Decker Coal Accepts Buy-out of Coal Supply Contract

Category:

January 6, 2010

Dateline:

GILLETTE, Wyo.

Public Company Information:

NYSE:
CLD

GILLETTE, Wyo.--(BUSINESS WIRE)--Cloud Peak Energy Inc. (NYSE: CLD) announced an agreement that Decker Coal Company, in which Cloud Peak Energy is a 50% partner, has accepted a buy-out offer from an eastern utility company for a coal supply contract originally scheduled through 2012.

The customer’s contract accounted for approximately 30 percent of production for 2010 and the majority of the production for 2011 and 2012. The arrangement is mutually beneficial to both the utility and the Decker Joint Venture as it allows the utility to avoid purchasing coal it no longer requires, and Decker to pursue more favorable sales opportunities. Decker Coal Company currently holds no firm sales contracts beyond 2011, but continues to seek market opportunities for the approximately 42 million tons of non-reserve coal held by the Company.

This arrangement provides financial compensation for the remaining tons under this contract and allows the Decker Joint Venture to better manage the ongoing mining operation. The transaction will be effective and reflected in fiscal year 2009.

Forward Looking Statement

This release contains forward-looking statements that involve certain risks and uncertainties and can be identified by words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘should,’’ ‘‘will,’’ ‘‘would’’ or similar words. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters, including but not limited to information regarding our reserves, our business and growth strategy, and market data related to the domestic and foreign coal industry. There may be events in the future, however, that we are not able to predict accurately or control and which may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Actual future results may differ materially from the information included herein, depending on the risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission (SEC), as amended. The Company undertakes no obligation to update or revise the enclosed information, which speak only as of the date hereof.

About Cloud Peak Energy

Cloud Peak Energy (NYSE: CLD) is headquartered in Wyoming and is the third largest coal producer in the United States. As one of the safest coal producers in the nation, Cloud Peak Energy Inc. specializes in the production of low sulfur, sub-bituminous coal. The company owns and operates three surface coal mines in the Powder River Basin, the lowest cost coal producing region in the nation among major coal producing regions. The Antelope Mine and Cordero Rojo Mine are located in Wyoming and the Spring Creek Mine is located near Decker, Montana. With approximately 1,500 employees, the company is widely recognized for its exemplary performance in its safety and environmental programs. Cloud Peak Energy Inc. is a sustainable fuel supplier for approximately 4.4 percent of the nation’s electricity.

Contact:

Cloud Peak Energy Inc.
Karla Kimrey, 303-713-5000
Vice President, Investor Relations

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