Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 16, 2018 | Jun. 30, 2017 | |
Entity Registrant Name | Rhino Resource Partners LP | ||
Entity Central Index Key | 1,490,630 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 4,400 | ||
Trading Symbol | RHNO | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 | ||
Common Units [Member] | |||
Entity Common Stock, Shares Outstanding | 12,993,869 | ||
Subordinated Units [Member] | |||
Entity Common Stock, Shares Outstanding | 1,145,743 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 8,796 | $ 47 |
Restricted cash | 7,116 | |
Accounts receivable | 20,386 | 12,932 |
Inventories | 12,860 | 7,978 |
Advance royalties, current portion | 495 | 898 |
Investment in available for sale securities | 11,165 | 3,532 |
Prepaid expenses and other | 2,891 | 5,068 |
Current assets held for sale | 1,098 | |
Total current assets | 63,709 | 31,553 |
PROPERTY, PLANT AND EQUIPMENT: | ||
At cost, including coal properties, mine development and construction costs | 440,843 | 430,560 |
Less accumulated depreciation, depletion and amortization | (263,520) | (249,394) |
Net property, plant and equipment | 177,323 | 181,166 |
Advance royalties, net of current portion | 7,901 | 7,652 |
Restricted cash | 5,209 | |
Investment in unconsolidated affiliates | 130 | 5,121 |
Intangible purchase option | 21,750 | |
Note receivable-related party | 2,040 | |
Other non-current assets | 28,508 | 27,018 |
Non-current assets held for sale | 1,141 | |
TOTAL | 282,780 | 277,441 |
CURRENT LIABILITIES: | ||
Accounts payable | 9,329 | 10,179 |
Accrued expenses and other | 11,186 | 9,941 |
Accrued preferred distributions | 6,038 | |
Current portion of long-term debt | 5,475 | 10,040 |
Current portion of asset retirement obligations | 498 | 883 |
Current liabilities held for sale | 397 | |
Total current liabilities | 32,526 | 31,440 |
NON-CURRENT LIABILITIES: | ||
Long-term debt, net | 28,573 | |
Asset retirement obligations, net of current portion | 18,164 | 18,225 |
Other non-current liabilities | 48,071 | 45,372 |
Non-current liabilities held for sale | 4,135 | |
Total non-current liabilities | 94,808 | 67,732 |
Total liabilities | 127,334 | 99,172 |
COMMITMENTS AND CONTINGENCIES (NOTE 14) | ||
PARTNERS’ CAPITAL: | ||
Limited partners | 130,233 | 154,696 |
Subscription receivable from limited partners | (2,000) | |
General partner | 8,855 | 8,959 |
Preferred partners | 15,000 | 15,000 |
Investment in Royal common stock (NOTE 13) | (4,126) | |
Common unit warrants | 1,264 | |
Accumulated other comprehensive income | 4,220 | 1,614 |
Total partners’ capital | 155,446 | 178,269 |
TOTAL | $ 282,780 | $ 277,441 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
REVENUES: | ||
Coal sales | $ 217,192 | $ 153,271 |
Other revenues | 1,499 | 2,160 |
Total revenues | 218,691 | 155,431 |
COSTS AND EXPENSES: | ||
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) | 178,483 | 124,845 |
Freight and handling costs | 1,837 | |
Depreciation, depletion and amortization | 21,117 | 22,556 |
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) | 11,423 | 14,413 |
Asset impairment and related charges | 22,631 | 2,639 |
(Gain) on sale/disposal of assets, net | (68) | (460) |
Total costs and expenses | 235,423 | 163,993 |
(LOSS) FROM OPERATIONS | (16,732) | (8,562) |
INTEREST AND OTHER (EXPENSE)/INCOME: | ||
Interest expense and other | (4,010) | (6,535) |
Interest income and other | 86 | 20 |
Equity in net income/(loss) of unconsolidated affiliates | 36 | (223) |
Total interest and other (expense) | (3,888) | (6,738) |
(LOSS) BEFORE INCOME TAXES FROM CONTINUING OPERATIONS | (20,620) | (15,300) |
INCOME TAXES | ||
NET (LOSS) FROM CONTINUING OPERATIONS | (20,620) | (15,300) |
DISCONTINUED OPERATIONS | ||
Net Income/(Loss) from discontinued operations | 1,832 | (115,463) |
NET (LOSS) | (18,788) | (130,763) |
Other comprehensive income: | ||
Fair value adjustment for available-for-sale investment | 2,606 | 1,614 |
Change in actuarial gain on post retirement plan | (4,795) | |
COMPREHENSIVE (LOSS) | (16,182) | (133,944) |
General Partner [Member] | ||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||
NET (LOSS) FROM CONTINUING OPERATIONS | (112) | (128) |
DISCONTINUED OPERATIONS | ||
Net Income/(Loss) from discontinued operations | 8 | (734) |
NET (LOSS) | $ (104) | $ (862) |
Net (loss)/income per limited partner unit, basic: | ||
Net (loss)/income per unit from continuing operations | ||
Net (loss)/income per unit from discontinued operations | ||
Net (loss)/income per limited partner unit, diluted: | ||
Net (loss)/income per unit from continuing operations | ||
Net (loss)/income per unit from discontinued operations | ||
Weighted average number of limited partner units outstanding, basic: | ||
Weighted average number of limited partner units outstanding, basic: | ||
Common Unitholders [Member] | ||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||
NET (LOSS) FROM CONTINUING OPERATIONS | $ (24,391) | $ (12,755) |
DISCONTINUED OPERATIONS | ||
Net Income/(Loss) from discontinued operations | 1,676 | (96,451) |
NET (LOSS) | $ (22,715) | $ (109,206) |
Net (loss)/income per limited partner unit, basic: | ||
Net (loss)/income per unit from continuing operations | $ (1.88) | $ (1.96) |
Net (loss)/income per unit from discontinued operations | 0.13 | (14.79) |
Net (loss)/income per limited partner unit, basic | (1.75) | (16.75) |
Net (loss)/income per limited partner unit, diluted: | ||
Net (loss)/income per unit from continuing operations | (1.88) | (1.96) |
Net (loss)/income per unit from discontinued operations | 0.13 | (14.79) |
Net (loss)/income per limited partner unit, diluted | $ (1.75) | $ (16.75) |
Weighted average number of limited partner units outstanding, basic: | 12,965,000 | 6,520,000 |
Weighted average number of limited partner units outstanding, basic: | 12,965,000 | 6,520,000 |
Subordinated Unitholders [Member] | ||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||
NET (LOSS) FROM CONTINUING OPERATIONS | $ (2,155) | $ (2,417) |
DISCONTINUED OPERATIONS | ||
Net Income/(Loss) from discontinued operations | 148 | (18,278) |
NET (LOSS) | $ (2,007) | $ (20,695) |
Net (loss)/income per limited partner unit, basic: | ||
Net (loss)/income per unit from continuing operations | $ (1.88) | $ (1.96) |
Net (loss)/income per unit from discontinued operations | 0.13 | (14.79) |
Net (loss)/income per limited partner unit, basic | (1.75) | (16.75) |
Net (loss)/income per limited partner unit, diluted: | ||
Net (loss)/income per unit from continuing operations | (1.88) | (1.96) |
Net (loss)/income per unit from discontinued operations | 0.13 | (14.79) |
Net (loss)/income per limited partner unit, diluted | $ (1.75) | $ (16.75) |
Weighted average number of limited partner units outstanding, basic: | 1,146,000 | 1,236,000 |
Weighted average number of limited partner units outstanding, basic: | 1,146,000 | 1,236,000 |
Preferred Unitholders [Member] | ||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||
NET (LOSS) FROM CONTINUING OPERATIONS | $ 6,038 | |
DISCONTINUED OPERATIONS | ||
Net Income/(Loss) from discontinued operations | ||
NET (LOSS) | $ 6,038 | |
Net (loss)/income per limited partner unit, basic: | ||
Net (loss)/income per unit from continuing operations | $ 4.03 | |
Net (loss)/income per unit from discontinued operations | ||
Net (loss)/income per limited partner unit, basic | 4.03 | |
Net (loss)/income per limited partner unit, diluted: | ||
Net (loss)/income per unit from continuing operations | 4.03 | |
Net (loss)/income per unit from discontinued operations | ||
Net (loss)/income per limited partner unit, diluted | $ 4.03 | |
Weighted average number of limited partner units outstanding, basic: | 1,500,000 | |
Weighted average number of limited partner units outstanding, basic: | 1,500,000 |
Consolidated Statements of Part
Consolidated Statements of Partners' Capital - USD ($) $ in Thousands | Limited Partners Common Capital [Member] | Limited Partners Subordinated Capital [Member] | General Partner Capital [Member] | Preferred Partner Capital [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Common Unit Warrant [Member] | Other [Member] | Total |
Balance at Dec. 31, 2015 | $ 153,227 | $ 100,085 | $ 9,821 | $ 4,795 | $ 0 | $ 267,928 | ||
Balance, shares at Dec. 31, 2015 | 1,676,000 | 1,236,000 | ||||||
Net income | $ (109,206) | $ (20,695) | (862) | (130,763) | ||||
Distributions to unitholders | (24) | (24) | ||||||
Limited partner contribution | $ 9,000 | 9,000 | ||||||
Limited partner contribution, shares | 6,000,000 | |||||||
Preferred partner contributions | 15,000 | 15,000 | ||||||
Subscription receivable from limited partners | (2,000) | (2,000) | ||||||
Issuance of units | $ 559 | 559 | ||||||
Issuance of units, shares | 230,000 | |||||||
Issuance of units for purchase option | $ 21,750 | 21,750 | ||||||
Issuance of units for purchase option, shares | 5,000,000 | |||||||
Mark-to-market investment in Mammoth | 1,614 | 1,614 | ||||||
Actuarial gain under ASC Topic 715 | (4,795) | (4,795) | ||||||
Balance at Dec. 31, 2016 | $ 73,306 | $ 79,390 | 8,959 | 15,000 | 1,614 | 178,269 | ||
Balance, shares at Dec. 31, 2016 | 12,906,000 | 1,236,000 | ||||||
Net income | $ (22,715) | $ (2,007) | (104) | 6,038 | (18,788) | |||
Distributions to unitholders | ||||||||
Issuance of units | $ 259 | 259 | ||||||
Issuance of units, shares | 88,000 | |||||||
Mark-to-market investment in Mammoth | 2,606 | 2,606 | ||||||
Issuance of common unit warrants | 1,264 | 1,264 | ||||||
Actuarial gain under ASC Topic 715 | ||||||||
Preferred partner distribution earned | (6,038) | (6,038) | ||||||
Note receivable from Royal for SPA | 2,000 | 2,000 | ||||||
Subordinated units surrendered by Wexford | ||||||||
Subordinated units surrendered by Wexford, shares | (90,000) | |||||||
Investment in Royal Common stock | (4,126) | (4,126) | ||||||
Balance at Dec. 31, 2017 | $ 52,850 | $ 77,383 | $ 8,855 | $ 15,000 | $ 4,220 | $ 1,264 | $ (4,126) | $ 155,446 |
Balance, shares at Dec. 31, 2017 | 12,994,000 | 1,146,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) | $ (18,788) | $ (130,763) |
Adjustments to reconcile net (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 21,610 | 24,198 |
Accretion on asset retirement obligations | 1,493 | 1,512 |
Amortization of deferred revenue | (1,337) | |
Amortization of advance royalties | 1,116 | 1,037 |
Amortization of debt issuance costs | 1,466 | 2,872 |
Amortization of actuarial gain | (4,795) | |
Provision for doubtful accounts | 56 | |
Equity in net (income)/loss of unconsolidated affiliates | (36) | 223 |
Distributions from unconsolidated affiliate | 300 | |
Loss on retirement of advance royalties | 136 | 157 |
(Gain) on sale/disposal of assets-net | (68) | (465) |
Loss on impairment of assets | 22,631 | 2,639 |
(Gain)/loss on business disposal | (3,238) | 119,932 |
Equity-based compensation | 260 | 528 |
Changes in assets and liabilities: | ||
Accounts receivable | (6,945) | (1,019) |
Inventories | (4,811) | 520 |
Advance royalties | (1,097) | (1,821) |
Prepaid expenses and other assets | (729) | 1,079 |
Accounts payable | (1,491) | 1,446 |
Accrued expenses and other liabilities | 4,041 | (3,178) |
Asset retirement obligations | (1,045) | (892) |
Postretirement benefits | (45) | |
Net cash provided by operating activities | 14,561 | 12,128 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property, plant, and equipment | (20,078) | (7,582) |
Proceeds from sales of property, plant, and equipment | 656 | 349 |
Proceeds from Elk Horn disposal | 890 | 11,100 |
Proceeds from sale of unconsolidated affiliate | 27 | |
Net cash (used in)/provided by investing activities | (18,532) | 3,894 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings on line of credit | 132,200 | 101,350 |
Repayments on line of credit | (142,240) | (132,509) |
Repayments on long-term debt | (1,211) | |
Proceeds from new debt issuance | 40,000 | |
Gain on debt extinguishment | (1,663) | |
Distributions to unitholders | (24) | |
Payments of debt issuance costs | (4,915) | (1,956) |
Preferred partner's contributions | 12,960 | |
Limited partner contribution | 7,000 | |
Net cash provided by/(used in) financing activities | 25,045 | (16,053) |
NET INCREASE/(DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 21,074 | (31) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period | 47 | 78 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period | 21,121 | 47 |
Summary Statement of Financial Position: | ||
Total cash, cash equivalents and restricted cash | $ 47 | $ 78 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. ORGANIZATION AND BASIS OF PRESENTATION Organization Reverse Unit Split On April 18, 2016, the Partnership completed a 1-for-10 reverse split on its common units and subordinated units. Pursuant to the reverse split, common unitholders received one common unit for every 10 common units owned on April 18, 2016 and subordinated unitholders received one subordinated unit for every 10 subordinated units owned on April 18, 2016. All common and subordinated units, net income (loss) per unit and distribution per unit references included herein have been adjusted as if the change took place before the date of the earliest transaction reported. Any fractional units resulting from the reverse unit split were rounded to the nearest whole unit. Acquisition by Royal Energy Resources, Inc. and Other Transactions On January 21, 2016, a definitive agreement (“Definitive Agreement”) was completed between Royal Energy Resources, Inc. (“Royal”) and Wexford Capital whereby Royal acquired 676,912 common units of the Partnership from Wexford Capital for $3.5 million. The Definitive Agreement also included the committed acquisition by Royal within sixty days from the date of the Definitive Agreement of all of the issued and outstanding membership interests of the general partner, as well as 945,525 of subordinated units of the Partnership from Wexford Capital for $1.0 million. On March 17, 2016, Royal completed the acquisition of all of the membership interests of the general partner as well as the 945,525 subordinated units from Wexford Capital. Royal obtained control of, and a majority limited partner interest, in the Partnership with the completion of this transaction. On March 21, 2016, the Partnership and Royal entered into a securities purchase agreement (the “Securities Purchase Agreement”) pursuant to which the Partnership issued 6,000,000 common units in the Partnership to Royal in a private placement at $1.50 per common unit for an aggregate purchase price of $9.0 million. Royal paid the Partnership $2.0 million in cash and delivered a promissory note payable to the Partnership (“Rhino Promissory Note”) in the amount of $7.0 million. On May 13, 2016 and September 30, 2016, Royal paid the Partnership $3.0 million and $2.0 million, respectively, for the promissory note installments. The payments were made in relation to the fifth amendment of the amended and restated credit agreement completed on May 13, 2016. On December 30, 2016, the Partnership modified the Securities Purchase Agreement with Royal for the final $2.0 million payment due on or before December 31, 2016 to extend the due date to December 31, 2018. Please read “—Letter Agreement Regarding Rhino Promissory Note and Weston Promissory Note.” Option Agreement-Armstrong Energy On December 30, 2016, the Partnership entered into an option agreement (the “Option Agreement”) with Royal, Rhino Resources Partners Holdings, LLC (“Rhino Holdings”), an entity wholly owned by certain investment partnerships managed by Yorktown Partners LLC (“Yorktown”), and the general partner. Upon execution of the Option Agreement, the Partnership received an option (the “Call Option”) from Rhino Holdings to acquire substantially all of the outstanding common stock of Armstrong Energy, Inc. (“Armstrong Energy”) that was owned by investment partnerships managed by Yorktown, representing approximately 97% of the outstanding common stock of Armstrong Energy. The Option Agreement stipulated that the Partnership could exercise the Call Option no earlier than January 1, 2018 and no later than December 31, 2019. In exchange for Rhino Holdings granting the Partnership the Call Option, the Partnership issued 5.0 million common units, representing limited partner interests in the Partnership (the “Call Option Premium Units”) to Rhino Holdings upon the execution of the Option Agreement. The Option Agreement stipulated the Partnership could exercise the Call Option and purchase the common stock of Armstrong Energy in exchange for a number of common units to be issued to Rhino Holdings, which when added with the Call Option Premium Units, would have resulted in Rhino Holdings owning 51% of the fully diluted common units of the Partnership. The purchase of Armstrong Energy through the exercise of the Call Option would also have required Royal to transfer a 51% ownership interest in the general partner to Rhino Holdings. The Partnership’s ability to exercise the Call Option was conditioned upon (i) sixty (60) days having passed since the entry by Armstrong Energy into an agreement with its bondholders to restructure its bonds and (ii) the amendment of the Partnership’s former revolving credit facility to permit the acquisition of Armstrong Energy. The Option Agreement also contained an option (the “Put Option”) granted by the Partnership to Rhino Holdings whereby Rhino Holdings had the right, but not the obligation, to cause the Partnership to purchase substantially all of the outstanding common stock of Armstrong Energy from Rhino Holdings under the same terms and conditions discussed above for the Call Option. The exercise of the Put Option was dependent upon (i) the entry by Armstrong Energy into an agreement with its bondholders to restructure its bonds and (ii) the termination and repayment of any outstanding balance under the Partnership’s former revolving credit facility (which occurred on December 27, 2017). The Option Agreement contains customary covenants, representations and warranties and indemnification obligations for losses arising from the inaccuracy of representations or warranties or breaches of covenants contained in the Option Agreement, the seventh amendment of the Partnership’s former credit facility and the GP Amendment (defined below). Upon the request by Rhino Holdings, the Partnership will also enter into a registration rights agreement that provides Rhino Holdings with the right to demand two shelf registration statements and registration statements on Form S-1, as well as piggyback registration rights for as long as Rhino Holdings owns at least 10% of the outstanding common units. Pursuant to the Option Agreement, the Second Amended and Restated Limited Liability Company Agreement of the general partner was amended (“GP Amendment”). Pursuant to the GP Amendment, Mr. Bryan H. Lawrence was appointed to the board of directors of the general partner as a designee of Rhino Holdings and Rhino Holdings has the right to appoint an additional independent director. Rhino Holdings has the right to appoint two members to the board of directors of the general partner for as long as it continues to own 20% of the common units on an undiluted basis. The GP Amendment also provided Rhino Holdings with the authority to consent to any delegation of authority to any committee of the board of the general partner. Upon the exercise of the Call Option or the Put Option, the Second Amended and Restated Limited Liability Company Agreement of the general partner, as amended, would have been further amended to provide that Royal and Rhino Holdings would each have had the ability to appoint three directors and that