Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 09, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HALLADOR ENERGY COMPANY | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Public Float | $ 64 | ||
Entity Common Stock, Shares Outstanding | 29,412,799 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Trading Symbol | HNRG | ||
Amendment Flag | false | ||
Entity Central Index Key | 788,965 | ||
Entity Filer Category | Accelerated Filer | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 9,788 | $ 15,930 |
Certificates of deposit | 7,315 | |
Marketable securities | 1,763 | 1,343 |
Accounts receivable | 22,307 | 16,675 |
Prepaid income taxes | 5,312 | |
Coal inventory | 10,100 | 14,915 |
Parts and supply inventory | 10,091 | 11,255 |
Purchased coal contracts | 8,922 | |
Prepaid expense | 9,647 | 1,185 |
Total current assets | 79,933 | 66,615 |
Coal properties, at cost: | ||
Land and mineral rights | 126,303 | 116,209 |
Buildings and equipment | 339,999 | 347,963 |
Mine development | 126,037 | 131,027 |
Total coal properities, at cost | 592,339 | 595,199 |
Less - accumulated DD&A | (169,579) | (149,964) |
Total coal properties, net | 422,760 | 445,235 |
Other assets (Note 8) | 14,114 | 11,416 |
Total assets | 528,506 | 540,378 |
Current liabilities: | ||
Current portion of bank debt, net | 28,796 | 24,856 |
Accounts payable and accrued liabilities | 16,956 | 26,184 |
Total current liabilities | 45,752 | 51,040 |
Long-term liabilities: | ||
Bank debt, net | 204,944 | 219,502 |
Deferred income taxes | 45,174 | 49,033 |
Asset retirement obligations | 13,260 | 12,231 |
Other | 2,486 | 1,752 |
Total long-term liabilities | 265,864 | 282,518 |
Total liabilities | 311,616 | 333,558 |
Stockholders' equity: | ||
Preferred stock, $.10 par value, 10,000 shares authorized; none issued | ||
Common stock, $.01 par value, 100,000 shares authorized; 29,413 and 29,251 shares outstanding, respectively | 294 | 292 |
Additional paid-in capital | 93,816 | 92,275 |
Retained earnings | 122,052 | 114,341 |
Accumulated other comprehensive income (loss) | 728 | (88) |
Total stockholders' equity | 216,890 | 206,820 |
Total liabilities and stockholders' equity | 528,506 | 540,378 |
Savoy [Member] | ||
Coal properties, at cost: | ||
Investment in subsidiaries | 7,577 | 12,365 |
Sunrise Energy [Member] | ||
Coal properties, at cost: | ||
Investment in subsidiaries | $ 4,122 | $ 4,747 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parentheticals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, issued | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock,par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, outstanding | 29,413,000 | 29,251,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenue: | ||||
Coal sales | $ 278,924 | $ 339,490 | $ 233,902 | |
Equity income | (1,436) | (1,606) | 5,520 | |
Other (Note 8) | 3,962 | 2,236 | 1,749 | |
Revenue | 281,450 | 340,120 | 241,171 | |
Costs and expenses: | ||||
Operating costs and expenses | 192,777 | 237,897 | 169,691 | |
DD&A | 35,565 | 43,942 | 29,262 | |
Coal exploration costs | 1,673 | 2,039 | 2,362 | |
SG&A | 10,520 | 12,617 | 12,039 | |
Interest | [1] | 15,871 | 16,055 | 9,059 |
Acquisition deal costs (Note 2) | 8,057 | |||
Asset impairment (Note 3) | 16,560 | |||
Total costs and expenses | 272,966 | 312,550 | 230,470 | |
Income before income taxes | 8,484 | 27,570 | 10,701 | |
Less income tax(benefits) expense: | ||||
Current | (167) | (14) | 2,205 | |
Deferred | (3,859) | 7,452 | (1,723) | |
Total income tax (benefits) expense | (4,026) | 7,438 | 482 | |
Net income | [2] | $ 12,510 | $ 20,132 | $ 10,219 |
Net income per share: (Note 10) | ||||
Basic and diluted (in Dollars per share) | $ 0.42 | $ 0.68 | $ 0.34 | |
Weighted average shares outstanding: | ||||
Basic and diluted (in Shares) | 29,260 | 29,031 | 28,776 | |
Deferred financing costs | $ 1,000 | |||
Interest expense on net change in estimated fair value of interest rate swaps | $ (637) | $ 159 | 658 | |
Savoy [Member] | ||||
Revenue: | ||||
Equity income | (1,187) | (1,532) | 5,272 | |
Costs and expenses: | ||||
Asset impairment (Note 3) | 2,000 | 2,600 | ||
Sunrise Energy [Member] | ||||
Revenue: | ||||
Equity income | $ (249) | $ (74) | $ 248 | |
[1] | Included in interest expense is the change in the estimated fair value of our interest rate swaps. Such amounts were $(637), $159 and $658 for 2016, 2015 and 2014, respectively. 2014 also includes $1 million for expensing deferred financing costs relating to our old credit agreement. | |||
[2] | *There is no material difference between net income and comprehensive income. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Operating activities: | ||||
Net income | [1] | $ 12,510 | $ 20,132 | $ 10,219 |
Deferred income taxes | (3,859) | 7,452 | (1,723) | |
Equity (income) loss | 1,436 | 1,606 | (5,520) | |
Cash distributions | 3,977 | 8,109 | ||
DD&A | 35,565 | 43,942 | 29,262 | |
Asset impairment charge | 16,560 | |||
Loss on sale of assets | 197 | |||
Change in fair value of interest rate swaps | (637) | 159 | 658 | |
Amortization and write off deferred financing costs | 2,325 | 1,394 | 1,572 | |
Amount of purchased coal contracts | 1,593 | |||
Accretion of ARO | 1,029 | 498 | 534 | |
Share-based compensation | 2,539 | 3,134 | 3,220 | |
Taxes paid on vesting of RSUs | (1,098) | (1,029) | (1,067) | |
Change in current assets and liabilities: | ||||
Accounts receivable | (5,632) | 10,627 | (324) | |
Coal inventory | 4,815 | 4,807 | 6,540 | |
Parts and supply inventory | 1,164 | 3,664 | 1,083 | |
Prepaid income taxes | 5,312 | 448 | (160) | |
Accounts payable and accrued liabilities | (11,193) | (1,686) | 1,409 | |
Other | (5,685) | (492) | 2,054 | |
Cash provided by operating activities | 60,918 | 94,656 | 55,866 | |
Investing activities: | ||||
Capital expenditures | (19,832) | (31,167) | (25,835) | |
Purchase of mining assets | (22,358) | |||
Purchase of certificates of deposit | (7,315) | |||
Acquisition | (311,453) | |||
Other | 189 | 641 | ||
Cash used in investing activities | (49,316) | (30,526) | (337,288) | |
Financing activities: | ||||
Payments on bank debt | (34,855) | (56,875) | (59,655) | |
Bank borrowings | 24,000 | 350,000 | ||
Deferred financing costs | (2,090) | (6,884) | ||
Dividends | (4,799) | (4,794) | (4,798) | |
Cash (used in) provided by financing activities | (17,744) | (61,669) | 278,663 | |
Increase (decrease) in cash and cash equivalents | (6,142) | 2,461 | (2,759) | |
Cash and cash equivalents, beginning of year | 15,930 | 13,469 | 16,228 | |
Cash and cash equivalents, end of year | 9,788 | 15,930 | 13,469 | |
Cash paid for interest | 12,708 | 14,149 | 5,008 | |
Cash paid for income taxes | 2,334 | |||
Cash received for income taxes, net | (5,594) | (956) | ||
Increase in ARO | 6,550 | |||
Capital expenditures included in accounts payable | $ 1,616 | $ 804 | $ 748 | |
[1] | *There is no material difference between net income and comprehensive income. |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | [1] | Total | |
Balance at Dec. 31, 2013 | $ 287 | $ 87,872 | $ 93,582 | $ 379 | $ 182,120 | ||
Balance (in Shares) at Dec. 31, 2013 | 28,751 | ||||||
Stock-based compensation | 3,220 | 3,220 | |||||
Stock-based compensation (in Shares) | 7 | ||||||
Stock issued on vesting of RSUs | $ 2 | 2 | |||||
Stock issued on vesting of RSUs (in Shares) | 310 | ||||||
Taxes paid on vesting of RSUs | (1,067) | (1,067) | |||||
Taxes paid on vesting of RSUs (in Shares) | (106) | ||||||
Dividends | (4,798) | (4,798) | |||||
Net income | 10,219 | 10,219 | [2] | ||||
Other | 193 | (14) | 179 | ||||
Balance at Dec. 31, 2014 | $ 289 | 90,218 | 99,003 | 365 | 189,875 | ||
Balance (in Shares) at Dec. 31, 2014 | 28,962 | ||||||
Stock-based compensation | 3,134 | 3,134 | |||||
Stock-based compensation (in Shares) | 14 | ||||||
Stock issued on vesting of RSUs | $ 3 | 3 | |||||
Stock issued on vesting of RSUs (in Shares) | 411 | ||||||
Taxes paid on vesting of RSUs | (1,029) | (1,029) | |||||
Taxes paid on vesting of RSUs (in Shares) | (136) | ||||||
Dividends | (4,794) | (4,794) | |||||
Net income | 20,132 | 20,132 | [2] | ||||
Other | (48) | (453) | (501) | ||||
Balance at Dec. 31, 2015 | $ 292 | 92,275 | 114,341 | (88) | 206,820 | ||
Balance (in Shares) at Dec. 31, 2015 | 29,251 | ||||||
Stock-based compensation | 2,539 | 2,539 | |||||
Stock issued on vesting of RSUs | $ 2 | 2 | |||||
Stock issued on vesting of RSUs (in Shares) | 272 | ||||||
Taxes paid on vesting of RSUs | (1,098) | (1,098) | |||||
Taxes paid on vesting of RSUs (in Shares) | (126) | ||||||
Dividends | (4,799) | (4,799) | |||||
Net income | 12,510 | 12,510 | [2] | ||||
Other | 100 | 816 | 916 | ||||
Other (in Shares) | 16 | ||||||
Balance at Dec. 31, 2016 | $ 294 | $ 93,816 | $ 122,052 | $ 728 | $ 216,890 | ||
Balance (in Shares) at Dec. 31, 2016 | 29,413 | ||||||
[1] | Accumulated Other Comprehensive Income (loss) | ||||||
