[ x ]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended: June 30, 2013
or
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Commission file number: 001-3473
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“COAL KEEPS YOUR LIGHTS ON”
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![]() ![]() |
“COAL KEEPS YOUR LIGHTS ON”
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HALLADOR ENERGY COMPANY
(www.halladorenergy.com)
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Colorado
(State of incorporation)
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84-1014610
(IRS Employer Identification No.)
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1660 Lincoln Street, Suite 2700, Denver, Colorado
(Address of principal executive offices)
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80264-2701
(Zip Code)
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Issuer's telephone number: 303.839.5504
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o Large accelerated filer
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o Accelerated filer
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o Non-accelerated filer (do not check if a small reporting company)
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þ Smaller reporting company
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PART I - Financial Information
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ITEM 1. FINANCIAL STATEMENTS
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||||||||
Consolidated Balance Sheet
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||||||||
(in thousands, except per share data)
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June 30,
2013
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December 31,
2012
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|||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 14,836 | $ | 21,888 | ||||
Accounts receivable
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9,069 | 8,127 | ||||||
Coal inventory
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5,195 | 2,342 | ||||||
Parts and supply inventory
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2,722 | 2,264 | ||||||
Other
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612 | 242 | ||||||
Total current assets
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32,434 | 34,863 | ||||||
Coal properties, at cost:
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||||||||
Land and mineral rights
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23,280 | 22,705 | ||||||
Buildings and equipment
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139,195 | 131,566 | ||||||
Mine development
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78,104 | 71,046 | ||||||
240,579 | 225,317 | |||||||
Less - accumulated DD&A
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(67,678 | ) | (58,479 | ) | ||||
172,901 | 166,838 | |||||||
Investment in Savoy
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13,506 | 12,230 | ||||||
Investment in Sunrise Energy
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4,316 | 3,969 | ||||||
Other assets (Note 6)
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16,487 | 11,307 | ||||||
$ | 239,644 | $ | 229,207 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Current liabilities:
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||||||||
Accounts payable and accrued liabilities
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$ | 10,089 | $ | 9,386 | ||||
Income taxes
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1,660 | |||||||
Total current liabilities
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10,089 | 11,046 | ||||||
Long-term liabilities:
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||||||||
Bank debt
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11,400 | 11,400 | ||||||
Deferred income taxes
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38,591 | 35,884 | ||||||
Asset retirement obligations
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2,669 | 2,573 | ||||||
Other
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1,580 | 6,295 | ||||||
Total long-term liabilities
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54,240 | 56,152 | ||||||
Total liabilities
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64,329 | 67,198 | ||||||
Commitments and contingencies
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||||||||
Stockholders' equity:
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||||||||
Preferred Stock, $.10 par value, 10,000 shares authorized; none issued
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||||||||
Common stock, $.01 par value, 100,000 shares authorized; 28,605
and 28,529 shares outstanding, respectively
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286 | 285 | ||||||
Additional paid-in capital
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87,304 | 86,576 | ||||||
Retained earnings
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87,592 | 75,118 | ||||||
Accumulated other comprehensive income
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133 | 30 | ||||||
Total stockholders’ equity
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175,315 | 162,009 | ||||||
$ | 239,644 | $ | 229,207 |
Consolidated Statement of Comprehensive Income
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||||||||||||||||
(in thousands, except per share data)
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||||||||||||||||
Six months ended
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Three months ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2013
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2012
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2013
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2012
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|||||||||||||
Revenue:
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||||||||||||||||
Coal sales
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$ | 68,144 | $ | 62,107 | $ | 34,149 | $ | 32,487 | ||||||||
Equity income - Savoy
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2,447 | 2,498 | 1,363 | 680 | ||||||||||||
Equity income (loss) - Sunrise Energy
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347 | 32 | 225 | (24 | ) | |||||||||||
Liability extinguishment (Note 9)
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4,300 | 4,300 | ||||||||||||||
Other (Note 6)
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3,160 | 4,494 | 699 | 2,032 | ||||||||||||
78,398 | 69,131 | 40,736 | 35,175 | |||||||||||||
Costs and expenses:
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||||||||||||||||
Operating costs and expenses
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45,552 | 37,249 | 22,262 | 18,816 | ||||||||||||
DD&A
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9,210 | 7,750 | 4,650 | 3,944 | ||||||||||||
Coal exploration costs
