Tag Archives: Alpha Natural Resources

Business, Finance, Occupation & Industry

Audley Capital Calls on Walter Energy to Disclose Mine-Level SG&A in Relation to Peers

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By Business Wirevia The Motley Fool

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Audley Capital Calls on Walter Energy to Disclose Mine-Level SG&A in Relation to Peers

Requests that Company Provide Analysis Detailing SG&A Per Ton of Production Compared to Peer Group Average

Believes Company’s Corporate-Level Disclosure is Misleading and Embellishes Overall SG&A Reductions

NEW YORK–(BUSINESS WIRE)– Audley Capital Advisors LLP (including certain related funds and investment vehicles, “Audley Capital“) today called on Walter Energy, Inc. (NYS: WLT) (TSX: WLT) (“Walter Energy” or “the Company”) to provide per ton of production (“mine-level”) SG&A analysis compared to the average of its peer group since the completion of the Western Coal acquisition in April 2011, or for the fourth quarter of 2012. Audley Capital believes that stockholders deserve the transparency of mine-level analysis, which is arguably one of the most important metrics in met coal production.

For the purposes of analysis, Audley Capital uses a comparable group for Walter Energy that includes Alpha Natural Resources, Arch Coal and Peabody Energy. Audley Capital notes that all of the peer companies report mine-level SG&A while Walter Energy chooses to allocate overhead costs from individual mines to corporate-level SG&A, an opaque reporting threshold.

From: http://www.dailyfinance.com/2013/04/17/audley-capital-calls-on-walter-energy-to-disclose-/


Stockholders Are Entitled to an Explanation…and Accountability

Business, Finance, Occupation & Industry

Breathe Easy: Natural Gas Is Lowering CO2 Emissions

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By Arjun Sreekumar, The Motley Fool

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America’s shale gas revolution is already paying off big time. Not only has it been a boon to consumers and companies who use natural gas for heating their homes and offices, it also appears to be benefiting the environment. Let’s take a closer look.

EIA reports lower CO2 emissions
Last week, the U.S. Energy Information Administration (EIA) reported that U.S. energy-related carbon dioxide emissions for 2012 fell to 5.3 billion tons – the lowest level in nearly two decades. What’s more is that since 2007, emissions have declined consecutively each year, with the exception of 2010. The reason?

The EIA attributed the decline in CO2 emissions primarily to the shift away from coal, the most carbon-intensive fossil fuel, and toward natural gas, the least carbon-intensive fuel, for electric power generation. Less demand for transportation fuels and relatively weak demand for winter heating also played a role in driving emissions lower.

Coal-to-gas switching
Over the past few years, the transition toward natural-gas-fired plants and the retirement of older, coal-powered plants has been an unmistakable trend among utility companies.

For the better part of the past couple of decades, coal traded at a substantial discount to natural gas on an energy equivalent basis. In fact, it held up as the least expensive thermal fuel in the U.S. over that time period.

But all that changed in 2011, as natural gas prices slipped below $3 per Mcf that November. The downward trend in prices continued until spring of 2012, when gas hit a decade low of around $1.82 per Mcf on April 20.

Massively discounted gas prices drove utility companies with the flexibility to rebalance their production mix to burn more natural gas and less coal. In the first half of 2012, when natural gas was especially cheap, several utilities announced plans to curtail coal-powered generation in favor of gas-fired plants.

For instance, Southern Company‘s share of coal used for total power generation fell from 70% to 30%, while the share of natural gas rose from 11% to 47%. Not surprisingly, the company ended up burning more natural gas than it did coal for the first time in its century-long history.  

Impact on coal producers
As increasing numbers of utility companies made the switch to natural gas, the price of thermal coal – the varietal used mainly for power generation – plummeted, leading many producers to reduce production drastically and, in many cases, lay off workers.

For instance, in the second quarter of last year, Arch Coal shuttered four thermal coal mines in Appalachia and idled another, as it struggled to cut costs in the face of falling demand for thermal coal. Not long after, in September, Alpha Natural Resources announced that it would idle mines in Pennsylvania, West Virginia, and Virginia and lay off almost 10% of its employees.  

However, some coal producers, such as Cliffs Natural Resources and Peabody Energy , fared relatively better due to the

From: http://www.dailyfinance.com/2013/04/11/breathe-easy-natural-gas-is-lowering-co2-emissions/

Business, Finance, Occupation & Industry

3 Energy Trends to Watch During Earnings Season

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By Travis Hoium, The Motley Fool

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Earnings season is right around the corner and there are a few big energy trends to watch for. Here are the big trends I’m looking at and the companies that hold the keys.

