37748--3/1/2007--MASSEY_ENERGY

related topics

{gas, price, oil}

{cost, contract, operation}

{cost, regulation, environmental}

{operation, natural, condition}

{loss, insurance, financial}

{debt, indebtedness, cash}

{condition, economic, financial}

{cost, operation, labor}

{personnel, key, retain}

{operation, international, foreign}

{acquisition, growth, future}

{financial, litigation, operation}

{product, market, service}

We are impacted by the competitiveness of the markets in which we compete and market demand for coal. Demand for our coal depends on its price and quality and the cost of transporting it to customers. A significant decline in coal prices in general could adversely affect our operating results and cash flows. We depend on continued demand from our customers. The level of our indebtedness could adversely affect our ability to grow and compete and prevent us from fulfilling our obligations under our contracts and agreements. The covenants in our credit facility and the indentures governing debt instruments impose restrictions that may limit our operating and financial flexibility. We depend on our ability to continue acquiring and developing economically recoverable coal reserves. We face numerous uncertainties in estimating economically recoverable coal reserves, and inaccuracies in estimates could result in lower than expected revenues, higher than expected costs and decreased profitability. Defects in title or loss of any leasehold interests in our properties could limit our ability to mine these properties or result in significant unanticipated costs. If the coal industry experiences overcapacity in the future, our profitability could be impaired. Decreased availability or increased costs of key equipment, supplies or commodities such as diesel fuel, steel, explosives and tires could decrease our profitability. Transportation disruptions could impair our ability to sell coal. Severe weather may affect our ability to mine and deliver coal. Federal and state government regulations applicable to operations increase costs and may make our coal less competitive than other coal producers. MSHA or other federal or state regulatory agencies may order certain of our mines to be temporarily or permanently closed, which could adversely affect our ability to meet our customers demands. We must obtain governmental permits and approvals for mining operations, which can be a costly and time-consuming process and can result in restrictions on our operations. The loss of key personnel or the failure to attract qualified personnel could affect our ability to operate our company effectively. Union represented labor creates an increased risk of work stoppages and higher labor costs. We are subject to being adversely affected by a decline in the financial condition and creditworthiness of our customers. We are subject to various legal proceedings, which may have a material effect on our business. We have significant reclamation and mine closure obligations. If the assumptions underlying our accruals are materially inaccurate, we could be required to expend greater amounts than anticipated. Our future expenditures for postretirement benefit and pension obligations could be materially higher than we have predicted if our underlying assumptions are incorrect. We may not realize all or any of the anticipated benefits from acquisitions we undertake, as acquisitions entail a number of inherent risks. Foreign currency fluctuations could adversely affect the competitiveness of our coal abroad. Terrorist attacks and threats, escalation of military activity in response to such attacks or acts of war may negatively affect our cash flows, results of operations or financial condition. Coal mining is subject to inherent risks, some of which we insure against and some of which we self-insure.

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37748--3/1/2007--MASSEY_ENERGY_CO