[2] | *There is no material difference between net income and comprehensive income. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Basis of Presentation and Consolidation The consolidated financial statements include the accounts of Hallador Energy Company (the Company) and its wholly owned subsidiary Sunrise Coal, LLC (Sunrise) and Sunrise’s wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. We are engaged in the production of steam coal from mines located in western Indiana. We own a 30.6% equity interest in Savoy Energy, L.P., a private oil and gas company that has operations in Michigan and a 50% interest in Sunrise Energy, LLC, a private entity engaged in natural gas operations in the same vicinity as the Carlisle Mine. Reclassification To maintain consistency and comparability, certain amounts in the financial statements have been reclassified to conform to current year presentation. Inventories Coal and supplies inventories are valued at the lower of average cost or market. Coal inventory costs include labor, supplies, equipment costs (including depreciation thereto) and overhead. Advance Royalties Coal leases that require minimum annual or advance payments and are recoverable from future production are generally deferred and charged to expense as the coal is subsequently produced. Advance royalties are included in other assets. Coal Properties Coal properties are recorded at cost. Interest costs applicable to major asset additions are capitalized during the construction period. Expenditures that extend the useful lives or increase the productivity of the assets are capitalized. The cost of maintenance and repairs that do not extend the useful lives or increase the productivity of the assets are expensed as incurred. Other than land and most mining equipment, coal properties are depreciated using the units-of-production method over the estimated recoverable reserves. Most surface and underground mining equipment is depreciated using estimated useful lives ranging from three to twenty-five years. At the beginning of 2016, we changed from the straight-line method to the units-of-production method in computing the depreciation for continuous miners. This change in estimate reduced our DD&A expense for the year ended December 31, 2016 by $2.6 million. Due to idle equipment at Carlisle, we stopped depreciating specific underground equipment resulting in a $4.4 million reduction in depreciation for the year ending December 31, 2016. If facts and circumstances suggest that a long-lived asset may be impaired, the carrying value is reviewed for recoverability. If this review indicates that the carrying value of the asset will not be recoverable through estimated undiscounted future net cash flows related to the asset over its remaining life, then an impairment loss is recognized by reducing the carrying value of the asset to its estimated fair value. Mine Development Costs of developing new coal mines, including asset retirement obligation assets, or significantly expanding the capacity of existing mines, are capitalized and amortized using the units-of-production method over estimated recoverable reserves. Asset Retirement Obligations (ARO) - Reclamation At the time they are incurred, legal obligations associated with the retirement of long-lived assets are reflected at their estimated fair value, with a corresponding charge to mine development. Obligations are typically incurred when we commence development of underground and surface mines, and include reclamation of support facilities, refuse areas and slurry ponds. Obligations are reflected at the present value of their future cash flows. We reflect accretion of the obligations for the period from the date they are incurred through the date they are extinguished. The ARO assets are amortized using the units-of-production method over estimated recoverable (proved and probable) reserves. We are using discount rates ranging from 5.5% to 10% . Federal and state laws require that mines be reclaimed in accordance with specific standards and approved reclamation plans, as outlined in mining permits. Activities include reclamation of pit and support acreage at surface mines, sealing portals at underground mines, and reclamation of refuse areas and slurry ponds. We review our ARO at least annually and reflect revisions for permit changes, changes in our estimated reclamation costs and changes in the estimated timing of such costs. The table below (in thousands) reflects the changes to our ARO: 2016 2015 Balance, beginning of year $ 12,231 $ 12,074 Accretion 1,029 498 Additions Other (341) Balance, end of year $ 13,260 $ 12,231 Statement of Cash Flows Cash equivalents include investments with maturities when purchased of three months or less. Income Taxes Income taxes are provided based on the liability method of accounting. The provision for income taxes is based on pretax financial income. Deferred tax assets and liabilities are recognized for the future expected tax consequences of temporary differences between income tax and financial reporting and principally relate to differences in the tax basis of assets and liabilities and their reported amounts, using enacted tax rates in effect for the year in which differences are expected to reverse. Net Income per Share Basic net income per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. Dilutive potential common shares include restricted stock units and are included in basic net income per share, using the two-class method. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates. The most significant estimates included in the preparation of the financial statements relate to: (i) fair value estimates relating to business combinations, (ii) deferred income tax accounts, (iii) coal reserves, and (iv) estimates used in our impairment analysis. Derivatives Our interest swaps had a net value of $.2 million , including $.3 million classified in other assets and $.5 million in accounts payable and accrued liabilities on our consolidated balance sheet. Notional values of the two interest rate swaps were $125 million and $60 million as of December 31, 2016. Business Combinations We account for business combinations using the purchase method of accounting. The purchase method requires us to determine the fair value of all acquired assets, including identifiable intangible assets and all assumed liabilities. The total cost of acquisitions is allocated to the underlying identifiable net assets, based on their respective estimated fair values. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and the utilization of independent valuation experts, and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates and asset lives, among other items. Revenue Recognition We recognize revenue from coal sales at the time risk of loss passes to the customer at contracted amounts and amounts are deemed collectible. Long-term Contracts As of December 31, 2016, we are committed to supply to our customers a maximum of 2 9 million tons of coal through 2024 of which 1 3 million tons are priced. For 2016, our five largest customers were Vectren, Hoosier, OUC, IPL and NIPSCO. We derived 90% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. For 2015, our four largest customers were IPL, NIPSCO, Vectren, and Hoosier. We derived 82% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. For 2014, our four largest customers were IPL, Vectren, Hoosier, and Duke. We derived 71% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. We are paid every two to four weeks and do not expect any credit losses. Stock-based Compensation Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the applicable vesting period of the stock award (generally two to four years) using the straight-line method. New Accounting Standards Issued and Adopted In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest ("ASU 2015-03"). ASU 2015-03 changes the classification and presentation of debt issuance costs by requiring debt issuance costs to be reported as a direct deduction from the face amount of the debt liability rather than an asset. Amortization of the costs is reported as interest expense. The amendment does not affect the current guidance on the recognition and measurement of debt issuance costs. ASU 2015-03 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is applied retrospectively to each period presented. The adoption of ASU 2015-03 did not have a material impact on our consolida ted financial statements. See N ote 4. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 provides guidance on management's responsibility in evaluating whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter with early adoption permitted. The adoption of ASU 2014-15 did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, flexibility in the accounting for forfeitures and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. The adoption of ASU 2016-09 did not have a material impact on our consolidated financial statements. New Accounting Standards Issued and Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 increases transparency and comparability among organizations by requiring lessees to record right-to-use assets and corresponding lease liabilities on the balance sheet and disclosing key information about lease arrangements. The new guidance will classify leases as either finance or operating (similar to current standard’s “capital” or “operating” classification), with classification affecting the pattern of income recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are currently in the process of accumulating all contractual lease arrangements in order to determine the impact on our financial statements and do not believe we have significant amounts of off- balance sheet leases; accordingly we do not expect the adoption of ASU 2016-02 to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with the lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard will be applied prospectively and is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. We do not expect the adoption of ASU 2015-11 to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require 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. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company’s primary source of revenue is from the sale of coal through both short-term and long-term contracts with utility companies whereby revenue is currently recognized when risk of loss has passed to the customer. Upon adoption of this new standard, the Company believes that the timing of revenue recognition related to our coal sales will remain consistent with our current practice. The Company is currently evaluating other revenue streams to determine the potential impact related to the adoption of the standard, as well as potential disclosures required by the standard. Because we do not anticipate a change in our pattern of revenue recognition, we anticipate that neither method will have a material impact on our consolidated financial statements. Subsequent Events We have evaluated all subsequent events through the date the financial statements were issued. No material recognized or non-recognizable subsequent events were identified. |
Vectren Fuels Acquisition
Vectren Fuels Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Vectren Fuels [Member] | |
Business Acquisition [Line Items] | |
Vectren Fuels Acquisition | (2) Vectren Fuels Acquisition On August 29, 2014, we consummated the acquisition of all the common stock of Vectren Fuels, Inc. (VFI) for $311 million, which was accounted for as a business acquisition requiring measurement of acquired assets and assumed liabilities at their estimated fair value in applying purchase accounting . The estimated fair values are based on market participant assumptions . |
Asset Impairment Review
Asset Impairment Review | 12 Months Ended |
Dec. 31, 2016 | |
Asset Impairment Review [Abstract] | |
Asset Impairment Review | (3) Asset Impairment Review In December 2016, the deterioration of the North end of the Carlisle mine, coupled with lower coal prices led us to determine that the Northern end of the Carlisle mine no longer could be safely and profitably mined. Thus, the decision was made to seal off the North end of the mine. Sealing will be completed in the 1st quarter of 2017. We identified specific assets totaling $16.6 million ( $15.1 million of property and equipment and $1.5 million of advanced royalties) that were written off in 2016. After the impairment, the Carlisle assets had an aggregate carrying value of $118 million at December 31, 2016. We conducted a review of the Carlisle mine assets and determined that no further impairment charge was necessary. If, in future periods, we reduce our estimate of the future net cash flows attributable to the Carlisle Mine, it may result in additional future impairment of such assets and such charges could be significant. None of our other assets are considered impaired. |
Bank Debt
Bank Debt | 12 Months Ended |
Dec. 31, 2016 | |
Bank Debt [Abstract] | |
Bank Debt | (4) Bank Debt To finance the August 2014 Vectren Fuels acquisition we entered into a credit agreement with PNC Bank as administrative agent for a group of several other banks. On March 18, 2016, we executed an amendment to our credit agreement. The primary purpose of the amendment was to increase liquidity and maintain compliance through the maturity of the agreement in August 2019. The revolver was reduced from $250 million to $200 million and the term loan remains the same. Our debt at December 31, 2016 was $239 million (term- $102 million , revolver- $137 million) . In addition, a maximum annual capex of $30 million was included. Bank fees and other costs incurred in connection with the initial facility and the amendment were $9.1 million, which were deferred and are being amortized over five years. The credit facility is collateralized by substantially all of Sunrise’s assets and we are the guarantor. The amended credit facility increased the maximum leverage ratio (total funded debt/ trailing 12 months EBITDA) from 2.75X to those listed below: Fiscal Periods Ended/Ending Ratio September 30, 2016 through March 31, 2017 4.50X June 30, 2017 through March 31, 2018 4.25X June 30, 2018 and September 30, 2018 4.00X December 31, 2018 3.75X March 31, 2019 and June 30, 2019 3.50X The credit agreement matures on August 29, 2019 , but we have the right to prepay the loan at any time without penalty. The amended credit facility also changed the fixed charge coverage ratio to the debt service coverage ratio and requires a minimum of 1.25X through the maturity of the credit facility. The amendment defines the debt service coverage as trailing 12 months EBITDA/annual debt service. As of December 31, 2016, we had additional borrowing capacity of $63 million and total liquidity of $82 million. At December 31, 2016, our maximum leverage ratio was 2.95 and our debt service coverage ratio was 2.11 . Therefore, we were in compliance with those two r atios. The credit agreement also imposes certain other customary restrictions and covenants as well as certain milestones we must meet in order to draw down the full amount. Any non-tax cash distributions from Savoy are required to be applied toward the debt . The interest rate on the facility ranges from LIBOR plus 2.25% to LIBOR plus 4% , depending on our leverage ratio. We entered into swap agreements to fix the LIBOR component of the interest rate to achieve an effective fixed rate of no greater than 5% on the original term loan balance and on $100 million of the revolver. The revolver swaps step down 10% each quarter commencing March 31, 2016 . At December 31, 2016, these two interest rate swaps had an estimated net fair value liability of $.2 million consisting of a long-term asset of $.3 million and a current liability of $.5 million. Such amounts are included in other long-term assets and accounts payable and accrued liabilities, respectively. At December 31, 2016, we were paying LIBOR at .78% plus 4% for a total interest rate of 4.78% . New accounting rules for 2016 required that our debt issuance costs be presented as a direct reduction from the related debt rather than as an asset. Our December 31, 2015, our balance sheet was changed to reflect the new rule. Debt less debt issuance cost at December 31, are presented below (in thousands): 2016 2015 Current debt $ 30,625 $ 26,250 Less debt issuance cost (1,829 ) (1,394 ) Net current portion $ 28,796 $ 24,856 Long-term debt $ 207,992 $ 223,220 Less debt issuance cost (3,048 ) (3,718 ) Net long-term portion $ 204,944 $ 219,502 Future Maturities (in thousands): 2017 $ 30,625 2018 35,000 2019 172,992 Total $ 238,617 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | ( 5) Income Taxes (in thousands) Our income tax is different than the expected amount computed using the applicable federal and state statutory income tax rates. The reasons for and effects of such differences for the years ended December 31 are below: 2016 2015 2014 Expected amount $ 2,966 $ 9,653 $ 3,745 Change in Indiana rate (85 ) (1,407 ) State income taxes, net of federal benefit (387 ) 612 186 Percentage depletion (6,021 ) (2,606 ) (1,996 ) Stock-based compensation (238 ) 343 Captive insurance (418 ) (419 ) (419 ) Other 72 283 30 $ (4,026 ) $ 7,438 $ 482 The deferred tax assets and liabilities resulting from temporary differences between book and tax basis are comprised of the following at December 31: 2016 2015 Long-term deferred tax assets: Stock-based compensation $ 512 $ 458 Investment in Savoy 1,031 827 Net operating loss 14,908 7,583 Alternative minimum tax credit 4,221 4,388 Other 564 18 Total long-term deferred tax assets 21,236 13,274 Long-term deferred tax liabilities: Coal properties (50,439 ) (46,596 ) Oil and gas properties (15,971 ) (15,711 ) Total long-term deferred tax liabilities (66,410 ) (62,307 ) Net deferred tax liability $ (45,174 ) $ (49,033 ) Our effective tax rate (ETR) for 2016 was (48)% compared to 27% for 2015 and 4.5% for 2014. The negative ETR in 2016 is due to the combination of the reduction in book income before taxes because of the asset impairment expense and permanent tax benefits of statutory depletion in excess of tax basis in the mining properties, the captive insurance company and stock based compensation. The low ETR for 2014 was due primarily to the reduction in the Indiana state income tax rate. Our ETR differs from the statutory rate due primarily to statutory depletion in excess of tax basis, which is a permanent difference. We have analyzed our filing positions in all of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions, to determine whether the positions will more likely than not be sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are not recorded as a tax benefit or expense in the current year. We identified our federal tax return and our Indiana state tax return as “major” tax jurisdictions. We believe that our income tax filing positions and deduction will be sustained on audit and do not anticipate any adjustments that will result in a material change to our consolidated financial position. While not material, we record any penalties and interest as SG&A. As of the balance sheet date, the tax year ended December 31, 2012 and all subsequent tax years remain subject to examination by the IRS and state taxing authorities. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Stock Compensation Plans [Abstract] | |
