ABINGDON, Va., Oct. 26 /PRNewswire-FirstCall/ -- Alpha Natural
Resources, Inc. (NYSE:
ANR -
News), a leading Appalachian coal
producer, today completed the previously announced acquisition of the Nicewonder
coal group for $316.2 million in cash, stock and notes, plus adjustments for
working capital. The cash portion of the acquisition is being funded primarily
through a $525.0 million refinancing of Alpha's senior secured credit
facilities, the closing of which also took place today.
As previously reported, the Nicewonder group is expected to add about 4.3
million tons to Alpha's coal output in 2006, representing an increase of
approximately 20 percent over Alpha's projected coal production this year. Alpha
expects the acquisition to be accretive to earnings and to enhance the company's
operating results and free cash flow generation going forward.
About Alpha Natural Resources
Alpha Natural Resources is a leading producer of high-quality Appalachian
coal. Taking into account Alpha's acquisition of Nicewonder, approximately 92
percent of the company's reserve base is high Btu coal and 90 percent is low
sulfur, qualities that are in high demand among electric utilities which use
steam coal. Alpha is also one of the nation's largest producers and exporters of
metallurgical coal, a key ingredient in steel manufacturing. Alpha and its
subsidiaries currently operate mining complexes in four states, consisting of 67
mines feeding 11 coal preparation and blending plants. The company and its
subsidiaries employ approximately 3,200 people.
ANRG
Forward-Looking Statements
Certain statements in this news release are forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. Alpha Natural
Resources, Inc. ("Alpha" or "the company") uses the words "anticipate,"
"believe," "could," "should," "estimate," "expect," "intend," "may," "predict,"
"project," "target" and similar terms and phrases, including references to
assumptions, to identify forward-looking statements. These forward-looking
statements are based on Alpha's expectations and beliefs concerning future
events affecting the company and involve certain risks and uncertainties that
may cause actual results to differ materially from expectations as of the date
of this release. These factors are difficult to accurately predict and may be
beyond the control of the company. The following factors are among those that
may cause actual results to differ materially from our forward-looking
statements: market demand for coal, electricity and steel; our ability to
integrate the Nicewonder acquisition into Alpha's existing operations; our
ability to maintain an adequate labor force and other employee workforce
factors; weather conditions or catastrophic weather-related damage; the
company's production capabilities; the company's relationships with, and other
conditions affecting its customers; the timing of reductions or increases in
customer coal inventories; long-term coal supply arrangements; environmental
laws, including those directly affecting Alpha's coal mining and production, and
those affecting its customers' coal usage; railroad, vessel and other
transportation performance and costs; Alpha's assumptions concerning
economically recoverable coal reserve estimates; regulatory and court decisions;
future legislation and changes in regulations or governmental policies;
uncertainties of pending litigation; changes in postretirement benefit and
pension obligations; and Alpha's liquidity, results of operations and financial
condition. These and other additional risk factors and uncertainties are
discussed in greater detail in the company's Annual Report on Form 10-K and
other documents filed with the Securities and Exchange Commission.
Forward-looking statements made by the company in this news release or elsewhere
speak only as of the date made. New uncertainties and risks come up from time to
time, and it is impossible for the company to predict these events or how they
may affect the company. The company has no duty to, and does not intend to,
update or revise the forward-looking statements in this news release after the
date it is issued. In light of these risks and uncertainties, investors should
keep in mind that the results, events or developments disclosed in any
forward-looking statement made in this news release may not
occur.