Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38003 | |
Entity Registrant Name | Ramaco Resources, Inc. | |
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 1900 | |
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 | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001687187 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | METC | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 43,902,118 | |
Class B Common Stock | ||
Title of 12(b) Security | Class B Common Stock, $0.01 par value | |
Trading Symbol | METCB | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 8,783,877 | |
9.00% Senior Notes due 2026 | ||
Title of 12(b) Security | 9.00% Senior Notes due 2026 | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 33,883 | $ 35,613 |
Accounts receivable | 58,973 | 41,174 |
Inventories | 67,425 | 44,973 |
Prepaid expenses and other | 17,521 | 25,729 |
Total current assets | 177,802 | 147,489 |
Property, plant and equipment, net | 457,564 | 429,842 |
Financing lease right-of-use assets, net | 17,363 | 12,905 |
Advanced coal royalties | 3,464 | 3,271 |
Other | 4,198 | 2,832 |
Total Assets | 660,391 | 596,339 |
Current liabilities | ||
Accounts payable | 49,781 | 34,825 |
Accrued liabilities | 38,703 | 41,806 |
Current portion of asset retirement obligations | 29 | 29 |
Current portion of long-term debt | 25,333 | 35,639 |
Current portion of related party debt | 20,000 | 40,000 |
Current portion of financing lease obligations | 7,366 | 5,969 |
Insurance financing liability | 846 | 4,577 |
Total current liabilities | 142,058 | 162,845 |
Asset retirement obligations, net | 29,555 | 28,856 |
Long-term debt, net | 63,975 | 18,757 |
Long-term financing lease obligations, net | 8,296 | 4,917 |
Senior notes, net | 33,061 | 32,830 |
Deferred tax liability, net | 42,257 | 35,637 |
Other long-term liabilities | 4,084 | 3,299 |
Total liabilities | 323,286 | 287,141 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding | ||
Common stock | 442 | |
Additional paid-in capital | 272,728 | 168,711 |
Retained earnings | 63,850 | 140,045 |
Total stockholders' equity | 337,105 | 309,198 |
Total Liabilities and Stockholders' Equity | 660,391 | $ 596,339 |
Class A Common Stock | ||
Stockholders' Equity | ||
Common stock | 439 | |
Class B Common Stock | ||
Stockholders' Equity | ||
Common stock | $ 88 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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) | 44,155,735 | 44,155,735 |
Common stock, shares outstanding (in shares) | 44,155,735 | 44,155,735 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 225,000,000 | |
Common stock, shares issued (in shares) | 43,902,118 | |
Common stock, shares outstanding (in shares) | 43,902,118 | |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 35,000,000 | |
Common stock, shares issued (in shares) | 8,783,877 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | $ 137,469 | $ 138,655 | $ 303,829 | $ 293,537 |
Costs and expenses | ||||
Cost of sales (exclusive of items shown separately below) | 99,199 | 76,644 | 209,748 | 157,897 |
Asset retirement obligations accretion | 349 | 755 | 700 | 990 |
Depreciation, depletion, and amortization | 13,556 | 9,783 | 25,407 | 18,463 |
Selling, general and administrative | 14,319 | 8,786 | 26,061 | 20,610 |
Total costs and expenses | 127,423 | 95,968 | 261,916 | 197,960 |
Operating income | 10,046 | 42,687 | 41,913 | 95,577 |
Other income, net | 2,495 | 2,348 | 3,742 | 2,714 |
Interest expense, net | (2,518) | (1,937) | (4,826) | (3,068) |
Income before tax | 10,023 | 43,098 | 40,829 | 95,223 |
Income tax expense | 2,467 | 9,818 | 8,016 | 20,472 |
Net income | $ 7,556 | $ 33,280 | $ 32,813 | $ 74,751 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.17 | $ 0.75 | $ 0.74 | $ 1.69 |
Diluted (in dollars per share) | $ 0.17 | $ 0.74 | $ 0.73 | $ 1.66 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Common Stock Class B Common Stock | Common Stock | Additional Paid-in Capital. | Retained Earnings (Deficit) | Class B Common Stock | Total |
Balance at Dec. 31, 2021 | $ 441 | $ 163,566 | $ 47,067 | $ 211,074 | ||
Stock-based compensation | 2 | 1,885 | 1,887 | |||
Cash dividends declared | (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 | 74,751 | |||||
Balance at Jun. 30, 2022 | 441 | 164,918 | 114,323 | 279,682 | ||
Balance at Mar. 31, 2022 | 443 | 165,451 | 86,041 | 251,935 | ||
Stock-based compensation | 2,286 | 2,286 | ||||
Cash dividends declared | (4,998) | (4,998) | ||||
Shares surrendered for withholding taxes payable | (2) | (2,819) | (2,821) | |||
Net income | 33,280 | 33,280 | ||||
Balance at Jun. 30, 2022 | 441 | 164,918 | 114,323 | 279,682 | ||
Balance at Dec. 31, 2022 | 442 | 168,711 | 140,045 | 309,198 | ||
Stock-based compensation | 3 | 2,934 | 2,937 | |||
Shares surrendered for withholding taxes payable | (1) | (114) | (115) | |||
Adjustment to dividends previously declared | (354) | (354) | ||||
Net income | 25,257 | 25,257 | ||||
Balance at Mar. 31, 2023 | 444 | 171,531 | 164,948 | 336,923 | ||
Balance at Dec. 31, 2022 | 442 | 168,711 | 140,045 | 309,198 | ||
Net income | 32,813 | |||||
Balance at Jun. 30, 2023 | $ 88 | 439 | 272,728 | 63,850 | 337,105 | |
Balance at Mar. 31, 2023 | 444 | 171,531 | 164,948 | 336,923 | ||
Stock-based compensation | 3,568 | 3,568 | ||||
Cash dividends declared | (5,734) | $ 0 | (5,734) | |||
Stock dividend declared and distributed | 89 | 102,831 | (102,920) | |||
Shares surrendered for withholding taxes payable | (1) | (5) | (5,202) | (5,208) | ||
Net income | 7,556 | 7,556 | ||||
Balance at Jun. 30, 2023 | $ 88 | $ 439 | $ 272,728 | $ 63,850 | $ 337,105 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 20, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | |||||||
Net income | $ 7,556 | $ 25,257 | $ 33,280 | $ 41,471 | $ 32,813 | $ 31,382 | $ 74,751 |
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Accretion of asset retirement obligations | 349 | 755 | 700 | 990 | |||
Depreciation, depletion, and amortization | 13,556 | 9,783 | 25,407 | 18,463 | |||
Amortization of debt issuance costs | 357 | 243 | |||||
Stock-based compensation | 6,505 | 4,173 | |||||
Other income | (1,936) | (2,113) | |||||
Deferred income taxes | 6,620 | 6,448 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (17,799) | (8,293) | |||||
Prepaid expenses and other current assets | 5,106 | 1,472 | |||||
Inventories | (22,452) | (16,597) | |||||
Other assets and liabilities | (957) | 1,263 | |||||
Accounts payable | 13,030 | 10,060 | |||||
Accrued liabilities | 2,184 | 18,441 | |||||
Net cash provided by operating activities | 49,578 | 109,301 | |||||
Cash flow from investing activities: | |||||||
Capital expenditures | (48,016) | (53,807) | |||||
Acquisition of Ramaco Coal assets | (11,738) | ||||||
Other | 3,000 | 2,000 | |||||
