The company said shipments were impacted by severe winter weather, freezing of the Great Lakes and continued rail service issues.
The company completed its previously announced refinancing transactions, namely a $500 million credit facility, and the issuance of $200 million of 6.38% senior unsecured notes due 2024.
The proceeds, plus cash on hand, were used to tender and repurchase the company’s $300 million 8.25% senior unsecured notes due 2017.
“Winter weather and rail service interruptions in the first quarter continued to impact our shipments.
“As a result, we are reducing the top end of our tonnage and Adjusted EBITDA guidance ranges, which leaves us essentially fully sold out for 2014.
“We are now focused on selling into the improving markets for 2015”, Cloud’s president and CEO Colin Marshall said.
The refinancing extended maturity, took pressure off covenants, and was predicted to reduce future interest costs by approximately $12 million per year.
One-time refinancing related charges totalled $21.5 million for the tender premium and write off of deferred financing charges impacted interest expense for the quarter.
During Q1, of Cloud’s 1400 employees, four suffered injury, with two due to icy conditions.
74 MSHA inspections took place and the company was issued eight substantial and significant citations. The fines awarded have not yet been assessed.
For the first quarter 20.4million short tons of coal was sold from the owned and operated segment, bringing in revenue of $269.8million.
Revenue decreased in the first quarter of 2014 compared to 2013 due to a slightly lower average realised price per ton sold and fewer tons shipped.
Cost of product sold was held at a similar level to the first quarter last year with the increase in cost per ton being largely due to the effect of reduced shipments.
Shipments exported to Asian customers decreased slightly in the first quarter of 2014 compared to 2013 due to rail service issues on the northwest rail corridor.
Cloud Peak Energy continued to work closely with the BNSF railway and Westshore Terminals to maximise vessel loadings and meet continuing strong demand from the Asian market.
The results said: “For 2014 we are essentially fully sold out. We have contracted to sell 89Mt from our three owned and operated mines. Of this committed 2014 production, 84Mt are under fixed-price contracts with a weighted-average price of $13.09 per ton.”
Cloud Peak predicted coal shipments from its three owned and operated mines to total between 86 and 90Mt.
