Greetings. Welcome to the Alpha Metallurgical Resources First Quarter 2026 Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note that this conference is being recorded. I will now turn the conference over to your host, Emily O'Quinn, Senior Vice President, Investor Relations and Communications. You may now begin.

Thank you, Rob, and good morning, everyone. Before we get started, let me remind you that during our prepared remarks, our comments regarding anticipated business and financial performance contain forward-looking statements, and actual results may differ materially from those discussed. For more information regarding forward-looking statements and some of the factors that can affect them, please refer to the company's first quarter 2026 earnings release and the associated SEC filing. Please also see those documents for information about our use of non-GAAP measures and their reconciliation to gap measures. On the call today, I am joined by ALPHA's Chief Executive Officer, Andy Edson, and Chief Financial Officer, Todd Muncy, who will provide prepared remarks. Also participating on the call are our President and Chief Operating Officer, Jason Whitehead, and our Chief Commercial Officer, Dan Horn. Following our prepared remarks, we will be available to answer questions. With that, I'll turn the call over to Andy.

Thanks, Emily, and good morning, everyone. Today, we released our definitive first quarter financial results, which included adjusted EBITDA of $30 million and 3.6 million tons shipped. Back in February, on our last earnings call, we shared our expectation of a slower first quarter of production and shipments as compared to ratable guidance and the rest of the year. We also communicated that costs would likely be higher than usual due to those reduced volumes. The development of war-related inflationary impacts on diesel and other supplies was not included in our projections, but this put additional pressure on our cost of coal sales, which came in at $108 for the quarter. While we have no way of knowing when the Iran conflict will end, we believe the war-related inflationary prospects are temporary. Given this, and since we expect improved operational performance in both coal volumes and cost of coal sales for the balance of 2026, we believe it is still possible to finish the year within the top end of our existing cost guidance range of $95 to $101 per ton. However, if the Iranian conflict and its resulting inflationary impacts persist, we will likely adjust our cost guidance. Our realizations improved quarter over quarter, largely due to increases in the low volume indexes that occurred in recent months due to supply-related issues from flooding in Australia. However, there are historically unusual divergences within the indexes that have either persisted or gotten more pronounced in recent weeks. Within low vol pricing, the Australian POV is currently $45 per metric ton higher, or 23% more, than the U.S. East Coast Low Vol Index. And of particular importance to us and our portfolio, there is a further $36 per ton gap down from the U.S. East Coast Low Vol to the U.S. East Coast High Vol A, another difference of 23%. The U.S. East Coast spread from low vol to high vol A is likely related to how oversupply the market for highball has become with additional tones recently brought to market in an already weak environment. We continually evaluate the productive capacity of our portfolio alongside the needs of the market, both in the near future and from a longer-term perspective, and we're watching to see if either of those index spreads tie into a more normalized level or if the divergence persists. Across the organization, our employees are working hard to maintain safe, efficient operations despite the external headwinds we're facing. Within the first quarter, many alpha teams received third-party recognition for exceptional work in the areas of operational safety, mine rescue, environmental stewardship, and reclamation. I commend each of our team members who make positive contributions through their work every day. Our sales team also tackled a difficult challenge by successfully planning for and mitigating the potential disruption of a four-week outage in March at Dominion Terminal Associates. They diligently work to keep as much alpha coal moving as possible, both before and after the downtime, by strategically utilizing our Hampton Roads terminal capacity beyond DTA. We're grateful to all of our report partners for helping us overcome these challenges, and we're especially appreciative of the DTA team for their work to accomplish so many equipment, maintenance tasks, and upgrades in such a short time. With that, I will turn the call over to Todd for a review of our first quarter financial results.