Stock Compensation Plans | (6) Stock Compensation Plans Restricted Stock Units (RSUs) Non-vested grants at January 1, 2014 164,000 Granted – weighted average share price on grant date was $8.29 1,195,500 Vested – weighted average share price on vesting date was $10.09 (310,000 ) Forfeited (7,500 ) Non-vested grants at December 31, 2014 1,042,000 Granted –share price on grant date was $11.52 2,000 Vested – weighted average share price on vesting date was $7.42 (410,500 ) Forfeited (27,000 ) Non-vested grants at December 31, 2015 606,500 Granted – weighted average share price on grant date was $6.84 414,000 Vested – weighted average share price on vesting date was $8.72 (271,500 ) Forfeited (16,000 ) Non-vested grants at December 31, 2016 (1) 733,000 __________________________________________________ (1), 497,500 vest in 2017 and 17,000 vest in 2018, and 219,000 vest in 2019 At December 31, 2016, we had 1,146,516 RSUs available for future issuance. On the vesting dates, the shares that vested had a value of $2.4 million for 2016, $3.0 million for 2015 and $3.1 million for 2014. Under our RSU plan, participants are allowed to relinquish shares to pay for their required statutory income taxes. The outstanding RSUs have a value of $6 .1 million based on the March 8 , 2017 closing stock price of $8.32 . For the years ended December 31, 2016, 2015 and 2014 stock based compensation was $ 2.5 million, $3.1 million, and $3.2 million , respectively. For 2017, based on existing RSUs outstanding, stock-based compensation expense is estimated to be $2.7 million. Stock Bonus Plan Our stock bonus plan was authorized in late 2009 with 250,000 shares. Currently, we have 86,383 shares available for future issuance . |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefits [Abstract] | |
Employee Benefits | (7) Employee Benefits We have no defined benefit pension plans or any post-retirement benefit plans. We offer our employees a 401(k) Plan, where we match 100% of the first 4% that an employee contributes, a bonus plan based on meeting certain production levels and a discretionary Deferred Bonus Plan for certain key employees. We also offer health benefits to all employees and their families. We have 2,393 participants in our employee health plan. The plan does not cover dental, vision, short-term or long-term disability. These coverages are available on a voluntary basis. We bear some of the risk of our employee health plans. Our health claims are capped at $200,000 per person with a maximum annual exposure of $12.5 million not including premiums. EMPLOYEE BENEFIT PLANS (in thousands) 2016 2015 2014 Health benefits, including premiums $ 12,672 $ 13,400 $ 8,100 401(k) matching 1,458 2,267 815 Deferred bonus plan 588 445 406 Production bonus plan (discontinued September 1, 2014) 373 Total $ 14,718 $ 16,112 $ 9,694 Our mine employees are also covered by workers’ compensation and such costs for 2016, 2015 and 2014 were approximately $2.3 million, $4.6 million and $2.8 million, respectively. Workers’ compensation is a no-fault system by which individuals who sustain work related injuries or occupational diseases are compensated. Benefits and coverage are mandated by each state which includes disability ratings, medical claims, rehabilitation services, and death and survivor benefits. Our operations are protected from these perils through insurance policies. Our maximum annual exposure is limited to $1 million per occurrence with a $4 million aggregate deductible. Based on discussions and representations from our insurance carrier, we believe that our reserve for our workers’ compensation benefits is adequate. We have a safety conscious workforce and our worker’s compensation injuries have been minimal. |
Other Long-Term Assets and Othe
Other Long-Term Assets and Other Income | 12 Months Ended |
Dec. 31, 2016 | |
Other Long Term Assets And Other Income [Abstract] | |
Other Long Term Assets And Other Income | (8) Other Long-Term Assets and Other Income 2016 2015 Long-term assets: Advance coal royalties $ 9,296 $ 6,563 Marketable equity securities available for sale, at fair value (restricted)* 2,036 1,763 Other 2,782 3,090 $ 14,114 $ 11,416 * Held by Sunrise Indemnity, Inc., our wholly owned captive insurance company. 2016 2015 2014 Other income: MSHA reimbursements** $ 1,753 $ $ Coal storage fees 600 383 Miscellaneous 2,209 1,636 1,366 $ 3,962 $ 2,236 $ 1,749 ** See “MSHA Reimbursements” in the MD&A section for a discussion of these amounts . |
Self Insurance
Self Insurance | 12 Months Ended |
Dec. 31, 2016 | |
Self Insurance [Abstract] | |
Self Insurance | (9) Self Insurance We self-insure our underground mining equipment. Such equipment is allocated among 10 mining units spread out over 18 miles. The historical cost of such equipment is about $248 million. |
Net Income per Share
Net Income per Share | 12 Months Ended |
Dec. 31, 2016 | |
Net Income per Share [Abstract] | |
Net Income per Share | (10) Net Income per Share We compute net income per share using the two-class method, which is an allocation formula that determines net income per share for common stock and participating securities, which for us are our outstanding RSUs. The following table (thousands, except per share amounts) sets forth the computation of net income per share: 2016 2015 2014 Numerator: Net income $ 12,510 $ 20,132 $ 10,219 Less earnings allocated to RSUs (305 ) (450 ) (375) Net income allocated to common shareholders $ 12,205 $ 19,682 $ 9,844 Denominator: Weighted average number of common shares outstanding 29,260 29,031 28,776 Net income per share: Basic and diluted $ 0.42 $ 0.68 $ 0.34 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (11) Fair Value Measurements We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We consider active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Our marketable securities are Level 1 instruments. Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. We have no Level 2 instruments. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Our Level 3 instruments are comprised of interest rate swaps. The fair values of our swaps were estimated using discounted cash flow calculations based upon forward interest-rate yield curves. Although we utilize third party broker quotes to assess the reasonableness of our prices and valuation, we do not have sufficient corroborating market evidence to support classifying these liabilities as Level 2. The purchase price allocation for the acquisition of VFI was determined using Level 3 measurements. Mobile mining equipment was valued via the market approach. Fixed equipment and mine development was valued via the cost approach using direct and indirect (trending) methods. The mineral reserves and ARO were valued via a dis counted future cash flow model. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments [Abstract] | |
Equity Method Investment | (12) Equity Method Investments We own a 50% interest in Sunrise Energy, LLC, which owns gas reserves and gathering equipment with plans to develop and operate such reserves. Sunrise Energy also plans to develop and explore for oil, gas and coal-bed methane gas reserves on or near our underground coal reserves. We own a 30.6% interest in Savoy Energy, L.P., a private company engaged in the oil and gas business primarily in the state of Michigan. Our 45% ownership was decreased to 40.8% on October 1, 2014 due to the exercise of options by Savoy’s management. On November 3, 2016 Lubar Equity Fund, LLC acquired a 25% interest in Savoy for $9.5 million in cash. Accordingly, our ownership interest was reduced from 40.8% to 30.6% . At closing, Savoy made a cash distribution of $4.4 million of which our share was $1.8 million and per our credit agreement was applied to our bank debt. Mr. Lubar, one of our directors, is affiliated with Lubar Equity Fund, LLC. During 2016, we received two distributions totaling $3.6 million from Savoy. In 2014, we received distributions totaling $ 8.1 million from Savoy. All but $ 3.2 million of such distributions were applied to our bank debt as required under our agreement. Savoy also recorded impairments of $2.0 million and $2.6 million for the years ended December 31, 2016 and 2015, respectively. |
