Cover Page Cover Page
Cover Page Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38061 | |
Entity Registrant Name | Warrior Met Coal, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-0706839 | |
Entity Address, Address Line One | 16243 Highway 216 | |
Entity Address, City or Town | Brookwood | |
Entity Address, State or Province | AL | |
Entity Address, Postal Zip Code | 35444 | |
City Area Code | 205 | |
Local Phone Number | 554-6150 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | HCC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 51,570,910 | |
Entity Central Index key | 0001691303 | |
Document Fiscal Year Focus | 2019 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 397,613,000 | $ 322,555,000 | $ 775,903,000 | $ 744,343,000 |
Costs and expenses: | ||||
Cost of sales (exclusive of items shown separately below) | 205,188,000 | 178,543,000 | 387,816,000 | 369,219,000 |
Cost of other revenues (exclusive of items shown separately below) | 8,019,000 | 7,338,000 | 15,764,000 | 15,122,000 |
Depreciation and depletion | 25,678,000 | 21,127,000 | 47,911,000 | 45,679,000 |
Selling, general and administrative | 10,783,000 | 13,465,000 | 19,688,000 | 21,699,000 |
Transaction and other expenses | 0 | 986,000 | 0 | 4,274,000 |
Total costs and expenses | 249,668,000 | 221,459,000 | 471,179,000 | 455,993,000 |
Operating income | 147,945,000 | 101,096,000 | 304,724,000 | 288,350,000 |
Interest expense, net | (6,951,000) | (9,784,000) | (15,543,000) | (18,344,000) |
Loss on early extinguishment of debt | 0 | 0 | (9,756,000) | 0 |
Other income | 17,543,000 | 0 | 17,543,000 | 0 |
Income before income tax expense | 158,537,000 | 91,312,000 | 296,968,000 | 270,006,000 |
Income tax expense | 33,056,000 | 0 | 61,040,000 | 0 |
Net income | $ 125,481,000 | $ 91,312,000 | $ 235,928,000 | $ 270,006,000 |
Basic and diluted net income per share: | ||||
Net income per share—basic (in dollars per share) | $ 2.43 | $ 1.72 | $ 4.58 | $ 5.10 |
Net income per share—diluted (in dollars per share) | $ 2.43 | $ 1.72 | $ 4.57 | $ 5.09 |
Weighted average number of shares outstanding—basic (in shares) | 51,553 | 53,053 | 51,532 | 52,976 |
Weighted average number of shares outstanding—diluted (in shares) | 51,681 | 53,079 | 51,641 | 53,007 |
Dividends per share (in dollars per share) | $ 4.46 | $ 6.58 | $ 4.51 | $ 6.63 |
Sales | ||||
Revenues: | ||||
Total revenues | $ 387,429,000 | $ 315,045,000 | $ 757,110,000 | |
Other revenues | ||||
Revenues: | ||||
Total revenues | $ 10,184,000 | $ 7,510,000 | $ 18,793,000 | $ 16,419,000 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 119,318 | $ 205,577 |
Short-term investments | 14,250 | 17,501 |
Trade accounts receivable | 160,834 | 138,399 |
Income tax receivable | 10,655 | 21,607 |
Inventories, net | 69,234 | 56,719 |
Prepaid expenses and other receivables | 26,485 | 29,366 |
Total current assets | 400,776 | 469,169 |
Mineral interests, net | 114,951 | 120,427 |
Property, plant and equipment, net | 582,560 | 540,315 |
Non-current income tax receivable | 10,655 | 21,310 |
Deferred income taxes | 161,826 | 222,780 |
Other long-term assets | 19,710 | 21,039 |
Total assets | 1,290,478 | 1,395,040 |
Current liabilities: | ||
Accounts payable | 36,467 | 33,588 |
Accrued expenses | 70,742 | 82,342 |
Short term financing lease liabilities | 8,659 | |
Other current liabilities | 5,389 | 7,742 |
Current portion of long-term debt | 0 | 760 |
Total current liabilities | 121,257 | 124,432 |
Long-term debt | 338,854 | 468,231 |
Asset retirement obligations | 60,356 | 59,049 |
Long term financing lease liabilities | 31,166 | |
Other long-term liabilities | 26,187 | 30,716 |
Total liabilities | 577,820 | 682,428 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Common stock, $0.01 par value per share (Authorized -140,000,000 shares as of June 30, 2019 and December 31, 2018, 53,292,751 issued and 51,570,910 outstanding as of June 30, 2019 and 53,256,098 issued and 51,622,898 outstanding as of December 31, 2018) | 533 | 533 |
Preferred stock, $0.01 par value per share (10,000,000 shares authorized, no shares issued and outstanding) | 0 | 0 |
Treasury stock, at cost (1,721,841 and 1,633,200 shares as of June 30, 2019 and December 31, 2018) | (40,000) | (38,030) |
Additional paid in capital | 241,020 | 239,827 |
Retained earnings | 511,105 | 510,282 |
Total stockholders’ equity | 712,658 | 712,612 |
Total liabilities and stockholders’ equity | $ 1,290,478 | $ 1,395,040 |
CONDENSED BALANCE SHEETS CONDEN
CONDENSED BALANCE SHEETS CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock shares issued (in shares) | 53,292,751 | 53,256,098 |
Common stock shares outstanding (in shares) | 51,570,910 | 51,622,898 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 1,721,841,000 | 1,633,200,000 |
CONDENSED STATEMENT OF CHANGES
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) | Total | Common Stock | Preferred Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings |
Balance at beginning of period at Dec. 31, 2017 | $ 534,000 | $ 0 | $ 0 | $ 329,993,000 | $ 82,496,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury stock purchase | (12,100,000) | |||||
Stock compensation | 4,679,000 | |||||
Dividends paid | (91,122,000) | (264,228,000) | ||||
Other | (5,388,000) | 0 | ||||
Net income | $ 270,006,000 | 270,006,000 | ||||
Balance at end of period at Jun. 30, 2018 | 314,870,000 | 534,000 | 0 | (12,100,000) | 238,162,000 | 88,274,000 |
Balance at beginning of period at Mar. 31, 2018 | 534,000 | 0 | 0 | 325,871,000 | 258,505,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury stock purchase | (12,100,000) | |||||
Stock compensation | 4,481,000 | |||||
Dividends paid | (91,122,000) | (261,543,000) | ||||
Other | (1,068,000) | 0 | ||||
Net income | 91,312,000 | 91,312,000 | ||||
Balance at end of period at Jun. 30, 2018 | 314,870,000 | 534,000 | 0 | (12,100,000) | 238,162,000 | 88,274,000 |
Balance at beginning of period at Dec. 31, 2018 | 712,612,000 | 533,000 | 0 | (38,030,000) | 239,827,000 | 510,282,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury stock purchase | (1,970,000) | |||||
Stock compensation | 2,435,000 | |||||
Dividends paid | 0 | (235,210,000) | ||||
Other | (1,242,000) | 105,000 | ||||
Net income | 235,928,000 | 235,928,000 | ||||
Balance at end of period at Jun. 30, 2019 | 712,658,000 | 533,000 | 0 | (40,000,000) | 241,020,000 | 511,105,000 |
Balance at beginning of period at Mar. 31, 2019 | 533,000 | 0 | (40,000,000) | 240,408,000 | 618,123,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury stock purchase | 0 | |||||
Stock compensation | 1,327,000 | |||||
Dividends paid | 0 | (232,604,000) | ||||
Other | (715,000) | 105,000 | ||||
Net income | 125,481,000 | 125,481,000 | ||||
Balance at end of period at Jun. 30, 2019 | $ 712,658,000 | $ 533,000 | $ 0 | $ (40,000,000) | $ 241,020,000 | $ 511,105,000 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 235,928 | $ 270,006 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and depletion | 47,911 | 45,679 |
Deferred income tax expense | 60,954 | 0 |
Stock based compensation expense | 2,649 | 4,679 |
Amortization of debt issuance costs and debt discount/premium, net | 696 | 1,396 |
Accretion of asset retirement obligations | 1,624 | 2,310 |
Loss on early extinguishment of debt | 9,756 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (22,435) | (12,200) |
Income tax receivable | 21,607 | 0 |
Inventories | (10,633) | (5,390) |
Prepaid expenses and other receivables | 8,510 | 12,834 |
Accounts payable | 5,819 | 15,469 |
Accrued expenses and other current liabilities | (12,968) | (3,723) |
Other | 8,420 | (4,803) |
Net cash provided by operating activities | 357,838 | 326,257 |
INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (52,100) | (55,419) |
Deferred mine development costs | (12,069) | 0 |
Proceeds from sale of property, plant and equipment | 3,063 | 0 |
Sale of short-term investments | 17,501 | 0 |
Purchases of short-term investments | (14,250) | 0 |
Net cash used in investing activities | (57,855) | (55,419) |
FINANCING ACTIVITIES | ||
Dividends paid | (235,210) | (355,350) |
Proceeds from issuance of debt | 0 | 126,875 |
Retirements of debt, premium and fees | (140,272) | (1,513) |
Principal repayments of capital lease obligations | (7,654) | 0 |
Debt issuance costs paid | 0 | (3,713) |
Common shares repurchased | (1,970) | (12,100) |
Other | (1,137) | (5,388) |
Net cash used in provided by financing activities | (386,243) | (251,189) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (86,260) | 19,649 |
Cash and cash equivalents and restricted cash at beginning of period | 206,405 | 36,264 |
