Company: NC
Filing Date: 2025-04-07
Form Type: ARS
Source: 0000789933-25-000013
Chunk: 188

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: ARS
Chunk 188
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 value to us. Material revisions to estimates of proved reserves may occur in the future; development and production of the reserves may not occur in the periods assumed; actual prices realized are expected to vary significantly from those used; and actual costs may vary. The following table provides the future net cash flows relating to proved oil and gas reserves based on the standardized measure of discounted cash flows as of December 31, 2024: Gross Amounts Statutory tax rate Net Amounts Future cash inflows(3) $ 119,534 Future production costs 33,308 Future net cash flows before income tax expense 86,226 21 % 68,119 10% discount to reflect timing of cash flows (32,580) 21 % (25,739) Standardized measure of discounted cash flows $ 53,646 21 % $ 42,380 The following table provides the future net cash flows relating to proved oil and gas reserves based on the standardized measure of discounted cash flows as of December 31, 2023: Gross Amounts Statutory tax rate Net Amounts Future cash inflows(3) $ 122,286 Future production costs 27,487 Future net cash flows before income tax expense 94,799 21 % 74,891 10% discount to reflect timing of cash flows (33,521) 21 % (26,481) Standardized measure of discounted cash flows $ 61,278 21 % 48,410 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NACCO INDUSTRIES, INC. AND SUBSIDIARIES (Tabular Amounts in Thousands, Except Per Share, Percentage Data and Oil and Gas Disclosures) F-40

The following summarizes the principal sources of change in the standardized measure of discounted future net cash flows during 2024: Gross amounts 2024 2023 January 1 $ 61,278 $ 116,526 Purchases 522 11,312 Extensions and discoveries 18,426 11,419 Revisions of previous estimates (3)(4) (20,713) (61,206) Conversions (5,867) (16,773) December 31 $ 53,646 $ 61,278 (3) Requirements for oil and gas reserve estimation and disclosure require that reserve estimates and future cash flows be based on the average market prices for sales of oil and gas on the first calendar day of each month during the year. The benchmark price for WTI crude oil sold