Freelandville and Log Creek Pur
Freelandville and Log Creek Purchases | 12 Months Ended |
Dec. 31, 2016 | |
Freelandville and Log Creek [Member] | |
Business Acquisition [Line Items] | |
Freelandbille and Log Creek Purchases | (13) Freelandville and Log Creek Purchases On March 22, 2016, we completed the purchase of the Freelandville coal reserves, advanced royalties, and coal sales agreement for $18.25 million from Triad Mining LLC. These reserves totaled 14.2 million tons of fee and leased coal and will be mined from our Oaktown 1 portal. This purchase also allows Sunrise access to another 1.6 million tons of our own leased reserves that were previously inaccessible. The purchased coal sales agreement totaled 1,435,000 tons (can be adjusted +/- 6,700 tons monthly). The purchase price allocation for the acquisition was as follows (in thousands): Purchased coal contract $ 6,407 Advanced coal royalties 1,690 Mineral rights and leases 10,153 Total $ 18,250 On December 12, 2016, we completed a second transaction with Triad, the purchase of their Log Creek coal sales agreement for $4.1 million. The purchased coal sales agreement included 557,000 tons to be delivered in 2016 and 2017. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | (14) Quarterly Financial Data (Unaudited) Summarized quarterly financial data is as follows: Three Months Ended March 31 June 30 September 30 December 31 (In thousands, except per share data) 2016: Revenue $ 75,885 $ 68,564 $ 65,767 $ 71,234 Operating income 13,745 10,987 7,946 8,237 Net income (loss) * 6,162 5,853 4,322 (3,827 ) Basic income per common share $ 0.21 $ 0.19 $ 0.14 $ (0.13 ) 2015: Revenue $ 98,001 $ 95,253 $ 82,013 $ 64,853 Operating income 16,459 12,631 10,986 3,549 Net income 7,591 6,853 5,144 544 Basic income per common share $ 0.25 $ 0.23 $ 0.17 $ 0.02 ______________________ * See Note 3 related to asset impairment taken in December 2016. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The consolidated financial statements include the accounts of Hallador Energy Company (the Company) and its wholly owned subsidiary Sunrise Coal, LLC (Sunrise) and Sunrise’s wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. We are engaged in the production of steam coal from mines located in western Indiana. We own a 30.6% equity interest in Savoy Energy, L.P., a private oil and gas company that has operations in Michigan and a 50% interest in Sunrise Energy, LLC, a private entity engaged in natural gas operations in the same vicinity as the Carlisle Mine. |
Reclassification | Reclassification To maintain consistency and comparability, certain amounts in the financial statements have been reclassified to conform to current year presentation. |
Inventories | Inventories Coal and supplies inventories are valued at the lower of average cost or market. Coal inventory costs include labor, supplies, equipment costs (including depreciation thereto) and overhead. |
Advance Royalties | Advance Royalties Coal leases that require minimum annual or advance payments and are recoverable from future production are generally deferred and charged to expense as the coal is subsequently produced. Advance royalties are included in other assets. |
Coal Properties | Coal Properties Coal properties are recorded at cost. Interest costs applicable to major asset additions are capitalized during the construction period. Expenditures that extend the useful lives or increase the productivity of the assets are capitalized. The cost of maintenance and repairs that do not extend the useful lives or increase the productivity of the assets are expensed as incurred. Other than land and most mining equipment, coal properties are depreciated using the units-of-production method over the estimated recoverable reserves. Most surface and underground mining equipment is depreciated using estimated useful lives ranging from three to twenty-five years. At the beginning of 2016, we changed from the straight-line method to the units-of-production method in computing the depreciation for continuous miners. This change in estimate reduced our DD&A expense for the year ended December 31, 2016 by $2.6 million. Due to idle equipment at Carlisle, we stopped depreciating specific underground equipment resulting in a $4.4 million reduction in depreciation for the year ending December 31, 2016. If facts and circumstances suggest that a long-lived asset may be impaired, the carrying value is reviewed for recoverability. If this review indicates that the carrying value of the asset will not be recoverable through estimated undiscounted future net cash flows related to the asset over its remaining life, then an impairment loss is recognized by reducing the carrying value of the asset to its estimated fair value. |
Mine Development | Mine Development Costs of developing new coal mines, including asset retirement obligation assets, or significantly expanding the capacity of existing mines, are capitalized and amortized using the units-of-production method over estimated recoverable reserves. |
Asset Retirement Obligations (ARO) - Reclamation | Asset Retirement Obligations (ARO) - Reclamation At the time they are incurred, legal obligations associated with the retirement of long-lived assets are reflected at their estimated fair value, with a corresponding charge to mine development. Obligations are typically incurred when we commence development of underground and surface mines, and include reclamation of support facilities, refuse areas and slurry ponds. Obligations are reflected at the present value of their future cash flows. We reflect accretion of the obligations for the period from the date they are incurred through the date they are extinguished. The ARO assets are amortized using the units-of-production method over estimated recoverable (proved and probable) reserves. We are using discount rates ranging from 5.5% to 10% . Federal and state laws require that mines be reclaimed in accordance with specific standards and approved reclamation plans, as outlined in mining permits. Activities include reclamation of pit and support acreage at surface mines, sealing portals at underground mines, and reclamation of refuse areas and slurry ponds. We review our ARO at least annually and reflect revisions for permit changes, changes in our estimated reclamation costs and changes in the estimated timing of such costs. The table below (in thousands) reflects the changes to our ARO: 2016 2015 Balance, beginning of year $ 12,231 $ 12,074 Accretion 1,029 498 Additions Other (341) Balance, end of year $ 13,260 $ 12,231 |
Statement of Cash Flows | Statement of Cash Flows Cash equivalents include investments with maturities when purchased of three months or less. |
Income Taxes | Income Taxes Income taxes are provided based on the liability method of accounting. The provision for income taxes is based on pretax financial income. Deferred tax assets and liabilities are recognized for the future expected tax consequences of temporary differences between income tax and financial reporting and principally relate to differences in the tax basis of assets and liabilities and their reported amounts, using enacted tax rates in effect for the year in which differences are expected to reverse. |
Net Income per Share | Net Income per Share Basic net income per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. Dilutive potential common shares include restricted stock units and are included in basic net income per share, using the two-class method. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates. The most significant estimates included in the preparation of the financial statements relate to: (i) fair value estimates relating to business combinations, (ii) deferred income tax accounts, (iii) coal reserves, and (iv) estimates used in our impairment analysis. |
Derivatives | Derivatives Our interest swaps had a net value of $.2 million , including $.3 million classified in other assets and $.5 million in accounts payable and accrued liabilities on our consolidated balance sheet. Notional values of the two interest rate swaps were $125 million and $60 million as of December 31, 2016. |
Business Combinations | Business Combinations We account for business combinations using the purchase method of accounting. The purchase method requires us to determine the fair value of all acquired assets, including identifiable intangible assets and all assumed liabilities. The total cost of acquisitions is allocated to the underlying identifiable net assets, based on their respective estimated fair values. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and the utilization of independent valuation experts, and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates and asset lives, among other items. |
