Kingdom Energy Group, LLC (KEG)
HISTORY
KEG is a wholly owned subsidiary of Kingdom Resources, LLC («KR»), an integrated energy and natural resource holding company. KEG is a vertically integrated coal operation that includes coal extraction, processing, wholesaling and distribution. The company is focused on niche opportunities that can operate profitably while increasing the longevity and asset value of the company.
KEG was formed in 2017 be the holding company for various acquired operating assets purchased by parent, Kingdom Resources, LLC over a three-year period.
TEAM
KEG’s management team has many years of experience in the energy business as well as coal business, timber and real estate backgrounds. • 4 operating companies covering a diverse geographic area mining many different coal seams • with 3 different mining methods (surface, highwall and underground room and pillar), • Coal operations with assets that are low-cost, long-lived and provide ability to expand production, • Emphasis on mine safety and regulatory compliance combined with environmental stewardship, • Compelling valuation due to localized relationship or operational circumstances for which KEG has a solution, • Solid execution of our core operations with additional coal projects to serve a rebounding market, and • Focus on minimizing risk profile on any opportunity 141.1 Mt of Total Estimated Reserves: 83.1 Mt of Proven Reserves; 58 Mt of Probable Reserves.
VISION
A key component to KEG’s strategy is market pricing. In 2015, the markets were at an all-time low; the Spot Market for Central Appalachian Coal was $39.00 per ton and now the Spot Market is $64.00 per ton and expected by coal research analysts to remain strong going into 2025. One of the main reasons for acquiring these assets was anticipated price increases and reduced output due to shrinking number of producers coupled with lack of available permits which made KEG’s assets more valuable upon placing the various assets together into one company. Additionally, KEG sought to purchase coal assets that would be mainly sold to industrial users, not utilities thereby reducing the price competition and EPA regulation. However, some of the coal produced by KEG is sought after by utilities due to its unique specifications. KEG does not compete with natural gas, as most of the industrial users cannot use natural gas to manufacture their products.
KEY POINTS
1. Unwavering Commitment to Corporate Governance
At KEG, we prioritize maintaining robust corporate governance and accountability in every facet of our operations. Our dedication to good governance lays the groundwork for sustainable growth, ensuring we deliver top-tier products and services while maximizing returns for our members.
2. Diverse and Integrated Operations
We are a comprehensive coal operation, encompassing extraction, processing, wholesaling, and distribution. Our four companies operate across diverse geographic areas, mining a variety of coal seams using three distinct methods: surface, highwall, and underground room and pillar.
3. Sfety and Compliance at the Forefront
We place paramount importance on mine safety, regulatory compliance, and environmental stewardship. At KEG, we believe that a safe and compliant operation is a successful one.
4. Minimizing Risk through Solid Execution
Our core operations are executed flawlessly, and we have additional coal projects in place to cater to a rebounding market. We are committed to minimizing risk in every opportunity we undertake.
5. Strategic Market Pricing
Our strategy is driven by market pricing. We have anticipated price increases and reduced output due to a dwindling number of producers and a shortage of available permits. This foresight makes KEG’s assets increasingly valuable.
6. Robust Internal Control System
We have a strong internal control system in place to protect our assets, maintain accurate accounting records, execute with appropriate authority, and ensure compliance with all relevant laws and regulations.
7. Experienced and Diverse Management Team
Our management team brings a wealth of experience from the energy sector, as well as backgrounds in coal business, timber, and real estate. This diverse expertise drives our success.
8.Valuable and Expandable Assets
Our assets are cost-effective, long-lasting, and offer the potential for production expansion. Our localized relationships and operational circumstances make KEG an attractive valuation proposition.
9. Market – Driven Strategy
Our pricing strategy is based on market trends. We have anticipated price increases and reduced output due to a shrinking number of producers and a lack of available permits, making KEG’s assets more valuable.
10. Secure Investment Opportunity
Our Senior Secured Notes (SSNS) are secured by all assets owned by the Issuer and its subsidiaries, as well as the Issuer’s business. Investing in KEG is a secure choice for your financial future.