Peabody Energy Corp
Latest Peabody Energy Corp News and Updates
Challenges before Peabody Energy’s US operations in fiscal 2015
The retirement of coal-fired power plants and the impact of new regulations proposed by the EPA present two major blows to the US thermal coal industry.
Must-know: Why Peabody Energy fell 1.9% on July 22
Wall Street analysts’ consensus estimate for loss per share was $0.289.
Why Most Analysts Recommend a ‘Hold’ for Cloud Peak Energy
Of the nine analysts covering Cloud Peak Energy (CLD), seven analysts rated its stock as a “hold,” and two gave CLD a “buy” or “strong buy” rating.
Analysts Expect Peabody Energy’s Revenues to Rise in 3Q17
In 3Q15, Peabody Energy (BTU) reported $1.42 billion in revenues. Analysts anticipate that it will post $1.46 billion in 3Q17 compared to $1.26 billion in 2Q17.
Which Commodities Pulled Down CSX’s Carloads in the Week?
In the week ended October 1, 2016, CSX’s overall carloads reported a fall of 5.6% compared to the week ended October 3, 2015.
Why we’re not seeing capacity additions from coal-fired plants
The first half of 2014 saw 4,350 MW (megawatts) of new electricity generating capacity, according to the EIA (Energy Information Administration). Of this, 2,319 MW, or 53.3%, was natural gas–fired.
Union Pacific’s Carloads Slide Less than Rival BNSF Railway’s Railcars
Union Pacific’s combined coal and coke carloads fell by 26.2% in the latest reported week of 2016 on a year-over-year basis.
A lower-than-expected natural gas draw-down – what does it mean?
According to the EIA, 115 Bcf of natural gas was drawn out during the week ending January 30. It was a lower-than-expected draw-down.
CSX Trails Norfolk Southern in Total Railcar Units
In the week ending March 26, 2016, CSX’s (CSX) railcar units, excluding coal and coke, fell by 8.0%.
How Westmoreland Coal Maintains Positive Cash Flow Each Quarter
Range-bound margins Since the majority of Westmoreland Coal’s (WLB) contracts are long-term cost-protected contracts, its margins are protected. Many contracts have high-margin reclamation. The company’s EBITDA[1.earnings before interest, tax, depreciation, and amortization] margins have remained between 10% and 26% during the last six quarters. This trend contrasts with that followed by other major coal producers (KOL) such as […]
Uptick in price of natural gas gives hope to coal producers
The marginal increase in natural gas prices last week is good news for coal producers (KOL), especially the ones in the Appalachians and the Midwest.
Must-know: Why coal producers are wary of the EPA’s proposal
Generally, natural gas burns more cleanly than coal. Coal has the highest carbon intensity among major fossil fuels.
PRB coal producers may benefit from restocking at utilities
At the beginning of winter, the PRB coal producers are struggling to get enough rail cars to meet utilities’ demand. The PRB coal producers may see increased demand well into 2015.
Coal Prices Stabilized Last Week after the Previous Week’s Fall
PRB coal prices have remained under pressure since the start of the year due to low natural gas prices.
Natural gas prices stay pressured on a predicted warmer winter
Natural gas prices and coal’s market share in electricity generation highly correlate. When natural gas prices rise, coal gains market share.
Appalachian Coal Price Rose in the Last Week of September
During the week ended September 29, 2017, spot coal prices for the Powder River Basin and the Illinois Basin closed at the same price as the previous week.
Powder River Basin Coal Breaks the $10 Barrier: Will It Stay Up?
Powder River Basin coal prices averaged $10.55 per ton for the week ended July 24. Prices averaged above $10 a ton for the first time in the last five weeks.
US Electricity Generation Rises in Week Ended September 4
Electricity generation in the US increased to 86.8 million MWh for the week ended September 4, a 4% increase from the previous week’s 83.5 million MWh.
Despite a Rise in Coal, CSX’s Volumes Fell in Week 16
In the week ended April 22, 2017, CSX Corporation’s (CSX) overall railcar volumes fell ~0.6% YoY (year-over-year).
Rising Natural Gas Inventory Makes Coal Producers Sweat
The change of 94 Bcf in the underground natural gas inventory during the week of August 28 came in higher than Wall Street analysts’ expectation of 84 Bcf.
