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 third quarter and first nine months of 2013.
Highlights and Recent Developments
Adjusted EBITDA(1) of $70.9 million for the third quarter of 2013 compared with $108.4 million for the third quarter of 2012.
Third quarter of 2013 net income of $18.0 million resulting in diluted EPS of $0.29 compared to net income of $85.3 million and diluted EPS of $1.39 for the third quarter of 2012.
Adjusted EPS(1) of $0.34 for the third quarter of 2013 compared to $0.80 for the third quarter of 2012.
Cash and investments were $300 million and total available liquidity was $553 million as of September 30, 2013. We generated $101 million in cash from operations for the third quarter of 2013.
Shipments of 23.1 million tons for the third quarter of 2013 from our three operated mines compared to 24.4 million tons for the third quarter of 2012.
Average cost per ton sold for the third quarter of 2013 decreased to $9.78 per ton from $10.81 per ton in the second quarter of 2013.
Asian exports were 1.3 million tons in the third quarter of 2013 compared to 1.5 million tons in the third quarter of 2012. For the full year, we continue to expect Asian exports of approximately 5 million tons.
After careful evaluation of the estimated economics of the Maysdorf II North Tract LBA, we determined not to bid at this time.
Colin Marshall, President and Chief Executive Officer, commented, “As expected, shipments increased in the third quarter as customers took their contracted tons. Our mines responded well during a wet quarter, increasing production while staying focused on cost control and achieving cost per ton of $9.78. We see domestic market fundamentals are continuing to improve with higher natural gas prices, decreasing stockpiles of PRB coal, and continued strong burn rates.”
Health and Safety Record
During the third quarter of 2013, of our nearly 1,400 full-time mine site employees, two employees suffered reportable injuries resulting in a year-to-date MSHA All Injury Frequency Rate of 0.61, a 26% decrease from the full year 2012 rate of 0.82. During 14 MSHA inspector days in the third quarter of 2013, we were issued one substantial and significant citation with a total fine of $540.
(1) Defined later.
Consolidated Business Results
The following table summarizes certain consolidated results (in millions, except per share amounts):
Q3
Q3
YTD
YTD
2013
2012
2013
2012
Total tons sold
24.2
25.1
66.4
68.7
Total revenue
$374.8
$425.9
$1,042.9
$1,141.9
Net income
$ 18.0
$ 85.3
$ 38.1
$ 145.6
Adjusted EBITDA(1)
$ 70.9
$ 108.4
$ 156.5
$ 249.8
Adjusted EPS(1)
$ 0.34
$ 0.80
$ 0.43
$ 1.62
(1) Non-GAAP financial measure; please see definition and reconciliation below in this release and the attached tables.
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.
(in millions, except per ton amounts)
Q3
Q3
YTD
YTD
2013
2012
2013
2012
Tons sold
23.1
24.4
64.3
67.0
Realized price per ton sold
$13.03
$13.28
$13.06
$13.24
Average cost of product sold per ton
$ 9.78
$ 9.14
$10.29
$ 9.64
Adjusted EBITDA(1)
$ 65.9
$ 89.0
$145.8
$207.8
(1) Non-GAAP financial measure; please see definition and reconciliation below in this release and the attached tables.
Tons sold from our Owned and Operated Mines segment were lower than the third quarter of 2012 due to operational and train delays related to several rain events. Realized prices per ton were slightly lower than 2012 due to the impact of consistently low prices since late 2011 and indexed tons that settled relative to current low OTC prices. Sequentially, average cost per ton declined $1.03 to $9.78 in the third quarter as compared to the previous quarter, a decrease of nearly 10%. Compared to the prior year, cost per ton increased due to increases in strip ratios and haul distances, and the impact of fixed costs on fewer tons in 2013. In addition, higher natural gas prices have contributed to increased explosives costs.
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.
(in millions)
Q3
Q3
YTD
YTD
2013
2012
2013
2012
Total tons delivered
1.4
1.9
4.2
4.4
Asian export tons
1.3
1.5
3.6
3.5
Revenue
$70.2
$110.7
$203.2
$273.7
Cost of product sold (delivered tons)
$70.1
$ 88.1
$197.4
$222.7
Adjusted EBITDA(1)
$ 2.1
$ 18.9
$ 6.2
$ 41.7
(1) Non-GAAP financial measure; please see definition and reconciliation below in this release and the attached tables.
