Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 06, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HALLADOR ENERGY COMPANY | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Public Float | $ 100,000,000 | ||
Entity Common Stock, Shares Outstanding | 29,251,219 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Trading Symbol | HNRG | ||
Amendment Flag | false | ||
Entity Central Index Key | 788,965 | ||
Entity Filer Category | Accelerated Filer | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 15,930 | $ 13,469 |
Marketable securities | 1,343 | 1,656 |
Accounts receivable | 16,675 | 27,297 |
Prepaid income taxes | 5,312 | 5,791 |
Coal inventory | 14,915 | 19,722 |
Parts and supply inventory | 11,255 | 14,919 |
Other | 1,185 | 1,555 |
Total current assets | 66,615 | 84,409 |
Coal properties, at cost: | ||
Land and mineral rights | 116,209 | 118,053 |
Buildings and equipment | 347,963 | 321,730 |
Mine development | 131,027 | 124,435 |
Total coal properities, at cost | 595,199 | 564,218 |
Less - accumulated DD&A | (149,964) | (106,608) |
Total coal properties, net | 445,235 | 457,610 |
Other assets (Note 8) | 16,528 | 18,849 |
Total assets | 545,490 | 579,585 |
Current liabilities: | ||
Current portion of bank debt | 26,250 | 21,875 |
Accounts payable and accrued liabilities | 26,184 | 28,105 |
Total current liabilities | 52,434 | 49,980 |
Long-term liabilities: | ||
Bank debt | 223,220 | 284,470 |
Deferred income taxes | 49,033 | 41,581 |
Asset retirement obligations | 12,231 | 12,074 |
Other | 1,752 | 1,605 |
Total long-term liabilities | 286,236 | 339,730 |
Total liabilities | $ 338,670 | $ 389,710 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.10 par value, 10,000 shares authorized; none issued | ||
Common stock, $.01 par value, 100,000 shares authorized; 29,251 and 28,962 shares outstanding, respectively | $ 292 | $ 289 |
Additional paid-in capital | 92,275 | 90,218 |
Retained earnings | 114,341 | 99,003 |
Accumulated other comprehensive income (loss) | (88) | 365 |
Total stockholders' equity | 206,820 | 189,875 |
Total liabilities and stockholders' equity | 545,490 | 579,585 |
Savoy [Member] | ||
Current assets: | ||
Total current assets | 11,795 | 14,863 |
Coal properties, at cost: | ||
Investment in subsidiaries | 12,365 | 13,896 |
Other assets (Note 8) | 1,015 | 852 |
Total assets | 34,469 | 43,264 |
Long-term liabilities: | ||
Total liabilities | 4,909 | 10,079 |
Stockholders' equity: | ||
Total liabilities and stockholders' equity | 34,469 | 43,264 |
Sunrise Energy [Member] | ||
Current assets: | ||
Total current assets | 2,217 | 3,580 |
Coal properties, at cost: | ||
Investment in subsidiaries | 4,747 | 4,821 |
Total assets | 10,198 | 10,710 |
Long-term liabilities: | ||
Total liabilities | 716 | 1,080 |
Stockholders' equity: | ||
Total liabilities and stockholders' equity | $ 10,198 | $ 10,710 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, issued | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock,par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, outstanding | 29,251,000 | 28,962,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenue: | ||||
Coal sales | $ 339,490 | $ 233,902 | $ 137,436 | |
Equity income | (1,606) | 5,520 | 6,456 | |
Liability entinguishment (Note 10) | 4,300 | |||
Other (Note 8) | 2,236 | 1,749 | 5,678 | |
Revenue | 340,120 | 241,171 | 153,870 | |
Costs and expenses: | ||||
Operating costs and expenses | 237,897 | 169,691 | 94,111 | |
DD&A | 43,942 | 29,262 | 18,585 | |
Coal exploration costs | 2,039 | 2,362 | 2,360 | |
SG&A | 12,617 | 12,039 | 7,669 | |
Interest | [1] | 16,055 | 9,059 | 1,547 |
Acquisition deal costs (Note 2) | 8,057 | |||
Costs and expenses | 312,550 | 230,470 | 124,272 | |
Income before income taxes | 27,570 | 10,701 | 29,598 | |
Less income taxes: | ||||
Current | (14) | 2,205 | (266) | |
Deferred | 7,452 | (1,723) | 7,441 | |
Income taxes | 7,438 | 482 | 7,175 | |
Net income | [2] | $ 20,132 | $ 10,219 | $ 22,423 |
Net income per share: (Note 11) | ||||
Basic and diluted (in Dollars per share) | $ 0.68 | $ 0.34 | $ 0.78 | |
Weighted average shares outstanding: | ||||
Basic and diluted (in Shares) | 29,031 | 28,776 | 28,595 | |
Deferred financing costs | $ 1,000 | |||
Interest expense on net change in estimated fair value of interest rate swaps | $ 159 | 658 | ||
Savoy [Member] | ||||
Revenue: | ||||
Equity income | (1,532) | 5,272 | $ 5,827 | |
Revenue | 13,075 | 41,583 | 42,248 | |
Costs and expenses: | ||||
Costs and expenses | 16,824 | 29,354 | 29,322 | |
Less income taxes: | ||||
Net income | (3,749) | 12,229 | 12,926 | |
Sunrise Energy [Member] | ||||
Revenue: | ||||
Equity income | (74) | 248 | 629 | |
Revenue | 2,284 | 3,203 | 3,399 | |
Costs and expenses: | ||||
Costs and expenses | 2,432 | 2,707 | 2,141 | |
Less income taxes: | ||||
Net income | $ (148) | $ 496 | $ 1,258 | |
[1] | Included in interest expense is the change in the estimated fair value of our interest rate swaps. Such amounts were $159 and $658 for 2015 and 2014, respectively. 2014 also includes $1 million for expensing deferred financing costs relating to our old credit agreement. | |||
[2] | *There is no material difference between net income and comprehensive income. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Operating activities: | ||||
Net income | [1] | $ 20,132 | $ 10,219 | $ 22,423 |
Liability extinguishment | (4,300) | |||
Deferred income taxes | 7,452 | (1,723) | 7,441 | |
Equity (income) loss | 1,606 | (5,520) | (6,456) | |
Cash distributions | 8,109 | 1,325 | ||
DD&A | 43,942 | 29,262 | 18,585 | |
Change in fair value of interest rate swaps | 159 | 658 | ||
Amortization and write off deferred financing costs | 1,394 | 1,572 | 299 | |
Accretion of ARO | 498 | 534 | 182 | |
Share-based compensation | 3,134 | 3,220 | 2,155 | |
Taxes paid on vesting of RSUs | (1,029) | (1,067) | (780) | |
Change in current assets and liabilities: | ||||
Accounts receivable | 10,627 | (324) | (2,394) | |
Coal inventory | 4,807 | 6,540 | (2,436) | |
Parts and supply inventory | 3,664 | 1,083 | (562) | |
Income taxes | 448 | (160) | (6,814) | |
Accounts payable and accrued liabilities | (1,686) | 1,409 | 1,130 | |
Other | (492) | 2,054 | (2,617) | |
Cash provided by operating activities | 94,656 | 55,866 | 27,181 | |
Investing activities: | ||||
Capital expenditures for coal properties | (31,167) | (25,835) | (31,392) | |
Acquisition | (311,453) | |||
Other | 641 | (2,573) | ||
Cash used in investing activities | (30,526) | (337,288) | (33,965) | |
Financing activities: | ||||
Payments on bank debt | (56,875) | (59,655) | ||
Bank borrowings | 350,000 | 4,600 | ||
Deferred financing costs | (6,884) | |||
Dividends | (4,794) | (4,798) | (3,476) | |
Cash (used in) provided by financing activities | (61,669) | 278,663 | 1,124 | |
Increase (decrease) in cash and cash equivalents | 2,461 | (2,759) | (5,660) | |
Cash and cash equivalents, beginning of year | 13,469 | 16,228 | 21,888 | |
Cash and cash equivalents, end of year | 15,930 | 13,469 | 16,228 | |
Cash paid for interest | 14,149 | 5,008 | 1,028 | |
Cash paid for income taxes | 2,334 | 6,045 | ||
Cash received for income taxes, net | (291) | |||
Increase in ARO | 6,550 | 2,535 | ||
Capital expenditures included in accounts payable | $ 804 | $ 748 | $ 84 | |
[1] | *There is no material difference between net income and comprehensive income. |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | [1] | Total | |
Balance at Dec. 31, 2012 | $ 285 | $ 86,576 | $ 75,118 | $ 30 | $ 162,009 | ||
Balance (in Shares) at Dec. 31, 2012 | 28,529 | ||||||
Adjustment - see Note 1 | (483) | (483) | |||||
Stock-based compensation | 2,155 | 2,155 | |||||
Stock-based compensation (in Shares) | 13 | ||||||
