2022-05-03 | NYSE:HCC | Press Release

Tactic Made to Unlock Value of Blue Creek Reserves and Return Cash to Stockholders in Larger Price tag Environment

Announces Decision to Speed up Returns to Stockholders with Unique Cash Dividends

Maintains Well balanced Aim on Providing Shorter- and Prolonged-Time period Stockholder Worth

Warrior Satisfied Coal, Inc. (NYSE:HCC) (“Warrior&CloseCurlyDoubleQuote or the “Company&CloseCurlyDoubleQuote) today supplied an update on its funds allocation method designed to speed up returns to stockholders as a result of specific hard cash dividends and also to unlock the value of its transformational growth financial investment in the Organization&CloseCurlyQuotes Blue Creek reserves, which Warrior announced before right now that it would be relaunching.

Also before nowadays, Warrior&CloseCurlyQuotes board of administrators declared a specific money dividend of $.50 per share to be paid out on Might 20, 2022, to stockholders of report as of the near of company on May 13, 2022.

“We are delighted to share our recent technique to capital allocation, which balances value-maximizing money investments for medium to prolonged-term growth with in the vicinity of-phrase returns to stockholders,&CloseCurlyDoubleQuote stated Dale Boyles, CFO of Warrior. “The new shift to a higher value ecosystem, and the outlook for a continuation of that surroundings for the around foreseeable future, presents us the opportunity to deploy our capital on two important fronts – unique dividends (in addition to our normal quarterly dividends) and the Blue Creek venture.

“While we continue on to comply with the rules established out in our earlier cash allocation coverage, our prudent cash management has enabled us to manage by the pandemic and arise in a stronger liquidity placement than two decades in the past. With this extra degree of flexibility, we are dedicated to sustain a balanced aim on delivering brief and prolonged-time period stockholder benefit.&CloseCurlyDoubleQuote

Mr. Boyles continued, “Even just after considering the funding demanded to relaunch the progress of Blue Creek, Warrior is envisioned to create strong no cost dollars movement over the design period in most price tag environments. Although we will often harmony the return of money to stockholders with the profit of keeping ample liquidity to insulate the company against an unexpected detrimental shift in satisfied coal prices, our Board has established that some of Warrior&CloseCurlyQuotes cash on hand is very best returned directly to stockholders at this time. Steady with our technique to balancing stockholder returns with money investments for growth, the Board will continue on to look at spending specific dividends or acquiring back inventory transferring forward as the pricing atmosphere allows.&CloseCurlyDoubleQuote

The Company pointed out that it has not altered its funds allocation plan as a final result of its introduced intention to relaunch the advancement of Blue Creek. Even though the Firm has paid out some big exclusive dividends in prior substantial satisfied coal cost environments, any long run exclusive dividends or stock repurchases from excess cash flows will be at the discretion of the board of administrators and matter to thought of a selection of things, which include small business and sector ailments, future fiscal general performance, and other strategic investment options.

Strategy to Money Allocation

Supplied the present marketplace dynamics for achieved coal, Warrior is furnishing further detail on its wide tactic to cash allocation, which continues to stick to its lengthy-standing latest capital allocation plan. Warrior is dedicated to continuing to run as a reduced expense, small leverage corporation with potent liquidity to keep adaptability by way of marketplace cycles and volatility in the satisfied coal marketplace. This method has enabled it to go on operations effectively in the previous irrespective of considerable headwinds, which includes an unpredicted and extended reduced pricing ecosystem as a consequence of COVID-19.

Conceptually, Warrior&CloseCurlyQuotes solution to cash allocation rests on the adhering to concepts:

• Making sure the company has the funding to manage operations, uninterrupted, and make essential capex investments in the mines regardless of any potential volatility in the selling price of met coal
• Maintaining the capability to devote in initiatives, like Blue Creek, or in very accretive inorganic chances that can deliver important stockholder benefit more than the medium- and long-phrase and
• Leveraging cost-free hard cash flow to return raising quantities of funds to stockholders by using raises in quarterly dividends, as met coal charges permit, spending one particular or various unique dividends, as correct, and shopping for again inventory. The return of capital to stockholders will be subject to surprising boosts in inflation and other functions that are outside of our management.

Warrior programs to concentrate on specified essential metrics as it decides the finest use of its hard cash and no cost money flow throughout the improvement of Blue Creek:

• Sustain better overall minimal liquidity of $250 million and hard cash of $150 million all through the growth of Blue Creek
• Continue to keep leverage below 1.5x – 2x Altered EBITDA and
• Balance benefit of NOLs with share buybacks, which could jeopardize individuals NOLs.

Additional broadly, Warrior intends to return income to stockholders in more powerful price markets where the Firm is producing important amounts of totally free money move, and less funds to stockholders for the duration of weaker markets. Warrior intends to take into account the use of inventory buybacks when there is no shorter- or prolonged-expression use for further income that will supply significant benefit to stockholders.

