Rhino Resource Partners: New Leadership, New Strategy?
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Thu, Jul. 31, 7:11 AM| 1 Comment
Tue, Jul. 29, 10:33 AM
- Arch Coal (ACI +3.5%) moves higher after its Q2 earnings loss came in better than expected as operating costs per ton fell 7%.
- Q2 sales fell 7% Y/Y to $713.8M, missing analyst consensus, but operating costs per ton fell to $20.55 from $21.19.
- ACI lowers its FY 2014 sales volume targets, including cutting its thermal sales volumes forecast to 124M-130M tons from 124M-132M tons to reflect the effects of transportation bottlenecks and the impact of a fall in steel production.
- Other coal names also are higher: ANR +4.3%, ARLP +2.4%, PVA +1.9%, WLB +1.9%, BTU +1.4%, RNO +0.9%, WLT +0.8%, KOL +0.4%.
Mon, Jul. 7, 12:44 PM
- Coal stocks suffer a beating after Deutsche Bank downgrades Peabody Energy (BTU -3.3%) to Hold from Buy with a $19 price target, down from $23, to reflect lower realized coal prices (particularly metallurgical coal) and anticipated ongoing cost pressures in foreseeable future.
- Consol Energy (CNX -1.7%) is the firm’s only Buy-rated coal stock because of the company’s “fast-growing natural gas business and solid financial position.”
- Although the Deutsche team says its focus is shifting to more company specific stories from an emphasis on sector performance, other coal companies are sharply lower: ACI -4.3%, ANR -4.8%, YZC -1.3%, CLD -2.4%, WLT -3.6%, RNO -1.5%, WLB -2%.
Fri, May. 16, 5:03 AM
- The White House is considering forcing power plants to cut carbon emissions by 25% over a 15-year period, Bloomberg reports.
- The problem is that owners can only cut so much of a facility's emissions by increasing efficiency, so a lot of the reduction could have to come by "going outside the fence," such as by deepening the use of renewable energy, improving grid efficiency and encouraging customers to use less electricity.
- Trying to compel operators to rely on such external measures could run afoul of what the government is allowed to do under the Clean Air Act.
- ETFs: KOL, XLU, IDU, VPU, RYU, PUI, UPW, FXU, SDP, PSCU, FUTY, UTLT
- Coal Tickers: PCXCQ, BTU, WLT, CNX, ACI, ANR, JRCC, YZC, ARLP, AHGP, NRP, PVR, PVG, PVA, OXF, CLD, WLB, RNO
- Utilities: ED, POM, PEG, FE, NST, UTL, ETR, EXC, D, NU, PCG, DUK
Thu, Feb. 27, 9:12 AM
- Gulfport Energy (GPOR) -1.5% premarket after Q4 earnings and revenues miss Wall Street expectations.
- GPOR's Q4 output totaled ~1.53M boe; estimates FY 2014 production of 50K-60K boe/day, with E&P capex activities estimated at $675M-$725M.
- Says it is evaluating strategic alternatives for its oilfield service business, and may pursue an IPO of the interests later this year.
- Agrees to acquire 8,200 net acres and ~1,000 boe/day of production in the eastern Ohio Utica Shale from Rhino Resources (RNO) for ~$185M.
Thu, Feb. 27, 7:29 AM| Comment!
Tue, Feb. 4, 12:48 PM
- Arch Coal (ACI +2%) shares turn green after management makes positive comments about the thermal coal market during this morning's earnings call.
- ACI reported a larger than expected Q4 loss, but expects U.S. thermal coal markets to tighten further this year, as several factors including favorable weather trends, healthier economic activity and elevated natural gas prices should ensure that the prices of most U.S. thermal coal is competitive.
- The same can't be said for metallurgical coal, as overseas markets remain weak, ACI says, but production of higher cost met coal would ease and cause markets to tighten in the future.
- Other coal miners also are higher: CLD +3.9%, WLT +3.7%, WLB +3.4%, ANR +2.6%, RNO +2.1%, CNX +1.5%, BTU +0.2%.
Mon, Feb. 3, 5:39 PM
- James River Coal (JRCC) -6.7% AH after plunging nearly 20% in the final half-hour of regular trading on a Bloomberg report that it hired Perella Weinberg Partners to advise on the restructuring of its debt and restructuring advisers including Blackstone have been pitching creditors.
- JRCC, which has closed mines and hasn’t posted an annual net profit since 2010, is among U.S. producers hurt by a decline in coal prices and the natural gas boom; for metallurgical coal used in steelmaking, rising Australian output has helped create a global surplus.
- Other coal producers also fell sharply today: ANR -8.1%, WLT -7.1%, ACI -5.4%, OXF -3.1%, BTU -2.7%, RNO -1.4%, CNX -1.2%.
Dec. 10, 2013, 6:50 PM
- Supreme Court justices today expressed sympathy for the EPA’s approach to air pollution that crosses state lines.
- The rule that would curb emissions from coal-fired power plants in 28 states - struck down by the D.C. Circuit Court of Appeals and being tested by power companies, states and miners - has never taken effect, but it would force companies to either shutter old plants or invest billions of dollars in pollution-control technology.
- The court’s four Democrat appointees, at times joined by Chief Justice Roberts and Justice Kennedy, suggested the EPA had adhered to the language of the Clean Air Act; only Justice Scalia seemed convinced the rule could be unfair to some states.
- ETFs: KOL, XLU, IDU, VPU, RYU, PUI, UPW, FXU, SDP, PSCU, FUTY, UTLT.
- Coal names: PCXCQ, BTU, WLT, CNX, ACI, ANR, JRCC, YZC, ARLP, AHGP, NRP, PVR, PVG, PVA, OXF, CLD, WLB, RNO.
Oct. 31, 2013, 1:10 PM| Comment!
Oct. 21, 2013, 6:44 PM| Comment!
Oct. 17, 2013, 5:24 PM
- Short-oriented Bronte Capital's John Hempton sees Herbalife (HLF -0.1%) shares going still higher, possibly to $105/share, although he has reduced his stake. Of Ackman's missteps he says, "Before Ackman, we would never have been in Herbalife ... Ackman broke every rule of risk management. He came out there and said, 'We had this unbelievably strong short case against something, so we are 10% of our fund shorted and 25% of its float shorted and we did this in the most public way that you could imagine.'" Hempton made his bet against Ackman at $25-$26/share.
- On the short side, Hempton is particularly bearish on coal, and especially so on U.S. producers. He tethers his thesis on coal vs. natural gas price economics, which he believes outweigh any opportunity of demand increases from China as it transitions to cleaner seaborne coal.
- Coal ETF: KOL
- U.S. coal stocks: BTU, ANR, ACI, WLT, CLD, JRCC, CNX, RNO
Sep. 23, 2013, 2:59 PM
- As if coal companies (KOL) don't face enough problems in the U.S., China's once seemingly unlimited appetite for coal appears to be cooling.
- Economic growth in China is slowing, and rising public anger over air pollution is increasing pressure on utilities running the country's coal-burning power plants to shift to nuclear power and natural gas.
- Compounding the issue for U.S. miners is that China's own coal industry is improving; China sits on trillions of tons of coal reserves, so domestic mines should meet most of the country's demand for thermal coal as long as prices remain low and transportation costs affordable.
- There is already too much coal on the market, so China’s moves to cut down its “energy intensity” will hurt miners: ANR +0.8%, ACI -1.2%, WLT -0.1%, BTU +0.5%, CLD -0.6%, JRCC -1.4%, CNX -0.7%, RNO -1.2%.
Sep. 20, 2013, 11:29 AM
- No one should be surprised by the EPA's proposals for tough requirements on new coal plants - they had been anticipated for at least a year - but coal stocks are down across the board: ANR -4.6%, ACI -4.2%, WLT -4%, BTU -3.2%, CLD -2.6%, JRCC -1.4%, CNX -1.1%, RNO -0.6%.
- New coal plants are required to limit their emissions to 1,100 lbs. of CO2 per mw hour, ~700 fewer lbs. than most modern-day coal units; the only way to meet the standard is to use new carbon capture and storage technology that isn't currently used at any commercial-scale plant.
- The legal fight ahead will hinge largely on the EPA's ability to show that the technology is a viable option; the Clean Air Act requires the agency to show its standards are "achievable" and that required technology has been "adequately demonstrated."
- ETF: KOL.
Sep. 20, 2013, 5:13 AM
- The Environmental Protection Agency is scheduled to today unveil restrictions on carbon emissions for new power plants, a key part of President Obama's policy to fight what many see as global warming.
- The EPA will reportedly set CO2 limits at 1,100 pounds per megawatt hour for coal plants and 1,000 pounds for most natural gas plants. To meet those restrictions, coal plants would have to capture and store 20-40% of their CO2 emissions using technology that isn't yet being deployed on a commercial scale. The industry argues that the work would be so expensive that it would preclude the building of new plants.
- More far-reaching limits for existing facilities are due to be proposed in June 2014.
- Companies affected include Patriot Coal (PCXCQ.OB), Alpha Natural Resources (ANR), Arch Coal (ACI), Peabody Energy (BTU), James River (JRCC), Cliffs Natural (CLF), Rhino Resource Partners (RNO), CONSOL Energy (CNX), Oxford Resource Partners (OXF), Walter Energy (WLT) and Natural Resource Partners (NRP).
- ETF - KOL.
Sep. 9, 2013, 4:33 PM| Comment!
RNO vs. ETF Alternatives
Rhino Resource Partners LP produces, processes and sells high quality coal of various steam and metallurgical grades. The Company markets its steam coal to electric utility companies as fuel for their steam-powered generators.
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