Massey Energy Reports Flooding at Marfork Coal

Apr 26, 2001, 01:00 ET from Massey Energy Company

    RICHMOND, Va., April 26 /PRNewswire/ -- Massey Energy Company (NYSE:   MEE)
 reported that its affiliate, Marfork Coal Company, has recently experienced
 unforeseen flooding of its Ellis Eagle longwall mine.  This flooding, which
 began on April 14, has caused significant disruption to coal production.
 Shipments from both the Marfork and Goals preparation plants have been
 impacted.  Additionally, the Marfork plant has suffered numerous flood-related
 operating problems due to excessive moisture in the raw coal.  As a result,
 the affected Massey subsidiaries have issued notices of force majeure to about
 15 domestic and export customers.  Although missed shipments cannot be
 precisely predicted, these operations are not expected to achieve normal
 production levels until early May.
     The Company indicated that these flooding-related problems may have a
 negative impact on second quarter earnings of about $0.06 per share.
     Massey also announced that the IRS has substantially completed its audit
 of the Company's requested refund of black lung excise tax payments on
 exported coal.  Second quarter results will be boosted by a $10 million refund
 of excise taxes and related interest, or about $0.09 per share.
     In other news, Massey Energy's Chairman, Don Blankenship, acknowledged
 that yesterday's Fourth Circuit decision to reverse the Haden ruling on valley
 fills was good news for both the West Virginia coal industry and Massey
 Energy's shareholders.   "Although the Fourth Circuit decision may not have an
 immediate impact on the permit approval process, it is a positive step toward
 removing a threat that has loomed over the West Virginia coal industry for the
 past eighteen months."
 
     On other Massey operating developments:
 
     --  Blankenship noted that the Martin County preparation plant is
         operating "reasonably well" since its restart on April 2.  The plant
         was idled for nearly six months due to an accidental release of coal
         slurry from the refuse impoundment.
 
     --  The six new surface mining operations that Massey began developing in
         February will be 80% operational by mid-May, and should reach full
         production by mid-June.  These new production units are located in
         Logan and Boone Counties of West Virginia, and will increase Massey
         production capacity by about 2.6 million tons annually.
 
     Mr. Blankenship also confirmed that demand for Massey's Central
 Appalachian production remains strong, with many coal buyers now seeking
 supply coverage through 2002 and 2003.  "Our willingness to invest in new
 equipment and coal production infrastructure during the weak market of the
 late 1990's should serve us well next year and beyond."
     The Company also reported that it will release financial results for its
 second fiscal quarter (ended April 30, 2001) on Tuesday, May 29, after market
 close.  Its regularly scheduled quarterly conference call and webcast will be
 held at 11:00 AM on Wednesday, May 30.
     Massey Energy Company, headquartered in Richmond, Virginia, is the fifth
 largest coal producer in the United States.
 
     FORWARD-LOOKING STATEMENTS: The foregoing release contains forward-looking
 statements regarding projected earnings levels, cost reductions and new
 contracts.  Such forward-looking statements reflect current analysis of
 existing information.  Caution must be exercised in relying on forward-looking
 statements.  Due to known and unknown risks, the Company's actual results may
 differ materially from its expectations or projections.  Factors potentially
 contributing to such differences include, among others: competition in coal
 markets; fluctuation in coal prices which could adversely affect the Company's
 operating results and cash flows; deregulation of the electric utility
 industry; failure to receive anticipated new contracts; customer cancellations
 of, or breaches to, existing contracts; customer delays or defaults in making
 payments; fluctuations in the demand for, price and availability of, coal due
 to labor and transportation costs and disruptions, governmental regulations
 and other factors; and greater than expected environmental regulation, costs
 and liabilities.  The forward-looking statements are also based on various
 operating assumptions regarding, among other things, overhead costs and
 employment levels that may not be realized.  While most risks affect only
 future costs or revenues anticipated by the Company, some risks may relate to
 accruals that have already been reflected in earnings.  The Company's failure
 to receive payments of accrued amounts could result in a charge against future
 earnings.
 
