Delaware
|
95-0740960
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
|
4
North 4th Street, Richmond, Virginia
|
23219
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
(804)
788-1800
|
||
(Registrant's
telephone number, including area code)
|
Large
accelerated filer [X]
|
Accelerated
filer [ ]
|
Non-accelerated
filer [ ]
|
TABLE
OF CONTENTS
|
PAGE
|
1
|
|
12
|
|
20
|
|
20
|
|
21
|
|
21
|
|
22
|
|
22
|
|
23
|
|
24
|
MASSEY
ENERGY COMPANY
|
||||||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
(In
Thousands, Except Per Share Amounts)
|
||||||||||||||||
UNAUDITED
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Revenues
|
||||||||||||||||
Produced
coal revenue
|
$ |
516,212
|
$ |
492,468
|
$ |
1,035,905
|
$ |
968,129
|
||||||||
Freight
and handling revenue
|
39,901
|
38,521
|
83,753
|
79,408
|
||||||||||||
Purchased
coal revenue
|
31,322
|
12,312
|
56,496
|
39,745
|
||||||||||||
Other
revenue
|
30,367
|
12,815
|
48,968
|
28,304
|
||||||||||||
Total
revenues
|
617,802
|
556,116
|
1,225,122
|
1,115,586
|
||||||||||||
Costs
and expenses
|
||||||||||||||||
Cost
of produced coal revenue
|
408,992
|
413,768
|
811,508
|
808,977
|
||||||||||||
Freight
and handling costs
|
39,901
|
38,521
|
83,753
|
79,408
|
||||||||||||
Cost
of purchased coal revenue
|
27,185
|
11,425
|
49,345
|
34,386
|
||||||||||||
Depreciation,
depletion and amortization, applicable to:
|
||||||||||||||||
Cost
of produced coal revenue
|
59,454
|
56,411
|
120,791
|
112,254
|
||||||||||||
Selling,
general and administrative
|
793
|
840
|
1,605
|
1,691
|
||||||||||||
Selling,
general and administrative
|
19,664
|
13,238
|
38,353
|
30,693
|
||||||||||||
Other
expense
|
1,686
|
1,576
|
4,082
|
3,550
|
||||||||||||
Total
costs and expenses
|
557,675
|
535,779
|
1,109,437
|
1,070,959
|
||||||||||||
Income
before interest and taxes
|
60,127
|
20,337
|
115,685
|
44,627
|
||||||||||||
Interest
income
|
6,819
|
5,176
|
12,228
|
10,115
|
||||||||||||
Interest
expense
|
(21,630 | ) | (21,631 | ) | (43,067 | ) | (43,243 | ) | ||||||||
Income
before taxes
|
45,316
|
3,882
|
84,846
|
11,499
|
||||||||||||
Income
tax expense
|
(10,378 | ) | (657 | ) | (17,301 | ) | (2,024 | ) | ||||||||
Income
before cumulative effect of accounting change
|
34,938
|
3,225
|
67,545
|
9,475
|
||||||||||||
Cumulative
effect of accounting change, net of tax
|
-
|
-
|
-
|
(639 | ) | |||||||||||
Net
income
|
$ |
34,938
|
$ |
3,225
|
$ |
67,545
|
$ |
8,836
|
||||||||
Income
per share - Basic
|
||||||||||||||||
Income
before cumulative effect of accounting change
|
$ |
0.43
|
$ |
0.04
|
$ |
0.84
|
$ |
0.12
|
||||||||
Cumulative
effect of accounting change
|
-
|
-
|
-
|
(0.01 | ) | |||||||||||
Net
income
|
$ |
0.43
|
$ |
0.04
|
$ |
0.84
|
$ |
0.11
|
||||||||
Income
per share - Diluted
|
||||||||||||||||
Income
before cumulative effect of accounting change
|
$ |
0.43
|
$ |
0.04
|
$ |
0.83
|
$ |
0.12
|
||||||||
Cumulative
effect of accounting change
|
-
|
-
|
-
|
(0.01 | ) | |||||||||||
Net
income
|
$ |
0.43
|
$ |
0.04
|
$ |
0.83
|
$ |
0.11
|
||||||||
Shares
used to calculate income per share
|
||||||||||||||||
Basic
|
80,638
|
81,076
|
80,600
|
81,308
|
||||||||||||
Diluted
|
81,672
|
81,856
|
81,347
|
82,024
|
||||||||||||
Dividends
