Cloud Peak Energy Provides Update on Strategic Alternatives Review
January 29 2019 - 4:15PM
Business Wire
Cloud Peak Energy Inc. (NYSE: CLD) (the “Company”), the only
pure-play Powder River Basin (“PRB”) coal company, today announced
that it has retained Centerview Partners LLC as its investment
banker, Vinson & Elkins LLP as its legal advisor, and FTI
Consulting, Inc. as its financial advisor to assist the Company and
its Board of Directors in the Company’s review of capital structure
and restructuring alternatives. During this review process, the
Company’s mines will continue normal operations, safely and
efficiently meeting our customer commitments.
As disclosed on November 13, 2018, the Company’s Board, working
together with its management team and legal and financial advisors,
commenced a review of strategic alternatives, including a potential
sale of the Company, and previously engaged J.P. Morgan Securities
LLC as its financial advisor and Allen & Overy LLP as legal
counsel in connection with exploring sale opportunities.
The Company’s Board has not set a specific timetable for this
review 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 review process, the Company’s Board
approved an updated executive retention program for the Company’s
senior management team, which replaces the previously announced
November 2018 retention program. Additional information on the
retention program can be found 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 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 of Directors’ strategic evaluation process
and risks and uncertainties associated with any potential strategic
transaction, including any potential restructuring, and risks and
uncertainties regarding our liquidity. 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 Relations