Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Entity Registrant Name | Rhino Resource Partners LP | |
Entity Central Index Key | 1,490,630 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | RHNO | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 | |
Common Units [Member] | ||
Entity Common Stock, Shares Outstanding | 12,993,869 | |
Subordinated Units [Member] | ||
Entity Common Stock, Shares Outstanding | 1,145,743 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,991 | $ 8,796 |
Restricted cash | 3,728 | 7,116 |
Accounts receivable | 17,117 | 20,386 |
Inventories | 12,753 | 12,860 |
Advance royalties, current portion | 286 | 495 |
Investment in available for sale securities | 10,786 | 11,165 |
Prepaid expenses and other | 2,485 | 2,891 |
Total current assets | 52,146 | 63,709 |
PROPERTY, PLANT AND EQUIPMENT: | ||
At cost, including coal properties, mine development and construction costs | 450,424 | 440,843 |
Less accumulated depreciation, depletion and amortization | (267,522) | (263,520) |
Net property, plant and equipment | 182,902 | 177,323 |
Advance royalties, net of current portion | 8,104 | 7,901 |
Deposit - Workers' Compensation Program | 5,209 | |
Investment in unconsolidated affiliates | 130 | 130 |
Restricted cash | 5,209 | |
Other non-current assets | 28,546 | 28,508 |
TOTAL | 277,037 | 282,780 |
CURRENT LIABILITIES: | ||
Accounts payable | 14,866 | 9,329 |
Accrued expenses and other | 11,516 | 11,186 |
Accrued preferred distributions | 300 | 6,038 |
Current portion of long-term debt | 4,169 | 5,475 |
Current portion of asset retirement obligations | 498 | 498 |
Total current liabilities | 31,349 | 32,526 |
NON-CURRENT LIABILITIES: | ||
Long-term debt, net | 25,223 | 28,573 |
Asset retirement obligations, net of current portion | 18,459 | 18,164 |
Other non-current liabilities | 48,143 | 48,071 |
Total non-current liabilities | 91,825 | 94,808 |
Total liabilities | 123,174 | 127,334 |
COMMITMENTS AND CONTINGENCIES (NOTE 13) | ||
PARTNERS' CAPITAL: | ||
Limited partners | 127,125 | 130,233 |
General partner | 8,842 | 8,855 |
Preferred partners | 15,000 | 15,000 |
Investment in Royal common stock (NOTE 11) | (4,126) | (4,126) |
Common unit warrants | 1,264 | 1,264 |
Accumulated other comprehensive income | 5,758 | 4,220 |
Total partners' capital | 153,863 | 155,446 |
TOTAL | $ 277,037 | $ 282,780 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES: | ||
Coal sales | $ 54,272 | $ 51,255 |
Other revenues | 528 | 289 |
Total revenues | 54,800 | 51,544 |
COSTS AND EXPENSES: | ||
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) | 49,653 | 43,237 |
Freight and handling costs | 904 | 595 |
Depreciation, depletion and amortization | 5,427 | 5,507 |
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) | 2,696 | 3,039 |
(Gain) on sale/disposal of assets, net | (2,937) | (34) |
Total costs and expenses | 55,743 | 52,344 |
(LOSS) FROM OPERATIONS | (943) | (800) |
INTEREST AND OTHER (EXPENSE)/INCOME: | ||
Interest expense and other | (1,885) | (1,155) |
Interest income and other | 7 | |
Equity in net income/(loss) of unconsolidated affiliates | (4) | |
Total interest and other (expense) | (1,878) | (1,159) |
(LOSS) BEFORE INCOME TAXES FROM CONTINUING OPERATIONS | (2,821) | (1,959) |
INCOME TAXES | ||
NET (LOSS) FROM CONTINUING OPERATIONS | (2,821) | (1,959) |
DISCONTINUED OPERATIONS | ||
Net (Loss) from discontinued operations | (70) | |
NET (LOSS) | (2,821) | (2,029) |
Other comprehensive income/(loss): | ||
Fair value adjustment for available-for-sale investment | 4,182 | 1,466 |
Reclass for disposition | (2,644) | |
Total other comprehensive income | 1,538 | 1,466 |
COMPREHENSIVE (LOSS) | (1,283) | (563) |
General Partners [Member] | ||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||
NET (LOSS) FROM CONTINUING OPERATIONS | (13) | (13) |
DISCONTINUED OPERATIONS | ||
Net (Loss) from discontinued operations | ||
NET (LOSS) | $ (13) | $ (13) |
Net (loss) per limited partner unit, basic: | ||
Net (loss) per unit from continuing operations | ||
Net (loss) per unit from discontinued operations | ||
Net (loss) per limited partner unit, diluted: | ||
Net (loss) per unit from continuing operations | ||
Net (loss) per unit from discontinued operations | ||
Weighted average number of limited partner units outstanding, basic: | ||
Weighted average number of limited partner units outstanding, basic | ||
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 | $ (2,856) | $ (2,795) |
DISCONTINUED OPERATIONS | ||
Net (Loss) from discontinued operations | (64) | |
NET (LOSS) | $ (2,856) | $ (2,859) |
Net (loss) per limited partner unit, basic: | ||
Net (loss) per unit from continuing operations | $ (0.22) | $ (0.22) |
Net (loss) per unit from discontinued operations | ||
Net (loss) per limited partner unit, basic | (0.22) | (0.22) |
Net (loss) per limited partner unit, diluted: | ||
Net (loss) per unit from continuing operations | (0.22) | (0.22) |
Net (loss) per unit from discontinued operations | ||
Net (loss) per limited partner unit, diluted | $ (0.22) | $ (0.22) |
Weighted average number of limited partner units outstanding, basic: | ||
Weighted average number of limited partner units outstanding, basic | 12,994,000 | 12,906,000 |
Weighted average number of limited partner units outstanding, basic: | ||
Weighted average number of limited partner units outstanding, basic | 12,994,000 | 12,906,000 |
Subordinated Unitholders [Member] | ||
INTEREST AND OTHER (EXPENSE)/INCOME: | ||
NET (LOSS) FROM CONTINUING OPERATIONS | $ (252) | $ (268) |
DISCONTINUED OPERATIONS | ||
Net (Loss) from discontinued operations | (6) | |
NET (LOSS) | $ (252) | $ (274) |
Net (loss) per limited partner unit, basic: | ||
Net (loss) per unit from continuing operations | $ (0.22) | $ (0.22) |
Net (loss) per unit from discontinued operations | ||
Net (loss) per limited partner unit, basic | (0.22) | (0.22) |
Net (loss) per limited partner unit, diluted: | ||
Net (loss) per unit from continuing operations | (0.22) | (0.22) |
Net (loss) per unit from discontinued operations | ||
Net (loss) per limited partner unit, diluted | $ (0.22) | $ (0.22) |
Weighted average number of limited partner units outstanding, basic: | ||
Weighted average number of limited partner units outstanding, basic | 1,146,000 | 1,236,000 |
Weighted average number of limited partner units outstanding, basic: | ||
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 | $ 300 | $ 1,117 |
DISCONTINUED OPERATIONS | ||
Net (Loss) from discontinued operations | ||
NET (LOSS) | $ 300 | $ 1,117 |
Net (loss) per limited partner unit, basic: | ||
Net (loss) per unit from continuing operations | $ 0.20 | $ 0.74 |
Net (loss) per unit from discontinued operations | ||
Net (loss) per limited partner unit, basic | 0.20 | 0.74 |
Net (loss) per limited partner unit, diluted: | ||
Net (loss) per unit from continuing operations | 0.20 | 0.74 |
Net (loss) per unit from discontinued operations | ||
Net (loss) per limited partner unit, diluted | $ 0.20 | $ 0.74 |
Weighted average number of limited partner units outstanding, basic: | ||
Weighted average number of limited partner units outstanding, basic | 1,500,000 | 1,500,000 |
Weighted average number of limited partner units outstanding, basic: | ||
Weighted average number of limited partner units outstanding, basic | 1,500,000 | 1,500,000 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net (loss) | $ (2,821) | $ (2,029) | ||||