the remaining director would have been the chief executive officer of the general partner unless agreed otherwise. On October 31, 2017, Armstrong Energy filed Chapter 11 petitions in the Eastern District of Missouri’s United States Bankruptcy Court. Per the Chapter 11 petitions, Armstrong Energy filed a detailed restructuring plan as part of the Chapter 11 proceedings. On February 9, 2018, the U.S. Bankruptcy Court confirmed Armstrong Energy’s Chapter 11 reorganization plan and as such the Option Agreement was deemed to have no carrying value. An impairment charge of $21.8 million related to the Option Agreement has been recorded on the Asset impairment and related charges line of the consolidated statements of operations and comprehensive income. Please read Note 7 for additional discussion of the Partnership’s impairment of the call option. Series A Preferred Unit Purchase Agreement On December 30, 2016, the Partnership entered into a Series A Preferred Unit Purchase Agreement (the “Preferred Unit Agreement”) with Weston Energy LLC (“Weston”), an entity wholly owned by certain investment partnerships managed by Yorktown, and Royal. Under the Preferred Unit Agreement, Weston and Royal agreed to purchase 1,300,000 and 200,000, respectively, of Series A preferred units representing limited partner interests in the Partnership (“Series A Preferred Units”) at a price of $10.00 per Series A preferred unit. The Series A preferred units have the preferences, rights and obligations set forth in the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership. Weston and Royal paid cash of $11.0 million and $2.0 million, respectively, to the Partnership and Weston assigned to the Partnership a $2.0 million note receivable from Royal originally dated September 30, 2016 (the “Weston Promissory Note”). Please read “—Letter Agreement Regarding Rhino Promissory Note and Weston Promissory Note.” The Preferred Unit Agreement contains customary representations, warrants and covenants, which include among other things, that, for as long as the Series A preferred units are outstanding, the Partnership will cause CAM Mining, LLC (“CAM Mining”), which comprises the Partnership’s Central Appalachia segment, to conduct its business in the ordinary course consistent with past practice and use reasonable best efforts to maintain and preserve intact its current organization, business and franchise and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having business relationships with CAM Mining. The Preferred Unit Agreement stipulates that upon the request of the holder of the majority of the Partnership’s common units following their conversion from Series A preferred units, as outlined in the Amended and Restated Partnership Agreement, the Partnership will enter into a registration rights agreement with such holder. Such majority holder has the right to demand two shelf registration statements and registration statements on Form S-1, as well as piggyback registration rights. Letter Agreement Regarding Rhino Promissory Note and Weston Promissory Note On December 30, 2016, the Partnership and Royal entered into a letter agreement whereby they extended the maturity dates of the Weston Promissory Note and the final installment payment of the Rhino Promissory Note to December 31, 2018. The letter agreement further provided that the aggregate $4.0 million balance of the Weston Promissory Note and Rhino Promissory Note may be converted at Royal’s option into a number of shares of Royal’s common stock equal to the outstanding balance multiplied by seventy-five percent (75%) of the volume-weighted average closing price of Royal’s common stock for the 90 days preceding the date of conversion (“Royal VWAP”), subject to a minimum Royal VWAP of $3.50 and a maximum Royal VWAP of $7.50. On September 1, 2017, Royal elected to convert the Rhino Promissory Note and the Weston Promissory Note to shares of Royal common stock. Royal issued 914,797 shares of its common stock to Rhino at a conversion price of $4.51 as calculated per the method stipulated above. See Note 13, “Equity Based Compensation/Partners’ Capital” for further discussion. Fourth Amended and Restated Agreement of Limited Partnership of Rhino Resource Partners LP On December 30, 2016, the general partner entered into the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership (“Amended and Restated Partnership Agreement”) to create, authorize and issue the Series A preferred units. The Series A preferred units are a new class of equity security that rank senior to all classes or series of equity securities of the Partnership with respect to distribution rights and rights upon liquidation. The holders of the Series A preferred units are entitled to receive annual distributions equal to the greater of (i) 50% of the CAM Mining free cash flow (as defined below) and (ii) an amount equal to the number of outstanding Series A preferred units multiplied by $0.80. “CAM Mining free cash flow” is defined in the Amended and Restated Partnership Agreement as (i) the total revenue of the Partnership’s Central Appalachia business segment, minus (ii) the cost of operations (exclusive of depreciation, depletion and amortization) for the Partnership’s Central Appalachia business segment, minus (iii) an amount equal to $6.50, multiplied by the aggregate number of met coal and steam coal tons sold by the Partnership from its Central Appalachia business segment. If the Partnership fails to pay any or all of the distributions in respect of the Series A preferred units, such deficiency will accrue until paid in full and the Partnership will not be permitted to pay any distributions on its Partnership interests that rank junior to the Series A preferred units, including its common units. The Series A preferred units will be liquidated in accordance with their capital accounts and upon liquidation will be entitled to distributions of property and cash in accordance with the balances of their capital accounts prior to such distributions to equity securities that rank junior to the Series A preferred units. The Series A preferred units vote on an as-converted basis with the common units, and the Partnership will be restricted from taking certain actions without the consent of the holders of a majority of the Series A preferred units, including: (i) the issuance of additional Series A preferred units, or securities that rank senior or equal to the Series A preferred units; (ii) the sale or transfer of CAM Mining or a material portion of its assets; (iii) the repurchase of common units, or the issuance of rights or warrants to holders of common units entitling them to purchase common units at less than fair market value; (iv) consummation of a spin off; (v) the incurrence, assumption or guaranty of indebtedness for borrowed money in excess of $50.0 million except indebtedness relating to entities or assets that are acquired by the Partnership or its affiliates that is in existence at the time of such acquisition or (vi) the modification of CAM Mining’s accounting principles or the financial or operational reporting principles of the Partnership’s Central Appalachia business segment, subject to certain exceptions. The Partnership has the option to convert the outstanding Series A preferred units at any time on or after the time at which the amount of aggregate distributions paid in respect of each Series A preferred unit exceeds $10.00 per unit. Each Series A preferred unit will convert into a number of common units equal to the quotient (the “Series A Conversion Ratio”) of (i) the sum of $10.00 and any unpaid distributions in respect of such Series A Preferred Unit divided by (ii) 75% of the volume-weighted average closing price of the common units for the preceding 90 trading days (the “VWAP”); provided however, that the VWAP will be capped at a minimum of $2.00 and a maximum of $10.00. On December 31, 2021, all outstanding Series A preferred units will convert into common units at the then applicable Series A Conversion Ratio. Basis of Presentation and Principles of Consolidation Reclassifications. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and General | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and General | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL Trade Receivables and Concentrations of Credit Risk. Cash, Cash Equivalents and Restricted Cash. Statement of Cash Flows-Restricted Cash On December 27, 2017, the Partnership entered into a letter of credit facility with PNC Bank, National Association under which the letter of credit facility will be secured by a first lien security interest on a cash collateral account that is required to contain no less than 105% of the face value of the outstanding letters of credit. As of December 31, 2017, the restricted cash collateral account had a balance of $12.3 million. Please refer to Note 9 for additional discussion of the letter of credit facility. Inventories. Advance Royalties. Property, Plant and Equipment. Stripping costs incurred in the production phase of a mine for the removal of overburden or waste materials for the purpose of obtaining access to coal that will be extracted are variable production costs that are included in the cost of inventory produced and extracted during the period the stripping costs are incurred. The Partnership defines a surface mine as a location where the Partnership utilizes operating assets necessary to extract coal, with the geographic boundary determined by property control, permit boundaries, and/or economic threshold limits. Multiple pits that share common infrastructure and processing equipment may be located within a single surface mine boundary, which can cover separate coal seams that typically are recovered incrementally as the overburden depth increases. In accordance with the accounting guidance for extractive mining activities, the Partnership defines a mine in production as one from which saleable minerals have begun to be extracted (produced) from an ore body, regardless of the level of production; however, the production phase does not commence with the removal of de minimis saleable mineral material that occurs in conjunction with the removal of overburden or waste material for the purpose of obtaining access to an ore body. The Partnership capitalizes only the development cost of the first pit at a mine site that may include multiple pits. Asset Impairments for Coal Properties, Mine Development Costs and Other Coal Mining Equipment and Related Facilities. Debt Issuance Costs. Asset Retirement Obligations. The Partnership estimates its future cost requirements for reclamation of land where it has conducted surface and underground mining operations, based on its interpretation of the technical standards of regulations enacted by the U.S. Office of Surface Mining, as well as state regulations. These costs relate to reclaiming the pit and support acreage at surface mines and sealing portals at underground mines. Other reclamation costs are related to refuse and slurry ponds, as well as holding and related termination/exit costs. The Partnership expenses contemporaneous reclamation which is performed prior to final mine closure. The establishment of the end of mine reclamation and closure liability is based upon permit requirements and requires significant estimates and assumptions, principally associated with regulatory requirements, costs and recoverable coal reserves. Annually, the Partnership reviews its end of mine reclamation and closure liability and makes necessary adjustments, including mine plan and permit changes and revisions to cost and production levels to optimize mining and reclamation efficiency. When a mine life is shortened due to a change in the mine plan, mine closing obligations are accelerated, the related accrual is increased and the related asset is reviewed for impairment, accordingly. The adjustments to the liability from annual recosting reflect changes in expected timing, cash flow and the discount rate used in the present value calculation of the liability. Each respective year includes a range of discount rates that are dependent upon the timing of the cash flows of the specific obligations. Changes in the asset retirement obligations for the year ended December 31, 2017 were calculated with discount rates that ranged from 9.7% to 11.9%. Changes in the asset retirement obligations for the year ended December 31, 2016 were calculated with discount rates that ranged from 7.0% to 9.1%. The discount rates changed in each respective year due to changes in applicable market indicators that are used to arrive at an appropriate discount rate. Other recosting adjustments to the liability are made annually based on inflationary cost increases or decreases and changes in the expected operating periods of the mines. The related inflation rate utilized in the recosting adjustments was 2.3 % for 2017 and 2016. Revenue Recognition. Freight and handling costs paid directly to third-party carriers and invoiced to coal customers are recorded as freight and handling costs and freight and handling revenues, respectively. Other revenues generally consist of coal royalty revenues, coal handling and processing revenues, rebates and rental income. With respect to other revenues recognized in situations unrelated to the shipment of coal, the Partnership carefully reviews the facts and circumstances of each transaction and does not recognize revenue until the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable and collectibility is reasonably assured. Advance payments received are deferred and recognized in revenue when earned. Equity-Based Compensation. Derivative Financial Instruments. Investments in Joint Ventures. In December 2012, the Partnership made an initial investment in a new joint venture, Muskie Proppant LLC (“Muskie”), with affiliates of Wexford Capital. In November 2014, the Partnership contributed its investment interest in Muskie to Mammoth Energy Partners LP (“Mammoth”) in return for a limited partner interest in Mammoth. In October 2016, the Partnership contributed its limited partner interests in Mammoth to Mammoth Energy Services, Inc. (NASDAQ: TUSK) (“Mammoth Inc.”) in exchange for 234,300 shares of common stock of Mammoth, Inc. In September 2014, the Partnership made an initial investment of $5.0 million in a new joint venture, Sturgeon Acquisitions LLC (“Sturgeon”), with affiliates of Wexford Capital and Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport”). The Partnership accounted for the investment in this joint venture and results of operations under the equity method based upon its ownership percentage. The Partnership recorded its proportionate share of the operating income/(loss) for this investment for the years ended December 31, 2017 and 2016 of approximately $36,000 and ($0.2) million, respectively. In June 2017, the Partnership contributed its limited partner interests in Sturgeon to Mammoth Inc. in exchange for 336,447 shares of common stock of Mammoth Inc. As of December 31, 2017, the Partnership owned 568,794 shares of Mammoth Inc. As of December 31, 2017 and 2016, the Partnership recorded a fair market value adjustment of $2.6 million and $1.6 million, respectively, for its available-for-sale investment in Mammoth Inc. based on the market value of the shares at December 31, 2017 and 2016, respectively, which was recorded in Other Comprehensive Income. As of December 31, 2017 and 2016, the Partnership recorded its investment in Mammoth Inc. as a current asset, which was classified as available-for-sale. The Partnership has included its investment in Mammoth Inc. and its prior investment in Muskie and Sturgeon in its Other category for segment reporting purposes. Income Taxes. Loss Contingencies. Management’s Use of Estimates. Recently Issued Accounting Standards. Revenue from Contracts with Customers Revenue Recognition Revenue Recognition—Construction-Type and Production-Type Contracts Property, Plant, and Equipment Intangibles—Goodwill and Other In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance on eight cash flow issues, including debt prepayment or debt extinguishment costs. ASU 2016-15 requires that cash payments related to debt prepayments or debt extinguishments, excluding accrued interest, be classified as a financing activity rather than an operating activity even when the effects enter into the determination of net income. The amendments in ASU 2016-15 will be effective on January 1, 2018 and must be applied retrospectively. Early application is permitted. The Partnership early adopted this standard and as such has classified debt extinguishment as a financing activity for the year ended December 31, 2016. The Partnership did not have any other material impact from the early adoption of ASU-2016-15. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805).” ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Partnership has evaluated the impact of adoption of this standard on its consolidated financial statements, which has no current period impact but may impact future periods in which acquisitions are completed. In July 2017, the FASB issued ASU 2017-11, “Earnings Per Share (Topic 260): Distinguishing Liabilities from Equity (Topic 480), I. Derivatives and Hedging (Topic 815): Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.” Upon its adoption, Part I of ASU 2017-11 will result in freestanding equity-linked financial instruments, such as warrants, and conversion options in convertible debt or preferred stock to no longer be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity-classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. The amendments in Part II recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification. The amendments in Part II do not require any transition guidance as the amendments do not have an accounting effect. The amendments in ASU 2017-11 will be effective on January 1, 2020, and the Part I amendments must be applied retrospectively. Early application is permitted. The Partnership early adopted ASU 2017-11, which did not have any material impact. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 3. SUBSEQUENT EVENTS On February 9, 2018, the U.S. Bankruptcy Court confirmed Armstrong Energy’s Chapter 11 reorganization plan. See Note 1 for additional information on the Armstrong Energy call option and Note 7 for additional discussion of the Partnership’s impairment of the call option. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 4. DISCONTINUED OPERATIONS Sands Hill Mining LLC On November 7, 2017, the Partnership closed an agreement with a third party to transfer 100% of the membership interests and related assets and liabilities in Sands Hill Mining LLC to the third party in exchange for a future override royalty for any mineral sold, excluding coal, from Sands Hill Mining LLC after the closing date. The Partnership recognized a gain of $3.2 million from the sale of Sands Hill Mining LLC since the third party assumed the reclamation obligations associated with this operation. The disposition of Sands Hill Mining LLC resulted in the Partnership exiting its limestone sales business. The previous operating results of Sands Hill Mining LLC have been reclassified and reported on the (Gain)/loss from discontinued operations line on the Partnership’s consolidated statements of operations and comprehensive income for the years ended December 31, 2017 and 2016. The current and non-current assets and liabilities previously related to Sands Hill Mining LLC have been reclassified to the appropriate held for sale categories on the Partnership’s consolidated statement of financial position at December 31, 2016. Sands Hill Mining LLC Major assets and liabilities of discontinued operations for Sands Hill Mining LLC, as of December 31, 2017 and 2016 are summarized as follows: December 31, Carrying amount of major classes of assets included as part of discontinued operations: 2017 2016 Cash and cash equivalents $ - $ - Accounts receivable, net of allowance for doubtful accounts - 961 Inventories - 72 Prepaid expenses and other - 65 Total current assets of the disposal group classified as held for sale in the statement of financial position $ - $ 1,098 Property and equipment (net) $ - $ 1,141 Total non-current assets of the disposal group classified as held for sale in the statement of financial position $ - $ 1,141 Carrying amount of major classes of liabilities included as part of discontinued operations: Accounts payable $ - $ 241 Accrued expenses and other - 156 Total current liabilities of the disposal group classified as held for sale in the statement of financial position $ - $ 397 Asset retirement obligations, net of current portion $ - $ 4,135 Total non-current liabilities of the disposal group classified as held for sale in the statement of financial position $ - $ 4,135 Major components of net income from discontinued operations for Sands Hill Mining LLC for years ended December 31, 2017 and 2016 are summarized as follows: Year ended December 31, 2017 2016 Major line items constituting income from discontinued operations for the Sands Hill Mining disposal: Coal sales $ 1,280 $ 7,570 Limestone sales 3,483 5,344 Other revenue 1,503 2,436 Total revenues 6,266 15,350 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) 6,316 10,602 Freight and handling 771 1,731 Depreciation, depletion and amortization 493 1,230 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) 92 52 (Gain) on sale/disposal of assets, net (3,238 ) (5 ) (Gain) on extinguishment of debt - (1,663 ) Interest income - (8 ) Interest expense and other - 161 Total costs, expenses and other 4,434 12,100 Income from discontinued operations before income taxes for the Sands Hill Mining disposal 1,832 3,250 Income taxes - - Net income from discontinued operations $ 1,832 $ 3,250 Cash Flows. The depreciation, depletion and amortization amounts for Sands Hill Mining LLC for each period presented are listed in the previous table. The Partnership did not fund any material capital expenditures for Sands Hill Mining LLC for any period presented. The gain on extinguishment of debt, which was $1.7 million for the year ended December 31, 2016 is the only material non-cash operating item for all periods presented. Sands Hill Mining LLC did not have any material non-cash investing items for any period presented. Elk Horn Coal Leasing In August 2016, the Partnership entered into an agreement to sell its Elk Horn coal leasing company (“Elk Horn”) to a third party for total cash consideration of $12.0 million. The Partnership received $10.5 million in cash consideration upon the closing of the Elk Horn transaction and the remaining $1.5 million of consideration was paid in ten equal monthly installments of $150,000. The Partnership recorded a net loss of $119.9 million from the Elk Horn disposal during the year ended December 31, 2016. The operating results of Elk Horn have been reclassified and reported on the (Gain)/loss from discontinued operations line on the Partnership’s consolidated statements of operations and comprehensive income for the year ended December 31, 2016. Elk Horn Coal Leasing Major components of net (loss) from discontinued operations for Elk Horn Coal Leasing for the years ended December 31, 2017 and 2016 are summarized as follows: Year ended December 31, 2017 2016 Major line items constituting (loss) from discontinued operations for the Elk Horn disposal: Royalty income $ - $ 2,668 Total revenues - 2,668 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) - 799 Depreciation, depletion and amortization - 413 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) - 174 (Loss) on sale/disposal of assets, net - 119,982 Interest expense and other - 13 Total costs, expenses and other - 121,381 (Loss) from discontinued operations before income taxes for the Elk Horn disposal - (118,713 ) Income taxes - - Net (loss) from discontinued operations $ - $ (118,713 ) Cash Flows. The depreciation, depletion and amortization amounts for Elk Horn for each period presented are listed in the previous table. The Partnership did not fund any capital expenditures for Elk Horn for any periods presented. The amortization of Elk Horn’s deferred revenue, which was $1.3 million for the year ended December 31, 2016 is the only material non-cash operating item for all periods presented. Elk Horn did not have any material non-cash investing items for any periods presented. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (in thousands) Other prepaid expenses $ 920 $ 642 Debt issuance costs—net - 1,239 Prepaid insurance 1,445 1,432 Prepaid leases 92 77 Supply inventory 434 614 Deposits - 164 Note receivable-current portion - 900 Total $ 2,891 $ 5,068 Debt issuance costs were included in Prepaid expenses and other current assets for the year ended December 31, 2016 since the Partnership classified its former credit facility balance as a current liability. See Note 9 for further information on the new financing agreement and related debt issuance costs. The $0.9 million note receivable relates to the $1.5 million of consideration that was paid in ten equal monthly installments of $150,000 for the Elk Horn sale discussed earlier. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, including coal properties and mine development and construction costs, as of December 31, 2017 and 2016 are summarized by major classification as follows: December 31, Useful Lives 2017 2016 (in thousands) Land and land improvements $ 14,687 $ 16,377 Mining and other equipment and related facilities 2 - 20 Years 298,293 290,253 Mine development costs 1 - 15 Years 58,566 57,392 Coal properties 1 - 15 Years 64,070 64,741 Construction work in process 5,227 1,797 Total 440,843 430,560 Less accumulated depreciation, depletion and amortization (263,520 ) (249,394 ) Net $ 177,323 $ 181,166 Depreciation expense for mining and other equipment and related facilities, depletion expense for coal, amortization expense for mine development costs and amortization expense for asset retirement costs for the years ended December 31, 2017 and 2016 was as follows: Year Ended December 31, 2017 2016 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 16,151 $ 19,773 Depletion expense for coal properties 1,693 1,220 Amortization expense for mine development costs 2,987 1,901 Amortization expense for asset retirement costs 286 (338 ) Total $ 21,117 $ 22,556 Taylorville Land Sale On December 30, 2015, the Partnership completed the sale of its land surface rights for the Taylorville property in central Illinois for approximately $7.2 million in net proceeds. The sale agreement allows the Partnership to retain the mining permit and control of the proven and probable coal reserves at the Taylorville property as the Partnership has the option to repurchase the rights to the land within seven years from the date of the sale agreement. In accordance with ASC 360-20-40-38, Real Estate Sales - Derecognition Asset Impairments-2017 The Partnership performed a comprehensive review of its coal mining operation as well as potential future development projects for the year ended December 31, 2017 to ascertain any potential impairment losses. The Partnership engaged an independent third party to perform a fair market value appraisal on certain parcels of land that it owns in Mesa County, Colorado. The parcels appraised for $6.0 million compared to the carrying value of $6.8 million. The Partnership recorded an impairment loss of $0.8 million, which is recorded on the Asset impairment and related charges line of the consolidated statements of operations and comprehensive income. No other coal properties, mine development costs or other coal mining equipment and related facilities were impaired as of December 31, 2017. Asset Impairments-2016 The Partnership also performed a comprehensive review of its coal mining operations as well as potential future development projects to ascertain any potential impairment losses for the year ended December 31, 2016. Based on the impairment analysis, the Partnership concluded that none of the coal properties, mine development costs or other coal mining equipment and related facilities were impaired at December 31, 2016. However, for the year ended December 31, 2016, the Partnership recorded $2.6 million of asset impairment losses and related charges associated with the 2015 sale of the Deane mining complex. Of the total $2.6 million non-cash impairment and other non-cash charges incurred, approximately $2.0 million related to impairment of the note receivable that was recorded in 2015 relating to the sale of the Deane mining complex. The additional $0.6 million impairment related to other non-recoverable items associated with the sale of the Deane mining complex. The $2.6 million asset impairment charge/loss for the Deane mining complex is recorded on the Asset impairment and related charges line of the consolidated statements of operations and comprehensive income. |
Intangible and Other Non-curren
Intangible and Other Non-current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible And Other Non-current Assets | |
Intangible and Other Non-current Assets | 7. INTANGIBLE AND OTHER NON-CURRENT ASSETS Other non-current assets as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (in thousands) Deposits and other $ 423 $ 218 Due (to) Rhino GP (61 ) (573 ) Non-current receivable 27,806 27,157 Deferred expenses 340 216 Total $ 28,508 $ 27,018 Non-current receivable Note receivable-related party Intangible purchase option Restricted cash |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (in thousands) Payroll, bonus and vacation expense $ 2,633 $ 1,432 Non-income taxes 2,738 2,211 Royalty expenses 2,410 1,612 Accrued interest 132 594 Health claims 871 630 Workers’ compensation & pneumoconiosis 1,750 2,450 Other 652 1,012 Total $ 11,186 $ 9,941 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 9. DEBT Debt as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (in thousands) Note payable -Financing Agreement $ 40,000 $ - Net unamortized debt issuance costs (4,688 ) - Net unamortized common unit warrants (1,264 ) Senior secured credit facility with PNC Bank, N.A. - 10,040 Total 34,048 10,040 Less current portion (5,475 ) (10,040 ) Long-term debt $ 28,573 $ - Financing Agreement On December 27, 2017, Rhino Energy LLC (“Rhino Energy”), a wholly-owned subsidiary of Rhino Resource Partners LP (the “Partnership’), certain of Rhino Energy’s subsidiaries identified as Borrowers (together with Rhino Energy, the “Borrowers”), the Partnership and certain other Rhino Energy subsidiaries identified as Guarantors (together with the Partnership, the “Guarantors”), entered into a Financing Agreement (the “Financing Agreement”) Cortland Capital Market Services LLC, as Collateral Agent and Administrative agent, CB Agent Services LLC, as Origination Agent and the parties identified as Lenders therein (the “Lenders”), pursuant to which Lenders have agreed to provide Borrowers with a multi-draw term loan in the aggregate principal amount of $80 million, subject to the terms and conditions set forth in the Financing Agreement. The total principal amount is divided into a $40 million commitment, the conditions of which were satisfied at the execution of the Financing Agreement (the “Effective Date Term Loan Commitment”) and an additional $40 million commitment that is contingent upon the satisfaction of certain conditions precedent specified in the Financing Agreement (“Delayed Draw Term Loan Commitment”). Loans made pursuant to the Financing Agreement are secured by substantially all of the Borrowers’ and Guarantors’ assets. The Financing Agreement terminates on December 27, 2020. Loans made pursuant to the Financing Agreement will, at Rhino Energy’s option, either be “Reference Rate Loans” or “LIBOR Rate Loans.” Reference Rate Loans bear interest at the greatest of (a) 4.25% per annum, (b) the Federal Funds Rate plus 0.50% per annum, (c) the LIBOR Rate (calculated on a one-month basis) plus 1.00% per annum or (d) the Prime Rate (as published in the Wall Street Journal) or if no such rate is published, the interest rate published by the Federal Reserve Board as the “bank prime loan” rate or similar rate quoted therein, in each case, plus an applicable margin of 9.00% per annum (or 12.00% per annum if Rhino Energy has elected to capitalize an interest payment pursuant to the PIK Option, as described below). LIBOR Rate Loans bear interest at the greater of (x) the LIBOR for such interest period divided by 100% minus the maximum percentage prescribed by the Federal Reserve for determining the reserve requirements in effect with respect to eurocurrency liabilities for any Lender, if any, and (y) 1.00%, in each case, plus 10.00% per annum (or 13.00% per annum if the Borrowers have elected to capitalize an interest payment pursuant to the PIK Option). Interest payments are due on a monthly basis for Reference Rate Loans and one-, two- or three-month periods, at Rhino Energy’s option, for LIBOR Rate Loans. If there is no event of default occurring or continuing, Rhino Energy may elect to defer payment on interest accruing at 6.00% per annum by capitalizing and adding such interest payment to the principal amount of the applicable term loan (the “PIK Option”). Commencing December 31, 2018, the principal for each loan made under the Financing Agreement will be payable on a quarterly basis in an amount equal to $375,000 per quarter, with all remaining unpaid principal and accrued and unpaid interest due on December 27, 2020. In addition, the Borrowers must make certain prepayments over the term of any loans outstanding, including: (i) the payment of 25% of Excess Cash Flow (as that term is defined in the Financing Agreement) of the Partnership and its subsidiaries for each fiscal year, commencing with respect to the year ending December 31, 2019, (ii) subject to certain exceptions, the payment of 100% of the net cash proceeds from the dispositions of certain assets, the incurrence of certain indebtedness or receipts of cash outside of the ordinary course of business, and (iii) the payment of the excess of the outstanding principal amount of term loans outstanding over the amount of the Collateral Coverage Amount (as that term is defined in the Financing Agreement). In addition, the Lenders are entitled to certain fees, including 1.50% per annum of the unused Delayed Draw Term Loan Commitment for as long as such commitment exists, (ii) for the 12-month period following the execution of the Financing Agreement, a make-whole amount equal to the interest and unused Delayed Draw Term Loan Commitment fees that would have been payable but for the occurrence of certain events, including among others, bankruptcy proceedings or the termination of the Financing Agreement by Rhino Energy, and (iii) audit and collateral monitoring fees and origination and exit fees. The Financing Agreement requires the Borrowers and Guarantor to comply with several affirmative covenants at any time loans are outstanding, including, among others: (i) the requirement to deliver monthly, quarterly and annual financial statements, (ii) the requirement to periodically deliver certificates indicating, among other things, (a) compliance with terms of the Financing Agreement and ancillary loan documents, (b) inventory, accounts payable, sales and production numbers, (c) the calculation of the Collateral Coverage Amount (as that term is defined in the Financing Agreement), (d) projections for the Partnership and its subsidiaries and (e) coal reserve amounts; (ii) the requirement to notify the Administrative Agent of certain events, including events of default under the Financing Agreement, dispositions, entry into material contracts, (iii) the requirement to maintain insurance, obtain permits, and comply with environmental and reclamation laws (iv) the requirement to sell up to $5.0 million of shares in Mammoth Energy Securities, Inc. and use the net proceeds therefrom to prepay outstanding term loans and (v) establish and maintain cash management services and establish a cash management account and deliver a control agreement with respect to such account to the Collateral Agent. The Financing Agreement also contains negative covenants that restrict the Borrowers and Guarantors ability to, among other things: (i) incur liens or additional indebtedness or make investments or restricted payments, (ii) liquidate or merge with another entity, or dispose of assets, (iii) change the nature of their respective businesses; (iii) make capital expenditures in excess, or, with respect to maintenance capital expenditures, lower than, specified amounts, (iv) incur restrictions on the payment of dividends, (v) prepay or modify the terms of other indebtedness, (vi) permit the Collateral Coverage Amount to be less than the outstanding principal amount of the loans outstanding under the Financing Agreement or (vii) permit the trailing six month Fixed Charge Coverage Ratio of the Partnership and its subsidiaries to be less than 1.20 to 1.00 commencing with the six-month period ending June 30, 2018. The Financing Agreement contains customary events of default, following which the Collateral Agent may, at the request of lenders, terminate or reduce all commitments and accelerate the maturity of all outstanding loans to become due and payable immediately together with accrued and unpaid interest thereon and exercise any such other rights as specified under the Financing Agreement and ancillary loan documents. At December 31, 2017, $40.0 million was outstanding under the Financing Agreement at a variable interest rate of Libor plus 10.00% (11.68% at December 31, 2017). Common Unit Warrants The Partnership entered into a warrant agreement with certain parties that are also parties to the Financing Agreement discussed above. The warrant agreement included the issuance of a total of 683,888 warrants for common units (“Common Unit Warrants”) of the Partnership at an exercise price of $1.95 per unit, which was the closing price of the Partnership's units on the OTC market as of December 27, 2017. The Common Unit Warrants have a five year expiration date. The Common Unit Warrants and the Rhino common units after exercise are both transferable, subject to applicable US securities laws. The Common Unit Warrant exercise price is $1.95 per unit, but the price per unit will be reduced by future common unit distributions and other further adjustments in price included in the warrant agreement for transactions that are dilutive to the amount of Rhino’s common units outstanding. The warrant agreement includes a provision for a cashless exercise where the warrant holders can receive a net number of common units. Per the warrant agreement, the warrants are detached from the Financing Agreement and fully transferable. The Partnership analyzed the Common Unit Warrants in accordance with the applicable accounting literature and concluded the Common Unit Warrants should be classified as equity. The Partnership allocated the $40.0 million proceeds from the Financing Agreement between the Common Unit Warrants and the Financing Agreement based upon their relative fair values. The allocation based upon relative fair values resulted in approximately $1.3 million being recorded for the Common Unit Warrants in the Partner’s Capital equity section and a