Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Document Type | 10-Q | |
Entity Registrant Name | Ramaco Resources, Inc. | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Entity File Number | 001-38003 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-4018838 | |
Entity Address, Address Line One | 250 West Main Street | |
Entity Address, Address Line Two | Suite 1800 | |
Entity Address, City or Town | Lexington | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 40507 | |
City Area Code | 859 | |
Local Phone Number | 244-7455 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 44,121,702 | |
Entity Central Index Key | 0001687187 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock, $0.01 par value | ||
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | METC | |
Security Exchange Name | NASDAQ | |
9.00% Senior Notes due 2026 | ||
Title of 12(b) Security | 9.00% Senior Notes due 2026 | |
Trading Symbol | METCL | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 46,608 | $ 21,891 |
Accounts receivable | 50,358 | 44,453 |
Inventories | 40,028 | 15,791 |
Prepaid expenses and other | 4,962 | 4,626 |
Total current assets | 141,956 | 86,761 |
Property, plant and equipment, net | 403,130 | 227,077 |
Financing lease right-of-use assets, net | 9,839 | 9,128 |
Advanced coal royalties | 3,618 | 5,576 |
Other | 3,589 | 491 |
Total Assets | 562,132 | 329,033 |
Current liabilities | ||
Accounts payable | 30,130 | 15,346 |
Accrued expenses | 49,209 | 19,410 |
Asset retirement obligations | 484 | 489 |
Current portion of long-term debt | 30,839 | 7,674 |
Current portion of related party debt | 35,000 | |
Current portion of financing lease obligations | 4,776 | 3,461 |
Other current liabilities | 280 | |
Total current liabilities | 150,438 | 46,660 |
Asset retirement obligations | 28,339 | 22,060 |
Long-term debt, net | 16,838 | 3,339 |
Long-term related party debt | 10,000 | |
Long-term financing lease obligations, net | 3,783 | 4,599 |
Senior notes, net | 32,712 | 32,363 |
Deferred tax liability, net | 17,985 | 6,406 |
Other long-term liabilities | 3,368 | 2,532 |
Total liabilities | 263,463 | 117,959 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value, 260,000,000 shares authorized, 44,072,611 at June 30, 2022 and 44,092,981 at December 31, 2021 shares issued and outstanding | 441 | 441 |
Additional paid-in capital | 166,994 | 163,566 |
Retained earnings | 131,234 | 47,067 |
Total stockholders' equity | 298,669 | 211,074 |
Total Liabilities and Stockholders' Equity | $ 562,132 | $ 329,033 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares Issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 260,000,000 | 260,000,000 |
Common stock, shares issued (in shares) | 44,121,702 | 44,092,981 |
Common stock, shares outstanding (in shares) | 44,072,611 | 44,092,981 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Consolidated Statements of Operations | ||||
Revenue | $ 136,925 | $ 76,377 | $ 430,461 | $ 195,889 |
Costs and expenses | ||||
Cost of sales (exclusive of items shown separately below) | 79,634 | 54,808 | 237,530 | 143,768 |
Asset retirement obligations accretion | 495 | 156 | 1,485 | 461 |
Depreciation and amortization | 11,435 | 6,751 | 29,898 | 18,861 |
Selling, general and administrative | 8,672 | 5,895 | 29,282 | 15,767 |
Total costs and expenses | 100,236 | 67,610 | 298,195 | 178,857 |
Operating income | 36,689 | 8,767 | 132,266 | 17,032 |
Other income, net | (933) | 789 | 1,781 | 7,156 |
Interest expense, net | (2,255) | (933) | (5,323) | (1,418) |
Income before tax | 33,501 | 8,623 | 128,724 | 22,770 |
Income tax expense | 6,596 | 1,588 | 27,068 | 1,650 |
Net income | $ 26,905 | $ 7,035 | $ 101,656 | $ 21,120 |
Earnings per common share | ||||
Basic | $ 0.61 | $ 0.16 | $ 2.30 | $ 0.48 |
Diluted | $ 0.60 | $ 0.16 | $ 2.27 | $ 0.48 |
Weighted average common shares outstanding | ||||
Basic weighted average shares outstanding | 44,085 | 44,109 | 44,179 | 43,915 |
Diluted weighted average shares outstanding | 44,543 | 44,465 | 44,747 | 43,996 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital. | Retained Earnings (Deficit) | Total |
Balance at Dec. 31, 2020 | $ 427 | $ 158,859 | $ 9,809 | $ 169,095 |
Stock-based compensation | 15 | 1,040 | 1,055 | |
Net income | 4,143 | 4,143 | ||
Balance at Mar. 31, 2021 | 442 | 159,899 | 13,952 | 174,293 |
Balance at Dec. 31, 2020 | 427 | 158,859 | 9,809 | 169,095 |
Net income | 21,120 | |||
Balance at Sep. 30, 2021 | 441 | 162,437 | 30,929 | 193,807 |
Balance at Mar. 31, 2021 | 442 | 159,899 | 13,952 | 174,293 |
Restricted stock surrendered for withholding taxes payable | (1) | (326) | (327) | |
Stock-based compensation | 1,522 | 1,522 | ||
Net income | 9,942 | 9,942 | ||
Balance at Jun. 30, 2021 | 441 | 161,095 | 23,894 | 185,430 |
Stock-based compensation | 1,342 | 1,342 | ||
Net income | 7,035 | 7,035 | ||
Balance at Sep. 30, 2021 | 441 | 162,437 | 30,929 | 193,807 |
Balance at Dec. 31, 2021 | 441 | 163,566 | 47,067 | 211,074 |
Stock-based compensation | 2 | 1,885 | 1,887 | |
Dividends paid | (2,497) | (2,497) | ||
Net income | 41,471 | 41,471 | ||
Balance at Mar. 31, 2022 | 443 | 165,451 | 86,041 | 251,935 |
Balance at Dec. 31, 2021 | 441 | 163,566 | 47,067 | 211,074 |
Net income | 101,656 | |||
Balance at Sep. 30, 2022 | 441 | 166,994 | 131,234 | 298,669 |
Balance at Mar. 31, 2022 | 443 | 165,451 | 86,041 | 251,935 |
Restricted stock surrendered for withholding taxes payable | (2) | (2,819) | (2,821) | |
Stock-based compensation | 2,286 | 2,286 | ||
Dividends paid | (4,998) | (4,998) | ||
Net income | 33,280 | 33,280 | ||
Balance at Jun. 30, 2022 | 441 | 164,918 | 114,323 | 279,682 |
Restricted stock surrendered for withholding taxes payable | (50) | (50) | ||
Stock-based compensation | 2,019 | 2,019 | ||
Stock options exercised | 107 | 107 | ||
Dividends paid | (9,994) | (9,994) | ||
Net income | 26,905 | 26,905 | ||
Balance at Sep. 30, 2022 | $ 441 | $ 166,994 | $ 131,234 | $ 298,669 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Cash flows from operating activities: | ||
Net income | $ 101,656 | $ 21,120 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Accretion of asset retirement obligations | 1,485 | 461 |
Depreciation and amortization | 29,898 | 18,861 |
Amortization of debt issuance costs | 367 | 96 |
Stock-based compensation | 6,192 | 3,919 |
Other income - gain on sale of mineral rights | (2,113) | |
Other income - employee retention tax credit | (5,407) | |
Deferred income taxes | 11,579 | 1,650 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,905) | (17,293) |
Prepaid expenses and other current assets | 1,242 | 5,611 |
Inventories | (24,237) | (1,933) |
Other assets and liabilities | 91 | 760 |
Accounts payable | 12,432 | 7,515 |
Accrued expenses | 26,112 | 2,397 |
Net cash from operating activities | 158,799 | 37,757 |
Cash flow from investing activities: | ||
Capital expenditures | (91,384) | (17,642) |
Proceeds from sale of mineral rights | 2,000 | |
Net cash from investing activities | (111,837) | (17,642) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 17,000 | 50,545 |
Proceeds from stock option exercises | 107 | |
Payment of dividends | (14,996) | |
Payments of debt issuance cost | (2,356) | |
Repayment of borrowings | (17,066) | (24,900) |
