IEEFA Research

IEEFA Update: How Will Westmoreland Coal’s Deepening Spiral End?

IEEFA Update: How Will Westmoreland Coal’s Deepening Spiral End?

Disappearing Market Capitalization and Unsustainable Debt

We’ve just published a research brief of interest to any person, community, business, or investor with ties to Westmoreland Coal Co. The brief—“Westmoreland Coal Is in Trouble”—lays out how the company, which produces coal for electricity generation, is hobbled by debt, is losing customers, has suffered a catastrophic drop in stock price, and appears to […]

February 16, 2018 Read More →

More News and Commentary

U.S. coal companies continue to lose market value

S&P Global Market Intelligence ($): The 12 largest publicly traded U.S. coal producers lost 16.6% of their total market value since September 2018, with just one seeing an increase during the period. The companies’ total market capitalization was $12.68 billion on Sept. 27, 2018, and $10.58 billion as of Jan. 8, 2019, according to data […]

January 11, 2019 Read More →

Reclamation costs a key factor in Westmoreland’s restructuring efforts, experts say

S&P Global Market Intelligence ($): Analysts said they were not surprised by Westmoreland Coal Co.’s plan to sell one Ohio mine and pay a holding company to take several others because the operations have high reclamation costs and shrinking profitability. The coal producer, which sought Chapter 11 bankruptcy protection in October 2018, presented the bankruptcy […]

January 7, 2019 Read More →

Union, trustee question Westmoreland bankruptcy plan

S&P Global Market Intelligence ($): A bankruptcy court should deny Westmoreland Coal Co.’s request to employ management consulting firm McKinsey Recovery & Transformation Services U.S. LLC during its Chapter 11 proceedings because McKinsey “patently lacks disinterestedness,” a U.S. trustee recommended. Henry Hobbs Jr., the acting U.S. trustee for the southern and western districts of Texas, […]

December 18, 2018 Read More →

Westmoreland’s Rosebud Mine heads to the auction block

Billings Gazette: The lone source of coal for the Colstrip power plant has been scheduled for bankruptcy auction in late January. Rosebud Mine will be auctioned Jan. 22, if necessary, to help pay the debts of Westmoreland Coal Co., which owns the mine. The United States Bankruptcy Court Southern District of Texas on Thursday set […]

November 19, 2018 Read More →

Powder River Basin coal production continues falling

S&P Global Market Intelligence ($): Coal mines in the Powder River Basin bounced back from the rain-soaked second quarter, increasing production 18.9% in the third quarter, but still saw year-over-year declines. Ten of the top 16 mines reported production decreases from 2017, lowering the region’s output by 5% to 86.6 million tons, according to data […]

November 13, 2018 Read More →

Westmoreland bankruptcy bonuses good news for company executives

Wall Street Journal ($): Westmoreland Coal Co. paid eight of its current and former executives more than $10.2 million in salary, bonuses and severance in the 12 months before the coal-mining company filed for bankruptcy protection in October. Executives at Westmoreland collected additional compensation in the form of benefits and expense reimbursements over the same […]

November 13, 2018 Read More →

Power plant closures are turning Westmoreland’s minemouth assets into liabilities

S&P Global Market Intelligence ($): Two lawyers who specialize in Chapter 11 restructuring see differing paths for Westmoreland Coal Co.: shedding debt and coming back as a leaner company with lenders in control or breaking up by selling most of its assets. Pending bankruptcy court approval, the company plans to sell its core assets, which […]

October 24, 2018 Read More →

Westmoreland bankruptcy underscores financial stress across the coal sector

Bloomberg: Westmoreland Coal Co.’s Oct. 9 bankruptcy filing is the latest in a string of coal company stumbles bucking the Trump administration’s narrative of a fossil fuel revival. With the Chapter 11 filing of Colorado Springs, Colo.-based Westmoreland, four of the nation’s top 10 biggest coal providers have now sought bankruptcy protection within the last […]

October 11, 2018 Read More →

Westmoreland Coal files for bankruptcy

S&P Global Market Intelligence ($): Westmoreland Coal Co. filed for Chapter 11 bankruptcy protection on Oct. 9 after years of attempting to deliver its balance sheet. Westmoreland entered into a restructuring support agreement with an ad hoc group of lenders that hold about 76.1% of the company’s term loan, 57.9% of its senior secured notes […]

October 9, 2018 Read More →

S&P: More coal production cuts coming as plant retirements continue

S&P Global Market Intelligence ($): Coal producers delivered 51.4 million tons of coal, 6.6% of the coal mined in the U.S. in 2017, to power plants scheduled to retire in the next 10 years as a secular decline in domestic demand continues to erode the size of the U.S. coal market. While U.S. producers have […]

September 7, 2018 Read More →