Alpha Natural Resources, Inc. (ANR) Posts Surprise Q1 Profit; Guides FY14

Alpha Natural Resources, Inc. (NYSE: ANR) reported Q1 EPS of $0.07, $0.65 better than the analyst estimate of ($0.58). Revenue for the quarter came in at $1.11 billion versus the consensus estimate of $1.08 billion.

2014 Outlook

We are adjusting our 2014 shipments guidance for Eastern metallurgical and Eastern steam coals primarily in response to weak pricing for low-quality metallurgical coals, which are currently selling below thermal prices. We now expect to ship between 78 and 88 million tons, including 15 to 18 million tons of Eastern metallurgical coal, 26 to 30 million tons of Eastern steam coal, and 37 to 40 million tons of Western steam coal out of the PRB. As of April 16, 2014, 86 percent of the midpoint of anticipated 2014 metallurgical coal shipments was committed and priced at an average expected per ton realization of $88.90. Based on the midpoint of guidance, 86 percent of anticipated 2014 Eastern steam coal shipments were committed and priced at an average expected per ton realization of $59.06; and 100 percent of the midpoint of anticipated 2014 PRB shipments was committed and priced at an average expected per ton realization of $12.04. Alpha's 2014 guidance for its Eastern adjusted cost of coal sales per ton is now $64.00 to $69.00, while Western cost of coal sales per ton is unchanged at $9.50 to $10.50 per ton. Guidance for capital expenditures is reduced to $225 million to $275 million. SG&A guidance, which excludes merger related expenses, remains $110 million to $140 million. The company increased depletion, depreciation and amortization to a range of $700 million to $800 million. Interest expense guidance remains at $240 million to $255 million of which approximately $200 million to $210 million is cash interest.

For earnings history and earnings-related data on Alpha Natural Resources, Inc. (ANR) click here.

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