10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 333-191182

Armstrong Energy, Inc.

(Exact name of registrant as specified in its charter)

Delaware	20-8015664
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
7733 Forsyth Boulevard, Suite 1625 St. Louis, Missouri	63105
(Address of principal executive offices)	(Zip code)

(314) 721 – 8202

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ý  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ý  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    ý  No

As of November 1, 2016, there were 21,883,224 shares of Armstrong Energy, Inc.’s Common Stock outstanding.

TABLE OF CONTENTS

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	32
Item 4.	Controls and Procedures	32
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	35
Signatures		36

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Armstrong Energy, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)

	September 30, 2016			December 31, 2015
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	62,690		$	67,617
Accounts receivable	15,182			14,270
Inventories	10,053			14,562
Prepaid and other assets	2,632			1,952
Total current assets	90,557			98,401
Property, plant, equipment, and mine development, net	242,234			261,398
Investments	2,794			3,525
Other non-current assets	14,219			17,387
Total assets	$	349,804		$	380,711
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	16,992		$	22,555
Accrued and other liabilities	18,578			13,045
Current portion of capital lease obligations	775			1,943
Current maturities of long-term debt	8,619			8,402
Total current liabilities	44,964			45,945
Long-term debt, less current maturities	200,100			203,508
Long-term obligation to related party	145,141			128,809
Related party payables, net	10,366			16,413
Asset retirement obligations	14,855			13,990
Long-term portion of capital lease obligations	—			555
Other non-current liabilities	7,617			6,772
Total liabilities	423,043			415,992
Stockholders’ deficit:
Common stock, $0.01 par value, 70,000,000 shares authorized, 21,883,224 and 21,853,224 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	219			218
Preferred stock, $0.01 par value, 1,000,000 shares authorized, zero shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	—			—
Additional paid-in-capital	238,672			238,695
Accumulated deficit	(310,501		)	(272,334		)
Accumulated other comprehensive loss	(1,652		)	(1,883		)
Armstrong Energy, Inc.’s deficit	(73,262		)	(35,304		)
Non-controlling interest	23			23
Total stockholders’ deficit	(73,239		)	(35,281		)
Total liabilities and stockholders’ deficit	$	349,804		$	380,711

See accompanying notes to unaudited condensed consolidated financial statements.

1

Armstrong Energy, Inc. and Subsidiaries

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Revenue	$	65,388		$	89,206		$	186,141		$	278,680
Costs and expenses:
Cost of coal sales, exclusive of items shown separately below	52,357			69,843			155,671			218,826
Production royalty to related party	1,866			1,980			5,206			6,034
Depreciation, depletion, and amortization	7,736			10,990			22,894			38,399
Asset retirement obligation expenses	350			756			1,019			2,340
Asset impairment and restructuring charges	—			138,679			3,381			138,679
General and administrative expenses	3,099			3,641			9,539			12,563
Operating loss	(20		)	(136,683		)	(11,569		)	(138,161		)
Other income (expense):
Interest expense, net	(8,798		)	(9,203		)	(25,455		)	(26,450		)
Other, net	(906		)	154			(1,026		)	4,778
Loss before income taxes	(9,724		)	(145,732		)	(38,050		)	(159,833		)
Income taxes	—			(54		)	(117		)	(313		)
Net loss	(9,724		)	(145,786		)	(38,167		)	(160,146		)
Income attributable to non-controlling interest	—			—			—			—
Net loss attributable to common stockholders	$	(9,724	)	$	(145,786	)	$	(38,167	)	$	(160,146	)

See accompanying notes to unaudited condensed consolidated financial statements.

2

Armstrong Energy, Inc. and Subsidiaries

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollars in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net loss	$	(9,724	)	$	(145,786	)	$	(38,167	)	$	(160,146	)
Postretirement benefit plan and other employee benefit obligations, net of tax	76			105			231			314
Other comprehensive income	76			105			231			314
Comprehensive loss	(9,648		)	(145,681		)	(37,936		)	(159,832		)
Less: comprehensive income (loss) attributable to non-controlling interests	—			—			—			—
Comprehensive loss attributable to common stockholders	$	(9,648	)	$	(145,681	)	(37,936		)	$	(159,832	)

See accompanying notes to unaudited condensed consolidated financial statements.

3

Armstrong Energy, Inc. and Subsidiaries

UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT

Nine Months Ended September 30, 2016

(Amounts in thousands)

	Common Stock			Preferred Stock			Additional Paid-in- Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Non-Controlling Interest		Total Stockholders’ Deficit
	Number of Shares	Amount		Number of Shares	Amount
Balance at December 31, 2015	21,853	$	218	—	$	—	$	238,695		$	(272,334	)	$	(1,883	)	$	23	$	(35,281	)
Net loss	—	—		—	—		—			(38,167		)	—			—		(38,167		)
Stock based compensation	—	—		—	—		(22		)	—			—			—		(22		)
Postretirement benefit plan and other employee benefit obligations, net of tax of zero	—	—		—	—		—			—			231			—		231
Shares issued under employee plan	30	1		—	—		(1		)	—			—			—		—
Balance at September 30, 2016	21,883	$	219	—	$	—	$	238,672		$	(310,501	)	$	(1,652	)	$	23	$	(73,239	)

See accompanying notes to unaudited condensed consolidated financial statements.

4

Armstrong Energy, Inc. and Subsidiaries

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

	Nine Months Ended September 30,
	2016			2015
Cash Flows from Operating Activities:
Net loss	$	(38,167	)	$	(160,146	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Non-cash stock compensation (income) expense	(22		)	224
Income from equity affiliate	(89		)	(116		)
Loss on partial disposal of investment in equity affiliate	320			—
Loss on disposal of property, plant and equipment	—			72
Amortization of original issue discount	711			630
Amortization of debt issuance costs	1,259			1,143
Depreciation, depletion and amortization	22,894			38,399
Asset retirement obligation expenses	1,019			2,340
Asset impairment	3,381			137,678
Non-cash activity with related party, net	10,286			13,141
Non-cash interest on long-term obligations	5,867			5,867
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable	(912		)	485
Decrease (increase) in inventories	4,509			(2,231		)
(Increase) decrease in prepaid and other assets	(680		)	899
Increase in other non-current assets	(491		)	(455		)
Decrease in accounts payable and accrued and other liabilities	(5,820		)	(3,187		)
Increase in other non-current liabilities	844			1,193
Net cash provided by operating activities:	4,909			35,936
Cash Flows from Investing Activities:
Investment in property, plant, equipment, and mine development	(2,131		)	(16,881		)
Proceeds from partial disposal of investment in equity affiliate	500			—
Proceeds from disposal of fixed assets	—			475
Net cash used in investing activities	(1,631		)	(16,406		)
Cash Flows from Financing Activities:
Payments on capital lease obligations	(1,723		)	(2,017		)
Payments of long-term debt	(6,482		)	(4,470		)
Net cash used in financing activities	(8,205		)	(6,487		)
Net change in cash and cash equivalents	(4,927		)	13,043
Cash and cash equivalents, at the beginning of the period	67,617			59,518
Cash and cash equivalents, at the end of the period	$	62,690		$	72,561

5

	Nine Months Ended September 30,
	2016		2015
Supplemental cash flow information:
Non-Cash Transactions:
Assets acquired with long-term debt	$	1,586	$	7,756
Non-cash portion of land and reserve sale/financing with related party	16,413		18,172

See accompanying notes to unaudited condensed consolidated financial statements.

6

Armstrong Energy, Inc. and Subsidiaries

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share amounts)

1. DESCRIPTION OF BUSINESS AND ENTITY STRUCTURE

Business

The accompanying unaudited condensed consolidated financial statements include the accounts of Armstrong Energy, Inc. and its subsidiaries and controlled entities (collectively, the Company or AE). The Company’s primary business is the production of thermal coal from surface and underground mines located in western Kentucky, for sale to utility and industrial markets. Intercompany transactions and accounts have been eliminated in consolidation.

Prior to September 1, 2016, the Company’s wholly-owned subsidiary, Elk Creek GP, LLC (ECGP), was the sole general partner of and had an approximate 0.2% ownership in Thoroughbred Resources, L.P. (Thoroughbred). The various limited partners of Thoroughbred are related parties, as the entity is majority owned by investment funds managed by Yorktown Partners LLC (Yorktown), which has a majority ownership in the Company. Effective September 1, 2016, Yorktown exercised its right under the Second Amended and Restated Agreement of Limited Partnership of Thoroughbred Resources, LP to remove ECGP as the general partner of Thoroughbred. The Company does not consolidate the financial results of Thoroughbred. See Note 7, "Related Party Transactions," for further discussion.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting and U.S. Securities and Exchange Commission (SEC) regulations. In the opinion of management, all adjustments consisting of normal, recurring accruals considered necessary for a fair presentation have been included. Balance sheet information presented herein as of December 31, 2015 has been derived from the Company’s audited consolidated balance sheet at that date. Results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of results to be expected for the year ending December 31, 2016. Certain prior year amounts have been reclassified to conform with the 2016 presentation. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 23, 2016.

Market Conditions and Liquidity

The domestic coal markets have been negatively impacted by declining power demand from mild weather conditions, persistently low natural gas prices, excess utility stockpiles and an arduous regulatory environment. As a result of the weak market conditions and depressed coal prices, the Company has undertaken steps to adequately preserve its liquidity and manage operating costs, including efficiently controlling capital expenditures. Beginning in 2015, the Company undertook steps to enhance its financial flexibility and reduce cash outflows in the near term, including a streamlining of its cost structure and anticipated reductions in production volumes and capital expenditures. In addition, during the second quarter of 2016, the board of directors of the Company authorized an exploration of strategic alternatives aimed at strengthening the Company’s balance sheet and improving its long-term capital structure. As a result, the Company has retained legal and financial advisers to assist the board of directors and management with the strategic review process. There is no assurance that this exploration will result in any strategic alternatives being announced or executed. For the three and nine months ended September 30, 2016, the Company has incurred expenses totaling $626 and $1,077, respectively, associated with the strategic review process, which is included as a component of "other, net" in the unaudited condensed consolidated statements of operations.

Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented

In February 2016, the Financial Accounting Standards Board (FASB) issued updated guidance regarding the accounting for leases. This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier application permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this update on its consolidated financial statements.

In November 2015, the FASB issued guidance that eliminates the requirement to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The new guidance is effective for financial statements issued for annual periods beginning after

7

December 15, 2016, and interim periods within those annual periods, with early adoption permitted. The Company adopted this standard as of December 31, 2015. While the adoption of this guidance impacted the Company's balance sheet disclosure, it did not affect the Company's results of operations or cash flows.

In April 2015, the FASB issued guidance requiring an entity to present deferred financing costs on the balance sheet as a direct deduction from the related debt liability as opposed to an asset. Amortization of the costs will continue to be reported as interest expense. In August 2015, the FASB issued an accounting standards update about the presentation and subsequent measurement of deferred financing costs associated with line-of-credit arrangements, which allows for the presentation of deferred financing costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. The updates are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. The Company adopted these standards during the three months ended March 31, 2016. The Company continues to report the unamortized deferred financing costs associated with its asset-based revolving credit facility dated December 21, 2012 (the 2012 Credit Facility) within other non-current assets, whereas unamortized deferred financing costs associated with the Company's 11.75% Senior Secured Notes due 2019 (the Notes) have been reclassified for all periods presented.

In February 2015, the FASB issued guidance changing the requirements and analysis required when determining the reporting entity's need to consolidate an entity, including modifying the evaluation of limited partnerships variable interest status, the presumption that a general partner should consolidate a limited partnership, and the consolidation criterion applied by a reporting entity involved with variable interest entities. The Company adopted this guidance during the first quarter of 2016, and it did not have an impact on its historical consolidation conclusions.

In August 2014, the FASB issued guidance on management’s responsibility in evaluating, at each annual and interim reporting period, whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter with early adoption permitted.

In May 2014, the FASB issued a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard requires revenue to be recognized when promised goods or services are transferred to a customer in an amount that reflects the consideration expected in exchange for those goods or services. The standard permits the use of either the full retrospective or modified retrospective transition method. This guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted to the original effective date of December 15, 2016. The Company is currently evaluating the impact of this new pronouncement on its financial statements.

2. ASSET IMPAIRMENT AND RESTRUCTURING CHARGES

The Company's long-lived assets may be adversely affected by numerous uncertain factors that may cause the Company to be unable to recover all or a portion of the carrying value of those assets. As a result of various unfavorable market conditions, including, but not limited to sustained downward trends in domestic coal prices, the Company concluded indicators of impairment existed as of September 30, 2015. As such, the Company performed a comprehensive review of its long-lived assets for recoverability through future cash flows as of September 30, 2015. Based on that review, it was determined the carrying value was not recoverable, and the Company correspondingly recognized a non-cash asset impairment of $137,678 to reduce the carrying value of its long-lived assets to their estimated fair value. In addition, the Company initiated certain restructuring activities during the three months endedSeptember 30, 2015 to better align its cost structure with current industry conditions. Costs associated with these restructuring activities of $1,001 were recognized in the three and nine months ended September 30, 2015. For additional information surrounding those charges, refer to Note 3, "Asset Impairment and Restructuring Charges" to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

During the nine months ended September 30, 2016, the Company recognized an asset impairment charge of $3,381 to write-off certain advanced royalties. See Note 3, "Mineral Reserve Lease," for further discussion.

3. MINERAL RESERVE LEASE

In October 2010, the Company entered into a lease agreement for over 100 million tons of recoverable coal reserves located in Union and Webster Counties, Kentucky in exchange for a production royalty. The initial term of the lease expired on June 1, 2016. In addition, the lease required the Company to provide the lessor with a certain amount of coal tonnage annually until production commenced on the leased reserve. The Company valued this coal tonnage using the prevailing average market price, and the advance royalty was recoupable against production royalties generated by future mining activity.

8

Upon expiration, the lease was renewed for an additional 5 year term. The terms of the renewal stipulate a minimum annual rent payable with a specified amount of coal tonnage beginning on June 1, 2017. In addition, the lease allows for the early termination of the agreement by the Company upon payment of a termination fee, as defined, which is zero through December 1, 2017. Lastly, the minimum annual rent, including amounts previously paid, will no longer be recoupable against future production royalties. As a result, the Company recognized a non-cash impairment charge of $3,381 during the second quarter of 2016 to write-off advanced royalties associated with the aforementioned lease.

4. INVENTORIES

Inventories consist of the following amounts:

	September 30, 2016		December 31, 2015
Materials and supplies	$	8,755	$	9,634
Coal—raw and saleable	1,298		4,928
Total	$	10,053	$	14,562

5. ACCRUED AND OTHER LIABILITIES

Accrued and other liabilities consist of the following amounts:

	September 30, 2016		December 31, 2015
Payroll and related benefits	$	5,128	$	6,454
Taxes other than income taxes	4,164		3,134
Interest	6,854		987
Asset retirement obligations	94		94
Royalties	628		630
Other	1,710		1,746
Total	$	18,578	$	13,045

6. OTHER NON-CURRENT ASSETS

Other non-current assets consist of the following amounts:

	September 30, 2016		December 31, 2015
Escrows and deposits	$	5,213	$	5,233
Restricted surety and cash bonds	6,055		6,115
Advanced royalties	2,462		5,272
Deferred financing costs, net associated with 2012 Credit Facility	432		697
Intangible assets, net	57		70
Total	$	14,219	$	17,387

7. RELATED PARTY TRANSACTIONS

Investments

Effective September 1, 2016, Yorktown exercised its right under the Second Amended and Restated Agreement of Limited Partnership of Thoroughbred Resources, LP to remove ECGP as the general partner of Thoroughbred. The Company received cash of $500 for its 0.2% general partner interest and recognized a pre-tax loss of $320 during the three months ended September 30, 2016, which is included as a component of "other, net" in the condensed consolidated statements of operations for the three and nine months ended September 30, 2016. The Company continues to maintain a 0.9% interest in Thoroughbred through its subsidiary, Armstrong Energy Holdings, Inc., but, as a result of its removal as general partner, no longer has the ability to exercise significant influence over Thoroughbred. Therefore, effective September 1, 2016, the remaining interest being retained by the Company is being accounted for under the cost method.

9

Prior to September 1, 2016 when the Company’s investment in Thoroughbred was accounted for under the equity method, the Company recognized income from its equity interest of $25 and $40 for three months ended September 30, 2016 and 2015, respectively, and $89 and $116 for the nine months ended September 30, 2016 and 2015, respectively.

Sale of Coal Reserves

The Company has executed the sale of an undivided interest in certain land and mineral reserves in Ohio and Muhlenberg counties of Kentucky to Thoroughbred, through a series of transactions beginning in February 2011. Subsequently, the Company entered into lease agreements with Thoroughbred pursuant to which Thoroughbred granted the Company leases to its undivided interests in the mining properties acquired and licenses to mine and sell coal from those properties in exchange for a production royalty. Due to the Company’s continuing involvement in the land and mineral reserves transferred, these transactions have been accounted for as financing arrangements. A long-term obligation has been established that is being amortized over the anticipated life of the mineral reserves, at an annual rate of 7% of the estimated gross revenue generated from the sale of the coal originating from the leased mineral reserves. In addition, effective February 2011, the Company and Thoroughbred entered into a Royalty Deferment and Option Agreement, whereby the Company has been granted an option to defer payment of any royalties earned by Thoroughbred on coal mined from these properties. Compensation for the aforementioned transactions has consisted of a combination of cash payments and the forgiveness of amounts owed by the Company, which primarily consisted of deferred royalties.

On May 1, 2015, the Company sold a 12.10% undivided interest in certain leased and owned land and mineral reserves to Thoroughbred in exchange for Thoroughbred forgiving amounts owed by the Company of $18,172. On June 1, 2016, the Company sold an additional 17.81% undivided interest in certain leased and owned land and mineral reserves to Thoroughbred in exchange for Thoroughbred forgiving amounts owed by the Company of $16,413. The amounts forgiven consisted primarily of deferred production royalties. The newly acquired interests in the mineral reserves were leased and/or subleased by Thoroughbred to the Company in exchange for a production royalty. These transactions were accounted for as financing arrangements and additional long-term obligations to Thoroughbred of $18,172 and $16,413 were recognized on May 1, 2015 and June 1, 2016, respectively.

The percentage interest in the land and mineral reserves sold to Thoroughbred in the above transactions were based on fair values determined by a third-party specialist as of December 31 of the year prior to the completion of the land and mineral reserve sale. In addition, these transactions were approved by the conflicts committee of the board of directors of the Company, a committee including independent directors. As a result of the above, Thoroughbred’s undivided interest in certain of the Company’s leased and owned land and mineral reserves in Muhlenberg and Ohio counties as of September 30, 2016 and December 31, 2015 was 79.19% and 61.38%, respectively.

As of September 30, 2016 and December 31, 2015, the outstanding long-term obligation to related party totaled $145,141 and $128,809, respectively. Interest expense recognized for the three months ended September 30, 2016 and 2015 associated with the long-term obligation to related party was $2,120 and $2,675, respectively, and for the nine months ended September 30, 2016 and 2015 was $5,474 and $8,311, respectively. The effective interest rate of the long-term obligation to related party, which is adjusted based on significant mine plan changes and the completion of the periodic reserve transfers, was 5.8% as of September 30, 2016.

Lease of Coal Reserves

In February 2011, Thoroughbred entered into a lease and sublease agreement with the Company relating to its Elk Creek reserves and granted the Company a license to mine coal on those properties. The terms of this agreement mirror those of the lease agreements associated with the jointly owned reserves between the Company and Thoroughbred. Total production royalties owed from mining of the Elk Creek reserves, where the Company’s Kronos underground mine resides, for the three months ended September 30, 2016 and 2015 totaled $1,867 and $1,980, respectively, and for the nine months ended September 30, 2016 and 2015 totaled $5,206 and $6,034, respectively.

Administrative Services Agreements

The Company entered into an administrative services agreement with Thoroughbred and ECGP pursuant to which the Company agreed to provide Thoroughbred with general administrative and management services, including, but not limited to, human resources, information technology, financial and accounting services and legal services. The administrative service fee, which is adjusted annually, is approved by the conflicts committee of the board of directors of the Company. As consideration for the use of the Company’s employees and services, and for certain shared fixed costs, Thoroughbred paid the Company $236

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and $300 for the three months ended September 30, 2016 and 2015, respectively, and $707 and $900 for the nine months ended September 30, 2016 and 2015, respectively.

In connection with ECGP's removal as general partner of Thoroughbred, the Company and Thoroughbred have agreed to cancel the administrative services agreement effective as of December 31, 2016.

Other

In 2007, the Company entered into an overriding royalty agreement with an executive employee to compensate him $0.05/ton of coal mined and sold from properties owned by certain subsidiaries of the Company. The agreement remains in effect for the later of 20 years from the date of the agreement or until all salable coal has been extracted. The royalty agreement transfers with the property regardless of ownership or lease status. The royalty is payable the month following the sale of coal mined from the specified properties. The Company accounts for this royalty arrangement as expense in the period in which the coal is sold. Expense recorded in the three months ended September 30, 2016 and 2015 was $54 and $75, respectively, and $154 and $244 in the nine months ended September 30, 2016 and 2015, respectively.

