Cloud Peak Energy Announces Strategic Alternatives Review
November 13 2018 - 4:15PM
Business Wire
Cloud Peak Energy Inc. (NYSE:CLD), one of the largest U.S. coal
producers and the only pure-play Powder River Basin (“PRB”) coal
company, today announced that its Board of Directors, working
together with the Company’s management team and legal and financial
advisors, has commenced a review of strategic alternatives,
including a potential sale of the Company. The Company has engaged
J.P. Morgan Securities LLC as its financial advisor and Allen &
Overy LLP as legal counsel in connection with the strategic
alternatives review.
Colin Marshall, President and Chief Executive Officer of Cloud
Peak Energy, commented, “While our Board is undertaking this
strategic review, Cloud Peak Energy remains focused on executing
against our operational and financial priorities. We will continue
to adjust our business to the structural changes in the U.S. coal
industry and to position our company for future growth
opportunities.”
The Company's Board of Directors has not made any decisions
related to any transactions at this time and there can be no
assurance that the exploration of strategic alternatives will
result in any transaction. The Board has not set a specific
timetable for its process and the Company does not intend to
provide updates unless or until it determines that further
disclosure is appropriate or necessary. In connection with this
strategic review process, the Compensation Committee of the Board
approved an executive retention program through July 2020 for the
senior management team, as further described in the Company’s Form
8-K filed today.
About Cloud Peak Energy®
Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming
and is one of the largest U.S. coal producers and the only
pure-play Powder River Basin coal company. As one of the safest
coal producers in the nation, Cloud Peak Energy mines low sulfur,
subbituminous coal and provides logistics supply services. The
Company owns and operates three surface coal mines in the PRB, the
lowest cost major coal producing region in the nation. The Antelope
and Cordero Rojo mines are located in Wyoming and the Spring Creek
Mine is located in Montana. In 2017, Cloud Peak Energy sold
approximately 58 million tons from its three mines to customers
located throughout the U.S. and around the world. Cloud Peak Energy
also owns rights to substantial undeveloped coal and complementary
surface assets in the Northern PRB, further building the Company’s
long-term position to serve Asian export and domestic customers.
With approximately 1,300 total employees, the Company is widely
recognized for its exemplary performance in its safety and
environmental programs. Cloud Peak Energy is a sustainable fuel
supplier for approximately two percent of the nation’s
electricity.
Cautionary Note Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the
meaning of the safe harbor provisions of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements are not statements of
historical facts and often contain words such as “may,” “will,”
“expect,” “believe,” “anticipate,” “plan,” “estimate,” “seek,”
“could,” “should,” “intend,” “potential,” or words of similar
meaning. Forward-looking statements are based on management’s
current expectations, beliefs, assumptions and estimates regarding
our company, industry, economic conditions, government regulations
and energy policies and other factors. Forward-looking statements
may include, for example, statements regarding the Board of
Directors’ strategic evaluation process, our operational and
financial priorities, our responses to the structural changes in
the U.S. coal industry, our efforts to position our company for
future growth opportunities, and other statements regarding our
plans, strategies, prospects and expectations concerning our
business, operating results, financial condition, liquidity and
other matters that do not relate strictly to historical facts.
These statements are subject to significant risks, uncertainties,
and assumptions that are difficult to predict and could cause
actual results to differ materially and adversely from those
expressed or implied in the forward-looking statements, including
risks and uncertainties regarding the potential timing, benefits
and outcome of the Board’s strategic evaluation process and risks
and uncertainties associated with any potential strategic
transaction. Forward-looking statements are also subject to the
risk factors and cautionary language described from time to time in
the reports and registration statements we file with the Securities
and Exchange Commission, including those in Item 1A - Risk Factors
in our most recent Form 10-K and any updates thereto in our Forms
10-Q and current reports on Form 8-K. Additional factors, events,
or uncertainties that may emerge from time to time, or those that
we currently deem to be immaterial, could cause our actual results
to differ, and it is not possible for us to predict all of them. We
make forward-looking statements based on currently available
information, and we assume no obligation to, and expressly disclaim
any obligation to, update or revise publicly any forward-looking
statements made in this release, whether as a result of new
information, future events or otherwise, except as required by
law.
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Cloud Peak Energy Inc.John Stranak, 720-566-2932Investor
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