Adjustments to reconcile net (loss) to net cash provided by operating activities: | ||||||
Depreciation, depletion and amortization | 5,427 | 5,698 | ||||
Accretion on asset retirement obligations | 315 | 474 | $ 1,493 | |||
Amortization of advance royalties | 185 | 251 | ||||
Amortization of debt issuance costs | 395 | 310 | ||||
Amortization of common unit warrants | 105 | |||||
Equity in net (income)/loss of unconsolidated affiliates | 4 | |||||
Loss on retirement of advance royalties | 108 | 136 | ||||
(Gain) on sale/disposal of assets-net | (31) | (36) | ||||
(Gain) on sale of Mammoth shares | (2,906) | |||||
Changes in assets and liabilities: | ||||||
Accounts receivable | 3,268 | (6,002) | ||||
Inventories | 107 | (878) | ||||
Advance royalties | (288) | (774) | ||||
Prepaid expenses and other assets | 369 | 175 | ||||
Accounts payable | 3,503 | 2,058 | ||||
Accrued expenses and other liabilities | 638 | 1,969 | ||||
Asset retirement obligations | (19) | (34) | ||||
Net cash provided by operating activities | 8,355 | 1,322 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Additions to property, plant, and equipment | (9,179) | (6,585) | ||||
Proceeds from sales of property, plant, and equipment | 3 | 2 | ||||
Proceeds from Elk Horn disposal | 450 | |||||
Proceeds from sale of Mammoth shares | 4,823 | |||||
Net cash (used in) investing activities | (4,353) | (6,133) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Borrowings on line of credit | 33,300 | |||||
Repayments on line of credit | (28,500) | |||||
Repayments on long-term debt | (5,100) | |||||
Deposit for workers' compensation program | (5,209) | |||||
Payments of debt issuance costs | (56) | |||||
Preferred distributions paid | (6,038) | |||||
Net cash used in/provided by financing activities | (16,403) | 4,800 | ||||
NET INCREASE/(DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (12,401) | (11) | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period | 21,120 | 47 | 47 | |||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period | 8,719 | 36 | 21,120 | |||
Summary Statement of Financial Position: | ||||||
Cash and cash equivalents | $ 4,991 | $ 8,796 | $ 36 | |||
Restricted cash | 3,728 | |||||
Total cash, cash equivalents and restricted cash | $ 8,719 | $ 36 | $ 21,120 | $ 8,719 | $ 21,120 | $ 36 |
Basis of Presentation and Organ
Basis of Presentation and Organization | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Organization | 1. BASIS OF PRESENTATION AND ORGANIZATION Basis of Presentation and Principles of Consolidation. Cash, Cash Equivalents and Restricted Cash. Statement of Cash Flows-Restricted Cash Unaudited Interim Financial Information. Reclassifications. Organization. Through a series of transactions completed in the first quarter of 2016, Royal Energy Resources, Inc. (“Royal”) acquired a majority ownership and control of the Partnership and 100% ownership of the Partnership’s general partner. The Partnership’s common units trade on the OTCQB Marketplace under the ticker symbol “RHNO.” The Partnership is exploring the possibility of listing its common units on the NASDAQ Stock Market (“NASDAQ”), pending its capability to meet the NASDAQ initial listing standards. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and General | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and General | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL Revenue Recognition. Freight and handling costs paid directly to third-party carriers and invoiced separately to coal customers are recorded as freight and handling costs and freight and handling revenues, respectively. Freight and handling costs billed to customers as part of the contractual per ton revenue of customer contracts is included in coal sales revenue. 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 collectability is reasonably assured. Advance payments received are deferred and recognized in revenue when earned. Investments in Unconsolidated Affiliates. Recently Issued Accounting Standards. Leases (Topic 842) 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 adopted this standard on its unaudited condensed 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.” 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
Discontinued Operations | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. DISCONTINUED OPERATIONS Sands Hill Mining LLC Major components of net loss from discontinued operations for Sands Hill Mining LLC for three months ended March 31, 2018 and 2017 are summarized as follows: Three Months Ended March 31, 2018 2017 (in thousands) Major line items constituting loss from discontinued operations for the Sands Hill Mining disposal: Coal sales $ - $ 526 Limestone sales - 1,078 Other revenue - 402 Total revenues - 2,006 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) - 1,702 Freight and handling - 174 Depreciation, depletion and amortization - 191 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) - 11 (Gain) on sale/disposal of assets, net - (2 ) Total costs, expenses and other - 2,076 (Loss) from discontinued operations before income taxes for the Sands Hill Mining disposal - (70 ) Income taxes - - Net (loss) from discontinued operations $ - $ (70 ) 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. Sands Hill Mining LLC did not have any material non-cash operating items or non-cash investing items for any period presented. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Other prepaid expenses $ 1,255 $ 920 Prepaid insurance 854 1,445 Prepaid leases 70 92 Supply inventory 306 434 Total $ 2,485 $ 2,891 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 5. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, including coal properties and mine development and construction costs, as of March 31, 2018 and December 31, 2017 are summarized by major classification as follows: Useful Lives March 31, 2018 December 31, 2017 (in thousands) Land and land improvements $ 14,456 $ 14,687 Mining and other equipment and related facilities 2 - 20 Years 304,463 298,293 Mine development costs 1 - 15 Years 59,159 58,566 Coal properties 1 - 15 Years 64,070 64,070 Construction work in process 8,276 5,227 Total 450,424 440,843 Less accumulated depreciation, depletion and amortization (267,522 ) (263,520 ) Net $ 182,902 $ 177,323 Depreciation expense for mining and other equipment and related facilities, depletion expense for coal properties, amortization expense for mine development costs and amortization expense for asset retirement costs for the three months ended March 31, 2018 and 2017 were as follows: Three Month Ended March 31, 2018 2017 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 4,087 $ 4,260 Depletion expense for coal properties 472 355 Amortization expense for mine development costs 749 757 Amortization expense for asset retirement costs 119 135 Total $ 5,427 $ 5,507 |
Other Non-Current Assets
