAPP operations). TheThis disposition of our former NAPP operationstransaction accelerated our strategic exit from thermal coal production to shift our focus towardto met coal production.

TheAs Allof OtherDecember category31, included2025, ourwe formerhave CAPPone - Thermalreportable operating segment: which was comprised of our mining complexes which produced, as a primary product, thermal quality coal.Met. Refer to Notes 21 and 22 to the Consolidated Financial Statements for additional disclosures on our reportable segment, geographic areas, and export coal revenue information.

As discussed in the “Market Overview” presented above, metallurgical coal prices remain at lower levels than in recent years due to weak global steel demand which has been influenced by a slowdown in manufacturing activity,activity. economicEconomic pressures, geopolitical uncertainty, and geopoliticalshifting uncertainty.trade policies have contributed to metallurgical market challenges. Our results of operations for the year ended December 31, 20242025 were impacted by these factors. In November 2024, the Checkmate Powellton mine within the Elk Run mining complex was temporarily idled. This decision was driven by the recent decreases in coal prices, discussed above, and the current economic characteristics of the mine. From its idled state the mine could be returned to production if circumstances warrant. We will continue to evaluate market conditions and expect to adjust our operations accordingly.

OtherRecent Business Developments

In 2024, we began the development phase for our new Kingston Wildcat underground mine located in Fayette County, West Virginia. The mine, which will produce a Low-Vol. quality met coal, is expected to begin production late in 2025.the first quarter of 2026.

In 2023, we completed development of and commenced production began at our Rolling Thunder and Checkmate Powellton mines within our Power Mountain and Elk Run mining complexes, respectively, which produce High-Vol. B quality met coal from the Powellton coal seam.

In the first quarter of 2023, we completed a series of transactions to acquire a number of coal trucks and related equipment and facilities to secure trucking services for our operations. In December 2022, we purchased substantially all of the assets of a mining equipment component manufacturing and rebuild business to help secure the supply of certain underground mining equipment parts needed for our operations. Refer to Note 2 for additional information.

Our results of operations for the years ended December 31, 20242025 and 20232024 are discussed in these “Results of Operations” presented below. For comparability purposes, certain immaterial segment information for the year ended December 31, 2023 has been recast to conform to the current year presentation. Refer to Note 22.

Coal revenues. Coal revenues decreased $510.1$824.0 million, or 14.8%,28.0%, for the year ended December 31, 20242025 compared to the prior year period. The decrease was primarily due to a $460.119.3% million, or 13.5%, reductiondecline in coal revenues within our Met segment coupled with a $50.0 million reduction in All Other coal revenues due to the cessation of mining at our last thermal coal mine in August of 2023. The reduction in Met segment coal revenues was attributable to a 16.5% decrease inaverage coal sales realization peras tonmetallurgical coal pricing declined significantly as pricing decreased from the prior year period, partially offset by a 3.5%result increaseof inweakened coalglobal steel demand. Coal sales volumes.volumes also declined 10.8% due to weaker demand. Refer to the “Non-GAAP Coal revenues” section below for further detail on coal revenues for the year ended December 31, 20242025 compared to the prior year period.

Depreciation, depletion and amortization. Depreciation, depletion and amortization increased $30.5$7.2 million, or 22.3%,4.3%, for the year ended December 31, 20242025 compared to the prior year period. The increase was primarily due to an increase in assets placed in service duringthrough 2023December and 2024.2025.

Selling, general and administrative. Selling, general and administrative expenses decreased $8.4$13.8 million, or 10.2%,18.7%, for the year ended December 31, 20242025 compared to the prior year period. This decrease was primarily related to decreases of $8.7 million in stock compensation expense and $3.1$8.8 million in incentive pay,pay partiallyand offset by an increase of $1.5$2.0 million in severancewages pay.and benefits expenses.

