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Also features operational update
Rhino Resource Partners LP (NYSE:RNO) today announced a cash distribution of $0.05 per common unit, or $0.20 per unit on an annualized basis.
The distribution will be paid on February 13, 2015 to all common unitholders of record as of the close of business on January 30, 2015 and no distribution will be paid on the subordinated units.
In addition, Rhino is providing an operational update of its fourth quarter activities.
Pennyrile:
– Rhino is finalizing an additional long-term sales contract with a local utility customer for 150,000 tons in 2015, 400,000 tons in 2016 and 550,000 tons in 2017.
– Along with the existing long-term contract for 800,000 tons per year, this additional long-term contract will extend the committed sales to 1.2 million ton in 2016 and 1.35 million tons in 2017.
– A second mining section has been added to the Riveredge mine to increase production capacity to fulfill the current long-term contracts. Rhino is pursuing additional long-term sales agreements for this operation to reach its potential of 2.0 million tons per year.
– Rhino’s Pennyrile operations produced approximately 111,000 tons during the fourth quarter while coal sales were approximately 143,000 tons.
– While mining conditions improved in the fourth quarter, the Pennyrile operation continued to experience higher than anticipated mining and coal processing costs. However, MSHA recently approved a deep cut mining plan, which should lead to improvements in productivity and lower mining costs in the future.
– Pennyrile’s sales remain fully contracted through 2015 and as production is further ramped up, Rhino expects the mine to be sold out through 2016.
Rhino Eastern:
– Rhino completed an agreement to dissolve the Rhino Eastern joint venture with Patriot Coal Corporation.
– Patriot received the current Eagle mining operations and related coal reserves that had been previously owned and operated by the Rhino Eastern joint venture.
– Rhino received approximately 37 million tons of premium metallurgical coal reserves not related to the Eagle mining area and a recoupable prepaid royalty balance that will provide value to Rhino when these coal reserves are mined in the future.
– Rhino anticipates the divestiture of the Rhino Eastern joint venture will improve the Partnership’s cash flow by approximately $6 million in 2015.
Northern Appalachia:
– Northern Appalachia operations produced approximately 256,000 tons of steam coal during the fourth quarter. Coal sales were approximately 257,000 tons and limestone sales totaled approximately 179,000 tons.
– Sales at Rhino’s Hopedale and Sands Hill operations in Northern Appalachia are fully contracted through 2015.
– At Hopedale, railroad service impacted production and sales during the quarter, as production shifts were cancelled due to coal stockpile limitations at the mine. Rail service did improve in December and Rhino has received indications that railroad service will continue to improve in 2015.
Rhino Western:
– Rhino’s Castle Valley operation continues to perform well and produced approximately 287,000 tons and sold approximately 301,000 tons during the fourth quarter.
– Castle Valley’s sales remain fully contracted through 2016.
Central Appalachia:
– During the quarter, Central Appalachia operations produced approximately 172,000 tons of steam coal and approximately 84,000 tons of met coal. Met coal sales totaled approximately 103,000 tons and steam coal sales were approximately 171,000 tons.
– Rhino continues to evaluate its Central Appalachia operations to reduce costs at idle facilities and better utilize the Partnership’s lower cost Central Appalachia properties.
– During the fourth quarter, lessees at Rhino’s Elk Horn operation produced approximately 671,000 tons from its properties.
