Patriot Coal Corp. (PCX) has named a new chief executive, Irl F.
Engelhardt, to replace Richard M. Whiting as the company struggles
to maintain its financial footing in a challenging market for
coal.
The company also named Bennett K. Hatfield to serve as
president, along with his current chief operating officer role.
Shares were up 3.3% in premarket trading to $2.54. Through the
most recent close, the stock is down 71% so far this year.
Patriot recently said that it is working with private-equity
firm Blackstone Group LP (BX) on a refinancing effort. Patriot,
like other U.S. coal producers has struggled this year as
decade-low natural gas prices have sapped demand for power-plant
coal.
The company recently lowered its sales volume outlook for
metallurgical coal for the rest of the year, citing the potential
default of a key customer. The three major ratings agencies
recently lowered Patriot's credit ratings.
"Ben and I will immediately focus on improving Patriot's
competitive position as well as its financial structure to enhance
value for our shareholders and all other groups who have a stake in
the company's success," said Engelhardt. "Our team has successfully
navigated the inherent cycles in the energy industry in the past,
and I am confident Patriot can overcome the industry challenges
that we currently face."
Engelhardt, 65, has served as the chairman of Patriot's board of
directors since the company spun off from Peabody Energy Corp.
(BTU) in 2007. He served as the chairman and chief executive of
Peabody from 1990 to 2005, and has also had executive roles and
several other energy companies.
Hatfield, 55, has served as the company's chief operating
officer since Sept. 2011.
In a statement, the company didn't give a reason for Whiting's
departure, but thanked him for his service.
"As President and CEO, he guided Patriot through a complex
spin-off and its emergence as a standalone public company. We wish
him well in his future endeavors," said Engelhardt.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208;
kristin.jones@dowjones.com