Good afternoon. My name is Rocco, and I will be your conference operator today. At this time, I would like to welcome everyone to the Warrior Met Coal Q1 2022 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press *, then the number one on your telephone keypad. If you would like to withdraw your question, please press star, then two. This call is being recorded and will be available for replay on the company's website. Before we begin, I have been asked to note that today's discussion may contain forward-looking statements and actual results may differ materially from those discussed. For more information regarding forward-looking statements, please refer to the company's press release and SEC filings. I've also been asked to note that the company has posted reconciliations of the non-GAAP financial measures discussed during this call in the tables accompanying the company's earnings press release located on the investor section of the company's website at www.warriormetcoal.com. In addition to the earnings release, the company has posted a brief supplemental slide presentation to the investor section of its website at www.warriormetcoal.com. Here today to discuss the company's results are Mr. Walt Scheller, Chief Executive Officer, and Mr. Dale Boyles, Chief Financial Officer. Mr. Scheller, you may begin your remarks, sir. Thanks, operator. Hello, everyone, and thank you for taking the time to join us today to discuss our Q1 2022 results. After my remarks, Dale will review our results in additional detail, and then you'll have the opportunity to ask questions. We were pleased to deliver our second consecutive quarter of record quarterly earnings in over 3 years on the back of strong customer demand. The global supply of met coal remained tight during the Q1, even with China continuing to reduce its steel production. We're well-positioned to continue meeting our customer commitments, even in the face of potential global economic volatility in the future. Demand for premium met coals was strong throughout the Q1 due to sustained steel production and due to restocking by customers. We also experienced a short-term surge in demand due to panic buying associated with the Russian invasion of Ukraine. The Russian buyers searching for alternative coals in an already tight market pushed prices into uncharted territory. The latter event was largely responsible for making this past quarter the most volatile pricing period in recent history. However, the spike in pricing was short-lived as we saw all major indices give back a substantial portion of the gains brought on by the war. Our primary index, the PLV FOB Australia, started the quarter at $357 per metric ton, then climbed by over $313 per metric ton to its peak of $671 per metric ton on March fourteenth, while closing the quarter at $515 per metric ton. In addition to strong demand, supply shortages continued to be a problem due to a mix of weather-related issues in Australia and logistical constraints in North America. As previously mentioned, the Russian invasion of Ukraine only exacerbated the already tight market conditions. We were expecting Chinese buyers to initiate purchases of imported coals from the U.S. following the Olympic Games. However, they remained mostly on the sidelines for the entire quarter. Only a few transactions between North American suppliers and Chinese customers were completed in the very early days of the quarter. With lower steel production for most of the quarter, the Chinese steel mills were able to manage the strong domestic coal production and imported landborne coals from Mongolia, albeit lower than historical levels, as well as the residual Australian coals in the bonded warehouses. The World Steel Association recently reported that global pig iron production decreased by 8.8% in the first three months of 2022. China recorded a decrease in production of 11% for the period, while the rest of the world's pig iron production decreased by 4.3%. China's lower steel production is largely due to measures put in place for the Olympics, as well as recent shutdowns related to COVID restrictions. While lower steel production volumes in the rest of the world were due to the ongoing supply chain issues, overall steel demand remained solid despite the lower volumes compared to the previous year. As for Warrior, our sales volume in the Q1 this year was 1.1 million short tons compared to 2 million short tons in the same quarter last year. This quarter was lower than last year, primarily due to the ongoing labor strike, lowering total production volume, plus approximately 100,000 tons that slipped into the Q2 due to shipping delays at the port. Dredging maintenance and congestion in the first half of the quarter delayed some shipments into March, while a mechanical failure of the ship loader in the last few weeks of the quarter delayed our final vessel loadings, which caused the volume slippage into the Q2. These issues resulted in 54% of our sales volume shipping in March, back-end loading the quarter sales volume and incurring higher demurrage costs of nearly $3 million. In addition, although not as significant, was the poor performance of our rail transportation provider in getting our product to the port in a timely manner. We believe these delays reduced our Q1 adjusted EBITDA by approximately $40 million, net