Javelin, which will be based in London, will expand into other commodities outside of its main focus. It already has inked a long-term export marketing and domestic advisory agreement with MEC as well as a long-term hedging and credit line with E.ON.
Chief Commercial Officer for Coal, LNG and Freight David Finch said the deal is a key step in its strategic vision and also a vehicle to continue to grow its presence in the U.S. coal and electric power markets.
“We could not be off to a better start with such key players in the coal and other commodities markets supporting us,” Javelin CEO Peter Bradley added. “The onset of shale gas production has changed the energy landscape in the U.S. and abroad, and we aim to provide services to clients to better manage their business in this dynamic environment.”
MEC Chairman, President and CEO Robert E. Murray said he expects Javelin will have an “immediate impact” in the development of new marketing and trading strategies for MEC’s coal both domestically and for export markets.
“We’re no longer just competing with fellow coal producers,” Executive Vice President, COO and CFO Robert D. Moore said. Moore also serves as president and CEO of Foresight Energy. “Today we’re also in a head-to-head battle with low natural gas prices. Javelin will assist Murray Energy in offering new products to our customers to allow them to compete in the electric power marketplace, such as variable pricing and volume fuel options, and contracts that include physical power offtake, tolling, and power price hedging to lock-in margins.”
Privately held Murray Energy produced more than 62 million tons of thermal coal last year; its tonnage and portfolio have grown exponentially since the company’s 2013 takeover of assets from Consolidation Coal.
Earlier this year, Murray Energy invested in Foresight Energy (FELP) and signed a deal to manage FELP’s operations in Appalachia and the Illinois Basin (ILB), which total about 25 million tons annually.