ACIIQ

Uncertainty surrounding the recovery of coal prices and the enactment of environmental regulations such as the Clean Power Plan impacted coal stocks in 1Q16.

For the week ended September 23, the EIA reported that natural gas inventory came in at 3,600 billion cubic feet compared to 3,551 Bcf one week earlier.

Although coal and crude oil don’t directly compete with each other as fuels, coal investors should still track crude oil prices.

For the week ending September 2, natural gas inventory came in at 3,437 Bcf (billion cubic feet), as compared to 3,401 Bcf one week earlier.

Cloud Peak Energy reported positive growth in its 2Q16 EBITDA margins. Cloud Peak Energy’s EBITDA margins came in at 11.1% in 2Q16.

For 2Q16, Westmoreland’s interest expenses came in at $29.2 million, as compared to $22.7 million in 2Q15 and $27.9 million in 1Q16.

Cloud Peak Energy (CLD) announced its 2Q16 earnings results after market hours on July 28, 2016. It posted strong operational performance for 2Q16.

Alliance Resource Partners (ARLP) announced its 2Q16 earnings results for the quarter ended June 30, 2016, before market hours on July 26, 2016.

Analysts expect Peabody Energy to report $55 million as EBITDA for 2Q16 and 5.1% as EBITDA margin. Lower EBITDA implies lower income from the company’s ongoing operations.

Peabody Energy (BTUUQ) reported about $1.3 billion as consolidated revenue for 2Q15. Analysts estimate that Peabody Energy will report about $1.1 billion in 2Q16.

According to its latest 10-Q filings, Westmoreland Coal (WLB) has about $1.13 billion of debt on its books as of March 31, 2016.

Analysts expect Westmoreland Coal to report EBITDA of $62.1 million and an EBITDA margin of 17.6%. This implies higher income from its ongoing operations.

Westmoreland Coal reported about $349 million in consolidated revenues for 2Q15. Analysts estimate that it will report $353 million in 2Q16 revenues.

According to EIA projections, the Clean Power Plan will not have a significant impact on the quantity of coal produced or coal prices in the short term, until implementation of the plan.

On February 9, 2016, the U.S. Supreme Court issued a stay of the EPA’s Clean Power Plan. As a result, the EPA can’t implement the rule until all legal challenges are resolved.

The Clean Air Act is a national air pollution control policy that regulates the emission of hazardous pollutants from stationary and mobile sources in the United States.

Coal mining companies incur significant expenditure in complying with all applicable federal and local laws.

According to the EIA, low sulphur content coal is defined as having less than 0.60 pounds of sulphur per million British thermal units.

According to the World Coal Association, there are two main underground mining methods in the US.

Land ownership in the US can be broadly divided into the following categories: federally owned land, state-owned land, privately owned land, and Native American land.

Peabody Energy (BTU), Arch Coal (ACIIQ), Cloud Peak Energy (CLD), and Alpha Natural Resources (ANRZQ) are the top four coal-producing (KOL) companies in the Unites States.

Coal types differ from each other as a result of the difference in their organic matter content and maturity.

For the week ended January 8, natural gas inventory came in at 3,475 Bcf (billion cubic feet) compared to 3,643 Bcf a week earlier.

Increased environmental scrutiny in power generation and steel production has an indirect impact on coal mining companies like Arch Coal. Power producers have been impacted the most by the Clean Air Act.

On January 11, 2016, Arch Coal (ACIIQ) filed for Chapter 11 bankruptcy. Although its bankruptcy was widely anticipated, stocks of major coal mining companies took a hard fall after the news.