Third quarter total tons delivered from our Logistics and Related Activities segment decreased due to timing and scheduling of vessels. We continue to expect to deliver approximately 5 million tons for the full year. Revenue decreased as a result of lower prices on our Asian deliveries related to low Newcastle benchmark prices. Our international coal forward financial contracts program mitigated some of this impact with a realized gain of $3.7 million in the quarter. During the third quarter of 2013, the Newcastle benchmark price averaged approximately $73 per tonne for 2013 deliveries down from $90 per tonne this time last year. Based on the comparative quality and transport costs, our delivered sales are generally priced between 60% and 70% of the forward Newcastle price.
Balance Sheet and Cash Flow
Cash flow from operations totaled $144.9 million for the first nine months of 2013 compared to $202.0 million for the first nine months of 2012. Capital expenditures (excluding capitalized interest) were $46 million, of which $10 million was financed under capital leases.
Unrestricted cash and investments as of September 30, 2013 were $300 million and our total available liquidity was $553 million. At September 30, 2013, there were no borrowings under the Amended Credit Agreement or the Accounts Receivable Securitization Program.
Decker Update
On August 28, 2013, Cloud Peak Energy and Ambre Energy announced that Ambre’s purchase of our 50% interest in the Decker Mine was not expected to be completed for the foreseeable future and that the companies were in discussions and had agreed to jointly dismiss the Decker litigation without prejudice. We are hopeful that when international coal prices improve, Ambre will be positioned to purchase our 50% interest in the Decker Mine. Completion of any future transaction would be subject to future negotiations between our companies. In the meantime, we have been working with Ambre to optimize the Decker Mine’s operations in light of the current domestic market. Through our participation in the Alliance for Northwest Jobs and Exports, we are continuing to work with Ambre to promote the proposed Millennium Bulk Terminal export facility.
Cordero Rojo Update
During the third quarter 2013, we decided not to bid on the Maysdorf II North LBA and to retain the cash on our balance sheet. The decision not to invest in additional 8400 Btu coal was made in light of market conditions, access issues to the coal and other factors discussed in our August 21, 2013 press release. This decision followed our second quarter 2013 earnings announcement that we are evaluating reducing shipments at our 8400 Btu Cordero Rojo Mine by around ten million tons per year starting in 2015. We have adjusted our forward sales strategy for Cordero Rojo to reflect this reduction in 2015 and are continuing to evaluate how to optimize the operation in light of prevailing market conditions. Regarding the Maysdorf II South LBA, we understand that the Bureau of Land Management is expecting to delay any future lease sales for that LBA for up to two years due to current weak markets.
Outlook
Customers are continuing to take their contracted coal and are burning down their coal inventories as a result of higher natural gas prices and steady coal burn. We expect U.S. total coal demand for the full year 2013 to increase by around 50 million tons compared to 2012. This rebound in demand has reduced inventories of PRB coal stockpiles to 71 million tons at the end of September, down from 92 million tons at the same time last year. We continue to be optimistic that the steady coal burn and continued reduction in PRB inventories will lead to prices moving higher.
Due to the weather related operational interruptions during the summer and the heavy snow storm that hit the PRB in the first week of October we are reducing the midpoint of our shipment guidance to 88 million tons from 90 million tons and the midpoint of our Adjusted EBITDA guidance to $220 million from $230 million. The impact of lower shipments has been partially offset by good cost control across all the operations.
For 2014, we have currently committed to sell 79 million tons from our three company-operated mines. Of this committed 2014 production, 69 million tons are under fixed-price contracts with a weighted-average price of $13.24 per ton. During the quarter, we only contracted approximately 5 million tons across our mix of 8400, 8800, and 9350 Btu coal for 2014 deliveries with contracts at an average price of approximately $11.60 per ton. The small increase in our net 2014 contracted position reflects our goal of only contracting the minimum levels we are comfortable with to allow the mines to run efficiently when prices are low.
For 2015, we are currently committed to sell 42 million tons from our three company-operated mines. Of this committed 2015 production, 28 million tons are under fixed-price contracts with a weighted-average price of $13.68 per ton.
