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Derivatives (Tables)
 3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Price Risk Derivatives
At March 31, 2019, the Company held derivatives for risk management purposes that are expected to settle in the following years:
 
(Tons in thousands)
 
2019
 
2020
 
Total
Coal sales
 
2,196

 
344

 
2,540

Coal purchases
 
1,131

 
93

 
1,224
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, 2019
 
 
 
December 31, 2018
 
 
Fair Value of Derivatives
 
Asset
 
Liability
 
 
 
Asset
 
Liability
 
 
(In thousands)
 
Derivative
 
Derivative
 
 
 
Derivative
 
Derivative
 
 
Derivatives Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Coal
 
$
5,461

 
$
(297
)
 
 

 
$
2,342

 
$
(805
)
 
 

 
 


 


 
 
 


 


 
 

Derivatives Not Designated as Hedging Instruments
 
 

 
 

 
 

 
 

 
 

 
 

Heating oil -- diesel purchases
 
1,734

 
(228
)
 
 

 
532

 
—

 
 

Coal -- held for trading purposes
 
33,091

 
(33,932
)
 
 

 
10,329

 
(10,701
)
 
 

Coal -- risk management
 
22,552

 
(23,033
)
 
 

 
5,672

 
(19,579
)
 
 

Natural gas
 
19

 
—

 
 
 
4

 
(4
)
 
 
Total
 
$
57,396

 
$
(57,193
)
 
 

 
$
16,537

 
$
(30,284
)
 
 

Total derivatives
 
$
62,857

 
$
(57,490
)
 
 

 
$
18,879

 
$
(31,089
)
 
 

Effect of counterparty netting
 
(57,490
)
 
57,490

 
 

 
(17,801
)
 
17,801

 
 

Net derivatives as classified in the balance sheets
 
$
5,367

 
$
—

 
$
5,367

 
$
1,078

 
$
(13,288
)
 
$
(12,210
)
 
 
 
 
 
March 31, 2019
 
December 31, 2018
Net derivatives as reflected on the balance sheets (in thousands)
 
 
 
 

Heating oil and coal
 
Other current assets
 
$
5,367

 
$
1,078

Coal
 
Accrued expenses and other current liabilities
 
—

 
(13,288
)
 
 
 
 
$
5,367

 
$
(12,210
)
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 (Effective Portion)
 
Gains (Losses) Reclassified from Other Comprehensive Income into Income
(Effective Portion)
 
 
2019
 
2018
 
2019
 
2018
Coal sales
(1)
$
5,237

 
$
5,231

 
$
1,044

 
$
—

Coal purchases
(2)
(566
)
 
(542
)
 
(683
)
 
—

Totals
 
$
4,671

 
$
4,689

 
$
361

 
$
—

Derivatives Not Designated as Hedging Instruments (in thousands)
Three Months Ended March 31,
 
 
Gain (Loss) Recognized
 
 
2019
 
2018
Coal  trading — realized and unrealized
(3)
$
(383
)
 
$
558

Coal risk management — unrealized
(3)
13,425

 
2,875

Natural gas  trading— realized and unrealized
(3)
(61
)
 
(19
)
Change in fair value of coal derivatives and coal trading activities, net total
 
$
12,981

 
$
3,414

 
 
 
 
 
Coal risk management— realized
(4)
$
(4,411
)
 
$
(1,031
)
Heating oil — diesel purchases
(4)
$
637

 
$
18

____________________________________________________________
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