Foresight Energy (FELP) Posts Narrower-Than-Expected Q2 Loss

Foresight Energy LP (NYSE:FELP) reported second-quarter 2017 adjusted loss of 1 cent per unit. The figure was narrower than the Zacks Consensus Estimate of a loss of 3 cents by 66.7%. The loss was also narrower than the year-over-year loss of 12 cents.

Including one-time items, the company reported GAAP loss of 12 cents, narrower than the year-ago quarter’s loss of 21 cents.

Total Revenue

Total revenue for the second quarter was $207.1 million, missing the Zacks Consensus Estimate of $228 million by 9.3%. Total revenue also dropped year over year by 8.4% from $226 million.

The drop was primarily due to a marginal decline in coal sales, year over year.

Highlights of the Release

Operating income amounted $19.1 million in the second quarter, up from $12.6 million in the prior-year quarter.

Interest expenses increased to $35.4 million from $34.3 million in the year-ago quarter.

Financial Highlights

Cash and cash equivalents nosedived to $7.2 million as of Jun 30, from $103.7 million as of Dec 31, 2016.

Long-term debt and capital lease obligations were $1.3 billion as of Jun 30, increasing from $1 billion for the quarter ended Dec 31, 2016.

For the first six months of 2017, cash flow from operations was $73.6 million.

Capital expenditure in the second quarter of 2017 was $21.7 million, up by $13.5 from the prior-year period.

Guidance

Sales Volume- The company reaffirmed its projected sales volume in the range of 20.5–22.0 million tons, with over 5.0 million tons for the international market for 2017.

Adjusted EBITDA- The company maintained its adjusted EBITDA for 2017 in the range of $285–$310 million based on its sales volumes and operating cost structure.

Capital Expenditures- Foresight Energy expects the capital expenditure to be in the range of $70–$77 million for 2017.

Peers Performance

Among other players from the industry that have reported their second-quarter earnings, SunCoke Energy’s (NYSE:SXC) loss was narrower than the Zacks Consensus Estimate, CNX Coal Resources LP (NYSE:CNXC) missed the same, whereas, Cloud Peak Energy's (NYSE:CLD) loss was in line with the same.

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Cloud Peak Energy Inc (CLD): Free Stock Analysis Report

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CNX Coal Resources LP (CNXC): Free Stock Analysis Report

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Zacks Investment Research