8. LONG-TERM DEBT

The Company’s total indebtedness consisted of the following:

Type	September 30, 2016		December 31, 2015
Notes	$	190,595	$	188,890
Other	18,124		23,020
	208,719		211,910
Less: current maturities	8,619		8,402
Total long-term debt	$	200,100	$	203,508

Senior Secured Notes due 2019

On December 21, 2012, the Company completed a $200,000 offering of the Notes. The Notes were issued at an original issue discount (OID) of 96.567%. The OID was recorded on the Company’s balance sheet as a component of long-term debt, and is being amortized to interest expense over the life of the Notes. As of September 30, 2016 and December 31, 2015, the unamortized OID was $3,870 and $4,581, respectively. Interest on the Notes is due semiannually on June 15 and December 15 of each year. The Company used $123,698 of the proceeds from this issuance to prepay and terminate its previous senior secured credit facility, including accrued and unpaid interest. In addition, the Company used the proceeds to pay fees and expenses of $8,358 related to the Notes offering, which are being amortized to interest expense over the life of the Notes. As of September 30, 2016 and December 31, 2015, the unamortized deferred financing costs were $5,535 and $6,529, respectively.

2012 Credit Facility

Concurrently with the closing of the Notes offering on December 21, 2012, the Company entered into the 2012 Credit Facility. The 2012 Credit Facility provides for a five year, $50,000 revolving credit facility that will expire on December 21, 2017. Borrowings under the 2012 Credit Facility may not exceed a borrowing base, as defined within the 2012 Credit Facility agreement. In addition, the 2012 Credit Facility includes a $10,000 letter of credit sub-facility and a $5,000 swingline loan sub-facility. The Company incurred $1,198 of deferred financing fees related to the 2012 Credit Facility that have been capitalized and are being amortized to interest expense over the life of the 2012 Credit Facility.

The 2012 Credit Facility contains certain financial covenants, and a failure to comply with the financial covenants could adversely impact the Company's available liquidity. Upon the occurrence of a Liquidity Event, at any time when borrowings are outstanding under the facility, the Company will be required to maintain a fixed charge coverage ratio, calculated as of the end of each calendar month for the 12 months then ended, greater than 1.0-to-1.0. A Liquidity Event is defined as the occurrence of (i) an Event of Default, as such term is defined in the 2012 Credit Agreement, or (ii) undrawn availability being less than the greater of (a) $10,000 or (b) an amount equal to 20% of the borrowing base. As of September 30, 2016, the Company's fixed charge coverage ratio was less than 1.0-to-1.0, which, therefore, would require the Company to maintain minimum availability of $10,000 if any amounts were drawn on the 2012 Credit Facility. As of September 30, 2016 and December 31, 2015, there were no borrowings outstanding under the 2012 Credit Facility, and, therefore, the Company was not subject to the requirements of the financial covenants included within the agreement. The calculated available borrowings under the 2012 Credit Facility totaled $14,399 at September 30, 2016, but due to the restrictions imposed as a result of not maintaining the minimum fixed charge coverage ratio, the Company's borrowing availability has been reduced by $10,000 to

11

$4,399. As a result of the decline in availability, on November 4, 2016, the Company provided notification to the administrative agent of its intent to terminate the 2012 Credit Facility effective November 14, 2016.

Other Debt

Other debt consists of miscellaneous debt obligations entered into to finance the acquisition of certain equipment and land. These obligations have various maturities of one to five years and bear interest at rates between 2.99% to 6.50%.

9. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company measures the fair value of assets and liabilities using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—observable inputs such as quoted prices in active markets; Level 2—inputs, other than quoted market prices in active markets, which are observable, either directly or indirectly; and Level 3—valuations derived from valuation techniques in which one or more significant inputs are unobservable. In addition, the Company may use various valuation techniques, including the market approach, using comparable market prices; the income approach, using the present value of future income or cash flow; and the cost approach, using the replacement cost of assets.

The Company’s financial instruments consist of cash equivalents, accounts receivable, cost method investment, long-term debt, and other long-term obligations. For cash equivalents, accounts receivable and other long-term obligations, the carrying amounts approximate fair value due to the short maturity and financial nature of the balances. The fair value of the cost method investment is not estimated, as it is impracticable to do so. The estimated fair market values of the Company’s Notes, which was determined using Level 2 inputs, and long-term obligation to related party, which was determined using Level 3 inputs, are as follows:

	September 30, 2016				December 31, 2015
	Fair Value		Carrying Value		Fair Value		Carrying Value
11.75% Senior Secured Notes due 2019(1)	$	78,500	$	190,595	$	82,000	$	188,890
Long-term obligation to related party	107,788		145,141		94,811		128,809
Total	$	186,288	$	335,736	$	176,811	$	317,699

(1) The carrying value of the Notes is net of the unamortized OID and deferred financing costs as of September 30, 2016 and December 31, 2015, respectively.

The fair value of the Notes is based on quoted market prices, while the fair value of the long-term obligation to related party is based on estimated cash flows discounted to their present value.

10. INCOME TAXES

The Company has not recognized certain income tax benefits, as it does not believe it is more likely than not it will be able to realize its net deferred tax assets. The Company has, therefore, established a valuation allowance against its net deferred tax assets as of September 30, 2016 and December 31, 2015. Based on the anticipated reversals of its deferred tax assets and deferred tax liabilities, the Company has concluded a valuation allowance is necessary only for the excess of deferred tax assets over deferred tax liabilities.

11. EMPLOYEE BENEFIT PLANS

The Company provides certain health care benefits, including the reimbursement of a portion of out-of-pocket costs associated with insurance coverage, to qualifying salaried and hourly retirees and their dependents. Plan coverage for reimbursements will be provided to future hourly and salaried retirees in accordance with the plan document. The Company’s funding policy with respect to the plan is to fund the cost of all postretirement benefits as they are paid.

12

Net periodic postretirement benefit cost included the following components:

	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Service cost for benefits earned	$	229	$	304	$	688	$	912
Interest cost on accumulated postretirement benefit obligation	43		30		129		91
Amortization of prior service cost	24		26		71		78
Net periodic postretirement cost	$	296	$	360	$	888	$	1,081

12. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2016 consisted of the following:

	Postretirement Benefit Plan and Other Employee Benefit Obligations			Accumulated Other Comprehensive Loss
Balance as of December 31, 2015	$	(1,883	)	$	(1,883	)
Amounts reclassified from accumulated other comprehensive loss	231			231
Current period change	—			—
Balance as of September 30, 2016	$	(1,652	)	$	(1,652	)

The following is a summary of reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2016 and 2015:

Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line  Item in the Condensed  Consolidated Statement of Operations	Amounts Reclassified from Accumulated Other Comprehensive Loss For the Three Months Ended September 30,						Amounts Reclassified from Accumulated Other Comprehensive Loss For the Nine Months Ended September 30,
		2016			2015			2016			2015
Amortization of prior service cost associated with postretirement benefit plan and other employee benefit obligations	Cost of coal sales	$	(101	)	$	(105	)	$	(306	)	$	(314	)
Amortization of net actuarial gain associated with other employee benefit obligations	Cost of coal sales	25			—			75			—
		(76		)	(105		)	(231		)	(314		)
Income taxes		—			—			—			—
Total reclassifications		$	(76	)	$	(105	)	$	(231	)	$	(314	)

13. CLOSURE OF LEWIS CREEK UNDERGROUND MINE

The Company’s Lewis Creek underground mine, which produced coal from the West Kentucky #9 seam, experienced significant operating inefficiencies due to the geological conditions of the portion of the reserve being mined. As a result of the ongoing mining difficulties, a final decision was made in August 2014 not to continue advancing under the existing mine plan, but rather to retreat and mine only in the eastern portion of the reserve.

The Company completed mining of the Lewis Creek underground mine in March 2015 and has extracted the equipment, which will be utilized at its other mining operations in the future. As a result of the closure, the Company accelerated depreciation of the remaining net book value of the capitalized costs associated with the original development of the mine. Total expense recognized during the first quarter of 2015 to write-off the remaining asset was approximately $6,318, which was included as a component of "depreciation, depletion, and amortization" in the unaudited condensed consolidated statement of operations for the nine months ended September 30, 2015.

13

14. COMMITMENTS AND CONTINGENCIES

The Company is subject to various market, operational, financial, regulatory, and legislative risks. Numerous federal, state, and local governmental permits and approvals are required for mining operations. Federal and state regulations require regular monitoring of mines and other facilities to document compliance. Monetary penalties of $1,141 and $901 related to Mine Safety and Health Administration (MSHA) fines were accrued as of September 30, 2016 and December 31, 2015, respectively.

The Company is involved from time to time in various legal matters arising in the ordinary course of business. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s consolidated cash flows, results of operations or financial condition. A summary of the significant legal matters is below.

Litigation

On July 20, 2016 the Company was notified by an Assistant U. S. Attorney for the Western District of Kentucky of an investigation into potential charges against Armstrong Coal Company, Inc., a wholly-owned subsidiary of the Company, and one or more of its current and former employees arising from alleged inaccurate respirable dust sampling at certain of the Company's underground mines. In January 2014, MSHA issued a 104(d) citation to the Parkway underground mine related to inaccurate respirable dust sampling, which the Company has challenged. In addition, a Parkway underground mine employee was terminated. The impact of any charges against the Company or its current and former employees cannot be determined at this time, and we intend to vigorously defend any such charges should they be pursued.

Coal Sales Contracts

The Company has historically sold the majority of its coal under multi-year supply agreements of varying duration. These contracts typically have specific volume and pricing arrangements for each year of the agreement, which allows customers to secure a supply for their future needs and provides the Company with greater predictability of sales volume and sales prices. Quantities sold under some of these contracts may vary from year to year within certain limits at the option of the customer or the Company. The remaining terms of the Company’s long-term contracts range from one to four years. The Company, via contractual agreements, has committed volumes of sales in 2016 of approximately 5.9 million tons.

15. OTHER, NET

During the second quarter 2015, the Company received a refund for a portion of the Kentucky sales and use taxes paid on the purchase of certain energy and energy producing fuels for the period of 2008 through 2013. The refund, including interest, totaled $4,482, which is included in "other, net" in the condensed consolidated statement of operations for the nine months ended September 30, 2015.

16. SUPPLEMENTAL GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

In accordance with the indenture governing the Notes, certain wholly-owned subsidiaries of the Company (each, a Guarantor Subsidiary) have fully and unconditionally guaranteed the Notes, on a joint and several basis, subject to certain customary release provisions. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management believes that such information is not material to the holders of the Notes. The following historical financial statement information is provided for the Guarantor Subsidiaries. The non-guarantor subsidiaries are considered to be “minor” as the term is defined in Rule 3-10 of Regulation S-X promulgated by the SEC, and the financial position, results of operations, and cash flows of the non-guarantor subsidiaries are, therefore, included in the condensed financial data of the Guarantor Subsidiaries.

14

Unaudited Supplemental Condensed Consolidating Balance Sheets

	September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	62,690		$	—		$	62,690
Accounts receivable	—			15,182			—			15,182
Inventories	—			10,053			—			10,053
Prepaid and other assets	739			1,893			—			2,632
Total current assets	739			89,818			—			90,557
Property, plant, equipment, and mine development, net	10,110			232,124			—			242,234
Investments	—			2,794			—			2,794
Investments in subsidiaries	53,511			—			(53,511		)	—
Intercompany receivables	58,937			(58,937		)	—			—
Other non-current assets	612			13,607			—			14,219
Total assets	$	123,909		$	279,406		$	(53,511	)	$	349,804
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)
Current liabilities:
Accounts payable	$	50		$	16,942		$	—		$	16,992
Accrued and other liabilities	7,124			11,454			—			18,578
Current portion of capital lease obligations	—			775			—			775
Current maturities of long-term debt	—			8,619			—			8,619
Total current liabilities	7,174			37,790			—			44,964
Long-term debt, less current maturities	190,595			9,505			—			200,100
Long-term obligation to related party	—			145,141			—			145,141
Related party payables, net	(708		)	11,074			—			10,366
Asset retirement obligations	—			14,855			—			14,855
Other non-current liabilities	110			7,507			—			7,617
Total liabilities	197,171			225,872			—			423,043
Stockholders’ equity/(deficit):
Armstrong Energy, Inc.’s equity/(deficit)	(73,262		)	53,511			(53,511		)	(73,262		)
Non-controlling interest	—			23			—			23
Total stockholders’ equity/(deficit)	(73,262		)	53,534			(53,511		)	(73,239		)
Total liabilities and stockholders’ equity/(deficit)	$	123,909		$	279,406		$	(53,511	)	$	349,804

15

Supplemental Condensed Consolidating Balance Sheets

	December 31, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	67,617		$	—		$	67,617
Accounts receivable	—			14,270			—			14,270
Inventories	—			14,562			—			14,562
Prepaid and other assets	110			1,842			—			1,952
Total current assets	110			98,291			—			98,401
Property, plant, equipment, and mine development, net	10,467			250,931			—			261,398
Investments	—			3,525			—			3,525
Investments in subsidiaries	69,429			—			(69,429		)	—
Intercompany receivables	70,347			(70,347		)	—			—
Other non-current assets	912			16,475			—			17,387
Total assets	$	151,265		$	298,875		$	(69,429	)	$	380,711
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)
Current liabilities:
Accounts payable	$	177		$	22,378		$	—		$	22,555
Accrued and other liabilities	1,771			11,274			—			13,045
Current portion of capital lease obligations	—			1,943			—			1,943
Current maturities of long-term debt	—			8,402			—			8,402
Total current liabilities	1,948			43,997			—			45,945
Long-term debt, less current maturities	188,890			14,618			—			203,508
Long-term obligation to related party	—			128,809			—			128,809
Related party payables, net	(4,411		)	20,824			—			16,413
Asset retirement obligations	—			13,990			—			13,990
Long-term portion of capital lease obligations	—			555			—			555
Other non-current liabilities	142			6,630			—			6,772
Total liabilities	186,569			229,423			—			415,992
Stockholders’ equity/(deficit):
Armstrong Energy, Inc.’s equity/(deficit)	(35,304		)	69,429			(69,429		)	(35,304		)
Non-controlling interest	—			23			—			23
Total stockholders’ equity/(deficit)	(35,304		)	69,452			(69,429		)	(35,281		)
Total liabilities and stockholders’ equity/(deficit)	$	151,265		$	298,875		$	(69,429	)	$	380,711

16

Unaudited Supplemental Condensed Consolidating Statements of Operations

	Three Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	65,388		$	—	$	65,388
Costs and expenses:
Operating costs and expenses	—			52,357			—		52,357
Production royalty to related party	—			1,866			—		1,866
Depreciation, depletion, and amortization	303			7,433			—		7,736
Asset retirement obligation expenses	—			350			—		350
Asset impairment and restructuring charges	—			—			—		—
General and administrative expenses	393			2,706			—		3,099
Operating loss	(696		)	676			—		(20		)
Other income (expense):
Interest expense, net	(6,412		)	(2,386		)	—		(8,798		)
Other, net	(626		)	(280		)	—		(906		)
Loss from investment in subsidiaries	(1,990		)	—			1,990		—
Loss before income taxes	(9,724		)	(1,990		)	1,990		(9,724		)
Income taxes	—			—			—		—
Net loss	(9,724		)	(1,990		)	1,990		(9,724		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(9,724	)	$	(1,990	)	$	1,990	$	(9,724	)

	Three Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	89,206		$	—	$	89,206
Costs and expenses:
Operating costs and expenses	—			69,843			—		69,843
Production royalty to related party	—			1,980			—		1,980
Depreciation, depletion, and amortization	518			10,472			—		10,990
Asset retirement obligation expenses	—			756			—		756
Asset impairment and restructuring charges	4,490			134,189					138,679
General and administrative expenses	424			3,217			—		3,641
Operating loss	(5,432		)	(131,251		)	—		(136,683		)
Other income (expense):
Interest expense, net	(6,343		)	(2,860		)	—		(9,203		)
Other, net	—			154			—		154
Income from investment in subsidiaries	(134,011		)	—			134,011		—
Loss before income taxes	(145,786		)	(133,957		)	134,011		(145,732		)
Income taxes	—			(54		)	—		(54		)
Net loss	(145,786		)	(134,011		)	134,011		(145,786		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(145,786	)	$	(134,011	)	$	134,011	$	(145,786	)

17

Unaudited Supplemental Condensed Consolidating Statements of Operations

	Nine Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	186,141		$	—	$	186,141
Costs and expenses:
Operating costs and expenses	—			155,671			—		155,671
Production royalty to related party	—			5,206			—		5,206
Depreciation, depletion, and amortization	908			21,986			—		22,894
Asset retirement obligation expenses	—			1,019			—		1,019
Asset impairment and restructuring charges	—			3,381			—		3,381
General and administrative expenses	1,153			8,386			—		9,539
Operating loss	(2,061		)	(9,508		)	—		(11,569		)
Other income (expense):
Interest expense, net	(19,111		)	(6,344		)	—		(25,455		)
Other, net	(1,077		)	51			—		(1,026		)
Loss from investment in subsidiaries	(15,918		)	—			15,918		—
Loss before income taxes	(38,167		)	(15,801		)	15,918		(38,050		)
Income taxes	—			(117		)	—		(117		)
Net loss	(38,167		)	(15,918		)	15,918		(38,167		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(38,167	)	$	(15,918	)	$	15,918	$	(38,167	)

	Nine Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	278,680		$	—	$	278,680
Costs and expenses:
Operating costs and expenses	—			218,826			—		218,826
Production royalty to related party	—			6,034			—		6,034
Depreciation, depletion, and amortization	1,530			36,869			—		38,399
Asset retirement obligation expenses	—			2,340			—		2,340
Asset impairment and restructuring charges	4,490			134,189					138,679
General and administrative expenses	1,206			11,357			—		12,563
Operating loss	(7,226		)	(130,935		)	—		(138,161		)
Other income (expense):
Interest expense, net	(17,620		)	(8,830		)	—		(26,450		)
Other, net	—			4,778			—		4,778
Loss from investment in subsidiaries	(135,300		)	—			135,300		—
Loss before income taxes	(160,146		)	(134,987		)	135,300		(159,833		)
Income taxes	—			(313		)	—		(313		)
Net loss	(160,146		)	(135,300		)	135,300		(160,146		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(160,146	)	$	(135,300	)	$	135,300	$	(160,146	)

18

Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income (Loss)

	Three Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(9,724	)	$	(1,990	)	$	1,990	$	(9,724	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			76			—		76
Other comprehensive income	—			76			—		76
Comprehensive loss	(9,724		)	(1,914		)	1,990		(9,648		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(9,724	)	$	(1,914	)	$	1,990	$	(9,648	)

	Three Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(145,786	)	$	(134,011	)	$	134,011	$	(145,786	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			105			—		105
Other comprehensive income	—			105			—		105
Comprehensive loss	(145,786		)	(133,906		)	134,011		(145,681		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(145,786	)	$	(133,906	)	$	134,011	$	(145,681	)

	Nine Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(38,167	)	$	(15,918	)	$	15,918	$	(38,167	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			231			—		231
Other comprehensive income	—			231			—		231
Comprehensive loss	(38,167		)	(15,687		)	15,918		(37,936		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(38,167	)	$	(15,687	)	$	15,918	$	(37,936	)

19

Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income (Loss)

	Nine Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(160,146	)	$	(135,300	)	$	135,300	$	(160,146	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			314			—		314
Other comprehensive income	—			314			—		314
Comprehensive loss	(160,146		)	(134,986		)	135,300		(159,832		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(160,146	)	$	(134,986	)	$	135,300	$	(159,832	)

20

Unaudited Supplemental Condensed Consolidating Statements of Cash Flows

	Nine Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Consolidated
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities:	$	(10,857	)	$	15,766		$	4,909
Cash Flows from Investing Activities:
Investment in property, plant, equipment, and mine development	(552		)	(1,579		)	(2,131		)
Proceeds from partial disposal of investment in equity affiliate	—			500			500
Net cash used in investing activities	(552		)	(1,079		)	(1,631		)
Cash Flows from Financing Activities:
Payment on capital lease obligations	—			(1,723		)	(1,723		)
Payment of long-term debt	—			(6,482		)	(6,482		)
Transactions with affiliates, net	11,409			(11,409		)	—
Net cash provided by (used in) financing activities	11,409			(19,614		)	(8,205		)
Net change in cash and cash equivalents	—			(4,927		)	(4,927		)
Cash and cash equivalents, at the beginning of the period	—			67,617			67,617
Cash and cash equivalents, at the end of the period	$	—		$	62,690		$	62,690

	Nine Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Consolidated
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities:	$	(13,972	)	$	49,908		$	35,936
Cash Flows from Investing Activities:
Investment in property, plant, equipment, and mine development	(1,864		)	(15,017		)	(16,881		)
Proceeds from disposal of fixed assets	—			475			475
Net cash used in investing activities	(1,864		)	(14,542		)	(16,406		)
Cash Flows from Financing Activities:
Payment on capital lease obligations	—			(2,017		)	(2,017		)
Payment of long-term debt	—			(4,470		)	(4,470		)
Transactions with affiliates, net	15,836			(15,836		)	—
Net cash provided by (used in) financing activities	15,836			(22,323		)	(6,487		)
Net change in cash and cash equivalents	—			13,043			13,043
Cash and cash equivalents, at the beginning of the period	—			59,518			59,518
Cash and cash equivalents, at the end of the period	$	—		$	72,561		$	72,561

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and related notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the SEC) on March 23, 2016.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Various statements contained in this quarterly report, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income and capital spending. Our forward-looking statements are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this quarterly report speak only as of the date of this quarterly report; we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, contingencies and uncertainties include, but are not limited to, the following:

• liquidity constraints and our ability to service our outstanding indebtedness;

• our ability to comply with the restrictions imposed by our revolving credit facility, the indenture governing our notes and other financing arrangements;

• market demand for coal and electricity;

• geologic conditions, weather and other inherent risks of coal mining that are beyond our control;

• competition within our industry and with producers of competing energy sources;

• excess production and production capacity;

• our ability to acquire or develop coal reserves in an economically feasible manner;

• inaccuracies in our estimates of our coal reserves;

• availability and price of mining and other industrial supplies, including steel-based supplies, diesel fuel, rubber tires and explosives;

• the continued weakness in global economic conditions or in any industry in which our customers operate, or sustained uncertainty in financial markets, which may cause conditions we cannot predict;

• coal users switching to other fuels in order to comply with various environmental standards related to coal combustion;

• volatility in the capital and credit markets;

• availability of skilled employees and other workforce factors;

• our ability to collect payments from our customers;

• defects in title or the loss of a leasehold interest;

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• railroad, barge, truck and other transportation performance costs;

• our ability to secure new coal supply arrangements or to renew existing coal supply arrangements;

• the deferral of contracted shipments of coal by our customers;

• our ability to obtain or renew surety bonds on acceptable terms;

• our ability to obtain and renew various permits, including permits authorizing the disposition of certain mining waste;

• existing and future legislation and regulations affecting both our coal mining operations and our customers’ coal usage, governmental policies and taxes, including those aimed at reducing emissions of elements such as mercury, sulfur dioxide, nitrogen oxides, or toxic gases, such as hydrogen chloride, particulate matter or greenhouse gases;

• the accuracy of our estimates of reclamation and other mine closure obligations;

• our ability to attract and retain key management personnel; and

• efforts to organize our workforce for representation under a collective bargaining agreement.

