Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
Entity Registrant Name | Rhino Resource Partners LP | |
Entity Central Index Key | 1,490,630 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | RHNO | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 | |
Common Units [Member] | ||
Entity Common Stock, Shares Outstanding | 12,993,869 | |
Subordinated Units [Member] | ||
Entity Common Stock, Shares Outstanding | 1,235,534 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 37 | $ 47 |
Accounts receivable, net of allowance for doubtful accounts ($-0- as of June 30, 2017 and December 31, 2016) | 19,579 | 13,893 |
Inventories | 10,471 | 8,050 |
Advance royalties, current portion | 931 | 898 |
Investment in available for sale securities | 10,580 | 3,532 |
Prepaid expenses and other | 4,648 | 5,133 |
Total current assets | 46,246 | 31,553 |
PROPERTY, PLANT AND EQUIPMENT: | ||
At cost, including coal properties, mine development and construction costs | 457,262 | 449,181 |
Less accumulated depreciation, depletion and amortization | (276,229) | (266,874) |
Net property, plant and equipment | 181,033 | 182,307 |
Advance royalties, net of current portion | 7,767 | 7,652 |
Investment in unconsolidated affiliates | 130 | 5,121 |
Intangible purchase option | 21,750 | 21,750 |
Note receivable-related party | 2,040 | 2,040 |
Other non-current assets | 27,517 | 27,018 |
TOTAL | 286,483 | 277,441 |
CURRENT LIABILITIES: | ||
Accounts payable | 12,854 | 10,420 |
Accrued expenses and other | 15,028 | 10,063 |
Current portion of long-term debt | 12,290 | 10,040 |
Current portion of asset retirement obligations | 917 | 917 |
Total current liabilities | 41,089 | 31,440 |
NON-CURRENT LIABILITIES: | ||
Asset retirement obligations, net of current portion | 23,275 | 22,361 |
Other non-current liabilities | 45,783 | 45,371 |
Total non-current liabilities | 69,058 | 67,732 |
Total liabilities | 110,147 | 99,172 |
PARTNERS’ CAPITAL: | ||
Limited partners | 150,759 | 154,696 |
Subscription receivable from limited partners | (2,000) | (2,000) |
General partner | 8,942 | 8,959 |
Preferred partners | 17,473 | 15,000 |
Preferred partner distribution earned | (2,473) | |
Accumulated other comprehensive income | 3,635 | 1,614 |
Total partners’ capital | 176,336 | 178,269 |
TOTAL | $ 286,483 | $ 277,441 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 0 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
REVENUES: | |||||
Coal sales | $ 54,710 | $ 39,106 | $ 106,491 | $ 75,786 | |
Freight and handling revenues | 187 | 581 | 318 | 1,210 | |
Other revenues | 1,638 | 1,926 | 3,276 | 3,947 | |
Total revenues | 56,535 | 41,613 | 110,085 | 80,943 | |
COSTS AND EXPENSES: | |||||
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) | 46,671 | 33,361 | 91,610 | 62,857 | |
Freight and handling costs | 228 | 516 | 997 | 1,066 | |
Depreciation, depletion and amortization | 5,609 | 5,810 | 11,307 | 11,851 | |
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) | 2,732 | 3,904 | 5,783 | 7,943 | |
Loss/(Gain) on sale/disposal of assets-net | 80 | (25) | 43 | (295) | |
Total costs and expenses | 55,320 | 43,566 | 109,740 | 83,422 | |
INCOME/(LOSS) FROM OPERATIONS | 1,215 | (1,953) | 345 | (2,479) | |
INTEREST AND OTHER (EXPENSE)/INCOME: | |||||
Interest expense | (965) | (1,720) | (2,120) | (3,290) | |
Interest income and other | 31 | 64 | |||
Equity in net (loss)/income of unconsolidated affiliates | 40 | (26) | 36 | (105) | |
Total interest and other (expense) | (925) | (1,715) | (2,084) | (3,331) | |
NET INCOME/(LOSS) BEFORE INCOME TAXES FROM CONTINUING OPERATIONS | 290 | (3,668) | (1,739) | (5,810) | |
INCOME TAXES | |||||
NET INCOME/(LOSS) FROM CONTINUING OPERATIONS | 290 | (3,668) | (1,739) | (5,810) | |
DISCONTINUED OPERATIONS (NOTE 3) | |||||
Loss from discontinued operations | (118,285) | (117,366) | |||
NET INCOME/(LOSS) | 290 | (121,953) | (1,739) | (123,176) | |
Other comprehensive income: | |||||
Fair market value adjustment for available-for-sale investment | 554 | 2,021 | |||
Amortization of actuarial gain | (4,796) | ||||
COMPREHENSIVE INCOME/(LOSS) | $ 844 | $ (121,953) | $ 282 | $ (127,972) | |
Net (loss)/income per limited partner unit, diluted: | |||||
Distributions paid per limited partner unit | [1] | ||||
General Partner [Member] | |||||
INTEREST AND OTHER (EXPENSE)/INCOME: | |||||
NET INCOME/(LOSS) FROM CONTINUING OPERATIONS | $ (4) | $ (24) | $ (17) | $ (67) | |
DISCONTINUED OPERATIONS (NOTE 3) | |||||
Loss from discontinued operations | (784) | (765) | |||
NET INCOME/(LOSS) | (4) | (808) | (17) | (832) | |
Common Unitholders [Member] | |||||
INTEREST AND OTHER (EXPENSE)/INCOME: | |||||
NET INCOME/(LOSS) FROM CONTINUING OPERATIONS | (970) | (3,145) | (3,829) | (4,202) | |
DISCONTINUED OPERATIONS (NOTE 3) | |||||
Loss from discontinued operations | (101,413) | (85,309) | |||
NET INCOME/(LOSS) | $ (970) | $ (104,558) | $ (3,829) | $ (89,511) | |
Net (loss)/income per limited partner unit, basic: | |||||
Net (loss)/income per unit from continuing operations | $ (0.08) | $ (0.40) | $ (0.30) | $ (1.25) | |
Net (loss)/income per unit from discontinued operations | (13.02) | (25.32) | |||
Net (loss)/income per limited partner unit, basic | (0.08) | (13.42) | (0.30) | (26.57) | |
Net (loss)/income per limited partner unit, diluted: | |||||
Net (loss)/income per unit from continuing operations | (0.08) | (0.40) | (0.30) | (1.25) | |
Net (loss)/income per unit from discontinued operations | (13.02) | (25.32) | |||
Net (loss)/income per limited partner unit, diluted | $ (0.08) | $ (13.42) | $ (0.30) | $ (26.57) | |
Weighted average number of limited partner units outstanding, basic | 12,964,000 | 7,788,000 | 12,920,000 | 3,368,000 | |
Weighted average number of limited partner units outstanding, diluted | 12,964,000 | 7,788,000 | 12,920,000 | 3,368,000 | |
Subordinated Unitholders [Member] | |||||
INTEREST AND OTHER (EXPENSE)/INCOME: | |||||
NET INCOME/(LOSS) FROM CONTINUING OPERATIONS | $ (93) | $ (499) | $ (366) | $ (1,541) | |
DISCONTINUED OPERATIONS (NOTE 3) | |||||
Loss from discontinued operations | (16,088) | (31,292) | |||
NET INCOME/(LOSS) | $ (93) | $ (16,587) | $ (366) | $ (32,833) | |
Net (loss)/income per limited partner unit, basic: | |||||
Net (loss)/income per unit from continuing operations | $ (0.08) | $ (0.40) | $ (0.30) | $ (1.25) | |
Net (loss)/income per unit from discontinued operations | (13.02) | (25.32) | |||
Net (loss)/income per limited partner unit, basic | (0.08) | (13.42) | (0.30) | (26.57) | |
Net (loss)/income per limited partner unit, diluted: | |||||
Net (loss)/income per unit from continuing operations | (0.08) | (0.40) | (0.30) | (1.25) | |
Net (loss)/income per unit from discontinued operations | (13.02) | (25.32) | |||
Net (loss)/income per limited partner unit, diluted | $ (0.08) | $ (13.42) | $ (0.30) | $ (26.57) | |
Weighted average number of limited partner units outstanding, basic | 1,236,000 | 1,236,000 | 1,236,000 | 1,236,000 | |
Weighted average number of limited partner units outstanding, diluted | 1,236,000 | 1,236,000 | 1,236,000 | 1,236,000 | |
Preferred Unit Holders [Member] | |||||
INTEREST AND OTHER (EXPENSE)/INCOME: | |||||
NET INCOME/(LOSS) FROM CONTINUING OPERATIONS | $ 1,357 | $ 2,473 | |||
DISCONTINUED OPERATIONS (NOTE 3) | |||||
Loss from discontinued operations | |||||
NET INCOME/(LOSS) | $ 1,357 | $ 2,473 | |||
Net (loss)/income per limited partner unit, basic: | |||||
Net (loss)/income per unit from continuing operations | $ 0.90 | $ 1.65 | |||
Net (loss)/income per unit from discontinued operations | |||||
Net (loss)/income per limited partner unit, basic | 0.90 | 1.65 | |||
Net (loss)/income per limited partner unit, diluted: | |||||
Net (loss)/income per unit from continuing operations | 0.90 | 1.65 | |||
Net (loss)/income per unit from discontinued operations | |||||
Net (loss)/income per limited partner unit, diluted | $ 0.90 | $ 1.65 | |||
Weighted average number of limited partner units outstanding, basic | 1,500,000 | 1,500,000 | |||
Weighted average number of limited partner units outstanding, diluted | 1,500,000 | 1,500,000 | |||
[1] | No distributions were paid for the six months ended June 30, 2017 and 2016. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Distributions paid per limited partner unit |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net (loss) | $ 290 | $ (121,953) | $ (1,739) | $ (123,176) | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 11,307 | 12,178 | |||
Accretion on asset retirement obligations | 948 | 763 | $ 1,486 | ||
Amortization of deferred revenue | (718) | ||||
Amortization of advance royalties | 567 | 570 | |||
Amortization of debt issuance costs | 670 | 998 | |||
Amortization of actuarial gain | (4,796) | ||||
Equity in net loss/(income) of unconsolidated affiliates | (40) | 26 | (36) | 105 | |
Loss on retirement of advance royalties | 140 | 140 | |||
Loss on asset impairments | 118,705 | ||||
(Gain) on sale/disposal of assets—net | 43 | (295) | |||
Equity-based compensation | 260 | 520 | |||
Changes in assets and liabilities: | |||||
Accounts receivable | (5,932) | 1,371 | |||
Inventories | (2,421) | 710 | |||
Advance royalties | (855) | (1,188) | |||
Prepaid expenses and other assets | (1,359) | (697) | |||
Accounts payable | 2,227 | 1,676 | |||
Accrued expenses and other liabilities | 3,497 | (2,626) | |||
Asset retirement obligations | (34) | (142) | |||
Postretirement benefits | (45) | ||||
Net cash provided by operating activities | 7,283 | 4,053 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Additions to property, plant, and equipment | (10,612) | (4,362) | |||
Proceeds from sales of property, plant, and equipment | 406 | 341 | |||
Proceeds from business disposal | 890 | ||||
Net cash used in investing activities | (9,316) | (4,021) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Borrowings on line of credit | 64,750 | 48,800 | |||
Repayments on line of credit | (62,500) | (52,250) | |||
Repayments on long-term debt | (111) | ||||
Distributions to unitholders | (24) | ||||
Payments on debt issuance costs | (227) | (1,510) | |||
Limited partner contributions | 5,000 | ||||
Net cash provided by/(used in) financing activities | 2,023 | (95) | |||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (10) | (63) | |||
CASH AND CASH EQUIVALENTS—Beginning of period | 47 | 78 | 78 | ||
CASH AND CASH EQUIVALENTS—End of period | $ 37 | $ 15 | $ 37 | $ 15 | $ 47 |
Basis of Presentation and Organ
Basis of Presentation and Organization | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Organization | 1. BASIS OF PRESENTATION AND ORGANIZATION Basis of Presentation and Principles of Consolidation Unaudited Interim Financial Information Reclassifications. Debt Classification Organization Reverse Unit Split On April 18, 2016, the Partnership completed a 1-for-10 reverse split on its common units and subordinated units. Pursuant to the reverse split, common unitholders received one common unit for every 10 common units owned on April 18, 2016 and subordinated unitholders received one subordinated unit for every 10 subordinated units owned on April 18, 2016. All common and subordinated units, net income (loss) per unit and distribution per unit references included herein have been adjusted as if the change took place before the date of the earliest transaction reported. Any fractional units resulting from the reverse unit split were rounded to the nearest whole unit. Royal Energy Resources, Inc. Acquisition On January 21, 2016, a definitive agreement (“Definitive Agreement”) was completed between Royal Energy Resources, Inc. (“Royal”) and Wexford Capital LP (“Wexford Capital”) whereby Royal acquired 676,911 issued and outstanding common units of the Partnership from Wexford Capital for $3.5 million. The Definitive Agreement also included the committed acquisition by Royal within sixty days from the date of the Definitive Agreement of all of the issued and outstanding membership interests of Rhino GP LLC, the general partner of the Partnership (the “General Partner”), as well as 945,525 issued and outstanding subordinated units of the Partnership from Wexford Capital for $1.0 million. On March 17, 2016, Royal completed the acquisition of all of the issued and outstanding membership interests of the General Partner as well as the 945,525 issued and outstanding subordinated units from Wexford Capital. Royal obtained control of, and a majority limited partner interest, in the Partnership with the completion of this transaction. On March 21, 2016, the Partnership and Royal entered into a securities purchase agreement (the “Securities Purchase Agreement”) pursuant to which the Partnership issued 6,000,000 common units in the Partnership to Royal in a private placement at $1.50 per common unit for an aggregate purchase price of $9.0 million. Royal paid the Partnership $2.0 million in cash and delivered a promissory note payable to the Partnership (“Rhino Promissory Note”) in the amount of $7.0 million. The promissory note was payable in three installments: (i) $3.0 million on July 31, 2016; (ii) $2.0 million on or before September 