Royal Energy Resources (ROYE) 10-Q 14 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 04, 2018
Document And Entity Information
Entity Registrant Name	Royal Energy Resources, Inc.
Entity Central Index Key	1,102,392
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		18,579,293
Trading Symbol	ROYE
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 6,268	$ 10,834
Restricted cash, net of long-term	3,728	7,116
Accounts receivable	17,170	20,386
Inventories	12,753	12,860
Investment in available for sale securities	10,786	11,165
Advance royalties, current portion	286	495
Prepaid expenses and other assets	2,294	2,703
Total current assets	53,285	65,559
PROPERTY, PLANT AND EQUIPMENT:
Coal properties, mine development and construction costs	247,380	236,466
Less accumulated depreciation, depletion and amortization	(52,226)	(44,696)
Net property, plant and equipment	195,154	191,770
Advance royalties, net of current portion	8,104	7,901
Investment in unconsolidated affiliates	130	130
Other non-current assets	34,185	33,778
Non-current assets held for sale	1,800	1,800
TOTAL ASSETS	292,658	300,938
CURRENT LIABILITIES
Accounts payable	14,870	9,328
Accrued expenses and other	13,109	12,617
Accrued distributions	300	6,038
Notes payable - related party	514	514
Current portion of long-term debt	4,169	5,475
Current portion of asset retirement obligations	498	498
Related party advances and accrued interest payable	37	34
Total current liabilities	33,497	34,504
NON-CURRENT LIABILITIES:
Long-term debt, net	27,650	31,073
Deferred tax liability, net	30,129	30,692
Asset retirement obligations, net of current portion	15,795	15,496
Other non-current liabilities	42,790	42,718
Total non-current liabilities	116,364	119,979
Total liabilities	149,861	154,483
STOCKHOLDERS' EQUITY
Preferred stock: $0.00001 par value; authorized 5,000,000 shares; 51,000 issued and outstanding at March 31, 2018 and December 31, 2017
Common stock: $0.00001 par value; authorized 25,000,000 shares; 18,579,293 shares issued and 17,664,496 outstanding at March 31, 2018 and 18,079,293 shares issued and 17,164,496 shares outstanding at December 31, 2017, respectively	1	1
Additional paid-in capital	47,965	46,315
Treasury stock	(4,176)	(4,176)
Accumulated other comprehensive income	2,073	1,442
Accumulated earnings	75,142	78,670
Total stockholders’ equity owned by common shareholders	121,005	122,252
Non-controlling interest	21,792	24,203
Total stockholders' equity	142,797	146,455
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 292,658	$ 300,938

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	51,000	51,000
Preferred stock, shares outstanding	51,000	51,000
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	18,579,293	18,079,293
Common stock, shares outstanding	17,664,496	17,164,496

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
REVENUES:
Coal sales	$ 54,272	$ 51,255
Other revenue	581	290
Total revenues	54,853	51,545
COSTS AND EXPENSES:
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below)	49,514	43,120
Freight and handling costs	904	595
Depreciation, depletion and amortization	7,536	21,305
Selling, general and administrative expense (exclusive of depreciation, depletion and amortization shown separately above)	4,901	3,383
Loss on sale/disposal of assets, net	55	1
Total costs and expenses	62,910	68,404
LOSS FROM OPERATIONS	(8,057)	(16,859)
INTEREST AND OTHER EXPENSE/(INCOME:)
Interest expense	2,059	1,218
Interest income	(7)	(1)
(Gain) on sale of marketable securities	(2,906)
(Gain) on bargain purchase		(171,151)
Other (income)/expense	(6)	4
Total other expense/(income)	(860)	(169,930)
NET INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX	(7,197)	153,071
Income tax (provision) benefit	773	(44,560)
NET INCOME/(LOSS) FROM CONTINUING OPERATIONS	(6,424)	108,511
INCOME/(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX		(1,294)
NET INCOME/(LOSS)	(6,424)	107,217
Less net income/(loss) attributable to non-controlling interest	(3,196)	16,201
Preferred distribution on subsidiary	(300)	(1,117)
Net Income/(Loss) attributable to Company’s Stockholders	$ (3,528)	$ 89,899
Net income (loss) per share, basic and diluted
Continuing operations	$ (0.18)	$ 5.29
Discontinued operations		(0.10)
Net income (loss) per share, basic and diluted	$ (0.18)	$ 5.19
Weighted average shares outstanding, basic and diluted	17,497,829	17,207,883

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
NET INCOME/(LOSS)	$ (6,424)	$ 107,217
Less net income/(loss) attributable to non-controlling interest	(3,196)	16,201
OTHER COMPREHENSIVE INCOME (LOSS):
Fair market value adjustment for available-for-sale investment, net of tax benefit ($573 and $0, respectively)	3,609	1,466
Reclass for disposition, net of tax expense ($362 and $0, respectively)	(2,282)
Less other comprehensive earnings attributable to non-controlling interest	696	663
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMPANY’S STOCKHOLDERS	$ (2,597)	$ 91,819

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net of income tax expense (benefit)	$ 773	$ (44,560)
Available for Sale Investment [Member]
Net of income tax expense (benefit)	573	0
Reclass For Disposition [Member]
Net of income tax expense (benefit)	$ 362	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (6,424)	$ 107,217
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred tax provision (benefit)	(773)	44,031
Depreciation, depletion and amortization	7,536	23,139
Accretion on asset retirement obligations	318	466
Amortization of advance royalties	185	251
Amortization of debt issuance costs	516	341
Loss on retirement of advance royalties	108	136
(Gain) loss on sale/disposal of assets—net	55	1
(Gain) on sale of marketable securities	(2,906)
(Gain) on bargain purchase		(171,151)	$ (168,400)
Equity in net loss of unconsolidated affiliates		4
Equity-based compensation	1,650
Accrued interest expense-related party	3	3
Changes in assets and liabilities:
Accounts receivable	3,217	(6,002)
Inventories	107	(878)
Advance royalties	(287)	(774)
Prepaid expenses and other assets	409	175
Other long-term assets	(7)
Accounts payable	3,741	2,146
Accrued expenses and other liabilities	(1,082)	1,797
Other liabilities	1,245
Asset retirement obligations	(19)	(34)
Net cash provided by operating activities	7,592	866
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from business disposal		450
Proceeds from sale of Mammoth shares	4,823
Additions to property, plant, and equipment	(9,179)	(6,585)
Proceeds from sales of property, plant, and equipment	3	2
Net cash used in investing activities	(4,353)	(6,133)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of debt issuance costs	(56)
Borrowings on line of credit		33,300
Repayments on line of credit		(28,500)
Repayments on financing agreement	(5,100)
Proceeds from related party loans		2,075
Repayments on related party loans		(2,000)
Proceeds from issuance of common stock		370
Deposit for worker’s compensation program	(5,209)
Preferred distributions paid	(6,038)
Net cash provided by (used in) financing activities	(16,403)	5,245
NET (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(13,164)	(22)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period	23,160	86	86
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—End of period	9,996	64	23,160
Summary Balance Sheets information:
Cash and cash equivalents				$ 6,268	$ 10,834	$ 64
Restricted cash- current portion				3,728	7,116
Total	$ 23,160	$ 86	$ 86	$ 9,996	$ 23,160	$ 64

