v3.26.1
LEASES
12 Months Ended
Dec. 31, 2025
LEASES  
LEASES

NOTE 7—LEASES

The Company has various finance leases for mining equipment, which generally include 3-5 year terms and expire through 2030. In addition, we have two operating leases for office space with initial terms of approximately five and six years that run through 2027 and 2030, respectively, including the office space in Charleston, WV that commenced in the first quarter of 2024 resulting in the recognition of an additional right-of-use asset and lease liability of approximately $1.0 million.

Amortization of right-of-use assets associated with finance leases was $7.8 million, $10.4 million, and $8.5 million in 2025, 2024, and 2023, respectively, as discussed in Note 3. Interest expense recognized for financing lease liabilities was $1.5 million, $0.9 million, and $0.6 million in 2025, 2024, and 2023, respectively. Operating lease expense was $0.4 million, $0.4 million, and $0.2 million in 2025, 2024, and 2023, respectively.

Right-of-use assets and lease liabilities are determined as the present value of the lease payments, discounted using either the implicit interest rate in the lease or, more commonly, our estimated incremental borrowing rate based on similar terms, payments and the economic environment where the leased asset is located. Below is a summary of our leases:

(In thousands)

Classification

December 31, 2025

December 31, 2024

Right-of-use assets

Financing

Financing lease right-of-use assets, net

$

15,763

$

12,437

Operating

Other assets

1,115

1,324

Total right-of-use assets

$

16,878

$

13,761

Current lease liabilities

Financing

Current portion of financing lease obligations

$

7,281

$

6,218

Operating

Accrued liabilities

355

290

Non-current lease liabilities

Financing

Long-term financing lease obligations

$

10,184

$

7,517

Operating

Other long-term liabilities

787

1,091

Total lease liabilities

$

18,607

$

15,116

Minimum lease payments for our lease obligations are as follows:

December 31, 2025

(In thousands)

  ​ ​ ​

Financing

  ​ ​ ​

Operating

  ​ ​ ​

Total

Future minimum lease payments:

2026

$

7,725

$

421

$

8,146

2027

5,851

405

6,256

2028

3,036

225

3,261

2029

2,122

226

2,348

2030

354

31

385

Thereafter

Total undiscounted lease payments

19,088

1,308

20,396

Less: Amounts representing interest

(1,623)

(166)

(1,789)

Present value of lease obligations

$

17,465

$

1,142

$

18,607

Weighted average remaining term (years)

3.0

3.1

Weighted average discount rate

7.5%

6.7%

Coal Leases and Associated Royalty Commitments—Leases of mineral reserves and related land leases are exempt from the lease accounting requirements addressed above. Refer to Note 9 for information regarding coal leases and associated royalty commitments.