There are 2 articles on this stock available only to PRO subscribers.
Westmoreland Coal Co. - Shareholder/Analyst CallMay. 21, 2013
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%.
Fri, Jul. 25, 7:08 AM
Tue, Jul. 8, 9:08 AM
- Westmoreland Coal (WLB) -1.2% premarket on plans to begin a public offering of $52M of its common stock; the underwriters are granted an option to purchase up to $7.8M of additional common shares.
- WLB says it intends to use the proceeds to increase its overall financial flexibility, pursue organic and acquisition growth strategies and for general corporate purposes.
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%.
Thu, Jun. 5, 3:26 PM
- Gains in coal stocks (KOL) have gone up in smoke thanks to new rules from the EPA that would limit its use as a fuel for power generation, but shares are bouncing a bit today as Stifel analysts make the case for coal as a worthwhile investment.
- Coal’s power market share dropped from 49% to 39% while the natural gas share rose from 19% to 27% from 2005 to 2013, but Stifel argues that much of the investment case for U.S. coal centers on its ability to step in as a low-cost, reliable Plan B if Plan A (gas and renewables) falls short, and the cold weather-impacted Q1 offered a glimpse of what this might look like.
- Stifel favor exposure to U.S. coal mining firms in low-cost regions including the Illinois Basin, Powder River Basin and Northern Appalachia; these include Buy-rated Peabody Energy (BTU +2.2%), Cloud Peak Energy (CLD +2.2%) and Consol (CNX +3.6%).
- Also: ANR +5.6%, WLT +4.8%, ACI +3.4%, WLB +1.2%.
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
Tue, Apr. 29, 2:48 PM
- Westmoreland Coal (WLB +7.2%) says it completed the acquisition of Sherritt's Prairie and Mountain coal mining operations, which include seven producing thermal coal mines in Alberta and Saskatchewan and places the firm as North America’s sixth largest coal producer.
- Also, WLB says it intends to prepay its 8.02% senior secured notes due 2018 by the end of May, and all collateral secured under such debt will become collateral under WLB's 10.75% senior secured notes.
Fri, Apr. 25, 7:08 AM
Tue, Apr. 22, 2:57 PM
- Coal shares are mostly lower after Arch Coal's (ACI -8.1%) big earnings miss on lower than expected margins across all regions and guidance for reduced shipments of met coal this year as prices and demand remain weak: ANR -2.7%, BTU -1.1%, CLD -3.4%, CNX -1.2%, WLT +0.9%, WLB +0.3%.
- ACI said in its earnings call that its main market for met coal demand is healthy, citing U.S. steel utilization trending above the five-year average and auto sales projected to reach nearly 16.5M units in 2014, the highest level since 2006.
- Looking for a silver lining in the Q1 results, Sterne Agee says ACI’s attention to cost control, improved thermal competitive economics with natural gas, supportive balance sheet liquidity and a continued long-term role of U.S. coal into the global markets should support a cyclical valuation turn.
- Citigroup’s Brian Yu, meanwhile, expects ANR to follow ACI and WLT in cutting met coal production.
Thu, Apr. 17, 10:39 AM
- Cloud Peak Energy (CLD -1.5%) is "a good stock in a dirty business," Barron's says in making the case for a potential 30% upside in what it sees as undervalued shares, but CLD isn't enjoying the usual Barron's bounce.
- CLD trades at a discount to its larger peers despite its clean balance sheet and improving free cash flow profile, and a rise in thermal coal prices could have a dramatic impact on profits and the stock; every $1/ton increase in the Powder River spot price adds ~$46M to CLD's EBITDA.
- Most other coal names also are lower: BTU -1.5%, CNX -0.3%, ACI +0.2%, ANR -1.3%, WLT -2.1%, WLB -0.1%.
Tue, Apr. 15, 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
Tue, Apr. 8, 10:42 AM
- Consol Energy's (CNX +3.6%) upgraded coal outlook is lifting coal names higher across the board: ANR +9.2%, WLT +7.4%, ACI +5.6%, YZC +5.2%, BTU +3.8%, WLB +3.1%, OXF +3%, CLD +2%, KOL +1.9%.
- Stifel raises its CNX target price to $46 from $45, reflecting the strong market for northern Appalachian thermal coal, offsetting a weaker pricing and volume outlook for met coal (Briefing.com).
Wed, Apr. 2, 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%.
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%.
Wed, Jan. 22, 5:40 PM| Comment!
Dec. 30, 2013, 2:47 PM
- Westmoreland Coal (WLB +4.8%) is initiated with a Buy rating and a $22 price target at Brean Capital, which sees WLB as an attractive cash-flow story that provides investors with unique exposure to the North American thermal coal space.
- With steady demand from baseload power plants and west coast export optionality, the analysts believe WLB provides investors with attractive and consistent positive cash flows of ~$100M unlevered free cash flow annually, despite tough times across the industry.
- WLB's deal last week to acquire Sherritt's Canadian coal assets in Alberta and Saskatchewan will make it the sixth largest coal producer in North America, with annualized EBITDA of $200M, the firm estimates.
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.
WLB vs. ETF Alternatives
Westmoreland Coal Co is an energy company. The Company's main activities are the production and sale of coal from its mines in Montana, Wyoming, North Dakota and Texas; and the ownership of power plants in North Carolina.
Other News & PR