Basis of Presentation and Organ

Basis of Presentation and Organization	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation and Organization	1. BASIS OF PRESENTATION AND ORGANIZATION Basis of presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Royal Energy Resources, Inc. (the “Company,” “Royal,”) and its wholly owned subsidiaries Rhino GP LLC (“Rhino GP” or “General Partner”, and Blaze Minerals, LLC and its majority owned subsidiary Rhino Resource Partners, LP (“Rhino” or the “Partnership”) (OTCQB:RHNO), a Delaware limited partnership. Rhino GP is the general partner of Rhino. All significant intercompany balances and transactions have been eliminated in consolidation. Cash, Cash Equivalents and Restricted Cash. Statement of Cash Flows-Restricted Cash Unaudited Interim Financial Information Reclassifications. Organization and nature of business Royal is a Delaware corporation which was incorporated on March 22, 1999, under the name Webmarketing, Inc. On July 7, 2004, the Company revived its charter and changed its name to World Marketing, Inc. In December 2007 the Company changed its name to Royal Energy Resources, Inc. Starting in 2007, the Company pursued gold, silver, copper and rare earth metal mining concessions in Romania and mining leases in the United States. Commencing in January 2015, the Company began a series of transactions to sell all of its existing assets, undergo a change in ownership control and management and repurpose itself as a North American energy recovery company, planning to purchase a group of synergistic, long-lived energy assets, but taking advantage of favorable valuations for mergers and acquisitions in the current energy markets. On April 13, 2015, the Company executed an agreement for the first acquisition in furtherance of its change in principal operations. Through a series of transactions completed in the first quarter of 2016, the Company acquired a majority ownership and control of the Partnership and 100% ownership of the Partnership’s general partner. Rhino was formed on April 19, 2010 to acquire Rhino Energy LLC (the “Operating Company”). The Operating Company and its wholly owned subsidiaries produce and market coal from surface and underground mines in Illinois, Kentucky, Ohio, West Virginia, and Utah. The majority of Rhino’s sales are made to domestic utilities and other coal-related organizations in the United States.

Summary of Significant Accounti

Summary of Significant Accounting Policies and General	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and General	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL On January 1, 2018, the Company adopted the following accounting standards: Revenue Recognition. Freight and handling costs paid directly to third-party carriers and invoiced separately to coal customers are recorded as freight and handling costs and freight and handling revenues, respectively. Freight and handling costs billed to customers as part of the contractual per ton revenue of customer contracts is included in coal sales revenue. Other revenues generally consist of coal royalty revenues, coal handling and processing revenues, rebates and rental income. With respect to other revenues recognized in situations unrelated to the shipment of coal, the Company carefully reviews the facts and circumstances of each transaction and does not recognize revenue until control of the benefit has transferred and payment is reasonably assured. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805).” ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has adopted this standard effective January 1, 2018, which had no current period impact but may impact future periods in which acquisitions are completed. The Company is currently evaluating the following accounting standards: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) On February 14, 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income Segment Information. A reconciliation of the consolidated assets to the total of the coal segment assets is provided below as of March 31, 2018 and December 31, 2017: Segment assets (1) March 31, 2018 December 31, 2017 Primary $ 237,728 $ 237,915 Corporate, unallocated 55,097 63,023 Total assets $ 292,825 $ 300,938 (1) Segment assets include accounts receivable, due from affiliates, prepaid and other current assets, inventory, intangible assets and property, plant and equipment — net; the remaining assets are unallocated corporate assets.

Acquisition of Rhino

Acquisition of Rhino	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Acquisition of Rhino	3. ACQUISITION OF RHINO In March of 2016, Rhino was acquired at a price less than fair value of the net identifiable assets, and a $171.2 million gain on bargain purchase was recorded in the first quarter of 2017. Subsequently in the fourth quarter of 2017, the gain on bargain purchase was adjusted to $168.4 million. The bargain purchase gain is reported as other income, in the consolidated interim statements of operations and comprehensive income (loss). Prior to recognizing a bargain purchase, management reassessed whether all assets acquired and liabilities assumed had been correctly identified, the key valuation assumptions and business combination accounting procedures for this acquisition. After careful consideration and review, management concluded that the recognition of a bargain purchase gain was appropriate for this acquisition.

Discontinued Operations and Ass

Discontinued Operations and Asset Held for Sale	3 Months Ended
	Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations and Asset Held for Sale	4. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE Blaze Royalty Interest On March 23, 2018, the Company and Arq Gary Land LLC (Arq) executed an option agreement related to a West Virginia mineral royalty interest controlled by the Company. The option expires seventy-five days after the execution date and allows Arq the option to purchase the Company’s royalty stream for $1.8 million. The term of the option may be extended for an additional 60 days. The Company has reflected this royalty asset as held for sale in the accompanying condensed consolidated balance sheets. Sands Hill On November 7, 2017, the Company closed an agreement with a third party to transfer 100% of the membership interests and related assets and liabilities in its Sands Hill Mining entity to the third party in exchange for a future overriding royalty for any mineral sold, excluding coal, from Sands Hill Mining LLC after the closing date. The Company recognized a gain in the fourth quarter of 2017 of $1.8 million from the sale of Sands Hill Mining LLC since the third party assumed the reclamation obligations associated with this operation. The previous operating results of Sands Hill Mining LLC have been reclassified and reported on the (Gain)/loss from discontinued operations line on the Company’s consolidated interim statements of operations for the three month period ended March 31, 2017. Sands Hill Mining LLC Major components of net loss from discontinued operations for Sands Hill Mining LLC for three months ended March 31, 2018 and 2017 are summarized as follows: Three Months Ended March 31, 2018 2017 (in thousands) Coal sales $ - $ 526 Limestone sales - 1,078 Other revenue - 402 Total revenues - 2,006 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) - 1,812 Freight and handling - 174 Depreciation, depletion and amortization - 1,834 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) - 11 (Gain) on sale/disposal of assets, net - (2 ) Total costs, expenses and other - 3,829 (Loss) from discontinued operations before income taxes for the Sands Hill Mining disposal - (1,823 ) Income taxes - 529 Net (loss) from discontinued operations $ - $ (1,294 ) Cash Flows. The depreciation, depletion and amortization amounts for Sands Hill Mining LLC for each period presented are listed in the previous table. The Partnership did not fund any material capital expenditures for Sands Hill Mining LLC for any period presented. Sands Hill Mining LLC did not have any material non-cash operating items or non-cash investing items for any period presented.

