NEW YORK ( The Deal) -- Coal miner Walter Energy (WLT - Get Report) revealed in a conference call Thursday, Aug. 1, that it would look to generate $250 million from asset sales and joint venture opportunities in the next nine months, as low metallurgical coal prices continue to weigh on its earnings.
News of the asset sales coincided with the Birmingham, Ala.-based company's second quarter earnings, where the company reported a loss of $34.5 million for the quarter ended June 30, compared with earnings of $31.9 million in the same period in 2012. Revenue dropped 35% to $441.5 million.
Walter did not reveal exactly what assets are on the block, but CFO Bill Harvey hinted in an earnings call, that its U.K. assets as well as its Blue Creek mine in Alabama would be considered for either a sale or joint ventures offers. The company also has a number of non-operated assets that could also be pegged for sale.
"Where we are in the process is we are dealing with inquiries," Harvey said. "We're not going to cover what exact assets we're talking about" but Walter has received "actual contact on more than those assets," he added.Brandon Blossman of advisory firm Tudor, Pickering, Holt & Co. said the company is likely seeking a sale of its U.K. assets and a joint venture partner for Blue Creek and that more asset sales could come as the process takes shape. "Management implied they were working through a process on assets in addition to