ROCKY MOUNTAIN COAL MINING INSTITUTE: EXPORT OPPORTUNITIES July 1, 2014

Transcription

1 ROCKY MOUNTAIN COAL MINING INSTITUTE: EXPORT OPPORTUNITIES July 1, 2014

2 Cloud Peak Energy Inc. Financial Data Cloud Peak Energy Inc. is the sole owner of Cloud Peak Energy Resources LLC. Unless expressly stated otherwise in this presentation, all financial data included herein is consolidated financial data of Cloud Peak Energy Inc. Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Forward-looking statements are not statements of historical facts, and often contain words such as may, will, expect, believe, anticipate, plan, estimate, seek, could, should, intend, potential, or words of similar meaning. Forward-looking statements are based on management s current expectations, beliefs, assumptions and estimates regarding our company, industry, economic conditions, government regulations, energy policies and other factors. These statements are subject to significant risks, uncertainties and assumptions that are difficult to predict and could cause actual results to differ materially and adversely from those expressed or implied in the forward-looking statements. For a description of some of the risks and uncertainties that may adversely affect our future results, refer to the risk factors described from time to time in the reports and registration statements we file with the Securities and Exchange Commission, including those in Item 1A "Risk Factors" of our most recent Form 10-K and any updates thereto in our Forms 10-Q and current reports on Forms 8-K. There may be other risks and uncertainties that are not currently known to us or that we currently believe are not material. We make forward-looking statements based on currently available information, and we assume no obligation to, and expressly disclaim any obligation to, update or revise publicly any forward-looking statements made in our presentation, whether as a result of new information, future events or otherwise, except as required by law. 1

3 Cloud Peak Energy Operations 2013 by the numbers: Approx. 1,700 employees in Wyoming, Montana and Colorado 4th-largest U.S. coal producer 86 million tons produced Approx. 4 percent of U.S. electricity generation 4.7 million tons exported to Asia through British Columbia 2

4 Good Safety Record Indicates Well-Run Operations Top Coal Producing Companies Incident Rates (MSHA) Source: MSHA. Note: Total Incident Rate = (total number of employee incidents x 200,000) / total man-hours. 3

5 IEA: "Coal is the backbone of global electricity generation" Source: Energy Facts Weekly, May 12, 2012 IEA projects that coal will overtake oil to become the world s principal energy source in

6 Increasing International Demand Supports PRB Exports South Korea Japan US exports ~ 10 million tonnes North America India China Taiwan Indonesia Asia Pacific Sea Borne market = 800 million tonnes Australia Coal is currently transported by rail through the Pacific-Northwest to ports in British Columbia Asian utilities seeking diversity and surety of long-term supply Cloud Peak Energy Logistics is the largest U.S. exporter of thermal coal into South Korea Spring Creek coal well accepted in Taiwan and China trials in Japan have commenced 5

7 China and India s Strong Demand Requires Increasing Thermal Imports Urban and industrialization investment will continue to fuel these economies Importing coal essential for anticipated future electric generation growth Estimated Asian Coal-Fired Generation (BkW) +63% Production costs in Australia and Indonesia rapidly increasing making PRB coal importing more financially viable Diversity of supply crucial Source: AME China Net Imports India Net Imports Source: Fenwel Energy Consulting and Industry Reports 6

8 Who produces coal and who uses it? Producers End Users Billion tons China 3.56 USA 1.08 India 0.63 Australia 0.46 Russia 0.35 Indonesia 0.34 South Africa 0.28 Germany 0.20 Approx data based on 2011 BP Statistical Review of World Energy Billions Tons China 3.86 US 1.03 India 0.77 Japan 0.28 Russian Federation 0.21 South Africa 0.20 Germany 0.17 South Korea 0.17 Poland 0.12 Australia 0.10 Taiwan 0.09 Indonesia

9 Proposed Export Terminal Expansions Gateway Pacific Terminal Cherry Point, WA Millennium Bulk Terminal Longview, WA Morrow Pacific Project Port Morrow, OR Source: SNL Energy 8

10 What does this mean? Increased rail use, construction New mine development /infrastructure construction Approximately $1.5 billion in new construction for the three proposed terminals 12,000 new jobs $115 million in payroll at three proposed terminals 9

11 Tours: July 2013 Labor Tour Wyoming AFL- CIO IA of Sheet Metal, Air, Rail & Transportation Workers United Transportation Union (Oregon and Washington) Montana Sheetmetal Workers May 2014 WA Leaders Mayors, City Council members Business leaders 10

12 Alliance for Northwest Jobs and Exports Coalition of labor, industry, agriculture, transportation and civic organizations Cloud Peak Energy, Peabody Energy, Arch Coal, Ambre Energy Wyoming Mining Association, National Mining Association BNSF, Portland & Western Railroad, Montana Rail Link United Transportation Union National Association of Manufacturers Washington Farm Bureau, Washington Farm Labor Association 11

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14 What can you do to help? Join the Alliance for Northwest Jobs and Exports Talk to people about the realities regarding the benefits, environmental impacts, dust from trains Letters of support, Op-Eds, Letters to the Editor Encourage and support resolutions in favor of export facilities 13

15 Thank You! Jason Begger Government Affairs Manager Cloud Peak Energy (720)