Property

Property	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Property	5. PROPERTY Property, plant and equipment, including coal properties and mine development and construction costs, as of March 31, 2018 and December 31, 2017 are summarized by major classification as follows: Useful Lives March 31, 2018 (in thousands) December 31, 2017 Land and land improvements $ 9,873 $ 10,104 Mining and other equipment and related facilities 2-20 Years 195,643 188,140 Mine development costs 1-15 Years 2,191 1,598 Coal properties 1-15 Years 31,397 31,397 Construction work in process 8,276 5,227 Total 247,380 236,466 Less accumulated depreciation, depletion and amortization (52,226 ) (44,696 ) Net $ 195,154 $ 191,770 Depreciation expense for mining and other equipment and related facilities, depletion expense for coal properties, amortization expense for mine development costs, and amortization expense for intangible assets for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 7,273 $ 20,713 Depletion expense for coal properties 225 553 Amortization of mine development costs 38 22 Amortization expense for other assets - 17 Total depreciation, depletion and amortization $ 7,536 $ 21,305 As discussed in Notes 1 and 3, the Company acquired Rhino GP and became a majority limited partner in Rhino on March 17, 2016. The Company completed its purchase accounting fair value adjustments in the first quarter of 2017 and adjusted the previous provisional amounts the Company had recorded for the Rhino acquisition. The fair value purchase adjustments resulted in $14.3 million of additional depreciation, depletion and amortization expense recorded in the first quarter of 2017 that related to the prior 2016 reporting period.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2018
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Payroll, bonus and vacation expense $ 1,820 $ 2,888 Non income taxes 2,836 3,130 Royalty expenses 2,427 2,410 Accrued interest 159 162 Health claims 774 871 Workers’ compensation & pneumoconiosis 1,750 1,750 Income taxes (Note 11) 584 584 Deferred revenue 1,174 - Other 1,585 822 Total $ 13,109 $ 12,617

Notes Payable - Related Party

Notes Payable - Related Party	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Notes Payable - Related Party	7. NOTES PAYABLE – RELATED PARTY Related party notes payable consist of the following at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 (in thousands) Demand note payable dated March 6, 2015; owed E-Starts Money Co., a related party; interest at 6% per annum $ 204 $ 204 Demand note payable dated June 11, 2015; owed E-Starts Money Co., a related party; non-interest bearing 200 200 Demand note payable dated September 22, 2016; owed E-Starts Co., a related party; non-interest bearing 50 50 Demand note payable dated December 8, 2016; owed to E-Starts Money Co., a related party; non-interest bearing 50 50 Demand note payable dated April 26, 2017; owed to E-Starts Money Co., a related party; non-interest bearing 10 10 Total related party notes payable $ 514 $ 514 The related party notes payable have accrued interest of $37 thousand at March 31, 2018 and $34 thousand at December 31, 2017. The Company expensed $3 thousand in interest related to the related party loan in each of the three months ended March 31, 2018 and 2017.

Debt

Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Debt	8. DEBT Debt as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Note payable- Financing Agreement $ 34,900 $ 40,000 Note payable to Cedarview 2,500 2,500 Net unamortized debt issuance costs (4,422 ) (4,688 ) Unamortized original issue discount (1,159 ) (1,264 ) Total 31,819 36,548 Current portion (4,169 ) (5,475 ) Long-term debt $ 27,650 $ 31,073 Financing Agreement On December 27, 2017, the Operating Company, a wholly-owned subsidiary of the Partnership, certain of the Operating Company’s subsidiaries identified as Borrowers (together with the Operating Company, the “Borrowers”), the Partnership and certain other of the Operating Company subsidiaries identified as Guarantors (together with the Partnership, the “Guarantors”), entered into a Financing Agreement (the “Financing Agreement”) with Cortland Capital Market Services LLC, as Collateral Agent and Administrative agent, CB Agent Services LLC, as Origination Agent and the parties identified as Lenders therein (the “Lenders”), pursuant to which the Lenders have agreed to provide the Borrowers with a multi-draw term loan in the aggregate principal amount of $80 million, subject to the terms and conditions set forth in the Financing Agreement. The total principal amount is divided into a $40 million commitment, the conditions of which were satisfied at the execution of the Financing Agreement (the “Effective Date Term Loan Commitment”) and an additional $40 million commitment that is contingent upon the satisfaction of certain conditions precedent specified in the Financing Agreement (“Delayed Draw Term Loan Commitment”). Loans made pursuant to the Financing Agreement are secured by substantially all of the Borrowers’ and Guarantors’ assets. The Financing Agreement terminates on December 27, 2020. Loans made pursuant to the Financing Agreement are, at the Operating Company’s option, either “Reference Rate Loans” or “LIBOR Rate Loans.” Reference Rate Loans bear interest at the greatest of (a) 4.25% per annum, (b) the Federal Funds Rate plus 0.50% per annum, (c) the LIBOR Rate (calculated on a one-month basis) plus 1.00% per annum or (d) the Prime Rate (as published in the Wall Street Journal) or if no such rate is published, the interest rate published by the Federal Reserve Board as the “bank prime loan” rate or similar rate quoted therein, in each case, plus an applicable margin of 9.00% per annum (or 12.00% per annum if the Operating Company has elected to capitalize an interest payment pursuant to the PIK Option, as described below). LIBOR Rate Loans bear interest at the greater of (x) the LIBOR rate for such interest period divided by 100% minus the maximum percentage prescribed by the Federal Reserve for determining the reserve requirements in effect with respect to eurocurrency liabilities for any Lender, if any, and (y) 1.00%, in each case, plus 10.00% per annum (or 13.00% per annum if the Borrowers have elected to capitalize an interest payment pursuant to the PIK Option). Interest payments are due on a monthly basis for Reference Rate Loans and one-, two- or three-month periods, at the Operating Company’s option, for LIBOR Rate Loans. If there is no event of default occurring or continuing, the Operating Company may elect to defer payment on interest accruing at 6.00% per annum by capitalizing and adding such interest payment to the principal amount of the applicable term loan (the “PIK Option”). Commencing December 31, 2018, the principal for each loan made under the Financing Agreement will be payable on a quarterly basis in an amount equal to $375,000 per quarter, with all remaining unpaid principal and accrued and unpaid interest due on December 27, 2020. In addition, the Borrowers must make certain prepayments over the term of any loans outstanding, including: (i) the payment of 25% of Excess Cash Flow (as that term is defined in the Financing Agreement) of the Partnership and its subsidiaries for each fiscal year, commencing with respect to the year ending December 31, 2019, (ii) subject to certain exceptions, the payment of 100% of the net cash proceeds from the dispositions of certain assets, the incurrence of certain indebtedness or receipts of cash outside of the ordinary course of business, and (iii) the payment of the excess of the outstanding principal amount of term loans outstanding over the amount of the Collateral Coverage Amount (as that term is defined in the Financing Agreement). In addition, the Lenders are entitled to (i) certain fees, including 1.50% per annum of the unused Delayed Draw Term Loan Commitment for as long as such commitment exists, (ii) for the 12-month period following the execution of the Financing Agreement, a make-whole amount equal to the interest and unused Delayed Draw Term Loan Commitment fees that would have been payable but for the occurrence of certain events, including among others, bankruptcy proceedings or the termination of the Financing Agreement by the Operating Company, and (iii) audit and collateral monitoring fees and origination and exit fees. The Financing Agreement requires the Borrowers and Guarantors to comply with several affirmative covenants at any time loans are outstanding, including, among others: (i) the requirement to deliver monthly, quarterly and annual financial statements, (ii) the requirement to periodically deliver certificates indicating, among other things, (a) compliance with terms of the Financing Agreement and ancillary loan documents, (b) inventory, accounts payable, sales and production numbers, (c) the calculation of the Collateral Coverage Amount (as that term is defined in the Financing Agreement), (d) projections for the Partnership and its subsidiaries and (e) coal reserve amounts; (iii) the requirement to notify the Administrative Agent of certain events, including events of default under the Financing Agreement, dispositions, entry into material contracts, (iv) the requirement to maintain insurance, obtain permits, and comply with environmental and reclamation laws (v) the requirement to sell up to $5.0 million of shares in Mammoth Energy Securities, Inc. and use the net proceeds therefrom to prepay outstanding term loans which was completed during the three months ended March 31, 2018 and (vi) establish and maintain cash management services and establish a cash management account and deliver a control agreement with respect to such account to the Collateral Agent. The Financing Agreement also contains negative covenants that restrict the Borrowers and Guarantors ability to, among other things: (i) incur liens or additional indebtedness or make investments or restricted payments, (ii) liquidate or merge with another entity, or dispose of assets, (iii) change the nature of their respective businesses; (iv) make capital expenditures in excess, or, with respect to maintenance capital expenditures, lower than, specified amounts, (v) incur restrictions on the payment of dividends, (vi) prepay or modify the terms of other indebtedness, (vii) permit the Collateral Coverage Amount to be less than the outstanding principal amount of the loans outstanding under the Financing Agreement or (viii) permit the trailing six month Fixed Charge Coverage Ratio of the Partnership and its subsidiaries to be less than 1.20 to 1.00 commencing with the six-month period ending June 30, 2018. The Financing Agreement contains customary events of default, following which the Collateral Agent may, at the request of lenders, terminate or reduce all commitments and accelerate the maturity of all outstanding loans to become due and payable immediately together with accrued and unpaid interest thereon and exercise any such other rights as specified under the Financing Agreement and ancillary loan documents. The Partnership entered into a warrant agreement with certain parties that are also parties to the Financing Agreement discussed above. At March 31, 2018, the Partnership had borrowed $34.9 million at a variable interest rate of Libor plus 10.00% (11.88% at March 31, 2018). See Note 17 for amendment to this financing arrangement. Letter of Credit Facility – PNC Bank On December 27, 2017, the Partnership entered into a master letter of credit facility, security agreement and reimbursement agreement (the “LoC Facility Agreement”) with PNC Bank, National Association (“PNC”), pursuant to which PNC agreed to provide the Partnership with a facility for the issuance of standby letters of credit used in the ordinary course of its business (the “LoC Facility”). The LoC Facility Agreement provides that the Partnership pay a quarterly fee at a rate equal to 5% per annum calculated based on the daily average of letters of credit outstanding under the LoC Facility, as well as administrative costs incurred by PNC and a $100,000 closing fee. The LoC Facility Agreement provides that the Partnership reimburse PNC for any drawing under a letter of credit by a specified beneficiary as soon as possible after payment is made. The Partnership’s obligations under the LoC Facility Agreement are secured by a first lien security interest on a cash collateral account that is required to contain no less than 105% of the face value of the outstanding letters of credit. In the event the amount in such cash collateral account is insufficient to satisfy the Partnership’s reimbursement obligations, the amount outstanding bears interest at a rate per annum equal to the Base Rate (as that term is defined in the LoC Facility Agreement) plus 2.0%. The Partnership will indemnify PNC for any losses which PNC may incur as a result of the issuance of a letter of credit or PNC’s failure to honor any drawing under a letter of credit, subject in each case to certain exceptions. The LoC Facility Agreement expires on December 31, 2018. The Partnership had outstanding letters of credit of approximately $3.0 million at a fixed interest rate of 5.00% at March 31, 2018. Cedarview On June 12, 2017, the Company entered into a Secured Promissory Note dated May 31, 2017 with Cedarview Opportunities Master Fund, L.P. (the “Lender”), under which the Company borrowed $2,500,000 from the Lender. The loan bears non-default interest at the rate of 14%, and default interest at the rate of 17% per annum. The Company and the Lender simultaneously entered into a Pledge and Security Agreement dated May 31, 2017, under which the Company pledged 5,000,000 Common Units in Rhino as collateral for the loan. The loan is payable through quarterly payments of interest only until May 31, 2019, when the loan matures, at which time all principal and interest is due and payable. The Company deposited $350,000 of the loan proceeds into an escrow account, from which interest payments for the first year will be paid. After the first year, the Company is obligated to maintain at least one quarter of interest on the loan in the escrow account at all times. In consideration for the Lender’s agreement to make the loan, the Company has transferred 25,000 Common Units of Rhino to the Lender as a fee. The Company intended to use the proceeds to repay in full all loans made to the Company by E-Starts Money Co. in the principal amount of $578,593, and the balance for general corporate overhead, as well as costs associated with potential acquisitions of mineral resource companies, including legal and engineering due diligence, deposits, and down payments.