About Warrior

Warrior is a U.S.-based mostly, environmentally, and socially minded provider to the world steel business. It is committed entirely to mining non-thermal metallurgical (fulfilled) coal made use of as a significant part of steel production by metallic brands in Europe, South America, and Asia. Warrior is a big-scale, small-charge producer and exporter of top quality fulfilled coal, also acknowledged as difficult-coking coal (HCC), working highly economical longwall functions in its underground mines based in Alabama. The HCC that Warrior produces from the Blue Creek, AL, coal seam incorporates really reduced sulfur, has potent coking homes and is of a equivalent high-quality to coal referred to as the top quality HCC created in Australia. The high quality nature of Warrior&CloseCurlyQuotes HCC helps make it preferably suited as a base feed coal for metal makers and success in value realizations near the Platts Index rate. For far more details, you should stop by www.warriormetcoal.com.

Ahead-Seeking Statements

This press launch contains, and the Corporation&CloseCurlyQuotes officers and representatives may perhaps from time to time make, forward-looking statements within just the that means of Area 27A of the Securities Act of 1933, as amended and Portion 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical info, provided in this press launch that tackle things to do, activities or developments that the Firm expects, believes or anticipates will or might come about in the future are forward-hunting statements and are centered on present market place circumstances and are for that reason subject matter to improve, like desire for metallurgical coal, Significant-Vol A metallurgical coal or or else, and projected or envisioned results or returns from the progress of Blue Creek, which includes envisioned production stages, envisioned price tag situation, predicted mine lifetime, and projected cost-free dollars circulation era. Ahead-seeking statements by their mother nature deal with matters that are, to unique levels, unsure and depend upon critical estimates and assumptions concerning our financial and operating benefits. No representations or warranties are built by us as to the accuracy of any this kind of forward-searching statements. The inclusion of this facts should really not be regarded as an sign that we contemplate it to be necessarily predictive of real future final results. The phrases “believe,&CloseCurlyDoubleQuote “expect,&CloseCurlyDoubleQuote “anticipate,&CloseCurlyDoubleQuote “plan,&CloseCurlyDoubleQuote “intend,&CloseCurlyDoubleQuote “estimate,&CloseCurlyDoubleQuote “project,&CloseCurlyDoubleQuote “target,&CloseCurlyDoubleQuote “foresee,&CloseCurlyDoubleQuote “should,&CloseCurlyDoubleQuote “would,&CloseCurlyDoubleQuote “could,&CloseCurlyDoubleQuote “potential,&CloseCurlyDoubleQuote or “outlook,&CloseCurlyDoubleQuote “guidance&CloseCurlyDoubleQuote or other equivalent expressions are supposed to establish forward-looking statements. Having said that, the absence of these words does not indicate that the statements are not forward-looking. These ahead-looking statements depict management&CloseCurlyQuotes fantastic religion anticipations, projections, assistance, or beliefs relating to foreseeable future situations, and it is probable that the final results described in this press release will not be obtained. These forward-on the lookout statements are issue to hazards, uncertainties and other factors, several of which are outside the house of the Company&CloseCurlyQuotes regulate, that could bring about true success to differ materially from the results mentioned in the ahead-looking statements, together with, without having limitation, the condition of the world financial system, fluctuations or alterations in the pricing or demand from customers for the Enterprise&CloseCurlyQuotes coal (or fulfilled coal commonly) by the world steel sector federal and state tax laws modifications in interpretation or assumptions and/or up-to-date regulatory assistance concerning the Tax Cuts and Careers Act of 2017 laws and regulations relating to the Clean up Air Act and other environmental initiatives regulatory needs associated with federal, point out and local regulatory agencies, and these organizations&CloseCurlyQuote authority to get temporary or lasting closure of the Company&CloseCurlyQuotes mines or temporary or lasting suspension of the Blue Creek undertaking operational, logistical, geological, permit, license, labor and weather-relevant things, such as equipment, permitting, site access, operational hazards and new systems related to mining inaccuracies in the Business&CloseCurlyQuotes estimates of its achieved coal reserves significant value boosts and fluctuations, and delay in the supply of uncooked materials, mining products and procured components competitiveness and foreign currency fluctuations fluctuations in the amount of money of income the Organization generates from operations the Organization&CloseCurlyQuotes means to comply with covenants in its ABL Facility or indenture relating to its senior secured notes suitable liquidity and the price tag, availability and obtain to cash and economical marketplaces failure to acquire or renew surety bonds on suitable phrases, which could have an impact on the Organization&CloseCurlyQuotes means to protected reclamation and coal lease obligations expenditures associated with litigation, which include statements not but asserted and other aspects described in the Company&CloseCurlyQuotes Kind 10-K for the yr finished December 31, 2021 and other stories submitted from time to time with the Securities and Trade Fee (the “SEC&CloseCurlyDoubleQuote), which could trigger the Business&CloseCurlyQuotes actual results from the enhancement of Blue Creek to vary materially from people contained in any ahead-searching statement. The Company&CloseCurlyQuotes filings with the SEC are accessible on its website at www.warriormetcoal.com and on the SEC’s website at www.sec.gov.

Any ahead-on the lookout statement speaks only as of the day on which it is designed, and, except as required by legislation, the Organization does not undertake any obligation to update or revise any forward-seeking statement, no matter if as a end result of new information and facts, long run activities or otherwise. New things emerge from time to time, and it is not doable for the Corporation to predict all these types of elements.

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