v3.25.3
Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 12—SEGMENT REPORTING

 

Pursuant to ASC 280, operating segments are defined as components of an enterprise engaged in business activities from which it may recognize revenues and incur expenses, about which discrete financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.

 

During the third quarter of 2025, the Company modified its segment structure largely as a result of activity at the Brook Mine during the period. Beginning with the third quarter of 2025, the Company’s reportable segments, which are primarily based on the Company’s internal organizational structure and types of controlled mineral deposits, are its two operating segments—Metallurgical Coal and Rare Earths and Critical Minerals (no operating segments have been aggregated). The change in reportable segments also resulted in a change to the CODM’s primary segment measure of profit or loss in assessing segment performance as further described below. In conjunction with this change, prior period amounts have been recast to conform to this new segment reporting structure.

 

The Metallurgical Coal segment operates and develops high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia. The Metallurgical Coal segment generates revenue primarily through the production of metallurgical coal for sale to the steel industry. The Metallurgical Coal segment also generates revenue through the sale of coal purchased from third parties.

 

The Rare Earths and Critical Minerals segment operates the Brook Mine complex located in Sheridan, Wyoming, where the Company is developing rare earth elements and critical mineral operations in addition to performing initiatives related to coal-to-carbon based products and materials. The Brook Mine has initially begun to produce representative ore material for short-term pilot-scale testing of the feedstock with the goal of ultimately establishing its rare earth element mineral reserves and resources for processing at a full-scale commercial processing facility into rare earth element and critical mineral oxides. No revenues have been recognized from the Rare Earths and Critical Minerals segment.

The Company’s CODM, the chief executive officer, regularly reviews financial information at the segment level for the purpose of allocating resources and assessing operating results and financial performance. The CODM uses Segment Adjusted EBITDA as management’s primary segment measure of profit or loss in assessing segment performance and deciding how to allocate the Company’s resources. This measure enables the CODM to evaluate operational efficiency and segment performance by comparing current results to historical data, while also monitoring variances between actual results and forecasts to inform decisions on capital, personnel and other resource allocations across segments. Segment Adjusted EBITDA is calculated as segment revenues less significant segment expenses, specifically, cost of sales (excluding transportation costs), transportation costs and selling, general and administrative expenses (excluding stock-based compensation expense), as well as certain other segment items. Significant segment expenses and other segment items also exclude certain costs that are non-recurring, non-cash or are not related to the segments’ underlying business performance. A reconciliation of total Segment Adjusted EBITDA to consolidated income or loss before income taxes is included in the tables below.

 

Certain current period costs are incurred at the corporate level and are allocated to the Company’s segments. These costs generally include shared service functions such as legal, information technology, finance and accounting, sales, and executive management. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated that is deemed to best represent the expected benefit received by the operating segment. The remaining unallocated corporate costs that are not attributed to the operating segments are reported within Corporate expenses as a reconciling item to our consolidated results. Our allocation methodology is periodically evaluated and may change. A similar allocation of shared service functions is not presented within the recasted prior period information as the benefit to the respective operating segment is not comparable to the current period. The expenses associated with these shared service functions are presented within the Metallurgical Coal segment in the prior period.

 

As the Company’s CODM manages the Company’s assets on a consolidated basis, the CODM is not regularly provided asset information for the reportable segments. The Company does not have any material long-lived assets located outside of the United States. For all of the periods presented below, (i) the Company’s revenues were derived from U.S.-domiciled operations, and (ii) the Company did not have any intersegment revenues.

 

The CODM does not regularly review segment asset information at a different asset level or category than those disclosed within the consolidated balance sheet for the purpose of assessing performance and making resource allocation decisions.

 

The following tables present the Company’s reportable segment information:

 

   Three Months Ended
September 30, 2025		     
(In thousands)  Metallurgical Coal   REE & Critical Minerals   Total 
             
Revenue  $120,996   $
-
   $120,996 
                
Significant segment expenses:               
Cost of sales (exclusive of transportation costs)   (85,476)   
-
    (85,476)
Transportation costs   (16,366)   
-
    (16,366)
Selling, general, and administrative (a)   (4,420)   (3,759)   (8,179)
Other segment items (b)   1,208    
-
    1,208 
Segment Adjusted EBITDA   15,943    (3,759)   12,184 
                
Corporate expenses (c)             (3,233)
Stock-based compensation             (4,731)
Asset retirement obligations accretion             (402)
Depreciation, depletion, and amortization             (17,091)
Other expenses             (1,083)
Interest expense, net             (2,250)
Income tax benefit (expense)             3,299 
                
Net (loss) income            $(13,308)
                
Segment capital expenditures  $11,510   $1,875   $13,385 
Other capital expenditures (d)             11 
Total capital expenditures (including accrued capital expenditures and capitalized interest)            $13,396 

 

(a) The primary differences between this significant segment expense and “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation and unallocated corporate costs, which are included in “Corporate expenses” and “Stock-based compensation” in the table above.
(b) “Other segment items” consists of items within “Other income (expense), net” on the Company’s unaudited Condensed Consolidated Statements of Operations, idle costs and other non-recurring costs that are not related to the segments’ underlying business performance.
(c) “Corporate expenses” represent costs incurred at the corporate offices that are not specifically attributable to the reportable segments.
(d) Includes amounts not allocated to the reportable segments, primarily related to corporate capital expenditures.
   Three Months Ended
September 30, 2024		     
(In thousands)  Metallurgical Coal   REE & Critical Minerals   Total 
             