Income Tax (Benefit) Expense

The following table summarizes information about our income tax (benefit) expense during the years ended December 31, 20242025 and 20232024:

Income tax expensebenefit of $123.5$25.8 million was recorded for the year ended December 31, 20232025 on incomea loss before income taxes of $845.5$87.5 million. The effective tax rate of 14.6%29.5% differs from the federal statutory rate of 21% primarily due to the permanent impact of percentage depletion, foreign-derivedstate intangibleincome income,taxes, net of federal impact, and the impact of stock compensation deductions,compensation, partially offset by the impact of non-deductible compensation and stateprovision-to-return income taxes, net of federal impact. Refer to Note 16 for additional information.adjustments.

The discussion below contains “non-GAAP financial measures.” These are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP” or “GAAP”). Specifically, we make use of the non-GAAP financial measures “Adjusted EBITDA,” “non-GAAP coal revenues,” “non-GAAP cost of coal sales,” and “non-GAAP coal margin.” In addition to net income,income (loss), we use Adjusted EBITDA to measure the operating performance of our reportable segment. Adjusted EBITDA does not purport to be an alternative to net income (loss) as a measure of operating performance or any other measure of operating results, financial performance, or liquidity presented in accordance with GAAP. Moreover, this measure is not calculated identically by all companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is presented because management believes it is a useful indicator of the financial performance of our coal operations. We use non-GAAP coal revenues to present coal revenues generated, excluding freight and handling fulfillment revenues. Non-GAAP coal sales realization per ton for our operations is calculated as non-GAAP coal revenues divided by tons sold. We use non-GAAP cost of coal sales to adjust cost of coal sales to remove freight and handling costs, depreciation, depletion and amortization - production (excluding the depreciation, depletion and amortization related to selling, general and administrative functions), accretion on asset retirement obligations, amortization of acquired intangibles, net, and idled and closed mine costs. Non-GAAP cost of coal sales per ton for our operations is calculated as non-GAAP cost of coal sales divided by tons sold. Non-GAAP coal margin per ton for our coal operations is calculated as non-GAAP coal sales realization per ton for our coal operations less non-GAAP cost of coal sales per ton for our coal operations. The presentation of these measures should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP.

Management uses non-GAAP financial measures to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The definition of these non-GAAP measures may be changed periodically by management to adjust for significant items important to an understanding of operating trends and to adjust for items that may not reflect the trend of future results by excluding transactions that are not indicative of our core operating performance. Furthermore, analogous measures are used by industry analysts to evaluate the Company’sour operating performance. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments and other factors.

Non-GAAP Coal revenuesrevenues. - Met. Met segment non-GAAPNon-GAAP coal revenues decreased $524.6$654.4 million, or 17.7%,26.8%, for the year ended December 31, 20242025 compared to the prior year period. The decrease was primarily due to a $36.74 per ton,$25.58, or 20.5%,17.9%, reductiondecline in non-GAAP coal sales realization per ton as weakerweakened global steel demand reduced metallurgical coal pricing,pricing. partiallyIn offset by a 3.5% increase inaddition, coal sales volumes.volumes declined 10.8% due to weaker demand.

The following tables present a reconciliation of net (loss) income to Adjusted EBITDA for the years ended December 31, 20242025 and 20232024:

Adjusted EBITDA decreased $625.4$285.9 million, or 60.5%,70.1%, for the year ended December 31, 20242025 compared to the prior year period. The decrease in Adjusted EBITDA wasperiod, primarily driven by a decrease in tons sold and decreased coal margin anddue to lower non-GAAP coal sales realization per ton in the current period.

Our primary sources of liquidity are derived from existing unrestricted cash balances, short-term investments, proceeds from future coal sales, and amounts available under our revolving credit agreement. Our primary capital resource requirements stem from the cost of our coal production and purchases, selling and administrative expenses, taxes, capital expenditures, debt service obligations, reclamation obligations, and collateral requirements. As of December 31, 2024,2025, we had $2.9$9.8 million of long-term indebtedness outstanding, net of current portion, and no indebtedness and $42.1$41.3 million letters of credit (“LC”) outstanding under our ABL Facility (as defined below).