Cash and cash equivalents and restricted cash at end of period | $ 120,145 | $ 55,913 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Description of the Business Warrior Met Coal, Inc. (the "Company") is a U.S. based producer and exporter of met coal for a diversified customer base of blast furnace steel producers located primarily in Europe, South America and Asia. The Company also generates ancillary revenues from the sale of natural gas extracted as a byproduct from the underground coal mines and royalty revenues from leased properties. Basis of Presentation The accompanying financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. Operating results for the three and six months ended June 30, 2019 and June 30, 2018 are not necessarily indicative of the final results that may be expected for the year ended December 31, 2019 . The balance sheet at December 31, 2018 has been derived from the audited financial statements for the year ended December 31, 2018 included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Annual Report"). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Our significant accounting policies are consistent with those disclosed in Note 2 to our audited financial statements included in the 2018 Annual Report, except for changes related to new accounting pronouncements described in "New Accounting Pronouncements". Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Balance Sheets that sum to the total of the same such amounts shown in the Condensed Statements of Cash Flows (in thousands): June 30, 2019 December 31, 2018 Cash and cash equivalents $ 119,318 $ 205,577 Restricted cash included in other long-term assets 827 828 Total cash and cash equivalents and restricted cash included in the Condensed Statements of Cash Flows $ 120,145 $ 206,405 Cash and cash equivalents include short-term deposits and highly liquid investments that have original maturities of three months or less when purchased and are stated at cost, which approximates fair value. As of June 30, 2019 and December 31, 2018 , restricted cash included in other long-term assets in the Condensed Balance Sheets represents amounts invested in certificates of deposits as financial assurance for post mining reclamation obligations. Short-Term Investments Instruments with maturities greater than three months, but less than twelve months, are included in short-term investments. The Company purchases United States Treasury ("Treasury") bills with maturities ranging from six to twelve months which are classified as held to maturity and are carried at amortized cost, which approximates fair value. The Company also purchases fixed income securities and certificates of deposits with varying maturities that are classified as available for sale and are carried at fair value. Securities classified as held to maturity are those securities that management has the intent and ability to hold to maturity. As of June 30, 2019 , short-term investments consisted of $14.3 million in cash and fixed income securities. As of December 31, 2018 , the Company’s short-term investments consisted of $17.5 million in Treasury bills with a maturity of six months . The fixed income securities and Treasury bills were posted as collateral for the self-insured black lung related claims asserted by or on behalf of former employees of Walter Energy, Inc. and its subsidiaries, which were assumed by the Company and relate to periods prior to March 31, 2016. Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with our customers are satisfied; for all contracts this occurs when control of the promised goods have been transferred to our customers. For coal shipments to domestic customers via rail, control is transferred when the railcar is loaded. For coal shipments to international customers via ocean vessel, control is transferred when the vessel is loaded at the Port of Mobile, Alabama. For natural gas sales, control is transferred when the gas has been transferred to the pipeline. Revenue is disaggregated between coal sales within the Company's mining segment and natural gas sales included in all other revenues, as disclosed in Note 14. Since February 2017, we have had an arrangement with XCoal Energy & Resource ("XCoal") to serve as XCoal's strategic partner for exports of low-volatility HCC. Under this arrangement, XCoal takes title to and markets coal that we would historically have sold on the spot market, in an amount of the greater of (i) 10% of our total production during the applicable term of the arrangement or (ii) 250,000 metric tons. During the three months ended June 30, 2019 and 2018 , XCoal accounted for approximately $68.1 million , or 17.5% of total revenues, and $42.2 million , or 13% of total revenues, respectively. During the six months ended June 30, 2019 and 2018 , XCoal accounted for approximately $163.0 million , or 21.7% of total revenues, and $144.9 million , or 19% of total revenues, respectively. New Accounting Pronouncements The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, "Leases (Topic 842)" as of January 1, 2019 using the modified retrospective approach (the "New Leases Standard"). The New Leases Standard requires a lessee to recognize a right-of-use asset and lease liability on its balance sheet for all leases. The Company has chosen to use its adoption date as its date of initial application. As a result, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The Company made an accounting policy election that leases with an initial term of 12 months or less will remain off its balance sheet and lease payments will instead be recognized in the Condensed Statements of Operations on a straight-line basis over the lease term. Additionally, the Company elected the package of practical expedients for all leases, which permits the Company to forego reassessing expired or existing contracts to determine: whether they are or contain leases, lease classification, and initial direct costs. Management elected the optional transition expedient which allows the Company to continue applying the current policy for accounting for expired or existing land easement contracts that may have not been previously accounted for under ASC Topic 840 Leases. New or modified land easements executed after adoption will be considered under the New Lease Standard. The Company elected the practical expedient as an accounting policy election for all asset classifications, which allows it to account for them as a single lease component, rather than as separate lease and non-lease components. As the Company’s historical operating leases are primarily short-term rental agreements of less than one year, the Company did not record any additional lease assets or lease liabilities upon adoption of the New Leases Standard. Therefore, the New Leases Standard did not impact the Company's balance sheet or consolidated net income and had no impact on cash flows upon adoption. As of June 30, 2019 , the Company has a right-of-use asset of $41.5 million , net of accumulated amortization, a short-term financing lease liability of $8.7 million and a long-term financing lease liability of $31.2 million . On August 17, 2018, the SEC adopted a final rule that eliminates or amends certain disclosure requirements that were deemed redundant and outdated in light of changes in SEC requirements, U.S. GAAP or changes in technology or the business environment. The rule also requires registrants to include in their interim financial statements a reconciliation of changes in stockholders’ equity in the notes or as a separate statement. The analysis should reconcile the beginning balance to the ending balance of each caption in shareholders’ equity for each period for which an income statement is required to be filed. The final rule became effective November 5, 2018. The Company has provided a reconciliation for the three and six months ended June 30, 2019 and 2018 in this Form 10-Q. The eliminated or amended disclosures did not have a material impact on the Company’s unaudited condensed financial statements. |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories, net are summarized as follows (in thousands): June 30, 2019 December 31, 2018 Coal $ 43,907 $ 32,854 Raw materials, parts, supplies and other, net 25,327 23,865 Total inventories, net $ 69,234 $ 56,719 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months ended June 30, 2019 , the Company estimated its annual effective tax rate and applied this effective tax rate to its year-to-date pretax income at the end of the interim reporting period. The tax effect of unusual or infrequently occurring items, including effects of changes in tax laws or rates and changes in judgment about the realizability of deferred tax assets, are reported in the interim period in which they occur. For the three and six months ended June 30, 2019 , the Company had income tax expense of $33.1 million and $61.0 million , respectively. The income tax expense primarily reflects the Company's utilization of its NOLs. The Company had no income tax expense for the three and six months ended June 30, 2018 , due to the utilization of NOLs to offset taxable income for which a full valuation allowance was recorded. As a result of various favorable factors further discussed in the 2018 Annual Report, the Company released its valuation allowance against its net deferred income tax assets in the fourth quarter of 2018. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 Weighted Average Interest Rate at June 30, 2019 Final Maturity Senior Secured Notes $ 343,435 $ 475,000 8% 2024 Promissory note — 760 Debt discount/premium, net (4,581 ) (6,769 ) Total debt 338,854 468,991 Less: current debt — (760 ) Total long-term debt $ 338,854 $ 468,231 Senior Secured Notes On November 2, 2017, the Company issued $350.0 million aggregate principal amount of its 8.00% Senior Secured Notes due 2024 (the "Original Notes"). It then issued an additional $125.0 million in aggregate principal amount of its 8.00% Senior Secured Notes due 2024 (the “New Notes” and, together with the Original Notes, the "Notes") on March 1, 2018. The New Notes were issued as "Additional Notes" under the indenture dated as of November 2, 2017 (the "Original Indenture"), among the Company, the subsidiary guarantors party thereto and Wilmington Trust, National Association, as trustee and priority lien collateral trustee, as supplemented by the First Supplemental Indenture, dated as of March 1, 2018 (the "First Supplemental Indenture" and, the Original Indenture as supplemented thereby and by the Second Supplemental Indenture, dated as of March 2, 2018, the "Indenture"). The Notes mature on November 1, 2024 and interest is payable on May 1 and November 1 of each year. Offers to Purchase the Notes On February 21, 2019, the Company commenced an offer to purchase (the “Restricted Payment Offer”), in cash, up to $150,000,000 principal amount of its outstanding Notes, at a repurchase price of 103% of the aggregate principal amount of such Notes, plus accrued and unpaid interest with respect to such Notes to, but not including, the date of repurchase (the “Restricted Payment Repurchase Price”). Concurrently with, but separate from, the Restricted Payment Offer, the Company commenced a cash tender offer (the “Tender Offer” and, together with the Restricted Payment Offer, the “Offers”) to purchase up to $150,000,000 principal amount of the Notes at a repurchase price of 104.25% of the aggregate principal amount of such Notes, plus accrued and unpaid interest to, but not including, the date of repurchase (the “TO Repurchase Price”). The Offers expired on March 22, 2019 (the “Expiration Date”). Restricted Payment Offer As of the Expiration Date, $1,900,000 aggregate principal amount of the Notes were validly tendered and not validly withdrawn pursuant to the Restricted Payment Offer. Pursuant to the terms of the Restricted Payment Offer: (1) an automatic pro ration factor of 31.5789% was applied to the $1,900,000 aggregate principal amount of the Notes that were validly tendered and not validly withdrawn in the Restricted Payment Offer (rounded down to avoid the purchase of Notes in a principal amount other than in integrals of $1,000 ), which resulted in $599,000 aggregate principal amount of the Notes (the “RP Pro-Rated Tendered Notes”); (2) the Company accepted all $599,000 aggregate principal amount of the RP Pro-Rated Tendered Notes for payment of the Restricted Payment Repurchase Price in cash; and (3) the remaining balance of $1,301,000 aggregate principal amount of the Notes tendered that were not RP Pro-Rated Tendered Notes were not accepted for payment and were returned to the tendering holder of the Notes. The Company consummated the Restricted Payment Offer on March 25, 2019. Accordingly, pursuant to the terms of the Indenture, the Company was permitted to make one or more restricted payments in the form of special dividends to holders of the Company’s common stock and/or repurchases of the Company’s common stock in the aggregate amount of up to $299,401,000 (the "RP Basket") without having to make another offer to repurchase Notes. The Company used a portion of the RP Basket to pay the April 2019 Special Dividend (as defined below) and intends to use the remainder of the RP Basket to make repurchases under the New Stock Repurchase Program (as defined below). Tender Offer As of the Expiration Date, $415,099,000 aggregate principal amount of the Notes were validly tendered and not validly withdrawn pursuant to the Tender Offer. Pursuant to the terms of the Tender Offer: (1) an automatic pro ration factor of 31.5789% was applied to the $415,099,000 aggregate principal amount of the Notes that were validly tendered and not validly withdrawn in the Tender Offer (rounded down to avoid the purchase of Notes in a principal amount other than in integrals of $1,000 ), which resulted in $130,966,000 aggregate principal amount of the Notes (the “TO Pro-Rated Tendered Notes”); (2) the Company accepted all $130,966,000 aggregate principal amount of the TO Pro-Rated Tendered Notes for payment of the TO Repurchase Price in cash; and (3) the remaining balance of $284,133,000 aggregate principal amount of the Notes tendered that were not TO Pro-Rated Tendered Notes were not accepted for payment and were returned to the tendering holder of the Notes. The Company consummated the Tender Offer on March 26, 2019. In connection with the payments for the RP Pro-Rated Tendered Notes and the TO Pro-Rated Tendered Notes, the Company recognized a loss on early extinguishment of debt of $9.8 million during the six months ended June 30, 2019 . |
Other Long-Term Liabilities
Other Long-Term Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities are summarized as follows (in thousands): June 30, 2019 December 31, 2018 Black lung obligations $ 25,428 $ 25,206 Other 759 5,510 Total other long-term liabilities $ 26,187 $ 30,716 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company primarily enters into rental agreements for certain mining equipment that are for periods of 12 months or less, some of which include options to extend the leases. Leases that are for periods of 12 months or less are not recorded on the balance sheet in accordance with the Company's accounting policy election described in Note 2. The Company recognizes lease expense on these agreements on a straight-line basis over the lease term. Additionally, the Company has finance leases for certain mining equipment that expire over various contractual periods. The leases have remaining lease terms of one to five years . These leases do not include an option to renew. Amortization expense for finance leases is included in depreciation and depletion expense. Supplemental balance sheet information related to leases was as follows (in thousands): June 30, 2019 Finance lease right-of-use assets, net (1) $ 41,473 Finance lease liabilities Current 8,659 Noncurrent 31,166 Total finance lease liabilities $ 39,825 Weighted average remaining lease term - finance leases (in months) 52.3 Weighted average discount rate - finance leases (2) 5.85 % (1) Finance lease right-of-use assets are recorded net of accumulated amortization of $6.4 million as of June 30, 2019 . (2) When an implicit discount rate is not readily available in a lease, the Company uses its incremental borrowing rate based on information available at the commencement date when determining the present value of lease payments. The components of lease expense were as follows (in thousands): For the three months ended June 30, 2019 For the six months ended June 30, 2019 Operating lease cost (1): $ 63 $ 207 Finance lease cost: Amortization of leased assets 3,421 5,828 Interest on lease liabilities 395 408 Net lease cost $ 3,879 $ 6,443 (1) Includes leases that are for periods of 12 months or less. Maturities of lease liabilities were as follows (in thousands): Finance Leases (1) 2019 $ 6,495 2020 13,043 2021 8,558 2022 8,558 2023 8,558 Thereafter 842 Total 46,054 Less: amount representing interest (6,229 ) Present value of lease liabilities $ 39,825 (1) Finance lease payments exclude $1.1 M of future payments required under signed lease agreements that have not yet commenced. Supplemental cash flow information related to leases was as follows (in thousands): For the three months ended June 30, 2019 For the six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 395 $ 408 Financing cash flows from finance leases $ 5,697 $ 7,654 Non-cash right-of-use assets obtained in exchange for lease obligations: Finance leases $ 38,216 $ 40,302 As of June 30, 2019 , the Company had additional commitments for finance leases, primarily for mining equipment, that have not yet commenced of $1.1 million . These finance leases will commence between fiscal year 2019 and 2021 with lease terms of one to two years . |