Crude oil prices recover a bit—what does it mean for coal?
Crude oil prices as of January 22 Crude oil prices recovered marginally during the week ended January 22, 2016. WTI (West Texas Intermediate) crude oil prices closed at $30.99 per MMBtu (million British thermal units) on January 22, 2016, compared to the closing price of $29.42 per barrel on January 15, 2016. Meanwhile, Brent crude […]
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.
Coal producers are feeling the heat
So far, the milder weather this winter kept natural gas prices subdued. As a result, coal producers (KOL) are under pressure. The current environment isn’t encouraging for coal.
Falling Temperatures Give Energy to Coal Producers and Utilities
More than 90% of the coal produced in the US is used for the generation of electricity, meaning that the power utility segment is coal’s largest end user.
Kansas City Southern’s Carloads Rolled against the Tide, Up 6.6%
In the week ended November 5, 2016, Kansas City Southern’s (KSU) total railcars rose 6.6% compared with the corresponding period in 2015.
Why the Powder River Basin produces more coal with fewer mines
The western region in the U.S. includes the area west of the Mississippi River. The region produced 520 million tons of coal for the 12 months ending September 11, 2014. The entire U.S. produced 974 million tons of coal during the same period. The western region accounted for 53% of the total coal production in the U.S. It’s important to note that 13 out of 24 western states produce coal.
Why Russian coal could hinder US coal exports to China
Coal accounts for less than a 20% share in electricity generation in Russia (RSX). Coal production is much higher than the domestic demand. As a result, most of Russia’s thermal coal is exported.
What to Expect from Major Coal Mining Companies in Their Future Earnings
Alliance Resource Partners (ARLP) revised its fiscal 2016 shipments guidance to 36.5 million–37.0 million tons from its prior guidance of 35.0 million–36.0 million tons.
How CSX’s Carloads Compared with Industry Volumes in Week 6
In the sixth week of 2018 (ended February 10), CSX posted a 9% loss in carload traffic.
Coal Spot Prices Remained Steady in the Week Ended October 20
During the week ended October 20, 2017, coal spot prices from all the regions remained steady compared to their prices in the week ended October 13.
Factors Driving Major Coal Company Stocks So Far in 4Q16
Stocks of all major coal mining companies remained upbeat after the US election results on November 9, 2016. The recent rally in natural gas prices helped coal stocks continue their momentum so far in December 2016.
A Huge Fall in Coal Pulls Down CSX Corporation’s Carloads
In the week ended June 18, 2016, CSX Corporation’s carloads excluding coal and coke fell by 3.6%
Inside Norfolk Southern’s Railcar Traffic Mix in Week 7
Norfolk Southern’s intermodal volumes were up 8.3% in the seventh week of 2018.
Coal Shipments Continue to Rise amid Weak Natural Gas Prices
According to EIA estimates, US coal shipments increased marginally to 18.7 million tons during the week ending August 28.
Why Coal and Utilities Indicators Matter To Long-Term Investors
Thermal coal is mostly used for electricity generation. So the state of the utilities sector is by far the biggest driver of the coal industry.
Why thermal coal industry indicators are important for investors
Currently, the coal industry is going through heightened volatility. As a result, it makes even more sense for us to cover the short-term indicators.
Why survival is for the fittest of US coal producers
Met coal producers are the worst hit in the current energy environment. Based on our analysis so far, we can conclude that the higher the revenue share of met coal, the steeper the stock prices fell in 2014.
Why Rio Tinto’s Kestrel Ramp-Up Keeps Coal Volumes Going
RIO’s hard coking coal production was up 10% YoY to 4 million tons in 9M15 due to improved production rates at Kestrel.
What Factors Drove the Major Coal Company Stocks in 1Q16?
Uncertainty surrounding the recovery of coal prices and the enactment of environmental regulations such as the Clean Power Plan impacted coal stocks in 1Q16.
A Closer Look at Arch Coal’s Financial Position and 2017 Guidance
Arch Coal’s (ARCH) 4Q16 earnings were driven by a strong rebound in metallurgical coal prices.