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986 | 1,122 | 447 | 703 | ||||||||||||
SG&A
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3,650 | 3,660 | 1,674 | 1,805 | ||||||||||||
Interest
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823 | 528 | 447 | 257 | ||||||||||||
60,221 | 50,309 | 29,480 | 25,525 | |||||||||||||
Income before income taxes
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18,177 | 18,822 | 11,256 | 9,650 | ||||||||||||
Less income taxes:
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||||||||||||||||
Current
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1,906 | 3,876 | 1,105 | 1,992 | ||||||||||||
Deferred
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2,638 | 2,335 | 1,986 | 1,200 | ||||||||||||
4,544 | 6,211 | 3,091 | 3,192 | |||||||||||||
Net income (1) (2)
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$ | 13,633 | $ | 12,611 | $ | 8,165 | $ | 6,458 | ||||||||
Net income per share:
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||||||||||||||||
Basic
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$ | 0.48 | $ | 0.45 | $ | 0.29 | $ | 0.23 | ||||||||
Diluted
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$ | 0.47 | $ | 0.44 | $ | 0.28 | $ | 0.23 | ||||||||
Weighted average shares outstanding:
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||||||||||||||||
Basic
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28,566 | 28,312 | 28,604 | 28,314 | ||||||||||||
Diluted
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28,849 | 28,719 | 28,763 | 28,675 | ||||||||||||
___________________________________
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||||||||||||||||
(1) There is no material difference between net income and comprehensive income.
(2) See MD&A – page 19, for pro-forma amounts excluding the $4.3 million in other
income.
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Consolidated Condensed Statement of Cash Flows
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||||||||
(in thousands)
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||||||||
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Six months ended
June 30,
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2013
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2012
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Operating activities:
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Cash provided by operating activities
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$ | 12,961 | $ | 13,700 | ||||
Investing activities:
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||||||||
Capital expenditures for coal properties
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(14,778 | ) | (4,229 | ) | ||||
Ohio River Terminal
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(2,823 | ) | ||||||
Purchase of marketable securities
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(1,414 | ) | (1,253 | ) | ||||
Other
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161 | (423 | ) | |||||
Cash used in investing activities
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(18,854 | ) | (5,905 | ) | ||||
Financing activities:
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||||||||
Payments to bank
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(5,000 | ) | ||||||
Dividends
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(1,159 | ) | (4,080 | ) | ||||
Other
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1 | |||||||
Cash used in financing activities
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(1,159 | ) | (9,079 | ) | ||||
Decrease in cash and cash equivalents
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(7,052 | ) | (1,284 | ) | ||||
Cash and cash equivalents, beginning of period
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21,888 | 37,542 | ||||||
Cash and cash equivalents, end of period
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$ | 14,836 | $ | 36,258 |
(in thousands)
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||||||||||||||||||||||||
Shares
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Common Stock
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Additional Paid-in Capital
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Retained Earnings
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AOCI*
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Total
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|||||||||||||||||||
Balance, January 1, 2013
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28,529 | $ | 285 | $ | 86,576 | $ | 75,118 | $ | 30 | $ | 162,009 | |||||||||||||
Stock-based compensation
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1,107 | 1,107 | ||||||||||||||||||||||
Other
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76 | 1 | (379 | ) | 103 | (275 | ) | |||||||||||||||||
Dividends
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(1,159 | ) | (1,159 | ) | ||||||||||||||||||||
Net income
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13,633 | 13,633 | ||||||||||||||||||||||
Balance, June 30, 2013
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28,605 | $ | 286 | $ | 87,304 | $ | 87,592 | $ | 133 | $ | 175,315 |
2013
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||||
Current assets
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$ | 20,651 | ||
Oil and gas properties, net
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23,018 | |||
$ | 43,669 | |||
Total liabilities
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$ | 12,422 | ||
Partners' capital
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31,247 | |||
$ | 43,669 |
2013
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2012
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Revenue
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$ | 18,373 | $ | 17,261 | ||||
Expenses
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(12,946 | ) | (11,719 | ) | ||||
Net income
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$ | 5,427 | $ | 5,542 |
2013
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||||
Current assets
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$ | 2,506 | ||
Oil and gas properties, net
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6,842 | |||
$ | 9,348 | |||
Total liabilities
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$ | 727 | ||
Members' capital
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8,621 | |||
$ | 9,348 |
2013
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2012
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|||||||
Revenue
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$ | 1,691 | $ | 1,086 | ||||
Expenses
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(997 | ) | (1,023 | ) | ||||
Net income
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$ | 694 | $ | 63 | ||||
June 30,
2013
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December 31,
2012
