Equity Method Investments

12 Months Ended

Dec. 31, 2017

Equity Method Investments [Abstract]

(11)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 received distributions totaling $175,000 and $375,000 for the years ended December 31, 2017 and 2016, respectively.

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.

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.

We did not receive any distributions in 2017 and we received two distributions totaling $3.6 million from Savoy. Both distributions were applied to our bank debt as required under our agreement.

Savoy also recorded impairments of $1.0 million, $2.0 million and $2.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.

We have reached an agreement for Savoy to redeem our entire partnership interest for $8 million, which we expect to finalize in mid-March 2018. Our net after commissions paid will be $7.5 million.