Even after being one of the better-managed companies among American coal producers (KOL), Cloud Peak Energy (CLD) has seen its stock price dwindle amid the industry’s chaos. CLD’s stock price dropped 20% in 2Q15 to $4.66. The stock lost almost half its value in 1H15 despite a Republican majority in congress at the end of 2014 bringing some rays of hope to American coal producers. The Supreme Court refused to accept a major regulation against coal-fired power plants on June 30, 2015. However, CLD’s stock lost 32% in July 2015 and closed at $3.18 on July 31 amid industrywide concerns.
Alpha Natural Resources (ANRZ), Arch Coal (ACI), and Walter Energy (WLT) traded in the penny stock zone for most of 2Q15. While ANRZ and WLTG’s trading is suspended by the NYSE, Arch Coal (ACI) recently announced a reverse stock split to prop up its stock prices and stay listed on the exchange. Walter Energy filed for bankruptcy on July 15, and Alpha Natural Resources (ANRZ) filed for bankruptcy on August 3, 2015.
Peabody Energy’s (BTU) shares lost 55% in 2Q15 as metallurgical coal prices and demand continued to dwindle. Consol Energy (CNX) lost 22% to end the quarter at $21.74 as weak natural gas prices weighed heavily on the stock. Even the better-off coal MLPs like Alliance Resource Partners (ARLP) and Natural Resource Partners (NRP) lost heavily during the quarter. The VanEck Vectors Coal ETF (KOL), which invests 30% of its holdings in American coal producers, lost 14% during the quarter.