Rhino Resource Partners LP has announced it entered into an agreement to sell its Elk Horn coal leasing company to a third party for total cash consideration of US$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 monetise this asset. We appreciate the contributions and hard work the Elk Horn employees have provided to Rhino.”
The Partnership was also reported the following executive appointments: Rick Boone was promoted to the position of President of the general partner and all subsidiaries.
Mr. 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.
William Tuorto, the general partner’s Chairman of the Board, 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.”