Massey Energy Company

Massey Energy Company (MEE), which is scheduled to release results for the second quarter on July 31, has seen bullish estimate revisions from Wall Street. Analysts have current full-year 2008 earnings forecasts pegged at $3.11 per share, up a penny from last month’s projection and 11 cents higher than the expectations of two months ago.

Company Description

Massey Energy is the largest producer of Central Appalachian coal. It is the fourth largest coal company in the United States based on produced coal revenue. Its subsidiaries serve more than 125 utility, industrial and metallurgical customers around the world. With 19 mining complexes located throughout the Central Appalachian coalfields, Massey is well positioned to serve its customers.

Recent Events

In mid-May, Massey Chairman and Chief Executive Officer Don Blankenship spoke stockholders at an annual meeting, noting that he believes the company's reserves "will prove to be more valuable than those of any other North American coal company."

He said, "We have nearly tripled our reserve base" and "our reserve share has increased from less than 7%, when this management team began to lead the Company, to nearly 38% today."

The company's expects its position to improve even further. Blankenship said, "If the current trends continue, Massey is on track to be in control of more than two thirds of the remaining Central Appalachian coal reserves in just 10 years."

Massey Energy noted that it currently owns or controls more than 2 billion tons of high quality coal reserves in Central Appalachia. It produces some of the highest quality coal in the world with diverse characteristics that enable it to meet the demands of nearly any coal market in the world.

Income

Also in mid-May, the company declared a quarterly dividend of 5 cents per share, which was paid out on July 8, 2008. Massey offers a dividend yield of about 0.2%.

Higher Earnings Projections

Massey Energy has seen bullish estimate revisions from Wall Street. Analysts have current full-year 2008 earnings forecasts pegged at $3.11 per share, up a penny from last month’s projection and 11 cents higher than the expectations of two months ago.

The company’s earnings per share are estimated to grow by 35% over the next 3 – 5 years, topping the industry average expectation of 20%.

The Next Earnings Report

Look for Massey Energy to release results for the second quarter on July 31, 2008.

Read the full analyst report on MEE