corresponding reduction in Long-term debt, net on the Partnership’s consolidated statements of financial position. Letter of Credit Facility – PNC Bank On December 27, 2017, the Partnership entered into a master letter of credit facility, security agreement and reimbursement agreement (the “LoC Facility Agreement”) with PNC Bank, National Association (“PNC”), pursuant to which PNC has agreed to provide the Partnership with a facility for the issuance of standby letters of credit used in the ordinary course of its business (the “LoC Facility”). The LoC Facility Agreement provides that the Partnership will pay a quarterly fee at a rate equal to 5% per annum calculated based on the daily average of letters of credit outstanding under the LoC Facility, as well as administrative costs incurred by PNC and a $100,000 closing fee. The LoC Facility Agreement provides that the Partnership will reimburse PNC for any drawing under a letter of credit by a specified beneficiary as soon as possible after payment is made. The Partnership’s obligations under the LoC Facility Agreement will be secured by a first lien security interest on a cash collateral account that is required to contain no less than 105% of the face value of the outstanding letters of credit. In the event the amount in such cash collateral account is insufficient to satisfy the Partnership’s reimbursement obligations, the amount outstanding will bear interest at a rate per annum equal to the Base Rate (as that term is defined in the LoC Facility Agreement) plus 2.0%. The Partnership will indemnify PNC for any losses which PNC may incur as a result of the issuance of a letter of credit or PNC’s failure to honor any drawing under a letter of credit, subject in each case to certain exceptions. The LoC Facility Agreement expires on December 31, 2018. The Partnership had outstanding letters of credit of approximately $11.2 million at a fixed interest rate of 5.00% at December 31, 2017. Other Notes Payable- On July 7, 2016, the Partnership executed an agreement with the third party that held the $2.8 million of other notes payable to settle the debt for $1.1 million of cash consideration. The Partnership paid the $1.1 million in July 2016 and recognized a $1.7 million gain from extinguishment of debt. The gain was reclassified to discontinued operations due to the sale of Sands Hill Mining LLC during the year ended December 31, 2017. The Partnership did not capitalize any interest costs during the year ended December 31, 2017 or 2016. Principal payments on long-term debt (excluding unamortized debt issuance costs and unamortized warrant costs) due subsequent to December 31, 2017 are as follows: (in thousands) 2018 $ 5,475 2019 1,500 2020 33,025 2021 - Thereafter - Total principal payments $ 40,000 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 10. ASSET RETIREMENT OBLIGATIONS The changes in asset retirement obligations for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Balance at beginning of period (including current portion) $ 19,108 $ 23,077 Accretion expense 1,493 1,486 Adjustment resulting from disposal of property (1) (223 ) (4,170 ) Adjustments to the liability from annual recosting and other (1,656 ) (1,085 ) Liabilities settled (60 ) (200 ) Balance at end of period 18,662 19,108 Less current portion of asset retirement obligation (498 ) (883 ) Long-term portion of asset retirement obligation $ 18,164 $ 18,225 (1) The ($0.2) million and the ($4.2) million adjustments for the years ended December 31, 2017 and 2016, respectively, relate to the sale of the Partnership’s Sands Hill Mining entity as discussed in Note 4. |
Workers_ Compensation and Black
Workers’ Compensation and Black Lung | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Workers’ Compensation and Black Lung | 11. WORKERS’ COMPENSATION AND BLACK LUNG Certain of the Partnership’s subsidiaries are liable under federal and state laws to pay workers’ compensation and coal workers’ black lung benefits to eligible employees, former employees and their dependents. The Partnership currently utilizes an insurance program and state workers’ compensation fund participation to secure its on-going obligations depending on the location of the operation. Premium expense for workers’ compensation benefits is recognized in the period in which the related insurance coverage is provided. The Partnership’s black lung benefit liability is calculated using the service cost method that considers the calculation of the actuarial present value of the estimated black lung obligation. The Partnership’s actuarial calculations using the service cost method for its black lung benefit liability are based on numerous assumptions including disability incidence, medical costs, mortality, death benefits, dependents and interest rates. The Partnership’s liability for traumatic workers’ compensation injury claims is the estimated present value of current workers’ compensation benefits, based on actuarial estimates. The Partnership’s actuarial estimates for its workers’ compensation liability are based on numerous assumptions including claim development patterns, mortality, medical costs and interest rates. The discount rate used to calculate the estimated present value of future obligations for black lung was 3.5% and 4.0%, for December 31, 2017 and 2016, respectively and for workers’ compensation the discount rate was 3.0% and 2.0% at December 31, 2017 and 2016, respectively. The uninsured black lung and workers’ compensation expenses for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Black lung benefits: Service cost $ 1,771 $ (506 ) Interest cost 344 363 Actuarial loss/(gain) 924 - Total black lung 3,039 (143 ) Workers’ compensation expense 3,231 4,013 Total expense $ 6,270 $ 3,870 The changes in the black lung benefit liability for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Benefit obligations at beginning of year $ 8,782 $ 9,225 Service cost 1,771 (506 ) Interest cost 344 363 Actuarial loss/(gain) 924 - Benefits and expenses paid (375 ) (300 ) Benefit obligations at end of year $ 11,446 $ 8,782 The classification of the amounts recognized for the Partnership’s workers’ compensation and black lung benefits liability as of December 31, 2017 and 2016 are as follows: December 31, 2017 2016 (in thousands) Uninsured black lung claims $ 11,446 $ 8,782 Insured black lung and workers’ compensation claims 27,806 27,157 Workers’ compensation claims 5,216 5,584 Total obligations $ 44,468 $ 41,523 Less current portion (1,750 ) (2,450 ) Non-current obligations $ 42,718 $ 39,073 The balance for insured black lung and workers’ compensation claims as of December 31, 2017 and 2016 consisted of $27.8 million and $27.2 million, respectively. This is a primary obligation of the Partnership, but is also due from the Partnership’s insurance providers and is included in Note 7 as non-current receivables. The Partnership presents this amount on a gross asset and liability basis since a right of setoff does not exist per the accounting guidance in ASC Topic 210. This presentation has no impact on the Partnership’s results of operations or cash flows. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 12. EMPLOYEE BENEFITS Postretirement Plan On December 10, 2015, the Partnership notified the employees at its Hopedale operations that healthcare benefits from the postretirement benefit plan would cease on January 31, 2016. The negative plan amendment that arose on December 10, 2015 resulted in an approximate $6.5 million prior service cost benefit. The Partnership amortized the prior service cost benefit over the remaining term of the benefits to be provided until January 31, 2016. For the year ended December 31, 2015, the Partnership recognized a benefit of approximately $2.6 million from the plan amendment in the Cost of operations line of the consolidated statements of operations and comprehensive income. The remaining $3.9 million benefit from the plan amendment was recognized in the first quarter of 2016. Summaries of the changes in benefit obligations and funded status of the plan as of the measurement dates of December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Benefit obligation at beginning of period $ - $ 45 Changes in benefit obligations: Service cost - - Interest cost - - Benefits paid - (45 ) Plan amendment - - Actuarial loss/(gain) - - Benefit obligation at end of period $ - $ - Fair value of plan assets at end of period $ - $ - Funded status $ - $ - The classification of net amounts recognized for postretirement benefits as of December 31, 2017 and 2016 are as follows: December 31, 2017 2016 (in thousands) Current liability—postretirement benefits $ - $ - Non-current liability—postretirement benefits - - Net amount recognized $ - $ - The amounts recognized in accumulated other comprehensive income for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Balance at beginning of year $ - $ 4,795 Actuarial (loss)/gain - - Prior service (cost)/gain to be amortized - (3,876 ) Amortization of net actuarial gain - (919 ) Net actuarial gain $ - $ - The amounts reclassified from accumulated other comprehensive income to Cost of operations in the Partnership’s consolidated statements of operations for the years ended December 31, 2017 and 2016 was zero and $4.8 million (inclusive of the $2.6 million benefit from the negative plan amendment described above), respectively. December 31, 2017 2016 Weighted Average assumptions used to determine benefit obligations: Discount rate n/a n/a Expected return on plan assets n/a n/a Year Ended December 31, 2017 2016 Weighted Average assumptions used to determine periodic benefit cost: Discount rate (1) n/a n/a Expected return on plan assets n/a n/a Rate of compensation increase n/a n/a The components of net periodic benefit cost for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Service costs $ - $ - Interest cost - - Amortization of prior service cost - (3,876 ) Amortization of (gain) - (919 ) Actuarial gain $ - $ (4,795 ) 401(k) Plans Year Ended December 31, 2017 2016 (in thousands) 401(k) plan expense $ 1,453 $ 1,381 |
Equity-Based Compensation_Partn
Equity-Based Compensation/Partners' Capital | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation/Partners' Capital | 13. EQUITY-BASED COMPENSATION/PARTNERS’ CAPITAL Equity-Based Compensation As of December 31, 2017, the general partner had granted restricted units and unit awards to its directors. For the year ended December 31, 2016, the Partnership recorded expense of approximately $0.4 million for the LTIP awards. For the year ended December 31, 2016, the total fair value of the awards that vested was $0.5 million. No such expense was recognized in 2017. As all grants in 2017 and 2016 vested immediately, the Partnership did not have any unrecognized compensation expense of any non-vested LTIP awards as of December 31, 2017. Partners’ Capital |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. COMMITMENTS AND CONTINGENCIES Coal Sales Contracts and Contingencies Year Tons (in thousands) Number of customers 2018 3,585 15 2019 850 3 2020 850 3 Some of the contracts have sales price adjustment provisions, subject to certain limitations and adjustments, based on a variety of factors and indices. Purchased Coal Expenses Year Ended December 31, 2017 2016 (in thousands) Purchased coal expense $ 377 $ - OTC expense $ - $ - Leases Year Ended December 31, 2017 2016 (in thousands) Lease expense $ 3,752 $ 4,901 Royalty expense $ 14,274 $ 9,801 Approximate future minimum lease and royalty payments (not including advance royalties already paid and recorded as assets in the accompanying statements of financial position) are as follows: Years Ending December 31, Royalties Leases (in thousands) 2018 $ 1,492 $ 254 2019 1,492 - 2020 1,555 - 2021 1,555 - 2022 1,555 - Thereafter 7,777 - Total minimum royalty and lease payments $ 15,426 $ 254 Environmental Matters Legal Matters Guarantees/Indemnifications and Financial Instruments with Off-Balance Sheet Risk The Financing Agreement is fully and unconditionally, jointly and severally guaranteed by the Partnership and substantially all of its wholly owned subsidiaries. Borrowings under the financing agreement are collateralized by the unsecured assets of the Partnership and substantially all of its wholly owned subsidiaries. See Note 9, for a more complete discussion of the Partnership’s debt obligations. |
Earnings Per Unit ('EPU')
Earnings Per Unit ('EPU') | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Unit [Abstract] | |
Earnings Per Unit ("EPU") | 15. EARNINGS PER UNIT (“EPU”) The following table presents a reconciliation of the numerators and denominators of the basic and diluted EPU calculations for the years ended December 31, 2017 and 2016: Year ended December 31, 2017 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/ income: Net (loss)/income from continuing operations $ (112 ) $ (24,391 ) $ (2,155 ) $ 6,038 Net income from discontinued operations 8 1,676 148 - Interest in net (loss)/income $ (104 ) $ (22,715 ) $ (2,007 ) $ 6,038 Denominator: Weighted average units used to compute basic EPU n/a 12,965 1,146 1,500 Weighted average units used to compute diluted EPU n/a 12,965 1,146 1,500 Net (loss)/income per limited partner unit, basic: Net (loss)/income per unit from continuing operations n/a $ (1.88 ) $ (1.88 ) $ 4.03 Net income per unit from discontinued operations n/a 0.13 0.13 - Net (loss)/income per limited partner unit, basic n/a $ (1.75 ) $ (1.75 ) $ 4.03 Net (loss)/income per limited partner unit, diluted: Net (loss)/income per unit from continuing operations n/a $ (1.88 ) $ (1.88 ) $ 4.03 Net income per unit from discontinued operations n/a 0.13 0.13 - Net (loss)/income per limited partner unit, diluted n/a $ (1.75 ) $ (1.75 ) $ 4.03 Year ended December 31, 2016 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss): Net (loss) from continuing operations $ (128 ) $ (12,755 ) $ (2,417 ) n/a Net (loss) from discontinued operations (734 ) (96,451 ) (18,278 ) n/a Interest in net (loss) $ (862 ) $ (109,206 ) $ (20,695 ) n/a Denominator: Weighted average units used to compute basic EPU n/a 6,520 1,236 n/a Effect of dilutive securities — LTIP awards n/a - - n/a Weighted average units used to compute diluted EPU n/a 6,520 1,236 n/a Net (loss) per limited partner unit, basic: Net (loss) per unit from continuing operations n/a $ (1.96 ) $ (1.96 ) n/a Net (loss) per unit from discontinued operations n/a (14.79 ) (14.79 ) n/a Net(loss) per limited partner unit, basic n/a $ (16.75 ) $ (16.75 ) n/a Net (loss) per limited partner unit, diluted: Net (loss) per unit from continuing operations n/a $ (1.96 ) $ (1.96 ) n/a Net (loss) per unit from discontinued operations n/a (14.79 ) (14.79 ) n/a Net (loss) per limited partner unit, diluted n/a $ (16.75 ) $ (16.75 ) n/a Diluted EPU gives effect to all dilutive potential common units outstanding during the period using the treasury stock method. Diluted EPU excludes all dilutive potential units calculated under the treasury stock method if their effect is anti-dilutive. Since the Partnership incurred a total net loss for the year ended December 31, 2017 and 2016, all potential dilutive units were excluded from the diluted EPU calculation for this period because when an entity incurs a net loss in a period, potential dilutive units shall not be included in the computation of diluted EPU since their effect will always be anti-dilutive. There were 683,888 potential dilutive common units related to the Common Unit Warrants as discussed in Note 9 for the year ended December 31, 2017. |
Major Customers
Major Customers | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Major Customers | 16. MAJOR CUSTOMERS The Partnership had revenues or receivables from the following major customers that in each period equaled or exceeded 10% of revenues or receivables (Note: customers with “n/a” had revenue or receivables below the 10% threshold in any period where this is indicated): December 31, 2017 Receivable Balance Year Ended December 31, 2017 Sales December 31, 2016 Receivable Balance Year Ended December 31, 2016 Sales (in thousands) LGE/KU $ 1,483 $ 40,217 $ 1,496 $ 42,175 Integrity Coal 2,238 24,234 1,975 7,740 Dominion Energy 1,232 22,087 - 6,976 Big Rivers - 21,716 - 16,241 PacifiCorp Energy 1,717 16,518 1,509 19,581 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 17. FAIR VALUE MEASUREMENTS The Partnership determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Partnership’s assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below: Level One - Quoted prices for identical instruments in active markets. Level Two - The fair value of the assets and liabilities included in Level 2 are based on standard industry income approach models that use significant observable inputs. Level Three - Unobservable inputs significant to the fair value measurement supported by little or no market activity. In those cases when the inputs used to measure fair value meet the definition of more than one level of the fair value hierarchy, the lowest level input that is significant to the fair value measurement in its totality determines the applicable level in the fair value hierarchy. The book values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of their respective fair values because of the immediate short-term maturity of these financial instruments. The fair value of the Partnership’s financing agreement was determined based upon a market approach and approximates the carrying value at December 31, 2017. The fair value of the Partnership’s financing agreement is a Level 2 measurement. As of December 31, 2017 and December 31, 2016, the Partnership had a recurring fair value measurement relating to its investment in Mammoth, Inc. As discussed in Note 2, in October 2016, the Partnership contributed its limited partner interests in Mammoth to Mammoth, Inc. in exchange for 234,300 shares of common stock of Mammoth, Inc. The common stock of Mammoth, Inc. began trading on the NASDAQ Global Select Market in October 2016 under the ticker symbol TUSK and the Partnership sold 1,953 shares during the initial public offering of Mammoth, Inc. and received proceeds of approximately $27,000. In June 2017, the Partnership contributed its limited partner interests in Sturgeon to Mammoth Inc. in exchange for 336,447 shares of common stock of Mammoth, Inc. As of December 31, 2017, the Partnership owned 568,794 shares of Mammoth, Inc. The Partnership’s shares of Mammoth, Inc. are classified as an available-for-sale investment on the Partnership’s consolidated statements of financial position. Based on the availability of a quoted price, the recurring fair value measurement of the Mammoth, Inc. shares is a Level 1 measurement. For the year ended December 31, 2017, the Partnership had a nonrecurring fair value measurement related to an asset impairment. The Partnership engaged an independent third party to perform a fair market value appraisal on certain parcels of land that it owns in Mesa County, Colorado. The parcels appraised for $6.0 million compared to the carrying value of $6.8 million. The Partnership recorded an impairment loss of $0.8 million, which is recorded on the Asset impairment and related charges line of the consolidated statements of operations and comprehensive income. Based on the availability of an independent fair market value appraisal, the nonrecurring fair value measurement of the impairment is a Level 2 measurement. For the year ended December 31, 2017, the Partnership had a nonrecurring fair value measurement related to the Common Unit Warrants (see Note 9 for discussion of the Common Unit Warrants). The Partnership calculated the fair value of the Common Unit Warrants using a Black-Scholes model with inputs that include the Common Unit Warrants’ strike price, the term of the agreement, historical volatility of the Partnership’s common units and the risk free interest rate. The nonrecurring fair value measurement for the Common Unit Warrants for the year ended December 31, 2017 was a Level 3 measurement. For the year ended December 31, 2016, the Partnership had nonrecurring fair value measurements related to asset impairments as described in Note 6. The nonrecurring fair value measurements for the asset impairments described in Note 6 for the year ended December 31, 2016 were Level 3 measurements. |
