Wyoming coal producer takes steps to protect financial base

One of the largest coal producers in the U.S., Cloud Peak Energy Inc. based in Wyoming has taken steps to protect some of its finances.

The company’s Board of Directors announced this week it has adopted a Stockholder rights Plan to preserve its substantial federal net operating loss carryfowards. The tax carryforwards can be used in certain cases to offset future U.S. taxable income.

At the end of 2018, Cloud Peak, a firm considered to be the only pure-play operator in Wyoming’s Powder River Basin had tax carryfowards of nearly $300 million.

it’s a move that will protect Cloud Peak’s tax benefits. It also reduces any likelihood that changes in the company’s investor base would limit the future use of those tax benefits.

Cloud Peak Energy is headquartered in Gillette, Wyoming and owns and operates three coal mines in the Powder River Basin.