Tue, Apr. 28, 6:06 PM
Tue, Apr. 28, 6:03 PM| 1 Comment
Mon, Apr. 27, 5:35 PM
- ACGL, ACHC, AEGN, AFL, AHGP, AKAM, AMCC, ANIK, ARI, ARLP, AUY, AZPN, BGFV, BLDP, BMR, BOOM, BWLD, BXMT, CALX, CBL, CEB, CGI, CHE, CINF, CLF, CMRE, CNL, CRUS, DDR, DHT, EEFT, EIX, EPIQ, EPR, EQR, ESRT, ESRX, EXAC, FARO, FEIC, GNW, GPRE, GPRO, HAWK, HELE, HIW, HLIT, HURN, IACI, INAP, IPHI, KALU, KBR, KRFT, LOGM, MRCY, MSTR, MTSI, MWA, NANO, NATI, NCR, NVDQ, OHI, OI, OTEX, PEI, PNRA, RNG, RPXC, RRC, RSYS, SKT, SLCA, SWI, TAHO, TE, TPX, TSS, TWTR, ULTI, VRSK, WDC, WRI, WSH, WYNN, X, XCO, XOOM
Thu, Feb. 26, 2:45 PM
- J.P. Morgan analysts see some encouraging signs for coal (NYSEARCA:KOL), which would be good news for companies such as Peabody Energy (BTU -5.7%), Cloud Peak Energy (CLD -5%), Alliance Resource Partners (ARLP +0.9%) and Foresight Energy (FELP -1.2%).
- Coal equities have bounced off lows, the JPM crew says, which meshes with its belief that the greater financial challenges faced by oil and gas E&Ps should reduce natural gas supply and help coal prices later this year and into 2016.
- JPM has Overweight ratings on the two MLP coal miners ARLP and FELP, which it expects to benefit as the gas market tightens in 2016 and with the added attraction of yield in a yield-starved world; BTU and CLD enjoy stronger balance sheets, which should see the companies through what could still be a sloppy coal market in 2015.
- Alpha Natural Resources (ANR -6.9%) and Arch Coal (ACI -4.3%), however, acquired so much debt that their equity effectively has become primarily an “option" on fluctuations in the coal market, the analysts say.
Wed, Jan. 28, 7:47 AM| 1 Comment
Wed, Jan. 28, 7:07 AM| Comment!
Tue, Jan. 27, 5:30 PM| 1 Comment
Tue, Jan. 27, 11:28 AM
- Peabody Energy's (BTU -6.7%) move to slash its quarterly dividend to less than a penny a share is helping push coal company stocks (NYSEARCA:KOL) lower: WLT -1.6%, ACI -1%, CNX -1.8%, CLD -2%, WLB -5.4%, ARLP -1.2%.
- Cowen analysts see the move as "a prudent move amid uncertain coal markets," and Sterne Agee says the dividend cut will save BTU $100M in annual cash payments.
- Citigroup's Brian Hu maintains a Buy rating on BTU, saying that although management expects U.S. thermal coal demand to fall by 50M-60M tons in 2015, "BTU is better insulated due to their heavily contracted position and Y/Y improvement in Southern PRB rail performance.”
Sat, Jan. 17, 8:25 AM
- Cowen analysts this week offered a how-to guide for playing the oil price fluctuation, identifying more than 60 stocks that could benefit in a declining oil price environment.
- Among the various nuggets of wisdom, the report notes that given the minimal contribution of petroleum to U.S. electricity generation, there is little, if any, displacement of coal burn; within the coal sector, lower crude prices mean lower diesel fuel prices, which Cowen thinks favors the operating cost structure of surface mining producers in the Powder River Basin, particularly Arch Coal (NYSE:ACI) given its diesel hedge strategy which protects it from elevated diesel levels and enables it to benefit fully in the downside of fuel costs.
- Also best able to cope with falling oil prices: ARLP, CLD, CNX, FELP, HNRG, JEC.
- Among airlines, American (NASDAQ:AAL) should not suffer the cost headwinds related to mark-to-market hedge losses, unlike peers that hedge jet fuel; Delta (NYSE:DAL) can expect a $2B hedge-related loss, Southwest (NYSE:LUV) should see a $500M loss and United (NYSE:UAL) a $200M loss.
- Cowen thinks consumers are on pace for 2015 gas savings of $100B-$150B, but the upside will not be distributed equally among retailers; the firm sees broadline retailers, namely Wal-Mart (NYSE:WMT) and Target (NYSE:TGT), as best positioned to benefit from gas deflation.
Tue, Jan. 13, 7:14 PM
- The Obama administration reportedly plans to require the oil and gas industry to cut methane emissions by as much as 45% over the next decade, with the EPA expected to issue proposed regulations this summer and final regulations by 2016.
- The proposal would be a victory for environmental groups that have lobbied the administration to force the oil and gas industry to cut emissions of methane, a powerful greenhouse gas tied to climate change.