Related Party and Affiliate Tra
Related Party and Affiliate Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party and Affiliate Transactions | 18. RELATED PARTY AND AFFILIATE TRANSACTIONS Related Party Description 2017 2016 (in thousands) Royal Energy Resources, Inc. Partner’s contribution $ - $ 7,000 Royal Energy Resources, Inc. Purchase of preferred units - 2,000 Royal Energy Resources, Inc. Note receivable conversion 4,100 - Royal Energy Resources, Inc. Commissions and other fees 819 - Weston Energy LLC Purchase of preferred units - 11,000 Wexford Capital LP Expenses for legal, consulting, and advisory services - 11 Mammoth Energy Partners LP Investment in unconsolidated affiliate 40 - Sturgeon Acquisitions LLC Distributions from unconsolidated affiliate 300 Sturgeon Acquisitions LLC Equity in net income of unconsolidated affiliate (4 ) (223 ) Yorktown Partners LLC Preferred distribution accrual 6,038 - |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 19. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash payments for interest were $2.5 million and $3.8 million for the years ended December 31, 2017 and 2016, respectively. The consolidated statement of cash flows for the year ended December 31, 2017 is exclusive of approximately $1.0 million of property, plant and equipment additions which are recorded in Accounts payable. The consolidated statement of cash flows for the year ended December 31, 2017 is exclusive of $4.1 million related to the conversion of the Rhino Promissory Note and the Weston Promissory Note to shares of Royal common stock. See Note 13, “Equity Based Compensation/Partners’ Capital” for further discussion. The consolidated statement of cash flows for the year ended December 31, 2016 is exclusive of approximately $1.1 million of property, plant and equipment additions which are recorded in Accounts payable. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 20. SEGMENT INFORMATION The Partnership primarily produces and markets coal from surface and underground mines in Kentucky, West Virginia, Ohio and Utah. The Partnership sells primarily to electric utilities in the United States. As of December 31, 2017, the Partnership has four reportable business segments: Central Appalachia, Northern Appalachia, Rhino Western and Illinois Basin. Additionally, the Partnership has an Other category that includes its ancillary businesses. The Partnership’s Other category as reclassified is comprised of the Partnership’s ancillary businesses and its remaining oil and natural gas activities. Held for sale assets are included in the applicable segment for reporting purposes. The Partnership has not provided disclosure of total expenditures by segment for long-lived assets, as the Partnership does not maintain discrete financial information concerning segment expenditures for long lived assets, and accordingly such information is not provided to the Partnership’s chief operating decision maker. The information provided in the following tables represents the primary measures used to assess segment performance by the Partnership’s chief operating decision maker. For the 2017 reporting period, the Partnership changed its methodology for allocating debt interest expense and corporate selling, general and administrative expense to its reportable segments where interest expense and corporate selling, general and administrative expense are no longer allocated to the reportable segments and are reported in the Other category. All prior periods have been recast to reflect this allocation methodology change. Reportable segment results of operations and financial position for the year ended December 31, 2017 are as follows (Note: “DD&A” refers to depreciation, depletion and amortization): Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Total assets $ 99,425 $ 9,054 $ 33,863 $ 77,546 $ 62,892 $ 282,780 Total revenues 101,992 17,145 35,458 64,055 41 218,691 DD&A 7,701 988 4,479 7,576 373 21,117 Interest expense - - - - 4,010 4,010 Net Income (loss) from continuing operations $ 13,717 $ (3,109 ) $ 1,676 $ 1,734 $ (34,638 ) $ (20,620 ) Reportable segment results of operations and financial position for the year ended December 31, 2016 are as follows: Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Total assets $ 89,918 $ 9,758 $ 33,205 $ 80,218 $ 64,342 $ 277,441 Total revenues 37,753 23,485 34,675 59,095 423 155,431 DD&A 6,553 1,912 5,211 8,326 554 22,556 Interest expense 2 - - 4 6,529 6,535 Net Income (loss) from continuing operations $ (4,104 ) $ 7,723 $ 1,425 $ (605 ) $ (19,739 ) $ (15,300 ) Net Income (loss) from continuing operations* $ (10,615 ) $ 5,541 $ (1,042 ) $ (5,524 ) $ (3,660 ) $ (15,300 ) *Per 2016 original filing adjusted for discontinued operations. Difference from 2016 original Form 10-K filing due to change in methodology for allocating debt interest expense and corporate selling, general and administrative expense to its reportable segments where interest expense and corporate selling, general and administrative expense are no longer allocated to the reportable segments and are reported in the Other category. Additional information on the Partnership’s revenue by product category for the periods ended December 31, 2017 and 2016 is as follows: 2017 2016 (in thousands) Met coal revenue $ 64,033 $ 21,542 Steam coal revenue 153,159 131,729 Other revenue 1,499 2,160 Total revenue $ 218,691 $ 155,431 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies and General (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Trade Receivables and Concentrations of Credit Risk | Trade Receivables and Concentrations of Credit Risk. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash. Statement of Cash Flows-Restricted Cash On December 27, 2017, the Partnership entered into a letter of credit facility with PNC Bank, National Association under which the letter of credit facility will be secured by a first lien security interest on a cash collateral account that is required to contain no less than 105% of the face value of the outstanding letters of credit. As of December 31, 2017, the restricted cash collateral account had a balance of $12.3 million. Please refer to Note 9 for additional discussion of the letter of credit facility. |
Inventories | Inventories. |
Advance Royalties | Advance Royalties. |
Property, Plant and Equipment | Property, Plant and Equipment. Stripping costs incurred in the production phase of a mine for the removal of overburden or waste materials for the purpose of obtaining access to coal that will be extracted are variable production costs that are included in the cost of inventory produced and extracted during the period the stripping costs are incurred. The Partnership defines a surface mine as a location where the Partnership utilizes operating assets necessary to extract coal, with the geographic boundary determined by property control, permit boundaries, and/or economic threshold limits. Multiple pits that share common infrastructure and processing equipment may be located within a single surface mine boundary, which can cover separate coal seams that typically are recovered incrementally as the overburden depth increases. In accordance with the accounting guidance for extractive mining activities, the Partnership defines a mine in production as one from which saleable minerals have begun to be extracted (produced) from an ore body, regardless of the level of production; however, the production phase does not commence with the removal of de minimis saleable mineral material that occurs in conjunction with the removal of overburden or waste material for the purpose of obtaining access to an ore body. The Partnership capitalizes only the development cost of the first pit at a mine site that may include multiple pits. |
Asset Impairments for Coal Properties, Mine Development Costs and Other Coal Mining Equipment and Related Facilities | Asset Impairments for Coal Properties, Mine Development Costs and Other Coal Mining Equipment and Related Facilities. |
Debt Issuance Costs | Debt Issuance Costs. |
Asset Retirement Obligations | Asset Retirement Obligations. The Partnership estimates its future cost requirements for reclamation of land where it has conducted surface and underground mining operations, based on its interpretation of the technical standards of regulations enacted by the U.S. Office of Surface Mining, as well as state regulations. These costs relate to reclaiming the pit and support acreage at surface mines and sealing portals at underground mines. Other reclamation costs are related to refuse and slurry ponds, as well as holding and related termination/exit costs. The Partnership expenses contemporaneous reclamation which is performed prior to final mine closure. The establishment of the end of mine reclamation and closure liability is based upon permit requirements and requires significant estimates and assumptions, principally associated with regulatory requirements, costs and recoverable coal reserves. Annually, the Partnership reviews its end of mine reclamation and closure liability and makes necessary adjustments, including mine plan and permit changes and revisions to cost and production levels to optimize mining and reclamation efficiency. When a mine life is shortened due to a change in the mine plan, mine closing obligations are accelerated, the related accrual is increased and the related asset is reviewed for impairment, accordingly. The adjustments to the liability from annual recosting reflect changes in expected timing, cash flow and the discount rate used in the present value calculation of the liability. Each respective year includes a range of discount rates that are dependent upon the timing of the cash flows of the specific obligations. Changes in the asset retirement obligations for the year ended December 31, 2017 were calculated with discount rates that ranged from 9.7% to 11.9%. Changes in the asset retirement obligations for the year ended December 31, 2016 were calculated with discount rates that ranged from 7.0% to 9.1%. The discount rates changed in each respective year due to changes in applicable market indicators that are used to arrive at an appropriate discount rate. Other recosting adjustments to the liability are made annually based on inflationary cost increases or decreases and changes in the expected operating periods of the mines. The related inflation rate utilized in the recosting adjustments was 2.3 % for 2017 and 2016. |
Revenue Recognition | Revenue Recognition. Freight and handling costs paid directly to third-party carriers and invoiced to coal customers are recorded as freight and handling costs and freight and handling revenues, respectively. Other revenues generally consist of coal royalty revenues, coal handling and processing revenues, rebates and rental income. With respect to other revenues recognized in situations unrelated to the shipment of coal, the Partnership carefully reviews the facts and circumstances of each transaction and does not recognize revenue until the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable and collectibility is reasonably assured. Advance payments received are deferred and recognized in revenue when earned. |
Equity-Based Compensation | Equity-Based Compensation. |
Derivative Financial Instruments | Derivative Financial Instruments. |
Investments in Joint Ventures | Investments in Joint Ventures. In December 2012, the Partnership made an initial investment in a new joint venture, Muskie Proppant LLC (“Muskie”), with affiliates of Wexford Capital. In November 2014, the Partnership contributed its investment interest in Muskie to Mammoth Energy Partners LP (“Mammoth”) in return for a limited partner interest in Mammoth. In October 2016, the Partnership contributed its limited partner interests in Mammoth to Mammoth Energy Services, Inc. (NASDAQ: TUSK) (“Mammoth Inc.”) in exchange for 234,300 shares of common stock of Mammoth, Inc. In September 2014, the Partnership made an initial investment of $5.0 million in a new joint venture, Sturgeon Acquisitions LLC (“Sturgeon”), with affiliates of Wexford Capital and Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport”). The Partnership accounted for the investment in this joint venture and results of operations under the equity method based upon its ownership percentage. The Partnership recorded its proportionate share of the operating income/(loss) for this investment for the years ended December 31, 2017 and 2016 of approximately $36,000 and ($0.2) million, respectively. In June 2017, the Partnership contributed its limited partner interests in Sturgeon to Mammoth Inc. in exchange for 336,447 shares of common stock of Mammoth Inc. As of December 31, 2017, the Partnership owned 568,794 shares of Mammoth Inc. As of December 31, 2017 and 2016, the Partnership recorded a fair market value adjustment of $2.6 million and $1.6 million, respectively, for its available-for-sale investment in Mammoth Inc. based on the market value of the shares at December 31, 2017 and 2016, respectively, which was recorded in Other Comprehensive Income. As of December 31, 2017 and 2016, the Partnership recorded its investment in Mammoth Inc. as a current asset, which was classified as available-for-sale. The Partnership has included its investment in Mammoth Inc. and its prior investment in Muskie and Sturgeon in its Other category for segment reporting purposes. |
Income Taxes | Income Taxes. |
Loss Contingencies | Loss Contingencies. |
Management's Use of Estimates | Management’s Use of Estimates. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards. Revenue from Contracts with Customers Revenue Recognition Revenue Recognition—Construction-Type and Production-Type Contracts Property, Plant, and Equipment Intangibles—Goodwill and Other In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance on eight cash flow issues, including debt prepayment or debt extinguishment costs. ASU 2016-15 requires that cash payments related to debt prepayments or debt extinguishments, excluding accrued interest, be classified as a financing activity rather than an operating activity even when the effects enter into the determination of net income. The amendments in ASU 2016-15 will be effective on January 1, 2018 and must be applied retrospectively. Early application is permitted. The Partnership early adopted this standard and as such has classified debt extinguishment as a financing activity for the year ended December 31, 2016. The Partnership did not have any other material impact from the early adoption of ASU-2016-15. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805).” ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Partnership has evaluated the impact of adoption of this standard on its consolidated financial statements, which has no current period impact but may impact future periods in which acquisitions are completed. In July 2017, the FASB issued ASU 2017-11, “Earnings Per Share (Topic 260): Distinguishing Liabilities from Equity (Topic 480), I. Derivatives and Hedging (Topic 815): Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.” Upon its adoption, Part I of ASU 2017-11 will result in freestanding equity-linked financial instruments, such as warrants, and conversion options in convertible debt or preferred stock to no longer be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity-classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. The amendments in Part II recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification. The amendments in Part II do not require any transition guidance as the amendments do not have an accounting effect. The amendments in ASU 2017-11 will be effective on January 1, 2020, and the Part I amendments must be applied retrospectively. Early application is permitted. The Partnership early adopted ASU 2017-11, which did not have any material impact. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Sands Hill Mining LLC [Member] | |
Schedule of Assets and Liabilities and Major Components of Net (Loss) Income from Discontinued Operations | Sands Hill Mining LLC Major assets and liabilities of discontinued operations for Sands Hill Mining LLC, as of December 31, 2017 and 2016 are summarized as follows: December 31, Carrying amount of major classes of assets included as part of discontinued operations: 2017 2016 Cash and cash equivalents $ - $ - Accounts receivable, net of allowance for doubtful accounts - 961 Inventories - 72 Prepaid expenses and other - 65 Total current assets of the disposal group classified as held for sale in the statement of financial position $ - $ 1,098 Property and equipment (net) $ - $ 1,141 Total non-current assets of the disposal group classified as held for sale in the statement of financial position $ - $ 1,141 Carrying amount of major classes of liabilities included as part of discontinued operations: Accounts payable $ - $ 241 Accrued expenses and other - 156 Total current liabilities of the disposal group classified as held for sale in the statement of financial position $ - $ 397 Asset retirement obligations, net of current portion $ - $ 4,135 Total non-current liabilities of the disposal group classified as held for sale in the statement of financial position $ - $ 4,135 Major components of net income from discontinued operations for Sands Hill Mining LLC for years ended December 31, 2017 and 2016 are summarized as follows: Year ended December 31, 2017 2016 Major line items constituting income from discontinued operations for the Sands Hill Mining disposal: Coal sales $ 1,280 $ 7,570 Limestone sales 3,483 5,344 Other revenue 1,503 2,436 Total revenues 6,266 15,350 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) 6,316 10,602 Freight and handling 771 1,731 Depreciation, depletion and amortization 493 1,230 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) 92 52 (Gain) on sale/disposal of assets, net (3,238 ) (5 ) (Gain) on extinguishment of debt - (1,663 ) Interest income - (8 ) Interest expense and other - 161 Total costs, expenses and other 4,434 12,100 Income from discontinued operations before income taxes for the Sands Hill Mining disposal 1,832 3,250 Income taxes - - Net income from discontinued operations $ 1,832 $ 3,250 |
Elk Horn [Member] | |
Schedule of Assets and Liabilities and Major Components of Net (Loss) Income from Discontinued Operations | Elk Horn Coal Leasing Major components of net (loss) from discontinued operations for Elk Horn Coal Leasing for the years ended December 31, 2017 and 2016 are summarized as follows: Year ended December 31, 2017 2016 Major line items constituting (loss) from discontinued operations for the Elk Horn disposal: Royalty income $ - $ 2,668 Total revenues - 2,668 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) - 799 Depreciation, depletion and amortization - 413 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) - 174 (Loss) on sale/disposal of assets, net - 119,982 Interest expense and other - 13 Total costs, expenses and other - 121,381 (Loss) from discontinued operations before income taxes for the Elk Horn disposal - (118,713 ) Income taxes - - Net (loss) from discontinued operations $ - $ (118,713 ) |