Asset Retirement Obligations

Asset Retirement Obligations	3 Months Ended
	Mar. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	9. ASSET RETIREMENT OBLIGATIONS The changes in asset retirement obligations for the three months ended March 31, 2018 and the year ended December 31, 2017 are as follows: Three Months Ended March 31, 2018 Year Ended December 31, 2017 Balance at beginning of period, including current portion $ 15,994 $ 21,720 Revaluation - (5,267 ) Accretion expense 318 1,556 Adjustments to the liability from annual recosting and other - (1,695 ) Disposal - (260 ) Liabilities settled (19 ) (60 ) Balance at end of period 16,293 15,994 Less current portion (498 ) (498 ) Non-current portion $ 15,795 $ 15,496

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Stockholders' Equity	10. STOCKHOLDERS’ EQUITY Royal Activity At March 31, 2018 and December 31, 2017, the authorized capital stock of the Company consists of 25,000,000 shares of Common Stock, par value $0.00001 per share, and 5,000,000 shares of Preferred Stock, par value $0.00001 per share. On January 30, 2018, Ronald Phillips resigned as president of the Company. Mr. Phillips remains a consultant to the Company. As part of Mr. Phillips severance arrangement, he was paid $100,000 and received 400,000 shares of Company restricted common shares and 100,000 shares of Company common registered shares. The shares were valued based on the Company’s stock price at date of grant for a total fair value of $1,650,000, which is reflected as stock compensation expense and additional paid in capital in the accompanying condensed consolidated financial statements. Rhino Activity During the three months ended March 31, 2018, the Partnership paid $6.0 million in preferred distributions earned for the year ended December 31, 2017 to holders of the Series A preferred units. The Partnership also accrued $0.3 million for preferred distributions for the three months ended March 31, 2018.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	11. INCOME TAXES See Note 12 for discussion of income tax contingencies impacting the Company. The Company’s effective tax rates for the three months ended March 31, 2018 and 2017 were 11% and 29%, respectively. On December 22, 2017 the Tax Cut and Jobs Act of 2017 (“the Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the elimination of the corporate alternative minimum tax regime effective for tax years beginning after December 31, 2017, implementation of a process whereby corporations with unused alternative minimum tax credits will be refunded during 2018-2022, further limitation on the deductibility of certain executive compensation, allowance for immediate capital expensing of certain qualified property, and limitations on the amount of interest expense deductible beginning in 2018. The Company has not completed its analysis of the income tax effects of the Act but has provided its best estimate of the impact of the Act for 2017 in its income tax provision in accordance with the guidance and interpretations available at that time as provided under SAB 118. The Company will finalize the analysis for the estimate by December 22, 2018, within the one year measurement period under SAB 118.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. COMMITMENTS AND CONTINGENCIES Leases Three months ended March 31, 2018 2017 (in thousands) Lease expense $ 430 $ 1,513 Royalty expense $ 3,644 $ 3,377 Royalty Agreement In November 2017, the Company entered an overriding royalty agreement with a third party in regards to the former Sands Hill property. The Company has committed to provide $400 thousand of Company common stock as consideration for this royalty stream. The Company has not yet provided the stock through the issuance date of the interim consolidated financial statements. Income Tax Contingency The Company has recently filed federal income tax returns for 2014, 2015 and 2016, is in the process of filing state returns and failed to timely file an application for a change in tax year when it changed its reporting year for external reporting purposes from August 31st to December 31st in 2015. In addition, management and third-party specialists have identified certain transactions which are highly complex from an income tax perspective and have not accumulated the necessary information or completed the necessary analysis to bring these matters to conclusion. In preparing the financial statements as of March 31, 2018 and for the three month period then ended and as of and for the year ended December 31, 2017, management has used its best estimates to compute the Company's provision for federal and state income taxes based on available information; however, the resolution of certain of the complex tax matters, the ultimate completion of returns for all open tax years and tax positions taken could materially impact management's estimates. Therefore, the ultimate tax obligations could be materially different from that reflected in the accompanying consolidated balance sheet at March 31, 2018 and December 31, 2017 once these issues are resolved.

