|Bid||52.74 x 3200|
|Ask||55.28 x 800|
|Day's Range||54.00 - 56.03|
|52 Week Range||50.75 - 101.92|
|Beta (5Y Monthly)||0.44|
|PE Ratio (TTM)||4.08|
|Earnings Date||Feb 05, 2020|
|Forward Dividend & Yield||2.00 (3.57%)|
|Ex-Dividend Date||Mar 01, 2020|
|1y Target Est||91.00|
Arch Coal's (ARCH) Q4 loss is narrower than expected. The company is working on the development of a new mine, which is set to produce high-quality coking coal.
(Bloomberg Opinion) -- There was a time when Australia was the promised land for America’s coal giants. Faced with the decline of coal-fired power and steel-making at home, U.S. miners bought their way into Australian resources situated helpfully on China’s doorstep.Ultimately, it wasn’t enough to stave off bankruptcy. Having emerged from chapter 11 a few years ago, Peabody Energy Corp. finds its Australian business simultaneously a blessing, curse and — following a new agreement with its biggest shareholder, the ever-warm-and-fuzzy Elliott Management Corp. — potential Hail Mary.To say Peabody is in the middle of a perfect storm would be something of an understatement. Its primary product, thermal coal, is the tobacco of the energy world, with demand slumping in its domestic market despite the imaginative efforts of President Donald Trump’s administration to force it on utilities.Steel producers, which use higher-value metallurgical, or coking, coal, are also in a funk amid the trade war. Compounding that, a fire swept through one of Peabody’s coking coal mines in Australia in 2018, taking it out of commission just as prices were peaking. And now coronavirus has ground Chinese industry to a halt, not only taking down demand for energy in general, but hitting already-weak prices for natural gas, making it even more of a cut-throat competitor to thermal coal.Unsurprisingly, Peabody just announced losses for 2019, suspended its dividend and cut capital expenditure plans. Elliott, which gained its stake in Peabody’s bankruptcy, has watched the stock plummet by four-fifths since fire was reported at the North Goonyella mine in 2018. It will now put two of its own on Peabody’s board, including Elliott’s head of U.S. restructuring, and they will be joined by an Australian coal veteran. More importantly, Peabody has agreed to appoint a consultant to review the performance of its Australian mines.Despite the fire, the Australian mines remain the most profitable part of Peabody’s business. While they only account for a sixth of tonnage, they generated more than half of adjusted Ebitda last year, even after accounting for the costs of maintaining the North Goonyella mine. Australian cash margin per ton of about $17 — again, including those fire-related costs — is four times that of the U.S. business. Indeed, ex-depreciation, the difference is even starker:Peabody says it has had “a number of inquiries” about North Goonyella. However, with the whole Australian portfolio under review, the process could ultimately lead to a sale of more or possibly all of the business. After all, an activist shareholder is sitting on 30% of the eviscerated stock and has now pushed onto the board. If some suitor could be persuaded to put a multiple of just 3 times on the Australian business’ adjusted Ebitda, that would equate to $1.4 billion — not far short of the current enterprise value of the entire company.A bull might look at that and conclude Peabody is a bargain. Yet that math has held true for a while, and few seem to be charging in. By late Thursday morning in New York, the stock had already given back almost half of Wednesday’s jump on the back of the Elliott agreement.The implication is that investors are skeptical of Peabody realizing much value in Australia or, perhaps more likely, see little value in the U.S. operations alone. Back in June, Peabody announced a joint venture with rival Arch Coal Inc. to combine their assets in the Powder River Basin. It is a textbook tactic to offset declining volume with cost savings — worth $545 million to Peabody, by its own calculations. Yet the stock has dropped another 60% since then, and the entire market cap is now just $823 million. Even Arch, which has done a good job to date of returning cash to shareholders, has suffered amid weak pricing and an expansion project that will keep capex running high through this year.Beyond the ultimate result of Elliott’s efforts with Peabody, the miner’s resort to austerity and its review carry ominous signals for this industry. The American mines constitute a low-margin, high-volume business in a market where the volume of demand is under sustained pressure. The cost of capital is rising inexorably as a result of shifting attitudes on climate change and falling prices for rival energy technologies. Peabody’s Australian business may yet yield a deal that salves some investors’ wounds. But there is no promised land left to which this industry can turn.With assistance from David FicklingTo contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Arch Coal (ARCH) delivered earnings and revenue surprises of 50.00% and 12.73%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Arch Coal (ARCH) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
New York state’s top pension fund official says he’s reviewing divesting from 27 coal companies, a decision that could impact some $98 million in holdings by the third-largest U.S. state pension system.
Arch Coal, Inc. (NYSE:ARCH) will discuss its fourth quarter and full year 2019 financial results in an investor conference call that will be broadcast live on Thursday, February 6 at 10:00 a.m. Eastern time.
Arch Coal (ARCH) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
The coal industry remains a major supplier to key industries such as steelmakers and utilities with coal-fired electricity plants, despite growing global awareness of climate change and moves to reduce use of coal, one of the world's most plentiful fossil fuels.
BlackRock CEO Larry Fink said that the firm’s actively managed funds would no longer hold shares of companies that derive more than 25% of revenues from thermal coal and announced a dramatic expansion of its sustainable investing lineup.
We are still in an overall bull market and many stocks that smart money investors were piling into surged in 2019. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained more than 57% each. Hedge funds' top 3 stock picks returned 45.7% last year and beat the S&P 500 […]
Hartford Financial Services Group Inc. said Friday that it will no longer insure or invest in companies that generate more than 25% of their revenue from thermal coal mining, or more than 25% of their energy production from coal. The Hartford said it will also no longer insure and invest in companies that derive more than one-quarter of their revenue from the extraction of oil from tar sands. "The world needs affordable, accessible energy to support global economic progress and, at the same time, action is needed to mitigate the impact such activity has on our climate," said Chief Executive Christopher Swift. Shares of Arch Coal Inc. fell 3.3% in afternoon trading. Among other companies in the coal business, Peabody Energy Corp.'s stock eased 0.6%. Year to date, shares of Arch Coal have tumbled 15% and Peabody Energy plunged 70%, while the S&P 500 has climbed 29%.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
We are still in an overall bull market and many stocks that smart money investors were piling into surged through the end of November. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 54% and 51% respectively. Hedge funds' top 3 stock picks returned 41.7% this year and beat […]
Arch Coal, Inc. (NYSE:ARCH) announced today that its eastern operations were recently presented with seven Mountaineer Guardian Awards by the West Virginia Office of Miners' Health, Safety and Training and the West Virginia Coal Association.
ST. LOUIS, Nov. 20, 2019 /PRNewswire/ -- Arch Coal, Inc. (ARCH) announced today that its eastern operations were recently honored with four awards from the West Virginia Department of Environmental Protection and the West Virginia Coal Association. The state's top environmental honor – the Greenlands Award – was presented to Arch's Wolf Run subsidiary and its Beckley mine team for outstanding final reclamation work at an adjacent, long-idled underground mining and processing complex.
ST. LOUIS, Nov. 15, 2019 /PRNewswire/ -- Arch Coal, Inc. (ARCH) announced today that it has discontinued longwall operations at its Mountain Laurel mine in Logan County, West Virginia, three months earlier than planned. The move is expected to reduce Arch's fourth quarter coking coal volumes by between 150,000 and 200,000 tons and its fourth quarter operating results by approximately $20 million versus previous expectations. As previously discussed, Mountain Laurel had encountered challenging geologic conditions in its final longwall panel.