Derivatives (Tables)

3 Months Ended

Mar. 31, 2020

Derivatives

Schedule of Price Risk Derivatives

At March 31, 2020, the Company held derivatives for risk management purposes that are expected to settle in the following years:

(Tons in thousands)	2020
Coal sales	685
Coal purchases	480

Disclosure of Fair Value of Derivatives

The fair value and location of derivatives reflected in the accompanying Condensed Consolidated Balance Sheets are as follows:

	March 31, 2020						December 31, 2019
Fair Value of Derivatives	Asset		Liability				Asset		Liability
(In thousands)	Derivative		Derivative				Derivative		Derivative
Derivatives Designated as Hedging Instruments
Coal	$	1,132	$	(839)			$	1,351	$	(962)
Derivatives Not Designated as Hedging Instruments
Heating oil -- diesel purchases		201		(1)				133		(112)
Coal -- held for trading purposes		19,565		(19,667)				18,467		(18,940)
Coal -- risk management		10,466		(5,699)				11,662		(5,856)
Natural gas		—		—				3		—
Total	$	30,232	$	(25,367)			$	30,265	$	(24,908)
Total derivatives	$	31,364	$	(26,206)			$	31,616	$	(25,870)
Effect of counterparty netting		(26,205)		26,205				(25,759)		25,759
Net derivatives as classified in the balance sheets	$	5,159	$	(1)	$	5,158	$	5,857	$	(111)	$	5,746

		March 31,		December 31,
		2020		2019
Net derivatives as reflected on the balance sheets (in thousands)
Heating oil and coal	Other current assets	$	5,159	$	5,857
Coal	Accrued expenses and other current liabilities		(1)		(111)
		$	5,158	$	5,746

Effects of Derivatives on Measures of Financial Performance

The effects of derivatives on measures of financial performance are as follows:

Derivatives used in Cash Flow Hedging Relationships (in thousands)

Three Months Ended March 31,

		Gain (Loss) Recognized in Other Comprehensive Income				Gains (Losses) Reclassified from Other Comprehensive Income into Income
		2020		2019		2020		2019
Coal sales	(1)	$	159	$	5,237	$	—	$	1,044
Coal purchases	(2)		(156)		(566)		—		(683)
Totals		$	3	$	4,671	$	—	$	361

Derivatives Not Designated as Hedging Instruments (in thousands)

Three Months Ended March 31,

		Gain (Loss) Recognized
			2020		2019
Coal  trading — realized and unrealized	(3)	$	221	$	(383)
Coal risk management — unrealized	(3)		(1,040)		13,425
Natural gas  trading— realized and unrealized	(3)		76		(61)
Change in fair value of coal derivatives and coal trading activities, net total		$	(743)	$	12,981
Coal risk management— realized	(4)	$	1,601	$	(4,411)
Heating oil — diesel purchases	(4)	$	(1,033)	$	637

Location in statement of operations:

(1) — Revenues

(2) — Cost of sales

(3) — Change in fair value of coal derivatives and coal trading activities, net

(4) — Other operating (income) expense, net