Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 5—INCOME TAXES:

The components of income tax (benefit) expense were as follows:

	Year Ended December 31,
	2025		2024		2023
Current:
U.S. Federal	$	349	$	34,009	$	100,572
U.S. State	135		1,413		7,287
	484		35,422		107,859
Deferred:
U.S. Federal	(76,470)		9,557		12,528
U.S. State	(4,501)		(737)		1,593
	(80,971)		8,820		14,121
Total Income Tax (Benefit) Expense	$	(80,487)	$	44,242	$	121,980

During the year ended December 31, 2025, the Company adopted ASU 2023-09 Income Taxes prospectively. A reconciliation of income tax benefit and the amount computed by applying the statutory federal income tax rate of 21% to loss before income tax for the year ended December 31, 2025 is as follows:

	Year Ended December 31,
	2025
	Amount		Percent
Statutory U.S. federal income tax rate	$	(49,078)	21.0	%
State income taxes, net of federal tax benefit (a)	(3,449)		1.5
Research and development tax credits	(750)		0.3
Nontaxable or nondeductible items:
Excess tax depletion	(36,346)		15.6
Compensation	6,896		(3.0)
Other	2,017		(0.9)
Changes in unrecognized tax positions	(843)		0.4
Other adjustments	1,066		(0.5)
Income Tax Benefit / Effective Rate	$	(80,487)	34.4	%

(a) State taxes in Pennsylvania, Maryland and West Virginia made up the majority of the tax effect in this category for the year ended December 31, 2025.

A reconciliation of income tax expense and the amount computed by applying the statutory federal income tax rate of 21% to earnings before income tax for the years ended December 31, 2024 and 2023 is as follows:

	Year Ended December 31,
	2024				2023
	Amount		Percent		Amount		Percent
Statutory U.S. federal income tax rate	$	69,436	21.0	%	$	163,353	21.0	%
State income taxes, net of federal tax benefit	3,017		0.9		7,618		1.0
Excess tax depletion	(22,397)		(6.8)		(26,802)		(3.5)
Foreign derived intangible income	(4,501)		(1.4)		(23,545)		(3.0)
Uncertain tax positions	(1,452)		(0.4)		36		—
Compensation	1,480		0.5		2,284		0.3
Tax credits	(1,000)		(0.3)		(700)		(0.1)
State rate change and prior period adjustments	(644)		(0.2)		(809)		(0.1)
Other	303		0.1		545		0.1
Income Tax Expense / Effective Rate	$	44,242	13.4	%	$	121,980	15.7	%

Significant components of deferred tax assets and liabilities were as follows:

	December 31,
	2025		2024
Deferred Tax Asset:
Net operating loss	$	222,317	$	1,097
Pneumoconiosis benefits	59,729		31,663
Postretirement benefits other than pensions	44,587		40,226
Asset retirement obligations	43,406		40,445
Other	55,568		43,638
Total Deferred Tax Asset	425,607		157,069
Valuation Allowance	(75,338)		—
Net Deferred Tax Asset	350,269		157,069
Deferred Tax Liability:
Equity Partnerships	(410,966)		(155,039)
Property, plant and equipment	(54,626)		(39,154)
Other	(14,790)		(12,090)
Total Deferred Tax Liability	(480,382)		(206,283)
Net Deferred Tax Liability	$	(130,113)	$	(49,214)

At December 31, 2025, the Company had gross federal net operating loss carryforwards of $717,286. Of these carryforwards, $112,605 will expire, if not utilized, starting in 2037. The remaining carryforwards have no expiration; however, they can only be used to offset 80% of the Company’s U.S. federal taxable income in any taxable year.

At December 31, 2025, the net operating loss deferred tax asset of $222,317 comprised federal and state components of $150,636 and $71,681, respectively. Certain state net operating loss carryforwards will begin to expire starting in 2026.

The Company assesses the need for a valuation allowance against its deferred tax assets, including temporary differences and tax attributes, through a review of all available positive and negative evidence. On the basis of this assessment, as of December 31, 2025, the Company had a valuation allowance against certain state net operating loss and capital loss carryforwards.

A reconciliation of the beginning and ending amount of the valuation allowance is as follows:

	Year Ended December 31,
	2025
Balance at January 1	$	—
Valuation Allowance Acquired in Merger	77,269
Deductions	(1,931)
Balance at December 31 (a)	$	75,338

(a) There were no valuation allowances during the years ended December 31, 2024 and 2023.

Income Taxes Paid

Income taxes paid by jurisdiction were as follows:

	Year Ended December 31,
	2025
U.S. federal income taxes paid, net of refunds received	$	450
State and local income taxes paid, net of refunds received	50
Total Income Taxes Paid	$	500

Unrecognized Tax Benefits

The Company utilizes the “more likely than not” standard in recognizing a tax benefit in its financial statements. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended December 31,
	2025		2024		2023
Balance at January 1	$	—	$	1,987	$	1,941
Additions based on tax positions related to the current year	—		—		22
Additions for tax positions of prior years	6,808		—		24
Reductions due to the statute of limitations	(855)		—		—
Settlements	—		(1,987)		—
Balance at December 31	$	5,953	$	—	$	1,987

If recognized, the Company’s unrecognized tax benefits at December 31, 2025 would impact the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company had no accrued interest and penalties at December 31, 2025 and 2024.

The Company expects a decrease in its net unrecognized tax benefits of $844 during the next 12 months due to the expiration of statutes.

The Company is primarily subject to taxation in the U.S. and its various states. Due to the existence of federal and state net operating losses, the Company’s federal and state income tax returns may be open to examination beyond the typical statutes of limitations periods.