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RICHMOND, Va., Sept. 3 /PRNewswire-FirstCall/ -- Massey Energy Company
(NYSE: MEE) today provided additional detail on its expectations for the third
quarter and full year 2008 in advance of Don Blankenship's presentation at the
Lehman Brothers CEO Power/Energy conference on September 4, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20071031/MASSEYENERGYLOGO )
"Global demand for coal remains very strong and prices have remained at
very high levels," said Blankenship, Massey's Chairman and CEO. "With
continuing progress in our expansion efforts and prices in excess of our
original plans, Massey is on track for another record year."
"As planned, our expansion work has intensified in the third quarter,"
Blankenship continued. "We are expanding or adding new mines at our Green
Valley, Mammoth, Stirrat, Martin County, Edwight, Knox Creek, Progress and
Nicholas Energy resource groups. As we said in our conference call with
shareholders on August 1, these activities will likely make the third quarter
the most challenging of the year. In addition, third quarter results will
include a pre-tax charge of approximately $15 million associated with the
tender offer of the Company's 6.625% senior notes in conjunction with our
recent financing transactions. We expect fourth quarter results to be
stronger, however, driven by increased coal shipments as well as more
favorable timing of metallurgical coal shipments and new higher priced
contracts phasing in, which will result in a higher overall average price per
ton."
For the third quarter of 2008, Massey stated that it expects produced tons
sold to be in the range of 10.3 to 10.7 million at an average price of $64.00
to $66.00 per ton.
Massey further stated that it still expects full-year 2008 results,
excluding the litigation charge recorded in the second quarter, to be within
the ranges of full-year guidance provided previously but with produced tons
sold and average price per ton trending toward the lower end of the respective
ranges.
Mr. Blankenship's presentation at the Lehman conference will be webcast
and can be accessed at
http://cc.talkpoint.com/LEHM002/090208a_jw/default.asp?entity=massey or
through the Investor Relations page on the Company's website at
www.masseyenergyco.com.
Company Description
Massey Energy Company, headquartered in Richmond, Virginia, with
operations in West Virginia, Kentucky and Virginia, is the fourth largest coal
company in the United States based on produced coal revenue and is included in
the S&P 500 index.
FORWARD-LOOKING STATEMENTS: Certain statements in this press release
constitute "forward-looking statements" within the meaning of Section 27A of
the Securities Exchange Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and are intended to come within
the safe harbor protection provided by those sections. Any forward-looking
statements are also subject to a number of assumptions regarding, among other
things, future economic, competitive and market conditions. These assumptions
are based on facts and conditions as they exist at the time such statements
are made as well as predictions as to future facts and conditions, the
accurate prediction of which may be difficult and involve the assessment of
events beyond the Company's control. The Company disclaims any intent or
obligation to update these forward-looking statements unless required by
securities law, and the Company cautions the reader to not rely on them
unduly. Caution must be exercised in relying on forward-looking statements
including disclosures that use words such as "believe," "anticipate,"
"expect," "estimate," "intend," "may," "plan," "project," "will," and similar
words or statements that are subject to risks, trends and uncertainties that
could cause the Company's actual results to differ materially from the
expectations expressed or implied in such forward-looking statements. Factors
potentially contributing to such differences include, among others: worldwide
market demand for coal, electricity and steel; the successful completion of
acquisition, disposition or financing transactions; future economic or capital
market conditions; foreign currency fluctuations; governmental policies, laws,
regulatory actions and court decisions affecting the coal industry or our
customers' coal usage; competition among coal producers in the United States
and internationally; inherent risks of coal mining beyond the Company's
control, including weather and geologic conditions; the Company's ability to
expand mining capacity; the Company's production capabilities to meet market
expectations and customer requirements; the Company's strategic plans and
objectives for future operations and expansion or consolidation; the Company's
assumptions and projections concerning economically recoverable coal reserve
estimates; failure to receive anticipated new contracts; the Company's
reliance upon and relationships with our customers and suppliers; the
creditworthiness of the Company's customers and suppliers; adjustments made in
price, volume or terms to existing coal supply agreements; the Company's
ability to manage production costs, including labor costs; the Company's
ability to timely obtain necessary supplies and equipment; the Company's
ability to obtain and renew permits necessary for existing and planned
operations; the cost and availability of surety bonds; the Company's ability
to attract, train and retain a skilled workforce to meet replacement or
expansion needs; the cost and availability of transportation for the Company's
produced coal; legal and administrative proceedings, settlements,
investigations and claims and the availability of insurance coverage related
thereto; and environmental concerns related to coal mining and combustion.
Additional information concerning these and other factors can be found in
press releases and Massey's public filings with the Securities and Exchange
Commission, including Massey's Annual Report on Form 10-K for the year ended
December 31, 2007, which was filed on February 29, 2008, and subsequently
filed interim reports. Massey's filings are available either publicly, on the
Investor Relations page of Massey's website, www.masseyenergyco.com, or upon
request from Massey's Investor Relations Department: (866) 814-6512 (toll
free). For further information, please visit Massey's website at
www.masseyenergyco.com.
SOURCE Massey Energy Company
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