When considering these forward-looking statements, you should keep in mind the cautionary statements in this document and in our other SEC filings, including the more detailed discussion of these factors and other factors that could affect our results included in Item 1A, “Risk Factors,” in our Annual Report on Form 10-K filed with the SEC on March 23, 2016, as may be updated in subsequent filings with the SEC.

Overview

Armstrong Energy, Inc. (together with its subsidiaries, we or the Company) is a producer of low chlorine, high sulfur thermal coal from the Illinois Basin, with both surface and underground mines. We market our coal primarily to proximate and investment-grade electric utility companies as fuel for their steam-powered generators. Based on 2015 production, we are the fifth largest producer in the Illinois Basin and the second largest in Western Kentucky. We were formed in 2006 to acquire and develop a large coal reserve holding. We commenced production in the second quarter of 2008 and currently operate six mines, including three surface and three underground. We control approximately 554 million tons of proven and probable coal reserves. We also own and operate three coal processing plants, which support our mining operations. From our reserves, we mine coal from multiple seams that, in combination with our coal processing facilities, enhance our ability to meet customer requirements for blends of coal with different characteristics. The locations of our coal reserves and operations, adjacent to the Green River, together with our river dock coal handling and rail loadout facilities, allow us to optimize coal blending and handling, and provide our customers with rail, barge and truck transportation options.

We market our coal primarily to large utilities with coal-fired, base-load, scrubbed power plants under multi-year coal supply agreements. Our multi-year coal supply agreements usually have specific volume and pricing arrangements for each year of the agreement. These agreements allow customers to secure a supply for their future needs and provide us with greater predictability of sales volume and sales prices. At September 30, 2016, we had coal supply agreements with terms ranging from one to four years. As of September 30, 2016, we are contractually committed to sell approximately 5.9 million tons of coal in 2016.

Recent Developments

Review of Strategic Alternatives

During the second quarter of 2016, our board of directors authorized an exploration of strategic alternatives aimed at strengthening our balance sheet and improving our long-term capital structure. We have retained MAEVA Group, LLC as our financial adviser and Kirkland & Ellis LLP as our legal adviser to assist the board of directors and management with the strategic review process. We do not expect to provide any additional information on this process unless and until deemed appropriate or necessary. There is no assurance that this exploration will result in any strategic alternatives being announced or executed. For the three and nine months ended September 30, 2016, the Company has incurred expenses totaling $0.6 million and $1.1 million, respectively, associated with the strategic review process, which is included as a component of "other, net" in the unaudited condensed consolidated statements of operations.

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Production Rationalization

On April 22, 2016, Worker Adjustment and Retraining Notification (WARN) Act notices were delivered to employees of one of our mining operations and related preparation plant in anticipation of closing the Parkway underground mine. During the second quarter of 2016, the decision was made to continue operating the Parkway underground mine until all economically recoverable coal was depleted and, in October 2016, the mine ultimately depleted its economically recoverable reserves and ceased production.

Results of Operations

Non-GAAP Financial Information

Adjusted EBITDA, as presented in this Quarterly Report on Form 10-Q, is a supplemental measure of our performance that is not required by, or presented in accordance with, U.S. generally accepted accounting principles (U.S. GAAP). It is not a measurement of our financial performance under U.S. GAAP and should not be considered as an alternative to net income (loss) or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flows from operating activities as measures of our liquidity.

We define “Adjusted EBITDA” as net income (loss) before deducting net interest expense, income taxes, depreciation, depletion and amortization, asset retirement obligation expenses, costs incurred evaluating strategic alternatives, non-cash production royalty to related party, asset impairment and restructuring charges, loss on settlement of interest rate swap, loss on deferment of equity offering, non-cash stock compensation expense (income), non-cash employee benefit expense, non-cash charges related to non-recourse notes, gain on deconsolidation, and (gain) loss on extinguishment of debt. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers and analysts calculate Adjusted EBITDA in the same manner. We present Adjusted EBITDA because we consider it an important supplemental measure of our performance and believe it is useful to an investor in evaluating our Company. We also include a quantitative reconciliation of Adjusted EBITDA to the most directly comparable U.S. GAAP financial performance measure, which is net income (loss), in the sections that follow.

Three Months Ended September 30, 2016 Compared to Three Months Ended September 30, 2015

Summary

	Three Months Ended September 30,						Change
	2016			2015			Amount			Percentage
	(In thousands, except per ton amounts)
Tons of coal sold	1,523			1,930			(407		)	(21.1	)%
Total revenue	$	65,388		$	89,206		$	(23,818	)	(26.7	)%
Average sales price per ton	$	42.94		$	46.22		$	(3.28	)	(7.1	)%
Cost of coal sales1	$	52,357		$	69,843		$	17,486		25.0	%
Average cost of sales per ton1	$	34.38		$	36.19		$	1.81		5.0	%
Net loss	$	(9,724	)	$	(145,786	)	$	136,062		(93.3	)%
Adjusted EBITDA2	$	9,760		$	16,126		$	(6,366	)	(39.5	)%

¹  Includes revenue-based production taxes and royalties; excludes depreciation, depletion, and amortization, asset retirement obligation expenses, and general and administrative costs.

²  Non-GAAP measure; please see definition above and reconciliation below.

Revenue

Our coal sales revenue for the three months ended September 30, 2016 decreased by $23.8 million, or 26.7%, to $65.4 million, as compared to $89.2 million for the three months ended September 30, 2015. This decrease is attributable to an unfavorable volume variance of approximately $18.8 million year-over-year due to a decline in customer demand resulting in lower contracted amounts in the current year and an unfavorable price variance of approximately $5.0 million due to the renewal of sales contracts at less favorable prices, as well as unfavorable transportation adjustments included as a component of the price in certain of our long-term coal supply agreements as a result of declining diesel prices, as compared to the three months ended September 30, 2015.

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Cost of Coal Sales

Cost of coal sales decreased 25.0% to $52.4 million in the three months ended September 30, 2016, from $69.8 million in the same period of 2015. The decline is primarily attributable to selling 0.4 million tons less. On a per ton basis, our cost of coal sales decreased during the three months ended September 30, 2016, compared to the same period of 2015, from $36.19 per ton to $34.38 per ton. This decrease in per ton amount is primarily due to lower diesel fuel costs and lower blasting costs at our surface operations due to a higher amount of unconsolidated overburden, as well as lower equipment rental and equipment repair expenses, as compared to the prior year quarter.

Production Royalty to Related Party

Production royalty to related party declined $0.1 million, or 5.8%, to $1.9 million during the three months ended September 30, 2016, as compared to the same period of 2015. This amount relates to production royalties earned by our affiliate, Thoroughbred, from sales originating from our Kronos underground mine (where the mineral reserves are leased directly from Thoroughbred). The reduction is primarily due to sales volume declines experienced at our Kronos underground mine during the current quarter, partially offset by higher average sales prices in the current quarter, as compared to the same period of 2015, due to a favorable customer mix. See Note 7, "Related Party Transactions," to our unaudited condensed consolidated financial statements for further discussion related to Thoroughbred.

Depreciation, Depletion and Amortization

Depreciation, depletion, and amortization (DD&A) expense decreased by $3.3 million, or 29.6%, to $7.7 million during the three months ended September 30, 2016, as compared to the same period of 2015. The decrease is primarily due to a reduction in depletion in the current year as a result of lower production levels and a reduction in the asset base due to the impairment charge recognized in the third quarter of 2015.

Asset Retirement Obligation Expenses

Asset retirement obligation expenses decreased by $0.4 million, or 53.7%, to $0.4 million in the three months ended September 30, 2016, as compared to the same period of 2015. The decrease is primarily attributable to changes in asset retirement cost estimates based on revisions to discount rates, reserve valuations and projected mine lives.

Asset Impairment and Restructuring Charges

During the three months ended September 30, 2016 and 2015, we recognized asset impairment and restructuring charges of zero and $138.7 million, respectively. The prior year charge was primarily associated with the write-down of the carrying value of our long-lived assets to their estimated fair value. See Note 2, "Asset Impairment and Restructuring Charges," to our unaudited condensed consolidated financial statements for further discussion of the prior year charge.

General and Administrative Expenses

General and administrative (G&A) expenses were $3.1 million for the three months ended September 30, 2016, which was $0.5 million, or 14.9%, lower than the three months endedSeptember 30, 2015. The decrease in the three months ended September 30, 2016, as compared to the same period of 2015, is due primarily to lower expenses for labor and benefits ($0.4 million), insurance costs ($0.2 million), and stock compensation expense ($0.1 million), partially offset by higher legal and other professional fees ($0.2 million).

Interest Expense, Net

Interest expense, net is derived from the following components:`

	Three Months Ended September 30,
	2016			2015
	(In thousands)
11.75% Senior Secured Notes due 2019	$	5,875		$	5,875
Revolving Credit Facility	—			—
Long-term obligation to related party	2,120			2,675
Other, net	944			794
Capitalized interest	(141		)	(141		)
Total	$	8,798		$	9,203

Interest expense, net was $8.8 million for the three months ended September 30, 2016, as compared to $9.2 million for the three months ended September 30, 2015. The decrease is principally attributable to a decrease in the effective interest rate

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on the long-term obligation to related party due to revisions in the mine plan at December 31, 2015, partially offset by the increase in the average principal balance of the long-term obligation to related party from the completion of the reserve transfer to Thoroughbred in June 2016, which increased the principal balance on the obligation by $16.4 million.

Other, Net

Other, net for the three months ended September 30, 2016 was a charge of $0.9 million, as compared to income of $0.2 million for the three months ended September 30, 2015. The decrease is primarily due to costs incurred associated with evaluating strategic alternatives of $0.6 million and the $0.3 million loss on the partial disposal of the Company's investment in Thoroughbred, as discussed in Note 7, "Related Party Transactions," to our unaudited condensed consolidated financial statements.

Net Loss

Net loss for the three months ended September 30, 2016 was $9.7 million, as compared to net loss of $145.8 million for the same period of 2015. The variance is primarily driven by the asset impairment and restructuring charges of $138.7 million recognized in the prior year quarter. Excluding the impact of the prior year asset impairment and restructuring charges, the net loss increased $2.6 million due to a decline in gross margin year-over-year, partially offset by lower DD&A and G&A expenses during the three months ended September 30, 2016.

Adjusted EBITDA

The following table reconciles Adjusted EBITDA to net loss, the most directly comparable U.S. GAAP measure:

	Three Months Ended September 30,
	2016			2015
	(In thousands)
Net loss	$	(9,724	)	$	(145,786	)
Depreciation, depletion, and amortization	7,736			10,990
Asset retirement obligation expenses	350			756
Non-cash production royalty to related party	1,866			1,980
Interest expense, net	8,798			9,203
Income taxes	—			54
Asset impairment charges	—			138,679
Costs incurred evaluating strategic alternatives	626			—
Non-cash employee benefit expense	105			167
Non-cash stock compensation expense	3			83
Adjusted EBITDA	$	9,760		$	16,126

Our Adjusted EBITDA for the three months ended September 30, 2016 and 2015 was $9.8 million and $16.1 million, respectively. The decrease in Adjusted EBITDA resulted primarily from a decline in gross margin of $6.3 million resulting from lower sales volume and average pricing in the three months ended September 30, 2016, as compared to the same period of 2015, partially offset by lower G&A expenses, exclusive of stock compensation expense, experienced in the current quarter.

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Nine Months Ended September 30, 2016 Compared to Nine Months Ended September 30, 2015

Summary

	Nine Months Ended September 30,						Change
	2016			2015			Amount			Percentage
	(In thousands, except per ton amounts)
Tons of coal sold	4,361			5,935			(1,574		)	(26.5	)%
Total revenue	$	186,141		$	278,680		$	(92,539	)	(33.2	)%
Average sales price per ton	$	42.68		$	46.96		$	(4.28	)	(9.1	)%
Cost of coal sales1	$	155,671		$	218,826		$	63,155		28.9	%
Average cost of sales per ton1	$	35.70		$	36.87		$	1.17		3.2	%
Net loss	$	(38,167	)	$	(160,146	)	$	121,979		76.2	%
Adjusted EBITDA2	$	21,274		$	52,794		$	(31,520	)	(59.7	)%

¹  Includes revenue-based production taxes and royalties; excludes depreciation, depletion, and amortization, asset retirement obligation expenses, and general and administrative costs.

²  Non-GAAP measure; please see definition above and reconciliation below.

Revenue

Our coal sales revenue for the nine months ended September 30, 2016 decreased by $92.5 million, or 33.2%, to $186.1 million, as compared to $278.7 million for the nine months ended September 30, 2015. This decrease is primarily attributable to an unfavorable volume variance of approximately $73.9 million year-over-year due to a continued decline in customer demand resulting in lower contracted amounts in the current year and an unfavorable price variance of approximately $18.6 million due to the renewal of sales contracts at less favorable prices, as well as unfavorable transportation adjustments included as a component of the price in certain of our long-term coal supply agreements as a result of declining diesel prices, as compared to the nine months ended September 30, 2015.

Cost of Coal Sales

Cost of coal sales decreased 28.9% to $155.7 million in the nine months ended September 30, 2016, from $218.8 million in the same period of 2015. The decline is primarily attributable to selling 1.6 million tons less and a reduction in the operating cost per ton during the nine months ended September 30, 2016, as compared to the same period of 2015. On a per ton basis, our cost of coal sales decreased during the nine months ended September 30, 2016, compared to the same period of 2015, from $36.87 per ton to $35.70 per ton. This decrease in the per ton amounts is primarily due to the closure of our Lewis Creek underground mine in the first quarter of 2015, as this was a high cost operation due to the poor geological conditions of the mine, lower repair and maintenance costs at our underground mines, lower diesel fuel costs, and lower blasting costs at our surface operations due to a higher amount of unconsolidated overburden.

Production Royalty to Related Party

Production royalty to related party declined $0.8 million, or 13.7%, to $5.2 million during the nine months ended September 30, 2016, as compared to the same period of 2015. This amount relates to production royalties earned by our affiliate, Thoroughbred, from sales originating from our Kronos underground mine (where the mineral reserves are leased directly from Thoroughbred). The reduction is primarily due to sales volume declines experienced at our Kronos underground mine during the current year, partially offset by higher average sales prices in the current year due to customer mix.

Depreciation, Depletion and Amortization

DD&A expense decreased by $15.5 million, or 40.4%, to $22.9 million during the nine months ended September 30, 2016, as compared to the same period of 2015. The decrease is primarily due to the accelerated depreciation in the prior year of the capitalized mine development costs associated with the Lewis Creek underground mine resulting from the closure of the mine in the first quarter of 2015, a reduction in depletion in the current year as a result of lower production levels, and a reduction in the asset base due to the impairment charge recognized in the third quarter of 2015.

Asset Retirement Obligation Expenses

Asset retirement obligation expenses decreased by $1.3 million, or 56.5%, to $1.0 million in the nine months ended September 30, 2016, as compared to the same period of 2015. The decrease is primarily attributable to changes in asset retirement cost estimates based on revisions to discount rates, reserve valuations and projected mine lives.

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Asset Impairment and Restructuring Charges

During the nine months ended September 30, 2016 and 2015, we recognized asset impairment and restructuring charges of $3.4 million and $138.7 million, respectively. The current year charge related to certain advance royalties that could no longer be recouped. The prior year charge was primarily associated with the write-down of the carrying value of our long-lived assets to their estimated fair value. See Note 2, "Asset Impairment and Restructuring Charges," to our unaudited condensed consolidated financial statements for further discussion.

General and Administrative Expenses

G&A expenses were $9.5 million for the nine months ended September 30, 2016, which was $3.0 million, or 24.1%, lower than the nine months ended September 30, 2015. The decrease in the nine months ended September 30, 2016, as compared to the same period of 2015, is due primarily to lower expenses for legal and professional services ($0.7 million), labor and benefits ($1.1 million), non-income related taxes ($0.3 million) and insurance costs ($0.6 million).

Interest Expense, Net

Interest expense, net is derived from the following components:

	Nine Months Ended September 30,
	2016			2015
	(In thousands)
11.75% Senior Secured Notes due 2019	$	17,625		$	17,625
Revolving Credit Facility	—			—
Long-term obligation to related party	5,474			8,311
Other, net	2,840			2,291
Capitalized interest	(484		)	(1,777		)
Total	$	25,455		$	26,450

Interest expense, net was $25.5 million for the nine months ended September 30, 2016, as compared to $26.5 million for the nine months ended September 30, 2015. The decrease is principally attributable to a decrease in the effective interest rate on the long-term obligation to related party due to revisions in the mine plan at December 31, 2015, partially offset by the increase in the average principal balance of the long-term obligation to related party from the completion of the reserve transfers to Thoroughbred in May 2015 and June 2016, which increased the principal balance on the obligation by $18.2 million and $16.4 million, respectively. In addition, partially offsetting the decline in interest expense is the recognition of a lesser amount of capitalized interest and an increase in interest expense associated with other long-term debt due to an increase in the average outstanding obligation in the current year, as compared to the same period of 2015.

Other, Net

Other, net for the nine months ended September 30, 2016 was a charge of $1.0 million, as compared to income of $4.8 million for the same period of 2015. The decrease is primarily due to a $4.5 million refund during the second quarter of 2015 for a portion of Kentucky sales and use taxes paid on the purchase of certain energy and energy producing fuels for the period of 2008 through 2013. In addition, for the nine months ended September 30, 2016, we recognized costs associated with evaluating strategic alternatives of $1.1 million and incurred a loss on the partial disposal of our equity investment in Thoroughbred of $0.3 million.

Net Loss

Net loss for the nine months ended September 30, 2016 was $38.2 million, as compared to a net loss of $160.1 million for the same period of 2015. The variance is driven primarily by the asset impairment and restructuring charge of $138.7 million taken in the prior year. Excluding the impact of the prior year asset impairment and restructuring charge, net loss increased by $16.7 million. The variance is driven by a decline in gross margin in the current year, the impairment charge recognized in the second quarter of 2016, and the refund in the second quarter of 2015 of certain previously paid Kentucky sales and use taxes, partially offset by lower DD&A and G&A expenses in the current year.

