Massey Energy Company, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the largest coal producer in Central Appalachia and is included in the S&P 500 Index.
Showing posts with label Massey Energy. Show all posts
Showing posts with label Massey Energy. Show all posts
Monday, November 09, 2009
Massey Energy declares quarterly dividend
RICHMOND, Va. -- Massey Energy Company today reported that its Board of Directors, at a regularly scheduled meeting, declared a quarterly dividend in the amount of 6 cents per share to be paid on December 31, 2009 to shareholders of record on December 17, 2009.
Tuesday, October 27, 2009
Massey Energy reports lower third quarter earnings
RICHMOND, Va. -- Massey Energy Co. today reported net income of $16.5 million or $0.19 per share and EBITDA of $112.1 million for the quarter ended Sept. 30, 2009. Massey also reported continuing strong cash generation as cash and restricted cash increased by $102.4 million. Produced coal revenue for the quarter was $535.5 million. These results compared to net income of $51.6 million or $0.61 per share, EBITDA of $158.7 million and produced coal revenue of $666.4 million in the third quarter of 2008.
Commenting on the company's third quarter results, Massey's Chairman and Chief Executive Officer Don Blankenship said, "We are pleased to have increased our cash balance by over $100 million during the quarter, even though it was partially offset by the deposit of a $72 million appeal bond related to the Harman litigation. We achieved the strong cash generation amid difficult conditions in the global coal markets and in spite of operating challenges resulting from a fire that destroyed a key preparation plant in August."
"We also continued to add to our dominant Central Appalachia reserve base and related competitive advantages during the quarter," Blankenship added. "We already have approximately 12 million tons of annual met coal production capacity in place and our recent acquisition of the Alloy assets from Appalachian Fuels gives us yet another opportunity to expand met coal production in the near term. In addition, our reserve exchange with Foundation Coal for the Laurel Creek property will provide longer term benefits such as expanded mining infrastructure and increased consolidation of the region's coal reserves."
The Bandmill preparation plant was destroyed by fire on August 27, 2009. This incident impacted the operations at the Logan County resource group and, to a lesser extent, the Company as a whole during the quarter. Total shipments lost during September as a result of the Bandmill fire are estimated at 0.3 million tons of coal.
The Laurel Creek reserve and asset exchange, which occurred in July 2009, resulted in a $24.9 million non-cash gain which was recognized in the third quarter and was included in other income.
Massey's third quarter operating cash margin per ton was $11.98. Though a strong result, this was down from the near-record high operating cash margin per ton of $16.10 reported in the third quarter of 2008. The decline was driven by a 4 percent decrease in average realized prices on coal shipped and an increase in cash cost per ton of approximately 3 percent as compared to the third quarter of 2008. Average realized prices were impacted most significantly by product mix as utility coal shipments comprised 70 percent of the total tons shipped in the third quarter of 2009 compared to 65 percent in the third quarter of 2008 while higher priced metallurgical coal tons comprised 22 percent of total tons in the third quarter of 2009 compared to more than 24 percent in the third quarter of 2008. The impact of the weaker mix was only partially offset by price increases of 4 percent and 5 percent for utility coal and industrial coal, respectively. The average realized price for metallurgical coal shipped in the third quarter of 2009 declined by 13 percent as compared to the same period in 2008. Average cash cost per ton for the third quarter of 2009 was $49.81 compared to $48.49 in the third quarter of 2008. The increase was largely the result of higher fixed cost absorption on lower volume shipped.
Massey Energy Company, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the largest coal company in Central Appalachia and is included the S&P 500 index.
Commenting on the company's third quarter results, Massey's Chairman and Chief Executive Officer Don Blankenship said, "We are pleased to have increased our cash balance by over $100 million during the quarter, even though it was partially offset by the deposit of a $72 million appeal bond related to the Harman litigation. We achieved the strong cash generation amid difficult conditions in the global coal markets and in spite of operating challenges resulting from a fire that destroyed a key preparation plant in August."
"We also continued to add to our dominant Central Appalachia reserve base and related competitive advantages during the quarter," Blankenship added. "We already have approximately 12 million tons of annual met coal production capacity in place and our recent acquisition of the Alloy assets from Appalachian Fuels gives us yet another opportunity to expand met coal production in the near term. In addition, our reserve exchange with Foundation Coal for the Laurel Creek property will provide longer term benefits such as expanded mining infrastructure and increased consolidation of the region's coal reserves."
The Bandmill preparation plant was destroyed by fire on August 27, 2009. This incident impacted the operations at the Logan County resource group and, to a lesser extent, the Company as a whole during the quarter. Total shipments lost during September as a result of the Bandmill fire are estimated at 0.3 million tons of coal.