30, 2016 and (iii) $2.0 million on or before December 31, 2016. In the event the disinterested members of the board of directors of the General Partner determine that the Partnership does not need the capital that would be provided by either or both installments set forth in (ii) and (iii) above, in each case, the Partnership has the option to rescind Royal’s purchase of 1,333,333 common units and the applicable installment will not be payable (each, a “Rescission Right”). If the Partnership fails to exercise a Rescission Right, in each case, the Partnership has the option to repurchase 1,333,333 common units at $3.00 per common unit from Royal (each, a “Repurchase Option”). The Repurchase Options terminate on December 31, 2017. On May 13, 2016 and September 30, 2016, Royal paid the Partnership $3.0 million and $2.0 million, respectively, for the promissory note installments that were due July 31, 2016 and September 30, 2016, respectively. The payments were made in relation to the Fifth Amendment of the amended and restated credit agreement completed on May 13, 2016. See Note 8 for more information on the Fifth Amendment to the amended and restated credit agreement. On December 30, 2016, the Partnership modified the Securities Purchase Agreement with Royal for the final $2.0 million payment due on or before December 31, 2016 to extend the due date to December 31, 2018 (see “Letter Agreement” discussion below). Option Agreement-Armstrong Energy On December 30, 2016, the Partnership entered into an option agreement (the “Option Agreement”) with Royal, Rhino Resources Partners Holdings, LLC (“Rhino Holdings”), an entity wholly owned by certain investment partnerships managed by Yorktown Partners LLC (“Yorktown”), and the General Partner. Upon execution of the Option Agreement, the Partnership received an option (the “Call Option”) from Rhino Holdings to acquire substantially all of the outstanding common stock of Armstrong Energy, Inc. (“Armstrong Energy”) that is currently owned by investment partnerships managed by Yorktown, representing approximately 97% of the outstanding common stock of Armstrong Energy. The Option Agreement stipulates that the Partnership can exercise the Call Option no earlier than January 1, 2018 and no later than December 31, 2019. In exchange for Rhino Holdings granting the Partnership the Call Option, the Partnership issued 5.0 million common units, representing limited partner interests in the Partnership (the “Call Option Premium Units”) to Rhino Holdings upon the execution of the Option Agreement. The Option Agreement stipulates the Partnership can exercise the Call Option and purchase the common stock of Armstrong Energy in exchange for a number of common units to be issued to Rhino Holdings, which when added with the Call Option Premium Units, will result in Rhino Holdings owning 51% of the fully diluted common units of the Partnership. The purchase of Armstrong Energy through the exercise of the Call Option would also require Royal to transfer a 51% ownership interest in the General Partner to Rhino Holdings. The Partnership’s ability to exercise the Call Option is conditioned upon (i) sixty (60) days having passed since the entry by Armstrong Energy into an agreement with its bondholders to restructure its bonds and (ii) the amendment of the Partnership’s revolving credit facility to permit the acquisition of Armstrong Energy. The Option Agreement also contains an option (the “Put Option”) granted by the Partnership to Rhino Holdings whereby Rhino Holdings has the right, but not the obligation, to cause the Partnership to purchase substantially all of the outstanding common stock of Armstrong Energy from Rhino Holdings under the same terms and conditions discussed above for the Call Option. The exercise of the Put Option is dependent upon (i) the entry by Armstrong Energy into an agreement with its bondholders to restructure its bonds and (ii) the termination and repayment of any outstanding balance under the Partnership’s revolving credit facility. The Option Agreement contains customary covenants, representations and warranties and indemnification obligations for losses arising from the inaccuracy of representations or warranties or breaches of covenants contained in the Option Agreement, the Seventh Amendment (defined below) and the GP Amendment (defined below). Upon the request by Rhino Holdings, the Partnership will also enter into a registration rights agreement that provides Rhino Holdings with the right to demand two shelf registration statements and registration statements on Form S-1, as well as piggyback registration rights for as long as Rhino Holdings owns at least 10% of the outstanding common units. Pursuant to the Option Agreement, the Second Amended and Restated Limited Liability Company Agreement of our general partner was amended (“GP Amendment”). Pursuant to the GP Amendment, Mr. Bryan H. Lawrence was appointed to the board of directors of our general partner as a designee of Rhino Holdings and Rhino Holdings has the right to appoint an additional independent director. Rhino Holdings has the right to appoint two members to the board of directors of our general partner for as long as it continues to own 20% of the common units on an undiluted basis. The GP Amendment also provided Rhino Holdings with the authority to consent to any delegation of authority to any committee of the board of our general partner. Upon the exercise of the Call Option or the Put Option, the Second Amended and Restated Limited Liability Company Agreement of our general partner, as amended, will be further amended to provide that Royal and Rhino Holdings will each have the ability to appoint three directors and that the remaining director will be the chief executive officer of our general partner unless agreed otherwise. Series A Preferred Unit Purchase Agreement On December 30, 2016, the Partnership entered into a Series A Preferred Unit Purchase Agreement (the “Preferred Unit Agreement”) with Weston Energy LLC (“Weston”), an entity wholly owned by certain investment partnerships managed by Yorktown, and Royal. Under the Preferred Unit Agreement, Weston and Royal purchased 1,300,000 and 200,000, respectively, of Series A preferred units representing limited partner interests in the Partnership at a price of $10.00 per Series A preferred unit. The Series A preferred units have the preferences, rights and obligations set forth in the Amended and Restated Partnership Agreement. Weston and Royal paid cash of $11.0 million and $2.0 million, respectively, to the Partnership and Weston assigned to the Partnership a $2.0 million note receivable from Royal originally dated September 30, 2016 (the “Weston Promissory Note”). The Preferred Unit Agreement contains customary representations, warrants and covenants, which include among other things, that, for as long as the Series A preferred units are outstanding, the Partnership will cause CAM Mining, LLC (“CAM Mining”), which comprises the Partnership’s Central Appalachia segment, to conduct its business in the ordinary course consistent with past practice and use reasonable best efforts to maintain and preserve intact its current organization, business and franchise and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having business relationships with CAM Mining. The Preferred Unit Agreement stipulates that upon the request of the holder of the majority of the Partnership’s common units following their conversion from Series A preferred units, as outlined in the Amended and Restated Partnership Agreement (defined below), the Partnership will enter into a registration rights agreement with such holder. Such majority holder has the right to demand two shelf registration statements and registration statements on Form S-1, as well as piggyback registration rights. Letter Agreement Regarding Rhino Promissory Note and Weston Promissory Note On December 30, 2016, the Partnership and Royal entered into a letter agreement whereby they extended the maturity dates of the Weston Promissory Note and the final installment payment of the Rhino Promissory Note to December 31, 2018. The letter agreement further provides that the aggregate $4.0 million balance of the Weston Promissory Note and Rhino Promissory Note may be converted at Royal’s option into a number of shares of Royal’s common stock equal to the outstanding balance multiplied by seventy-five percent (75%) of the volume-weighted average closing price of Royal’s common stock for the 90 days preceding the date of conversion (“Royal VWAP”), subject to a minimum Royal VWAP of $3.50 and a maximum Royal VWAP of $7.50. Fourth Amended and Restated Agreement of Limited Partnership of Rhino Resource Partners LP On December 30, 2016, the general partner entered into the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership (“Amended and Restated Partnership Agreement”) to create, authorize and issue the Series A preferred units. The Series A preferred units are a new class of equity security that rank senior to all classes or series of equity securities of the Partnership with respect to distribution rights and rights upon liquidation. The holders of the Series A preferred units shall be entitled to receive annual distributions equal to the greater of (i) 50% of the CAM Mining free cash flow (as defined below) and (ii) an amount equal to the number of outstanding Series A preferred units multiplied by $0.80. “CAM Mining free cash flow” is defined in the Amended and Restated Partnership Agreement as (i) the total revenue of the Partnership’s Central Appalachia business segment, minus (ii) the cost of operations (exclusive of depreciation, depletion and amortization) for the Partnership’s Central Appalachia business segment, minus (iii) an amount equal to $6.50, multiplied by the aggregate number of coal tons sold by the Partnership from its Central Appalachia business segment. If the Partnership fails to pay any or all of the distributions in respect of the Series A preferred units, such deficiency will accrue until paid in full and the Partnership will not be permitted to pay any distributions on its partnership interests that rank junior to the Series A preferred units, including its common units. The Series A preferred units will be liquidated in accordance with their capital accounts and upon liquidation will be entitled to distributions of property and cash in accordance with the balances of their capital accounts prior to such distributions to equity securities that rank junior to the Series A preferred units. The Series A preferred units will vote on an as-converted basis with the common units, and the Partnership will be restricted from taking certain actions without the consent of the holders of a majority of the Series A preferred units, including: (i) the issuance of additional Series A preferred units, or securities that rank senior or equal to the Series A preferred units; (ii) the sale or transfer of CAM Mining or a material portion of its assets; (iii) the repurchase of common units, or the issuance of rights or warrants to holders of common units entitling them to purchase common units at less than fair market value; (iv) consummation of a spin off; (v) the incurrence, assumption or guaranty of indebtedness for borrowed money in excess of $50.0 million except indebtedness relating to entities or assets that are acquired by the Partnership or its affiliates that is in existence at the time of such acquisition or (vi) the modification of CAM Mining’s accounting principles or the financial or operational reporting principles of the Partnership’s Central Appalachia business segment, subject to certain exceptions. The Partnership will have the option to convert the outstanding Series A preferred units at any time on or after the time at which the amount of aggregate distributions paid in respect of each Series A preferred unit exceeds $10.00 per unit. Each Series A preferred unit will convert into a number of common units equal to the quotient (the “Series A Conversion Ratio”) of (i) the sum of $10.00 and any unpaid distributions in respect of such Series A Preferred Unit divided by (ii) 75% of the volume-weighted average closing price of the common units for the preceding 90 trading days (the “VWAP”); provided however, that the VWAP will be capped at a minimum of $2.00 and a maximum of $10.00. On December 31, 2021, all outstanding Series A preferred units will convert into common units at the then applicable Series A Conversion Ratio. Delisting of Common Units from NYSE On December 17, 2015, the New York Stock Exchange (“NYSE”) notified the Partnership that the NYSE had determined to commence proceedings to delist its common units from the NYSE as a result of the Partnership’s failure to comply with the continued listing standard set forth in Section 802.01B of the NYSE Listed Company Manual to maintain an average global market capitalization over a consecutive 30 trading-day period of at least $15 million for our common units. The NYSE also suspended the trading of the Partnership’s common units at the close of trading on December 17, 2015. On January 4, 2016, the Partnership filed an appeal with the NYSE to review the suspension and delisting determination of the Partnership’s common units. The NYSE held a hearing regarding our appeal on April 20, 2016 and affirmed its prior decision to delist the Partnership’s common units. On April 27, 2016, the NYSE filed with the SEC a notification of removal from listing and registration on Form 25 to delist the Partnership’s common units and terminate the registration of its common units under Section 12(b) of the Securities Exchange Act of 1934. The delisting became effective on May 9, 2016. The Partnership’s common units trade on the OTCQB Marketplace under the ticker symbol “RHNO.” The Partnership is exploring the possibility of listing its common units on the NASDAQ Stock Market (“NASDAQ”), pending its capability to meet the NASDAQ initial listing standards. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and General | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and General | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL Investments in Unconsolidated Affiliates. In December 2012, the Partnership made an initial investment in a new joint venture, Muskie Proppant LLC (“Muskie”), with affiliates of Wexford Capital. In November 2014, the Partnership contributed its investment interest in Muskie to Mammoth Energy Partners LP (“Mammoth”) in return for a limited partner interest in Mammoth. In October 2016, the Partnership contributed its limited partner interests in Mammoth to Mammoth Energy Services, Inc. (NASDAQ: TUSK) (“Mammoth Inc.”) in exchange for 234,300 shares of common stock of Mammoth, Inc. In September 2014, the Partnership made an initial investment of $5.0 million in a new joint venture, Sturgeon Acquisitions LLC (“Sturgeon”), with affiliates of Wexford Capital and Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport”). The Partnership accounts for the investment in this joint venture and results of operations under the equity method based upon its ownership percentage. The Partnership recorded its proportionate share of the operating income for this investment for the three and six months ended June 30, 2017 of approximately $40,000 and $36,000, respectively. The Partnership recorded its proportionate share of the operating (loss) for Sturgeon for the three and six months ended June 30, 2016 of approximately ($26,000) and ($0.1) million, respectively. In June 2017, the Partnership contributed its limited partner interests in Sturgeon to Mammoth Inc. in exchange for 336,447 shares of common stock of Mammoth Inc. As of June 30, 2017, the Partnership owned 568,794 shares of Mammoth Inc. As of June 30, 2017 and December 31, 2016, the Partnership recorded a fair market value adjustment of $2.0 million and $1.6 million, respectively, for its available-for-sale investment in Mammoth Inc. based on the market value of the shares at June 30, 2017 and December 31, 2016, respectively, which was recorded in Other Comprehensive Income. As of June 30, 2017 and December 31, 2016, the Partnership has recorded its investment in Mammoth Inc. as a short-term asset, which the Partnership has classified as available-for-sale. The Partnership has included its investment in Mammoth Inc. and its prior investment in Muskie and Sturgeon in its Other category for segment reporting purposes. Recently Issued Accounting Standards. Revenue Recognition Revenue Recognition—Construction-Type and Production-Type Contracts Property, Plant, and Equipment Intangibles—Goodwill and Other In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. DISCONTINUED OPERATIONS Elk Horn Coal Leasing In August 2016, the Partnership entered into an agreement to sell its Elk Horn coal leasing company (“Elk Horn”) to a third party for total cash consideration of $12.0 million. The Partnership received $10.5 million in cash consideration upon the closing of the Elk Horn transaction and the remaining $1.5 million of consideration will be paid in ten equal monthly installments of $150,000 on the 20th of each calendar month beginning on September 20, 2016. The Partnership recorded a loss of $119.9 million from the Elk Horn disposal during the year ended December 31, 2016. The previous operating results of Elk Horn have been reclassified and reported on the (Gain)/loss from discontinued operations line on the Partnership’s unaudited condensed consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2016. Major components of net (loss)/income from discontinued operations for the three and six months ended June 30, 2017 and 2016 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Major line items constituting (loss)/income from discontinued operations for the Elk Horn disposal: Other revenues $ - $ 1,127 $ - $ 2,226 Total revenues - 1,127 2,226 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) - 499 - 454 Depreciation, depletion and amortization - 121 - 326 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) - 82 - 97 (Gain) on sale/disposal of assets, net - - - Loss on asset impairment 118,705 - 118,705 Interest expense and other - 5 - 10 Total costs and expenses - 119,412 - 119,592 Loss from discontinued operations before income taxes for the Elk Horn disposal - (118,285 ) - (117,366 ) Income taxes - - Net loss from discontinued operations $ - $ (118,285 ) $ - $ (117,366 ) Cash Flows. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 (in thousands) Other prepaid expenses $ 1,180 $ 707 Debt issuance costs—net 796 1,239 Prepaid insurance 2,011 1,432 Prepaid leases 96 77 Supply inventory 565 614 Deposits - 164 Note receivable-current portion - 900 Total Prepaid expenses and other $ 4,648 $ 5,133 Debt issuance costs were included in Prepaid expenses and other current assets as of June 30, 2017 and December 31, 2016 since the Partnership classified its credit facility balance as a current liability. See Note 8 for further information on the amendments to the amended and restated senior secured credit facility. As of December 31, 2016, the note receivable balance of $0.9 million related to the $1.5 million of consideration to be paid in ten equal monthly installments of $150,000 for the Elk Horn sale discussed earlier. The note receivable was paid in full as of June 30, 2017. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 5. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, including coal properties and mine development and construction costs, as of June 30, 2017 and December 31, 2016 are summarized by major classification as follows: Useful Lives June 30, 2017 December 31, 2016 (in thousands) Land $ 15,973 $ 16,377 Mining and other equipment and related facilities 2 - 20 Years 313,115 305,626 Mine development costs 1 - 15 Years 57,459 57,392 Coal properties and oil and natural gas properties 1 - 15 Years 67,989 67,989 Construction work in process 2,726 1,797 Total 457,262 449,181 Less accumulated depreciation, depletion and amortization (276,229 ) (266,874 ) Net $ 181,033 $ 182,307 Depreciation expense for mining and other equipment and related facilities, depletion expense for coal properties and oil and natural gas properties, amortization expense for mine development costs, amortization expense for intangible assets and amortization expense for asset retirement costs for the three and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 4,384 $ 5,023 $ 8,820 $ 10,310 Depletion expense for coal properties and oil and natural gas properties 415 427 770 820 Amortization expense for mine development costs 788 379 1,545 782 Amortization expense for asset retirement costs 22 (19 ) 172 (61 ) Total depreciation, depletion and amortization $ 5,609 $ 5,810 $ 11,307 $ 11,851 Taylorville Land Sale On December 30, 2015, the Partnership completed the sale of its land surface rights for the Taylorville property in central Illinois for approximately $7.2 million in net proceeds. The sale agreement allows the Partnership to retain the mining permit and control of the proven and probable coal reserves at the Taylorville property as the Partnership has the option to repurchase the rights to the land within seven years from the date of the sale agreement. In accordance with ASC 360-20-40-38, Real Estate Sales - Derecognition |
Intangible and Other Non-curren
Intangible and Other Non-current Assets | 6 Months Ended |
Jun. 30, 2017 | |
Intangible And Other Non-current Assets | |
Intangible and Other Non-current Assets | 6. INTANGIBLE AND OTHER NON-CURRENT ASSETS Other non-current assets as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 (in thousands) Deposits and other $ 219 $ 218 Due (to)/from Rhino GP (60 ) (573 ) Non-current receivable 27,157 27,157 Deferred expenses 201 216 Total $ 27,517 $ 27,018 Non-current receivable Balance Sheet Note receivable-related party Call Option-Armstrong Energy The Partnership has determined the value of the common units issued at December 30, 2016 of $21.8 million constituted an amount that would be applied to the potential acquisition of Armstrong Energy, as discussed in Note 1. Because facts and circumstances, including the likelihood of consummation of the contemplated transaction, have not changed substantially since the agreement was executed, the Partnership has concluded that there has been no substantial change in the value of the Call Option. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 (in thousands) Payroll, bonus and vacation expense $ 2,191 $ 1,496 Non income taxes 3,608 2,252 Royalty expenses 2,235 1,617 Accrued interest 605 601 Health claims 713 630 Workers’ compensation & pneumoconiosis 2,450 2,450 Accrued insured litigation claims 26 277 Preferred unit distribution 2,473 - Other 727 740 Total $ 15,028 $ 10,063 The $26,000 and $277,000 accrued for insured litigation claims as of June 30, 2017 and December 31, 2016, respectively, consists of probable and estimable litigation claims that are the primary obligation of the Partnership. The amount accrued for litigation claims is also due from the Partnership’s insurance providers and is included in Accounts receivable, net of allowance for doubtful accounts on the Partnership’s unaudited condensed consolidated statements of financial position. The Partnership presents this amount on a gross asset and liability basis, as a right of setoff does not exist per the accounting guidance in ASC Topic 210, Balance Sheet |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 8. DEBT Debt as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 (in thousands) Senior secured credit facility with PNC Bank, N.A. $ 12,290 $ 10,040 Other notes payable - - Total 12,290 10,040 Less current portion (12,290 ) (10,040 ) Long-term debt $ - $ - Senior Secured Credit Facility with PNC Bank, N.A. On March 17, 2016, the Partnership entered into a fourth amendment (the “Fourth Amendment”) of the amended and restated credit agreement. The Fourth Amendment amended the definition of change of control in the amended and restated credit agreement to permit Royal to purchase the membership interests of the General Partner. The Fourth Amendment also eliminated the option to borrow funds utilizing the LIBOR rate plus an applicable margin and establishes the borrowing rate for all borrowings under the facility to be based upon the current PRIME rate plus an applicable margin of 3.50%. On May 13, 2016, the Partnership entered into a fifth amendment of the amended and restated credit agreement, which extended the term to July 31, 2017. In July 2016, the Partnership entered into a sixth amendment (the “Sixth Amendment”) of its amended and restated senior secured credit agreement that permitted the sale of Elk Horn that was discussed earlier. The Sixth Amendment further reduced the maximum commitment amount allowed under the credit facility by $375,000 each quarterly period beginning September 30, 2016 through June 30, 2017 for the additional $1.5 million that was to be received from the Elk Horn sale. In December 2016, the Partnership entered into a seventh amendment of its amended and restated credit agreement (the “Seventh Amendment”). The Seventh Amendment allows for the Series A preferred units as outlined in the Amended and Restated Partnership Agreement. The Seventh Amendment immediately reduces the revolving credit commitments by $11.0 million and provides for additional revolving credit commitment reductions of $2.0 million each on June 30, 2017 and September 30, 2017. The Seventh Amendment further reduces the revolving credit commitments over time on a dollar-for-dollar basis for the net cash proceeds received from any asset sales after the Seventh Amendment date once the aggregate net cash proceeds received exceeds $2.0 million. The Seventh Amendment alters the maximum leverage ratio to 4.0 to 1.0 effective December 31, 2016 through May 31, 2017 and 3.5 to 1.0 from June 30, 2017 through December 31, 2017. The maximum leverage ratio shall be reduced by 0.50 to 1.0 for every $10.0 million of net cash proceeds, in the aggregate, received after the Seventh Amendment date from (i) the issuance of any equity by the Partnership and/or (ii) the disposition of any assets in excess of $2.0 million in the aggregate, provided, however, that in no event will the maximum leverage ratio be reduced below 3.0 to 1.0. The Seventh Amendment alters the minimum consolidated EBITDA figure, as calculated on a rolling twelve months basis, to $12.5 million from December 31, 2016 through May 31, 2017 and $15.0 million from June 30, 2017 through December 31, 2017. The Seventh Amendment alters the maximum capital expenditures allowed, as calculated on a rolling twelve months basis, to $20.0 million through the expiration of the credit facility. A condition precedent to the effectiveness of the Seventh Amendment is the receipt of the $13.0 million of cash proceeds received by the Partnership from the issuance of the Series A preferred units pursuant to the Preferred Unit Agreement, which was used to repay outstanding borrowings under the revolving credit facility. Per the Seventh Amendment, the receipt of $13.0 million cash proceeds fulfills the required Royal equity contribution, which was a requirement of prior amendments to the credit agreement. On March 23, 2017, the Partnership entered into an eighth amendment (the “Eighth Amendment”) of its amended and restated credit agreement that allows the annual auditor’s report for the years ended December 31, 2016 and 2015 to contain a qualification with respect to the short-term classification of the Partnership’s credit facility balance without creating a default under the credit agreement. As of June 30, 2017 and December 31, 2016, the Partnership was in compliance with respect to all covenants contained in its credit agreement. On June 9, 2017, the Partnership entered into a ninth amendment (the “Ninth Amendment”) of its amended and restated credit agreement that permitted outstanding letters of credit to be replaced with different counterparties without affecting the revolving credit commitments under the credit agreement. The Ninth Amendment also permits certain lease and sale leaseback transactions under the credit agreement that do not affect the revolving credit commitments under the credit agreement for asset dispositions and also do not factor in the calculation of the maximum capital expenditures allowed under the credit agreement. At June 30, 2017, the Operating Company had borrowed $12.3 million at a variable interest rate of PRIME plus 3.50% (7.75% at June 30, 2017). In addition, the Operating Company had outstanding letters of credit of $26.1 million at a fixed interest rate of 5.00% at June 30, 2017. Based upon a maximum borrowing capacity of 3.50 times a trailing twelve-month EBITDA calculation (as defined in the credit agreement), the Operating Company had not used $7.9 million of the borrowing availability at June 30, 2017. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 9. ASSET RETIREMENT OBLIGATIONS The changes in asset retirement obligations for the six months ended June 30, 2017 and the year ended December 31, 2016 are as follows: Six months ended Year ended June 30, 2017 December 31, 2016 (in thousands) Balance at beginning of period (including current portion) $ 23,278 $ 23,077 Accretion expense 948 1,486 Adjustments to the liability from annual recosting and other - (1,085 ) Liabilities settled (34 ) (200 ) Balance at end of period 24,192 23,278 Less current portion of asset retirement obligation (917 ) (917 ) Long-term portion of asset retirement obligation $ 23,275 $ 22,361 |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 10. EMPLOYEE BENEFITS In conjunction with the acquisition of the coal operations of American Electric Power on April 16, 2004, the Operating Company acquired a postretirement benefit plan that provided healthcare to eligible employees at its Hopedale operations. The Partnership has no other postretirement plans. On December 10, 2015, the Partnership notified the employees at its Hopedale operations that healthcare benefits from the postretirement benefit plan would cease on January 31, 2016. The negative plan amendment that arose on December 10, 2015 resulted in an approximate $6.5 million prior service cost benefit. The Partnership amortized the prior service cost benefit over the remaining term of the benefits provided through January 31, 2016. For the six months ended June 30, 2016, the Partnership recognized a benefit of approximately $3.9 million from the plan amendment in the Cost of operations line of the unaudited condensed consolidated statements of operations and comprehensive income. 401(k) Plans Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 (in thousands) 401(k) plan expense $ 350 $ 402 $ 720 $ 706 |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | 11. EQUITY-BASED COMPENSATION In October 2010, the General Partner established the Rhino Long-Term Incentive Plan (the “Plan” or “LTIP”). The Plan is intended to promote the interests of the Partnership by providing to employees, consultants and directors of the General Partner, the Partnership or affiliates of either, incentive compensation awards to encourage superior performance. The LTIP provides for grants of restricted units, unit options, unit appreciation rights, phantom units, unit awards, and other unit-based awards. As discussed in Note 1, on March 17, 2016, Royal completed the acquisition of all of the issued and outstanding membership interests of Rhino GP LLC as well as 945,525 issued and outstanding subordinated units from Wexford Capital. Royal obtained control of, and a majority limited partner interest, in the Partnership with the completion of this transaction, which constituted a change in control of the Partnership. The language in the Partnership’s phantom unit and restricted unit grant agreements states that all outstanding, unvested units would become immediately vested upon a change in control. For the six months ended June 30, 2016, the Partnership recognized approximately $10,000 of expense from the vesting of these units as a result of the change in control. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES Coal Sales Contracts and Contingencies Year Tons (in thousands) Number of customers 2017Q3-Q4 1,884 15 2018 1,001 5 2019 300 1 Some of the contracts have sales price adjustment provisions, subject to certain limitations and adjustments, based on a variety of factors and indices. Purchase Commitments Purchased Coal Expenses Leases Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 (in thousands) Lease expense $ 978 $ 1,049 $ 2,491 $ 2,078 Royalty expense $ 3,950 $ 2,606 $ 7,327 $ 4,948 Joint Ventures Prior to the Partnership’s contribution of Sturgeon to Mammoth, Inc. in June 2017, the Partnership may have contributed additional capital to the Sturgeon joint venture that was formed in the third quarter of 2014. The Partnership made an initial capital contribution of $5.0 million during the third quarter ended September 30, 2014 based upon its proportionate ownership interest. The Partnership did not make any capital contributions to the Sturgeon joint venture during the six months ended June 30, 2017 or 2016. See Note 2 for discussion on the contribution of Sturgeon to Mammoth, Inc. Series A preferred unit distributions- , |
Earnings Per Unit ('EPU')
Earnings Per Unit ('EPU') | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Unit [Abstract] | |
Earnings Per Unit ("EPU") | 13. EARNINGS PER UNIT (“EPU”) On April 18, 2016, the Partnership completed a 1-for-10 reverse split on its common units and subordinated units. The following tables present a reconciliation of the numerators and denominators of the basic and diluted EPU calculations for the periods ended June 30, 2017 and 2016, which include the retrospective application of the 1-for-10 reverse unit split: Diluted EPU gives effect to all dilutive potential common units outstanding during the period using the treasury stock method. Diluted EPU excludes all dilutive potential units calculated under the treasury stock method if their effect is anti-dilutive. Since the Partnership incurred total net losses for the three and six months ended June 30, 2017 and 2016, all potential dilutive units were excluded from the diluted EPU calculation for these periods. Three months ended June 30, 2017 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders Numerator: (in thousands, except per unit data) Interest in net (loss)/income: Net (loss)/income from continuing operations $ (4 ) $ (970 ) $ (93 ) $ 1,357 Net(loss)/income from discontinued operations - - - - Total interest in net (loss)/income $ (4 ) $ (970 ) $ (93 ) $ 1,357 Denominator: Weighted average units used to compute basic EPU n/a 12,964 1,236 1,500 Weighted average units used to compute diluted EPU n/a 12,964 1,236 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.08 ) $ (0.08 ) $ 0.90 Net(loss/income) per unit from discontinued operations n/a - - - Net (loss)/income per common unit, basic n/a $ (0.08 ) $ (0.08 ) $ 0.90 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.08 ) $ (0.08 ) 0.90 Net (loss)/income per unit from discontinued operations n/a - - - Net (loss)/income per common unit, diluted n/a $ (0.08 ) $ (0.08 ) 0.90 Six months ended June 30, 2017 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders Numerator: (in thousands, except per unit data) Interest in net (loss)/income: Net (loss)/income from continuing operations $ (17 ) $ (3,829 ) $ (366 ) $ 2,473 Net (loss)/income from discontinued operations - - - - Total interest in net (loss)/income $ (17 ) $ (3,829 ) $ (366 ) $ 2,473 Denominator: Weighted average units used to compute basic EPU n/a 12,920 1,236 1,500 Weighted average units used to compute diluted EPU n/a 12,920 1,236 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.30 ) $ (0.30 ) $ 1.65 Net (loss)/income per unit from discontinued operations n/a - - - Net (loss)/income per common unit, basic n/a $ (0.30 ) $ (0.30 ) $ 1.65 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.30 ) $ (0.30 ) 1.65 Net (loss)/income per unit from discontinued operations n/a - - - Net (loss)/income per common unit, diluted n/a $ (0.30 ) $ (0.30 ) 1.65 Three months ended June 30, 2016 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders Numerator: (in thousands, except per unit data) Interest in net (loss): Net (loss) from continuing operations $ (24 ) $ (3,145 ) $ (499 ) n/a Net (loss) from discontinued operations (784 ) (101,413 ) (16,088 ) n/a Total interest in net (loss) $ (808 ) $ (104,558 ) $ (16,587 ) n/a Denominator: Weighted average units used to compute basic EPU n/a 7,788 1,236 n/a Weighted average units used to compute diluted EPU n/a 7,788 1,236 n/a Net (loss) per limited partner unit, basic Net (loss) per unit from continuing operations n/a $ (0.40 ) $ (0.40 ) n/a Net (loss) per unit from discontinued operations n/a (13.02 ) (13.02 ) n/a Net (loss) per common unit, basic n/a $ (13.42 ) $ (13.42 ) n/a Net (loss) per limited partner unit, diluted Net (loss) per unit from continuing operations n/a $ (0.40 ) $ (0.40 ) n/a Net (loss) per unit from discontinued operations n/a (13.02 ) (13.02 ) n/a Net (loss) per common unit, diluted n/a $ (13.42 ) $ (13.42 ) n/a Six months ended June 30, 2016 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders Numerator: (in thousands, except per unit data) Interest in net (loss): Net (loss) from continuing operations $ (67 ) $ (4,202 ) $ (1,541 ) n/a Net (loss) from discontinued operations (765 ) (85,309 ) (31,292 ) n/a Total interest in net (loss) $ (832 ) $ (89,511 ) $ (32,833 ) n/a Denominator: Weighted average units used to compute basic EPU n/a 3,368 1,236 n/a Weighted average units used to compute diluted EPU n/a 3,368 1,236 n/a Net (loss) per limited partner unit, basic Net (loss) per unit from continuing operations n/a $ (1.25 ) $ (1.25 ) n/a Net (loss) per unit from discontinued operations n/a (25.32 ) (25.32 ) n/a Net (loss) per common unit, basic n/a $ (26.57 ) $ (26.57 ) n/a Net (loss) per limited partner unit, diluted Net (loss) per unit from continuing operations n/a $ (1.25 ) $ (1.25 ) n/a Net (loss) per unit from discontinued operations n/a (25.32 ) (25.32 ) n/a Net (loss) per common unit, diluted n/a $ (26.57 ) $ (26.57 ) n/a |
Major Customers
Major Customers | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Major Customers | 14. MAJOR CUSTOMERS The Partnership had revenues or receivables from the following major customers that in each period equaled or exceeded 10% of revenues: June 30 December 31 Six months Six months 2017 2016 ended ended Receivable Receivable June 30 June 30 Balance Balance 2017 Sales 2016 Sales (in thousands) LG&E and KU $ 2,210 $ 1,496 $ 21,162 $ - PacifiCorp Energy 1,560 1,509 7,777 10,511 Big Rivers Electric Corporation 947 - 13,234 10,119 PPL Corporation - - - 20,624 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 15. FAIR VALUE OF FINANCIAL INSTRUMENTS The Partnership determines the fair value of assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. The fair value hierarchy is based on whether the inputs to valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Partnership’s assumptions of what market participants would use. value hierarchy includes three levels of inputs that may be used to measure fair value as described below: Level One - Quoted prices for identical instruments in active markets. Level Two - The fair value of the assets and liabilities included in Level 2 are based on standard industry income approach models that use significant observable inputs. Level Three - Unobservable inputs significant to the fair value measurement supported by little or no market activity. In those cases when the inputs used to measure fair value meet the definition of more than one level of the fair value hierarchy, the lowest level input that is significant to the fair value measurement in its totality determines the applicable level in the fair value hierarchy. The book values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of their respective fair values because of the immediate short-term maturity of these financial instruments. The fair value of the Partnership’s amended and restated senior secured credit facility was based upon a Level 2 measurement utilizing a market approach, which incorporated market-based interest rate information with credit risks similar to the Partnership. The fair value of the Partnership’s amended and restated senior secured credit facility approximates the carrying value at June 30, 2017. As of June 30, 2017 and December 31, 2016, the Partnership had a recurring fair value measurement relating to its investment in Mammoth, Inc. As discussed in Note 2, in October 2016, the Partnership contributed its limited partner interests in Mammoth to Mammoth, Inc. in exchange for 234,300 shares of common stock of Mammoth, Inc. The common stock of Mammoth, Inc. began trading on the NASDAQ Global Select Market in October 2016 under the ticker symbol TUSK and the Partnership sold 1,953 shares during the initial public offering of Mammoth, Inc. and received proceeds of approximately $27,000. In June 2017, the Partnership contributed its limited partner interests in Sturgeon to Mammoth Inc. in exchange for 336,447 shares of common stock of Mammoth, Inc. As of June 30, 2017, the Partnership owned 568,794 shares of Mammoth, Inc. The Partnership’s shares of Mammoth, Inc. are classified as an available-for-sale investment on the Partnership’s unaudited condensed consolidated statements of financial position. Based on the availability of a quoted price, the recurring fair value measurement of the Mammoth, Inc. shares is a Level 1 measurement. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 16. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION The unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2017 and 2016 excludes approximately $1.1 million and $1.2 million, respectively, of property additions, which are recorded in accounts payable. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 17. SEGMENT INFORMATION The Partnership produces and markets coal from surface and underground mines in Kentucky, West Virginia, Ohio and Utah. The Partnership sells primarily to electric utilities in the United States. For the three and six months ended June 30, 2017, the Partnership had four reportable segments: Central Appalachia (comprised of both surface and underground mines located in Eastern Kentucky and Southern West Virginia), Northern Appalachia (comprised of both surface and underground mines located in Ohio), Rhino Western (comprised of an underground mine in Utah) and Illinois Basin (comprised of an underground mine in western Kentucky). The Partnership’s Other category is comprised of the Partnership’s ancillary businesses and its remaining oil and natural gas activities. The Partnership has not provided disclosure of total expenditures by segment for long-lived assets, as the Partnership does not maintain discrete financial information concerning segment expenditures for long lived-assets, and accordingly such information is not provided to the Partnership’s chief operating decision maker. The information provided in the following tables represents the primary measures used to assess segment performance by the Partnership’s chief operating decision maker. Reportable segment results of operations for the three months ended June 30, 2017 are as follows (Note: “DD&A” refers to depreciation, depletion and amortization): Central Northern Rhino Illinois Total Appalachia Appalachia Western Basin Other Consolidated (in thousands) Total revenues $ 25,675 $ 4,489 $ 8,763 $ 17,604 $ 4 $ 56,535 DD&A 1,949 418 1,200 1,949 93 5,609 Interest expense - - - - 965 965 Net income (loss) from continuing operations $ 3,337 $ (1,576 ) $ 740 $ 975 $ (3,186 ) $ 290 Reportable segment results of operations for the three months ended June 30, 2016 are as follows: Central Northern Rhino Illinois Total Appalachia Appalachia Western Basin Other Consolidated (in thousands) Total revenues $ 5,629 $ 11,581 $ 8,324 $ 16,000 $ 79 $ 41,613 DD&A 1,586 811 1,404 1,867 142 5,810 Interest expense 207 85 40 82 1,306 1,720 Net income (loss) from continuing operations $ (2,280 ) $ 2,296 $ 499 $ 229 $ (4,412 ) $ (3,668 ) Reportable segment results of operations for the six months ended June 30, 2017 as are follows: Central Northern Rhino Illinois Total Appalachia Appalachia Western Basin Other Consolidated (in thousands) Total revenues $ 48,988 $ 10,615 $ 16,061 $ 34,412 $ 9 $ 110,085 DD&A 3,922 916 2,316 3,954 199 11,307 Interest expense - - - - 2,120 2,120 Net income (loss) from continuing operations $ 5,631 $ (2,356 ) $ 154 $ 1,628 $ (6,796 ) $ (1,739 ) Reportable segment results of operations for the six months ended June 30, 2016 as are follows: Central Northern Rhino Illinois Total Appalachia Appalachia Western Basin Other Consolidated (in thousands) Total revenues $ 11,241 $ 20,733 $ 17,921 $ 30,880 $ 168 $ 80,943 DD&A 3,309 1,764 2,815 3,680 283 11,851 Interest expense 390 165 77 152 2,506 3,290 Net income (loss) from continuing operations $ (5,280 ) $ 6,990 $ 460 $ 546 $ (8,526 ) $ (5,810 ) |
Accumulated Distribution Arrear
Accumulated Distribution Arrearages | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Distribution Arrearages | |
Accumulated Distribution Arrearages | 18. ACCUMULATED DISTRIBUTION ARREARAGES Beginning with the quarter ended June 30, 2015 and continuing through the quarter ended June 30, 2017, we have suspended the cash distribution on our common units. For each of the quarters ended September 30, 2014, December 31, 2014 and March 31, 2015, we announced cash distributions per common unit at levels lower than the minimum quarterly distribution. We have not paid any distribution on our subordinated units for any quarter after the quarter ended March 31, 2012. The distribution suspension and prior reductions were the result of prolonged weakness in the coal markets, which has continued to adversely affect our cash flow. The current amount of accumulated arrearages as of June 30, 2017 related to the common unit distribution was approximately $322.8 million. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies and General (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates. In December 2012, the Partnership made an initial investment in a new joint venture, Muskie Proppant LLC (“Muskie”), with affiliates of Wexford Capital. In November 2014, the Partnership contributed its investment interest in Muskie to Mammoth Energy Partners LP (“Mammoth”) in return for a limited partner interest in Mammoth. In October 2016, the Partnership contributed its limited partner interests in Mammoth to Mammoth Energy Services, Inc. (NASDAQ: TUSK) (“Mammoth Inc.”) in exchange for 234,300 shares of common stock of Mammoth, Inc. In September 2014, the Partnership made an initial investment of $5.0 million in a new joint venture, Sturgeon Acquisitions LLC (“Sturgeon”), with affiliates of Wexford Capital and Gulfport Energy Corporation (NASDAQ: GPOR) (“Gulfport”). The Partnership accounts for the investment in this joint venture and results of operations under the equity method based upon its ownership percentage. The Partnership recorded its proportionate share of the operating income for this investment for the three and six months ended June 30, 2017 of approximately $40,000 and $36,000, respectively. The Partnership recorded its proportionate share of the operating (loss) for Sturgeon for the three and six months ended June 30, 2016 of approximately ($26,000) and ($0.1) million, respectively. In June 2017, the Partnership contributed its limited partner interests in Sturgeon to Mammoth Inc. in exchange for 336,447 shares of common stock of Mammoth Inc. As of June 30, 2017, the Partnership owned 568,794 shares of Mammoth Inc. As of June 30, 2017 and December 31, 2016, the Partnership recorded a fair market value adjustment of $2.0 million and $1.6 million, respectively, for its available-for-sale investment in Mammoth Inc. based on the market value of the shares at June 30, 2017 and December 31, 2016, respectively, which was recorded in Other Comprehensive Income. As of June 30, 2017 and December 31, 2016, the Partnership has recorded its investment in Mammoth Inc. as a short-term asset, which the Partnership has classified as available-for-sale. The Partnership has included its investment in Mammoth Inc. and its prior investment in Muskie and Sturgeon in its Other category for segment reporting purposes. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards. Revenue Recognition Revenue Recognition—Construction-Type and Production-Type Contracts Property, Plant, and Equipment Intangibles—Goodwill and Other In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Major Components of Net (Loss) Income from Discontinued Operations | Major components of net (loss)/income from discontinued operations for the three and six months ended June 30, 2017 and 2016 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Major line items constituting (loss)/income from discontinued operations for the Elk Horn disposal: Other revenues $ - $ 1,127 $ - $ 2,226 Total revenues - 1,127 2,226 Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) - 499 - 454 Depreciation, depletion and amortization - 121 - 326 Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) - 82 - 97 (Gain) on sale/disposal of assets, net - - - Loss on asset impairment 118,705 - 118,705 Interest expense and other - 5 - 10 Total costs and expenses - 119,412 - 119,592 Loss from discontinued operations before income taxes for the Elk Horn disposal - (118,285 ) - (117,366 ) Income taxes - - Net loss from discontinued operations $ - $ (118,285 ) $ - $ (117,366 ) |
Prepaid Expenses And Other Cu27
Prepaid Expenses And Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 (in thousands) Other prepaid expenses $ 1,180 $ 707 Debt issuance costs—net 796 1,239 Prepaid insurance 2,011 1,432 Prepaid leases 96 77 Supply inventory 565 614 Deposits - 164 Note receivable-current portion - 900 Total Prepaid expenses and other $ 4,648 $ 5,133 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment by Major Classification | Property, plant and equipment, including coal properties and mine development and construction costs, as of June 30, 2017 and December 31, 2016 are summarized by major classification as follows: Useful Lives June 30, 2017 December 31, 2016 (in thousands) Land $ 15,973 $ 16,377 Mining and other equipment and related facilities 2 - 20 Years 313,115 305,626 Mine development costs 1 - 15 Years 57,459 57,392 Coal properties and oil and natural gas properties 1 - 15 Years 67,989 67,989 Construction work in process 2,726 1,797 Total 457,262 449,181 Less accumulated depreciation, depletion and amortization (276,229 ) (266,874 ) Net $ 181,033 $ 182,307 |
Schedule of Depreciation, Depletion, and Amortization | Depreciation expense for mining and other equipment and related facilities, depletion expense for coal properties and oil and natural gas properties, amortization expense for mine development costs, amortization expense for intangible assets and amortization expense for asset retirement costs for the three and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Depreciation expense-mining and other equipment and related facilities $ 4,384 $ 5,023 $ 8,820 $ 10,310 Depletion expense for coal properties and oil and natural gas properties 415 427 770 820 Amortization expense for mine development costs 788 379 1,545 782 Amortization expense for asset retirement costs 22 (19 ) 172 (61 ) Total depreciation, depletion and amortization $ 5,609 $ 5,810 $ 11,307 $ 11,851 |
Intangible and Other Non-curr29
Intangible and Other Non-current Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Intangible And Other Non-current Assets | |
Schedule of Other Non-current Assets | Other non-current assets as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 (in thousands) Deposits and other $ 219 $ 218 Due (to)/from Rhino GP (60 ) (573 ) Non-current receivable 27,157 27,157 Deferred expenses 201 216 Total $ 27,517 $ 27,018 |
Accrued Expenses and Other Cu30