Net cash used for investing activities | (43,834) | (63,545) | |||||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 77,500 | 1,337 | |||||
Payment of dividends | (11,108) | (9,996) | |||||
Repayment of borrowings | (42,588) | (9,407) | |||||
Repayment of Ramaco Coal acquisition financing - related party | (20,000) | ||||||
Repayments of insurance financing | (3,001) | (210) | |||||
Repayments of equipment finance leases | (3,098) | (2,718) | |||||
Shares surrendered for withholding taxes payable | (5,179) | (2,821) | |||||
Net cash used for financing activities | (7,474) | (23,815) | |||||
Net change in cash and cash equivalents and restricted cash | (1,730) | 21,941 | |||||
Cash and cash equivalents and restricted cash, beginning of period | $ 36,473 | $ 22,806 | 36,473 | $ 36,473 | 22,806 | ||
Cash and cash equivalents and restricted cash, end of period | 34,743 | $ 44,747 | 34,743 | 44,747 | |||
Non-cash investing and financing activities: | |||||||
Leased assets obtained under new financing leases | 7,874 | 3,624 | |||||
Capital expenditures included in accounts payable and accrued liabilities | 14,615 | 15,609 | |||||
Ramaco Coal acquisition financing | $ 56,551 | ||||||
Financed insurance | 406 | ||||||
Tax liability on shares surrendered by employees | 144 | ||||||
Accrued dividends payable | $ 504 | 504 | |||||
Maben Asset Acquisition | |||||||
Cash flow from investing activities: | |||||||
Maben acquisition bond recovery | $ 1,182 |
Note 1 - Business and Basis of
Note 1 - Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
BUSINESS AND BASIS OF PRESENTATION | NOTE 1—BUSINESS AND BASIS OF PRESENTATION 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. We also control mineral deposits near Sheridan, Wyoming as part of the Company’s initiatives regarding the potential recovery of rare earth elements as well as the potential commercialization of coal-to-carbon-based products and materials. Economic Conditions— Basis of Presentation In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of June 30, 2023, as well as the results of operations and cash flows 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. There were no material changes to the Company’s significant accounting policies during the first six months of 2023. |
Note 2 - Inventory
Note 2 - Inventory | 6 Months Ended |
Jun. 30, 2023 | |
Inventories. | |
INVENTORIES | NOTE 2—INVENTORIES Inventories consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Raw coal $ 42,374 $ 22,414 Saleable coal 19,788 18,223 Supplies 5,263 4,336 Total inventories $ 67,425 $ 44,973 |
Note 3 - Property, Plant and Eq
Note 3 - Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 3—PROPERTY, PLANT AND EQUIPMENT Property, plant, and equipment consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Plant and equipment $ 251,002 $ 232,885 Mining property and mineral rights 120,533 120,760 Construction in process 35,039 34,698 Capitalized mine development costs 165,812 153,436 Less: accumulated depreciation, depletion, and amortization (114,822) (111,937) Total property, plant and equipment, net $ 457,564 $ 429,842 On July 10, 2022, the Company experienced a methane ignition at the Berwind No. 1 mine, which was one of the active mines at our Berwind mining complex. The other mines resumed production while the Berwind No. 1 mine was idled until a full investigation could be conducted. There were no personnel in the mine at the time of the incident and no injuries or fatalities occurred. Production from the Berwind No. 1 mine restarted in the first quarter of 2023. Depreciation, depletion, and amortization included: Three months ended June 30, Six months ended June 30, (In thousands) 2023 2022 2023 2022 Depreciation of plant and equipment $ 7,661 $ 5,270 $ 14,428 $ 10,024 Amortization of right of use assets (finance leases) 1,999 1,383 3,881 2,097 Amortization and depletion of capitalized mine development costs and mineral rights 3,896 3,130 7,098 6,342 Total depreciation, depletion, and amortization $ 13,556 $ 9,783 $ 25,407 $ 18,463 |
Note 4 - Debt
Note 4 - Debt | 6 Months Ended |
Jun. 30, 2023 | |
Notes To Financial Statements | |
DEBT | NOTE 4—DEBT Outstanding debt consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Revolving Credit Facility $ 67,500 $ 25,000 Equipment loans 5,608 8,396 Senior Notes, net 33,061 32,830 Financing of Ramaco Coal acquisition - Related party debt 20,000 40,000 Financing of Maben Coal acquisition 16,200 21,000 Total debt $ 142,369 $ 127,226 Current portion of long-term debt 45,333 75,639 Long-term debt, net $ 97,036 $ 51,587 Revolving Credit Facility— Revolving loans under the new facility bear interest at either the base rate plus 1.50% or the Secured Overnight Financing Rate plus 2.00%. The base rate equals the highest of the administrative agent’s prime rate, the Federal Funds Effective Rate plus 0.5%, or 3%. The terms of the new facility include covenants limiting the ability of the Company to incur additional indebtedness, make investments or loans, incur liens, consummate mergers and similar fundamental changes, make restricted payments, and enter into transactions with affiliates. The terms of the new facility also require the Company to maintain certain covenants, including fixed charge coverage ratio and compensating balance requirements, with which the Company was in compliance at June 30, 2023. Fair Value— Other— |
Note 5 - Accrued Expenses and O
Note 5 - Accrued Expenses and Other Long-Term Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Notes To Financial Statements | |
ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES | NOTE 5—ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES Accrued liabilities at June 30, 2023 were $38.7 million compared to $41.8 million at December 31, 2022. The year-to-date decrease in accrued liabilities was driven by the payment of cash dividends that were accrued at December 31, 2022 in the estimated amount of $5.5 million. Self-Insurance The estimated aggregate liability for these items totaled $4.7 million and $3.6 million as of June 30, 2023 and December 31, 2022, respectively. Of the aggregate liability, the amounts included in other long-term liabilities were $3.1 million and $2.7 million as of June 30, 2023 and December 31, 2022, respectively. Funds held in escrow for potential future workers’ compensation claims are considered restricted cash and have been included in other current assets on the condensed consolidated balance sheets. Restricted cash balances were $0.9 million at June 30, 2023 and December 31, 2022. |
Note 6 - Equity
Note 6 - Equity | 6 Months Ended |
Jun. 30, 2023 | |
Notes To Financial Statements | |
