Mohnish Pabrai’s Dalal Street LLC reported an equity portfolio of approximately $402 million in the latest quarter, maintaining its signature high-conviction, concentrated value investing approach. The portfolio remains heavily focused on a small group of cyclical commodity and energy services companies, particularly coal producers and offshore drilling firms — areas where Pabrai has historically sought asymmetric upside tied to industry cycles and capital scarcity.The latest filing suggests selective posit ...

Warrior ended the year with coal inventories of 1.6 million short tons, up from 1.1 million tons at the end of September, which management attributed to the early Blue Creek longwall start-up. Given expectations for continued weak market conditions in 2026, the company said it plans to begin 2026 with Blue Creek production of about 4.5 million short tons and sell down excess inventory before ramping higher in line with additional contractual volumes.For full-year 2025, Warrior reported record sales volume o ...

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You can find additional information regarding the company on our website at www.warriormetcoal.com, which also includes a fourth quarter supplemental slide deck that was posted this afternoon. Today, on the call with me are Mr. Walter J. Scheller, Chief Executive Officer, and Mr. Dale W. Boyles, Chief Financial Officer. After our formal remarks, we will be happy to answer any questions. With that, I will now turn the call over to Walter J. Scheller. Thanks, Brian. Hello, everyone, and thank you for taking t ...

Financial Data and Key Metrics Changes - Warrior reported a record high quarterly sales volume of 2.9 million short tons in Q4 2025, a 53% increase compared to 1.9 million tons in Q4 2024 [14] - Total sales volume for 2025 reached 9.6 million short tons, a 21% increase year-over-year, while production volume was 10.2 million short tons, a 24% increase from 2024 [6][7] - Adjusted EBITDA for Q4 2025 was $93 million, a 31% increase from Q3 2025, and a 75% increase from $53 million in Q4 2024 [21][23] - Net income for Q4 2025 was $23 million, or $0.44 per diluted share, compared to $1 million or $0.02 per diluted share in Q4 2024 [23] Business Line Data and Key Metrics Changes - Blue Creek mine began longwall operations in Q4 2025, contributing 1.3 million tons to production, exceeding expectations [15][16] - Mine No. 4 set a new record high output for both sales and production volume, continuing its strong performance [7] - Cash costs per ton decreased to approximately $94 in Q4 2025 from $120 in the same quarter last year, reflecting lower overall spending and the contribution of low-cost Blue Creek tons [27] Market Data and Key Metrics Changes - The PLV FOB Australia index averaged $182 per short ton in Q4 2025, a 9% increase from Q3 2025 [9] - Chinese steel export volumes for 2025 reached a record high of 119 million metric tons, a 7.2% increase year-over-year, while crude steel production decreased by 4.4% [8] - The average East Coast HVA index price decreased by $6 per ton, or 4%, in Q4 2025 compared to Q3 2025 [10][11] Company Strategy and Development Direction - Warrior aims to reduce coal inventory levels to just below 1 million tons while ramping up production in line with contractual volumes [35] - The company plans to spend the remaining construction CapEx of $50-$75 million on the Blue Creek project in Q1 2026 [33] - Warrior's strategy includes maintaining a strong liquidity position while focusing on shareholder returns post-Blue Creek ramp-up [89] Management's Comments on Operating Environment and Future Outlook - Management expects steelmaking coal markets to remain consistent with 2025 levels, entering 2026 from a position of strength with higher contracted volumes and record production capacity [32] - The company anticipates total sales and production volumes to be significantly higher in 2026 due to the early start of Blue Creek longwall operations [32] - Management expressed cautious optimism regarding pricing, noting that recent disruptions in supply chains may be temporary [36] Other Important Information - Warrior's total available liquidity at the end of Q4 2025 was $484 million, consisting of cash and cash equivalents of $300 million, short-term investments of $43 million, and $141 million available under the ABL Facility [31] - The company achieved double-digit volume growth in both sales and production for the full year 2025, despite weak market conditions for steelmaking coal [6][19] Q&A Session Summary Question: What is the PLV price assumption for 2026? - The PLV assumption is a range of $185-$215 per short ton [41] Question: How should working capital be expected to change in 2026? - Working capital is expected to build early in the year, with a potential increase of upwards of $50 million in the first half [65] Question: What are the payments for federal leases? - The payments for federal leases are about $9 million per year for four years [47] Question: How does the company plan to return cash to shareholders? - The company plans to return cash through a higher fixed quarterly dividend, special cash dividends, and selective stock buybacks [58] Question: What is the expected sustaining CapEx for 2027 and beyond? - Sustaining CapEx is expected to increase by $20 million-$30 million annually, leading to a run rate of approximately $110-$140 million [78]