income by $32 million, and EPS by $0.63. Our sales by geography in the Q1 were 66% into Europe, 13% into South America, and 21% into Asia. We did not sell any volume into China during the Q1 as the CFR China index price was below the Australian FOB price the entire quarter, except for three days in early January. Our spot sales in the Q1 were approximately 15%. Production volume in the Q1 this year was 1.5 million short tons compared to 2.2 million short tons in the same quarter of last year. The tons produced in the Q1 resulted from running both longwalls and 5 continuous miner units at Mine 7 and 2 continuous miner units in the longwall at Mine 4. Our lead days on the longwalls did not materially change during the quarter and remained solid. The mines ran well and very efficiently in the Q1 as we ramped up production at Mine 4 to about 50% of its nameplate capacity or 1,000,000 tons. We finished the quarter running the mines with a combination of salaried and hourly employees, representing approximately 50% of the normal workforce while producing approximately 75% of the normal production volume. Capital spending in mine development in the Q1 this year was $20 million and remains on target for the full year, including the work on the Four North portal, which we expect to be completed early next year. On that note, in light of the company's current free cash flow generation and our philosophy to invest in our core business, our board recently approved the purchase of two new sets of longwall shields for the existing mines. This represents another significant investment of approximately $100 million to keep our mines well capitalized and performing most efficiently. We expect to make down payments this year, which is reflected in our annual guidance, and final delivery is expected to be in the Q3 of 2023. Before I ask Dale to address our Q1 results in greater detail, I wanted to take a moment to comment on the exciting and important announcements we made earlier this week. Specifically, we announced the relaunch and the development of our Blue Creek reserves, our decision to accelerate stockholder returns with special cash dividends, with the first dividend of $0.50 per share, and an update on our approach to capital allocation. I'll start by discussing our capital allocation approach since it provides the umbrella framework for understanding how we think about our short and long-term stockholder value creation. It also explains why our board decided to unlock the value of Blue Creek and enhance stockholder returns with special cash dividends in addition to our regular quarterly dividends. First, let us look at where we are from a cash and operating perspective. We have a much stronger cash position today than we were 2 years ago, having generated significant free cash flow over the last 2 years. Based upon the current industry outlook for higher met coal pricing in the near term, we will continue to generate significant amounts of free cash flow in the future. Second, we've demonstrated our ability to operate as a low-cost, low-leverage company with strong liquidity to maintain flexibility through market cycles and volatility in the met coal market. This approach has enabled us to continue operating successfully over the past few years despite significant headwinds. That will not change regardless of met coal pricing or our cash position. Third, at this point, we've built up the necessary liquidity to allow us to put our capital to work, both through making prudent investments in our business and returning cash to stockholders. In summary, while we're following the same long-standing capital allocation principles as we always have, our cash balance and free cash flow generation give us additional flexibility and scale. Dale will have more to say about our capital allocation in a moment. For now, let me tell you that everyone within Warrior is extremely excited about the potential of Blue Creek to transform the company. We're enthusiastic about the opportunity to build on a strong track record of creating value for stockholders with this project. Importantly, the timing for relaunching this project is ideal. We believe that the demand for premium High Vol A coals will continue to increase due to their unique blending attributes, while the overall supply of premium coals will remain constrained due to declining production and a lack of new projects, which will support strong pricing fundamentals in the future. Blue Creek's Tier 1 High Vol A quality and the lack of Tier 1 projects in the United States suggests considerable demand for our product. Another attractive feature of this new mine is that we expect production costs to be in the first quartile of the global seaborne cost curve. We believe the combination of these factors will generate some of the highest met coal margins in the U.S. Once fully developed, Blue Creek is expected to expand our product portfolio to our global customers by offering three premium hard coking coals that are expected to achieve the highest premium met coal prices in the seaborne markets. The new single longwall mine at Blue Creek is expected to produce an average of 4.8 million short tons per year of premium High Vol A met coal. Once we've developed Blue Creek, we expect that this new mine could increase our annual production nameplate capacity