Revenue Recognition | Revenue Recognition We recognize revenue from coal sales at the time risk of loss passes to the customer at contracted amounts and amounts are deemed collectible. |
Long-term Contracts | Long-term Contracts As of December 31, 2016, we are committed to supply to our customers a maximum of 2 9 million tons of coal through 2024 of which 1 3 million tons are priced. For 2016, our five largest customers were Vectren, Hoosier, OUC, IPL and NIPSCO. We derived 90% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. For 2015, our four largest customers were IPL, NIPSCO, Vectren, and Hoosier. We derived 82% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. For 2014, our four largest customers were IPL, Vectren, Hoosier, and Duke. We derived 71% of our total revenue from these customers. Each of these customers represented at least 10% of our total revenue. We are paid every two to four weeks and do not expect any credit losses. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the applicable vesting period of the stock award (generally two to four years) using the straight-line method. |
New Accounting Pronouncements | New Accounting Standards Issued and Adopted In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest ("ASU 2015-03"). ASU 2015-03 changes the classification and presentation of debt issuance costs by requiring debt issuance costs to be reported as a direct deduction from the face amount of the debt liability rather than an asset. Amortization of the costs is reported as interest expense. The amendment does not affect the current guidance on the recognition and measurement of debt issuance costs. ASU 2015-03 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and is applied retrospectively to each period presented. The adoption of ASU 2015-03 did not have a material impact on our consolida ted financial statements. See N ote 4. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 provides guidance on management's responsibility in evaluating whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter with early adoption permitted. The adoption of ASU 2014-15 did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, flexibility in the accounting for forfeitures and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. The adoption of ASU 2016-09 did not have a material impact on our consolidated financial statements. New Accounting Standards Issued and Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 increases transparency and comparability among organizations by requiring lessees to record right-to-use assets and corresponding lease liabilities on the balance sheet and disclosing key information about lease arrangements. The new guidance will classify leases as either finance or operating (similar to current standard’s “capital” or “operating” classification), with classification affecting the pattern of income recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are currently in the process of accumulating all contractual lease arrangements in order to determine the impact on our financial statements and do not believe we have significant amounts of off- balance sheet leases; accordingly we do not expect the adoption of ASU 2016-02 to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with the lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard will be applied prospectively and is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. We do not expect the adoption of ASU 2015-11 to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require 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. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company’s primary source of revenue is from the sale of coal through both short-term and long-term contracts with utility companies whereby revenue is currently recognized when risk of loss has passed to the customer. Upon adoption of this new standard, the Company believes that the timing of revenue recognition related to our coal sales will remain consistent with our current practice. The Company is currently evaluating other revenue streams to determine the potential impact related to the adoption of the standard, as well as potential disclosures required by the standard. Because we do not anticipate a change in our pattern of revenue recognition, we anticipate that neither method will have a material impact on our consolidated financial statements. |
Subsequent Events | Subsequent Events We have evaluated all subsequent events through the date the financial statements were issued. No material recognized or non-recognizable subsequent events were identified. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Asset Retirement Obligations | The table below (in thousands) reflects the changes to our ARO: 2016 2015 Balance, beginning of year $ 12,231 $ 12,074 Accretion 1,029 498 Additions Other (341) Balance, end of year $ 13,260 $ 12,231 |
Bank Debt (Tables)
Bank Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Bank Debt [Abstract] | |
Amended Credit Facility Maximum Leverage Ratio | The amended credit facility increased the maximum leverage ratio (total funded debt/ trailing 12 months EBITDA) from 2.75X to those listed below: Fiscal Periods Ended/Ending Ratio September 30, 2016 through March 31, 2017 4.50X June 30, 2017 through March 31, 2018 4.25X June 30, 2018 and September 30, 2018 4.00X December 31, 2018 3.75X March 31, 2019 and June 30, 2019 3.50X |
Schedule of Debt | Debt less debt issuance cost at December 31, are presented below (in thousands): 2016 2015 Current debt $ 30,625 $ 26,250 Less debt issuance cost (1,829 ) (1,394 ) Net current portion $ 28,796 $ 24,856 Long-term debt $ 207,992 $ 223,220 Less debt issuance cost (3,048 ) (3,718 ) Net long-term portion $ 204,944 $ 219,502 |
Schedule of Future Maturities | Future Maturities (in thousands): 2017 $ 30,625 2018 35,000 2019 172,992 Total $ 238,617 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Expected Income Tax | Our income tax is different than the expected amount computed using the applicable federal and state statutory income tax rates. The reasons for and effects of such differences for the years ended December 31 are below: 2016 2015 2014 Expected amount $ 2,966 $ 9,653 $ 3,745 Change in Indiana rate (85 ) (1,407 ) State income taxes, net of federal benefit (387 ) 612 186 Percentage depletion (6,021 ) (2,606 ) (1,996 ) Stock-based compensation (238 ) 343 Captive insurance (418 ) (419 ) (419 ) Other 72 283 30 $ (4,026 ) $ 7,438 $ 482 |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities resulting from temporary differences between book and tax basis are comprised of the following at December 31: 2016 2015 Long-term deferred tax assets: Stock-based compensation $ 512 $ 458 Investment in Savoy 1,031 827 Net operating loss 14,908 7,583 Alternative minimum tax credit 4,221 4,388 Other 564 18 Total long-term deferred tax assets 21,236 13,274 Long-term deferred tax liabilities: Coal properties (50,439 ) (46,596 ) Oil and gas properties (15,971 ) (15,711 ) Total long-term deferred tax liabilities (66,410 ) (62,307 ) Net deferred tax liability $ (45,174 ) $ (49,033 ) |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Compensation Plans [Abstract] | |
Schedule of Restricted Stock Units | Restricted Stock Units (RSUs) Non-vested grants at January 1, 2014 164,000 Granted – weighted average share price on grant date was $8.29 1,195,500 Vested – weighted average share price on vesting date was $10.09 (310,000 ) Forfeited (7,500 ) Non-vested grants at December 31, 2014 1,042,000 Granted –share price on grant date was $11.52 2,000 Vested – weighted average share price on vesting date was $7.42 (410,500 ) Forfeited (27,000 ) Non-vested grants at December 31, 2015 606,500 Granted – weighted average share price on grant date was $6.84 414,000 Vested – weighted average share price on vesting date was $8.72 (271,500 ) Forfeited (16,000 ) Non-vested grants at December 31, 2016 (1) 733,000 __________________________________________________ (1), 497,500 vest in 2017 and 17,000 vest in 2018, and 219,000 vest in 2019 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS (in thousands) 2016 2015 2014 Health benefits, including premiums $ 12,672 $ 13,400 $ 8,100 401(k) matching 1,458 2,267 815 Deferred bonus plan 588 445 406 Production bonus plan (discontinued September 1, 2014) 373 Total $ 14,718 $ 16,112 $ 9,694 |
Other Long-Term Assets and Ot27
Other Long-Term Assets and Other Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Long Term Assets And Other Income [Abstract] | |
Schedule of Long-Term Assets | 2016 2015 Long-term assets: Advance coal royalties $ 9,296 $ 6,563 Marketable equity securities available for sale, at fair value (restricted)* 2,036 1,763 Other 2,782 3,090 $ 14,114 $ 11,416 * Held by Sunrise Indemnity, Inc., our wholly owned captive insurance company. |
Schedule of Other Income | 2016 2015 2014 Other income: MSHA reimbursements** $ 1,753 $ $ Coal storage fees 600 383 Miscellaneous 2,209 1,636 1,366 $ 3,962 $ 2,236 $ 1,749 **See “MSHA Reimbursements” in the MD&A section for a discussion of these amounts |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Income per Share [Abstract] | |
