Alpha Natural Resources, Inc., together with its subsidiaries, is engaged in extracting, processing, and marketing steam and metallurgical coal from surface and deep mines. The company sells its products to electric utilities, steel and coke producers, and industrial customers. The company, through its subsidiaries, is also involved in marketing coal produced by others to supplement its own production and, through blending, provides its customers with coal qualities beyond those available from its own production. As of December 31, 2013, the company’s coal operations consisted of 57 deep and 24 surface mines located in Virginia, West Virginia, Pennsylvania, Kentucky and Wyoming. As of December 31, 2013, the company owned or leased approximately 4.3 billion tons of proven and probable coal reserves, of which approximately 1.4 billion tons are classified as metallurgical coal reserves. Segments The company has operations in two segments, Eastern Coal Operations and Western Coal Operations. Eastern Coal Operations The Eastern Coal Operations consists of the mines in northern and central Appalachia and its coal brokerage activities. The company’s operations in Northern Appalachia (NAPP) consist of Cumberland and Emerald mining complexes, as well as five underground mines, nine surface mines and two additional preparation plants. The company controls approximately 902.0 million tons of reserves through operations in NAPP. Approximately 148.9 million tons are assigned to active mines and 753.1 million tons are unassigned. At its Cumberland and Emerald mining complexes, coal is mined primarily by using longwall mining systems supported by continuous miners. The company’s operations in Central Appalachia (CAPP) consist of 50 underground mines, 13 surface mines and 21 preparation plants, a portion of which are operated by independent contractors. Its operations in CAPP collectively shipped 36.6 million tons in 2013. The company controls approximately 2,647.7 million tons of coal reserves through operations in CAPP. The company has mines that sell high Btu, low, medium and high sulfur steam coal primarily to eastern utilities and metallurgical coal to steel companies. The company transports coal produced at certain of its mines by truck and belt to the following preparation plants: Delbarton, Elk Run, Goals, Inman, Kepler, Kingston, Knox Creek, Mammoth, Marfork, Rockspring, Sidney, and Zigmond. In addition, the company transports coal by truck and belt to Homer III loadout. The company transports coal produced at certain of its mines by truck to the following preparation plants: Cave Branch, Erbacon, Green Valley, Litwar, McClure, Pigeon Creek, Power Mountain, Roxanna, and Toms Creek. In addition, it transports coal by truck to Holden 29 and Pax loadouts. Western Coal Operations Western Coal Operations consists of two Powder River Basin mines in Wyoming. Western Coal Operations in the Powder River Basin consist of Belle Ayr and Eagle Butte surface mining operations, which collectively shipped 38.2 million tons in 2013. The company controls approximately 737.1 million tons of coal reserves in the Powder River Basin and all of the coal reserves are assigned to active mines. Belle Ayr consists of one mine that produces sub-bituminous, low sulfur steam coal for sale primarily to utility companies. Belle Ayr shipped 18.3 million tons of coal in 2013. Eagle Butte consists of one mine that produces sub-bituminous, low sulfur steam coal for sale primarily to utility companies. Eagle Butte shipped 19.9 million tons of coal in 2013. All Other The company’s All Other category includes an idled underground mine in Illinois; Dry Systems Technologies; sale of natural gas; equipment sales and repair operations; terminal services; and the leasing of mineral rights. Maxxim Rebuild and Dry Systems Technologies: The company’s subsidiary Maxxim Rebuild Co., LLC, is a mining equipment company with facilities in Kentucky and Virginia. This business consists of repairing and reselling equipment and parts used in surface mining and in supporting preparation plant operations. The company’s subsidiary, Dry Systems Technologies manufactures patented particulate scrubbers and filters for underground diesel engine applications, and rebuilds underground mining equipment for external customers and its subsidiaries. Natural Gas: The company also has interests in significant acreage in the Marcellus Shale natural gas field of Southwestern Pennsylvania. Dominion Terminal Associates (DTA): Through a subsidiary Alpha Terminal Company, LLC, the company holds a 41% interest in DTA, a 20 million-ton annual capacity coal export terminal located in Newport News, Virginia. T The terminal is held in a partnership with subsidiaries of two other companies, Arch Coal, Inc. and Peabody Energy Corp. Coal Handling Joint Venture: The company has acquired a 50% interest in a joint venture that owns and operates third-party end-user coal handling facilities. Coal Brokerage: The company’s coal brokerage group purchases and sells third party coal and serves as an agent of coal subsidiaries. Miscellaneous: The company engages in the sale of certain non-strategic assets such as timber, gas and oil rights, as well as the leasing and sale of non-strategic surface properties and reserves. The company also provides coal and environmental analysis services. Business Strategy The company’s objective is to increase shareholder value and focus on free cash flow generation by creating a durable, sustainable steam coal portfolio, supporting and augmenting its metallurgical coal franchise and addressing non-strategic operations. Its main strategies to achieve this objective are as follows: capitalizing on industry dynamics through a balanced approach to selling coal; selectively expanding production and reserves; continuing to provide a mix of coal types and qualities to satisfy customers’ needs; and continuing to focus on excellence in safety and environmental stewardship. Customers The company sold coal to approximately 170 different customers in 2013. History Alpha Natural Resources, Inc. was founded in 2002.
alpha natural resources inc
One Alpha Place
PO Box 16429
Bristol, VA 24209
|Arch Coal Inc||$2.41 USD||+0.09|
|Cliffs Natural Resources Inc||$9.15 USD||-0.05|
|Cloud Peak Energy Inc||$12.25 USD||+0.07|
|Comstock Resources Inc||$10.49 USD||-0.54|
|Westmoreland Coal Co||$39.96 USD||+0.96|
|View Industry Companies|
|Price/Cash Flow||NM||Not Meaningful|
Sponsored Financial Commentaries
To contact ALPHA NATURAL RESOURCES INC, please visit www.alphanr.com. Company data is provided by Capital IQ. Please use this form to report any data issues.