ForesightEnergy LP has increased production at its coal mines in the mostrecent quarter, according to an S&P Global Market Intelligence analysis ofdata compiled by the U.S. Mine Safety and Health Administration.
The company produced nearly 4.9 million tons in the secondquarter of 2016, jumping about 13.7% from the 4.3 million tons produced in theprevious quarter and up 4% from the 4.7 million tons of the second quarter of2015.
In terms of a quarter-over-quarter change, the mineresponsible for the biggest uptick in production is the Mach No. 1 mine inIllinois, which increased its output by nearly 360,000 tons from about 1million tons in first quarter 2016 to nearly 1.4 million tons in the mostrecent quarter — a 34.7% increase. Over the past year, the mine dropped itsproduction 10.9% from nearly 1.6 million tons in the second quarter of 2015 tothis quarter's tonnage.
Marking the largest increase in tonnage over the past year,Foresight's MC No. 1 in Illinois has steadily increased production from 2.7million tons in the second quarter of 2015 to about 2.8 million tons in thefirst quarter of 2016 and nearly 2.9 million tons in the most recent quarter.
Foresight has also increased production at its smaller ShayNo. 1 mine in Illinois. Output there has jumped 44% from about 430,000 tons inthe second quarter of 2015 to more than 610,000 tons in the same period thisyear. That mine also increased production in the most recent quarter by 26%from the roughly 490,000 tons produced in the first quarter in 2016.
This uptick in overall production since last year happenedin spite of the closure of Foresight's Deer Run mine in Illinois, whichproduced about 45,000 tons in the second quarter of 2015. The mine was closedafter ongoing issueswith a combustion eventand high carbon monoxidelevels. Employees at the mine filedsuit with Foresight and co-owner Murray Energy Corp., which owns a major stake inForesight, over the closure.
This increase in production happened as Foresight negotiations concerningits debt structuring. The company has floated the possibility of if a deal is not reached.
A spokesperson for Foresight and Murray declined to commenton the increased production.