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FELP - Foresight Energy


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valcont, here is waht Aqul posted back in Nov 2016:

 

Is there any chance of a re-fi for the Exchangeable PIK? The new 2021 notes don't allow the refinancing debt to pay cash, or have more favorable maturity terms (see below), so it's going to be difficult to re-fi, to say the least. Are you all assuming full dilution for the PIK in your valuations?

 

From the Indenture (Exhibit 4.1 from the 9-6-16 8-K):

With respect to (i) any Debt Incurred pursuant to this Section 4.06 to refinance the Exchangeable PIK Notes and all subsequent refinancings thereof (collectively, the “Exchangeable PIK Notes Refinancing Debt”) and (ii) any Debt Incurred pursuant to this Section 4.06 after the Issue Date more than a majority of which is loaned or otherwise provided by an Affiliate (other than the Issuers and any Restricted Subsidiary) (which, for the avoidance of doubt, does not apply to any Debt outstanding on the Issue Date, including the Exchangeable PIK Notes, or any Debt outstanding (whether Incurred before, on or after the Issue Date) that is acquired by an Affiliate after the initial Incurrence thereof), in each case of clauses (i) and (ii) other than Excluded Debt, such Debt must: (a) be unsecured or constitute Junior Lien Obligations, (b) have a maturity date no earlier than 91 days later than the earlier of (i) the Notes Maturity Date and (ii) the date on which the Notes are no longer outstanding, © have no issuer, obligor or guarantor thereof other than the Issuers and the Guarantors, (d) not provide for any cash payments while the Notes are outstanding and (e) not contain any negative covenants or events of default that are more restrictive than the negative covenants and Events of Default (as applicable) in this Indenture unless this Indenture is amended to contain such more restrictive negative covenants or events of default (as applicable).

 

I see. All this means is that they can't make interest payments in cash i.e. the debt has to be PIK if they refinance the debt. Murray has lots of levers to play with today compared to last year this time. He may refinance all the debt in one big swoop or just take it private.

 

Or interest payable in lump sum at maturity date.

 

There's plenty of room to handle this here, these guys managed to pull a rabbit out of their hat on the default, this is child's play in comparison. The 2021 are structured to not be cut in line for their meal, not prohibit the 2017's from ever being taken care of. I don't think it'll even require much creativity

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What'd everyone think of ARLP's release and call?

 

Their costs per ton were down big time from 2015 4Q. Still nowhere near FELP, but down from 33.19 to 27.72 per ton.

 

Price per ton in ILB was down from 4Q last year 49.96 to 45.56.

 

On the call mgmt seemed confident that 2016 was the floor for gas and coal.

 

Not much info on exports, really interested to see how FELP is doing on that front...

 

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What'd everyone think of ARLP's release and call?

 

Their costs per ton were down big time from 2015 4Q. Still nowhere near FELP, but down from 33.19 to 27.72 per ton.

 

Price per ton in ILB was down from 4Q last year 49.96 to 45.56.

 

On the call mgmt seemed confident that 2016 was the floor for gas and coal.

 

Not much info on exports, really interested to see how FELP is doing on that front...

 

Here is my take on it that is relevant to FELP.

 

1. Lenders are still leery about the fundamentals but this may improve with DT victory.

 

2. Prices are down 12-13% but coal production declined 18% in 2016.

 

3. They are front loading the export volume which makes sense since API2 is sitting at $85

 

4.Inventories seems higher since the Utilities are buying on a monthly and quarter basis rather than stockpiling for longer term but supply demand is matched.

 

Overall it was not a bad report. The sales prices were down since the higher prices contract were renegotiated with lower ones. FELP's sale price last qtr was $37 and they had booked ~4m tons already. ILB is at $35 now. I think FELP will continue to do well this year. At this time,it is a part commodity price

and part financial engineering story. Most likely the non reserve will be cashed out and Cline will receive part cash part equity as part of refinancing.

 

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Last year was 3/15.

 

Per IR (Jason Margherio) sent to me yesterday:

 

We have not set a date yet.  Based on our filing status we have up to 90 days following the end of the year to file our annual 10-K.  It is likely that we’ll do our earnings announcement concurrently with that filing, but we haven’t decided yet when that will occur.

