Equity Method Investments

12 Months Ended

Dec. 31, 2016

Equity Method Investments [Abstract]

(12)Equity Method Investments

We own a 50% interest in Sunrise Energy, LLC, which owns gas reserves and gathering equipment with plans to develop and operate such reserves. Sunrise Energy also plans to develop and explore for oil, gas and coal-bed methane gas reserves on or near our underground coal reserves.

We own a 30.6% interest in Savoy Energy, L.P., a private company engaged in the oil and gas business primarily in the state of Michigan. Our 45% ownership was decreased to 40.8% on October 1, 2014 due to the exercise of options by Savoy’s management.

On November 3, 2016 Lubar Equity Fund, LLC acquired a 25% interest in Savoy for $9.5 million in cash. Accordingly, our ownership interest was reduced from 40.8% to 30.6%. At closing, Savoy made a cash distribution of $4.4 million of which our share was $1.8 million and per our credit agreement was applied to our bank debt. Mr. Lubar, one of our directors, is affiliated with Lubar Equity Fund, LLC.

During 2016, we received two distributions totaling $3.6 million from Savoy. In 2014, we received distributions totaling $8.1 million from Savoy. All but $3.2 million of such distributions were applied to our bank debt as required under our agreement.

Savoy also recorded impairments of $2.0 million and $2.6 million for the years ended December 31, 2016 and 2015, respectively.