Walter's decision to acquire the Mobile River Terminal has a strategic significance. This acquisition will not only ensure unrestricted shipping capacity but will also support Walter's long-term coking coal production plans in Alabama.

Recently, Walter Energy decided to acquire Canada's Western Coal Corp. through a cash and stock deal to meet the increasing demand for premium coal from Asian steel makers.

The company competes head to head with Arch Coal Inc. (ACI) and Massey Energy Co. (MEE). On a competitive landscape the net margin of the company fared better than its peers in the trailing twelve months.

Walter Energy currently retains a Zacks #3 Rank (short-term Hold rating). We maintain our long-tern Neutral rating on the stock.

Tampa, Florida-based Walter Energy is one of the leading U.S. producers and exporters of premium metallurgical coal to the global steel industry in the United States.