37748--3/16/2006--MASSEY_ENERGY

related topics

{gas, price, oil}

{operation, natural, condition}

{debt, indebtedness, cash}

{loss, insurance, financial}

{operation, international, foreign}

{cost, contract, operation}

{cost, operation, labor}

{financial, litigation, operation}

Massey is impacted by the competitiveness of the markets in which it competes and market demand for coal. Demand for Massey s coal depends on its price and quality and the cost of transporting its coal to its customers. A significant decline in coal prices in general could adversely affect Massey s operating results and cash flows. Massey depends on continued demand from its customers. The level of Massey s indebtedness could adversely affect its ability to grow and compete and prevent it from fulfilling its obligations under its contracts and agreements. The covenants in Massey s credit facility and the indentures governing its debt instruments impose restrictions that may limit Massey s operating and financial flexibility. Massey depends on its ability to continue acquiring and developing economically recoverable coal reserves. Massey faces numerous uncertainties in estimating its economically recoverable coal reserves, and inaccuracies in its estimates could result in lower than expected revenues, higher than expected costs and decreased profitability. If the coal industry experiences overcapacity in the future, the Company s profitability could be impaired. Transportation disruptions could impair Massey s ability to sell coal. Severe weather may affect Massey s ability to mine and deliver coal. Federal and state government regulations applicable to Massey operations increase Massey s costs and may make Massey s coal less competitive than other coal producers. Massey must obtain governmental permits and approvals for mining operations, which can be a costly and time-consuming process and result in restrictions on its operations. Union represented labor creates an increased risk of work stoppages and higher labor costs. Massey is subject to being adversely affected by a decline in the financial condition and creditworthiness of its customers. Massey is subject to various legal proceedings, which may have a material effect on its business. Massey has significant reclamation and mine closure obligations. If the assumptions underlying the Company s accruals are materially inaccurate, the Company could be required to expend greater amounts than anticipated. Foreign currency fluctuations could adversely affect the competitiveness of Massey s coal abroad. Terrorist attacks and threats, escalation of military activity in response to such attacks or acts of war may negatively affect the Company s cash flows, results of operations or financial condition. Coal mining is subject to inherent risks.

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37748--3/16/2006--MASSEY_ENERGY_CO