23.00 0.00 (0.00%)
After hours: 4:02PM EDT
|Bid||23.09 x 800|
|Ask||23.10 x 1100|
|Day's Range||22.94 - 23.50|
|52 Week Range||21.42 - 46.27|
|Beta (3Y Monthly)||0.90|
|PE Ratio (TTM)||4.85|
|Forward Dividend & Yield||0.56 (2.35%)|
|1y Target Est||N/A|
Could Peabody Energy Corporation (NYSE:BTU) be an attractive dividend share to own for the long haul? Investors are...
Could Peabody Energy Corporation (NYSE:BTU) be an attractive dividend share to own for the long haul? Investors are...
Billionaire hedge fund managers such as David Abrams, Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the […]
The Peabody Energy (BTU), Arch Coal (ARCH) joint venture can deliver results as decline in cost of operation will make it more competitive against natural gas and renewable sources of energy.
The two largest coal companies in the United States are combining their seven Colorado and Wyoming coal mines in a joint venture meant to make coal more competitive against wind power, solar and natural gas. Peabody Energy (NYSE: BTU) and Arch Coal (NYSE: ARCH), both based in St. Louis, are including the Twentymile mine in Routt County and the West Elk mine, near Gunnison, in the joint venture. The companies’ massive North Antelope Rochelle and Black Thunder mine areas in northeastern Wyoming are at the heart of the new venture and will be operated as one large coal mining complex, the companies announced Wednesday.
(Bloomberg) -- The two biggest U.S. coal miners are joining forces as the industry’s fortunes continue to wither.Arch Coal Inc. and Peabody Energy Corp. are combining mines in Wyoming and Colorado through a joint venture, the companies said in a statement Wednesday. The move, which analysts said was long-expected, will create about $820 million in savings, the miners said.The deal comes as coal is being ravaged by shrinking demand. Despite President Donald Trump’s push to save the industry, power generators continue to close coal-burning plants and turn increasingly to natural gas, wind and solar. The Powder River Basin of Wyoming and Montana has been steadily declining since 2008 while coal prices are at multiyear lows.“Coal is not going away. But the structural decline compels us to make structural improvements to our cost position,” Peabody Chief Executive Officer Glenn Kellow said on a call with analysts.Arch shares rose as much as 8.2% in New York. Peabody gained as much as 6.8%.Mines in the Powder River Basin have been particularly hard hit. The region only produces the variety of coal used in power plants and has not benefited from strong demand for the type used to make steel. And since the region has no major rivers and is 1,000 miles (1,600 kilometers) from the ocean, it’s expensive for miners to send to coal overseas.“Plants that burn Powder River Basin coal are closing down,” Bloomberg Intelligence analyst Andrew Cosgrove said in an interview.The move by Peabody and Arch includes combining two adjacent mines in the area: Peabody’s North Antelope Rochelle Mine, the world’s biggest coal mine, and Arch’s Black Thunder Mine. The two complexes share a 7-mile border.“Everyone has looked upon these two operations for decades and said ‘yes, something like this should happen,”’ Mike Dudas, an analyst for Vertical Research Partners LLC, said in an interview. “For coal to remain competitive, companies need to take out costs and find synergies.’’Peabody will be a 66.5% owner of the joint venture and serve as operator, the companies said. The two miners, which are both based in St. Louis, will share profits and capital requirements in proportion to their ownership percentages. They’ve been talking about the combination for “a fairly substantial time,” Vic Svec, Peabody’s head of investor relations, said in an interview.The companies’ combined assets account for about two-thirds of the Powder River Basin’s output. That means the transaction may face a lengthy regulatory review, making it unlikely the newly-formed venture would consider buying other mines in the region any time soon, according to Lucas Pipes, an analyst with B. Riley FBR. However, utilities that historically were highly reliant on Powder River Basin coal increasingly have access to alternatives, notably cheap natural gas and renewables.What Bloomberg Intelligence Says“Plants that burn Powder River Basin coal are closing down.” -- Andrew Cosgrove, senior energy and mining equity analystThe Arch-Peabody deal comes about 18 months after two other miners, Murray Energy Corp. and Bowie Resource Partners LLC, formed a partnership to sell coal from Utah.Trump’s push to save the coal industry has focused on scaling back sweeping Obama-era curbs on greenhouse gas emissions. That includes a rewrite of the Clean Power Plan that the Environmental Protection Agency is scheduled to unveil Wednesday. But the efforts are likely to do little to stop coal plants from closing, according to Nicholas Steckler, head of U.S. power for BloombergNEF.U.S. power produced from burning coal shrank by 6.3% in 2018, as almost 13 gigawatts of coal plants were closed, second only to the record seen in 2015 when 15 gigawatts of plants were shuttered, according to BloombergNEF. A typical nuclear reactor has 1 gigawatt of capacity.(Michael R. Bloomberg, founder and majority owner of Bloomberg News parent Bloomberg LP, financially supports the Sierra Club’s Beyond Coal campaign, which seeks to retire U.S. coal-fired plants.)(Updates with analyst comment in 11th paragraph.)To contact the reporters on this story: Jim Efstathiou Jr. in New York at email@example.com;Will Wade in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Doan at email@example.com, Joe Ryan, Steven FrankFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Two of the world's biggest coal producers, both based in St. Louis, are combining their mining assets in Wyoming and Colorado through a joint venture aimed at strengthening coal's competitiveness against natural gas and renewable energy sources.