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 (in thousands) Payroll, bonus and vacation expense $ 2,191 $ 1,496 Non income taxes 3,608 2,252 Royalty expenses 2,235 1,617 Accrued interest 605 601 Health claims 713 630 Workers’ compensation & pneumoconiosis 2,450 2,450 Accrued insured litigation claims 26 277 Preferred unit distribution 2,473 - Other 727 740 Total $ 15,028 $ 10,063 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 (in thousands) Senior secured credit facility with PNC Bank, N.A. $ 12,290 $ 10,040 Other notes payable - - Total 12,290 10,040 Less current portion (12,290 ) (10,040 ) Long-term debt $ - $ - |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The changes in asset retirement obligations for the six months ended June 30, 2017 and the year ended December 31, 2016 are as follows: Six months ended Year ended June 30, 2017 December 31, 2016 (in thousands) Balance at beginning of period (including current portion) $ 23,278 $ 23,077 Accretion expense 948 1,486 Adjustments to the liability from annual recosting and other - (1,085 ) Liabilities settled (34 ) (200 ) Balance at end of period 24,192 23,278 Less current portion of asset retirement obligation (917 ) (917 ) Long-term portion of asset retirement obligation $ 23,275 $ 22,361 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Expense Under Defined Contribution Savings Plans | The expense under these plans for the three and six months ended June 30, 2017 and 2016 is included in Cost of operations and Selling, general and administrative expense in the Partnership’s unaudited condensed consolidated statements of operations and comprehensive income and was as follows: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 (in thousands) 401(k) plan expense $ 350 $ 402 $ 720 $ 706 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Delivery Commitments | As of June 30, 2017, the Partnership had commitments under sales contracts to deliver annually scheduled base quantities of coal as follows: Year Tons (in thousands) Number of customers 2017Q3-Q4 1,884 15 2018 1,001 5 2019 300 1 |
Schedule of Lease and Royalty Expense | Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 (in thousands) Lease expense $ 978 $ 1,049 $ 2,491 $ 2,078 Royalty expense $ 3,950 $ 2,606 $ 7,327 $ 4,948 |
Earnings Per Unit ('EPU') (Tabl
Earnings Per Unit ('EPU') (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Unit [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Unit | Since the Partnership incurred total net losses for the three and six months ended June 30, 2017 and 2016, all potential dilutive units were excluded from the diluted EPU calculation for these periods. Three months ended June 30, 2017 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders Numerator: (in thousands, except per unit data) Interest in net (loss)/income: Net (loss)/income from continuing operations $ (4 ) $ (970 ) $ (93 ) $ 1,357 Net(loss)/income from discontinued operations - - - - Total interest in net (loss)/income $ (4 ) $ (970 ) $ (93 ) $ 1,357 Denominator: Weighted average units used to compute basic EPU n/a 12,964 1,236 1,500 Weighted average units used to compute diluted EPU n/a 12,964 1,236 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.08 ) $ (0.08 ) $ 0.90 Net(loss/income) per unit from discontinued operations n/a - - - Net (loss)/income per common unit, basic n/a $ (0.08 ) $ (0.08 ) $ 0.90 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.08 ) $ (0.08 ) 0.90 Net (loss)/income per unit from discontinued operations n/a - - - Net (loss)/income per common unit, diluted n/a $ (0.08 ) $ (0.08 ) 0.90 Six months ended June 30, 2017 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders Numerator: (in thousands, except per unit data) Interest in net (loss)/income: Net (loss)/income from continuing operations $ (17 ) $ (3,829 ) $ (366 ) $ 2,473 Net (loss)/income from discontinued operations - - - - Total interest in net (loss)/income $ (17 ) $ (3,829 ) $ (366 ) $ 2,473 Denominator: Weighted average units used to compute basic EPU n/a 12,920 1,236 1,500 Weighted average units used to compute diluted EPU n/a 12,920 1,236 1,500 Net (loss)/income per limited partner unit, basic Net (loss)/income per unit from continuing operations n/a $ (0.30 ) $ (0.30 ) $ 1.65 Net (loss)/income per unit from discontinued operations n/a - - - Net (loss)/income per common unit, basic n/a $ (0.30 ) $ (0.30 ) $ 1.65 Net (loss)/income per limited partner unit, diluted Net (loss)/income per unit from continuing operations n/a $ (0.30 ) $ (0.30 ) 1.65 Net (loss)/income per unit from discontinued operations n/a - - - Net (loss)/income per common unit, diluted n/a $ (0.30 ) $ (0.30 ) 1.65 Three months ended June 30, 2016 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders Numerator: (in thousands, except per unit data) Interest in net (loss): Net (loss) from continuing operations $ (24 ) $ (3,145 ) $ (499 ) n/a Net (loss) from discontinued operations (784 ) (101,413 ) (16,088 ) n/a Total interest in net (loss) $ (808 ) $ (104,558 ) $ (16,587 ) n/a Denominator: Weighted average units used to compute basic EPU n/a 7,788 1,236 n/a Weighted average units used to compute diluted EPU n/a 7,788 1,236 n/a Net (loss) per limited partner unit, basic Net (loss) per unit from continuing operations n/a $ (0.40 ) $ (0.40 ) n/a Net (loss) per unit from discontinued operations n/a (13.02 ) (13.02 ) n/a Net (loss) per common unit, basic n/a $ (13.42 ) $ (13.42 ) n/a Net (loss) per limited partner unit, diluted Net (loss) per unit from continuing operations n/a $ (0.40 ) $ (0.40 ) n/a Net (loss) per unit from discontinued operations n/a (13.02 ) (13.02 ) n/a Net (loss) per common unit, diluted n/a $ (13.42 ) $ (13.42 ) n/a Six months ended June 30, 2016 General Partner Common Unitholders Subordinated Unitholders Preferred Unitholders Numerator: (in thousands, except per unit data) Interest in net (loss): Net (loss) from continuing operations $ (67 ) $ (4,202 ) $ (1,541 ) n/a Net (loss) from discontinued operations (765 ) (85,309 ) (31,292 ) n/a Total interest in net (loss) $ (832 ) $ (89,511 ) $ (32,833 ) n/a Denominator: Weighted average units used to compute basic EPU n/a 3,368 1,236 n/a Weighted average units used to compute diluted EPU n/a 3,368 1,236 n/a Net (loss) per limited partner unit, basic Net (loss) per unit from continuing operations n/a $ (1.25 ) $ (1.25 ) n/a Net (loss) per unit from discontinued operations n/a (25.32 ) (25.32 ) n/a Net (loss) per common unit, basic n/a $ (26.57 ) $ (26.57 ) n/a Net (loss) per limited partner unit, diluted Net (loss) per unit from continuing operations n/a $ (1.25 ) $ (1.25 ) n/a Net (loss) per unit from discontinued operations n/a (25.32 ) (25.32 ) n/a Net (loss) per common unit, diluted n/a $ (26.57 ) $ (26.57 ) n/a |
Major Customers (Tables)
Major Customers (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Summary of Major Customers | The Partnership had revenues or receivables from the following major customers that in each period equaled or exceeded 10% of revenues: June 30 December 31 Six months Six months 2017 2016 ended ended Receivable Receivable June 30 June 30 Balance Balance 2017 Sales 2016 Sales (in thousands) LG&E and KU $ 2,210 $ 1,496 $ 21,162 $ - PacifiCorp Energy 1,560 1,509 7,777 10,511 Big Rivers Electric Corporation 947 - 13,234 10,119 PPL Corporation - - - 20,624 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Results of Operations | Reportable segment results of operations for the three months ended June 30, 2017 are as follows (Note: “DD&A” refers to depreciation, depletion and amortization): Central Northern Rhino Illinois Total Appalachia Appalachia Western Basin Other Consolidated (in thousands) Total revenues $ 25,675 $ 4,489 $ 8,763 $ 17,604 $ 4 $ 56,535 DD&A 1,949 418 1,200 1,949 93 5,609 Interest expense - - - - 965 965 Net income (loss) from continuing operations $ 3,337 $ (1,576 ) $ 740 $ 975 $ (3,186 ) $ 290 Reportable segment results of operations for the three months ended June 30, 2016 are as follows: Central Northern Rhino Illinois Total Appalachia Appalachia Western Basin Other Consolidated (in thousands) Total revenues $ 5,629 $ 11,581 $ 8,324 $ 16,000 $ 79 $ 41,613 DD&A 1,586 811 1,404 1,867 142 5,810 Interest expense 207 85 40 82 1,306 1,720 Net income (loss) from continuing operations $ (2,280 ) $ 2,296 $ 499 $ 229 $ (4,412 ) $ (3,668 ) Reportable segment results of operations for the six months ended June 30, 2017 as are follows: Central Northern Rhino Illinois Total Appalachia Appalachia Western Basin Other Consolidated (in thousands) Total revenues $ 48,988 $ 10,615 $ 16,061 $ 34,412 $ 9 $ 110,085 DD&A 3,922 916 2,316 3,954 199 11,307 Interest expense - - - - 2,120 2,120 Net income (loss) from continuing operations $ 5,631 $ (2,356 ) $ 154 $ 1,628 $ (6,796 ) $ (1,739 ) Reportable segment results of operations for the six months ended June 30, 2016 as are follows: Central Northern Rhino Illinois Total Appalachia Appalachia Western Basin Other Consolidated (in thousands) Total revenues $ 11,241 $ 20,733 $ 17,921 $ 30,880 $ 168 $ 80,943 DD&A 3,309 1,764 2,815 3,680 283 11,851 Interest expense 390 165 77 152 2,506 3,290 Net income (loss) from continuing operations $ (5,280 ) $ 6,990 $ 460 $ 546 $ (8,526 ) $ (5,810 ) |
Basis of Presentation and Org38
Basis of Presentation and Organization (Details Narrative) $ / shares in Units, $ in Thousands | Dec. 30, 2016USD ($)$ / sharesshares | Jul. 31, 2016USD ($) | May 13, 2016USD ($) | Apr. 18, 2016 | Mar. 21, 2016USD ($)$ / sharesshares | Mar. 17, 2016shares | Jan. 21, 2016USD ($)shares | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 30, 2016USD ($)$ / shares | May 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 17, 2015USD ($) |
Revolving credit commitments | $ 75,000 | $ 80,000 | ||||||||||||
Line of credit current | $ 12,300 | $ 10,000 | ||||||||||||
Reverse split description | 1-for-10 reverse split on its common units and subordinated units | |||||||||||||
Reverse stock split conversion ratio | 10 | |||||||||||||
Number of common unit issued during the period, value | $ 21,800 | |||||||||||||
Royal Energy Resources, Inc [Member] | ||||||||||||||
Common stock price per unit | $ / shares | $ 3 | |||||||||||||
Number of common units rescind of purchase during the period | shares | 1,333,333 | |||||||||||||
Number of common units repurchase during the period | shares | 1,333,333 | |||||||||||||
Repurchase options termination date | Dec. 31, 2017 | |||||||||||||
Repayment of debt | $ 3,000 | $ 2,000 | ||||||||||||
Debt due date | Jul. 31, 2016 | Sep. 30, 2016 | ||||||||||||
Debt conversion price per share | $ / shares | $ 1.50 | |||||||||||||
Royal Energy Resources Inc. [Member] | Weston Promissory Note [Member] | ||||||||||||||
Promissory note face value | $ 2,000 | |||||||||||||
Wexford Capital L P [Member] | Royal Energy Resources, Inc [Member] | Subordinated Units [Member] | ||||||||||||||
Number of common unit shares acquired during the period | shares | 945,525 | |||||||||||||
Royal VWAP [Member] | Minimum [Member] | ||||||||||||||
Debt conversion price per share | $ / shares | $ 3.50 | $ 3.50 | ||||||||||||
Royal VWAP [Member] | Maximum [Member] | ||||||||||||||
Debt conversion price per share | $ / shares | 7.50 | 7.50 | ||||||||||||
Common Units [Member] | ||||||||||||||
Reverse stock split conversion ratio | 10 | |||||||||||||
Average global market capitalization value | $ 15,000 | |||||||||||||
Subordinated Units [Member] | ||||||||||||||
Reverse stock split conversion ratio | 10 | |||||||||||||
Subordinated Units [Member] | Wexford Capital L P [Member] | Royal Energy Resources Inc. [Member] | ||||||||||||||
Number of common unit shares acquired during the period | shares | 945,525 | |||||||||||||
Series A Preferred Units [Member] | Minimum [Member] | ||||||||||||||
Debt conversion price per share | $ / shares | 2 | 2 | ||||||||||||
Series A Preferred Units [Member] | Maximum [Member] | ||||||||||||||
Debt conversion price per share | $ / shares | $ 10 | 10 | ||||||||||||
FFifth Amendment [Member] | ||||||||||||||
Revolving credit commitments | $ 55,000 | |||||||||||||
Line of credit maturity date | Dec. 31, 2017 | |||||||||||||
Definitive Agreement [Member] | Royal Energy Resources, Inc [Member] | Wexford Capital L P [Member] | ||||||||||||||
Number of common unit shares acquired during the period | shares | 676,911 | |||||||||||||
Number of common unit acquired during the period | $ 3,500 | |||||||||||||
Definitive Agreement [Member] | Wexford Capital L P [Member] | Subordinated Units [Member] | ||||||||||||||
Number of common unit shares acquired during the period | shares | 945,525 | |||||||||||||
Number of common unit acquired during the period | $ 1,000 | |||||||||||||
Securities Purchase Agreement [Member] | Royal Energy Resources, Inc [Member] | ||||||||||||||
Proceeds from shares issued | $ 2,000 | |||||||||||||
Number of common unit shares issued during the period | shares | 6,000,000 | |||||||||||||
Number of common unit issued during the period, value | $ 9,000 | |||||||||||||
Common stock price per unit | $ / shares | $ 1.50 | |||||||||||||
Promissory note face value | $ 7,000 | |||||||||||||
Promissory note payable periodic amount | $ 3,000 | $ 2,000 | $ 2,000 | |||||||||||
