TECO Energy Inc. Earnings Call Nuggets: Pricing, Domestic Steam Coal

On Tuesday, TECO Energy Inc (NYSE:TE) reported its first quarter earnings and discussed the following topics in its earnings conference call. Here’s what the C-Suite revealed.


Andrew Levi – Caris & Company: Just a very, very simple quick question, on the 2.5 million tons that you mentioned that were priced in – for next year that are priced kind of mid-2011 prices. What are those prices? Can you give us an idea or a range or anything like that?

A Closer Look: TECO Energy Earnings Cheat Sheet>>

Sandra W. Callahan – SVP-Finance and Accounting, CFO, Chief Accounting Officer, and Assistant Secretary: No. we typically don’t do that, Andy, but in general, when we talked about pricing, and we are talking about that at market period that was kind of mid-2011, more robust certainly than it is today.

Domestic Steam Coal

Greg Gordon – ISI Group: It sounds like things are steady as she goes on the utility front. And I’m sorry to probably ask one of the next 27 questions on the coal business. But when I think about your cost of productions just for domestic steam coal, should I presume that it’s significantly lower than the average per ton price you are quoting for the entire business which includes some of the higher grades of coal? So I’m just trying to figure out on the unhedged production for next year whether its economic for you guys to be selling steam coal given current forwards?

John B. Ramil – President and CEO: Greg, this is John Ramil and in general, the steam is lower priced. A lot of it comes from our surface mining, which is lower cost and of course all the steam coal is not watched like the met coal is all watched.