Major Customers

Major Customers	3 Months Ended
	Mar. 31, 2018
Risks and Uncertainties [Abstract]
Major Customers	13. MAJOR CUSTOMERS The Company had sales or receivables from the following major customers that in each period equaled or exceeded 10% of revenues: March 31, 2018 Receivable Balance December 31, 2017 Receivable Balance Three months ended March 31, 2018 Sales Three months ended March 31, 2017 Sales (in thousands) Dominion Energy $ 3,156 $ 1,232 $ 8,165 $ 5,551 Trafigura Trading 2,287 2,093 7,159 - Integrity Coal 914 2,238 6,528 4,728 Big Rivers 751 - 5,515 6,244

Revenue

Revenue	3 Months Ended
	Mar. 31, 2018
Revenue
Revenue	14. REVENUE The Company adopted ASC Topic 606 on January 1, 2018, using the modified retrospective method. The adoption of Topic 606 had no impact on revenue amounts or other amounts recorded on the Company’s financial statements. The new disclosures required by ASC Topic 606, as applicable, are presented below. The majority of the Company’s revenues are generated under coal sales contracts. Coal sales accounted for approximately 99.0% of the Company’s total revenues for the three months ended March 31, 2018. Other revenues generally consist of coal royalty revenues, coal handling and processing revenues, rebates and rental income, which accounted for approximately 1.0% of the Company’s total revenues for the three months ended March 31 2018. All of the accounts receivable recorded in the accompanying consolidated balance sheet at March 31, 2018 relate to coal sales. The majority of the Company’s contracts have a single performance obligation (shipment or delivery of coal according to terms of the sales agreement) and as such, the Company is not required to allocate the contract’s transaction price to multiple performance obligations. All of the Company’s coal sales revenue is recognized when shipment or delivery to the customer has occurred, prices are fixed or determinable and the title or risk of loss has passed in accordance with the terms of the sales agreement. With respect to other revenues recognized in situations unrelated to the shipment of coal, the Company carefully reviews the facts and circumstances of each transaction and does not recognize revenue until control of the benefit has transferred and collectability is reasonably assured. The following table disaggregates revenue by type for the three months ended March 31, 2018 and 2017 (in thousands) Coal sales 2018 2017 Steam coal $ 35,021 $ 34,638 Met coal 19,251 16,617 Other revenue 581 290 Total $ 54,853 $ 51,545

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	15. FAIR VALUE MEASUREMENTS The Company determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions of what market participants would use. The fair value hierarchy includes three levels of inputs that may be used to measure fair value as described below: Level One - Quoted prices for identical instruments in active markets. Level Two - The fair value of the assets and liabilities included in Level 2 are based on standard industry income approach models that use significant observable inputs. Level Three - Unobservable inputs significant to the fair value measurement supported by little or no market activity. In those cases when the inputs used to measure fair value meet the definition of more than one level of the fair value hierarchy, the lowest level input that is significant to the fair value measurement in its totality determines the applicable level in the fair value hierarchy. The book values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of their respective fair values because of the immediate short-term maturity of these financial instruments. The fair value of the Company’s financing agreement was determined based upon a market approach and approximates the carrying value at March 31, 2018. The fair value of the Company’s financing agreement is a Level 2 measurement. As of March 31, 2018 and December 31, 2017, the Company had a recurring fair value measurement relating to its investment in Mammoth Energy Services, Inc. (NASDAQ: TUSK) (“Mammoth Inc.”). The Company owned 336,447 shares of Mammoth, Inc. as of March 31, 2018. The Company’s shares of Mammoth, Inc. are classified as an available-for-sale investment on the Company’s unaudited condensed consolidated balance sheet. Based on the availability of a quoted price, the recurring fair value measurement of the Mammoth, Inc. shares is a Level 1 measurement.

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information	3 Months Ended
	Mar. 31, 2018
Supplemental Cash Flow Elements [Abstract]
Supplemental Disclosures of Cash Flow Information	16. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash payments for interest were $1.5 million and $0.8 million for the three months ended March 31, 2018 and 2017, respectively. The unaudited consolidated statement of cash flows for the three months ended March 31, 2018 and 2017 excludes approximately $2.8 million and $0.6 million, respectively, of property, plant and equipment additions which are recorded in Accounts payable.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	17. SUBSEQUENT EVENTS On April 17, 2018, the Partnership amended its Financing Agreement to allow for certain activities including a sale leaseback of certain pieces of equipment, the due date for the lease consents was extended to June 30, 2018 and confirmation of the distribution to holders of the Series A preferred units of $6.0 million (accrued in the consolidated financial statements at December 31, 2017). Additionally, the amendments provide that the Partnership can sell additional shares of Mammoth Inc. stock and retain 50% of the proceeds with the other 50% used to reduce debt.

Summary of Significant Accoun25

Summary of Significant Accounting Policies and General (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition. Freight and handling costs paid directly to third-party carriers and invoiced separately to coal customers are recorded as freight and handling costs and freight and handling revenues, respectively. Freight and handling costs billed to customers as part of the contractual per ton revenue of customer contracts is included in coal sales revenue. Other revenues generally consist of coal royalty revenues, coal handling and processing revenues, rebates and rental income. With respect to other revenues recognized in situations unrelated to the shipment of coal, the Company carefully reviews the facts and circumstances of each transaction and does not recognize revenue until control of the benefit has transferred and payment is reasonably assured. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805).” ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has adopted this standard effective January 1, 2018, which had no current period impact but may impact future periods in which acquisitions are completed. The Company is currently evaluating the following accounting standards: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) On February 14, 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income
Segment Information	Segment Information. A reconciliation of the consolidated assets to the total of the coal segment assets is provided below as of March 31, 2018 and December 31, 2017: Segment assets (1) March 31, 2018 December 31, 2017 Primary $ 237,728 $ 237,915 Corporate, unallocated 55,097 63,023 Total assets $ 292,825 $ 300,938 (1) Segment assets include accounts receivable, due from affiliates, prepaid and other current assets, inventory, intangible assets and property, plant and equipment — net; the remaining assets are unallocated corporate assets.