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Adjusted EBITDA

The following table reconciles Adjusted EBITDA to net loss, the most directly comparable U.S. GAAP measure:

	Nine Months Ended September 30,
	2016			2015
	(In thousands)
Net loss	$	(38,167	)	$	(160,146	)
Depreciation, depletion, and amortization	22,894			38,399
Asset retirement obligation expenses	1,019			2,340
Non-cash production royalty to related party	5,206			6,034
Interest expense, net	25,455			26,450
Income taxes	117			313
Asset impairment charges	3,381			138,679
Costs incurred evaluating strategic alternatives	1,077			—
Non-cash employee benefit expense	314			501
Non-cash stock compensation (income) expense	(22		)	224
Adjusted EBITDA	$	21,274		$	52,794

Our Adjusted EBITDA for the nine months ended September 30, 2016 was $21.3 million, as compared to $52.8 million for the nine months ended September 30, 2015. The decrease in Adjusted EBITDA resulted primarily from a decline in gross margin of $29.4 million resulting from lower sales volume and average pricing in the nine months ended September 30, 2016, as compared to the same period of 2015 and the refund in the second quarter of 2015 of certain previously paid Kentucky sales and use taxes. Such reduction was partially offset by lower G&A expenses, exclusive of stock compensation expense, experienced in the current year.

Liquidity and Capital Resources

Liquidity

Our business is capital intensive and requires substantial capital expenditures for purchasing, upgrading and maintaining equipment used in mining our reserves, as well as complying with applicable environmental laws and regulations. Our principal liquidity requirements are to finance current operations, fund capital expenditures, including acquisitions from time to time, reclamation obligations, and to service our debt. Historically, our primary sources of liquidity to meet these needs have been cash generated by our operations, and to a lesser extent, borrowings under our credit facilities and contributions from our equity holders.

On December 21, 2012, we completed a $200.0 million offering of 11.75% senior secured notes due 2019 (the Notes) and received proceeds of $193.1 million, as the Notes were issued at an original issue discount of 96.567%. Interest on the Notes is due semiannually on June 15 and December 15 of each year. In connection with the offering, we prepaid and terminated our then existing senior secured credit facility. In addition, we entered into a new asset-based revolving credit facility, which provides for revolving borrowings of up to $50.0 million (the 2012 Credit Facility).

The principal indicators of our liquidity are our cash on hand and availability under the 2012 Credit Facility. The 2012 Credit Facility contains certain financial covenants, and a failure to comply with the financial covenants could adversely impact the Company's available liquidity. Upon the occurrence of a Liquidity Event, at any time when borrowings are outstanding under the facility, we will be required to maintain a fixed charge coverage ratio, calculated as of the end of each calendar month for the 12 months then ended, greater than 1.0-to-1.0. A Liquidity Event is defined as the occurrence of (i) an Event of Default, as such term is defined in the 2012 Credit Agreement, or (ii) undrawn availability being less than the greater of (a) $10.0 million or (b) an amount equal to 20% of the borrowing base. As of September 30, 2016, our fixed charge coverage ratio was less than 1.0-to-1.0, which, therefore, would require us to maintain minimum availability of $10.0 million if any amounts were drawn on the 2012 Credit Facility. As of September 30, 2016 and December 31, 2015, there were no borrowings outstanding under the 2012 Credit Facility and, therefore, we were not subject to the requirements of the financial covenants included within the agreement. The calculated available borrowings under the 2012 Credit Facility totaled $14.4 million at September 30, 2016, but due to the restrictions imposed as a result of not maintaining the minimum fixed charge coverage ratio, our borrowing availability has been reduced by $10.0 million to $4.4 million. As a result of the decline in availability, on November 4, 2016, we provided notification to the administrative agent of our intent to terminate the 2012 Credit Facility effective November 14, 2016.

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As of September 30, 2016, our total available liquidity was $67.1 million, comprised of cash on hand of $62.7 million and $4.4 million available under the 2012 Credit Facility. As of December 31, 2015, our available liquidity was $84.3 million.

As a result of the weak market conditions and depressed coal prices, we have undertaken steps to adequately preserve our liquidity and manage operating costs, including efficiently controlling capital expenditures. During 2015, we began initiatives to enhance our financial flexibility and reduce cash outflows in the near term, including a streamlining of our cost structure and reductions in production volumes and capital expenditures. In addition, we have engaged financial and legal advisers to assist in the analysis of various strategic alternatives. Based on our current assumptions, we believe that existing cash balances and cash generated from operations will be sufficient to meet working capital requirements, anticipated capital expenditures and debt service requirements in 2016. If market conditions do not improve, we expect to continue to experience operating losses, which would adversely affect our liquidity in the future. As a result, we could be forced to take further action, including additional restructurings and reduction in capital expenditures.

In addition to the above, our ability to access the capital markets on acceptable economic terms in the future will be affected by general economic conditions, the domestic and global financial markets, our operational and financial performance, prevailing commodity prices and other macroeconomic factors outside of our control. Failure to obtain financing or to generate sufficient cash flow from operations could cause us to significantly reduce our spending and to alter our business plan. We may also be required to consider other options.

We manage our exposure to changing commodity prices for our long-term coal contract portfolio through the use of multi-year coal supply agreements. We generally enter into fixed price, fixed volume supply contracts with terms greater than one year with customers with whom we have historically had limited collection issues. Our ability to satisfy debt service obligations, fund planned capital expenditures, and make acquisitions will depend upon our future operating performance, which will be affected by prevailing economic conditions in the coal industry and financial, business and other factors, some of which are beyond our control.

Cash Flows

The following table reflects cash flows for the applicable periods:

	Nine Months Ended September 30,
	2016			2015
	(In thousands)
Net cash (used in) provided by:
Operating activities	$	4,909		$	35,936
Investing activities	$	(1,631	)	$	(16,406	)
Financing activities	$	(8,205	)	$	(6,487	)

Nine Months Ended September 30, 2016 Compared to Nine Months Ended September 30, 2015

Net cash provided by operating activities was $4.9 million for the nine months ended September 30, 2016, a decrease of $31.0 million from net cash provided by operating activities of $35.9 million for the same period of 2015. Operating results were negatively impacted during the first nine months of 2016 due to a decline in gross margin resulting primarily from lower shipments and average pricing during this period, as compared to the same period of 2015. Offsetting this decline is a reduction in DD&A and G&A expenses. Positively impacting cash flows from operations for the nine months ended September 30, 2016 was an increase in the net related party liabilities of $10.3 million due to the deferment of amounts owed to our affiliate, Thoroughbred, including interest and royalties earned on leased reserves, and a decrease in inventory due to the timing of shipments. Negatively impacting operating cash flows was a decrease in accounts payable and accrued and other liabilities due to the timing of payments. Cash flows from operations for the nine months ended September 30, 2015 were positively impacted by the receipt of a Kentucky sales and use tax refund totaling $4.5 million during the second quarter of 2015, an increase in net related party liabilities of $13.1 million due to the deferment of amounts owed to Thoroughbred, including royalties earned on leased reserves. Negatively impacting operating cash flows for the nine months ended September 30, 2015 was an increase in inventory due to the timing of shipments and a decrease in accounts payable and accrued and other liabilities due to the timing of payments.

Net cash used in investing activities decreased $14.8 million to $1.6 million for the nine months ended September 30, 2016, compared to $16.4 million for the same period of 2015. The current year investment is primarily attributable to capital expenditures to maintain our existing fixed assets, partially offset by the receipt of cash of $500 for the partial disposal of our

30

equity investment in Thoroughbred, as Yorktown exercised its right under the Second Amended and Restated Agreement of Limited Partnership of Thoroughbred Resources, LP to remove Elk Creek, GP, a wholly-owned subsidiary of Armstrong Energy, as the general partner of Thoroughbred, effective September 1, 2016. See Note 7 "Related Party Transactions" to our unaudited condensed consolidated financial statements for further discussion. The prior year investment is largely attributable to capital expenditures for equipment and mine development associated with our new Survant underground mine.

Net cash used in financing activities was $8.2 million for the nine months ended September 30, 2016, as compared to net cash used in financing activities of $6.5 million for the nine months ended September 30, 2015. The current year and prior year activity relates primarily to scheduled capital lease and other long-term debt payments.

Contractual Obligations

Our contractual obligations have not changed materially from the disclosures in our Annual Report on Form 10-K filed with the SEC on March 23, 2016.

Capital Expenditures

Our mining operations require investments to expand, upgrade or enhance existing operations and to comply with environmental and safety regulations. In response to the challenging coal environment, we have sought to maintain a controlled, disciplined approach to capital spending in order to preserve liquidity. Our anticipated total capital expenditures for 2016 are estimated to be within a range of $3.5 million to $5.0 million, a decrease of approximately 75% to 85% compared to 2015. Management anticipates funding capital requirements with current cash balances and cash flows provided by operations. With respect to any significant development projects, we plan to defer them to time periods beyond 2016 and will continue to evaluate the timing associated with those projects based on changes in overall coal supply and demand.

Mine Development Costs

Mine development costs are capitalized until production commences, other than production incidental to the mine development process, and are amortized on a units-of-production method based on the estimated proven and probable reserves. Mine development costs represent costs incurred in establishing access to mineral reserves and include costs associated with sinking or driving shafts and underground drifts, permanent excavations, roads and tunnels. The end of the development phase and the beginning of the production phase takes place when construction of the mine for economic extraction is substantially complete. Our estimate of when construction of the mine for economic extraction is substantially complete is based upon a number of assumptions, such as expectations regarding the economic recoverability of reserves, the type of mine under development, and the completion of certain mine requirements, such as ventilation. Coal extracted during the development phase is incidental to the mine’s production capacity and is not considered to be a triggering event to shift the mine into the production phase.

During the third quarter of 2015, we completed development of an additional underground mine at our Parkway complex, Survant, to extract coal from the West Kentucky #8 seam. Annual production capacity at the mine is eventually expected to be expanded to approximately 2.4 million tons. Capitalized development costs for the new mine totaled approximately $25.2 million.

Off-Balance Sheet Arrangements

In the normal course of business, we are a party to certain off-balance sheet arrangements. These arrangements include guarantees and financial instruments with off-balance sheet risk, such as surety bonds. No liabilities related to these arrangements are reflected in our consolidated balance sheet.

Federal and state laws require us to secure certain long-term obligations such as mine closure and reclamation costs and other obligations. We typically secure these obligations by using surety bonds, an off-balance sheet instrument. The use of surety bonds is less expensive for us than the alternative of posting a 100% cash bond. To the extent that surety bonds become unavailable, we would seek to secure our reclamation obligations with letters of credit, cash deposits or other suitable forms of collateral.

As of September 30, 2016, we had approximately $32.5 million in surety bonds outstanding to secure the performance ofour reclamation obligations, which were supported by approximately $6.0 million of cash posted as collateral.

31

Related Party Transactions

In the normal course of business, we engage in certain related party transactions with Thoroughbred, as well as other affiliated parties. These transactions generally include production and overriding royalties, administrative service agreements, reserve leases, and certain financing arrangements. For more information regarding our related party transactions, see Note 7, “Related Party Transactions,” to our unaudited condensed consolidated financial statements included in this report and “Item 13—Certain Relationships and Related Party Transactions, and Director Independence” in our Annual Report on Form 10-K filed with the SEC on March 23, 2016.

Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in accordance with U.S. GAAP. In connection with the preparation of our consolidated financial statements, we are required to make assumptions and estimates about future events, and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures. We base our assumptions, estimates and judgments on historical experience, current trends and other factors that management believes to be relevant at the time our consolidated financial statements are prepared. On a regular basis, we review the accounting policies, assumptions, estimates and judgments to ensure that our consolidated financial statements are presented fairly and in accordance with U.S. GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material.

The most significant areas requiring the use of management estimates and assumptions relate to units-of-production amortization calculations, asset retirement obligations, useful lives for depreciation of fixed assets, impairment of long-lived assets, and the accounting for the long-term obligation to related party. For a full discussion of our accounting estimates and assumptions that we have identified as critical in the preparation of our condensed consolidated financial statements, refer to our Annual Report on Form 10-K filed with the SEC on March 23, 2016.

Recent Accounting Pronouncements

See Note 1, "Description of Business and Entity Structure," to our unaudited condensed consolidated financial statements included in this report for a discussion of newly adopted accounting standards and accounting standards not yet implemented.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We define market risk as the risk of economic loss as a consequence of the adverse movement of market rates and prices. We believe our principal market risks are commodity price risk and credit risk.

Commodity Price Risk

We sell most of the coal we produce under multi-year coal supply agreements. Historically, we have principally managed the commodity price risks from our coal sales by entering into multi-year coal supply agreements of varying terms and durations, rather than through the use of derivative instruments.

Some of the products used in our mining activities, such as diesel fuel, explosives and steel products for roof support used in our underground mining, are subject to price volatility. Through our suppliers, we utilize forward purchases to manage a portion of our exposure related to diesel fuel volatility. A hypothetical increase of $0.10 per gallon for diesel fuel would have negatively impacted our results of operations by $0 million and $0.3 million for the three and nine months ended September 30, 2016, respectively. A hypothetical increase of 10% in steel prices would have negatively impacted our results of operations by $0.3 million and $0.9 million for the three and nine months ended September 30, 2016, respectively. A hypothetical increase of 10% in explosives prices would have negatively impacted our results of operations by $0.1 million and $0.3 million for the three and nine months ended September 30, 2016, respectively.

Credit Risk

Most of our coal sales are made to electric utilities. Therefore, our credit risk is primarily with domestic electric power generators. Our policy is to independently evaluate each customer’s creditworthiness prior to entering into a transaction with the customer and to constantly monitor outstanding accounts receivable against established credit limits. When deemed appropriate, we will take steps to reduce credit exposure to customers that do not meet our credit standards or whose credit has deteriorated. Credit losses are provided for in the financial statements and have historically been minimal.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our management, including our Chief Executive Officer and Chief Financial Officer, reviewed and evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2016. Based upon such review and evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the date of such evaluation to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During the third quarter of 2016, there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

33

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are involved from time to time in various lawsuits and claims arising in the ordinary course of business. Although the outcomes of these lawsuits and claims are uncertain, we do not believe any of them will have a material adverse effect on our business, financial condition or results of operations. See Note 14, "Commitments and Contingencies," to our unaudited condensed consolidated financial statements included in this report for a discussion of significant legal matters.

Item 1A. Risk Factors

There have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K filed with the SEC on March 23, 2016.

Item 4. Mine Safety Disclosures

Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item  104 of Regulation S-K is included in Exhibit 95.1 to this Quarterly Report on Form 10-Q.

Item 5. Other Information

(a)None

(b) There have been no material changes to the procedures by which security holders may recommend nominees to the Company’s board of directors during the fiscal quarter ended September 30, 2016.

34

Item 6. Exhibits

		Incorporated by Reference				Filed or Furnished Herewith
Exhibit Number	Description	Form	File Number	Exhibit	Filing Date
10.1†	First Amendment to Employment Agreement by and between Armstrong Energy, Inc. and Martin D. Wilson, dated as of May 18, 2015.	10-Q	333-191182	10.1	5/15/2016
10.2†	First Amendment to Employment Agreement by and between Armstrong Energy, Inc. and J. Hord Armstrong, III, dated as of May 18, 2015.	10-Q	333-191182	10.2	5/15/2016
10.3†	Second Amendment to Employment Agreement by and between Armstrong Energy, Inc. and Martin D. Wilson, dated as of April 22, 2016.	10-Q	333-191182	10.3	5/15/2016
10.4†	Second Amendment to Employment Agreement by and between Armstrong Energy, Inc. and J. Hord Armstrong, III, dated as of April 22, 2016.	10-Q	333-191182	10.4	5/15/2016
10.5†	First Amendment to Employment Agreement by and between Armstrong Energy, Inc. and Jeffrey F. Winnick, dated as of April 22, 2016.	10-Q	333-191182	10.5	5/15/2016
10.6	Coal Mining Lease between Alcoa Fuels, Inc. and Armstrong Coal Company, Inc., dated as of June 1, 2016.	10-Q	333-191182	10.6	8/11/2016
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
32.1#	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
32.2#	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
95.1	Federal Mine Safety and Health Act Information.					X
101.INS	XBRL Instance Document					X
101.SCH	XBRL Taxonomy Extension Scheme Document					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document					X

†	Indicates a management contract or compensatory plan or arrangement.
#	This certification is deemed not “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ARMSTRONG ENERGY, INC.
Date: November 9, 2016	By:	/s/ Jeffrey F. Winnick
		Jeffrey F. Winnick
		Vice President and Chief Financial Officer
		(On behalf of the registrant and as Principal  Financial Officer)

36

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Martin D. Wilson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Armstrong Energy, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 9, 2016	By:	/s/ Martin D. Wilson
			Martin D. Wilson
			President and Chief Executive Officer
			(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Jeffrey F. Winnick, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Armstrong Energy, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 9, 2016	By:	/s/ Jeffrey F. Winnick
			Jeffrey F. Winnick
			Vice President and Chief Financial Officer
			(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Martin D. Wilson, President and Chief Executive Officer of Armstrong Energy, Inc. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Martin D. Wilson

Martin D. Wilson

President and Chief Executive Officer

(Principal Executive Officer)

November 9, 2016

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Jeffrey F. Winnick, Vice President and Chief Financial Officer of Armstrong Energy, Inc. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jeffrey F. Winnick

Jeffrey F. Winnick

Vice President and Chief Financial Officer

(Principal Financial Officer)

November 9, 2016

EX-95.1

Exhibit 95.1

Mine Safety and Health Administration (MSHA) Safety Data

Armstrong Energy, Inc.’s mining operations are subject to regulations issued by MSHA under the U.S. Federal Mine Safety and Health Act of 1977 (the Mine Act). MSHA inspects our mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed. The number of citations, orders and proposed assessments varies depending on the size and type (underground or surface) of the mine, among other factors.

The following disclosures have been provided pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act).

Mine Safety Data. The following provides additional information about references used in the table below to describe the categories of violations, orders or citations issued by MSHA under the Mine Act:

• Section 104 S&S Citations: Citations issued by MSHA under Section 104(a) of the Mine Act for violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.

• Section 104(b) Orders: Orders issued under Section 104(b) of the Mine Act, which represent a failure to abate a citation under Section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.

• Section 104(d) Citations and Orders: Citations and orders issued by MSHA under Section 104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards. These types of violations could significantly and substantially contribute to a serious injury; however, the conditions do not cause imminent danger (refer to discussion of imminent danger orders below).

• Section 104(e) Notices: Notices issued by MSHA under Section 104(e) of the Mine Act for an alleged pattern of violations of mandatory health or safety standards that could significantly and substantially contribute to mine health or safety hazards.

• Section 110(b)(2) Violations: Flagrant violations identified by MSHA under Section 110(b)(2) of the Mine Act. The term flagrant with respect to a violation is defined as “a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have expected to cause, death or serious bodily injury.”

• Section 107(a) Orders: Orders issued by MSHA under Section 107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed. Orders issued under Section 107(a) of the Mine Act require the operator of the mine to cause all persons (except authorized persons) to be withdrawn from the mine until the imminent danger and the conditions that caused such imminent danger cease to exist.

The following table details the violations, citations and orders issued to us by MSHA during the three months ended September 30, 2016, not taking into account any changes to the severity or amount of such citations or orders after assessment:

Mine(1)	MSHA ID	Section 104 S&S Citations (#)	Section 104(b) Orders (#)	Section 104(d) Citations and Orders (#)	Section 110 (b)(2) Violations (#)	Section 107(a) Orders (#)	Total Dollar Value of Proposed MSHA Assessments (in thousands) ($)	Total Number of Mining Related Fatalities (#)	Received Notice of Pattern of Violations Under Section 104(e) (yes/no)	Received Notice of Potential to Have Pattern of Violations Under Section 104(e) (yes/no)
Midway	15-19217	0	0	0	0	0	0.0	0	No	No
Parkway Underground	15-19358	8	0	0	0	0	23.6	0	No	No
East Fork	15-19407	0	0	0	0	0	0.0	0	No	No
Equality Boot	15-19344	0	0	0	0	0	0.0	0	No	No
Lewis Creek	15-19511	1	0	0	0	0	0.2	0	No	No
Kronos Underground	15-19535	30	0	0	0	0	54.5	0	No	No
Lewis Creek  Underground	15-19669	0	0	0	0	0	0.0	0	No	No
Survant Underground	15-19744	3	0	0	0	0	1.4	0	No	No
Midway Prep.	15-19165	0	0	0	0	0	0.0	0	No	No
Parkway Prep.	15-19356	0	0	0	0	0	0.0	0	No	No
Armstrong Prep. &  Dock	15-19345	1	0	0	0	0	0.2	0	No	No

(1) The table does not include the following: (i) facilities which have been idled or closed unless they received a citation or order issued by MSHA; and (ii) permitted mining sites where we have not begun operations and therefore have not received any citations.

Pending Legal Actions. The table below provides a summary of legal actions pending before the Federal Mine Safety and Health Review Commission (the Commission) as of September 30, 2016, as well as the aggregate number of legal actions instituted and resolved during the three months ended September 30, 2016. Each legal action is assigned a docket number by the Commission and may have as its subject matter one or more citations, orders, penalties or complaints. The Commission is an independent adjudicative agency established by the Mine Act that provides administrative trial and appellate review of legal disputes arising under the Mine Act. These cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA, or complaints of discrimination by miners under Section 105 of the Mine Act.

The following provides additional information of the types of proceedings that may be brought before the Commission:

• Contest Proceedings – A contest proceeding may be filed by an operator to challenge the issuance of a citation or order issued by MSHA.

