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

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 →

Westmoreland Coal reports more losses

S&P Global Market Intelligence ($): Westmoreland Coal Co. reported a net loss of $191 million, or $9.91 per share, in the second quarter and cautioned investors that its master limited partnership does not have funds to repay a term loan that matures at the end of this year. Westmoreland Resource Partners’ filings for the fourth […]

August 7, 2018 Read More →

Naughton Closure Likely To Undercut Demand At Westmoreland’s Kemmerer Mine

Casper Star Tribune: Fossil fuel critics are questioning a Wyoming plan to spend up to $22.5 million in public funds to expand a coal mine even as its owner appears headed for bankruptcy and a key customer prepares to curtail consumption. State lawmakers earlier this year approved a measure that earmarked $15 million to relocate […]

May 14, 2018 Read More →

Delisting Will Move Westmoreland Coal Step Closer to Bankruptcy, Analysts Say

Bloomberg ($): Ailing Westmoreland Coal Co., one of the nation’s biggest coal producers, will be delisted from the Nasdaq Stock Market April 25. That step will spook investors and nudge Westmoreland a step closer to bankruptcy, analysts said. If that happens, environmentalists fear there won’t be enough money left to pay for cleaning up the […]

April 24, 2018 Read More →

Clock Is Ticking on Westmoreland Coal

Billings Gazette: Westmoreland Coal Co. stock fell to 26 cents a share Tuesday after the company with three Montana mines indicated it would consider bankruptcy. The Colorado company, which feeds the Colstrip power plant from the Rosebud Mine, and whose Absaloka Mine has been a major source of income for the Crow Tribe, revealed in […]

April 4, 2018 Read More →