v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information

Note 12. Segment Information

The Company generates revenue primarily through the production of steelmaking coal for sale to the steel industry. The Company also generates ancillary revenues from the sale of natural gas extracted as a byproduct from the underground coal mines and royalty revenues from leased properties.

The Company has one reportable segment identified as Mining which consists of: Mine No. 4, Mine No. 7 and the Blue Creek mine. The Company has determined that its natural gas and royalty businesses did not meet the criteria in ASC 280 to be considered as a reportable segment. Therefore, the Company has included their results in an “all other” category as a reconciling item to consolidated amounts.

The Company does not allocate all of its assets, or its depreciation and depletion expense, selling, general and administrative expenses, transactions costs, interest income (expense), and income tax expense (benefit) by segment.

The following tables include reconciliations of segment information to consolidated amounts (in thousands):

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Mining

 

$

503,594

 

 

$

288,491

 

 

$

952,063

 

 

$

583,424

 

All other

 

 

6,096

 

 

 

9,032

 

 

 

16,215

 

 

 

14,042

 

Total revenues

 

$

509,690

 

 

$

297,523

 

 

$

968,278

 

 

$

597,466

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

503,594

 

 

$

288,491

 

 

$

952,063

 

 

$

583,424

 

Cash cost of sales(1)

 

 

338,107

 

 

 

224,504

 

 

 

626,802

 

 

 

468,532

 

Other segment items(2)

 

 

1,939

 

 

 

1,908

 

 

 

3,662

 

 

 

3,615

 

Segment profit

 

$

163,548

 

 

$

62,079

 

 

$

321,599

 

 

$

111,277

 

 

 

 

 

 

 

 

 

 

 

 

 

Transportation and royalties

 

 

 

 

 

 

 

 

 

 

 

 

Mining

 

$

143,290

 

 

$

75,067

 

 

$

256,910

 

 

$

157,684

 

All other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total transportation and royalties

 

$

143,290

 

 

$

75,067

 

 

$

256,910

 

 

$

157,684

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Mining

 

$

2,740,774

 

 

$

2,288,119

 

 

$

2,740,774

 

 

$

2,288,119

 

All other

 

 

159,687

 

 

 

357,283

 

 

 

159,687

 

 

 

357,283

 

Total assets

 

$

2,900,461

 

 

$

2,645,402

 

 

$

2,900,461

 

 

$

2,645,402

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

 

 

 

 

 

 

 

 

 

 

Mining

 

$

56,453

 

 

$

41,014

 

 

$

106,643

 

 

$

84,005

 

All other

 

 

1,840

 

 

 

2,241

 

 

 

3,923

 

 

 

4,527

 

Total depreciation and depletion

 

$

58,293

 

 

$

43,255

 

 

$

110,566

 

 

$

88,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Mining

 

$

26,989

 

 

$

73,828

 

 

$

104,592

 

 

$

141,246

 

All other

 

 

1,934

 

 

 

1,138

 

 

 

4,460

 

 

 

2,230

 

Total capital expenditures

 

$

28,923

 

 

$

74,966

 

 

$

109,052

 

 

$

143,476

 

 

(1)
The significant expense category and amounts align with the segment-level information that is regularly reviewed by the CODM. Cash cost of sales includes transportation and royalties and excludes depreciation and depletion as presented above.
(2)
Other segment items include non-cash charges to cost of sales of asset retirement obligation accretion and valuation adjustments and stock compensation expense.

For the three and six months ended June 30, 2026 and 2025, the Company's Mining segment had revenues comprising greater than 10% from the following customers:

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

Customers(1)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Customer A

 

$

76,618

 

 

$

35,892

 

 

$

138,794

 

 

$

—

 

Customer B

 

 

62,536

 

 

 

—

 

 

 

113,095

 

 

 

—

 

Customer C

 

 

54,445

 

 

 

—

 

 

 

—

 

 

 

—

 

Customer D

 

 

52,033

 

 

 

—

 

 

 

—

 

 

 

—

 

Customer E

 

 

—

 

 

 

32,813

 

 

 

—

 

 

 

—

 

 

(1)
Customers with a zero did not trip the 10% quantitative threshold for that period.

The Company evaluates the performance of its segment based on Segment Adjusted EBITDA, which is defined as net income (loss) adjusted for other revenues; cost of other revenues; depreciation and depletion expense; selling, general and administrative expenses; interest income, net; income tax benefit (expense) and certain transactions or adjustments that the CODM does not consider for the purposes of making decisions to allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA should not be considered as an alternative to cost of sales under GAAP and may not be comparable to other similarly titled measures used by other companies. Below is a reconciliation of Segment Adjusted EBITDA to net income (loss), which is its most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands):

 

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Segment Adjusted EBITDA

 

$

163,548

 

 

$

62,079

 

 

$

321,599

 

 

$

111,277

 

Other revenues

 

 

6,096

 

 

 

9,032

 

 

 

16,215

 

 

 

14,042

 

Cost of other revenues

 

 

(7,033

)

 

 

(8,210

)

 

 

(15,363

)

 

 

(16,083

)

Depreciation and depletion

 

 

(58,293

)

 

 

(43,255

)

 

 

(110,566

)

 

 

(88,532

)

Selling, general and administrative

 

 

(9,797

)

 

 

(11,923

)

 

 

(37,996

)

 

 

(30,365

)

Interest (expense) income, net

 

 

(3,381

)

 

 

2,193

 

 

 

(3,965

)

 

 

5,379

 

Income tax (expense) benefit

 

 

(3,711

)

 

 

(4,310

)

 

 

(10,154

)

 

 

1,720

 

Net income (loss)

 

$

87,429

 

 

$

5,606

 

 

$

159,770

 

 

$

(2,562

)