Global Hunter Securities Starts Cloud Peak Energy (CLD) at Neutral; Pure-play PRB Coal Company

May 31, 2012 8:41 AM EDT
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Price: $5.23 --0%

Rating Summary:
    7 Buy, 12 Hold, 4 Sell

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    Up: 10 | Down: 16 | New: 50
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Global Hunter Securities initiates coverage on Cloud Peak Energy (NYSE: CLD) with a Neutral. PT $15.00.

Analyst, Wayne Atwell, said, "CPE is the fourth largest US coal miner and the only pure-play PRB coal company, specializing in the production of low sulfur sub-bituminous coal for sale to the utilities. The company owns and operates three surface coal mines in the PRB and sold 95.6 million tons of coal last year with 4.9% of its shipments exported. Its Spring Creek Mine is the most northern coal mine in the PRB and the closest to West Coast ports which accesses the export market. Cloud Peak won two Federal Coal Lease competitions last year, which increased its coal resources 40% to 1.37 billion tons. Its mine life is only 12-13 years and we believe it will add to its reserves. Additional coal resources contiguous to its Cordero Rojo property are likely to be offered for lease over the next 12 months and we expect Cloud Peak to bid for this property. The company is essentially sold out for 2012 with commitments for the delivery of 90.5 million tons priced at $13.41/ton and 3.8 million tons committed at variable pricing. It has 61.7 million tons committed for 2013 priced at $14.18/ton and 13.1 million tons committed at variable pricing."

For an analyst ratings summary and ratings history on Cloud Peak Energy click here. For more ratings news on Cloud Peak Energy click here.

Shares of Cloud Peak Energy closed at $15.72 yesterday.

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