Rhino Resource Partners LP (OTCQB: RHNO) announced Aug. 23 that it has entered into an agreement to sell its Elk Horn coal leasing company in eastern Kentucky to a third party for total cash consideration of $12.5 million.
Joe Funk, Chief Executive Officer of Rhino’s general partner, stated: “The cash received from the sale of Elk Horn will continue to reduce our debt and provide us additional financial flexibility for our future coal operations. While Elk Horn has been a positive cash flow contributor to us since its acquisition in 2011, the ongoing weakness in the Central Appalachia steam coal markets has adversely impacted Elk Horn and its lessees. The Partnership determined the best value for our unitholders at this time was to monetize this asset. We appreciate the contributions and hard work the Elk Horn employees have provided to Rhino.”
The Partnership also announced that Rick Boone was promoted to the position of President of the general partner and all subsidiaries. Boone most recently served as Executive Vice President and Chief Financial Officer since 2014. Prior to that date, Boone served as Senior Vice President and Chief Financial Officer from 2005 to 2014. Boone stated, “I appreciate the trust placed in me by our general partner and I look forward to helping navigate Rhino through the complexities of our industry as we move forward. Rhino has persevered during this extended market downturn and we are poised for growth and new opportunities as market conditions improve.”
Additionally, Scott Morris was promoted to the position of Vice President and Chief Financial Officer. Morris has served under Boone in different senior level financial roles since joining Rhino in 2010, most recently as Vice President of Finance.
William Tuorto, the general partner’s Chairman of the Board, will assume the position of Executive Chairman. Tuorto stated: “Rhino has a proficient executive team that has remained focused through the change in ownership and control over the past year, and I look forward to working more closely with senior management to continue to develop the company’s strategic growth plan for the future; the sale of Elk Horn and the executive appointments represent initial corporate actions in furtherance of this objective.”
Rhino produces metallurgical and steam coal in a variety of basins throughout the United States.