Murray Energy Dusts Itself Off After a Brush With Insolvency

Back in March, prices on some of Murray Energy Corp.’s junior bonds descended to levels that resembled some of the company’s deepest coal mines. Today, helped along by strong coal prices and a campaign by Murray to buy back its own debt at deep discounts, those notes have more than doubled and rank as this year’s best performer among distressed bonds.

The industry is still losing customers amid stiff competition from cheap, cleaner-burning natural gas and renewable energy. Nonetheless, Murray says it’s gaining ground based on strong export prices for coal mined by its Colombia operations and low operating costs in western Kentucky.