We believe that cash on hand and cash generated from our operations will be sufficient to meet our working capital, anticipated capital expenditure, income tax, debt service, collateral and reclamation obligations requirements for the next 12 months and the reasonably foreseeable future. We may also use cash in accordance with our share repurchase program. We rely on a number of assumptions in budgeting for our future activities. These include the costs for mine development to sustain capacity of our operating mines, our cash flows from operations, effects of regulation and taxes by governmental agencies, mining technology improvements and reclamation costs. These assumptions are inherently subject to significant business, political, economic, regulatory, environmental and competitive uncertainties, pending and existing climate-related initiatives, contingencies and risks, all of which are difficult to predict and many of which are beyond our control. For example, if the new authorization process for all self-insured coal mine operators is adopted, it would substantially increase the collateral required to secure our self-insured federal black lung obligations. Refer to the “DCMWC Reauthorization Process” section below for more information. Increased scrutiny of ESG matters specific to the coal sector could negatively influence our ability to raise capital in the future and result in a reduced number of surety and insurance providers. We may need to raise additional funds if market conditions deteriorate, if one or more of our assumptions prove to be incorrect or if we choose to expand our acquisition or development efforts or any other activity more rapidly than we presently anticipate and we may not be able to do so in a timely fashion, on terms acceptable to us, or at all. Additionally, we may elect to raise additional funds before we need them if the conditions for raising capital are favorable. We may seek to sell equity or debt securities or obtain additional bank credit facilities. The sale of equity securities could result in dilution to our stockholders. The incurrence of additional indebtedness could result in increased fixed obligations and additional covenants that could restrict our operations.

(1) Comprised of our unused commitments available under our credit agreement entered into on October 27, 2023 that was amended and extended on May 6, 2025 (the “ABL Agreement”) after considering $42.1$41.3 million of outstanding LCs, subject to limitations described therein.

We are required to provide cash collateral to secure our obligations under certain worker’s compensation, black lung, reclamation-related obligations, financial payments and other performance obligations, and other operating agreements. Future regulatory changes relating to these obligations could result in increased obligations, additional costs, or additional collateral requirements which could require greater use of alternative sources of funding for this purpose, which would reduce our liquidity. Refer to the “DCMWC Reauthorization Process” section below for information related to the new authorization process for self-insured coal mine operators being implemented by the U.S. Department of Labor (Division of Coal Mine Workers’ Compensation). As of December 31, 2024,2025, we had the following cash collateral on our Consolidated Balance Sheets:

(1) The LCs outstanding are under the ABL Agreement dated October 27, 2023.Agreement.

Refer to Note 20, part (c), to the Consolidated Financial Statements for further disclosures on off-balance sheet arrangements.

Debt Financing and Related Transactions

(1) Includes contractual commitments related to capital expenditures and the purchase of diesel fuel, as well as rail freight and export terminal costs, including approximately $48.4$39.6 million in 20252026 for expected DTA funding. SeeRefer to “Business Updates” below for further discussion.

(1) The estimated undiscounted cash flows are expected to be paid from the defined benefit pension plan assets held within the defined benefit pension plan trust. Refer to Note 17 to the Consolidated Financial Statements for further disclosures related to this obligation.

On DecemberMarch 5,25, 2024,2025, S&PMoody’s GlobalInvestors RatingsService upgraded its issuer credit rating on the Company to BB- from B+ based on the strength ofassessed our balanceSenior sheet.Secured Bank Credit Facility with a B1/LGD4 Rating and maintained our B1 Corporate Family Rating and SGL-2 Speculative Grade Liquidity Rating. The rating outlook was noted as stable. On July 22, 2025, S&P Global Ratings maintained our BB- issuer credit rating and stable rating outlook. On December 10, 2025, Moody’s Investors Service affirmed our B1 rating on the ABL Facility, B1 Corporate Family Rating, and SGL-2 Speculative Grade Liquidity Rating and noted that the rating outlook remained stable. Should we receive any negative outlook ratings in the future, such negative outlook ratings would result in potential liquidity risks for us, including the risks of declines in our stock value, declines in our cash and cash equivalents, less availability and higher costs of additional credit, and requests for additional collateral by surety providers.

