Foresight Energy LP Reports Second Quarter 20181 Results ST. LOUIS
Second Quarter 2018 Highlights:
-
Coal sales of nearly $270.0 million, an increase of 32% compared to
the second quarter 2017, on higher sales volumes of 5.9 million tons
and higher sales realization per ton sold.
-
Adjusted EBITDA of $104.1 million.
-
Cash flows from operations of $30.6 million.
-
Net loss attributable to limited partner units of $29.2 million, or
($0.18) per common unit and ($0.23) per subordinated unit, which
includes a $110.7 million non-cash impairment charge and a $69.1
million non-cash contract benefit related to the previously announced
closure of Hillsboro operations.
-
Declared a $0.0565 per unit distribution from retained excess cash
flow generated in 2017, to be paid on August 31, 2018 to unitholders
of record as of August 21, 2018.
Foresight Energy LP (“Foresight” or the “Partnership”) (NYSE: FELP)
today reported financial and operating results for the second quarter
ended June 30, 2018. Foresight generated coal sales revenues of nearly
$270.0 million on sales volumes of 5.9 million tons resulting in a net
loss attributable to limited partner units of $29.2 million, Adjusted
EBITDA of $104.1 million, and cash flows from operations of $30.6
million. Net loss attributable to limited partner units reflects the
receipt of $44.1 million of insurance proceeds related to the combustion
event at the Partnership’s Hillsboro operation and includes a $110.7
million non-cash impairment charge and a $69.1 million non-cash contract
benefit related to the previously announced closure of the Partnership’s
Hillsboro operation.
“The second quarter was another successful period for Foresight, as we
were able to take advantage of a strong export market to realize
significant year-over-year improvements in our sales volumes,” said Mr.
Robert D. Moore, Chairman, President and Chief Executive Officer.
“Foresight remains well-positioned to continue capitalizing on the
strong export market for our product. Furthermore, with all of our
calendar year 2018 longwall moves completed, we expect to continue to
improve on our industry-leading cost structure over the remainder of the
year.”
Foresight also announced that due to the Partnership’s operating
performance during the second quarter, the Board of Directors of its
General Partner approved a quarterly cash distribution of $0.0565 per
unit from retained excess cash flow. The distribution is payable on
August 31, 2018 for unitholders of record on August 21, 2018.
Second Quarter Consolidated Financial Results
Coal sales totaled nearly $270.0 million for the second quarter 2018
compared to $204.5 million for the second quarter 2017, representing an
increase of $65.5 million, or 32%. The increase in coal sales revenues
was due to higher coal sales volumes combined with higher coal sales
realization per ton sold. Coal sales volumes and coal sales realization
per ton sold were higher due to increased export sales, which
experienced more favorable API2 pricing during 2018.
Cost of coal produced was $137.0 million, or $23.70 per ton sold, for
the second quarter 2018 compared to $105.8 million, or $21.88 per ton
sold, for the second quarter 2017. The increase was due to an increase
in produced tons sold as well as a higher cash cost per ton sold
resulting primarily from increased expenses relating to royalties,
subsidence, and two longwall moves during the second quarter. The higher
royalty and subsidence expenses are functions of which coal reserve
leases and land parcels that we currently mine. Royalty expense also
increased because of higher coal sales realizations per ton.
Transportation costs increased approximately $30.7 million from the
second quarter 2017 to the second quarter 2018 due to a higher
percentage of sales going to the export market during the current year
period and the additional transportation and transloading costs
associated therewith.
In April 2018, the permanent closure of the Hillsboro complex was
announced. As a result, Foresight recorded an aggregate impairment
charge of $110.7 million in the second quarter of 2018. Also related to
the permanent closure of Hillsboro, Foresight recognized a benefit of
$69.1 million associated with the write-off of an unfavorable royalty
agreement during the second quarter of 2018.
