LEASES

12 Months Ended

Dec. 31, 2025

NOTE 7—LEASES

The Company has various finance leases for mining equipment, which generally include 3-5 year terms and expire through 2030. In addition, we have two operating leases for office space with initial terms of approximately five and six years that run through 2027 and 2030, respectively, including the office space in Charleston, WV that commenced in the first quarter of 2024 resulting in the recognition of an additional right-of-use asset and lease liability of approximately $1.0 million.

Amortization of right-of-use assets associated with finance leases was $7.8 million, $10.4 million, and $8.5 million in 2025, 2024, and 2023, respectively, as discussed in Note 3. Interest expense recognized for financing lease liabilities was $1.5 million, $0.9 million, and $0.6 million in 2025, 2024, and 2023, respectively. Operating lease expense was $0.4 million, $0.4 million, and $0.2 million in 2025, 2024, and 2023, respectively.

Right-of-use assets and lease liabilities are determined as the present value of the lease payments, discounted using either the implicit interest rate in the lease or, more commonly, our estimated incremental borrowing rate based on similar terms, payments and the economic environment where the leased asset is located. Below is a summary of our leases:


(In thousands)	Classification	December 31, 2025		December 31, 2024

Right-of-use assets
Financing	Financing lease right-of-use assets, net	$	15,763	$	12,437
Operating	Other assets		1,115		1,324
Total right-of-use assets		$	16,878	$	13,761

Current lease liabilities
Financing	Current portion of financing lease obligations	$	7,281	$	6,218
Operating	Accrued liabilities		355		290
Non-current lease liabilities
Financing	Long-term financing lease obligations	$	10,184	$	7,517
Operating	Other long-term liabilities		787		1,091
Total lease liabilities		$	18,607	$	15,116

Minimum lease payments for our lease obligations are as follows:


		December 31, 2025
(In thousands)		Financing			Operating			Total

Future minimum lease payments:
2026		$	7,725		$	421		$	8,146
2027			5,851			405			6,256
2028			3,036			225			3,261
2029			2,122			226			2,348
2030			354			31			385
Thereafter			—			—			—
Total undiscounted lease payments			19,088			1,308			20,396
Less: Amounts representing interest			(1,623)			(166)			(1,789)
Present value of lease obligations		$	17,465		$	1,142		$	18,607

Weighted average remaining term (years)			3.0			3.1
Weighted average discount rate			7.5%			6.7%

Coal Leases and Associated Royalty Commitments—Leases of mineral reserves and related land leases are exempt from the lease accounting requirements addressed above. Refer to Note 9 for information regarding coal leases and associated royalty commitments.