Leases | Leases The Company primarily enters into rental agreements for certain mining equipment that are for periods of 12 months or less, some of which include options to extend the leases. Leases that are for periods of 12 months or less are not recorded on the balance sheet in accordance with the Company's accounting policy election described in Note 2. The Company recognizes lease expense on these agreements on a straight-line basis over the lease term. Additionally, the Company has finance leases for certain mining equipment that expire over various contractual periods. The leases have remaining lease terms of one to five years . These leases do not include an option to renew. Amortization expense for finance leases is included in depreciation and depletion expense. Supplemental balance sheet information related to leases was as follows (in thousands): June 30, 2019 Finance lease right-of-use assets, net (1) $ 41,473 Finance lease liabilities Current 8,659 Noncurrent 31,166 Total finance lease liabilities $ 39,825 Weighted average remaining lease term - finance leases (in months) 52.3 Weighted average discount rate - finance leases (2) 5.85 % (1) Finance lease right-of-use assets are recorded net of accumulated amortization of $6.4 million as of June 30, 2019 . (2) When an implicit discount rate is not readily available in a lease, the Company uses its incremental borrowing rate based on information available at the commencement date when determining the present value of lease payments. The components of lease expense were as follows (in thousands): For the three months ended June 30, 2019 For the six months ended June 30, 2019 Operating lease cost (1): $ 63 $ 207 Finance lease cost: Amortization of leased assets 3,421 5,828 Interest on lease liabilities 395 408 Net lease cost $ 3,879 $ 6,443 (1) Includes leases that are for periods of 12 months or less. Maturities of lease liabilities were as follows (in thousands): Finance Leases (1) 2019 $ 6,495 2020 13,043 2021 8,558 2022 8,558 2023 8,558 Thereafter 842 Total 46,054 Less: amount representing interest (6,229 ) Present value of lease liabilities $ 39,825 (1) Finance lease payments exclude $1.1 M of future payments required under signed lease agreements that have not yet commenced. Supplemental cash flow information related to leases was as follows (in thousands): For the three months ended June 30, 2019 For the six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 395 $ 408 Financing cash flows from finance leases $ 5,697 $ 7,654 Non-cash right-of-use assets obtained in exchange for lease obligations: Finance leases $ 38,216 $ 40,302 As of June 30, 2019 , the Company had additional commitments for finance leases, primarily for mining equipment, that have not yet commenced of $1.1 million . These finance leases will commence between fiscal year 2019 and 2021 with lease terms of one to two years . |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share Basic and diluted net income per share was calculated as follows (in thousands, except per share data): For the three months ended For the six months ended June 30, 2019 2018 2019 2018 Numerator: Net income $ 125,481 $ 91,312 $ 235,928 $ 270,006 Denominator: Weighted-average shares used to compute net income per share—basic 51,553 53,053 51,532 52,976 Dilutive restrictive stock awards 128 26 109 31 Weighted-average shares used to compute net income per share—diluted 51,681 53,079 51,641 53,007 Net income per share—basic and diluted $ 2.43 $ 1.72 $ 4.58 $ 5.10 Net income per share—diluted $ 2.43 $ 1.72 $ 4.57 $ 5.09 2017 Equity Plan On February 8, 2019, the Company awarded 306,314 restricted stock unit awards under the Company's 2017 Equity Incentive Plan (the "2017 Equity Plan"). These awards have certain service-based, performance-based and market-based vesting conditions, as applicable. The service-based awards vest over a period of three years and the performance-based and market-based awards are based on the Company's performance in each of the three years . The Company recognized approximately $0.9 million and $1.4 million in stock compensation expense associated with these awards for the three and six months ended June 30, 2019 , respectively. Additionally, the Company awarded $1.5 million of restricted stock unit awards under the 2017 Equity Plan that can be settled in shares or in cash at the election of employees. These awards have certain service-based and performance-based vesting conditions and can be earned no later than December 31, 2021. If the Company were to settle these awards in shares these awards would represent 57,427 shares based on the Company's closing share price on June 30, 2019 . The Company recognized approximately $129 thousand and $214 thousand in stock compensation expense associated with these awards for the three and six months ended June 30, 2019 , respectively. As of June 30, 2019 , there were 160,903 restricted stock unit awards for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share. These awards had a 43,770 and 32,732 share impact on dilutive weighted average shares for the three and six months ended June 30, 2019 , respectively. As of June 30, 2019 , there were 272,953 restricted stock unit awards for which the performance-based and market-based vesting conditions were not met as of the measurement date and, as such, these awards were excluded from basic and diluted earnings per share. For the 57,427 restricted stock unit awards classified as a liability, the Company considered the impact on diluted earnings as if the award was settled in cash or in shares. These awards had a 10,042 and 7,329 share impact on dilutive weighted average shares for the three and six months ended June 30, 2019 . As of June 30, 2019 , there were 43,580 shares of our common stock contingently issuable upon the settlement of a vested phantom unit award granted under our 2016 Equity Plan (as defined below) and 13,157 shares of our common stock contingently issuable upon the settlement of a vested restricted stock unit award under our 2017 Equity Plan, as applicable. The settlement date for these awards is the earlier of a change in control as described in our 2016 Equity Plan or 2017 Equity Plan, as applicable, or five years from the grant date. These awards are vested and, as such, have been included in the weighted average shares used to compute basic and diluted net income per share. 2016 Equity Plan As of June 30, 2019 , there were 98,216 restricted stock unit awards granted under the Company's 2016 Equity Incentive Plan (the "2016 Equity Plan") to certain directors and employees, for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share. These awards had a 73,363 and 69,190 share impact on dilutive weighted average shares for the three and six months ended June 30, 2019 , respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company owns a 50% interest in Black Warrior Methane (“BWM”) and Black Warrior Transmission (“BWT”), which are accounted for under the proportionate consolidation method and equity method, respectively. The Company has granted the rights to produce and sell methane gas from its coal mines to BWM and BWT. The Company’s net investments in, advances to/from BWT and equity in earnings or loss of BWT are not material to the Company. The Company supplied labor to BWM and incurred costs, including property and liability insurance, to support the joint venture. The Company charged the joint venture for such costs on a monthly basis, which were $0.4 million and $0.5 million , respectively, for the three and six months ended June 30, 2019 and $0.7 million and $1.5 million , respectively, for the three and six months ended June 30, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Matters The Company is subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the construction and operation of its plants, mines and other facilities and with respect to remediating environmental conditions that may exist at its own and other properties. The Company believes it is in compliance with federal, state and local environmental laws and regulations. The Company accrues for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and can be reasonably estimated. As of June 30, 2019 and December 31, 2018 , there were no accruals for environmental matters other than asset retirement obligations for mine reclamation. Miscellaneous Litigation From time to time, the Company is party to lawsuits arising in the ordinary course of their businesses. The Company records costs relating to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on the Company’s future results of operations cannot be predicted with certainty as any such effect depends on future results of operations and the amount and timing of the resolution of such matters. As of June 30, 2019 and December 31, 2018 , there were no items accrued for miscellaneous litigation. Walter Canada Settlement Proceeds On July 15, 2015, Walter Energy, Inc. (“Walter Energy”) and certain of its wholly owned U.S. subsidiaries, including Jim Walter Resources, Inc. (“JWR”) filed voluntary petitions for relief under Chapter 11 of Title 11 of the U.S. Bankruptcy Code (the “Chapter 11 Cases”) in the Northern District of Alabama, Southern Division. On December 7, 2015, Walter Energy Canada Holdings, Inc., Walter Canadian Coal Partnership and their Canadian affiliates (collectively “Walter Canada”) applied for and were granted protection under the Companies’ Creditors Arrangement Act (the “CCAA”) pursuant to an Initial Order of the Supreme Court of British Columbia. In connection with the Company’s acquisition of certain core operating assets of Walter Energy, the Company acquired a receivable owed to Walter Energy by Walter Canada for certain shared services provided by Walter Energy to Walter Canada (the “Shared Services Claim”) and a