Computation of Earnings per Share | The following table (thousands, except per share amounts) sets forth the computation of net income per share: 2016 2015 2014 Numerator: Net income $ 12,510 $ 20,132 $ 10,219 Less earnings allocated to RSUs (305 ) (450 ) (375) Net income allocated to common shareholders $ 12,205 $ 19,682 $ 9,844 Denominator: Weighted average number of common shares outstanding 29,260 29,031 28,776 Net income per share: Basic and diluted $ 0.42 $ 0.68 $ 0.34 |
Freelandville and Log Creek P29
Freelandville and Log Creek Purchases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired | The purchase price allocation for the acquisition was as follows (in thousands): Purchased coal contract $ 6,407 Advanced coal royalties 1,690 Mineral rights and leases 10,153 Total $ 18,250 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Financial Data | Summarized quarterly financial data is as follows: Three Months Ended March 31 June 30 September 30 December 31 (In thousands, except per share data) 2016: Revenue $ 75,885 $ 68,564 $ 65,767 $ 71,234 Operating income 13,745 10,987 7,946 8,237 Net income (loss) * 6,162 5,853 4,322 (3,827 ) Basic income per common share $ 0.21 $ 0.19 $ 0.14 $ (0.13 ) 2015: Revenue $ 98,001 $ 95,253 $ 82,013 $ 64,853 Operating income 16,459 12,631 10,986 3,549 Net income 7,591 6,853 5,144 544 Basic income per common share $ 0.25 $ 0.23 $ 0.17 $ 0.02 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands, T in Millions | 12 Months Ended | ||||||
Dec. 31, 2016USD ($)agreementT | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 03, 2016 | Nov. 02, 2016 | Oct. 01, 2014 | Sep. 30, 2014 | |
Revenue, Major Customer [Line Items] | |||||||
DD&A | $ 35,565 | $ 43,942 | $ 29,262 | ||||
Interest swaps, net | (200) | ||||||
Fair value of long term asset | 300 | ||||||
Fair value of current liability | $ 500 | ||||||
Number of interest rate swaps | agreement | 2 | ||||||
Interest Rate Swap [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Interest swaps, net | $ (200) | ||||||
Interest Rate Swap One [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Notional value of interest rate swap | 125,000 | ||||||
Interest Rate Swap Two [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Notional value of interest rate swap | 60,000 | ||||||
Change from Straight Line Method to Units of Production Method [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Reduction to depreciation, depletion, and amortization | $ 2,600 | ||||||
Sales Revenue, Goods, Net [Member] | Five Customers [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Percentage of total revenue from largest customers | 90.00% | ||||||
Sales Revenue, Goods, Net [Member] | Four Customers [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Percentage of total revenue from largest customers | 82.00% | 71.00% | |||||
Coal Supply Commitment [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Coal supply commitment | T | 29 | ||||||
Year that supply commitments end | 2,024 | ||||||
Priced coal supply commitment | T | 13 | ||||||
Minimum [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Discount rate | 5.50% | ||||||
Estimated useful lives | P3Y | ||||||
Maximum [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Discount rate | 10.00% | ||||||
Estimated useful lives | P25Y | ||||||
Savoy [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Equity method investment ownership percentage | 30.60% | 30.60% | 40.80% | 40.80% | 45.00% | ||
Sunrise Energy [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Equity method investment ownership percentage | 50.00% | ||||||
Carlisle Assets [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Reduction to depreciation, depletion, and amortization | $ 4,400 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Changes to ARO) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |||
Balance beginning of year | $ 12,231 | $ 12,074 | |
Accretion | 1,029 | 498 | $ 534 |
Additions | |||
Other | (341) | ||
Balance end of year | $ 13,260 | $ 12,231 | $ 12,074 |
Vectren Fuels Acquisition (Narr
Vectren Fuels Acquisition (Narrative) (Details) - USD ($) $ in Thousands | Aug. 29, 2014 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||
Business acquisition purchase price | $ 311,453 | |
Vectren Fuels [Member] | ||
Business Acquisition [Line Items] | ||
Business acquisition purchase price | $ 311,000 |
Asset Impairment Review (Narrat
Asset Impairment Review (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Impairment Effects on Earnings Per Share [Line Items] | |
Asset impairment charge | $ 16,560 |
Property, Plant and Equipment [Member] | |
Impairment Effects on Earnings Per Share [Line Items] | |
Asset impairment charge | 15,100 |
Carlisle Assets [Member] | |
Impairment Effects on Earnings Per Share [Line Items] | |
Mine carring value | 118,000 |
Asset impairment charge | $ 1,500 |
Bank Debt (Narrative) (Details)
Bank Debt (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)agreement | Mar. 18, 2016USD ($) | Mar. 17, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Credit agreement, amount outstanding | $ 239 | ||
Borrowing capacity | 63 | ||
Maximum annual capex | 30 | ||
Total laquidity | $ 82 | ||
Fixed charge coverage ratio | 211.00% | ||
Leverage ratio | 295.00% | ||
Number of interest rate swaps | agreement | 2 | ||
Fair value (liability) of interest rate swaps | $ (0.2) | ||
Fair value of long term asset | 0.3 | ||
Fair value of current liability | 0.5 | ||
PNC Bank [Member] | |||
Debt Instrument [Line Items] | |||
Closing costs of debt | $ 9.1 | ||
Loan initiation amortization period | 5 years | ||
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Intererst rate effective percentage | 4.78% | ||
Debt maturity date | Aug. 29, 2019 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed charge coverage ratio | 125.00% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 275.00% | ||
Maximum [Member] | June 30, 2018 and September 30, 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 400.00% | ||
Maximum [Member] | June 30, 2017 through March 31, 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 425.00% | ||
Maximum [Member] | September 30, 2016 through March 31, 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 450.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt, interest rate spread on variable rate | 4.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt, interest rate spread on variable rate | 2.25% | ||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt, interest rate spread on variable rate | 4.00% | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit agreement, amount outstanding | $ 137 | ||
Revolving Credit Facility [Member] | PNC Bank [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 200 | $ 250 | |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Credit agreement, amount outstanding | $ 102 | ||
Sunrise Coal [Member] | PNC Bank [Member] | |||
Debt Instrument [Line Items] | |||
Percentage decrease in amount of debt with maximum interest rate per quarter after commencement date | 10.00% | ||
Date that the percentage of debt with a maximum interest rate begins to decrease quarterly | Mar. 31, 2016 | ||
Sunrise Coal [Member] | Maximum [Member] | PNC Bank [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate maximum | 5.00% | ||
Sunrise Coal [Member] | Revolving Credit Facility [Member] | PNC Bank [Member] | |||
Debt Instrument [Line Items] | |||
Amount of debt with maximum interest rate | $ 100 |
Bank Debt (Amended Credit Facil
Bank Debt (Amended Credit Facility Maximum Leverage Ratio) (Details) | Dec. 31, 2016 | Mar. 17, 2016 |
Line of Credit Facility [Line Items] | ||
Leverage Ratio | 295.00% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio | 275.00% | |
Maximum [Member] | September 30, 2016 through March 31, 2017 [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio | 450.00% | |
Maximum [Member] | June 30, 2017 through March 31, 2018 [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio | 425.00% | |
Maximum [Member] | June 30, 2018 and September 30, 2018 [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio | 400.00% | |
Maximum [Member] | December 31, 2018 [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio | 375.00% | |
Maximum [Member] | March 31, 2019 and June 30, 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio | 350.00% |
Bank Debt (Schedule of Debt) (D
Bank Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Bank Debt [Abstract] | ||
Current debt | $ 30,625 | $ 26,250 |
Less debt issuance cost, current | (1,829) | (1,394) |
Net current portion | 28,796 | 24,856 |
Long-term debt | 207,992 | 223,220 |
Less debt issuance cost, long-term | (3,048) | (3,718) |
Net long-term portion | $ 204,944 | $ 219,502 |
Bank Debt (Schedule of Future M
Bank Debt (Schedule of Future Maturities) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Bank Debt [Abstract] | |