• Civil Penalty Proceedings – A civil penalty proceeding may be filed by an operator to challenge a civil penalty MSHA has proposed for a violation contained in a citation or order. The validity of the citation may be challenged in this proceeding, as well.

• Discrimination Proceedings – Involves a miner’s allegation that he or she has suffered adverse employment action because he or she engaged in activity protected under the Mine Act, such as making a safety complaint. Also includes temporary reinstatement proceedings involving cases in which a miner has filed a complaint with MSHA stating that he or she has suffered discrimination and the miner has lost his or her position.

• Compensation Proceedings – A compensation proceeding may be filed by miners entitled to compensation when a mine is closed by certain closure orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation, if any, due to miners idled by the orders.

• Temporary Relief – Applications for temporary relief are applications filed under section 105(b)(2) of the Mine Act for temporary relief from any modification or termination of any order.

• Appeals – An appeal may be filed by an operator to challenge judges’ decisions or orders to the Commission, including petitions for discretionary review and review by the Commission on its own motion.

Mine	MSHA ID	Legal Actions Pending as of Last Day of Period (#)	Contests of Citations and Orders (#)	Contests of Proposed Penalties (#)	Complaints for Compensation (#)	Complaints of Discharge, Discrimination, or Interference (#)	Applications for Temporary Relief (#)	Appeals of Judges’ Decisions or Orders (#)	Legal Actions Initiated During Period (#)	Legal Actions Resolved During Period (#)
Midway	15-19217	2	0	2	0	0	0	0	1	0
Parkway  Underground	15-19358	23	0	14	0	9	0	0	5	3
East Fork	15-19407	0	0	0	0	0	0	0	0	0
Equality Boot	15-19344	2	0	2	0	0	0	0	2	2
Lewis Creek	15-19511	1	0	1	0	0	0	0	1	0
Kronos Underground	15-19535	9	0	9	0	0	0	0	2	3
Lewis Creek  Underground	15-19669	0	0	0	0	0	0	0	0	0
Survant Underground	15-19744	1	0	1	0	0	0	0	1	2
Midway Prep.	15-19165	1	0	1	0	0	0	0	1	0
Parkway Prep.	15-19356	1	0	1	0	0	0	0	0	2
Armstrong Prep. &  Dock	15-19345	2	0	1	0	1	0	0	0	1
Big Run  Underground	15-18552	0	0	0	0	0	0	0	0	0

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Entity Registrant Name	Armstrong Energy, Inc.
Entity Central Index Key	0001532288
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		21,883,224

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 62,690	$ 67,617
Accounts receivable	15,182	14,270
Inventories	10,053	14,562
Prepaid and other assets	2,632	1,952
Total current assets	90,557	98,401
Property, plant, equipment, and mine development, net	242,234	261,398
Investments	2,794	3,525
Other non-current assets	14,219	17,387
Total assets	349,804	380,711
Current liabilities:
Accounts payable	16,992	22,555
Accrued and other liabilities	18,578	13,045
Current portion of capital lease obligations	775	1,943
Current maturities of long-term debt	8,619	8,402
Total current liabilities	44,964	45,945
Long-term debt, less current maturities	200,100	203,508
Long-term obligation to related party	145,141	128,809
Related party payables, net	10,366	16,413
Asset retirement obligations	14,855	13,990
Long-term portion of capital lease obligations	0	555
Other non-current liabilities	7,617	6,772
Total liabilities	423,043	415,992
Stockholders’ deficit:
Common stock, $0.01 par value, 70,000,000 shares authorized, 21,883,224 and 21,853,224 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	219	218
Preferred stock, $0.01 par value, 1,000,000 shares authorized, zero shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	0	0
Additional paid-in-capital	238,672	238,695
Accumulated deficit	(310,501)	(272,334)
Accumulated other comprehensive loss	(1,652)	(1,883)
Armstrong Energy, Inc.’s deficit	(73,262)	(35,304)
Non-controlling interest	23	23
Total stockholders’ deficit	(73,239)	(35,281)
Total liabilities and stockholders’ deficit	$ 349,804	$ 380,711

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	21,883,224	21,853,224
Common stock, shares outstanding	21,883,224	21,853,224
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

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Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 65,388	$ 89,206	$ 186,141	$ 278,680
Costs and expenses:
Cost of coal sales, exclusive of items shown separately below	52,357	69,843	155,671	218,826
Production royalty to related party	1,866	1,980	5,206	6,034
Depreciation, depletion, and amortization	7,736	10,990	22,894	38,399
Asset retirement obligation expenses	350	756	1,019	2,340
Asset impairment and restructuring charges	0	138,679	3,381	138,679
General and administrative expenses	3,099	3,641	9,539	12,563
Operating loss	(20)	(136,683)	(11,569)	(138,161)
Other income (expense):
Interest expense, net	(8,798)	(9,203)	(25,455)	(26,450)
Other, net	(906)	154	(1,026)	4,778
Loss before income taxes	(9,724)	(145,732)	(38,050)	(159,833)
Income taxes	0	(54)	(117)	(313)
Net loss	(9,724)	(145,786)	(38,167)	(160,146)
Income attributable to non-controlling interest	0	0	0	0
Net loss attributable to common stockholders	$ (9,724)	$ (145,786)	$ (38,167)	$ (160,146)

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Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (9,724)	$ (145,786)	$ (38,167)	$ (160,146)
Other comprehensive income:
Postretirement benefit plan and other employee benefit obligations, net of tax	76	105	231	314
Other comprehensive income	76	105	231	314
Comprehensive loss	(9,648)	(145,681)	(37,936)	(159,832)
Less: comprehensive income (loss) attributable to non-controlling interests	0	0	0	0
Comprehensive loss attributable to common stockholders	$ (9,648)	$ (145,681)	$ (37,936)	$ (159,832)

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Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Postretirement benefit plan and other employee benefit obligations, tax	$ 0	$ 0	$ 0

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Unaudited Consolidated Statement of Stockholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Non - Controlling Interest [Member]
Beginning Balance at Dec. 31, 2015	$ (35,281)	$ 218	$ 0	$ 238,695	$ (272,334)	$ (1,883)	$ 23
Beginning Balance, Shares at Dec. 31, 2015	21,853,224	21,853,224
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (38,167)				(38,167)
Stock based compensation	(22)			(22)
Postretirement benefit plan and other employee benefit obligations, net of tax	231					231
Repurchase of common stock, Shares		(30,000)
Stock Issued During Period, Value, New Issues		$ (1)		1
Ending Balance at Sep. 30, 2016	$ (73,239)	$ 219	$ 0	$ 238,672	$ (310,501)	$ (1,652)	$ 23
Ending Balance, Shares at Sep. 30, 2016	21,883,224	21,883,224.000

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Unaudited Consolidated Statement of Stockholders' Equity (Parenthetical)	9 Months Ended
	Sep. 30, 2016 USD ($)
Postretirement benefit plan and other employee benefit obligations, tax	$ 0
Accumulated Other Comprehensive Loss [Member]
Postretirement benefit plan and other employee benefit obligations, tax	$ 0

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Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities:
Net loss	$ (38,167)	$ (160,146)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Non-cash stock compensation (income) expense	(22)	224
Income from equity affiliate	(89)	(116)
Equity Method Investment, Realized Gain (Loss) on Disposal	320	0
Loss on disposal of property, plant and equipment	0	72
Amortization of original issue discount	711	630
Amortization of debt issuance costs	1,259	1,143
Depreciation, depletion and amortization	22,894	38,399
Asset retirement obligation expenses	1,019	2,340
Non-cash activity with related party, net	3,381	137,678
Non-cash interest on long-term obligations	10,286	13,141
Change in operating assets and liabilities:	5,867	5,867
(Increase) decrease in accounts receivable
Decrease (increase) in inventories	(912)	485
(Increase) decrease in prepaid and other assets	4,509	(2,231)
Increase in other non-current assets	(680)	899
Decrease in accounts payable and accrued and other liabilities	(491)	(455)
Increase in other non-current liabilities	(5,820)	(3,187)
Net cash provided by operating activities:	844	1,193
Cash Flows from Investing Activities:	4,909	35,936
Investment in property, plant, equipment, and mine development
Proceeds from disposal of fixed assets	(2,131)	(16,881)
Proceeds from Sale of Equity Method Investments	500	0
Net cash used in investing activities	0	475
Cash Flows from Financing Activities:	(1,631)	(16,406)
Payments on capital lease obligations
Payments of long-term debt	(1,723)	(2,017)
Net cash used in financing activities	(6,482)	(4,470)
Net change in cash and cash equivalents	(8,205)	(6,487)
Cash and cash equivalents, at the beginning of the period	(4,927)	13,043
Cash and cash equivalents, at the end of the period	67,617	59,518
Cash and cash equivalents, at the end of the period	62,690	72,561
Non-Cash Transactions:
Assets acquired with long-term debt	1,586	7,756
Related Party Transaction Amount Waived By Related Party	$ 16,413	$ 18,172

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Description of Business and Entity Structure

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Entity Structure

DESCRIPTION OF BUSINESS AND ENTITY STRUCTURE

Business

The accompanying unaudited condensed consolidated financial statements include the accounts of Armstrong Energy, Inc. and its subsidiaries and controlled entities (collectively, the Company or AE). The Company’s primary business is the production of thermal coal from surface and underground mines located in western Kentucky, for sale to utility and industrial markets. Intercompany transactions and accounts have been eliminated in consolidation.

Prior to September 1, 2016, the Company’s wholly-owned subsidiary, Elk Creek GP, LLC (ECGP), was the sole general partner of and had an approximate 0.2% ownership in Thoroughbred Resources, L.P. (Thoroughbred). The various limited partners of Thoroughbred are related parties, as the entity is majority owned by investment funds managed by Yorktown Partners LLC (Yorktown), which has a majority ownership in the Company. Effective September 1, 2016, Yorktown exercised its right under the Second Amended and Restated Agreement of Limited Partnership of Thoroughbred Resources, LP to remove ECGP as the general partner of Thoroughbred. The Company does not consolidate the financial results of Thoroughbred. See Note 7, "Related Party Transactions," for further discussion.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting and U.S. Securities and Exchange Commission (SEC) regulations. In the opinion of management, all adjustments consisting of normal, recurring accruals considered necessary for a fair presentation have been included. Balance sheet information presented herein as of December 31, 2015 has been derived from the Company’s audited consolidated balance sheet at that date. Results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of results to be expected for the year ending December 31, 2016. Certain prior year amounts have been reclassified to conform with the 2016 presentation. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 23, 2016.

Market Conditions and Liquidity

The domestic coal markets have been negatively impacted by declining power demand from mild weather conditions, persistently low natural gas prices, excess utility stockpiles and an arduous regulatory environment. As a result of the weak market conditions and depressed coal prices, the Company has undertaken steps to adequately preserve its liquidity and manage operating costs, including efficiently controlling capital expenditures. Beginning in 2015, the Company undertook steps to enhance its financial flexibility and reduce cash outflows in the near term, including a streamlining of its cost structure and anticipated reductions in production volumes and capital expenditures. In addition, during the second quarter of 2016, the board of directors of the Company authorized an exploration of strategic alternatives aimed at strengthening the Company’s balance sheet and improving its long-term capital structure. As a result, the Company has retained legal and financial advisers to assist the board of directors and management with the strategic review process. There is no assurance that this exploration will result in any strategic alternatives being announced or executed. For the three and nine months ended September 30, 2016, the Company has incurred expenses totaling $626 and $1,077, respectively, associated with the strategic review process, which is included as a component of "other, net" in the unaudited condensed consolidated statements of operations.

Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented

In February 2016, the Financial Accounting Standards Board (FASB) issued updated guidance regarding the accounting for leases. This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier application permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this update on its consolidated financial statements.

In November 2015, the FASB issued guidance that eliminates the requirement to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The new guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. The Company adopted this standard as of December 31, 2015. While the adoption of this guidance impacted the Company's balance sheet disclosure, it did not affect the Company's results of operations or cash flows.

In April 2015, the FASB issued guidance requiring an entity to present deferred financing costs on the balance sheet as a direct deduction from the related debt liability as opposed to an asset. Amortization of the costs will continue to be reported as interest expense. In August 2015, the FASB issued an accounting standards update about the presentation and subsequent measurement of deferred financing costs associated with line-of-credit arrangements, which allows for the presentation of deferred financing costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. The updates are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. The Company adopted these standards during the three months ended March 31, 2016. The Company continues to report the unamortized deferred financing costs associated with its asset-based revolving credit facility dated December 21, 2012 (the 2012 Credit Facility) within other non-current assets, whereas unamortized deferred financing costs associated with the Company's 11.75% Senior Secured Notes due 2019 (the Notes) have been reclassified for all periods presented.

In February 2015, the FASB issued guidance changing the requirements and analysis required when determining the reporting entity's need to consolidate an entity, including modifying the evaluation of limited partnerships variable interest status, the presumption that a general partner should consolidate a limited partnership, and the consolidation criterion applied by a reporting entity involved with variable interest entities. The Company adopted this guidance during the first quarter of 2016, and it did not have an impact on its historical consolidation conclusions.

In August 2014, the FASB issued guidance on management’s responsibility in evaluating, at each annual and interim reporting period, whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter with early adoption permitted.

In May 2014, the FASB issued a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard requires revenue to be recognized when promised goods or services are transferred to a customer in an amount that reflects the consideration expected in exchange for those goods or services. The standard permits the use of either the full retrospective or modified retrospective transition method. This guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted to the original effective date of December 15, 2016. The Company is currently evaluating the impact of this new pronouncement on its financial statements.

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Asset Impairment and Restructuring Charges

9 Months Ended

Sep. 30, 2016

Restructuring and Related Activities [Abstract]

Asset Impairment and Restructuring Charges

ASSET IMPAIRMENT AND RESTRUCTURING CHARGES

The Company's long-lived assets may be adversely affected by numerous uncertain factors that may cause the Company to be unable to recover all or a portion of the carrying value of those assets. As a result of various unfavorable market conditions, including, but not limited to sustained downward trends in domestic coal prices, the Company concluded indicators of impairment existed as of September 30, 2015. As such, the Company performed a comprehensive review of its long-lived assets for recoverability through future cash flows as of September 30, 2015. Based on that review, it was determined the carrying value was not recoverable, and the Company correspondingly recognized a non-cash asset impairment of $137,678 to reduce the carrying value of its long-lived assets to their estimated fair value. In addition, the Company initiated certain restructuring activities during the three months endedSeptember 30, 2015 to better align its cost structure with current industry conditions. Costs associated with these restructuring activities of $1,001 were recognized in the three and nine months ended September 30, 2015. For additional information surrounding those charges, refer to Note 3, "Asset Impairment and Restructuring Charges" to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

During the nine months ended September 30, 2016, the Company recognized an asset impairment charge of $3,381 to write-off certain advanced royalties. See Note 3, "Mineral Reserve Lease," for further discussion.

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Mineral reserve lease (Notes)

9 Months Ended

Sep. 30, 2016

Mineral Reserve Lease [Abstract]

Capital Leases in Financial Statements of Lessee Disclosure [Text Block]

3. MINERAL RESERVE LEASE

In October 2010, the Company entered into a lease agreement for over 100 million tons of recoverable coal reserves located in Union and Webster Counties, Kentucky in exchange for a production royalty. The initial term of the lease expired on June 1, 2016. In addition, the lease required the Company to provide the lessor with a certain amount of coal tonnage annually until production commenced on the leased reserve. The Company valued this coal tonnage using the prevailing average market price, and the advance royalty was recoupable against production royalties generated by future mining activity.

Upon expiration, the lease was renewed for an additional 5 year term. The terms of the renewal stipulate a minimum annual rent payable with a specified amount of coal tonnage beginning on June 1, 2017. In addition, the lease allows for the early termination of the agreement by the Company upon payment of a termination fee, as defined, which is zero through December 1, 2017. Lastly, the minimum annual rent, including amounts previously paid, will no longer be recoupable against future production royalties. As a result, the Company recognized a non-cash impairment charge of $3,381 during the second quarter of 2016 to write-off advanced royalties associated with the aforementioned lease.

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Inventories

9 Months Ended

Sep. 30, 2016

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories consist of the following amounts:

	September 30, 2016		December 31, 2015
Materials and supplies	$	8,755	$	9,634
Coal—raw and saleable	1,298		4,928
Total	$	10,053	$	14,562

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Accrued and Other Liabilities

9 Months Ended

Sep. 30, 2016

Payables and Accruals [Abstract]

Accrued and Other Liabilities

ACCRUED AND OTHER LIABILITIES

Accrued and other liabilities consist of the following amounts:

	September 30, 2016		December 31, 2015
Payroll and related benefits	$	5,128	$	6,454
Taxes other than income taxes	4,164		3,134
Interest	6,854		987
Asset retirement obligations	94		94
Royalties	628		630
Other	1,710		1,746
Total	$	18,578	$	13,045

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Other Non-Current Assets

9 Months Ended

Sep. 30, 2016

Other Assets, Noncurrent [Abstract]

Other Non-Current Assets

OTHER NON-CURRENT ASSETS

Other non-current assets consist of the following amounts:

	September 30, 2016		December 31, 2015
Escrows and deposits	$	5,213	$	5,233
Restricted surety and cash bonds	6,055		6,115
Advanced royalties	2,462		5,272
Deferred financing costs, net associated with 2012 Credit Facility	432		697
Intangible assets, net	57		70
Total	$	14,219	$	17,387

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Related Party Transactions

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

Investments

Effective September 1, 2016, Yorktown exercised its right under the Second Amended and Restated Agreement of Limited Partnership of Thoroughbred Resources, LP to remove ECGP as the general partner of Thoroughbred. The Company received cash of $500 for its 0.2% general partner interest and recognized a pre-tax loss of $320 during the three months ended September 30, 2016, which is included as a component of "other, net" in the condensed consolidated statements of operations for the three and nine months ended September 30, 2016. The Company continues to maintain a 0.9% interest in Thoroughbred through its subsidiary, Armstrong Energy Holdings, Inc., but, as a result of its removal as general partner, no longer has the ability to exercise significant influence over Thoroughbred. Therefore, effective September 1, 2016, the remaining interest being retained by the Company is being accounted for under the cost method.

Prior to September 1, 2016 when the Company’s investment in Thoroughbred was accounted for under the equity method, the Company recognized income from its equity interest of $25 and $40 for three months ended September 30, 2016 and 2015, respectively, and $89 and $116 for the nine months ended September 30, 2016 and 2015, respectively.

Sale of Coal Reserves

The Company has executed the sale of an undivided interest in certain land and mineral reserves in Ohio and Muhlenberg counties of Kentucky to Thoroughbred, through a series of transactions beginning in February 2011. Subsequently, the Company entered into lease agreements with Thoroughbred pursuant to which Thoroughbred granted the Company leases to its undivided interests in the mining properties acquired and licenses to mine and sell coal from those properties in exchange for a production royalty. Due to the Company’s continuing involvement in the land and mineral reserves transferred, these transactions have been accounted for as financing arrangements. A long-term obligation has been established that is being amortized over the anticipated life of the mineral reserves, at an annual rate of 7% of the estimated gross revenue generated from the sale of the coal originating from the leased mineral reserves. In addition, effective February 2011, the Company and Thoroughbred entered into a Royalty Deferment and Option Agreement, whereby the Company has been granted an option to defer payment of any royalties earned by Thoroughbred on coal mined from these properties. Compensation for the aforementioned transactions has consisted of a combination of cash payments and the forgiveness of amounts owed by the Company, which primarily consisted of deferred royalties.

On May 1, 2015, the Company sold a 12.10% undivided interest in certain leased and owned land and mineral reserves to Thoroughbred in exchange for Thoroughbred forgiving amounts owed by the Company of $18,172. On June 1, 2016, the Company sold an additional 17.81% undivided interest in certain leased and owned land and mineral reserves to Thoroughbred in exchange for Thoroughbred forgiving amounts owed by the Company of $16,413. The amounts forgiven consisted primarily of deferred production royalties. The newly acquired interests in the mineral reserves were leased and/or subleased by Thoroughbred to the Company in exchange for a production royalty. These transactions were accounted for as financing arrangements and additional long-term obligations to Thoroughbred of $18,172 and $16,413 were recognized on May 1, 2015 and June 1, 2016, respectively.

The percentage interest in the land and mineral reserves sold to Thoroughbred in the above transactions were based on fair values determined by a third-party specialist as of December 31 of the year prior to the completion of the land and mineral reserve sale. In addition, these transactions were approved by the conflicts committee of the board of directors of the Company, a committee including independent directors. As a result of the above, Thoroughbred’s undivided interest in certain of the Company’s leased and owned land and mineral reserves in Muhlenberg and Ohio counties as of September 30, 2016 and December 31, 2015 was 79.19% and 61.38%, respectively.

As of September 30, 2016 and December 31, 2015, the outstanding long-term obligation to related party totaled $145,141 and $128,809, respectively. Interest expense recognized for the three months ended September 30, 2016 and 2015 associated with the long-term obligation to related party was $2,120 and $2,675, respectively, and for the nine months ended September 30, 2016 and 2015 was $5,474 and $8,311, respectively. The effective interest rate of the long-term obligation to related party, which is adjusted based on significant mine plan changes and the completion of the periodic reserve transfers, was 5.8% as of September 30, 2016.