Thanks, Andy. Adjusted EBITDA for the first quarter was $30 million, up from $28.5 million in the fourth quarter. We sold 3.6 million tons in Q1, down from 3.8 million tons in Q4. Met segment realizations increased quarter over quarter with an average realization of $124.39 in the first quarter, up from $115.31 in Q4. Export met tons priced against Atlantic indices and other pricing mechanisms in the first quarter realized $110.32 per ton of export coal priced on all these results average of $128.40 from $118.10. So then a thermal portion of the MET segment decreased. The cost of coal sales for our MET segment increased to $107.98 per ton in Q1, up from $101.40 alongside lower productive volumes for the non-cash stock compensation and non-recurring items increased to $0.9 million. Moving to the balance sheet and cash flows, as of March 31st, we had $317.2 million in unrestricted cash and $49.6 million in short-term investments as compared to $366.49.6. We had $184.3 million in unused availability under our ABL at the end of the first quarter, partially offset by a minimum required. As of the end of March, Alpha had total liquidity of $476.2 million, down from $524.3 million at the end of December. CapEx for the first quarter was $40.7 million, up from $29 million in Q4. Cash provided by operating activities was $29 million in the first quarter, up from $19 million in the fourth quarter. As of March 31st, our ABL facility had no borrowings and $40.7 million of letters of credit outstanding. In terms of our committed position for 2026. At the midpoint of guidance, 48% of our metallurgical tonnage in the MET segment is committed and priced at an average price of $132.37. Another 43% of our MET tonnage for the year is committed but not yet priced. The thermal byproduct portion of the MET segment is fully committed and priced at the midpoint of guidance at an average price of $74.52. From a From a market perspective, geopolitical and weather-related supply issues influenced metallurgical coal markets in the first quarter of 2026, with the war in Iran causing increased volatility in the energy sector. While not directly linked to war-related electricity generation and power concerns, metallurgical coal markets also moved during the quarter, with modest increases across the met coal quality spectrum. Of the four indices Alpha closely monitors, the Australian Premium Low Vol Index represents the largest quarterly. The Aussie PLV Index increased from $218 per metric ton on January 2nd to $236.8 per metric ton on March 31st. The U.S. East Coast Low Vol Index rose from $185 per metric ton in early January to $195 per metric ton. by the U.S. East Coast High Vol A Index increased from $150.50 per metric ton at the beginning of the quarter to $159.50. And the U.S. East Coast High Vol B Index increased from $144.20 per metric ton to $149.50. Since then, the Australian PLV Index has increased to $239.80 per metric ton as of May 7th, while the U.S. East Coast Low Vol is at $100.00 exactly the same. The U.S. East Coast This high ball A and high ball B indices are also largely unchanged from quarter close at $159. In a thermal market, the API 2 index was $95, and the 5-2 index has dropped to $111.50. With that operator, we are now ready to open the call for questions.

At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. One moment, please, while we poll for questions. Our first question comes from Nick Giles with B. Riley. Your line is now live.

Yeah, thank you, Operator. Good morning, everyone. Obviously, some higher costs in 1Q and, you know, some of it or a lot of it outside of your control. We're just hoping to get some more color on just kind of cost cadence starting here in 2Q, you know, just with diesel prices remaining elevated here and now. How much of that cost pressure kind of carries over into 2Q, and what should we really be roughly penciling in for the quarter?

Hey, Nick. This is Andy. I don't want to guide too early because we are only partway through the quarter. I think diesel contributed a couple of dollars a ton of the cost pressure. Of course, that was just really a late February, March impact. So it's looking like we'll see a full quarter's impact of it, so you could see a little bit more than that. And also, the piece that's the direct diesel cost, the piece that you don't see that's buried is, you know, diesel impacts the delivery cost of pretty much everything that we buy. And so you're going to see the indirect portion of that coming through supplies and maintenance, which we've also seen a step up there as well. So we do expect just from increased productive activity during the quarter compared to the first quarter, we should see some of that cost getting spread over more times, particularly our fixed cost spread. So I do expect it to be coming down from Q1, but it's a little bit too early to tell, you know, the quantum on that.

Understood. No, that's still helpful, Andy. And maybe on the other side, you know, realizations moved up. It's nice to see. Just was curious on, you know, are there any opportunities to shift more tons to kind of an Aussie-linked basis? How much, you know, what kind of incremental opportunities are you seeing in South Asia, maybe as Australian supply, especially for higher quality met, remains tight. Thanks.

Hey, Nick, this is Dan. I think the short answer is yes to that, to the extent that we have some medium vol and low vol coals that we can place into the Asian markets. The landscape for high vol coals into Asia is pretty tough right now. You're essentially matching the the lowest price the competitor throws out that day um so even if it's linked to the aussie index it's discounted pretty heavily so we're we're pretty selective on which it's not so much about the indexes obviously it's about the the ultimate price and the net back to our coal mines so we're uh but but i think there is some upside as demand increases and And if the Aussie production for the higher quality coals remains a little bit short, there are opportunities.

Understood. No, I appreciate that, Dan. And maybe a last one for me is just what are you seeing in Central App in terms of some of your competitors out there? Have there been any incremental cuts in recent months? Are you seeing any production that could come back? Just an update more broadly on kind of the surrounding production areas would be helpful.

Yeah, Nick, I'll take this first, and I'll ask Dan to jump in if he's got anything additional. We obviously have seen some tons coming offline in the past, really earlier in Q1, but as the quarter's gone on, it's been some smaller incremental batches. I don't think it's anything that's terribly needle-moving thus far. I think the quantum has been less than what's required to fill some of the gaps in the supply and demand situation. Dan, any thoughts on that?

No, I think you said it well, Andy. I mean, if you look at today versus where we were a couple years ago, So, you know, there's probably something like 11 million tons of new long wall high ball production that's in the marketplace. And, you know, the round numbers of how many tons have come out of central apps, probably a million, two million, you know, somewhere in that range. So still a pretty good imbalance. Again, demand is down globally. I also have to point out that the global demand for these high ball coals is something less than it was a couple of years ago, too. So, as demand improves, that'll help somewhat with the rebalancing.

