Earnings Review and Free Research Report: Foresight Energy’s Net Loss Narrowed, Beating Estimates

Research Desk Line-up: Westmoreland Coal Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Foresight Energy L.P. (NYSE: FELP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FELP, following the Company’s posting of its second quarter financial results on August 11, 2017. The coal mining Company updated its outlook for 2017 and also approved the restoration of a quarterly cash distribution. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Nonmetallic Mineral Mining industry. Pro-TD has currently selected Westmoreland Coal Company (NASDAQ: WLB) for due-diligence and potential coverage as the Company reported on August 03, 2017, its financial results for Q2 2017 and also updated its guidance. Register for a free membership today, and be among the early birds that get access to our report on Westmoreland Coal when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FELP; also brushing on WLB. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended June 30, 2017, Foresight Energy’s sales came in at $207.09 million compared to $226.00 million in Q2 2016. The Company’s revenue numbers fell short of analysts’ forecasts of $228 million.

During Q2 2017, Foresight Energy’s coal sales totaled $204.5 million compared to $224.1 million for Q2 2016. The decrease in coal sales revenues was driven by lower sales volumes and anticipated reductions in coal sales realizations per ton. Sales volumes were unfavorably impacted by 0.2 million tons due to the continued lack of performance by one rail service provider and certain customers deferring shipments during the reported quarter.

For Q2 2017, Foresight Energy’s cost of coal produced was $105.8 million, or $21.88 per ton sold, compared to $112.1 million, or $22.16 per ton sold, for Q2 2016. The decrease during the reported quarter was driven largely by lower sales volumes and also included a non-cash charge of $4.6 million related to the revaluation of coal inventory related to the push-down accounting adopted.

Foresight Energy’s transportation costs decreased $9.3 million, or $1.59 per ton sold, on a y-o-y basis due to lower sales volumes and lower charges for minimum contractual rail and export terminal throughput requirements. The lower contractual minimums were driven by the expectation of higher export shipments during 2017. The Company’s other operating (income) expense for the reported quarter increased $13.7 million on a y-o-y basis due to the receipt of $12.8 million of insurance proceeds related to the Hillsboro’s combustion event.

Foresight energy recorded net loss attributable to controlling interests of $16.28 million, or $0.12 per share, compared to net loss of $27.79 million, or $0.21 per share, in Q2 2016. The Company’s losses, adjusted for amortization costs, came in at $0.01 per share and better than Wall Street’s forecasts for a loss of $0.03 per share.

Cash Matters

Foresight Energy generated operating cash flows of $38.5 million during Q2 2017. The Company ended the quarter with $7.2 million in cash and $158.5 million of available borrowing capacity, net of outstanding letters of credit, under its revolving credit facility. During Q2 2017, Foresight Energy’s capital expenditures totaled $21.7 million, an increase of $13.5 million on a y-o-y basis.

Guidance for 2017

Based on year-to-date sales volumes, current committed position, and expectations for the remainder of 2017, Foresight Energy reaffirmed its projected sales volumes forecast to be between 20.5 million and 22.0 million tons with over 5.0 million tons expected to go into the international market. Foresight has current commitments of approximately 20.0 million tons for 2017.

The Company is expected to generate adjusted EBITDA in a range of $285 million to $310 million based on projected sales volumes and operating cost structure. For FY17, Foresight Energy is estimating capital expenditures to be between $70 million and $77 million.

Quarterly Distribution and Strategy

As a result of the provided guidance, liquidity position, and ability to generate cash in the coming quarters, the Company’s General Partner’s Board of Directors approved the restoration of a quarterly cash distribution of $0.0647 per common unit. The distribution is payable on August 31, 2017, for common unit holders of record on August 21, 2017.

Stock Performance

At the closing bell, on Tuesday, August 29, 2017, Foresight Energy’s stock climbed 1.00%, ending the trading session at $4.03. A total volume of 27.56 thousand shares have exchanged hands. The stock has a dividend yield of 6.45% and currently has a market cap of $583.87 million.

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