Third Quarter 2018 Highlights:
- Coal sales of nearly $292 million,
an increase of 27% compared to the third quarter 2017 and an
increase of 8% compared to the second quarter 2018, on higher sales
volumes of 6.1 million tons and higher sales realization per ton
sold
- Adjusted EBITDA of $57.6 million,
which includes a $25 million charge related to the settlement of
litigation related to Hillsboro Energy and Macoupin Energy
- Cash flows from operations of $51.3
million
- Net loss attributable to limited
partner units of $27.7 million, or ($0.17) per common unit and
($0.22) per subordinated unit.
- Declared a $0.0565 per unit
distribution from retained excess cash flow generated in 2017, to
be paid on December 21, 2018 to unitholders of record as of
December 11, 2018.
Foresight Energy LP (“Foresight” or the “Partnership”)
(NYSE:FELP) today reported financial and operating results for the
third quarter ended September 30, 2018. Foresight generated coal
sales revenues of nearly $292 million on sales volumes of 6.1
million tons resulting in a net loss attributable to limited
partner units of $27.7 million, Adjusted EBITDA of $57.6 million,
and cash flows from operations of $51.3 million. Net loss
attributable to limited partner units and Adjusted EBITDA include
$25 million in charges related to the settlement of litigation with
Natural Resource Partners L.P. (“NRP”) related to matters at
Hillsboro Energy and Macoupin Energy.
“During the third quarter, we continued to take advantage of a
strong export market and an improved domestic spot market to
realize significant year-over-year improvements in our sales
volumes,” said Mr. Robert D. Moore, Chairman, President and Chief
Executive Officer. “With our unique access to international and
domestic markets, plus our industry-leading cost structure,
Foresight remains well-positioned to continue to opportunistically
place its thermal coal production and to capture solid margins.
Regarding the settlement of litigation with NRP, we are pleased to
have reached a mutually beneficial resolution to these lawsuits,
which provides us with future operational flexibility at Hillsboro
Energy, while significantly reducing the lease holding cost.”
Foresight also announced that due to the Partnership’s operating
performance during the third quarter, the Board of Directors of its
General Partner approved a quarterly cash distribution of $0.0565
per unit from retained excess cash flow. The distribution is
payable on December 21, 2018 for unitholders of record on
December 11, 2018.
Third Quarter Consolidated Financial Results
Coal sales totaled nearly $292.0 million for the third quarter
2018 compared to $229.7 million for the third quarter 2017,
representing an increase of $62.3 million, or 27%. The increase in
coal sales revenues was due to higher coal sales volumes combined
with higher coal sales realization per ton sold. Coal sales volumes
and coal sales realization per ton sold were higher due to
increased export sales, which experienced more favorable API2
pricing during 2018.
Cost of coal produced was $133.7 million, or $22.28 per ton
sold, for the third quarter 2018 compared to $122.8 million, or
$23.43 per ton sold, for the third quarter 2017. The increase in
total cost of production was due to an increase in produced tons
sold offset by a lower cash cost per ton sold. The lower cash cost
per ton sold resulted from no longwall moves occurring during the
third quarter of 2018, compared to one longwall move in the prior
year period. Additionally, cost of coal produced (excluding
depreciation, depletion and amortization) for the third quarter of
2017 included $4.3 million arising from the non-cash adjustment of
inventory to fair value related to the application of pushdown
accounting.
Transportation costs increased approximately $21.8 million from
the third quarter 2017 to the third quarter 2018 due to a higher
percentage of sales going to the export market during the current
year period and the additional transportation and transloading
costs associated therewith.
Other operating (income) expense, net for the third quarter 2018
includes $25.0 million in charges related to the settlement of
litigation with NRP related to matters arising from the combustion
event at Hillsboro Energy and royalty matters at Macoupin Energy.
While the matters with NRP are settled, Foresight remains in
discussions with its insurance providers regarding further
potential recoveries under its policies related to the Hillsboro
Energy combustion event; however, there can be no assurances that
Foresight will receive any further insurance recoveries related to
the Hillsboro combustion event.
During the third quarter 2018, Foresight generated operating
cash flows of $51.3 million and ended the period with $43.1 million
in cash and $129.7 million of available borrowing capacity, net of
outstanding borrowings and letters of credit, under its revolving
credit facility. Capital expenditures for the quarter ended
September 30, 2018 totaled $18.6 million compared to $15.2 million
for the quarter ended September 30, 2017.
Guidance for 2018
Based on Foresight’s remaining contracted position, third
quarter and year-to-date performance, and its current outlook on
pricing and the coal markets in general, the Partnership is
affirming and updating the following guidance for 2018:
Sales Volumes – Based on current committed position and
expectations for the remainder of 2018, Foresight is projecting
sales volumes to be between 22.4 and 23.0 million tons, with
approximately 9.0 million tons expected to be sold into the
international market.
Adjusted EBITDA – Based on the projected sales volumes and
operating cost structure, Foresight currently expects to generate
Adjusted EBITDA in a range of $305 to $325 million.
Capital Expenditures – Total 2018 capital expenditures are
estimated to be between $70 and $77 million.
Forward-Looking Statements
This press release contains “forward-looking” statements within
the meaning of the federal securities laws. These statements
contain words such as “possible,” “intend,” “will,” “if” and
“expect” and can be impacted by numerous factors, including risks
relating to the securities markets, the impact of adverse market
conditions affecting business of the Partnership, adverse changes
in laws including with respect to tax and regulatory matters and
other risks. There can be no assurance that actual results will not
differ from those expected by management of the Partnership. Known
material factors that could cause actual results to differ from
those in the forward-looking statements are described in Part I,
“Item 1A. Risk Factors” of the Partnership’s Annual Report on Form
10-K filed on March 7, 2018. The Partnership undertakes
no obligation to update or revise such forward-looking statements
to reflect events or circumstances that occur, or which the
Partnership becomes aware of, after the date hereof.
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP supplemental financial measure
that management and external users of the Partnership’s
consolidated financial statements, such as industry analysts,
investors, lenders and rating agencies, may use to assess:
• the Partnership’s operating performance as compared to other
publicly traded partnerships, without regard to historical cost
basis or, in the case of Adjusted EBITDA, financing methods; • the
Partnership’s ability to incur and service debt and fund capital
expenditures; and • the viability of acquisitions and other capital
expenditure projects and the returns on investment of various
expansion and
growth opportunities.
The Partnership defines Adjusted EBITDA as net income (loss)
attributable to controlling interests before interest, income
taxes, depreciation, depletion, amortization and accretion.
Adjusted EBITDA is also adjusted for equity-based compensation,
losses/gains on commodity derivative contracts, settlements of
derivative contracts, a change in the fair value of the warrant
liability and material nonrecurring or other items, which may not
reflect the trend of future results. As it relates to commodity
derivative contracts, the Adjusted EBITDA calculation removes the
total impact of derivative gains/losses on net income (loss) during
the period and then adds/deducts to Adjusted EBITDA the amount of
aggregate settlements during the period. Adjusted EBITDA also
includes any insurance recoveries received, regardless of whether
they relate to the recovery of mitigation costs, the receipt of
business interruption proceeds, or the recovery of losses on
machinery and equipment.
The Partnership believes the presentation of Adjusted EBITDA
provides useful information to investors in assessing the
Partnership’s financial condition and results of operations.
Adjusted EBITDA should not be considered an alternative to net
(loss) income, operating income, cash flow from operations, or any
other measure of financial performance presented in accordance with
U.S. GAAP, nor should Adjusted EBITDA be considered an alternative
to operating surplus, adjusted operating surplus or other
definitions in the Partnership’s partnership agreement. Adjusted
EBITDA has important limitations as an analytical tool because it
excludes some, but not all, of the items that affects net (loss)
income. Additionally, because Adjusted EBITDA may be defined
differently by other companies in the industry, and the
Partnership’s definition of Adjusted EBITDA may not be comparable
to similarly titled measures of other companies, the utility of
such a measure is diminished. For a reconciliation of Adjusted
EBITDA to net loss, please see the table below.
This press release references forward-looking estimates of
Adjusted EBITDA projected to be generated by the Partnership during
the year ending December 31, 2018. A reconciliation of estimated
2018 Adjusted EBITDA to U.S. GAAP net income (loss) is not provided
because U.S. GAAP net income (loss) for the projection period is
not practical to assess due to unknown variables and uncertainty
related to future results. In recent years, the Partnership has
recognized significant asset impairment charges, transition and
reorganization costs, losses on early extinguishment of debt, and
debt restructuring costs. While these items affect U.S. GAAP net
income (loss), they are generally excluded from Adjusted EBITDA.
Therefore, these items do not materially impact the Partnership’s
ability to forecast Adjusted EBITDA.
About Foresight Energy LP
Foresight is a leading producer and marketer of thermal coal
controlling over 1.7 billion tons of coal reserves in the Illinois
Basin. Foresight currently operates two longwall mining complexes
with three longwall mining systems (Williamson (one longwall mining
system) and Sugar Camp (two longwall mining systems), one
continuous mining operation (Macoupin) and the Sitran river
terminal on the Ohio River. Foresight’s operations are
strategically located near multiple rail and river transportation
access points, providing transportation cost certainty and
flexibility to direct shipments to the domestic and international
markets. Foresight also owns coal interests and mining assets
located in southeastern Ohio.
Foresight Energy LP Unaudited Condensed Consolidated
Balance Sheets (In Thousands) (Successor)
(Successor) September 30,
December 31, 2018 2017 Assets Current
assets: Cash and cash equivalents $ 43,070 $ 2,179 Accounts
receivable 38,583 35,158 Due from affiliates 32,055 37,685
Financing receivables - affiliate 3,327 3,138 Inventories, net
52,924 40,539 Prepaid royalties — 4,000 Deferred longwall costs
14,172 9,520 Other prepaid expenses and current assets 8,139 10,844
Contract-based intangibles 1,430 11,268 Total current
assets 193,700 154,331 Property, plant, equipment and development,
net 2,168,348 2,378,605 Due from affiliates — 947 Financing
receivables - affiliate 61,514 64,097 Prepaid royalties, net 2,295
1,250 Other assets 4,640 5,358 Contract-based intangibles
1,058 2,052 Total assets $ 2,431,555 $ 2,606,640
Liabilities and partners’ capital Current liabilities:
Current portion of long-term debt and capital lease obligations $
41,498 $ 109,532 Current portion of sale-leaseback financing
arrangements 5,851 4,148 Accrued interest 26,342 13,410 Accounts
payable 96,284 76,658 Accrued expenses and other current
liabilities 80,662 62,442 Asset retirement obligations 4,416 4,416
Due to affiliates 23,384 13,324 Contract-based intangibles
16,844 28,688 Total current liabilities 295,281 312,618
Long-term debt and capital lease obligations 1,209,172 1,205,000
Sale-leaseback financing arrangements 192,298 196,496 Asset
retirement obligations 51,686 39,655 Other long-term liabilities
29,857 32,330 Contract-based intangibles 69,027
144,715 Total liabilities 1,847,321 1,930,814 Limited partners'
capital:
Common unitholders (80,844 and 77,644
units outstanding as of September 30, 2018
and December 31, 2017, respectively)
370,884 421,161
Subordinated unitholder (64,955 units
outstanding as of September 30, 2018 and
December 31, 2017)
213,350 254,665 Total partners' capital
584,234 675,826 Total liabilities and partners' capital $
2,431,555 $ 2,606,640
Foresight Energy LP
Unaudited Condensed Consolidated Statements of Operations
(In Thousands, Except Per Unit Data)
(Successor) (Successor)
(Successor) (Successor)
(Predecessor)
Three Months
Ended
September 30,
2018
Three Months
Ended
September 30,
2017
Nine Months
Ended
September 30,
2018
Period From
April 1, 2017
through
September 30,
2017
Period From
January 1,
2017
through
March 31,
2017
Revenues: Coal sales $ 291,987 $ 229,670 $ 800,366 $ 434,186 $
227,813 Other revenues 1,949 2,770 5,718
5,347 2,581 Total revenues 293,936 232,440 806,084
439,533 230,394 Costs and expenses: Cost of coal produced
(excluding depreciation, depletion and amortization) 133,670
122,839 391,222 228,629 117,762 Cost of coal purchased 6,312 —
11,969 — 7,973 Transportation 61,239 39,414 166,716 67,672 37,726
Depreciation, depletion and amortization 52,780 53,754 159,512
103,291 39,298 Contract amortization and write-off (4,855 ) (15,611
) (76,699 ) (6,878 ) — Accretion on asset retirement obligations
558 726 1,848 1,454 710 Selling, general and administrative 10,465
7,858 28,774 15,135 6,554 Long-lived asset impairments — — 110,689
— — Loss on commodity derivative contracts — 1,101 — 2,218 1,492
Other operating (income) expense, net 24,849 (48 )
(18,782 ) (13,538 ) 451 Operating income 8,918