receivable for unpaid interest owed to Walter Energy from Walter Canada in respect of a promissory note (the “Hybrid Debt Claim”). Each of these claims were asserted by the Company in the Walter Canada CCAA proceedings. Walter Energy deemed these receivables to be impaired for the year ended December 31, 2015 and the Company did not assign any value to these receivables in acquisition accounting as collectability was deemed remote. In May 2019, the Company received approximately $17.5 million in settlement proceeds for the Shared Services Claim and Hybrid Debt Claim which is reflected as other income in the Condensed Statement of Operations. Commitments and Contingencies—Other The Company is party to various transportation and throughput agreements with rail and barge transportation providers and the Alabama State Port Authority. These agreements contain annual minimum tonnage guarantees with respect to coal transported from the mine sites to the Port of Mobile, Alabama, the unloading of rail cars or barges, and the loading of vessels. If the Company does not meet its minimum throughput obligations, which are based on annual minimum amounts, it is required to pay the transportation providers or the Alabama State Port Authority a contractually specified amount per metric ton for the difference between the actual throughput and the minimum throughput requirement. At June 30, 2019 and December 31, 2018 , the Company had no liability recorded for minimum throughput requirements. Royalty Obligations A substantial amount of the coal that the Company mines is produced from mineral reserves leased from third-party land owners. These leases convey mining rights to the Company in exchange for royalties to be paid to the land owner as either a fixed amount per ton or as a percentage of the sales price. Although coal leases have varying renewal terms and conditions, they generally last for the economic life of the reserves. Coal royalty expense was $29.3 million and $56.0 million for the three and six months ended June 30, 2019 , respectively, and $23.3 million and $54.2 million for the three and six months ended June 30, 2018 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Pursuant to the Company's certificate of incorporation, the Company is authorized to issue up to 140,000,000 shares of common stock $0.01 , par value per share and 10,000,000 shares of preferred stock $0.01 par value per share. New Stock Repurchase Program On March 26, 2019, the Company's board of directors (the "Board") approved the Company's second stock repurchase program (the “New Stock Repurchase Program”) that authorizes repurchases of up to an aggregate of $70.0 million of the Company's outstanding common stock. The Company fully exhausted its previous stock repurchase program (the "First Stock Repurchase Program") of $40.0 million of its outstanding common stock. The New Stock Repurchase Program does not require the Company to repurchase a specific number of shares or have an expiration date. The New Stock Repurchase Program may be suspended or discontinued by the Board at any time without prior notice. Under the New Stock Repurchase Program, the Company may repurchase shares of its common stock from time to time, in amounts, at prices and at such times as the Company deems appropriate, subject to market and industry conditions, share price, regulatory requirements as determined from time to time by the Company and other considerations. The Company’s repurchases may be executed using open market purchases or privately negotiated transactions in accordance with applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act and repurchases may be executed pursuant to Rule 10b5-1 under the Exchange Act. Repurchases will be subject to limitations in the ABL Facility and the Indenture. The Company intends to fund repurchases under the New Stock Repurchase Program from cash on hand and/or other sources of liquidity. Regular Quarterly Dividend On April 23, 2019, the Board declared a regular quarterly cash dividend of $0.05 per share, totaling approximately $2.6 million , which was paid on May 10, 2019 to stockholders of record as of the close of business on May 3, 2019. April 2019 Special Dividend On April 23, 2019, the Board declared a special cash dividend of $4.41 per share (the "April 2019 Special Dividend"), totaling approximately $230.0 million , which was paid on May 14, 2019 to stockholders of record as of the close of business on May 6, 2019. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company enters into natural gas swap contracts from time to time to hedge the exposure to variability in expected future cash flows associated with the fluctuations in the price of natural gas related to the Company’s forecasted sales. As of June 30, 2019 , the Company had no natural gas swap contracts outstanding. As of December 31, 2018 , the Company had natural gas swap contracts outstanding with notional amounts totaling 2,100 million British thermal units that matured in the first quarter of 2019. The Company’s natural gas swap contracts economically hedge certain risk but are not designated as hedges for financial reporting purposes. All changes in the fair value of these derivative instruments are recorded as other revenues in the Condensed Statements of Operations. The Company records all derivative instruments at fair value and had no liability as of June 30, 2019 and a liability of $0.2 million as of December 31, 2018 included in other current liabilities in the accompanying Condensed Balance Sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company had no assets or any other liabilities measured at fair value on a recurring basis as of June 30, 2019 . The following table presents information about the Company’s financial liabilities measured at fair value on a recurring basis as of December 31, 2018 and indicates the level of the fair value hierarchy utilized to determine such fair value (in thousands): Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Total Liabilities: Natural gas swap contracts $ — $ 178 $ — $ 178 The following methods and assumptions were used to estimate the fair value for which the fair value option was not elected: Cash and cash equivalents, short-term investments, restricted cash, receivables and accounts payable— The carrying amounts reported in the Condensed Balance Sheets approximate fair value due to the short-term nature of these assets and liabilities. Debt— The Company's outstanding debt is carried at cost. As of June 30, 2019 , there were no borrowings outstanding under the ABL Facility, with $116.1 million available, net of outstanding letters of credit of $9.0 million . There were no borrowings outstanding under the ABL Facility and there were $4.6 million of letters of credit issued and outstanding under the ABL Facility as of December 31, 2018 . The estimated fair value of the Notes is approximately $359.7 million |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company identifies a business as an operating segment if: (i) it engages in business activities from which it may earn revenues and incur expenses; (ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess its performance; and (iii) it has available discrete financial information. The Company has determined that its two underground mining operations are its operating segments. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Operating segments are aggregated into a reportable segment if the operating segments have similar quantitative economic characteristics and if the operating segments are similar in the following qualitative characteristics: (i) nature of products and services; (ii) nature of production processes; (iii) type or class of customer for their products and services; (iv) methods used to distribute the products or provide services; and (v) if applicable, the nature of the regulatory environment. The Company has determined that the two operating segments are similar in both quantitative and qualitative characteristics and thus the two operating segments have been aggregated into one reportable segment. The Company has determined that its natural gas and royalty businesses did not meet the criteria in ASC 280 to be considered as operating or reportable segments. Therefore, the Company has included their results in an “all other” category as a reconciling item to consolidated amounts. The Company does not allocate all of its assets, or its depreciation and depletion expense, selling, general and administrative expenses, transactions costs, interest expense, and income tax expense by segment. The following tables include reconciliations of segment information to consolidated amounts (in thousands): For the three months ended For the six months ended June 30, 2019 2018 2019 2018 Revenues Mining $ 387,429 $ 315,045 $ 757,110 $ 727,924 All other 10,184 7,510 18,793 16,419 Total revenues $ 397,613 $ 322,555 $ 775,903 $ 744,343 For the three months ended For the six months ended June 30, 2019 2018 2019 2018 Capital Expenditures Mining 26,879 $ 32,402 $ 50,089 $ 53,498 All