Foresight Energy LP (fka FELPQ)

[ZetaReticuli]

Murray Energy isn't going away. Its agents have already formed a new entity (Murray NewCo) with a new Board which includes Bob Murray and the CEO of Foresight, Robert Moore, to bid on the assets of Murray. Murray has $2.7 Billion in long term debts and $8 billion in pension and benefit legacies which will be restructured significantly. Murray might be the last of its contemporaries to still have pensions, as most others had to shed them off through bankruptcy. The American Miners Act has just been passed by the House and is about to be passed by the Senate which will subsidize the miner retirement plans lost to bankruptcy.

Foresight has $500 million in equity with no pension legacies. They are in a much better position to restructure out of court without going the bankruptcy route.

There are also operational synergies between the two companies that contribute to the already low cost of production. Both companies will be quite streamlined and in a much better position to compete in the marketplace.