per share
|
$ |
0.04
|
$ |
0.04
|
$ |
0.08
|
$ |
0.08
|
MASSEY
ENERGY COMPANY
|
||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
(In
Thousands, Except Share Amounts)
|
||||||||
UNAUDITED
|
||||||||
June
30,
|
December
31,
|
|||||||
|
2007
|
2006*
|
||||||
ASSETS
|
||||||||
Current
Assets
|
||||||||
Cash
and cash equivalents
|
$ |
321,869
|
$ |
239,245
|
||||
Trade
and other accounts receivable, less allowance of $445 and
$576,
|
||||||||
respectively
|
201,318
|
197,105
|
||||||
Inventories
|
207,407
|
191,056
|
||||||
Other
current assets
|
167,126
|
172,322
|
||||||
Total
current assets
|
897,720
|
799,728
|
||||||
Net
Property, Plant and Equipment
|
1,797,352
|
1,776,781
|
||||||
Other
Noncurrent Assets
|
||||||||
Pension
assets
|
32,662
|
34,974
|
||||||
Other
|
124,668
|
129,213
|
||||||
Total
other noncurrent assets
|
157,330
|
164,187
|
||||||
Total
assets
|
$ |
2,852,402
|
$ |
2,740,696
|
MASSEY
ENERGY COMPANY
|
||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
(In
Thousands, Except Share Amounts)
|
||||||||
UNAUDITED
|
||||||||
June
30,
|
December
31,
|
|||||||
|
2007
|
2006*
|
||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Current
Liabilities
|
||||||||
Accounts
payable, principally trade and bank overdrafts
|
$ |
148,402
|
$ |
117,157
|
||||
Current
portion of debt
|
1,797
|
2,583
|
||||||
Payroll
and employee benefits
|
35,033
|
40,380
|
||||||
Income
taxes payable
|
25,372
|
19,412
|
||||||
Other
current liabilities
|
180,943
|
175,005
|
||||||
Total
current liabilities
|
391,547
|
354,537
|
||||||
Noncurrent
Liabilities
|
||||||||
Long-term
debt
|
1,102,418
|
1,102,324
|
||||||
Deferred
taxes
|
113,164
|
116,690
|
||||||
Other
noncurrent liabilities
|
473,676
|
469,854
|
||||||
Total
noncurrent liabilities
|
1,689,258
|
1,688,868
|
||||||
Shareholders’
Equity
|
||||||||
Capital
stock
|
||||||||
Preferred
– authorized 20,000,000 shares without par value; none
issued
|
-
|
-
|
||||||
Common
– authorized 150,000,000 shares of $0.625 par value;
issued
|
||||||||
82,459,957
and 82,365,259 shares at June 30, 2007 and
|
||||||||
December
31, 2006, respectively
|
51,523
|
51,458
|
||||||
Treasury
stock, 1,299,000 shares at cost
|
(49,995 | ) | (49,995 | ) | ||||
Additional
capital
|
228,080
|
220,650
|
||||||
Retained
earnings
|
582,171
|
515,894
|
||||||
Other
comprehensive loss
|
(40,182 | ) | (40,716 | ) | ||||
Total
shareholders’ equity
|
771,597
|
697,291
|
||||||
Total
liabilities and shareholders’ equity
|
$ |
2,852,402
|
$ |
2,740,696
|
MASSEY
ENERGY COMPANY
|
||||||||
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
||||||||
(In
Thousands)
|
||||||||
UNAUDITED
|
||||||||
Six
Months Ended June 30,
|
||||||||
|
2007
|
2006
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net
income
|
$ |
67,545
|
$ |
8,836
|
||||
Adjustments
to reconcile Net income to Cash provided by operating
|
||||||||
activities:
|
||||||||
Cumulative
effect of accounting change
|
-
|
639
|
||||||
Depreciation,
depletion and amortization
|
122,396
|
113,945
|
||||||
Share-based
compensation expense
|
5,867
|
2,963
|
||||||
Deferred
income taxes
|
(5,299 | ) | (2,095 | ) | ||||
Gain
on disposal of assets
|
(11,831 | ) | (8,450 | ) | ||||
Gain
on reserve exchange
|
(10,284 | ) |
-
|
|||||
Asset
retirement obligations accretion
|
5,850
|
5,085
|
||||||
Changes
in operating assets and liabilities:
|
||||||||
Increase
in accounts receivable
|
(7,056 | ) | (26,172 | ) | ||||
Increase
in inventories
|
(16,351 | ) | (7,349 | ) | ||||
Decrease
in other current assets
|
5,196
|
28,331
|
||||||
Decrease
in pension and other assets
|
5,044
|
6,251
|
||||||
Increase
(decrease) in accounts payable and bank overdrafts
|
31,245
|
(7,090 | ) | |||||
Increase
in accrued income taxes
|
5,960
|
20,254
|
||||||
Increase
(decrease) in other accrued liabilities
|
2,399
|
(15,463 | ) | |||||
Increase
in other noncurrent liabilities
|
12,723
|
10,017
|
||||||
Asset
retirement obligations payments
|
(4,679 | ) | (1,828 | ) | ||||
Cash
provided by operating activities
|
208,725
|
127,874
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Capital
expenditures
|
(136,606 | ) | (161,566 | ) | ||||
Proceeds
from sale of assets
|
17,024
|
9,792
|
||||||
Cash
utilized by investing activities
|
(119,582 | ) | (151,774 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Stock
repurchase
|
-
|
(49,995 | ) | |||||
Repayments
of capital lease obligations
|
(1,698 | ) | (6,644 | ) | ||||
Cash
dividends paid
|
(6,449 | ) | (6,328 | ) | ||||
Proceeds
from stock options exercised
|
1,144
|
796
|
||||||
Income
tax benefit from stock option exercises
|
484
|
604
|
||||||
Cash
utilized by financing activities
|
(6,519 | ) | (61,567 | ) | ||||
Increase
(decrease) in cash and cash equivalents
|
82,624
|
(85,467 | ) | |||||
Cash
and cash equivalents at beginning of period
|
239,245
|
319,418
|
||||||
Cash
and cash equivalents at end of period
|
$ |
321,869
|
$ |
233,951
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(In
Thousands)
|
||||||||
Saleable
coal
|
$ |
139,208
|
$ |
124,816
|
||||
Raw
coal
|
16,137
|
13,210
|
||||||
Subtotal
coal inventory
|
155,345
|
138,026
|
||||||
Supplies
inventory
|
52,062
|
53,030
|
||||||
Total
inventory
|
$ |
207,407
|
$ |
191,056
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(In
Thousands)
|
||||||||
Longwall
panel costs
|
$ |
24,051
|
$ |
38,843
|
||||
Deposits
|
119,304
|
106,833
|
||||||
Other
|
23,771
|
26,646
|
||||||
Total
other current assets
|
$ |
167,126
|
$ |
172,322
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(In
Thousands)
|
||||||||
Property,
plant and equipment, at cost
|
$ |
3,569,097
|
$ |
3,477,550
|
||||
Accumulated
depreciation, depletion and amortization
|
(1,771,745 | ) | (1,700,769 | ) | ||||
Net
property, plant and equipment
|
$ |
1,797,352
|
$ |
1,776,781
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(In
Thousands)
|
||||||||
6.875%
senior notes due 2013, net of discount
|
$ |
755,097
|
$ |
754,804
|
||||
6.625%
senior notes due 2010
|
335,000
|
335,000
|
||||||
2.25%
convertible senior notes due 2024
|
9,647
|
9,647
|
||||||
4.75%
convertible senior notes due 2023
|
730
|
730
|
||||||
Capital
lease obligations
|
9,534
|
11,232
|
||||||
Fair
value hedge adjustment
|
(5,793 | ) | (6,506 | ) | ||||
Total
debt
|
1,104,215
|
1,104,907
|
||||||
Amounts
due within one year
|
(1,797 | ) | (2,583 | ) | ||||
Total
long-term debt
|
$ |
1,102,418
|
$ |
1,102,324
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