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SOURCE Massey Energy Company
    RICHMOND, Va., April 26 /PRNewswire/ -- Massey Energy Company (NYSE:   MEE)
 reported that its affiliate, Marfork Coal Company, has recently experienced
 unforeseen flooding of its Ellis Eagle longwall mine.  This flooding, which
 began on April 14, has caused significant disruption to coal production.
 Shipments from both the Marfork and Goals preparation plants have been
 impacted.  Additionally, the Marfork plant has suffered numerous flood-related
 operating problems due to excessive moisture in the raw coal.  As a result,
 the affected Massey subsidiaries have issued notices of force majeure to about
 15 domestic and export customers.  Although missed shipments cannot be
 precisely predicted, these operations are not expected to achieve normal
 production levels until early May.
     The Company indicated that these flooding-related problems may have a
 negative impact on second quarter earnings of about $0.06 per share.
     Massey also announced that the IRS has substantially completed its audit
 of the Company's requested refund of black lung excise tax payments on
 exported coal.  Second quarter results will be boosted by a $10 million refund
 of excise taxes and related interest, or about $0.09 per share.
     In other news, Massey Energy's Chairman, Don Blankenship, acknowledged
 that yesterday's Fourth Circuit decision to reverse the Haden ruling on valley
 fills was good news for both the West Virginia coal industry and Massey
 Energy's shareholders.   "Although the Fourth Circuit decision may not have an
 immediate impact on the permit approval process, it is a positive step toward
 removing a threat that has loomed over the West Virginia coal industry for the
 past eighteen months."
 
     On other Massey operating developments:
 
     --  Blankenship noted that the Martin County preparation plant is
         operating "reasonably well" since its restart on April 2.  The plant
         was idled for nearly six months due to an accidental release of coal
         slurry from the refuse impoundment.
 
     --  The six new surface mining operations that Massey began developing in
         February will be 80% operational by mid-May, and should reach full
         production by mid-June.  These new production units are located in
         Logan and Boone Counties of West Virginia, and will increase Massey
         production capacity by about 2.6 million tons annually.
 
     Mr. Blankenship also confirmed that demand for Massey's Central
 Appalachian production remains strong, with many coal buyers now seeking
 supply coverage through 2002 and 2003.  "Our willingness to invest in new
 equipment and coal production infrastructure during the weak market of the
 late 1990's should serve us well next year and beyond."
     The Company also reported that it will release financial results for its
 second fiscal quarter (ended April 30, 2001) on Tuesday, May 29, after market
 close.  Its regularly scheduled quarterly conference call and webcast will be
 held at 11:00 AM on Wednesday, May 30.
     Massey Energy Company, headquartered in Richmond, Virginia, is the fifth
 largest coal producer in the United States.
 
     FORWARD-LOOKING STATEMENTS: The foregoing release contains forward-looking
 statements regarding projected earnings levels, cost reductions and new
 contracts.  Such forward-looking statements reflect current analysis of
 existing information.  Caution must be exercised in relying on forward-looking
 statements.  Due to known and unknown risks, the Company's actual results may
 differ materially from its expectations or projections.  Factors potentially
 contributing to such differences include, among others: competition in coal
 markets; fluctuation in coal prices which could adversely affect the Company's
 operating results and cash flows; deregulation of the electric utility
 industry; failure to receive anticipated new contracts; customer cancellations
 of, or breaches to, existing contracts; customer delays or defaults in making
 payments; fluctuations in the demand for, price and availability of, coal due
 to labor and transportation costs and disruptions, governmental regulations
 and other factors; and greater than expected environmental regulation, costs
 and liabilities.  The forward-looking statements are also based on various
 operating assumptions regarding, among other things, overhead costs and
 employment levels that may not be realized.  While most risks affect only
 future costs or revenues anticipated by the Company, some risks may relate to
 accruals that have already been reflected in earnings.  The Company's failure
 to receive payments of accrued amounts could result in a charge against future
 earnings.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X65213566
 
 SOURCE  Massey Energy Company