Stock issued on vesting of RSUs | $ 2 | 2 | |||||
Stock issued on vesting of RSUs (in Shares) | 316 | ||||||
Taxes paid on vesting of RSUs | (780) | (780) | |||||
Taxes paid on vesting of RSUs (in Shares) | (107) | ||||||
Dividends | (3,476) | (3,476) | |||||
Net income | 22,423 | 22,423 | [2] | ||||
Other | (79) | 349 | 270 | ||||
Balance at Dec. 31, 2013 | $ 287 | 87,872 | 93,582 | 379 | 182,120 | ||
Balance (in Shares) at Dec. 31, 2013 | 28,751 | ||||||
Stock-based compensation | 3,220 | 3,220 | |||||
Stock-based compensation (in Shares) | 7 | ||||||
Stock issued on vesting of RSUs | $ 2 | 2 | |||||
Stock issued on vesting of RSUs (in Shares) | 310 | ||||||
Taxes paid on vesting of RSUs | (1,067) | (1,067) | |||||
Taxes paid on vesting of RSUs (in Shares) | (106) | ||||||
Dividends | (4,798) | (4,798) | |||||
Net income | 10,219 | 10,219 | [2] | ||||
Other | 193 | (14) | 179 | ||||
Balance at Dec. 31, 2014 | $ 289 | 90,218 | 99,003 | 365 | 189,875 | ||
Balance (in Shares) at Dec. 31, 2014 | 28,962 | ||||||
Stock-based compensation | 3,134 | 3,134 | |||||
Stock-based compensation (in Shares) | 14 | ||||||
Stock issued on vesting of RSUs | $ 3 | 3 | |||||
Stock issued on vesting of RSUs (in Shares) | 411 | ||||||
Taxes paid on vesting of RSUs | (1,029) | (1,029) | |||||
Taxes paid on vesting of RSUs (in Shares) | (136) | ||||||
Dividends | (4,794) | (4,794) | |||||
Net income | 20,132 | 20,132 | [2] | ||||
Other | (48) | (453) | (501) | ||||
Balance at Dec. 31, 2015 | $ 292 | $ 92,275 | $ 114,341 | $ (88) | $ 206,820 | ||
Balance (in Shares) at Dec. 31, 2015 | 29,251 | ||||||
[1] | Accumulated Other Comprehensive Income (loss) | ||||||
[2] | *There is no material difference between net income and comprehensive income. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Basis of Presentation and Consolidation The consolidated financial statements include the accounts of Hallador Energy Company (the Company) and its wholly owned subsidiary Sunrise Coal, LLC (Sunrise) and Sunrise’s wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. We are engaged in the production of steam coal from mines located in western Indiana. We own a 40% equity interest in Savoy Energy, L.P., a private oil and gas company that has operations in Michigan and a 50% interest in Sunrise Energy, LLC, a private entity engaged in natgas operations in the same vicinity as the Carlisle mine. Reclassification To maintain consistency and comparability, certain amounts in the financial statements have been reclassified to conform to current year presentation. Inventories Coal and supplies inventories are valued at the lower of average cost or market. Coal inventory costs include labor, supplies, equipment costs (including depreciation thereto) and overhead. Advance Royalties Coal leases that require minimum annual or advance payments and are recoverable from future production are generally deferred and charged to expense as the coal is subsequently produced. Coal Properties Coal properties are recorded at cost. Interest costs applicable to major asset additions are capitalized during the construction period. Expenditures that extend the useful lives or increase the productivity of the assets are capitalized. The cost of maintenance and repairs that do not extend the useful lives or increase the productivity of the assets are expensed as incurred. Other than land and mining equipment, coal properties are depreciated using the units-of-production method over the estimated recoverable reserves. Surface and underground mining equipment is depreciated using estimated useful lives ranging from three to twenty-five years. If facts and circumstances suggest that a long-lived asset may be impaired, the carrying value is reviewed for recoverability. If this review indicates that the carrying value of the asset will not be recoverable through estimated undiscounted future net cash flows related to the asset over its remaining life, then an impairment loss is recognized by reducing the carrying value of the asset to its estimated fair value. Mine Development Costs of developing new coal mines, including asset retirement obligation assets, or significantly expanding the capacity of existing mines, are capitalized and amortized using the units-of-production method over estimated recoverable reserves. Asset Retirement Obligations (ARO) - Reclamation At the time they are incurred, legal obligations associated with the retirement of long-lived assets are reflected at their estimated fair value, with a corresponding charge to mine development. Obligations are typically incurred when we commence development of underground and surface mines, and include reclamation of support facilities, refuse areas and slurry ponds. Obligations are reflected at the present value of their future cash flows. We reflect accretion of the obligations for the period from the date they are incurred through the date they are extinguished. The asset retirement obligation assets are amortized using the units-of-production method over estimated recoverable (proved and probable) reserves. We are using discount rates ranging from 5.5% to 10% . Federal and state laws require that mines be reclaimed in accordance with specific standards and approved reclamation plans, as outlined in mining permits. Activities include reclamation of pit and support acreage at surface mines, sealing portals at underground mines, and reclamation of refuse areas and slurry ponds. We assess our ARO at least annually and reflect revisions for permit changes, changes in our estimated reclamation costs and changes in the estimated timing of such costs. The table below (in thousands) reflects the changes to our ARO: 2015 2014 Balance, beginning of year $ 12,074 $ 5,290 Accretion 498 534 Vectren acquisition 6,550 Additions Other (341) (300) Balance, end of year $ 12,231 $ 12,074 Statement of Cash Flows Cash equivalents include investments with maturities when purchased of three months or less. Income Taxes Income taxes are provided based on the liability method of accounting. The provision for income taxes is based on pretax financial income. Deferred tax assets and liabilities are recognized for the future expected tax consequences of temporary differences between income tax and financial reporting and principally relate to differences in the tax basis of assets and liabilities and their reported amounts, using enacted tax rates in effect for the year in which differences are expected to reverse. Net Income per Share Basic net income per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include restricted stock units and are included in basic net income per share. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates. The most significant estimates included in the preparation of the financial statements relate to: (i) fair value estimates relating to business combinations, (ii) deferred income tax accounts, (iii) coal reserves, and (iv) estimates used in our impairment analysis. Derivatives We recognize at fair value all contracts meeting the definition of a derivative as assets or liabilities in the consolidated balance sheets, with the exception of our coal contracts for which we elected to apply a normal purchases and normal sales exception. Changes in fair value are recognized into income. Business Combinations We account for business combinations using the purchase method of accounting. The purchase method requires us to determine the fair value of all acquired assets, including identifiable intangible assets and all assumed liabilities. The total cost of acquisitions is allocated to the underlying identifiable net assets, based on their respective estimated fair values. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and the utilization of independent valuation experts, and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates and asset lives, among other items. Revenue Recognition We recognize revenue from coal sales at the time risk of loss passes to the customer at contracted amounts and amounts are deemed collectible. Long-term Contracts As of December 31, 2015, we are committed to supply to our customers a maximum of 32 million tons of coal through 2024 of which 14 million tons are priced. Our four largest customers in 2015 were IPL, NIPSCO, Vectren, and Hoosier. We derived 82% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. For 2014, our four largest customers were IPL, Vectren, Hoosier, and Duke. We derived 71% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. For 2013, our four largest customers were IPL, Hoosier, Duke, and JP Morgan. We derived 94% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. We are paid every two to four weeks and do not expect any credit losses. Stock-based Compensation Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the applicable vesting period of the stock award (generally two to four years) using the straight-line method. New Accounting Pronouncements None of the recent FASB pronouncements will have any material effect on us. Subsequent Events We have evaluated all subsequent events through the date the financial statements were issued. No material recognized or non-recognizable subsequent events were identified. |
Vectren Fuels Acquisition
Vectren Fuels Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Vectren Fuels Acquisition [Abstract] | |
Vectren Fuels Acquisition | ( 2) Vectren Fuels Acquisition On August 29, 2014, we consummated the acquisition of all the common stock of Vectren Fuels, Inc. (VFI) for $311 million, which was accounted for as a business acquisition requiring measurement of acquired assets and assumed liabilities at their estimated fair value in applying purchase accounting . The estimated fair values are based on market participant assumptions . |
Asset Realization
Asset Realization | 12 Months Ended |
Dec. 31, 2015 | |
Asset Realization [Abstract] | |
Asset Realization | (3) Asset Realization The Carlisle assets had an aggregate carrying value of $139 million at December 31 , 2015. Considering the modifications to our coal contracts and the reduction in force as discussed in the MD&A section, we conducted review of those assets for recoverability, and determined that no impairment charge was necessary. In conducting such review, we assumed (i) that natgas prices will start to increase in late 2017 ; (ii) Carlisle production will increase in 2018-2019 , and (iii) sometime in 2020, the Carlisle Mine will return to its normal production capacity of 3.3 million tons per year. If, in later quarters, we reduce our estimate of the future net cash flows attributable to the Carlisle Mine, it may result in future impairment of such assets and such charges would be significant. |
Bank Debt
Bank Debt | 12 Months Ended |
Dec. 31, 2015 | |
Bank Debt [Abstract] | |
Bank Debt | (4 ) Bank Debt To finance the August 2014 Vectren Fuels acquisition we entered into a credit agreement with PNC Bank as administrative agent for a group of several other banks. The credit agreement allows for a $250 million revolver and a $175 million term loan . Our debt at December 31, 2015 was $249 million (term- $139 , revolver- $110) . The credit facility is collateralized by substantially all of Sunrise’s assets and we are the guarantor. Bank fees and other costs incurred in connection with this new facility were about $6.9 million, which were deferred and are being amortized over five years. Currently, all borrowings under the credit agreement bear interest at LIBOR ( 43 bps at December 31, 2015 ) plus 3.5% . We entered into swap agreements to fix the LIBOR component of the interest rate to achieve an effective fixed rate of no greater than 5% on 100% ( $175 million) of the term loan and on $100 million of the revolver. The revolver swaps step down 10% each quarter commencing March 31, 2016 . At December 31, 2015, these two interest rate swaps had an estimated net fair value liability of $.8 million consisting of a long-term asset of $.4 million and a current liability of $1.2 million. Such amounts are included in other long-term assets and accounts payable and accrued liabilities, respectively. The credit agreement also imposes certain other customary restrictions and covenants as well as certain milestones we must meet in order to draw down the full amount. Any non-tax cash distributions from Savoy are required to be applied toward the debt . There are two key ratio covenants stated in our credit agreement: (i) a minimum fixed charge coverage ratio of 1.25 to 1 and (ii) a maximum leverage ratio (funded debt/EBITDA) not to exceed 2.75 to 1. At December 31, 2015, our minimum fixed charge ratio was 1.42 and our leverage ratio was 2.67 . Therefore, we were in compliance with these two r atios. Due to our reduction in coal sales , we anticipate to be in non-compliance with these two ratios sometime in 2016. We are in discussions with our bank group and expect to execute an amendment to our current credit facility that will keep us in compliance through the maturity of the credit agreement . The credit agreement matures on August 29, 2019 , but we have the right to prepay the loan at any time without penalty. Future Maturities (in thousands): 2016 $ 26,250 2017 30,625 2018 35,000 2019 157,595 Total $ 249,470 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | ( 5 ) Income Taxes (in thousands) Our income tax is different than the expected amount computed using the applicable federal and state statutory income tax rates. The reasons for and effects of such differences for the years ended December 31 are below: 2015 2014 2013 Expected amount $ 9,653 $ 3,745 $ 10,359 Change in Indiana rate (85 ) (1,407 ) State income taxes, net of federal benefit 612 186 877 Percentage depletion (2,606 ) (1,996 ) (3,826 ) Stock-based compensation 343 Captive insurance (419 ) (419 ) (419 ) Other 283 30 184 $ 7,438 $ 482 $ 7,175 The deferred tax assets and liabilities resulting from temporary differences between book and tax basis are comprised of the following at December 31: 2015 2014 Long-term deferred tax assets: Stock-based compensation $ 458 $ 347 Investment in Savoy 827 1,227 Oil and gas properties (15,711 ) (2,234 ) Net operating loss 7,583 Alternative minimum tax credit 4,388 4,043 Other 18 Net long-term deferred tax assets (2,437 ) 3,383 Long-term deferred tax liabilities: Coal properties (46,596 ) (44,964 ) Net deferred tax liability $ 49,033 $ 41,581 We have analyzed our filing positions in all of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. We identified our federal tax return and our Indiana state tax return as “major” tax jurisdictions. During 2012, the IRS completed an examination of our 2009 and 2010 federal tax returns and there were no significant adjustments. During 2012, the State of Indiana completed their examination of our 2008-2010 returns and no adjustments were proposed. We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our consolidated financial position . |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Stock Compensation Plans [Abstract] | |
Stock Compensation Plans | (6 ) Stock Compensation Plans Restricted Stock Units (RSUs) Non-vested grants at January 1, 2013 481,500 Granted – Stock Price was $8.14 on grant date 4,000 Vested (315,500 ) Forfeited (6,000 ) Non-vested grants at December 31, 2013 164,000 Granted – Weighted average stock price was $8.29 on grant date 1,195,500 Vested (310,000 ) Forfeited (7,500 ) Non-vested grants at December 31, 2014 1,042,000 Granted - Stock Price was $11.52 on grant date 2,000 Vested (410,500 ) Forfeited (27,000 ) Non-vested grants at December 31, 2015 (1) 606,500 __________________________________________________ (1) 180,000 vest in 2016, 424,500 vest in 2017 and 2,000 vest in 2018. At December 31, 2015 we have 1,418,723 RSUs available for future issuance. On the vesting dates, the shares had a value of $3.0 million for 2015, $3.1 million for 2014 and $2.3 million for 2013. Under our RSU plan, participants are allowed to relinquish shares to pay for their required minimum statutory income taxes. The outstanding RSUs have a value of $3.2 million based on the March 9, 2016 closing stock price of $5.31 . For the years ended December 31, 2015, 2014 and 2013 stock based compensation was $3.1 million, $3.2 million, and $2.2 million , respectively . For 2016, based on existing RSUs outstanding, stock-based compensation expense will be $2.3 million. Stock Bonus Plan Our stock bonus plan was authorized in late 2009 with 250,000 shares. Currently, we have 86,384 shares left in such plan. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits [Abstract] | |
Employee Benefits | ( 7 ) Employee Benefits We have no defined benefit pension plans or any post-retirement benefit plans. We offer our employees a 401(k) Plan, where we match 100% of the first 4% that an employee contributes, a bonus plan based on meeting certain production levels and a discretionary Deferred Bonus Plan for certain key employees. We also offer health benefits to all employees and their families . We have 2,376 participants in our employee health plan. The plan does not cover dental, vision, short-term or long-term disability. These coverages are available on a voluntary basis. We bear some of the risk of our employee health plans. Our health claims are capped at $200,000 per person with a maximum annual exposure of $15 million not including premiums. EMPLOYEE BENEFIT PLANS (in thousands) 2015 2014 2013 Health b enefits , including premiums $ 13,400 $ 8,100 $ 4,100 401(k) m atching 2,267 815 700 Deferred b onus p lan 445 406 467 Production b onus p lan (discontinued September 1, 2014) 373 582 Total $ 16,112 $ 9,694 $ 5,849 Our mine employees are also covered by workers’ compensation and such costs for 2015, 2014 and 2013 were about $4.6 million , $2.8 million and $1.3 million, respectively. Workers’ compensation is a no-fault system by which individuals who sustain work related injuries or occupational diseases are compensated. Benefits and coverage are mandated by each state which includes disability ratings, medical claims, rehabilitation services, and death and survivor benefits. Our operations are protected from these perils through insurance policies. Our maximum annual exposure is limited to $1 million per occurrence with a $4 million aggregate deductible. Based on discussions and representations from our insurance carrier , we believe that our reserve for our workers’ compensation benefits is adequate. We have a safety conscious workforce and our worker’s compensation injuries have been minimal. |
Other Long-Term Assets and Othe
Other Long-Term Assets and Other Income | 12 Months Ended |
Dec. 31, 2015 | |
Other Long Term Assets And Other Income [Abstract] | |
Other Long Term Assets And Other Income | (8 ) Other Long-Term Assets and Other Income 2015 2014 Long-term assets: Advance coal royalties $ 6,563 $ 5,496 Deferred financing costs, net 5,112 6,507 Marketable equity securities available for sale, at fair value (restricted)* 1,763 2,249 Other 3,090 4,597 $ 16,528 $ 18,849 * Held by Sunrise Indemnity, Inc., our wholly owned captive insurance company. Other income: 2015 2014 2013 MSHA reimbursements** $ $ $ 3,672 Coal storage fees 600 383 1,238 Miscellaneous 1,636 1,366 768 $ 2,236 $ 1,749 $ 5,678 **See “MSHA Reimbursements” in the MD&A section for a discussion of these amounts . |
Self Insurance
Self Insurance | 12 Months Ended |
Dec. 31, 2015 | |
Self Insurance [Abstract] | |
Self Insurance | ( 9 ) Self Insurance In late August 2010 we decided to terminate the property insurance on our underground mining equipment. Such equipment is allocated among 10 mining units spread out over 20 miles. The historical cost of such equipment is about $250 million. |
Liability Extinguishment
Liability Extinguishment | 12 Months Ended |
Dec. 31, 2015 | |
Liability Extinguishment [Abstract] | |
Liability Extinguishment | (10 ) Liability Extinguishment During the 2013 second quarter we concluded that an approximate $4.3 million liability we recorded during 2006 upon the purchase of Sunrise Coal relating to a terminated coal contract was no longer required. The amount had no effect on cash flows. |
Net Income per Share
Net Income per Share | 12 Months Ended |
Dec. 31, 2015 | |
Net Income per Share [Abstract] | |
Net Income per Share | (11 ) Net Income per Share We compute net income per share using the two-class method, which is an allocation formula that determines net income per share for common stock and participating securities, which for us are our outstanding RSUs. The following table sets forth the computation of net income per share for 2015 and 2014. The adjustments for 2013 were not significant (in thousands, except per share amounts): 2015 2014 Numerator: Net income $ 20,132 $ 10,219 Less earnings allocated to RSUs (450) (375) Net income allocated to common shareholders $ 19,682 $ 9,844 Denominator: Weighted average number of common shares outstanding 29,031 28,776 Net income per share: Basic and diluted $ 0.68 $ 0.34 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (12 ) Fair Value Measurements We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We consider active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Our marketable securities are Level 1 instruments. Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. We have no Level 2 instruments. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Our Level 3 instruments are comprised of interest rate swaps. The fair values of our swaps were estimated using discounted cash flow calculations based upon forward interest-rate yield curves. Although we utilize third party broker quotes to assess the reasonableness of our prices and valuation, we do not have sufficient corroborating market evidence to support classifying these liabilities as Level 2. The purchase price allocation for the acquisition of VFI was determined using Level 3 measurements. Mobile mining equipment was valued via the market approach. Fixed equipment and mine development was valued via the cost approach using direct and indirect (trending) methods. The mineral reserves and ARO were valued via a discounted future cash flow model. |
Equity Investment in Sunrise En
Equity Investment in Sunrise Energy | 12 Months Ended |
Dec. 31, 2015 | |
Sunrise Energy [Member] | |
Equity Investment | (13 ) Equity Investment in Sunrise Energy We own a 50% interest in Sunrise Energy, LLC, which owns gas reserves and gathering equipment with plans to develop and operate such reserves. Sunrise Energy also plans to develop and explore for oil, gas and coal-bed methane gas reserves on or near our underground coal reserves. They use the successful efforts method of accounting. We account for our interest using the equity method of accounting. Below (in thousands) to the 100% is a condensed balanc e sheet at December 31, for two years and a condensed s tatement of operations for three years. Condensed Balance Sheet 2015 2014 Current assets $ 2,217 $ 3,580 Oil and gas properties, net 7,981 7,130 $ 10,198 $ 10,710 Total liabilities $ 716 $ 1,080 Members’ capital 9,482 9,630 $ 10,198 $ 10,710 Condensed Statement of Operations 2015 2014 2013 Revenue $ 2,284 $ 3,203 $ 3,399 Expenses (2,432 ) (2,707 ) (2,141 ) Net income (loss) $ (148 ) $ 496 $ 1,258 |
Equity Investment in Savoy
Equity Investment in Savoy | 12 Months Ended |
Dec. 31, 2015 | |
Savoy [Member] | |
Equity Investment | (14 ) Equity Investment in Savoy We currently own a 40% interest in Savoy Energy, L.P., a private company engaged in the oil and gas business primarily in the state of Michigan. Savoy uses the successful efforts method of accounting. Our 45% ownership was decreased to 40% on October 1, 2014 due to the exercise of options by Savoy’s management. We account for our interest using the equity method of accounting. Below (in thousands) to the 100% is a condensed balance sheet at December 31, for two years and a condensed s tatement of operations for three years. Condensed Balance Sheet 2015 2014 Current assets $ 11,795 $ 14,863 Oil and gas properties, net 21,659 27,549 Other 1,015 852 $ 34,469 $ 43,264 Total liabilities $ 4,909 $ 10,079 Partners' capital 29,560 33,185 $ 34,469 $ 43,264 Condensed Statement of Operations 2015 2014 2013 Revenue $ 13,075 $ 41,583 $ 42,248 Expenses (16,824 ) (29,354 ) (29,322 ) Net income (loss) $ (3,749 ) $ 12,229 $ 12,926 Savoy made a $12 million cash distribution in early October 2014; our share was $4.9 million; such amount was applied toward our bank debt as required under our credit agreement. Savoy recorded to the 100% a $2.6 million impairment charge in the 4 th quarter of 2015. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | ( 15 ) Quarterly Financial Data (Unaudited) Summarized quarterly financial data is as follows: Three Months Ended March 31 June 30 September 30 December 31 (In thousands , except per share data) 2015: Revenue $ 98,001 $ 95,253 $ 82,013 $ 64,853 Operating income 16,459 12,631 10,986 3,549 Net income 7,591 6,853 5,144 544 Basic income per common share $ 0.25 $ 0.23 $ 0.17 $ 0.02 2014: Revenue $ 35,767 $ 38,460 $ 66,322 $ 100,622 Operating income 5,167 3,907 3,528 15,215 Net income (loss) 3,526 3,068 (5,768 ) * 9,393 Basic income (loss) per common share $ 0.12 $ 0.10 $ (0.20 ) $ 0.31 ______________________________ * Includes $8.9 million related to Vectren deal costs. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The consolidated financial statements include the accounts of Hallador Energy Company (the Company) and its wholly owned subsidiary Sunrise Coal, LLC (Sunrise) and Sunrise’s wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. We are engaged in the production of steam coal from mines located in western Indiana. We own a 40% equity interest in Savoy Energy, L.P., a private oil and gas company that has operations in Michigan and a 50% interest in Sunrise Energy, LLC, a private entity engaged in natgas operations in the same vicinity as the Carlisle mine. |
Reclassification | Reclassification To maintain consistency and comparability, certain amounts in the financial statements have been reclassified to conform to current year presentation. |
Inventories | Inventories Coal and supplies inventories are valued at the lower of average cost or market. Coal inventory costs include labor, supplies, equipment costs (including depreciation thereto) and overhead. |
Advance Royalties | Advance Royalties Coal leases that require minimum annual or advance payments and are recoverable from future production are generally deferred and charged to expense as the coal is subsequently produced. |
Coal Properties | Coal Properties Coal properties are recorded at cost. Interest costs applicable to major asset additions are capitalized during the construction period. Expenditures that extend the useful lives or increase the productivity of the assets are capitalized. The cost of maintenance and repairs that do not extend the useful lives or increase the productivity of the assets are expensed as incurred. Other than land and mining equipment, coal properties are depreciated using the units-of-production method over the estimated recoverable reserves. Surface and underground mining equipment is depreciated using estimated useful lives ranging from three to twenty-five years. If facts and circumstances suggest that a long-lived asset may be impaired, the carrying value is reviewed for recoverability. If this review indicates that the carrying value of the asset will not be recoverable through estimated undiscounted future net cash flows related to the asset over its remaining life, then an impairment loss is recognized by reducing the carrying value of the asset to its estimated fair value. |
Mine Development | Mine Development Costs of developing new coal mines, including asset retirement obligation assets, or significantly expanding the capacity of existing mines, are capitalized and amortized using the units-of-production method over estimated recoverable reserves. |
Asset Retirement Obligations (ARO) - Reclamation | Asset Retirement Obligations (ARO) - Reclamation At the time they are incurred, legal obligations associated with the retirement of long-lived assets are reflected at their estimated fair value, with a corresponding charge to mine development. Obligations are typically incurred when we commence development of underground and surface mines, and include reclamation of support facilities, refuse areas and slurry ponds. Obligations are reflected at the present value of their future cash flows. We reflect accretion of the obligations for the period from the date they are incurred through the date they are extinguished. The asset retirement obligation assets are amortized using the units-of-production method over estimated recoverable (proved and probable) reserves. We are using discount rates ranging from 5.5% to 10% . Federal and state laws require that mines be reclaimed in accordance with specific standards and approved reclamation plans, as outlined in mining permits. Activities include reclamation of pit and support acreage at surface mines, sealing portals at underground mines, and reclamation of refuse areas and slurry ponds. We assess our ARO at least annually and reflect revisions for permit changes, changes in our estimated reclamation costs and changes in the estimated timing of such costs. The table below (in thousands) reflects the changes to our ARO: 2015 2014 Balance, beginning of year $ 12,074 $ 5,290 Accretion 498 534 Vectren acquisition 6,550 Additions Other (341) (300) Balance, end of year $ 12,231 $ 12,074 |
Statement of Cash Flows | Statement of Cash Flows Cash equivalents include investments with maturities when purchased of three months or less. |
Income Taxes | Income Taxes Income taxes are provided based on the liability method of accounting. The provision for income taxes is based on pretax financial income. Deferred tax assets and liabilities are recognized for the future expected tax consequences of temporary differences between income tax and financial reporting and principally relate to differences in the tax basis of assets and liabilities and their reported amounts, using enacted tax rates in effect for the year in which differences are expected to reverse. |
Net Income per Share | Net Income per Share Basic net income per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include restricted stock units and are included in basic net income per share. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates. The most significant estimates included in the preparation of the financial statements relate to: (i) fair value estimates relating to business combinations, (ii) deferred income tax accounts, (iii) coal reserves, and (iv) estimates used in our impairment analysis. |
