After two courts cleared the way for the merger between Alpha Natural Resources (NYSE:ANR) and Massey Energy (NYSE:MEE) to be consummated, shareholders of both companies also voted their approval for the $7 billion acquisition to go forward.
The new Alpha Natural Resources will become the second largest holder of coal reserves in the United States as a result of the merger with Massey.
On a global level, Alpha will be among the supply leaders for metallurgical coal.
Overall the new entity will operate 150 coal mines and 40 preparation plants.
Massey was trading at $65.81, falling $0.20, or 0.32 percent. Alpha Natural Resources was at $54.55, down $0.24, or 0.44 percent, as of 12:30 PM EDT.
Showing posts with label Massey Energy. Show all posts
Showing posts with label Massey Energy. Show all posts
Wednesday, June 1, 2011
Wednesday, October 20, 2010
Massey Energy (NYSE:MEE) Could Be Put Up for Sale Says FBR Capital
FBR Capital said it is maintaining its rating on Massey Energy (NYSE:MEE) at "Outperform," citing reported board meetings dealing with strategic alternatives for the company, which if true, could possibly lead to a sale of the coal miner.
"Although Massey Energy (MEE) reports 3Q10 results after the close on October 26, 2010, The Wall Street Journal has published an article noting that MEE's board is in the process of announcing strategic alternatives, including sale, acquisition, or going private. The extreme pressure from MSHA, post-UBB, has clearly affected near-term margins and caused MEE's management to spend significant time on its own investigation. While the outcome of all the investigations is still unknown (although pieces have come out), we do believe there is a real takeout scenario for the company; and we have updated our takeout valuation to around $50.00 per share, based on recent $/ton transactions and a DCF—both of which are very simplistic. We do not believe that MEE can go private and increase leverage in its current form (asset sales needed); the best outcome, if a strategic review is being done, would be a sale scenario," said FBR.
Massey moved up on the supposition, closing Tuesday at $37.33, gaining $1.77, or 4.98 percent. FBR has a price target of $47 on Massey.
"Although Massey Energy (MEE) reports 3Q10 results after the close on October 26, 2010, The Wall Street Journal has published an article noting that MEE's board is in the process of announcing strategic alternatives, including sale, acquisition, or going private. The extreme pressure from MSHA, post-UBB, has clearly affected near-term margins and caused MEE's management to spend significant time on its own investigation. While the outcome of all the investigations is still unknown (although pieces have come out), we do believe there is a real takeout scenario for the company; and we have updated our takeout valuation to around $50.00 per share, based on recent $/ton transactions and a DCF—both of which are very simplistic. We do not believe that MEE can go private and increase leverage in its current form (asset sales needed); the best outcome, if a strategic review is being done, would be a sale scenario," said FBR.
Massey moved up on the supposition, closing Tuesday at $37.33, gaining $1.77, or 4.98 percent. FBR has a price target of $47 on Massey.
Tuesday, October 19, 2010
Goldman's (NYSE:GS) Coal Favorites are Peabody (NYSE:BTU), Consol (NYSE:CNX)
Goldman Sachs (NYSE:GS) lowered its overall rating on the coal sector to "Neutral," saying their favorite in the segment is Peabody Energy (NYSE:BTU), which they retain a "Buy" on, and Consol Energy (NYSE:CNX), which also kept their "Buy" rating from Goldman on them.
In their report, Goldman said, "We see 13 percent upside to our target prices and believe a neutral coverage view is more appropriate."
Alpha Natural Resources (NYSE:ANR) had its rating slashed to "Neutral" by Goldman, while Massey Energy (NYSE:MEE), Arch Coal (NYSE:ACI) and Walter Industries (NYSE:WLT) all had "Neutral" ratings maintained on them.
The latter three were kept "Neutral," according to Goldman, until individual issues related to each company become clearer.
Goldman's preference for Peabody was based on its "organic growth options," and Console because of its "attractive low-cost asset mix and upcoming catalysts," according to the report.