EQUITY | NOTE 6—EQUITY Common Stock— The initial distribution of Class B common stock occurred on June 21, 2023 via a stock dividend to existing holders of common stock as of May 12, 2023. On the date of initial distribution, each holder of common stock received 0.2 shares of Class B common stock for every one share of existing common stock held on the record date. Similar actions occurred for holders of outstanding stock-based awards. The distribution of the Class B common stock provides existing holders of the Company’s common stock with an opportunity to participate directly in the financial performance of the Company’s CORE assets on a stand-alone basis, separate from the Company’s metallurgical coal operations. CORE assets were acquired initially as part of the Company’s acquisition of Ramaco Coal in the second quarter of 2022. The financial performance of CORE assets consists of the following non-cost bearing revenue streams based on the Company’s current expectations: ● Royalty fees derived from the royalties associated with the Ramaco Coal and Amonate reserves, which we believe approximates 3% of Company-produced coal sales revenue excluding coal sales revenue from Knox Creek, ● Infrastructure fees based on $5.00 per ton of coal processed at our preparation plants and $2.50 per ton of loaded coal at the Company’s rail load-out facilities, and ● Future income derived, if and when realized, from advanced carbon products and rare earth elements initiatives. The Company expects to pay a dividend equal to 20% of the revenues above; however, any dividend amounts declared and paid are subject to the sole discretion of the Company’s Board of Directors. In addition, the Board of Directors retains the power to change or add expense allocation policies related to CORE, redefine CORE assets, and redetermine CORE’s per-ton usage fees at any time, in its sole discretion, without shareholder approval. Holders of shares of Class A common stock continue to be entitled to receive dividends when and if declared by the Board of Directors subject to any statutory or contractual restrictions on the payment of dividends and to any prior rights and preferences that may be applicable to outstanding preferred stock, if any. CORE is not a separate legal entity and holders of Class B common stock do not own a direct interest in the assets of CORE. Holders of Class B common stock are stockholders of Ramaco Resources, Inc. and are subject to all risks and liabilities of the Company as a whole. With respect to voting rights, holders of shares of Class A common stock and Class B With respect to liquidation rights, holders of common stock are entitled to receive ratably the assets available for distribution to the stockholders after payment of liabilities and the liquidation preference of outstanding preferred stock, if any. That is, the rights to residual net assets upon liquidation are equal between holders of Class A and Class B common stock. Holders of Class B common stock do have specific rights to CORE assets in the event of liquidation. The Board of Directors also retains the ability, in its sole discretion, to exchange all outstanding shares of Class B common stock into Class A common stock based on an exchange ratio determined by a 20-day trailing volume-weighted average price for each class of stock. The initial distribution of the tracking stock was recorded as a stock dividend at fair value, which was estimated to be $11.00 per share based on the closing price of Class B shares on the first day of regular-way trading. The effect of the equity restructuring was a $102.9 million reduction in retained earnings and an increase of $102.9 million to Class B common stock and additional paid-in capital Effects of Class B Distribution on Outstanding Stock-based Awards. Stock-Based Awards— Restricted Stock— recognized ratably as expense over 2023 unless forfeited. During the vesting period, the participants have voting rights and receive nonforfeitable dividends on the same basis as fully vested common stockholders. Restricted Stock Units— Performance Stock Units— The target number of performance stock units granted during the first quarter of 2023, or 518,348 units, were valued relative to the total shareholder return of a peer group based on a Monte Carlo simulation, which resulted in a grant date fair value of $18.09 per unit. The aggregate fair value of these awards was $9.4 million, which is recognized ratably as expense over the three-year period. In addition, performance stock units granted in 2022, or 248,706 units at target, were modified during the first quarter of 2023. Modifications to these awards were made up primarily of changes in the composition of the peer group as well as changes in the way relative total shareholder return is evaluated against the updated peer group. The modification resulted in incremental fair value of $1.2 million, which is recognized as expense over 2023 and 2024. Effects of Class B Distribution on Outstanding Stock-based Awards— Dividends– On December 8, 2022, the Company announced that its Board of Directors declared a quarterly cash dividend of approximately $0.125 per share of common stock. Estimated dividends of $5.5 million were accrued in December 2022 and were paid on March 15, 2023 to shareholders of record on March 1, 2023 in the amount of $5.6 million. Dividends in the amount of $5.6 million, or approximately $0.125 per share of common stock, were paid on June 15, 2023, to shareholders of record on June 1, 2023, bringing the total cash dividends paid for the six months ended June 30, 2023 to $11.1 million. No dividends were declared on the tracking stock during the second quarter of 2023. CORE financial performance is shown in the table below. Three months ended June 30, (In thousands) 2023 Royalty Revenue Ramaco Coal $ 1,351 Amonate Assets 752 Other — Total Royalty Revenue $ 2,103 Infrastructure Revenue Preparation Plants (Processing at $5.00/ton) $ 3,433 Rail Load-outs (Loading at $2.50/ton) 1,726 Total Infrastructure Revenue (at $7.50/ton) $ 5,159 CORE Revenue $ 7,262 Total Cash Available for Dividend for Class B Common Stock $ 7,262 20% of Cash Available for Dividend for Class B Common Stock $ 1,452 Refer to Note 12 for information regarding cash dividends declared after the date of the financial statements for holders of Class A and Class B common stock. On February 18, 2022, the Company announced that its Board of Directors approved an increase in its initial quarterly cash dividend to $5.0 million from the formerly approved $2.5 million that was declared and accrued in December 2021. Dividends in the amount of $5.0 million, or approximately $0.11 per share of common stock, were paid on March 15, 2022 to shareholders of record on March 1, 2022. 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, bringing the total cash dividends paid for the six months ended June 30, 2022 to $10.0 million. |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Notes To Financial Statements | |