Summary of Significant Accoun26

Summary of Significant Accounting Policies and General (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Schedule of Reconciliation of Consolidated Assets to Coal Segment Assets	A reconciliation of the consolidated assets to the total of the coal segment assets is provided below as of March 31, 2018 and December 31, 2017: Segment assets (1) March 31, 2018 December 31, 2017 Primary $ 237,728 $ 237,915 Corporate, unallocated 55,097 63,023 Total assets $ 292,825 $ 300,938 (1) Segment assets include accounts receivable, due from affiliates, prepaid and other current assets, inventory, intangible assets and property, plant and equipment — net; the remaining assets are unallocated corporate assets.

Discontinued Operations and A27

Discontinued Operations and Asset Held for Sale (Tables)	3 Months Ended
	Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Major Assets and Liabilities and Net Income from Discontinued Operations	Sands Hill Mining LLC Major components of net loss from discontinued operations for Sands Hill Mining LLC for three months ended March 31, 2018 and 2017 are summarized as follows: Three Months Ended March 31, 2018 2017 (in thousands) Coal sales $ - $ 526 Limestone sales - 1,078 Other revenue - 402 Total revenues - 2,006 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) - 1,812 Freight and handling - 174 Depreciation, depletion and amortization - 1,834 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) - 11 (Gain) on sale/disposal of assets, net - (2 ) Total costs, expenses and other - 3,829 (Loss) from discontinued operations before income taxes for the Sands Hill Mining disposal - (1,823 ) Income taxes - 529 Net (loss) from discontinued operations $ - $ (1,294 )

Property (Tables)

Property (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment, including coal properties and mine development and construction costs, as of March 31, 2018 and December 31, 2017 are summarized by major classification as follows: Useful Lives March 31, 2018 (in thousands) December 31, 2017 Land and land improvements $ 9,873 $ 10,104 Mining and other equipment and related facilities 2-20 Years 195,643 188,140 Mine development costs 1-15 Years 2,191 1,598 Coal properties 1-15 Years 31,397 31,397 Construction work in process 8,276 5,227 Total 247,380 236,466 Less accumulated depreciation, depletion and amortization (52,226 ) (44,696 ) Net $ 195,154 $ 191,770
Schedule of Depreciation Expenses	Depreciation expense for mining and other equipment and related facilities, depletion expense for coal properties, amortization expense for mine development costs, and amortization expense for intangible assets for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 7,273 $ 20,713 Depletion expense for coal properties 225 553 Amortization of mine development costs 38 22 Amortization expense for other assets - 17 Total depreciation, depletion and amortization $ 7,536 $ 21,305

Accrued Expenses and Other Cu29

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Payroll, bonus and vacation expense $ 1,820 $ 2,888 Non income taxes 2,836 3,130 Royalty expenses 2,427 2,410 Accrued interest 159 162 Health claims 774 871 Workers’ compensation & pneumoconiosis 1,750 1,750 Income taxes (Note 11) 584 584 Deferred revenue 1,174 - Other 1,585 822 Total $ 13,109 $ 12,617

Notes Payable - Related Party (

Notes Payable - Related Party (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Related Party Notes Payable	Related party notes payable consist of the following at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 (in thousands) Demand note payable dated March 6, 2015; owed E-Starts Money Co., a related party; interest at 6% per annum $ 204 $ 204 Demand note payable dated June 11, 2015; owed E-Starts Money Co., a related party; non-interest bearing 200 200 Demand note payable dated September 22, 2016; owed E-Starts Co., a related party; non-interest bearing 50 50 Demand note payable dated December 8, 2016; owed to E-Starts Money Co., a related party; non-interest bearing 50 50 Demand note payable dated April 26, 2017; owed to E-Starts Money Co., a related party; non-interest bearing 10 10 Total related party notes payable $ 514 $ 514

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Debt	Debt as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 (in thousands) Note payable- Financing Agreement $ 34,900 $ 40,000 Note payable to Cedarview 2,500 2,500 Net unamortized debt issuance costs (4,422 ) (4,688 ) Unamortized original issue discount (1,159 ) (1,264 ) Total 31,819 36,548 Current portion (4,169 ) (5,475 ) Long-term debt $ 27,650 $ 31,073

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	3 Months Ended
	Mar. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Asset Retirement Obligations	The changes in asset retirement obligations for the three months ended March 31, 2018 and the year ended December 31, 2017 are as follows: Three Months Ended March 31, 2018 Year Ended December 31, 2017 Balance at beginning of period, including current portion $ 15,994 $ 21,720 Revaluation - (5,267 ) Accretion expense 318 1,556 Adjustments to the liability from annual recosting and other - (1,695 ) Disposal - (260 ) Liabilities settled (19 ) (60 ) Balance at end of period 16,293 15,994 Less current portion (498 ) (498 ) Non-current portion $ 15,795 $ 15,496

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Lease and Royalty Expenses	Lease and royalty expense for the three months ended March 31, 2018 and 2017 are included in Cost of operations in the unaudited condensed consolidated statements of operations were as follows: Three months ended March 31, 2018 2017 (in thousands) Lease expense $ 430 $ 1,513 Royalty expense $ 3,644 $ 3,377

Major Customers (Tables)

Major Customers (Tables)	3 Months Ended
	Mar. 31, 2018
Risks and Uncertainties [Abstract]
Schedule of Revenues or Receivables Major Customers	The Company had sales or receivables from the following major customers that in each period equaled or exceeded 10% of revenues: March 31, 2018 Receivable Balance December 31, 2017 Receivable Balance Three months ended March 31, 2018 Sales Three months ended March 31, 2017 Sales (in thousands) Dominion Energy $ 3,156 $ 1,232 $ 8,165 $ 5,551 Trafigura Trading 2,287 2,093 7,159 - Integrity Coal 914 2,238 6,528 4,728 Big Rivers 751 - 5,515 6,244

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue
Schedule of Disaggregates Revenue	The following table disaggregates revenue by type for the three months ended March 31, 2018 and 2017 (in thousands) Coal sales 2018 2017 Steam coal $ 35,021 $ 34,638 Met coal 19,251 16,617 Other revenue 581 290 Total $ 54,853 $ 51,545

Basis of Presentation and Org36

Basis of Presentation and Organization (Details Narrative)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Ownership percentage	100.00%

Summary of Significant Accoun37

Summary of Significant Accounting Policies and General - Schedule of Reconciliation of Consolidated Assets to Coal Segment Assets (Details) - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
Total assets		$ 292,658	$ 300,938
Primary [Member]
Total assets	[1]	237,728	237,915
Corporate, Unallocated [Member]
Total assets		$ 55,097	$ 63,023	[1]
[1]	Segment assets include accounts receivable, due from affiliates, prepaid and other current assets, inventory, intangible assets and property, plant and equipment - net; the remaining assets are unallocated corporate assets.