Other Non-Current Assets | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | 6. OTHER NON-CURRENT ASSETS Other non-current assets as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Deposits and other $ 438 $ 423 Due (to) Rhino GP (30 ) (61 ) Non-current receivable 27,806 27,806 Deferred expenses 332 340 Total $ 28,546 $ 28,508 Non-current receivable Balance Sheet |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Payroll, bonus and vacation expense $ 1,820 $ 2,633 Non-income taxes 2,836 2,738 Royalty expenses 2,427 2,410 Accrued interest 129 132 Health claims 774 871 Workers’ compensation & pneumoconiosis 1,750 1,750 Deferred revenue 1,174 - Other 606 652 Total $ 11,516 $ 11,186 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 8. DEBT Debt as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Note payable -Financing Agreement $ 34,900 $ 40,000 Net unamortized debt issuance costs (4,349 ) (4,688 ) Original Issue Discount (1,159 ) (1,264 ) Total 29,392 34,048 Less current portion (4,169 ) (5,475 ) Long-term debt $ 25,223 $ 28,573 Financing Agreement On December 27, 2017, the Operating Company, a wholly-owned subsidiary of the Partnership, certain of the Operating Company’s subsidiaries identified as Borrowers (together with the Operating Company, the “Borrowers”), the Partnership and certain other Operating Company subsidiaries identified as Guarantors (together with the Partnership, the “Guarantors”), entered into a Financing Agreement (the “Financing Agreement”) with 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 the Lenders agreed to provide the 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 are, at the Operating Company’s option, either “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 the Operating Company 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 the Operating Company’s option, for LIBOR Rate Loans. If there is no event of default occurring or continuing, the Operating Company 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 (i) 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 the Operating Company, 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; (iii) the requirement to notify the Administrative Agent of certain events, including events of default under the Financing Agreement, dispositions, entry into material contracts, (iv) the requirement to maintain insurance, obtain permits, and comply with environmental and reclamation laws (v) 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, which was completed during the three months ended March 31, 2018 and (vi) 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; (iv) make capital expenditures in excess, or, with respect to maintenance capital expenditures, lower than, specified amounts, (v) incur restrictions on the payment of dividends, (vi) prepay or modify the terms of other indebtedness, (vii) permit the Collateral Coverage Amount to be less than the outstanding principal amount of the loans outstanding under the Financing Agreement or (viii) 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. The Partnership entered into a warrant agreement with certain parties that are also parties to the Financing Agreement discussed above. (See Note 11 for further discussion) At March 31, 2018, the Partnership had borrowed $34.9 million at a variable interest rate of Libor plus 10.00% (11.88% at March 31, 2018). 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 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 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 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 are 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 bears 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 $3.0 million at a fixed interest rate of 5.00% at March 31, 2018. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 9. ASSET RETIREMENT OBLIGATIONS The changes in asset retirement obligations for the three months ended March 31, 2018 and the year ended December 31, 2017 are as follows: Three months ended Year ended March 31, 2018 December 31, 2017 (in thousands) Balance at beginning of period (including current portion) $ 18,662 $ 19,108 Accretion expense 314 1,493 Adjustment resulting from disposal of property - (223 ) Adjustments to the liability from annual recosting and other - (1,656 ) Liabilities settled (19 ) (60 ) Balance at end of period 18,957 18,662 Less current portion of asset retirement obligation (498 ) (498 ) Long-term portion of asset retirement obligation $ 18,459 $ 18,164 |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 10. EMPLOYEE BENEFITS 401(k) Plans The Operating Company and certain subsidiaries sponsor defined contribution savings plans for all employees. Under one defined contribution savings plan, the Operating Company matches voluntary contributions of participants up to a maximum contribution based upon a percentage of a participant’s salary with an additional matching contribution possible at the Partnership’s discretion. The expense under these plans for the three months ended March 31, 2018 and 2017 is included in Cost of operations and Selling, general and administrative expense in the Partnership’s unaudited condensed consolidated statements of operations and comprehensive income and was as follows: Three months ended March 31, 2018 2017 (in thousands) 401(k) plan expense $ 436 $ 357 |
Partners' Capital
Partners' Capital | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Partners' Capital | 11. PARTNERS’ CAPITAL Common Unit Warrants In December 2017, 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 common 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 Partnership’s 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 the Partnership’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. Series A Preferred Units 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 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 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 is 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. During the three months ended March 31, 2018, the Partnership paid $6.0 million in distributions earned for the year ended December 31, 2017 to holders of the Series A preferred units. The Partnership also accrued $0.3 million for distributions to holders of the Series A preferred units for the three months ended March 31, 2018. Investment in Royal Common Stock On September 1, 2017, Royal elected to convert certain obligations to the Partnership totaling $4.1 million to shares of Royal common stock. Royal issued 914,797 shares of its common stock to the Partnership at a conversion price of $4.51 per share. The price per share was 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. The Partnership recorded the $4.1 million conversion as Investment in Royal common stock in the Partners’ Capital section of the Partnership’s unaudited condensed consolidated statements of financial position since Royal does not have significant economic activity apart from its investment in the Partnership. Other Comprehensive Income On January 19, 2018 the Partnership sold 232,347 shares of Mammoth Energy Services, Inc. (NASDAQ: TUSK) (“Mammoth Inc.”) for net cash consideration of $4.8 million. The proceeds were used to reduce the Partnership’s debt balance. The Partnership recorded a gain on the sale of $2.9 million and reduced Other Comprehensive income by $2.6 million as a result of the disposition. As of March 31, 2018 and December 31, 2017, the Partnership recorded fair market value adjustments of $4.2 million and $2.6 million, respectively, for its available-for-sale investment in Mammoth Inc. based on the market value of the shares at March 31, 2018 and December 31, 2017, respectively, which was recorded in Other Comprehensive Income. As of March 31, 2018 and December 31, 2017, 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. in its Other category for segment reporting purposes. As of March 31, 2018, the Partnership owned 336,447 shares of Mammoth, Inc. Accumulated Distribution Arrearages Pursuant to the Partnership’s partnership agreement, the Partnership’s common units accrue arrearages every quarter when the distribution level is below the minimum level of $4.45 per unit. Beginning with the quarter ended June 30, 2015 and continuing through the quarter ended March 31, 2018, the Partnership has suspended the cash distribution on its common units. For each of the quarters ended September 30, 2014, December 31, 2014 and March 31, 2015, the Partnership announced cash distributions per common unit at levels lower than the minimum quarterly distribution. The Partnership has not paid any distribution on its subordinated units for any quarter after the quarter ended March 31, 2012. As of March 31, 2018, the Partnership had accumulated arrearages of $497.4 million. |