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|||||||
Long-term assets:
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||||||||
Advance coal royalties
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$ | 3,737 | $ | 3,324 | ||||
Deferred financing costs, net
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1,344 | 1,494 | ||||||
Marketable equity securities available for sale, at fair value (restricted)*
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4,962 | 3,548 | ||||||
Ohio River Terminal (see Note 8)
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2,823 | |||||||
Miscellaneous
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3,621 | 2,941 | ||||||
$ | 16,487 | $ | 11,307 |
Six months ended
June 30,
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||||||||
2013
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2012
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Other income:
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||||||||
MSHA reimbursements*
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$ | 2,053 | $ | 4,236 | ||||
Coal storage fees
|
586 | |||||||
Miscellaneous
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521 | 258 | ||||||
$ | 3,160 | $ | 4,494 | |||||
1.
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Competition from low-priced natgas
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2.
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The Obama’s administration dislike of burning coal to generate cheap and reliable electricity
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3.
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Onerous environmental regulations and overzealous mislead environmentalists
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4.
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Competition from new mines opening in the Illinois Basin
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5.
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Slow economy
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1.
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Major shift in utilities replacing Central Appalachia (CAAP) coal with Illinois Basin (ILB) coal
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2.
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More power plants are installing scrubbers enabling them to burn high-sulfur coal
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3.
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Our coal can compete with natgas down to $2.75/Mcf
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4.
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Coal is the fastest growing fuel worldwide
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Period
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Contracted
Tons
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Average
Price
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Last half of 2013
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1,800,000
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$43.28
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Year 2014
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2,900,000
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43.15
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Year 2015
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1,200,000
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41.40
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Year-End Reserves
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||||||||||||||
Annual Capacity
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2012
|
2011
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||||||||||||
Proven
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Probable
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Total
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Proven
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Probable
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Total
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|||||||||
Carlisle (assigned)
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3.4
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34.2
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9.3
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43.5
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36.0
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10
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46.0
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|||||||
Ace-in-the-Hole (assigned)
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0.5
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3.1
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3.1
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|||||||||||
Bulldog (unassigned)
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19.5
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16.1
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35.6
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16.3
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16
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32.3
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||||||||
Russellville (unassigned)
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15.5
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13.9
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29.4
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|||||||||||
Total
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3.9
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72.3
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39.3
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111.6
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52.3
|
26
|
78.3
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|||||||
Assigned
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46.6
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46.0
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||||||||||||
Unassigned
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65.0
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32.3
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||||||||||||
Totals at December 31,
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111.6
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78.3
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•
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SO2 - Historically, Carlisle has guaranteed a 6# SO2 product; however, with the addition of the Ace-in-the-Hole Mine we can blend lower sulfur coal with Carlisle coal and guarantee a mid-sulfur product which should command a higher price and increase our customer base. Few mines in the ILB have the ability to offer their customers various ranges of SO2. Carlisle has supplied coal to 11 different power plants.
