Cloud Peak Energy Cuts 2014 Shipment And Adj. EBITDA Guidance - Quick Facts

(RTTNews) - Cloud Peak Energy Inc. (CLD) said it lowered its 2014 shipment and Adjusted EBITDA guidance and provided its current medium term outlook.

The company updated its guidance for 2014 coal shipments for its three owned and operated mines to between 83 million and 86 million tons, compared to its July 29, 2014 guidance of 85 million to 89 million tons.

The company also updated its guidance for 2014 Adjusted EBITDA to between $170 million and $200 million. On July 29, 2014, the Company issued 2014 Adjusted EBITDA guidance of $180 million to $210 million.

Colin Marshall, Cloud Peak Energy's President and Chief Executive Officer said, "As we previously stated, our earlier guidance ranges were dependent upon an improvement in rail performance through the end of the year. While we believe the rail performance issues are being addressed, the reality is that the improvements have not taken place at a sufficiently robust pace to allow us to maintain our previous guidance. In addition, in late August our Cordero Rojo Mine was impacted by a significant rain storm causing flooding and damage to some equipment, which will slow shipments and cause us to incur some additional costs."

Looking ahead to 2015 and 2016, the company anticipates annual shipments to be between 78 million and 84 million tons from its three owned and operated mines, as the previously announced reductions take place in 8400 Btu production from the Company's Cordero Rojo Mine.

Taking pricing and volume factors into account, its preliminary estimates are that Adjusted EBITDA for 2015 could be approximately $120 million if coal prices were to remain at recent depressed levels through the end of next year. A $1 per ton improvement in domestic prices and a $10 per tonne improvement in Newcastle prices could result in Adjusted EBITDA for 2015 of approximately $180 million depending on the timing of improved prices and actual shipments.

In 2015, the Company expects to spend between $30 million and $50 million on capital expenditures to sustain the existing equipment fleet and a further $20 million on the repair and relocation of a dragline from the Cordero Rojo Mine to the Antelope Mine. The fifth and final installment of $69 million on the West Antelope II LBA will be paid in 2015, with no further LBA payments anticipated in 2016.