to nearly 13 million short tons per year, resulting in an annual production growth rate of 60%. We control approximately 70 million short tons of reserves and 49 million short tons of resources at Blue Creek, which totals 119 million short tons. Based on the current schedule, we expect the first development tons from continuous miner units to occur in the Q3 of 2024. With the longwall scheduled to start up in the Q2 of 2026. All this detail and much more can be found in a slide presentation on the IR section of our website. As I mentioned, Blue Creek represents a transformational opportunity for Warrior. We could not be more excited to start this project and look forward to seeing the fruits of our investment once the development is completed. I'll now ask Dale to address our Q1 results in greater detail, provide some additional metrics around our capital allocation strategy, and provide additional information on how we are approaching the financing for Blue Creek. Thanks, Walt. Before I go into detail about the quarter, I want to address how we're thinking about capital allocation while we move ahead with the Blue Creek project. Given our strong liquidity position, now is the appropriate time to provide additional context to our thinking. In the press release we issued on May third, we laid out our current policy in regard to capital allocation, which focuses on our ability to fund the operations regardless of volatility in the met coal market, investing in highly accretive growth opportunities such as Blue Creek, and leveraging our free cash flow to return cash to stockholders through special cash dividends or stock repurchases. More specifically, there are certain key metrics that we're focusing on achieving as we make those capital allocation decisions, including through the development of Blue Creek. They include, first, maintaining a higher amount of minimum total liquidity of $250 million, including a minimum cash balance of $150 million. Second, staying 1.5-2 times levered. Third, balancing the value of our NOLs with stock repurchases, which could jeopardize those NOLs. We believe strongly that our capital allocation policy and our key metric guidelines provide the right approach. They balance capital investments for medium- to long-term growth with near-term returns to our stockholders. Turning now to Blue Creek. In determining to move forward with the project, we compared the Blue Creek potential to our investment criteria. With Blue Creek as one of the rare large-scale Tier 1 assets in the country, we expect the project to deliver an attractive internal rate of return on our investment of approximately 30%. As we think about how best to account for the $650 million-$700 million investment, we will be opportunistic in evaluating funding alternatives beyond our free cash flow. If there are financially prudent opportunities to tap external financial resources, we will look to do so. We're pleased that our strong base of operations has enabled us to take this flexible approach. However, we expect to generate enough free cash flow during the five-year construction period to pay for the project entirely in cash, pay special dividends or repurchase stock, and retire our debt early by as much as two years. At that point, we expect the company would be debt-free while producing approximately 13 million short tons per year. In considering the timing of the development of Blue Creek and the required investment, there are several internal and external factors that influence our decision to move forward with the project now despite the inflation we are currently experiencing. First, we refinanced our debt in the Q4 last year and pushed out the maturity until late 2028, well beyond the start of the Blue Creek longwall in 2026. Second, our cash and liquidity has significantly increased since we originally announced our intention with Blue Creek in early 2020, including an additional $241 million of cash and an additional $247 million of total liquidity on our balance sheet. Third, the strength of both current market conditions and high prices should allow the company to generate strong free cash flows this year, further reducing the funding risk of the project. Fourth, accelerating the project timeline by 15 months also brings production online sooner, thereby increasing profitability and free cash flows in the next five years, two years before the maturity of our senior notes. Fifth, financing options still remain available if needed to maintain an efficient and low-cost capital structure. Finally, in addition to these factors, we expect to generate strong free cash flows over the five-year construction period that will provide further liquidity to balance both the development of Blue Creek and make additional cash returns to stockholders. These factors, combined with the value that Blue Creek can deliver to our stockholders, give us confidence in the success of the project. With that, I will turn to the Q1 results. For the Q1 of 2022, the company recorded its second consecutive quarter of record quarterly results of net income on a GAAP basis of $146 million or $2.83 per diluted share, compared to a net loss of $21 million or $0.42 per diluted share in the same quarter last year. Non-GAAP adjusted net income for the Q1, excluding the non-recurring business interruption expenses, idle mine expenses, and other income, was $2.97 per diluted share compared to an adjusted net income of $0.08 per diluted share in the same quarter last year. Adjusted EBITDA was $244 million in the Q1 this year, another all-time record high for a quarter, as compared to $47 million in the same quarter last year. The quarterly increase was primarily driven by a 220% increase in average net selling prices, partially offset by a 42% decrease in sales volume. Our adjusted EBITDA margin was 64% in the Q1 this year compared to 22% in the same quarter last year. We believe the financial impact of the shipping delays that Walt previously noted reduced the Q1 sales volume by 100,000 short tons, adjusted EBITDA by approximately $40 million, net income by $32 million, and EPS by $0.63 per share. The impact of the delays was magnified by the current high pricing environment. Total revenues were $379 million in the Q1 compared to $214 million in the same quarter last year. This 77% increase was primarily due to the 220% increase in average net selling prices, partially offset by 42% lower sales volumes in the Q1 versus the same period last year. In addition, other revenues were positively impacted in the Q1 this year by an 87% increase in our natural gas prices, offset by non-cash mark-to-market loss on our gas hedges of approximately $13 million. This mark-to-market hedge loss is attributed to hedges put into place prior to the war in Ukraine, which has triggered a run-up in natural gas prices recently. Our gas operations are generating strong results, just not as much as they could be due to the hedges. The Platts Premium Low Vol FOB Australia index price averaged $361 per metric ton higher and was up 284% in the Q1 this year compared to the same quarter last year. The index price averaged $488 per metric ton for the Q1. Demurrage and other charges reduced our gross price realization to an average net selling price of $339 per short ton in the Q1 this year, compared to $106 per short ton in the same quarter last year. Demurrage charges were approximately $3 million higher in the Q1 this year versus last year, primarily due to the port delay issues that Walt discussed earlier in his comments. Cash cost of sales was $134 million, or 35% of mining revenues in the Q1, compared to $154 million or 74% of mining revenues in the same quarter last year. The decrease in total dollars was primarily due to a $65 million impact of 42% lower sales volume, partially offset by $45 million of higher variable costs associated with price sensitive wages, transportation, and royalty costs. In addition, our costs were higher due to inflation increases on belt structure, roof bolts, cable, magnetite, rock dust, and other materials and equipment. Despite the higher variable costs and inflation, cash margins were $220 per short ton in the Q1 compared to only $27 per short ton in the same period last year, demonstrating the leverage to higher met coal prices, driving both profitability and free cash flow. Cash cost of sales per short ton FOB port was approximately $119 in the Q1 compared to $79 in the same quarter last year. Transportation royalty costs accounted for $32 of the increase, plus an increase in production costs due to rising inflation of approximately $3 per short ton. Cash costs on price sensitive items such as wages, transportation, and royalties that vary with met coal pricing were significantly higher in the Q1 this year compared to the same quarter last year. As you may remember, transportation costs lag on a one-quarter basis and index prices averaged $361 higher in the Q1 versus the same quarter last year. As a result of the significantly higher prices period-over-period, variable transportation royalty costs are significantly larger components of the cost per ton than the normal approximately one-third percentage. Variable transportation royalty costs were 46% of the cost per ton of $119 in the Q1 this year, compared to only 29% in the same quarter last year, driven primarily by higher met coal pricing. As coal prices stay at or near these all-time highs, we expect our transportation royalty costs to be a higher percentage of our total cash costs in the coming quarters. SG&A expenses were about $14 million or 3.7% of total revenues in the Q1 this year and were higher than the same quarter last year, primarily due to higher stock compensation expense due to retirement eligible employee equity grants and a 60% higher stock price. During the Q1, we incurred incremental non-recurring business interruption expenses of $7 million that were directly related to the ongoing labor strike. These non-recurring expenses were primarily for incremental safety and security, legal and labor negotiations, and other expenses. Idle mine expenses were $3 million in the Q1 and represent expenses incurred with the operations at both mines running at reduced capacities such as electricity, insurance, maintenance, labor, taxes, and are primarily fixed in nature. Turning to cash flow. During the Q1 this year, we generated $50 million of free cash flow, which resulted from cash flows provided by operating activities of $70 million, less cash used for capital expenditures and mine development costs of $20 million. This resulted in free cash flow conversion of 20% this quarter versus last year's Q1 of 50%. Free cash flow