As a regular part of our business, we review opportunities for, and engage in discussions and negotiations concerning, the acquisition or disposition of coal mining and related infrastructure assets and interests in coal mining companies, and acquisitions or dispositions of, or combinations or other strategic transactions involvinginvolving, companies with coal mining or other energycomplementary assets. When we believe that these opportunities are consistent with our strategic plans and our acquisition or disposition criteria, we will make bids or proposals and/or enter into letters of intent and other similar agreements. These bids or proposals, which may be binding or non-binding, are customarily subject to a variety of conditions and usually permit us to terminate the discussions and any related agreement if, among other things, we are not satisfied with the results of due diligence. Any acquisition opportunities we pursue could materially affect our liquidity and capital resources and may require us to incur indebtedness, seek equity capital or both. There can be no assurance that additional financing will be available on terms acceptable to us, or at all.

During the year ended December 31, 2024,2025, we paid federal and state income taxestaxes, net of $12.1refunds million and received state income tax refundsreceived, of $3.8$2.1 million. Refer to Note 16 for further disclosures related to income taxes.

The following discussion and analysis provides a narrative of our results of operations and financial condition for the three and six months ended MarchJune 31,30, 2026 and 2025. The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our Consolidated Financial Statements and related notes and risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2025.

In the firstsecond quarter of 2026, metallurgical coal prices experienced positivelimited movements across the indices. Of the four indices Alpha closely monitors, the Australian Premium Low Volatile index represents the largest percentage move, with a 2.8% increase ofover 8.6%.the quarter. The Australian Premium Low Volatile index increased from $218.00 per metric ton on January 2, 2026, to $236.80 per metric ton on MarchApril 31,1, 2026, to $243.50 per metric ton on June 30, 2026. The U.S. East Coast Low Volatile index rosefell from $185.00 per metric ton in early January to $195.00 per metric ton by the end of March. The U.S. East Coast High Volatile A index increased from $150.50 per metric ton at the beginning of the quarter to $159.50$190.00 per metric ton at the quarter'squarter’s close,close. The U.S. East Coast High Volatile A index decreased from $159.50 per metric ton in early April to $157.00 per metric ton by the end of June, and the U.S. East Coast High Volatile B index increaseddecreased from $144.20$149.50 per metric ton to $149.50$147.00 per metric ton at the end of the quarter. Since then,the quarter close, the Australian Premium Low Volatile has decreased from its quarter-close level to $231.30$222.00 per metric ton as of AprilJuly 22, 2026. The U.S. East Coast Low Volatile, High Volatile A, and High Volatile B indices measured $192.00,$189.50, $159.00,$157.00, and $149.00$147.00 per ton, respectively, as of the same date.

The world manufacturing Purchasing Managers’ Index (“PMI”) postedregistered a MarchJune PMI of 51.3, representing52.2, a declinedecrease from February’sMay’s 44-month50-month high of 51.8.52.7. China’s June PMI fellposted a 3-month low of 51.7, down slightly from 52.151.8 in February to 50.8 in March.May. India, ana importantkey market for Alpha, recorded a PMI of 53.954.2 in March,June, downa decline from 56.9May’s in February.55.0. The United States’ MarchJune PMI rosefell to 52.353.9 from its FebruaryMay PMI of 51.6.55.1. Europe’s PMI increasedmeasured froma 50.84-month low of 51.4 in FebruaryJune, todown a 45-month high offrom 51.6 in March.May. Brazil’s MarchPMI increased above the 50.0 neutral mark in June at 50.8, up from May’s PMI wasof 49.0, rising from 47.3 in February.49.1.