Got it. Well, thanks, guys. And, yeah, best of luck.

Our next question comes from Nathan Martin with the Benchmark Company. Please proceed with your question.

Thanks, operator. Good morning, everyone. You know, I think it would be helpful maybe, you know, to get some thoughts on shipping cadence for the balance of the year. I think, Andy, you said you expect 2Q to improve for the reasons we already talked about. Does that get made up mainly in 2Q, or do you kind of expect those tons to be spread out in subsequent quarters?

Hey, Nate. Yeah, I would expect, because normally we have a bit of a bell curve during a regular year, where Q1 and Q4 are going to be your lightest quarters, Q2 and Q3, and through the summer you have your best shipments. I think it will probably look similar to that this year. I do think most of the makeup where it happens will happen in the middle two quarters, and then we'll probably start tailing off a little bit as we get to the end of the year with the holidays and that kind of stuff. So I think that's probably – it's going to look like a normal year. It's just a little bit steeper curve from Q1 into Q2 and Q3.

Okay, helpful, Andy. Appreciate that. And then maybe, Dan, obviously freight rates elevated post the start of the conflict in the Middle East. I believe you guys have traditionally sold very little based on the CFR prices. Is that still true? And then I guess the spot market, you know, maybe a little bit quiet. You just mentioned highball especially. What do you think needs to happen for things to pick up there?

Yeah, on the freight, you're correct. Most of our business is FOB vessel. To the extent we do some chartering, we've seen freight increases, you know, pick a number, 40%-ish, you know, increase in the freight rates. To the extent that coal travels halfway around the world to South Asia and places like that, yeah, that's a pretty significant hit. And the impact of that is some of that freight will be shared between the buyer and the seller. It's not necessarily all passed over, particularly on new business. You know, if you're chasing new spot business, you know, the freight is absolutely a factor as opposed to a term contract where you've got a, you know, a set price. In that instance, the freight responsibility shifts to the buyer. The second question, you know, what has to happen? As I mentioned to Nick, I think we have to see some demand improvement and some continued supply discipline. And we're more oversupplied than we've seen in a while. We've seen it before in the marketplace. But at this moment in time, it's a pretty significant hill to climb for most of the U.S. producers here.

Okay, got it. And then maybe the 3.1 million tons of export you guys have committed in price export met. Can you give us an idea of that mix by quality?

It's primarily high balls and mid balls with a little low ball thrown in there, Nate. We don't give an exact breakdown. I'll point out, and kind of to your question on the shipping cadence, too, as Wildcat mine or low ball mine ramps during the year, that mix will include, we expect to see more low ball going into that mix. We can't quantify it any more than that, But, you know, our long-term strategy was to put more of the high-rank, higher-quality folks' strength coals into our portfolio. So that should continue this year and next.

And that actually bridges me to the last question I had. Could we kind of get an update on Kingston Wildcat, maybe from Jason, I guess? I mean, it seems like those tons coming online, you know, maybe it's an opportune, excuse me, an opportune timing, just given the wide relativities we're seeing between premium low ball and high ball.

Sure. Good morning. So the Wildcat mine is, you know, I'm pleased to announce that they are on coal and there are tons coming out of the mine. They're still in the development phases, but we actually plan for that to conclude here in the Q2 and Q3 and Q4. where we actually see a ramp in the production coming out of the mine.

All right. Great, Jason. Andy, Dan, appreciate your time as well. I'll pass it on. Good luck going forward.

Thank you. Appreciate it. Thank you.

Our next question comes from Matthew Key with Texas Capital Securities. Please proceed with your question.

Good morning, everyone, and thanks for taking my questions. Kind of piggybacking off of the diesel discussions, I was wondering if you could provide a sensitivity to diesel pricing that we could use as a general rule of thumb moving forward.

That's a tough one, Matt, as far as knowing that off the top of my head. I'm looking at Todd right now to see if he's got some viewpoints on that.

Yeah, Matt, in a typical year, we use about 22, 23 million gallons of diesel. And so, you know, if you think about the balance of the year with the movement we've had in diesel prices, you know, and to the point Andy made earlier, the diesel we use, we expect that to be a couple bucks influence on the cost. But then there's also the surcharges and whatnot that will flow through from transportation-related costs. Hopefully that helps a little bit. We all hope, you know, that issue goes away. But if not, that's kind of –

No, that's helpful. And I was wondering if there's anything, you know, that the company could do to manage, you know, some of these inflationary cost pressures. Like, do you currently do any diesel hedging, or would that be something you would consider in the future?