We are forecasting export shipments through Westshore to be approximately 5 million tons from our Logistics and Related Activities segment in 2013. Demand from our international customers continues to be strong, and we continue to seek to fill all available capacity at Westshore.
“Our third quarter results demonstrate our ability to increase production while maintaining an excellent focus on cost control and efficiency through the business. We see the outlook as positive and will work to maximize our opportunity while carefully investing capital. We believe both domestic and international coal pricing will recover, and that Cloud Peak Energy is well placed to capitalize when that occurs,” commented Marshall.
Updated 2013 Guidance – Financial and Operational Estimates
The following table provides our current outlook and assumptions for selected 2013 consolidated financial and operational metrics:
Item
Estimate or Estimated Range
Coal shipments for our three operated mines(1)
87 - 89 million tons
Committed sales with fixed prices
Approximately 92 million tons
Anticipated realized price of produced coal with fixed prices
Approximately $13.04 per ton
Adjusted EBITDA(2)
$210 - $230 million
Net interest expense
Approximately $40 million
Depreciation, depletion and accretion
$110 - $120 million
Effective income tax rate(3)
Approximately 36%
Capital expenditures(4)
$55 - $65 million
Committed federal coal lease payments
$79 million
(1) Inclusive of intersegment sales.
(2) Non-GAAP financial measure; please see definition below in this release.
(3) Excluding impact of the Tax Receivable Agreement.
(4) Excluding federal coal lease payments.
Conference Call Details
A conference call with management is scheduled at 5:00 p.m. ET on October 29, 2013 to review the results and current business conditions. The call will be webcast live over the internet from our website at
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.
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, 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, including potential production decreases at our Cordero Rojo Mine; (8) our cost management efforts; (9) industry estimates of the EIA and other third party sources; (10) estimated Tax Receivable Agreement liabilities; (11) potential future 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 potential future timing and ability of Ambre Energy to replace our outstanding reclamation and lease bonds for the Decker Mine and to purchase our 50% interest in the mine, (o) 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, (p) future development and operating costs for our development projects significantly exceed our expectations, and (q) 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.
CLOUD PEAK ENERGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2013
2012
2013
2012
Revenue
$
374,816
$
425,861
$
1,042,864
$
1,141,947
Costs and expenses
Cost of product sold (exclusive of depreciation, depletion, and accretion, shown separately)
295,983
301,893
853,615
850,911
Depreciation and depletion
26,918
24,661
75,589
70,337
Accretion
3,995
3,257
12,249
9,327
Derivative mark-to-market losses (gains)
295
(1,334
)
(25,641
)
(19,461
)
Selling, general and administrative expenses
13,201
13,848
39,642
41,146
Other operating costs
592
1,902
1,893
2,303
Total costs and expenses
340,984
344,227
957,347
954,563
Operating income
33,832
81,634
85,517
187,384
Other income (expense)
Interest income
154
189
343
948
Interest expense
(9,020
)
(11,671
)
(29,819
)
(25,457
)
Tax agreement (expense) benefit
(10,515
)
29,000
(10,515
)
29,000
Other, net
2,703
(335
)
2,505
(388
)
Total other income (expense)
(16,678
)
17,183
(37,486
)
4,103
Income before income tax provision and earnings from unconsolidated affiliates
17,154
98,817
48,031
191,487
Income tax benefit (expense)
785
(13,601
)
(10,512
)
(47,509
)
Earnings from unconsolidated affiliates, net of tax
27
44
551
1,579
Net income
17,966
85,260
38,070
145,557
Other comprehensive income
Retiree medical plan amortization of prior service costs
444
394
1,331
1,182
Other postretirement plan adjustments
?
?