Acquisition of Rhino (Details N

Acquisition of Rhino (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Business Combinations [Abstract]
Gain on bargain purchase		$ 171,151	$ 168,400

Discontinued Operations and A39

Discontinued Operations and Asset Held for Sale (Details Narrative) - USD ($) $ in Thousands	Mar. 23, 2018	Nov. 07, 2017
Arq Gary Land LLC [Member]
Options to purchase royalty stream	$ 1,800
Options expiration term description	The option expires seventy-five days after the execution date and allows Arq the option to purchase the Company’s royalty stream for $1.8 million. The term of the option may be extended for an additional 60 days.
Sand Hill Mining LLC [Member] | Third Party [Member]
Transfer of membership interests percentage		100.00%
Gain on sale of discontinued operations		$ 1,800

Discontinued Operations and A40

Discontinued Operations and Asset Held for Sale - Schedule of Major Assets and Liabilities and Net Income from Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net (loss) from discontinued operations		$ (1,294)
Sand Hill Mining LLC [Member]
Coal sales		526
Limestone sales		1,078
Other revenue		402
Total revenues		2,006
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below)		1,812
Freight and handling		174
Depreciation, depletion and amortization		1,834
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above)		11
(Gain) on sale/disposal of assets, net		(2)
Total costs, expenses and other		3,829
(Loss) from discontinued operations before income taxes for the Sands Hill Mining disposal		(1,823)
Income taxes		529
Net (loss) from discontinued operations		$ (1,294)

Property (Details Narrative)

Property (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Property, Plant and Equipment [Abstract]
Depreciation	$ 14,300

Property - Schedule of Property

Property - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Property, plant and equipment, gross	$ 247,380	$ 236,466
Less accumulated depreciation, depletion and amortization	(52,226)	(44,696)
Property, plant and equipment, net	195,154	191,770
Land and Land Improvements [Member]
Property, plant and equipment, gross	9,873	10,104
Mining and Other Equipment And Related Facilities [Member]
Property, plant and equipment, gross	$ 195,643	188,140
Mining and Other Equipment And Related Facilities [Member] | Minimum [Member]
Property, plant and equipment, useful Lives	2 years
Mining and Other Equipment And Related Facilities [Member] | Maximum [Member]
Property, plant and equipment, useful Lives	20 years
Mine Development Costs [Member]
Property, plant and equipment, gross	$ 2,191	1,598
Mine Development Costs [Member] | Minimum [Member]
Property, plant and equipment, useful Lives	1 year
Mine Development Costs [Member] | Maximum [Member]
Property, plant and equipment, useful Lives	15 years
Coal Properties [Member]
Property, plant and equipment, gross	$ 31,397	31,397
Coal Properties [Member] | Minimum [Member]
Property, plant and equipment, useful Lives	1 year
Coal Properties [Member] | Maximum [Member]
Property, plant and equipment, useful Lives	15 years
Constructions Work in Process [Member]
Property, plant and equipment, gross	$ 8,276	$ 5,227

Property - Schedule of Deprecia

Property - Schedule of Depreciation Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense-mining and other equipment and related facilities	$ 7,273	$ 20,713
Depletion expense for coal properties	225	553
Amortization of mine development costs	38	22
Amortization expense for other assets		17
Total depreciation, depletion and amortization	$ 7,536	$ 21,305

Accrued Expenses and Other Cu44

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Payroll, bonus and vacation expense	$ 1,820	$ 2,888
Non-income taxes	2,836	3,130
Royalty expenses	2,427	2,410
Accrued interest	159	162
Health claims	774	871
Workers' compensation & pneumoconiosis	1,750	1,750
Income taxes (Note 11)	584	584
Deferred revenue	1,174
Other	1,585	822
Total	$ 13,109	$ 12,617

Notes Payable - Related Party45

Notes Payable - Related Party (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Debt Disclosure [Abstract]
Related party notes payable accrued interest	$ 37		$ 34
Related party interest expense	$ 3	$ 3

Notes Payable - Related Party -

Notes Payable - Related Party - Schedule of Related Party Notes Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Total related party notes payable	$ 514	$ 514
Related Party Notes Payable One [Member]
Total related party notes payable	204	204
Related Party Notes Payable Two [Member]
Total related party notes payable	200	200
Related Party Notes Payable Three [Member]
Total related party notes payable	50	50
Related Party Notes Payable Four [Member]
Total related party notes payable	50	50
Related Party Notes Payable Five [Member]
Total related party notes payable	$ 10	$ 10

Notes Payable - Related Party47

Notes Payable - Related Party - Schedule of Related Party Notes Payable (Details) (Parenthetical)	Mar. 06, 2015
Related Party Notes Payable [Member]
Related party interest rate	6.00%