Yeah, we've actually, historically, we've done some, not necessarily diesel hedging, but buying forwards through our diesel providers, go ahead and lock in pricing around budget time. We've done that some of the past three, four years. Most of the time, it's actually gone upside down on us. This year, of course, happens to be the one where we choose not to do those forwards because back in August and September of last year, who could have seen this coming? But it is something that we're discussing actively simply because the world seems to be getting more and more politically volatile and to a degree where maybe it may just require locking in as many of your inputs as possible whenever you have the opportunity just because things do seem to be changing at a pace that the world can actually keep up with.

No, that's super helpful. I will stop there. I appreciate the time and best of luck.

Thank you very much. Our next question comes from Chris LaFema with Jeffries. Please proceed with your question.

Hey, guys, thanks. It's Chris LaFema from Jeffries here. I just wanted to go back to the market. So we're all kind of waiting for the high vol discounts to narrow. And this has been an issue for quite a long time. And now we have iron prices are rising. You have, obviously, energy prices globally rising. Premium low bond, that coal price has strengthened pretty materially. Global steel markets appear to be okay, but the high vol discount is widening. And I'm wondering if there's something else going on. I mean, I understand the point about there being quite a bit of high vol supply that's come online. but I would have thought of anything that would have brought the premium mobile price down rather than just result in a, in a wider spread. So is there anything else going on in that market that is more kind of structurally problematic, or is this purely a short term cyclical issue that we should expect to resolve? And, and, and if it's a cyclical issue, why hasn't it resolved yet? It's been going on for, you know, again, an extended period of time and the spreads have been kind of wider than we've ever seen and doesn't seem to be reversing at all. So yeah, just trying to figure out what's going on there. Thanks.

Chris, this is Dan. Try to unpack that a little bit there. You know, we don't, the PLV is its own creature. You know, it's an index that follows primarily Australian coals. We use it, we link our higher quality low vols and medium vols to that index. we we do believe that the u.s east coast lowball index is too far below the aussie index when when there's a shortage of australian plv we get phone calls about and we when i say we u.s producers that produce lowball ship our coal to replace that plv so we believe that the the gap between east coast low vol and plv is too wide to your point it is uh the the high vol coals are used differently they don't contribute to the coke strength they're used for plastic properties and arguably at times just as a cheap filler they they move differently but they've been depressed and and again i think that's more of the supply the just old-fashioned supply demand working on that um buyers are trying it obviously when they see the potential for low price or big discounts they'll adjust their blends to try to buy more of that uh i think they'll run into the freight issue the ocean freight issue that those tons of coal that have to go uh halfway around the world at a high freight number they're not going to travel well if they're low low value coals so okay that's That's right. I wouldn't lump that all together the way you did. I think you kind of have to break that apart.

Yeah, understood. Thanks a lot for that. Appreciate it. Good luck.

Yeah, and Chris, this is Andy. If I could add one more piece to that, you know, the differential between East Coast High Ball A and East Coast Low Ball is somewhat of a recent phenomenon. If you go back to the first of 2025, that differential was only $5, and now it's climbed to $38. And so I do think that's pretty directly attributable to all the new tonnage that's come online, both in northern Appalachia and in Alabama, just hitting a market that is having trouble absorbing it.

Yeah, I mean, I guess I was thinking I would have assumed that there would be, you know, coal is a very actively traded commodity by commodity traders globally. I would have assumed that the traders would have stepped in and kind of capitalized on that arbitrage opportunity, and that hasn't really happened. So it's one thing if there was something else going on there. But your answer is very helpful. I appreciate it. Thanks again.

Yeah, thank you, Chris.

We have a follow-up question from Nick Giles with B. Riley. Please proceed with your question.

Yeah, thanks for taking my follow-up. I just wanted to ask more broadly, we had the Presidential Memorandum, Section 303, a few weeks back in April. And I wanted to ask if this has really translated to your business or if you could expect to see any benefit or funding from these actions by the administration. I think maybe some of this is more related to the thermal side. They call out baseload power generation explicitly, but, you know, even export terminals are mentioned. So could DTA, for instance, be a candidate for some sort of government support? Thanks.

Yeah, that one – so that one's still developing, as with most of these executive orders and other proclamations going back into last fall. A lot of the details are still developing real time, and so we are involved to a high degree with the federal government on a couple different – evaluating the different programs, seeing what's out there. I don't know. From what we've seen thus far, it does seem that it's mostly thermal focus. There are some smaller areas where there may be some benefit. But as of yet, I don't think we're seeing anything that's hugely material to what we're doing right now. Fingers crossed that some of it translates to bigger benefit on the met side of the house, but I'm not sure we've seen anything in that regard yet.

Understood. Appreciate the perspective.

Thank you.

We have reached the end of the question and answer session. I would now turn the call over to Andy Itzen for closing remarks.

Yeah, we appreciate everyone joining us this morning for the Arnie's call, and we hope everyone has a great weekend.

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.