AsThe compiledJune 2026 global crude steel production of 155.7 million metric tons from 70 countries, as reported by the World Steel Association ("“WSA"”), therepresents Marchan 2026increase globalof crude steel production reached 159.9 million metric tons1.7% from 69 countries, representing a decrease of 4.2% compared to MarchJune 2025. China, the world'sworld’s largest steel-producing country, produced 87.083.7 million metric tons in March,June, aan decreaseincrease of 6.3%0.4% fromcompared to the same period in 2025. Of the top 10 steel-producing countries, India experienced the largest year-over-year percentagean increase of 9.4%,4.5% year-over-year, with 15.314.1 million metric tons of steel produced in MarchJune 2026. The United States produced 7.2 million metric tons of crude steel in March,June, up 5.2%3.5% year-over-year.from June 2025. Japan’s 6.96.8 million metric tons of steel produced in MarchJune 2026 wasrepresents downa 4.1%1.3% increase from MarchJune 2025. Of the top 10 steel-producing countries, Vietnam experienced the largest year-over-year percentage increase of 27.5%, with 2.6 million metric tons of steel produced in June 2026. Russia recorded the largest percentage drop ofamong the top ten steel-producing countries, as its 5.45.6 million metric tons of Marchsteel 2025produced productionin representedJune 11.4%2026 represents 3.4% less than the countryit produced a year ago. Regionally, the Asia and Oceania region, which contains both India and China, produced 119.3115.2 million metric tons of crude steel in MarchJune 2026, a 3.9%1.5% decreaseincrease from MarchJune 2025. The European Union produced 11.410.8 million metric tons of steel in March,June, representing a 4.6% decreaseincrease compared to the same period last year.year-over-year. North America'sAmerica’s MarchJune 2026 crude steel production was 9.5 million metric tons, up 3.5%5.0% year-over-year.compared to the same period last year.

The American Iron and Steel Institute’s capacity utilization rate for U.S. steel mills was 80.0%79.3% for the week ending AprilJuly 18, 2026. This is up fromin comparison to the year-ago period when the capacity utilization rate was 75.0%.78.2%.

In the seaborne thermal market, the API2 index was $95.05$117.80 per metric ton on JanuaryApril 2,1, 2026, and increaseddecreased to $125.75$115.65 per metric ton on MarchJune 31,30, 2026.

We are a Tennessee-based mining company with operations in Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, we are a leading supplier of metallurgical coal products to the steel industry. We operate high-quality, cost-competitive met coal mines across the CAPP coal basin. As of MarchJune 31,30, 2026, our operations consisted of nineteentwenty-one active mines and eight active coal preparation and load-out facilities, with approximately 3,950 employees. We produce, process, and sell met coal and thermal coal as a byproduct. We also sell coal produced by others, some of which is processed and/or blended with coal produced from our mines prior to resale, with the remainder purchased for resale. As of December 31, 2025, we had 294.5 million tons of reserves, which included 282.8 million tons of proven and probable metallurgical reserves and 11.7 million tons of proven and probable thermal reserves.

Purchases of our met coal were made primarily in several countries in Asia, Europe, South America, and the northeastern and midwestern regions of the United States for purposes of steel production. Purchases of our thermal coal were made primarily for purposes of power generation and industrial uses both in the United States and across the world. For the three months ended March 31, 2026 and 2025 approximately 77% and 75%, respectively, of our coal revenues were derived from coal sales made to customers outside the United States.

As of MarchJune 31,30, 2026, we have one reportable segment: Met. Refer to Note 15 to the Condensed Consolidated Financial Statements for additional disclosures on reportable segments, geographic areas, and export coal revenue information.