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•
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Chlorine - Our reserves have lower chlorine (<0.10%) than average ILB reserves of 0.22%. Much of the ILB’s new production is located in Illinois and possesses chlorine content in excess of .30%. The relatively low chlorine content of our reserves is attractive to buyers given their desire to limit the corrosive effects of chlorine in their power plants.
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•
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Transportation - Carlisle has a double 100 rail car loop facility and a four-hour certified batch load-out facility connected to the CSX railroad. The Indiana Rail Road (INRD) also has limited running rights on the CSX to our mine. Dual rail access gives us a freight advantage to more customers. Long term, the CSX anticipates our coal being shipped to southeast markets via their railroad. We sell our coal FOB the mine and substantially all of our coal is transported by rail. However, on occasion we have shipped to three power plants via truck.
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in 000’s
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||||
Carlisle - maintenance capex
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$ | 6,243 | ||
Carlisle - expansion/improvements
|
548 | |||
Carlisle - land and minerals
|
385 | |||
Ace - mine development
|
3,491 | |||
Ace - surface equipment
|
4,391 | |||
Ace - land and minerals
|
102 | |||
Other projects
|
100 | |||
Items accrued for but not paid
|
(482 | ) | ||
Capex per the Cash Flow Statement
|
$ | 14,778 |
3rd 2012
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4th 2012
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1st 2013
|
2nd 2013
|
T4Qs*
|
||||||||||||||||
Coal sales
|
$
|
36,152
|
$
|
33,111
|
$
|
33,995
|
$
|
34,149
|
$
|
137,407
|
||||||||||
Tons sold
|
810
|
752
|
840
|
774
|
3,176
|
|||||||||||||||
Average price/ton
|
$
|
44.63
|
$
|
44.03
|
$
|
40.47
|
$
|
44.12
|
$
|
43.26
|
||||||||||
Operating costs
|
$
|
20,745
|
$
|
21,745
|
$
|
20,745
|
$
|
22,262
|
$
|
88,042
|
||||||||||
Average cost/ton
|
$
|
25.61
|
$
|
28.91
|
$
|
$
|
28.76
|
$
|
27.72
|
|||||||||||
Margin
|
$
|
15,407
|
$
|
11,366
|
$
|
15,407
|
$
|
11,887
|
$
|
49,365
|
||||||||||
Margin/ton
|
$
|
19.02
|
$
|
15.11
|
$
|
19.02
|
$
|
15.36
|
$
|
15.54
|
||||||||||
Capex
|
$
|
4,993
|
$
|
16,987
|
$
|
4,993
|
$
|
6,174
|
$
|
36,758
|
3rd 2011
|
4th 2011
|
1st 2012
|
2nd 2012
|
T4Qs*
|
||||||||||||||||
Coal sales
|
$
|
34,174
|
$
|
37,723
|
$
|
29,620
|
$
|
32,487
|
$
|
134,004
|
||||||||||
Tons sold
|
805
|
921
|
701
|
743
|
3,170
|
|||||||||||||||
Average price/ton
|
$
|
42.45
|
$
|
40.96
|
$
|
42.25
|
$
|
43.72
|
$
|
42.27
|
||||||||||
