Jul. 18, 2014, 3:14 PM
- James River Coal (OTCPK:JRCCQ) is scheduled to auction the company off next Tuesday at the NYC offices of its bankruptcy counsel.
- The auction was originally scheduled for July 8, but JRCC has been trying to decide whether to reorganize, liquidate or sell assets.
- Even with the uncertainty, JRCC said in a filing last month that several potential strategic and financial bidders have shown interest in the company.
May 16, 2014, 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
Apr. 15, 2014, 2:26 PM
- The D.C. Court of Appeals upholds EPA regulations requiring power plants to limit emissions hazardous air pollutants, siding with the EPA's determination that its regulations were appropriate and necessary.
- The 2-1 court majority rejects arguments the agency should have considered the costs of its regulations before moving forward, while the dissenting judge warns the costs of the EPA regulations would amount to more than $9B/year.
- Related tickers: KOL, BTU, WLT, CNX, ACI, ANR, JRCC, YZC, PCXCQ, ARLP, NRP, PVR, PVA, OXF, CLD, WLB
Apr. 8, 2014, 7:42 AM
- James River Coal (JRCC) -52.5% premarket after filing for Chapter 11 bankruptcy late yesterday afternoon, listing $818.7M in debt.
- “The writing has been on the wall that if prices don’t pick up this could happen,” says a Raymond James analyst, as the benchmark metallurgical coal contract for Q2 has dropped to $120/metric ton, the lowest price in six years.
- JRCC, which produced 9.5M tons of coal in 2012, said it plans to keep operating as it reorganizes; one or more portions of the company could be sold, CEO Peter Socha said.
Apr. 7, 2014, 5:27 PM| 7 Comments
Apr. 2, 2014, 3:58 PM
- Coal stocks are higher after the head of BHP Billiiton's (BHP +0.9%) coal division said he expects world demand for coal to increase for decades to come, and that most demand growth for coal will come from outside China, which has been the primary driver of global commodity prices in recent years.
- The BHP exec also noted that coal demand in Europe is rising as nuclear plants are set to shut down and countries reduce their imports on Russian energy.
- The Market Vectors Coal ETF (KOL +0.7%) has gained 3.2% over the past week and is trading above its 200-day moving average, but the ETF is still down 4.2% YTD.
- JRCC +20.5%, OXF +4.5%, WLT +2.2%, CNX +2.1%, CLD +2%, ANR +1.9%, BTU +1.4%, YZC +0.6%, ACI -0.2%, WLB -1.2%.
Mar. 24, 2014, 5:25 PM
- James River Coal (JRCC) says it received a notice from Nasdaq that it is not in compliance with continued listing requirements because JRCC's bid price closed below the required minimum $1/share for the previous 30 consecutive business days.
- JRCC now has 180 calendar days, until Sept. 15, to regain compliance.
Mar. 17, 2014, 5:52 PM
- James River Coal (JRCC) -4.7% AH after announcing that it is filing to delay its annual 10-K report because of accounting and reporting issues related to its strategic review process and previously announced adjustments to its mining operations, including the closure and idling of mines.
- JRCC says its auditors have said that if they were to deliver an audit opinion based on current conditions, the opinion would contain a going concern qualification.
- Also says it is unable to make interest payments on $230M of 3.125% convertbile senior notes due 2018.
Mar. 7, 2014, 12:39 PM
- Alpha Natural Resources (ANR -9.4%) is hit hard after Goldman Sachs last night cut its rating on the shares to Sell and lowered its price estimates for coal; other sector names are following suit.
- Goldman also cut its price estimate for met coal this year to $141/metric ton from $150 and lowered projections for next year and 2016 following increased Australian output, an expected slowdown in the growth of Chinese imports, and “limited U.S. supply rationalization."
- The firm maintains a Neutral rating on Walter Energy (WLT -5.6%) but cuts its price target to $10 from $12.
- Also: BTU -4.2%, ACI -4%, CNX -1.5%, OXF -1.6%, JRCC -1.5%, CLD -0.7%, KOL -2.1%.
Feb. 10, 2014, 8:57 AM
- James River Coal (JRCC) +25.6% premarket after Friday's announcement that it will explore a potential sale and other strategic alternatives.
- Analysts say JRCC isn't poorly run, but is stuck with the wrong type of assets at the wrong time - thermal coal prices have suffered as power companies turned to cleaner natural gas, and coal seams in Appalachia are deeper and thinner than elsewhere and thus more expensive to extract.
- JRCC should be able to find a buyer who wants to "make a bet on having a thermal coal asset in an energy-constrained world."
Feb. 7, 2014, 4:09 PM
- James River Coal (JRCC) says it is exploring strategic alternatives, which may include a capital investment through debt and/or equity securities or a sale of all or one or more portions of the company.
- JRCC amends its revolving credit agreement, which will provide continued access to its credit facility during the strategic review process.
- Shares halted, -16% AH.
Feb. 3, 2014, 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%.
Jan. 8, 2014, 4:53 AM
- Leading members of the House and Senate appropriations committees met yesterday as they sought to reach a deal on how to spend the $1.01T that Congress approved for this fiscal year.
- Negotiators are working on final sticking points involving healthcare and military spending, although they only have until January 15 to avoid another government shutdown. There's talk of a short-term measure lasting just days to avoid that scenario.
- Any defense cuts could affect government contractors such as Lockheed Martin (LMT), Boeing (BA) and General Dynamics (GD).
- Legislators are also discussing whether to include House-proposed limits on EPA regulations that are opposed by the coal (KOL) and agriculture sectors.
- Top coal names: BTU, ACI, ANR, CLD, CNX, JRCC, WLT.
Jan. 7, 2014, 4:58 PM
- Coal stocks (KOL) had a terrible 2013 amid much improved second halves, but with coal getting hit early this year, Ben Levisohn wonders if the coal boomlet has run its course.
- The commodity currencies remain under pressure in a well supplied commodities market and weakening Chinese growth, J.P. Morgan's John Bridges explains, as the firm lowers its coking coal benchmark forecasts by $10/ton for 2014 and 2015; however, rail companies may relinquish some margin to support U.S. met coal after benefiting from sharply higher freight rates as the coking coal price peaked.
- In today's trade, ANR -6.3%, CNX -1.4%, BTU -1%, ACI -2%, WLT -4.5%, JRCC -2.1%.
- Yesterday: Despite the gas boom, U.S. coal isn't dead.
Jan. 6, 2014, 5:48 PM
- Coal companies (KOL) have been closing mines and laying off workers, but coal isn't going away: Coal remains the biggest source of fuel for generating electricity in the U.S. even as production leaves Appalachia in favor of places such as Wyoming, and exports are growing fast.
- One reason coal won't disappear soon is that regulators are reluctant to let utilities become too dependent on natural gas, fearing that a sudden price jump could send electricity prices soaring; also, utilities have billions of dollars invested in plants that haven't been paid off.
- Overall, U.S. coal production is projected to remain relatively constant over the next three decades, according to the U.S. Energy Information Administration (EIA's quarterly coal report).
- Top coal names: BTU, ACI, ANR, CLD, CNX, JRCC, WLT.
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.
JRCCQ vs. ETF Alternatives
James River Coal Company is engaged in mining, processing and selling thermal and metallurgical coal through eight active mining complexes located throughout eastern Kentucky, southern West Virginia and southern Indiana.
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