Cloud Peak Energy
Cloud Peak Energy (CLD) is a thermal coal producer headquartered in Gillette, Wyoming. The company is one of the largest thermal coal producers in the US and was formed on July 31, 2008, as a corporate spin-off from Rio Tinto Energy America. It’s the only pure-play PRB (Powder River Basin) coal company and owns and operates mines in Wyoming as well as in Montana.
Rio Tinto Energy America
Kennecott Energy and Coal was a part of the Rio Tinto Group and was formed in 1993. It included the Spring Creek coal mine, Antelope coal mine, Cordero Mining, the Colowyo Coal, the Jacobs Ranch coal mine, and 50% of the Decker coal mine. Kennecott Energy and Coal was renamed Rio Tinto Energy America or RTEA in 2006.
In December 2008, RTEA’s Western US coal business, which included the Spring Creek coal mine, the Antelope coal mine, Cordero Mining, and 50% of the Decker coal mine, was transferred to Cloud Peak Energy.
Cloud Peak’s IPO
Cloud Peak Energy filed for an IPO (initial public offering) with 30.6 million shares at $15.0 per share and began trading on the NYSE (New York Stock Exchange) under the symbol CLD on November 25, 2009.
In this series, we’ll explore how CLD has expanded its business and evaluate its key operational metrics and financial position. After reading this series, you’ll understand what sets apart Cloud Peak Energy from competitors like CNX Coal Resources (CNXC), Alliance Resource Partners (ARLP), and Westmoreland Coal (WLB) in the coal (KOL) mining business.
We’ll wrap up the series with a company outlook, analyzing CLD’s current valuation and the factors that could drive its valuation multiples in the future.
Let’s start with the specific mines operated by CLD.