Cloud Peak Energy Announces Its Election to Terminate Its Undrawn Credit Agreement

GILLETTE, Wyo.–(BUSINESS WIRE)–Cloud Peak Energy Inc. (NYSE:CLD), one of the largest U.S. coal
producers and the only pure-play Powder River Basin (“PRB”) coal
company, today announced that Cloud Peak Energy Resources LLC (“CPE
Resources”), a wholly owned subsidiary of Cloud Peak Energy Inc.,
provided PNC Bank, National Association with notice to terminate the
Credit Agreement with PNC Bank, National Association, as administrative
agent, and a syndicate of lenders, originally dated as of February 21,
2014 (as amended, the “Credit Agreement”). The termination of the Credit
Agreement is effective as of November 15, 2018.

As disclosed in the Company’s Quarterly Report on Form 10-Q for the
period ending September 30, 2018, the Company has been evaluating
potential alternatives with respect to its Credit Agreement to achieve
the Company’s business objectives and priorities, including exercising
the Company’s right to terminate the Credit Agreement. As of September
30, 2018, the Credit Agreement availability was reduced to $16.2 million
of borrowing capacity based upon the quarterly financial covenant
calculations.

As of September 30, 2018, the Company had $109.5 million in cash and
cash equivalents. The Company has no outstanding borrowings or undrawn
letters of credit under the Credit Agreement, the Company has not
historically used the Credit Agreement as a source of working capital
and the Company had no current plans to draw on the Credit Agreement.
The Credit Agreement would have also required CPE Resources to pay over
$3.0 million in additional commitment and administrative fees during the
remaining term of the Credit Agreement through May 2021, which will now
be avoided.

The termination of the Credit Agreement does not result in a default
under CPE Resources’ Accounts Receivable Securitization Program (the
“A/R Securitization Program”) or the indentures for CPE Resources’
12.00% second lien senior notes due 2021 or 6.375% senior notes due
2024. As a result of the termination of the Credit Agreement, the
Company will record a non-cash write off of certain deferred financing
costs in the amount of approximately $4.1 million.

About Cloud Peak Energy®

Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming and is one
of the largest U.S. coal producers and the only pure-play Powder River
Basin coal company. As one of the safest coal producers in the nation,
Cloud Peak Energy mines low sulfur, subbituminous coal and provides
logistics supply services. The Company owns and operates three surface
coal mines in the PRB, the lowest cost major coal producing region in
the nation. The Antelope and Cordero Rojo mines are located in Wyoming
and the Spring Creek Mine is located in Montana. In 2017, Cloud Peak
Energy sold approximately 58 million tons from its three mines to
customers located throughout the U.S. and around the world. Cloud Peak
Energy also owns rights to substantial undeveloped coal and
complementary surface assets in the Northern PRB, further building the
Company’s long-term position to serve Asian export and domestic
customers. With approximately 1,300 total employees, the Company is
widely recognized for its exemplary performance in its safety and
environmental programs. Cloud Peak Energy is a sustainable fuel supplier
for approximately two percent of the nation’s electricity.

Cautionary Note Regarding Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of
the safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are not statements of historical facts and often contain
words such as “may,” “will,” “expect,” “believe,” “anticipate,” “plan,”
“estimate,” “seek,” “could,” “should,” “intend,” “potential,” or words
of similar meaning. Forward-looking statements are based on management’s
current expectations, beliefs, assumptions and estimates regarding our
company, industry, economic conditions, government regulations and
energy policies and other factors. Forward-looking statements may
include, for example, statements regarding the potential impact of our
termination of our Credit Agreement, future available liquidity and
other statements regarding our plans, strategies, prospects and
expectations concerning our business, operating results, financial
condition, liquidity and other matters that do not relate strictly to
historical facts. These statements are subject to significant risks,
uncertainties, and assumptions that are difficult to predict and could
cause actual results to differ materially and adversely from those
expressed or implied in the forward-looking statements, including our
actual future available liquidity, the timing and extent of any
sustained recovery of currently depressed coal industry conditions and
the impact of ongoing or further depressed industry conditions on our
company and other risk factors and cautionary language described from
time to time in the reports and registration statements we file with the
Securities and Exchange Commission, including those in Item 1A – Risk
Factors in our most recent Form 10-K and any updates thereto in our
Forms 10-Q and current reports on Form 8-K. Additional factors, events,
or uncertainties that may emerge from time to time, or those that we
currently deem to be immaterial, could cause our actual results to
differ, and it is not possible for us to predict all of them. We make
forward-looking statements based on currently available information, and
we assume no obligation to, and expressly disclaim any obligation to,
update or revise publicly any forward-looking statements made in this
release, whether as a result of new information, future events or
otherwise, except as required by law.

Contacts

Cloud Peak Energy Inc.
John Stranak, 720-566-2932
Investor
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