Operating costs
|
$
|
19,355
|
$
|
21,129
|
$
|
18,433
|
$
|
18,816
|
$
|
77,733
|
||||||||||
Average cost/ton
|
$
|
24.04
|
$
|
22.94
|
$
|
26.30
|
$
|
25.32
|
$
|
24.52
|
||||||||||
Margin
|
$
|
14,819
|
$
|
16,594
|
$
|
11,187
|
$
|
13,671
|
$
|
56,271
|
||||||||||
Margin/ton
|
$
|
18.41
|
$
|
18.02
|
$
|
15.96
|
$
|
18.40
|
$
|
17.75
|
||||||||||
Capex
|
$
|
4,467
|
$
|
15,970
|
$
|
2,372
|
$
|
1,857
|
$
|
24,666
|
Six months ended
|
Three months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net income excluding the $4.3 million liability extinguishment
|
$ | 10,927 | $ | 12,611 | $ | 5,459 | $ | 6,458 | ||||||||
Net income per share excluding the $4.3 million liability extinguishment
|
||||||||||||||||
Basic
|
$ | 0.38 | $ | 0.45 | $ | 0.19 | $ | 0.23 | ||||||||
Diluted
|
$ | 0.38 | $ | 0.44 | $ | 0.19 | $ | 0.23 | ||||||||
2013
|
2012
|
|||||||
Revenue:
|
||||||||
Oil
|
$ | 14,758 | $ | 14,010 | ||||
NGLs (natural gas liquids)
|
409 | 488 | ||||||
Natgas
|
345 | 173 | ||||||
Contract drilling
|
1,345 | 2,296 | ||||||
Other
|
1,516 | 294 | ||||||
Total revenue
|
18,373 | 17,261 | ||||||
Costs and expenses:
|
||||||||
LOE (lease operating expenses)
|
2,482 | 2,213 | ||||||
Contract drilling costs
|
1,684 | 1,588 | ||||||
DD&A (depreciation, depletion & amortization)
|
2,395 | 1,957 | ||||||
G&G (geological and geophysical) costs
|
2,386 | 1,512 | ||||||
Dry hole costs
|
711 | 1,959 | ||||||
Impairment of unproved properties
|
2,391 | 1,824 | ||||||
Other exploration costs
|
173 | 125 | ||||||
G&A (general & administrative)
|
724 | 541 | ||||||
Total expenses
|
12,946 | 11,719 | ||||||
Net income
|
$ | 5,427 | $ | 5,542 | ||||
The information below is not in thousands:
|
||||||||
Oil production – barrels
|
162,570 | 147,810 | ||||||
NGLs production – barrels
|
10,895 | 9,570 | ||||||
Natgas production – Mcf
|
94,000 | 63,610 | ||||||
Average oil prices/barrel for the half
|
$ | 90.78 | $ | 94.78 | ||||
Average NGL prices/barrel for the half
|
$ | 37.54 | $ | 51.04 | ||||
Average natgas prices/Mcf for the half
|
$ | 3.67 | $ | 2.72 |
15
|
Letter Regarding Unaudited Interim Financial Information
|
31
|
SOX 302 Certifications
|
32
|
SOX 906 Certification
|
101
|
Interactive Files
|
HALLADOR ENERGY COMPANY
|
||
Date: August 5, 2013
|
/s/W. Anderson Bishop
|
|
W. Anderson Bishop, CFO and CAO
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Hallador Energy Company;
|
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 function):
|
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.
|
||
/s/ VICTOR P. STABIO
|
|||
August 5, 2013
|
Victor P. Stabio, CEO
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Hallador Energy Company;
|
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 function):
|
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.