30
90
Income tax on retiree medical plan and pension adjustments
(160
)
(142
)
(490
)
(458
)
Other comprehensive income
284
252
871
814
Total comprehensive income
$
18,250
$
85,512
$
38,941
$
146,371
Income per common share:
Basic
$
0.30
$
1.42
$
0.63
$
2.43
Diluted
$
0.29
$
1.39
$
0.62
$
2.39
Weighted-average shares outstanding - basic
60,658
60,044
60,632
60,020
Weighted-average shares outstanding - diluted
61,161
61,142
61,134
60,923
CLOUD PEAK ENERGY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30,
December 31,
ASSETS
2013
2012
Current assets
(unaudited)
(audited)
Cash and cash equivalents
$
219,211
$
197,691
Investments in marketable securities
80,646
80,341
Accounts receivable
85,777
76,117
Due from related parties
1,643
1,561
Inventories, net
81,954
81,675
Deferred income taxes
29,155
28,112
Derivative financial instruments
33,738
13,785
Other assets
21,283
16,513
Total current assets
553,407
495,795
Noncurrent assets
Property, plant and equipment, net
1,654,849
1,678,294
Goodwill
35,634
35,634
Deferred income taxes
90,328
101,075
Other assets
43,322
40,525
Total assets
$
2,377,540
$
2,351,323
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
63,137
$
49,589
Royalties and production taxes
144,611
129,351
Accrued expenses
56,435
50,364
Current portion of tax agreement liability
23,459
19,485
Current portion of federal coal lease obligations
58,958
63,191
Other liabilities
4,222
2,770
Total current liabilities
350,822
314,750
Noncurrent liabilities
Tax agreement liability, net of current portion
103,595
97,053
Senior notes
596,855
596,506
Federal coal lease obligations, net of current portion
63,970
122,928
Asset retirement obligations, net of current portion
222,274
238,991
Other liabilities
63,603
50,073
Total liabilities
1,401,119
1,420,301
Equity
Common stock ($0.01 par value; 200,000 shares authorized; 61,294 and 61,114 shares issued and 60,898 and 60,839 outstanding at September 30, 2013 and December 31, 2012, respectively)
609
608
Treasury stock, at cost (396 shares and 276 shares at September 30, 2013 and December 31, 2012, respectively)
(5,656
)
(5,390
)
Additional paid-in capital
557,175
550,452
Retained earnings
443,883
405,813
Accumulated other comprehensive loss
(19,590
)
(20,461
)
Total equity
976,421
931,022
Total liabilities and equity
$
2,377,540
$
2,351,323
CLOUD PEAK ENERGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
September 30,
2013
2012
Cash flows from operating activities
Net income
$
38,070
$
145,557
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and depletion
75,589
70,337
Accretion
12,249
9,327
Earnings from unconsolidated affiliates
(551
)
(1,579
)
Distributions of income from unconsolidated affiliates
2,000
1,000
Deferred income taxes
8,903
36,747
Tax agreement expense (benefit)
10,515
(29,000
)
Stock compensation expense
5,825
9,485
Derivative mark-to-market gains
(25,641
)
(19,461
)
Other
8,407
8,804
Changes in operating assets and liabilities:
Accounts receivable
(9,834
)
(11,052
)
Inventories, net
(101
)
(9,970
)
Due to or from related parties
(82
)
(2,351
)
Other assets
(5,179
)
(9,615
)
Accounts payable and accrued expenses
19,826
7,585
Asset retirement obligations
(770
)
(4,867
)
Cash received for financial derivative instruments
5,689
1,007
Net cash provided by operating activities
144,915
201,954
Investing activities
Acquisition of Youngs Creek and CX Ranch coal and land assets
—
(300,377
)
Purchases of property, plant and equipment
(35,765
)
(36,445
)
Cash paid for capitalized interest
(23,330
)
(42,877
)
Investments in marketable securities
(46,372
)
(58,611
)
Maturity and redemption of investments
46,067
53,508
Investment in project development
(4,087
)
—
Return of restricted cash
—
71,244
Partnership escrow deposit
—
(4,470
)
Return of partnership escrow
4,468
—
Other
102
1,847
Net cash used in investing activities
(58,917
)
(316,181
)
Financing activities
Principal payments on federal coal leases
(63,191
)
(102,198
)
Payment of deferred financing fees
(865
)
—
Other
(422
)
(2,310
)
Net cash used in financing activities
(64,478
)
(104,508
)
Net increase (decrease) in cash and cash equivalents
21,520
(218,735
)
Cash and cash equivalents at beginning of period
197,691
404,240
Cash and cash equivalents at end of period
$
219,211
$
185,505
Supplemental cash flow disclosures:
Interest paid
$
43,125
$
57,911
Income taxes paid
$
11,419
$
22,017
Supplemental noncash investing and financing activities: