RICHMOND, Va., June 11 /PRNewswire-FirstCall/ -- Massey Energy Company today announced that it has completed its strategic review process that was announced in October 2006. The Massey Board of Directors, in conjunction with the financial advisory firm of Goldman, Sachs & Co. and Massey's senior management, has diligently explored and evaluated a comprehensive range of strategic alternatives to enhance shareholder value. Based on this review, the Board of Directors concluded that at this time remaining an independent public company and continuing to execute the Company's current strategic operating plan is in the best interest of Massey and its shareholders. The Board of Directors will continue to focus on opportunities for the Company to achieve its primary goal of driving shareholder value.
"Massey Energy has a strong strategic position in Central Appalachia as the largest producer and holder of coal reserves in the region. Our cost-advantaged reserves and infrastructure and our synergies of scale will allow us to further grow shareholder value," reported Don L. Blankenship, Massey's Chairman and CEO. "We will follow the same strategic principles we have in the past. We will focus on expanding our margins while continuing to consolidate the Central Appalachian region via opportunistic acquisitions. This strategy will serve to put Massey and its shareholders in an even greater advantaged position going forward."
Massey Energy Company, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the fourth largest coal producer by revenue in the United States.
FORWARD-LOOKING STATEMENTS: Certain statements in this press release are forward-looking as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on facts and conditions as they exist at the time such statements are made as well as predictions as to future facts and conditions the accurate prediction of which may be difficult and involve the assessment of events beyond the Company's control. Caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, the Company's actual results may differ materially from its expectations or projections. Factors potentially contributing to such differences include, among others: market demand for coal, electricity and steel which could adversely affect the Company's operating results and cash flows; future economic or capital market conditions; deregulation of the electric utility industry; competition in coal markets; inherent risks of coal mining beyond the Company's control, including weather and geologic conditions; the Company's ability to expand mining capacity; the Company's production capabilities; the Company's plan and objectives for future operations and expansion or consolidation; failure to receive anticipated new contracts; customer cancellations of, or breaches to, existing contracts; customer delays or defaults in making payments; the Company's ability to manage production costs; the Company's ability to timely obtain necessary supplies and equipment; the Company's ability to attract, train and retain a skilled workforce; fluctuations in the demand for, price and availability of, coal due to labor and transportation costs and disruptions, governmental policies and regulatory actions, legal and administrative proceedings, settlements, investigations and claims, foreign currency changes and other factors; and greater than expected environmental and safety regulation, costs and liabilities. The forward-looking statements are also based on various operating assumptions regarding, among other things, overhead costs and employment levels that may not be realized. While most risks affect only future costs or revenues anticipated by the Company, some risks might relate to accruals that have already been reflected in earnings. The Company's failure to receive payments of accrued amounts could result in a charge against future earnings.
