As a result of the impairment and an adjusted EBITDA of between $10 million and $12 million, Cloud Peak is lowering the upper end of its full year adjusted EBITDA guidance range by $10 million, so that full-year 2015 adjusted EBITDA is now expected to be between $110 million and $140 million.

Second quarter 2015 shipments from its three mines were 16 million tons compared to 20.6Mt in Q2 2014. For the full year 2015, Cloud Peak now expects shipments to be between 74Mt and 78Mt.

The non-cash goodwill impairment charge of about $33.4 million for its 8400 British Thermal Unit Cordero Rojo mine represents a full write down of Cordero Rojo's goodwill as of June 30, 2015 due to the weak market outlook for 8400Btu coal.

The non-cash goodwill impairment charge is excluded from the company's EBITDA calculation for the purpose of determining compliance with covenants in its credit facility.

Second quarter shipments from its three mines were reduced due to low seasonal demand from our utility customers and rail service interruptions due to flooding.

“While the second quarter shipments were lower than we forecast, we are now in the position where we expect to be able to run at higher shipment rates for the rest of the year, allowing us to leave the bottom of our adjusted EBITDA guidance range unchanged,” Cloud Peak president and CEO Colin Marshall said.

In 2014, Cloud Peak shipped about 86Mt from its three mines to customers located throughout the US and around the world. It also owns rights to substantial undeveloped coal and complimentary surface assets in the Northern Powder River Basin.