Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

Cloud Peak Energy's Conservative Strategy Continues To Pay Off In Q3

Executive summary

Cloud Peak Energy slightly beat analyst estimates for EPS in Q3, although revenue came in below expectations. Overall the company reported falling product margins despite its cost-cutting measures and a continued focus on cash conservation. While this strategy will minimize its potential downside as it waits for international coal demand and higher U.S. natural gas prices to increase coal prices in 2015 and beyond, management's decision to begin entering into sales contracts for 2015 at prices only slightly above those it has already entered into for 2014 will also limit its upside for the foreseeable future.

Cloud Peak Energy at a glance

Cloud Peak Energy (NYSE:CLD) is the fourth largest U.S. coal producer with an annual...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details