Note 12 - Related Party Transactions

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

RELATED PARTY TRANSACTIONS

NOTE 12—RELATED PARTY TRANSACTIONS

Mineral Lease and Surface Rights Agreements—Prior to the acquisition of Ramaco Coal, as discussed in Note 4, much of the coal reserves and surface rights that we controlled were acquired through a series of mineral leases and surface rights agreements with Ramaco Coal, who was a related party. Royalties paid to Ramaco Coal in 2022 prior to the acquisition totaled $3.1 million. Royalties paid to Ramaco Coal in 2021 totaled $5.7 million.

Legal Services—Some of the professional legal services we receive are provided by Jones & Associates (“Jones”), a related party. Legal services incurred for Jones in 2023 and 2022 totaled zero and $0.8 million, respectively. Legal services payable to Jones were zero (paid in full in 2023) and $0.6 million at December 31, 2023 and December 31, 2022, respectively, and were included in Accrued liabilities on the Consolidated Balance Sheet.

Ramaco Coal Deferred Purchase Price—As part of the financing of the acquisition of Ramaco Coal, as discussed in Note 4, we incurred interest expense of $1.8 million in 2023 and $3.0 million in 2022. The outstanding principal balance of the Ramaco Coal Loan was zero and $40.0 million at December 31, 2023 and December 31, 2022, respectively. Refer to Note 7 for additional information regarding the terms of the financing. In addition, the Company owed an additional $0.4 million to Yorktown Partners at December 31, 2023, in connection with the Ramaco Coal acquisition, which is included in Accounts payable on the Consolidated Balance Sheet.

Ramaco Foundation--The Company made a charitable cash contribution of $1.0 million during 2022 to the Ramaco Foundation, which was recognized in Other income (expense), net, on the Consolidated Statement of Operations. The Ramaco Foundation is an unconsolidated not-for-profit organization whose board of directors includes several members of the Company’s management and board of directors.

Other Professional Services—The Company has also entered into professional services with three other related parties, which have been aggregated due to immateriality. Professional services incurred for these related parties were $0.3 million in 2023 and $0.1 million in 2022, respectively.