Revenue  $167,411   $
-
   $167,411 
                
Significant segment expenses:               
Cost of sales (exclusive of transportation costs) (a)   (104,817)   
-
    (104,817)
Transportation costs   (28,551)   
-
    (28,551)
Selling, general, and administrative (b)   (7,207)   (1,363)   (8,570)
Other segment items (c)   132    
-
    132 
Segment Adjusted EBITDA   26,968    (1,363)   25,605 
                
Corporate expenses (d)             (1,744)
Stock-based compensation             (3,970)
Asset retirement obligations accretion             (354)
Depreciation, depletion, and amortization             (17,811)
Other expenses             (208)
Interest expense, net             (1,696)
Income tax benefit (expense)             (61)
                
Net (loss) income            $(239)
                
Segment capital expenditures  $15,751   $
-
   $15,751 
Other capital expenditures (e)             50 
Total capital expenditures (including accrued capital expenditures and capitalized interest)            $15,801 

 

(a) The difference between this significant segment expense and “Cost of sales” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to transportation costs, which are presented separately within the table above, and alternative mineral development costs, which are included in “Selling, general, and administrative” in the Rare Earths and Critical Minerals segment in the table above. The presentation of these amounts conform to the current year presentation.
(b) The primary differences between this significant segment expense and “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation and unallocated corporate costs, which are included in “Corporate expenses” and “Stock-based compensation” in the table above.
(c) “Other segment items” consists of items within “Other income (expense), net” on the Company’s unaudited Condensed Consolidated Statements of Operations, idle costs and other non-recurring costs that are not related to the segments’ underlying business performance.
(d) “Corporate expenses” represent costs incurred at the corporate offices that are not specifically attributable to the reportable segments.
(e) Includes amounts not allocated to the reportable segments, primarily related to corporate capital expenditures.
   Nine Months Ended
September 30, 2025		     
(In thousands)  Metallurgical Coal   REE & Critical Minerals   Total 
             
Revenue  $408,611   $
-
   $408,611 
                
Significant segment expenses:               
Cost of sales (exclusive of transportation costs) (a)   (290,289)   
-
    (290,289)
Transportation costs   (56,037)   
-
    (56,037)
Selling, general, and administrative (b)   (14,439)   (12,402)   (26,841)
Other segment items (c)   3,516    
-
    3,516 
Segment Adjusted EBITDA   51,362    (12,402)   38,960 
                
Corporate expenses (d)             (10,072)
Stock-based compensation             (12,844)
Asset retirement obligations accretion             (1,206)
Depreciation, depletion, and amortization             (51,671)
Other expenses             (2,228)
Interest expense, net             (7,298)
Income tax benefit (expense)             9,618 
                
Net (loss) income            $(36,741)
                
Segment capital expenditures  $46,841   $2,420   $49,261 
Other capital expenditures (e)             15 
Total capital expenditures (including accrued capital expenditures and capitalized interest)            $49,276 

 

(a) Alternative mineral development costs through June 30, 2025 of approximately $3.8 million have been reclassed from “Cost of sales” within the Company’s unaudited Condensed Consolidated Statements of Operations to “Selling, general, and administrative” in the Rare Earths and Critical Minerals segment. In addition, transportation costs are included in “Cost of sales” within the Company’s unaudited Condensed Consolidated Statements of Operations and are presented separately within the table above. The presentation of these amounts conform to the current period presentation.
(b) The primary differences between this significant segment expense and “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation and unallocated corporate costs, which are included in “Corporate expenses” and “Stock-based compensation” in the table above.
(c) “Other segment items” consists of items within “Other income (expense), net” on the Company’s unaudited Condensed Consolidated Statements of Operations, idle costs and other non-recurring costs that are not related to the segments’ underlying business performance.
(d) “Corporate expenses” represent costs incurred at the corporate offices that are not specifically attributable to the reportable segments.
(e) Includes amounts not allocated to the reportable segments, primarily related to corporate capital expenditures.
   Nine Months Ended
September 30, 2024		     
(In thousands)  Metallurgical Coal   REE & Critical Minerals   Total 
             
Revenue  $495,403   $
-
   $495,403 
                
Significant segment expenses:               
Cost of sales (exclusive of transportation costs) (a)   (313,297)   
-
    (313,297)
Transportation costs   (80,299)   
-
    (80,299)
Selling, general, and administrative (b)   (19,815)   (3,618)   (23,432)
Other segment items (c)   3,870    
-
    3,870 
Segment Adjusted EBITDA   85,862    (3,618)   82,245 
                
Corporate expenses (d)             (4,862)
Stock-based compensation             (13,255)
Asset retirement obligations accretion             (1,063)
Depreciation, depletion, and amortization             (48,909)
Other expenses             (796)
Interest expense, net             (4,509)
Income tax benefit (expense)             (1,517)
                
Net (loss) income            $7,334 
                
Segment capital expenditures  $56,757   $21   $56,778 
Other capital expenditures (e)             216 
Total capital expenditures (including accrued capital expenditures and capitalized interest)            $56,994 

 

(a) The difference between this significant segment expense and “Cost of sales” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to transportation costs, which are presented separately within the table above, and alternative mineral development costs, which are included in “Selling, general, and administrative” in the Rare Earths and Critical Minerals segment in the table above. The presentation of these amounts conform to the current year presentation.
(b) The primary differences between this significant segment expense and “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation and unallocated corporate costs, which are included in “Corporate expenses” and “Stock-based compensation” in the table above.
(c) “Other segment items” consists of items within “Other income (expense), net” on the Company’s unaudited Condensed Consolidated Statements of Operations, idle costs and other non-recurring costs that are not related to the segments’ underlying business performance.
(d) “Corporate expenses” represent costs incurred at the corporate offices that are not specifically attributable to the reportable segments.
(e) Includes amounts not allocated to the reportable segments, primarily related to corporate capital expenditures.