COMMITMENTS AND CONTINGENCIES. | NOTE 7—COMMITMENTS AND CONTINGENCIES Environmental Liabilities — Surety Bond — Coal Leases and Associated Royalty Commitments Contingent Transportation Purchase Commitments Litigation On November 5, 2018, one of our three raw coal storage silos that fed our Elk Creek plant experienced a partial structural failure. A temporary conveying system completed in late-November 2018 restored approximately 80% of our plant capacity. We completed a permanent belt workaround and restored the preparation plant to its full processing capacity in mid-2019. Our insurance carrier, Federal Insurance Company, disputed our claim for coverage based on certain exclusions to the applicable policy and, therefore, on August 21, 2019, we filed suit against Federal Insurance Company and Chubb INA Holdings, Inc. in Logan County Circuit Court in West Virginia seeking a declaratory judgment that the partial silo collapse was an insurable event and to require coverage under our policy. Defendants removed the case to the United States District Court for the Southern District of West Virginia, and upon removal, we substituted ACE American Insurance Company as a defendant in place of Chubb INA Holdings, Inc. The trial in the matter commenced on June 29, 2021, in Charleston, West Virginia. On July 15, 2021, the jury returned a verdict in our favor for $7.7 million in compensatory damages and on July 16, 2021, made an additional award of $25.0 million for inconvenience and aggravation. On August 12, 2021, the defendants filed a post-trial motion for judgment as a matter of law or in the alternative to alter or amend the judgment or for a new trial. The parties fully briefed the motion, and it stood submitted on August 31, 2021. 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, and also vacated 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. On April 1, 2022, we filed a notice of appeal with the U.S. Court of Appeals for the Fourth Circuit. On July 20, 2023, the court rendered a decision reinstating the jury’s $7.7 million verdict. The court further determined that we are entitled to attorney’s fees in an amount to be determined on remand. Finally, the court held that we are entitled to damages for inconvenience and aggravation but remanded for a new trial on the amount of such damages after affirming that the original $25 million award was excessive. On August 3, 2023, the Defendants-Appellees filed a Petition of Rehearing and Rehearing En Banc |
Note 8 - Revenue
Note 8 - Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
REVENUE. | NOTE 8—REVENUE Our revenue is derived from contracts for the sale of coal and is recognized when the performance obligations under the contract are satisfied, which is 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 be either fixed or 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 June 30, Six months ended June 30, (In thousands) 2023 2022 2023 2022 Coal Sales North American revenue $ 53,401 $ 91,397 $ 93,428 $ 150,629 Export revenue, excluding Canada 84,068 47,258 210,401 142,908 Total revenue $ 137,469 $ 138,655 $ 303,829 $ 293,537 As of June 30, 2023, the Company had outstanding performance obligations of approximately 0.9 million tons for contracts with fixed sales prices averaging $198 per ton, excluding freight, which will generally be satisfied in the second half of 2023, and 0.7 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. Concentrations— Segments— |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
INCOME TAXES | NOTE 9—INCOME TAXES Income tax provisions for interim 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 June 30, 2023 and June 30, 2022 was 24.6% and 22.8%, respectively. Our effective tax rate for the six months ended June 30, 2023 and June 30, 2022 was 19.6% and 21.5%, respectively. The primary difference from the federal statutory rate of 21% in each period is related to state taxes, non-deductible expenses, the foreign-derived intangible income deduction, and depletion expense for income tax purposes. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | NOTE 10—EARNINGS PER SHARE Earnings per share (“EPS”) is not presented retrospectively for periods prior to the issuance of the tracking stock as the tracking stock was not a part of the Company’s capital structure during those periods and the issuance of the tracking stock changes the common shareholders’ relative residual interest in the Company. Therefore, EPS is presented for the Company’s single common stock up to the time the tracking stock was issued. EPS is presented prospectively under the two-class method starting on the date of initial distribution of the tracking stock. Refer to Note 6 for information related to the Company’s tracking stock. The following is the computation of basic and diluted EPS: (In thousands, except per share amounts) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Earnings attribution Single class of common stock (through 6/20/2023) * $ 6,125 $ 33,280 $ 31,382 $ 74,751 Class A common stock (6/21/2023 - 6/30/2023) 1,326 — 1,326 — Class A restricted stock awards (6/21/2023 - 6/30/2023) 105 — 105 — Class B common stock (6/21/2023 - 6/30/2023) — — — — Class B restricted stock awards (6/21/2023 - 6/30/2023) — — — — Net income $ 7,556 $ 33,280 $ 32,813 $ 74,751 * Common stock and restricted stock participated in earnings 1:1 and are shown on a combined basis through 6/20/2023 consistent with historical presentation Three months ended June 30, Six months ended June 30, 2023 ** 2022 2023 ** 2022 EPS data for single class of common stock through 6/20/2023 Numerator Net earnings $ 6,125 $ 33,280 $ 31,382 $ 74,751 Denominator Weighted average shares used to compute basic earnings per share * 44,414 44,271 44,344 44,226 Dilutive effect of stock option awards 350 615 381 610 Dilutive effect of restricted stock units — 249 — 186 Dilutive effect of performance stock units 55 — 27 — Weighted average shares used to compute diluted earnings per share 44,819 45,135 44,752 45,022 Earnings per common share (single class of common stock) Basic $ 0.14 $ 0.75 $ 0.71 $ 1.69 Diluted $ 0.14 $ 0.74 $ 0.70 $ 1.66 6/21/2023 - 6/30/2023 Class A Class B EPS data for dual-class common stock 6/21/2023 - 6/30/2023 Numerator Net earnings $ 1,326 $ — Denominator Weighted average shares used to compute basic earnings per share ** 41,123 8,225 Dilutive effect of stock option awards 326 93 Dilutive effect of restricted stock units 39 32 Dilutive effect of performance stock units 224 82 Weighted average shares used to compute diluted earnings per share 41,712 8,432 Earnings per common share (dual-class structure) Basic $ 0.03 $ — Diluted $ 0.03 $ — ** Does not include unvested restricted stock, which averaged 3,239 and 648 for Class A and Class B, respectively Unvested restricted stock awards have the right to receive nonforfeitable dividends on the same basis as common shares; therefore, unvested restricted stock is considered a participating