Other operating (income) expense, net increased $29.5 million for the
second quarter 2018 compared to the second quarter 2017 primarily due to
the receipt of $43.0 million in payments from the insurance companies in
the current period compared to $12.8 million in the prior year period.
An additional $1.1 million of insurance proceeds related to the recovery
of mitigation costs was recorded to cost of coal produced (excluding
depreciation, depletion and amortization). Foresight continues to pursue
additional remedies under its insurance policies; however, there can be
no assurances that Foresight will receive any further insurance
recoveries related to the Hillsboro combustion event.
During second quarter 2018, Foresight generated operating cash flows of
$30.6 million and ended the period with $38.8 million in cash and $124.0
million of available borrowing capacity, net of outstanding borrowings
and letters of credit, under its revolving credit facility. Capital
expenditures for the quarter ended June 30, 2018 totaled $15.7 million
compared to $21.7 million for the quarter ended June 30, 2017.
Guidance for 2018
Based on Foresight’s remaining contracted position, second quarter and
year-to-date performance, and its current outlook on pricing and the
coal markets in general, the Partnership is affirming and updating the
following guidance for 2018:
Sales Volumes – Based on current committed position and
expectations for the remainder of 2018, Foresight is projecting sales
volumes to be between 22.0 and 22.8 million tons, with at least 8.5
million tons expected to be sold into the international market.
Adjusted EBITDA – Based on the projected sales volumes and
operating cost structure, Foresight currently expects to generate
Adjusted EBITDA in a range of $300 to $330 million.
Capital Expenditures – Total 2018 capital expenditures are
estimated to be between $70 and $80 million.
Forward-Looking Statements
This press release contains “forward-looking” statements within the
meaning of the federal securities laws. These statements contain words
such as “possible,” “intend,” “will,” “if” and “expect” and can be
impacted by numerous factors, including risks relating to the securities
markets, the impact of adverse market conditions affecting business of
the Partnership, adverse changes in laws including with respect to tax
and regulatory matters and other risks. There can be no assurance that
actual results will not differ from those expected by management of the
Partnership. Known material factors that could cause actual results to
differ from those in the forward-looking statements are described in
Part I, “Item 1A. Risk Factors” of the Partnership’s Annual Report on
Form 10-K filed on March 7, 2018. The Partnership undertakes no
obligation to update or revise such forward-looking statements to
reflect events or circumstances that occur, or which the Partnership
becomes aware of, after the date hereof.
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP supplemental financial measure that
management and external users of the Partnership’s consolidated
financial statements, such as industry analysts, investors, lenders and
rating agencies, may use to assess:
-
the Partnership’s operating performance as compared to other publicly
traded partnerships, without regard to historical cost basis or, in
the case of Adjusted EBITDA, financing methods;
-
the Partnership’s ability to incur and service debt and fund capital
expenditures;
-
and the viability of acquisitions and other capital expenditure
projects and the returns on investment of various expansion and growth
opportunities.
The Partnership defines Adjusted EBITDA as net income (loss)
attributable to controlling interests before interest, income taxes,
depreciation, depletion, amortization and accretion. Adjusted EBITDA is
also adjusted for equity-based compensation, losses/gains on commodity
derivative contracts, settlements of derivative contracts, a change in
the fair value of the warrant liability and material nonrecurring or
other items, which may not reflect the trend of future results. As it
relates to commodity derivative contracts, the Adjusted EBITDA
calculation removes the total impact of derivative gains/losses on net
income (loss) during the period and then adds/deducts to Adjusted EBITDA
the amount of aggregate settlements during the period. Adjusted EBITDA
also includes any insurance recoveries received, regardless of whether
they relate to the recovery of mitigation costs, the receipt of business
interruption proceeds, or the recovery of losses on machinery and
equipment.
The Partnership believes the presentation of Adjusted EBITDA provides
useful information to investors in assessing the Partnership’s financial
condition and results of operations. Adjusted EBITDA should not be
considered an alternative to net (loss) income, operating income, cash
flow from operations, or any other measure of financial performance
presented in accordance with U.S. GAAP, nor should Adjusted EBITDA be
considered an alternative to operating surplus, adjusted operating
surplus or other definitions in the Partnership’s partnership agreement.
Adjusted EBITDA has important limitations as an analytical tool because
it excludes some, but not all, of the items that affects net (loss)
income. Additionally, because Adjusted EBITDA may be defined differently
by other companies in the industry, and the Partnership’s definition of
Adjusted EBITDA may not be comparable to similarly titled measures of
other companies, the utility of such a measure is diminished. For a
reconciliation of Adjusted EBITDA to net loss, please see the table
below.
This press release references forward-looking estimates of Adjusted
EBITDA projected to be generated by the Partnership during the year
ending December 31, 2018. A reconciliation of estimated 2018 Adjusted
EBITDA to U.S. GAAP net income (loss) is not provided because U.S. GAAP
net income (loss) for the projection period is not practical to assess
due to unknown variables and uncertainty related to future results. In
recent years, the Partnership has recognized significant asset
impairment charges, transition and reorganization costs, losses on early
extinguishment of debt, and debt restructuring costs. While these items
affect U.S. GAAP net income (loss), they are generally excluded from
Adjusted EBITDA. Therefore, these items do not materially impact the
Partnership’s ability to forecast Adjusted EBITDA.
About Foresight Energy LP
Foresight is a leading producer and marketer of thermal coal controlling
over 1.7 billion tons of coal reserves in the Illinois Basin. Foresight
currently operates two longwall mining complexes with three longwall
mining systems (Williamson (one longwall mining system) and Sugar Camp
(two longwall mining systems)), one continuous mining operation
(Macoupin) and the Sitran river terminal on the Ohio River. Foresight’s
operations are strategically located near multiple rail and river
transportation access points, providing transportation cost certainty
and flexibility to direct shipments to the domestic and international
markets. Foresight also owns coal interests and mining assets located in
southeastern Ohio.
1 Foresight adopted pushdown accounting as of March 31, 2017
as a result of Murray Energy obtaining control of its general partner.
As required by pushdown accounting, the Partnership revalued its balance
sheet on the change of control date and therefore certain financial
statement line items are not comparable to prior periods. As such,
operational results prior to March 31, 2017 were recorded on the