Derivatives | Derivatives We recognize at fair value all contracts meeting the definition of a derivative as assets or liabilities in the consolidated balance sheets, with the exception of our coal contracts for which we elected to apply a normal purchases and normal sales exception. Changes in fair value are recognized into income. |
Business Combinations | Business Combinations We account for business combinations using the purchase method of accounting. The purchase method requires us to determine the fair value of all acquired assets, including identifiable intangible assets and all assumed liabilities. The total cost of acquisitions is allocated to the underlying identifiable net assets, based on their respective estimated fair values. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and the utilization of independent valuation experts, and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates and asset lives, among other items. |
Revenue Recognition | Revenue Recognition We recognize revenue from coal sales at the time risk of loss passes to the customer at contracted amounts and amounts are deemed collectible. |
Long-term Contracts | Long-term Contracts As of December 31, 2015, we are committed to supply to our customers a maximum of 32 million tons of coal through 2024 of which 14 million tons are priced. Our four largest customers in 2015 were IPL, NIPSCO, Vectren, and Hoosier. We derived 82% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. For 2014, our four largest customers were IPL, Vectren, Hoosier, and Duke. We derived 71% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. For 2013, our four largest customers were IPL, Hoosier, Duke, and JP Morgan. We derived 94% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. We are paid every two to four weeks and do not expect any credit losses. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the applicable vesting period of the stock award (generally two to four years) using the straight-line method. |
New Accounting Pronouncements | New Accounting Pronouncements None of the recent FASB pronouncements will have any material effect on us. |
Subsequent Events | Subsequent Events We have evaluated all subsequent events through the date the financial statements were issued. No material recognized or non-recognizable subsequent events were identified. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Asset Retirement Obligations | The table below (in thousands) reflects the changes to our ARO: 2015 2014 Balance, beginning of year $ 12,074 $ 5,290 Accretion 498 534 Vectren acquisition 6,550 Additions Other (341) (300) Balance, end of year $ 12,231 $ 12,074 |
Bank Debt (Tables)
Bank Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Bank Debt [Abstract] | |
Schedule of Future Maturities | Future Maturities (in thousands): 2016 $ 26,250 2017 30,625 2018 35,000 2019 157,595 Total $ 249,470 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Expected Income Tax | Our income tax is different than the expected amount computed using the applicable federal and state statutory income tax rates. The reasons for and effects of such differences for the years ended December 31 are below: 2015 2014 2013 Expected amount $ 9,653 $ 3,745 $ 10,359 Change in Indiana rate (85 ) (1,407 ) State income taxes, net of federal benefit 612 186 877 Percentage depletion (2,606 ) (1,996 ) (3,826 ) Stock-based compensation 343 Captive insurance (419 ) (419 ) (419 ) Other 283 30 184 $ 7,438 $ 482 $ 7,175 |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities resulting from temporary differences between book and tax basis are comprised of the following at December 31: 2015 2014 Long-term deferred tax assets: Stock-based compensation $ 458 $ 347 Investment in Savoy 827 1,227 Oil and gas properties (15,711 ) (2,234 ) Net operating loss 7,583 Alternative minimum tax credit 4,388 4,043 Other 18 Net long-term deferred tax assets (2,437 ) 3,383 Long-term deferred tax liabilities: Coal properties (46,596 ) (44,964 ) Net deferred tax liability $ 49,033 $ 41,581 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Compensation Plans [Abstract] | |
Schedule of Restricted Stock Units | Restricted Stock Units (RSUs) Non-vested grants at January 1, 2013 481,500 Granted – Stock Price was $8.14 on grant date 4,000 Vested (315,500 ) Forfeited (6,000 ) Non-vested grants at December 31, 2013 164,000 Granted – Weighted average stock price was $8.29 on grant date 1,195,500 Vested (310,000 ) Forfeited (7,500 ) Non-vested grants at December 31, 2014 1,042,000 Granted - Stock Price was $11.52 on grant date 2,000 Vested (410,500 ) Forfeited (27,000 ) Non-vested grants at December 31, 2015 (1) 606,500 __________________________________________________ (1) 180,000 vest in 2016, 424,500 vest in 2017 and 2,000 vest in 2018. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS (in thousands) 2015 2014 2013 Health b enefits , including premiums $ 13,400 $ 8,100 $ 4,100 401(k) m atching 2,267 815 700 Deferred b onus p lan 445 406 467 Production b onus p lan (discontinued September 1, 2014) 373 582 Total $ 16,112 $ 9,694 $ 5,849 |
Other Long-Term Assets and Ot28
Other Long-Term Assets and Other Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Long Term Assets And Other Income [Abstract] | |
Schedule of Long-Term Assets | 2015 2014 Long-term assets: Advance coal royalties $ 6,563 $ 5,496 Deferred financing costs, net 5,112 6,507 Marketable equity securities available for sale, at fair value (restricted)* 1,763 2,249 Other 3,090 4,597 $ 16,528 $ 18,849 * Held by Sunrise Indemnity, Inc., our wholly owned captive insurance company. |
Schedule of Other Income | Other income: 2015 2014 2013 MSHA reimbursements** $ $ $ 3,672 Coal storage fees 600 383 1,238 Miscellaneous 1,636 1,366 768 $ 2,236 $ 1,749 $ 5,678 **See “MSHA Reimbursements” in the MD&A section for a discussion of these amounts |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net Income per Share [Abstract] | |
Computation of Earnings per Share | The adjustments for 2013 were not significant (in thousands, except per share amounts): 2015 2014 Numerator: Net income $ 20,132 $ 10,219 Less earnings allocated to RSUs (450) (375) Net income allocated to common shareholders $ 19,682 $ 9,844 Denominator: Weighted average number of common shares outstanding 29,031 28,776 Net income per share: Basic and diluted $ 0.68 $ 0.34 |
Equity Investment in Sunrise 30
Equity Investment in Sunrise Energy (Tables) - Sunrise Energy [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Balance Sheet | Condensed Balance Sheet 2015 2014 Current assets $ 2,217 $ 3,580 Oil and gas properties, net 7,981 7,130 $ 10,198 $ 10,710 Total liabilities $ 716 $ 1,080 Members’ capital 9,482 9,630 $ 10,198 $ 10,710 |
Condensed Statement of Operations | Condensed Statement of Operations 2015 2014 2013 Revenue $ 2,284 $ 3,203 $ 3,399 Expenses (2,432 ) (2,707 ) (2,141 ) Net income (loss) $ (148 ) $ 496 $ 1,258 |
Equity Investment in Savoy (Tab
Equity Investment in Savoy (Tables) - Savoy [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Balance Sheet | Condensed Balance Sheet 2015 2014 Current assets $ 11,795 $ 14,863 Oil and gas properties, net 21,659 27,549 Other 1,015 852 $ 34,469 $ 43,264 Total liabilities $ 4,909 $ 10,079 Partners' capital 29,560 33,185 $ 34,469 $ 43,264 |
Condensed Statement of Operations | Condensed Statement of Operations 2015 2014 2013 Revenue $ 13,075 $ 41,583 $ 42,248 Expenses (16,824 ) (29,354 ) (29,322 ) Net income (loss) $ (3,749 ) $ 12,229 $ 12,926 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Financial Data | Three Months Ended March 31 June 30 September 30 December 31 (In thousands , except per share data) 2015: Revenue $ 98,001 $ 95,253 $ 82,013 $ 64,853 Operating income 16,459 12,631 10,986 3,549 Net income 7,591 6,853 5,144 544 Basic income per common share $ 0.25 $ 0.23 $ 0.17 $ 0.02 2014: Revenue $ 35,767 $ 38,460 $ 66,322 $ 100,622 Operating income 5,167 3,907 3,528 15,215 Net income (loss) 3,526 3,068 (5,768 ) * 9,393 Basic income (loss) per common share $ 0.12 $ 0.10 $ (0.20 ) $ 0.31 ______________________________ * Includes $8.9 million related to Vectren deal costs. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands, T in Millions | 12 Months Ended | |||
Dec. 31, 2015T | Dec. 31, 2014 | Dec. 31, 2013USD ($) | Sep. 30, 2014 | |
Revenue, Major Customer [Line Items] | ||||
Error correction amount | $ | $ 483 | |||
Sales Revenue, Goods, Net [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenue from four largest customers | 82.00% | 71.00% | 94.00% | |
Coal Supply Commitment [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Coal supply commitment | 32 | |||
Year that supply commitments end | 2,024 | |||
Priced coal supply commitment | 14 | |||
Savoy [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Equity method investment ownership percentage | 40.00% | 45.00% | ||
Sunrise Energy [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Equity method investment ownership percentage | 50.00% | |||
Minimum [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Discount rate | 5.50% | |||
Estimated useful lives | P3Y | |||
Maximum [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Discount rate | 10.00% | |||
Estimated useful lives | P25Y |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Changes to ARO) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | |||
Balance beginning of year | $ 12,074 | $ 5,290 | |
Accretion | $ 498 | 534 | $ 182 |
Acquistion | $ 6,550 | ||
Additions | |||
Other | $ (341) | $ (300) | |
Balance end of year | $ 12,231 | $ 12,074 | $ 5,290 |
Vectren Fuels Acquisition (Narr
Vectren Fuels Acquisition (Narrative) (Details) - USD ($) $ in Thousands | Aug. 29, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||||||||||
Revenues | $ 64,853 | $ 82,013 | $ 95,253 | $ 98,001 | $ 100,622 | $ 66,322 | $ 38,460 | $ 35,767 | $ 340,120 | $ 241,171 | $ 153,870 | |
Income before income taxes | $ 27,570 | 10,701 | $ 29,598 | |||||||||
Business acquisition purchase price | $ 311,453 | |||||||||||
Vectren Fuels [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition purchase price | $ 311,000 |
Asset Realization (Narrative) (
Asset Realization (Narrative) (Details) - Carlisle Assets [Member] $ in Thousands, T in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)T | |
Impairment Effects on Earnings Per Share [Line Items] | |
Mine carring value | $ 139,000 |
Asset impairment charge | $ 0 |
Asset impairment assumption, normal production capacity per year | T | 3.3 |
Bank Debt (Narrative) (Details)
Bank Debt (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015USD ($)agreement | |
Debt Instrument [Line Items] | |
Credit agreement, amount outstanding | $ 249,000,000 |
Fixed charge coverage ratio | 142.00% |
Leverage ratio | 267.00% |
Number of interest rate swaps | agreement | 2 |
Fair value (liability) of interest rate swaps | $ (800,000) |
Fair value of long term asset | 400,000 |
Fair value of current liability | $ 1,200,000 |
Debt maturity date | Aug. 29, 2019 |
PNC Bank [Member] | |
Debt Instrument [Line Items] | |
Closing costs of debt | $ 6,900,000 |
Loan initiation amortization period | 5 years |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Fixed charge coverage ratio | 125.00% |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage ratio | 275.00% |
London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Debt, interest rate spread on variable rate | 3.50% |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit agreement, amount outstanding | $ 110,000,000 |
Revolving Credit Facility [Member] | PNC Bank [Member] | |
Debt Instrument [Line Items] | |
Credit facility, maximum borrowing capacity | 250,000,000 |
Term Loan [Member] | |
Debt Instrument [Line Items] | |
Credit agreement, amount outstanding | 139,000,000 |
Term Loan [Member] | PNC Bank [Member] | |
Debt Instrument [Line Items] | |
Debt face amount | $ 175,000,000 |
Sunrise Coal [Member] | PNC Bank [Member] | |
Debt Instrument [Line Items] | |
Percentage decrease in amount of debt with maximum interest rate per quarter after commencement date | 10.00% |
Date that the percentage of debt with a maximum interest rate begins to decrease quarterly | Mar. 31, 2016 |
Sunrise Coal [Member] | Maximum [Member] | PNC Bank [Member] | |
Debt Instrument [Line Items] | |
Interest rate maximum | 5.00% |
Sunrise Coal [Member] | Revolving Credit Facility [Member] | PNC Bank [Member] | |
Debt Instrument [Line Items] | |
Amount of debt with maximum interest rate | $ 100,000,000 |
Sunrise Coal [Member] | Term Loan [Member] | PNC Bank [Member] | |
Debt Instrument [Line Items] | |
Amount of debt with maximum interest rate | $ 175,000,000 |
Bank Debt (Schedule of Future M
Bank Debt (Schedule of Future Maturities) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Bank Debt [Abstract] | |
2,016 | $ 26,250 |
2,017 | 30,625 |
2,018 | 35,000 |
2,019 | 157,595 |
Total | $ 249,470 |
Income Taxes (Expected Income T
Income Taxes (Expected Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Expected amount | $ 9,653 | $ 3,745 | $ 10,359 |
Change in Indiana rate | (85) | (1,407) | |
State income taxes, net of federal benefit | 612 | 186 | 877 |
Percentage depletion | (2,606) | (1,996) | (3,826) |
Stock-based compensation | 343 | ||
Captive insurance | (419) | (419) | (419) |
Other | 283 | 30 | 184 |
Total tax expected | $ 7,438 | $ 482 | $ 7,175 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Stock-based compensation | $ 458 | $ 347 |
Investment | 827 | 1,227 |
Oil and gas properties | (15,711) | (2,234) |
Net operating loss | 7,583 | |
Alternative minimum tax credit | 4,388 | 4,043 |
Other | 18 | |
Net long-term deferred tax assets | (2,437) | 3,383 |
Coal properties | (46,596) | (44,964) |
Net deferred tax liability | $ 49,033 | $ 41,581 |
Stock Compensation Plans (Narra
Stock Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share price (in dollars per share) | $ 11.52 | $ 8.29 | $ 8.14 | |
Restricted stock units expected to vest or lapse within twelve months | 180,000 | |||
Restricted stock units expected to vest or lapse in year two | 424,500 | |||
Restricted stock units expected to vest or lapse in year three | 2,000 | |||
Share-based compensation | $ 3,134 | $ 3,220 | $ 2,155 | |
Stock bonus plan shares authorized | 86,384 | 250,000 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU available for future issuance | 1,418,723 | |||
Units outstanding value | $ 3,200 | |||
Share price (in dollars per share) | $ 5.31 | |||
Value of units vested in the period | $ 3,000 | $ 3,100 | $ 2,300 | |
Expected share based compensation expense | $ 2,300 |
Stock Compensation Plans (Sched
Stock Compensation Plans (Schedule of Restricted Stock Units) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock price on grant date | $ 11.52 | $ 8.29 | $ 8.14 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-vested grants, beginning balance | 1,042,000 | 164,000 | 481,500 | |
Granted | 2,000 | 1,195,500 | 4,000 | |
Vested | (410,500) | (310,000) | (315,500) | |
Forfeited | (27,000) | (7,500) | (6,000) | |
Non-vested grants, ending balance | 606,500 | [1] | 1,042,000 | 164,000 |
Stock price on grant date | $ 5.31 | |||
[1] | 180,000 vest in 2016, 424,500 vest in 2017 and 2,000 vest in 2018. |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)employee | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Employee Benefits [Abstract] | |||
Employer matching contribution, percent of employees' pay | 100.00% | ||