security for the purpose of calculating EPS. Historically, the Company has shown EPS for its common stock and unvested restricted stock on a combined basis since both instruments participate on the same basis and the resulting EPS is typically the same. Starting under the two-class method, the Company will report separately the net earnings allocated away from holders of Class A and Class B common stock to holders of unvested restricted stock awards. For accounting purposes, Class B’s participation rights are, in substance, discretionary based on the power of the Company’s Board of Directors to add or modify expense allocation policies, redefine CORE assets, and redetermine CORE’s per-ton usage fees at any time, in its sole discretion, without shareholder approval. Therefore, no amount of the Company’s net earnings shall be allocated to Class B for the purpose of calculating EPS other than actual dividends declared during the period for the tracking stock. No dividends were declared on Class B common stock during the second quarter of 2023. Diluted EPS for the second quarter and year-to-date periods through June 20, 2023 excluded all outstanding restricted stock units, or 684,151 units in total, because the effect would have been antidilutive. In addition, diluted EPS for the second quarter and year-to-date periods through June 20, 2023 excluded outstanding performance stock units originally granted in 2022, or 248,706 units at target, based on the guidance for contingently issuable shares, which requires exclusion when the shares would not be issuable if the end of the reporting period were the end of the contingency period. For the period from June 21 through June 30, 2023, diluted EPS for Class A common stock excluded 165,803 RSUs because the effect would have been antidilutive. Class A diluted EPS for this period also excluded outstanding performance stock units originally granted in 2022, or 248,706 units at target, based on the guidance for contingently issuable shares. In addition, the Company’s ability to convert Class B common shares into Class A common shares, as discussed previously in Note 6, is a contingency that will not be reflected in the diluted EPS for Class A under the if-converted method until such time that the required Board resolutions occur, if ever. For the period from June 21 through June 30, 2023, diluted EPS for Class B common stock excludes certain performance stock units, 49,737 at target, based on the guidance for contingently issuable shares guidance. |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
RELATED PARTY TRANSACTIONS | NOTE 11—RELATED PARTY TRANSACTIONS Ramaco Coal Deferred Purchase Price— Mineral Lease and Surface Rights Agreements —Prior to the acquisition of Ramaco Coal, m Administrative Services Legal Services —Some of the professional legal services we receive are provided by Jones & Associates (“Jones”), a related party. |
Note 12 - Subsequent Events
Note 12 - Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Notes To Financial Statements | |
SUBSEQUENT EVENTS | NOTE 12—SUBSEQUENT EVENTS On July 31, 2023, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.125 per share of Class A common stock to be paid paid |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies. | |
Basis of Presentation | Basis of Presentation In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of June 30, 2023, as well as the results of operations and cash flows 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. There were no material changes to the Company’s significant accounting policies during the first six months of 2023. |
Concentrations | Concentrations— Segments— |
Note 2 - Inventories (Tables)
Note 2 - Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventories. | |
Summary of Inventories | Inventories consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Raw coal $ 42,374 $ 22,414 Saleable coal 19,788 18,223 Supplies 5,263 4,336 Total inventories $ 67,425 $ 44,973 |
Note 3 - Property, Plant and _2
Note 3 - Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment. | |
Schedule of property, plant, and equipment | (In thousands) June 30, 2023 December 31, 2022 Plant and equipment $ 251,002 $ 232,885 Mining property and mineral rights 120,533 120,760 Construction in process 35,039 34,698 Capitalized mine development costs 165,812 153,436 Less: accumulated depreciation, depletion, and amortization (114,822) (111,937) Total property, plant and equipment, net $ 457,564 $ 429,842 |
Schedule of depreciation and amortization | Three months ended June 30, Six months ended June 30, (In thousands) 2023 2022 2023 2022 Depreciation of plant and equipment $ 7,661 $ 5,270 $ 14,428 $ 10,024 Amortization of right of use assets (finance leases) 1,999 1,383 3,881 2,097 Amortization and depletion of capitalized mine development costs and mineral rights 3,896 3,130 7,098 6,342 Total depreciation, depletion, and amortization $ 13,556 $ 9,783 $ 25,407 $ 18,463 |
Note 4 - Debt (Tables)
Note 4 - Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | Outstanding debt consisted of the following: (In thousands) June 30, 2023 December 31, 2022 Revolving Credit Facility $ 67,500 $ 25,000 Equipment loans 5,608 8,396 Senior Notes, net 33,061 32,830 Financing of Ramaco Coal acquisition - Related party debt 20,000 40,000 Financing of Maben Coal acquisition 16,200 21,000 Total debt $ 142,369 $ 127,226 Current portion of long-term debt 45,333 75,639 Long-term debt, net $ 97,036 $ 51,587 |
Note 6 - Equity (Tables)
Note 6 - Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity | |
Schedule of CORE financial performance | Three months ended June 30, (In thousands) 2023 Royalty Revenue Ramaco Coal $ 1,351 Amonate Assets 752 Other — Total Royalty Revenue $ 2,103 Infrastructure Revenue Preparation Plants (Processing at $5.00/ton) $ 3,433 Rail Load-outs (Loading at $2.50/ton) 1,726 Total Infrastructure Revenue (at $7.50/ton) $ 5,159 CORE Revenue $ 7,262 Total Cash Available for Dividend for Class B Common Stock $ 7,262 20% of Cash Available for Dividend for Class B Common Stock $ 1,452 |
Note 8 - Revenue (Tables)