Prepaid Expenses and Other Cu28
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (in thousands) Other prepaid expenses $ 920 $ 642 Debt issuance costs—net - 1,239 Prepaid insurance 1,445 1,432 Prepaid leases 92 77 Supply inventory 434 614 Deposits - 164 Note receivable-current portion - 900 Total $ 2,891 $ 5,068 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment by Major Classification | Property, plant and equipment, including coal properties and mine development and construction costs, as of December 31, 2017 and 2016 are summarized by major classification as follows: December 31, Useful Lives 2017 2016 (in thousands) Land and land improvements $ 14,687 $ 16,377 Mining and other equipment and related facilities 2 - 20 Years 298,293 290,253 Mine development costs 1 - 15 Years 58,566 57,392 Coal properties 1 - 15 Years 64,070 64,741 Construction work in process 5,227 1,797 Total 440,843 430,560 Less accumulated depreciation, depletion and amortization (263,520 ) (249,394 ) Net $ 177,323 $ 181,166 |
Schedule of Depreciation, Depletion, and Amortization | Depreciation expense for mining and other equipment and related facilities, depletion expense for coal, amortization expense for mine development costs and amortization expense for asset retirement costs for the years ended December 31, 2017 and 2016 was as follows: Year Ended December 31, 2017 2016 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 16,151 $ 19,773 Depletion expense for coal properties 1,693 1,220 Amortization expense for mine development costs 2,987 1,901 Amortization expense for asset retirement costs 286 (338 ) Total $ 21,117 $ 22,556 |
Intangible and Other Non-curr30
Intangible and Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible And Other Non-current Assets | |
Schedule of Other Non-current Assets | Other non-current assets as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (in thousands) Deposits and other $ 423 $ 218 Due (to) Rhino GP (61 ) (573 ) Non-current receivable 27,806 27,157 Deferred expenses 340 216 Total $ 28,508 $ 27,018 |
Accrued Expenses and Other Cu31
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (in thousands) Payroll, bonus and vacation expense $ 2,633 $ 1,432 Non-income taxes 2,738 2,211 Royalty expenses 2,410 1,612 Accrued interest 132 594 Health claims 871 630 Workers’ compensation & pneumoconiosis 1,750 2,450 Other 652 1,012 Total $ 11,186 $ 9,941 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (in thousands) Note payable -Financing Agreement $ 40,000 $ - Net unamortized debt issuance costs (4,688 ) - Net unamortized common unit warrants (1,264 ) Senior secured credit facility with PNC Bank, N.A. - 10,040 Total 34,048 10,040 Less current portion (5,475 ) (10,040 ) Long-term debt $ 28,573 $ - |
Schedule of Principal Payments on Long-term Debt | Principal payments on long-term debt (excluding unamortized debt issuance costs and unamortized warrant costs) due subsequent to December 31, 2017 are as follows: (in thousands) 2018 $ 5,475 2019 1,500 2020 33,025 2021 - Thereafter - Total principal payments $ 40,000 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The changes in asset retirement obligations for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Balance at beginning of period (including current portion) $ 19,108 $ 23,077 Accretion expense 1,493 1,486 Adjustment resulting from disposal of property (1) (223 ) (4,170 ) Adjustments to the liability from annual recosting and other (1,656 ) (1,085 ) Liabilities settled (60 ) (200 ) Balance at end of period 18,662 19,108 Less current portion of asset retirement obligation (498 ) (883 ) Long-term portion of asset retirement obligation $ 18,164 $ 18,225 (1) The ($0.2) million and the ($4.2) million adjustments for the years ended December 31, 2017 and 2016, respectively, relate to the sale of the Partnership’s Sands Hill Mining entity as discussed in Note 4. |
Workers_ Compensation and Bla34
Workers’ Compensation and Black Lung (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Black Lung and Workers' Compensation Expenses | The uninsured black lung and workers’ compensation expenses for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Black lung benefits: Service cost $ 1,771 $ (506 ) Interest cost 344 363 Actuarial loss/(gain) 924 - Total black lung 3,039 (143 ) Workers’ compensation expense 3,231 4,013 Total expense $ 6,270 $ 3,870 |
Schedule of Changes in Benefit Liability | The changes in the black lung benefit liability for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Benefit obligations at beginning of year $ 8,782 $ 9,225 Service cost 1,771 (506 ) Interest cost 344 363 Actuarial loss/(gain) 924 - Benefits and expenses paid (375 ) (300 ) Benefit obligations at end of year $ 11,446 $ 8,782 |
Classification of Net Amounts Recognized for Workers' Compensation and Black Lung Benefits | The classification of the amounts recognized for the Partnership’s workers’ compensation and black lung benefits liability as of December 31, 2017 and 2016 are as follows: December 31, 2017 2016 (in thousands) Uninsured black lung claims $ 11,446 $ 8,782 Insured black lung and workers’ compensation claims 27,806 27,157 Workers’ compensation claims 5,216 5,584 Total obligations $ 44,468 $ 41,523 Less current portion (1,750 ) (2,450 ) Non-current obligations $ 42,718 $ 39,073 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Summary of Changes in Benefit Obligations | Summaries of the changes in benefit obligations and funded status of the plan as of the measurement dates of December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Benefit obligation at beginning of period $ - $ 45 Changes in benefit obligations: Service cost - - Interest cost - - Benefits paid - (45 ) Plan amendment - - Actuarial loss/(gain) - - Benefit obligation at end of period $ - $ - Fair value of plan assets at end of period $ - $ - Funded status $ - $ - |
Classification of Net Amounts Recognized for Postretirement Benefits | The classification of net amounts recognized for postretirement benefits as of December 31, 2017 and 2016 are as follows: December 31, 2017 2016 (in thousands) Current liability—postretirement benefits $ - $ - Non-current liability—postretirement benefits - - Net amount recognized $ - $ - |
Schedule of Recognized in Accumulated Other Comprehensive Income | The amounts recognized in accumulated other comprehensive income for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Balance at beginning of year $ - $ 4,795 Actuarial (loss)/gain - - Prior service (cost)/gain to be amortized - (3,876 ) Amortization of net actuarial gain - (919 ) Net actuarial gain $ - $ - |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations | December 31, 2017 2016 Weighted Average assumptions used to determine benefit obligations: Discount rate n/a n/a Expected return on plan assets n/a n/a |
Schedule of Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | Year Ended December 31, 2017 2016 Weighted Average assumptions used to determine periodic benefit cost: Discount rate (1) n/a n/a Expected return on plan assets n/a n/a Rate of compensation increase n/a n/a |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost for the years ended December 31, 2017 and 2016 are as follows: Year Ended December 31, 2017 2016 (in thousands) Service costs $ - $ - Interest cost - - Amortization of prior service cost - (3,876 ) Amortization of (gain) - (919 ) Actuarial gain $ - $ (4,795 ) |
Schedule of Expense Under Defined Contribution Savings Plans | The expense under these plans for the years ended December 31, 2017 and 2016 was as follows: Year Ended December 31, 2017 2016 (in thousands) 401(k) plan expense $ 1,453 $ 1,381 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Delivery Commitments | As of December 31, 2017, the Partnership had commitments under sales contracts to deliver annually scheduled base quantities of coal as follows: Year Tons (in thousands) Number of customers 2018 3,585 15 2019 850 3 2020 850 3 |
Schedule of Purchase Coal Expense | Purchase coal expense from coal purchase contracts and expense from OTC purchases for the years ended December 31, 2017 and 2016 was as follows: Year Ended December 31, 2017 2016 (in thousands) Purchased coal expense $ 377 $ - OTC expense $ - $ - |
Schedule of Lease and Royalty Expense | Lease and royalty expense for the years ended December 31, 2017 and 2016 was as follows: Year Ended December 31, 2017 2016 (in thousands) Lease expense $ 3,752 $ 4,901 Royalty expense $ 14,274 $ 9,801 |
Schedule of Future Minimum Lease and Royalty Payments | Approximate future minimum lease and royalty payments (not including advance royalties already paid and recorded as assets in the accompanying statements of financial position) are as follows: Years Ending December 31, Royalties Leases (in thousands) 2018 $ 1,492 $ 254 2019 1,492 - 2020 1,555 - 2021 1,555 - 2022 1,555 - Thereafter 7,777 - Total minimum royalty and lease payments $ 15,426 $ 254 |
Earnings Per Unit ('EPU') (Tabl
Earnings Per Unit ('EPU') (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Unit [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Unit | The following table presents a reconciliation of the numerators and denominators of the basic and diluted EPU calculations for the years ended December 31, 2017 and 2016: Year ended December 31, 2017 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss)/ income: Net (loss)/income from continuing operations $ (112 ) $ (24,391 ) $ (2,155 ) $ 6,038 Net income from discontinued operations 8 1,676 148 - Interest in net (loss)/income $ (104 ) $ (22,715 ) $ (2,007 ) $ 6,038 Denominator: Weighted average units used to compute basic EPU n/a 12,965 1,146 1,500 Weighted average units used to compute diluted EPU n/a 12,965 1,146 1,500 Net (loss)/income per limited partner unit, basic: Net (loss)/income per unit from continuing operations n/a $ (1.88 ) $ (1.88 ) $ 4.03 Net income per unit from discontinued operations n/a 0.13 0.13 - Net (loss)/income per limited partner unit, basic n/a $ (1.75 ) $ (1.75 ) $ 4.03 Net (loss)/income per limited partner unit, diluted: Net (loss)/income per unit from continuing operations n/a $ (1.88 ) $ (1.88 ) $ 4.03 Net income per unit from discontinued operations n/a 0.13 0.13 - Net (loss)/income per limited partner unit, diluted n/a $ (1.75 ) $ (1.75 ) $ 4.03 Year ended December 31, 2016 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders (in thousands, except per unit data) Numerator: Interest in net (loss): Net (loss) from continuing operations $ (128 ) $ (12,755 ) $ (2,417 ) n/a Net (loss) from discontinued operations (734 ) (96,451 ) (18,278 ) n/a Interest in net (loss) $ (862 ) $ (109,206 ) $ (20,695 ) n/a Denominator: Weighted average units used to compute basic EPU n/a 6,520 1,236 n/a Effect of dilutive securities — LTIP awards n/a - - n/a Weighted average units used to compute diluted EPU n/a 6,520 1,236 n/a Net (loss) per limited partner unit, basic: Net (loss) per unit from continuing operations n/a $ (1.96 ) $ (1.96 ) n/a Net (loss) per unit from discontinued operations n/a (14.79 ) (14.79 ) n/a Net(loss) per limited partner unit, basic n/a $ (16.75 ) $ (16.75 ) n/a Net (loss) per limited partner unit, diluted: Net (loss) per unit from continuing operations n/a $ (1.96 ) $ (1.96 ) n/a Net (loss) per unit from discontinued operations n/a (14.79 ) (14.79 ) n/a Net (loss) per limited partner unit, diluted n/a $ (16.75 ) $ (16.75 ) n/a |
Major Customers (Tables)
Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Summary of Major Customers | The Partnership had revenues or receivables from the following major customers that in each period equaled or exceeded 10% of revenues or receivables (Note: customers with “n/a” had revenue or receivables below the 10% threshold in any period where this is indicated): December 31, 2017 Receivable Balance Year Ended December 31, 2017 Sales December 31, 2016 Receivable Balance Year Ended December 31, 2016 Sales (in thousands) LGE/KU $ 1,483 $ 40,217 $ 1,496 $ 42,175 Integrity Coal 2,238 24,234 1,975 7,740 Dominion Energy 1,232 22,087 - 6,976 Big Rivers - 21,716 - 16,241 PacifiCorp Energy 1,717 16,518 1,509 19,581 |
Related Party and Affiliate T39
Related Party and Affiliate Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party and Affiliate Transactions | Related Party Description 2017 2016 (in thousands) Royal Energy Resources, Inc. Partner’s contribution $ - $ 7,000 Royal Energy Resources, Inc. Purchase of preferred units - 2,000 Royal Energy Resources, Inc. Note receivable conversion 4,100 - Royal Energy Resources, Inc. Commissions and other fees 819 - Weston Energy LLC Purchase of preferred units - 11,000 Wexford Capital LP Expenses for legal, consulting, and advisory services - 11 Mammoth Energy Partners LP Investment in unconsolidated affiliate 40 - Sturgeon Acquisitions LLC Distributions from unconsolidated affiliate 300 Sturgeon Acquisitions LLC Equity in net income of unconsolidated affiliate (4 ) (223 ) Yorktown Partners LLC Preferred distribution accrual 6,038 - |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Results of Operations | Reportable segment results of operations and financial position for the year ended December 31, 2017 are as follows (Note: “DD&A” refers to depreciation, depletion and amortization): Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Total assets $ 99,425 $ 9,054 $ 33,863 $ 77,546 $ 62,892 $ 282,780 Total revenues 101,992 17,145 35,458 64,055 41 218,691 DD&A 7,701 988 4,479 7,576 373 21,117 Interest expense - - - - 4,010 4,010 Net Income (loss) from continuing operations $ 13,717 $ (3,109 ) $ 1,676 $ 1,734 $ (34,638 ) $ (20,620 ) Reportable segment results of operations and financial position for the year ended December 31, 2016 are as follows: Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Total assets $ 89,918 $ 9,758 $ 33,205 $ 80,218 $ 64,342 $ 277,441 Total revenues 37,753 23,485 34,675 59,095 423 155,431 DD&A 6,553 1,912 5,211 8,326 554 22,556 Interest expense 2 - - 4 6,529 6,535 Net Income (loss) from continuing operations $ (4,104 ) $ 7,723 $ 1,425 $ (605 ) $ (19,739 ) $ (15,300 ) Net Income (loss) from continuing operations* $ (10,615 ) $ 5,541 $ (1,042 ) $ (5,524 ) $ (3,660 ) $ (15,300 ) *Per 2016 original filing adjusted for discontinued operations. Difference from 2016 original Form 10-K filing due to change in methodology for allocating debt interest expense and corporate selling, general and administrative expense to its reportable segments where interest expense and corporate selling, general and administrative expense are no longer allocated to the reportable segments and are reported in the Other category. |
Schedule of Revenue by Product Category | Additional information on the Partnership’s revenue by product category for the periods ended December 31, 2017 and 2016 is as follows: 2017 2016 (in thousands) Met coal revenue $ 64,033 $ 21,542 Steam coal revenue 153,159 131,729 Other revenue 1,499 2,160 Total revenue $ 218,691 $ 155,431 |
Organization and Basis of Pre41
Organization and Basis of Presentation (Details Narrative) $ / shares in Units, $ in Thousands | Oct. 31, 2017USD ($) | Sep. 02, 2017$ / sharesshares | Dec. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | May 13, 2016USD ($) | Apr. 18, 2016 | Mar. 21, 2016USD ($)$ / sharesshares | Mar. 17, 2016shares | Jan. 21, 2016USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Reverse split description | 1-for-10 reverse split on its common units and subordinated units | ||||||||||
Reverse stock split conversion ratio | 10 | ||||||||||
Asset impairments of loss/charges | $ 22,631 | $ 2,639 | |||||||||
Rhino Note Weston Promissory Note [Member] | |||||||||||
Debt conversion price per share | $ / shares | $ 4.51 | ||||||||||
Number of common shares issued for conversion | shares | 914,797 | ||||||||||
Royal Energy Resources, Inc [Member] | |||||||||||
Repayment of debt | $ 2,000 | $ 3,000 | |||||||||
Armstrong Energy [Member] | |||||||||||
Number of common unit issued during the period, value | $ 21,800 | ||||||||||
Royal Energy Resources Inc. [Member] | Weston Promissory Note [Member] | |||||||||||
Promissory note face value | $ 2,000 | ||||||||||
Wexford Capital [Member] | Royal Energy Resources, Inc [Member] | Subordinated Units [Member] | |||||||||||
Number of common unit shares acquired during the period | shares | 945,525 | ||||||||||
Royal VWAP [Member] | Minimum [Member] | |||||||||||
Debt conversion price per share | $ / shares | $ 3.50 | ||||||||||
Royal VWAP [Member] | Maximum [Member] | |||||||||||
Debt conversion price per share | $ / shares | 7.50 | ||||||||||
Common Units [Member] | |||||||||||
Reverse stock split conversion ratio | 10 | ||||||||||
Subordinated Units [Member] | |||||||||||
Reverse stock split conversion ratio | 10 | ||||||||||
Series A Preferred Units [Member] | Minimum [Member] | |||||||||||
Debt conversion price per share | $ / shares | 2 | ||||||||||
Series A Preferred Units [Member] | Maximum [Member] | |||||||||||
Debt conversion price per share | $ / shares | $ 10 | ||||||||||
Definitive Agreement [Member] | Royal Energy Resources, Inc [Member] | Wexford Capital [Member] | |||||||||||
Number of common unit shares acquired during the period | shares | 676,912 | ||||||||||
Value of common unit acquired during the period | $ 3,500 | ||||||||||
Definitive Agreement [Member] | Wexford Capital [Member] | Subordinated Units [Member] | |||||||||||
Number of common unit shares acquired during the period | shares | 945,525 | ||||||||||
Value of common unit acquired during the period | $ 1,000 | ||||||||||
Securities Purchase Agreement [Member] | Royal Energy Resources, Inc [Member] | |||||||||||
Number of common unit shares issued during the period | shares | 6,000,000 | ||||||||||
Common stock price per unit | $ / shares | $ 1.50 | ||||||||||
Number of common unit issued during the period, value | $ 9,000 | ||||||||||
Proceeds from shares issued | 2,000 | ||||||||||
Promissory note face value | $ 7,000 | ||||||||||
Debt final payments due | $ 2,000 | ||||||||||
Debt due date | Dec. 31, 2018 | ||||||||||
Option Agreement [Member] | |||||||||||
Ownership percentage | 51.00% | ||||||||||
Asset impairments of loss/charges | $ 21,800 | ||||||||||
Option Agreement [Member] | Mr. Bryan H. Lawrence [Member] | |||||||||||
Ownership percentage | 20.00% | ||||||||||
Option Agreement [Member] | Seventh Amendment [Member] | |||||||||||
Ownership percentage | 10.00% | ||||||||||
Option Agreement [Member] | Royal Energy Resources, Inc [Member] | |||||||||||
Number of common unit shares issued during the period | shares | 5,000,000 | ||||||||||
Option Agreement [Member] | Armstrong Energy [Member] | |||||||||||
Ownership percentage | 51.00% | ||||||||||
Option Agreement [Member] | Armstrong Energy [Member] | Royal Energy Resources, Inc [Member] | |||||||||||
Ownership percentage | 97.00% | ||||||||||
Series A Preferred Unit Purchase Agreement [Member] | Weston Energy LLC [Member] | |||||||||||
Number of common unit shares issued during the period | shares | 1,300,000 | ||||||||||
Number of common unit issued during the period, value | $ 11,000 | ||||||||||
Price per unit | $ / shares | $ 10 | ||||||||||
Series A Preferred Unit Purchase Agreement [Member] | Royal Energy Resources Inc. [Member] | |||||||||||
Number of common unit shares issued during the period | shares | 200,000 | ||||||||||
Number of common unit issued during the period, value | $ 2,000 | ||||||||||
Letter Agreement [Member] | Rhino Note Weston Promissory Note [Member] | |||||||||||
Promissory note face value | $ 4,000 | ||||||||||