|
||
/s/ W. Anderson Bishop
|
|||
August 5, 2013
|
W. Anderson Bishop, CFO
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
August 5, 2013
|
By:
|
/s/ Victor P. Stabio
Victor P. Stabio, CEO
|
||
/s/ W. Anderson Bishop
W. Anderson Bishop, CFO
|
Section
|
Section
|
Section
|
Section
|
Section
|
Proposed
|
||||||||
104(a)
|
104(b)
|
104(d)
|
107(a)
|
110(b)(2)
|
MSHA
|
||||||||
Month
|
Citations
|
Orders
|
Citation/Orders
|
Orders
|
Violations
|
Assessments
|
|||||||
(in thousands)
|
|||||||||||||
January
|
2
|
0
|
0
|
0
|
0
|
$6.0
|
|||||||
February
|
5
|
0
|
0
|
0
|
0
|
10.4
|
|||||||
March
|
2
|
0
|
0
|
0
|
0
|
3.5
|
|||||||
April
|
0
|
0
|
0
|
0
|
0
|
2.2
|
|||||||
May
|
2
|
0
|
0
|
0
|
0
|
4.5
|
|||||||
June
|
1
|
0
|
0
|
0
|
0
|
3.5
|
Section
|
Section
|
Section
|
Section
|
Section
|
Proposed
|
||||||||
104(a)
|
104(b)
|
104(d)
|
107(a)
|
110(b)(2)
|
MSHA
|
||||||||
Month
|
Citations
|
Orders
|
Citation/Orders
|
Orders
|
Violations
|
Assessments
|
|||||||
(in thousands)
|
|||||||||||||
January
|
0
|
0
|
0
|
0
|
0
|
0
|
|||||||
February
|
0
|
0
|
0
|
0
|
0
|
0
|
|||||||
March
|
0
|
0
|
0
|
0
|
0
|
0
|
|||||||
April
|
0
|
0
|
0
|
0
|
0
|
0
|
|||||||
May
|
1
|
0
|
1
|
0
|
0
|
$2.6
|
|||||||
June
|
0
|
0
|
0
|
0
|
0
|
0
|
(5) Investment in Sunrise Energy (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investment In SELLC | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sunrise Condensed Balance Sheet |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sunrise Condensed Statement of Operations |
|
Consolidated Statement of Comprehensive Income (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|||||||||
Revenue: | ||||||||||||
Coal sales | $ 34,149 | $ 32,487 | $ 68,144 | $ 62,107 | ||||||||
Equity income - Savoy | 1,363 | 680 | 2,447 | 2,498 | ||||||||
Equity income (loss) - Sunrise Energy | 225 | (24) | 347 | 32 | ||||||||
Liability extinguishment (Note 9) | 4,300 | 4,300 | ||||||||||
Other (Note 6) | 699 | 2,032 | 3,160 | 4,494 | ||||||||
40,736 | 35,175 | 78,398 | 69,131 | |||||||||
Costs and expenses: | ||||||||||||
Operating costs and expenses | 22,262 | 18,816 | 45,552 | 37,249 | ||||||||
DD&A | 4,650 | 3,944 | 9,210 | 7,750 | ||||||||
Coal exploration costs | 447 | 703 | 986 | 1,122 | ||||||||
SG&A | 1,674 | 1,805 | 3,650 | 3,660 | ||||||||
Interest | 447 | 257 | 823 | 528 | ||||||||
29,480 | 25,525 | 60,221 | 50,309 | |||||||||
Income before income taxes | 11,256 | 9,650 | 18,177 | 18,822 | ||||||||
Less income taxes: | ||||||||||||
Current | 1,105 | 1,992 | 1,906 | 3,876 | ||||||||
Deferred | 1,986 | 1,200 | 2,638 | 2,335 | ||||||||
3,091 | 3,192 | 4,544 | 6,211 | |||||||||
Net income (1) (2) | $ 8,165 | [1],[2] | $ 6,458 | [1],[2] | $ 13,633 | [1],[2] | $ 12,611 | [1],[2] | ||||
Net income per share: | ||||||||||||
Basic (in Dollars per share) | $ 0.29 | $ 0.23 | $ 0.48 | $ 0.45 | ||||||||
Diluted (in Dollars per share) | $ 0.28 | $ 0.23 | $ 0.47 | $ 0.44 | ||||||||
Weighted average shares outstanding: | ||||||||||||
Basic (in Shares) | 28,604 | 28,314 | 28,566 | 28,312 | ||||||||
Diluted (in Shares) | 28,763 | 28,675 | 28,849 | 28,719 | ||||||||
|
(4) Investment in Savoy (Savoy Energy)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savoy Energy
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) Investment in Savoy [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investment In SELLP |
(4) Investment
in Savoy
We
own a 45% interest in Savoy Energy, L.P., a private company
engaged in the oil and gas business primarily in the state
of Michigan. Savoy uses the successful efforts method
of accounting. We account for our interest using
the equity method of accounting.
Below
(in thousands) to the 100% is a condensed balance
sheet at June 30, 2013, and a condensed statement of
operations for the six months ended June 30, 2013 and
2012.