Note 8 - Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Three months ended June 30, Six months ended June 30, (In thousands) 2023 2022 2023 2022 Coal Sales North American revenue $ 53,401 $ 91,397 $ 93,428 $ 150,629 Export revenue, excluding Canada 84,068 47,258 210,401 142,908 Total revenue $ 137,469 $ 138,655 $ 303,829 $ 293,537 |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule computation of basic and diluted EPS | The following is the computation of basic and diluted EPS: (In thousands, except per share amounts) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Earnings attribution Single class of common stock (through 6/20/2023) * $ 6,125 $ 33,280 $ 31,382 $ 74,751 Class A common stock (6/21/2023 - 6/30/2023) 1,326 — 1,326 — Class A restricted stock awards (6/21/2023 - 6/30/2023) 105 — 105 — Class B common stock (6/21/2023 - 6/30/2023) — — — — Class B restricted stock awards (6/21/2023 - 6/30/2023) — — — — Net income $ 7,556 $ 33,280 $ 32,813 $ 74,751 * Common stock and restricted stock participated in earnings 1:1 and are shown on a combined basis through 6/20/2023 consistent with historical presentation Three months ended June 30, Six months ended June 30, 2023 ** 2022 2023 ** 2022 EPS data for single class of common stock through 6/20/2023 Numerator Net earnings $ 6,125 $ 33,280 $ 31,382 $ 74,751 Denominator Weighted average shares used to compute basic earnings per share * 44,414 44,271 44,344 44,226 Dilutive effect of stock option awards 350 615 381 610 Dilutive effect of restricted stock units — 249 — 186 Dilutive effect of performance stock units 55 — 27 — Weighted average shares used to compute diluted earnings per share 44,819 45,135 44,752 45,022 Earnings per common share (single class of common stock) Basic $ 0.14 $ 0.75 $ 0.71 $ 1.69 Diluted $ 0.14 $ 0.74 $ 0.70 $ 1.66 6/21/2023 - 6/30/2023 Class A Class B EPS data for dual-class common stock 6/21/2023 - 6/30/2023 Numerator Net earnings $ 1,326 $ — Denominator Weighted average shares used to compute basic earnings per share ** 41,123 8,225 Dilutive effect of stock option awards 326 93 Dilutive effect of restricted stock units 39 32 Dilutive effect of performance stock units 224 82 Weighted average shares used to compute diluted earnings per share 41,712 8,432 Earnings per common share (dual-class structure) Basic $ 0.03 $ — Diluted $ 0.03 $ — ** Does not include unvested restricted stock, which averaged 3,239 and 648 for Class A and Class B, respectively |
Note 2 - Inventories (Details)
Note 2 - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventories | ||
Raw coal | $ 42,374 | $ 22,414 |
Saleable coal | 19,788 | 18,223 |
Supplies | 5,263 | 4,336 |
Total inventories | $ 67,425 | $ 44,973 |
Note 3 - Property, Plant and _3
Note 3 - Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, plant, and equipment | ||
Less: Accumulated depreciation and amortization | $ (114,822) | $ (111,937) |
Total property, plant and equipment, net | 457,564 | 429,842 |
Plant and equipment | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | 251,002 | 232,885 |
Mining property and mineral rights | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | 120,533 | 120,760 |
Construction in process | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | 35,039 | 34,698 |
Capitalized mine development costs | ||
Property, plant, and equipment | ||
Property, plant and equipment, gross | $ 165,812 | $ 153,436 |
Note 3 - Property, Plant and _4
Note 3 - Property, Plant and Equipment - Depreciation and amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment. | ||||
Depreciation of plant and equipment | $ 7,661 | $ 5,270 | $ 14,428 | $ 10,024 |
Amortization of right of use assets (finance leases) | 1,999 | 1,383 | 3,881 | 2,097 |
Amortization and depletion of capitalized mine development costs and mineral rights | 3,896 | 3,130 | 7,098 | 6,342 |
Total depreciation, depletion, and amortization | $ 13,556 | $ 9,783 | $ 25,407 | $ 18,463 |
Note 4 - Debt - Summary of Outs
Note 4 - Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Total debt | $ 142,369 | $ 127,226 |
Current portion of long-term debt | 45,333 | 75,639 |
Long term debt, net | 97,036 | 51,587 |
Revolving Credit Facility | ||
Total debt | 67,500 | 25,000 |
Equipment loans | ||
Total debt | 5,608 | 8,396 |
Senior Notes, net | ||
Total debt | 33,061 | 32,830 |
Financing of Ramaco Coal acquisition - Related party debt | ||
Total debt | 20,000 | 40,000 |
Financing of Maben Coal acquisition | ||
Total debt | $ 16,200 | $ 21,000 |
Note 4 - Debt (Details)
Note 4 - Debt (Details) - USD ($) $ in Millions | Feb. 15, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Revolving Credit Facility | |||
Debt | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 125 | ||
Accordion feature | $ 50 | ||
Amount of remaining availability | $ 28.9 | ||
Revolving Credit Facility | Secured overnight financing rate | |||
Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 2% | ||
Revolving Credit Facility | Base Rate | |||
Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Revolving Credit Facility | Base Rate | Minimum | |||
Debt | |||
Effective interest rate | 0.50% | ||
Revolving Credit Facility | Base Rate | Maximum | |||
Debt | |||
Effective interest rate | 3% | ||
Senior Notes, net | |||
Debt | |||
Estimated fair value | $ 36 | $ 36 |
Note 5 - Accrued Expenses and_2
Note 5 - Accrued Expenses and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | May 15, 2023 | Mar. 15, 2023 | Dec. 31, 2022 | May 15, 2022 | Feb. 18, 2022 |
Accrued liabilities | $ 38,703 | $ 41,806 | ||||
Dividend payable | 504 | $ 5,600 | $ 5,600 | 5,500 | $ 5,000 | $ 5,000 |
Uninsured claims | 4,700 | 3,600 | ||||
Restricted Cash | 900 | 900 | ||||
Other long-term liabilities | ||||||
Uninsured claims | $ 3,100 | $ 2,700 |
Note 6 - Equity - Common Stock
Note 6 - Equity - Common Stock (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 21, 2023 $ / shares shares | Jun. 12, 2023 Vote D $ / shares | Jun. 30, 2023 USD ($) $ / shares $ / T | Jun. 30, 2022 $ / T | Jun. 30, 2023 $ / shares | Dec. 31, 2022 $ / shares | |
Class of Stock [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Percent of royalty fee income | 3% | |||||
Price per ton of coal processed at preparation plants | $ / T | 5 | 5 | ||||
Price per ton of loaded coal at rail load-out facilities | $ / T | 2.50 | 2.50 | ||||
Percentage dividend from financial performance of carbon | 20 | 20 | ||||
Threshold trading days volume weighted average price | D | 20 | |||||
Dividend per share of tracking stock | $ 11 | |||||
Retained Earnings (Deficit) | ||||||
Class of Stock [Line Items] | ||||||
Adjustments relating to restructuring of equity | $ | $ (102.9) | |||||
Additional Paid-in Capital. | ||||||
Class of Stock [Line Items] | ||||||
Adjustments relating to restructuring of equity | $ | $ 102.9 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | 0.01 | |||
Number of votes per common share | Vote | 1 | |||||
Class B Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Distribution ratio | 0.2 | |||||
Percentage dividend from financial performance of carbon | 20 | |||||
Number of votes per common share | Vote | 1 | |||||
Number of shares issued | shares | 8,201,956 | |||||
Class B Common Stock | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Adjustments relating to restructuring of equity | $ | $ 102.9 |
Note 6 - Equity - Summary of Re
Note 6 - Equity - Summary of Restricted Awards Activity (Details) | 3 Months Ended | 6 Months Ended | |||||||||||||
Jun. 21, 2023 USD ($) shares | Jun. 15, 2023 $ / shares | Mar. 15, 2023 USD ($) $ / shares | Dec. 08, 2022 $ / shares | Jun. 15, 2022 $ / shares | Mar. 15, 2022 $ / shares | Feb. 18, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | May 15, 2023 USD ($) | Dec. 31, 2022 USD ($) | May 15, 2022 USD ($) | |
Compensation costs | $ | $ 3,600,000 | $ 2,300,000 | $ 6,500,000 | $ 4,200,000 | |||||||||||
Distribution ratio for outstanding award | 0.2 | ||||||||||||||
Changes in fair value | $ | $ 0 | ||||||||||||||
Incremental compensation costs associated with modifications | $ | $ 0 | ||||||||||||||
Dividend declared | $ / shares | $ 0.125 | ||||||||||||||
Dividend accrued not paid | $ | $ 2,500,000 | $ 354,000 | |||||||||||||
Dividend payable | $ | $ 5,600,000 | $ 5,000,000 | $ 504,000 | 504,000 | $ 5,600,000 | $ 5,500,000 | $ 5,000,000 | ||||||||
Dividends paid | $ / shares | $ 0.125 | $ 0.1250 | $ 0.11 | $ 0.11 | |||||||||||
Payment of dividends | $ | $ 11,100,000 | $ 10,000,000 | |||||||||||||
Per share amount of a dividend declared | $ / shares | $ 0 | $ 0 | |||||||||||||
Class B Common Stock | |||||||||||||||
Number of shares issued | 473,707 | ||||||||||||||
Restricted Stock | |||||||||||||||
Fair value of awards | $ | $ 2,500,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Restricted Stock | Class B Common Stock | |||||||||||||||
Outstanding, shares (in shares) | 648,000 | 648,000 | |||||||||||||
Shares in restricted stock | 680,718 | ||||||||||||||
Restricted Stock Units | |||||||||||||||
Granted, shares (in shares) | 518,348 | ||||||||||||||
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 10.61 | ||||||||||||||
Fair value of awards | $ | $ 5,500,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Delivery Period | 30 days | ||||||||||||||
Shares delivered per unit awarded | 1 | ||||||||||||||
Restricted Stock Units | Class B Common Stock | |||||||||||||||
Granted, shares (in shares) | 136,819 | ||||||||||||||
Performance Stock Units | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
Delivery Period | 30 days | ||||||||||||||
Performance Stock Units | Class B Common Stock | |||||||||||||||
Granted, shares (in shares) | 153,404 | ||||||||||||||
Employee Stock Option [Member] | Class B Common Stock | |||||||||||||||
Options granted | 183,484 | ||||||||||||||
Executives and Employees | Restricted Stock | |||||||||||||||
Granted, shares (in shares) | 296,115 | ||||||||||||||
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 10.61 | ||||||||||||||
Executives and Employees | Performance Stock Units | |||||||||||||||
Granted, shares (in shares) | 518,348 | ||||||||||||||
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | $ 18.09 | ||||||||||||||
Fair value of awards | $ | $ 9,400,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Shares delivered per unit awarded | 1 | ||||||||||||||
Executives and Employees | Performance Stock Units | Minimum | |||||||||||||||
Potential earnings (as a percentage) | 0% | ||||||||||||||
Executives and Employees | Performance Stock Units | Maximum | |||||||||||||||
Potential earnings (as a percentage) | 200% | ||||||||||||||
Executives and Employees | Performance Stock Units Granted in 2022 | |||||||||||||||
Granted, shares (in shares) | 248,706 | ||||||||||||||
Fair value of awards | $ | $ 1,200,000 | ||||||||||||||
Directors | Restricted Stock | |||||||||||||||
Fair value of awards | $ | $ 600,000 |
Note 6 - Equity - Dividends (De
Note 6 - Equity - Dividends (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 USD ($) $ / T | Jun. 30, 2022 $ / T | Jun. 30, 2023 | |
Royalty Revenue | $ 2,103 | ||
Infrastructure Revenue | 5,159 | ||
CORE Revenue | $ 7,262 | ||
Price per ton of coal processed at preparation plants | $ / T | 5 | 5 | |
Price per ton of loaded coal at rail load-out facilities | $ / T | 2.50 | 2.50 | |
Price per ton of infrastructure revenue | $ / T | 7.50 | ||
Percentage dividend from financial performance of carbon | 20 | 20 | |
Class B Common Stock | |||
Total Cash Available for Dividend for Class B Common Stock | $ 7,262 | ||
20% of Cash Available for Dividend for Class B Common Stock | 1,452 | ||
Percentage dividend from financial performance of carbon | 20 | ||
Ramaco Coal | |||
Royalty Revenue | 1,351 | ||
Amonate Assets | |||
Royalty Revenue | 752 | ||
Preparation Plants | |||
Infrastructure Revenue | 3,433 | ||
Rail Load-outs | |||
Infrastructure Revenue | $ 1,726 |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jul. 20, 2023 USD ($) | Mar. 04, 2022 USD ($) | Jul. 16, 2021 USD ($) | Jul. 15, 2021 USD ($) | Nov. 05, 2018 item | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |||||||||
Royalty Expense | $ 7,000 | $ 7,000 | $ 16,000 | $ 17,200 | |||||
Compensatory damages | $ 7,700 | $ 1,800 | $ 7,700 | ||||||
Award to cover inconvenience and aggravation | $ 25,000 | $ 25,000 | |||||||
Accrued amount | 0 | 0 | |||||||
Resolution of a contingency | 0 | 0 | |||||||
Number of raw coal storage silos, failure | item | 1 | ||||||||
Number of raw coal storage silos | item | 3 | ||||||||
Percentage of structural failure | 80% | ||||||||
Surety Bond | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Asset Retirement Obligation | 26,100 | 26,100 | |||||||
Take-or-pay Purchase Commitments | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Amount of contingent liability | 0 | 0 | |||||||
Commitment | 22,200 | 22,200 | |||||||
Total commitment | $ 36,000 | ||||||||
Commitment term | 5 years | ||||||||
Environmental | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Environmental liabilities | $ 0 | $ 0 |
Note 8 - Revenue (Details)
Note 8 - Revenue (Details) T in Millions | Jun. 30, 2023 T |
Contracts with Indexed Based Pricing Mechanisms | |
REVENUES | |
Outstanding performance obligation, mass | 0.7 |
Fixed Priced Contracts | |
REVENUES | |
Outstanding performance obligation, mass | 0.9 |
Note 8 - Revenue - Domestic Rev
Note 8 - Revenue - Domestic Revenues an Export Revenues (Details) $ in Thousands, T in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) T | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) T $ / T | Jun. 30, 2022 USD ($) | |
REVENUES | ||||
Revenues | $ 137,469 | $ 138,655 | $ 303,829 | $ 293,537 |
Term of domestic sales contracts | 1 year | |||
Domestic Coal Revenues | ||||
REVENUES | ||||
Revenues | 53,401 | 91,397 | $ 93,428 | 150,629 |
Export Revenues | ||||
REVENUES | ||||
Revenues | $ 84,068 | $ 47,258 | $ 210,401 | $ 142,908 |
Fixed Priced Contracts | ||||
REVENUES | ||||
Outstanding performance obligation, mass | T | 0.9 | 0.9 | ||
Average per ton | $ / T | 198 | |||
Contracts with Indexed Based Pricing Mechanisms | ||||
REVENUES | ||||
Outstanding performance obligation, mass | T | 0.7 | 0.7 |
Note 8 - Revenue - Concentratio
Note 8 - Revenue - Concentrations (Details) - Customer Concentration Risk - customer | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue Benchmark | ||||
Concentrations | ||||
Number of Major Customers | 2 | 4 | 4 | 3 |
Revenue Benchmark | Total Customer Base | ||||
Concentrations | ||||
Concentration Risk, Percentage | 35% | 65% | 49% | 53% |
Accounts Receivable. | ||||
Concentrations | ||||
Number of Major Customers | 3 | |||
Accounts Receivable. | Total Customer Base | ||||
Concentrations | ||||
Concentration Risk, Percentage | 61% | |||
Minimum | Revenue Benchmark | Total Customer Base | ||||
Concentrations | ||||
Concentration Risk, Percentage | 10% | |||
Minimum | Accounts Receivable. | Total Customer Base | ||||
Concentrations | ||||
Concentration Risk, Percentage | 10% |
Note 9 - Income Taxes (Details)
Note 9 - Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Taxes. | ||||
Deferred income taxes | $ 6,620 | $ 6,448 | ||
Income tax expense | $ 2,467 | $ 9,818 | $ 8,016 | $ 20,472 |
Effective Income Tax Rate Reconciliation, Percent, Total | 24.60% | 22.80% | 19.60% | 21.50% |
Statutory rate | 21% |
Note 10 - Earnings Per Share -
Note 10 - Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 20, 2023 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 20, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | |
EARNINGS PER SHARE | |||||||||
Net income | $ | $ 7,556 | $ 6,125 | $ 25,257 | $ 33,280 | $ 41,471 | $ 32,813 | $ 31,382 | $ 74,751 | |
Weighted average shares used to compute basic EPS (in shares) | 44,414,000 | 44,271,000 | 44,344,000 | 44,226,000 | |||||
Weighted average shares used to compute diluted EPS (in shares) | 44,819,000 | 45,135,000 | 44,752,000 | 45,022,000 | |||||
Basic (in dollars per share) | $ / shares | $ 0.17 | $ 0.14 | $ 0.75 | $ 0.74 | $ 0.71 | $ 1.69 | |||
Diluted (in dollars per share) | $ / shares | $ 0.17 | $ 0.14 | $ 0.74 | $ 0.73 | $ 0.70 | $ 1.66 | |||
Ratio of participation in earnings for common stock and preferred stock | 1 | ||||||||
Cash dividends declared | $ | $ 5,734 | $ 4,998 | $ 2,497 | ||||||
Restricted Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Antidilutive shares | 684,151 | ||||||||
Performance Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Antidilutive shares | 248,706 | ||||||||
Employee Stock Option [Member] | |||||||||
EARNINGS PER SHARE | |||||||||
Dilutive effect of stock-based awards (in shares) | 350,000 | 615,000 | 381,000 | 610,000 | |||||
Restricted Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Dilutive effect of stock-based awards (in shares) | 249,000 | 186,000 | |||||||
Performance Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Dilutive effect of stock-based awards (in shares) | 55,000 | 27,000 | |||||||
Class A Common Stock | |||||||||
EARNINGS PER SHARE | |||||||||
Net income | $ | $ 1,326 | ||||||||
Weighted average shares used to compute basic EPS (in shares) | 41,123,000 | ||||||||
Weighted average shares used to compute diluted EPS (in shares) | 41,712,000 | ||||||||
Basic (in dollars per share) | $ / shares | $ 0.03 | ||||||||
Diluted (in dollars per share) | $ / shares | $ 0.03 | ||||||||
Class A Common Stock | Restricted Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Antidilutive shares | 165,803 | ||||||||
Class A Common Stock | Performance Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Antidilutive shares | 248,706 | ||||||||
Class A Common Stock | Employee Stock Option [Member] | |||||||||
EARNINGS PER SHARE | |||||||||
Dilutive effect of stock-based awards (in shares) | 326,000 | ||||||||
Class A Common Stock | Restricted Stock | |||||||||
EARNINGS PER SHARE | |||||||||
Unvested restricted stock | 3,239,000 | 3,239,000 | 3,239,000 | ||||||
Class A Common Stock | Restricted Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Dilutive effect of stock-based awards (in shares) | 39,000 | ||||||||
Class A Common Stock | Performance Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Dilutive effect of stock-based awards (in shares) | 224,000 | ||||||||
Class B Common Stock | |||||||||
EARNINGS PER SHARE | |||||||||
Weighted average shares used to compute basic EPS (in shares) | 8,225,000 | ||||||||
Weighted average shares used to compute diluted EPS (in shares) | 8,432,000 | ||||||||
Cash dividends declared | $ | $ 0 | ||||||||
Class B Common Stock | Performance Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Antidilutive shares | 49,737 | ||||||||
Class B Common Stock | Employee Stock Option [Member] | |||||||||
EARNINGS PER SHARE | |||||||||
Dilutive effect of stock-based awards (in shares) | 93,000 | ||||||||
Class B Common Stock | Restricted Stock | |||||||||
EARNINGS PER SHARE | |||||||||
Unvested restricted stock | 648,000 | 648,000 | 648,000 | ||||||
Class B Common Stock | Restricted Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Dilutive effect of stock-based awards (in shares) | 32,000 | ||||||||
Class B Common Stock | Performance Stock Units | |||||||||
EARNINGS PER SHARE | |||||||||
Dilutive effect of stock-based awards (in shares) | 82,000 | ||||||||
Class A Restricted Stock | |||||||||
EARNINGS PER SHARE | |||||||||
Net income | $ | $ 105 |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Legal services payable | $ 20,000 | $ 20,000 | $ 40,000 | ||
Payments for legal services | 14,319 | $ 8,786 | 26,061 | $ 20,610 | |
Interest expense, net | (2,518) | (1,937) | (4,826) | (3,068) | |
Jones & Associates | |||||
Legal services payable | 600 | 600 | |||
Legal Services | |||||
Legal services paid | 0 | 800 | 0 | 800 | |
Ramaco Coal, LLC | |||||
Amount of related party debt paid | 20,000 | ||||
Due to Related Parties, Total | 20,000 | 20,000 | |||
Royalties paid | 1,100 | 3,100 | |||
Interest expense, net | $ 600 | 800 | $ 1,300 | 800 | |
Ramaco Coal, LLC | On-Going Administrative Services | |||||
Related party fees | $ 14 | $ 44 |
Note 12 - Subsequent Events (De
Note 12 - Subsequent Events (Details) | 3 Months Ended | 6 Months Ended | |||||||
Sep. 15, 2023 $ / shares | Jun. 15, 2023 $ / shares | Mar. 15, 2023 $ / shares | Jun. 15, 2022 $ / shares | Mar. 15, 2022 $ / shares | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jul. 31, 2023 $ / shares | |
Subsequent Events | |||||||||
Dividends paid | $ 0.125 | $ 0.1250 | $ 0.11 | $ 0.11 | |||||
Percentage dividend from financial performance of carbon | 20 | 20 | |||||||
Class B Common Stock | |||||||||
Subsequent Events | |||||||||
Percentage dividend from financial performance of carbon | 20 | ||||||||
Subsequent Event | Class A Common Stock | |||||||||
Subsequent Events | |||||||||
Dividends paid | $ 0.1250 | ||||||||
Dividend payable per share | $ 0.125 | ||||||||
Subsequent Event | Class B Common Stock | |||||||||
Subsequent Events | |||||||||
Dividends paid | $ 0.165 | ||||||||
Dividend payable per share | $ 0.165 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 20, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 20, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net Income (Loss) | $ 7,556 | $ 6,125 | $ 25,257 | $ 33,280 | $ 41,471 | $ 32,813 | $ 31,382 | $ 74,751 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |