Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2017 | May 15, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WARRIOR MET COAL, INC. | |
Entity Central Index key | 1,691,303 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,460,139 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - Successor - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 13,455 | $ 150,045 |
Short-term investments | 17,501 | 17,501 |
Trade accounts receivable | 96,180 | 65,896 |
Other receivables | 6,142 | 5,901 |
Inventories, net | 72,101 | 39,420 |
Prepaid expenses | 14,177 | 12,010 |
Total current assets | 219,556 | 290,773 |
Mineral interests, net | 137,392 | 143,231 |
Property, plant and equipment, net | 492,264 | 496,959 |
Other long-term assets | 16,733 | 16,668 |
Total assets | 865,945 | 947,631 |
Current liabilities: | ||
Accounts payable | 16,280 | 6,043 |
Accrued expenses | 43,413 | 47,339 |
Other current liabilities | 5,559 | 8,405 |
Current portion of long-term debt | 2,878 | 2,849 |
Total current liabilities | 68,130 | 64,636 |
Long-term debt | 2,995 | 3,725 |
Deferred income taxes | 1,944 | 1,944 |
Asset retirement obligations | 96,960 | 96,050 |
Other long-term liabilities | 28,165 | 28,309 |
Total liabilities | 198,194 | 194,664 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Common stock, $0.01 par value per share (140,000,000 shares authorized, 53,442,532 shares issued and outstanding) | 534 | 533 |
Preferred stock, $0.01 par value per share (10,000,000 shares authorized, no shares issued and outstanding) | 0 | 0 |
Additional paid in capital | 608,582 | 802,107 |
Retained earnings (accumulated deficit) | 58,635 | (49,673) |
Total stockholders’ equity | 667,751 | 752,967 |
Total liabilities and stockholders’ equity | $ 865,945 | $ 947,631 |
CONDENSED BALANCE SHEETS CONDEN
CONDENSED BALANCE SHEETS CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock shares issued (in shares) | 53,442,532 | 53,442,532 |
Common stock shares outstanding (in shares) | 53,442,532 | 53,442,532 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor | ||
Revenues: | ||
Sales | $ 241,056 | |
Other revenues | 12,908 | |
Total revenues | 253,964 | |
Costs and expenses: | ||
Cost of sales (exclusive of items shown separately below) | 106,144 | |
Cost of other revenues (exclusive of items shown separately below) | 8,179 | |
Depreciation and depletion | 14,582 | |
Selling, general and administrative | 5,170 | |
Other postretirement benefits | 0 | |
Restructuring costs | 0 | |
Transaction and other costs | 9,036 | |
Total costs and expenses | 143,111 | |
Operating income (loss) | 110,853 | |
Interest expense, net | (608) | |
Reorganization items, net | 0 | |
Income (loss) before income tax expense | 110,245 | |
Income tax expense | 1,937 | |
Net income (loss) | $ 108,308 | |
Basic and diluted net income per share: | ||
Net income per share—basic and diluted (in dollars per share) | $ 2.06 | |
Weighted average number of shares outstanding—basic and diluted (in shares) | 52,681 | |
Dividends per share (in dollars per share) | $ 3.56 | |
Predecessor | ||
Revenues: | ||
Sales | $ 65,154 | |
Other revenues | 6,229 | |
Total revenues | 71,383 | |
Costs and expenses: | ||
Cost of sales (exclusive of items shown separately below) | 72,297 | |
Cost of other revenues (exclusive of items shown separately below) | 4,698 | |
Depreciation and depletion | 28,958 | |
Selling, general and administrative | 9,008 | |
Other postretirement benefits | 6,160 | |
Restructuring costs | 3,418 | |
Transaction and other costs | 0 | |
Total costs and expenses | 124,539 | |
Operating income (loss) | (53,156) | |
Interest expense, net | (16,562) | |
Reorganization items, net | 7,920 | |
Income (loss) before income tax expense | (61,798) | |
Income tax expense | 18 | |
Net income (loss) | $ (61,816) |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND PARENT NET INVESTMENT - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid in Capital | Retained Earnings (Accumulated deficit) |
Balance at beginning of period (Predecessor) at Dec. 31, 2015 | $ (820,861) | ||||
Net Parent Investment [Roll Forward] | |||||
Net income (loss) | Predecessor | (61,816) | ||||
Change in attribution of Parent debt | Predecessor | (626) | ||||
Net transfers to Parent | Predecessor | (12,900) | ||||
Balance at end of period (Predecessor) at Mar. 31, 2016 | (896,203) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | Predecessor | (61,816) | ||||
Net income (loss) | Successor | 108,308 | $ 108,308 | |||
Balance at beginning of period (Successor) at Dec. 31, 2016 | 752,967 | $ 533 | $ 0 | $ 802,107 | (49,673) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | Successor | 108,308 | 108,308 | |||
Dividends paid ($3.56 per share) | Successor | (190,000) | (190,000) | |||
Purchase accounting measurement period adjustment | Successor | $ (3,525) | (3,525) | |||
Common shares issued (in shares) | Successor | 1 | 1 | |||
Balance at end of period (Successor) at Mar. 31, 2017 | $ 667,751 | $ 534 | $ 0 | $ 608,582 | $ 58,635 |
CONDENSED STATEMENTS OF CHANGE6
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND PARENT NET INVESTMENT (Parenthetical) - $ / shares | Mar. 31, 2017 | Mar. 31, 2017 |
Successor | ||
Dividends per share (in dollars per share) | $ 3.56 | $ 3.56 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor | ||
OPERATING ACTIVITIES | ||
Net income (loss) | $ 108,308 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and depletion | 14,582 | |
Deferred income tax expense | 0 | |
Stock based compensation expense | 0 | |
Non-cash reorganization items | 0 | |
Amortization of debt issuance costs and debt discount, net | 462 | |
Accretion of asset retirement obligations | 995 | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (30,284) | |
Other receivables | (242) | |
Inventories | (28,592) | |
Prepaid expenses and other current assets | (2,167) | |
Accounts payable | 10,237 | |
Accrued expenses and other current liabilities | (7,055) | |
Other | (691) | |
Net cash provided by (used in) operating activities | 65,553 | |
INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (11,378) | |
Net cash used in investing activities | (11,378) | |
FINANCING ACTIVITIES | ||
Dividends paid | (190,000) | |
Proceeds from issuance of debt | 0 | |
Retirements of debt | (765) | |
Net cash transfers to Parent | 0 | |
Debt issuance costs paid | 0 | |
Net cash used in financing activities | (190,765) | |
Net decrease in cash and cash equivalents and restricted cash | (136,590) | |
Cash and cash equivalents and restricted cash at beginning of period | 152,656 | |
Cash and cash equivalents and restricted cash at end of period | $ 16,066 | |
Predecessor | ||
OPERATING ACTIVITIES | ||
Net income (loss) | $ (61,816) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and depletion | 28,958 | |
Deferred income tax expense | 18 | |
Stock based compensation expense | 390 | |
Non-cash reorganization items | (18,882) | |
Amortization of debt issuance costs and debt discount, net | 10,164 | |
Accretion of asset retirement obligations | 1,169 | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 15,097 | |
Other receivables | 1,070 | |
Inventories | 677 | |
Prepaid expenses and other current assets | 13,020 | |
Accounts payable | (15,338) | |
Accrued expenses and other current liabilities | (16,083) | |
Other | 858 | |
Net cash provided by (used in) operating activities | (40,698) | |
INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (5,422) | |
Net cash used in investing activities | (5,422) | |
FINANCING ACTIVITIES | ||
Dividends paid | 0 | |
Proceeds from issuance of debt | 15,723 | |
Retirements of debt | (285) | |
Net cash transfers to Parent | (13,290) | |
Debt issuance costs paid | (8,388) | |
Net cash used in financing activities | (6,240) | |
Net decrease in cash and cash equivalents and restricted cash | (52,360) | |
Cash and cash equivalents and restricted cash at beginning of period | 84,462 | |
Cash and cash equivalents and restricted cash at end of period | $ 32,102 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Description of the Business Warrior Met Coal, LLC (the “Company” or, for the periods beginning as of April 1, 2016, the “Successor”) was formed on September 3, 2015 by certain Walter Energy, Inc. (“Walter Energy” or the “Parent”) lenders under the 2011 Credit Agreement, dated as of April 1, 2011 (the “2011 Credit Agreement”) and the noteholders under the 9.50% Senior Secured Notes due 2019 (such lenders and noteholders, collectively, “Walter Energy’s First Lien Lenders”) in connection with the acquisition by the Company of certain core operating assets of Walter Energy under section 363 under Chapter 11 of Title 11 (the "Chapter 11 Cases") of the U.S. Bankruptcy Code (“U.S. Bankruptcy Code”) in the Northern District of Alabama, Southern Division (the "Bankruptcy Court"). These operating assets acquired and liabilities assumed are referred to as the “Predecessor” for all periods on or before March 31, 2016. The Company and its Predecessor are a U.S. based producer and exporter of metallurgical (“met”) coal for a diversified customer base of blast furnace steel producers located primarily in Europe and South America. The Company also generates ancillary revenues from the sale of natural gas extracted as a byproduct from the underground coal mines and royalty revenues from leased properties. On November 5, 2015, Walter Energy and certain of its wholly owned U.S. subsidiaries (collectively, the "Walter Energy Debtors") entered into an asset purchase agreement (as amended, the “Asset Purchase Agreement”) with the Company, pursuant to which, among other things, the Company, on behalf of Walter Energy’s First Lien Lenders, agreed to acquire the Predecessor through a credit bid of $ 1.1 billion and a release of the liens under the 2011 Credit Agreement and the 9.50% Senior Secured Notes due 2019 (“Walter Energy First Lien Obligations”), to assume certain liabilities of the Walter Energy Debtors and to pay cash consideration in accordance with sections 363 and 365 of the U.S. Bankruptcy Code (the “Asset Acquisition”). On January 8, 2016, the Bankruptcy Court approved the Asset Acquisition, which closed on March 31, 2016. In connection with the Asset Acquisition, the Company also conducted rights offerings to Walter Energy’s First Lien Lenders and certain qualified unsecured creditors to purchase newly issued Class B Units of the Company, which diluted the Class A Units on a pro rata basis (the “Rights Offerings”). Proceeds from the Rights Offerings were used to pay certain costs associated with the Asset Acquisition and for general working capital purposes. Special Distribution On March 31, 2017, our board of managers declared a cash distribution payable to holders of our then outstanding Class A Units, Class B Units and Class C Units as of March 27, 2017, resulting in distributions to such holders in the aggregate amount of $ 190.0 million (the “Special Distribution”). The Special Distribution was funded with available cash on hand and was paid to Computershare Trust Company, N.A., as disbursing agent, on March 31, 2017. Corporate Conversion and Initial Public Offering On April 12, 2017, in connection with the Company’s initial public offering (“IPO”), Warrior Met Coal, LLC filed a certificate of conversion, whereby Warrior Met Coal, LLC effected a corporate conversion from a Delaware limited liability company to a Delaware corporation and changed its name to Warrior Met Coal, Inc. In connection with this corporate conversion, the Company filed a certificate of incorporation. Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue up to 140,000,000 shares of common stock $ 0.01 par value per share and 10,000,000 shares of preferred stock $ 0.01 par value per share. All references in the unaudited interim condensed financial statements to the number of shares and per share amounts of common stock have been retroactively recast to reflect the corporate conversion. On April 19, 2017, the Company completed its IPO whereby the selling stockholders named in the Registration Statement on Form S-1 (File No. 333-216499) sold 16,666,667 shares of common stock at a price to the public of $ 19.00 per share. The Company did not receive any proceeds from the sale of common stock in the IPO, and will not receive any proceeds from the exercise of the underwriters’ option to purchase additional shares of common stock, if any. All of the net proceeds from the IPO were received by the selling stockholders. The aggregate net proceeds to the selling stockholders in the IPO were $296.9 million , net of underwriting discounts and commissions of $19.8 million . The Company has paid cumulative offering expenses of $12.1 million on behalf of the selling stockholders. Upon the closing of the IPO, 53,442,532 shares of common stock were outstanding. On April 13, 2017, our common stock began trading on the New York Stock Exchange under the ticker symbol "HCC" and on April 19, 2017, we closed our IPO. Share Based Compensation In connection with the corporate conversion and effectiveness of the registration statement, we converted all awards of restricted Class C Units (“restricted units”) and phantom Class C Units (“phantom units”) issued pursuant to the 2016 Equity Incentive Plan (the “2016 Equity Plan”) into shares of common stock using an approximate 13.9459 -to-one conversion ratio. The vesting and other terms of the restricted units and phantom units generally remain the same. Under the 2016 Equity Plan, awards of options to purchase our Class C Units, excluding “incentive stock options” within the meaning of Code Section 424, restricted units, phantom units, unit appreciation rights and unit bonus awards could be granted. The maximum number of our units that were authorized and reserved for issuance under the 2016 Equity Plan was 93,750 , or 1,307,428 shares upon our corporate conversion, subject to adjustment for certain corporate events or changes in our capital structure. In connection with our IPO, we adopted the 2017 Equity Incentive Plan (the “2017 Equity Plan”). The 2017 Equity Plan became effective upon the consummation of the IPO and no further awards will be issued under the 2016 Equity Plan. Awards previously issued and outstanding under the 2016 Equity Plan will continue to be governed by the 2016 Equity Plan. Under the 2016 Equity Plan, 805,083 shares of common stock were issued to employees and directors. The 805,083 shares of common stock excludes (i) 43,580 shares of our common stock contingently issuable upon settlement of a vested phantom unit award under our 2016 Equity Plan, (ii) 13,157 shares of our common stock issued upon settlement of a phantom share award granted under our 2017 Equity Plan upon the completion of our IPO, which phantom share awards vested immediately upon the closing of our IPO and (iii) 5,924,902 other shares of our common stock reserved for issuance under our 2017 Equity Plan for our employees and directors. Basis of Presentation Prior to the closing of the Asset Acquisition on March 31, 2016, the Company had no operations and nominal assets. The accompanying financial statements have been presented on a condensed consolidated basis for the “Successor” periods subsequent to the Asset Acquisition, which include the three months ended March 31, 2017, and on a condensed combined basis for the “Predecessor” periods prior to the Asset Acquisition, which includes the three months ended March 31, 2016. The financial information of the Company has been separated by a vertical line on the face of the financial statements to identify these different bases of accounting for Predecessor and Successor periods. The accompanying financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three months ended March 31, 2017 (Successor) are not necessarily indicative of the final results that may be expected for the year ended December 31, 2017. These unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2016 included in the final prospectus for the IPO dated April 12, 2017 and filed pursuant to Rule 424(b)(4) with the Securities and Exchange Commission (the “SEC”) on April 14, 2017 (the “IPO Prospectus”), which is part of our registration statement on Form S-1 (File No. 333-216499). Predecessor Presentation The Predecessor’s condensed combined financial statements for the three months ended March 31, 2016, have been “carved-out” from the accounting records of Walter Energy. Historically, the Predecessor did not operate as an independent standalone company. For periods subsequent to filing the Chapter 11 Cases and prior to March 31, 2016, the Predecessor applied the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 852, Reorganizations, in preparing its condensed combined financial statements. ASC 852 requires that the financial statements distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain revenues, expenses, realized gains and losses and provisions for losses that were realized or incurred in the Chapter 11 Cases have been recorded in a reorganization line item on the Condensed Combined Statements of Operations. Preparation of the condensed combined financial statements for the three months ended March 31, 2016, included making certain adjustments necessary to reflect all costs of doing business to present the historical records on a basis as if the Predecessor had been a separate stand alone entity. These adjustments include, for example, allocations of Parent overhead and selling, general and administrative expenses. The historical costs and expenses reflected in the condensed combined financial statements include an allocation for certain corporate functions historically provided by the Parent. Substantially all of the Predecessor’s senior management were employed by the Parent and certain functions critical to the Predecessor’s operations were centralized and managed by the Parent. Historically, the centralized functions have included executive senior management, financial reporting, financial planning and analysis, accounting, shared services, information technology, tax, risk management, treasury, legal, human resources, and strategy and development. The costs of each of these services has been allocated to the Predecessor on the basis of the Predecessor’s relative headcount, revenue and total assets to that of the Parent. These cost allocations were $ 7.8 million for the three months ended March 31, 2016 (Predecessor). All intracompany transactions have been eliminated. The net effect of the settlement of transactions between the Predecessor, the Parent and other affiliates of the Parent, together with cash transfers to and from the Parent’s cash management accounts are reflected in the Condensed Statements of Changes in Stockholders' Equity and Parent Net Investment as net transfers to Parent and in the Condensed Statements of Cash Flows as a financing activity. The allocation methodologies have been described in the notes to the financial statements where appropriate, and management considers the allocations to be reasonable. The financial information included herein may not necessarily reflect the financial position, results of operations and cash flows of the Predecessor in the future or what they would have been had the Predecessor been a separate, standalone entity during the periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Our significant accounting policies are consistent with those disclosed in Note 2 to our audited financial statements included in our IPO Prospectus. Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Balance Sheets that sum to the total of the same such amounts shown in the Condensed Statements of Cash Flows (in thousands): Successor March 31, 2017 December 31, 2016 Cash and cash equivalents $ 13,455 $ 150,045 Restricted cash included in other long-term assets 2,611 2,611 Total cash and cash equivalents and restricted cash included in the Statements of Cash Flows $ 16,066 $ 152,656 Cash and cash equivalents include short-term deposits and highly liquid investments that have original maturities of three months or less when purchased and are stated at cost, which approximates fair value. As of March 31, 2017 (Successor) and December 31, 2016 (Successor), restricted cash included in other long-term assets in the Condensed Balance Sheet represents amounts funded to an escrow account as collateral for coal royalties due under certain underground coal mining lease contracts. Short-Term Investments Instruments with maturities greater than three months, but less than twelve months, are included in short-term investments. The Company purchases United States Treasury bills with maturities ranging from six to twelve months which are classified as held to maturity and are carried at amortized cost, which approximates fair value. Securities classified as held to maturity securities are those securities that management has the intent and ability to hold to maturity. As of March 31, 2017 (Successor) and December 31, 2016 (Successor), the Company’s short-term investments consisted of $17.5 million in Treasury bills with a maturity of six months . These Treasury bills were posted as collateral for the self-insured black lung related claims asserted by or on behalf of former employees of Walter Energy and its subsidiaries, which were assumed in the Asset Acquisition and relate to periods prior to March 31, 2016. New Accounting Pronouncements In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. The guidance is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We adopted the amendments of ASU 2015-16, effective January 1, 2017. We recognized a $3.5 million measurement-period adjustment during the three months ended March 31, 2017 (Successor), which we reflected prospectively (see Note 3). In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. We adopted this standard on January 1, 2017, on a prospective basis, and have elected to recognize forfeitures as they occur. The adoption of this standard had no effect on our Condensed Balance Sheets, Condensed Statements of Operations and Condensed Statements of Cash Flows for the current period. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year. ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and permits early adoption on a limited basis. ASU 2014-09, “Revenue from Contracts with Customers”, requires an entity to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company is currently in the process of evaluating the impact of this new pronouncement on its consolidated results of operations. The Company plans to complete its assessment of the impact of the new standard in 2017 and expects to be compliant by the first quarter of 2018. |
Acquisition of the Predecessor
Acquisition of the Predecessor | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition of the Predecessor | Acquisition of the Predecessor On November 5, 2015, the Walter Energy Debtors entered into the Asset Purchase Agreement with the Company, pursuant to which, among other things, the Company, on behalf of Walter Energy’s First Lien Lenders, agreed to acquire the Predecessor via a credit bid and release of the liens on the Walter Energy First Lien Obligations. On January 8, 2016, the Bankruptcy Court approved the Asset Acquisition, which closed on March 31, 2016. The cash consideration of $ 50.8 million included the funding of escrow accounts to be used to pay certain expenses on behalf of the Walter Energy Debtors, some of which required residual amounts contained in the escrow accounts to be refunded to the Company after a specified time period. The net cash paid for the Asset Acquisition was $ 24.1 million , which was $ 50.8 million of cash paid less cash and cash equivalents acquired of $ 26.7 million . The purchase consideration has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the Asset Acquisition. During the first quarter of 2017, the Company completed the valuation of the assets and liabilities with the assistance of an independent third party and recorded a measurement-period adjustment to the preliminary purchase price allocation. The measurement-period adjustment was due to updated estimates for the acquired mineral interests including estimates for future royalty income, production volumes and timing which resulted in a $3.5 million decrease in fair value allocated to mineral interests as compared to the December 31, 2016 preliminary fair value. This also resulted in a decrease to additional paid in capital. The measurement-period adjustment was recorded during the first quarter of 2017 and had no impact on reported earnings for the three months ended March 31, 2017 (Successor). In determining the fair values of net assets acquired in the Asset Acquisition, the Company considered, among other factors, the analyses of the Predecessor’s historical financial performance and estimates of the future performance of the acquired business, as well as the highest and best use of the acquired assets. Working capital, excluding inventory, and non-current restricted cash were recorded at the Predecessor’s carrying value, which is representative of the fair value on the date of acquisition. Inventory was valued at its net realizable value. Mineral interest was recorded at fair value utilizing the income approach. The income approach utilized the Company’s operating projections as of the valuation date. Under the income approach, fair value was estimated based upon the present value of future cash flows. A number of significant assumptions and estimates were involved in forecasting the future cash flows including sales volumes and prices, costs to produce (including costs for labor, commodity supplies and contractors), transportation costs, capital spending, working capital changes and a risk adjusted, after-tax cost of capital (all of which generally constitute unobservable Level 3 inputs under the fair value hierarchy). Property, plant and equipment, and other assets were recorded at fair values based on the cost and market approaches. The cost approach utilized trending and direct costing techniques to develop replacement costs. The market approach is based on independent secondary market data (which generally constitute Level 2 inputs under the fair value hierarchy). Black lung obligations and asset retirement obligations were recorded at fair value using a combination of market data, operational data and discounted cash flows and were adjusted by a discount rate factor reflecting current market conditions at the time of acquisition. The following tables summarizes the final purchase price allocation, including the applicable measurement-period adjustments made upon finalization during the first quarter of 2017 (in thousands): Final purchase price: Cash paid $ 50,830 Fair value of First Lien Obligations relinquished in exchange for net assets of the Predecessor 598,607 Total purchase price $ 649,437 Final fair values of assets acquired and liabilities assumed: Cash and cash equivalents $ 26,723 Trade and other receivables 14,358 Inventories 46,464 Prepaid expenses and other current assets 30,722 Mineral interests 144,224 Property, plant and equipment 533,441 Other long-term assets 28,865 Total assets 824,797 Accounts payable 10,470 Accrued expenses 12,843 Other current liabilities 24,044 Current debt 2,879 Long-term debt 5,758 Deferred income taxes 1,400 Other long-term liabilities 117,966 Total liabilities 175,360 Total fair value of net assets acquired $ 649,437 Supplemental Unaudited Pro Forma Financial Information The following unaudited pro forma results of operations give effect to the Asset Acquisition as if it had occurred on January 1, 2015. This unaudited pro forma financial information should not be relied upon as necessarily being indicative of the historical results that would have been obtained if the Asset Acquisition had actually occurred on that date, nor the results of operations in the future. The 2016 supplemental unaudited pro forma financial information was adjusted to (i) reflect the impact of certain fair value adjustments, including an adjustment to depreciation and depletion expense as a result of a change in the basis of Property, Plant and Equipment and Mineral Interests, (ii) eliminate historical interest expense related to the notes, loans and other debt that was not assumed by the Company as part of the Asset Acquisition, (iii) eliminate a gain on reorganization items associated with the Chapter 11 Cases and (iv) eliminate the Predecessor's historical other postretirement benefit expense associated with the Predecessor's historical other postretirement benefit obligations for retiree medical and life insurance benefits, which were not assumed by the Company. Predecessor For the three months ended March 31, 2016 (in thousands) As reported Pro forma Revenue $ 71,383 $ 71,383 Net loss $ (61,816 ) $ (31,759 ) |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories, net are summarized as follows (in thousands): Successor March 31, 2017 December 31, 2016 Coal $ 50,499 $ 18,788 Raw materials, parts, supplies and other, net 21,602 20,632 Total inventories, net $ 72,101 $ 39,420 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company calculates the interim income tax provision using actual year to date financial results. The tax effect of unusual or infrequently occurring items, including effects of changes in tax laws or rates, are reported in the interim period in which they occur. The Company records deferred tax assets to the extent these assets will more likely than not be realized. In making such determination, the Company considered all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. Based upon the review of all positive and negative evidence, including its recent history of operating losses, the Company concluded that a full valuation allowance was necessary for net deferred tax assets at March 31, 2017 (Successor) and December 31, 2016 (Successor), exclusive of certain deferred tax liabilities that have an indefinite life. Results of operations of the Predecessor have historically been included in the federal and state income tax returns of the Parent. Accordingly, the income tax provision included in the Predecessor financial statements was calculated using a method consistent with a separate return basis, as if the Predecessor had been a separate taxpayer. Similarly, historical tax attributes (net operating losses, alternative minimum tax credits, etc.) have been allocated to the Predecessor’s business utilizing a reasonable method of allocation. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred income tax assets. As part of the Asset Acquisition, the Company succeeded to certain tax attributes and assumed the tax bases of the acquired assets and assumed liabilities. The tax attributes included net operating losses and alternative minimum tax and general business tax credits. As part of the evaluation of the acquired assets and assumed liabilities as of April 1, 2016, management determined that a valuation allowance was needed for deferred tax assets not expected to provide future tax benefits. If it is later determined that the Company will more likely than not realize all, or a portion, of the deferred tax assets, the Company will adjust the valuation allowance in a future period. Future recognized tax benefits in relation to the valuation allowance will result in a tax benefit in the period recognized. The Company recognized income tax expense of $1.9 million for the three months ended March 31, 2017 (Successor). The Company recognized income tax expense of $18.0 thousand for the three months ended March 31, 2016 (Predecessor). |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt On April 1, 2016, the Company entered into an Asset-Based Revolving Credit Agreement (the “ABL Facility”) with certain lenders and Citibank, N.A. (together with its affiliates, “Citibank”), as administrative agent and collateral agent, with an aggregate lender commitment to make a revolving loan of up to $50.0 million , subject to borrowing base availability. On January 23, 2017, the Company entered into Amendment No. 1 to the ABL Facility to, among other things, (i) increase the aggregate lender commitment to $100.0 million , (ii) reduce the applicable interest rate margins by 100 basis points ("bps"), (iii) permit the corporate conversion and (iv) allow the IPO to be consummated without triggering a change of control. On March 24, 2017, the Company entered into Amendment No. 2 to the ABL Facility to modify certain terms relating to the restricted payment covenant, which provides the Company with improved flexibility to pay dividends, including the Special Distribution. At March 31, 2017 (Successor), the Company had $82.4 million of availability under the ABL Facility. In connection with the Asset Acquisition, the Company assumed a security agreement and promissory note of $5.9 million as of March 31, 2017 (Successor), of which $2.9 million was classified as a current obligation. The amount owed in respect of the promissory note was originally used for the purchase of underground mining equipment and such note is secured by the same mining equipment. The promissory note matures on March 31, 2019 and bears a fixed interest rate of 4.00% per annum. The Company is required to make monthly payments of principal and interest during the term of the promissory note. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share Basic and diluted net income per share was calculated as follows (in thousands, except per share data): Successor For the three months ended March 31, 2017 Numerator: Net income $ 108,308 Denominator: Weighted-average shares used to compute net income per share—basic and diluted 52,681 Net income per share—basic and diluted $ 2.06 As of March 31, 2017 (Successor), there were 805,083 shares of common stock issued to certain directors and employees, for which neither the performance based nor market based vesting conditions were met as of the measurement date. As such, these common shares have been excluded from basic and diluted earnings per share. As of March 31, 2017 (Successor), there were 43,580 shares of our common stock contingently issuable upon the settlement of a vested phantom unit award under our 2016 Equity Plan. The settlement date is the earlier of a change in control as described in our 2016 Equity Plan or five years from the grant date. These awards are vested and as such have been included in the weighted-average shares used to compute basic and diluted net income per share. There were no potentially dilutive shares for the three months ended March 31, 2017 (Successor). On March 31, 2017 (Successor), our board of managers declared a cash distribution of $3.56 per share, totaling $190.0 million , which was paid on March 31, 2017 to holders of our Class A Units, Class B Units and Class C Units of record as of March 27, 2017. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In connection with the Asset Acquisition the Company acquired a 50% interest in Black Warrior Methane (“BWM”) and Black Warrior Transmission (“BWT”), which are accounted for under the proportionate consolidation method and equity method, respectively. The Company has granted the rights to produce and sell methane gas from its coal mines to BWM and BWT. The Company’s net investments in, advances to/from BWT and equity in earnings or loss of BWT are not material to the Company. The Company supplied labor to BWM and incurred costs, including property and liability insurance, to support the joint venture. The Company charged the joint venture for such costs on a monthly basis, which were $0.7 million and $0.3 million for the three months ended March 31, 2017 (Successor) and the three months ended March 31, 2016 (Predecessor), respectively. The Predecessor also received revenue from coal sales to affiliates of the Parent that were not acquired in connection with the Asset Acquisition. The Predecessor recognized revenue from these affiliates of $1.4 million for the three months ended March 31, 2016 (Predecessor). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Matters The Company is subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the construction and operation of its plants, mines and other facilities and with respect to remediating environmental conditions that may exist at its own and other properties. The Company believes that it is in substantial compliance with federal, state and local environmental laws and regulations. The Company accrues for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and can be reasonably estimated. As of March 31, 2017 (Successor) and December 31, 2016 (Successor), there were no accruals for environmental matters other than asset retirement obligations for mine reclamation. Miscellaneous Litigation From time to time, the Company is party to a number of lawsuits arising in the ordinary course of their businesses. The Company records costs relating to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on the Company’s future results of operations cannot be predicted with certainty as any such effect depends on future results of operations and the amount and timing of the resolution of such matters. As of March 31, 2017 (Successor) and December 31, 2016 (Successor), there were no items accrued for miscellaneous litigation. Indemnifications In the ordinary course of business, the Company entered into a contractual arrangement under which the Company has agreed to indemnify a third party to such arrangement from any losses arising from certain events as specified in the particular contracts, which may include, for example, litigation or claims relating to past performance. The Company had accrued $0.3 million as of March 31, 2017 (Successor) and December 31, 2016 (Successor), which is included in other long-term liabilities. The remaining maximum exposure under this arrangement is $0.2 million . Commitments and Contingencies—Other The Company is party to various transportation and throughput agreements with rail and barge transportation providers and the Alabama State Port Authority. These agreements contain annual minimum tonnage guarantees with respect to coal transported from the mine sites to the Port of Mobile, Alabama, unloading of rail cars or barges, and the loading of vessels. If the Company does not meet its minimum throughput obligations, which are based on annual minimum amounts, it is required to pay the transportation providers or the Alabama State Port Authority a contractually specified amount per metric ton for the difference between the actual throughput and the minimum throughput requirement. At March 31, 2017 (Successor), the Company had no liability recorded for minimum throughput requirements. At December 31, 2016 (Successor), the Company had accrued a liability of $2.1 million as a result of not meeting the required minimums, which is included in accrued expenses on the Condensed Balance Sheet. Royalty and Lease Obligations The Company’s leases are primarily for mining equipment and automobiles. At March 31, 2017 (Successor) and December 31, 2016 (Successor), the Company had no future minimum payments due under non-cancellable operating leases. A substantial amount of the coal that the Company mines is produced from mineral reserves leased from third-party land owners. These leases convey mining rights to the Company in exchange for royalties to be paid to the land owner as either a fixed amount per ton or as a percentage of the sales price. Although coal leases have varying renewal terms and conditions, they generally last for the economic life of the reserves. Coal royalty expense was $21.5 million and $3.6 million , for the three months ended March 31, 2017 (Successor) and three months ended March 31, 2016 (Predecessor), respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue up to 140,000,000 shares of common stock $ 0.01 par value per share and 10,000,000 shares of preferred stock $ 0.01 par value per share. As of March 31, 2017, there were 53,442,532 shares of common stock issued and outstanding. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company enters into natural gas swap contracts to hedge the exposure to variability in expected future cash flows associated with the fluctuations in the price of natural gas related to the Company’s forecasted sales. As of March 31, 2017 (Successor) and December 31, 2016 (Successor), the Company had natural gas swap contracts outstanding with notional amounts totaling 7,920 million British thermal units maturing in the fourth quarter of 2017. The Company’s natural gas swap contracts economically hedge certain risk but are not designated as hedges for financial reporting purposes. All changes in the fair value of these derivative instruments are recorded as other revenues in the Condensed Statements of Operations. The Company records all derivative instruments at fair value and had a liability of $0.9 million and $3.8 million related to natural gas swap contracts outstanding as of March 31, 2017 (Successor) and December 31, 2016 (Successor), respectively, included in other current liabilities in the accompanying Condensed Balance Sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table presents information about the Company’s financial liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands): Successor Fair Value Measurements as of March 31, 2017 Using: Level 1 Level 2 Level 3 Total Liabilities: Natural gas swap contracts $ — $ 937 $ — $ 937 Successor Fair Value Measurements as of December 31, 2016 Using: Level 1 Level 2 Level 3 Total Liabilities: Natural gas swap contracts $ — $ 3,784 $ — $ 3,784 The Company has no assets or any other liabilities measured at fair value on a recurring basis as of March 31, 2017 (Successor) or December 31, 2016 (Successor). During the three months ended March 31, 2017 (Successor), there were no transfers between Level 1, Level 2 and Level 3. The Company uses quoted dealer prices for similar contracts in active over-the-counter markets for determining fair value of Level 2 liabilities. There were no changes to the valuation techniques used to measure liability fair values on a recurring basis during the three months ended March 31, 2017 (Successor). The following methods and assumptions were used to estimate the fair value for which the fair value option was not elected: Cash and cash equivalents, short-term investments, restricted cash, receivables and accounts payable— The carrying amounts reported in the Condensed Balance Sheet approximate fair value due to the short-term nature of these assets and liabilities. Debt— All of the Company’s debt included in the Condensed Balance Sheet is carried at cost. The Company's outstanding promissory note approximates fair value. |
Reorganization Items, Net
Reorganization Items, Net | 3 Months Ended |
Mar. 31, 2017 | |
Reorganizations [Abstract] | |
Reorganization Items, Net | Reorganization Items, Net Expenses and income directly associated with the Chapter 11 Cases are reported separately in the Condensed Statements of Operations as reorganization items as required by ASC 852. Reorganization items also include adjustments to reflect the carrying value of liabilities subject to compromise at their estimated allowed claim amounts, as such adjustments are determined. Reorganization items include an allocation of professional fees incurred in relation to the Chapter 11 Cases. For the three months ended March 31, 2016 (Predecessor), the cost of these professional fees was allocated on the basis of the Predecessor’s assets as compared to the total assets of the Parent for each reporting period. The following table presents reorganization items (in thousands): Predecessor For the three months ended March 31, 2016 Professional fees (10,962 ) Rejected executory contracts, leases and other 18,882 Reorganization items, net $ 7,920 Net cash paid for reorganization items for the three months ended March 31, 2016 (Predecessor) totaled approximately $ 12.3 million . |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs For the three months ended March 31, 2016 (Predecessor), the Predecessor recognized restructuring charges of approximately $ 3.4 million due to workforce reductions at the Alabama No. 7 underground mine, the Alabama No. 4 underground mine and corporate headquarters in conjunction with cost containment initiatives implemented in response to the deterioration in the metallurgical coal market. The restructuring charges consist primarily of severance and related benefits costs. The Company does not expect to incur any additional restructuring charges in the Successor periods in connection with the Predecessor restructuring actions. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company identifies a business as an operating segment if: i) it engages in business activities from which it may earn revenues and incur expenses; ii) its operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess its performance; and iii) it has available discrete financial information. The Company has determined that its two underground mining operations are its operating segments. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment. Operating segments are aggregated into a reportable segment if the operating segments have similar quantitative economic characteristics and if the operating segments are similar in the following qualitative characteristics: i) nature of products and services; ii) nature of production processes; iii) type or class of customer for their products and services; iv) methods used to distribute the products or provide services; and v) if applicable, the nature of the regulatory environment. The Company has determined that the two operating segments are similar in both quantitative and qualitative characteristics and thus the two operating segments have been aggregated into one reportable segment. The Company has determined that its natural gas and royalty businesses did not meet the criteria in ASC 280 to be considered as operating or reportable segments. Therefore, the Company has included their results in an “all other” category as a reconciling item to consolidated amounts. The Company does not allocate all of its assets, or its depreciation and depletion expense, selling, general and administrative expenses, other post-retirement benefits, transactions costs, restructuring costs, interest expense, reorganization items, net and income tax expense by segment. The following tables include reconciliations of segment information to consolidated amounts (in thousands): Successor Predecessor For the three months ended March 31, 2017 For the three months ended March 31, 2016 Revenues Mining $ 241,056 $ 65,154 All other 12,908 6,229 Total revenues $ 253,964 $ 71,383 Successor Predecessor For the three months ended March 31, 2017 For the three months ended March 31, 2016 Capital Expenditures Mining $ 10,777 $ 4,588 All other 601 834 Total capital expenditures $ 11,378 $ 5,422 The Company evaluates the performance of its segment based on Segment Adjusted EBITDA, which is defined as net income (loss) adjusted for other revenues, cost of other revenues, depreciation and depletion, selling, general and administrative, other postretirement benefits, and certain transactions or adjustments that the CODM does not consider for the purposes of making decisions to allocate resources among segments or assessing segment performance. Segment Adjusted EBITDA does not represent and should not be considered as an alternative to cost of sales under GAAP and may not be comparable to other similarly titled measures used by other companies. Below is a reconciliation of Segment Adjusted EBITDA to net income (loss), which is its most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands): Successor Predecessor For the three months ended March 31, 2017 For the three months ended March 31, 2016 Segment Adjusted EBITDA $ 134,912 $ (7,143 ) Other revenues 12,908 6,229 Cost of other revenues (8,179 ) (4,698 ) Depreciation and depletion (14,582 ) (28,958 ) Selling, general and administrative (5,170 ) (9,008 ) Other postretirement benefits — (6,160 ) Restructuring charges — (3,418 ) Transaction and other costs (9,036 ) — Interest expense, net (608 ) (16,562 ) Reorganization items, net — 7,920 Income tax expense (1,937 ) (18 ) Net income (loss) $ 108,308 $ (61,816 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 15, 2017, we entered into an Amendment No. 3 to the ABL Facility to, among other things, (i) allow for the posting of cash collateral to secure certain swap and hedging arrangements permitted under the ABL Facility and (ii) allow for the payment of dividends permitted under the ABL Facility within 60 days of declaration thereof. On May 17, 2017, the board of directors of the Company (the "Board") adopted a policy (the "Dividend Policy") of paying a quarterly cash dividend of $0.05 per share. The initial quarterly dividend will be paid on June 13, 2017 to stockholders of record on May 30, 2017. The Dividend Policy also states the following: In addition to the regular quarterly dividend and to the extent that the Company generates excess cash that is beyond the then current requirements of the business, the Board may consider returning all or a portion of such excess cash to stockholders through a special dividend or implementation of a stock repurchase program. Any future dividends or stock repurchases will be at the discretion of the Board and subject to consideration of a number of factors, including business and market conditions, future financial performance and other strategic investment opportunities. The Company will also seek to optimize its capital structure to improve returns to stockholders while allowing flexibility for the Company to pursue very selective strategic growth opportunities that can provide compelling stockholder returns. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying financial statements have been presented on a condensed consolidated basis for the “Successor” periods subsequent to the Asset Acquisition, which include the three months ended March 31, 2017, and on a condensed combined basis for the “Predecessor” periods prior to the Asset Acquisition, which includes the three months ended March 31, 2016. The financial information of the Company has been separated by a vertical line on the face of the financial statements to identify these different bases of accounting for Predecessor and Successor periods. The accompanying financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. |
Cash and Cash Equivalents and Restricted Cash | Cash and cash equivalents include short-term deposits and highly liquid investments that have original maturities of three months or less when purchased and are stated at cost, which approximates fair value. As of March 31, 2017 (Successor) and December 31, 2016 (Successor), restricted cash included in other long-term assets in the Condensed Balance Sheet represents amounts funded to an escrow account as collateral for coal royalties due under certain underground coal mining lease contracts. |
Short-Term Investments | Instruments with maturities greater than three months, but less than twelve months, are included in short-term investments. The Company purchases United States Treasury bills with maturities ranging from six to twelve months which are classified as held to maturity and are carried at amortized cost, which approximates fair value. Securities classified as held to maturity securities are those securities that management has the intent and ability to hold to maturity. |
New Accounting Pronouncements | In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. The guidance is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We adopted the amendments of ASU 2015-16, effective January 1, 2017. We recognized a $3.5 million measurement-period adjustment during the three months ended March 31, 2017 (Successor), which we reflected prospectively (see Note 3). In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. We adopted this standard on January 1, 2017, on a prospective basis, and have elected to recognize forfeitures as they occur. The adoption of this standard had no effect on our Condensed Balance Sheets, Condensed Statements of Operations and Condensed Statements of Cash Flows for the current period. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year. ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and permits early adoption on a limited basis. ASU 2014-09, “Revenue from Contracts with Customers”, requires an entity to recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company is currently in the process of evaluating the impact of this new pronouncement on its consolidated results of operations. The Company plans to complete its assessment of the impact of the new standard in 2017 and expects to be compliant by the first quarter of 2018. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Balance Sheets that sum to the total of the same such amounts shown in the Condensed Statements of Cash Flows (in thousands): Successor March 31, 2017 December 31, 2016 Cash and cash equivalents $ 13,455 $ 150,045 Restricted cash included in other long-term assets 2,611 2,611 Total cash and cash equivalents and restricted cash included in the Statements of Cash Flows $ 16,066 $ 152,656 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Balance Sheets that sum to the total of the same such amounts shown in the Condensed Statements of Cash Flows (in thousands): Successor March 31, 2017 December 31, 2016 Cash and cash equivalents $ 13,455 $ 150,045 Restricted cash included in other long-term assets 2,611 2,611 Total cash and cash equivalents and restricted cash included in the Statements of Cash Flows $ 16,066 $ 152,656 |
Acquisition of the Predecessor
Acquisition of the Predecessor (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following tables summarizes the final purchase price allocation, including the applicable measurement-period adjustments made upon finalization during the first quarter of 2017 (in thousands): Final purchase price: Cash paid $ 50,830 Fair value of First Lien Obligations relinquished in exchange for net assets of the Predecessor 598,607 Total purchase price $ 649,437 Final fair values of assets acquired and liabilities assumed: Cash and cash equivalents $ 26,723 Trade and other receivables 14,358 Inventories 46,464 Prepaid expenses and other current assets 30,722 Mineral interests 144,224 Property, plant and equipment 533,441 Other long-term assets 28,865 Total assets 824,797 Accounts payable 10,470 Accrued expenses 12,843 Other current liabilities 24,044 Current debt 2,879 Long-term debt 5,758 Deferred income taxes 1,400 Other long-term liabilities 117,966 Total liabilities 175,360 Total fair value of net assets acquired $ 649,437 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma results of operations give effect to the Asset Acquisition as if it had occurred on January 1, 2015. This unaudited pro forma financial information should not be relied upon as necessarily being indicative of the historical results that would have been obtained if the Asset Acquisition had actually occurred on that date, nor the results of operations in the future. The 2016 supplemental unaudited pro forma financial information was adjusted to (i) reflect the impact of certain fair value adjustments, including an adjustment to depreciation and depletion expense as a result of a change in the basis of Property, Plant and Equipment and Mineral Interests, (ii) eliminate historical interest expense related to the notes, loans and other debt that was not assumed by the Company as part of the Asset Acquisition, (iii) eliminate a gain on reorganization items associated with the Chapter 11 Cases and (iv) eliminate the Predecessor's historical other postretirement benefit expense associated with the Predecessor's historical other postretirement benefit obligations for retiree medical and life insurance benefits, which were not assumed by the Company. Predecessor For the three months ended March 31, 2016 (in thousands) As reported Pro forma Revenue $ 71,383 $ 71,383 Net loss $ (61,816 ) $ (31,759 ) |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories, net are summarized as follows (in thousands): Successor March 31, 2017 December 31, 2016 Coal $ 50,499 $ 18,788 Raw materials, parts, supplies and other, net 21,602 20,632 Total inventories, net $ 72,101 $ 39,420 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net income per share was calculated as follows (in thousands, except per share data): Successor For the three months ended March 31, 2017 Numerator: Net income $ 108,308 Denominator: Weighted-average shares used to compute net income per share—basic and diluted 52,681 Net income per share—basic and diluted $ 2.06 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | The following table presents information about the Company’s financial liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands): Successor Fair Value Measurements as of March 31, 2017 Using: Level 1 Level 2 Level 3 Total Liabilities: Natural gas swap contracts $ — $ 937 $ — $ 937 Successor Fair Value Measurements as of December 31, 2016 Using: Level 1 Level 2 Level 3 Total Liabilities: Natural gas swap contracts $ — $ 3,784 $ — $ 3,784 |
Reorganization Items, Net (Tabl
Reorganization Items, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reorganizations [Abstract] | |
Schedule of Reorganization Items | The following table presents reorganization items (in thousands): Predecessor For the three months ended March 31, 2016 Professional fees (10,962 ) Rejected executory contracts, leases and other 18,882 Reorganization items, net $ 7,920 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables include reconciliations of segment information to consolidated amounts (in thousands): Successor Predecessor For the three months ended March 31, 2017 For the three months ended March 31, 2016 Revenues Mining $ 241,056 $ 65,154 All other 12,908 6,229 Total revenues $ 253,964 $ 71,383 |
Reconciliation of Capital Expenditures from Segments to Consolidated | Successor Predecessor For the three months ended March 31, 2017 For the three months ended March 31, 2016 Capital Expenditures Mining $ 10,777 $ 4,588 All other 601 834 Total capital expenditures $ 11,378 $ 5,422 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Below is a reconciliation of Segment Adjusted EBITDA to net income (loss), which is its most directly comparable financial measure calculated and presented in accordance with GAAP (in thousands): Successor Predecessor For the three months ended March 31, 2017 For the three months ended March 31, 2016 Segment Adjusted EBITDA $ 134,912 $ (7,143 ) Other revenues 12,908 6,229 Cost of other revenues (8,179 ) (4,698 ) Depreciation and depletion (14,582 ) (28,958 ) Selling, general and administrative (5,170 ) (9,008 ) Other postretirement benefits — (6,160 ) Restructuring charges — (3,418 ) Transaction and other costs (9,036 ) — Interest expense, net (608 ) (16,562 ) Reorganization items, net — 7,920 Income tax expense (1,937 ) (18 ) Net income (loss) $ 108,308 $ (61,816 ) |
Business and Basis of Present32
Business and Basis of Presentation - Description of the Business (Details) - USD ($) $ in Billions | Nov. 05, 2015 | Apr. 01, 2011 |
Predecessor | ||
Business Acquisition [Line Items] | ||
Credit bid to acquire business | $ 1.1 | |
Walter Energy, Inc. | Senior Secured Notes | Senior Secured Notes due 2019 | ||
Business Acquisition [Line Items] | ||
Stated interest rate | 9.50% |
Business and Basis of Present33
Business and Basis of Presentation - Corporate Conversion (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 19, 2017 | Mar. 31, 2017 | Mar. 31, 2017 | Apr. 12, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||
Common stock shares authorized (in shares) | 140,000,000 | 140,000,000 | 140,000,000 | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common stock shares outstanding (in shares) | 53,442,532 | 53,442,532 | 53,442,532 | ||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Common stock shares authorized (in shares) | 140,000,000 | ||||
Common stock par value (in dollars per share) | $ 0.01 | ||||
Preferred stock shares authorized (in shares) | 10,000,000 | ||||
Preferred stock par value (in dollars per share) | $ 0.01 | ||||
Common Stock | Subsequent Event | IPO | |||||
Class of Stock [Line Items] | |||||
Stock issued during period (in shares) | 16,666,667 | ||||
Shares issued (in dollars per share) | $ 19 | ||||
Proceeds from issuance of common stock | $ 296,900 | ||||
Stock issuance costs | 19,800 | ||||
Payments of stock issuance costs | $ 12,100 | ||||
Common stock shares outstanding (in shares) | 53,442,532 | ||||
Successor | |||||
Class of Stock [Line Items] | |||||
Dividends paid | $ 190,000 | $ 190,000 |
Business and Basis of Present34
Business and Basis of Presentation - Share Based Compensation (Details) | Apr. 19, 2017shares | Apr. 12, 2017shares | Apr. 11, 2017shares | Mar. 31, 2017shares |
2016 Equity Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock issues to employees and directors, unvested (in shares) | 805,083 | |||
Subsequent Event | 2016 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum units authorized and reserved for issuance (in shares) | 1,307,428 | 93,750 | ||
Subsequent Event | 2016 Equity Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion ratio | 13.9459 | |||
Subsequent Event | 2016 Equity Plan | Phantom Share Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion ratio | 13.9459 | |||
Subsequent Event | 2017 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares reserved for future issuance (in shares) | 5,924,902 | |||
Subsequent Event | 2017 Equity Plan | Phantom Share Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares issued (in shares) | 13,157 |
Business and Basis of Present35
Business and Basis of Presentation - Predecessor Presentation (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Predecessor | |
Business Acquisition [Line Items] | |
Allocated costs | $ 7.8 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Restricted Cash (Details) - Successor - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 13,455 | $ 150,045 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash included in other long-term assets | 2,611 | 2,611 |
Total cash and cash equivalents and restricted cash included in the Statements of Cash Flows | $ 16,066 | $ 152,656 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Short-term Investments (Details) - Successor - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Short-term investments | $ 17,501 | $ 17,501 |
Treasury bills | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Short-term investments | $ 17,500 | $ 17,500 |
Maturity term for short-term investments | 6 months | 6 months |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - Predecessor $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Business Acquisition [Line Items] | |
Decrease in fair value of mineral interests | $ 3.5 |
Decrease to additional paid in capital | $ 3.5 |
Acquisition of the Predecesso39
Acquisition of the Predecessor - Narrative (Details) - Predecessor - USD ($) $ in Thousands | Nov. 05, 2015 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||
Cash paid | $ 50,830 | |
Net cash paid in acquisition | 24,100 | |
Cash acquired from acquisition | $ 26,700 | |
Decrease in fair value of mineral interests | $ 3,500 | |
Decrease to additional paid in capital | $ 3,500 |
Acquisition of the Predecesso40
Acquisition of the Predecessor - Schedule of Business Acquisition (Details) - Predecessor $ in Thousands | Nov. 05, 2015USD ($) |
Final purchase price: | |
Cash paid | $ 50,830 |
Fair value of First Lien Obligations relinquished in exchange for net assets of the Predecessor | 598,607 |
Total purchase price | 649,437 |
Final fair values of assets acquired and liabilities assumed: | |
Cash and cash equivalents | 26,723 |
Trade and other receivables | 14,358 |
Inventories | 46,464 |
Prepaid expenses and other current assets | 30,722 |
Mineral interests | 144,224 |
Property, plant and equipment | 533,441 |
Other long-term assets | 28,865 |
Total assets | 824,797 |
Accounts payable | 10,470 |
Accrued expenses | 12,843 |
Other current liabilities | 24,044 |
Current debt | 2,879 |
Long-term debt | 5,758 |
Deferred income taxes | 1,400 |
Other long-term liabilities | 117,966 |
Total liabilities | 175,360 |
