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Must-know: The future for Peabody Energy
Peabody Energy (BTU) operates only thermal coal mines in the U.S.
Wall Street analysts’ consensus estimate for loss per share was $0.289.
The company’s accounts receivables reduced to $447 million on June 30, 2014 from $557.9 million on December 31, 2013.
The U.S. operations recorded 6.2% growth in revenues from $970.9 million to $1.03 billion.
The company also has operations in Australia where it produces both thermal and metallurgical coal.
Natural gas prices throughout 2014 are up significantly from last year. But, natural gas prices are still lower than historical levels.
The drop in natural gas rigs year to date (or YTD) represents a trend that has been ongoing since late 2011, when natural gas rigs topped 900.
The oil rig count decreased from 1,563 to 1,554. The decrease resulted from a drop of seven rigs in the Eagle Ford and seven rigs in the Permian.
Horizontal drilling has become the more popular form of drilling over the past few years in the U.S.
The U.S. onshore rig count decreased by five rigs. It dropped from 1,801 to 1,796, during the week ending July 18.
Drilling rigs dropped from 1,875 to 1,871 during the week ending July 18. The number of oil rigs decreased by nine, while the number of natural gas rigs increased by four.
Arch Coal (ACI) has lost 30% since the start of the year.
Coal is usually extracted in two ways—through surface mining and through underground mining.
With largest coal reserves in the world, U.S. producers (KOL) manufacture excess coal.
The unemployment rate has fallen to 6.1% in June—the closest it has been to the Fed’s target in the past five years.
The improving economy and falling employment rate seems to have boosted the consumption.
Given that SSE’s debt-to-EBITDA ratio is among the lowest (only slightly higher than PES’s) and that it trades at the lowest EV/EBITDA, SSE’s equity could be undervalued compared to its peers.
Pioneer Energy Services Corporation (PES) offers its contract land drilling services to oil and gas exploration and production companies in Texas, North Dakota, Utah, Appalachia, and Colombia.
Seventy Seven Energy (SSE) is a well-field services company that carries out activities like drilling, hydraulic fracturing, rig relocation, and fluid handling and disposal.
SSE’s oilfield rentals segment provides rental tools and services for drilling, completion, and other activities for land-based oil and natural gas producers.