This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cloud Peak Energy Inc. Announces Results For The Third Quarter And First Nine Months Of 2012

We continue to scrutinize capital expenditures. As a result of continuing to optimize our condition monitoring maintenance programs, we are reducing our expected capital expenditures for 2012 to between $50 million and $60 million.

For 2012, Cloud Peak Energy has committed 92.4 million tons, of which 92.0 million tons are under fixed-price agreements with a weighted-average price of $13.23 per ton. Assuming current low OTC prices for our committed but unpriced 2012 tons, our weighted-average price would be $13.20 per ton for the full year 2012. We are not expecting to make any significant additional sales for delivery in 2012 and are focusing on working with our customers to ensure delivery of their committed tonnages. During the third quarter of 2012, our committed position for 2013 increased by only 3.4 million tons to 84.6 million tons due to limited activity in the markets. Of this committed 2013 production, 74.6 million tons are under fixed-price commitments with a weighted-average price of $13.58 per ton. For 2014, we currently have 54.7 million tons committed of which 43.3 million tons are under fixed-price commitments with a weighted-average price of $14.49. If the current weak pricing environment persists through the balance of this year, the expected average realized prices for 2013 are likely to be similar to 2012.

Current Newcastle forward prices for 2013 are below 2012 levels, which will reduce our 2013 export margins. Consequently, we have not yet committed pricing on our export tons beyond the first quarter of 2013, and we will expect to lock in further pricing in the coming quarters when we are hopeful prices will rise from their current low levels. Our Newcastle hedging is providing some protection against the current low prices.

Marshall said, “We are encouraged that domestic customers are now taking their committed coal, and we are receiving fewer requests for tonnage deferrals. The hot summer and the rebound in the price of natural gas have resulted in utilities sending their trains and burning their contracted coal. We are anticipating a normal winter which should continue to draw down the stockpiles of coal and move natural gas consumption to domestic and commercial heating. Given this scenario, it is still likely that it will take until at least mid-2013 for the impact of last winter on PRB prices to be worked though so we can return to a more favorable pricing environment. However, 2012 is going well and after a record third quarter, we are raising our guidance to reflect these improvements.”

4 of 9

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs