Moody's revises Foresight's outlook to stable; affirms ratings

Foresight Energy LLC: Update to credit considerations - Credit Opinion – 2024/04/26 – US$ 250.00 – ...Foresight's credit profile (B3 CFR) is constrained by a small and concentrated portfolio of assets, history of recurring operational disruptions at its mines, inconsistent free cash flow generation since emerging from bankruptcy in June 2020, inability to benefit from a strong coal pricing environment in recent years due to legacy contracts at lower prices, event risk related to the company's ownership structure, and the secular headwinds facing the domestic thermal coal industry. The rating is supported by the relatively low cost structure for its mines, and limited amount of non-debt liabilities. Foresight has two complexes with a demonstrated excellent cost position (Williamson, Sugar Camp), one complex with a potential excellent cost position (Hillsboro), and one idled complex (Macoupin). We re-initiated ratings on Foresight on 30 July 2020 following the company's emergence from bankruptcy. Foresight, for which we had previously withdrawn ratings after the company filed bankruptcy on...

Foresight Energy LLC: Update to credit considerations - Credit Opinion – 2023/12/15 – US$ 250.00 – ...Foresight's B3 CFR is constrained by a small and concentrated portfolio of assets, history of recurring operational disruptions at its mines, inconsistent free cash flow generation since emerging from bankruptcy in June 2020, inability to benefit from a strong coal pricing environment in recent years due to legacy contracts at lower prices, event risk related to the company's ownership structure, and the secular headwinds facing the domestic thermal coal industry. The rating is supported by the relatively low cost structure for its mines, and limited amount of non-debt liabilities. Foresight has two complexes with a demonstrated excellent cost position (Williamson, Sugar Camp), one complex with a potential excellent cost position (Hillsboro), and one idled complex (Macoupin). We re-initiated ratings on Foresight on 30 July 2020 following the company's emergence from bankruptcy. Foresight, for which we had previously withdrawn ratings after the company filed bankruptcy on 10 March 2020,...

Foresight Energy LLC: Update following change of outlook to stable - Credit Opinion – 2022/12/15 – US$ 250.00 – ...Foresight's B3 CFR is constrained by a small and concentrated portfolio of assets, history of recurring operational disruptions at its mines, inconsistent free cash flow generation since emerging from bankruptcy in June 2020, inability to benefit from a strong coal pricing environment over the past 12 months due to legacy contracts at lower prices, event risk related to the company's ownership structure, and the secular headwinds facing the domestic thermal coal industry. The rating is supported by the relatively low cost structure for its mines, and limited amount of non-debt liabilities. Foresight has two complexes with a demonstrated excellent cost position (Williamson, Sugar Camp), one complex with a potential excellent cost position (Hillsboro), and one idled complex (Macoupin). We re-initiated ratings on Foresight on 30 July 2020 following the company's emergence from bankruptcy. Foresight, for which we had previously withdrawn ratings after the company filed bankruptcy on 10 March...

Foresight Energy LLC: Annual update to credit considerations - Credit Opinion – 2022/06/14 – US$ 250.00 – ...Foresight Energy's B3 CFR is principally constrained by uncertainties related to the company's emergence from bankruptcy (e.g., need for capital investment, ability to maintain commercial arrangements), recurring operating incidents and event risk related to the company's ownership structure. The company's asset base is capable of supporting a rating above the B3 CFR assuming it can achieve cash costs consistent with its plan and maintain very low absolute debt levels. Foresight has two complexes with a demonstrated excellent cost position (Williamson, Sugar Camp), one complex with a potential excellent cost position (Hillsboro), and one idled complex (Macoupin). Commercial arrangements with mining contractors, lessors of reserves, railroads, port operators, and other counterparties had been substantively restructured during the company's bankruptcy process and no longer represent a material drag on earnings and cash flow generation. Management's new contracting strategy should help ensure...

Foresight Energy LLC: Expect improved EBITDA and credit metrics in 2021; better export opportunities emerging - Credit Opinion – 2021/06/24 – US$ 250.00 – ...The B3 CFR is principally constrained by uncertainties related to the company's emergence from bankruptcy (e.g., need for capital investment, ability to maintain commercial arrangements), event risk related to the company's ownership structure, and potential for consolidation in the domestic coal industry characterized by overcapacity and steep secular decline in demand in the 2020s. The company's asset base is capable of supporting a rating above the B3 CFR assuming it can achieve cash costs consistent with its plan and maintain very low absolute debt levels. Foresight has two complexes with a demonstrated excellent cost position (Williamson, Sugar Camp), one complex with a potential excellent cost position (Hillsboro), and one idled complex (Macoupin). Commercial arrangements with mining contractors, lessors of reserves, railroads, port operators, and other counterparties have been substantively restructured during the company's bankruptcy process and no longer represent a material drag...

Foresight Energy LLC: Reinitiation following emergence from bankruptcy - Credit Opinion – 2020/08/04 – US$ 250.00 – ...[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations. [2] As of 3/31/2020 (L). [3] This represents Moody's forward view; not the view of the issuer; and unless noted in the text, does not incorporate significant acquisitions and divestitures. [4] Current financial data as of LTM March 31, 2020 reflects financial metrics subsequent to the bankruptcy filing, hence most of the company's debt had already been wiped out Source: Moody's Financial MetricsTM...

Moody's assigns B3 CFR to Foresight Energy LLC; outlook positive - Rating Action – 2020/07/30 – US$ 180.00 – ...ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications. To the extent permitted by law, MOODY'S and its directors, officers,...