Financial Data and Key Metrics Changes - Warrior achieved a record high quarterly sales volume of 2.9 million short tons in Q4 2025, a 53% increase compared to 1.9 million tons in Q4 2024 [14] - Total sales volume for 2025 was 9.6 million short tons, a 21% increase year-over-year, while production volume reached 10.2 million short tons, a 24% increase from 2024 [6][7] - Adjusted EBITDA for Q4 2025 was $93 million, a 31% increase from Q3 2025, and a 75% increase from $53 million in Q4 2024 [21][23] - Net income for Q4 2025 was $23 million, or $0.44 per diluted share, compared to $1 million or $0.02 per diluted share in Q4 2024 [23] Business Line Data and Key Metrics Changes - Blue Creek mine began longwall operations in Q4 2025, contributing 1.3 million tons of production, exceeding expectations [15][16] - Mine No. 4 set a new record high output for both sales and production volume, continuing its strong performance [7] - Cash costs per ton decreased to approximately $94 in Q4 2025 from $120 in the same quarter last year, reflecting lower overall spending and the contribution of low-cost Blue Creek tons [27] Market Data and Key Metrics Changes - The PLV FOB Australia index averaged $182 per short ton in Q4 2025, marking a 9% increase from Q3 2025 [9] - Chinese steel export volumes for 2025 reached a record high of 119 million metric tons, a 7.2% increase year-over-year, while crude steel production decreased by 4.4% [8] - The average East Coast HVA index price decreased by $6 per ton, or 4%, in Q4 2025 compared to Q3 2025 [10][11] Company Strategy and Development Direction - Warrior plans to ramp production in line with contractual volumes to support pricing discipline while maximizing long-term value [17] - The company aims to reduce coal inventory levels to just below 1 million tons by the end of 2026 [35] - Warrior's strategy includes significant investments in Blue Creek, which is expected to enhance the company's cost structure and drive margin expansion [19][38] Management's Comments on Operating Environment and Future Outlook - Management expects steelmaking coal markets to remain consistent with 2025 levels, entering 2026 from a position of strength with higher contracted volumes and record production capacity [32] - The company anticipates total sales and production volumes to be significantly higher in 2026 due to the early start of Blue Creek longwall operations [32] - Management expressed cautious optimism regarding pricing, noting that recent disruptions in global mining production may be temporary [36] Other Important Information - Warrior's total available liquidity at the end of Q4 2025 was $484 million, consisting of cash and cash equivalents of $300 million, short-term investments of $43 million, and $141 million available under the ABL Facility [31] - The company plans to spend the remaining construction CapEx of $50-$75 million on the Blue Creek project in Q1 2026 [33] Q&A Session Summary Question: What is the PLV price assumption for 2026? - The PLV assumption is a range of $185-$215 per short ton [41][43] Question: How should working capital be expected to change in 2026? - Working capital is expected to build in the first half of the year due to increased accounts receivable and inventory [44][65] Question: What are the payments for federal leases? - The payments for federal leases are about $9 million per year for four years [46][48] Question: How will cash flow be managed in 2026? - The company expects to be free cash flow positive in the second half of 2026, depending on pricing [56][58] Question: What is the outlook for Mine No. 4's production? - Mine No. 4 is expected to continue running at levels similar to the previous year, maintaining strong performance [88]

