Form 4: Lawrence Sells Ramaco Resources Shares

Bryan H. Lawrence reports the sale of Ramaco Resources shares held by Yorktown Energy Partners.

Summary

• Bryan H. Lawrence, a director of Ramaco Resources, reported the sale of Class A Common Stock on August 8, 2025.
• The sales were executed by Yorktown Energy Partners IX L.P. (Yorktown IX), Yorktown Energy Partners X L.P. (Yorktown X), and Yorktown Energy Partners XI L.P. (Yorktown XI) at a price of $18.75 per share.
• Yorktown IX sold 527,910 shares, resulting in a remaining balance of 3,097,134 shares.
• Yorktown X sold 426,627 shares, resulting in a remaining balance of 2,502,930 shares.
• Yorktown XI sold 645,463 shares, resulting in a remaining balance of 3,786,797 shares.
• The sales were related to the full exercise of an overallotment option granted to underwriters in connection with a registered underwritten secondary offering by Ramaco Resources.
• A correction was noted regarding a mathematical error in a previous Form 4 filing on March 27, 2025, which misstated the ending balance of Class A Common Stock held by Yorktown IX.

Sentiment

Score: 4

Explanation: The sentiment is neutral to slightly negative due to the sale of shares by a director, although this was through affiliated entities and part of a planned secondary offering.

Positives

• The exercise of the overallotment option indicates strong demand for Ramaco Resources shares in the secondary offering.
• Correction of a previous error in Form 4 filing ensures accurate reporting.

Negatives

• Director Bryan H. Lawrence, through affiliated entities, sold a significant number of shares, which could be perceived negatively by the market.

Risks

• The sale of shares by a director, even through affiliated entities, could create short-term market volatility.
• Dependence on energy market conditions and commodity prices could impact the value of remaining holdings.

Future Outlook

There are no explicit forward-looking statements in this filing. The filing reports completed transactions.

Management Comments

• The reporting person disclaims beneficial ownership of these securities except to the extent of its pecuniary interest therein, and this report shall not be deemed an admission that the reporting person is the beneficial owner of the securities for Section 16 or any other purpose.

Industry Context

Secondary offerings and related transactions are common in the energy sector, especially for companies backed by private equity firms like Yorktown Energy Partners. These transactions provide liquidity for early investors and can increase the public float of the company's stock.

Comparison to Industry Standards

• Secondary offerings are a typical exit strategy for private equity firms in the energy sector, similar to offerings by companies like CNX Resources after being backed by private equity.
• The size of the offering and the involvement of underwriters are consistent with standard practices for publicly traded companies in the coal industry.

Stakeholder Impact

• Shareholders: Potential short-term price volatility due to the sale of shares.
• Employees: No direct impact.
• Customers: No direct impact.
• Suppliers: No direct impact.
• Creditors: No direct impact.

Key Dates

Recommendation

The sale of shares by a director through affiliated entities is part of a planned secondary offering, suggesting a pre-arranged exit strategy for early investors. While this may create short-term price volatility, the underlying business fundamentals of Ramaco Resources are not necessarily impacted. Therefore, a hold recommendation is appropriate.

Keywords

Ramaco Resources, METC, Bryan H. Lawrence, Yorktown Energy Partners, Class A Common Stock, SEC Form 4, Secondary Offering, Overallotment Option, Director, Share Sale