| Cloud Peak Energy’s Cash Balances Fall, Leverage Is Controlled | |
| | |
|
Cloud Peak Energy's 2Q15 Earnings Confirm Its Strong Position (Continued from Prior Part) Capital structure remains solid
Low leverage is what separates Cloud Peak Energy (CLD) from larger peers (KOL), including Peabody Energy (BTU), Alpha Natural Resources (ANRZ), and Arch Coal (ACI). As of June 30, 2015, the company had debt of $498 million—less than total available liquidity of over $500 million. $298 million of the debt is maturing in 2019, and the remaining portion will mature in 2024. The debt-to-equity ratio, a measure of solvency, remained healthy, below 0.5x.
So leverage isn’t a major concern for the company—unlike its peers, which are struggling to balance their debt levels and liquidity. Peabody Energy’s (BTU) debt increased by about $350 million during the quarter to reach $6.3 billion. Another highly leveraged coal producer, ANRZ, filed for bankruptcy on August 3, 2015. Arch Coal’s debt remained stable at $5.1 billion as of June 30, 2015, but its liquidity fell as the company continued to burn cash.
Liquidity falls
Cloud Peak Energy’s liquidity position declined during the quarter, as the company made a $69 million coal lease payment. The company had cash and cash equivalents of $95.5 million as of June 30, 2015—down from $168.7 million at the end of 2014. Plus, the company has access to a revolving credit facility of $500 million, which it left completely unused as of June 30, 2015. Even in the current difficult environment, the company is generating cash, adding to its liquidity. With no coal lease payments due hereafter, its operations may continue to add to its available liquidity.
Continue to Next Part Browse this series on Market Realist:
|
|
|
Arch Coal Inc
|
|
PRODUCER |
CODE : ACI |
ISIN : US0393801008 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Arch Coal is a coal producing company based in United states of america. Arch Coal holds various exploration projects in USA. Its main assets in production are WEST ELK, BLACK THUNDER and JACOB'S RANCH in USA and its main asset in development is SPRUCE N° 1 in USA. Arch Coal is listed in Germany and in United States of America. Its market capitalisation is US$ 366 000 as of today (€ 317 981). Its stock quote reached its highest recent level on June 27, 2003 at US$ 99.96, and its lowest recent point on October 04, 2018 at US$ 0.01. Arch Coal has 36 600 000 shares outstanding. |