The Laurel Creek reserve and asset exchange, which occurred in July 2009, resulted in a $24.9 million non-cash gain which was recognized in the third quarter and was included in other income.
Massey's third quarter operating cash margin per ton was $11.98. Though a strong result, this was down from the near-record high operating cash margin per ton of $16.10 reported in the third quarter of 2008. The decline was driven by a 4 percent decrease in average realized prices on coal shipped and an increase in cash cost per ton of approximately 3 percent as compared to the third quarter of 2008. Average realized prices were impacted most significantly by product mix as utility coal shipments comprised 70 percent of the total tons shipped in the third quarter of 2009 compared to 65 percent in the third quarter of 2008 while higher priced metallurgical coal tons comprised 22 percent of total tons in the third quarter of 2009 compared to more than 24 percent in the third quarter of 2008. The impact of the weaker mix was only partially offset by price increases of 4 percent and 5 percent for utility coal and industrial coal, respectively. The average realized price for metallurgical coal shipped in the third quarter of 2009 declined by 13 percent as compared to the same period in 2008. Average cash cost per ton for the third quarter of 2009 was $49.81 compared to $48.49 in the third quarter of 2008. The increase was largely the result of higher fixed cost absorption on lower volume shipped.
Massey Energy Company, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the largest coal company in Central Appalachia and is included the S&P 500 index.
Wednesday, September 30, 2009
Massey Energy Acquires Metallurgical and Thermal Coal Assets of Appalachian Fuels
RICHMOND, Va. -- Massey Energy Co. announced today it has completed the acquisition of select mining assets from the now bankrupt Appalachian Fuels, LLC and its affiliates. The assets, some of which were acquired in separate coal lease transactions, include 23 million tons of coal reserves, permitted deep and surface mines, a permitted preparation plant and associated refuse area, infrastructure and some mobile and mining equipment. They are located in Fayette County, W.Va., in close proximity to Massey's existing Mammoth and Nicholas Energy resource groups.
Over half of the acquired reserves are high quality metallurgical coal in the Powellton and Eagle Coal Seams. Massey plans to resume mining metallurgical coal in the Powellton Seam within a few months. The coal produced will be processed at Massey's Mammoth preparation plant. The preparation plant and the other idle deep and surface mines acquired in the transaction will not be operating immediately but could be brought back into production as market conditions warrant.
"We are very pleased with this acquisition and expect it to be almost immediately accretive to earnings," said Massey's President, Baxter F. Phillips, Jr. "We have already included additional metallurgical coal sales from the acquired mines in our plans for 2010. In the longer term we expect the permitted preparation plant and refuse area to provide us with further opportunities for developing Massey acquired and controlled coal reserves in the surrounding region."
Massey Energy Co. has a long history of making successful acquisitions of coal mining assets in Central Appalachia. The Company has increased its total coal reserves from 767 million tons in 1987 to more than 2.3 billion tons today. Of the total current reserves, 1.0 billion tons have metallurgical qualities and characteristics giving Massey the largest metallurgical coal reserves holding in the United States.
Massey Energy Co., headquartered in Richmond, Va., with operations in West Virginia, Kentucky and Virginia, is the largest coal company in Central Appalachia and is included in the Standard & Poor's 500 Index.
Over half of the acquired reserves are high quality metallurgical coal in the Powellton and Eagle Coal Seams. Massey plans to resume mining metallurgical coal in the Powellton Seam within a few months. The coal produced will be processed at Massey's Mammoth preparation plant. The preparation plant and the other idle deep and surface mines acquired in the transaction will not be operating immediately but could be brought back into production as market conditions warrant.
"We are very pleased with this acquisition and expect it to be almost immediately accretive to earnings," said Massey's President, Baxter F. Phillips, Jr. "We have already included additional metallurgical coal sales from the acquired mines in our plans for 2010. In the longer term we expect the permitted preparation plant and refuse area to provide us with further opportunities for developing Massey acquired and controlled coal reserves in the surrounding region."
Massey Energy Co. has a long history of making successful acquisitions of coal mining assets in Central Appalachia. The Company has increased its total coal reserves from 767 million tons in 1987 to more than 2.3 billion tons today. Of the total current reserves, 1.0 billion tons have metallurgical qualities and characteristics giving Massey the largest metallurgical coal reserves holding in the United States.
Massey Energy Co., headquartered in Richmond, Va., with operations in West Virginia, Kentucky and Virginia, is the largest coal company in Central Appalachia and is included in the Standard & Poor's 500 Index.
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