Mon, Sep. 5, 4:18 AM
- The United States joined China on Saturday to formally ratify the Paris agreement to curb climate-warming emissions, which could help put the pact into force before the end of 2016.
- The accord is the culmination of more than 20 years of effort to cut global greenhouse gas emissions and many nations are eager for it to take effect this year.
- ETFs: XLE, VDE, ERX, OIH, XOP, KOL, FCG, ERY, GASL, DIG, PBW, DUG, BGR, XES, IYE, IEO, FENY, IEZ, QCLN, PXE, GASX, PXI, FIF, PXJ, RYE, NDP, GUSH, PSCE, DRIP, DDG, FXN, CHIE, PUW, CRAK, HECO, SOP, UOP, NANR, TONS, ERGF, ERYY, JHME
Fri, Sep. 2, 4:17 PM
Fri, Aug. 19, 5:15 PM
Thu, Aug. 18, 7:45 AM
- For many years, General Electric (NYSE:GE) assumed coal's future was challenged by environmental and cost issues, and therefore promoted natural gas as an alternative.
- Now, as demand rises in India and Southeast Asia, GE is bullish about coal again, WSJ reports.
- GE leaders say they can reap decades of profits from existing coal power plants, installing upgrades that will come in response to slowly tightening emissions rules and utilities' desire to boost output, and are poised to build coal facilities in developing economies.
- ETFs: KOL, TONS
Tue, Aug. 16, 5:27 PM
- The Office of Surface Mining and Reclamation Enforcement announces plans to toughen "out-of-date" rules on self-bonding, the program that allows healthy coal companies (NYSEARCA:KOL) to post promissory notes instead of collateral to guarantee returning disturbed land to its natural setting.
- Among the changes, the regulator proposes modifying self-bonding eligibility standards, diversifying financial assurance options for mine cleanups and ensuring an independent third-party review of self-bonded entities' current and future financial health.
- Peabody Energy (OTCPK:BTUUQ), Alpha Natural Resources (OTCPK:ANRZQ) and Arch Coal (OTCPK:ACIIQ) - three of the four largest U.S. coal companies - have filed for bankruptcy in the past year, with more than $2B in self-bonds for future mine cleanups across several states.
Fri, Jul. 15, 4:14 PM
Fri, May 27, 4:17 PM
Fri, May 13, 4:16 PM
Fri, May 6, 4:26 PM
Fri, Apr. 22, 3:43 AM
- Leaders from 130 nations are gathering in New York for the formal signing of the climate change accord reached in Paris four months ago, which aims to limit the overall world temperature rise to below 2 degrees Celsius.
- With each country's signing of the pact, they must also submit an action proposal plan for the deal to be effective.
- The target date is 2020, but if enough countries ratify, officials say the agreement could enter into force much sooner.
- ETFs: XLE, ERX, VDE, KOL, OIH, ERY, DIG, DUG, IYE, FENY, PXJ, RYE, FXN, DDG
Fri, Apr. 15, 4:26 PM
Fri, Feb. 19, 4:19 PM
Tue, Feb. 16, 11:27 AM
- Analysts say the death of U.S. Supreme Court Justice Scalia over the weekend may have improved the likelihood that Pres. Obama's Clean Power Plan will survive a judicial review.
- Last week, the Court voted 5-4 to delay the EPA's scheduled rollout of Obama's plan to dramatically cut carbon emissions from the power industry; the D.C. Circuit Court of Appeals likely will rule this fall on a challenge to the plan, with the conventional wisdom expecting the three-member court panel to rule favorably for the White House, setting up an appeal to the Supreme Court.
- With the death of Scalia, a conservative voice on the court with a history of limiting government regulation, the chances of the plan being upheld would seem to have improved; an eight-member Court split 4-4 would allow the lower court ruling to stand, and it is far from certain that a Republican will be elected in November and name Scalia's replacement or that delaying tactics by Republican Senators will prove successful.
- Environmental attorney Brian Potts had placed the odds of the Clean Power Plan surviving judicial review at less than 10%; with Scalia’s death, he places the likelihood at greater than 75%.
- ETFs: XLE, XLU, VDE, ERX, OIH, UTG, KOL, IDU, VPU, ERY, DIG, DUG, BGR, IYE, GUT, BUI, FENY, FIF, PXJ, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, SDP
Wed, Feb. 10, 9:49 AM
- Coal stocks open with strong gains after yesterday's decision by the U.S. Supreme Court to block proposed regulations of coal fired power plants, likely pushing out a potential hearing after the presidential election: BTU +12.7%, CLD +19.7%, CNX +2.2%, CNXC +5.2%.
- The court’s order is temporary and is not a ruling on the merits, but it indicates the court’s conservative majority has misgivings about the emissions plan, and signals the rules could run into trouble in the courts, which could hurt the Obama administration’s ability to follow through on U.S. commitments in the Paris climate deal.
- FBR Capital says that while it does not foresee any near-term change to its outlook for coal companies, the delay could improve the long-term perception toward coal producers in maintaining meaningful market share as a fuel for domestic electricity generation (Briefing.com).
- FBR believes Westmoreland Coal (WLB -4.4%) and Alliance Resource Partners (ARLP -1.4%) could receive the most sustainable valuation benefit and investor interest following the Supreme Court action.
- ETFs: KOL
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%.
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%.