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Mon, Jan. 25, 9:04 AM
- Peabody Energy (NYSE:BTU) +7.2% premarket after disclosing that it continues to negotiate with lenders regarding $1.5B in notes due in 2018 with the dual financial objectives of "optimizing liquidity and deleveraging."
- BTU says potential transactions being discussed with its lenders include the exchange of the 2018 notes for secured notes issued by a subsidiary that does not guarantee any of BTU's existing debt, two series of new notes issued by BTU, and the granting to lenders of BTU common stock.
- BTU says a potential non-guarantor subsidiary could include assets from BTU properties such as the Kayenta Mine in Arizona, the Francisco U/G Mine and Wild Boar Mine in Indiana, and the Gateway/Gateway North Mine in Illinois.
Fri, Jan. 15, 10:57 AM
- The Obama administration announces it will place a moratorium on new leases for coal mining on public lands, while the Interior Department studies the environmental impact and conducts a review of leases that could take three years.
- The moratorium is limited to new coal leasing, with exceptions for the metallurgical coal used in steel production, and companies that already hold federal coal leases such as Peabody Energy (BTU -9.2%) can continue to mine those reserves during and after the moratorium.
- Nearly 40% of U.S. coal now comes from federal land, much of it from the Powder River Basin in Wyoming and Montana.
- KOL -4.5%, CLD -7.6%, CNX -6.6%, CLF -6.6%, WLB -5.3%, ARLP -2.5%.
Tue, Jan. 12, 12:41 PM
Mon, Jan. 11, 2:49 PM
- Arch Coal (ACI -50.7%) is cut in half following news it has filed Chapter 11 bankruptcy and will be delisted from the NYSE, and the miner says its discussions with customers indicate that even after tumbling domestic coal demand the past eight years, "2016 pricing will remain weaker than previously anticipated."
- ACI's default on $3.2B of debt bring the metals and mining sector’s trailing 12-month default rate to 15% from 11% at the end of December and the default rate for the coal subsector an "unprecedented" 43%, according to Fitch Ratings.
- Analysts say investors should expect more such bankruptcies among commodity companies this year, as a strong dollar and slowing global demand growth should keep downward pressure on commodity prices.
- ACI's bankruptcy helps drag down other mining names today: BTU -19%, CNX -10.8%, YZC -2.3%, NRP -7.2%, CLD -11.4%, WLB -5.1%, ARLP +0.1%, KOL -2.6%.
Mon, Jan. 11, 12:43 PM
Tue, Jan. 5, 10:54 AM
- Peabody Energy (BTU -4.2%) agrees to pay $75M into a health care fund for Patriot Coal retirees affected by Patriot's 2013 bankruptcy.
- Patriot was spun off from BTU in 2007, and BTU had agreed in 2013 to pay $310M to help cover retiree benefits; Patriot filed for bankruptcy again in May 2015 and Peabody argued in court that the second bankruptcy case relieved it from future obligations to cover benefits.
- BTU says the new agreement improves its expected 2017 cash flow by $70M.
Dec. 28, 2015, 12:57 PM
- Much like oil/gas firms (hurt by fresh oil price declines), coal, gold, and silver miners are having a rough day. End-of-year tax and fund selling could be playing a role. Comex gold is down a moderate 0.6%, and Comex silver down 3.2%. The S&P is down 0.5%.
- Notable coal decliners: Peabody Energy (BTU -13.6%), Westmoreland Coal (WLB -6.4%), CONSOL Energy (CNX -9%), and Cloud Peak Energy (CLD -4%).
- Notable gold decliners: Goldcorp (GG -3.5%), Barrick Gold (ABX -3.1%), Newmont Mining (NEM -4%), Kinross Gold (KGC -3.8%), Gold Fields (GFI -6.7%), AngloGold Ashanti (AU -5%), Harmony Gold (HMY -6.5%), and Sibanye Gold (SBGL -4.2%).
- Notable silver decliners: Silver Wheaton (SLW -3.8%), Pan American Silver (PAAS -3.6%), First Majestic Silver (AG -6.9%), Tahoe Resources (TAHO -4.9%), and Coeur Mining (CDE -5.8%).
- ETFs: GLD, SLV, IAU, AGQ, PSLV, PHYS, USLV, SIVR, SGOL, ZSL, UGL, DGP, GTU, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, OUNZ, DGL, DBS, DGZ, DGLD, USV, GEUR, UBG, GYEN, TONS, QGLDX
Dec. 28, 2015, 12:40 PM
Dec. 24, 2015, 12:31 PM
Dec. 22, 2015, 12:15 PM
- Peabody Energy (BTU +16.4%) surges after disclosing that the Wyoming Department of Environmental Quality reaffirmed self-bonding eligibility for two of its mines in the state.
- BTU says the state's review was related to permits under renewal for the North Antelope Rochelle and Rawhide surface mines.
- The states administer the U.S. government's guidelines for self-bonding under the Surface Mining Control and Reclamation Act, and coal companies get a discount on insuring mine reclamation costs.
Dec. 18, 2015, 8:37 AM
- Peabody Energy (NYSE:BTU) +6.9% premarket on news it is in discussions to restructure some of its $6.3B in debt, including borrowing an additional $400M.
- BTU discloses a potential plan to raise $150M in debt financing secured by certain of its Australian assets, and a new $250M secured letter of credit facility through subsidiaries that do not guarantee the company's debt.
- BTU also says it is in ongoing discussions with holders of a $1.5B note due in 2018.
Dec. 14, 2015, 2:25 PM
- Coal stocks sink (KOL -1.7%) as renewable energy stocks rally following this weekend's climate change accord reached in Paris, which could foreshadow tougher worldwide regulations on coal and oil companies.
- The details of implementation will be left to individual nations, with a range of possible policy measures which could include tighter environmental regulations, taxes on carbon, and a shifting of government subsidies; analysts generally believe the net impact will be a further gradual reduction of global oil and coal demand growth over the decades to some, rather than an immediate downward revision.
- Among coal focused stocks: BTU -12.4%, CLD -10.8%, WLB -9.3%, CLF -5.2%, ARLP -4.4%, ACI +1.2%.
Nov. 23, 2015, 3:57 PM
- Peabody Energy (BTU +3.6%) has given up much of its early 15% gain but is still higher following Friday's news that it is selling its New Mexico and Colorado coal assets for $358M.
- J.P. Morgan analysts said earlier that the cash from the sale will be "helpful for maintaining liquidity and buying time," and anticipated the market's approval given the large short interest in many of the coal equities.
- JPM estimates the three mines in the sale are worth $450M-$540M, which - combined with the $105M reduction in liabilities - puts the deal at the lower end of the firm's valuation range but the $300M reduction in reclamation exposure is helpful; also, the sustainability of production at the Twentymile mine is seen as questionable.
Nov. 23, 2015, 9:19 AM
Nov. 20, 2015, 12:14 PM
- Peabody Energy (BTU -4.8%) and Cloud Peak Energy (CLD -5.1%) are downgraded to Sell at UBS, which says U.S. coal prices remain "cornered by market and regulatory forces."
- UBS says it sees the U.S. coal space remaining in a prolonged state of oversupply, with limited cost reduction potential left in the U.S. coal production base.
- "Any recovery in gas prices may come too late for the highly levered U.S. coal players, and even those with healthier balance sheets are having damage progressively inflicted as higher price legacy multi-year contracts roll off, cash burn continues, and utilities reduce forward coal purchases," UBS says.
- The firm maintains its Sell rating on Arch Coal (ACI -6.4%) and cuts its stock price target by 67% to $0.50; it also cuts targets for BTU by 82% to $6, CLD by 55% to $2.50, and Consol Energy (CNX -0.7%) by 10% to $9 with a Neutral rating.
Nov. 13, 2015, 10:47 AM
- The New York attorney general's office, which told Peabody Energy (BTU -1.7%) this week to disclose more details about potential financial risks from climate change regulations, is now considering whether the tactic could be applied to companies beyond the energy sector, Reuters reports.
- The AG investigation found that BTU repeatedly denied in public filings it could predict how potential climate change regulations would affect its business, even though its internal studies showed revenue could fall if coal were targeted in a carbon pollution crackdown.
- The BTU settlement could prompt companies to re-examine what they define as material to shareholders, and could pressure a range of companies facing regulatory risks over policy issues from obesity to soaring drug prices, according to corporate governance experts.
- At least one other case similar to BTU is in the works in New York, where the AG office reportedly opened an inquiry into whether Exxon Mobil misled shareholders about climate change risks.
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