Repayment of debt | $ 2,000 | |||||||||||||
Option Agreement [Member] | ||||||||||||||
Ownership percentage | 51.00% | |||||||||||||
Option Agreement [Member] | Mr. Bryan H. Lawrence [Member] | ||||||||||||||
Ownership percentage | 20.00% | |||||||||||||
Option Agreement [Member] | Seventh Amendment [Member] | ||||||||||||||
Ownership percentage | 10.00% | |||||||||||||
Option Agreement [Member] | Royal Energy Resources, Inc [Member] | ||||||||||||||
Number of common unit shares issued during the period | shares | 5,000,000 | |||||||||||||
Option Agreement [Member] | Armstrong Energy [Member] | Royal Energy Resources, Inc [Member] | ||||||||||||||
Ownership percentage | 97.00% | |||||||||||||
Equity Exchange Agreement [Member] | Armstrong Energy [Member] | ||||||||||||||
Ownership percentage | 51.00% | |||||||||||||
Series A Preferred Unit Purchase Agreement [Member] | Weston Energy LLC [Member] | ||||||||||||||
Number of common unit shares issued during the period | shares | 1,300,000 | |||||||||||||
Number of common unit issued during the period, value | $ 11,000 | |||||||||||||
Series A Preferred Unit Purchase Agreement [Member] | Royal Energy Resources Inc. [Member] | ||||||||||||||
Number of common unit shares issued during the period | shares | 200,000 | |||||||||||||
Number of common unit issued during the period, value | $ 2,000 | |||||||||||||
Series A Preferred Unit Purchase Agreement [Member] | Weston [Member] | ||||||||||||||
Price per unit | $ / shares | $ 10 | $ 10 | ||||||||||||
Letter Agreement [Member] | Rhino Note Weston Promissory Note [Member] | ||||||||||||||
Promissory note face value | $ 4,000 | $ 4,000 | ||||||||||||
Weighted average closing price | 75.00% | 75.00% | ||||||||||||
Fourth Amended And Restated Agreement [Member] | ||||||||||||||
Units of partnership interest, description | (i) 50% of the CAM Mining free cash flow (as defined below) and (ii) an amount equal to the number of outstanding Series A preferred units multiplied by $0.80. CAM Mining free cash flow is defined in the Amended and Restated Partnership Agreement as (i) the total revenue of the Partnerships Central Appalachia business segment, minus (ii) the cost of operations (exclusive of depreciation, depletion and amortization) for the Partnerships Central Appalachia business segment, minus (iii) an amount equal to $6.50, multiplied by the aggregate number of met coal and steam coal tons sold by the Partnership from its Central Appalachia business segment. | |||||||||||||
Indebtedness | $ 50,000 | $ 50,000 | ||||||||||||
Fourth Amended And Restated Agreement [Member] | Series A Preferred Units [Member] | ||||||||||||||
Weighted average closing price | 75.00% | 75.00% | ||||||||||||
Unpaid distribution | $ / shares | $ 10 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies and General (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2016 | Sep. 30, 2014 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Operating income (loss) | $ 1,215 | $ (1,953) | $ 345 | $ (2,479) | |||
Mammoth Energy Services, Inc. [Member] | |||||||
Number of limited partner interest exchange for shares of common stock | 234,300 | ||||||
Fair market value adjustment of available for sale investment | 2,000 | 2,000 | $ 1,600 | ||||
Sturgeon Acquisitions LLC [Member] | |||||||
Operating income (loss) | $ 40 | $ (26) | $ 36 | $ (100) | |||
Contribution Agreement [Member] | Mammoth Inc [Member] | |||||||
Number of shares of common stock expects to receive | 336,447 | ||||||
Number of shares owned | 568,794 | 568,794 | |||||
Sturgeon Acquisitions LLC [Member] | |||||||
Payments to acquire interest in joint venture | $ 5,000 |
Discontinued Operations (Detail
Discontinued Operations (Details Narrative) - Elk Horn [Member] - USD ($) $ in Thousands | Sep. 20, 2016 | Aug. 31, 2016 | Dec. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash consideration payable | $ 1,500 | ||||
Cash consideration paid monthly installment | 150 | ||||
Loss on business disposal | $ 119,900 | ||||
Deferred revenue | $ 0 | $ 700 | |||
Third Party [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash consideration | $ 12,000 | ||||
Cash consideration upon the closing transaction paid | 10,500 | ||||
Cash consideration payable | $ 1,500 | ||||
Cash consideration paid monthly installment | $ 150 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Major Components of Net (Loss) Income from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Other revenues | $ 1,127 | $ 2,226 | ||
Total revenues | 1,127 | 2,226 | ||
Cost of operations (exclusive of depreciation, depletion and amortization shown separately below) | 499 | 454 | ||
Depreciation, depletion and amortization | 121 | 326 | ||
Selling, general and administrative (exclusive of depreciation, depletion and amortization shown separately above) | 82 | 97 | ||
(Gain) on sale/disposal of assets, net | ||||
Loss on asset impairment | 118,705 | 118,705 | ||
Interest expense and other | 5 | 10 | ||
Total costs and expenses | 119,412 | 119,592 | ||
Loss from discontinued operations before income taxes for the Elk Horn disposal | (118,285) | (117,366) | ||
Income taxes | ||||
Net loss from discontinued operations | $ (118,285) | $ (117,366) |
Prepaid Expenses and Other Cu42
Prepaid Expenses and Other Current Assets (Details Narrative) - Elk Horn [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Note receivable | $ 900 |
Cash consideration payable | 1,500 |
Cash Consideration paid monthly installment | $ 150 |
Prepaid Expenses and Other Cu43
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Other prepaid expenses | $ 1,180 | $ 707 |
Debt issuance costs-net | 796 | 1,239 |
Prepaid insurance | 2,011 | 1,432 |
Prepaid leases | 96 | 77 |
Supply inventory | 565 | 614 |
Deposits | 164 | |
Note receivable- current portion | 900 | |
Total Prepaid expenses and other | $ 4,648 | $ 5,133 |
Property, Plant and Equipment44
Property, Plant and Equipment (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 30, 2015USD ($) | |
Property, Plant and Equipment [Abstract] | |
Proceeds from the sale of property | $ 7,200 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment by Major Classification (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 457,262 | $ 449,181 |
Less accumulated depreciation, depletion and amortization | (276,229) | (266,874) |
Net property, plant and equipment | 181,033 | 182,307 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 15,973 | 16,377 |
Mining and Other Equipment and Related Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 313,115 | 305,626 |
Mining and Other Equipment and Related Facilities [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 2 years | |
Mining and Other Equipment and Related Facilities [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 20 years | |
Mine Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 57,459 | 57,392 |
Mine Development Costs [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Mine Development Costs [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 15 years | |
Coal Properties and Oil and Natural Gas Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 67,989 | 67,989 |
Coal Properties and Oil and Natural Gas Properties [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Coal Properties and Oil and Natural Gas Properties [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 15 years | |
Construction Work In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,726 | $ 1,797 |
Property, Plant and Equipment46
Property, Plant and Equipment - Schedule of Depreciation, Depletion, and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | $ 5,609 | $ 5,810 | $ 11,307 | $ 11,851 |
Mining and Other Equipment and Related Facilities [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | 4,384 | 5,023 | 8,820 | 10,310 |
Coal Properties and Oil and Natural Gas Properties [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | 415 | 427 | 770 | 820 |
Mine Development Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | 788 | 379 | 1,545 | 782 |
Asset Retirement Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation, depletion and amortization | $ 22 | $ (19) | $ 172 | $ (61) |
Intangible and Other Non-curr47
Intangible and Other Non-current Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 30, 2016 | Jun. 30, 2017 | |
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||
Non-current receivable | $ 27,157 | $ 27,157 | |
Number of common unit issued during the period | $ 21,800 | ||
Option Agreement [Member] | Call Option [Member] | |||
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||
Number of common unit shares issued during the period | 5,000 | ||
Number of common unit issued during the period | $ 21,800 | ||
Partnerships workers [Member] | |||
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||
Non-current receivable | 27,200 | 27,200 | |
Workers' compensation liability, noncurrent | 27,200 | $ 27,200 | |
Series A Preferred Units [Member] | Weston [Member] | |||
Prepaid Expenses And Other Current Assets Disclosure [Line Items] | |||
Note receivable | $ 2,000 |
Intangible and Other Non-curr48
Intangible and Other Non-current Assets - Schedule of Other Non-current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Intangible And Other Non-current Assets | ||
Deposits and other | $ 219 | $ 218 |
Due (to)/from Rhino GP | (60) | (573) |
Non-current receivable | 27,157 | 27,157 |
Deferred expenses | 201 | 216 |
Total | $ 27,517 | $ 27,018 |
Accrued Expenses and Other Cu49
Accrued Expenses and Other Current Liabilities (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued insured litigation claims | $ 26 | $ 277 |
Accrued Expenses and Other Cu50
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Payroll, bonus and vacation expense | $ 2,191 | $ 1,496 |
Non income taxes | 3,608 | 2,252 |
Royalty expenses | 2,235 | 1,617 |
Accrued interest | 605 | 601 |
Health claims | 713 | 630 |
Workers’ compensation & pneumoconiosis | 2,450 | 2,450 |
Accrued insured litigation claims | 26 | 277 |
Preferred unit distribution | 2,473 | |
Other | 727 | 740 |
Total | $ 15,028 | $ 10,063 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Thousands | May 13, 2016 | Mar. 17, 2016 | Jul. 29, 2011 | Jul. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | May 31, 2016 | Mar. 31, 2016 | Apr. 30, 2015 |
Line of Credit Facility [Line Items] | |||||||||||
Credit facility, maximum available | $ 75,000 | $ 80,000 | |||||||||
Proceeds from borrowing | $ 12,300 | ||||||||||
Debt instrument interest rate | 7.75% | ||||||||||
Borrowing availability, amount | $ 7,900 | $ 7,900 | |||||||||
Series A Preferred Units [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Amount of proceeds from equity issuance that will be used to satisfy schedule capital contributions | $ 13,000 | 13,000 | |||||||||
Prime Rate [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument interest rate | 3.50% | ||||||||||
Sixth Amendment [Member] | Elk Horn [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum commitment amount for additional | $ 375 | 1,500 | |||||||||
Sixth Amendment [Member] | Elk Horn [Member] | Maximum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum commitment amount for additional | $ 46,300 | ||||||||||
Fourth Amendment [Member] | Prime Rate [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Incremental interest rate above variable rate | 3.50% | ||||||||||
Fifth Amendment [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, extended expiration date | Jul. 31, 2017 | ||||||||||
Seventh Amendment [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Threshold for revolving credit commitments | 2,000 | 2,000 | $ 11,000 | ||||||||
Line of credit facility, amount by which commitments must be reduced if proceeds from sale of assets are below threshold | 2,000 | ||||||||||
Line of credit facility, threshold for reduction of maximum leverage ratio | 10,000 | ||||||||||
Line of credit any dispositions of assets in excess can reduce the commitment | 2,000 | ||||||||||
Maximum borrowing capacity of EBITDA | $ 20,000 | ||||||||||
Seventh Amendment [Member] | Maximum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility maximum leverage ratio reduction when threshold met | 1 | ||||||||||
Line of credit facility, maximum leverage ratio required for distributions in excess of maximum stated amount | 1 | ||||||||||
Seventh Amendment [Member] | Minimum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility maximum leverage ratio reduction when threshold met | 0.50 | ||||||||||
Line of credit facility, maximum leverage ratio required for distributions in excess of maximum stated amount | 3 | ||||||||||
Seventh Amendment [Member] | Sep 30, 2017 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Threshold for revolving credit commitments | $ 2,000 | ||||||||||
Seventh Amendment [Member] | December 31, 2016 Through May 31, 2017 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Minimum borrowing capacity of EBITDA | $ 12,500 | ||||||||||
Seventh Amendment [Member] | December 31, 2016 Through May 31, 2017 [Member] | Maximum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum leverage ratio | 1 | ||||||||||
Seventh Amendment [Member] | December 31, 2016 Through May 31, 2017 [Member] | Minimum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum leverage ratio | 4 | ||||||||||
Seventh Amendment [Member] | June 30, 2017 Through December 31, 2017 [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Minimum borrowing capacity of EBITDA | $ 15,000 | ||||||||||
Seventh Amendment [Member] | June 30, 2017 Through December 31, 2017 [Member] | Maximum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum leverage ratio | 1 | ||||||||||
Seventh Amendment [Member] | June 30, 2017 Through December 31, 2017 [Member] | Minimum [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum leverage ratio | 3.5 | ||||||||||
Letter Of Credit [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Incremental interest rate above variable rate | 5.00% | ||||||||||
Outstanding letter of credit | $ 26,100 | ||||||||||
Maximum borrowing capacity description | Based upon a maximum borrowing capacity of 3.50 times a trailing twelve-month EBITDA calculation | ||||||||||
Letter Of Credit [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility, maximum available | $ 30,000 | $ 30,000 | |||||||||
Amended And Restated Credit Agreement [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility, maximum available | $ 300,000 | $ 100,000 | |||||||||
Line of credit facility option to increase maximum borrowing capacity | 50,000 | ||||||||||
Amended And Restated Credit Agreement [Member] | Letter Of Credit One [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility, maximum available | 300,000 | ||||||||||
Amended And Restated Credit Agreement [Member] | Letter Of Credit [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility, maximum available | $ 75,000 | $ 50,000 | |||||||||
Credit Agreement [Member] | Series A Preferred Units [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Amount of proceeds from equity issuance that will be used to satisfy schedule capital contributions | $ 13,000 | $ 13,000 |
Debt - Schedule Of Debt (Detail
Debt - Schedule Of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Senior secured credit facility with PNC Bank, N.A. | $ 12,290 | $ 10,040 |
Other notes payable, Total | ||
Less current portion | (12,290) | (10,040) |
Long-term debt | $ (12,290) | $ (10,040) |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Balance at beginning of period (including current portion) | $ 23,278 | $ 23,077 | $ 23,077 |
Accretion expense | 948 | $ 763 | 1,486 |
Adjustments to the liability from annual recosting and other | (1,085) | ||
Liabilities settled | (34) | (200) | |
Balance at end of period | 24,192 | 23,278 | |
Less current portion of asset retirement obligation | (917) | (917) | |
Long-term portion of asset retirement obligation | $ 23,275 | $ 22,361 |
Employee Benefits (Details Narr
Employee Benefits (Details Narrative) - USD ($) $ in Thousands | Dec. 10, 2015 | Jun. 30, 2016 |
Retirement Benefits [Abstract] | ||
Prior service cost benefit | $ 6,500 | |
Benefit recognized | $ 3,900 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Expense Under Defined Contribution Savings Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Retirement Benefits [Abstract] | ||||
401(k) plan expense | $ 350 | $ 402 | $ 720 | $ 706 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details Narrative) - USD ($) $ in Thousands | Mar. 17, 2016 | Jun. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Accelerated vesting expense | $ 10 | |
Royal Energy Resources Inc. [Member] | Wexford Capital L P [Member] | Subordinated Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of common unit shares acquired during the period | 945,525 |
Commitments and Contingencies57
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2014 | Jun. 30, 2017 | |
Series A Preferred Unit Distributions [Member] | ||
Commitments And Contingencies [Line Items] | ||
Distributions due | $ 2,500 | |
Sturgeon Acquisitions [Member] | ||
Commitments And Contingencies [Line Items] | ||
Payments to acquire interest in joint venture | $ 5,000 | |
Purchase Commitment [Member] | ||
Commitments And Contingencies [Line Items] | ||
Commitment to purchase | The Partnership had a commitment to purchase approximately 1.0 million gallons of diesel fuel at fixed prices from January 2017 through December 2017 | |
Purchase commitment, amount | $ 2,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Delivery Commitments (Details) | 6 Months Ended |
Jun. 30, 2017NumberT | |
Commitments and Contingencies Disclosure [Abstract] | |
Tons, 2017 Q3-Q4 | T | 1,884,000 |
Tons, 2018 | T | 1,001,000 |
Tons, 2019 | T | 300,000 |
Number of customers, 2017 Q3-Q4 | Number | 15 |
Number of customers, 2018 | Number | 5 |
Number of customers, 2019 | Number | 1 |
Commitments and Contingencies59
Commitments and Contingencies - Schedule of Lease And Royalty Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Lease expense | $ 978 | $ 1,049 | $ 2,491 | $ 2,078 |
Royalty expense | $ 3,950 | $ 2,606 | $ 7,327 | $ 4,948 |
Earnings Per Unit ('EPU') - Sch
Earnings Per Unit ('EPU') - Schedule of Calculation of Numerator and Denominator in Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Unit [Line Items] | ||||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ 290 | $ (3,668) | $ (1,739) | $ (5,810) |
Interest in net (loss)/income: Net(loss)/income from discontinued operations | (118,285) | (117,366) | ||
Interest in net (loss)/income: Total interest in net (loss)/income | 290 | (121,953) | (1,739) | (123,176) |
General Partner [Member] | ||||
Earnings Per Unit [Line Items] | ||||
Interest in net (loss)/income: Net (loss)/income from continuing operations | (4) | (24) | (17) | (67) |
Interest in net (loss)/income: Net(loss)/income from discontinued operations | (784) | (765) | ||
Interest in net (loss)/income: Total interest in net (loss)/income | (4) | (808) | (17) | (832) |
Common Unitholders [Member] | ||||
Earnings Per Unit [Line Items] | ||||
Interest in net (loss)/income: Net (loss)/income from continuing operations | (970) | (3,145) | (3,829) | (4,202) |
Interest in net (loss)/income: Net(loss)/income from discontinued operations | (101,413) | (85,309) | ||
Interest in net (loss)/income: Total interest in net (loss)/income | $ (970) | $ (104,558) | $ (3,829) | $ (89,511) |
Weighted average units used to compute basic EPU | 12,964,000 | 7,788,000 | 12,920,000 | 3,368,000 |
Weighted average units used to compute diluted EPU | 12,964,000 | 7,788,000 | 12,920,000 | 3,368,000 |
Net (loss)/income per unit from continuing operations | $ (0.08) | $ (0.40) | $ (0.30) | $ (1.25) |
Net(loss/income) per unit from discontinued operations | (13.02) | (25.32) | ||
Net (loss)/income per common unit, basic | (0.08) | (13.42) | (0.30) | (26.57) |
Net (loss)/income per unit from continuing operations | (0.08) | (0.40) | (0.30) | (1.25) |
Net (loss)/income per unit from discontinued operations | (13.02) | (25.32) | ||
Net (loss)/income per common unit, diluted | $ (0.08) | $ (13.42) | $ (0.30) | $ (26.57) |
Subordinated Unitholders [Member] | ||||
Earnings Per Unit [Line Items] | ||||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ (93) | $ (499) | $ (366) | $ (1,541) |
Interest in net (loss)/income: Net(loss)/income from discontinued operations | (16,088) | (31,292) | ||
Interest in net (loss)/income: Total interest in net (loss)/income | $ (93) | $ (16,587) | $ (366) | $ (32,833) |
Weighted average units used to compute basic EPU | 1,236,000 | 1,236,000 | 1,236,000 | 1,236,000 |
Weighted average units used to compute diluted EPU | 1,236,000 | 1,236,000 | 1,236,000 | 1,236,000 |
Net (loss)/income per unit from continuing operations | $ (0.08) | $ (0.40) | $ (0.30) | $ (1.25) |
Net(loss/income) per unit from discontinued operations | (13.02) | (25.32) | ||
Net (loss)/income per common unit, basic | (0.08) | (13.42) | (0.30) | (26.57) |
Net (loss)/income per unit from continuing operations | (0.08) | (0.40) | (0.30) | (1.25) |
Net (loss)/income per unit from discontinued operations | (13.02) | (25.32) | ||
Net (loss)/income per common unit, diluted | $ (0.08) | $ (13.42) | $ (0.30) | $ (26.57) |
Preferred Unit Holders [Member] | ||||
Earnings Per Unit [Line Items] | ||||
Interest in net (loss)/income: Net (loss)/income from continuing operations | $ 1,357 | $ 2,473 | ||
Interest in net (loss)/income: Net(loss)/income from discontinued operations | ||||
Interest in net (loss)/income: Total interest in net (loss)/income | $ 1,357 | $ 2,473 | ||
Weighted average units used to compute basic EPU | 1,500,000 | 1,500,000 | ||
Weighted average units used to compute diluted EPU | 1,500,000 | 1,500,000 | ||
Net (loss)/income per unit from continuing operations | $ 0.90 | $ 1.65 | ||
Net(loss/income) per unit from discontinued operations | ||||
Net (loss)/income per common unit, basic | 0.90 | 1.65 | ||
Net (loss)/income per unit from continuing operations | 0.90 | 1.65 | ||
Net (loss)/income per unit from discontinued operations | ||||
Net (loss)/income per common unit, diluted | $ 0.90 | $ 1.65 |
Major Customers - Summary of Ma
Major Customers - Summary of Major Customers (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Revenue, Major Customer [Line Items] | |||
Receivable balance | $ 19,579 | $ 13,893 | |
LG&E and KU [Member] | |||
Revenue, Major Customer [Line Items] | |||
Receivable balance | 2,210 | 1,496 | |
Sales | 21,162 | ||
PacifiCorp Energy [Member] | |||
Revenue, Major Customer [Line Items] | |||
Receivable balance | 1,560 | 1,509 | |
Big Rivers Electric Corporation [Member] | |||
Revenue, Major Customer [Line Items] | |||
Receivable balance | 947 | ||
Sales | 13,234 | 10,119 | |
PPL Corporation [Member] | |||
Revenue, Major Customer [Line Items] | |||
Receivable balance | |||
Sales | 20,624 | ||
PacifiCorp Energy [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 7,777 | $ 10,511 |
Major Customers - Summary of 62
Major Customers - Summary of Major Customers (Details) (Parenthetical) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
LG&E and KU [Member] | ||
Percentage of concentration risk | 10.00% | 10.00% |
PacifiCorp Energy [Member] | ||
Percentage of concentration risk | 10.00% | 10.00% |
Big Rivers Electric Corporation [Member] | ||
Percentage of concentration risk | 10.00% | 10.00% |
PPL Corporation [Member] | ||
Percentage of concentration risk | 10.00% | 10.00% |
Fair Value of Financial Instr63
Fair Value of Financial Instruments (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Oct. 31, 2016 | Jun. 30, 2017 | |
Initial Public Offering [Member] | ||
Number of shares sold | 1,953 | |
Proceeds from sale of stock | $ 27 | |
Mammoth Energy Services, Inc. [Member] | ||
Exchange shares of common stock | 234,300 | |
Sturgeon to Mammoth Inc [Member] | ||
Exchange shares of common stock | 336,447 | |
Number of shares owned | 568,794 |
Supplemental Disclosures of C64
Supplemental Disclosures of Cash Flow Information (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accounts Payable [Member] | ||
Other Significant Noncash Transactions [Line Items] | ||
Property additions | $ 1,100 | $ 1,200 |
Segment Information (Details Na
Segment Information (Details Narrative) | 6 Months Ended |
Jun. 30, 2017Segments | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 4 |
Segment Information - Schedule
Segment Information - Schedule of Reportable Segment Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 56,535 | $ 41,613 | $ 110,085 | $ 80,943 |
DD&A | 5,609 | 5,810 | 11,307 | 11,851 |
Interest expense | 965 | 1,720 | 2,120 | 3,290 |
Net Income (loss) from continuing operations | 290 | (3,668) | (1,739) | (5,810) |
Central Appalachia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 25,675 | 5,629 | 48,988 | 11,241 |
DD&A | 1,949 | 1,586 | 3,922 | 3,309 |
Interest expense | 207 | 390 | ||
Net Income (loss) from continuing operations | 3,337 | (2,280) | 5,631 | (5,280) |
Northern Appalachia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 4,489 | 11,581 | 10,615 | 20,733 |
DD&A | 418 | 811 | 916 | 1,764 |
Interest expense | 85 | 165 | ||
Net Income (loss) from continuing operations | (1,576) | 2,296 | (2,356) | 6,990 |
Rhino Western [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 8,763 | 8,324 | 16,061 | 17,921 |
DD&A | 1,200 | 1,404 | 2,316 | 2,815 |
Interest expense | 40 | 77 | ||
Net Income (loss) from continuing operations | 740 | 499 | 154 | 460 |
Illinois Basin [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 17,604 | 16,000 | 34,412 | 30,880 |
DD&A | 1,949 | 1,867 | 3,954 | 3,680 |
Interest expense | 82 | 152 | ||
Net Income (loss) from continuing operations | 975 | 229 | 1,628 | 546 |
Segment Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 4 | 79 | 9 | 168 |
DD&A | 93 | 142 | 199 | 283 |
Interest expense | 965 | 1,306 | 2,120 | 2,506 |
Net Income (loss) from continuing operations | $ (3,186) | $ (4,412) | $ (6,796) | $ (8,526) |
Accumulated Distribution Arre67
Accumulated Distribution Arrearages (Details Narrative) $ in Thousands | Jun. 30, 2017USD ($) |
Accumulated Distribution Arrearages | |
Accumulated arrearages, current | $ 322,800 |