GILLETTE, Wyo.- Officials at Cloud Peak Energy, which owns three Powder River Basin coal mines, announced Tuesday they’re considering a sale of the company.
In a news release, the Gillette-based coal company said its board of directors, executives and legal team are starting a “review of strategic alternatives,” including a sale.
No decision has been made, and the company won’t provide further updates unless it decides to move forward on a sale, Cloud Peak officials said.
Cloud Peak owns the Antelope and Cordero Rojo mines in Wyoming and the Spring Creek mine in Decker, Mont. The company also has an agreement to ship coal through the proposed Millennium Bulk Terminals dock in Washington state, which has been delayed for years by lawsuits and permitting hurdles.
Shares of Cloud Peak stock closed at $1.33 cents Tuesday, down about 7 percent over the day. Like many U.S. coal producers, Cloud Peak has been hurt by an abundance of cheap natural gas and declining demand from power plants.
Nevertheless, the company sold 58 million tons of coal last year to U.S. and foreign markets. Cloud Peak employs 1,300 people, mostly in Montana and Wyoming, and plans to continue operating as normal as the sale is considered, company officials said.
“While our Board is undertaking this strategic review, Cloud Peak Energy remains focused on executing against our operational and financial priorities. We will continue to adjust our business to the structural changes in the U.S. coal industry and to position our company for future growth opportunities,” CEO Colin Marshall said in a statement.