Will oil and gas drilling pick up?
Oil and gas production has been rising in the U.S. but rig counts haven’t followed at the same rate. Drillers are becoming more efficient at drilling wells and in field designs as well. This has hurt companies providing rigs and services to the oil and gas industry.

I’ll be looking at trends at Halliburton , which saw North American revenue decline 5% sequentially in the fourth quarter due to lower rig counts. Those rig counts are slowly coming back, so investors should watch how that impacts margins and what management has to say about the rest of 2012.  

It’ll also be important to watch Heckmann, which supplies water and environmental service to drillers, and CARBO Ceramics, which makes ceramic proppants, to see where industry demand and pricing are headed. 

Can coal producers survive?
2012 was a terrible year for coal stocks; 2013 will be key to their very survival. It will be important to watch both revenue and net income trends for any sign of health. As you can see below, Arch Coal , Alpha Natural Resources , and Peabody Energy have all been posting huge losses because of the decline of coal.

ACI Revenue TTM data by YCharts

Arch Coal and Alpha Natural Resources will be two to watch closely because of their exposure to high-cost Appalachian coal and smaller exposure to metallurgical coal than competitors. They’ve both been losing a considerable amount of money per quarter, so they’ll have to turn things around eventually or they’ll end up in bankruptcy. Considering the continuing low price of natural gas, I don’t have high hopes for coal in the first quarter.

Will solar continue its torrid growth pace?
Coal is a declining commodity but the sun is where the future of energy lies. Last year, solar installations grew 76% in the U.S. — 2013 should see more strong growth. But how will the industry trends play out?

First Solar has been the market leader for a decade but a lower-efficiency product and Chinese competition have hurt margins and caused a strategic shift for the firm. The company is now focused on building its own systems with its low-cost modules and best-in-class operational efficiency. But in the fourth quarter, new signings didn’t keep up with what the company built, resulting in a lower backlog. This is a warning sign, and with distributed solar in greater demand than large-scale projects, it will be interesting to see what the numbers and comments First Solar releases have to say about the market‘s direction.

Speaking of distributed solar, can SolarCity continue to grow signings and installations? And more importantly, will it make progress toward profitability? This is a disruptive …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Natural Gas Will Never Knock Out Coal

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By Tyler Crowe, The Motley Fool

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Fans of Muhammad Ali should have an appreciation for the coal story. Much like the Rumble in the Jungle, where an older Ali faced a younger opponent in George Foreman, the coal industry has found itself up against a younger, cleaner opponent in natural gas. And despite the overwhelming odds in favor of the young upstart, coal, like Ali, is poised to come out of this fight as the reigning champion.

Let’s look at the scorecards and see why coal will take this fight in the long run.

The greatest in the world …
To look only at the U.S. and determine the prospects of coal would be very misleading. While low domestic gas prices have dragged the price of coal down with them, the same can’t be said overseas, for two distinct reasons:

  • Natural gas requires a much more robust infrastructure to be competitive, normally consisting of large pipeline networks and sophisticated liquefaction and regasification terminals, where coal can much more easily use existing roads, rail lines, and ports.
  • In several countries outside North America, natural gas prices are indexed to oil on a BTU equivalency. That has given North America a distinct advantage in selling natural gas, but it also enables coal to compete on the international stage much better than here.

Looking at the global market for coal, it appears there are no signs that natural gas will be able to take the title from coal. An International Energy Agency report back in January estimates that coal will pass oil as the most used energy source by 2017. In fact, the report projects that the U.S. will be the only country that will see its coal use decline between now and 2017. Just like almost every story in the energy space, the major drivers of demand will be China and India. Analysts project that the two countries’ total coal consumption for electricity generation will be almost double that of all member nations of the Organization for Economic Cooperation and Development, combined. Furthermore, coking coal for steel production should see a substantial gain as well. Total steel demand between now and 2020 is expected to double in India and continue to grow steadily in China.

With so much demand headed overseas, several coal companies in the U.S. will need to boost their export capacity. Peabody Energy has a deal in place with Kinder Morgan Energy Partners to use its export terminal in the Gulf of Mexico and on the East Coast. This agreement will increase Peabody’s export capacity in the Gulf region to a range of 5 million to 7 million tons per year. Also, as one of the leading exporters of U.S. coal, Alpha Natural Resources has the export capacity for about 25 million tons per year, which provides it plenty of room to run, considering the company exported only 14 million tons in 2011.

… just not in the United States
Despite the exploding global demand, the IEA does …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

AP Newsbreak: Feds OK expanding coal waste dam

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Federal regulators have approved Alpha Natural Resources‘ plan to expand a West Virginia coal slurry impoundment that is one of the nation’s biggest to a height taller than the Hoover Dam.

The plan will also increase the volume of waste it holds to 8.5 billion gallons.

The Mine Safety and Health Administration confirmed it’s given Virginia-based Alpha permission to expand the Brushy Fork impoundment near Whitesville.

Alpha calls it an incremental development in what has long been part of the construction plan.

Brushy Fork now holds 6.5 billion gallons and hasn’t failed, but some people worry it will. They question whether it was properly built.

Activist Joe Stanley believes waste has never properly compacted and dried, meaning Alpha could be building on an unstable base.

Alpha says past state and federal reviews found no deficiencies.

…read more
Source: FULL ARTICLE at Fox US News

Business, Finance, Occupation & Industry

Coeur Appoints Linda L. Adamany to Board of Directors; Kevin S. Crutchfield Nominated for Election t

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By Business Wirevia The Motley Fool

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Coeur Appoints Linda L. Adamany to Board of Directors; Kevin S. Crutchfield Nominated for Election to the Board

COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Coeur d’Alene Mines Corporation (the “Company” or “Coeur”) (NYS: CDE) (TSX: CDM) today announced that Linda L. Adamany has been appointed to the Company’s Board of Directors as well as the Audit Committee and the Environmental, Health, Safety and Social Responsibility (EHSSR) Committee of the Board, effective March 11, 2013. In addition, Kevin S. Crutchfield has been nominated for election to the Board at the Company’s 2013 annual meeting of shareholders to be held May 14, 2013. Upon his election, Mr. Crutchfield is expected to be appointed to the Compensation Committee and the EHSSR Committee.

Ms. Adamany is a member of the Board of Directors of AMEC plc, a multinational company that provides design, consulting and project management services for the natural resources, nuclear, clean energy, water and environmental sectors.

“We are pleased to have Linda join Coeur’s Board of Directors,” said Robert E. Mellor, Coeur’s Chairman of the Board. “With her 35 years’ experience in global industries, including as an executive and a director, Ms. Adamany brings to the Board leadership, financial and accounting expertise, familiarity with both business line and functional support areas and public company board experience.”

Mr. Crutchfield is Chairman and Chief Executive Officer of Alpha Natural Resources, Inc., a global coal company and the world’s third largest metallurgical coal supplier.

“Kevin brings 25 years of mining industry experience to the Board and we feel fortunate to have him join us,” Mellor said. “Kevin brings to the board significant experience in corporate leadership, financial and operational management, government and regulatory oversight, health and safety management, and industry expertise through his various executive roles in global natural resource businesses, in addition to experience in public company board leadership.”

Additional Information on Linda L. Adamany

Ms. Adamany is a member of the board of directors of AMEC plc, an engineering, project management and consultancy company, since October 2012; member of the board of directors of National Grid plc, an electricity and gas generation, transmission and distribution company, from November 2006 to November 2012. Ms. Adamany served at BP plc in several capacities from July 1980 until her retirement in August 2007, most recently from April 2005 to August 2007 as a member of the five-person Refining & Marketing Executive Committee responsible for overseeing …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

What Coal CEOs Are Saying Entering 2013

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By Taylor Muckerman, The Motley Fool

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Coal has been beaten up in the media and the markets over the past year or so. Being outspoken against coal has been made easy by cheaper, cleaner-burning natural gas, which has been produced in abundance here in the United States recently. 

To tackle reductions in both demand and price, coal companies in the U.S. were forced to curtail production and capital spending in preparation for future production. Entering 2013, could the coal market finally have found a trough? To help answer that question, I turned to the conference calls of some of the biggest players in the business to see what their CEO‘s had to say.

The largest player in the business, Peabody Energy ,  has found itself operating in both the western U.S. and Australia, which has allowed it great access to the import markets of China and India. Record exports helped carry Peabody and its peers through 2012’s dormant domestic market, but does Chairmen and CEO Greg Boyce see this continuing? 