Weighted average closing price | 75.00% | ||||||||||
Fourth Amended and Restated Agreement [Member] | |||||||||||
Units of partnership interest, description | (i) 50% of the CAM Mining free cash flow (as defined below) and (ii) an amount equal to the number of outstanding Series A preferred units multiplied by $0.80. CAM Mining free cash flow is defined in the Amended and Restated Partnership Agreement as (i) the total revenue of the Partnerships Central Appalachia business segment, minus (ii) the cost of operations (exclusive of depreciation, depletion and amortization) for the Partnerships Central Appalachia business segment, minus (iii) an amount equal to $6.50, multiplied by the aggregate number of met coal and steam coal tons sold by the Partnership from its Central Appalachia business segment. | ||||||||||
Indebtedness | $ 50,000 | ||||||||||
Fourth Amended and Restated Agreement [Member] | Series A Preferred Units [Member] | |||||||||||
Weighted average closing price | 75.00% | ||||||||||
Unpaid distribution | $ / shares | $ 10 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies and General (Details Narrative) - USD ($) $ in Thousands | Dec. 27, 2017 | Jun. 30, 2017 | Oct. 31, 2016 | Sep. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 |
Letter of credit facility description | Partnership entered into a letter of credit facility with PNC Bank, National Association under which the letter of credit facility will be secured by a first lien security interest on a cash collateral account that is required to contain no less than 105% of the face value of the outstanding letters of credit. | |||||
Inflation rate recosting adjustments | 2.30% | 2.30% | ||||
Operating income (loss) | $ (16,732) | $ (8,562) | ||||
Sturgeon Acquisitions LLC [Member] | ||||||
Payments to acquire interest in joint venture | $ 5,000 | |||||
Mammoth Energy Services, Inc. [Member] | ||||||
Number of limited partner interest exchange for shares of common stock | 234,300 | |||||
Fair market value adjustment of available for sale investment | 2,600 | 1,600 | ||||
Sturgeon Acquisitions LLC [Member] | ||||||
Operating income (loss) | $ 36 | $ (200) | ||||
Mammoth Inc [Member] | Contribution Agreement [Member] | ||||||
Number of limited partner interest exchange for shares of common stock | 336,447 | |||||
Number of shares owned | 568,794 | |||||
Minimum [Member] | ||||||
Asset retirement obligations discount rate percentage | 9.70% | 7.00% | ||||
Maximum [Member] | ||||||
Asset retirement obligations discount rate percentage | 11.90% | 9.10% | ||||
Restricted Cash [Member] | ||||||
Collateral account | $ 12,300 |
Discontinued Operations (Detail
Discontinued Operations (Details Narrative) - USD ($) $ in Thousands | Nov. 07, 2017 | Aug. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on extinguishment of debt | $ 1,663 | |||
Loss on business disposal | 3,238 | (119,932) | ||
Sands Hill Mining LLC [Member] | Third Party [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transfer of membership interests percentage | 100.00% | |||
Gain on sale of discontinued operations | $ 3,200 | |||
Elk Horn [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash consideration payable | 1,500 | |||
Cash consideration paid monthly installment | $ 150 | |||
Loss on business disposal | 119,900 | |||
Deferred revenue | $ 1,300 | |||
Elk Horn [Member] | Third Party [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash consideration | $ 12,000 | |||
Cash consideration upon the closing transaction paid | 10,500 | |||
Cash consideration payable | 1,500 | |||
Cash consideration paid monthly installment | $ 150 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Assets and Liabilities and Major Components of Net (Loss) Income from Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets of the disposal group classified as held for sale in the statement of financial position | $ 1,098 | |
Total non-current assets of the disposal group classified as held for sale in the statement of financial position | 1,141 | |
Total current liabilities of the disposal group classified as held for sale in the statement of financial position | 397 | |
Total non-current liabilities of the disposal group classified as held for sale in the statement of financial position | 4,135 | |
Sands Hill Mining LLC [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | ||
Accounts receivable, net of allowance for doubtful accounts | 961 | |
Inventories | 72 | |
Prepaid expenses and other | 65 | |
Total current assets of the disposal group classified as held for sale in the statement of financial position | 1,098 | |
Property and equipment (net) | 1,141 | |
Total non-current assets of the disposal group classified as held for sale in the statement of financial position | 1,141 | |
Accounts payable | 241 | |
Accrued expenses and other | 156 | |
Total current liabilities of the disposal group classified as held for sale in the statement of financial position | 397 | |
Asset retirement obligations, net of current portion | 4,135 | |
Total non-current liabilities of the disposal group classified as held for sale in the statement of financial position | 4,135 | |
Coal sales | 1,280 | 7,570 |
Limestone sales | 3,483 | 5,344 |
Other revenue | 1,503 | 2,436 |
Total revenues | 6,266 | 15,350 |
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) | 6,316 | 10,602 |
Freight and handling | 771 | 1,731 |
Depreciation, depletion and amortization | 493 | 1,230 |
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) | 92 | 52 |
Gain (Loss) on sale/disposal of assets, net | (3,238) | (5) |
(Gain) on extinguishment of debt | (1,663) | |
Interest income | (8) | |
Interest expense and other | 161 | |
Total costs, expenses and other | 4,434 | 12,100 |
Income (Loss) from discontinued operations before income taxes | 1,832 | 3,250 |
Income taxes | ||
Net loss from discontinued operations | 1,832 | 3,250 |
Elk Horn [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Royalty income | 2,668 | |
Total revenues | 2,668 | |
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) | 799 | |
Depreciation, depletion and amortization | 413 | |
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) | 174 | |
Gain (Loss) on sale/disposal of assets, net | 119,982 | |
Interest expense and other | 13 | |
Total costs, expenses and other | 121,381 | |
Income (Loss) from discontinued operations before income taxes | (118,713) | |
Income taxes | ||
Net loss from discontinued operations | $ (118,713) |
Prepaid Expenses and Other Cu45
Prepaid Expenses and Other Current Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Note receivable | $ 900 | |
Elk Horn [Member] | ||
Note receivable | 900 | |
Cash consideration payable | 1,500 | |
Cash consideration paid monthly installment | $ 150 |
Prepaid Expenses and Other Cu46
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Other prepaid expenses | $ 920 | $ 642 |
Debt issuance costs-net | 1,239 | |
Prepaid insurance | 1,445 | 1,432 |
Prepaid leases | 92 | 77 |
Supply inventory | 434 | 614 |
Deposits | 164 | |
Note receivable-current portion | 900 | |
Total | $ 2,891 | $ 5,068 |
Property, Plant and Equipment47
Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands | Dec. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 |
Proceeds from the sale of property | $ 7,200 | ||
Property, plant and equipment, net | $ 177,323 | $ 181,166 | |
Other noncurrent liability | 48,071 | 45,372 | |
Asset impairments of loss/charges | 22,631 | 2,639 | |
Deane Mining Complex [Member] | |||
Asset impairments of loss/charges | 2,600 | ||
Noncash impairment charges | 2,600 | ||
Related to impairment of note receivable | 2,000 | ||
Asset impairment other | $ 600 | ||
Parcels of Land [Member] | |||
Asset impairments | 6,000 | ||
Asset impairments of carrying value | 6,800 | ||
Asset impairments of loss/charges | $ 800 | ||
Taylorville [Member] | |||
Property, plant and equipment, net | 4,600 | ||
Other noncurrent liability | $ 5,400 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment by Major Classification (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 440,843 | $ 430,560 |
Less accumulated depreciation, depletion and amortization | (263,520) | (249,394) |
Net | 177,323 | 181,166 |
Mining and Other Equipment and Related Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 298,293 | 290,253 |
Mining and Other Equipment and Related Facilities [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 2 years | |
Mining and Other Equipment and Related Facilities [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 20 years | |
Mine Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 58,566 | 57,392 |
Mine Development Costs [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Mine Development Costs [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 15 years | |
Coal Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 64,070 | 64,741 |
Coal Properties [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Coal Properties [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 15 years | |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 14,687 | 16,377 |
Construction Work in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 5,227 | $ 1,797 |
Property, Plant and Equipment49
Property, Plant and Equipment - Schedule of Depreciation, Depletion, and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | $ 21,117 | $ 22,556 |
Mining and Other Equipment and Related Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | 16,151 | 19,773 |
Coal Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | 1,693 | 1,220 |
Mine Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | 2,987 | 1,901 |
Asset Retirement Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | $ 286 | $ (338) |
Intangible and Other Non-curr50
Intangible and Other Non-current Assets (Details Narrative) - USD ($) $ in Thousands | Dec. 27, 2017 | Oct. 31, 2017 | Dec. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||||
Non-current receivable | $ 27,806 | $ 27,157 | |||
Asset impairments of loss/charges | 22,631 | $ 2,639 | |||
Letter of credit facility description | Partnership entered into a letter of credit facility with PNC Bank, National Association under which the letter of credit facility will be secured by a first lien security interest on a cash collateral account that is required to contain no less than 105% of the face value of the outstanding letters of credit. | ||||
Restricted Cash [Member] | |||||
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||||
Collateral account | 12,300 | ||||
Armstrong Energy [Member] | |||||
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||||
Value of common unit issued during the period | $ 21,800 | ||||
Option Agreement [Member] | |||||
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||||
Asset impairments of loss/charges | $ 21,800 | ||||
Option Agreement [Member] | Call Option [Member] | |||||
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||||
Number of common unit shares issued during the period | 5,000,000 | ||||
Value of common unit issued during the period | $ 21,800 | ||||
Asset impairments of loss/charges | 21,800 | ||||
Partnerships workers [Member] | |||||
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||||
Non-current receivable | 27,800 | 27,200 | |||
Workers' compensation liability, noncurrent | 27,800 | $ 27,200 | |||
Partnerships workers [Member] | Restricted Cash [Member] | |||||
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||||
Collateral account | $ 5,200 |
Intangible and Other Non-curr51
Intangible and Other Non-current Assets - Schedule of Other Non-current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible And Other Non-current Assets | ||
Deposits and other | $ 423 | $ 218 |
Due (to) Rhino GP | (61) | (573) |
Non-current receivable | 27,806 | 27,157 |
Deferred expenses | 340 | 216 |
Total | $ 28,508 | $ 27,018 |
Accrued Expenses and Other Cu52
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Payroll, bonus and vacation expense | $ 2,633 | $ 1,432 |
Non-income taxes | 2,738 | 2,211 |
Royalty expenses | 2,410 | 1,612 |
Accrued interest | 132 | 594 |
Health claims | 871 | 630 |
Workers’ compensation & pneumoconiosis | 1,750 | 2,450 |
Other | 652 | 1,012 |
Total | $ 11,186 | $ 9,941 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Dec. 27, 2017 | Jul. 07, 2016 | Jul. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | |||||
Letter of credit facility description | Partnership entered into a letter of credit facility with PNC Bank, National Association under which the letter of credit facility will be secured by a first lien security interest on a cash collateral account that is required to contain no less than 105% of the face value of the outstanding letters of credit. | ||||
Agreement expiration date | Dec. 31, 2018 | ||||
Letter of credit amount | $ 11,200 | ||||
Gain from extinguishment of debt | $ 1,663 | ||||
Common Unit Warrants [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Number of warrant issuance shares | 683,888 | ||||
Warrant exercise price per share | $ 1.95 | ||||
Warrant expiration term | 5 years | ||||
Base Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument bear interest percentage | 2.00% | ||||
Third Party [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Other notes payable | $ 2,800 | ||||
Settlement of debt on cash consideration | $ 1,100 | ||||
Repayment of debt | $ 1,100 | ||||
Gain from extinguishment of debt | $ 1,700 | ||||
Financing Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument principal amount | $ 40,000 | ||||
Debt instruments interest terms | Loans made pursuant to the Financing Agreement will, at Rhino Energys option, either be Reference Rate Loans or LIBOR Rate Loans. Reference Rate Loans bear interest at the greatest of (a) 4.25% per annum, (b) the Federal Funds Rate plus 0.50% per annum, (c) the LIBOR Rate (calculated on a one-month basis) plus 1.00% per annum or (d) the Prime Rate (as published in the Wall Street Journal) or if no such rate is published, the interest rate published by the Federal Reserve Board as the bank prime loan rate or similar rate quoted therein, in each case, plus an applicable margin of 9.00% per annum (or 12.00% per annum if Rhino Energy has elected to capitalize an interest payment pursuant to the PIK Option, as described below). LIBOR Rate Loans bear interest at the greater of (x) the LIBOR for such interest period divided by 100% minus the maximum percentage prescribed by the Federal Reserve for determining the reserve requirements in effect with respect to eurocurrency liabilities for any Lender, if any, and (y) 1.00%, in each case, plus 10.00% per annum (or 13.00% per annum if the Borrowers have elected to capitalize an interest payment pursuant to the PIK Option). Interest payments are due on a monthly basis for Reference Rate Loans and one-, two- or three-month periods, at Rhino Energys option, for LIBOR Rate Loans. If there is no event of default occurring or continuing, Rhino Energy may elect to defer payment on interest accruing at 6.00% per annum by capitalizing and adding such interest payment to the principal amount of the applicable term loan (the PIK Option). | ||||
Debt covenant description | Fixed Charge Coverage Ratio of the Partnership and its subsidiaries to be less than 1.20 to 1.00 | ||||
Short term variable interest rate | 11.68% | ||||
Financing Agreement [Member] | Common Unit Warrants [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Proceeds from warrant | $ 40,000 | ||||
Fair value of warrants | $ 1,300 | ||||
Financing Agreement [Member] | Libor Plus [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Short term variable interest rate | 10.00% | ||||
Financing Agreement [Member] | December 31, 2018 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt due date | Dec. 27, 2020 | ||||
Loans payable | $ 375 | ||||
Debt instrument description | (i) the payment of 25% of Excess Cash Flow (as that term is defined in the Financing Agreement) of the Partnership and its subsidiaries for each fiscal year, commencing with respect to the year ending December 31, 2019, (ii) subject to certain exceptions, the payment of 100% of the net cash proceeds from the dispositions of certain assets, the incurrence of certain indebtedness or receipts of cash outside of the ordinary course of business, and (iii) the payment of the excess of the outstanding principal amount of term loans outstanding over the amount of the Collateral Coverage Amount (as that term is defined in the Financing Agreement). In addition, the Lenders are entitled to certain fees, including 1.50% per annum of the unused Delayed Draw Term Loan Commitment for as long as such commitment exists, (ii) for the 12-month period following the execution of the Financing Agreement, a make-whole amount equal to the interest and unused Delayed Draw Term Loan Commitment fees that would have been payable but for the occurrence of certain events, including among others, bankruptcy proceedings or the termination of the Financing Agreement by Rhino Energy, and (iii) audit and collateral monitoring fees and origination and exit fees | ||||
Financing Agreement [Member] | Effective Date Term Loan Commitment [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument principal amount | $ 40,000 | ||||
Financing Agreement [Member] | Delayed Draw Term Loan Commitment [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument principal amount | 40,000 | ||||
Financing Agreement [Member] | Cortland Capital Market Services LLC [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument principal amount | $ 80,000 | ||||
Debt due date | Dec. 27, 2020 | ||||
Financing Agreement [Member] | Mammoth Energy Services, Inc. [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Proceed from sale of shares | $ 5,000 | ||||
Letter of Credit Facility Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Percentage of quarterly fee description | 5.00% | ||||
Commitment Fee Amount | $ 100 | ||||
Letter of credit amount | $ 11,200 | ||||
Letter of credit interest rate | 5.00% |
Debt - Schedule Of Debt (Detail
Debt - Schedule Of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Note payable -Financing Agreement | $ 40,000 | |
Net unamortized debt issuance costs | (4,688) | |
Net unamortized common unit warrants | (1,264) | |
Senior secured credit facility with PNC Bank, N.A. | 10,040 | |
Total | 34,048 | 10,040 |
Less current portion | (5,475) | (10,040) |
Long-term debt | $ 28,573 |
Debt - Schedule of Principal Pa
Debt - Schedule of Principal Payments on Long-term Debt (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 5,475 |
2,019 | 1,500 |
2,020 | 33,025 |
2,021 | |
Thereafter | |
Total principal payments | $ 40,000 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Asset Retirement Obligation Disclosure [Abstract] | |||
Balance at beginning of period (including current portion) | $ 19,108 | $ 23,077 | |
Accretion expense | 1,493 | 1,512 | |
Adjustment resulting from disposal of property | [1] | (223) | (4,170) |
Adjustments to the liability from annual recosting and other | (1,656) | (1,085) | |
Liabilities settled | (60) | (200) | |
Balance at end of period | 18,662 | 19,108 | |
Less current portion of asset retirement obligation | (498) | (883) | |
Long-term portion of asset retirement obligation | $ 18,164 | $ 18,225 | |
[1] | The ($0.2) million and the ($4.2) million adjustments for the years ended December 31, 2017 and 2016, respectively, relate to the sale of the Partnership’s Sands Hill Mining entity as discussed in Note 4. |
Asset Retirement Obligations 57
Asset Retirement Obligations - Schedule of Asset Retirement Obligations (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Adjustment from sale of property | [1] | $ (223) | $ (4,170) |
