Alpha Natural Resources
Natural Gas Inventories Down: Positive for Coal?
Inventories are a significant driver of commodity prices. In this part of our series, we’ll focus on inventory levels for natural gas.
Natural Gas Inventory Falls: Could Coal Miners Benefit?
In this series, we’ll examine the natural gas inventory for the week ended November 10, 2017, and its effects on natural gas and coal pricing.
Rising Crude Oil Prices Could Impact Coal Miners
As of November 3, 2017, Brent crude oil prices rose 2.1% on a week-over-week basis. Brent crude oil settled at $62.07 per barrel on November 3, 2017.
Westmoreland Coal’s Leverage and Liquidity Position
Interest expenses for Westmoreland Coal (WLB) have gradually increased since 1Q15. In 3Q17, they were $30.0 million compared to $29.5 million in 3Q16.
Westmoreland Coal Missed 3Q17 Earnings Estimates
Westmoreland Coal’s Coal-U.S. segment reported adjusted EBITDA of $34.3 million in 3Q17 compared to $38.0 million in 3Q16 and $23.7 million in 2Q17.
Why Westmoreland Coal’s Revenue Fell in 3Q17
For 3Q17, Westmoreland Coal reported consolidated revenue of $358 million compared to $371 million in 3Q16. That’s 11% higher than $323 million in 2Q17.
Peabody Energy’s Future Earnings: What the Company Expects
After its 3Q17 earnings release, Peabody Energy (BTU) increased its 2017 US sales guidance to 151 million–158 million short tons, from 148 million–153 million short tons.
Could Arch Coal’s Margins Improve in 3Q17?
Arch Coal’s earnings estimates In 3Q16, Arch Coal’s (ARCH) adjusted EBITDAR (earnings before interest, tax, depreciation, amortization, and restructuring) were about $81.3 million, and its EBITDAR margin was 14.8%. Analysts expect the company to report EBITDAR of about $95 million in 3Q17 and an EBITDAR margin of 17.3%. A higher EBITDAR figure suggests higher income from […]
Analysts Expect a Marginal Rise in Arch Coal’s Revenue in 3Q17
Arch Coal’s estimated revenue In 3Q16, Arch Coal (ARCH) reported consolidated revenue of ~$550.3 million. Analysts expect Arch Coal to post revenue of $550.7 million in 3Q17, a marginal increase of 0.06% year-over-year. The expected rise is primarily due to an anticipated increase in metallurgical coal shipments. Arch Coal expects its metallurgical segment to benefit from […]
Analysts’ Views on Arch Coal Ahead of Its 3Q17 Results
Analysts’ ratings As of October 27, 2017, of the nine analysts covering Arch Coal (ARCH) stock, eight (89%) recommended “buy” or “strong buy,” and one (11%) recommended “hold.” There were no “sell” or “strong sell” ratings. Arch Coal’s price target Arch Coal’s 12-month target price was $94.88 as of October 27, 2017. The target price indicates an upside […]
Will Strong Crude Oil Prices Affect Coal Producers?
On October 20, 2017, WTI (West Texas Intermediate) crude oil prices closed at $51.47 per barrel.
Why Most Analysts Rate Peabody Energy a ‘Buy’
Of the eight analysts covering Peabody Energy (BTU), six (or 75.0%) have given the company a “buy” rating, and two (or 25.0%) have given it a “hold.”
How Crude Oil Indirectly Impacts Coal Prices
On September 29, 2017, Brent crude oil prices closed at $57.54 per barrel compared to $56.86 the previous week.
Coal for Steel: ARCH’s Met Coal Operations
Arch Coal (ARCH) operates five mining complexes in the Appalachian region that produce metallurgical coal. Metallurgical coal is also known as coking coal and is used in steelmaking.
How Arch Coal Emerged from Chapter 11 Bankruptcy
On October 5, 2016, Arch Coal (ARCH) emerged from bankruptcy through successful financial restructuring.
