Massey Energy Q2 2009 Earnings Transcript

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2009-07-29 20:21:11.0

Tags: Banc Of America Securities, Pricing, Marketing Research, Sales Strategy, Litigation, Marketing, Sales, Business Operations, Seeking Alpha, Massey Energy Co.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). Thank you our first question is coming from Kuni Chen of Banc of America Securities.

Kuni Chen - Banc of America Securities

Hi god morning everybody.

Eric Tolbert

Good morning.

Kuni Chen - Banc of America Securities

I guess just first off on met coal I noticed that one of your peers had a sequential decline in met coal realizations while your pricing was up a bit. Seems a little kind of intuitive as some of the '08 pricing probably rolls off. So can you help us reconcile that difference in the trends, is that due to some shift in the mix or export sales just hoping for some more color? Thanks.

Don Blankenship

Yeah, it's hard spot of things so it's difficult to but essentially we had a lot of tons that had not been taken in the original time frame of April 1. So we had some carry over the half past tons in the second quarter. We also had some value out of an agreement or settlement with one of the customers.

And we had some offsetting revenue resulting from some customers that were renegotiating some contracts if you will, that we have to take some or give them some breaks. So it's hotchpotch of things but we feel like its representative of the second quarter. And I think if you look at our projections in the second half it will be down some sort of consistent with the other companies you are referring to.

Kuni Chen - Banc of America Securities

Right, okay and then just as a follow-up on your -- can you give us an update on expected met coal volumes for the year. Are you still in that 7 to 7.5 million range? Obviously steel utilization rates are now starting to recover, so just hoping for an update there?

Don Blankenship

Yes, constantly move being just even sense, no regret to lot of the stuffs that we put out, we've had some further request for tonnage that we didn't expect, so, I think there will be to the higher side of that range if not slightly higher than the range about in the year, so we're encourage by some of the shipment schedules that we're now being provided.

Kuni Chen - Banc of America Securities

Thanks I'll turn it over.

Don Blankenship

Thank you.

Operator

Thank you. Our next question is coming from Pearce Hammond of Simmons and Company.

 

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