Condensed
Balance Sheet
Condensed
Statement of Operations
|
(4) Investment in Savoy (Details) - Condensed Statement of Operations (Equity Investment in Savoy, USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Equity Investment in Savoy
|
||
(4) Investment in Savoy (Details) - Condensed Statement of Operations [Line Items] | ||
Revenue | $ 18,373 | $ 17,261 |
Expenses | (12,946) | (11,719) |
Net income | $ 5,427 | $ 5,542 |
(6) Other Long-Term Assets and Other Income (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets, Noncurrent [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] |
|
(5) Investment in Sunrise Energy (Details) - Condensed Statement of Operations (Sunrise Energy, USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Sunrise Energy
|
||
(5) Investment in Sunrise Energy (Details) - Condensed Statement of Operations [Line Items] | ||
Revenue | $ 1,691 | $ 1,086 |
Expenses | (997) | (1,023) |
Net income | $ 694 | $ 63 |
(5) Investment in Sunrise Energy (Details) - Condensed Balance Sheet (Sunrise Energy, USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Sunrise Energy
|
|
(5) Investment in Sunrise Energy (Details) - Condensed Balance Sheet [Line Items] | |
Current assets | $ 2,506 |
Oil and gas properties, net | 6,842 |
9,348 | |
Total liabilities | 727 |
Members' capital | 8,621 |
$ 9,348 |
(8) Ohio River Terminal (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
May 31, 2013
acre
mi
|
---|---|---|
Ohio River Terminal [Text Block] | ||
Real Estate Investment Property, at Cost (in Dollars) | $ 2,823 | $ 2,800 |
Area of Real Estate Property (in Acres) | 17 | |
Ohio River Terminal Mile Point Location | 743.8 |
(5) Investment in Sunrise Energy (Details) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jan. 02, 2012
|
Dec. 31, 2010
|
---|---|---|---|---|
Equity Investment In SELLC | ||||
Investment in Sunrise Energy (in Dollars) | $ 2,400,000 | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||
(in Dollars) | $ 4,316,000 | $ 3,969,000 | $ 500,000 | |
Percentage Condensed Balance Sheet Sunrise Energy | 100.00% |
Consolidated Statement of Stockholders’ Equity (USD $)
In Thousands |
Common Stock [Member]
|
Additional Paid-in Capital [Member]
|
Retained Earnings [Member]
|
Accumulated Other Comprehensive Income (Loss) [Member]
|
Total
|
|||||
---|---|---|---|---|---|---|---|---|---|---|
Balance, January 1, 2013 at Dec. 31, 2012 | $ 285 | $ 86,576 | $ 75,118 | $ 30 | $ 162,009 | |||||
Balance, January 1, 2013 (in Shares) at Dec. 31, 2012 | 28,529 | |||||||||
Stock-based compensation | 1,107 | 1,107 | ||||||||
Other | 1 | (379) | 103 | (275) | ||||||
Other (in Shares) | 76 | |||||||||
Dividends | (1,159) | (1,159) | ||||||||
Net income | 13,633 | 13,633 | [1],[2] | |||||||
Balance, June 30, 2013 at Jun. 30, 2013 | $ 286 | $ 87,304 | $ 87,592 | $ 133 | $ 175,315 | |||||
Balance, June 30, 2013 (in Shares) at Jun. 30, 2013 | 28,605 | |||||||||
|
(2) Bill and Hold
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Revenue Recognition, Bill and Hold Arrangements [Policy Text Block] | |
Revenue Recognition, Bill and Hold Arrangements [Policy Text Block] |
(2)
Bill and Hold
Early
in 2012 two of our customers advised us that their coal
stockpiles were increasing and asked us to consider storing
their coal on our property. In April 2012 we entered
into a storage agreement with one customer to store 250,000
tons for a minimum of one year and up to a maximum of two
years. In June 2012 we entered into a similar storage
agreement with the second customer. During the 2013 second
quarter we increased the tons by 50,000 for both customers.