Earnings Per Unit ('EPU')
Earnings Per Unit ('EPU') | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Unit [Abstract] | |
Earnings Per Unit ("EPU") | 12. EARNINGS PER UNIT (“EPU”) The following table presents a reconciliation of the numerators and denominators of the basic and diluted EPU calculations for the three months ended March 31, 2018 and 2017: Three months ended March 31, 2018 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 $ (13 ) $ (2,856 ) $ (252 ) $ 300 Net (loss)/income from discontinued operations - - - - Interest in net (loss)/income $ (13 ) $ (2,856 ) $ (252 ) $ 300 Denominator: Weighted average units used to compute basic EPU n/a 12,994 1,146 1,500 Effect of dilutive securities — Common unit warrants n/a - - - Weighted average units used to compute diluted EPU n/a 12,994 1,146 1,500 Net (loss)/income per limited partner unit, basic: Net (loss)/income per unit from continuing operations n/a $ (0.22 ) $ (0.22 ) $ 0.20 Net (loss)/ income per unit from discontinued operations n/a - - - Net (loss)/income per limited partner unit, basic n/a $ (0.22 ) $ (0.22 ) $ 0.20 Net (loss)/income per limited partner unit, diluted: Net (loss)/income per unit from continuing operations n/a $ (0.22 ) $ (0.22 ) $ 0.20 Net (loss)/income per unit from discontinued operations n/a - - - Net (loss)/income per limited partner unit, diluted n/a $ (0.22 ) $ (0.22 ) $ 0.20 Three months ended March 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 $ (13 ) $ (2,795 ) $ (268 ) $ 1,117 Net (loss) from discontinued operations - (64 ) (6 ) n/a Interest in net (loss)/income $ (13 ) $ (2,859 ) $ (274 ) $ 1,117 Denominator: Weighted average units used to compute basic EPU n/a 12,906 1,236 $ 1,500 Effect of dilutive securities — Common unit warrants n/a - - n/a Weighted average units used to compute diluted EPU n/a 12,906 1,236 n/a Net (loss/income) per limited partner unit, basic: Net (loss/income) per unit from continuing operations n/a $ (0.22 ) $ (0.22 ) $ 0.74 Net (loss)/income per unit from discontinued operations n/a - - n/a Net (loss/income) per limited partner unit, basic n/a $ (0.22 ) $ (0.22 ) $ 0.74 Net (loss)/income per limited partner unit, diluted: Net (loss)/income per unit from continuing operations n/a $ (0.22 ) $ (0.22 ) $ 0.74 Net (loss)/income per unit from discontinued operations n/a - - n/a Net (loss/income) per limited partner unit, diluted n/a $ (0.22 ) $ (0.22 ) $ 0.74 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 three months ended March 31, 2018 and 2017, all potential dilutive units were excluded from the diluted EPU calculation for these periods 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 11 for the three months ended March 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. COMMITMENTS AND CONTINGENCIES Coal Sales Contracts and Contingencies Year Tons (in thousands) Number of customers 2018 Q2-Q4 3,400 13 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 Leases Three months ended March 31, 2018 2017 (in thousands) Lease expense $ 430 $ 1,504 Royalty expense $ 3,644 $ 3,361 |
Major Customers
Major Customers | 3 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Major Customers | 14. MAJOR CUSTOMERS The Partnership had sales or receivables from the following major customers that in each period equaled or exceeded 10% of revenues: March 31, 2018 Receivable Balance December 31, 2017 Receivable Balance Three months ended March 31, 2018 Sales Three months ended March 31, 2017 Sales (in thousands) Dominion Energy $ 3,156 $ 1,232 $ 8,165 $ 5,551 Trafigura Trading 2,287 2,093 7,159 - Integrity Coal 914 2,238 6,528 4,728 Big Rivers 751 - 5,515 6,244 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 15. REVENUE The Partnership adopted ASC Topic 606 on January 1, 2018, using the modified retrospective method. The adoption of Topic 606 has no impact on revenue amounts recorded on the Partnership’s financial statements. The new disclosures required by ASC Topic 606, as applicable, are presented below. The majority of the Partnership’s revenues are generated under coal sales contracts. Coal sales accounted for approximately 99.0% of the Partnership’s total revenues for the three months ended March 31, 2018 and 2017. Other revenues generally consist of coal royalty revenues, coal handling and processing revenues, rebates and rental income, which accounted for approximately 1.0% of the Partnership’s total revenues for the three months ended March 31 2018 and 2017. The majority of the Partnership’s coal sales contracts have a single performance obligation (shipment or delivery of coal according to terms of the sales agreement) and as such, the Partnership is not required to allocate the contract’s transaction price to multiple performance obligations. All of the Partnership’s coal sales revenue is recognized when shipment or delivery to the customer has occurred, prices are fixed or determinable and the title or risk of loss has passed in accordance with the terms of the coal sales agreement. 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 collectability is reasonably assured. In the tables below, the Partnership has disaggregated its revenue by category for each reportable segment as required by ASC Topic 606. The following table disaggregates revenue by type for each reportable segment for the three months ended March 31, 2018: Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Coal sales Steam coal $ 11,662 $ 3,687 $ 8,061 $ 11,611 $ - $ 35,021 Met coal 19,251 - - - - 19,251 Other revenue 62 457 9 - - 528 Total $ 30,975 $ 4,144 $ 8,070 $ 11,611 $ - $ 54,800 The following table disaggregates revenue by type for each reportable segment for the three months ended March 31, 2017: Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Coal sales Steam coal $ 6,674 $ 3,859 $ 7,298 $ 16,807 $ - $ 34,638 Met coal 16,617 - - - - 16,617 Other revenue 22 261 1 - 5 289 Total $ 23,313 $ 4,120 $ 7,299 $ 16,807 $ 5 $ 51,544 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 16. 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 March 31, 2018. The fair value of the Partnership’s financing agreement is a Level 2 measurement. As of March 31, 2018 and December 31, 2017, the Partnership had a recurring fair value measurement relating to its investment in Mammoth, Inc. As discussed in Note 11, the Partnership owned 336,447 shares of Mammoth, Inc. as of March 31, 2018. The Partnership’s shares of Mammoth, Inc. are classified as an available-for-sale investment on the Partnership’s unaudited condensed 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. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 17. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash payments for interest were $1.4 million and $0.8 million for the three months ended March 31, 2018 and 2017, respectively. The unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2018 and 2017 excludes approximately $2.8 million and $0.6 million, respectively, of property, plant and equipment additions which are recorded in Accounts payable. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 18. 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 March 31, 2018, 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. 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. Reportable segment results of operations for the three months ended March 31, 2018 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 revenues 30,975 4,144 8,070 11,611 - 54,800 DD&A 2,196 140 1,061 1,939 91 5,427 Interest expense - - - - 1,885 1,885 Net Income (loss) from continuing operations $ 930 $ (1,117 ) $ 963 $ (2,329 ) $ (1,268 ) $ (2,821 ) Reportable segment results of operations for the three months ended March 31, 2017 are as follows: Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Total revenues 23,314 4,120 7,298 16,807 5 51,544 DD&A 1,973 307 1,116 2,004 107 5,507 Interest expense - - - - 1,155 1,155 Net Income (loss) from continuing operations $ 2,294 $ (710 ) $ (586 ) $ 654 $ (3,611 ) $ (1,959 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. SUBSEQUENT EVENTS On April 17, 2018, Rhino amended its Financing Agreement to allow for certain activities including a sale leaseback of certain pieces of equipment, the due date for the lease consents was extended to June 30, 2018 and confirmation of the distribution to holders of the Series A preferred units of $6.0 million (accrued in the unaudited condensed consolidated financial statements at December 31, 2017). Additionally, the amendments provide that the Partnership can sell additional shares of Mammoth Inc. stock and retain 50% of the proceeds with the other 50% used to reduce debt. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies and General (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition. Freight and handling costs paid directly to third-party carriers and invoiced separately to coal customers are recorded as freight and handling costs and freight and handling revenues, respectively. Freight and handling costs billed to customers as part of the contractual per ton revenue of customer contracts is included in coal sales revenue. 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 collectability is reasonably assured. Advance payments received are deferred and recognized in revenue when earned. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards. Leases (Topic 842) 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 adopted this standard on its unaudited condensed 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.” 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) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Major Components of Net Loss from Discontinued Operations | Sands Hill Mining LLC Major components of net loss from discontinued operations for Sands Hill Mining LLC for three months ended March 31, 2018 and 2017 are summarized as follows: Three Months Ended March 31, 2018 2017 (in thousands) Major line items constituting loss from discontinued operations for the Sands Hill Mining disposal: Coal sales $ - $ 526 Limestone sales - 1,078 Other revenue - 402 Total revenues - 2,006 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) - 1,702 Freight and handling - 174 Depreciation, depletion and amortization - 191 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) - 11 (Gain) on sale/disposal of assets, net - (2 ) Total costs, expenses and other - 2,076 (Loss) from discontinued operations before income taxes for the Sands Hill Mining disposal - (70 ) Income taxes - - Net (loss) from discontinued operations $ - $ (70 ) |
Prepaid Expenses and Other Cu26
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Other prepaid expenses $ 1,255 $ 920 Prepaid insurance 854 1,445 Prepaid leases 70 92 Supply inventory 306 434 Total $ 2,485 $ 2,891 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment by Major Classification | Property, plant and equipment, including coal properties and mine development and construction costs, as of March 31, 2018 and December 31, 2017 are summarized by major classification as follows: Useful Lives March 31, 2018 December 31, 2017 (in thousands) Land and land improvements $ 14,456 $ 14,687 Mining and other equipment and related facilities 2 - 20 Years 304,463 298,293 Mine development costs 1 - 15 Years 59,159 58,566 Coal properties 1 - 15 Years 64,070 64,070 Construction work in process 8,276 5,227 Total 450,424 440,843 Less accumulated depreciation, depletion and amortization (267,522 ) (263,520 ) Net $ 182,902 $ 177,323 |
Schedule of Depreciation, Depletion and Amortization | Depreciation expense for mining and other equipment and related facilities, depletion expense for coal properties, amortization expense for mine development costs and amortization expense for asset retirement costs for the three months ended March 31, 2018 and 2017 were as follows: Three Month Ended March 31, 2018 2017 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 4,087 $ 4,260 Depletion expense for coal properties 472 355 Amortization expense for mine development costs 749 757 Amortization expense for asset retirement costs 119 135 Total $ 5,427 $ 5,507 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Other Non-Current Assets | Other non-current assets as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Deposits and other $ 438 $ 423 Due (to) Rhino GP (30 ) (61 ) Non-current receivable 27,806 27,806 Deferred expenses 332 340 Total $ 28,546 $ 28,508 |
Accrued Expenses and Other Cu29
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Payroll, bonus and vacation expense $ 1,820 $ 2,633 Non-income taxes 2,836 2,738 Royalty expenses 2,427 2,410 Accrued interest 129 132 Health claims 774 871 Workers’ compensation & pneumoconiosis 1,750 1,750 Deferred revenue 1,174 - Other 606 652 Total $ 11,516 $ 11,186 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Note payable -Financing Agreement $ 34,900 $ 40,000 Net unamortized debt issuance costs (4,349 ) (4,688 ) Original Issue Discount (1,159 ) (1,264 ) Total 29,392 34,048 Less current portion (4,169 ) (5,475 ) Long-term debt $ 25,223 $ 28,573 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The changes in asset retirement obligations for the three months ended March 31, 2018 and the year ended December 31, 2017 are as follows: Three months ended Year ended March 31, 2018 December 31, 2017 (in thousands) Balance at beginning of period (including current portion) $ 18,662 $ 19,108 Accretion expense 314 1,493 Adjustment resulting from disposal of property - (223 ) Adjustments to the liability from annual recosting and other - (1,656 ) Liabilities settled (19 ) (60 ) Balance at end of period 18,957 18,662 Less current portion of asset retirement obligation (498 ) (498 ) Long-term portion of asset retirement obligation $ 18,459 $ 18,164 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Expense Under Defined Contribution Savings Plan | Three months ended March 31, 2018 2017 (in thousands) 401(k) plan expense $ 436 $ 357 |