As discussed in the “Market Overview” presented above, global economic conditions and uncertainty driven by geopolitical unrest are influencing factors in the metallurgical coal markets. Met coal prices continue to be negatively influencedrestrained by weak global steel demand as a result of a slowdown in manufacturing activity. Economic pressures, geopolitical unrest and uncertainty, shifting trade policies, and weather-related supply issues have contributed to metallurgical market challenges.demand. Our results of operations for the three and six months ended MarchJune 31,30, 2026 were impacted by these factors. Our guidance range for full-year sales volumes below reflects our current expectation for 2026. However, we continually monitor steel markets and metallurgical coal demand indicators and have the ability to adjust production levels to align with market conditions. Additionally, refer to “Liquidity and Capital Resources - Business Updates” for developments regarding a key piece of equipment, a stacker reclaimer machine at Dominion Terminal Associates (“DTA”), which sustained significant damage due to high winds from a storm as previously announced in June 2026.

Sales Agreements. We manage our commodity price risk for coal sales through the use of coal supply agreements. As of AprilJuly 29,30, 2026, we had sales commitments for 2026 as follows:

(1) Based on committed and priced coal shipments as of AprilJuly 29,30, 2026. Committed percentage based on the midpoint of shipment guidance range. Actual average per-ton realizations on committed and priced tons recognized in future periods may vary based on actual freight expense in future periods relative to assumed freight expense embedded in projected average per-ton realizations. Includes estimates of future coal shipments based upon contract terms and anticipated delivery schedules. Actual coal shipments may vary from these estimates.

Our results of operations for the three and six months ended MarchJune 31,30, 2026 and 2025 are discussed below.

Three Months Ended MarchJune 31,30, 2026 Compared to the Three Months Ended MarchJune 31,30, 2025

The following table summarizes information about our revenues during the three months ended MarchJune 31,30, 2026 and 2025:

Coal revenues. Coal revenues decreased $6.1$57.2 million, or 1.2%,10.4%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period. The decrease was primarily attributable to a 4.3%8.7% decline in coal sales volumes partiallydriven offsetlargely by areduced 3.3%levels increaseof purchased coal as well as delays in the timing of shipments related to planned equipment outages at DTA as part of its ongoing equipment and infrastructure upgrade program and slower rail service. Our average non-GAAP coal sales realization.realization Ourdecreased actions1.9% in 2025compared to reducethe coalprior productionyear levelsperiod at certain mining operations, combined with aas lower level of purchased coal, served to reduce primarily High-Vol. B quality met and thermal qualitymetallurgical coal sales volumes.volumes A resulting shiftresulted in product mix toward sales ofa relatively higher qualitypercentage coalsof servedlower-priced to increase our overall averagethermal coal sales realization.during the current period. Refer to the “Non-GAAP coal revenues” section below for further detail on coal revenues for the three months ended MarchJune 31,30, 2026 compared to the prior year period.

The following table summarizes information about our costs and expenses during the three months ended MarchJune 31,30, 2026 and 2025:

Cost of coal sales. Cost of coal sales decreased $30.2$36.3 million, or 6.0%,7.6%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period.period, Theprimarily decrease was attributablerelated to a 4.3%8.7% decrease in coal sales volumesvolumes. Compared with the prior year period, increases in labor and abenefits 1.7%costs declineas well as inflationary impacts on supply costs, including increases in ourcertain averagesupply costcosts of coal sales per ton. Our actions in 2025due to reducethe coalongoing productionconflict levelsbetween atthe certainU.S. higher-costand miningIran, operations,were combinedlargely withoffset by a lowerreduced level of relatively higher-cost purchased coal, served to reduce our coal sales volumes as well as our overall average cost of coal sales on a per ton basis. In addition, duringand the first quarterbenefit of 2026, we became eligible for the Internal Revenue Code (“IRC”) Section 45X tax creditcredit. (refer to Note 1Refer to the Condensed“Non-GAAP Consolidatedcost Financialof Statements)coal whichsales” generallysection providesbelow for afurther refundabledetail taxon credit equal to 2.5%cost of productioncoal costssales for metallurgical coal produced and sold during the period. For the three months ended MarchJune 31,30, 2026,2026 we recorded $7.2 million relatedcompared to the taxprior credityear as a reduction in cost of coal sales.period.

