Warrior Upgraded by S&P to ‘BB-’ with Stable Outlook
31 Julho 2024 - 5:45PM
Business Wire
Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”)
today announced that S&P Global Ratings (“S&P”) has
upgraded its Corporate Family Rating (“CFR”) to ‘BB-’ from ‘B+’ on
Balance Sheet Strength with a Stable Outlook. In addition, S&P
raised its issue-level rating on the Company’s senior secured notes
to ‘BB+.’
According to S&P, the upgrade reflects consecutive years of
very low leverage, robust earnings, and ample cushion in credit
metrics to withstand earnings volatility. Free cash flow is
expected to remain positive despite elevated growth capex
associated with Blue Creek.
“We are pleased with S&P’s recognition of the Company’s
strong balance sheet and financial performance over the last few
years in which we delevered the Company and generated consistent
incremental returns for stockholders, while at the same time
investing for growth through our world class Blue Creek growth
project,” said Dale W. Boyles, Chief Financial Officer of
Warrior.
About Warrior
Warrior is a U.S.-based, environmentally, and socially minded
supplier to the global steel industry. It is dedicated entirely to
mining non-thermal metallurgical (met) coal used as a critical
component of steel production by metal manufacturers in Europe,
South America, and Asia. Warrior is a large-scale, low-cost
producer and exporter of premium quality met coal, also known as
hard coking coal (“HCC”), operating highly efficient longwall
operations in its underground mines based in Alabama. The HCC that
Warrior produces from the Blue Creek coal seam contains very low
sulfur and has strong coking properties. The premium nature of
Warrior’s HCC makes it ideally suited as a base feed coal for steel
makers. For more information, please visit
www.warriormetcoal.com.
Forward-Looking Statements
This press release contains, and the Company’s officers and
representatives may from time to time make, forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that the Company expects,
believes or anticipates will or may occur in the future are
forward-looking statements, including statements regarding earnings
volatility, free cash flow and expected capital expenditures. The
words “believe,” “expect,” “anticipate,” “plan,” “intend,”
“estimate,” “project,” “target,” “foresee,” “should,” “would,”
“could,” “potential,” “outlook,” “guidance” or other similar
expressions are intended to identify forward-looking statements.
However, the absence of these words does not mean that the
statements are not forward-looking. These forward-looking
statements represent management’s good faith expectations,
projections, guidance, or beliefs concerning future events, and it
is possible that the results described in this press release will
not be achieved. These forward-looking statements are subject to
risks, uncertainties and other factors, many of which are outside
of the Company’s control, that could cause actual results to differ
materially from the results discussed in the forward-looking
statements, including, without limitation, fluctuations or changes
in the pricing or demand for the Company’s coal (or met coal
generally) by the global steel industry; the impact of global
pandemics, such as the novel coronavirus ("COVID-19") pandemic, on
its business and that of its customers, including the risk of a
decline in demand for the Company's met coal due to the impact of
any such pandemic on steel manufacturers; the impact of inflation
on the Company, the impact of geopolitical events, including the
effects of the Russia-Ukraine war; the inability of the Company to
effectively operate its mines and the resulting decrease in
production; the inability of the Company to transport its products
to customers due to rail performance issues or the impact of
weather and mechanical failures at the McDuffie Terminal at the
Port of Mobile; federal and state tax legislation; changes in
interpretation or assumptions and/or updated regulatory guidance
regarding the Tax Cuts and Jobs Act of 2017; legislation and
regulations relating to the Clean Air Act and other environmental
initiatives; regulatory requirements associated with federal, state
and local regulatory agencies, and such agencies’ authority to
order temporary or permanent closure of the Company’s mines;
operational, logistical, geological, permit, license, labor and
weather-related factors, including equipment, permitting, site
access, operational risks and new technologies related to mining
and labor strikes or slowdowns; the timing and impact of planned
longwall moves; the Company’s obligations surrounding reclamation
and mine closure; inaccuracies in the Company’s estimates of its
met coal reserves; any projections or estimates regarding Blue
Creek, including the expected returns from this project, if any,
and the ability of Blue Creek to enhance the Company's portfolio of
assets, the Company's expectations regarding its future tax rate as
well as its ability to effectively utilize its net operating losses
to reduce or eliminate its cash taxes; the Company's ability to
develop Blue Creek; the Company’s ability to develop or acquire met
coal reserves in an economically feasible manner; significant cost
increases and fluctuations, and delay in the delivery of raw
materials, mining equipment and purchased components; competition
and foreign currency fluctuations; fluctuations in the amount of
cash the Company generates from operations, including cash
necessary to pay any special or quarterly dividend; the Company’s
ability to comply with covenants in its ABL Facility or indenture
relating to its senior secured notes; integration of businesses
that the Company may acquire in the future; adequate liquidity and
the cost, availability and access to capital and financial markets;
failure to obtain or renew surety bonds on acceptable terms, which
could affect the Company’s ability to secure reclamation and coal
lease obligations; costs associated with litigation, including
claims not yet asserted; and other factors described in the
Company’s Form 10-K for the year ended December 31, 2023 and other
reports filed from time to time with the Securities and Exchange
Commission (the “SEC”), which could cause the Company’s actual
results to differ materially from those contained in any
forward-looking statement. The Company’s filings with the SEC are
available on its website at www.warriormetcoal.com and on the SEC's
website at www.sec.gov.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all such
factors.
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version on businesswire.com: https://www.businesswire.com/news/home/20240731961163/en/
For Investors: Dale W. Boyles, 205-554-6129
dale.boyles@warriormetcoal.com
For Media: D’Andre Wright, 205-554-6131
dandre.wright@warriormetcoal.com
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