predecessor financial statements (the “Predecessor”). Operational
results subsequent to March 31, 2017 were recorded on the successor
financial statements (the “Successor”).
|
|
|
|
|
|
|
Foresight Energy LP
|
Unaudited Condensed Consolidated Balance Sheets
|
(In Thousands)
|
|
|
|
|
|
|
|
|
|
(Successor)
|
|
|
|
(Successor)
|
|
|
June 30,
|
|
|
|
December 31,
|
|
|
2018
|
|
|
|
2017
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
38,760
|
|
|
|
$
|
2,179
|
Accounts receivable
|
|
|
27,242
|
|
|
|
|
35,158
|
Due from affiliates
|
|
|
49,908
|
|
|
|
|
37,685
|
Financing receivables - affiliate
|
|
|
3,262
|
|
|
|
|
3,138
|
Inventories, net
|
|
|
44,678
|
|
|
|
|
40,539
|
Prepaid royalties
|
|
|
—
|
|
|
|
|
4,000
|
Deferred longwall costs
|
|
|
20,427
|
|
|
|
|
9,520
|
Other prepaid expenses and current assets
|
|
|
7,243
|
|
|
|
|
10,844
|
Contract-based intangibles
|
|
|
1,867
|
|
|
|
|
11,268
|
Total current assets
|
|
|
193,387
|
|
|
|
|
154,331
|
Property, plant, equipment and development, net
|
|
|
2,203,885
|
|
|
|
|
2,378,605
|
Due from affiliates
|
|
|
—
|
|
|
|
|
947
|
Financing receivables - affiliate
|
|
|
62,434
|
|
|
|
|
64,097
|
Prepaid royalties, net
|
|
|
2,096
|
|
|
|
|
1,250
|
Other assets
|
|
|
4,087
|
|
|
|
|
5,358
|
Contract-based intangibles
|
|
|
1,389
|
|
|
|
|
2,052
|
Total assets
|
|
$
|
2,467,278
|
|
|
|
$
|
2,606,640
|
Liabilities and partners’ capital
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Current portion of long-term debt and capital lease obligations
|
|
$
|
50,449
|
|
|
|
$
|
109,532
|
Current portion of sale-leaseback financing arrangements
|
|
|
4,907
|
|
|
|
|
4,148
|
Accrued interest
|
|
|
24,258
|
|
|
|
|
13,410
|
Accounts payable
|
|
|
88,081
|
|
|
|
|
76,658
|
Accrued expenses and other current liabilities
|
|
|
65,575
|
|
|
|
|
62,442
|
Asset retirement obligations
|
|
|
4,416
|
|
|
|
|
4,416
|
Due to affiliates
|
|
|
24,909
|
|
|
|
|
13,324
|
Contract-based intangibles
|
|
|
20,275
|
|
|
|
|
28,688
|
Total current liabilities
|
|
|
282,870
|
|
|
|
|
312,618
|
Long-term debt and capital lease obligations
|
|
|
1,221,776
|
|
|
|
|
1,205,000
|
Sale-leaseback financing arrangements
|
|
|
194,118
|
|
|
|
|
196,496
|
Asset retirement obligations
|
|
|
51,583
|
|
|
|
|
39,655
|
Other long-term liabilities
|
|
|
29,383
|
|
|
|
|
32,330
|
Contract-based intangibles
|
|
|
71,220
|
|
|
|
|
144,715
|
Total liabilities
|
|
|
1,850,950
|
|
|
|
|
1,930,814
|
Limited partners' capital:
|
|
|
|
|
|
|
|
|
Common unitholders (79,921 and 77,644 units outstanding as of June
30, 2018 and December 31, 2017, respectively)
|
|
|
388,575
|
|
|
|
|
421,161
|
Subordinated unitholder (64,955 units outstanding as of June 30,
2018 and December 31, 2017)
|
|
|
227,753
|
|
|
|
|
254,665
|
Total partners' capital
|
|
|
616,328
|
|
|
|
|
675,826
|
Total liabilities and partners' capital
|
|
$
|
2,467,278
|
|
|
|
$
|
2,606,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foresight Energy LP
|
Unaudited Condensed Consolidated Statements of Operations
|
(In Thousands, Except Per Unit Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Successor)
|
|
|
(Successor)
|
|
|
|
(Successor)
|
|
|
(Successor)
|
|
|
(Predecessor)
|
|
|
|
Three Months
Ended
June 30, 2018
|
|
|
Three Months
Ended
June 30, 2017
|
|
|
|
Six Months
Ended
June 30, 2018
|
|
|
Period From
April 1, 2017
through
June 30, 2017
|
|
|
Period From
January 1,
2017
through
March 31,
2017
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sales
|
|
$
|
269,992
|
|
|
$
|
204,516
|
|
|
|
$
|
508,379
|
|
|
$
|
204,516
|
|
|
$
|
227,813
|
|
Other revenues
|
|
|
1,430
|
|
|
|
2,577
|
|
|
|
|
3,769
|
|
|
|
2,577
|
|
|
|
2,581
|
|
Total revenues
|
|
|
271,422
|
|
|
|
207,093
|
|
|
|
|
512,148
|
|
|
|
207,093
|
|
|
|
230,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal produced (excluding depreciation, depletion and
amortization)
|
|
|
136,982
|
|
|
|
105,790
|
|
|
|
|
257,552
|
|
|
|
105,790
|
|
|
|
117,762
|
|
Cost of coal purchased
|
|
|
3,906
|
|
|
|
—
|
|
|
|
|
5,657
|
|
|
|
—
|
|
|
|
7,973
|
|
Transportation
|
|
|
59,034
|
|
|
|
28,258
|
|
|
|
|
105,477
|
|
|
|
28,258
|
|
|
|
37,726
|
|
Depreciation, depletion and amortization
|
|
|
55,312
|
|
|
|
49,537
|
|
|
|
|
106,732
|
|
|
|
49,537
|
|
|
|
39,298
|
|
Contract amortization and write-off
|
|
|
(70,424
|
)
|
|
|
8,733
|
|
|
|
|
(71,844
|
)
|
|
|
8,733
|
|
|
|
—
|
|
Accretion on asset retirement obligations
|
|
|
559
|
|
|
|
728
|
|
|
|
|
1,290
|
|
|
|
728
|
|
|
|
710
|
|
Selling, general and administrative
|
|
|
10,534
|
|
|
|
7,277
|
|
|
|
|
18,309
|
|
|
|
7,277
|
|
|
|
6,554
|
|
Long-lived asset impairments
|
|
|
110,689
|
|
|
|
—
|
|
|
|
|
110,689
|
|
|
|
—
|
|
|
|
—
|
|
Loss on commodity derivative contracts
|
|
|
—
|
|
|
|
1,117
|
|
|
|
|
—
|
|
|
|
1,117
|
|
|
|
1,492
|
|
Other operating (income) expense, net
|
|
|
(42,983
|
)
|
|
|
(13,490
|
)
|
|
|
|
(43,631
|
)
|
|
|
(13,490
|
)
|
|
|
451
|
|
Operating income
|
|
|
7,813
|
|
|
|
19,143
|
|
|
|
|
21,917
|
|
|
|
19,143
|
|
|
|
18,428
|
|
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
37,035
|
|
|
|
35,420
|
|
|
|
|
72,708
|
|
|
|
35,420
|
|
|
|
43,380
|
|
Change in fair value of warrants
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,278
|
)
|
Loss on early extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
95,510
|
|
Net loss
|
|
$
|
(29,222
|
)
|
|
$
|
(16,277
|
)
|
|
|
$
|
(50,791
|
)
|
|
$
|
(16,277
|
)
|
|
$
|
(111,184
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss available to limited partner units - basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders
|
|
$
|
(14,090
|
)
|
|
$
|
(8,790
|
)
|
|
|
$
|
(23,879
|
)
|
|
$
|
(8,790
|
)
|
|
$
|
(56,259
|
)
|
Subordinated unitholder
|
|
$
|
(15,132
|
)
|
|
$
|
(7,487
|
)
|
|
|
$
|
(26,912
|
)
|
|
$
|
(7,487
|
)
|
|
$
|
(54,925
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per limited partner unit - basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders
|
|
$
|
(0.18
|
)
|
|
$
|
(0.12
|
)
|
|
|
$
|
(0.30
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.85
|
)
|
Subordinated unitholder
|
|
$
|
(0.23
|
)
|
|
$
|
(0.12
|
)
|
|
|
$
|
(0.41
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.85
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average limited partner units outstanding - basic and
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common units
|
|
|
79,842
|
|
|
|
76,270
|
|
|
|
|
79,347
|
|
|
|
76,270
|
|
|
|
66,533
|
|
Subordinated units
|
|
|
64,955
|
|
|
|
64,955
|
|
|
|
|
64,955
|
|
|
|
64,955
|
|
|
|
64,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per limited partner unit
|
|
$
|
0.0565
|
|
|
$
|
—
|
|
|
|
$
|
0.1130
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foresight Energy LP
|
Unaudited Condensed Consolidated Statements of Cash Flows
|
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Successor)
|
|
|
(Successor)
|
|
|
(Predecessor)
|
|
|
|
Six Months
Ended
June 30, 2018
|
|
|
Period From
April 1, 2017
through
June 30, 2017
|
|
|
Period From
January 1, 2017
through
March 31, 2017
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(50,791
|
)
|
|
$
|
(16,277
|
)
|
|
$
|
(111,184
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
106,732
|
|
|
|
49,537
|
|
|
|
39,298
|
|
Amortization of debt discount and deferred issuance costs
|
|
|
1,326
|
|
|
|
628
|
|
|
|
6,365
|
|
Contract amortization and write-off
|
|
|
(71,844
|
)
|
|
|
8,733
|
|
|
|
—
|
|
Equity-based compensation
|
|
|
352
|
|
|
|
211
|
|
|
|
318
|
|
Loss on commodity derivative contracts
|
|
|
—
|
|
|
|
1,117
|
|
|
|
1,492
|
|
Settlements of commodity derivative contracts
|
|
|
—
|
|
|
|
444
|
|
|
|
3,724
|
|
Realized gains on coal derivatives included in investing activities
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,520
|
)
|
Long-lived asset impairments
|
|
|
110,689
|
|
|
|
—
|
|
|
|
—
|
|
Insurance proceeds included in investing activities
|
|
|
(42,947
|
)
|
|
|
—
|
|
|
|
—
|
|
Change in fair value of warrants
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,278
|
)
|
Debt extinguishment expense
|
|
|
—
|
|
|
|
—
|
|
|
|
95,510
|
|
Other
|
|
|
—
|
|
|
|
5,867
|
|
|
|
1,321
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
7,916
|
|
|
|
1,836
|
|
|
|
19,695
|
|
Due from/to affiliates, net
|
|
|
309
|
|
|
|
(4,204
|
)
|
|
|
(13,157
|
)
|
Inventories
|
|
|
(3,327
|
)
|
|
|
(19,863
|
)
|
|
|
(917
|
)
|
Prepaid expenses and other assets
|
|
|
(5,050
|
)
|
|
|
(2,224
|
)
|
|
|
(5,117
|
)
|
Prepaid royalties
|
|
|
3,154
|
|
|
|
4,276
|
|
|
|
(241
|
)
|
Commodity derivative assets and liabilities
|
|
|
—
|
|
|
|
(303
|
)
|
|
|
(532
|
)
|
Accounts payable
|
|
|
11,423
|
|
|
|
4,075
|
|
|
|
7,324
|
|
Accrued interest
|
|
|
10,848
|
|
|
|
11,801
|
|
|
|
(9,803
|
)
|
Accrued expenses and other current liabilities
|
|
|
2,007
|
|
|
|
423
|
|
|
|
(3,430
|
)
|
Other
|
|
|
1,491
|
|
|
|
(965
|
)
|
|
|
1,782
|
|
Net cash provided by operating activities
|
|
|
82,288
|
|
|
|
45,112
|
|
|
|
19,650
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in property, plant, equipment and development
|
|
|
(32,228
|
)
|
|
|
(21,732
|
)
|
|
|
(19,908
|
)
|
Return of investment on financing arrangements with Murray Energy