22,407 30,835 41,550 18,428 Other expenses: Interest expense, net
36,619 35,988 109,327 71,408 43,380 Change in fair value of
warrants — — — — (9,278 ) Loss on early extinguishment of debt
— — — — 95,510 Net loss $
(27,701 ) $ (13,581 ) $ (78,492 ) $ (29,858 ) $ (111,184 )
Net loss available to limited partner units - basic and diluted:
Common unitholders $ (13,298 ) $ (5,097 ) $ (37,177 ) $ (13,887 ) $
(56,259 ) Subordinated unitholder $ (14,403 ) $ (8,484 ) $ (41,315
) $ (15,971 ) $ (54,925 ) Net loss per limited partner unit
- basic and diluted: Common unitholders $ (0.17 ) $ (0.07 ) $ (0.47
) $ (0.18 ) $ (0.85 ) Subordinated unitholder $ (0.22 ) $ (0.13 ) $
(0.64 ) $ (0.25 ) $ (0.85 ) Weighted average limited partner
units outstanding - basic and diluted: Common units 80,505 77,510
79,737 76,893 66,533 Subordinated units 64,955 64,955 64,955 64,955
64,955
Distributions declared per limited partner
unit
$ 0.0565 $ 0.0647 $ 0.1695 $ 0.0647 $ —
Foresight Energy
LP Unaudited Condensed Consolidated Statements of Cash
Flows (In Thousands)
(Successor) (Successor)
(Predecessor)
Nine Months
Ended
September 30,
2018
Period From
April 1, 2017
through
September 30,
2017
Period From
January 1, 2017
through
March 31, 2017
Cash flows from operating activities Net loss $ (78,492 ) $
(29,858 ) $ (111,184 ) Adjustments to reconcile net loss to net
cash provided by operating activities: Depreciation, depletion and
amortization 159,512 103,291 39,298 Amortization of debt discount
and deferred issuance costs 2,015 1,273 6,365 Contract amortization
and write-off (76,699 ) (6,878 ) — Equity-based compensation 530
439 318 Loss on commodity derivative contracts — 2,218 1,492
Settlements of commodity derivative contracts — 320 3,724 Realized
gains on coal derivatives included in investing activities — —
(3,520 ) Long-lived asset impairments 110,689 — — Insurance
proceeds included in investing activities (42,947 ) — — Change in
fair value of warrants — — (9,278 ) Debt extinguishment expense — —
95,510 Other — 8,915 1,321 Changes in operating assets and
liabilities: Accounts receivable (3,425 ) 9,450 19,695 Due from/to
affiliates, net 16,637 6,923 (13,157 ) Inventories (10,307 )
(22,159 ) (917 ) Prepaid expenses and other assets (244 ) (4,759 )
(5,117 ) Prepaid royalties 2,955 6,240 (241 ) Commodity derivative
assets and liabilities — 266 (532 ) Accounts payable 19,626 (582 )
7,324 Accrued interest 12,932 22,493 (9,803 ) Accrued expenses and
other current liabilities 18,667 1,188 (3,430 ) Other 2,155
1,300 1,782 Net cash provided by operating activities
133,604 100,080 19,650
Cash flows from investing activities
Investment in property, plant, equipment and development (50,872 )
(36,960 ) (19,908 ) Return of investment on financing arrangements
with Murray Energy (affiliate) 2,394 1,452 705 Insurance proceeds
42,947 — — Settlement of certain coal derivatives — — 3,520
Proceeds from sale of property, plant and equipment —
— 1,898 Net cash used in investing activities (5,531 )
(35,508 ) (13,785 )
Cash flows from financing activities
Borrowings under revolving credit facility 50,000 — — Payments on
revolving credit facility (22,000 ) — (352,500 ) Net change in
borrowings under A/R securitization program — (10,300 ) 7,000
Proceeds from long-term debt and capital lease obligations — —
1,234,438 Payments on long-term debt and capital lease obligations
(93,877 ) (23,539 ) (970,721 ) Payments on short-term debt (5,180 )
— — Proceeds from issuance of common units to Murray Energy
(affiliate) — — 60,586 Distributions paid (13,574 ) (5,026 ) — Debt
extinguishment costs — — (57,645 ) Debt issuance costs paid — —
(27,328 ) Other (2,551 ) (3,471 ) (1,892 ) Net
cash used in financing activities (87,182 ) (42,336 )
(108,062 ) Net increase (decrease) in cash, cash
equivalents, and restricted cash 40,891 22,236 (102,197 ) Cash,
cash equivalents, and restricted cash, beginning of period
2,179 14,724 116,921 Cash, cash equivalents, and
restricted cash, end of period $ 43,070 $ 36,960 $ 14,724
Reconciliation of U.S. GAAP Net Loss to
Adjusted EBITDA (In Thousands)
(Successor)
Three
Months
Ended
September
30, 2018
(Successor)
Three
Months
Ended
September
30, 2017
(Successor)
Nine Months
Ended
September
30, 2018
(Successor)
Period From
April 1, 2017
through
September
30, 2017
(Predecessor)
Period From
January 1,
2017
through
March 31,
2017
Combined -
Period From
January 1,
2017
through
September
30, 2017
Net loss(1)(2) $ (27,701 ) $ (13,581 ) $ (78,492 ) $ (29,858 ) $
(111,184 ) $ (141,042 ) Interest expense, net 36,619 35,988 109,327
71,408 43,380 114,788 Depreciation, depletion and amortization
52,780 53,754 159,512 103,291 39,298 142,589 Accretion on asset
retirement obligations 558 726 1,848 1,454 710 2,164 Contract
amortization and write-off (4,855 ) (15,611 ) (76,699 ) (6,878 ) —
(6,878 )
Noncash impact of recording coal
inventory
to fair value in pushdown accounting
4,306 — 8,868 — 8,868 Equity-based compensation 178 228 530 439 318
757 Long-lived asset impairments — — 110,689 — — — Loss on
commodity derivative contracts — 1,101 — 2,218 1,492 3,710
Settlements of commodity derivative
contracts
— (124 ) — 320 3,724 4,044 Change in fair value of warrants — — — —
(9,278 ) (9,278 ) Loss on early extinguishment of debt —
— — — 95,510 95,510
Adjusted
EBITDA $ 57,579 $ 66,787 $ 226,715 $ 151,262 $ 63,970 $ 215,232
(1) - Included in net loss during the
three and nine months ended September 30, 2018 was expense of $25.0
million related to the settlement of
litigation related to the Hillsboro and
Macoupin matters.
(2) - Included in net loss during the nine
months ended September 30, 2018 and the three months and combined
period ended September 30,
2017 was insurance proceeds of $44.1
million, $1.5 million, and $12.8 million, respectively, from the
Hillsboro mine combustion event.
Operating Metrics (In Thousands, Except
Per Ton Data)
(Successor)
Three
Months
Ended
September
30, 2018
(Successor)
Three
Months
Ended
September
30, 2017
(Successor)
Nine Months
Ended
September
30, 2018
(Successor)
Period From
April 1,2017
through
September
30, 2017
(Predecessor)
Period From
January 1,
2017
through
March 31,
2017
Combined -
Period From
January 1,
2017
through
September
30, 2017
Produced tons sold 6,000 5,242 16,978 10,077 5,165 15,242 Purchased
tons sold 143 — 272 — 118
118
Total tons sold 6,143 5,242 17,250
10,077 5,283 15,360 Tons produced 6,167
5,297 17,252 10,957 5,267 16,224 Coal sales realization per
ton sold(1) $ 47.53 $ 43.81 $ 46.40 $ 43.09 $ 43.12 $ 43.10 Cash
cost per ton sold(2) $ 22.28 $ 23.43 $ 23.04 $ 22.69 $ 22.80 $
22.73 Netback to mine realization per ton sold(3) $ 37.56 $ 36.29 $
36.73 $ 36.37 $ 35.98 $ 36.24 (1) - Coal sales realization
per ton sold is defined as coal sales divided by total tons sold.
(2) - Cash cost per ton sold is defined as cost of coal produced
(excluding depreciation, depletion and amortization) divided by
produced tons sold. (3) - Netback to mine realization per ton sold
is defined as coal sales less transportation expense divided by
tons sold.
1 Foresight adopted pushdown accounting as of March 31, 2017 as
a result of Murray Energy obtaining control of its general partner.
As required by pushdown accounting, the Partnership revalued its
balance sheet on the change of control date and therefore certain
financial statement line items are not comparable to prior periods.
As such, operational results prior to March 31, 2017 were recorded
on the predecessor financial statements (the “Predecessor”).
Operational results subsequent to March 31, 2017 were recorded on
the successor financial statements (the “Successor”).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181107005257/en/
Foresight Energy LPCody E. Nett, 740-338-3100Corporate Secretary
and Director of Media and Investor
RelationsInvestor.relations@foresight.comMedia@coalsource.com
Foresight Energy Partners (NYSE:FELP)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Foresight Energy Partners (NYSE:FELP)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024