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	Dec. 27, 2017	Mar. 31, 2018	Jun. 12, 2017
Line of Credit Facility [Line Items]
Letter of credit facility description	The Partnership’s obligations under the LoC Facility Agreement are secured by a first lien security interest on a cash collateral account that is required to contain no less than 105% of the face value of the outstanding letters of credit.
Agreement expiration date	Dec. 31, 2018
Base Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument bear interest percentage	2.00%
Cedarview Opportunities Master Fund, L.P [Member] | Short Term Note Payable [Member]
Line of Credit Facility [Line Items]
Debt instrument principal amount			$ 2,500,000
Debt instrument bear interest percentage			14.00%
Debt instrument default interest rate			17.00%
Collateral for loan			$ 5,000,000
Escrow Deposit			$ 350,000
Common units transferred			25,000
E-Starts Money Co. [Member]
Line of Credit Facility [Line Items]
Debt instrument principal amount			$ 578,593
Financing Agreement [Member]
Line of Credit Facility [Line Items]
Debt instrument principal amount		$ 34,900,000
Debt instruments interest terms		Loans made pursuant to the Financing Agreement are, at the Operating Company’s option, either “Reference Rate Loans” or “LIBOR Rate Loans.” Reference Rate Loans bear interest at the greatest of (a) 4.25% per annum, (b) the Federal Funds Rate plus 0.50% per annum, (c) the LIBOR Rate (calculated on a one-month basis) plus 1.00% per annum or (d) the Prime Rate (as published in the Wall Street Journal) or if no such rate is published, the interest rate published by the Federal Reserve Board as the “bank prime loan” rate or similar rate quoted therein, in each case, plus an applicable margin of 9.00% per annum (or 12.00% per annum if the Operating Company has elected to capitalize an interest payment pursuant to the PIK Option, as described below). LIBOR Rate Loans bear interest at the greater of (x) the LIBOR rate for such interest period divided by 100% minus the maximum percentage prescribed by the Federal Reserve for determining the reserve requirements in effect with respect to eurocurrency liabilities for any Lender, if any, and (y) 1.00%, in each case, plus 10.00% per annum (or 13.00% per annum if the Borrowers have elected to capitalize an interest payment pursuant to the PIK Option). Interest payments are due on a monthly basis for Reference Rate Loans and one-, two- or three-month periods, at the Operating Company’s option, for LIBOR Rate Loans. If there is no event of default occurring or continuing, the Operating Company may elect to defer payment on interest accruing at 6.00% per annum by capitalizing and adding such interest payment to the principal amount of the applicable term loan (the “PIK Option”).
Debt covenant description		Fixed Charge Coverage Ratio of the Partnership and its subsidiaries to be less than 1.20 to 1.00
Short term variable interest rate		10.00%
Financing Agreement [Member] | Libor Plus [Member]
Line of Credit Facility [Line Items]
Short term variable interest rate		11.88%
Financing Agreement [Member] | December 31, 2018 [Member]
Line of Credit Facility [Line Items]
Debt due date		Dec. 27, 2020
Loans payable		$ 375,000
Debt instrument description		(i) the payment of 25% of Excess Cash Flow (as that term is defined in the Financing Agreement) of the Partnership and its subsidiaries for each fiscal year, commencing with respect to the year ending December 31, 2019, (ii) subject to certain exceptions, the payment of 100% of the net cash proceeds from the dispositions of certain assets, the incurrence of certain indebtedness or receipts of cash outside of the ordinary course of business, and (iii) the payment of the excess of the outstanding principal amount of term loans outstanding over the amount of the Collateral Coverage Amount (as that term is defined in the Financing Agreement). In addition, the Lenders are entitled to (i) certain fees, including 1.50% per annum of the unused Delayed Draw Term Loan Commitment for as long as such commitment exists, (ii) for the 12-month period following the execution of the Financing Agreement, a make-whole amount equal to the interest and unused Delayed Draw Term Loan Commitment fees that would have been payable but for the occurrence of certain events, including among others, bankruptcy proceedings or the termination of the Financing Agreement by the Operating Company, and (iii) audit and collateral monitoring fees and origination and exit fees.
Financing Agreement [Member] | Effective Date Term Loan Commitment [Member]
Line of Credit Facility [Line Items]
Debt instrument principal amount	$ 40,000,000
Financing Agreement [Member] | Delayed Draw Term Loan Commitment [Member]
Line of Credit Facility [Line Items]
Debt instrument principal amount	40,000,000
Financing Agreement [Member] | Cortland Capital Market Services LLC [Member]
Line of Credit Facility [Line Items]
Debt instrument principal amount	$ 80,000,000
Debt due date	Dec. 27, 2020
Financing Agreement [Member] | Mammoth Energy Services, Inc. [Member]
Line of Credit Facility [Line Items]
Proceed from sale of shares		$ 5,000,000
Letter of Credit Facility Agreement [Member]
Line of Credit Facility [Line Items]
Percentage of quarterly fee description	5.00%
Commitment Fee Amount	$ 100,000
Letter of credit amount		$ 3,000,000
Letter of credit interest rate		5.00%

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Net unamortized debt issuance costs	$ (4,422)	$ (4,688)
Unamortized original issue discount	(1,159)	(1,264)
Total	31,819	36,548
Current portion	(4,169)	(5,475)
Long-term debt	27,650	31,073
Cedarview Opportunities Master Fund, L.P [Member]
Note payable	2,500	2,500
Financing Agreement [Member]
Note payable	$ 34,900	$ 40,000

Asset Retirement Obligations -

Asset Retirement Obligations - Schedule of Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Asset Retirement Obligation Disclosure [Abstract]
Balance at beginning of year, including current portion	$ 15,994	$ 21,720
Revaluation		(5,267)
Accretion expense	318	1,556
Adjustments to the liability from annual recosting and other		(1,695)
Disposal		(260)
Liabilities settled	(19)	(60)
Balance at end of period	16,293	15,994
Less current portion	(498)	(498)
Non-current portion	$ 15,795	$ 15,496

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Jan. 30, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Common stock, shares authorized		25,000,000	25,000,000	25,000,000
Common stock, par value		$ 0.00001	$ 0.00001	$ 0.00001
Preferred stock, shares authorized		5,000,000	5,000,000	5,000,000
Preferred stock, par value		$ 0.00001	$ 0.00001	$ 0.00001
Number of common stock shares issued, value	$ 100,000
Stock compensation expenses		$ 1,650,000
Preferred distributions		(6,038,000)
Rhino Activity [Member]
Preferred distributions		$ 300,000
Restricted Common Shares [Member]
Number of common stock shares issued	400,000
Common Registered Shares [Member]
Number of common stock shares issued	100,000
Series A Preferred Units [Member] | Rhino Activity [Member]
Preferred distributions				$ 6,000,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	Dec. 22, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income tax rate percentage	21.00%	11.00%	29.00%
Income tax reconciliation description	The 2017 Tax Act includes a number of changes in existing tax law impacting businesses, including a permanent reduction in the U.S. federal statutory rate from 35% to 21%, effective on January 1, 2018.

Commitments and Contingencies53

Commitments and Contingencies (Details Narrative) $ in Thousands	1 Months Ended
	Nov. 30, 2017USD ($)
Royalty Agreement [Member] | Third Party [Member]
Common stock as consideration for royalty stream	$ 400

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Lease and Royalty Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Lease expense	$ 430	$ 1,513
Royalty expense	$ 3,644	$ 3,377

Major Customers - Schedule of R

Major Customers - Schedule of Revenues or Receivables Major Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenues	$ 54,853	$ 51,545
Dominion Energy [Member]
Accounts receivable	3,156		$ 1,232
Revenues	8,165	5,551
Trafigura Trading [Member]
Accounts receivable	2,287		2,093
Revenues	7,159
Integrity Coal [Member]
Accounts receivable	914		2,238
Revenues	6,528	4,728
Big Rivers [Member]
Accounts receivable	751
Revenues	$ 5,515	$ 6,244

Major Customers - Schedule of56

Major Customers - Schedule of Revenues or Receivables Major Customers (Details) (Parenthetical)	3 Months Ended
	Mar. 31, 2018
Risks and Uncertainties [Abstract]
Percentage of concentration risk	10.00%

Revenue (Details Narrative)

Revenue (Details Narrative)	3 Months Ended
	Mar. 31, 2018
Percentage of concentration risk	10.00%
Coal Sales [Member]
Percentage of concentration risk	99.00%
Other Revenues Member
Percentage of concentration risk	1.00%

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregates Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Total revenues	$ 54,853	$ 51,545
Steam Coal [Member]
Total revenues	35,021	34,638
Met Coal [Member]
Total revenues	19,251	16,617
Other Revenues Member
Total revenues	$ 581	$ 290

Fair Value Measurements (Detail

Fair Value Measurements (Details Narrative)	3 Months Ended
	Mar. 31, 2018shares
Mammoth Energy Services, Inc. [Member]
Owned shares of company	336,447

Supplemental Disclosures of C60

Supplemental Disclosures of Cash Flow Information (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Supplemental Cash Flow Elements [Abstract]
Cash payments for interest	$ 1,500	$ 800
Accounts payable	$ 2,800	$ 600

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($) $ in Thousands	Apr. 17, 2018	Mar. 31, 2018	Dec. 31, 2017
Accrued distributions		$ 300	$ 6,038
Subsequent Event [Member]
Accrued distributions	$ 6,000
Subsequent Event [Member] | Rhino [Member]
Sales of stock ,percentage	50.00%
Reduce debt percentage	50.00%
Sale of stock, description of transaction	Rhino can sell more of the TUSK stock and retain 50% of the proceeds with the other 50% going to reduce debt.