VanEck Vectors Coal ETF (KOL) - NYSEARCA
  • Aug. 14, 2015, 2:48 AM
    • Fifteen U.S. states, led by coal-producing West Virginia, have launched an effort to halt President Obama's landmark climate policy while they prepare a legal challenge to have it overturned.
    • The states are first seeking a stay order, or injunction, because they say Obama administration deadlines mean the demand to cut emissions is effective immediately.
    • The Clean Power Plan calls for the U.S. power sector to slash carbon emissions 32% (from 2005 levels) in 2030.
    • ETFs: XLE, XLU, VDE, ERX, OIH, KOL, UTG, IDU, VPU, ERY, DIG, DUG, BGR, IYE, GUT, BUI, FENY, PXJ, FIF, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, PUI, SDP, PSCU, FUGAX
    | Aug. 14, 2015, 2:48 AM | 30 Comments
  • Aug. 4, 2015, 8:05 PM
    • The utilities (NYSEARCA:XLU) sector was Wall Street's biggest decliner today as natural gas was the surprise loser from Pres. Obama’s climate plan, with the White House apparently abandoning its previous enthusiasm for gas as a cleaner alternative to coal.
    • Gas producers were "confused and disappointed" that the administration eliminated an earlier projection that natural gas would contribute much more electricity, instead increasing the role of renewables; also perplexed were utility companies, who have led a power transformation and spent hundreds of millions of dollars to switch generating plants from coal to shale gas.
    • American Electric Power (NYSE:AEP) CEO Nicholas Akins says the U.S. does not have the luxury of being able to ditch nat gas, saying the only way to power big industrial processes is through large-scale, 24-hour generation close to consumers - “solar doesn’t provide that and wind doesn’t provide that."
    • The final plan is considered a boon for companies such as SolarCity (NASDAQ:SCTY) and NextEra Energy (NYSE:NEE) that have invested billions in renewable generation, but Sanford Bernstein calls NRG Energy (NYSE:NRG) the biggest potential loser from the plan, saying profits in some scenarios could tumble by half because most of its electricity comes from coal plants that are in EPA’s cross-hairs.
    • ETFs: XLE, XLU, VDE, ERX, OIH, KOL, UTG, IDU, VPU, ERY, FCG, DIG, GASL, DUG, BGR, IYE, GUT, BUI, FENY, FIF, PXJ, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, SDP
    | Aug. 4, 2015, 8:05 PM | 84 Comments
  • Aug. 3, 2015, 6:35 PM
    • Coal miners and related companies tumbled following today's announcement of the Obama administration's final Clean Power Plan, which aims to shift the U.S. energy mix towards renewable energy such as wind and solar while significantly limiting power plant carbon dioxide emissions.
    • Pres. Obama called the plan the “single most important step America has taken in the fight against global climate change," even though U.S. power plant emissions account for just 5% of global carbon emissions.
    • The final EPA rule requires a 32% cut in power plant carbon dioxide emissions by 2030 from 2005 levels, an increase from the 30% target proposed last year.
    • Industry officials are concerned about the plan’s cost, and Republicans and states hardest hit by the plan say they will fight it; more than a dozen states and the coal industry plan to sue the EPA, and several states say they will refuse to comply.
    • ETFs: XLE, XLU, VDE, ERX, OIH, KOL, UTG, IDU, VPU, ERY, DIG, DUG, BGR, IYE, GUT, BUI, FENY, PXJ, FIF, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, PUI, SDP, PSCU, FUGAX
    | Aug. 3, 2015, 6:35 PM | 58 Comments
  • Jul. 13, 2015, 12:49 PM
    • For a real sense of coal's diminishing prospects (NYSEARCA:KOL), check out what is happening in the bond market, where three of the biggest U.S. coal producers had the worst-performing bonds for Q2: Alpha Natural Resources (NYSE:ANR) -70%, Peabody Energy (NYSE:BTU) -40%, Arch Coal (NYSE:ACI) -30%.
    • Bonds are where coal companies traditionally turn to raise money for new mines and environmental cleanups, but investors are increasingly reluctant to lend to them, as coal bond prices tumbled 17% in Q2, Bloomberg reports.
    • Even setting aside environmental and health issues, renewables are on a trajectory to outcompete fossil fuels, starting with coal; between now and 2040, two-thirds of the money spent on adding new electricity capacity worldwide will be spent on renewables, according to the analysis.
    | Jul. 13, 2015, 12:49 PM | 9 Comments
  • Jul. 10, 2015, 4:11 PM
    | Jul. 10, 2015, 4:11 PM | 2 Comments
  • Jun. 30, 2015, 11:25 AM
    • Coal companies (KOL -0.8%) are surrendering much of the gains they enjoyed following yesterday's Supreme Court decision against the EPA's mercury emissions regulations, as the initial reaction may prove rosier than the actual benefit to the coal industry.