We would expect a growing reliance on imports to help satisfy India‘s continued build-out to meet its energy needs. Japan and Europe also increased thermal coal imports in 2012, as coal continued to substitute for declining nuclear generation, and as international gas prices remain high. We expect to see burn thermal coal demand to grow in 2013 in excess of 40 million tons. We look for approximately 75-gigawatts of new coal-fueled generation to come online globally in 2013, which will require another 250 million tons annually at full capacity.

With positive sentiment remaining abroad for coal, what does he expect here in the U.S.? Will there be a shift or simply continuation of the status quo?

In 2013, we expect an improved supply/demand balance as stockpiles normalize, led by a 40 million to 60 million ton increase in US coal use. We expect US met and thermal coal exports to fall from 2012, due to current pricing in the seaborne market. Based on producer announcements and early trends we are seeing so far this year, we would expect US production to continue to decline in 2013.

In 2012, Alpha Natural Resources  doubled its exports of eastern thermal coal as volumes reached 6 million tons shipped. This is an area that Chairman and CEO Kevin Crutchfield says the company feels confident about the its ability to expand. Further encouraging news, he says, will emerge from the realignment of the supply and demand dynamic.

Since bottoming with spot prices reported in the low $140’s per metric ton late in the third quarter, the Asian market has strengthened as a result of reacceleration of Chinese manufacturing activity, steel restocking efforts, and record high Chinese coking coal imports in December … And the current pricing is insufficient to sustain the large portion of the remaining global production base, these raise the odds that better times lie ahead. And those odds increase further if growing Asian economies start to consume a larger portion of a smaller …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Feds seek to renew delay in Massey investors' case

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Federal prosecutors want to further delay their involvement in a long-lingering civil lawsuit filed by former Massey Energy shareholders who say the coal company lied about its safety record to inflate stock prices.

Last summer, U.S. District Judge Irene Berger issued an order that allowed prosecutors to keep secret the evidence they’ve been gathering in a continuing criminal investigation of the Upper Big Branch mine disaster.

Investors led by the Massachusetts Pension Reserves Investment contend that Massey repeatedly lied about its safety record, artificially inflating stock prices between 2008 and 2010. They say shareholders had no idea of the company’s abysmal record and history of violations until after the southern West Virginia mine exploded, killing 29 men in April 2010.

Massey has since been bought out by Virginia-based Alpha Natural Resources.

The criminal investigation of the blast has spawned three prosecutions so far, and U.S. Attorney Booth Goodwin argues it needs to be protected until he’s finished.

Prosecutors have previously said in court filings that some individual defendants in the civil case “may be or may become” targets of the criminal probe. Among those individual defendants are former chief executive officer Don Blankenship, his successor, Baxter Phillips, and former chief operating officer Chris Adkins.

Berger’s order was set to expire Tuesday, or when the government concluded its investigation.

Goodwin filed a motion late last week saying his team has made “significant progress” in the criminal case and secured the cooperation of several witnesses. Those witnesses, including former UBB superintendent Gary May and the former president of another Massey coal company, have in turn led to other witnesses, he said.

Former superintendent Gary May is set to enter a plea before Berger on Thursday in Beckley. He’s charged with defrauding the federal government through his actions at the mine, which included disabling a methane gas monitor and falsifying records.

Former security chief Hughie Elbert Stover, meanwhile, is in prison in Kentucky, convicted of lying to investigators and ordering a subordinate to destroy documents during the investigation.

And former White Buck Coal Co. President David C. Hughart is set to enter a plea to two federal conspiracy charges on Feb. 28.

He’s accused of working with unnamed co-conspirators to ensure miners at White Buck and other, unidentified Massey-owned operations, got advance warning about surprise federal inspections many times between 2000 and March 2010.

Prosecutors say that gave workers time to conceal life-threatening violations that could have led to citations and shutdowns.

Goodwin argues the criminal and civil cases “overlap heavily,” and he has previously argued that waiting for the criminal evidence could benefit the shareholders. But he also contends the public interest in “unimpeded progress” on the criminal investigation outweighs their concerns.

“Some individual civil defendants may be or may become subjects of the criminal investigation,” he wrote. “When civil discovery goes forward, the civil parties will gain information not otherwise available to them, allowing them to anticipate in detail the direction of the criminal investigation.”

Attorneys for the investors don’t oppose the extension, he said, requesting a new date of July 15 or when his investigation is done.

Source: FULL ARTICLE at Fox US News