(affiliate)
|
|
|
1,539
|
|
|
|
719
|
|
|
|
705
|
|
Insurance proceeds
|
|
|
42,947
|
|
|
|
—
|
|
|
|
—
|
|
Settlement of certain coal derivatives
|
|
|
—
|
|
|
|
—
|
|
|
|
3,520
|
|
Proceeds from sale of property, plant and equipment
|
|
|
—
|
|
|
|
—
|
|
|
|
1,898
|
|
Net cash provided by (used in) investing activities
|
|
|
12,258
|
|
|
|
(21,013
|
)
|
|
|
(13,785
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under revolving credit facility
|
|
|
50,000
|
|
|
|
—
|
|
|
|
—
|
|
Payments on revolving credit facility
|
|
|
(15,000
|
)
|
|
|
—
|
|
|
|
(352,500
|
)
|
Net change in borrowings under A/R securitization program
|
|
|
—
|
|
|
|
(100
|
)
|
|
|
7,000
|
|
Proceeds from long-term debt and capital lease obligations
|
|
|
—
|
|
|
|
—
|
|
|
|
1,234,438
|
|
Payments on long-term debt and capital lease obligations
|
|
|
(78,633
|
)
|
|
|
(12,287
|
)
|
|
|
(970,721
|
)
|
Payments on short-term debt
|
|
|
(3,654
|
)
|
|
|
—
|
|
|
|
—
|
|
Proceeds from issuance of common units to Murray Energy (affiliate)
|
|
|
—
|
|
|
|
—
|
|
|
|
60,586
|
|
Distributions paid
|
|
|
(9,020
|
)
|
|
|
—
|
|
|
|
—
|
|
Debt extinguishment costs
|
|
|
—
|
|
|
|
—
|
|
|
|
(57,645
|
)
|
Debt issuance costs paid
|
|
|
—
|
|
|
|
—
|
|
|
|
(27,328
|
)
|
Other
|
|
|
(1,658
|
)
|
|
|
(2,130
|
)
|
|
|
(1,892
|
)
|
Net cash used in financing activities
|
|
|
(57,965
|
)
|
|
|
(14,517
|
)
|
|
|
(108,062
|
)
|
Net increase (decrease) in cash, cash equivalents, and restricted
cash
|
|
|
36,581
|
|
|
|
9,582
|
|
|
|
(102,197
|
)
|
Cash, cash equivalents, and restricted cash, beginning of period
|
|
|
2,179
|
|
|
|
14,724
|
|
|
|
116,921
|
|
Cash, cash equivalents, and restricted cash, end of period
|
|
$
|
38,760
|
|
|
$
|
24,306
|
|
|
$
|
14,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of U.S. GAAP Net Loss to Adjusted EBITDA (In
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Successor)
Three
Months
Ended
June 30, 2018
|
|
|
(Successor)
Three
Months
Ended
June 30, 2017
|
|
|
(Successor)
Six Months
Ended
June 30, 2018
|
|
|
(Successor)
Period From
April 1, 2017
through
June 30,
2017
|
|
|
(Predecessor)
Period From
January 1,
2017
through
March 31,
2017
|
|
|
Combined -
Period From
January 1,
2017
through
June 30,
2017
|
|
Net loss(1)
|
|
$
|
(29,222
|
)
|
|
$
|
(16,277
|
)
|
|
$
|
(50,791
|
)
|
|
$
|
(16,277
|
)
|
|
$
|
(111,184
|
)
|
|
$
|
(127,461
|
)
|
Interest expense, net
|
|
|
37,035
|
|
|
|
35,420
|
|
|
|
72,708
|
|
|
|
35,420
|
|
|
|
43,380
|
|
|
|
78,800
|
|
Depreciation, depletion and amortization
|
|
|
55,312
|
|
|
|
49,537
|
|
|
|
106,732
|
|
|
|
49,537
|
|
|
|
39,298
|
|
|
|
88,835
|
|
Accretion on asset retirement obligations
|
|
|
559
|
|
|
|
728
|
|
|
|
1,290
|
|
|
|
728
|
|
|
|
710
|
|
|
|
1,438
|
|
Contract amortization and write-off
|
|
|
(70,424
|
)
|
|
|
8,733
|
|
|
|
(71,844
|
)
|
|
|
8,733
|
|
|
|
—
|
|
|
|
8,733
|
|
Noncash impact of recording coal inventory to fair value in pushdown
accounting
|
|
|
|
|
|
|
4,562
|
|
|
|
—
|
|
|
|
4,562
|
|
|
|
—
|
|
|
|
4,562
|
|
Equity-based compensation
|
|
|
175
|
|
|
|
211
|
|
|
|
352
|
|
|
|
211
|
|
|
|
318
|
|
|
|
529
|
|
Long-lived asset impairments
|
|
|
110,689
|
|
|
|
—
|
|
|
|
110,689
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Loss on commodity derivative contracts
|
|
|
—
|
|
|
|
1,117
|
|
|
|
—
|
|
|
|
1,117
|
|
|
|
1,492
|
|
|
|
2,609
|
|
Settlements of commodity derivative contracts
|
|
|
—
|
|
|
|
444
|
|
|
|
—
|
|
|
|
444
|
|
|
|
3,724
|
|
|
|
4,168
|
|
Change in fair value of warrants
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,278
|
)
|
|
|
(9,278
|
)
|
Loss on early extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
95,510
|
|
|
|
95,510
|
|
Adjusted EBITDA
|
|
$
|
104,124
|
|
|
$
|
84,475
|
|
|
$
|
169,136
|
|
|
$
|
84,475
|
|
|
$
|
63,970
|
|
|
$
|
148,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - Included in net loss during the three and six months ended
June 30, 2018 and the three months and combined period ended June
30, 2017 was insurance proceeds of $44.1 million and $12.8 million,
respectively, from the Hillsboro mine combustion event.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Metrics (In Thousands, Except Per Ton Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Successor)
Three
Months
Ended
June 30,
2018
|
|
|
(Successor)
Three
Months
Ended
June 30,
2017
|
|
|
(Successor)
Six Months
Ended
June 30,
2018
|
|
|
(Successor)
Period From
April 1, 2017
through
June 30,
2017
|
|
|
(Predecessor)
Period From
January 1,
2017
through
March 31,
2017
|
|
|
Combined -
Period From
January 1,
2017
through
June 30,
2017
|
Produced tons sold
|
|
|
5,779
|
|
|
|
4,835
|
|
|
|
10,978
|
|
|
|
4,835
|
|
|
|
5,165
|
|
|
|
10,000
|
Purchased tons sold
|
|
|
88
|
|
|
|
—
|
|
|
|
129
|
|
|
|
—
|
|
|
|
118
|
|
|
|
118
|
Total tons sold
|
|
|
5,867
|
|
|
|
4,835
|
|
|
|
11,107
|
|
|
|
4,835
|
|
|
|
5,283
|
|
|
|
10,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons produced
|
|
|
5,419
|
|
|
|
5,660
|
|
|
|
11,086
|
|
|
|
5,660
|
|
|
|
5,267
|
|
|
|
10,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sales realization per ton sold(1)
|
|
$
|
46.02
|
|
|
$
|
42.30
|
|
|
$
|
45.77
|
|
|
$
|
42.30
|
|
|
$
|
43.12
|
|
|
$
|
42.73
|
Cash cost per ton sold(2)
|
|
$
|
23.70
|
|
|
$
|
21.88
|
|
|
$
|
23.46
|
|
|
$
|
21.88
|
|
|
$
|
22.80
|
|
|
$
|
22.36
|
Netback to mine realization per ton sold(3)
|
|
$
|
35.96
|
|
|
$
|
36.45
|
|
|
$
|
36.27
|
|
|
$
|
36.45
|
|
|
$
|
35.98
|
|
|
$
|
36.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - Coal sales realization per ton sold is defined as coal sales
divided by total tons sold.
|
(2) - Cash cost per ton sold is defined as cost of coal produced
(excluding depreciation, depletion and amortization) divided by
produced tons sold.
|
(3) - Netback to mine realization per ton sold is defined as coal
sales less transportation expense divided by tons sold.
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180803005073/en/ Copyright Business Wire 2018
Source: Business Wire
(August 3, 2018 - 6:05 AM EDT)
News by QuoteMedia
www.quotemedia.com
|