Cloud Peak Energy Inc. Announces Results for the First Quarter of 2013

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 results for the first quarter of 2013.

First Quarter 2013 Highlights

• 
  Adjusted EBITDA⁽¹⁾ of $48.3 million for the first quarter
  of 2013 compared with $75.7 million for the first quarter of 2012.
  
• 
  First quarter of 2013 net income of $15.4 million resulting in diluted
  EPS of $0.25 compared to net income of $26.6 million and diluted EPS
  of $0.44 for the first quarter of 2012.
  
• 
  Adjusted EPS⁽¹⁾ of $0.11 for the first quarter of 2013
  compared to $0.47 for the first quarter of 2012.
  
• 
  Cash and investments were $299.1 million and total available liquidity
  was $851 million as of March 31, 2013. We generated $37.3 million in
  cash from operations for the first quarter of 2013.
  
• 
  The company further strengthened its balance sheet liquidity by
  recently implementing an Accounts Receivable Securitization Program
  with capacity up to $75 million and a capital leasing program. At
  March 31, 2013, there were no drawings under either program. The
  programs add low cost flexible liquidity to the capital structure.
  
• 
  Shipments of 21.1 million tons from our three operated mines compared
  to 22.5 million tons for the first quarter of 2012. Asian exports were
  approximately 1.1 million tons in the first quarter of 2013 compared
  to 1.0 million tons in the first quarter of 2012. For the full year,
  Asian exports are still expected to be approximately 4.5 million tons.
  

'Coming into the year, we highlighted that shipments and earnings in the
first quarter would be under pressure from low market demand, slow first
quarter shipments and low pricing, and this has turned out to be the
case.? said Colin Marshall, President and Chief Executive Officer. 'We
focused on cost control, capital discipline, and ensuring our balance
sheet remains well placed. We believe that we are now starting to see
some signs of improvements in the markets, with the winter extending
into April, a significant increase in natural gas pricing, and
substantial drawdowns of PRB coal stockpiles. However, as we have
previously explained, the improvements are more likely to benefit our
2014 position, as we are largely sold out for 2013. In response we are
lowering our capital expenditures guidance and we also expect a lower
range for our 2013 Adjusted EBITDA.?

Health, Safety and Environment Record

During the first quarter of 2013, of our nearly 1,400 full-time mine
site employees, four suffered minor reportable injuries resulting in a
year-to-date MSHA All Injury Frequency Rate of 1.07, an increase over
the full year 2012 rate of 0.82. During the 72 MSHA inspector days in
the first quarter of 2013, we were issued seven substantial and
significant citations and total fines of $9,486 on four of the citations.

Consolidated Business Results

The following table summarizes certain consolidated results (in
millions, except per share amounts):

(1) Non-GAAP financial measure; please see definition and reconciliation
below in this release and the attached tables.

Total revenue declined 9.3% for the quarter due to 1.4 million fewer
tons sold from our owned and operated mines, a 1.7% decrease in realized
domestic prices and a 17% decline in logistics revenues due to lower
export pricing. Correspondingly, Adjusted EBITDA for the first quarter
of 2013 declined to $48.3 million, down from $75.7 million in the first
quarter of 2012.

Operating Segments

Owned and Operated Mines

Our Owned and Operated Mines segment comprises the results of mine site
sales from our three owned and operated mines primarily to our domestic
utility customers and also to our Logistics and Related Activities
segment.

(1) Non-GAAP financial measure; please see definition and reconciliation
below in this release and the attached tables.

The decrease in revenue from our Owned and Operated Mines segment was
primarily the result of 1.4 million fewer tons of coal sold in the three
months ended March 31, 2013 compared to 2012. This was due to a
combination of lower contracted tons, normal slow shipments from the
Spring Creek mine due to the freezing of the Great Lakes and damage to
one of the berths at the Westshore terminal. The lower realized price
per ton for the three months ended March 31, 2013, reflects the impact
of low PRB coal prices since 2012 on tons contracted last year and
indexed priced contracts and also a higher proportion of 8400 Btu coal
sold in the quarter.

The mines experienced a normal rise in strip ratios and haul distances
and the anticipated 10% increase in explosives costs. Cost control
measures during the quarter helped keep total costs at similar levels to
first quarter of 2012, but the impact of fixed costs spread over reduced
shipments was a significant factor increasing costs per ton this quarter.

Logistics and Related Activities

Our Logistics and Related Activities segment comprises the results of
our logistics and transportation services to our domestic and
international customers.

(1) Non-GAAP financial measure; please see definition and reconciliation
below in this release and the attached tables.

As anticipated, Logistics revenue and Adjusted EBITDA decreased due to
the lower international benchmark prices for seaborne traded thermal
coal which negatively affected the revenue and profitability of our
Asian exports. Despite the damage to the Westshore berth which reduced
shipments from December 7, 2012 until its repair on February 8, 2013, we
shipped 1.1 million tons to our Asian customers, up slightly over first
quarter 2012 shipments of 1.0 million tons. We are expecting full-year
exports of approximately 4.5 million tons now that the terminal is back
to normal operation. If Newcastle prices remain low we expect to realize
gains in future quarters from our international derivative positions. We
were able to reduce our costs of deliveries as we curtailed shipments
through the higher cost Ridley terminal and shipped solely through the
closer Westshore terminal in the first quarter of 2013.

Balance Sheet and Cash Flow

Cash flow from operations totaled $37.3 million for the first quarter of
2013 compared to $53.0 million for the first quarter of 2012. Capital
expenditures (excluding capitalized interest) were $13.0 million for the
first quarter of 2013 compared to $14.3 million for first quarter of
2012.

Unrestricted cash and investments as of March 31, 2013 were $299.1
million, up from $278.0 million at December 31, 2012, and total
available liquidity was $851 million. The company furthered strengthened
its balance sheet liquidity by recently implementing an Accounts
Receivable Securitization Program with capacity up to $75 million, and a
capital leasing program. At March 31, 2013, there were no drawings under
either program. The programs add low cost, flexible liquidity to the
capital structure.

Outlook

While the external environment has several positive trends, there is
typically a lag before this is reflected in improved PRB pricing.
Natural gas prices are essentially double from this time last year.
Season-to-date, heating degree days are up 14% compared to last year.
Electric generation is up over 3% from 2012 levels and stockpiles of PRB
coal are estimated at 83 million tons at the end of March 2013.
Historically, we have seen price support for PRB coal at stockpile
levels of around 80 million tons.

We continue to expect that revenues for our Owned and Operated Mines
segment will be relatively flat compared to 2012 as volumes and realized
prices are not expected to change significantly. Currently, we have
contracted 90 million tons to be delivered in 2013, of which 85 million
tons are under fixed-price contracts with a weighted-average mine site
price of $13.21 per ton. Assuming constant prices of $11.00 per ton for
8800 Btu quality coal and $9.50 per ton for 8400 Btu quality coal on our
indexed tons, the expected total realized price for 2013 would be
approximately $13.07 per ton. For 2014, we have currently contracted to
sell 62 million tons from our three company-operated mines. Of this
committed 2014 production, 49 million tons are under fixed-price
contracts with a weighted-average price of $14.07 per ton.

We continued our cautious approach to contracting in the current weak
marketplace. In the first quarter of 2013, prices were fixed on
approximately 3.3 million tons of previously contracted index sales for
delivery in 2013. In addition we contracted approximately 1 million tons
to bring us to an essentially fully sold position for 2013. For 2014
deliveries, we contracted approximately 6 million tons across our mix of
8400, 8800, and 9350 Btu coal. We are continuing our tight focus on cost
controls, however the combination of flat revenue and rising costs will
reduce our 2013 earnings from our Owned and Operated Mines segment.

For the second quarter of 2013, we expect shipments to be up over last
year but potentially hindered due to the extended winter and the risk of
possible flooding in the Midwest. Assuming there is normal summer
weather, we would anticipate shipments will continue to pick up in the
second half of 2013, benefiting our costs per ton and Adjusted EBITDA.

During the quarter, the berth outage at Westshore was resolved, and we
were able to return to normal levels of export tonnage throughput. We
continue to expect to deliver approximately 4.5 million tons to
international customers from our Logistics and Related Activities
segment in 2013. Due to low current prices, we have continued to defer
locking in prices for our export deliveries for the second half of 2013
to allow us to benefit if Newcastle prices were to rise. Current
Newcastle spot prices are in the range of $85 to $90 per tonne, which
means our planned export shipments for the second quarter of 2013 will
have minimal logistics margin.

'We anticipated a slow start for shipments for the year as utilities
burned down their stockpiles. As the winter has extended into April for
much of the country utilities have continued to burn coal while taking
their contracted tons. The market trends appear to be improving, pricing
has started to move up, and we are seeing more RFPs from utilities for
2014 and beyond. Importantly, we are continuing to match our production
to current market conditions and demand,? said Marshall. '2013 will
still be a challenging year as index tons are fixing at low prices, so
far the Newcastle price has remained low, and mining costs have trended
higher as expected. We are well placed financially to weather this
period with a sound balance sheet and we are currently looking forward
to an improved outlook for 2014.?