Lease of Coal Reserves

In February 2011, Thoroughbred entered into a lease and sublease agreement with the Company relating to its Elk Creek reserves and granted the Company a license to mine coal on those properties. The terms of this agreement mirror those of the lease agreements associated with the jointly owned reserves between the Company and Thoroughbred. Total production royalties owed from mining of the Elk Creek reserves, where the Company’s Kronos underground mine resides, for the three months ended September 30, 2016 and 2015 totaled $1,867 and $1,980, respectively, and for the nine months ended September 30, 2016 and 2015 totaled $5,206 and $6,034, respectively.

Administrative Services Agreements

The Company entered into an administrative services agreement with Thoroughbred and ECGP pursuant to which the Company agreed to provide Thoroughbred with general administrative and management services, including, but not limited to, human resources, information technology, financial and accounting services and legal services. The administrative service fee, which is adjusted annually, is approved by the conflicts committee of the board of directors of the Company. As consideration for the use of the Company’s employees and services, and for certain shared fixed costs, Thoroughbred paid the Company $236 and $300 for the three months ended September 30, 2016 and 2015, respectively, and $707 and $900 for the nine months ended September 30, 2016 and 2015, respectively.

In connection with ECGP's removal as general partner of Thoroughbred, the Company and Thoroughbred have agreed to cancel the administrative services agreement effective as of December 31, 2016.

Other

In 2007, the Company entered into an overriding royalty agreement with an executive employee to compensate him $0.05/ton of coal mined and sold from properties owned by certain subsidiaries of the Company. The agreement remains in effect for the later of 20 years from the date of the agreement or until all salable coal has been extracted. The royalty agreement transfers with the property regardless of ownership or lease status. The royalty is payable the month following the sale of coal mined from the specified properties. The Company accounts for this royalty arrangement as expense in the period in which the coal is sold. Expense recorded in the three months ended September 30, 2016 and 2015 was $54 and $75, respectively, and $154 and $244 in the nine months ended September 30, 2016 and 2015, respectively.

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Long-Term Debt

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Long-Term Debt

LONG-TERM DEBT

The Company’s total indebtedness consisted of the following:

Type	September 30, 2016		December 31, 2015
Notes	$	190,595	$	188,890
Other	18,124		23,020
	208,719		211,910
Less: current maturities	8,619		8,402
Total long-term debt	$	200,100	$	203,508

Senior Secured Notes due 2019

On December 21, 2012, the Company completed a $200,000 offering of the Notes. The Notes were issued at an original issue discount (OID) of 96.567%. The OID was recorded on the Company’s balance sheet as a component of long-term debt, and is being amortized to interest expense over the life of the Notes. As of September 30, 2016 and December 31, 2015, the unamortized OID was $3,870 and $4,581, respectively. Interest on the Notes is due semiannually on June 15 and December 15 of each year. The Company used $123,698 of the proceeds from this issuance to prepay and terminate its previous senior secured credit facility, including accrued and unpaid interest. In addition, the Company used the proceeds to pay fees and expenses of $8,358 related to the Notes offering, which are being amortized to interest expense over the life of the Notes. As of September 30, 2016 and December 31, 2015, the unamortized deferred financing costs were $5,535 and $6,529, respectively.

2012 Credit Facility

Concurrently with the closing of the Notes offering on December 21, 2012, the Company entered into the 2012 Credit Facility. The 2012 Credit Facility provides for a five year, $50,000 revolving credit facility that will expire on December 21, 2017. Borrowings under the 2012 Credit Facility may not exceed a borrowing base, as defined within the 2012 Credit Facility agreement. In addition, the 2012 Credit Facility includes a $10,000 letter of credit sub-facility and a $5,000 swingline loan sub-facility. The Company incurred $1,198 of deferred financing fees related to the 2012 Credit Facility that have been capitalized and are being amortized to interest expense over the life of the 2012 Credit Facility.

The 2012 Credit Facility contains certain financial covenants, and a failure to comply with the financial covenants could adversely impact the Company's available liquidity. Upon the occurrence of a Liquidity Event, at any time when borrowings are outstanding under the facility, the Company will be required to maintain a fixed charge coverage ratio, calculated as of the end of each calendar month for the 12 months then ended, greater than 1.0-to-1.0. A Liquidity Event is defined as the occurrence of (i) an Event of Default, as such term is defined in the 2012 Credit Agreement, or (ii) undrawn availability being less than the greater of (a) $10,000 or (b) an amount equal to 20% of the borrowing base. As of September 30, 2016, the Company's fixed charge coverage ratio was less than 1.0-to-1.0, which, therefore, would require the Company to maintain minimum availability of $10,000 if any amounts were drawn on the 2012 Credit Facility. As of September 30, 2016 and December 31, 2015, there were no borrowings outstanding under the 2012 Credit Facility, and, therefore, the Company was not subject to the requirements of the financial covenants included within the agreement. The calculated available borrowings under the 2012 Credit Facility totaled $14,399 at September 30, 2016, but due to the restrictions imposed as a result of not maintaining the minimum fixed charge coverage ratio, the Company's borrowing availability has been reduced by $10,000 to $4,399. As a result of the decline in availability, on November 4, 2016, the Company provided notification to the administrative agent of its intent to terminate the 2012 Credit Facility effective November 14, 2016.

Other Debt

Other debt consists of miscellaneous debt obligations entered into to finance the acquisition of certain equipment and land. These obligations have various maturities of one to five years and bear interest at rates between 2.99% to 6.50%.

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company measures the fair value of assets and liabilities using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—observable inputs such as quoted prices in active markets; Level 2—inputs, other than quoted market prices in active markets, which are observable, either directly or indirectly; and Level 3—valuations derived from valuation techniques in which one or more significant inputs are unobservable. In addition, the Company may use various valuation techniques, including the market approach, using comparable market prices; the income approach, using the present value of future income or cash flow; and the cost approach, using the replacement cost of assets.

The Company’s financial instruments consist of cash equivalents, accounts receivable, cost method investment, long-term debt, and other long-term obligations. For cash equivalents, accounts receivable and other long-term obligations, the carrying amounts approximate fair value due to the short maturity and financial nature of the balances. The fair value of the cost method investment is not estimated, as it is impracticable to do so. The estimated fair market values of the Company’s Notes, which was determined using Level 2 inputs, and long-term obligation to related party, which was determined using Level 3 inputs, are as follows:

	September 30, 2016				December 31, 2015
	Fair Value		Carrying Value		Fair Value		Carrying Value
11.75% Senior Secured Notes due 2019(1)	$	78,500	$	190,595	$	82,000	$	188,890
Long-term obligation to related party	107,788		145,141		94,811		128,809
Total	$	186,288	$	335,736	$	176,811	$	317,699

(1) The carrying value of the Notes is net of the unamortized OID and deferred financing costs as of September 30, 2016 and December 31, 2015, respectively.

The fair value of the Notes is based on quoted market prices, while the fair value of the long-term obligation to related party is based on estimated cash flows discounted to their present value.

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Income Taxes

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company has not recognized certain income tax benefits, as it does not believe it is more likely than not it will be able to realize its net deferred tax assets. The Company has, therefore, established a valuation allowance against its net deferred tax assets as of September 30, 2016 and December 31, 2015. Based on the anticipated reversals of its deferred tax assets and deferred tax liabilities, the Company has concluded a valuation allowance is necessary only for the excess of deferred tax assets over deferred tax liabilities.

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2016

Postemployment Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

The Company provides certain health care benefits, including the reimbursement of a portion of out-of-pocket costs associated with insurance coverage, to qualifying salaried and hourly retirees and their dependents. Plan coverage for reimbursements will be provided to future hourly and salaried retirees in accordance with the plan document. The Company’s funding policy with respect to the plan is to fund the cost of all postretirement benefits as they are paid.

Net periodic postretirement benefit cost included the following components:

	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Service cost for benefits earned	$	229	$	304	$	688	$	912
Interest cost on accumulated postretirement benefit obligation	43		30		129		91
Amortization of prior service cost	24		26		71		78
Net periodic postretirement cost	$	296	$	360	$	888	$	1,081

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Accumulated Other Comprehensive Loss

ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2016 consisted of the following:

	Postretirement Benefit Plan and Other Employee Benefit Obligations			Accumulated Other Comprehensive Loss
Balance as of December 31, 2015	$	(1,883	)	$	(1,883	)
Amounts reclassified from accumulated other comprehensive loss	231			231
Current period change	—			—
Balance as of September 30, 2016	$	(1,652	)	$	(1,652	)

The following is a summary of reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2016 and 2015:

Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line  Item in the Condensed  Consolidated Statement of Operations	Amounts Reclassified from Accumulated Other Comprehensive Loss For the Three Months Ended September 30,						Amounts Reclassified from Accumulated Other Comprehensive Loss For the Nine Months Ended September 30,
		2016			2015			2016			2015
Amortization of prior service cost associated with postretirement benefit plan and other employee benefit obligations	Cost of coal sales	$	(101	)	$	(105	)	$	(306	)	$	(314	)
Amortization of net actuarial gain associated with other employee benefit obligations	Cost of coal sales	25			—			75			—
		(76		)	(105		)	(231		)	(314		)
Income taxes		—			—			—			—
Total reclassifications		$	(76	)	$	(105	)	$	(231	)	$	(314	)

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Closure of Lewis Creek Underground Mine

9 Months Ended

Sep. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Closure of Lewis Creek Underground Mine

CLOSURE OF LEWIS CREEK UNDERGROUND MINE

The Company’s Lewis Creek underground mine, which produced coal from the West Kentucky #9 seam, experienced significant operating inefficiencies due to the geological conditions of the portion of the reserve being mined. As a result of the ongoing mining difficulties, a final decision was made in August 2014 not to continue advancing under the existing mine plan, but rather to retreat and mine only in the eastern portion of the reserve.

The Company completed mining of the Lewis Creek underground mine in March 2015 and has extracted the equipment, which will be utilized at its other mining operations in the future. As a result of the closure, the Company accelerated depreciation of the remaining net book value of the capitalized costs associated with the original development of the mine. Total expense recognized during the first quarter of 2015 to write-off the remaining asset was approximately $6,318, which was included as a component of "depreciation, depletion, and amortization" in the unaudited condensed consolidated statement of operations for the nine months ended September 30, 2015.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

The Company is subject to various market, operational, financial, regulatory, and legislative risks. Numerous federal, state, and local governmental permits and approvals are required for mining operations. Federal and state regulations require regular monitoring of mines and other facilities to document compliance. Monetary penalties of $1,141 and $901 related to Mine Safety and Health Administration (MSHA) fines were accrued as of September 30, 2016 and December 31, 2015, respectively.

The Company is involved from time to time in various legal matters arising in the ordinary course of business. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s consolidated cash flows, results of operations or financial condition. A summary of the significant legal matters is below.

Litigation

On July 20, 2016 the Company was notified by an Assistant U. S. Attorney for the Western District of Kentucky of an investigation into potential charges against Armstrong Coal Company, Inc., a wholly-owned subsidiary of the Company, and one or more of its current and former employees arising from alleged inaccurate respirable dust sampling at certain of the Company's underground mines. In January 2014, MSHA issued a 104(d) citation to the Parkway underground mine related to inaccurate respirable dust sampling, which the Company has challenged. In addition, a Parkway underground mine employee was terminated. The impact of any charges against the Company or its current and former employees cannot be determined at this time, and we intend to vigorously defend any such charges should they be pursued.

Coal Sales Contracts

The Company has historically sold the majority of its coal under multi-year supply agreements of varying duration. These contracts typically have specific volume and pricing arrangements for each year of the agreement, which allows customers to secure a supply for their future needs and provides the Company with greater predictability of sales volume and sales prices. Quantities sold under some of these contracts may vary from year to year within certain limits at the option of the customer or the Company. The remaining terms of the Company’s long-term contracts range from one to four years. The Company, via contractual agreements, has committed volumes of sales in 2016 of approximately 5.9 million tons.

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Other, Net

9 Months Ended

Sep. 30, 2016

Other Income and Expenses [Abstract]

Other, Net

15. OTHER, NET

During the second quarter 2015, the Company received a refund for a portion of the Kentucky sales and use taxes paid on the purchase of certain energy and energy producing fuels for the period of 2008 through 2013. The refund, including interest, totaled $4,482, which is included in "other, net" in the condensed consolidated statement of operations for the nine months ended September 30, 2015.

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Supplemental Guarantor/Non-Guarantor Financial Information

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Guarantor/Non-Guarantor Financial Information

SUPPLEMENTAL GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

In accordance with the indenture governing the Notes, certain wholly-owned subsidiaries of the Company (each, a Guarantor Subsidiary) have fully and unconditionally guaranteed the Notes, on a joint and several basis, subject to certain customary release provisions. Separate financial statements and other disclosures concerning the Guarantor Subsidiaries are not presented because management believes that such information is not material to the holders of the Notes. The following historical financial statement information is provided for the Guarantor Subsidiaries. The non-guarantor subsidiaries are considered to be “minor” as the term is defined in Rule 3-10 of Regulation S-X promulgated by the SEC, and the financial position, results of operations, and cash flows of the non-guarantor subsidiaries are, therefore, included in the condensed financial data of the Guarantor Subsidiaries.

Unaudited Supplemental Condensed Consolidating Balance Sheets

	September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	62,690		$	—		$	62,690
Accounts receivable	—			15,182			—			15,182
Inventories	—			10,053			—			10,053
Prepaid and other assets	739			1,893			—			2,632
Total current assets	739			89,818			—			90,557
Property, plant, equipment, and mine development, net	10,110			232,124			—			242,234
Investments	—			2,794			—			2,794
Investments in subsidiaries	53,511			—			(53,511		)	—
Intercompany receivables	58,937			(58,937		)	—			—
Other non-current assets	612			13,607			—			14,219
Total assets	$	123,909		$	279,406		$	(53,511	)	$	349,804
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)
Current liabilities:
Accounts payable	$	50		$	16,942		$	—		$	16,992
Accrued and other liabilities	7,124			11,454			—			18,578
Current portion of capital lease obligations	—			775			—			775
Current maturities of long-term debt	—			8,619			—			8,619
Total current liabilities	7,174			37,790			—			44,964
Long-term debt, less current maturities	190,595			9,505			—			200,100
Long-term obligation to related party	—			145,141			—			145,141
Related party payables, net	(708		)	11,074			—			10,366
Asset retirement obligations	—			14,855			—			14,855
Other non-current liabilities	110			7,507			—			7,617
Total liabilities	197,171			225,872			—			423,043
Stockholders’ equity/(deficit):
Armstrong Energy, Inc.’s equity/(deficit)	(73,262		)	53,511			(53,511		)	(73,262		)
Non-controlling interest	—			23			—			23
Total stockholders’ equity/(deficit)	(73,262		)	53,534			(53,511		)	(73,239		)
Total liabilities and stockholders’ equity/(deficit)	$	123,909		$	279,406		$	(53,511	)	$	349,804

Supplemental Condensed Consolidating Balance Sheets

	December 31, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	67,617		$	—		$	67,617
Accounts receivable	—			14,270			—			14,270
Inventories	—			14,562			—			14,562
Prepaid and other assets	110			1,842			—			1,952
Total current assets	110			98,291			—			98,401
Property, plant, equipment, and mine development, net	10,467			250,931			—			261,398
Investments	—			3,525			—			3,525
Investments in subsidiaries	69,429			—			(69,429		)	—
Intercompany receivables	70,347			(70,347		)	—			—
Other non-current assets	912			16,475			—			17,387
Total assets	$	151,265		$	298,875		$	(69,429	)	$	380,711
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)
Current liabilities:
Accounts payable	$	177		$	22,378		$	—		$	22,555
Accrued and other liabilities	1,771			11,274			—			13,045
Current portion of capital lease obligations	—			1,943			—			1,943
Current maturities of long-term debt	—			8,402			—			8,402
Total current liabilities	1,948			43,997			—			45,945
Long-term debt, less current maturities	188,890			14,618			—			203,508
Long-term obligation to related party	—			128,809			—			128,809
Related party payables, net	(4,411		)	20,824			—			16,413
Asset retirement obligations	—			13,990			—			13,990
Long-term portion of capital lease obligations	—			555			—			555
Other non-current liabilities	142			6,630			—			6,772
Total liabilities	186,569			229,423			—			415,992
Stockholders’ equity/(deficit):
Armstrong Energy, Inc.’s equity/(deficit)	(35,304		)	69,429			(69,429		)	(35,304		)
Non-controlling interest	—			23			—			23
Total stockholders’ equity/(deficit)	(35,304		)	69,452			(69,429		)	(35,281		)
Total liabilities and stockholders’ equity/(deficit)	$	151,265		$	298,875		$	(69,429	)	$	380,711

Unaudited Supplemental Condensed Consolidating Statements of Operations

	Three Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	65,388		$	—	$	65,388
Costs and expenses:
Operating costs and expenses	—			52,357			—		52,357
Production royalty to related party	—			1,866			—		1,866
Depreciation, depletion, and amortization	303			7,433			—		7,736
Asset retirement obligation expenses	—			350			—		350
Asset impairment and restructuring charges	—			—			—		—
General and administrative expenses	393			2,706			—		3,099
Operating loss	(696		)	676			—		(20		)
Other income (expense):
Interest expense, net	(6,412		)	(2,386		)	—		(8,798		)
Other, net	(626		)	(280		)	—		(906		)
Loss from investment in subsidiaries	(1,990		)	—			1,990		—
Loss before income taxes	(9,724		)	(1,990		)	1,990		(9,724		)
Income taxes	—			—			—		—
Net loss	(9,724		)	(1,990		)	1,990		(9,724		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(9,724	)	$	(1,990	)	$	1,990	$	(9,724	)

	Three Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	89,206		$	—	$	89,206
Costs and expenses:
Operating costs and expenses	—			69,843			—		69,843
Production royalty to related party	—			1,980			—		1,980
Depreciation, depletion, and amortization	518			10,472			—		10,990
Asset retirement obligation expenses	—			756			—		756
Asset impairment and restructuring charges	4,490			134,189					138,679
General and administrative expenses	424			3,217			—		3,641
Operating loss	(5,432		)	(131,251		)	—		(136,683		)
Other income (expense):
Interest expense, net	(6,343		)	(2,860		)	—		(9,203		)
Other, net	—			154			—		154
Income from investment in subsidiaries	(134,011		)	—			134,011		—
Loss before income taxes	(145,786		)	(133,957		)	134,011		(145,732		)
Income taxes	—			(54		)	—		(54		)
Net loss	(145,786		)	(134,011		)	134,011		(145,786		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(145,786	)	$	(134,011	)	$	134,011	$	(145,786	)

Unaudited Supplemental Condensed Consolidating Statements of Operations

	Nine Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	186,141		$	—	$	186,141
Costs and expenses:
Operating costs and expenses	—			155,671			—		155,671
Production royalty to related party	—			5,206			—		5,206
Depreciation, depletion, and amortization	908			21,986			—		22,894
Asset retirement obligation expenses	—			1,019			—		1,019
Asset impairment and restructuring charges	—			3,381			—		3,381
General and administrative expenses	1,153			8,386			—		9,539
Operating loss	(2,061		)	(9,508		)	—		(11,569		)
Other income (expense):
Interest expense, net	(19,111		)	(6,344		)	—		(25,455		)
Other, net	(1,077		)	51			—		(1,026		)
Loss from investment in subsidiaries	(15,918		)	—			15,918		—
Loss before income taxes	(38,167		)	(15,801		)	15,918		(38,050		)
Income taxes	—			(117		)	—		(117		)
Net loss	(38,167		)	(15,918		)	15,918		(38,167		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(38,167	)	$	(15,918	)	$	15,918	$	(38,167	)

	Nine Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	278,680		$	—	$	278,680
Costs and expenses:
Operating costs and expenses	—			218,826			—		218,826
Production royalty to related party	—			6,034			—		6,034
Depreciation, depletion, and amortization	1,530			36,869			—		38,399
Asset retirement obligation expenses	—			2,340			—		2,340
Asset impairment and restructuring charges	4,490			134,189					138,679
General and administrative expenses	1,206			11,357			—		12,563
Operating loss	(7,226		)	(130,935		)	—		(138,161		)
Other income (expense):
Interest expense, net	(17,620		)	(8,830		)	—		(26,450		)
Other, net	—			4,778			—		4,778
Loss from investment in subsidiaries	(135,300		)	—			135,300		—
Loss before income taxes	(160,146		)	(134,987		)	135,300		(159,833		)
Income taxes	—			(313		)	—		(313		)
Net loss	(160,146		)	(135,300		)	135,300		(160,146		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(160,146	)	$	(135,300	)	$	135,300	$	(160,146	)

Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income (Loss)

	Three Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(9,724	)	$	(1,990	)	$	1,990	$	(9,724	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			76			—		76
Other comprehensive income	—			76			—		76
Comprehensive loss	(9,724		)	(1,914		)	1,990		(9,648		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(9,724	)	$	(1,914	)	$	1,990	$	(9,648	)

	Three Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(145,786	)	$	(134,011	)	$	134,011	$	(145,786	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			105			—		105
Other comprehensive income	—			105			—		105
Comprehensive loss	(145,786		)	(133,906		)	134,011		(145,681		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(145,786	)	$	(133,906	)	$	134,011	$	(145,681	)

	Nine Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(38,167	)	$	(15,918	)	$	15,918	$	(38,167	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			231			—		231
Other comprehensive income	—			231			—		231
Comprehensive loss	(38,167		)	(15,687		)	15,918		(37,936		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(38,167	)	$	(15,687	)	$	15,918	$	(37,936	)

Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income (Loss)

	Nine Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(160,146	)	$	(135,300	)	$	135,300	$	(160,146	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			314			—		314
Other comprehensive income	—			314			—		314
Comprehensive loss	(160,146		)	(134,986		)	135,300		(159,832		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(160,146	)	$	(134,986	)	$	135,300	$	(159,832	)

Unaudited Supplemental Condensed Consolidating Statements of Cash Flows

	Nine Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Consolidated
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities:	$	(10,857	)	$	15,766		$	4,909
Cash Flows from Investing Activities:
Investment in property, plant, equipment, and mine development	(552		)	(1,579		)	(2,131		)
Proceeds from partial disposal of investment in equity affiliate	—			500			500
Net cash used in investing activities	(552		)	(1,079		)	(1,631		)
Cash Flows from Financing Activities:
Payment on capital lease obligations	—			(1,723		)	(1,723		)
Payment of long-term debt	—			(6,482		)	(6,482		)
Transactions with affiliates, net	11,409			(11,409		)	—
Net cash provided by (used in) financing activities	11,409			(19,614		)	(8,205		)
Net change in cash and cash equivalents	—			(4,927		)	(4,927		)
Cash and cash equivalents, at the beginning of the period	—			67,617			67,617
Cash and cash equivalents, at the end of the period	$	—		$	62,690		$	62,690

	Nine Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Consolidated
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities:	$	(13,972	)	$	49,908		$	35,936
Cash Flows from Investing Activities:
Investment in property, plant, equipment, and mine development	(1,864		)	(15,017		)	(16,881		)
Proceeds from disposal of fixed assets	—			475			475
Net cash used in investing activities	(1,864		)	(14,542		)	(16,406		)
Cash Flows from Financing Activities:
Payment on capital lease obligations	—			(2,017		)	(2,017		)
Payment of long-term debt	—			(4,470		)	(4,470		)
Transactions with affiliates, net	15,836			(15,836		)	—
Net cash provided by (used in) financing activities	15,836			(22,323		)	(6,487		)
Net change in cash and cash equivalents	—			13,043			13,043
Cash and cash equivalents, at the beginning of the period	—			59,518			59,518
Cash and cash equivalents, at the end of the period	$	—		$	72,561		$	72,561

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Description of Business and Entity Structure (Policies)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Recent Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (FASB) issued updated guidance regarding the accounting for leases. This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier application permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this update on its consolidated financial statements.