in the Q1 of this year was negatively impacted by a $159 million increase in net working capital from the Q4 of 2021. The increase in net working capital was primarily due to an increase in accounts receivable on higher met coal pricing, combined with lower sales volumes, which increased our inventories due to the shipping delays previously noted. Our total available liquidity at the end of the Q1 was $557 million, representing an increase of $78 million or 16% over the Q4 of 2021, and consisted of cash and cash equivalents of $434 million and $123 million available under our ABL facility. This is net of outstanding letters of credit of approximately $9 million. Now turning to our outlook and guidance for 2022. We believe we are well-positioned to fulfill anticipated customer commitments for 2022. In the current operating environment and without a new labor contract, we believe that we'll be able to meet our production and sales volumes, including the outlook section of our earnings release. The volumes outlined include the restart of mine 4 at about 50% of capacity and running mine 7 at lower operating rates than normal production. I'll now turn it back to Walt for his final comments. Thanks, Dale. Before we move on to Q&A, I'd like to make some final comments on our outlook for the Q2 and full year of 2022. As Dale noted earlier in his remarks, our cash cost per short ton in the Q1 of 2022 was significantly higher due to the variable components of our cost structure, such as wages, transportation, and royalties, plus the impact of inflation. We expect this trend of higher transportation and royalty costs to continue into the coming quarters until prices normalize back to historical levels. Another factor that may negatively impact our cash costs is the impact of rising inflation, as we noted earlier. U.S. inflation in March hit its fastest pace in four decades as pandemic-related supply and demand imbalances, along with stimulus measures intended to shore up the economy, pushed the Consumer Price Index up to an 8.5% annual rate, a 40-year high. As we stated last quarter, we're expecting anywhere from 10%-25% increases in steel prices, freight rates, labor, and other materials and supplies this year. As Dale noted earlier, we incurred approximately $3 per short ton of higher inflation during the Q1 this year. These inflation increases affect, among other things, the cost of belt structures, roof bolts, cable, magnetite, rock dust, and machinery and equipment purchases. The first few weeks of the current quarter have brought renewed strength in the met coal indices as additional sanctions and outright bans of Russian coals are making it difficult for certain customers to continue purchasing from Russian coal suppliers. We do expect some geographies, such as India and China, to continue buying Russian coals for the time being. The recent rise in the indices is expected to be reversed as the risk of global economic downturn remains high due to inflationary pressures and high energy costs. In addition, we expect supply from Australia to be stronger beginning in the second half of the year. As a result, we expect a combination of lower demand and improved supply to provide pricing relief to purchasing managers. However, we still expect pricing to remain above cost curve economics as a result of trade disruptions caused by the war in Ukraine. With that, we'd like to open the call for questions. Operator? Thank you. At this time, I would like to remind everyone to ask a question, please press star then number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. Today's first question comes from David Gagliano with BMO Capital Markets. Please go ahead. All right. Thanks for taking my questions. I have a few. I'll try and keep them tight, though. First of all, on a near-term basis, just on the timing of the inventory unwind. You know, obviously the guide unchanged for the year on sales. If you take the midpoint implies, you know, 1.6 million tons on average of sales volumes per quarter, I think, in the next few quarters. Pretty significant increase. Is it reasonable to assume that's sort of spread evenly over the next few quarters? Or, How should we think about that piece? Thanks for the question, David. This is Walt. I would expect it to be more back-half loaded. I think the Q2, we'll continue to see some issues down at the port where they are working on one of the car dumps. I expect the Q2 to not quite be as strong as the third and Q4 will be. I think it'll be a little more back-half loaded. Okay, fair enough. Then just in terms of switching gears to the shareholder returns piece of this and the balancing between that and funding Blue Creek. Is the plan to build up enough cash near term to fund Blue Creek, you know, essentially upfront and then start returning cash to shareholders? Or do you plan to, you know, fund Blue Creek more closely with the timing of the CapEx schedule that was provided in the slide deck, you know, the other deck, and then return cash more upfront, if that makes sense? Yeah. Thanks, David. This is Dale. You know, I'd say we would continue to do the shareholder returns over time of the project. We think we can do that. Obviously, we're building more cash given that prices have stayed higher longer than I think anybody anticipated. You know, heading into next year, if you looked at the presentation, you know, we spend two-thirds of the capital in 2023 and 2024. You know, we're gonna stockpile a little more cash, but given where the markets are and the cash that we're generating, we believe we could do one or multiple special dividends in the coming year or two. Okay. Just to try and drill down a little bit more on that answer, would you wanna have, like, the... I do have the CapEx timing on Blue Creek, and that's very helpful. Is it reasonable to assume that you'd wanna have, you know, the cash on the balance sheet before the CapEx? You know what I'm saying? Like, you know, $500 million of CapEx tied to Blue Creek before you would return cash to shareholders? Or is that not how to think about it? No, we've just said, look, the minimum, because, you know, we can't predict what obviously the markets will do and, you know, whether or not there's any demand destruction from all the things that are going in the markets today. I mean, you know, so, you know, we haven't set a target of where we'll start returning cash, you know, to shareholders. Target cash balance other than a minimum that I said in my comments. Look, over that five-year period, you're gonna have peaks and valleys with met coal pricing. While the construction, the projects going on, we want a minimum of $150 million of cash at all times. You know, you can expect it to be, you know, higher than that so that we can fund the project. You know, we didn't wanna go into a year, drain all of our cash in returns, and then you don't have the cash if the market turns on you know, to fund that year. We think, given the ability to stockpile a little cash here and do both, we'll accomplish both objectives. Okay, that's helpful. I'll turn it over to somebody else. Thanks. Ladies and gentlemen, as a reminder, if you'd like to ask a question, please press star then one. Today's next question comes from Lucas Pipes at B. Riley Securities. Please go ahead. Thank you very much, thanks for taking my questions. I first wanted to touch on the NOLs. Could you remind us what the remaining balance is in an environment like today when prices are so robust and you generate a lot of taxable income, how will this affect this balance over the course of this year? Thank you. Thank you very much for that update. Hey, Lucas. Thanks for your questions. Dale. Yeah, coming into the year, we had almost $800 million of federal NOLs and then almost $1 billion in state NOLs. Yeah, we came in to this year with a lot of those remaining. You know, given where we're, you know, generating a lot of cash and a lot of profitability, we're gonna be using a lot of those NOLs this year. Just depending on, you know, how long prices stay as high they are will depend on how fast we use them. This will be a big usage year, no matter what. It's kinda hard to predict where we'll be at the end of this coming year. That continues to provide extra cash here for returns to shareholders as well as funding Blue Creek. Yeah. Very helpful. In terms of the discussion around capital returns, historically, share purchases have featured less prominently in your discussions. Would that change? You know, assuming Q2 is even better than the first given you know volumes and such, and we look at the end of this year, NOLs are almost exhausted. Would your purchases move up in the priority list? Thank you. Yeah, I'm not sure it'd be that early as the Q2 or Q3. I would expect that would probably be from that standpoint, stock repurchases probably in next year. You know, it really depends on how fast we use them up this year. But at the current pace, obviously you're gonna blow through them pretty quick, but we don't expect prices to stay here for the remainder of this year. We do think there's gonna be a correction period, and it's gonna be pretty steep as we've seen pretty significant swings even in the last couple of months. In fact, overnight, big swings, $70-$80. You know, it can adjust real quickly. You know, we'll make that decision later on, but I don't think it's as early as the second or Q3 and maybe tying the Q4. When I look at Warrior's historical production, there were periods when you approached 8 million tons or maybe on an annualized level were higher than that 8 million ton figure. How does the guidance today at the midpoint? What are kind of the key puts and takes? If I compare 6 million to, say, 8 million tons or so in the past, what are the how would you bridge that? Is it labor? Is it where you are in the mine plan? Would appreciate that perspective and maybe some color as to when we could approach the 8 million ton level, short ton level again. Thank you very much. It's entirely or almost entirely labor. Right now we are getting close to running Mine 7 at 100% capacity. At Mine 4, we're only running at about 50% capacity. That brings you up more than another million tons once you get it back to full capacity. Then there's just some nits and bits that get you the other million tons. We continue to see the workforce grow month to month. You know, our expectation is that we will continue to grow our production as we go through the year and/or resolve the current labor situation. That's our expectation to continue to grow through one of those two methodologies. Thank you very much. Really appreciate the color and best of luck. Thank