Westmoreland Coal’s Canadian Operations: An Overview
Westmoreland’s Canadian operations Westmoreland Coal (WLB) acquired seven surface mines in Alberta and Saskatchewan, a stake in an activated carbon plant, and a char plant in Canada from Sherritt International in 2014. As of January 1, 2016, WLB’s Canadian operations are grouped as one entity, Prairie Mines & Royalty ULC. Its Canadian operations hold total […]
How Westmoreland Coal’s Business Model Differs from Peers’
Business model Westmoreland Coal (WLB) has a different business model than American coal producer (KOL) peer Arch Coal (ARCH), Alpha Natural Resources (ANRZQ), and Peabody Energy (BTU). Contract Westmoreland Coal’s contracts are long term and cost protected. According to company filings, its weighted average contract life (contract life weighted by tonnage) extends to 2022. Low-cost supplier […]
What Happened to Cloud Peak’s Decker Coal?
In December 2008, when Rio Tinto Energy (RIO) transferred its Western US operations to Cloud Peak Energy, it included a 50% stake in Decker Coal.
Why Analysts Expect Arch Coal’s Revenue to Fall in 4Q16
Arch Coal (ARCH) reported about $563 million in consolidated revenues for 4Q15.
Here’s Why Westmoreland Coal Beat 3Q16 Estimates
For 3Q16, Westmoreland Coal reported a record high adjusted EBITDA of about $71 million as compared to $48 million in 3Q15.
San Juan Acquisition Keeps Driving Westmoreland Coal’s Top Line
Revenue from the company’s coal mining operations in the US came in at about $168.9 million compared to $132.0 million in 3Q15 and $151.4 million in 2Q16.
Pulling Back the Curtain on ALRP’s 3Q16 Operating Performance
Alliance Resource Partners’s (ARLP) 3Q16 adjusted EBITDA came in at $178.4 million against analysts’ expectations of $165.2 million.
What You Can Expect from Cloud Peak Energy’s Future Earnings
After its 3Q16 results, Cloud Peak Energy (CLD) revised the low end of its 2016 sales guidance by 2 million tons.
How Did Cloud Peak Energy’s Coal Pricing Impact Its 3Q16 Results?
For 3Q16, Cloud Peak Energy (CLD) reported its realized coal price per ton sold at $12.33, as compared to $12.62 during the same period in 2015.
Why Did Cloud Peak Energy’s Shipments Fall in 3Q16?
Shipments from Antelope mine were a major revenue driver for Cloud Peak Energy in 3Q16, reaching 8.61 million tons, compared to 9.04 million tons in 3Q15.
How Analysts Rate ARLP ahead of Its 3Q16 Earnings
Of the four analysts covering Alliance Resource Partners (ARLP), two (50%) have given the company “buy” ratings, and two (50%) have given it “hold” ratings.
Why Are Analysts Rating Westmoreland Coal a ‘Buy’?
Of the three analysts covering Westmoreland Coal (WLB), 100% (three analysts) gave the company a “buy” recommendation.
Why Most Analysts Still Recommend a ‘Hold’ for Cloud Peak Energy
Of the six analysts covering Cloud Peak Energy (CLD), one gave the company a “buy” rating, three gave it a “hold” rating, and two gave it a “sell” rating.
Looking Closer at Westmoreland’s Leverage and Liquidity Positions
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.
Westmoreland Coal’s 2Q16 Net Income Missed Analyst Estimates
The 2Q16 operating income of Westmoreland’s Canadian Coal Mining segment was $4.2 million, as compared to $9.5 million in 2Q15 and $12.4 million in 1Q16.
This Segment’s Performance Was Key to Westmoreland’s 2Q16 Earnings
Revenue from Westmoreland Coal’s US Coal Mining segment came in at about $151 million, as compared to $133 million in 2Q15 and $155 million in 1Q16.
Coal Sales Price Dip Impacts Alliance Resource Partners in Q2
Alliance Resource Partners (ARLP) saw a nearly 2.0% fall in its average total coal sales price in 2Q16 compared to its reported sales price for 2Q15.
Will Peabody Energy’s Margins Improve in 2Q16?
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.
Inside Westmoreland Coal’s Margin Estimates
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.
What Are Analysts’ Ratings for Westmoreland Coal?
Of the four analysts covering Westmoreland Coal (WLB), 100% or four analysts gave the company a “buy” rating. There weren’t any “sell” or “hold” ratings.