other 826 475 2,011 1,921 Total capital expenditures 27,705 $ 32,877 $ 52,100 $ 55,419 The Company evaluates the performance of its segment based on Segment Adjusted EBITDA, which is defined as net income adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative, net interest expense, income tax expense, loss on early extinguishment of debt, other income and certain transactions or adjustments that the CODM does not consider for the purposes of making decisions to allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA does not represent and should not be considered as an alternative to cost of sales under GAAP and may not be comparable to other similarly titled measures used by other companies. Below is a reconciliation of Segment Adjusted EBITDA to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands): For the three months ended For the six months ended June 30, 2019 2018 2019 2018 Segment Adjusted EBITDA $ 182,241 $ 136,502 $ 369,294 $ 358,705 Other revenues 10,184 7,510 18,793 16,419 Cost of other revenues (8,019 ) (7,338 ) (15,764 ) (15,122 ) Depreciation and depletion (25,678 ) (21,127 ) (47,911 ) (45,679 ) Selling, general and administrative (10,783 ) (13,465 ) (19,688 ) (21,699 ) Transaction and other expenses — (986 ) — (4,274 ) Loss on early extinguishment of debt — — (9,756 ) — Other income 17,543 — 17,543 — Interest expense, net (6,951 ) (9,784 ) (15,543 ) (18,344 ) Income tax expense (33,056 ) — (61,040 ) — Net income $ 125,481 $ 91,312 $ 235,928 $ 270,006 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Regular Quarterly Dividend On July 23, 2019, the Board declared a regular quarterly cash dividend of $0.05 per share, totaling approximately $2.6 million , which will be paid on August 9, 2019 to stockholders of record as of the close of business on August 2, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. |
Cash and Cash Equivalents and Restricted Cash | Cash and cash equivalents include short-term deposits and highly liquid investments that have original maturities of three months or less when purchased and are stated at cost, which approximates fair value. As of June 30, 2019 and December 31, 2018 , restricted cash included in other long-term assets in the Condensed Balance Sheets represents amounts invested in certificates of deposits as financial assurance for post mining reclamation obligations. |
Short-Term Investments | Short-Term Investments Instruments with maturities greater than three months, but less than twelve months, are included in short-term investments. The Company purchases United States Treasury ("Treasury") bills with maturities ranging from six to twelve months which are classified as held to maturity and are carried at amortized cost, which approximates fair value. The Company also purchases fixed income securities and certificates of deposits with varying maturities that are classified as available for sale and are carried at fair value. Securities classified as held to maturity are those securities that management has the intent and ability to hold to maturity. |
Revenue Recognition | Revenue Recognition |
New Accounting Pronouncements | New Accounting Pronouncements The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, "Leases (Topic 842)" as of January 1, 2019 using the modified retrospective approach (the "New Leases Standard"). The New Leases Standard requires a lessee to recognize a right-of-use asset and lease liability on its balance sheet for all leases. The Company has chosen to use its adoption date as its date of initial application. As a result, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The Company made an accounting policy election that leases with an initial term of 12 months or less will remain off its balance sheet and lease payments will instead be recognized in the Condensed Statements of Operations on a straight-line basis over the lease term. Additionally, the Company elected the package of practical expedients for all leases, which permits the Company to forego reassessing expired or existing contracts to determine: whether they are or contain leases, lease classification, and initial direct costs. Management elected the optional transition expedient which allows the Company to continue applying the current policy for accounting for expired or existing land easement contracts that may have not been previously accounted for under ASC Topic 840 Leases. New or modified land easements executed after adoption will be considered under the New Lease Standard. The Company elected the practical expedient as an accounting policy election for all asset classifications, which allows it to account for them as a single lease component, rather than as separate lease and non-lease components. As the Company’s historical operating leases are primarily short-term rental agreements of less than one year, the Company did not record any additional lease assets or lease liabilities upon adoption of the New Leases Standard. Therefore, the New Leases Standard did not impact the Company's balance sheet or consolidated net income and had no impact on cash flows upon adoption. As of June 30, 2019 , the Company has a right-of-use asset of $41.5 million , net of accumulated amortization, a short-term financing lease liability of $8.7 million and a long-term financing lease liability of $31.2 million . On August 17, 2018, the SEC adopted a final rule that eliminates or amends certain disclosure requirements that were deemed redundant and outdated in light of changes in SEC requirements, U.S. GAAP or changes in technology or the business environment. The rule also requires registrants to include in their interim financial statements a reconciliation of changes in stockholders’ equity in the notes or as a separate statement. The analysis should reconcile the beginning balance to the ending balance of each caption in shareholders’ equity for each period for which an income statement is required to be filed. The final rule became effective November 5, 2018. The Company has provided a reconciliation for the three and six months ended June 30, 2019 and 2018 in this Form 10-Q. The eliminated or amended disclosures did not have a material impact on the Company’s unaudited condensed financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Balance Sheets that sum to the total of the same such amounts shown in the Condensed Statements of Cash Flows (in thousands): June 30, 2019 December 31, 2018 Cash and cash equivalents $ 119,318 $ 205,577 Restricted cash included in other long-term assets 827 828 Total cash and cash equivalents and restricted cash included in the Condensed Statements of Cash Flows $ 120,145 $ 206,405 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Balance Sheets that sum to the total of the same such amounts shown in the Condensed Statements of Cash Flows (in thousands): June 30, 2019 December 31, 2018 Cash and cash equivalents $ 119,318 $ 205,577 Restricted cash included in other long-term assets 827 828 Total cash and cash equivalents and restricted cash included in the Condensed Statements of Cash Flows $ 120,145 $ 206,405 |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net are summarized as follows (in thousands): June 30, 2019 December 31, 2018 Coal $ 43,907 $ 32,854 Raw materials, parts, supplies and other, net 25,327 23,865 Total inventories, net $ 69,234 $ 56,719 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 Weighted Average Interest Rate at June 30, 2019 Final Maturity Senior Secured Notes $ 343,435 $ 475,000 8% 2024 Promissory note — 760 Debt discount/premium, net (4,581 ) (6,769 ) Total debt 338,854 468,991 Less: current debt — (760 ) Total long-term debt $ 338,854 $ 468,231 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities are summarized as follows (in thousands): June 30, 2019 December 31, 2018 Black lung obligations $ 25,428 $ 25,206 Other 759 5,510 Total other long-term liabilities $ 26,187 $ 30,716 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows (in thousands): June 30, 2019 Finance lease right-of-use assets, net (1) $ 41,473 Finance lease liabilities Current 8,659 Noncurrent 31,166 Total finance lease liabilities $ 39,825 Weighted average remaining lease term - finance leases (in months) 52.3 Weighted average discount rate - finance leases (2) 5.85 % (1) Finance lease right-of-use assets are recorded net of accumulated amortization of $6.4 million as of June 30, 2019 . (2) When an implicit discount rate is not readily available in a lease, the Company uses its incremental borrowing rate based on information available at the commencement date when determining the present value of lease payments. |
Direct Financing Lease, Lease Expense | The components of lease expense were as follows (in thousands): For the three months ended June 30, 2019 For the six months ended June 30, 2019 Operating lease cost (1): $ 63 $ 207 Finance lease cost: Amortization of leased assets 3,421 5,828 Interest on lease liabilities 395 408 Net lease cost $ 3,879 $ 6,443 (1) Includes leases that are for periods of 12 months or less. |
