Brean Capital Reacts To Alpha Natural Resources, Inc. Announcements

In a report published Monday, Brean Capital analyst Lucas Pipes reiterated a Hold rating on

. In the report, Brean Capital noted, “Friday after the close, Alpha Natural Resources provided an update on its July 31st announcement of WARN notices at 11 mines. The company decided to idle three mines immediately (including one not previously included in the WARN notices) which together produced 1.52 million tons in H1'14, with a reported 50/50 split of met and thermal coal production. Annualized, this may be expected to reduce Alpha's met and thermal production by roughly 1.5 million tons apiece. "We are encouraged that the company is moving diligently to reduce its cost profile in CAPP, but remain cautious on near-term improvements in the met coal market to provide any additional uplift. Of the remaining nine operations affected by the WARN notices, it was decided that one would continue to operate normally and the other eight were issued extensions to the WARN notice and will remain under review. Five of these mines now have a revised idling date of November 26th, 2014 or within the following two-weeks. Separately, Alpha announced last week an amended and extended senior secured credit facility and the establishment of a new accounts receivable securitization facility. These two facilities will enhance the company's financial flexibility through 2018.” Alpha Natural Resources, Inc. closed on Friday at $2.36.