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.
According to EIA estimates, the natural gas inventory for the week ended December 1, 2017, is 3,695 Bcf (billion cubic feet). This reading is just 2 Bcf above the 3,693 Bcf recorded for the week ended November 24.
According to EIA estimates, natural gas inventory for the week ended November 24, 2017, was 3,693 Bcf, which is 0.9% lower than 3,726 Bcf for the previous week.
In this series, we’ll review the natural gas inventory levels as reported by the EIA (U.S. Energy Information Administration), and how they have impacted natural gas and coal prices.
Weekly coal production Coal shipment metrics for the week ended November 10, 2017, were released by the EIA (US Energy Information Administration) on November 16, 2017. Coal is a primary commodity for railway companies such as Union Pacific (UNP) and Kansas City Southern (KSU). Each week, US coal production information is issued based on railcar loadings. In […]
On November 10, 2017, the price of WTI crude oil closed at $56.74 per barrel. That was 1.9% higher than $55.64 per barrel when the market closed on November 3, 2017.
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.
For 3Q17, Westmoreland Coal posted 13.6 million tons in total coal (KOL) shipments compared to 13.9 million tons in 3Q16 and 11.0 million tons in 2Q17.
All three Wall Street analysts covering Westmoreland Coal Company (WLB) gave the company a “buy” rating. There were no “sell” or “hold” ratings for the company as of October 27.
According to the latest company filings, the book value of Peabody Energy’s (BTU) debt as of June 30, 2017, after exiting from bankruptcy is $1.77 billion.
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 […]
ARLP supplies coal to its customers by rail, barge, and truck. Its mines are in favorable geographic locations that minimize transportation costs for customers.
In this series, we’ll explore how Alliance Resource Partners has expanded its business and evaluate its key operational metrics and financial position.
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 […]
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 […]
In this series, we’ll analyze Westmoreland Coal’s (WLB) business model. We’ll explore how the company has expanded its business, and evaluate its key operational metrics and financial position.
Cloud Peak Energy’s 2017 guidance Cloud Peak Energy (CLD) has lowered its 2017 adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) guidance range by $5 million, to $85 million–$105 million from $85 million–$110 million. Cloud Peak expects an increase in shipments in 2H17. The company has ~56 million tons contracted for 2017, with an anticipated […]
Westmoreland Coal Company (WLB) is expected to release its 2Q17 earnings results on August 3, 2017. Let’s take a look at its stock’s recent performance.
Analyst ratings According to recent data compiled by Thomson Reuters, of the nine analysts covering Cloud Peak Energy (CLD), two (or 22.0%) gave the company a “buy” or “strong buy” rating, and seven (or 78.0%) gave it a “hold” rating. There were no “sell” or “strong sell” recommendations. There have been no revisions in ratings […]
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.
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.
Among the major coal mining companies, Peabody Energy (BTUUQ) has the highest level of debt on its books. On September 30, 2016, Peabody Energy had ~$8 billion in the form of consolidated debt.
The majority of coal mining companies witnessed a drop in their 3Q16 revenues due to lower demand for coal in both domestic and international markets when compared to 3Q15.
Westmoreland Coal (WLB) and Arch Coal (ARCH) witnessed an improvement in average coal sales price per ton sold on a YoY basis when compared to its peers.
All major coal mining companies reported higher coal (KOL) shipments in 3Q16 compared to 2Q16. However, a majority of them reported lower shipments on a year-over-year basis.
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.
During their 2Q16 earnings calls, Century Aluminum (CENX) and Norsk Hydro (NHYDY) expressed concern over higher Chinese supply in the second half of the year.
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.
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.
Alliance Resource Partners (ARLP) announced its 3Q16 earnings results before market hours on October 28. In this series, we’ll analyze the company’s 3Q16 results, compare the results with analyst expectations, and analyze the factors that caused deviation.
For 3Q16, Cloud Peak Energy posted adjusted EPS of $0.06, as compared to the analysts’ consensus estimate of -$0.12. Its stock price rose ~13% the same day.
Among major coal mining companies, Peabody Energy has the highest debt on its books. As of June 30, it had ~$7.80 billion in the form of long-term debt.
Most coal mining companies witnessed losses during 2Q16. Cloud Peak Energy’s adjusted net income rose from -$18 million in 2Q15 to $30 million in 2Q16.
Of all the major coal mining companies, Alliance Resource Partners’ cost of sales per ton fell the most in 2Q16. It reported a 14% decline on a YoY basis.
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.
Of the two analysts covering Peabody Energy (BTUUQ), both gave the company a “sell” rating. There were no “hold” or “buy” ratings for the stock as of July 13, 2016.
Peabody Energy (BTUUQ) is expected to announce its 2Q16 earnings results on July 26, 2016, after Market hours. In this series, we’ll look at analysts’ expectations for the company’s earnings.
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.
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.
So far, Westmoreland Coal’s stock outperformed its peers in 2016. The recent rally in commodity prices helped the stock recover from its February lows.
Of the major coal (KOL) mining companies, Westmoreland Coal (WLB) is the only company to witness a rise in adjusted net income on a YoY (year-over-year) basis.
According to Westmoreland Coal’s (WLB) company filings, the acquisition of San Juan Coal in January 2016 helped WLB to report higher adjusted EBITDA in 1Q16.
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.
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.
Alpha Natural Resources (ANRZ) filed for bankruptcy on Monday, August 3, 2015, as we expected. We had raised the red flag on the company on various occasions in our analysis.
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.
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.
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%.
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%.