A Close Look at Kansas City Southern’s Carloads
Kansas City Southern’s carloads In the week ended February 18, 2017, Kansas City Southern’s (KSU) total railcars rose 12.6% from the corresponding week of 2016. In the same week, KSU hauled over 25,000 railcars, compared with 22,000 units in the week ended February 20, 2016. Carloads other than coal and coke rose 8.9% YoY (year-over-year). […]
No Change in Coal Prices Week-Over-Week
Powder River Basin coal prices Powder River Basin (or PRB) coal stood at $12.10 per short ton on November 24, 2017. PRB coal prices have not changed for the last three weeks. PRB has surface mines, where sub-bituminous coal is mined. These surface mines, located in Wyoming and Montana, are in the lowest-cost coal mining region in […]
Coal Prices Have Been Steady Week-over-Week
Powder River Basin (or PRB) coal prices settled at $12.10 per short ton when the market closed on December 1, 2017. The prices were constant for all of November.
Why Did CSX’s Carloads Rise?
CSX’s carloads In the week ended February 18, 2017, CSX’s (CSX) overall railcar volumes rose 6.6% YoY (year-over-year). In the seventh week of 2017, CSX hauled ~72,000 railcars, compared with 67,000 plus railcars in the same week last year. CSX’s carloads, excluding coal and coke, rose 3.7%. If you want to compare this week’s freight volume […]
Indicators affect regional coal producers differently
Peabody Energy (BTU), Arch Coal (ACI), and Cloud Peak Energy (CLD) are major coal producers that operate in the Powder River Basin region.
China—global iron ore and met coal industry’s lifeline
China accounts for almost half of the world’s raw steel production. In 2013, China produced 779 million tons of steel. This was a 7.5% increase over 724 million tons in 2012.
CSX’s Freight Volumes: How It Stacked Up against Its Peers
In the week ended April 1, 2017, total freight volumes of CSX (CSX) dipped to 4.6% year-over-year.
Westmoreland Coal Company is probably the strongest US coal name
Westmoreland Coal Company (WLB) operates a unique business model of supplying coal to power plants in the vicinity of mines through cost-effective transportation modes on long-term, cost-protected contracts.
Rise in Non-Coal Volumes Limits Fall in Kansas City Southern’s Carloads
In the week ended September 3, 2016, Kansas City Southern’s (KSU) total railcars fell by 0.75% compared with the corresponding period in 2015.
Analyzing Walter Energy’s 1Q15 Costs and Profitability
Walter Energy’s 1Q15 net losses were $80.2 million, compared with $92.2 million in 1Q14. The lower net loss largely resulted from a $58.6 million gain on the extinguishment of debt.
China’s thermal coal imports—who benefits?
Apart from shipping companies, coal producers (KOL) around the world benefit from China’s coal imports. However, competition in the Pacific market remains steep.
Did last week’s indicators impact thermal coal prices?
Central Appalachian thermal coal prices came in at $50.90 per ton for the week ending February 6. Coal prices increased—despite the fall in natural gas prices.
Kansas City Southern’s Carloads: Unfazed by Coal Volume Slump
In the week ended December 10, 2016, Kansas City Southern’s (KSU) total railcars rose 1.7% compared to the corresponding period in 2015.
A Summary of Kansas City Southern’s Freight Volumes in Week 9
In the ninth week of 2018, US-Mexico commerce-on-rail Kansas City Southern registered a 4% fall in its carload traffic.
Coal Prices Stay Put in Winter 2017
For the week ended December 15, Powder River Basin (or PRB) coal prices came in at $12.10 per short ton. PRB coal prices have remained at the same rate since November 10.
Where Cloud Peak Energy’s Stock Is Trading next to Peers
On August 17, 2017, Cloud Peak Energy (CLD) had a forward EV-to-EBITDA multiple of 5.5x.
Spot Coal Prices Remained Flat in the Week Ending November 3
Powder River Basin coal settled at $11.75 per short ton, while Illinois Basin spot coal prices closed at $32.60 per short ton.
Why natural gas injections affect thermal coal demand
Coal’s share in electricity generation is down from over 50% in 2004 to 39% in 2013. During the same period, natural gas’ share increased from 18% to 27.5%.
How Norfolk Southern’s Shipments Trended in Week 9
In the week ended March 3, 2018, Norfolk Southern saw a ~2% fall in carload traffic. It hauled ~67,700 carloads in the week.
What Does a Spike in Coal Power Plant Utilization Rates Mean?
The EIA published its latest report on capacity factors for power plants on July 27. Coal-based power plants surpassed natural gas-based power plants in utilization.
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 Did Coal Stocks Soar after the US Election Results?
The Republicans won the majority of the major coal-producing (KOL) states in the United States such as Wyoming, West Virginia, Kentucky, Pennsylvania, and Montana.
Walter Energy’s Path to Bankruptcy: The Beginning
Western Coal acquisition As we discussed in the previous part, Walter Energy traded under a dollar for more than a quarter until trading was suspended on the NYSE on July 8. The seeds of the fall were sowed back in 2011. Walter Energy filed for Chapter 11 bankruptcy on July 15, 2015. On April 1, […]
Cloud Peak Energy’s 2Q15 Shipments: Potential Risk Factors
Cloud Peak Energy (CLD) shipped 16.0 million tons of coal from its three owned and operated mines in the Powder River Basin (or PRB) in 2Q15.
Kansas City Southern’s Carloads Rolled against the Tide, Up 7.2%
In the week ended November 12, 2016, Kansas City Southern’s coal and coke railcar units fell 6%.
Why Kansas City Southern’s Carloads Jumped
In the week ended March 11, 2017, Kansas City Southern’s (KSU) total railcars rose 21% from the corresponding week of 2016.
Coal Prices in All Major Regions Remain Steady
For the week ending September 4, Powder River Basin spot coal prices averaged $10.7 per ton—$0.17 higher than the price for the week ending August 28.
The Flip Side of Alliance Resource Partners’ Business: Key Risks
As of June 30, 2017, ARLP’s long-term contracts totaled ~38.0 million tons for 2017, 20.1 million tons for 2018, and 11.0 million tons for 2019.
What Do Rising Crude Oil Prices Mean for Coal?
Crude oil prices rose for the second straight week, albeit at a slower pace. When crude oil production rises, there are fewer railcars available to transport coal.
Walter Energy Is Preparing for Chapter 11 Bankruptcy
On July 15, Walter Energy filed for Chapter 11 bankruptcy. This passes control over the company to its senior creditors. Junior debt holders will have to let go of their claims.
Coal Prices Have Been Constant Week-over-Week
The coal prices in the Powder River Basin (or PRB) reached $12.10 per short ton for the week ended December 8, 2017.
Why Coal and Power Indicators Matter for Long-Term Investing
Why are we combining thermal coal and power indicators? Thermal coal is mostly used for electricity generation.
Rio Tinto’s Coal Production Went On as Expected in 1H15
A sustained rise or fall in coal shipments is a significant indicator that affects the stock value of coal producers (KOL).
Analyzing Arch Coal’s Powder River Basin Cost Drops in 3Q15
In 3Q15, Arch Coal’s PRB operating cost per ton came in substantially lower, at $11.71 per ton compared to $12.42 in 3Q14.
Why the RAAX ETF Has Reduced Its Exposure to Coal Equities
At launch, RAAX had a small weighting to coal, but in May, this exposure was completely eliminated based on falling coal equity prices and weakening supply and demand data.
Union Pacific: How Its Railcar Traffic Trended in Week 7
In the seventh week of 2018, Union Pacific (UNP) registered a 5.2% expansion in intermodal traffic.
Must-know: China’s additions to its power generation capacity
China’s installed capacity has grown 10.8% every year over the last decade. It adds 80–90 GW every year—this is equal to the United Kingdom’s entire installed capacity.
BHP Billiton Revised Its Coal Costs. Here’s Why
Coal is one of the key commodities for BHP and contributes 21% of its revenues and 20% if its underlying EBITDA.
Powder River Basin Coal Spot Prices Recovered Sharply
During the week ended November 10, 2017, PRB coal closed at $12.10 per short ton, which was ~3% higher than $11.75 per short ton that coal maintained for the past five weeks.