Sands Hill Mining LLC [Member] | |||
Adjustment from sale of property | $ (223) | $ (4,170) | |
[1] | The ($0.2) million and the ($4.2) million adjustments for the years ended December 31, 2017 and 2016, respectively, relate to the sale of the Partnership’s Sands Hill Mining entity as discussed in Note 4. |
Workers' Compensation and Black
Workers' Compensation and Black Lung (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Black Lung [Member] | ||
Discount rate | 3.50% | 4.00% |
Workers' compensation claims | $ 27,800 | $ 27,200 |
Workers' Compensation [Member] | ||
Discount rate | 3.00% | 2.00% |
Workers' compensation claims | $ 27,800 | $ 27,200 |
Workers' Compensation and Bla59
Workers' Compensation and Black Lung - Summary of Black Lung and Workers' Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Service cost | ||
Interest cost | ||
Actuarial loss/(gain) | (4,795) | |
Black Lung Benefits [Member] | ||
Service cost | 1,771 | (506) |
Interest cost | 344 | 363 |
Actuarial loss/(gain) | 924 | |
Total expense | 3,039 | (143) |
Workers' Compensation [Member] | ||
Total expense | 3,231 | 4,013 |
Workers' Compensation and Black Lung Benefits [Member] | ||
Total expense | $ 6,270 | $ 3,870 |
Workers' Compensation and Bla60
Workers' Compensation and Black Lung - Schedule of Changes in Benefit Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Benefit obligations at beginning of year | $ 45 | |
Service cost | ||
Interest cost | ||
Actuarial loss/(gain) | (4,795) | |
Benefits and expenses paid | (45) | |
Benefit obligations at end of year | ||
Black Lung Benefits [Member] | ||
Benefit obligations at beginning of year | 8,782 | 9,225 |
Service cost | 1,771 | (506) |
Interest cost | 344 | 363 |
Actuarial loss/(gain) | 924 | |
Benefits and expenses paid | (375) | (300) |
Benefit obligations at end of year | $ 11,446 | $ 8,782 |
Workers' Compensation and Bla61
Workers' Compensation and Black Lung - Classification of Net Amounts Recognized for Workers' Compensation and Black Lung Benefits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Uninsured Black Lung Claims [Member] | ||
Total obligations | $ 11,446 | $ 8,782 |
Insured Black Lung and Workers' Compensation Claims [Member] | ||
Total obligations | 27,806 | 27,157 |
Workers' Compensation Claims [Member] | ||
Total obligations | 5,216 | 5,584 |
Workers' Compensation and Black Lung Benefits [Member] | ||
Total obligations | 44,468 | 41,523 |
Less current portion | (1,750) | (2,450) |
Non-current obligations | $ 42,718 | $ 39,073 |
Employee Benefits (Details Narr
Employee Benefits (Details Narrative) - USD ($) $ in Thousands | Dec. 10, 2015 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Retirement Benefits [Abstract] | |||||
Prior service cost benefit | $ 6,500 | $ (3,876) | |||
Benefit recognized | $ 3,900 | 3,876 | $ 2,600 | ||
Accumulated other comprehensive income change in actuarial gain on post retirement plan | $ (4,795) |
Employee Benefits - Summary of
Employee Benefits - Summary of Changes in Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | ||
Benefit obligations at beginning of year | $ 45 | |
Service cost | ||
Interest cost | ||
Benefits paid | (45) | |
Plan amendment | ||
Actuarial loss/(gain) | (4,795) | |
Benefit obligations at end of year | ||
Fair value of plan assets at end of year | ||
Funded status |
Employee Benefits - Classificat
Employee Benefits - Classification of Net Amounts Recognized for Postretirement Benefits (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | ||
Current liability-postretirement benefits | ||
Non-current liability-postretirement benefits | ||
Net amount recognized |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | ||||
Balance at beginning of year | $ 4,795 | $ 4,795 | ||
Actuarial (loss)/gain | ||||
Prior service (cost)/gain to be amortized | $ (3,900) | (3,876) | $ (2,600) | |
Amortization of net actuarial gain | (919) | |||
Net actuarial gain | $ 4,795 |
Employee Benefits - Schedule 66
Employee Benefits - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | ||
Discount rate | ||
Expected return on plan assets |
Employee Benefits - Schedule 67
Employee Benefits - Schedule of Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | ||
Discount rate | ||
Expected return on plan assets | ||
Rate of compensation increase |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | Dec. 10, 2015 | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | |||
Service costs | |||
Interest cost | |||
Amortization of prior service cost | $ 6,500 | (3,876) | |
Amortization of (gain) | (919) | ||
Actuarial gain | $ (4,795) |
Employee Benefits - Schedule 69
Employee Benefits - Schedule of Expense Under Defined Contribution Savings Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | ||
401(k) plan expense | $ 1,453 | $ 1,381 |
Equity-Based Compensation_Par70
Equity-Based Compensation/Partners' Capital (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Sep. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of the awards that vested | $ 500 | ||
Weston Promissory Note [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion of debt | $ 2,100 | ||
Rhino Promissory Note [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion of debt | 2,000 | ||
Rhino and Weston Promissory Note [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion of debt | $ 4,100 | $ 4,100 | |
Common stock issued for conversion | 914,797 | ||
Debt conversion price per share | $ 4.51 | ||
LTIP Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation expense | $ 400 |
Commitments and Contingencies71
Commitments and Contingencies (Details Narrative) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies [Line Items] | |
Letter of credit, outstanding | $ 11,200 |
Surety Bonds With Third Parties [Member] | |
Commitments And Contingencies [Line Items] | |
Letter of credit, outstanding | $ 37,500 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Delivery Commitments (Details) | 12 Months Ended |
Dec. 31, 2017NumberT | |
Commitments and Contingencies Disclosure [Abstract] | |
Tons, 2018 | T | 3,585,000 |
Tons, 2019 | T | 850,000 |
Tons, 2020 | T | 850,000 |
Number of customers, 2018 | Number | 15 |
Number of customers, 2019 | Number | 3 |
Number of customers, 2020 | Number | 3 |
Commitments and Contingencies73
Commitments and Contingencies - Schedule of Purchase Coal Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchased coal expense | $ 377 | |
OTC expense |
Commitments and Contingencies74
Commitments and Contingencies - Schedule of Lease and Royalty Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease expense | $ 3,752 | $ 4,901 |
Royalty expense | $ 14,274 | $ 9,801 |
Commitments and Contingencies75
Commitments and Contingencies - Schedule of Future Minimum Lease and Royalty Payments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Royalties, 2018 | $ 1,492 |
Royalties, 2019 | 1,492 |
Royalties, 2020 | 1,555 |
Royalties, 2021 | 1,555 |
Royalties, 2022 | 1,555 |
Royalties, Thereafter | 7,777 |
Total minimum royalty payments | 15,426 |
Leases, 2018 | 254 |
Leases, 2019 | |
Leases, 2020 | |
Leases, 2021 | |
Leases, 2022 | |
Leases, Thereafter | |
Total minimum lease payments | $ 254 |
Earnings Per Unit ('EPU') (Deta
Earnings Per Unit ('EPU') (Details Narrative) | 12 Months Ended |
Dec. 31, 2017shares | |
Earnings Per Unit [Abstract] | |
Potential antidilutive common units warrants | 683,888 |
Earnings Per Unit ('EPU') - Sch
Earnings Per Unit ('EPU') - Schedule of Calculation of Numerator and Denominator in Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Unit [Line Items] | ||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ (20,620) | $ (15,300) |
Interest in net (loss)/income: Net income from discontinued operations | 1,832 | (115,463) |
Interest in net (loss)/income, total | (18,788) | (130,763) |
General Partner [Member] | ||
Earnings Per Unit [Line Items] | ||
Interest in net (loss)/income: Net (loss)/income from continuing operations | (112) | (128) |
Interest in net (loss)/income: Net income from discontinued operations | 8 | (734) |
Interest in net (loss)/income, total | $ (104) | $ (862) |
Weighted average units used to compute basic EPU | ||
Effect of dilutive securities - LTIP awards | ||
Weighted average units used to compute diluted EPU | ||
Net (loss)/income per unit from continuing operations | ||
Net(loss/income) per unit from discontinued operations | ||
Net (loss)/income per limited partner unit, basic | ||
Net (loss)/income per unit from continuing operations | ||
Net (loss)/income per unit from discontinued operations | ||
Net (loss)/income per limited partner unit, diluted | ||
Common Unitholders [Member] | ||
Earnings Per Unit [Line Items] | ||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ (24,391) | $ (12,755) |
Interest in net (loss)/income: Net income from discontinued operations | 1,676 | (96,451) |
Interest in net (loss)/income, total | $ (22,715) | $ (109,206) |
Weighted average units used to compute basic EPU | 12,965,000 | 6,520,000 |
Effect of dilutive securities - LTIP awards | ||
Weighted average units used to compute diluted EPU | 12,965,000 | 6,520,000 |
Net (loss)/income per unit from continuing operations | $ (1.88) | $ (1.96) |
Net(loss/income) per unit from discontinued operations | 0.13 | (14.79) |
Net (loss)/income per limited partner unit, basic | (1.75) | (16.75) |
Net (loss)/income per unit from continuing operations | (1.88) | (1.96) |
Net (loss)/income per unit from discontinued operations | 0.13 | (14.79) |
Net (loss)/income per limited partner unit, diluted | $ (1.75) | $ (16.75) |
Subordinated Unitholders [Member] | ||
Earnings Per Unit [Line Items] | ||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ (2,155) | $ (2,417) |
Interest in net (loss)/income: Net income from discontinued operations | 148 | (18,278) |
Interest in net (loss)/income, total | $ (2,007) | $ (20,695) |
Weighted average units used to compute basic EPU | 1,146,000 | 1,236,000 |
Weighted average units used to compute diluted EPU | 1,146,000 | 1,236,000 |
Net (loss)/income per unit from continuing operations | $ (1.88) | $ (1.96) |
Net(loss/income) per unit from discontinued operations | 0.13 | (14.79) |
Net (loss)/income per limited partner unit, basic | (1.75) | (16.75) |
Net (loss)/income per unit from continuing operations | (1.88) | (1.96) |
Net (loss)/income per unit from discontinued operations | 0.13 | (14.79) |
Net (loss)/income per limited partner unit, diluted | $ (1.75) | $ (16.75) |
Preferred Unitholders [Member] | ||
Earnings Per Unit [Line Items] | ||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ 6,038 | |
Interest in net (loss)/income: Net income from discontinued operations | ||
Interest in net (loss)/income, total | $ 6,038 | |
Weighted average units used to compute basic EPU | 1,500,000 | |
Weighted average units used to compute diluted EPU | 1,500,000 | |
Net (loss)/income per unit from continuing operations | $ 4.03 | |
Net(loss/income) per unit from discontinued operations | ||
Net (loss)/income per limited partner unit, basic | 4.03 | |
Net (loss)/income per unit from continuing operations | 4.03 | |
Net (loss)/income per unit from discontinued operations | ||
Net (loss)/income per limited partner unit, diluted | $ 4.03 |
Major Customers - Summary of Ma
Major Customers - Summary of Major Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | ||
Receivable balance | $ 20,386 | $ 12,932 |
LGE/KU [Member] | ||
Revenue, Major Customer [Line Items] | ||
Receivable balance | 1,483 | 1,496 |
Sales | 40,217 | 42,175 |
Integrity Coal [Member] | ||
Revenue, Major Customer [Line Items] | ||
Receivable balance | 2,238 | 1,975 |
Sales | 24,234 | 7,740 |
Dominion Energy [Member] | ||
Revenue, Major Customer [Line Items] | ||
Receivable balance | 1,232 | |
Sales | 22,087 | 6,976 |
Big Rivers [Member] | ||
Revenue, Major Customer [Line Items] | ||
Receivable balance | ||
Sales | 21,716 | 16,241 |
PacifiCorp Energy [Member] | ||
Revenue, Major Customer [Line Items] | ||
Receivable balance | 1,717 | 1,509 |
Sales | $ 16,518 | $ 19,581 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Oct. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset impairments of loss/charges | $ 22,631 | $ 2,639 | ||
Parcels of Land [Member] | ||||
Asset impairment gross | 6,000 | |||
Asset impairment carrying value | 6,800 | |||
Asset impairments of loss/charges | $ 800 | |||
Initial Public Offering [Member] | ||||
Number of shares sold | 1,953 | |||
Proceeds from sale of stock | $ 27 | |||
Mammoth Energy Services, Inc. [Member] | ||||
Exchange shares of common stock | 234,300 | |||
Sturgeon to Mammoth Inc [Member] | ||||
Exchange shares of common stock | 336,447 | |||
Number of shares owned | 568,794 |
Related Party and Affiliate T80
Related Party and Affiliate Transactions - Schedule of Related Party and Affiliate Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party One [Member] | ||
Related party description | Royal Energy Resources, Inc. | Royal Energy Resources, Inc. |
Related Party and Affiliate Transactions description | Partner's contribution | Partner's contribution |
Related party amount | $ 7,000 | |
Related Party Two [Member] | ||
Related party description | Royal Energy Resources, Inc. | Royal Energy Resources, Inc. |
Related Party and Affiliate Transactions description | Purchase of preferred units | Purchase of preferred units |
Related party amount | $ 2,000 | |
Related Party Three [Member] | ||
Related party description | Royal Energy Resources, Inc. | Royal Energy Resources, Inc. |
Related Party and Affiliate Transactions description | Note receivable conversion | Note receivable conversion |
Related party amount | $ 4,100 | |
Related Party Four [Member] | ||
Related party description | Royal Energy Resources, Inc. | Royal Energy Resources, Inc. |
Related Party and Affiliate Transactions description | Commissions and other fees | Commissions and other fees |
Related party amount | $ 819 | |
Related Party Five [Member] | ||
Related party description | Weston Energy LLC | Weston Energy LLC |
Related Party and Affiliate Transactions description | Purchase of preferred units | Purchase of preferred units |
Related party amount | $ 11,000 | |
Related Party Six [Member] | ||
Related party description | Wexford Capital LP | Wexford Capital LP |
Related Party and Affiliate Transactions description | Expenses for legal, consulting, and advisory services | Expenses for legal, consulting, and advisory services |
Related party amount | $ 11 | |
Related Party Seven [Member] | ||
Related party description | Mammoth Energy Partners LP | Mammoth Energy Partners LP |
Related Party and Affiliate Transactions description | Investment in unconsolidated affiliate | Investment in unconsolidated affiliate |
Related party amount | $ 40 | |
Related Party Eight [Member] | ||
Related party description | Sturgeon Acquisitions LLC | Sturgeon Acquisitions LLC |
Related Party and Affiliate Transactions description | Distributions from unconsolidated affiliate | Distributions from unconsolidated affiliate |
Related party amount | $ 300 | |
Related Party Nine [Member] | ||
Related party description | Sturgeon Acquisitions LLC | Sturgeon Acquisitions LLC |
Related Party and Affiliate Transactions description | Equity in net income of unconsolidated affiliate | Equity in net income of unconsolidated affiliate |
Related party amount | $ (4) | $ (223) |
Related Party Ten [Member] | ||
Related party description | Yorktown Partners LLC | Yorktown Partners LLC |
Related Party and Affiliate Transactions description | Preferred distribution accrual | Preferred distribution accrual |
Related party amount | $ 6,038 |
Supplemental Disclosures of C81
Supplemental Disclosures of Cash Flow Information (Details Narrative) - USD ($) $ in Thousands | Sep. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Significant Noncash Transactions [Line Items] | |||
Interest paid | $ 2,500 | $ 3,800 | |
Additions to property, plant, and equipment | (20,078) | (7,582) | |
Rhino and Weston Promissory Note [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Debt conversion shares issued, value | $ 4,100 | 4,100 | |
Accounts Payable [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Additions to property, plant, and equipment | $ 1,000 | $ 1,100 |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended |
Dec. 31, 2017Segments | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 4 |
Segment Information - Schedule
Segment Information - Schedule of Reportable Segment Results of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Total assets | $ 282,780 | $ 277,441 | |
Total revenues | 218,691 | 155,431 | |
DD&A | 21,117 | 22,556 | |
Interest expense | 4,010 | 6,535 | |
Net Income (loss) from continuing operations | (20,620) | (15,300) | |
Previously Reported [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Income (loss) from continuing operations | [1] | (15,300) | |
Central Appalachia [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 99,425 | 89,918 | |
Total revenues | 101,992 | 37,753 | |
DD&A | 7,701 | 6,553 | |
Interest expense | 2 | ||
Net Income (loss) from continuing operations | 13,717 | (4,104) | |
Central Appalachia [Member] | Previously Reported [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Income (loss) from continuing operations | [1] | (10,615) | |
Northern Appalachia [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 9,054 | 9,758 | |
Total revenues | 17,145 | 23,485 | |
DD&A | 988 | 1,912 | |
Interest expense | |||
Net Income (loss) from continuing operations | (3,109) | 7,723 | |
Northern Appalachia [Member] | Previously Reported [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Income (loss) from continuing operations | [1] | 5,541 | |
Rhino Western [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 33,863 | 33,205 | |
Total revenues | 35,458 | 34,675 | |
DD&A | 4,479 | 5,211 | |
Interest expense | |||
Net Income (loss) from continuing operations | 1,676 | 1,425 | |
Rhino Western [Member] | Previously Reported [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Income (loss) from continuing operations | [1] | (1,042) | |
Illinois Basin [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 77,546 | 80,218 | |
Total revenues | 64,055 | 59,095 | |
DD&A | 7,576 | 8,326 | |
Interest expense | 4 | ||
Net Income (loss) from continuing operations | 1,734 | (605) | |
Illinois Basin [Member] | Previously Reported [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Income (loss) from continuing operations | [1] | (5,524) | |
Segment Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 62,892 | 64,342 | |
Total revenues | 41 | 423 | |
DD&A | 373 | 554 | |
Interest expense | 4,010 | 6,529 | |
Net Income (loss) from continuing operations | $ (34,638) | (19,739) | |
Segment Other [Member] | Previously Reported [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Income (loss) from continuing operations | [1] | $ (3,660) | |
[1] | Per 2016 original filing adjusted for discontinued operations. Difference from 2016 original Form 10-K filing due to change in methodology for allocating debt interest expense and corporate selling, general and administrative expense to its reportable segments where interest expense and corporate selling, general and administrative expense are no longer allocated to the reportable segments and are reported in the Other category. |
Segment Information - Schedul84
Segment Information - Schedule of Revenue by Product Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Total revenue | $ 218,691 | $ 155,431 |
Met coal revenue [Member] | ||
Total revenue | 64,033 | 21,542 |
Steam coal revenue [Member] | ||
Total revenue | 153,159 | 131,729 |
Other revenue [Member] | ||
Total revenue | $ 1,499 | $ 2,160 |