Financial Data and Key Metrics Changes - Warrior Met Coal reported a record high total sales volume of 9.6 million short tons for 2025, a 21% increase from the previous year, and a production volume of 10.2 million short tons, a 24% increase from 2024 [6][15] - The fourth quarter Adjusted EBITDA was $93 million, a 31% increase from the third quarter of 2025, and net income was $23 million, or $0.44 per diluted share, compared to $1 million, or $0.02 per diluted share in the same quarter of 2024 [22][24] - Total revenues for the fourth quarter were $384 million, up from $297 million in the same quarter of the previous year, driven by a 53% increase in sales volumes [24][25] Business Line Data and Key Metrics Changes - The ramp-up of the Blue Creek longwall operations began production eight months ahead of schedule, contributing significantly to the company's production profile and cost structure [4][16] - Blue Creek produced 1.3 million tons during the fourth quarter, exceeding expectations, and the company achieved a record high quarterly sales volume of 2.9 million short tons [13][14] Market Data and Key Metrics Changes - The PLV FOB Australia index averaged $182 per short ton in the fourth quarter, marking a 9% increase from the third quarter of 2025 [9] - Chinese steel export volumes reached a record high of 119 million metric tons in 2025, a 7.2% increase year-over-year, while crude steel production decreased by 4.4% [8] Company Strategy and Development Direction - The company plans to reduce coal inventory levels to just below 1 million tons and expects to ramp production in line with increases in contractual volumes [35][32] - Warrior aims to maintain a disciplined capital allocation strategy while focusing on shareholder returns, including potential dividends and stock buybacks [58][88] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the steelmaking coal market, anticipating that prices may remain supported in the short term but could retreat if global supply and demand fundamentals do not improve [36][37] - The company expects sales volumes in 2026 to be more than 30% higher than in 2025, driven by the contribution of the Blue Creek mine [35][38] Other Important Information - The total capital expenditures for the Blue Creek project reached $957 million, fully funded by cash flows from operations, with an estimated total project cost of $995 million to $1.075 billion [16][17] - The company recorded a negative free cash flow of $28 million in the fourth quarter due to increased capital expenditures and working capital needs [29] Q&A Session Summary Question: What is the PLV price assumption for 2026? - The PLV price assumption is a range of $185-$215 per short ton [41][43] Question: How should working capital be expected to build in 2026? - Working capital is expected to increase in the first half of the year due to higher accounts receivable and inventory, potentially upwards of $50 million [65] Question: What are the payments for federal leases? - The payments for federal leases total about $9 million per year over four years [46] Question: How does the company view shareholder returns? - The company plans to return cash to shareholders through higher fixed quarterly dividends and possibly special cash dividends and stock buybacks [58][88]

Commodity Price Risk - The company is exposed to commodity price risk on coal sales, with pricing terms typically set for three months and volume terms ranging from one to three years [521]. Natural Gas Hedging - As of December 31, 2025, the company had no outstanding natural gas swap contracts, which are used to hedge against fluctuations in natural gas prices [522]. Interest Rate Risk - The company has a fixed interest rate of 7.875% per annum on its Notes, payable semi-annually [525]. - The Amended ABL Facility's interest rate is tied to SOFR, with margins currently ranging from 150 bps to 200 bps, exposing the company to interest rate risk [526]. - A 100 basis point change in interest rates would affect the annual interest expense under the Amended ABL Facility by approximately $1.4 million, assuming $140.5 million is outstanding [526]. Credit Losses - The company has not recorded any allowances for credit losses associated with trade accounts receivables for the years ended December 31, 2025, and 2024 [524]. Supply Price Risk Management - The company manages price risk for supplies like diesel fuel and steel through strategic sourcing contracts [523]. Regulatory and Geopolitical Risks - The company is subject to regulatory requirements that could impact operations, including potential mine closures by regulatory agencies [10]. - The company faces risks related to geopolitical events, such as the Russia-Ukraine war, which could affect operations [10]. Financial Flexibility and Indebtedness - The company has substantial indebtedness and must comply with covenants in its credit facilities, impacting financial flexibility [10]. Inflationary Pressures - The company is experiencing inflationary pressures on supplies used in production, including belt structure, roof bolts, cable, magnetite, and rock dust [527]. - Rising costs due to inflation are impacting labor and parts for repair and rebuild equipment [527]. - The company is implementing strategies to mitigate inflation's impact, such as placing purchase orders earlier [527]. - Utilizing short-term contracts is part of the company's strategy to manage inflation [527]. - The company is leveraging supplier relationships to help counteract rising costs [527].