Depreciation, depletion and amortization. Depreciation, depletion and amortization decreased $4.0$8.8 million, or 9.1%,19.6%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period. The decrease was primarily due to certain assets reaching the end of their depreciable lives and becoming fully depreciated.

Selling, general and administrative. Selling, general and administrative expenses increased $1.2$2.0 million, or 7.6%,13.4%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period. This increase was primarily due to increases of $0.5$1.2 million in incentive pay, $0.3$0.6 million in wages and benefits expenses, and $0.2 million in stock compensation.

The following table summarizes information about our total other expense, net during the three months ended MarchJune 31,30, 2026 and 2025:

The following table summarizes information about our income tax benefit during the three months ended MarchJune 31,30, 2026 and 2025:

Income tax benefit of $5.3$6.6 million was recorded for the three months ended MarchJune 31,30, 2026 on a loss before income taxes of $16.4$18.8 million. The effective tax rate of 32.6%35.0% differs from the federal statutory rate of 21% primarily due to the permanent impact of percentage depletion, permanent impact of the IRC Section 45X tax credit (refer to Note 1 to our Condensed Consolidated Financial Statements), permanent impact of percentage depletion, and state income taxes, net of federal impact, partially offset by non-deductible compensation.

Income tax benefit of $11.4$1.2 million was recorded for the three months ended MarchJune 31,30, 2025 on a loss before income taxes of $45.4$6.2 million. Themillion.The effective tax rate of 25.220.1 % differs from the federal statutory rate of 21% primarily due to the change in valuation allowance, the permanent impact of percentage depletion, and stock compensation, partially offset by the impact of capital loss carryforward expirations and non-deductible compensation. Refer to Note 11 to the Condensed Consolidated Financial Statements for additional information.

The following tables summarizes certain financial information relating to our coal operations for the three months ended MarchJune 31,30, 2026 and 2025:

Non-GAAP cost of coal sales. Non-GAAP cost of coal sales decreased $26.4$23.1 million, or 6.4%,5.9%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period.period, Theprimarily decrease was attributablerelated to a 4.3%8.7% decrease in coal sales volumesvolumes. Compared with the prior year period, increases in labor and abenefits $2.36,costs oras 2.1%,well reductionas the inflationary impacts on supply costs, including increases in ourcertain averagesupply non-GAAPcosts cost of coal sales per ton. Our actions in 2025due to reducethe coalongoing productionconflict levelsbetween atthe certainU.S. higher-costand miningIran, operations,were combinedlargely withoffset by a lowerreduced level of relatively higher-cost purchased coal, served to reduce our coal salesand volumesthe as well as our overall average non-GAAP costbenefit of coalthe salesIRC onSection a45X pertax toncredit. basis. In addition, duringDuring the first quarter of 2026, we became eligible for the IRC Section 45X tax credit (refer to Note 1 to our Condensed Consolidated Financial Statements) which generally provides for a refundable tax credit equal to 2.5% of production costs for metallurgical coal produced and sold during the period. For the three months ended MarchJune 31,30, 2026, we recorded $7.2$7.1 million related to the tax credit as a reduction in non-GAAP cost of coal sales.

The following table presents a reconciliation of net loss to Adjusted EBITDA for the three months ended MarchJune 31,30, 2026 and 2025:

Adjusted EBITDA increaseddecreased $24.4$20.5 million, or 431.4%,44.5%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period, primarily driven by ana increaseddecrease in non-GAAP coal marginmargin, dueas todescribed lower cost of coal sales in the current period.above.