Thousands)
|
||||||||||||||||
Service
cost
|
$ |
2,429
|
$ |
2,265
|
$ |
4,858
|
$ |
4,531
|
||||||||
Interest
cost
|
3,756
|
3,393
|
7,511
|
6,786
|
||||||||||||
Expected
return on plan assets
|
(5,607 | ) | (4,988 | ) | (11,213 | ) | (9,976 | ) | ||||||||
Recognized
loss
|
1,017
|
1,537
|
2,034
|
3,075
|
||||||||||||
Amortization
of prior service cost
|
10
|
(4 | ) |
20
|
(8 | ) | ||||||||||
Net
periodic pension expense
|
$ |
1,605
|
$ |
2,203
|
$ |
3,210
|
$ |
4,408
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(In
Thousands)
|
||||||||
Reclamation
|
$ |
151,580
|
$ |
142,687
|
||||
Workers'
compensation and black lung
|
91,563
|
89,227
|
||||||
Other
postretirement benefits
|
141,380
|
138,109
|
||||||
Other
|
89,153
|
99,831
|
||||||
Total
other noncurrent liabilities
|
$ |
473,676
|
$ |
469,854
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
Thousands)
|
(In
Thousands)
|
|||||||||||||||
Self-insured
black lung benefits:
|
||||||||||||||||
Service
cost
|
$ |
611
|
$ |
632
|
$ |
1,223
|
$ |
1,264
|
||||||||
Interest
cost
|
817
|
711
|
1,634
|
1,421
|
||||||||||||
Amortization
of actuarial gain
|
(663 | ) | (957 | ) | (1,326 | ) | (1,913 | ) | ||||||||
Subtotal
black lung benefits expense
|
765
|
386
|
1,531
|
772
|
||||||||||||
Other
workers' compensation benefits
|
6,816
|
8,597
|
14,417
|
17,827
|
||||||||||||
Total
black lung and workers' compensation benefits expense
|
$ |
7,581
|
$ |
8,983
|
$ |
15,948
|
$ |
18,599
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
Thousands)
|
(In
Thousands)
|
|||||||||||||||
Service
cost
|
$ |
917
|
$ |
940
|
$ |
1,834
|
$ |
1,879
|
||||||||
Interest
cost
|
2,117
|
1,990
|
4,233
|
3,980
|
||||||||||||
Recognized
loss
|
466
|
577
|
932
|
1,154
|
||||||||||||
Amortization
of prior service credit
|
(188 | ) | (188 | ) | (375 | ) | (375 | ) | ||||||||
Net
periodic postretirement benefit cost
|
$ |
3,312
|
$ |
3,319
|
$ |
6,624
|
$ |
6,638
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
Thousands, Except Per Share Amounts)
|
(In
Thousands, Except Per Share Amounts)
|
|||||||||||||||
Numerator:
|
||||||||||||||||
Income
before cumulative effect of accounting change
|
$ |
34,938
|
$ |
3,225
|
$ |
67,545
|
$ |
9,475
|
||||||||
Cumulative
effect of accounting change, net of tax
|
-
|
-
|
-
|
(639 | ) | |||||||||||
Net
income - numerator for basic
|
34,938
|
3,225
|
67,545
|
8,836
|
||||||||||||
Effect
of convertible notes
|
50
|
-
|
100
|
-
|
||||||||||||
Adjusted
net income - numerator for diluted
|
$ |
34,988
|
$ |
3,225
|
$ |
67,645
|
$ |
8,836
|
||||||||
Denominator:
|
||||||||||||||||
Weighted
average shares - denominator for basic
|
80,638
|
81,076
|
80,600
|
81,308
|
||||||||||||
Effect
of stock options/restricted stock
|
710
|
780
|
423
|
716
|
||||||||||||
Effect
of convertible notes
|
324
|
-
|
324
|
-
|
||||||||||||
Adjusted
weighted average shares - denominator for diluted
|
81,672
|
81,856
|
81,347
|
82,024
|
||||||||||||
Income
per share:
|
||||||||||||||||
Basic
|
||||||||||||||||
Before
cumulative effect of accounting change
|
$ |
0.43
|
$ |
0.04
|
$ |
0.84
|
$ |
0.12
|
||||||||
Cumulative
effect of accounting change
|
-
|
-
|
-
|
(0.01 | ) | |||||||||||
Net
income
|
$ |
