Company: Contura Energy, Inc.
Symbol: CTRA
Description: They are a large-scale, diversified provider of metallurgical (“met”) and steam coal to a global customer base.
Shares: 6 million
Price Range: $23.00-$27.00
Trade Date: 8/10
Underwriter(s): Citigroup, Jefferies
Co-Manager: Credit Suisse, UBS Investment Bank, Barclays, BMO Capital Markets, Clarksons Platou Securities, FBR, Seaport Global Securities
Investor Access: This deal can be accessed via the two main underwriters and the six co-managers.
Business:
Their predecessor total revenues were $1.59 billion, $1.36 billion, and $1.30 billion and their net loss was $52.3 million, $417.6 million and $78.1 million in 2014, 2015, and 2016, respectively. Their successor total revenues in the first quarter of 2017 increased 122% to $573.4 million and their bottom line increased to a $37.3 million gain from a $32.6 million loss, compared to the predecessor results in the same quarter in the previous year.
They operate high-quality coal mines across three major U.S. coal basins complemented by a robust Trading and Logistics business. Their portfolio of mining operations consists of six mining complexes, comprised of nine underground mines, four surface mines and four coal preparation plants. To supplement their mining operations, they operate a Trading and Logistics business that focuses on the sale of third-party coal into the international market. A strategic cornerstone of this business is their 65.0% interest in Dominion Terminal Associates (“DTA”), a coal export terminal. DTA provides them with the ability to fulfill a broad range of customer coal quality requirements through coal blending, while also providing storage capacity and transportation flexibility. Their met coal business, together with their Trading and Logistics business, is expected to sell approximately 8.8 million tons of coal in 2017.
Competition: They compete for U.S. sales with numerous coal producers in the Appalachian region, and the Illinois basin, and with western coal producers. In the export met coal market we compete with producers from Australia and Canada and with other international producers on many of the same factors as in the U.S. market. Competition in the export market is also impacted by fluctuations in relative foreign exchange rates and costs of inland and ocean transportation, among other factors.
ENERGY IPOS in 2017:
SPECIAL DIVIDEND:
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