RICHMOND, Va., Sept. 3 /PRNewswire-FirstCall/ -- Massey Energy Company today provided additional detail on its expectations for the third quarter and full year 2008 in advance of Don Blankenship's presentation at the Lehman Brothers CEO Power/Energy conference on September 4, 2008.
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"Global demand for coal remains very strong and prices have remained at very high levels," said Blankenship, Massey's Chairman and CEO. "With continuing progress in our expansion efforts and prices in excess of our original plans, Massey is on track for another record year."
"As planned, our expansion work has intensified in the third quarter," Blankenship continued. "We are expanding or adding new mines at our Green Valley, Mammoth, Stirrat, Martin County, Edwight, Knox Creek, Progress and Nicholas Energy resource groups. As we said in our conference call with shareholders on August 1, these activities will likely make the third quarter the most challenging of the year. In addition, third quarter results will include a pre-tax charge of approximately $15 million associated with the tender offer of the Company's 6.625% senior notes in conjunction with our recent financing transactions. We expect fourth quarter results to be stronger, however, driven by increased coal shipments as well as more favorable timing of metallurgical coal shipments and new higher priced contracts phasing in, which will result in a higher overall average price per ton."
For the third quarter of 2008, Massey stated that it expects produced tons sold to be in the range of 10.3 to 10.7 million at an average price of $64.00 to $66.00 per ton.
Massey further stated that it still expects full-year 2008 results, excluding the litigation charge recorded in the second quarter, to be within the ranges of full-year guidance provided previously but with produced tons sold and average price per ton trending toward the lower end of the respective ranges.
Mr. Blankenship's presentation at the Lehman conference will be webcast and can be accessed at http://cc.talkpoint.com/LEHM002/090208a_jw/default.asp?entity=massey or through the Investor Relations page on the Company's website at http://www.masseyenergyco.com/.
Company Description
Massey Energy Company, headquartered in Richmond, Virginia, with operations in West Virginia, Kentucky and Virginia, is the fourth largest coal company in the United States based on produced coal revenue and is included in the S&P 500 index.
FORWARD-LOOKING STATEMENTS: Certain statements in this press release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. Any forward-looking statements are also subject to a number of assumptions regarding, among other things, future economic, competitive and market conditions. These assumptions 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. The Company disclaims any intent or obligation to update these forward-looking statements unless required by securities law, and the Company cautions the reader to not rely on them unduly. Caution must be exercised in relying on forward-looking statements including disclosures that use words such as "believe," "anticipate," "expect," "estimate," "intend," "may," "plan," "project," "will," and similar words or statements that are subject to risks, trends and uncertainties that could cause the Company's actual results to differ materially from the expectations expressed or implied in such forward-looking statements. Factors potentially contributing to such differences include, among others: worldwide market demand for coal, electricity and steel; the successful completion of acquisition, disposition or financing transactions; future economic or capital market conditions; foreign currency fluctuations; governmental policies, laws, regulatory actions and court decisions affecting the coal industry or our customers' coal usage; competition among coal producers in the United States and internationally; 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 to meet market expectations and customer requirements; the Company's strategic plans and objectives for future operations and expansion or consolidation; the Company's assumptions and projections concerning economically recoverable coal reserve estimates; failure to receive anticipated new contracts; the Company's reliance upon and relationships with our customers and suppliers; the creditworthiness of the Company's customers and suppliers; adjustments made in price, volume or terms to existing coal supply agreements; the Company's ability to manage production costs, including labor costs; the Company's ability to timely obtain necessary supplies and equipment; the Company's ability to obtain and renew permits necessary for existing and planned operations; the cost and availability of surety bonds; the Company's ability to attract, train and retain a skilled workforce to meet replacement or expansion needs; the cost and availability of transportation for the Company's produced coal; legal and administrative proceedings, settlements, investigations and claims and the availability of insurance coverage related thereto; and environmental concerns related to coal mining and combustion.
Additional information concerning these and other factors can be found in press releases and Massey's public filings with the Securities and Exchange Commission, including Massey's Annual Report on Form 10-K for the year ended December 31, 2007, which was filed on February 29, 2008, and subsequently filed interim reports. Massey's filings are available either publicly, on the Investor Relations page of Massey's website, http://www.masseyenergyco.com/, or upon request from Massey's Investor Relations Department: (866) 814-6512 (toll free). For further information, please visit Massey's website at http://www.masseyenergyco.com/.
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