    • The consensus is that the ruling might force the EPA to be less aggressive about its efforts to cut pollution but will not help coal overcome competition from gas and alternative energy; also, the oversupply of natural gas likely will continue to depress the price of gas and reduce coal sales.
    • The ruling could prove too late to provide a reprieve for most of the utilities that already had spent the resources to retrofit or retire, Sterne Agee analysts say, but lower MATS compliance operating costs could help some PRB coal power plants compete more aggressively on the margin with gas-fired power plants.
    • Citigroup notes the news has important implications for the Clean Power Plan proposal scheduled to be finalized mid-summer 2015, and views the ruling as a net positive for the U.S. thermal coal market and miners such as Peabody Energy (BTU -11.3%), Alliance Resource Partners (ARLP +1.5%),Alliance Holdings (AHGP -0.1%) and Foresight Energy (FELP +0.1%).
    • Also: ACI -4.7%, ANR -6.9%, CLD -7%, WLB -2.9%, WLT -12.9%.
    | Jun. 30, 2015, 11:25 AM | 28 Comments
  • Jun. 29, 2015, 11:38 AM
    • Coal stocks (KOL +0.3%) are rallying after the Supreme Court threw out the EPA’s first-ever rules requiring coal-fired power plants to cut emissions of mercury and other toxic air pollutants, saying the agency should have weighed the cost of compliance in deciding whether to regulate.
    • The ruling means the EPA must go back to the drawing board, which possibly could push any new emissions rules past Pres. Obama’s time in office.
    • Coal companies are enjoying hefty gains: WLT +28.2%, ACI +15.1%, BTU +11.2%, ANR +5.4%, CLD +5.2%, RNO +3.9%, WLB +1.9%, CNX +1.4%.
    • Select utility names also are seeing some strength: AEP +1%, PCG +0.9%, D +0.6%, NEE +0.6%, EXC +0.3%.
    | Jun. 29, 2015, 11:38 AM | 66 Comments
  • Jun. 26, 2015, 11:38 AM
    • Peabody Energy (BTU -10.2%) sees continued weakness, down ~10% so far today and 20% on the week, although all coal mining shares (KOL -1.5%) have been hammered in recent days.
    • Moody's downgraded BTU's corporate credit rating last night to B3 from B2 with a negative outlook, reflecting the rating agency's expectation of a more precipitous deterioration in the company's credit metrics than previously forecast due to the ongoing decline in the seaborne met coal markets.
    • The firm sees BTU's debt/EBITDA ratio approaching 9x in 2015 and leverage remaining elevated at ~7x in 2016; absent asset sales, BTU is seen generating negative free cash flows in 2015 and 2016.
    • However, BTU and other coal names have been sliding all week; Barron's Ben Levisohn speculates investors may be worried about the pending Supreme Court decision - in light of the Court's "having tilted leftward in its rulings" this week - on whether EPA rules that caused utilities to shutter some coal-fired plans are legal.
    • Related tickers: ACI, WLB, CLD, ANR, WLT, CNX, NRP.
    | Jun. 26, 2015, 11:38 AM | 27 Comments
  • Jun. 24, 2015, 2:50 PM
    • A bill to require California's state pension funds to sell their investments in companies that generate at least half their revenue from coal mining has passed a committee vote in the state Assembly.
    • Calpers says it invests in 20-30 thermal coal mining companies as defined under the bill, valued at $100M-$200M, including Peabody Energy and Arch Coal; Calstrs has coal holdings of ~$40M.
    • Pension funds are under pressure from environmental activists to halt investing in fossil fuels; Norway's parliament voted recently to cut coal investments by its $880B sovereign wealth fund, while some U.S. universities have made similar moves.
    • Coal stocks already were trading lower before the news: BTU -10.1%, ACI -9.4%, ANR -7.4%, WLB -2.7%, CNX -1.8%, KOL -0.4%.
    | Jun. 24, 2015, 2:50 PM | 65 Comments
  • Jun. 19, 2015, 4:14 PM
    | Jun. 19, 2015, 4:14 PM | 1 Comment
  • Jun. 17, 2015, 7:17 PM
    • Benchmark prices for metallurgical coal used in steelmaking have plunged an additional 15% from levels that had already hit a six-year low, as Japanese buyers reportedly are signing contracts that pay $93/metric ton, the lowest price since 2004.
    • This summer’s price decline is so steep that it could force cutbacks around the world, even at mines that were profitable as recently as the spring, says Doyle Trading's Ted O’Brien, adding that more U.S. mines likely will be forced to close.
    • Prices for both met and steam coals are not likely to recover substantially through at least 2016, putting U.S. miners in a position where they cannot avoid losing money, BB&T analyst Mark Levin says.
    • Relevant tickers: KOL, BTU, WLB, CLD, ANR, ACI, WLT
    | Jun. 17, 2015, 7:17 PM | 25 Comments
  • Jun. 12, 2015, 4:15 PM
    | Jun. 12, 2015, 4:15 PM
  • Jun. 12, 2015, 3:11 PM
    • Peabody Energy (BTU -8.1%) and Arch Coal (ACI -12.3%) plunge to all-time intraday lows amid concerns that they will have to pay more for insurance that covers environmental damage.
    • "Investors don’t know how to handicap this self-bonding issue,” says Doyle Trading CEO Ted O’Brien. "Until the companies come out and give Wall Street certainty that they know how to deal with it, I think we’re going to be stuck in this vortex."
    • Wyoming regulators have told Alpha Natural Resources (ANR -10.6%) that it no longer qualifies for a self-bonding program which allows coal producers to cheaply insure their clean-up costs in case of bankruptcy, and are reviewing financial data from BTU and ACI to see if they still qualify.
    • Two other coal miners, Cloud Peak Energy (CLD -6.7%) and Walter Energy (WLT -8.2%), also have sunk to record intraday lows.
    • ETF: KOL
    | Jun. 12, 2015, 3:11 PM | 37 Comments
  • Jun. 10, 2015, 2:45 PM
    • U.S. coal companies worried about the Obama administration’s proposed clean air rules actually face a bigger threat: cheap, abundant natural gas, which is crushing coal prices with no letup in sight, according to a Bloomberg report.
    • Shale formations in the eastern U.S. are yielding record amounts of gas, pushing prices of the fuel in the region below coal, which already had been 60% less expensive on average since 2001; as power generators use more gas, coal is piling up at the fastest rate since 2009.
    • U.S. utilities are on track to end 2015 with 171M tons of coal in reserve, the highest since 2012, says a BB&T analyst - “It’s going to be ugly,” says Doyle Trading's Hans Daniels. “When stocks build up like that, it just defers the pain for the coal companies.”
    • Most coal names are sharply lower: BTU -2.1%, ANR -9.7%, ACI -8.4%, CLD +0.9%, WLB -1.9%, CNX -1.1%, WLT -1.6%.
    • ETFs: UNG, UGAZ, DGAZ, KOL, BOIL, GAZ, KOLD, UNL, DCNG
    | Jun. 10, 2015, 2:45 PM | 78 Comments
  • Jun. 9, 2015, 2:24 PM
    • The D.C. Circuit Court of Appeals dismisses a challenge to an Obama administration proposal to cut carbon emissions from U.S. power plants, ruling the lawsuit was premature.
    • Coal companies (NYSEARCA:KOL) and 14 coal-dependent states sued to stop the draft regulation that is a priority for the Obama administration, but the court said the challengers cannot challenge the EPA’s proposal until the administration issues a final regulation, which is expected in August.
    • The challengers said the regulation - which, if enacted, would result in a 30% cut in power-plant carbon emissions by 2030 based on emissions levels in 2005 - was such a dramatic, labor-intensive overhaul that it was an immediate threat to the U.S. coal industry.
    • Coal equities are mostly higher today: BTU +6.8%, ANR +0.4%, ACI +0.9%, CLD -1.6%, WLB -0.3%, WLT +0.6%.
    | Jun. 9, 2015, 2:24 PM | 15 Comments
  • Jun. 4, 2015, 2:57 PM
    • The EPA concludes there is no evidence that fracking has had a "widespread, systemic impact on drinking water," according to a five-year analysis of U.S. water pollution risks released today.
    • The EPA finds that, while there have been some cases involving spills and leaking wells, the spread of fracking did not cause extensive damage to groundwater resources.
    • The study warns of “potential vulnerabilities” to water supplies that need to be addressed, including ensuring wells are well built and wastewater is disposed of properly.
    • The report is the U.S. government’s most comprehensive examination of the relationship between fracking and drinking water, and it appears to mostly vindicate the energy industry's position that fracking can be carried out safely and does not need to pose a threat to water.
    • ETFs: XLE, VDE, ERX, OIH, XOP, KOL, ERY, FCG, DIG, GASL, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG
    | Jun. 4, 2015, 2:57 PM | 17 Comments
KOL Description
VanEck Vectors Coal ETF (KOL) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Coal Index (MVKOLTR), which is intended to track the overall performance of companies involved in coal operation (production, mining, and cokeries), transportation of coal, from production of coal mining equipment as well as from storage and trade.
See more details on sponsor's website
Country: United States
ETF Hub
Find the right ETFs for your portfolio: Visit Seeking Alpha's ETF Hub