Maximum annual contribution per employee, percent | 4.00% | ||
Participants in employee health plan | employee | 2,376 | ||
Health care cap per person | $ 200,000 | ||
Insured capped maximum exposure health care | 15,000,000 | ||
Workers' compensation liability | 4,600,000 | $ 2,800,000 | $ 1,300,000 |
Insured maximum exposure per employee | 1,000,000 | ||
Aggragate insurance deductable for employees | $ 4,000,000 |
Employee Benefits (Employee Ben
Employee Benefits (Employee Benefit Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit costs | $ 16,112 | $ 9,694 | $ 5,849 |
401(k) Matching [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
401(k) matching | 2,267 | 815 | 700 |
Deferred Bonus Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Bonus plan costs | 445 | 406 | 467 |
Production Bonus Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Bonus plan costs | 373 | 582 | |
Health Benefits, Including Premiums [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health benefits, including premiums | $ 13,400 | $ 8,100 | $ 4,100 |
Other Long-Term Assets and Ot45
Other Long-Term Assets and Other Income (Schedule of Other Long-Term Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term assets: | |||
Advance coal royalties | $ 6,563 | $ 5,496 | |
Deferred financing costs, net | 5,112 | 6,507 | |
Marketable equity securities available for sale, at fair value (restricted) | [1] | 1,763 | 2,249 |
Other | 3,090 | 4,597 | |
Other noncurrent assets total | $ 16,528 | $ 18,849 | |
[1] | Held by Sunrise Indemnity, Inc., our wholly owned captive insurance company. |
Other Long-Term Assets and Ot46
Other Long-Term Assets and Other Income (Schedule of Other Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other income: | ||||
MSHA reimbursements | [1] | $ 3,672 | ||
Coal storage fees | $ 600 | $ 383 | 1,238 | |
Miscellaneous | 1,636 | 1,366 | 768 | |
Other income | $ 2,236 | $ 1,749 | $ 5,678 | |
[1] | See “MSHA Reimbursements” in the MD&A section for a discussion of these amounts. |
Self Insurance (Details)
Self Insurance (Details) $ in Millions | Dec. 31, 2015itemmi | Aug. 31, 2010USD ($) |
Property, Plant and Equipment [Line Items] | ||
Area of self-insured mining units | mi | 20 | |
Mining equipment at historical cost | $ | $ 250 | |
High Efficiency Units [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Number of mining units with self-insured equipment | item | 10 |
Liability Extinguishment (Narra
Liability Extinguishment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Dec. 31, 2013 | |
Liability Extinguishment [Abstract] | ||
Liability extinguishment | $ 4,300 | $ 4,300 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Net Income per Share [Abstract] | |||||||||||||||
Net income | $ 544 | $ 5,144 | $ 6,853 | $ 7,591 | $ 9,393 | $ (5,768) | $ 3,068 | $ 3,526 | $ 20,132 | [2] | $ 10,219 | [2] | $ 22,423 | [2] | |
Less: earnings allocated to RSUs | (450) | (375) | |||||||||||||
Net income (loss) available to common shareholders | $ 19,682 | $ 9,844 | |||||||||||||
Weighted average number of common shares outstanding | 29,031 | 28,776 | 28,595 | ||||||||||||
Basic and diluted | $ 0.68 | $ 0.34 | $ 0.78 | ||||||||||||
[1] | Includes $8.9 million related to Vectren deal costs. | ||||||||||||||
[2] | *There is no material difference between net income and comprehensive income. |
Equity Investment in Sunrise 50
Equity Investment in Sunrise Energy (Narrative) (Details) | Dec. 31, 2015 |
Sunrise Energy [Member] | |
Equity method investment ownership percentage | 50.00% |
Equity Investment in Sunrise 51
Equity Investment in Sunrise Energy (Condensed Balance Sheet - Sunrise) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | $ 66,615 | $ 84,409 |
Total assets | 545,490 | 579,585 |
Total liabilities | 338,670 | 389,710 |
Total liabilities and stockholders' equity | 545,490 | 579,585 |
Sunrise Energy [Member] | ||
Current assets | 2,217 | 3,580 |
Oil and gas properties, net | 7,981 | 7,130 |
Total assets | 10,198 | 10,710 |
Total liabilities | 716 | 1,080 |
Members' capital | 9,482 | 9,630 |
Total liabilities and stockholders' equity | $ 10,198 | $ 10,710 |
Equity Investment in Sunrise 52
Equity Investment in Sunrise Energy (Condensed Statement of Operations - Sunrise) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Revenue | $ 64,853 | $ 82,013 | $ 95,253 | $ 98,001 | $ 100,622 | $ 66,322 | $ 38,460 | $ 35,767 | $ 340,120 | $ 241,171 | $ 153,870 | ||||
Expenses | (312,550) | (230,470) | (124,272) | ||||||||||||
Net income | $ 544 | $ 5,144 | $ 6,853 | $ 7,591 | $ 9,393 | $ (5,768) | [1] | $ 3,068 | $ 3,526 | 20,132 | [2] | 10,219 | [2] | 22,423 | [2] |
Sunrise Energy [Member] | |||||||||||||||
Revenue | 2,284 | 3,203 | 3,399 | ||||||||||||
Expenses | (2,432) | (2,707) | (2,141) | ||||||||||||
Net income | $ (148) | $ 496 | $ 1,258 | ||||||||||||
[1] | Includes $8.9 million related to Vectren deal costs. | ||||||||||||||
[2] | *There is no material difference between net income and comprehensive income. |
Equity Investment in Savoy (Nar
Equity Investment in Savoy (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |
Cash distributions | $ 4,900 | $ 8,109 | $ 1,325 | ||
Savoy [Member] | |||||
Equity method investment ownership percentage | 40.00% | 45.00% | |||
Cash distributions paid | $ 12,000 | ||||
Asset impairment charge | $ 2,600 |
Equity Investment in Savoy (Con
Equity Investment in Savoy (Condensed Balance Sheet - Savoy) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | $ 66,615 | $ 84,409 |
Other | 16,528 | 18,849 |
Total assets | 545,490 | 579,585 |
Total liabilities | 338,670 | 389,710 |
Total liabilities and stockholders' equity | 545,490 | 579,585 |
Savoy [Member] | ||
Current assets | 11,795 | 14,863 |
Oil and gas properties, net | 21,659 | 27,549 |
Other | 1,015 | 852 |
Total assets | 34,469 | 43,264 |
Total liabilities | 4,909 | 10,079 |
Partners' capital | 29,560 | 33,185 |
Total liabilities and stockholders' equity | $ 34,469 | $ 43,264 |
Equity Investment in Savoy (C55
Equity Investment in Savoy (Condensed Statement of Operations - Savoy) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Revenue | $ 64,853 | $ 82,013 | $ 95,253 | $ 98,001 | $ 100,622 | $ 66,322 | $ 38,460 | $ 35,767 | $ 340,120 | $ 241,171 | $ 153,870 | ||||
Expenses | (312,550) | (230,470) | (124,272) | ||||||||||||
Net income | $ 544 | $ 5,144 | $ 6,853 | $ 7,591 | $ 9,393 | $ (5,768) | [1] | $ 3,068 | $ 3,526 | 20,132 | [2] | 10,219 | [2] | 22,423 | [2] |
Savoy [Member] | |||||||||||||||
Revenue | 13,075 | 41,583 | 42,248 | ||||||||||||
Expenses | (16,824) | (29,354) | (29,322) | ||||||||||||
Net income | $ (3,749) | $ 12,229 | $ 12,926 | ||||||||||||
[1] | Includes $8.9 million related to Vectren deal costs. | ||||||||||||||
[2] | *There is no material difference between net income and comprehensive income. |
Quarterly Financial Data (Summa
Quarterly Financial Data (Summary of Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Quarterly Financial Data [Abstract] | |||||||||||||||
Revenue | $ 64,853 | $ 82,013 | $ 95,253 | $ 98,001 | $ 100,622 | $ 66,322 | $ 38,460 | $ 35,767 | $ 340,120 | $ 241,171 | $ 153,870 | ||||
Operating income | 3,549 | 10,986 | 12,631 | 16,459 | 15,215 | 3,528 | 3,907 | 5,167 | |||||||
Net income (loss) | $ 544 | $ 5,144 | $ 6,853 | $ 7,591 | $ 9,393 | $ (5,768) | [1] | $ 3,068 | $ 3,526 | $ 20,132 | [2] | 10,219 | [2] | $ 22,423 | [2] |
Basic income per common share | $ 0.02 | $ 0.17 | $ 0.23 | $ 0.25 | $ 0.31 | $ (0.20) | $ 0.10 | $ 0.12 | |||||||
Acquisition deal costs | $ 8,900 | $ 8,057 | |||||||||||||
[1] | Includes $8.9 million related to Vectren deal costs. | ||||||||||||||
[2] | *There is no material difference between net income and comprehensive income. |