v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information

Note 21—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 segments. 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 by segment.

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

 

 

For the year ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Revenues

 

 

 

 

 

 

 

 

 

Mining

 

$

1,277,024

 

 

$

1,499,980

 

 

$

1,647,992

 

All other

 

 

33,019

 

 

 

25,240

 

 

 

28,633

 

Total revenues

 

$

1,310,043

 

 

$

1,525,220

 

 

$

1,676,625

 

 

 

 

 

 

 

 

 

 

 

Segment profit

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,277,024

 

 

$

1,499,980

 

 

$

1,647,992

 

Cash cost of sales(1)

 

 

975,384

 

 

 

999,188

 

 

 

904,319

 

Other segment items(2)

 

 

7,017

 

 

 

8,109

 

 

 

5,950

 

Segment profit

 

$

294,623

 

 

$

492,683

 

 

$

737,723

 

 

 

 

 

 

 

 

 

 

 

Transportation and royalties

 

 

 

 

 

 

 

 

 

Mining

 

$

333,042

 

 

$

367,059

 

 

$

367,949

 

All other

 

 

—

 

 

 

—

 

 

 

263

 

Total transportation and royalties

 

$

333,042

 

 

$

367,059

 

 

$

368,212

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Mining

 

$

2,632,118

 

 

$

2,456,973

 

 

$

2,220,771

 

All other

 

 

151,681

 

 

 

134,543

 

 

 

136,287

 

Total assets

 

$

2,783,799

 

 

$

2,591,516

 

 

$

2,357,058

 

 

 

 

 

 

 

 

 

 

 

Depreciation and depletion

 

 

 

 

 

 

 

 

 

Mining

 

$

180,067

 

 

$

145,229

 

 

$

120,192

 

All other

 

 

8,498

 

 

 

8,753

 

 

 

7,164

 

Total depreciation and depletion

 

$

188,565

 

 

$

153,982

 

 

$

127,356

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

Mining

 

$

315,258

 

 

$

450,713

 

 

$

484,730

 

All other

 

 

5,003

 

 

 

6,508

 

 

 

6,944

 

Total capital expenditures

 

$

320,261

 

 

$

457,221

 

 

$

491,674

 

 

(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 years ended December 31, 2025, 2024, and 2023 the Company's Mining segment had revenues comprising greater than 10% from the following customers:

 

 

For the year ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Customer A

 

$

154,167

 

 

$

—

 

 

$

—

 

Customer B

 

 

—

 

 

 

190,138

 

 

 

205,699

 

Customer C

 

 

—

 

 

 

190,811

 

 

 

—

 

Customer D

 

 

—

 

 

 

178,087

 

 

 

246,443

 

Customer E

 

 

—

 

 

 

—

 

 

 

195,283

 

 

•
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 adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative, business interruption, loss on early extinguishment of debt, other (expense) income, interest income, interest expense, 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, which is its most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands):

 

 

For the year ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Segment Adjusted EBITDA

 

$

294,623

 

 

$

492,683

 

 

$

737,723

 

Other revenues

 

 

33,019

 

 

 

25,240

 

 

 

28,633

 

Cost of other revenues

 

 

(27,668

)

 

 

(45,449

)

 

 

(37,486

)

Depreciation and depletion

 

 

(188,565

)

 

 

(153,982

)

 

 

(127,356

)

Selling, general and administrative

 

 

(65,681

)

 

 

(63,078

)

 

 

(51,817

)

Business interruption

 

 

(19

)

 

 

(524

)

 

 

(8,291

)

Loss on early extinguishment of debt

 

 

—

 

 

 

—

 

 

 

(11,699

)

Other (expense) income

 

 

—

 

 

 

—

 

 

 

(1,027

)

Interest income

 

 

18,477

 

 

 

33,047

 

 

 

40,699

 

Interest expense

 

 

(9,742

)

 

 

(4,271

)

 

 

(17,960

)

Income before income taxes

 

 

54,444

 

 

 

283,666

 

 

 

551,419

 

Income tax benefit (expense)

 

 

2,554

 

 

 

(33,063

)

 

 

(72,790

)

Net income

 

$

56,998

 

 

$

250,603

 

 

$

478,629