Can Peabody Energy Rise from the Ashes?
As of February 29, 2016, Peabody Energy (BTUUQ) has about $940 million in liquid assets.
How Regulations and Natural Gas Prices Escalated Peabody’s Troubles
Coal mining companies such as Peabody Energy (BTUUQ) primarily cater to power utilities and steelmakers.
What Does Bankruptcy Mean for Peabody Energy’s Investors?
According to Peabody’s news release on its Chapter 11 filing, the bankruptcy court approved all of the first-day motions related to its Chapter 11 restructuring on April 14, 2016.
What’s Next for Peabody Energy?
During the restructuring process, Peabody Energy hopes to continue its normal course of business with cash generated from ongoing operations, existing liquidity, and new financing.
What Was Peabody Energy’s Path to Bankruptcy?
Peabody Energy (BTUUQ) expanded its presence both in the US and internationally through strategic acquisitions.
Why Did Westmoreland Coal Miss Adjusted EBITDA Estimates in 2015?
Westmoreland Coal (WLB) reported an ~11% increase in average cost of coal sold per ton compared to fiscal 2014. The average cost per ton of coal sold came in at $21.50 compared to $19.30 during fiscal 2014.
Bowie Resource Transaction: How It Impacts Peabody Energy
According to Peabody Energy’s filings, the proceeds from the transaction with Bowie Resource Partners are crucial for it to meet future financial covenants.
Peabody Energy Delayed Its 10K Filing: What It Means for Investors
On February 29, Peabody Energy announced in a press release that it wouldn’t be able to file its 10K on time. It has about $6.3 billion in debt on its books.
How Cloud Peak Energy Beat Adjusted EBITDA Estimates in 4Q15
Cloud Peak Energy reported a marginal increase in cash margins at $2.98 per ton sold in 2015 compared to $2.82 per ton sold in 2014.
Why Did Peabody Energy Miss Its 4Q15 Adjusted EBITDA Estimates?
Peabody Energy’s adjusted EBITDA for 4Q15 came in at $53 million—compared to analysts’ estimates of $116 million. The value fell by nearly 75% on a YoY basis.
The Stay on the Clean Power Plan: What’s in It for Coal Miners?
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.
Supreme Court Stays the Clean Power Plan: What’s the Impact?
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.
Why More Than Half of Analysts Rate Cloud Peak Energy a ‘Hold’
Of the ten analysts covering Cloud Peak Energy (CLD), two gave it a “buy” rating, six gave it a “hold” rating, and two gave it a “sell” rating.
How Developments in the Clean Air Act Will Impact Coal Mining
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.
How the Federal Leasing Process Affects Miners
Royalties and various expenditures related to leasing of land form a major portion of cash outflows for companies operating in the Western region.
Key Coal Mining Laws that Investors Should Understand
Coal mining companies incur significant expenditure in complying with all applicable federal and local laws.
What Are the Most Important Indicators for Coal Investors to Watch?
Major demand-side indicators for coal include electricity consumption and steel production.
Where Are the Low Sulphur Content Coal Mines in the US?
According to the EIA, low sulphur content coal is defined as having less than 0.60 pounds of sulphur per million British thermal units.
How Is Coal Mined from Coal Seams?
According to the World Coal Association estimates, coal recovery in surface mining in the US is more than 90%.
How Is Coal Mined in the US?
According to the World Coal Association, there are two main underground mining methods in the US.
How Does the Land Ownership Pattern in the US Affect Miners?
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.
Where Are the Key Coal-Producing Regions in the US?
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.
What Are the Different Types of Coal?
Coal types differ from each other as a result of the difference in their organic matter content and maturity.
Can Peabody Post Biggest Fourth-Quarter Earnings Drop in 5 Years?
Peabody Energy (BTU) reported $1.42 billion as consolidated revenue for 3Q15. Analysts estimate it will report $1.35 billion in 4Q15, almost 5% less on a QoQ basis.
What Does Bankruptcy Mean for Arch Coal Investors?
Arch Coal stockholders may not get anything from the restructured business, as the company is already insolvent, according to its latest 10-Q filing.