Total fair value of net assets acquired | $ 649,437 |
Acquisition of the Predecesso41
Acquisition of the Predecessor - Pro Forma Information (Details) - Predecessor $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |
Revenues | $ 71,383 |
Net income (loss) | (61,816) |
Predecessor | |
Business Acquisition [Line Items] | |
Revenue - Pro forma | 71,383 |
Net loss - Pro forma | $ (31,759) |
Inventories, net (Details)
Inventories, net (Details) - Successor - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Coal | $ 50,499 | $ 18,788 |
Raw materials, parts, supplies and other, net | 21,602 | 20,632 |
Total inventories, net | $ 72,101 | $ 39,420 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor | ||
Income Tax Disclosure [Line Items] | ||
Income tax expense | $ 1,937 | |
Predecessor | ||
Income Tax Disclosure [Line Items] | ||
Income tax expense | $ 18 |
Debt - ABL Facility (Details)
Debt - ABL Facility (Details) - Citibank - Revolving Credit Agreement - USD ($) | Jan. 23, 2017 | Mar. 31, 2017 | Apr. 01, 2016 |
Line of Credit Facility [Line Items] | |||
Aggregate lender commitment | $ 100,000,000 | $ 50,000,000 | |
Interest rate margins | 100.00% | ||
Successor | |||
Line of Credit Facility [Line Items] | |||
Remaining borrowing capacity | $ 82,400,000 |
Debt - Promissory Note (Details
Debt - Promissory Note (Details) - Successor - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 2,878 | $ 2,849 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 5,900 | |
Current portion of long-term debt | $ 2,900 | |
Stated interest rate | 4.00% |
Net Income per Share - Schedule
Net Income per Share - Schedule of Earnings per Share (Details) - Successor $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Numerator: | |
Net income | $ | $ 108,308 |
Denominator: | |
Weighted average number of shares outstanding—basic and diluted (in shares) | shares | 52,681 |
Net income per share—basic and diluted (in dollars per share) | $ / shares | $ 2.06 |
Net Income per Share - Narrativ
Net Income per Share - Narrative (Details) $ / shares in Units, $ in Thousands | Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares |
Successor | ||
Class of Stock [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | |
Dividends per share (in dollars per share) | $ / shares | $ 3.56 | $ 3.56 |
Dividends paid | $ | $ 190,000 | $ 190,000 |
Restricted Stock | 2016 Equity Plan | ||
Class of Stock [Line Items] | ||
Common stock issues to employees and directors, unvested (in shares) | 805,083 | 805,083 |
Phantom Share Units (PSUs) | 2016 Equity Plan | ||
Class of Stock [Line Items] | ||
Settlement period | 5 years | |
Phantom Share Units (PSUs) | 2016 Equity Plan | Successor | ||
Class of Stock [Line Items] | ||
Common stock shares issued (in shares) | 43,580 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Nov. 05, 2015 | |
Predecessor | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 1.4 | ||
Black Warrior Methane (BWM) | |||
Related Party Transaction [Line Items] | |||
Proportionate consolidation method, ownership percentage | 50.00% | ||
Black Warrior Transmission (BWT) | |||
Related Party Transaction [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Allocated Expenses to Joint Venture | Successor | Corporate Joint Venture | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 0.7 | ||
Allocated Expenses to Joint Venture | Predecessor | Corporate Joint Venture | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 0.3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Successor | |||
Guarantor Obligations [Line Items] | |||
Throughput obligation | $ 0 | ||
Future minimum operating lease payments | 0 | $ 0 | |
Coal royalty expense | 21,500,000 | ||
Successor | Indemnifications | |||
Guarantor Obligations [Line Items] | |||
Remaining maximum exposure | 200,000 | ||
Successor | Other long-term liabilities | Indemnifications | |||
Guarantor Obligations [Line Items] | |||
Indemnification accrual | $ 300,000 | ||
Successor | Accrued expenses | |||
Guarantor Obligations [Line Items] | |||
Throughput obligation | 2,100,000 | ||
Predecessor | |||
Guarantor Obligations [Line Items] | |||
Coal royalty expense | $ 3,600,000 | ||
Predecessor | Other long-term liabilities | Indemnifications | |||
Guarantor Obligations [Line Items] | |||
Indemnification accrual | $ 300,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | Apr. 12, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Common stock shares authorized (in shares) | 140,000,000 | 140,000,000 | |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 | |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock shares issued (in shares) | 53,442,532 | 53,442,532 | |
Common stock shares outstanding (in shares) | 53,442,532 | 53,442,532 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock shares authorized (in shares) | 140,000,000 | ||
Common stock par value (in dollars per share) | $ 0.01 | ||
Preferred stock shares authorized (in shares) | 10,000,000 | ||
Preferred stock par value (in dollars per share) | $ 0.01 |
Derivative Instruments (Details
Derivative Instruments (Details) - Successor - Not Designated as Hedging Instrument - Commodity Contract - Natural Gas BTU in Millions, $ in Millions | Mar. 31, 2017USD ($)BTU | Dec. 31, 2016USD ($)BTU |
Derivative [Line Items] | ||
Derivative energy measure (in BTUs) | BTU | 7,920 | 7,920 |
Natural gas swap contracts | $ | $ 0.9 | $ 3.8 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments (Details) - Successor - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 0 | $ 0 |
Fair Value, Measurements, Recurring | Commodity Contract | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, noncurrent | 937,000 | 3,784,000 |
Fair Value, Measurements, Recurring | Commodity Contract | Natural Gas | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, noncurrent | 0 | 0 |
Fair Value, Measurements, Recurring | Commodity Contract | Natural Gas | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, noncurrent | 937,000 | 3,784,000 |
Fair Value, Measurements, Recurring | Commodity Contract | Natural Gas | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, noncurrent | $ 0 | $ 0 |
Reorganization Items, Net (Deta
Reorganization Items, Net (Details) - Predecessor $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Schedule of Reorganization Items [Line Items] | |
Professional fees | $ (10,962) |
Rejected executory contracts, leases and other | 18,882 |
Reorganization items, net | 7,920 |
Payments for reorganization items | $ 12,300 |
Restructuring Costs (Details)
Restructuring Costs (Details) - Predecessor $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 3,418 |
Employee Severance | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 3,400 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 1 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 253,964 | |
Successor | Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Revenues | 12,908 | |
Predecessor | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 71,383 | |
Predecessor | Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,229 | |
Mining | Successor | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 241,056 | |
Mining | Predecessor | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 65,154 |
Segment Information - Reconci57
Segment Information - Reconciliation of Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor | ||
Segment Reporting Information [Line Items] | ||
Capital Expenditures | $ 11,378 | |
Successor | Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Capital Expenditures | 601 | |
Predecessor | ||
Segment Reporting Information [Line Items] | ||
Capital Expenditures | $ 5,422 | |
Predecessor | Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Capital Expenditures | 834 | |
Mining | Successor | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Capital Expenditures | $ 10,777 | |
Mining | Predecessor | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Capital Expenditures | $ 4,588 |
Segment Information - Reconci58
Segment Information - Reconciliation of Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Successor | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | $ 134,912 | |
Other revenues | 12,908 | |
Cost of other revenues | (8,179) | |
Depreciation and depletion | (14,582) | |
Selling, general and administrative | (5,170) | |
Other postretirement benefits | 0 | |
Restructuring charges | 0 | |
Transaction and other costs | (9,036) | |
Interest expense, net | (608) | |
Reorganization items, net | 0 | |
Income tax expense | (1,937) | |
Net income (loss) | $ 108,308 | |
Predecessor | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | $ (7,143) | |
Other revenues | 6,229 | |
Cost of other revenues | (4,698) | |
Depreciation and depletion | (28,958) | |
Selling, general and administrative | (9,008) | |
Other postretirement benefits | (6,160) | |
Restructuring charges | (3,418) | |
Transaction and other costs | 0 | |
Interest expense, net | (16,562) | |
Reorganization items, net | 7,920 | |
Income tax expense | (18) | |
Net income (loss) | $ (61,816) |
Subsequent Events (Details)
Subsequent Events (Details) | May 17, 2017$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Quarterly cash dividend (in dollars per share) | $ 0.05 |