Fri, Jul. 15, 4:14 PM
Fri, May 27, 4:17 PM
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Fri, May 6, 4:26 PM
Fri, Apr. 15, 4:26 PM
Fri, Feb. 19, 4:19 PM
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%.
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%.
Dec. 11, 2015, 4:15 PM
Oct. 30, 2015, 4:24 PM
Oct. 9, 2015, 4:15 PM
Oct. 1, 2015, 12:34 PM
- Coal stocks (KOL -0.7%) are broadly lower after Moody's issues a weak forecast for the North American coal industry, saying the outlook "remains negative amid ongoing challenges for both metallurgical and thermal coal, including declining coal consumption and low met coal prices."
- The ratings agency forecasts a ~10% Y/Y decline in the industry's EBITDA for 2016, following the 25% drop it anticipates for 2015.
- BTU -10.7% after allowing for a 1-for-15 reverse split that took effect today; also ACI -5.4%, CNX -6.4%, WLB -5.1%, CLD -3%, ARLP -0.7%.
Sep. 25, 2015, 4:10 PM
Sep. 4, 2015, 3:56 PM
- Today's plunge in Arch Coal (ACI -15.6%) perhaps is attributable to a new Bloomberg article that indicates distressed debt swaps may be a thing of the past.
- ACI shares surged Monday after announcing that it had extended its debt exchange offer until Sept. 23, but apparently the company is having trouble completing the swap and cannot find enough shareholders who want to make the exchange.
- Today's article says ACI's proposed deal with bondholders to swap some of their securities into higher-ranking and longer-dated debt is stuck in limbo after another group of lenders - concerned that the exchange would not save ACI and thinking they might be better off if the company filed for bankruptcy - moved to block it.
- Some profit taking also may be at work, as the stock price has more than quadrupled in the past three weeks; also, J.P. Morgan came out with a negative outlook for coal prices (NYSEARCA:KOL), saying the U.S. thermal coal sector remains "subdued" because the oversupply of shale gas is putting severe pressure on U.S. natural gas prices.
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.
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Sector: Basic Materials
Country: United States
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