Contura Energy

Contura Energy is a Tennessee-based company with affiliate mining operations across multiple major coal basins. With customers across the globe in 16 countries, high-quality reserves, and significant port capacity, Contura Energy reliably supplies both metallurgical coal to the steel industry and thermal coal to generate power.

The company began operation as Contura Energy, Inc. on July 26, 2016 through the purchase of certain core coal assets by a consortium of lenders as a part of Alpha Natural Resources’ Chapter 11 Bankruptcy restructuring.

At a glance.

November 2016 investor presentation

February 2017 investor presentation

February 2017 - Contura Announces Marketing of Term Loan Facility and preliminary Q4 results

March 2017 - Contura Increases Export Capacity Through Strategic DTA Ownership Transaction - Upon closing, Contura will hold a 65% majority ownership in the facility. Arch Coal will hold the remaining 35%. Arch purchased the additional capacity for approximately $7.2 million through an auction process held by existing owner Peabody Energy. Contura's estimated cost for buying 24% of DTA: 13.3 $ million [auction started at $10 million and finished at $ 20 million]. DTA valued at auction roughly $ 53 million - Contura's 65% share: $ 34.5 million.

March 2017 Contura Announces Successful Refinancing Through $400 Million Term Loan Credit Facility - Through this refinancing, Contura extended its debt maturity profile by two and a half years, to 2024. The interest rate for the new term loan facility is LIBOR plus five percent, with a one percent LIBOR floor. Contura will redeem all of its outstanding 10.00% Senior Secured First Lien Notes due 2021.

Contura Announces Filing of S-1 Registration Statement - Contura intends to apply to list its common stock on the New York Stock Exchange (NYSE) under the symbol “CTRA.”

  • Coal revenue of $509 million, including $149 million from CAPP and $167 million from Trading and Logistics
  • Adjusted EBITDA range between $120 million and $135 million
  • Unrestricted cash balance of $241 million at the end of March

Contura Energy, Inc. today announced that the final, per-share amount of the previously announced special cash dividend will be $8.997 per eligible share.

Average weekly coal commodity spot prices

Australian Coking Coal (Platts)

Related resources:

September 2016 - Light at the end of the tunnel?

There are also some big hopes for Contura Energy, the “phoenix rising from the ashes of Alpha Natural Resources” – the only one of the big three so far to leave Chapter 11 protection. “While it may be debatable how the [bankruptcy] deal will shake out for what’s left of Alpha, its employees and the states where it operates, I think it’s easy to imagine [that] Contura could find some success now that it can focus on Alpha’s premier assets,” said Kuykendall.

Alpha’s Chapter 11 deal saw Contura – a new company owned by group of Alpha’s first lien lenders – buy the best of Alpha’s operations and reserves, including the Cumberland mine complex in Northern Appalachia, Alpha’s PRB operations and three Central Appalachian mining complexes. Contura also purchased Alpha’s interest in the Dominion Terminal Associates coal export terminal in eastern Virginia – and got Alpha’s CEO, Kevin Crutchfield.

October 2016 - Seeking Alpha - Contura Energy: An 'Alpha' Opportunity In The Coal Sector With 100% Upside

October 2016 - Powder River Basin coal mines boost production across board in Q3'16

November 2016 - Seeking Alpha - Contura Energy - Update Following Review Of New Presentation

January 2017 analysis: "CNTE is cheap, both on an absolute and relative basis. As a post-bankruptcy reorg, it has a lot of steps ahead of it in gaining a stronger public profile and more steady investor base. While coal miners are still not loved after this rally, some coverage from the sell-side and an exchange listing seem like they would go a long way here". (Corsair Value)

January 2017 - Seeking Alpha - Contura: Update Following Q3 Results And Management Conference Call

January 2017 - FBR Capital Starts Contura Energy (CNTE) at Outperform, $100 PT

January 2017 - Barron's Coal Catalysts Ready to Spark

The first half of 2017 is gearing up to be very eventful in the space and a few companies could go public.

We expect Peabody Energy, Contura Energy and Warrior Met Coal to come public and are watching others who may follow suit.

February 2017 - Coal Miners Begin Selling Shares to the Public Again After Period of Tumult

Contura Energy Inc. and Coronado Coal LLC have also interviewed bankers for potential share listings, say people familiar with the matter.

February 2017 - “It’s a coal renaissance. All these guys were dying on the vine”

February 2017: Moody's rates Contura's proposed secured term loan (P)B2, outlook stable

February 2017: Contura - A Gem Amid A Sea Of Coal

March 2017: Contura Energy Inc (CNTE) Now Covered by Analysts at Clarkson Capital - Buy rating - PT: $110 - link to analyst headline - 28% FCF Yield and <3x EBITDA

March 2017: Sabrepoint Capital Sees Value In An Under The Radar Stock, Contura Energy - HT GianniMello

March 2017: FBR & Co analyst L. Pipes forecasts Q1 2018 earnings of $1.40 per share, Q2 2018 earnings at $1.32 EPS, Q3 2018 earnings at $1.37 EPS and Q4 2018 earnings at $1.37 EPS.

March 2017: On the eve of Peabody Energy’s emergence from Chapter 11 in early April, we are updating our estimates and outlook for the domestic thermal coal market….We believe that Peabody’s emergence could add new momentum to the sector. [FBR’s Lucas Pipes and Ted Beachley]

March 2017: FY2016 EPS Estimates for Contura Energy Inc (CNTE) Cut by FBR & Co - FBR & Co analyst L. Pipes now expects that the firm will post earnings of ($4.75) per share for the year, down from their prior estimate of ($4.23). FBR & Co also issued estimates for Contura Energy’s Q4 2016 earnings at $0.21 EPS, Q1 2017 earnings at $4.10 EPS, Q2 2017 earnings at $1.89 EPS, Q3 2017 earnings at $2.08 EPS, Q4 2017 earnings at $1.87 EPS, FY2017 earnings at $9.93 EPS, FY2018 earnings at $6.26 EPS and FY2019 earnings at $5.69 EPS.

April 2017: Cyclone Debbie sparks surge in price of coking coal - Analysts say the price paid for coking coal — which is heated to create coke, that is then used to melt iron in the steelmaking process — could surge further if traders panic about availability of supplies.

UBS, which says it will be tricky to find alternative ways to transport coal from mining operations in remote parts of Queensland, estimates the disruptions could add $US100 a tonne, or even more, to the value of the fuel.

“With a significant amount of the world’s premium hard coking coal now marooned on-site (at mines), prices are likely to continue to push higher,” ANZ also said in a note today.

April 2017: Contura Energy Is Too Cheap To Ignore

July 2017: Dominion Terminal Associates, based in Newport News, exported 1 million st in June, down 0.3% from the prior month but up 62.4% from last year. For the year, exports at the terminal -- which is owned by Arch Coal and Contura Energy -- total 5.38 million st, up 34.8% from last year.

July 2017: Coal Outlook Is Best ’In Years’ - We believe that recent strength in coking-coal prices demonstrates the fundamental return to supply/demand balance achieved (painfully) over the last several quarters.

We believe prices in the $130-$150 per-metric-ton range are very supportive of coking-coal producers’ equity valuations.