- Potentially related tickers include KOL, BTU, WLT, CNX, ACI, ANR, YZC, ARLP, AHGP, NRP, PVG, PVA, OXF, CLD, WLB.
Fri, Jan. 2, 3:10 PM
- Alliance Resource Partners (ARLP +0.8%) announces coal supply agreements from Patriot Coal providing for delivery of ~3.7M tons of coal during 2015-17.
- ARLP also says some of its affiliates and a related party have agreed to acquire other assets from Patriot, including mining equipment and coal reserves.
Dec. 15, 2014, 6:33 PM
- Calpers and Calstrs, the two biggest pension funds in the U.S., would be required to divest its holdings in companies that produce coal under a bill to be introduced by Kevin de Leon, the new leader of the state Senate.
- Calpers, with assets of $294B, had nearly $46M in coal and consumable fuels holdings as of Sept. 30, with its largest holdings in Consol Energy (NYSE:CNX), Peabody Energy (NYSE:BTU) and Alliance Resources Partners (NASDAQ:ARLP), according to Bloomberg data.
- The measure, if passed by lawmakers and signed into law by Gov. Brown, would make Calpers the largest pension to end investment in coal.
Dec. 11, 2014, 3:36 PM
- J.P. Morgan analysts think sliding oil prices could be good news for coal miners such as Arch Coal (NYSE:ACI) and Peabody Energy (NYSE:BTU), as the current problems in the E&P world appear to signal an inflection point for the shale oil and gas business, which has been a major thorn in coal’s side.
- Gas supply should turn lower in 2016, JPM says, resulting in higher coal prices and a realization that coal must have a bigger role in U.S. power supply than was expected just a few weeks ago.
- The firm likes the high yielding Illinois basin MLPs Foresight Energy (NYSE:FELP) and Alliance Resource Partners (NASDAQ:ARLP), but for more aggressive investors it thinks the other coal names with financial strength like Cloud Peak Energy (NYSE:CLD), Consol Energy (NYSE:CNX), and BTU should benefit more from the new paradigm by H2 2015.
Dec. 11, 2014, 11:19 AM
- Consol Energy (CNX +2.3%) is higher after announcing late yesterday that it is preparing to spin off some of its coal operations, creating an MLP for its thermal coal business and approving a $250M stock buyback.
- Sterne Agee says it would add to or introduce positions, citing CNX’s strong relative cash flow generation, overcapitalized balance sheet, and expected continued execution within its unconventional gas assets as allowing for valuation support and expansion.
- FBR Capital believes the thermal coal MLP could potentially provide a material uplift of $3-$9 per share by pulling forward the value of the coal assets and providing growth capex for CNX's E&P business (Briefing.com).
- Citigroup’s Brian Yu, however, does not see how the MLP creates value for CNX; given the lack of growth in CNX’s coal assets, Yu thinks it would be tough to trade at the same valuation as Alliance Resource Partners (NASDAQ:ARLP) or Alliance Holdings (NASDAQ:AHGP).
Nov. 28, 2014, 10:25 AM
- OPEC's Thursday decision to keep oil production unchanged has sparked a commodity stock rout, one that hasn't left coal stocks unscathed.
- Major decliners: BTU -6%. ACI -6.6%. ANR -6.2%. CLD -4.3%. CNX -2.8%. NRP -3.5%. ARLP -3%. CLF -3.6%.
- Thermal coal prices have already fallen sharply this year.
- ETF: KOL
Nov. 21, 2014, 6:45 PM
- Ethanol and other biofuel groups are declaring victory, as the EPA today said a decision to finalize blending requirements for 2014 - first proposed more than a year ago - has been delayed.
- The delay gives hope to ethanol producers that the EPA will rethink how it proposes the annual biofuels levels; the draft 2014 biofuels levels were much lower than the ethanol industry wanted.
- Oil company lobbyists opposed to the law say the idea of setting a retroactive quota shows the EPA is incapable of managing the program; the American Fuel & Petrochemical Manufacturers, which represents energy companies, plans to sue the EPA for failing to issue the 2014 requirements.
- Ethanol stocks: ADM, GPRE, GEVO, MEOH, SZYM, REX, CDTI, REGI, FF, AMRS, ANDE
- Related refining stocks: VLO, HFC, MPC, TSO, WNR, ALJ, PSX, PBF, DK, NTI, ALDW
- Related coal stocks: BTU, WLT, CNX, ACI, ANR, YZC, ARLP, AHGP, NRP, PVG, PVA, OXF, CLD, WLB, SCOK
- Related solar stocks: JASO, SPWR, TSL, FSLR, CSIQ, YGE, EMKR, SOL, JKS, CSUN, SCTY, RGSE, SUNE, HSOL, DQ, ASTI, OTCQB:SOPW
- ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, FENY, PXJ, RYE, FXN, DDG, FUE, KOL, TAN
ARLP vs. ETF Alternatives
Alliance Resource Partners LPis a diversified producer and marketer of coal to United States utilities and industrial users. It operates ten underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia.
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