0.43
|
$ |
0.04
|
$ |
0.84
|
$ |
0.11
|
||||||||
Diluted
|
||||||||||||||||
Before
cumulative effect of accounting change
|
$ |
0.43
|
$ |
0.04
|
$ |
0.83
|
$ |
0.12
|
||||||||
Cumulative
effect of accounting change
|
-
|
-
|
-
|
(0.01 | ) | |||||||||||
Net
income
|
$ |
0.43
|
$ |
0.04
|
$ |
0.83
|
$ |
0.11
|
(i)
|
our
cash flows, results of operation or financial
condition;
|
|
(ii)
|
the
consummation of acquisition, disposition or financing transactions
and the
effect thereof on our business;
|
|
(iii)
|
governmental
policies and regulatory actions affecting the coal
industry;
|
|
(iv)
|
legal
and administrative proceedings, settlements, investigations and
claims and
the availability of insurance coverage related thereto;
|
|
(v)
|
weather
conditions or catastrophic weather-related damage;
|
|
(vi)
|
our
ability to produce coal to meet market expectations and customer
requirements;
|
|
(vii)
|
our
ability to obtain and renew permits necessary for our existing
and planned
operations in a timely manner;
|
|
(viii)
|
the
availability of transportation for our produced coal;
|
|
(ix)
|
the
expansion of our mining capacity;
|
|
(x)
|
our
ability to manage production costs;
|
|
(xi)
|
the
market demand for coal, electricity and steel;
|
|
(xii)
|
the
cost and perceived benefits of alternative sources of energy such
as
natural gas and nuclear energy;
|
|
(xiii)
|
competition
among coal and other energy producers, at home and
abroad;
|
|
(xiv)
|
our
ability to timely obtain necessary supplies and
equipment;
|
|
(xv)
|
our
reliance upon and relationship with our customers and
suppliers;
|
|
(xvi)
|
the
creditworthiness of our customers and suppliers;
|
|
(xvii)
|
our
ability to attract, train and retain a skilled workforce to meet
replacement or expansion needs;
|
|
(xviii)
|
our
assumptions and projections concerning economically recoverable
coal
reserve estimates;
|
|
(xix)
|
future
economic or capital market conditions;
|
|
(xx)
|
the
availability and costs of credit, surety bonds and letters of credit
that
we require;
|
|
(xxi)
|
our
assumptions and projections regarding pension and other post-retirement
benefit liabilities; and
|
|
(xxii)
|
the
successful implementation of our strategic plans and
objectives.
|
|
___________
|
|
Note:
Average cash cost per ton is calculated as the sum of Cost of produced
coal revenue and Selling, general and administrative expense (excluding
Depreciation, depletion and amortization), divided by the number
of
produced tons sold. Although Average cash cost per ton is not a
measure of
performance calculated in accordance with GAAP, management believes
that
it is useful to investors in evaluating us because it is widely
used in
the coal industry as a measure to evaluate a company’s control over its
cash costs. Average cash cost per ton should not be considered
in
isolation or as a substitute for measures of performance calculated
in
accordance with GAAP. In addition, because Average cash cost per
ton is
not calculated identically by all companies, the presentation here
may not
be comparable to other similarly titled measures of other companies.
The
table below reconciles the GAAP measure of Total costs and expenses
to
Average cash cost per ton.