Updated 2013 Guidance ? Financial and Operational Estimates

The following table provides our current outlook and assumptions for
selected 2013 consolidated financial and operational metrics:

Conference Call Details

A conference call with management is scheduled at 5:00 p.m. ET on April
30, 2013 to review the results and current business conditions. The call
will be webcast live over the internet from our website at under 'Investor Relations?. Participants should follow the instructions
provided on the website for downloading and installing the audio
applications necessary to join the webcast. Interested individuals also
can access the live conference call via telephone at 866-318-8615
(domestic) or 617-399-5134 (international) and entering pass code
79211441.

Following the live webcast, a replay will be available at the same URL
on our website for seven days. A telephonic replay will also be
available approximately two hours after the call and can be accessed by
dialing 888-286-8010 (domestic) or 617-801-6888 (international) and
entering pass code 24925287. The telephonic replay will be available for
seven days.

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 PRB
coal company. As one of the safest coal producers in the nation, Cloud
Peak Energy specializes in the production of low sulfur, subbituminous
coal. 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 near Decker, Montana. 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 1,700 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 4% of the nation′s electricity.

Cautionary Note Regarding Forward-Looking Statements

This release and our related presentation contain '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, (1) our outlook for 2013 and future periods for our company,
the PRB and the industry in general, and our operational, financial and
export guidance, including any development of future terminal capacity
or increased access to existing or future capacity; (2) anticipated
economic conditions and demand by domestic and Asian utilities,
including the anticipated impact on demand driven by regulatory
developments and uncertainties; (3) the impact of competition from
natural gas and other alternative sources of energy used to generate
electricity; (4) coal stockpile levels and the impacts on future demand;
(5) our plans to replace and/or grow our coal tons; (6) business
development and growth initiatives; (7) operational plans for our mines;
(8) our cost management efforts; (9) industry estimates of the EIA and
other third party sources; (10) estimated Tax Receivable Agreement
liabilities; (11) completion of the sale of our 50% interest in the
Decker mine to Ambre Energy; (12) our estimates of the quality and
quantity of economic coal associated with our development projects, the
potential development of our Youngs Creek and other NPRB assets, and our
potential exercise of options for Crow Tribal coal; and (13) other
statements regarding our plans, strategies, prospects and expectations
concerning our business, operating results, financial condition 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. Factors that could adversely affect our
future results include, for example, (a) future economic and weather
conditions; (b) coal-fired power plant capacity and utilization, demand
for our coal by the domestic electric generation industry, Asian export
demand and terminal capacity and the prices we receive for our coal and
our logistics services; (c) reductions or deferrals of purchases by
major customers and our ability to renew sales contracts; (d)
competition from other coal producers, natural gas producers and other
sources of energy, domestically and internationally, (e) environmental,
health, safety, endangered species or other legislation, regulations,
treaties, court decisions or government actions, or related third-party
legal challenges or changes in interpretations, including new
requirements or uncertainties affecting the use, demand or price for
coal or imposing additional costs, liabilities or restrictions on our
mining operations, the utility industry or the logistics, transportation
and terminal industries; (f) public perceptions, third-party legal
challenges or governmental actions and energy policies relating to
concerns about climate change, air and water quality or other
environmental considerations, including emissions restrictions and
governmental subsidies or mandates that make wind, solar or other
alternative fuel sources more cost-effective and competitive with coal;
(g) operational, geological, equipment, permit, labor, weather-related
and other risks inherent in surface coal mining; (h) our ability to
efficiently and safely conduct our mining operations, (i) transportation
and export terminal availability, performance and costs; (j)
availability, timing of delivery and costs of key supplies, capital
equipment or commodities such as diesel fuel, steel, explosives and
tires; (k) our ability to acquire future coal tons through the federal
LBA process and necessary surface rights and permits in a timely and
cost-effective manner and the impact of third-party legal challenges,
(l) access to capital and credit markets and availability and costs of
credit, surety bonds, letters of credit, and insurance; (m) litigation
and other contingent liabilities; (n) the timing and ability of Ambre
Energy to replace our outstanding reclamation and lease bonds for the
Decker mine and pay the cash consideration for its pending purchase of
Decker, (o) receipt of required DOI approval for the Crow Tribe
transaction, (p) proposed Pacific Northwest export terminals are not
developed in a timely manner or at all, or are developed at a smaller
capacity than planned, or we are unable to finalize and enter into
definitive throughput agreements for potential future capacity at
proposed terminals, including the Gateway Pacific Terminal and the
Millennium Bulk Terminal, (q) future development and operating costs for
our development projects significantly exceed our expectations, and (r)
other risk factors described from time to time in the reports and
registration statements we file with the Securities and Exchange
Commission ('SEC?), 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 Forms 8-K. There may be other risks and uncertainties
that are not currently known to us or that we currently believe are not
material. 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 or our related
presentation, whether as a result of new information, future events or
otherwise, except as required by law.

Non-GAAP Financial Measures

This release and our related presentation include the non-GAAP financial
measures of (1) Adjusted EBITDA (on a consolidated basis and for our
reporting segments) and (2) Adjusted Earnings Per Share ('Adjusted
EPS?). Adjusted EBITDA and Adjusted EPS are intended to provide
additional information only and do not have any standard meaning
prescribed by generally accepted accounting principles in the U.S.
('GAAP?). A quantitative reconciliation of historical net income to
Adjusted EBITDA and EPS (as defined below) to Adjusted EPS is found in
the tables accompanying this release.

EBITDA represents net income, or income from continuing operations, as
applicable, before (1) interest income (expense) net, (2) income tax
provision, (3) depreciation and depletion, (4) amortization, and (5)
accretion. Adjusted EBITDA represents EBITDA as further adjusted to
exclude specifically identified items that management believes do not
directly reflect our core operations. For the periods presented herein,
the specifically identified items are: (1) adjustments to exclude the
updates to the tax agreement liability, including tax impacts of our
2009 initial public offering and 2010 secondary offering, (2)
adjustments for derivative financial instruments, excluding fair value
mark-to-market gains or losses and including cash amounts received or
paid, and (3) adjustments to exclude a significant broker contract that
expired in the first quarter of 2010. Because of the inherent
uncertainty related to the items identified above, management does not
believe it is able to provide a meaningful forecast of the comparable
GAAP measures or a reconciliation to any forecasted GAAP measures.

Adjusted EPS represents diluted earnings (loss) per common share
attributable to controlling interest, or diluted earnings (loss) per
common share attributable to controlling interest from continuing
operations, as applicable ('EPS?), adjusted to exclude the estimated per
share impact of the same specifically identified items used to calculate
Adjusted EBITDA as described above, adjusted at the statutory rate of
36%.

Adjusted EBITDA is an additional tool intended to assist our management
in comparing our performance on a consistent basis for purposes of
business decision-making by removing the impact of certain items that
management believes do not directly reflect our core operations.
Adjusted EBITDA is a metric intended to assist management in evaluating
operating performance, comparing performance across periods, planning
and forecasting future business operations and helping determine levels
of operating and capital investments. Period-to-period comparisons of
Adjusted EBITDA are intended to help our management identify and assess
additional trends potentially impacting our company that may not be
shown solely by period-to-period comparisons of net income or income
from continuing operations. Our chief operating decision maker uses
Adjusted EBITDA as a measure of segment performance. Consolidated
Adjusted EBITDA is also used as part of our incentive compensation
program for our executive officers and others.

We believe Adjusted EBITDA and Adjusted EPS are also useful to
investors, analysts and other external users of our consolidated
financial statements in evaluating our operating performance from period
to period and comparing our performance to similar operating results of
other relevant companies. Adjusted EBITDA allows investors to measure a
company′s operating performance without regard to items such as interest
expense, taxes, depreciation and depletion, amortization and accretion
and other specifically identified items that are not considered to
directly reflect our core operations. Similarly, we believe our use of
Adjusted EPS provides an appropriate measure to use in assessing our
performance across periods given that this measure provides an
adjustment for certain specifically identified significant items that
are not considered to directly reflect our core operations, the
magnitude of which may vary significantly from period to period and,
thereby, have a disproportionate effect on the earnings per share
reported for a given period.

Our management recognizes that using Adjusted EBITDA and Adjusted EPS as
performance measures has inherent limitations as compared to net income,
income from continuing operations, EPS or other GAAP financial measures,
as these non-GAAP measures exclude certain items, including items that
are recurring in nature, which may be meaningful to investors. Adjusted
EBITDA and Adjusted EPS should not be considered in isolation and do not
purport to be alternatives to net income, income from continuing
operations, EPS or other GAAP financial measures as a measure of our
operating performance. Because not all companies use identical
calculations, our presentations of Adjusted EBITDA and Adjusted EPS may
not be comparable to other similarly titled measures of other companies.
Moreover, our presentation of Adjusted EBITDA is different than EBITDA
as defined in our debt financing agreements.

(1) Defined later.