Foresight Energy LP (FELP) Reports Q1 Loss of $0.09, Revenues Beat; Provides FY19 Operating Guidance

Foresight Energy LP (NYSE: FELP) reported Q1 EPS of ($0.09), versus ($0.12) reported last year. Revenue for the quarter came in at $267 million versus the consensus estimate of $253.3 million.

• Coal sales of $267 million on sales volumes of 5.7 million tons.
• Adjusted EBITDA of $65.5 million.
• Cash flows from operations of $49.2 million.
• Net loss of $16.8 million, or ($0.09) per common unit and ($0.15) per subordinated unit.

“Despite the difficult flooding conditions experienced on the river and at our ports on the Gulf, we exported nearly 2.2 million tons during the quarter and, given our contracted position, we maintained sales realizations even though we continue to see a decline in API2 pricing,” remarked Mr. Robert D. Moore, Chairman, President, and Chief Executive Officer. “These factors, combined with our continued industry-leading cost structure, allowed us to maintain comparable margins quarter-over-quarter.”

Mr. Moore further commented, “Regarding the decision to suspend the quarterly cash distribution at this time, the Board considered the current export price environment and challenging logistical conditions, the desire to maintain financial strength and flexibility, and other factors to conclude that our cash resources would be best directed towards other uses including, among other things, liquidity improvement and debt reduction.”

Guidance for 2019

Based on Foresight’s contracted position, recent performance, and its current outlook on pricing and the coal markets in general, the Partnership is updating the following guidance for 2019:

• Sales Volumes – Based on current committed position and expectations for 2019, Foresight is projecting sales volumes to be between 20.0 and 22.0 million tons, with over 6.0 million tons expected to be sold into the international market.
• Adjusted EBITDA – Based on the projected sales volumes and operating cost structure, Foresight currently expects to generate Adjusted EBITDA in a range of $260 to $300 million.
• Capital Expenditures – Total 2019 capital expenditures are estimated to be between $70 and $85 million.

For earnings history and earnings-related data on Foresight Energy LP (FELP) click here.

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