Warrior Met Coal, Inc. · NYSE:HCC
Warrior Met Coal — Q4 2024 Earnings Presentation
32 slides from Warrior Met Coal's earnings presentation, Feb 13, 2025
Slide 1: Fourth Quarter and Full Year 2024 Results
Fourth Quarter and Full Year 2024 Results February 13, 2025
Slide 2: Forward-looking statements
Wa rri o r Page 1 Forward-looking statements These slides contain, and the officers and representatives of Warrior Met Coal, Inc. (the “Company”, “WMC” or “Warrior”) may from time to time make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, an
Slide 3: Pure Play Steelmaking Coal Producer and 100% Exporter
Wa rri o r Page 2 Pure Play Steelmaking Coal Producer and 100% Exporter Warrior Alabama-based exporter of premium Low-Vol HCC and premium High Vol A HCC to the global steel industry Variable cost structure that adjusts with benchmark HCC prices, allowing Warrior to remain flexible and adapt to c
Slide 4: Fourth Quarter 2024 Highlights
Wa rri o r Page 3 Fourth Quarter 2024 Highlights Commenced two additional CM units at the world class Blue Creek growth 1 project for a total of three CM units developing the first longwall panel and produced 170 thousand short tons (“St”). Completed the installation of the clean coal storage silo
Slide 5: Key Metrics for Three Months Ended December 31, 2024 vs. 2023
Wa rri o r Page 4 Key Metrics for Three Months Ended December 31, 2024 vs. 2023 For the three months ended December 31, 2024 For the three months ended December 31, 2023 % Change Tons produced (in 000s St) 2,108 Tons produced (in 000s St) 1,970 7% Tons sold (in 000s St) 1,887 Tons sold (in 000s St)
Slide 6: Full Year 2024 Highlights
Wa rri o r Page 5 Full Year 2024 Highlights 1 Achieved Adjusted EBITDA* of $447.9 million and adjusted EBITDA margin* of 29% 2 Recorded full year 6% increase in sales volumes and 8% increase in production volumes, run rates not seen since 2019 and record high annual production for Mine No. 4 of 2.
Slide 7: Full Year Achievements vs. Guidance
Wa rri o r Page 6 Full Year Achievements vs. Guidance Guidance Actual Result Coal sales (million short tons) 7.4 – 8.2 8.0 Within Coal production (million short tons) 7.4 – 8.0 8.2 Exceeded Cash cost of sales (free-on-board port) per ST $125 - $135 $125.29 Within Capital expenditures for exist
Slide 8: Key Metrics for Years Ended December 31, 2024 vs. 2023
Wa rri o r Page 7 Key Metrics for Years Ended December 31, 2024 vs. 2023 For the year ended December 31, 2024 For the year ended December 31, 2023 % Change Tons produced (in 000s St) 8,247 Tons produced (in 000s St) 7,646 8% Tons sold (in 000s St) 7,975 Tons sold (in 000s St) 7,518 6% Average net se
Slide 9: Customer Revenue by Geography Provides Significant Logistical Cost Advantage
Wa rri o r Page 8 Customer Revenue by Geography Provides Significant Logistical Cost Advantage to the Seaborne Market Delivered cost advantage into Europe based on ~2 Customer revenue by geography(1) week transport time vs. ~5 weeks from Australia Q4 2024 Q4 2023 1% 3% 36% 25% 39% 16% 56% ~2 weeks 2
Slide 10: Generated Significant Free Cash Flow on Strong Conversion of Adjusted EBITDA Margins
Wa rri o r Page 9 Generated Significant Free Cash Flow* on Strong Conversion of Adjusted EBITDA* Margins(1) FCF 38% 1% 9% (77%) (165%) (27%) Conversion(2) Since 2022, FCF Conversion (2) has trended lower driven by the significant capital expenditures in 50% developing the Blue Creek mine which is ex
Slide 11: Leverage and Liquidity Ratio
Wa rri o r Page 10 Leverage and Liquidity Ratio Financial Metrics ($ in millions except ratios) Leverage (for the year ended Decemer 31, 2024) Adjusted EBITDA* $ 447.9 Consolidated Net Cash* (1) $ (368.2) Net Leverage Ratio (2) (0.82x) (3) Gross Leverage Ratio 0.39x Liquidity (as of December 31, 202
Slide 12: Breaking Down Warrior's 2024 Capital Expenditures
W ar r ior Page 11 Breaking Down Warrior’s 2024 Capital Expenditures 2024 Capex Guidance 2024 Capex Guidance Detail versus Actual ($ in millions) Low High ($ in millions) Sustaining Guidance QTD Actuals YTD Actuals Capex High End Q4 2024 Q4 2024 Sustaining $100 $110 Discretionary 335 390 Mines $100
Slide 13: Strategic Capital Allocation: Balancing Capital Investments with Near-Term Returns
Wa rri o r Page 12 Strategic Capital Allocation: Balancing Capital Investments for Medium to Long-Term Growth with Near-Term Returns to Stockholders Free Cash Flow* For the For the development For returns For M&A existing business of Blue Creek to stockholders • Sustaining capital • Development capi
Slide 14: Warrior Remains Committed to Stockholder Returns and Maximizing Stockholder Value
W ar r ior Page 13 Warrior Remains Committed to Stockholder Returns and Maximizing Stockholder Value Proven Track Record of Leveraging Free Cash $ 342 Flow* to Return Excess Cash to Stockholders… 38.0 12.5 $ 607 YTD 2017 2018 2019 2020(1) 2021(2) 2022(3) 2023 2024 Dividends $ 458 $11.36 $6.73 $4.61
Slide 15: 2025 Guidance
Wa rri o r Page 14 2025 Guidance 2025 Guidance Coal Sales 8.2 – 9.0 Mst Coal Production 7.8 – 8.6 Mst Cash Cost of Sales $117 - $127 per St (Free-on-Board Port)* Capital Expenditures for $90 - $100mm Existing Mines Blue Creek Project and Other $225 - $250mm Discretionary Capital Mine Development $95
Slide 16: Blue Creek Update
~~? ssenam eye” Seen “ Py igtle j< a tee Seres =
Slide 17: World-Class Blue Creek Project with High-Return for Growth Under Development
W ar r ior Page 16 World-Class Blue Creek Project with High-Return for Growth Under Development Significant Growth Potential One of the last remaining untapped premium 17.6 quality High Vol A coal reserves in the U.S., that 38% Growth should achieve premium prices Once developed, expected to pro
Slide 18: Blue Creek's Expected Production Ramp During the Development of the Mine
Wa rri o r Page 17 Blue Creek’s Expected Production Ramp During the Development of the Mine Blue Creek Timing Blue Creek Production Ramp CM unit started in Q3 2024 Longwall expected to start no later than Q2 Blue Creek’s production 2026 began in the third quarter of 2024 and currently three 4.8(
Slide 19: Blue Creek Construction Update – Raw Coal Storage
W ar r ior Page 18 Blue Creek Construction Update – Raw Coal Storage Prep Plant Stacker Ra w Belt Stacker Co Prep Belt al Stacker Plant St Belt or ag Raw e Coal Storage Raw Coal Storage Source: Company information
Slide 20: Blue Creek Construction Update – Preparation Plant
W ar r ior Page 19 Blue Creek Construction Update – Preparation Plant Preparation Plant - Preparation Plant – Q3 2024 Q4 2024 Source: Company information
Slide 21: Blue Creek Construction Update – Clean Coal Storage and Overland Belt
W ar r ior Page 20 Blue Creek Construction Update – Clean Coal Storage and Overland Belt Clean Coal Overland Belt Overland Clean Belt Coal Storage Clean Coal Storage Source: Company information
Slide 22: Blue Creek Construction Update – Storage Silos
W ar r ior Page 21 Blue Creek Construction Update –Storage Silos Clean Clean Coal Coal Storage Storage Silos Silos Rail Loadout Rail Loadout Rail Loadout Source: Company information
Slide 23: Blue Creek Construction Update – Rail Loadout
W ar r ior Page 22 Blue Creek Construction Update – Rail Loadout #2 Silo Radial Stacker Radial Stacker Area Area #1 Silo Radial Stacker #2 Silo Area #1 Silo Silos Reclaim Conveyor Reclaim to Loadout Conveyor to Loadout Reclaim Conveyor to Loadout Batch-Weigh Batch-Weigh Loadout Loadout Rail Loadout
Slide 24: Blue Creek Construction Update – Barge Loadout
W ar r ior Page 23 Blue Creek Construction Update –Barge Loadout Open Reclaim/ Storage with Loadout Reclaim Conveyor Tunnel Access Road Source: Company information
Slide 25: Blue Creek Major Project Stages and Milestones
W ar r ior Met Coal Page 24 2022 2023 2024 2025 2026 2027 Major Project Stages and Milestones Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Engineering - Conceptual Permitting Activities Coal Transportation Activities Overland Conveyor to Raw Coal Stockpile Rail Loadout + W
Slide 26: Appendix
Wa rri o r Page 25 Appendix
Slide 27: Appendix: Quarterly Tons and Price Metrics
Wa rri o r Page 26 Appendix For the three months ended For the three months ended December 31, 2024 (Unaudited) December 31, 2023 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 1,887 1,712 1,533 1,391 Tons produced (in 000s) 2,108 1,912 1.970 1,787 Average net selling
Slide 28: Appendix: Annual Tons and Price Metrics
Wa rri o r Page 27 Appendix For the year ended For the year ended December 31, 2024 (Unaudited) December 31, 2023 (Unaudited) Short Tons Metric Tons Short Tons Metric Tons Tons sold (in 000s) 7,975 7,235 7,518 6,820 Tons produced (in 000s) 8,247 7,482 7,646 6,936 Average net selling price per ton $1
Slide 29: Reconciliation of Adjusted EBITDA
Wa rri o r Page 28 Appendix Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA to Amounts Reported Under U.S. GAAP For the three months ended For the year ended December 31, (Unaudited) December 31, (in thousands) 2024 2023 2024 2023 Net income $ 1,136 $ 128,876 $ 250,603 $ 478,629 Intere
Slide 30: Reconciliation of Free Cash Flow
W ar r ior Page 29 Appendix Non-GAAP Financial Measures Reconciliation of Free Cash Flow to Amounts Reported Under U.S. GAAP For the three months ended For the year ended December 31, (Unaudited) December 31, (in thousands) 2024 2023 2024 2023 Net cash provided by operating activities $ 54,207 $ 245
Slide 31: Reconciliation of Adjusted Net Income
W ar r ior Page 30 Appendix Non-GAAP Financial Measures Reconciliation of Adjusted Net Income to Amounts Reported Under U.S. GAAP For the three months ended For the year ended December 31, (Unaudited) December 31, (in thousands) 2024 2023 2024 2023 Net income $ 1,136 $ 128,876 $ 250,603 $ 478,629 As
Slide 32: Reconciliation of Cash Cost of Sales
W ar r ior Page 31 Appendix Non-GAAP Financial Measures Reconciliation of Cash Cost of Sales (Free-On-Board Port) to Cost of Sales Reported Under U.S. GAAP For the three months ended For the year ended December 31, (Unaudited) December 31, (in thousands) 2024 2023 2024 2023 Cost of sales $ 228,808 $