We continue to sell the coal as contracted to these
customers. The risks and rewards of ownership pass
from us to them as coal is placed into segregated
storage. We are paid a nominal storage fee in addition
to our contracted price at the time the coal is placed in
storage. During the six months ended June 30, 2013, 145,000
tons were placed in storage for the first customer and nil
for the second customer. We have recognized $7.3 million in
revenue from these “bill and hold” arrangements
for the six months ended June 30, 2013. As of June 30,
2013, we have stored 300,000 tons for the first customer
and 250,000 tons for the second. There were no changes in
payment terms with our customers and, as of July 31, 2013,
all receivables outstanding from these two customers at
June 30, 2013 had been collected.
|
(5) Investment in Sunrise Energy (Sunrise Energy)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sunrise Energy
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(5) Investment in Sunrise Energy [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investment In SELLC |
(5) Investment
in Sunrise Energy
In
late December 2010, we invested $2.4 million for a 50%
interest in Sunrise Energy, LLC which then purchased
existing gas reserves and gathering equipment from an
unrelated third party with plans to develop and operate
such reserves. An additional $500 thousand was invested in
January 2012. Sunrise Energy also plans to develop and
explore for coal-bed methane gas reserves on or near our
underground coal reserves. They use the successful efforts
method of accounting. We account for our interest using the
equity method of accounting.
Below
(in thousands) to the 100% is a condensed balance
sheet at June 30, 2013, and a condensed statement of
operations for the six months ended June 30, 2013 and
2012.
Condensed
Balance Sheet
Condensed
Statement of Operations
|
(3) Bank Debt
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] |
(3)
Bank Debt
During
October 2012, Sunrise Coal, our wholly-owned subsidiary,
entered into a new credit agreement (the “Credit
Agreement”) with PNC Bank, as administrative agent,
and the lenders named therein. The Credit Agreement
replaces the previous credit agreement we had with PNC.
Closing costs on this new facility were about $1.5 million
which were deferred and are being amortized over five
years. Outstanding debt at June 30, 2013 was
$11.4 million.
The
Credit Agreement provides for a $165 million senior secured
revolving credit facility. The facility matures in five
years. The facility is collateralized by substantially all
of Sunrise’s assets and we are the guarantor. We will
draw on the facility as needed for development of our new
projects in Illinois and Indiana.
All
borrowings under the Credit Agreement bear interest, at
LIBOR plus 2% if the leverage ratio is less than 1.5X
(which currently it is), LIBOR plus 2.5% if the leverage
ratio is over 1.5 but less than 2X and at LIBOR plus
3% if the leverage ratio is over 2X. The maximum leverage
ratio is 2.75X. The leverage ratio is equal
to funded debt/EBITDA. The annual commitment fee is 50
BPS but falls to 37.5 BPS if we borrow more than 33% of the
facility. The maximum that we can currently
borrow is an additional $129 million. The Credit Agreement
also imposes certain other customary restrictions and
covenants as well as certain milestones we must meet in
order to draw down the full amount.
|
(6) Other Long-Term Assets and Other Income (Details) - Other Long-Term Assets (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
May 31, 2013
|
Dec. 31, 2012
|
|||
---|---|---|---|---|---|---|
Long-term assets: | ||||||
Advance coal royalties | $ 3,737 | $ 3,324 | ||||
Deferred financing costs, net | 1,344 | 1,494 | ||||
Marketable equity securities available for sale, at fair value (restricted)* | 4,962 | [1] | 3,548 | |||
Ohio River Terminal (see Note 8) | 2,823 | 2,800 | ||||
Miscellaneous | 3,621 | 2,941 | ||||
$ 16,487 | $ 11,307 | |||||
|
(9) Other Income (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 84 Months Ended |
---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2013
|
Jun. 30, 2013
|
|
Schedule Extinguishment Debt Text | |||
Extinguishment of Debt, Amount | $ (4,300) | $ (4,300) | $ 4,300 |