you. Ladies and gentlemen, our next question today is a follow-up from David Gagliano of BMO Capital Markets. Please go ahead. All right. Well, thanks for taking my follow-up. The question really is actually related to what you just said, Dale, a minute ago. We've had so much volatility, like you said, overnight even. It's always tricky, right, trying to pinpoint numbers. I know last quarter, there was a move away from speaking about realized pricing relatives to benchmarks as a discount, that kind of thing, given the, you know, the impact that the timing of deliveries has on that, you know, that spread. I was wondering if maybe we could talk about a little bit of a different context. You know, if we were to, you know, hear it as May fifth, what's a reasonable assumption for lag, you know, timing if, you know, just generally speaking, on average, if we look at index pricing and, you know, Warrior's realized pricing, how far back should we be lagging for the current quarter, for example? Typically, our pricing is set based on anywhere. It depends based on contract, but it's up to about a month. We'll be averaging prices from the previous 30 days in order to set our pricing. Okay. That's still a reasonable assumption given everything going on in the world today? It is. You know, and the only variable to that is spot pricing is done at whatever the day's pricing is or, you know, when that is set. I wanna reiterate though what Dale said, because we could easily have a considerable adjustment in pricing, and our rail costs are still going to be reflective of what the previous quarter's pricing was. If you had a significant price adjustment in one quarter, the rail adjustment will not necessarily follow very quickly. You could see high rail rates or high transportation rates, you know, for a quarter beyond that adjusted price. Okay. That's helpful. Thank you. Just in terms of given everything going on in Europe, I know Warrior Met Coal provides quite a bit of the volume into steel mills directly in Europe. I was wondering if you could just talk a little bit about what the European customer base is saying in terms of their appetite for taking full delivery and any commentary regarding price sensitivity and demand sensitivity. Actually, we see very robust demand out of our customers in Europe. You know, in fact, you know, when folks were trying to scramble to figure out where they're going to replace the coal that was coming out of Russia, so we see increased demand in Europe from some of those customers, and I think everyone is still planning on taking full commitments and full deliveries, and we haven't seen any change to that. Yeah. Dave, we even, you know, got some calls about using our coal with thermal coal. You know, we've had a lot of inquiries over the last couple of months, given the situation in Ukraine. Okay. That's helpful. Thanks again. Thank you. Our next question today comes from Nathan Martin at The Benchmark Company. Please go ahead. Hey, good afternoon, guys. Congrats on the quarter. Thanks for taking my question. I think most of mine have probably been asked at this point, but maybe I'll come back to costs. Obviously, cash cost guidance up a little bit here. I think in your prepared comments, Dale, you know, you mentioned that I think it was roughly 46% was the variable cost in the Q1, if I recall, or maybe it was Walt that said that. You also commented that, you know, if prices stay elevated, you know, we could probably see an elevated level like that versus the normal. I think it's 30, maybe 33% of costs related to variable items. I guess maybe my question is, you know, with this new raise in cash cost guidance, what kind of net price are you guys assuming? I think previously you said you were assuming a pretty steep fall off as we progress through the year. How has your view changed there? Thank you. Well, I think, you know, what we did is try to look and say, "Well, how much and how far would it fall?" You know, given the prices average $488 a metric ton in the Q1, you know, they gotta drop pretty far in the next three quarters to average even 400. You know, we kind of developed our metrics around, you know, upper 300s or around that 400 number because, you know, as Walt said, we're gonna have a quarter where there's a steep drop, and then it's gonna be another quarter before our transportation costs drop. That's why we got to factor in that one quarter lag. Okay, Dale. If I understand you correctly, you're kind of assuming upper $300-$400, kind of like a full year average, and that's incorporated in that new $115 and $125 for short-term guidance. Yeah. Because, you know, every quarter after the Q1 would have to average, you know, somewhere $270, something like that. You'd have to have some pretty big drop off for the rest of the year. Got it. Makes sense. That's really all I had left, guys. I appreciate the time. Best of luck. All right. Thank you very much. Ladies and gentlemen, this concludes our question and answer session. I'd like to turn the conference back over to Mr. Scheller for closing remarks. Thank you. That concludes today's conference. Thank you all for participating. You may now disconnect. Thank you, sir. Today's conference has now concluded, and we thank you all for your participation. You may now disconnect your lines and have a wonderful evening.