Fourth Quarter 2025 Results February 12, 2026 Forward-looking Statements Mine 7 Underground Operation with Two Longwall Systems • Premium High Vol A steelmaking Blue Creek Underground Operation with Single Longwall System(3) Mine 4 Underground Operation with Single Longwall System This presentation contains, and of Warrior Met Coal, Inc.'s (the "Company", "WMC" or "Warrior") officers and representatives may from time to time make, forward-looking statements within the meaning of Section 27A of the Securitie ...

Financial Performance - Warrior reported a net income of $23.0 million, or $0.44 per diluted share, for Q4 2025, a significant increase from $1.1 million, or $0.02 per diluted share, in Q4 2024[2]. - Adjusted EBITDA for Q4 2025 was $92.9 million, up from $53.2 million in Q4 2024, reflecting improved operating performance and contributions from the Blue Creek mine[2]. - Total revenues for Q4 2025 were $384.0 million, a 29% increase from $297.5 million in Q4 2024, driven by higher sales volumes[10]. - Net income for Q4 2025 was $22,962,000, a significant increase from $1,136,000 in Q4 2024[40]. - Adjusted EBITDA for Q4 2025 reached $92,852,000, compared to $53,216,000 in Q4 2024, resulting in an Adjusted EBITDA margin of 24.2%[40][41]. - Operating income for the twelve months ended December 31, 2025, was $45.709 million, down from $254.890 million in 2024[36]. Sales and Production - Record quarterly sales volumes reached 2.9 million short tons of steelmaking coal in Q4 2025, a 53% increase from 1.9 million short tons in Q4 2024, including 881 thousand short tons from Blue Creek[7]. - Tons sold in Q4 2025 reached 2.883 million, up from 1.887 million in Q4 2024, marking a 53% increase[37]. - The company produced 3.392 million tons in Q4 2025, compared to 2.108 million tons in Q4 2024, representing a 61% increase[37]. - Warrior expects coal sales for 2026 to be between 12.5 and 13.5 million short tons, with production guidance of 12.0 to 13.0 million short tons[24]. Cost and Pricing - Cash cost of sales per short ton decreased by 22% to $93.53 in Q4 2025 from $119.55 in Q4 2024, driven by the lower cost structure of Blue Creek[3]. - The average net selling price of steelmaking coal decreased by 16% to $129.60 per short ton in Q4 2025 from $154.54 in Q4 2024[10]. - Average net selling price per ton in Q4 2025 was $129.60, down from $154.54 in Q4 2024, reflecting a decrease of 16%[37]. - The cash margin per ton for Q4 2025 was $36.07, compared to $34.99 in Q4 2024, showing a slight increase of 3%[39]. Capital Expenditures and Investments - Capital expenditures for the Blue Creek project are projected to be between $50 million and $75 million, with total project costs expected to reach $995 million to $1.075 billion[24]. - The company incurred $104,368,000 in capital expenditures during Q4 2025, down from $142,195,000 in Q4 2024[42]. Assets and Liabilities - Total assets increased to $2,783,799,000 as of December 31, 2025, up from $2,591,516,000 in 2024[46]. - Total liabilities increased to $642,414,000 in 2025 from $500,699,000 in 2024[47]. - Property, plant, and equipment net value rose to $1,817,364,000 in 2025, compared to $1,549,470,000 in 2024[47]. - Retained earnings grew to $1,890,703,000 in 2025, up from $1,851,040,000 in 2024[47]. Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $76,089,000 for Q4 2025, compared to $54,207,000 in Q4 2024[45]. - Free cash flow for Q4 2025 was $(28,279,000), an improvement from $(87,988,000) in Q4 2024, with a free cash flow conversion rate of (30.5)%[42][43]. - Cash and cash equivalents decreased to $299,963,000 in Q4 2025 from $491,547,000 in Q4 2024[47]. Future Outlook - The company expects to maintain its cost structure and manage liquidity effectively in 2026, despite potential inflationary pressures[31]. - The Blue Creek project is anticipated to enhance the company's production capacity and profitability in the future[31]. - The Company finalized two federal coal leases in Q4 2025, covering approximately 14,050 acres and containing about 53 million short tons of reserves, enhancing its resource base for future growth[22].