NACCO INDUSTRIES INC

Catapult Mineral Partners, LLC, a wholly owned subsidiary of NACCO Industries, Inc., operates as a mineral and royalty company focused on oil and natural gas interests across multiple productive regions in the United States. The company holds proved reserves located in Alabama, Louisiana, New Mexico, Ohio, Pennsylvania, Texas, Utah, and Wyoming, positioning it to benefit from hydrocarbon production across diverse geological formations and market conditions.

As of January 1, 2026, Catapult's proved reserves totaled approximately 673.7 million barrels of oil equivalent, comprising 673,693 thousand barrels of oil and condensate, 31.7 billion cubic feet of wet gas, 584,804 thousand barrels of natural gas liquids, and 27.5 billion cubic feet of residue gas. The company's reserve base is categorized into proved producing, proved non-producing, proved undeveloped, and proved developed shut-in classifications, reflecting various stages of development and production activity.

The company's business model centers on owning mineral and royalty interests rather than operating wells directly, which minimizes capital expenditure requirements and operating expense burdens. This structure allows Catapult to generate revenue from hydrocarbon production without bearing the full operational costs typically associated with traditional oil and gas operators. The company benefits from commodity price exposure, with revenues tied to prevailing market prices for crude oil, natural gas, and natural gas liquids.

Catapult's reserve valuation reflects commodity pricing based on the twelve-month average of first-day-of-month benchmark prices from 2025, utilizing West Texas Intermediate crude oil pricing at Cushing, Oklahoma and NYMEX Henry Hub natural gas pricing. The company's future net income from proved reserves, before federal income taxes, was estimated at approximately $112.9 million as of the valuation date, with a net present value discounted at ten percent per annum of approximately $69.4 million.

The company's geographic diversification across eight states and its varied reserve classifications provide exposure to multiple production trends and market dynamics within the continental United States oil and gas industry.