Operating Lease, Lease Expense | The components of lease expense were as follows (in thousands): For the three months ended June 30, 2019 For the six months ended June 30, 2019 Operating lease cost (1): $ 63 $ 207 Finance lease cost: Amortization of leased assets 3,421 5,828 Interest on lease liabilities 395 408 Net lease cost $ 3,879 $ 6,443 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities were as follows (in thousands): Finance Leases (1) 2019 $ 6,495 2020 13,043 2021 8,558 2022 8,558 2023 8,558 Thereafter 842 Total 46,054 Less: amount representing interest (6,229 ) Present value of lease liabilities $ 39,825 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows (in thousands): For the three months ended June 30, 2019 For the six months ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 395 $ 408 Financing cash flows from finance leases $ 5,697 $ 7,654 Non-cash right-of-use assets obtained in exchange for lease obligations: Finance leases $ 38,216 $ 40,302 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net income per share was calculated as follows (in thousands, except per share data): For the three months ended For the six months ended June 30, 2019 2018 2019 2018 Numerator: Net income $ 125,481 $ 91,312 $ 235,928 $ 270,006 Denominator: Weighted-average shares used to compute net income per share—basic 51,553 53,053 51,532 52,976 Dilutive restrictive stock awards 128 26 109 31 Weighted-average shares used to compute net income per share—diluted 51,681 53,079 51,641 53,007 Net income per share—basic and diluted $ 2.43 $ 1.72 $ 4.58 $ 5.10 Net income per share—diluted $ 2.43 $ 1.72 $ 4.57 $ 5.09 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table presents information about the Company’s financial liabilities measured at fair value on a recurring basis as of December 31, 2018 and indicates the level of the fair value hierarchy utilized to determine such fair value (in thousands): Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Total Liabilities: Natural gas swap contracts $ — $ 178 $ — $ 178 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables include reconciliations of segment information to consolidated amounts (in thousands): For the three months ended For the six months ended June 30, 2019 2018 2019 2018 Revenues Mining $ 387,429 $ 315,045 $ 757,110 $ 727,924 All other 10,184 7,510 18,793 16,419 Total revenues $ 397,613 $ 322,555 $ 775,903 $ 744,343 |
Reconciliation of Capital Expenditures from Segments to Consolidated | For the three months ended For the six months ended June 30, 2019 2018 2019 2018 Capital Expenditures Mining 26,879 $ 32,402 $ 50,089 $ 53,498 All other 826 475 2,011 1,921 Total capital expenditures 27,705 $ 32,877 $ 52,100 $ 55,419 |
Reconciliation of Net Income (Loss) from Segments to Consolidated | Below is a reconciliation of Segment Adjusted EBITDA to net income, which is its most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands): For the three months ended For the six months ended June 30, 2019 2018 2019 2018 Segment Adjusted EBITDA $ 182,241 $ 136,502 $ 369,294 $ 358,705 Other revenues 10,184 7,510 18,793 16,419 Cost of other revenues (8,019 ) (7,338 ) (15,764 ) (15,122 ) Depreciation and depletion (25,678 ) (21,127 ) (47,911 ) (45,679 ) Selling, general and administrative (10,783 ) (13,465 ) (19,688 ) (21,699 ) Transaction and other expenses — (986 ) — (4,274 ) Loss on early extinguishment of debt — — (9,756 ) — Other income 17,543 — 17,543 — Interest expense, net (6,951 ) (9,784 ) (15,543 ) (18,344 ) Income tax expense (33,056 ) — (61,040 ) — Net income $ 125,481 $ 91,312 $ 235,928 $ 270,006 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 119,318 | $ 205,577 | ||
Restricted cash included in other long-term assets | 827 | 828 | ||
Total cash and cash equivalents and restricted cash included in the Condensed Statements of Cash Flows | $ 120,145 | $ 206,405 | $ 55,913 | $ 36,264 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Short-Term Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2019 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Short-term investments | $ 17,501 | $ 14,250 |
Treasury bills | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Short-term investments | $ 17,500 | $ 14,300 |
Maturity term for short-term investments | 6 months |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue Recognition (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 14 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018t | |
Concentration Risk [Line Items] | |||||
Percent of total production transferred for title and marketing | 10.00% | ||||
Maximum total production transferred for title and marketing | t | 250,000 | ||||
Other revenues | $ 397,613 | $ 322,555 | $ 775,903 | $ 744,343 | |
XCoal | Customer Concentration Risk | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 17.50% | 13.00% | 21.70% | 19.00% | |
Other revenues | $ 68,100 | $ 42,200 | $ 163,000 | $ 144,900 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Accounting Policies [Abstract] | |
Right-of-use asset | $ 41,473 |
Short term financing lease liabilities | 8,659 |
Long term financing lease liabilities | $ 31,166 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Coal | $ 43,907 | $ 32,854 |
Raw materials, parts, supplies and other, net | 25,327 | 23,865 |
Total inventories, net | $ 69,234 | $ 56,719 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ (33,056,000) | $ 0 | $ (61,040,000) | $ 0 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt discount/premium, net | $ (4,581) | $ (6,769) |
Total debt | 338,854 | 468,991 |
Less: current debt | 0 | (760) |
Total long-term debt | 338,854 | 468,231 |
Senior secured notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 343,435 | 475,000 |
Weighted average interest rate | 8.00% | |
Promissory note | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 760 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Feb. 21, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 25, 2019 | Mar. 22, 2019 | Mar. 01, 2018 | Nov. 02, 2017 |
Debt Instrument [Line Items] | |||||||||
Amount that can be authorized without making an offer to buy back debt | $ 299,401,000 | ||||||||
Loss on early extinguishment of debt | $ 0 | $ 0 | $ 9,756,000 | $ 0 | |||||
Senior secured notes | Senior Secured Notes Due 2024, New Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 125,000,000 | ||||||||
Senior secured notes | Senior Secured Notes Due 2024, Existing Notes, Restricted Payment Offer | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount available for repurchase | $ 150,000,000 | ||||||||
Stated interest rate | 8.00% | ||||||||
Redemption price, percentage | 103.00% | ||||||||
Debt instrument, amount validly tendered and not withdrawn | $ 1,900,000 | ||||||||
Pro-ration factor | 31.5789% | ||||||||
Purchase integrals | $ 1,000 | ||||||||
Senior secured notes | Senior Secured Notes Due 2024, Tendered Notes, Restricted Payment Pro-Rated Offer | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, amount validly tendered and not withdrawn | 599,000 | ||||||||
Debt instrument, amount accepted | 599,000 | ||||||||
Debt instrument, not accepted | 1,301,000 | ||||||||
Senior secured notes | Senior Secured Notes Due 2024, Existing Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 350,000,000 | ||||||||
Stated interest rate | 8.00% | ||||||||
Senior secured notes | Senior Secured Notes Due 2024, Existing Notes, Tender Offer | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum amount available for repurchase | $ 150,000,000 | ||||||||
Redemption price, percentage | 104.25% | ||||||||
Debt instrument, amount validly tendered and not withdrawn | $ 415,099,000 | ||||||||
Pro-ration factor | 31.5789% | ||||||||
Purchase integrals | $ 1,000 | ||||||||
Senior secured notes | Senior Secured Notes Due 2024, Tendered Notes, Tender Offer Pro-Rated Offer | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, amount validly tendered and not withdrawn | 130,966,000 | ||||||||
Debt instrument, amount accepted | 130,966,000 | ||||||||
Debt instrument, not accepted | $ 284,133,000 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Black lung obligations | $ 25,428 | $ 25,206 |
Other | 759 | 5,510 |
Total other long-term liabilities | $ 26,187 | $ 30,716 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lessor, Lease, Description [Line Items] | |
Finance leases that have not yet commenced | $ 1.1 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Finance leases not yet commenced, term | 1 year |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Remaining lease terms | 5 years |
Finance leases not yet commenced, term | 2 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Finance lease right-of-use assets, net(1) | $ 41,473 |
Finance lease liabilities | |
Current | 8,659 |
Noncurrent | 31,166 |
Total finance lease liabilities | $ 39,825 |
Weighted average remaining lease term - finance leases (in months) | 4 years 4 months 9 days |
Weighted average discount rate - finance leases(2) | 5.85% |
Accumulated amortization | $ 6,400 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 63 | $ 207 |