Earnings Per Unit ('EPU') (Tabl
Earnings Per Unit ('EPU') (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 three months ended March 31, 2018 and 2017: Three months ended March 31, 2018 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 $ (13 ) $ (2,856 ) $ (252 ) $ 300 Net (loss)/income from discontinued operations - - - - Interest in net (loss)/income $ (13 ) $ (2,856 ) $ (252 ) $ 300 Denominator: Weighted average units used to compute basic EPU n/a 12,994 1,146 1,500 Effect of dilutive securities — Common unit warrants n/a - - - Weighted average units used to compute diluted EPU n/a 12,994 1,146 1,500 Net (loss)/income per limited partner unit, basic: Net (loss)/income per unit from continuing operations n/a $ (0.22 ) $ (0.22 ) $ 0.20 Net (loss)/ income per unit from discontinued operations n/a - - - Net (loss)/income per limited partner unit, basic n/a $ (0.22 ) $ (0.22 ) $ 0.20 Net (loss)/income per limited partner unit, diluted: Net (loss)/income per unit from continuing operations n/a $ (0.22 ) $ (0.22 ) $ 0.20 Net (loss)/income per unit from discontinued operations n/a - - - Net (loss)/income per limited partner unit, diluted n/a $ (0.22 ) $ (0.22 ) $ 0.20 Three months ended March 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 $ (13 ) $ (2,795 ) $ (268 ) $ 1,117 Net (loss) from discontinued operations - (64 ) (6 ) n/a Interest in net (loss)/income $ (13 ) $ (2,859 ) $ (274 ) $ 1,117 Denominator: Weighted average units used to compute basic EPU n/a 12,906 1,236 $ 1,500 Effect of dilutive securities — Common unit warrants n/a - - n/a Weighted average units used to compute diluted EPU n/a 12,906 1,236 n/a Net (loss/income) per limited partner unit, basic: Net (loss/income) per unit from continuing operations n/a $ (0.22 ) $ (0.22 ) $ 0.74 Net (loss)/income per unit from discontinued operations n/a - - n/a Net (loss/income) per limited partner unit, basic n/a $ (0.22 ) $ (0.22 ) $ 0.74 Net (loss)/income per limited partner unit, diluted: Net (loss)/income per unit from continuing operations n/a $ (0.22 ) $ (0.22 ) $ 0.74 Net (loss)/income per unit from discontinued operations n/a - - n/a Net (loss/income) per limited partner unit, diluted n/a $ (0.22 ) $ (0.22 ) $ 0.74 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Delivery Commitments | As of March 31, 2018, 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 Q2-Q4 3,400 13 2019 850 3 2020 850 3 |
Schedule of Lease and Royalty Expense | Three months ended March 31, 2018 2017 (in thousands) Lease expense $ 430 $ 1,504 Royalty expense $ 3,644 $ 3,361 |
Major Customers (Tables)
Major Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Summary of Major Customers | The Partnership had sales or receivables from the following major customers that in each period equaled or exceeded 10% of revenues: March 31, 2018 Receivable Balance December 31, 2017 Receivable Balance Three months ended March 31, 2018 Sales Three months ended March 31, 2017 Sales (in thousands) Dominion Energy $ 3,156 $ 1,232 $ 8,165 $ 5,551 Trafigura Trading 2,287 2,093 7,159 - Integrity Coal 914 2,238 6,528 4,728 Big Rivers 751 - 5,515 6,244 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates revenue by type for each reportable segment for the three months ended March 31, 2018: Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Coal sales Steam coal $ 11,662 $ 3,687 $ 8,061 $ 11,611 $ - $ 35,021 Met coal 19,251 - - - - 19,251 Other revenue 62 457 9 - - 528 Total $ 30,975 $ 4,144 $ 8,070 $ 11,611 $ - $ 54,800 The following table disaggregates revenue by type for each reportable segment for the three months ended March 31, 2017: Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Coal sales Steam coal $ 6,674 $ 3,859 $ 7,298 $ 16,807 $ - $ 34,638 Met coal 16,617 - - - - 16,617 Other revenue 22 261 1 - 5 289 Total $ 23,313 $ 4,120 $ 7,299 $ 16,807 $ 5 $ 51,544 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Results of Operations | Reportable segment results of operations for the three months ended March 31, 2018 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 revenues 30,975 4,144 8,070 11,611 - 54,800 DD&A 2,196 140 1,061 1,939 91 5,427 Interest expense - - - - 1,885 1,885 Net Income (loss) from continuing operations $ 930 $ (1,117 ) $ 963 $ (2,329 ) $ (1,268 ) $ (2,821 ) Reportable segment results of operations for the three months ended March 31, 2017 are as follows: Central Appalachia Northern Appalachia Rhino Western Illinois Basin Other Total Consolidated (in thousands) Total revenues 23,314 4,120 7,298 16,807 5 51,544 DD&A 1,973 307 1,116 2,004 107 5,507 Interest expense - - - - 1,155 1,155 Net Income (loss) from continuing operations $ 2,294 $ (710 ) $ (586 ) $ 654 $ (3,611 ) $ (1,959 ) |
Basis of Presentation and Org38
Basis of Presentation and Organization (Details Narrative) | Mar. 31, 2016 |
Royal Energy Resources, Inc [Member] | |
Ownership percentage | 100.00% |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Major Components of Net Loss from Discontinued Operations (Details) - Sands Hill Mining LLC [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Coal sales | $ 526 | |
Limestone sales | 1,078 | |
Other revenue | 402 | |
Total revenues | 2,006 | |
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) | 1,702 | |
Freight and handling | 174 | |
Depreciation, depletion and amortization | 191 | |
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) | 11 | |
(Gain) on sale/disposal of assets, net | (2) | |
Total costs, expenses and other | 2,076 | |
(Loss) from discontinued operations before income taxes for the Sands Hill Mining disposal | (70) | |
Income taxes | ||
Net (loss) from discontinued operations | $ (70) |
Prepaid Expenses and Other Cu40
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Other prepaid expenses | $ 1,255 | $ 920 |
Prepaid insurance | 854 | 1,445 |
Prepaid leases | 70 | 92 |
Supply inventory | 306 | 434 |
Total | $ 2,485 | $ 2,891 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment by Major Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 450,424 | $ 440,843 |
Less accumulated depreciation, depletion and amortization | (267,522) | (263,520) |
Net | 182,902 | 177,323 |
Mining and Other Equipment and Related Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 304,463 | 298,293 |
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 | $ 59,159 | 58,566 |
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 | 64,070 |
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 | $ 14,456 | 14,687 |
Construction Work in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 8,276 | $ 5,227 |
Property, Plant and Equipment42
Property, Plant and Equipment - Schedule of Depreciation, Depletion, and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | $ 5,427 | $ 5,507 |
Mining and Other Equipment and Related Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | 4,087 | 4,260 |
Coal Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | 472 | 355 |
Mine Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | 749 | 757 |
Asset Retirement Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation, depletion and amortization | $ 119 | $ 135 |
Other Non-current Assets (Detai
Other Non-current Assets (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Non-current receivable | $ 27,806 | $ 27,806 |
