HCC · Warrior Met Coal, Inc.

Notes & Operating Detail

Balance Sheet & Liquidity

As of June 30, 2025, Warrior Met Coal held $383.3M in cash and cash equivalents, $47.8M in short-term investments, and $10.1M in long-term investments, for total liquidity of $441.2M. Total debt was $153.9M, consisting solely of Senior Secured Notes (net of discount). The ABL facility had no borrowings outstanding, with $113.5M of availability (net of $2.5M in letters of credit). Shareholders' equity stood at $2.08B, down slightly from $2.09B at year-end 2024. Inventory increased to $214.9M from $207.6M, driven by a rise in raw materials and supplies.

Commitments & Contractual Obligations

The Company has minimum throughput obligations under rail, barge, and port agreements, but no liability was recorded as of June 30, 2025. Finance lease obligations total $95.7M in undiscounted payments, with $81.8M recognized as liabilities. The Company also has royalty obligations on leased mineral reserves; royalty expenses were $41.2M for H1 2025. No material environmental or litigation accruals were recorded.

Capital Allocation (buybacks, dividends, debt, capex)

• Buybacks: The New Stock Repurchase Program authorizes up to $70.0M; $10.6M has been used to repurchase 500,000 shares, leaving $59.4M remaining.
• Dividends: Quarterly dividends of $0.08 per share were declared in Q1 and Q2 2025. Total dividends paid in H1 2025 were $9.4M, down from $36.2M in H1 2024 (which included a $0.50 special dividend).
• Debt: No new debt issued or repaid; total debt remained flat at $153.9M.
• Capex: Capital expenditures totaled $143.5M in H1 2025 (24.6% of sales), down from $210.7M in H1 2024. Mining segment capex was $141.2M.

Segment / Geographic Mix (if disclosed at note level)

The Company operates a single reportable segment: Mining, which includes Mine No. 4, Mine No. 7, and the Blue Creek mine (commenced revenue-generating activities in Q2 2025). For H1 2025, Mining segment revenue was $583.4M (down 34.3% YoY) and segment profit (Adjusted EBITDA) was $111.3M (down 67.4% YoY). The 'all other' category (natural gas and royalty) contributed $14.0M in revenue and $4.5M in depreciation. Customer concentration: Customer A and Customer F each exceeded 10% of Mining revenue in Q2 2025.

Cash Flow Quality

Cash Flow Quality

Operating cash flow (CFO) of $48.5M for H1 2025 was significantly lower than net loss of $2.6M, driven by large working capital outflows (accounts receivable +$26.6M, accrued expenses -$23.6M) and non-cash charges (depreciation $88.5M). The capex intensity was extreme, with $173.6M in capital spending, exceeding CFO by $125.1M, leading to a large free cash flow deficit. Financing activities provided $15.5M, primarily from equipment financing ($48.8M), offset by dividend payments ($9.4M) and lease repayments ($14.5M). The dividend payout ratio was negative given negative free cash flow. Compared to H1 2024, CFO declined 80.7% from $251.0M, while capex decreased 22.3% from $223.3M. The company relied on external financing and cash reserves to fund operations and investments.