 

Thanks,

Jason

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Could someone please walk me through an exported ton from FELP. I've looked at SXCP presentation on Convent Marine Terminal, but I'm still a little fuzzy on few things:

 

Say they lock in $70 per metric ton for coal to Europe

 

According to SXCP you have then adjust:

 

Sulfur Content (-3)

BTU Premium (+5)

Metric Conversion (-9)

 

So now u have $63 coal and u gotta get it to CMT

 

SXCP says $18 dollars to get the coal from the ILB and loaded into a ship. That seems really high to me. Doe anyone know if that's suppose to be illustrative of FELP or Murray's inland cost? I thought there was minimal rail travel and most of this was on river barges

 

Ocean freight seems reasonable at $9

 

Lastly, what's the the most FELP could switch to the export market if prices remain high. Could FELP do something like 7.5mm tons in 2017 and 10mm tons in 2018 or do they have domestic customers that they have to cater to?

 

Thanks

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Coal companies settle suit alleging they excluded women from working in mines

 

http://legalnewsline.com/stories/511079185-coal-companies-settle-suit-alleging-they-excluded-women-from-working-in-mines

 

The U.S. Equal Employment Opportunity Commission (EEOC) has resolved two lawsuits against coal mining companies that allegedly conducted hiring practices that excluded women from working in mines.

 

 

To settle the allegations, the group of mining companies agreed to pay a collective $4.25 million to women applicants who were denied jobs because of the alleged sex discrimination.

 

The companies involved in the lawsuits were Mach Mining and various affiliates – Foresight Energy Services LLC, Foresight Energy LLC, Foresight Energy LP, Foresight Energy Labor LLC, Hillsboro Energy LLC, Macoupin Energy LLC, MaRyan Mining LLC, M-Class Mining LLC, Patton Mining LLC, Sugar Camp Energy LLC, Viking Mine LLC, and Williamson Energy LLC. These are all part of St. Louis-based Foresight Energy.

 

C'mon Murray. Hire some women.

 

 

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Please hold the tar and feathers, but....

 

https://www.bloomberg.com/news/articles/2016-04-05/one-thing-california-texas-have-in-common-is-negative-power

 

 

This is such an interesting trend.....

 

Why would we tar and feather you? This isn't Yahoo or SeekingAlpha.

 

I fully expect renewables to take over the lions share of electricity generation within 15-20 years. The only thing preventing this today is cheap enough storage. Battery prices are too high today in most places, but they are coming down at 10-15% a year, a trend which could accelerate as more money is poured into R&D.

 

States need to move to a Time-of-Use electricity pricing model. This will incentivize use when the power is available. As we shift to electric cars, this will become easier, as these vehicles will use a lot of juice, and have the potential to be plugged in 60-95% of the time, charging mainly when rates are lowest.

 

All of this is negative for coal long term, but in the medium term I actually think we see higher demand as EV use increases faster than new renewable capacity.

 

 

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Priliminary Results released by Foresight today.

http://investor.foresight.com/file/Index?KeyFile=38013878

 

Revenue of $251M on 5.2MT sold. Adjusted EBITDA of $98M for Q4 is solid and they also announced they retained Goldman Sachs to look into refinance some or all of existing debt. I'm very curious how the market will respond to this tomorrow.

 

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Priliminary Results released by Foresight today.

http://investor.foresight.com/file/Index?KeyFile=38013878

 

Revenue of $251M on 5.2MT sold. Adjusted EBITDA of $98M for Q4 is solid and they also announced they retained Goldman Sachs to look into refinance some or all of existing debt. I'm very curious how the market will respond to this tomorrow.

 

That's an average of ~$50/ton.  I am curious what is the break down between domestic and export.

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What's up with the anemic volume and price action since the prelim results and potential refi? Bob Murray is in the media again and hanging out

 

with Trump in the WH. Murray's bonds are now $83 and trading decent volume...

 

If you take away that 200k Accipiter sale on the prelim results day, no one is really trading FELP.

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What's up with the anemic volume and price action since the prelim results and potential refi? Bob Murray is in the media again and hanging out

 

with Trump in the WH. Murray's bonds are now $83 and trading decent volume...

 

If you take away that 200k Accipiter sale on the prelim results day, no one is really trading FELP.

 

Everyone is waiting for the 10K and hopefully a CC. I did speak with Jason from the IR about the earnings date and he told me it hadn't been finalized yet. Surprisingly they released the preliminary the next day.

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