Repayments of financed insurance payable | (280) | (862) |
Repayments of financing leased equipment | (3,760) | (1,253) |
Restricted stock surrendered for withholding taxes payable | (2,871) | (327) |
Net cash from financing activities | (21,866) | 20,847 |
Net change in cash and cash equivalents and restricted cash | 25,096 | 40,962 |
Cash and cash equivalents and restricted cash, beginning of period | 22,806 | 6,710 |
Cash and cash equivalents and restricted cash, end of period | 47,902 | 47,672 |
Supplemental cash flow information: | ||
Cash paid for interest | 4,680 | 852 |
Cash paid for taxes | 15,500 | |
Non-cash investing and financing activities: | ||
Leased assets obtained under new financing leases | 4,259 | 9,157 |
Financed equipment purchases | 5,730 | |
Capital expenditures included in accounts payable and accrued expenses | 9,004 | 3,128 |
Additional asset retirement obligations incurred | 4,682 | $ 235 |
Accrued dividends payable | 4,994 | |
Ramaco Coal Asset Acquisition | ||
Cash flow from investing activities: | ||
Acquisition of assets | (11,738) | |
Non-cash investing and financing activities: | ||
Coal acquisition | 56,551 | |
Maben Asset Acquisition | ||
Cash flow from investing activities: | ||
Acquisition of assets | (10,715) | |
Non-cash investing and financing activities: | ||
Coal acquisition | $ 21,000 |
Note 1 - Business
Note 1 - Business | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
BUSINESS | NOTE 1—BUSINESS Ramaco Resources, Inc. (the “Company,” “we,” “us” or “our,”) is a Delaware corporation formed in October 2016. Our principal corporate and executive offices are located in Lexington, Kentucky with operational offices in Charleston, West Virginia and Sheridan, Wyoming. We are an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. COVID-19 Pandemic— Russian/Ukraine Conflict— We have no meaningful direct financial exposure to Russia and Ukraine; however, the European Union ban on Russian coal has put upward pressure on international thermal coal prices. In addition, fear of economic contraction may affect future demand for coking coal. Recently, values of certain indices for high quality thermal coal have exceeded values of coking coal indices. If these conditions persist, available coking coal may be directed into thermal markets. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to fairly present the financial position as of, and the results of operations for, all periods presented. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. Intercompany balances and transactions between consolidated entities have been eliminated. Cash and Cash Equivalents Self-Insurance assumptions. At September 30, 2022, the estimated aggregate liability for uninsured claims totaled $4.2 Financial Instruments Nonrecurring fair value measurements include asset retirement obligations, the estimated fair value of which is calculated as the present value of estimated cash flows related to its reclamation liabilities using Level 3 inputs. The significant inputs used to calculate such liabilities include estimates of costs to be incurred, our credit adjusted discount rate, inflation rates and estimated date of reclamation. Concentrations— Adoption of New Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes Recent Accounting Pronouncements Being Assessed In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, |
Note 3 - Property, Plant and Eq
Note 3 - Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3—PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: (In thousands) September 30, 2022 December 31, 2021 Plant and equipment $ 203,529 $ 167,019 Mining property and mineral rights 120,708 26,064 Construction in process 38,932 9,972 Capitalized mine development costs 145,304 104,291 Less: accumulated depreciation and amortization (105,343) (80,269) Total property, plant and equipment, net $ 403,130 $ 227,077 Capitalized amounts related to coal reserves at properties where we are not currently developing or actively engaged in mining operations totaled $46.2 million as of September 30, 2022 and $25.1 million as of December 31, 2021. In addition to the amounts discussed above, on July 10, 2022, we experienced a material methane ignition at our Berwind mining complex. The cause of the ignition is presently unknown. We, in conjunction with the appropriate state and federal regulatory authorities, have been conducting a full investigation into the incident, which is still ongoing. The mine was idle at the time of the incident, and there were no personnel in the mine nor any injuries or fatalities. Due to regulatory oversight related to safety conditions, the Company has not yet inspected the area of the mine where the ignition event occurred. Accordingly, we have not yet estimated the damages incurred or determined a remediation and restart plan. As a result, no entries have been recorded for a potential loss relating to this matter. Production from the Berwind Complex is expected to be impacted for an indeterminant period of time. We will provide additional information regarding plans for both the rehabilitation and restarting of the mine as it becomes available. Depreciation and amortization included: Three months ended September 30, Nine months ended September 30, (In thousands) 2022 2021 2022 2021 Depreciation of plant and equipment $ 6,763 $ 4,484 $ 16,864 $ 13,354 Depreciation of right of use assets (financing leases) 1,710 413 3,806 540 Amortization of capitalized mine development costs 2,962 1,854 9,228 4,967 Total depreciation and amortization $ 11,435 $ 6,751 $ 29,898 $ 18,861 |
Note 4 - Debt
Note 4 - Debt | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
DEBT | NOTE 4—DEBT Revolving Credit Facility and Term Loan— Coal asset acquisition. On September 23, 2022, we entered into the Second Amendment to Amended and Restated Credit and Security Agreement with KeyBank to allow for the Maben Coal acquisition. The Revolving Credit Facility bears interest based on Secure Overnight Financing Rate (“SOFR”) + 2.0% or Base Rate + 1.5%. “Base Rate” is the highest of (i) KeyBank’s prime rate, (ii) Federal Funds Effective Rate + 0.5%, or (iii) SOFR + 2.0%. Advances under the Revolving Credit Facility are made initially as Base Rate loans but may be converted to SOFR rate loans at certain times at our discretion. At September 30, 2022, there was a $17.0 million borrowing and a $0.4 million letter of credit outstanding under the Revolving Credit Facility, leaving $22.6 million of remaining availability. The Term Loan is secured under a Master Security Agreement with a pledge of certain underground and surface mining equipment, bears interest at LIBOR + 5.15% and is required to be repaid in monthly installments of $278 thousand including accrued interest. The outstanding principal balance of the Term Loan was $0.8 million at September 30, 2022. The Credit Agreement contains usual and customary covenants including limitations on liens, additional indebtedness, investments, restricted payments, asset sales, mergers, affiliate transactions and other customary limitations, as well as financial covenants. At September 30, 2022, we were in compliance with all financial covenants under the Credit Agreement. Key Equipment Finance Loan— 9.00% Senior Unsecured Notes due 2026— J. H. Fletcher & Co. Loan— Komatsu Financial Limited Partnership Loan— Brandeis Machinery & Supply Company— (the “Brandeis Equipment Loans”). The Brandeis Equipment Loans bear interest at 4.8% per annum and are payable in 48 monthly installments of $24 thousand. The outstanding principal balance of the Brandeis Equipment Loans was $0.8 million at September 30, 2022. Ramaco Coal Deferred Purchase Price— Financing of Maben Coal Acquisition – |
Note 5 - Leases
Note 5 - Leases | 9 Months Ended |
Sep. 30, 2022 | |
Notes To Financial Statements | |
LEASES | NOTE 5—LEASES The Company has various financing leases for mining equipment. These leases are generally for terms up to 36 months and expire through 2025. We had one operating lease for office space that expired in May 2022. A new operating lease for office space was entered into during August 2022 and has a term of 60 months. Right-of-use assets and lease liabilities are determined as the present value of the lease payments, discounted using either the implicit interest rate in the lease or our estimated incremental borrowing rate based on similar terms, payments and the economic environment where the leased asset is located. Below is a summary of our leases: (In thousands) Classification September 30, 2022 December 31, 2021 Right-of-use assets Financing Financing lease right-of-use assets, net $ 9,839 $ 9,128 Operating Other assets 694 25 Total right-of-use assets $ 10,533 $ 9,153 Current lease liabilities Financing Current portion of financing lease obligations $ 4,776 $ 3,461 Operating Accrued expenses 80 25 Non-current lease liabilities Financing Long-term portion of financing lease obligations $ 3,783 $ 4,599 Operating Other long-term liabilities 617 — Total lease liabilities $ 9,256 $ 8,085 |
Note 6 - Equity
Note 6 - Equity | 9 Months Ended |
Sep. 30, 2022 | |
Notes To Financial Statements | |
EQUITY | NOTE 6—EQUITY Stock-Based Compensation Awards— includes 4.0 million authorized shares that became effective on February 23, 2022. Additionally, granted but unvested shares are generally forfeited upon termination of employment, unless an employee enters into another written arrangement, and may not be sold, assigned, transferred, pledged or otherwise encumbered. As of September 30, 2022, we had four types of stock-based awards outstanding: options, restricted stock, restricted stock units and performance stock units. Stock-based compensation expense for all four types of stock-based awards totaled $2.0 million and $1.3 million for the three months ended September 30, 2022 and September 30, 2021, respectively. Stock-based compensation expense for all four types of stock-based awards totaled $6.2 million and $3.9 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. The following table summarizes stock-based awards outstanding, as well as activity for the period: Restricted Stock Restricted Stock Units Performance Stock Units Weighted Weighted Weighted Average Grant Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Shares Date Fair Value Outstanding at December 31, 2021 3,741,770 $ 3.98 — $ — — $ — Granted 214,363 14.59 248,706 15.65 248,706 22.21 Vested (715,665) 5.38 — — — — Forfeited (637) 15.65 — — — — Outstanding at September 30, 2022 3,239,831 $ 4.37 248,706 $ 15.65 248,706 $ 22.21 Options Restricted Stock— one three Restricted Stock Units— The 248,706 restricted stock units are linked to the Company’s common stock value which was fair valued on the date of grant at $15.65 per share and is recognized ratably over the service period. At September 30, 2022, there was $3.0 million of total unrecognized compensation cost related to unvested restricted stock units to be recognized over a weighted-average period of 2.3 Performance Stock Units— The Company’s 248,706 performance stock units were valued relative to the stock price performance of a peer group of companies at a valuation stock price of $15.65 per share, which was fair valued at $22.21 per share at the date of grant based on a Monte Carlo simulation. The fair value of the performance stock units on the date of the grant is recognized ratably over the service period. At September 30, 2022, there was $4.3 million of total unrecognized compensation cost related to unvested performance stock units to be recognized over a weighted-average period of 2.3 Dividends – In addition, dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on June 15, 2022, to shareholders of record on June 1, 2022, and dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on September 15, 2022, to shareholders of record on September 1, 2022. On September 28, 2022, the Company announced that its Board of Directors declared a quarterly cash dividend of approximately $0.11 per share of common stock. Dividends of $5.0 million were accrued at September 30, 2022, and are payable on December 15, 2022, to shareholders of record on December 1, 2022. |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Notes To Financial Statements | |
COMMITMENTS AND CONTINGENCIES. | NOTE 7—COMMITMENTS AND CONTINGENCIES Surety Bonds— Contingent Transportation Purchase Commitments— Litigation— In November 2018, one of our three raw coal storage silos that fed our Elk Creek plant experienced a partial structural failure. Our insurance carrier disputed our claim for coverage and in August 2019 we filed suit. The case went to trial in June 2021 and in July 2021, the jury returned a verdict in our favor for $7.7 million in compensatory damages and made an additional award of $25.0 million for inconvenience and aggravation. In August 2021, the defendants filed a post-trial motion. On March 4, 2022, the court entered its memorandum opinion and order on the motion reducing the jury award to a total of $1.8 million, including pre-judgment interest, based largely on the court’s decision to vacate and set aside, in its entirety, the jury award of damages for inconvenience and aggravation. The same day, the court entered the judgment in accordance with the memorandum opinion and order. No amount is currently reflected in the financial statements related to this matter. On April 1, 2022, we filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. The matter has been fully briefed by the parties and is now pending before the court. |
Note 8 - Revenue
Note 8 - Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
REVENUE. | NOTE 8—REVENUE Our revenue is derived from contracts for the sale of coal which is recognized at the point in time control is transferred to our customer. Generally, domestic sales contracts have terms of about one year and the pricing is typically fixed. Export sales have spot or term contracts and pricing can either be by fixed-price or a price derived against index-based pricing mechanisms. Sales completed with delivery to an export terminal are reported as export revenue. Disaggregated information about our revenue is presented below: Three months ended September 30, Nine months ended September 30, (In thousands) 2022 2021 2022 2021 Coal Sales North American revenue $ 78,442 $ 47,954 $ 231,365 $ 105,611 Export revenue, excluding Canada 58,483 28,423 199,096 90,278 Total revenue $ 136,925 $ 76,377 $ 430,461 $ 195,889 At September 30, 2022, we had outstanding performance obligations for the remainder of 2022 of approximately 0.5 million tons for contracts with fixed sales prices averaging $197/ton and 0.3 million tons for contracts with index-based pricing mechanisms. Additionally, we had outstanding performance obligations for 2023 of approximately 1.4 million tons for contracts with fixed sales prices averaging $198/ton and 0.1 million tons for contracts with index-based pricing mechanisms. Index-based prices have not been estimated for the purpose of disclosing remaining performance obligations as permitted under the revenue recognition guidance when variable consideration is allocated entirely to a wholly unsatisfied performance obligation. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
INCOME TAXES | NOTE 9—INCOME TAXES Income tax provisions for interim quarterly periods are generally based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items related specifically to interim periods. The income tax impacts of discrete items are recognized in the period these occur. Our effective tax rate for the three months ended September 30, 2022 and September 30, 2021 was 20% and 21%, respectively. Our effective tax rate, again excluding discrete items, for the nine months ended September 30, 2022 and 2021 was 21.9% and 13%, respectively. Discrete items during the 2021 periods included the impact of legislative changes in West Virginia and Virginia for which we recognized a tax benefit of $1.6 million. We also reported discrete items related to stock-based compensation in 2022 and 2021 periods. The primary difference from the federal statutory rate of 21% in each period is related to state taxes, permanent differences for non-deductible expenses and depletion expense for income tax purposes. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | NOTE 10—EARNINGS PER SHARE The following is the computation of basic and diluted EPS: Three months ended September 30, Nine months ended September 30, (In thousands, except per share amounts) 2022 2021 2022 2021 Numerator Net income $ 26,905 $ 7,035 $ 101,656 $ 21,120 Denominator Weighted average shares used to compute basic earnings per share 44,085 44,109 44,179 43,915 Dilutive effect of stock option awards 458 356 560 81 Dilutive effect of restricted stock units and performance stock units awards — — 8 — Weighted average shares used to compute diluted earnings per share 44,543 44,465 44,747 43,996 Earnings (loss) per share Basic $ 0.61 $ 0.16 $ 2.30 $ 0.48 Diluted $ 0.60 $ 0.16 $ 2.27 $ 0.48 Diluted earnings per share for the three months ended September 30, 2022, excludes 249 thousand of RSUs because the effect would have been antidilutive. Diluted earnings per share for the three months ended September 30, 2022, also excludes 249 thousand of performance stock units based on the guidance for contingently issuable shares, which requires exclusion when based on current period results, the shares would not be issuable if the end of the reporting period were the end of the contingency period. The performance stock units were excluded from diluted earnings per share for the nine months ended September 30,2022 as well. |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Notes to Financial Statements | |
RELATED PARTY TRANSACTIONS | NOTE 11—RELATED PARTY TRANSACTIONS Mineral Lease and Surface Rights Agreements —Prior to the acquisition of Ramaco Coal, LLC (“Ramaco Coal”), see Note 12, m Administrative Services Legal Services —Some of the professional legal services we receive are provided by Jones & Associates (“Jones”), a related party. Ramaco Coal Deferred Purchase Price— Ramaco Foundation-- |
Note 12- Ramaco Coal Acquisitio
Note 12- Ramaco Coal Acquisition | 9 Months Ended |
Sep. 30, 2022 | |
Asset Acquisition | |
RAMACO COAL ACQUISITION | NOTE 12—ACQUISITIONS Ramaco Coal On April 29, 2022, the acquisition of Ramaco Coal, an entity owned by an investment fund managed by Yorktown Partners and certain members of the Company's management, was completed pursuant to a Purchase and Sale Agreement, dated February 23, 2022. The purchase price was approximately $65 million, consisting of an initial payment of $10 million paid at closing and a deferred purchase price of $55 million to be paid during the remainder of 2022 in $5 million ratable quarterly installments, and $10 million ratable quarterly installments to be paid in 2023 plus interest at a rate of 9%. Ramaco Coal controls certain coal mineral interests of principally metallurgical coal properties which are owned in fee or leased under long-term leases that are, in turn, leased or subleased to the Company and various third parties. Such lessees pay a royalty based on the amount of metallurgical coal mined and the realized price per ton. Ramaco Coal also controls a large thermal coal deposit and permit near Sheridan, Wyoming covering approximately 16 thousand acres, including a research and development facility and associated equipment and has a goal of converting coal to carbon products, such as graphene, graphite and carbon fiber. Concurrent with this acquisition, the Company and Ramaco Coal each sold certain mineral rights located in West Virginia (the “Split Ridge Arrangement”). To compensate for the sale of these rights, we received an overriding royalty arrangement which included $2 million up front and $125 thousand quarterly minimum royalty payment beginning in January 2024 until December 2028. The fair value of this arrangement was $3.7 million, of which, $1.6 million was treated as an allocation of the fair value of this disposed component of Ramaco Coal and, separately, a $2.1 million gain on the sale of the Company’s mineral rights included in Other income (expense), net on the income statement. The acquisition of Ramaco Coal was accounted for as a purchase of assets due to substantially all of the fair value being concentrated in a single asset, the rights to metallurgical coal deposits. The consideration paid in connection with the acquisition of Ramaco Coal, including $1.6 million in closing costs, relinquishment of $1.6 million of prepaid royalties and $0.1 million paid to a mineral owner as part of the acquisition, was approximately $68.3 million and was allocated based on fair values to mining property and mineral rights ($65.1 million), buildings ($2.6 million) and equipment ($0.6 million). Refer to Note 4 for a description of the acquisition financing. Maben Coal On September 23, 2022, the Company completed the acquisition of 100% of the equity interests of Maben Coal, LLC (“Maben Coal”) pursuant to the Securities Purchase Agreement dated August 8, 2022, with Appleton Coal, LLC. The purchase price was approximately $30.0 million, consisting of an initial payment of $9.0 million and proceeds from a new two-year loan in the amount of $21.0 million. The Company also paid approximately $1.7 million of transaction costs and recognized liabilities of $1.3 million, primarily related to $1.2 million of cash bond replacement obligations incurred by the Company as part of the transaction. We acquired a large coal deposit on approximately 28 thousand leased acres located in Wyoming County and Raleigh County, West Virginia. We assumed existing mining permits issued by the West Virginia Department of Environmental Protection, which authorize mining by both surface and highwall mining methods as well as by underground methods. The property also has issued permits covering an existing haul road, as well as an active refuse disposal area together with a preparation plant and unit train loadout, neither of which had been constructed as of the closing date. The acquisition of Maben Coal was accounted for as a purchase of assets due to substantially all of the fair value being concentrated in a single asset, the rights to leased metallurgical coal deposits. The total consideration of approximately $33.0 million was allocated to mining property and mineral rights ($30.6 million), capitalized mine development costs ($1.0 million), receivable for the right to recover cash bond replacement payments owed by the Company discussed above ($1.2 million), and recoupable royalties ($0.2 million). Refer to Note 4 for information regarding the acquisition financing. Fair Value The consideration for both acquisitions above was allocated based on the relative fair values of the assets acquired, the primary asset of which was mining properties and mineral rights. The fair values of mining properties and mineral rights were determined based on Level 3 inputs, which are generally unobservable, requiring the Company to make assumptions based on a market participant perspective. Key Level 3 assumptions included future coal prices, capital expenditures, future coal production, production costs, and an appropriate rate at which to discount the future cash flows. We believe our assumptions to be consistent with those a market participant would use for valuation purposes. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies. | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary to fairly present the financial position as of, and the results of operations for, all periods presented. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the condensed consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results. Intercompany balances and transactions between consolidated entities have been eliminated. |
Cash and cash equivalents | Cash and Cash Equivalents |
Self-Insurance | Self-Insurance assumptions. At September 30, 2022, the estimated aggregate liability for uninsured claims totaled $4.2 |
Financial Instruments | Financial Instruments Nonrecurring fair value measurements include asset retirement obligations, the estimated fair value of which is calculated as the present value of estimated cash flows related to its reclamation liabilities using Level 3 inputs. The significant inputs used to calculate such liabilities include estimates of costs to be incurred, our credit adjusted discount rate, inflation rates and estimated date of reclamation. |
Concentrations | Concentrations— |
Recent Accounting Pronouncements | Adoption of New Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes Recent Accounting Pronouncements Being Assessed In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, |
Note 3 - Property, Plant and _2
Note 3 - Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment. | |
Schedule of property, plant, and equipment | (In thousands) September 30, 2022 December 31, 2021 Plant and equipment $ 203,529 $ 167,019 Mining property and mineral rights 120,708 26,064 Construction in process 38,932 9,972 Capitalized mine development costs 145,304 104,291 Less: accumulated depreciation and amortization (105,343) (80,269) Total property, plant and equipment, net $ 403,130 $ 227,077 |
Schedule of depreciation and amortization | Three months ended September 30, Nine months ended September 30, (In thousands) 2022 2021 2022 2021 Depreciation of plant and equipment $ 6,763 $ 4,484 $ 16,864 $ 13,354 Depreciation of right of use assets (financing leases) 1,710 413 3,806 540 Amortization of capitalized mine development costs 2,962 1,854 9,228 4,967 Total depreciation and amortization $ 11,435 $ 6,751 $ 29,898 $ 18,861 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of maturities of operating lease liabilities | (In thousands) Classification September 30, 2022 December 31, 2021 Right-of-use assets Financing Financing lease right-of-use assets, net $ 9,839 $ 9,128 Operating Other assets 694 25 Total right-of-use assets $ 10,533 $ 9,153 Current lease liabilities Financing Current portion of financing lease obligations $ 4,776 $ 3,461 Operating Accrued expenses 80 25 Non-current lease liabilities Financing Long-term portion of financing lease obligations $ 3,783 $ 4,599 Operating Other long-term liabilities 617 — Total lease liabilities $ 9,256 $ 8,085 |
Note 6 - Equity (Tables)
Note 6 - Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity | |
Schedule of restricted awards outstanding | Restricted Stock Restricted Stock Units Performance Stock Units Weighted Weighted Weighted Average Grant Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Shares Date Fair Value Outstanding at December 31, 2021 3,741,770 $ 3.98 — $ — — $ — Granted 214,363 14.59 248,706 15.65 248,706 22.21 Vested (715,665) 5.38 — — — — Forfeited (637) 15.65 — — — — Outstanding at September 30, 2022 3,239,831 $ 4.37 248,706 $ 15.65 248,706 $ 22.21 |
Note 8 - Revenue (Tables)
Note 8 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Three months ended September 30, Nine months ended September 30, (In thousands) 2022 2021 2022 2021 Coal Sales North American revenue $ 78,442 $ 47,954 $ 231,365 $ 105,611 Export revenue, excluding Canada 58,483 28,423 199,096 90,278 Total revenue $ 136,925 $ 76,377 $ 430,461 $ 195,889 |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Tables | |
Schedule computation of basic and diluted EPS | The following is the computation of basic and diluted EPS: Three months ended September 30, Nine months ended September 30, (In thousands, except per share amounts) 2022 2021 2022 2021 Numerator Net income $ 26,905 $ 7,035 $ 101,656 $ 21,120 Denominator Weighted average shares used to compute basic earnings per share 44,085 44,109 44,179 43,915 Dilutive effect of stock option awards 458 356 560 81 Dilutive effect of restricted stock units and performance stock units awards — — 8 — Weighted average shares used to compute diluted earnings per share 44,543 44,465 44,747 43,996 Earnings (loss) per share Basic $ 0.61 $ 0.16 $ 2.30 $ 0.48 Diluted $ 0.60 $ 0.16 $ 2.27 $ 0.48 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Restricted Cash | ||
Restricted Cash | $ 1.3 | $ 0.9 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | Prepaid expenses and other | Prepaid expenses and other |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies - Self-Insurance (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Self-Insurance | ||
Estimated aggregate liability for uninsured claims | $ 4.2 | $ 3.9 |
Estimated aggregate liability for uninsured claims included in other long-term liabilities | $ 2.7 | $ 2.4 |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Financial Instruments (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Summary of Significant Accounting Policies. | |
Excess fair value of debt over carrying value | $ 1 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Concentrations (Details) - customer | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue Benchmark | ||||
Concentrations | ||||
Number of Major Customers | 3 | 3 | ||
Customer Concentration Risk | Revenue Benchmark | ||||
Concentrations | ||||
Number of Major Customers | 4 | 2 | ||
Customer Concentration Risk | Revenue Benchmark | Customer A | ||||
Concentrations | ||||
Concentration Risk, Percentage | 19% | 23% | ||
Customer Concentration Risk | Revenue Benchmark | Customer B | ||||
Concentrations | ||||
Concentration Risk, Percentage | 13% | |||
Customer Concentration Risk | Revenue Benchmark | Customer C | ||||
Concentrations | ||||
Concentration Risk, Percentage | 12% | 17% | ||
Customer Concentration Risk | Revenue Benchmark | Customer D | ||||
Concentrations | ||||
Concentration Risk, Percentage | 12% | |||
Customer Concentration Risk | Revenue Benchmark | Total Customer Base | ||||
Concentrations | ||||
Concentration Risk, Percentage | 56% | 64% | 40% | |
Customer Concentration Risk | Accounts Receivable. | ||||
Concentrations | ||||
Number of Major Customers | 4 | |||
Customer Concentration Risk | Accounts Receivable. | Total Customer Base | ||||
Concentrations | ||||
Concentration Risk, Percentage | 44% | 59% |
Note 3 - Property, Plant and _3
Note 3 - Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) $ in Thousands | Jul. 10, 2022 employee | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Property, plant, and equipment | |||
Less: Accumulated depreciation and amortization | $ (105,343) | $ (80,269) | |
Total property, plant and equipment, net | 403,130 | 227,077 | |
Capitalized Costs Related to Coal Reserves | 46,200 | 25,100 | |
Number of personnel in the mine | employee | 0 | ||
Plant and Equipment | |||
Property, plant, and equipment | |||
Property, plant and equipment, gross | 203,529 | 167,019 | |
Mining Properties and Mineral Rights | |||
Property, plant, and equipment | |||
Property, plant and equipment, gross | 120,708 | 26,064 | |
Construction in Progress | |||
Property, plant, and equipment | |||
Property, plant and equipment, gross | 38,932 | 9,972 | |
Capitalized mine development cost | |||
Property, plant, and equipment | |||
Property, plant and equipment, gross | $ 145,304 | $ 104,291 |
Note 3 - Property, Plant and _4
Note 3 - Property, Plant and Equipment - Depreciation and amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment. | |||||
Capitalized Costs Related to Coal Reserves | $ 46,200 | $ 46,200 | $ 25,100 | ||
Depreciation of plant and equipment | 6,763 | $ 4,484 | 16,864 | $ 13,354 | |
Depreciation of right of use assets | 1,710 | 413 | 3,806 | 540 | |
Amortization of capitalized mine development costs | 2,962 | 1,854 | 9,228 | 4,967 | |
Total depreciation and amortization | $ 11,435 | $ 6,751 | $ 29,898 | $ 18,861 |
Note 4 - Debt (Details)
Note 4 - Debt (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||||||
Sep. 23, 2022 USD ($) | Apr. 29, 2022 USD ($) installment | Jul. 13, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) installment | Sep. 30, 2021 USD ($) | Oct. 23, 2022 | Jan. 11, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 24, 2021 USD ($) | Oct. 29, 2021 USD ($) | Oct. 28, 2021 USD ($) | Aug. 16, 2021 USD ($) | Jul. 23, 2021 USD ($) | Apr. 16, 2020 USD ($) | |
Debt | |||||||||||||||
Debt issuance costs incurred | $ 2,356 | ||||||||||||||
Current portion of long-term debt | $ 30,839 | $ 30,839 | $ 7,674 | ||||||||||||
Maben Coal, LLC | |||||||||||||||
Debt | |||||||||||||||
Aggregate principal amount | $ 21,000 | ||||||||||||||
Maben Coal, LLC | |||||||||||||||
Debt | |||||||||||||||
Voting interest acquired | 100% | 100% | |||||||||||||
Senior Notes. | |||||||||||||||
Debt | |||||||||||||||
Aggregate principal amount | $ 34,500 | $ 34,500 | $ 34,500 | ||||||||||||
Debt issuance costs incurred | $ 2,400 | ||||||||||||||
Effective interest rate | 10.45% | 10.45% | |||||||||||||
Interest rate | 9% | 9% | 9% | ||||||||||||
Unamortized premium/discount | $ 1,800 | $ 1,800 | |||||||||||||
Redemption price percentage | 100% | ||||||||||||||
Ramaco Coal Loan | |||||||||||||||
Debt | |||||||||||||||
Aggregate principal amount | $ 55,000 | ||||||||||||||
Amount paid per installment | $ 10,000 | ||||||||||||||
Number of installments | installment | 7 | ||||||||||||||
Frequency of periodic payment | quarterly | ||||||||||||||
Interest rate | 9% | ||||||||||||||
Outstanding principal amount | 45,000 | $ 45,000 | |||||||||||||
Ramaco Coal Loan | Maximum | |||||||||||||||
Debt | |||||||||||||||
Percentage available for conversion | 50% | ||||||||||||||
Amount available for conversion | $ 30,000 | ||||||||||||||
Ramaco Coal Loan | Initial Period For Periodic Payments Under Debt Instrument [Member] | |||||||||||||||
Debt | |||||||||||||||
Amount paid per installment | $ 5,000 | ||||||||||||||
KeyBank National Association | |||||||||||||||
Debt | |||||||||||||||
Outstanding on Revolving Credit Facility | 17,000 | 17,000 | |||||||||||||
KeyBank National Association | Revolving Credit Facility | |||||||||||||||
Debt | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000 | $ 30,000 | |||||||||||||
Amount of remaining availability | 22,600 | $ 22,600 | |||||||||||||
KeyBank National Association | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||||||||
Debt | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||||||||||||||
KeyBank National Association | Revolving Credit Facility | Base Rate | |||||||||||||||
Debt | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||||||||||
KeyBank National Association | Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | |||||||||||||||
Debt | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||||||||
KeyBank National Association | Letter of Credit | |||||||||||||||
Debt | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000 | ||||||||||||||
Outstanding on Revolving Credit Facility | 400 | $ 400 | |||||||||||||
KeyBank National Association | Term Loan | |||||||||||||||
Debt | |||||||||||||||
Aggregate principal amount | $ 10,000 | ||||||||||||||
Amount paid per installment | $ 278 | ||||||||||||||
Frequency of periodic payment | monthly | ||||||||||||||
Long-term Debt, Total | 800 | $ 800 | |||||||||||||
KeyBank National Association | Term Loan | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.15% | ||||||||||||||
KeyBank National Association | Equipment Loan | |||||||||||||||
Debt | |||||||||||||||
Aggregate principal amount | $ 4,700 | ||||||||||||||
Amount paid per installment | $ 147 | ||||||||||||||
Number of installments | installment | 36 | ||||||||||||||
Frequency of periodic payment | monthly | ||||||||||||||
Long-term Debt, Total | $ 1,000 | $ 1,000 | |||||||||||||
Annual percent of premium prepayment | 3% | ||||||||||||||
Annual premium decline in premium prepayment | 1% | ||||||||||||||
Interest rate | 7.45% | 7.45% | |||||||||||||
J. H. Fletcher & Co | Equipment Loan | |||||||||||||||
Debt | |||||||||||||||
Aggregate principal amount | $ 4,400 | $ 4,400 | $ 3,900 | $ 900 | |||||||||||
Amount paid per installment | $ 200 | ||||||||||||||
Number of installments | installment | 24 | ||||||||||||||
Frequency of periodic payment | monthly | ||||||||||||||
Long-term Debt, Total | $ 6,400 | $ 6,400 | |||||||||||||
Interest rate | 0% | 0% | |||||||||||||
Amount of monthly installments | $ 195 | $ 195 | |||||||||||||
