Alpha Natural Resources, West Virginia's largest coal producer, reported a second quarter loss of $2.2 billion this week. During a conference call Wednesday, Alpha CEO Kevin Crutchfield told investors the low price of natural gas, a mild winter and a reduction in overseas demand for metallurgical coal all contributed to the company's losses. Alpha inherited a number of risk factors with the buyout of Massey Energy, but Crutchfield said time will tell if it was the right move. Although court records are sealed, it's clear the settlements for lawsuits stemming from the Upper Big Branch Mine Disaster impacted Alpha Natural Resources earnings during the second quarter. Alpha Chief Financial Officer Frank Wood told shareholders wrongful death and personal injury actions at UBB are nearly completed, and trying to guess the outcomes and make projections ahead of the litigation and settlements became impossible. The statute of limitations on filing actions has expired. All of the wrongful death cases are settled and most have been paid. Wood said two personal injury cases have also been settled and a few remain in mediation.