How Arch Coal’s Leverage and Liquidity Compare
Arch Coal’s debt According to Arch Coal’s (ARCH) latest 10-Q filings, the book value of its long-term debt is ~$315 million, of which a term loan of ~$297 million is due for payment in 2024. It is also subject to quarterly principal amortization payments of $750,000. Arch Coal’s interest expenses were ~$6.0 million in 2Q17 […]
Could Arch Coal’s Debt Lead the Company to Bankruptcy?
Most American coal producers are building liquidity through various means to make sure they survive the downturn and avoid bankruptcy.
US Electricity Generation Remains Steady, But Will Coal Producers?
The latest EEI report for the week ending January 15, shows that US electricity generation jumped to 79.7 million MWh from 79.2 million MWh the week before.
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 […]
Coal Prices Remain Steady in Week Ended November 17
Power River Basin coal prices In the week ended November 17, 2017, PRB (Power River Basin) coal prices closed at $12.10 per short ton, the same price reported at the end of the previous week. PRB produces sub-bituminous coal from surface mines, which make it a low-cost coal mining area. These coal reserves are located in […]
Interpreting BHP Billiton’s Declining Coal Production: More to Come?
BHP Billiton’s coal business is the world’s largest supplier of seaborne metallurgical coal. Metallurgical coal production is vital to steel production.
How Did CSX’s Weekly Carloads Compare with US Railroads?
Coal accounted for 13.2% of CSX’s total volumes and 17.2% of its total revenues in 3Q16.
Natural Gas Inventory High Enough to Pressure Coal
A rise in natural gas inventory is a good indication that winter is over. If inventory is higher than expected, then so is expected supply.
Civeo to cut costs, pursue additional revenue opportunities
Civeo is also expected to benefit in 2015 from its recently completed McClelland Lake Lodge, the majority of whose rooms are under contract through the first quarter of 2017.
Natural Gas Inventory Tops Expectations: Bad for Coal
Natural gas inventory has risen over the past few weeks since the injection season has started. If inventory is higher than expected, it indicates a higher-than-expected supply, which pressures natural gas prices. A fall in natural gas prices hurts coal producers.
Natural Gas Inventories and Coal in Week Ended September 1
When the prices of other fuels are more attractive, the demand for coal can fall, and when other fuel prices increase, coal can become more attractive.
The Story behind the Slide in CSX’s Carloads
In the week ending May 21, 2016, CSX’s railcars excluding coal and coke declined by 2.6% YoY (year-over-year)—almost on par with NSC.
Why you should care about the EPA’s war on coal
Coal is the cheapest energy source. But it’s also the most polluting fossil fuel. Power plants emit harmful airborne pollutants like mercury, arsenic, nickel, and sulfur dioxide.
Will a Republican majority affect the coal industry?
Deadlock may continue The Republican majority in Congress can create trouble for President Obama’s projects. These projects include an immigration bill, Obamacare, and a quest for cleaner energy. But Obama has vowed to use his executive powers to make way for some of these bills. With the next presidential elections two years away, we may see a […]
Must-know: ANR’s thermal coal business in 3Q14
ANR produces thermal coal from its mines in the Appalachian and Powder River Basin (or PRB). The company had around three billion tons of thermal coal reserves.
Peabody Energy: Largest private coal producer’s 3Q 2014 earnings
Peabody Energy controls over 8.3 billion tons of coal reserves. Of these, ~7.3 billion tons, of thermal-grade coal reserves, are located in the United States.
Why working capital management saved the day for Peabody
The company’s accounts receivables reduced to $447 million on June 30, 2014 from $557.9 million on December 31, 2013.
How Does Vale Plan to Unlock Value in Coal?
Vale’s (VALE) focus in its coal division is on stabilizing the business, which is why it’s not bothered by the flat growth in production.
Inside the Slow Rise in CSX’s Railcar Traffic in Week 16
Eastern US railroad CSX’s (CSX) carload traffic rose slightly in Week 16, by 1.6% YoY (year-over-year).
How Genesee and Wyoming’s Carloads Trended in February
Major US rail stocks (BRK.B) (UNP) are poised to rise a lot in 2018 due to an improved environment for coal.
Why CSX’s 4Q17 Coal Revenues Fell
In 4Q17, the company realized revenues of $1.6 billion, which was 6% lower than its $1.7 billion in 4Q16.