Energy & Mining

Cloud Peak Energy Inc. (NYSE:CLD) Announces Results for the First Quarter of 2017

Cloud Peak Energy Inc. (NYSE:CLD)

Cloud Peak Energy Inc. (NYSE:CLD) has announced its financial results for the first quarter of 2017. Cloud Peak Energy is one of the biggest producers of coal and the only pure-play Powder River Basin Company in the United States.

In the results announced, Cloud Peak Energy Inc. (NYSE:CLD) reported $20.1 in net income. Adjusted EBITDA of the first quarter of 2017 stood at $20.4 million. The company reported an average cost per ton of $9.78. These results are an improvements compared to what the company reported the same period last year.

The company exported a total of 0.5 million tons during the quarter in addition to 3.3 million in contracts with to Asia that the company expects to deliver in 2017. In the first quarter of 2017, the company reported $64.7 million in net proceeds after issuing a total of 13.5 million shares of common stock. Proceeds from equity funded the redemption of the company’s 2019 outstanding senior notes. These transactions reduced the company’s outstanding long-term debt and has no maturing debt until 2021. The company closed the first quarter of 2017 with liquidity of $455 million.

While commenting on the results, Cloud Peak Energy Inc. (NYSE:CLD) President and Chief Executive Officer Colin Marshall said the company initiated several cost cutting initiatives which have reflected in several efficiency and cost control initiatives that were initiated in 2016 to adopt lower shipment volumes. He adds that Cloud Peak Energy Inc. (NYSE:CLD) delivered a strong financial and operating performance in the first quarter of 2017, a situation he attributes to improving economic environment in the industry.

In the first quarter of 2017, the company reported only one injury out of its 1,150 full-time mine site employees. The company did not report any environmental incidents in the first quarter.

The revenue from the sale of the three mines comprised a big portion of the company’s Owned and Operated Mines segment. In addition, Cloud Peak Energy Inc. (NYSE:CLD) reported stronger shipment data during the first quarter of 2017 as compared to the same time the previous year. This is attributed to higher prices of natural gas of almost $3.00 per MMBtu. The company’s plants which are powered by coal operated continuously during the quarter and lowered the coal inventories although much lower than expected.

There was increase in revenue generated from Owned and Operated Mines segment during the first quarter of 2017 as compared to the first quarter of 2016. This is attributed to increase in shipments which were offset by lower prices per ton. Cloud Peak Energy Inc. (NYSE:CLD) reported $9.78 in cost per ton improvement during the quarter lower than the $11.15 that was reported in the first quarter of 2016.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

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Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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