Workers' compensation liability, noncurrent | $ 27,800 | $ 27,800 |
Other Non-Current Assets - Sche
Other Non-Current Assets - Schedule of Other Non-Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Deposits and other | $ 438 | $ 423 |
Due (to) Rhino GP | (30) | (61) |
Non-current receivable | 27,806 | 27,806 |
Deferred expenses | 332 | 340 |
Total | $ 28,546 | $ 28,508 |
Accrued Expenses and Other Cu45
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payroll, bonus and vacation expense | $ 1,820 | $ 2,633 |
Non-income taxes | 2,836 | 2,738 |
Royalty expenses | 2,427 | 2,410 |
Accrued interest | 129 | 132 |
Health claims | 774 | 871 |
Workers' compensation & pneumoconiosis | 1,750 | 1,750 |
Deferred revenue | 1,174 | |
Other | 606 | 652 |
Total | $ 11,516 | $ 11,186 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Thousands | Dec. 27, 2017 | Mar. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Letter of credit facility description | The Partnerships obligations under the LoC Facility Agreement are 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 | |
Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument bear interest percentage | 2.00% | |
Financing Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instruments interest terms | Loans made pursuant to the Financing Agreement are, at the Operating Companys option, either 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 the Operating Company 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 the Operating Companys option, for LIBOR Rate Loans. If there is no event of default occurring or continuing, the Operating Company 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 | |
Partnership borrowed amount | $ 34,900 | |
Short term variable interest rate | 11.88% | |
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 (i) 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 the Operating Company, 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 | $ 3,000 | |
Letter of credit interest rate | 5.00% |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Note payable -Financing Agreement | $ 34,900 | $ 40,000 |
Net unamortized debt issuance costs | (4,349) | (4,688) |
Original Issue Discount | (1,159) | (1,264) |
Total | 29,392 | 34,048 |
Less current portion | (4,169) | (5,475) |
Long-term debt | $ 25,223 | $ 28,573 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Balance at beginning of period (including current portion) | $ 18,662 | $ 19,108 | $ 19,108 |
Accretion expense | 315 | $ 474 | 1,493 |
Adjustment resulting from disposal of property | (223) | ||
Adjustments to the liability from annual recosting and other | (1,656) | ||
Liabilities settled | (19) | (60) | |
Balance at end of period | 18,957 | 18,662 | |
Less current portion of asset retirement obligation | (498) | (498) | |
Long-term portion of asset retirement obligation | $ 18,459 | $ 18,164 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Expense Under Defined Contribution Savings Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Retirement Benefits [Abstract] | ||
401(k) plan expense | $ 436 | $ 357 |
Partners' Capital (Details Narr
Partners' Capital (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Jan. 19, 2018 | Sep. 02, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Mammoth Energy Services, Inc [Member] | ||||||
Stock issued during period, shares | 232,347 | |||||
Stock issued during period, value | $ 4,800 | |||||
Gain on sale of partnership capital | 2,900 | |||||
Other comprehensive income | $ 2,600 | |||||
Fair value of market adjustments | $ 4,200 | $ 2,600 | ||||
Shares owned by partnership | 336,447 | 336,447 | ||||
Series A Preferred Units [Member] | ||||||
Partnership paid for distributions earned | $ 6,000 | |||||
Partnership accrued | $ 300 | |||||
Series A Preferred Units [Member] | Minimum [Member] | ||||||
Debt conversion price per share | $ 2 | |||||
Series A Preferred Units [Member] | Maximum [Member] | ||||||
Debt conversion price per share | $ 10 | |||||
Royal Common Stock [Member] | ||||||
Weighted average closing price | 75.00% | |||||
Debt conversion price per share | $ 4.51 | |||||
Conversion of debt | $ 4,100 | |||||
Common stock issued for conversion | 914,797 | |||||
Royal Common Stock [Member] | Minimum [Member] | ||||||
Debt conversion price per share | $ 3.50 | |||||
Royal Common Stock [Member] | Maximum [Member] | ||||||
Debt conversion price per share | $ 7.50 | |||||
Fourth Amended and Restated Agreement [Member] | Series A Preferred Units [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 coal tons sold by the Partnership from its Central Appalachia business segment. | |||||
Indebtedness | $ 50,000 | |||||
Unpaid distribution | $ 10 | |||||
Weighted average closing price | 75.00% | |||||
Common Unit Warrants [Member] | ||||||
Number of warrant issuance shares | 683,888 | |||||
Warrant exercise price per share | $ 1.95 | |||||
Warrant expiration term | 5 years | |||||
Common Unit Warrants [Member] | Warrant Agreement [Member] | ||||||
Proceeds from warrant | $ 40,000 | |||||
Fair value of warrants | $ 1,300 |
Earnings Per Unit ('EPU') (Deta
Earnings Per Unit ('EPU') (Details Narrative) | 3 Months Ended |
Mar. 31, 2018shares | |
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Unit [Line Items] | ||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ (2,821) | $ (1,959) |
Interest in net (loss)/income: Net (loss)/income from discontinued operations | (70) | |
Interest in net (loss)/income | (2,821) | (2,029) |
General Partners [Member] | ||
Earnings Per Unit [Line Items] | ||
Interest in net (loss)/income: Net (loss)/income from continuing operations | (13) | (13) |
Interest in net (loss)/income: Net (loss)/income from discontinued operations | ||
Interest in net (loss)/income | $ (13) | $ (13) |
Weighted average units used to compute basic EPU | ||
Effect of dilutive securities - Common unit warrants | ||
Weighted average units used to compute diluted EPU | ||
Net (loss)/income per unit from continuing operations, basic | ||
Net (loss)/ income per unit from discontinued operations, basic | ||
Net (loss)/income per limited partner unit, basic | ||
Net (loss)/income per unit from continuing operations, diluted | ||
Net (loss)/income per unit from discontinued operations, diluted | ||
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 | $ (2,856) | $ (2,795) |
Interest in net (loss)/income: Net (loss)/income from discontinued operations | (64) | |
Interest in net (loss)/income | $ (2,856) | $ (2,859) |
Weighted average units used to compute basic EPU | 12,994,000 | 12,906,000 |
Effect of dilutive securities - Common unit warrants | ||
Weighted average units used to compute diluted EPU | 12,994,000 | 12,906,000 |
Net (loss)/income per unit from continuing operations, basic | $ (0.22) | $ (0.22) |
Net (loss)/ income per unit from discontinued operations, basic | ||
Net (loss)/income per limited partner unit, basic | (0.22) | (0.22) |
Net (loss)/income per unit from continuing operations, diluted | (0.22) | (0.22) |
Net (loss)/income per unit from discontinued operations, diluted | ||
Net (loss)/income per limited partner unit, diluted | $ (0.22) | $ (0.22) |
Subordinated Unitholders [Member] | ||
Earnings Per Unit [Line Items] | ||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ (252) | $ (268) |
Interest in net (loss)/income: Net (loss)/income from discontinued operations | (6) | |
Interest in net (loss)/income | $ (252) | $ (274) |
Weighted average units used to compute basic EPU | 1,146,000 | 1,236,000 |
Effect of dilutive securities - Common unit warrants | ||
Weighted average units used to compute diluted EPU | 1,146,000 | 1,236,000 |
Net (loss)/income per unit from continuing operations, basic | $ (0.22) | $ (0.22) |
Net (loss)/ income per unit from discontinued operations, basic | ||
Net (loss)/income per limited partner unit, basic | (0.22) | (0.22) |
Net (loss)/income per unit from continuing operations, diluted | (0.22) | (0.22) |
Net (loss)/income per unit from discontinued operations, diluted | ||
Net (loss)/income per limited partner unit, diluted | $ (0.22) | $ (0.22) |
Preferred Unitholders [Member] | ||
Earnings Per Unit [Line Items] | ||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ 300 | $ 1,117 |
Interest in net (loss)/income: Net (loss)/income from discontinued operations | ||
Interest in net (loss)/income | $ 300 | $ 1,117 |
Weighted average units used to compute basic EPU | 1,500,000 | 1,500,000 |
Effect of dilutive securities - Common unit warrants | ||
Weighted average units used to compute diluted EPU | 1,500,000 | 1,500,000 |
Net (loss)/income per unit from continuing operations, basic | $ 0.20 | $ 0.74 |
Net (loss)/ income per unit from discontinued operations, basic | ||
Net (loss)/income per limited partner unit, basic | 0.20 | 0.74 |
Net (loss)/income per unit from continuing operations, diluted | 0.20 | 0.74 |
Net (loss)/income per unit from discontinued operations, diluted | ||
Net (loss)/income per limited partner unit, diluted | $ 0.20 | $ 0.74 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Delivery Commitments (Details) | 3 Months Ended |
Mar. 31, 2018NumberT | |
Commitments and Contingencies Disclosure [Abstract] | |
2018 Q2-Q4 | T | 3,400,000 |
Tons, 2019 | T | 850,000 |
Tons, 2020 | T | 850,000 |
Number of customers, 2018 Q2-Q4 | Number | 13 |
Number of customers, 2019 | Number | 3 |
Number of customers, 2020 | Number | 3 |
Commitments and Contingencies54
Commitments and Contingencies - Schedule of Lease and Royalty Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease expense | $ 430 | $ 1,504 |
Royalty expense | $ 3,644 | $ 3,361 |
Major Customers - Summary of Ma
Major Customers - Summary of Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue, Major Customer [Line Items] | |||
Receivable balance | $ 17,117 | $ 20,386 | |
Dominion Energy [Member] | |||
Revenue, Major Customer [Line Items] | |||
Receivable balance | 3,156 | 1,232 | |
Sales | 8,165 | $ 5,551 | |
Trafigura Trading [Member] | |||
Revenue, Major Customer [Line Items] | |||
Receivable balance | 2,287 | 2,093 | |
Sales | 7,159 | ||
Integrity Coal [Member] | |||
Revenue, Major Customer [Line Items] | |||
Receivable balance | 914 | 2,238 | |
Sales | 6,528 | 4,728 | |
Big Rivers [Member] | |||
Revenue, Major Customer [Line Items] | |||
Receivable balance | 751 | ||
Sales | $ 5,515 | $ 6,244 |
Revenue (Details Narrative)
Revenue (Details Narrative) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Sales Revenue, Net [Member] | ||
Partnership total revenue, percentage | 99.00% | 99.00% |
Other Revenues [Member] | ||
Partnership total revenue, percentage | 1.00% | 1.00% |
Revenue- Schedule of Disaggrega
Revenue- Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total revenue | $ 54,800 | $ 51,544 |
Steam Coal Revenue [Member] | ||
Total revenue | 35,021 | 34,638 |
Met Coal Revenue [Member] | ||
Total revenue | 19,251 | 16,617 |
Other revenue [Member] | ||
Total revenue | 528 | 289 |
Central Appalachia [Member] | ||
Total revenue | 30,975 | 23,313 |
Central Appalachia [Member] | Steam Coal Revenue [Member] | ||
Total revenue | 11,662 | 6,674 |
Central Appalachia [Member] | Met Coal Revenue [Member] | ||
Total revenue | 19,251 | 16,617 |
Central Appalachia [Member] | Other revenue [Member] | ||
Total revenue | 62 | 22 |
Northern Appalachia [Member] | ||
Total revenue | 4,144 | 4,120 |
Northern Appalachia [Member] | Steam Coal Revenue [Member] | ||
Total revenue | 3,687 | 3,859 |
Northern Appalachia [Member] | Met Coal Revenue [Member] | ||
Total revenue | ||
Northern Appalachia [Member] | Other revenue [Member] | ||
Total revenue | 457 | 261 |
Rhino Western [Member] | ||
Total revenue | 8,070 | 7,299 |
Rhino Western [Member] | Steam Coal Revenue [Member] | ||
Total revenue | 8,061 | 7,298 |
Rhino Western [Member] | Met Coal Revenue [Member] | ||
Total revenue | ||
Rhino Western [Member] | Other revenue [Member] | ||
Total revenue | 9 | 1 |
Illinois Basin [Member] | ||
Total revenue | 11,611 | 16,807 |
Illinois Basin [Member] | Steam Coal Revenue [Member] | ||
Total revenue | 11,611 | 16,807 |
Illinois Basin [Member] | Met Coal Revenue [Member] | ||
Total revenue | ||
Illinois Basin [Member] | Other revenue [Member] | ||
Total revenue | ||
Other [Member] | ||
Total revenue | 5 | |
Other [Member] | Steam Coal Revenue [Member] | ||
Total revenue | ||
Other [Member] | Met Coal Revenue [Member] | ||
Total revenue | ||
Other [Member] | Other revenue [Member] | ||
Total revenue | $ 5 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - shares | Mar. 31, 2018 | Dec. 31, 2017 |
Mammoth Energy Services, Inc. [Member] | ||
Shares owned by partnership | 336,447 | 336,447 |
Supplemental Disclosures of C59
Supplemental Disclosures of Cash Flow Information (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Significant Noncash Transactions [Line Items] | ||
Interest paid | $ 1,400 | $ 800 |
Additions to property, plant, and equipment | (9,179) | (6,585) |
Accounts Payable [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Additions to property, plant, and equipment | $ 2,800 | $ 600 |
Segment Information (Details Na
Segment Information (Details Narrative) | 3 Months Ended |
Mar. 31, 2018Segments | |
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 54,800 | $ 51,544 |
DD&A | 5,427 | 5,507 |
Interest expense | 1,885 | 1,155 |
Net Income (loss) from continuing operations | (2,821) | (1,959) |
Central Appalachia [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 30,975 | 23,314 |
DD&A | 2,196 | 1,973 |
Interest expense | ||
Net Income (loss) from continuing operations | 930 | 2,294 |
Northern Appalachia [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 4,144 | 4,120 |
DD&A | 140 | 307 |
Interest expense | ||
Net Income (loss) from continuing operations | (1,117) | (710) |
Rhino Western [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 8,070 | 7,298 |
DD&A | 1,061 | 1,116 |
Interest expense | ||
Net Income (loss) from continuing operations | 963 | (586) |
Illinois Basin [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 11,611 | 16,807 |
DD&A | 1,939 | 2,004 |
Interest expense | ||
Net Income (loss) from continuing operations | (2,329) | 654 |
Segment Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 5 | |
DD&A | 91 | 107 |
Interest expense | 1,885 | 1,155 |
Net Income (loss) from continuing operations | $ (1,268) | $ (3,611) |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] $ in Thousands | Apr. 17, 2018USD ($) |
Preferred units distributions | $ 6,000 |
Sales leaseback, description | Additionally, the amendments provide that the Partnership can sell additional shares of Mammoth Inc. stock and retain 50% of the proceeds with the other 50% used to reduce debt. |