Anthony Rodd
arodd@uwyo.edu
The past year’s plummet in crude oil and coal prices has taken a massive toll on coal and gas companies around the country. And in a state like Wyoming, where 40 percent of the nation’s coal and roughly 5 percent of the nation’s natural gas is produced, the tanking of the oil and coal industry has hit businesses and business employees, especially hard. Here is a quick rundown of what has happened to Wyoming’s four largest coal and natural gas producers.
Ultra Petroleum
Ultra Petroleum, Wyoming’s largest producer of natural gas, declared Chapter 11 Bankruptcy in April, citing a $3.9 billion debt. In a statement on the company’s bankruptcy, Chief Financial Officer Garland Shaw says the price of oil is the main culprit in the company’s bankruptcy.
“The low commodity prices, and especially the low natural gas prices that prevailed throughout 2015 and have continued through the first four months of 2016 have had a devastating impact,” Chief Financial Officer Garland Shaw said
Ultra Petroleum operates multiple wells around the state including the Pinedale and Jonah fields.
Peregrine Energy
Peregrine Energy, which operates one of Wyoming’s largest gas storage facilities, also filed for Chapter 11 Bankruptcy earlier in February, and is still working on restructuring and paying back creditors, as well as dealing with the debt it accumulated after fire damages that occurred at the same storage site in 2013.
“Filing for Chapter 11 was a difficult decision for the company and our stakeholders; however, given the significant liquidity challenges facing the company we had no alternative available,” Chief Executive Officer Rob Foss said in a statement in February.
While the company said it is filing for Chapter 11 bankruptcy, it would continue operations at it’s gas storage facility, the Ryckman Creek Natural Gas Storage Facility in Uinta County, Wyoming.
Peabody Energy
Peabody Energy, which is not based in Wyoming but has major operations within state and is the nations largest coal producer, filed for Chapter 11 bankruptcy early this April. In addition, Peabody Energy laid off approximately 15 percent of its Wyoming workforce, about 253 workers, at its flagship Wyoming mine, North Antelope Rochelle. In a statement released early April, the company said it would continue business as usual except for some intercompany reorganization.
Arch Coal
Arch Coal, the nations second largest coal producer, filed for Chapter 11 bankruptcy in January. The company operates one of Wyoming’s largest coalmines, the Black Thunder Mine in Campbell County, Wyoming, and announced last week it is cutting 15 percent, or approximately 230 workers.
In a prepared statement, Kieth Williams, Arch’s president of Western operations said, “We regret the need for this difficult step and the impacts it will have on our employees, their families and the local community.”
Despite the Chapter 11 bankruptcy, Arch Coal spokesperson Logan Bonacorsi has said it will provide severance packages to laid off employees, and when asked if the company intends to keep its commitments to retirees, Bonacarsi said, “Yes, we are and fully expect to continue to make retiree benefit payments.”