|
Three
Months Ended June 30,
|
||||||||||
2007
|
2006
|
|||||||||
$per
ton
|
$per
ton
|
|||||||||
(In
Millions, Except Per Ton Amounts)
|
||||||||||
Total
costs and expenses
|
$ |
557.7
|
$ |
535.8
|
||||||
Less:
Freight and handling costs
|
39.9
|
38.5
|
||||||||
Less:
Cost of purchased coal revenue
|
27.2
|
11.5
|
||||||||
Less:
Depreciation, depletion and amortization
|
60.2
|
57.2
|
||||||||
Less:
Other expense
|
1.7
|
|
1.6
|
|
||||||
Average
cash cost
|
$ |
428.7
|
$ 42.68
|
$ |
427.0
|
$ 41.92
|
Three
Months Ended
|
||||||||||||||||
June
30,
|
||||||||||||||||
2007
|
2006
|
Increase
(Decrease)
|
%
Increase (Decrease)
|
|||||||||||||
(In
millions, except per ton amounts)
|
||||||||||||||||
Produced
tons sold:
|
||||||||||||||||
Utility
|
6.9
|
7.5
|
(0.6 | ) | (8 | )% | ||||||||||
Metallurgical
|
2.2
|
1.9
|
0.3
|
16 | % | |||||||||||
Industrial
|
0.9
|
0.8
|
0.1
|
13 | % | |||||||||||
Total
|
10.0
|
10.2
|
(0.2 | ) | (2 | )% | ||||||||||
Produced
coal revenue per ton sold:
|
||||||||||||||||
Utility
|
$ |
45.17
|
$ |
42.71
|
$ |
2.46
|
6 | % | ||||||||
Metallurgical
|
72.16
|
68.58
|
3.58
|
5 | % | |||||||||||
Industrial
|
49.34
|
53.25
|
(3.91 | ) | (7 | )% | ||||||||||
Weighted
average
|
$ |
51.40
|
$ |
48.34
|
$ |
3.06
|
6 | % |
Six
Months Ended
|
||||||||||||||||
June
30,
|
||||||||||||||||
2007
|
2006
|
Increase
(Decrease)
|
%
Increase (Decrease)
|
|||||||||||||
(In
millions, except per ton amounts)
|
||||||||||||||||
Produced
tons sold:
|
||||||||||||||||
Utility
|
13.5
|
14.6
|
(1.1 | ) | (8 | )% | ||||||||||
Metallurgical
|
4.5
|
4.0
|
0.5
|
13 | % | |||||||||||
Industrial
|
2.0
|
1.7
|
0.3
|
18 | % | |||||||||||
Total
|
20.0
|
20.3
|
(0.3 | ) | (1 | )% | ||||||||||
Produced
coal revenue per ton sold:
|
||||||||||||||||
Utility
|
$ |
45.09
|
$ |
41.96
|
$ |
3.13
|
7 | % | ||||||||
Metallurgical
|
72.94
|
65.33
|
7.61
|
12 | % | |||||||||||
Industrial
|
50.24
|
54.35
|
(4.11 | ) | (8 | )% | ||||||||||
Weighted
average
|
$ |
51.83
|
$ |
47.63
|
$ |
4.20
|
9 | % |
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(In
Thousands)
|
||||||||
6.875%
senior notes due 2013, net of discount
|
$ |
755,097
|
$ |
754,804
|
||||
6.625%
senior notes due 2010
|
335,000
|
335,000
|
||||||
2.25%
convertible senior notes due 2024
|
9,647
|
9,647
|
||||||
4.75%
convertible senior notes due 2023
|
730
|
730
|
||||||
Capital
lease obligations
|
9,534
|
11,232
|
||||||
Fair
value hedge adjustment
|
(5,793 | ) | (6,506 | ) | ||||
Total
debt
|
1,104,215
|
1,104,907
|
||||||
Amounts
due within one year
|
(1,797 | ) | (2,583 | ) | ||||
Total
long-term debt
|
$ |
1,102,418
|
$ |
1,102,324
|
Payments
Due by Years
|
||||||||||||||||||||
In
thousands
|
Total
|
Within
1 Year
|
2-3
Years
|
4-5
Years
|
After
5 Years
|
|||||||||||||||
Long-term
debt (1)
|
$ |
1,550,875
|
$ |
74,695
|
$ |
149,391
|
$ |
462,197
|
$ |
864,592
|
||||||||||
Capital
lease obligations
(2)
|
10,691
|
2,256
|
4,513
|
3,922
|
-
|
|||||||||||||||
Operating
lease obligations
|
131,131
|
33,830
|
59,665
|
30,395
|
7,241
|
|||||||||||||||
Total
Obligations (3)
|
$ |
1,692,697
|
$ |
110,781
|
$ |
213,569
|
$ |
496,514
|
$ |
871,833
|
|
___________
|
(1)
|
|
Long-term
debt obligations reflect the future interest and principal payments
of our
fixed rate senior unsecured notes outstanding as of June 30, 2007.
See
Note 5 to the Notes to Condensed Consolidated Financial Statements
for
additional information.
|
(2)
|
|
Capital
lease obligations include the amount of imputed interest over the
terms of
the leases.
|
(3)
|
The
contractual obligation table does not include obligations to taxing
authorities due to the uncertainty surrounding the ultimate settlement
of
amounts and timing of these
obligations.
|
Period
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans
or Programs
(1)
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plan
|
|||||||||||||
(In
Thousands, Except Average Price Paid Per Share)
|
|||||||||||||||||
April
1 through April 30
|
-
|
-
|
-
|
-
|
|||||||||||||
May
1 through May 31
|
-
|
-
|
-
|
-
|
|||||||||||||
June
1 through June 30
|
-
|
-
|
-
|
-
|
|||||||||||||
Total
|
-
|
-
|
21,077,283
|
(2)
|
(1)
|
|
The
Repurchase Program was authorized by the Board of Directors and
announced
on November 14, 2005 for an aggregate amount not to exceed $500
million.
The Repurchase Program does not require us to acquire any specific
number
of shares and may be terminated at any time.
|
(2)
|
Calculated
using $450 million that may yet be purchased under our share
repurchase
program and $21.35, the closing price of Common Stock as reported
on the
New York Stock Exchange on July 31,
2007.
|
(1)
|
Election
of Directors. We proposed to elect Richard M. Gabrys, Dan R.
Moore and
Baxter F. Phillips, Jr. as Class II directors to hold office
for three
years and until their respective successors are duly qualified
and
elected. Based upon the voting provisions of our Certificate
of
Incorporation related to the election of directors, the following
director
candidates having received the number of votes following their
name were
elected by our stockholders to the Board of Directors: Mr. Gabrys
(69,619,445 votes), Mr. Moore (69,813,396 votes), and Mr. Phillips,
Jr.
(69,947,637 votes). The following directors had terms of office
that did not expire at the 2007 Annual Meeting: Don L. Blankenship,
James
B. Crawford, E. Gordon Gee, Robert H. Foglesong, Bobby R. Inman,
Daniel S.
Loeb, and Todd Q. Swanson. There were no broker
non-votes.
|
(2)
|
Appointment
of Ernst & Young LLP. Our stockholders ratified the appointment of
Ernst & Young LLP as our independent registered public accounting firm
for the fiscal year ending December 31, 2007 with 70,208,665
“Votes For,”
265,933 “Votes Against,” and 98,505 “Abstentions.” The “Votes For”
represented 99.5% of the shares of Common Stock represented at
the
meeting, which was more than the 50% required by our Certificate
of
Incorporation to pass. There were no broker
non-votes.
|
(3)
|
Stockholder
proposal regarding political contribution reports. The stockholder
proposal regarding political contribution reports did not pass,
having
received 9,962,965 “Votes For,” 31,515,494 “Votes Against,” and 19,523,162
“Abstentions.” The “Votes For” represented 14.1% of the shares of Common
Stock represented at the meeting, which was less than the 50%
required by
our Certificate of Incorporation to pass. There were 9,571,482
broker
non-votes.
|
(4)
|
Stockholder
proposal regarding a climate change report. The stockholder proposal
regarding a climate change reportdid not pass, having received
7,562,957
“Votes For,” 34,155,274 “Votes Against” and 19,283,390 “Abstentions.” The
“Votes For” represented 10.7% of the shares of Common Stock represented at
the meeting, which was less than the 50% required by our Certificate
of
Incorporation to pass. There were 9,571,482 broker
non-votes.
|
EXHIBITS
|
|
10.1
|
Limited
Consent and Second Amendment to Amended and Restated Credit Agreement
dated July 19, 2007.
|
23.1
|
Consent
of Robert H. Fuhrman, recognized Clean Water Act penalty valuation
expert
dated August 9, 2007.
|
31.1
|
Certification
of Chief Executive Officer, as adopted pursuant to Section 302
of the
Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification
of Chief Financial Officer, as adopted pursuant to Section 302
of the
Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C., Section 1350,
as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification
of Chief Financial Officer pursuant to 18 U.S.C., Section 1350,
as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
MASSEY
ENERGY COMPANY
|
|
(Registrant)
|
|
Date: August
9, 2007
|
|
/s/
E. B.
Tolbert
|
|
E.
B. Tolbert,
|
|
Vice
President and
|
|
Chief
Financial Officer
|
|
/s/
D. W.
Owings
|
|
D.
W. Owings,
|
|
Controller
|