2,017 | $ 30,625 |
2,018 | 35,000 |
2,019 | 172,992 |
Total | $ 238,617 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Effective tax rate | (48.00%) | 27.00% | 4.50% |
Income Taxes (Expected Income T
Income Taxes (Expected Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Expected amount | $ 2,966 | $ 9,653 | $ 3,745 |
Change in Indiana rate | (85) | (1,407) | |
State income taxes, net of federal benefit | (387) | 612 | 186 |
Percentage depletion | (6,021) | (2,606) | (1,996) |
Stock-based compensation | (238) | 343 | |
Captive insurance | (418) | (419) | (419) |
Other | 72 | 283 | 30 |
Total tax expected | $ (4,026) | $ 7,438 | $ 482 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Abstract] | ||
Stock-based compensation | $ 512 | $ 458 |
Investment | 1,031 | 827 |
Net operating loss | 14,908 | 7,583 |
Alternative minimum tax credit | 4,221 | 4,388 |
Other | 564 | 18 |
Total long-term deferred tax assets | 21,236 | 13,274 |
Coal properties | (50,439) | (46,596) |
Oil and gas properties | (15,971) | (15,711) |
Total long-term deferred tax liabilities | (66,410) | (62,307) |
Net deferred tax liability | $ (45,174) | $ (49,033) |
Stock Compensation Plans (Narra
Stock Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units expected to vest or lapse within twelve months | 219,000 | |||
Restricted stock units expected to vest or lapse in year two | 497,500 | |||
Restricted stock units expected to vest or lapse in year three | 17,000 | |||
Share-based compensation | $ 2,539 | $ 3,134 | $ 3,220 | |
Stock bonus plan shares authorized | 250,000 | |||
Shares avaibile in stock bonus plan | 86,383 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU available for future issuance | 1,146,516 | |||
Units outstanding value | $ 6,100 | |||
Share price (in dollars per share) | $ 8.32 | |||
Value of units vested in the period | $ 2,400 | $ 3,000 | $ 3,100 | |
Expected share based compensation expense | $ 2,700 |
Stock Compensation Plans (Sched
Stock Compensation Plans (Schedule of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-vested grants, beginning balance | 606,500 | 1,042,000 | 164,000 | |
Granted | 414,000 | 2,000 | 1,195,500 | |
Vested | (271,500) | (410,500) | (310,000) | |
Forfeited | (16,000) | (27,000) | (7,500) | |
Non-vested grants, ending balance | 733,000 | [1] | 606,500 | 1,042,000 |
Weighted average share price, granted | $ 6.84 | $ 11.52 | $ 8.29 | |
Weighted average share price, vested | 8.72 | $ 7.42 | $ 10.09 | |
Stock price on grant date | $ 8.32 | |||
[1] | 497,500 vest in 2017 and 17,000 vest in 2018, and 219,000 vest in 2019 |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)employee | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Employee Benefits [Abstract] | |||
Employer matching contribution, percent of employees' pay | 100.00% | ||
Maximum annual contribution per employee, percent | 4.00% | ||
Participants in employee health plan | employee | 2,393 | ||
Health care cap per person | $ 200,000 | ||
Insured capped maximum exposure health care | 12,500,000 | ||
Workers' compensation liability | 2,300,000 | $ 4,600,000 | $ 2,800,000 |
Insured maximum exposure per employee | 1,000,000 | ||
Aggragate insurance deductable for employees | $ 4,000,000 |
Employee Benefits (Employee Ben
Employee Benefits (Employee Benefit Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit costs | $ 14,718 | $ 16,112 | $ 9,694 |
401(k) Matching [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
401(k) matching | 1,458 | 2,267 | 815 |
Deferred Bonus Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Bonus plan | 588 | 445 | 406 |
Production Bonus Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Bonus plan | 373 | ||
Health Benefits, Including Premiums [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health benefits, including premiums | $ 12,672 | $ 13,400 | $ 8,100 |
Other Long-Term Assets and Ot46
Other Long-Term Assets and Other Income (Schedule of Other Long-Term Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Long-term assets: | |||
Advance coal royalties | $ 9,296 | $ 6,563 | |
Marketable equity securities available for sale, at fair value (restricted) | [1] | 2,036 | 1,763 |
Other | 2,782 | 3,090 | |
Other noncurrent assets total | $ 14,114 | $ 11,416 | |
[1] | Held by Sunrise Indemnity, Inc., our wholly owned captive insurance company. |
Other Long-Term Assets and Ot47
Other Long-Term Assets and Other Income (Schedule of Other Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other income: | ||||
MSHA reimbursements | [1] | $ 1,753 | ||
Coal storage fees | $ 600 | $ 383 | ||
Miscellaneous | 2,209 | 1,636 | 1,366 | |
Other income | $ 3,962 | $ 2,236 | $ 1,749 | |
[1] | See “MSHA Reimbursements” in the MD&A section for a discussion of these amounts. |
Self Insurance (Details)
Self Insurance (Details) $ in Millions | Dec. 31, 2016itemmi | Aug. 31, 2010USD ($) |
Property, Plant and Equipment [Line Items] | ||
Area of self-insured mining units | mi | 18 | |
Mining equipment at historical cost | $ | $ 248 | |
High Efficiency Units [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Number of mining units with self-insured equipment | item | 10 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Net Income per Share [Abstract] | ||||||||||||||
Net income | $ (3,827) | $ 4,322 | $ 5,853 | $ 6,162 | $ 544 | $ 5,144 | $ 6,853 | $ 7,591 | $ 12,510 | [1] | $ 20,132 | [1] | $ 10,219 | [1] |
Less: earnings allocated to RSUs | (305) | (450) | (375) | |||||||||||
Net income (loss) available to common shareholders | $ 12,205 | $ 19,682 | $ 9,844 | |||||||||||
Weighted average number of common shares outstanding | 29,260 | 29,031 | 28,776 | |||||||||||
Basic and diluted | $ 0.42 | $ 0.68 | $ 0.34 | |||||||||||
[1] | *There is no material difference between net income and comprehensive income. |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) - USD ($) $ in Thousands | Nov. 03, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 02, 2016 | Oct. 01, 2014 | Sep. 30, 2014 |
Schedule of Equity Method Investments [Line Items] | |||||||
Cash distributions | $ 1,800 | $ 3,977 | $ 8,109 | ||||
Asset impairment charge | $ 16,560 | ||||||
Savoy [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment ownership percentage | 30.60% | 30.60% | 40.80% | 40.80% | 45.00% | ||
Cash distributions paid | 3,200 | ||||||
Cash distributions | $ 3,600 | $ 8,100 | |||||
Sunrise Energy [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment ownership percentage | 50.00% | ||||||
Savoy [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Cash recieved by equity investment for sale of equity | $ 9,500 | ||||||
Cash distributions | $ 4,400 | ||||||
Asset impairment charge | $ 2,000 | $ 2,600 | |||||
Lubar Equity Fund, LLC [Member] | Savoy [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment ownership percentage | 25.00% |
Freelandville and Log Creek P51
Freelandville and Log Creek Purchases (Narrative) (Details) $ in Thousands | Dec. 12, 2016USD ($) | Dec. 31, 2016T | Dec. 31, 2014USD ($) | Mar. 22, 2014USD ($) |
Business Acquisition [Line Items] | ||||
Business acquisition purchase price | $ | $ 311,453 | |||
Freelandville Purchase [Member] | ||||
Business Acquisition [Line Items] | ||||
Coal reserves acquired, tons | 14,200,000 | |||
Purchase price | $ | $ 18,250 | |||
Freelandville Purchase [Member] | Coal Supply Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Coal reserves acquired, tons | 1,435,000 | |||
Freelandville Purchase [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Coal sales agreement, monthly amount of allowable adjustment up or down | 6,700 | |||
Log Creek [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition purchase price | $ | $ 4,100 | |||
Log Creek [Member] | Coal Supply Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Coal reserves acquired, tons | 557,000 | |||
Sunrise Energy [Member] | Freelandville Purchase [Member] | ||||
Business Acquisition [Line Items] | ||||
Coal reserves acquired, tons | 1,600,000 |
Freelandville and Log Creek P52
Freelandville and Log Creek Purchases (Purchase Price Allocation) (Details) - Freelandville Purchase [Member] $ in Thousands | Mar. 22, 2014USD ($) |
Assets received: | |
Purchased coal contract | $ 6,407 |
Advance coal royalties | 1,690 |
Mineral rights and leases | 10,153 |
Total assets received | $ 18,250 |
Quarterly Financial Data (Summa
Quarterly Financial Data (Summary of Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Revenue | $ 71,234 | $ 65,767 | $ 68,564 | $ 75,885 | $ 64,853 | $ 82,013 | $ 95,253 | $ 98,001 | $ 281,450 | $ 340,120 | $ 241,171 | |||
Operating income | 8,237 | 7,946 | 10,987 | 13,745 | 3,549 | 10,986 | 12,631 | 16,459 | ||||||
Net income (loss) | $ (3,827) | $ 4,322 | $ 5,853 | $ 6,162 | $ 544 | $ 5,144 | $ 6,853 | $ 7,591 | $ 12,510 | [1] | $ 20,132 | [1] | 10,219 | [1] |
Basic income per common share | $ (0.13) | $ 0.14 | $ 0.19 | $ 0.21 | $ 0.02 | $ 0.17 | $ 0.23 | $ 0.25 | ||||||
Acquisition deal costs | $ 8,057 | |||||||||||||
[1] | *There is no material difference between net income and comprehensive income. |