The benchmark metallurgical coal estimate for 2012 was increased to $193 a metric done by Goldman, up from the prior projection of $175.
In their report, Goldman said, "We see 13 percent upside to our target prices and believe a neutral coverage view is more appropriate."
Alpha Natural Resources (NYSE:ANR) had its rating slashed to "Neutral" by Goldman, while Massey Energy (NYSE:MEE), Arch Coal (NYSE:ACI) and Walter Industries (NYSE:WLT) all had "Neutral" ratings maintained on them.
The latter three were kept "Neutral," according to Goldman, until individual issues related to each company become clearer.
Goldman's preference for Peabody was based on its "organic growth options," and Console because of its "attractive low-cost asset mix and upcoming catalysts," according to the report.
The benchmark metallurgical coal estimate for 2012 was increased to $193 a metric done by Goldman, up from the prior projection of $175.
Thursday, October 7, 2010
Massey (NYSE:MEE), Alpha Natural Resources (NYSE:ANR), International Coal (NYSE:ICO), Cloud Peak (NYSE:CLD) Now Covered by Brean Murray
Brean Murray initiated coverage on a number of coal stocks, including Cloud Peak Energy (NYSE:CLD), International Coal Group (NYSE:ICO), Alpha Natural Resources (NYSE:ANR) and Massey Energy (NYSE:MEE).
Alpha Natural Resources is the top pick in the sector, with Massey coming in right behind them said Brean.
Coud and International Coal were started off with a "Hold," while Massey was initiated with a "Buy."
Brean said, "While Alpha Natural Resources (NYSE:ANR) is our official top pick, we'd have to say Massey is a close second. In our view, the regulatory pressures are largely priced into the stock, so that the risk-reward balance is now favoring investors who own the stock, in our view. The company's growing met coal exposure and leading Central Appalachian position make its assets among the most attractive in our universe."
Massey was among the top performers Wednesday, closing at $33.82, gaining $1.94, or 6.09 percent. Brean has a price target of $39 placed on them.
Alpha Natural Resources is the top pick in the sector, with Massey coming in right behind them said Brean.
Coud and International Coal were started off with a "Hold," while Massey was initiated with a "Buy."
Brean said, "While Alpha Natural Resources (NYSE:ANR) is our official top pick, we'd have to say Massey is a close second. In our view, the regulatory pressures are largely priced into the stock, so that the risk-reward balance is now favoring investors who own the stock, in our view. The company's growing met coal exposure and leading Central Appalachian position make its assets among the most attractive in our universe."
Massey was among the top performers Wednesday, closing at $33.82, gaining $1.94, or 6.09 percent. Brean has a price target of $39 placed on them.
Wednesday, September 22, 2010
Massey (NYSE:MEE) CEO Says Government Lying in Mine Investigation
Massey Energy chief executive officer Don Blankenship the Mine Safety and Health Administration, saying the isn't even attempting to seriously investigate the Upper Branch mine explosion which killed 29 workers.
More than that though, Blankenship said they're outright lying in an attempt to win publicity wars, rather than perform a legitimate investigation into the matter.
Massey and Blankenship contend the methane involved with the incident leaked in through a floor crack, which resulted in the safeguards in place being overwhelmed. For example, ventilation equipment.
On the other hand, the MSHA set forth a new regulation which requires mines to better manage the coal dust, focusing on that while dismissing the methane issue.
More than that though, Blankenship said they're outright lying in an attempt to win publicity wars, rather than perform a legitimate investigation into the matter.
Massey and Blankenship contend the methane involved with the incident leaked in through a floor crack, which resulted in the safeguards in place being overwhelmed. For example, ventilation equipment.
On the other hand, the MSHA set forth a new regulation which requires mines to better manage the coal dust, focusing on that while dismissing the methane issue.
Monday, September 20, 2010
Macquarie Slashes Massey (NYSE:MEE) After Lower Guidance
After Massey Energy Company (NYSE:MEE) lowered its guidance, Macquarie downgraded the stock from "Outperform" to "Neutral."
Not only has the company lowered its outlook for shipments, but also expects a loss in the third quarter.
Massey's Chairman and CEO Don Blankenship said, "Our operations have continued to struggle since April. As we have noted earlier,
increasingly stringent enforcement actions by MSHA across our
operations and throughout the Central Appalachian region have resulted
in lost shifts and loss of productivity. In addition, our Revolution
longwall mine was idled in June for a planned longwall move but has
remained down pending approval of its ventilation plan. As a result of
these and other factors, we now expect our third quarter shipments to
approximate 10 million tons and we expect to report an operating loss
for the quarter."
Concerning guidance for 2011, Blankenship added, "We remain confident that we will achieve operational improvements going forward. As the Upper Big Branch investigation winds down, we have refocused management time and attention on our ongoing operations and we are initiating actions to improve productivity and re-establish operating consistency in all our mines. In addition, our early negotiations with metallurgical coal customers give us reason to expect pricing in 2011 will be favorable to what we have realized in 2010. Our guidance for 2011 remains unchanged."
Results for the third quarter will be released on after the close of the market on October 26, 2010.
Not only has the company lowered its outlook for shipments, but also expects a loss in the third quarter.
Massey's Chairman and CEO Don Blankenship said, "Our operations have continued to struggle since April. As we have noted earlier,
increasingly stringent enforcement actions by MSHA across our
operations and throughout the Central Appalachian region have resulted
in lost shifts and loss of productivity. In addition, our Revolution
longwall mine was idled in June for a planned longwall move but has
remained down pending approval of its ventilation plan. As a result of
these and other factors, we now expect our third quarter shipments to
approximate 10 million tons and we expect to report an operating loss
for the quarter."
Concerning guidance for 2011, Blankenship added, "We remain confident that we will achieve operational improvements going forward. As the Upper Big Branch investigation winds down, we have refocused management time and attention on our ongoing operations and we are initiating actions to improve productivity and re-establish operating consistency in all our mines. In addition, our early negotiations with metallurgical coal customers give us reason to expect pricing in 2011 will be favorable to what we have realized in 2010. Our guidance for 2011 remains unchanged."
Results for the third quarter will be released on after the close of the market on October 26, 2010.
Friday, September 17, 2010
FBR Reiterates "Outperform" on Massey (NYSE:MEE)
Massey Energy (NYSE:MEE) had its "Outperform" rating maintained on them by FBR Capital.
FBR said, "While MEE continues its struggle to put UBB behind it and to divert management's focus to operations, the process is taking a little bit longer than we expected. MEE continues to see MSHA enforcement and delays (in approval of ventilation plans) hurting the operational expectations, with the company missing targets.
"We are lowering our 2010 EPS/EBITDA estimates to $0.61/$458M, from $1.47/$574M, primarily to reflect $2.50/ton higher than earlier expected costs, 0.4MTs lower volumes, and lower realized pricing following the guidance update provided by MEE yesterday after the close. We are largely maintaining our 2011 and 2012 estimates."
FBR lowered its price target on Massey to $43.
FBR said, "While MEE continues its struggle to put UBB behind it and to divert management's focus to operations, the process is taking a little bit longer than we expected. MEE continues to see MSHA enforcement and delays (in approval of ventilation plans) hurting the operational expectations, with the company missing targets.
"We are lowering our 2010 EPS/EBITDA estimates to $0.61/$458M, from $1.47/$574M, primarily to reflect $2.50/ton higher than earlier expected costs, 0.4MTs lower volumes, and lower realized pricing following the guidance update provided by MEE yesterday after the close. We are largely maintaining our 2011 and 2012 estimates."
FBR lowered its price target on Massey to $43.
Thursday, September 2, 2010
Massey (NYSE:MEE), Arch Coal (NYSE:ACI) Upgraded by HSBC (NYSE:HBC)
HSBC (NYSE:HBC) evidently believes the coal industry is beaten down, and upgraded Massey Energy Co. (NYSE:MEE) and Arch Coal (NYSE:ACI) Wednesday.
They upgraded Massey Energy from "Neutral" to "Overweight." The coal mining company has lost 47 percent of its share price since the explosion at the West Virginia mine.
Arch Coal also had a rating upgrade from “Neutral” to “Overweight” by HSBC, with a price target of $30 a share on the company.
Arch Coal closed at $23.99 Wednesday, gaining $1.49, or 6.65 percent a share. Massey ended the session at $30.77, an increase of $2.01, or 6.99 percent.
They upgraded Massey Energy from "Neutral" to "Overweight." The coal mining company has lost 47 percent of its share price since the explosion at the West Virginia mine.
Arch Coal also had a rating upgrade from “Neutral” to “Overweight” by HSBC, with a price target of $30 a share on the company.
Arch Coal closed at $23.99 Wednesday, gaining $1.49, or 6.65 percent a share. Massey ended the session at $30.77, an increase of $2.01, or 6.99 percent.
Thursday, August 26, 2010
Coal Producers Peabody Energy (NYSE:BTU), Massey (NYSE:MEE), Alpha (NYSE:ANR), Consol (NYSE:CNX), Plunge on Recession Concerns
Coal firms Peabody Energy (NYSE:BTU), Alpha Natural Resources Inc. (NYSE:ANR), Massey Energy Co. (NYSE:MEE) and Consol Energy Inc. (NYSE:CNX) all plummeted in Wednesday's trading, as economic data continue to confirm we remain in a recession, with little hope of exiting it anytime soon.
Consol Energy could come under even more pressure, not only because of their coal exposure, but their natural gas exposure, which would be under pressure because of enormous supply, whether there was a recession or not.
With stimulus money leaving the economy, its naked state has again been exposed, and it is as weak as ever, putting pressure on providers of energy and raw materials.
Following on the footsteps of the horrid figures for house sales yesterday, new data showed the sales of new homes also plunged, down 12 percent, from June. That would put sales at the lowest level since statistics have been kept - 276,000 annually.
There is no doubt the slowdown will continue, and companies and investors should respond to that accordingly.
After all, if about $1 trillion in stimulus can do absolutely nothing to change the economy, adding another $1 trillion won't either, and it would be foolish and criminal to place that over the heads of the American people, as some are calling for the Federal Reserve and government to do.
While Arch Coal (NYSE:ACI) also fell in price, and exception was Patriot coal (NYSE:PCX), who managed to end Wednesday's trading session at $10.60, gaining $0.21, or 2.02 percent.
The only news there was Patriot's president and chief operating officer, Paul H. Vining, was stepping down.
Consol Energy could come under even more pressure, not only because of their coal exposure, but their natural gas exposure, which would be under pressure because of enormous supply, whether there was a recession or not.
With stimulus money leaving the economy, its naked state has again been exposed, and it is as weak as ever, putting pressure on providers of energy and raw materials.
Following on the footsteps of the horrid figures for house sales yesterday, new data showed the sales of new homes also plunged, down 12 percent, from June. That would put sales at the lowest level since statistics have been kept - 276,000 annually.
There is no doubt the slowdown will continue, and companies and investors should respond to that accordingly.
After all, if about $1 trillion in stimulus can do absolutely nothing to change the economy, adding another $1 trillion won't either, and it would be foolish and criminal to place that over the heads of the American people, as some are calling for the Federal Reserve and government to do.
While Arch Coal (NYSE:ACI) also fell in price, and exception was Patriot coal (NYSE:PCX), who managed to end Wednesday's trading session at $10.60, gaining $0.21, or 2.02 percent.
The only news there was Patriot's president and chief operating officer, Paul H. Vining, was stepping down.
Tuesday, July 27, 2010
Massey Energy (NYSE:MEE) Earnings Loss From Charges Related to Upper Big Branch
Not unexpectedly, Massey Energy Co (NYSE:MEE) posted a loss for the quarter in light of the charges related to the explosion at Upper Big Branch mine in West Virginia which killed 29 workers; the worst mining accident in 40 years.
Massey had a net loss of $88.7 million, or 88 cents a share. Last year during the same quarter they enjoyed a profit of $20.2 million, or 24 cents a share.
Revenue for the latest quarter beat last year's numbers, coming in at $693.1 million, in contrast to $603.2 million in 2009.
After the mining accident, Massey told shareholders charges would be taken from $80 million to $150 million costs and liabilities related to the incident.
Included in the results for the quarter is pre-tax charges of $128.9 million connected to the accident. Without the charges Massey would have lost 2 cents a share.
Massey had a net loss of $88.7 million, or 88 cents a share. Last year during the same quarter they enjoyed a profit of $20.2 million, or 24 cents a share.
Revenue for the latest quarter beat last year's numbers, coming in at $693.1 million, in contrast to $603.2 million in 2009.
After the mining accident, Massey told shareholders charges would be taken from $80 million to $150 million costs and liabilities related to the incident.
Included in the results for the quarter is pre-tax charges of $128.9 million connected to the accident. Without the charges Massey would have lost 2 cents a share.
Friday, July 2, 2010
Massey Energy (NYSE:MEE) Supervisors Face Criminal Charges Related to Fire
Four Massey Energy (NYSE:MEE) supervisors have been charged with federal crimes in relationship to a fire at Aracoma Alma No. 1 mine in West Virginia, which resulted in the deaths of two miners in 2006.
Charges are they didn't conduct mandatory safety drills at the mine in 2005 and 2006.
The defendant supervisors are: Donald Hagy, Jr., 47, of Gilbert; Terry Shadd, 37, of Chapmanville; Edward R. Ellis, Jr., 38, of Justice; and Michael A. Plumley, 38, of Delbarton.
"We expect all of our miners to follow state and federal laws as well as company policies, which are often more stringent," Massey said in statement. "At the same time, we must recognize that the miners who have been charged have due process rights and are presumed innocent until proven guilty."
It's assumed there has been a plea bargain reached because the four were charged in a federal information, which requires the consent of the defendants in a case.
Massey still faces legal charges related to its Upper Big Branch mine, where 29 workers were killed on April 5.
Charges are they didn't conduct mandatory safety drills at the mine in 2005 and 2006.
The defendant supervisors are: Donald Hagy, Jr., 47, of Gilbert; Terry Shadd, 37, of Chapmanville; Edward R. Ellis, Jr., 38, of Justice; and Michael A. Plumley, 38, of Delbarton.
"We expect all of our miners to follow state and federal laws as well as company policies, which are often more stringent," Massey said in statement. "At the same time, we must recognize that the miners who have been charged have due process rights and are presumed innocent until proven guilty."
It's assumed there has been a plea bargain reached because the four were charged in a federal information, which requires the consent of the defendants in a case.
Massey still faces legal charges related to its Upper Big Branch mine, where 29 workers were killed on April 5.
Thursday, June 10, 2010
Massey Energy (NYSE:MEE) Seeks Help from Governors Over MSHA Actions
Don Blankenship, President and CEO of Massey Energy (NYSE:MEE), sent a letter today to governors of four states over concerns he has with the U.S. Mine Safety and Health Administration (MSHA).
The states and governors Blankenship sent the letter to include Kentucky Gov. Steve Beshear, Virginia Gov. Robert F. McDonnell, Illinois Gov. Patrick J. Quinn III and West Virginia Gov. Joe Manchin.
What Blankenship addressed in the letters was the concern over the MSHA imposing new mine ventilation rules on the company without a cause of the explosion at the Upper Big Branch Mine being determined yet.
He said in the letter, "Importantly, we have recently learned that MSHA had been warned about the safety of this ventilation system in Illinois before imposing it upon us."
Blankenship was concerned MSHA could be doing more harm than good, saying, "We believe experts in the state agencies better understand this and the unique mining conditions present in your states. We fully support budgetary measures that will allow the states to keep or attract the kinds of experts necessary to closely scrutinize mining plans with mine-specific issues in mind. As you are aware, mine ventilation is not a one-size-fits-all issue."
The states and governors Blankenship sent the letter to include Kentucky Gov. Steve Beshear, Virginia Gov. Robert F. McDonnell, Illinois Gov. Patrick J. Quinn III and West Virginia Gov. Joe Manchin.
What Blankenship addressed in the letters was the concern over the MSHA imposing new mine ventilation rules on the company without a cause of the explosion at the Upper Big Branch Mine being determined yet.
He said in the letter, "Importantly, we have recently learned that MSHA had been warned about the safety of this ventilation system in Illinois before imposing it upon us."
Blankenship was concerned MSHA could be doing more harm than good, saying, "We believe experts in the state agencies better understand this and the unique mining conditions present in your states. We fully support budgetary measures that will allow the states to keep or attract the kinds of experts necessary to closely scrutinize mining plans with mine-specific issues in mind. As you are aware, mine ventilation is not a one-size-fits-all issue."
Wednesday, June 9, 2010
Massey Energy (NYSE:MEE) Sued Over Safety Record
Several institutional investors have joined forces to sue Massey Energy over its mine safety record which they allege led to the explosion at the Upper Big Branch mine in Virginia,
Plaintiffs in the suit include Amalgamated Bank, Manville Trust and CalSTRS.
The lawsuit is directed toward officers and directors of Massey Energy over the issue.
While the institutional investors cite the supposed 38 times the company had been cited for violations, an administrative law judge ruled on Tuesday there was no pattern of violations which would need to lead to stricter regulation at the Upper Branch mine.
The Federal Mine Safety and Health Review Commission judge ruled concerning the No. 1 mine that 10 of the 29 violations weren't of a serious nature, which would drop them below the required 25 needed to establish a pattern.
Plaintiffs in the suit include Amalgamated Bank, Manville Trust and CalSTRS.
The lawsuit is directed toward officers and directors of Massey Energy over the issue.
While the institutional investors cite the supposed 38 times the company had been cited for violations, an administrative law judge ruled on Tuesday there was no pattern of violations which would need to lead to stricter regulation at the Upper Branch mine.
The Federal Mine Safety and Health Review Commission judge ruled concerning the No. 1 mine that 10 of the 29 violations weren't of a serious nature, which would drop them below the required 25 needed to establish a pattern.
Wednesday, May 26, 2010
Massey Energy (NYSE:MEE): More Citations
Massey Energy (NYSE:MEE) received 23 citations from federal mining inspectors since May 14 at the Upper Big Branch mine, where 29 miners were killed in April.
While many of them were related to electrical problems, three were labeled as "significant and substantial," although it wasn't clear as to whether they played any role in the explosions and deaths at the mine.
The citations were issued by the Mine Safety and Health Administration, which oversees the industry.
Those violations considered as more serious were related to what are called escapeways, which must be taken care of very well to ensure workers can leave the area unobstructed in case of emergency situations.
Also cited were travelways, which are exactly what they sound like, means of moving from one working area to another.
The mine is still filled with high levels carbon monoxide, so inspectors haven't been able to go underground yet. Expectations are they may be able to enter the mine by June 2.
While many of them were related to electrical problems, three were labeled as "significant and substantial," although it wasn't clear as to whether they played any role in the explosions and deaths at the mine.
The citations were issued by the Mine Safety and Health Administration, which oversees the industry.
Those violations considered as more serious were related to what are called escapeways, which must be taken care of very well to ensure workers can leave the area unobstructed in case of emergency situations.
Also cited were travelways, which are exactly what they sound like, means of moving from one working area to another.
The mine is still filled with high levels carbon monoxide, so inspectors haven't been able to go underground yet. Expectations are they may be able to enter the mine by June 2.
Massey Energy (NYSE:MEE) Not for Sale
Massey Energy (NYSE:MEE) said the rumors and reports stating they're for sale are false, and there is not truth to them whatsoever.
Some of this is evidently being circulated because of moves by the company to sell some assets or enter into some joint ventures with other companies.
Regions where Massey is looking at doing deals in are the United States, Australia, Mongolia and India.
Massey is looking to partner with Jindal Steel & Power (JNSP.BO), based in India, to develop and operate underground coal mines in that country.
Some of this is evidently being circulated because of moves by the company to sell some assets or enter into some joint ventures with other companies.
Regions where Massey is looking at doing deals in are the United States, Australia, Mongolia and India.
Massey is looking to partner with Jindal Steel & Power (JNSP.BO), based in India, to develop and operate underground coal mines in that country.
Wednesday, May 12, 2010
Duke Energy (NYSE:DUK) Says Coal Prices will Rise
Duke Energy (NYSE:DUK) said the price of coal will rise over the next 12 months, citing the accident involving Massey Energy’s (NYSE:MEE) Upper Big Branch coal mine as one of the major factors in the increase in coal prices since the middle of April of 10 percent.
Actions from the Environmental Protection Agency are also the culprit in increasing coal prices, as they are demanding stricter regulations for mine water permits, and have proposed revoking a mining permit of Arch Coal (NYSE:ACI) as well, pushing prices higher.
It seems the government may be doing some of this deliberately in order to push its own energy agenda, which will cost far higher than the price of coal and other energy, but can't compete unless existing energy resources move up in price.
Consequently coal prices are expected to continue rising into 2012.
Actions from the Environmental Protection Agency are also the culprit in increasing coal prices, as they are demanding stricter regulations for mine water permits, and have proposed revoking a mining permit of Arch Coal (NYSE:ACI) as well, pushing prices higher.
It seems the government may be doing some of this deliberately in order to push its own energy agenda, which will cost far higher than the price of coal and other energy, but can't compete unless existing energy resources move up in price.
Consequently coal prices are expected to continue rising into 2012.
Massey Energy (NYSE:MEE) Processing Plant Almost Finished
Massey Energy (NYSE:MEE) announced today the processing plant they've been working on to replace the one that burnt last year is almost completed in West Virginia.
Operations at the new plant are scheduled to begin in September, and will be named after one of the retired directors of the company, Richard Zigmond, and will be named Zigmond Processing.
The new plant will employ over 480 people said Massey, and will be involved with processing coal from six mines.
Massey is still recovering from the mining disaster at the Upper Big Branch mine which cost 29 workers their lives.
Operations at the new plant are scheduled to begin in September, and will be named after one of the retired directors of the company, Richard Zigmond, and will be named Zigmond Processing.
The new plant will employ over 480 people said Massey, and will be involved with processing coal from six mines.
Massey is still recovering from the mining disaster at the Upper Big Branch mine which cost 29 workers their lives.
Saturday, May 8, 2010
Patriot Coal (NYSE:PCX), Massey Energy (NYSE:MEE), Alpha Natural Resources (NYSE:ANR), Peabody Energy (NYSE:BTU), Arch Coal (NYSE:ACI), Consol Energy (NYSE:CNX)- All Down
Coal companies took a big hit, as major coal companies like Patriot Coal (NYSE:PCX), Massey Energy (NYSE:MEE), Alpha Natural Resources (NYSE:ANR), Peabody Energy (NYSE:BTU), Arch Coal (NYSE:ACI), Consol Energy (NYSE:CNX) were all down on concerns over the European sovereign debt crisis.
With the risk of contagion very real, many think the sovereign debt debacle in Europe could bring the economy back into a deep recession, which is debatable as to whether or not it has really ever left.
Coal is a bellwhether of the economy, and so usually how coal goes, so the economy is also going, and the market shows there is a growing concern over whether or not the global economy can take a hit as big as it looks like it will with the countries in Europe.
With the risk of contagion very real, many think the sovereign debt debacle in Europe could bring the economy back into a deep recession, which is debatable as to whether or not it has really ever left.
Coal is a bellwhether of the economy, and so usually how coal goes, so the economy is also going, and the market shows there is a growing concern over whether or not the global economy can take a hit as big as it looks like it will with the countries in Europe.
Wednesday, April 21, 2010
Massey Energy (NYSE:MEE) Taking Charge in Second Quarter on Upper Big Branch Accident
Massey Energy (NYSE:MEE) said in the second quarter the company will take a charge from the explosion at its Upper Big Branch mine which killed 29 workers.
With metallurgical coal being a prime product and the loss of production at the Upper Big Branch mine, Chief Executive Officer Don Blankenship said they'll make up for that by increasing production at all operating metallurgical coal mines by increasing the work week to six days and adding adding three continuous miner sections at Elk Run mines, which is close to Upper Big Branch.
"Financial results for the second quarter 2010 will include a charge related to the tragic accident at the Upper Big Branch mine," said Blankenship.
"While Massey anticipates further analysis will be required, the company estimates the range of loss to be $80 million to $150 million for charges related to the benefits being provided to the families of the fallen miners, costs associated with the rescue and recovery efforts, insurance deductibles, possible legal and other contingencies."
First quarter results exceeded analysts expectations, as net income was $33.6 million, or 39 cents a share, whereas analysts had been looking for 27 cents a share. Last year during the same quarter net income was $43.4 million, or 51 cents a share.
With metallurgical coal being a prime product and the loss of production at the Upper Big Branch mine, Chief Executive Officer Don Blankenship said they'll make up for that by increasing production at all operating metallurgical coal mines by increasing the work week to six days and adding adding three continuous miner sections at Elk Run mines, which is close to Upper Big Branch.
"Financial results for the second quarter 2010 will include a charge related to the tragic accident at the Upper Big Branch mine," said Blankenship.
"While Massey anticipates further analysis will be required, the company estimates the range of loss to be $80 million to $150 million for charges related to the benefits being provided to the families of the fallen miners, costs associated with the rescue and recovery efforts, insurance deductibles, possible legal and other contingencies."
First quarter results exceeded analysts expectations, as net income was $33.6 million, or 39 cents a share, whereas analysts had been looking for 27 cents a share. Last year during the same quarter net income was $43.4 million, or 51 cents a share.
Saturday, April 10, 2010
Coal Prices Up On Massey (NYSE:MEE) Mine Explosion
Coal prices soar after Massey mine explosion
The explosion at a Massey Energy (NYSE:MEE) mine has caused the price of metallurgical coal to increase as a tight coal market will continue to struggle with the loss of coal supply.
Now that the final four miners' bodies have been found, bringing the total loss of life to 29, it becomes the worst mining accident since 1970.
It'll take months to find the cause behind the explosions, and that will drag on the coal market for some time.
Metallurgical coal is a higher quality product, and demand is high for it, especially in Asia.
Estimates for the Upper Big Branch mine was to ship about 1.6 million tons of metallurgical coal in 2010, about 3 percent of all production in the U.S., based on numbers from 2009.
Even with increased production at other mines, Massey said it's doubtful they're be able to replace what the Upper Big Branch mine would have produced.
With spot prices already increasing by 22 percent, steelmakers will be under pressure, determined by whether or not they'll have to eat the higher prices and have their margins fall, or they are able to pass them on to their customers.
The explosion at a Massey Energy (NYSE:MEE) mine has caused the price of metallurgical coal to increase as a tight coal market will continue to struggle with the loss of coal supply.
Now that the final four miners' bodies have been found, bringing the total loss of life to 29, it becomes the worst mining accident since 1970.
It'll take months to find the cause behind the explosions, and that will drag on the coal market for some time.
Metallurgical coal is a higher quality product, and demand is high for it, especially in Asia.
Estimates for the Upper Big Branch mine was to ship about 1.6 million tons of metallurgical coal in 2010, about 3 percent of all production in the U.S., based on numbers from 2009.
Even with increased production at other mines, Massey said it's doubtful they're be able to replace what the Upper Big Branch mine would have produced.
With spot prices already increasing by 22 percent, steelmakers will be under pressure, determined by whether or not they'll have to eat the higher prices and have their margins fall, or they are able to pass them on to their customers.
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