Number Of Monthly Installments | 24 months | ||||||||||||||
Komatsu Financial Limited Partnership | Equipment Loan | |||||||||||||||
Debt | |||||||||||||||
Aggregate principal amount | $ 1,000 | ||||||||||||||
Amount paid per installment | $ 28 | ||||||||||||||
Number of installments | installment | 36 | ||||||||||||||
Frequency of periodic payment | monthly | ||||||||||||||
Long-term Debt, Total | $ 600 | $ 600 | |||||||||||||
Interest rate | 4.60% | 4.60% | |||||||||||||
Komatsu Financial Limited Partnership | Equipment Loan | Initial Period For Periodic Payments Under Debt Instrument [Member] | |||||||||||||||
Debt | |||||||||||||||
Amount paid per installment | $ 36 | ||||||||||||||
Brandeis Machinery & Supply Company | Equipment Loan | |||||||||||||||
Debt | |||||||||||||||
Aggregate principal amount | $ 1,400 | ||||||||||||||
Amount paid per installment | $ 24 | ||||||||||||||
Number of installments | installment | 48 | ||||||||||||||
Frequency of periodic payment | monthly | ||||||||||||||
Long-term Debt, Total | $ 800 | $ 800 | |||||||||||||
Interest rate | 4.80% | 4.80% | |||||||||||||
Investec Bank PLC | Maben Coal, LLC | |||||||||||||||
Debt | |||||||||||||||
Aggregate principal amount | $ 21,000 | ||||||||||||||
Current portion of long-term debt | $ 7,200 | $ 7,200 | |||||||||||||
Long-term Debt, Total | $ 13,800 | $ 13,800 | |||||||||||||
Amount of monthly installments until maturity | $ 800 | ||||||||||||||
Investec Bank PLC | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maben Coal, LLC | |||||||||||||||
Debt | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3% |
Note 5 - Leases (Details)
Note 5 - Leases (Details) $ in Thousands | Sep. 30, 2022 USD ($) lease | Aug. 31, 2022 | Dec. 31, 2021 USD ($) |
Leases [Abstract] | |||
Term of financing leases | 36 months | 60 months | |
Number of operating leases | lease | 1 | ||
Financing lease right-of-use assets, net | $ 9,839 | $ 9,128 | |
Operating Lease, Right-of-Use Asset | $ 694 | $ 25 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Total right-of-use assets | $ 10,533 | $ 9,153 | |
Finance Lease, Liability, Current | 4,776 | 3,461 | |
Operating Lease, Liability, Current | $ 80 | $ 25 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Finance Lease, Liability, Noncurrent | $ 3,783 | $ 4,599 | |
Operating Lease, Liability, Noncurrent | $ 617 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | ||
Present value of lease obligations | $ 9,256 | $ 8,085 |
Note 6 - Equity (Details)
Note 6 - Equity (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Dec. 01, 2022 USD ($) | Feb. 18, 2022 USD ($) | Aug. 31, 2016 employee $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | Sep. 28, 2022 $ / shares | Sep. 15, 2022 $ / shares | Jun. 15, 2022 $ / shares | Mar. 15, 2022 $ / shares | |
EQUITY | ||||||||||||
Authorized (in shares) | 10,900,000 | 10,900,000 | ||||||||||
Shares available for grant | 5,400,000 | 5,400,000 | ||||||||||
Additional shares authorized | 4,000,000 | |||||||||||
Compensation costs | $ | $ 2,000 | $ 1,300 | $ 6,200 | $ 3,900 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Options granted | 937,424 | |||||||||||
Option exercise price (per share) | $ / shares | $ 5.34 | |||||||||||
Options outstanding, intrinsic value | $ | $ 3,500 | $ 3,500 | ||||||||||
Common stock, shares authorized (in shares) | 260,000,000 | 260,000,000 | 260,000,000 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Quarterly Dividend | $ | $ 5,000 | $ 5,000 | ||||||||||
Dividends | $ | $ 2,500 | |||||||||||
Quarterly dividend per share | $ / shares | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | ||||||||
Dividend payable | $ | $ 4,994 | $ 4,994 | ||||||||||
Options | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Options exercised | 20,000 | |||||||||||
Number of Executives | employee | 2 | |||||||||||
Expiration period | 10 years | |||||||||||
Restricted Stock | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 3.98 | $ 4.37 | $ 4.37 | |||||||||
Outstanding, shares (in shares) | 3,741,770 | 3,239,831 | 3,239,831 | |||||||||
Restricted Stock | Executives and Employees | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Unrecognized compensation cost | $ | $ 6,300 | $ 6,300 | ||||||||||
Weighted-average period for recognition | 1 year 1 month 6 days | |||||||||||
Restricted Stock | Minimum | Executives and Employees | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Vesting period | 1 year | |||||||||||
Restricted Stock | Maximum | Executives and Employees | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Vesting period | 3 years 6 months | |||||||||||
Restricted Stock Units | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Vesting period | 3 years | |||||||||||
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.65 | $ 15.65 | ||||||||||
Unrecognized compensation cost | $ | $ 3,000 | $ 3,000 | ||||||||||
Weighted-average period for recognition | 2 years 3 months 18 days | |||||||||||
Outstanding, shares (in shares) | 248,706 | 248,706 | ||||||||||
Delivery Period | 30 days | |||||||||||
Shares delivered per unit awarded | 1 | |||||||||||
Restricted Stock Units | Executives and Employees | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.59 | $ 14.59 | ||||||||||
Performance Stock Units | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Vesting period | 3 years | |||||||||||
Outstanding, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 22.21 | $ 22.21 | ||||||||||
Unrecognized compensation cost | $ | $ 4,300 | $ 4,300 | ||||||||||
Weighted-average period for recognition | 2 years 3 months 18 days | |||||||||||
Outstanding, shares (in shares) | 248,706 | 248,706 | ||||||||||
Delivery Period | 30 days | |||||||||||
Shares delivered per unit awarded | 1 | |||||||||||
Share price for peer companies | $ / shares | $ 15.65 | $ 15.65 | ||||||||||
Performance Stock Units | Minimum | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Potential earnings (as a percentage) | 0% | |||||||||||
Performance Stock Units | Maximum | ||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||||||||||
Potential earnings (as a percentage) | 200% |
Note 6 - Equity - Summary of Re
Note 6 - Equity - Summary of Restricted Awards Activity (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Restricted Stock | |
Outstanding, shares (in shares) | shares | 3,741,770 |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 3.98 |
Granted, shares (in shares) | shares | 214,363 |
Granted, Weighted average grant date fair value (in dollars per share) | $ 14.59 |
Vested, shares (in shares) | shares | (715,665) |
Vested, Weighted average grant date fair value (in dollars per share) | $ 5.38 |
Forfeited, shares (in shares) | shares | (637) |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ 15.65 |
Outstanding, shares (in shares) | shares | 3,239,831 |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 4.37 |
Restricted Stock Units | |
Granted, shares (in shares) | shares | 248,706 |
Granted, Weighted average grant date fair value (in dollars per share) | $ 15.65 |
Outstanding, shares (in shares) | shares | 248,706 |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 15.65 |
Performance Stock Units | |
Granted, shares (in shares) | shares | 248,706 |
Granted, Weighted average grant date fair value (in dollars per share) | $ 22.21 |
Outstanding, shares (in shares) | shares | 248,706 |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 22.21 |
Executives and Employees | Restricted Stock Units | |
Outstanding, Weighted average grant date fair value (in dollars per share) | $ 14.59 |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |
Mar. 04, 2022 USD ($) | Jul. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) contract | |
Settled Litigation | |||
COMMITMENTS AND CONTINGENCIES | |||
Compensatory damages | $ 1.8 | $ 7.7 | |
Award to cover inconvenience and aggravation | $ 25 | ||
Surety Bond | |||
COMMITMENTS AND CONTINGENCIES | |||
Asset Retirement Obligation | $ 22.6 | ||
Reclamation bonding requirements | 0.3 | ||
Take-or-pay Purchase Commitments | |||
COMMITMENTS AND CONTINGENCIES | |||
Commitments | $ 5.4 | ||
Number of contracts | contract | 3 |
Note 8 - Revenue (Details)
Note 8 - Revenue (Details) - T T in Millions | Dec. 31, 2023 | Sep. 30, 2022 |
Contracts with Indexed Based Pricing Mechanisms | ||
REVENUES | ||
Outstanding performance obligation, mass | 0.3 | |
Contracts with Indexed Based Pricing Mechanisms | Forecast | ||
REVENUES | ||
Outstanding performance obligation, mass | 0.1 | |
Fixed Priced Contracts | ||
REVENUES | ||
Outstanding performance obligation, mass | 0.5 | |
Fixed Priced Contracts | Forecast | ||
REVENUES | ||
Outstanding performance obligation, mass | 1.4 |
Note 8 - Revenue - Domestic Rev
Note 8 - Revenue - Domestic Revenues an Export Revenues (Details) $ in Thousands, T in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) T | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) T $ / T | Sep. 30, 2021 USD ($) | Dec. 31, 2023 T $ / T | |
REVENUES | |||||
Revenues | $ | $ 136,925 | $ 76,377 | $ 430,461 | $ 195,889 | |
Term of domestic sales contracts | 1 year | ||||
Domestic Coal Revenues | |||||
REVENUES | |||||
Revenues | $ | 78,442 | 47,954 | $ 231,365 | 105,611 | |
Export Revenues | |||||
REVENUES | |||||
Revenues | $ | $ 58,483 | $ 28,423 | $ 199,096 | $ 90,278 | |
Fixed Priced Contracts | |||||
REVENUES | |||||
Outstanding performance obligation, mass | 0.5 | 0.5 | |||
Average per ton | $ / T | 197 | ||||
Fixed Priced Contracts | Forecast | |||||
REVENUES | |||||
Outstanding performance obligation, mass | 1.4 | ||||
Average per ton | $ / T | 198 | ||||
Contracts with Indexed Based Pricing Mechanisms | |||||
REVENUES | |||||
Outstanding performance obligation, mass | 0.3 | 0.3 | |||
Contracts with Indexed Based Pricing Mechanisms | Forecast | |||||
REVENUES | |||||
Outstanding performance obligation, mass | 0.1 |
Note 9 - Income Taxes (Details)
Note 9 - Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes. | ||||
Income tax expense | $ 6,596 | $ 1,588 | $ 27,068 | $ 1,650 |
Amount of tax benefit for legislative changes | $ 1,600 | |||
Effective Income Tax Rate Reconciliation, Percent, Total | 20% | 21% | 21.90% | 13% |
Statutory rate | 21% |
Note 10 - Earnings Per Share -
Note 10 - Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
EARNINGS PER SHARE | ||||||||
Net income | $ 26,905 | $ 33,280 | $ 41,471 | $ 7,035 | $ 9,942 | $ 4,143 | $ 101,656 | $ 21,120 |
Weighted average shares used to compute basic EPS (in shares) | 44,085 | 44,109 | 44,179 | 43,915 | ||||
Weighted average shares used to compute diluted EPS (in shares) | 44,543 | 44,465 | 44,747 | 43,996 | ||||
Basic (in dollars per share) | $ 0.61 | $ 0.16 | $ 2.30 | $ 0.48 | ||||
Diluted (in dollars per share) | $ 0.60 | $ 0.16 | $ 2.27 | $ 0.48 | ||||
Options | ||||||||
EARNINGS PER SHARE | ||||||||
Dilutive effect of stock-based awards (in shares) | 458 | 356 | 560 | 81 | ||||
Restricted Stock Units | ||||||||
EARNINGS PER SHARE | ||||||||
Dilutive effect of stock-based awards (in shares) | 8 | |||||||
Antidilutive shares | 249 | |||||||
Performance Stock Units | ||||||||
EARNINGS PER SHARE | ||||||||
Antidilutive shares | 249 |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Legal services payable | $ 35,000 | $ 35,000 | |||
Legal services paid | 0 | ||||
Interest expense, net | (2,255) | $ (933) | (5,323) | $ (1,418) | |
Legal Services | |||||
Legal services payable | 600 | 600 | $ 0 | ||
Ramaco Coal, LLC | |||||
Royalties paid | 1,300 | 3,100 | 3,900 | ||
Interest expense, net | 1,100 | 2,000 | |||
Ramaco Coal, LLC | On-Going Administrative Services | |||||
Related party fees | $ 40 | 44 | 79 | ||
Ramaco Coal, LLC | Accounts Payable and Accrued Liabilities | Mineral Lease and Surface Rights Agreements | |||||
Due to Related Parties, Total | $ 400 | ||||
Jones | Legal Services | |||||
Payments for legal services | $ 800 | $ 0 | |||
Ramaco Foundation | |||||
Amount of charitable cash contribution | $ 1,000 |
Note 12 - Ramaco Coal Acquisiti
Note 12 - Ramaco Coal Acquisition (Details) a in Thousands, $ in Thousands | Sep. 23, 2022 USD ($) a | Apr. 29, 2021 USD ($) a | Oct. 23, 2022 | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Asset Acquisition | |||||
Fair value of assets | $ 403,130 | $ 227,077 | |||
Maben Coal, LLC | |||||
Asset Acquisition | |||||
Voting interest acquired | 100% | 100% | |||
Ramaco Coal Asset Acquisition | |||||
Asset Acquisition | |||||
Purchase price | $ 65,000 | ||||
Initial payment | 10,000 | ||||
Deferred purchase price payable due in remainder of 2022 | 55,000 | ||||
Quarterly Installment amount in remainder of 2022 | 5,000 | ||||
Quarterly Installment amount in remainder of 2023 | $ 10,000 | ||||
Interest rate (as a percent) | 9% | ||||
Area of thermo coal deposit Wyoming | a | 16 | ||||
Upfront payment receivable on royalty | $ 2,000 | ||||
Minimum quarterly royalty payment receivable | 125 | ||||
Fair value of acquisition | 3,700 | ||||
Reduction in purchase price payable | 1,600 | ||||
Gain on sale of mineral rights | 2,100 | ||||
Consideration paid | 68,300 | ||||
Closing cost on asset acquisition | 1,600 | ||||
Relinquishment cost on prepaid royalties | 1,600 | ||||
Amount paid to a mineral owner as part of the acquisition | 100 | ||||
Ramaco Coal Asset Acquisition | Mining property and mineral rights | |||||
Asset Acquisition | |||||
Fair value of assets | 65,100 | ||||
Ramaco Coal Asset Acquisition | Building | |||||
Asset Acquisition | |||||
Fair value of assets | 2,600 | ||||
Ramaco Coal Asset Acquisition | Equipment | |||||
Asset Acquisition | |||||
Fair value of assets | $ 600 | ||||
Maben Coal, LLC | |||||
Asset Acquisition | |||||
Purchase price | $ 30,000 | ||||
Initial payment | $ 9,000 | ||||
Area of Real Estate Property | a | 28 | ||||
Consideration paid | $ 33,000 | ||||
Closing cost on asset acquisition | 1,700 | ||||
Liabilities recognized | 1,300 | ||||
Amount of cash bond replacement obligations incurred by the Company as part of the transaction | 1,200 | ||||
Aggregate principal amount | 21,000 | ||||
Maben Coal, LLC | Mining property and mineral rights | |||||
Asset Acquisition | |||||
Consideration paid | 30,600 | ||||
Maben Coal, LLC | Capitalized mine development cost | |||||
Asset Acquisition | |||||
Consideration paid | 1,000 | ||||
Maben Coal, LLC | Cash bond replacement | |||||
Asset Acquisition | |||||
Consideration paid | 1,200 | ||||
Maben Coal, LLC | Recoupable royalties | |||||
Asset Acquisition | |||||
Consideration paid | $ 200 |