In November 2015, the FASB issued guidance that eliminates the requirement to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The new guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. The Company adopted this standard as of December 31, 2015. While the adoption of this guidance impacted the Company's balance sheet disclosure, it did not affect the Company's results of operations or cash flows.

In April 2015, the FASB issued guidance requiring an entity to present deferred financing costs on the balance sheet as a direct deduction from the related debt liability as opposed to an asset. Amortization of the costs will continue to be reported as interest expense. In August 2015, the FASB issued an accounting standards update about the presentation and subsequent measurement of deferred financing costs associated with line-of-credit arrangements, which allows for the presentation of deferred financing costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. The updates are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. The Company adopted these standards during the three months ended March 31, 2016. The Company continues to report the unamortized deferred financing costs associated with its asset-based revolving credit facility dated December 21, 2012 (the 2012 Credit Facility) within other non-current assets, whereas unamortized deferred financing costs associated with the Company's 11.75% Senior Secured Notes due 2019 (the Notes) have been reclassified for all periods presented.

In February 2015, the FASB issued guidance changing the requirements and analysis required when determining the reporting entity's need to consolidate an entity, including modifying the evaluation of limited partnerships variable interest status, the presumption that a general partner should consolidate a limited partnership, and the consolidation criterion applied by a reporting entity involved with variable interest entities. The Company adopted this guidance during the first quarter of 2016, and it did not have an impact on its historical consolidation conclusions.

In August 2014, the FASB issued guidance on management’s responsibility in evaluating, at each annual and interim reporting period, whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter with early adoption permitted.

In May 2014, the FASB issued a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard requires revenue to be recognized when promised goods or services are transferred to a customer in an amount that reflects the consideration expected in exchange for those goods or services. The standard permits the use of either the full retrospective or modified retrospective transition method. This guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted to the original effective date of December 15, 2016. The Company is currently evaluating the impact of this new pronouncement on its financial statements.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2016

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories consist of the following amounts:

	September 30, 2016		December 31, 2015
Materials and supplies	$	8,755	$	9,634
Coal—raw and saleable	1,298		4,928
Total	$	10,053	$	14,562

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Accrued and Other Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

Payables and Accruals [Abstract]

Summary of Accrued and Other Liabilities

Accrued and other liabilities consist of the following amounts:

	September 30, 2016		December 31, 2015
Payroll and related benefits	$	5,128	$	6,454
Taxes other than income taxes	4,164		3,134
Interest	6,854		987
Asset retirement obligations	94		94
Royalties	628		630
Other	1,710		1,746
Total	$	18,578	$	13,045

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Other Non-Current Assets (Tables)

9 Months Ended

Sep. 30, 2016

Other Assets, Noncurrent [Abstract]

Details of Other Non-Current Assets

Other non-current assets consist of the following amounts:

	September 30, 2016		December 31, 2015
Escrows and deposits	$	5,213	$	5,233
Restricted surety and cash bonds	6,055		6,115
Advanced royalties	2,462		5,272
Deferred financing costs, net associated with 2012 Credit Facility	432		697
Intangible assets, net	57		70
Total	$	14,219	$	17,387

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Summary of Long-Term Indebtedness

The Company’s total indebtedness consisted of the following:

Type	September 30, 2016		December 31, 2015
Notes	$	190,595	$	188,890
Other	18,124		23,020
	208,719		211,910
Less: current maturities	8,619		8,402
Total long-term debt	$	200,100	$	203,508

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Estimated Fair Market Values of Company's Notes

The estimated fair market values of the Company’s Notes, which was determined using Level 2 inputs, and long-term obligation to related party, which was determined using Level 3 inputs, are as follows:

	September 30, 2016				December 31, 2015
	Fair Value		Carrying Value		Fair Value		Carrying Value
11.75% Senior Secured Notes due 2019(1)	$	78,500	$	190,595	$	82,000	$	188,890
Long-term obligation to related party	107,788		145,141		94,811		128,809
Total	$	186,288	$	335,736	$	176,811	$	317,699

(1) The carrying value of the Notes is net of the unamortized OID and deferred financing costs as of September 30, 2016 and December 31, 2015, respectively.

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2016

Postemployment Benefits [Abstract]

Schedule of Net Periodic Postretirement Benefit Cost

Net periodic postretirement benefit cost included the following components:

	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015
Service cost for benefits earned	$	229	$	304	$	688	$	912
Interest cost on accumulated postretirement benefit obligation	43		30		129		91
Amortization of prior service cost	24		26		71		78
Net periodic postretirement cost	$	296	$	360	$	888	$	1,081

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Changes in Accumulated Other Comprehensive Loss, Net of Tax

Changes in accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2016 consisted of the following:

	Postretirement Benefit Plan and Other Employee Benefit Obligations			Accumulated Other Comprehensive Loss
Balance as of December 31, 2015	$	(1,883	)	$	(1,883	)
Amounts reclassified from accumulated other comprehensive loss	231			231
Current period change	—			—
Balance as of September 30, 2016	$	(1,652	)	$	(1,652	)

Summary of Reclassifications Out of Accumulated Other Comprehensive Loss

The following is a summary of reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2016 and 2015:

Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line  Item in the Condensed  Consolidated Statement of Operations	Amounts Reclassified from Accumulated Other Comprehensive Loss For the Three Months Ended September 30,						Amounts Reclassified from Accumulated Other Comprehensive Loss For the Nine Months Ended September 30,
		2016			2015			2016			2015
Amortization of prior service cost associated with postretirement benefit plan and other employee benefit obligations	Cost of coal sales	$	(101	)	$	(105	)	$	(306	)	$	(314	)
Amortization of net actuarial gain associated with other employee benefit obligations	Cost of coal sales	25			—			75			—
		(76		)	(105		)	(231		)	(314		)
Income taxes		—			—			—			—
Total reclassifications		$	(76	)	$	(105	)	$	(231	)	$	(314	)

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Supplemental Guarantor/Non-Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Condensed Consolidating Balance Sheets

Supplemental Condensed Consolidating Balance Sheets

	September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	62,690		$	—		$	62,690
Accounts receivable	—			15,182			—			15,182
Inventories	—			10,053			—			10,053
Prepaid and other assets	739			1,893			—			2,632
Total current assets	739			89,818			—			90,557
Property, plant, equipment, and mine development, net	10,110			232,124			—			242,234
Investments	—			2,794			—			2,794
Investments in subsidiaries	53,511			—			(53,511		)	—
Intercompany receivables	58,937			(58,937		)	—			—
Other non-current assets	612			13,607			—			14,219
Total assets	$	123,909		$	279,406		$	(53,511	)	$	349,804
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)
Current liabilities:
Accounts payable	$	50		$	16,942		$	—		$	16,992
Accrued and other liabilities	7,124			11,454			—			18,578
Current portion of capital lease obligations	—			775			—			775
Current maturities of long-term debt	—			8,619			—			8,619
Total current liabilities	7,174			37,790			—			44,964
Long-term debt, less current maturities	190,595			9,505			—			200,100
Long-term obligation to related party	—			145,141			—			145,141
Related party payables, net	(708		)	11,074			—			10,366
Asset retirement obligations	—			14,855			—			14,855
Other non-current liabilities	110			7,507			—			7,617
Total liabilities	197,171			225,872			—			423,043
Stockholders’ equity/(deficit):
Armstrong Energy, Inc.’s equity/(deficit)	(73,262		)	53,511			(53,511		)	(73,262		)
Non-controlling interest	—			23			—			23
Total stockholders’ equity/(deficit)	(73,262		)	53,534			(53,511		)	(73,239		)
Total liabilities and stockholders’ equity/(deficit)	$	123,909		$	279,406		$	(53,511	)	$	349,804

Supplemental Condensed Consolidating Balance Sheets

	December 31, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	67,617		$	—		$	67,617
Accounts receivable	—			14,270			—			14,270
Inventories	—			14,562			—			14,562
Prepaid and other assets	110			1,842			—			1,952
Total current assets	110			98,291			—			98,401
Property, plant, equipment, and mine development, net	10,467			250,931			—			261,398
Investments	—			3,525			—			3,525
Investments in subsidiaries	69,429			—			(69,429		)	—
Intercompany receivables	70,347			(70,347		)	—			—
Other non-current assets	912			16,475			—			17,387
Total assets	$	151,265		$	298,875		$	(69,429	)	$	380,711
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)
Current liabilities:
Accounts payable	$	177		$	22,378		$	—		$	22,555
Accrued and other liabilities	1,771			11,274			—			13,045
Current portion of capital lease obligations	—			1,943			—			1,943
Current maturities of long-term debt	—			8,402			—			8,402
Total current liabilities	1,948			43,997			—			45,945
Long-term debt, less current maturities	188,890			14,618			—			203,508
Long-term obligation to related party	—			128,809			—			128,809
Related party payables, net	(4,411		)	20,824			—			16,413
Asset retirement obligations	—			13,990			—			13,990
Long-term portion of capital lease obligations	—			555			—			555
Other non-current liabilities	142			6,630			—			6,772
Total liabilities	186,569			229,423			—			415,992
Stockholders’ equity/(deficit):
Armstrong Energy, Inc.’s equity/(deficit)	(35,304		)	69,429			(69,429		)	(35,304		)
Non-controlling interest	—			23			—			23
Total stockholders’ equity/(deficit)	(35,304		)	69,452			(69,429		)	(35,281		)
Total liabilities and stockholders’ equity/(deficit)	$	151,265		$	298,875		$	(69,429	)	$	380,711

Supplemental Condensed Consolidated Statements of Operations

Supplemental Condensed Consolidating Statements of Operations

	Three Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	65,388		$	—	$	65,388
Costs and expenses:
Operating costs and expenses	—			52,357			—		52,357
Production royalty to related party	—			1,866			—		1,866
Depreciation, depletion, and amortization	303			7,433			—		7,736
Asset retirement obligation expenses	—			350			—		350
Asset impairment and restructuring charges	—			—			—		—
General and administrative expenses	393			2,706			—		3,099
Operating loss	(696		)	676			—		(20		)
Other income (expense):
Interest expense, net	(6,412		)	(2,386		)	—		(8,798		)
Other, net	(626		)	(280		)	—		(906		)
Loss from investment in subsidiaries	(1,990		)	—			1,990		—
Loss before income taxes	(9,724		)	(1,990		)	1,990		(9,724		)
Income taxes	—			—			—		—
Net loss	(9,724		)	(1,990		)	1,990		(9,724		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(9,724	)	$	(1,990	)	$	1,990	$	(9,724	)

	Three Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	89,206		$	—	$	89,206
Costs and expenses:
Operating costs and expenses	—			69,843			—		69,843
Production royalty to related party	—			1,980			—		1,980
Depreciation, depletion, and amortization	518			10,472			—		10,990
Asset retirement obligation expenses	—			756			—		756
Asset impairment and restructuring charges	4,490			134,189					138,679
General and administrative expenses	424			3,217			—		3,641
Operating loss	(5,432		)	(131,251		)	—		(136,683		)
Other income (expense):
Interest expense, net	(6,343		)	(2,860		)	—		(9,203		)
Other, net	—			154			—		154
Income from investment in subsidiaries	(134,011		)	—			134,011		—
Loss before income taxes	(145,786		)	(133,957		)	134,011		(145,732		)
Income taxes	—			(54		)	—		(54		)
Net loss	(145,786		)	(134,011		)	134,011		(145,786		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(145,786	)	$	(134,011	)	$	134,011	$	(145,786	)

Unaudited Supplemental Condensed Consolidating Statements of Operations

	Nine Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	186,141		$	—	$	186,141
Costs and expenses:
Operating costs and expenses	—			155,671			—		155,671
Production royalty to related party	—			5,206			—		5,206
Depreciation, depletion, and amortization	908			21,986			—		22,894
Asset retirement obligation expenses	—			1,019			—		1,019
Asset impairment and restructuring charges	—			3,381			—		3,381
General and administrative expenses	1,153			8,386			—		9,539
Operating loss	(2,061		)	(9,508		)	—		(11,569		)
Other income (expense):
Interest expense, net	(19,111		)	(6,344		)	—		(25,455		)
Other, net	(1,077		)	51			—		(1,026		)
Loss from investment in subsidiaries	(15,918		)	—			15,918		—
Loss before income taxes	(38,167		)	(15,801		)	15,918		(38,050		)
Income taxes	—			(117		)	—		(117		)
Net loss	(38,167		)	(15,918		)	15,918		(38,167		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(38,167	)	$	(15,918	)	$	15,918	$	(38,167	)

	Nine Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Revenue	$	—		$	278,680		$	—	$	278,680
Costs and expenses:
Operating costs and expenses	—			218,826			—		218,826
Production royalty to related party	—			6,034			—		6,034
Depreciation, depletion, and amortization	1,530			36,869			—		38,399
Asset retirement obligation expenses	—			2,340			—		2,340
Asset impairment and restructuring charges	4,490			134,189					138,679
General and administrative expenses	1,206			11,357			—		12,563
Operating loss	(7,226		)	(130,935		)	—		(138,161		)
Other income (expense):
Interest expense, net	(17,620		)	(8,830		)	—		(26,450		)
Other, net	—			4,778			—		4,778
Loss from investment in subsidiaries	(135,300		)	—			135,300		—
Loss before income taxes	(160,146		)	(134,987		)	135,300		(159,833		)
Income taxes	—			(313		)	—		(313		)
Net loss	(160,146		)	(135,300		)	135,300		(160,146		)
Income attributable to non-controlling interest	—			—			—		—
Net loss attributable to common stockholders	$	(160,146	)	$	(135,300	)	$	135,300	$	(160,146	)

Supplemental Condensed Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(9,724	)	$	(1,990	)	$	1,990	$	(9,724	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			76			—		76
Other comprehensive income	—			76			—		76
Comprehensive loss	(9,724		)	(1,914		)	1,990		(9,648		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(9,724	)	$	(1,914	)	$	1,990	$	(9,648	)

	Three Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(145,786	)	$	(134,011	)	$	134,011	$	(145,786	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			105			—		105
Other comprehensive income	—			105			—		105
Comprehensive loss	(145,786		)	(133,906		)	134,011		(145,681		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(145,786	)	$	(133,906	)	$	134,011	$	(145,681	)

	Nine Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(38,167	)	$	(15,918	)	$	15,918	$	(38,167	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			231			—		231
Other comprehensive income	—			231			—		231
Comprehensive loss	(38,167		)	(15,687		)	15,918		(37,936		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(38,167	)	$	(15,687	)	$	15,918	$	(37,936	)

Unaudited Supplemental Condensed Consolidating Statements of Comprehensive Income (Loss)

	Nine Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Eliminations		Consolidated
Net loss	$	(160,146	)	$	(135,300	)	$	135,300	$	(160,146	)
Other comprehensive income (loss):
Postretirement benefit plan and other employee benefit obligations, net of tax	—			314			—		314
Other comprehensive income	—			314			—		314
Comprehensive loss	(160,146		)	(134,986		)	135,300		(159,832		)
Less: comprehensive income (loss) attributable to non-controlling interest	—			—			—		—
Comprehensive loss attributable to common stockholders	$	(160,146	)	$	(134,986	)	$	135,300	$	(159,832	)

Supplemental Condensed Consolidating Statements of Cash Flows

Supplemental Condensed Consolidating Statements of Cash Flows

	Nine Months Ended September 30, 2016
	Parent / Issuer			Guarantor Subsidiaries			Consolidated
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities:	$	(10,857	)	$	15,766		$	4,909
Cash Flows from Investing Activities:
Investment in property, plant, equipment, and mine development	(552		)	(1,579		)	(2,131		)
Proceeds from partial disposal of investment in equity affiliate	—			500			500
Net cash used in investing activities	(552		)	(1,079		)	(1,631		)
Cash Flows from Financing Activities:
Payment on capital lease obligations	—			(1,723		)	(1,723		)
Payment of long-term debt	—			(6,482		)	(6,482		)
Transactions with affiliates, net	11,409			(11,409		)	—
Net cash provided by (used in) financing activities	11,409			(19,614		)	(8,205		)
Net change in cash and cash equivalents	—			(4,927		)	(4,927		)
Cash and cash equivalents, at the beginning of the period	—			67,617			67,617
Cash and cash equivalents, at the end of the period	$	—		$	62,690		$	62,690

	Nine Months Ended September 30, 2015
	Parent / Issuer			Guarantor Subsidiaries			Consolidated
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities:	$	(13,972	)	$	49,908		$	35,936
Cash Flows from Investing Activities:
Investment in property, plant, equipment, and mine development	(1,864		)	(15,017		)	(16,881		)
Proceeds from disposal of fixed assets	—			475			475
Net cash used in investing activities	(1,864		)	(14,542		)	(16,406		)
Cash Flows from Financing Activities:
Payment on capital lease obligations	—			(2,017		)	(2,017		)
Payment of long-term debt	—			(4,470		)	(4,470		)
Transactions with affiliates, net	15,836			(15,836		)	—
Net cash provided by (used in) financing activities	15,836			(22,323		)	(6,487		)
Net change in cash and cash equivalents	—			13,043			13,043
Cash and cash equivalents, at the beginning of the period	—			59,518			59,518
Cash and cash equivalents, at the end of the period	$	—		$	72,561		$	72,561

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Description of Business and Entity Structure - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 21, 2012
Schedule Of Description Of Business [Line Items]
Restructuring charges	$ 626,000	$ 1,001,000	$ 1,077,000	$ 1,001,000
Elk Creek General Partner [Member]
Schedule Of Description Of Business [Line Items]
Partial disposal of investment in equity affiliate	0.20%		0.20%
11.75% Senior Secured Notes due 2019 [Member]
Schedule Of Description Of Business [Line Items]
Interest rate on notes					11.75%

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Asset Impairment and Restructuring Charges (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Non-cash activity with related party, net			$ 3,381,000	$ 137,678,000
Restructuring charges	$ 626,000	$ 1,001,000	1,077,000	1,001,000
Restructuring Costs and Asset Impairment Charges	$ 0	$ 138,679,000	$ 3,381,000	$ 138,679,000

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Mineral reserve lease (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Oct. 01, 2010 T
Mineral Reserve Lease [Abstract]
Coal Reserves Acquired | T					100,000,000
Additional Lease Period			5 years
Lease termination fee			0
Asset impairment and restructuring charges | $	$ 0	$ 138,679	$ 3,381	$ 138,679

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Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Materials and supplies	$ 8,755	$ 9,634
Coal—raw and saleable	1,298	4,928
Total	$ 10,053	$ 14,562

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Accrued and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Payroll and related benefits	$ 5,128	$ 6,454
Taxes other than income taxes	4,164	3,134
Interest	6,854	987
Asset retirement obligations	94	94
Royalties	628	630
Other	1,710	1,746
Total	$ 18,578	$ 13,045

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Other Non-Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Assets, Noncurrent [Abstract]
Escrows and deposits	$ 5,213	$ 5,233
Restricted surety and cash bonds	6,055	6,115
Advanced royalties	2,462	5,272
Deferred financing costs, net associated with 2012 Credit Facility	432	697
Intangible assets, net	57	70
Total	$ 14,219	$ 17,387

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Related Party Transactions - Merger of Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Income from equity interest			$ 89	$ 116
Thoroughbred Resources, L.P. [Member]
Related Party Transaction [Line Items]
Income from equity interest	$ 25	$ 40	$ 89	$ 116

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Related Party Transactions - Sale of Coal Reserves (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Jun. 01, 2016	Dec. 31, 2015	May 01, 2015
Related Party Transaction [Line Items]
Contingent interest rate			7.00%
Long-term obligation to related party	$ 145,141		$ 145,141			$ 128,809
Thoroughbred Resources, L.P. [Member]
Related Party Transaction [Line Items]
Contingent interest rate			5.80%
Long-term obligation to related party	145,141		$ 145,141			$ 128,809
Interest expense for long term obligation	$ 2,120	$ 2,675	$ 5,474	$ 8,311
Thoroughbred Resources, L.P. [Member] | Undivided Interest [Member]
Related Party Transaction [Line Items]
Percentage Of Ownership Interest In Assets Sold					17.81%		12.10%
Forgiveness Of Loan Receivable From Related Party					$ 16,413		$ 18,172
Thoroughbred Resources, L.P. [Member] | Muhlenberg And Ohio [Member] | Undivided Interest [Member]
Related Party Transaction [Line Items]
Cumulative Percentage Ownership Interest In Assets Sold	79.19%		79.19%			61.38%

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Related Party Transactions - Lease of Coal Reserves (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Production royalty to related party	$ 1,866	$ 1,980	$ 5,206	$ 6,034
Thoroughbred Resources, L.P. [Member]
Related Party Transaction [Line Items]
Production royalty to related party	$ 1,867		$ 5,206	$ 6,034
Thoroughbred Resources LP [Member]
Related Party Transaction [Line Items]
Production royalty to related party		$ 1,980

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Related Party Transactions - Administrative Services Agreements and Other (Details) - Administrative Services Agreement [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Thoroughbred Resources LP [Member]
Related Party Transaction [Line Items]
Compensation received from related party	$ 236		$ 707	$ 900
Thoroughbred Resources, L.P. [Member]
Related Party Transaction [Line Items]
Compensation received from related party		$ 300

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Related Party Transactions Other (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) $ / Ton	Sep. 30, 2015 USD ($)
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 1,866	$ 1,980	$ 5,206	$ 6,034
Executive Employee [Member]
Related Party Transaction [Line Items]
Royalty Agreement Basis Compensation To Certain Key Executives | $ / Ton			0.05
Initial Lease Period			20 years
Related Party Transaction, Expenses from Transactions with Related Party	$ 54	$ 75	$ 154	$ 244

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Related Party Transactions Investments (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Proceeds from Sale of Equity Method Investments		$ 500	$ 0
Equity Method Investment, Realized Gain (Loss) on Disposal	$ 320	$ (320)	$ 0
General Partner [Member]
Related Party Transaction [Line Items]
Partial disposal of investment in equity affiliate	0.20%	0.20%
Equity Method Investment, Ownership Percentage	0.90%	0.90%

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Long-Term Debt - Summary of Long-Term Indebtedness (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2013
Long-term Debt, Current and Noncurrent [Abstract]
Other	$ 18,124		$ 23,020
Long-term debt	208,719		211,910
Less: current maturities	8,619		8,402
Total long-term debt	200,100		203,508
11.75% Senior Secured Notes due 2019 [Member]
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense	$ 5,535		$ 6,529
Interest rate on notes	11.75%		11.75%	11.75%
Debt Instrument Maturity Year	2019	2019
Long-term Debt, Current and Noncurrent [Abstract]
Notes	$ 190,595		$ 188,890
Maximum [Member] | Other Debt Obligations [Member]
Debt Instrument [Line Items]
Interest rate on notes	6.50%
Minimum [Member] | Other Debt Obligations [Member]
Debt Instrument [Line Items]
Interest rate on notes	2.99%

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Long-Term Debt - Senior Secured Notes Due 2019 (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
	Dec. 21, 2012	Sep. 30, 2016	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2013
Debt Instrument [Line Items]
Long-term debt		$ 208,719		$ 211,910
11.75% Senior Secured Notes due 2019 [Member]
Debt Instrument [Line Items]
Interest rate on notes		11.75%		11.75%	11.75%
Debt Instrument Maturity Year		2019	2019
Notes issued at an original issue discount	96.567%
Unamortized original issue discount		$ 3,870		$ 4,581
Proceeds to prepay and terminate debt issuance	$ 123,698
Proceeds to pay fees and expenses	8,358
Debt Offering Amount [Member] | 11.75% Senior Secured Notes due 2019 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 200,000

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Long-Term Debt - 2012 Credit Facility (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Fixed Charge Coverage Ratio One	1.00%
2012 Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving credit facility, period (in years)	5 years
Credit facility	$ 50,000,000
Revolving credit facility, expire date	Dec. 21, 2017
Credit facility, amount outstanding	$ 0	$ 0
Credit facility, available for borrowings	14,399,000
Deferred finance fees	1,198,000
Letter of Credit [Member] | 2012 Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility	10,000,000
Swingline Loan Sub-Facility [Member] | 2012 Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility	$ 5,000,000

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Fair Value of Financial Instruments - Estimated Fair Market Values of Company's Notes (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2013
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Carrying value of senior notes	$ 208,719		$ 211,910
Carrying value of long-term obligation to related party	$ 145,141		$ 128,809
11.75% Senior Secured Notes due 2019 [Member]
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	11.75%		11.75%	11.75%
Debt Instrument Maturity Year	2019	2019
Fair Value [Member]
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Fair value of senior notes and long term obligation to related party, Total	$ 186,288		$ 176,811
Fair Value [Member] | Level 2 Inputs [Member]
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	11.75%		11.75%
Debt Instrument Maturity Year	2019	2019
Fair Value [Member] | Level 2 Inputs [Member] | 11.75% Senior Secured Notes due 2019 [Member]
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Fair value of senior notes and long term obligation to related party	$ 78,500		$ 82,000
Fair Value [Member] | Level 3 Inputs [Member]
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Fair value of long term obligation to related party	107,788		94,811
Carrying Value [Member]
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Carrying value of senior notes and long term obligation to related party, Total	$ 335,736		$ 317,699
Carrying Value [Member] | Level 2 Inputs [Member]
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	11.75%		11.75%
Debt Instrument Maturity Year	2019	2019
Carrying Value [Member] | Level 2 Inputs [Member] | 11.75% Senior Secured Notes due 2019 [Member]
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Carrying value of senior notes	$ 190,595		$ 188,890
Carrying Value [Member] | Level 3 Inputs [Member]
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items]
Carrying value of long-term obligation to related party	$ 145,141		$ 128,809

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Employee Benefit Plans - Schedule of Net Periodic Postretirement Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Postemployment Benefits [Abstract]
Service cost for benefits earned	$ 229	$ 304	$ 688	$ 912
Interest cost on accumulated postretirement benefit obligation	43	30	129	91
Amortization of prior service cost	24	26	71	78
Net periodic postretirement cost	$ 296	$ 360	$ 888	$ 1,081

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Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ (1,883)
Amounts reclassified from accumulated other comprehensive loss	231
Current period change	0
Ending Balance	(1,652)
Postretirement Benefit Plan [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(1,883)
Amounts reclassified from accumulated other comprehensive loss	231
Current period change	0
Ending Balance	$ (1,652)

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Accumulated Other Comprehensive Loss - Summary of Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income taxes	$ 0	$ (54)	$ (117)	$ (313)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from accumulated other comprehensive loss	(76)	(105)	(231)	(314)
Income taxes	0	0	0	0
Total reclassifications	(76)	(105)	(231)	(314)
Postretirement Benefit Plan [Member] | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | Cost of Coal Sales [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Prior service cost	(101)	(105)	(306)	(314)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax	$ 25	$ 0	$ 75	$ 0

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Closure of Lewis Creek Underground Mine - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Depreciation Depletion and Amortization Expenses [Member] | Mine development costs [Member]
Components Of Balance Sheet [Line Items]
Total expense recognized to write-off mine	$ 6,318

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Commitments and Contingencies - Additional Information (Detail) $ in Thousands, T in Millions	9 Months Ended
	Sep. 30, 2016 USD ($) T	Dec. 31, 2015 USD ($)
Coal Supply Commitment [Member]
Contingencies And Commitments [Line Items]
Coal supply agreements range, minimum (in years)	1 year
Coal supply agreements range, maximum (in years)	4 years
Committed volume of sales in 2015 (in tons) | T	5.9
Mine Safety and Health Administration [Member]
Contingencies And Commitments [Line Items]
Penalties accrued | $	$ 1,141	$ 901

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Other, Net (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Other Income Expense [Line Items]
Refund received	$ 4,482	$ 4,482

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Supplemental Guarantor/Non-Guarantor Financial Information - Supplemental Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 62,690	$ 67,617	$ 72,561	$ 72,561	$ 59,518
Accounts receivable	15,182	14,270
Inventories	10,053	14,562
Prepaid and other assets	2,632	1,952
Total current assets	90,557	98,401
Property, plant, equipment, and mine development, net	242,234	261,398
Investments	2,794	3,525
Other non-current assets	14,219	17,387
Total assets	349,804	380,711
Current liabilities:
Accounts payable	16,992	22,555
Accrued and other liabilities	18,578	13,045
Current portion of capital lease obligations	775	1,943
Current maturities of long-term debt	8,619	8,402
Total current liabilities	44,964	45,945
Long-term debt, less current maturities	200,100	203,508
Long-term obligation to related party	145,141	128,809
Related party payables, net	10,366	16,413
Asset retirement obligations	14,855	13,990
Long-term portion of capital lease obligations	0	555
Other non-current liabilities	7,617	6,772
Total liabilities	423,043	415,992
Stockholders’ deficit:
Armstrong Energy, Inc.’s equity/(deficit)	(73,262)	(35,304)
Non-controlling interest	23	23
Total stockholders’ deficit	(73,239)	(35,281)
Total liabilities and stockholders’ deficit	349,804	380,711
Eliminations [Member]
Current assets:
Investments in subsidiaries	(53,511)	(69,429)
Total assets	(53,511)	(69,429)
Stockholders’ deficit:
Armstrong Energy, Inc.’s equity/(deficit)	(53,511)	(69,429)
Total stockholders’ deficit	(53,511)	(69,429)
Total liabilities and stockholders’ deficit	(53,511)	(69,429)
Parent / Issuer [Member]
Current assets:
Prepaid and other assets	739	110
Total current assets	739	110
Property, plant, equipment, and mine development, net	10,110	10,467
Investments in subsidiaries	53,511	69,429
Intercompany receivables	58,937	70,347
Other non-current assets	612	912
Total assets	123,909	151,265
Current liabilities:
Accounts payable	50	177
Accrued and other liabilities	7,124	1,771
Total current liabilities	7,174	1,948
Long-term debt, less current maturities	190,595	188,890
Related party payables, net	(708)	(4,411)
Other non-current liabilities	110	142
Total liabilities	197,171	186,569
Stockholders’ deficit:
Armstrong Energy, Inc.’s equity/(deficit)	(73,262)	(35,304)
Total stockholders’ deficit	(73,262)	(35,304)
Total liabilities and stockholders’ deficit	123,909	151,265
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	62,690	67,617		$ 72,561	$ 59,518
Accounts receivable	15,182	14,270
Inventories	10,053	14,562
Prepaid and other assets	1,893	1,842
Total current assets	89,818	98,291
Property, plant, equipment, and mine development, net	232,124	250,931
Investments	2,794	3,525
Intercompany receivables	(58,937)	(70,347)
Other non-current assets	13,607	16,475
Total assets	279,406	298,875
Current liabilities:
Accounts payable	16,942	22,378
Accrued and other liabilities	11,454	11,274
Current portion of capital lease obligations	775	1,943
Current maturities of long-term debt	8,619	8,402
Total current liabilities	37,790	43,997
Long-term debt, less current maturities	9,505	14,618
Long-term obligation to related party	145,141	128,809
Related party payables, net	11,074	20,824
Asset retirement obligations	14,855	13,990
Long-term portion of capital lease obligations		555
Other non-current liabilities	7,507	6,630
Total liabilities	225,872	229,423
Stockholders’ deficit:
Armstrong Energy, Inc.’s equity/(deficit)	53,511	69,429
Non-controlling interest	23	23
Total stockholders’ deficit	53,534	69,452
Total liabilities and stockholders’ deficit	$ 279,406	$ 298,875

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Supplemental Guarantor/Non-Guarantor Financial Information - Supplemental Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule Of Condensed Consolidating Statement Of Operations [Line Items]
Revenue	$ 65,388	$ 89,206	$ 186,141	$ 278,680
Costs and expenses:
Cost of coal sales, exclusive of items shown separately below	52,357	69,843	155,671	218,826
Production royalty to related party	1,866	1,980	5,206	6,034
Depreciation, depletion, and amortization	7,736	10,990	22,894	38,399
Asset retirement obligation expenses	350	756	1,019	2,340
Restructuring Costs and Asset Impairment Charges	0	138,679	3,381	138,679
General and administrative expenses	3,099	3,641	9,539	12,563
Operating loss	(20)	(136,683)	(11,569)	(138,161)
Other income (expense):
Interest expense, net	(8,798)	(9,203)	(25,455)	(26,450)
Other, net	(906)	154	(1,026)	4,778
Loss before income taxes	(9,724)	(145,732)	(38,050)	(159,833)
Income taxes	0	(54)	(117)	(313)
Net loss	(9,724)	(145,786)	(38,167)	(160,146)
Income attributable to non-controlling interest	0	0	0	0
Net loss attributable to common stockholders	(9,724)	(145,786)	(38,167)	(160,146)
Eliminations [Member]
Other income (expense):
Income (loss) from investment in subsidiaries	1,990	134,011	15,918	135,300
Loss before income taxes	1,990	134,011	15,918	135,300
Net loss	1,990	134,011	15,918	135,300
Income attributable to non-controlling interest	0	0	0	0
Net loss attributable to common stockholders	1,990	134,011	15,918	135,300
Parent / Issuer [Member]
Costs and expenses:
Depreciation, depletion, and amortization	303	518	908	1,530
Restructuring Costs and Asset Impairment Charges	0	4,490	0	4,490
General and administrative expenses	393	424	1,153	1,206
Operating loss	(696)	(5,432)	(2,061)	(7,226)
Other income (expense):
Interest expense, net	(6,412)	(6,343)	(19,111)	(17,620)
Other, net	(626)		(1,077)
Income (loss) from investment in subsidiaries	(1,990)	(134,011)	(15,918)	(135,300)
Loss before income taxes	(9,724)	(145,786)	(38,167)	(160,146)
Net loss	(9,724)	(145,786)	(38,167)	(160,146)
Income attributable to non-controlling interest	0	0	0	0
Net loss attributable to common stockholders	(9,724)	(145,786)	(38,167)	(160,146)
Guarantor Subsidiaries [Member]
Schedule Of Condensed Consolidating Statement Of Operations [Line Items]
Revenue	65,388	89,206	186,141	278,680
Costs and expenses:
Cost of coal sales, exclusive of items shown separately below	52,357	69,843	155,671	218,826
Production royalty to related party	1,866	1,980	5,206	6,034
Depreciation, depletion, and amortization	7,433	10,472	21,986	36,869
Asset retirement obligation expenses	350	756	1,019	2,340
Restructuring Costs and Asset Impairment Charges	0	134,189	3,381	134,189
General and administrative expenses	2,706	3,217	8,386	11,357
Operating loss	676	(131,251)	(9,508)	(130,935)
Other income (expense):
Interest expense, net	(2,386)	(2,860)	(6,344)	(8,830)
Other, net	(280)	154	51	4,778
Loss before income taxes	(1,990)	(133,957)	(15,801)	(134,987)
Income taxes	0	(54)	(117)	(313)
Net loss	(1,990)	(134,011)	(15,918)	(135,300)
Income attributable to non-controlling interest	0	0	0	0
Net loss attributable to common stockholders	$ (1,990)	$ (134,011)	$ (15,918)	$ (135,300)

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Supplemental Guarantor/Non-Guarantor Financial Information - Supplemental Condensed Consolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Financial Information For Guarantors And Non Guarantors [Line Items]
Net loss	$ (9,724)	$ (145,786)	$ (38,167)	$ (160,146)
Other comprehensive income:
Postretirement benefit plan and other employee benefit obligations, net of tax	76	105	231	314
Other comprehensive income	76	105	231	314
Comprehensive loss	(9,648)	(145,681)	(37,936)	(159,832)
Less: comprehensive income (loss) attributable to non-controlling interests	0	0	0	0
Comprehensive loss attributable to common stockholders	(9,648)	(145,681)	(37,936)	(159,832)
Eliminations [Member]
Financial Information For Guarantors And Non Guarantors [Line Items]
Net loss	1,990	134,011	15,918	135,300
Other comprehensive income:
Comprehensive loss	1,990	134,011	15,918	135,300
Less: comprehensive income (loss) attributable to non-controlling interests	0	0	0	0
Comprehensive loss attributable to common stockholders	1,990	134,011	15,918	135,300
Parent / Issuer [Member]
Financial Information For Guarantors And Non Guarantors [Line Items]
Net loss	(9,724)	(145,786)	(38,167)	(160,146)
Other comprehensive income:
Comprehensive loss	(9,724)	(145,786)	(38,167)	(160,146)
Less: comprehensive income (loss) attributable to non-controlling interests	0	0	0	0
Comprehensive loss attributable to common stockholders	(9,724)	(145,786)	(38,167)	(160,146)
Guarantor Subsidiaries [Member]
Financial Information For Guarantors And Non Guarantors [Line Items]
Net loss	(1,990)	(134,011)	(15,918)	(135,300)
Other comprehensive income:
Postretirement benefit plan and other employee benefit obligations, net of tax	76	105	231	314
Other comprehensive income	76	105	231	314
Comprehensive loss	(1,914)	(133,906)	(15,687)	(134,986)
Less: comprehensive income (loss) attributable to non-controlling interests	0	0	0	0
Comprehensive loss attributable to common stockholders	$ (1,914)	$ (133,906)	$ (15,687)	$ (134,986)

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Supplemental Guarantor/Non-Guarantor Financial Information - Supplemental Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities:	$ 4,909	$ 35,936
Investment in property, plant, equipment, and mine development
Proceeds from disposal of fixed assets	(2,131)	(16,881)
Net cash used in investing activities	0	475
Proceeds from Sale of Equity Method Investments	500	0
Cash Flows from Financing Activities:	(1,631)	(16,406)
Payments on capital lease obligations
Payments of long-term debt	(1,723)	(2,017)
Payment of long-term debt	(6,482)	(4,470)
Net change in cash and cash equivalents	(8,205)	(6,487)
Cash and cash equivalents, at the beginning of the period	(4,927)	13,043
Cash and cash equivalents, at the end of the period	67,617	59,518
Cash and cash equivalents, at the end of the period	62,690	72,561
Parent / Issuer [Member]
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities:	(10,857)	(13,972)
Investment in property, plant, equipment, and mine development
Proceeds from disposal of fixed assets	(552)	(1,864)
Cash Flows from Financing Activities:	(552)	(1,864)
Payments on capital lease obligations
Transactions with affiliates, net	11,409	15,836
Net change in cash and cash equivalents	11,409	15,836
Guarantor Subsidiaries [Member]
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities:	15,766	49,908
Investment in property, plant, equipment, and mine development
Proceeds from disposal of fixed assets	(1,579)	(15,017)
Net cash used in investing activities		475
Cash Flows from Financing Activities:	(1,079)	(14,542)
Payments on capital lease obligations
Payments of long-term debt	(1,723)	(2,017)
Payment of long-term debt	(6,482)	(4,470)
Transactions with affiliates, net	(11,409)	(15,836)
Net change in cash and cash equivalents	(19,614)	(22,323)
Cash and cash equivalents, at the beginning of the period	(4,927)	13,043
Cash and cash equivalents, at the end of the period	67,617	$ 59,518
Cash and cash equivalents, at the end of the period	$ 62,690