Scale-Down in Mines Hurts Cloud Peak Energy’s 1Q15 Shipments




Cloud Peak Energy (CLD) shipped 19.7 million tons of coal from its three owned and operated mines during 1Q15, compared to 20.4 million tons during 1Q14. The company delivered 1.7 million tons of coal through its logistics segment in 1Q15, up from 1.2 million tons in 1Q14. Deliveries to Asia came in at 1.4 million tons in 1Q15, up from 1 million tons in 1Q14. Overall shipments were lower as the company scaled down production at its Cordero Rojo mine.

CLD mines coal solely in the Powder River Basin (or PRB), the cheapest coal-producing region in the US. Peabody Energy (BTU), Arch Coal (ACI), and Alpha Natural Resources (ANR) are other prominent coal producers (KOL) with operations in PRB.

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The company saw a marginal uptick in revenues per ton. The price per ton came in at $13.05 for 1Q15 compared to $13.02 in 1Q14. Coal revenues came in at $261.8 million in 1Q15 compared to $269.6 million in 1Q14, a 2.9% drop, primarily due to lower shipments. The logistics revenues increased to $69.4 million in 1Q15 from $58.5 million in 1Q14 due to higher shipments to Asia. The overall revenues came in at $317.6 million compared to $319.1 million reported during the corresponding quarter last year.

Contract position

As of March 31, 2015, the company had 73 million tons, 95% of targeted 2015 production, contracted for 2015 at fixed price, which was the midpoint of the company’s guidance. The company expects to realize $12.88 per ton for the produced coal.


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