Xinergy attributed the increased coal sale revenues to the incremental production addition of Raven Crest operations in West Virginia, the True Energy acquisition in July and an increase in sales from its Straight Creek property in Kentucky.
Coal production for 2011 reached 2 million tons, up from 1.3Mt year-on-year.
Despite buoyed production and sales, Xinergy reported a net loss of $14.1 million in 2011, a huge jump from a $2.1 million loss in 2010.
The loss was attributed to a jump in finance and related costs of the issuance of $200 million in secured notes, which were issued back in May.
During the 2011 fourth-quarter, Xinergy recorded coal revenues totalling $33.9 million, down from $38.1 million in the previous corresponding period.
Xinergy cited customers deferring shipments as the main reason for the drop in coal revenue over the quarter.
Xinergy chairman Jon Nix said the company had focused on expanding its asset base in 2011, contributing to the increase in coal sales and production.
“This past year, Xinergy made important acquisitions to grow its portfolio of assets with the goal of ensuring sustainable growth in the future, adding high quality mid and high-volatility metallurgical surface mines to the production profile,” he said.
“We originally controlled approximately 89.5 million tons of proven and probable reserves, we expect that to grow to well over 100 million by year end.”
Xinergy expects to produce and sell approximately 560,000-730,000Mt from metallurgical mining in 2012.
Last month, Xinergy announced it would reduce its workforce and idle two surface mines, due to changing economic conditions.
While the decision was not “made lightly”, Xinergy said slashing production would allow the company to sustain its thermal coal reserves while also allowing it to get the mines back into production when market conditions improved.
Xinergy's key producing assets include the Straight Creek complex in Bell and Harlan counties, Kentucky and the Raven Crest complex in Boone County, West Virginia.
Cash at hand for Xinergy stands at $73 million.
