Cloud Peak Energy Inc
Why Alpha Natural Resources’ Massey Energy acquisition got messy
Alpha Natural Resources sold 84.8 million tons of coal in 2010 at an average price of $41.2, generating revenues of $3.9 billion.
Must-know: Why coal ranks differ from each other
Coal used for electricity purposes is often called steam or thermal coal. Coal used to make steel is called metallurgical (or met) or coking coal. Cloud Peak Energy (CLD) only produces thermal coal. Walter Energy (WLT) calls itself a pure-play met coal producer. Other producers like Arch Coal (ACI) and Alpha Natural Resources (ANR) produce met and thermal coal.
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.
How Low Demand Affected Westmoreland’s 1Q17 Cash Flows
In 1Q17, Westmoreland Coal Company (WLB) spent $7.2 million on capital expenditure, which resulted in free cash flow of $42.6 million.
Understanding Arch Coal’s Financial Position
Arch Coal’s leverage On June 30, 2017, the book value of Arch Coal’s (ARCH) long-term debt was about $315.6 million, of which ~$297 million is due for payment in 2024. Arch Coal’s leverage, which is its net debt divided by EBITDA (earnings before interest, tax, depreciation, and amortization), has increased since the acquisition of International […]
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.
Why Bankruptcy Could Be around the Corner for Arch Coal
Since the end of 3Q15 until December 17, Arch Coal has lost 72% compared to Peabody Energy’s (BTU) 64% and Cloud Peak Energy’s (CLD) 23% during the same period.
How Higher Crude Oil Prices Could Impact Coal Miners
Oil prices are a mixed driver for the coal industry (KOL) in the United States. Energy stocks, including coal stocks, generally follow crude oil prices.
Capacity at Issue for Natural-Gas-Fired Plants: This Is Why
According to the EIA, the capacity factor for coal-fired power plants came in at 68.5% in August 2016 compared to 69.3% in July 2016.
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.
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 […]
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.
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.
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.
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.
What Factors Drove Major Coal Company Stocks in 2Q16?
The recovery in commodity prices helped coal stocks recover from their 1Q16 lows. High natural gas prices can have an indirect positive impact on coal stocks.
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.
Westmoreland Coal Posts Net Losses in 2Q17
WLB’s operating loss from its Canadian Coal Mining segment came in at ~$11.7 million compared to its operating income of ~$3.6 million in 2Q16.
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.
Why Are Utilities Not Stocking Cheap Coal Aggressively?
Coal is an important commodity for railroad companies such as Union Pacific (UNP) and CSX (CSX). However, coal’s importance in freight is falling due to the emergence of shale oil.
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.
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.
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.
Cloud Peak Energy: How Does the Company’s Near Future Look?
While its sales came in lower than analyst estimates, Cloud Peak Energy (CLD) beat analyst estimates on the adjusted net losses front in 2Q15.
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.
Gauging Arch Coal’s Net Losses and EBITDA in 3Q15
Arch Coal reported adjusted EBITDA of $134.8 million in 3Q15 compared to $71.9 million in 3Q14 despite the pricing pressure it experienced during 3Q15.
Must-know: An overview of the US coal industry
With just under a billion tons produced in 2013, the U.S. ranks second in coal production. China is the largest producer with 3.7 billion tons. However, the U.S. holds much higher coal reserves at 237 billion tons—over a quarter of the world’s coal reserves. China has coal reserves at 114 billion tons. At the current consumption rate, the U.S. reserves can last for over 200 years.
What Do High-Capacity Factors of Coal-Fired Plants Mean?
Capacity factors are an important indicator when it comes to understanding power plants’ utilization levels.
What Could Drive Arch Coal Stock in 2017?
Although the majority of coal (KOL) stocks began 2016 on a weak note, they outperformed the broader market in 2016.
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.
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 Cloud Peak Energy is well positioned to survive the downturn
Unlike its peers (KOL) like Walter Energy (WLT), Alpha Natural Resources (ANR), and Arch Coal (ACI), Cloud Peark doesn’t have any exposure to metallurgical coal.
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.
Introducing Alliance Resource Partners: A Company Overview
In this series, we’ll explore how Alliance Resource Partners has expanded its business and evaluate its key operational metrics and financial position.
2015: A Year of Bankruptcies in the Coal Sector
Arch Coal (ACI) has narrowly escaped bankruptcy in 2015 so far. However, it may happen anytime, considering the dilapidated situation of Arch Coal’s finances.
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.
Alpha Natural Resources Guides for Lower Coal Prices in 2015
With $3.3 billion of debt still on the books and a coal price recovery nowhere in sight, Alpha Natural Resources’ balance sheet remains under pressure.
Coal Spot Prices Remain Steady for the Second Month
On December 18–22, the PRB and Illinois Basin coal prices remained at $12.10 per short ton and $32.60 per short ton, respectively.
Evaluating Arch Coal’s Sharp Fall in Appalachian Costs in 3Q15
Arch Coal reported stellar cost performance in 3Q15, with operating costs per ton of $63.7 in Appalachia, compared to $79.9 in 3Q14 and $76.5 in 2Q15.
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.
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.
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.
What Factors Could Drive Arch Coal Stock in 2H17?
1H17 in review Majority of the coal (KOL) stocks began 2017 on a weak note. The stocks have not been able to recoup from the slump until now. They have been outperformed by the broader market and the VanEck Vectors Coal ETF so far in 2017. On September 19, 2017, Arch Coal (ARCH) has fallen […]
Coal Prices Remained Steady in the Week Ending September 9
For the week ending September 9, 2016, PRB spot coal prices came in at $10.50 per ton, which is marginally lower than the previous week’s $10.65 per ton.
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.
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.
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.
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.
Coal Shipments Rise as Temperatures Drop
According to the EIA, US coal shipments rose to 16.1 million tons in the week ending December 4, compared to 15 million tons in the week ending November 27.
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.
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%.
What’s Driving Rio Tinto’s Energy and Minerals Division?
Rio Tinto’s (RIO) Energy and Minerals division now includes coal, iron ore pellets, titanium dioxide, borates, salt, and uranium.
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.
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.
Overview: Ambre Energy—a coal and oil shale export company
Ambre Energy was founded in June 2005. It’s an Australian-American coal and oil shale company. The company’s Australian headquarters are located at Brisbane. The head American office is located at Salt Lake City, Utah. The company operates in three business lines—U.S. coal export infrastructure, international coal marketing and trading, and U.S. thermal coal production.
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 Could Drive Alliance Resource Partners Stock in 2017?
The majority of coal stocks began 2016 on a weak note. But they outperformed the broader market in 2016—mostly through gains in the second half of 2016.
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).
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.
Tracking thermal coal indicators makes good investment sense
Currently, the thermal coal industry is experiencing heightened volatility. As a result, it makes even more sense for us to cover the short-term indicators.
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.
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 […]
Crude Oil Drops as OPEC Fails to Cap Production—But It’s Still All Eyes on Coal
WTI crude oil prices closed at $35.62 per MMBtu on December 11, compared to the closing price of $39.97 per barrel on December 4.
After Walter Energy, NYSE Stops Alpha Natural Resources Trading
On July 16, the NYSE announced that it suspended trading of Alpha Natural Resources’ (ANRZ) common stock with immediate effect.
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.
Are Rio Tinto’s Coal Volumes Expected to Increase in 2016?
Rio’s hard coking coal production was 8% lower YoY (year-over-year) in the first half of 2016.
Westmoreland Coal Company is up 83% while other coal stocks suffer
One thing that drew our attention towards WLB is its stock market performance. While stocks of other coal producers are down substantially since the start of the year, WLB is up 83%.
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.
Must-know: Is the steam coal industry losing steam in 2014?
While coal gained market share in June, this isn’t really surprising. To illustrate why, let’s have a look at the historical trend. As the summer begins, electricity generation in June has been higher than in May for the past three years.
Utilities Continue to Stockpile Coal as Prices Remain Subdued
Coal inventories indicate coal demand in the near future. Coal-fired power plants burn coal almost continuously.
Can Peabody Energy Rise from the Ashes?
As of February 29, 2016, Peabody Energy (BTUUQ) has about $940 million in liquid assets.
Must-know 3Q14 balance sheet details for Peabody Energy
The accounts payable are up by $195 million to $1.66 billion, while inventories are down by $57 million to $491 million. This boosts cash flows as the net investment in working capital falls, and cash is freed up.
Powder River Basin Coal Prices Rise to Multiweek High
For the week ended September 11, Powder River Basin spot coal prices averaged $10.97 per ton—$0.27 higher than the price for the week ending September 4.
Has Natural Gas Taken Coal’s Top Spot away for Good?
Natural gas’s market share came in higher than coal’s for the third consecutive month, which was only the fourth time in history.
Why Westmoreland Coal’s Shipments Fell in 2Q16
In 2Q16, all of the reportable coal mining segments of Westmoreland Coal (WLB) witnessed a decline in coal shipments both on a YoY and QoQ basis.
Electricity Generation Hit 5-Month Low in Week Ended October 28
US electricity generation fell to 69.0 million MWh (megawatt-hours) from 72.6 million MWh the previous week. It was a five-month low.
Will Coal Mine Terminations Continue to Affect Westmoreland?
In 1Q17, Westmoreland Coal Company’s (WLB) revenue of $339 million beat analysts’ consensus estimate by 1.1%.
Coal Regains the Top Spot from Natural Gas
After losing the top spot to natural gas in April 2015, coal regained its leadership position as a fuel in electricity generation by a narrow margin.
Shipment Deferrals Affect Alliance Resource Partners’ Coal Sales
Alliance Resource Partners’ (ARLP) shipments from the Illinois Basin came in at 6.1 million tons, which was 10.7% higher than 5.5 million tons in 2Q16.
What Lower Electricity Generation Means for Coal Producers
The EEI (Edison Electric Institute) publishes electricity generation data weekly. The current report for the week ended October 14, 2016.
Coal Production Estimated to Rebound in Week Ended October 22
The EIA (U.S. Energy Information Administration) estimated that US coal production would rise to 16.5 million short tons during the week ended October 22, 2016.
Is Vale on Track for Improvement in Its Coal Division?
After rising 54% sequentially in 1Q17, Vale’s (VALE) coal (KOL) production rose 24.8% quarter-over-quarter in 2Q17 to 3.0 million tons.
Did Arch Coal Meet Analysts’ 4Q16 Estimates?
Arch Coal (ARCH) announced its 4Q16 and fiscal 2016 earnings results on February 8. In this series, we’ll analyze ARCH’s 4Q16 results and compare its results with analysts’ expectations.
How Coal Production Changed during the Week Ended September 10
According to EIA estimates, US coal shipments fell to 15.1 million short tons during the week ended September 10, 2016.
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.