At the current PRB cost level of $12.53 per ton, we recognize near-term margin pressure relative to spot
pricing. It’s important to note, however, that Q1 costs were temporarily elevated by factors that
are not reflective of normalized operations, including higher fuel costs tied to the Middle East
conflict, incremental repair and maintenance activity, and lower volumes from typical shoulder-season
dynamics.
From a strategic standpoint, we are not pursuing a broad acceleration of capital spending at
NARM tied to Executive Order 14241. While we welcome any actions that help streamline permitting, the
priority for our U.S. thermal business remains disciplined capital allocation and strong free cash flow
generation.
Our approach to PRB and NARM is value-focused and demand-driven:
- Increasing volumes were
supported by strong demand and market conditions
- Delivering strong cash flow with minimal capital and
long-term optionality
- Targeting capital toward efficient, reliable operations, not large-scale expansion
or overburden reduction
Importantly, PRB plays a key role in grid reliability and energy security and is
supported by a deep reserve base of approximately 1 billion tons, allowing us to serve customers for the
long term.