Finance lease cost: | ||
Amortization of leased assets | 3,421 | 5,828 |
Interest on lease liabilities | 395 | 408 |
Net lease cost | $ 3,879 | $ 6,443 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 6,495 |
2020 | 13,043 |
2021 | 8,558 |
2022 | 8,558 |
2023 | 8,558 |
Thereafter | 842 |
Total | 46,054 |
Less: amount representing interest | (6,229) |
Present value of lease liabilities | 39,825 |
Future payments required under signed lease agreements that have not yet commenced | $ 1,100 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating cash flows from finance leases | $ 395 | $ 408 |
Financing cash flows from finance leases | 5,697 | 7,654 |
Non-cash right-of-use assets obtained in exchange for finance lease obligations | $ 38,216 | $ 40,302 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income | $ 125,481 | $ 91,312 | $ 235,928 | $ 270,006 |
Denominator: | ||||
Weighted average number of shares outstanding—basic (in shares) | 51,553 | 53,053 | 51,532 | 52,976 |
Dilutive restrictive stock awards | 128 | 26 | 109 | 31 |
Weighted average number of shares outstanding—diluted (in shares) | 51,681 | 53,079 | 51,641 | 53,007 |
Net income per share—basic and diluted (in dollars per share) | $ 2.43 | $ 1.72 | $ 4.58 | $ 5.10 |
Net income per share—diluted (in dollars per share) | $ 2.43 | $ 1.72 | $ 4.57 | $ 5.09 |
Net Income per Share - Narrativ
Net Income per Share - Narrative (Details) - USD ($) $ in Thousands | Feb. 08, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Class of Stock [Line Items] | |||||
Dilutive awards (in shares) | 128,000 | 26,000 | 109,000 | 31,000 | |
2016 Equity Plan | |||||
Class of Stock [Line Items] | |||||
Dilutive awards (in shares) | 73,363 | 69,190 | |||
Phantom Share Units (PSUs) | 2016 and 2017 Equity Plans | |||||
Class of Stock [Line Items] | |||||
Settlement period | 5 years | ||||
Phantom Share Units (PSUs) | 2016 Equity Plan | |||||
Class of Stock [Line Items] | |||||
Common stock shares contingently issuable (in shares) | 43,580 | ||||
Restricted Stock Units (RSUs) | 2017 Equity Plan | |||||
Class of Stock [Line Items] | |||||
Common stock shares contingently issuable (in shares) | 13,157 | ||||
Restricted Stock Units (RSUs) | 2017 Equity Plan, 2019 Award | |||||
Class of Stock [Line Items] | |||||
Restricted stock unit awards awarded (in shares) | 306,314 | ||||
Stock compensation expense | $ 900 | $ 1,400 | |||
Restricted Stock Units (RSUs) | 2017 Equity Plan, Additional 2019 Award | |||||
Class of Stock [Line Items] | |||||
Stock compensation expense | $ 129 | 214 | |||
Restricted stock unit awards awarded, value | $ 1,500 | ||||
Shares to be issued upon settlement of awards (in shares) | 57,427 | 57,427 | |||
Dilutive awards (in shares) | 10,042 | 7,329 | |||
Service-based RSUs | 2016 Equity Plan | |||||
Class of Stock [Line Items] | |||||
RSUs excluded from computation of earnings per share (in shares) | 98,216 | ||||
Service-based RSUs | 2017 Equity Plan | |||||
Class of Stock [Line Items] | |||||
RSUs excluded from computation of earnings per share (in shares) | 160,903 | ||||
Dilutive awards (in shares) | 43,770 | 32,732 | |||
Service-based RSUs | 2017 Equity Plan, 2019 Award | |||||
Class of Stock [Line Items] | |||||
Vesting period | 3 years | ||||
Performance and market-based RSUs | 2017 Equity Plan | |||||
Class of Stock [Line Items] | |||||
RSUs excluded from computation of earnings per share (in shares) | 272,953 | ||||
Performance and market-based RSUs | 2017 Equity Plan, 2019 Award | |||||
Class of Stock [Line Items] | |||||
Vesting period | 3 years |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 05, 2015 | |
Black Warrior Methane (BWM) | |||||
Related Party Transaction [Line Items] | |||||
Proportionate consolidation method, ownership percentage | 50.00% | ||||
Black Warrior Transmission (BWT) | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | ||||
Allocated Expenses to Joint Venture | Corporate Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | $ 0.4 | $ 0.7 | $ 0.5 | $ 1.5 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Settlement proceeds | $ 17,500,000 | |||||
Throughput obligation | $ 0 | $ 0 | $ 0 | |||
Coal royalty expense | $ 29,300,000 | $ 23,300,000 | $ 56,000,000 | $ 54,200,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 23, 2019 | Jun. 30, 2019 | Mar. 26, 2019 | Dec. 31, 2018 | May 02, 2018 | Apr. 12, 2017 |
Class of Stock [Line Items] | ||||||
Common stock shares authorized (in shares) | 140,000,000 | 140,000,000 | 140,000,000 | |||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Dividends declared (in dollars per share) | $ 0.05 | |||||
Regular quarterly cash dividend | $ 2.6 | |||||
Special cash dividend (in dollars per share) | $ 4.41 | |||||
Special cash dividend | $ 230 | |||||
New Stock Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Authorized amount of stock to be repurchased, value | $ 70 | |||||
First Stock Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Authorized amount of stock to be repurchased, value | $ 40 |
Derivative Instruments (Details
Derivative Instruments (Details) - Not Designated as Hedging Instrument - Natural gas swap contracts | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)BTU | Dec. 31, 2018USD ($)BTU | |
Commodity Contract, Maturity Q4 2018 | ||
Derivative [Line Items] | ||
Derivative energy measure (in BTUs) | BTU | 0 | 2,100,000,000 |
Commodity Contract | ||
Derivative [Line Items] | ||
Natural gas swap contracts, current liability | $ | $ 0 | $ 200,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 338,854,000 | $ 468,231,000 |
Letters of credit outstanding | 9,000,000 | 0 |
Fair Value, Measurements, Recurring | Commodity Contract | Natural gas swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Natural gas swap contracts, asset | 178,000 | |
Fair Value, Measurements, Recurring | Commodity Contract | Natural gas swap contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Natural gas swap contracts, asset | 0 | |
Fair Value, Measurements, Recurring | Commodity Contract | Natural gas swap contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Natural gas swap contracts, asset | 178,000 | |
Fair Value, Measurements, Recurring | Commodity Contract | Natural gas swap contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Natural gas swap contracts, asset | 0 | |
ABL Facility | Revolving credit facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount of borrowings available | 116,100,000 | |
Senior Secured Notes Due 2024, Existing Notes | Senior secured notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | |
Senior Secured Notes Due 2024, Existing Notes | Senior secured notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt instrument | $ 359,700,000 | |
Revolving credit facility | Citibank | Letter of Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Letters of credit issued and outstanding | $ 4,600,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 1 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 397,613 | $ 322,555 | $ 775,903 | $ 744,343 |
Mining | Mining | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 387,429 | 315,045 | 757,110 | 727,924 |
All other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 10,184 | $ 7,510 | 18,793 | $ 16,419 |
All other | Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 10,184 | $ 18,793 |
Segment Information - Reconci_2
Segment Information - Reconciliation of Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | $ 27,705 | $ 32,877 | $ 52,100 | $ 55,419 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 826 | 475 | 2,011 | 1,921 |
Mining | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | $ 26,879 | $ 32,402 | $ 50,089 | $ 53,498 |
Segment Information - Reconci_3
Segment Information - Reconciliation of Net Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Segment Adjusted EBITDA | $ 182,241,000 | $ 136,502,000 | $ 369,294,000 | $ 358,705,000 |
Other revenues | 397,613,000 | 322,555,000 | 775,903,000 | 744,343,000 |
Cost of other revenues | (8,019,000) | (7,338,000) | (15,764,000) | (15,122,000) |
Depreciation and depletion | (25,678,000) | (21,127,000) | (47,911,000) | (45,679,000) |
Selling, general and administrative | (10,783,000) | (13,465,000) | (19,688,000) | (21,699,000) |
Transaction and other expenses | 0 | (986,000) | 0 | (4,274,000) |
Loss on early extinguishment of debt | 0 | 0 | (9,756,000) | 0 |
Other income | 17,543,000 | 0 | 17,543,000 | 0 |
Interest expense, net | (6,951,000) | (9,784,000) | (15,543,000) | (18,344,000) |
Income tax expense | (33,056,000) | 0 | (61,040,000) | 0 |
Net income | 125,481,000 | 91,312,000 | 235,928,000 | 270,006,000 |
Other revenues | ||||
Revenue from External Customer [Line Items] | ||||
Other revenues | $ 10,184,000 | $ 7,510,000 | $ 18,793,000 | $ 16,419,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 23, 2019 | Apr. 23, 2019 |
Subsequent Event [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.05 | |
Regular quarterly cash dividend | $ 2.6 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.05 | |
Regular quarterly cash dividend | $ 2.6 |