(Bloomberg Opinion) -- Wyoming’s Powder River Basin has been generating some buzz in oil and gas circles as a potential source of new supply (as if oil and gas need that). On Wednesday, though, its real significance was as a strategic signpost.The PRB, as it is known, is more famous for coal; and two of the biggest miners, Peabody Energy Corp. and Arch Coal Inc., are throwing their lot there together. A planned joint venture will combine five mines in Wyoming and Colorado into a single operation producing more than 60% of the basin’s coal. It will be roughly two-thirds owned by Peabody, with Arch taking the rest.The PRB produces a cheaper form of coal, with lower energy content, relative to what comes out of Appalachia – and its market is crumbling. Cheap shale gas, renewable energy and flat consumption have cut coal use in U.S. power plants by almost 40% over the past decade. Despite creative attempts by the White House to reverse that trend, the Energy Information Administration expects it to drop by another 19% through the end of next year. Cloud Peak Energy Inc., which operates several PRB mines, is currently in chapter 11 – from which both Peabody and Arch have only emerged themselves within the past few years. And the combined output of their mines in Wyoming, which constitute the vast majority of the joint venture’s output, has dropped away:So Arch and Peabody want to get those assets together, squeeze out costs and try to be the last guy(s) standing. The two miners expect synergies they value at $820 million, or roughly a fifth of their combined market cap. That alone is reason to try. It also puts some distance between the PRB assets and the companies’ metallurgical-coal operations, where prospects (and profits) are better. This is a textbook deal for two commodity producers faced with terminal decline in their market. For Arch, it continues a strategy of rejecting the growth impulse that pushed much of this industry into chapter 11 within the past decade in favor of a more realistic approach that has shrunk the company. Arch has bought back almost a third of its stock in the past few years, generating healthy returns at odds with the industry’s broader fortunes (see this). The stock jumped as much as 8% on Wednesday morning and is close to its post-bankruptcy peak.Frackers in shale would do well to take this on board. Oil and gas markets aren’t facing the same pressure as U.S. thermal coal, but are also challenged. Natural gas demand isn’t growing quickly enough to absorb surging production; and neither is oil, judging from its comatose state in the face of all sorts of geopolitical provocations. Despite some consolidation, the Permian basin, especially, remains very fragmented, and legacies of poor returns and weak governance keep investors on the sidelines. Having shown some progress on living within their means last year, frackers once again outspent cash flow in the first quarter.Consolidation – especially in the form of nil-premium, all-stock deals – would go a long way to cutting the bloated overhead that comes from having dozens and dozens of companies targeting the same acreage. It’s not often a literal canary in the coal mine shows up, let alone two.To 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 the editorial board or 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/opinion©2019 Bloomberg L.P.
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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.
Peabody Energy (BTU) delivered earnings and revenue surprises of 130.00% and -0.34%, respectively, for the quarter ended March 2019. Do the numbers hold clues to what lies ahead for the stock?
Peabody Energy's (BTU) Q1 earnings beat estimates by130%, courtesy of significant margins in the seaborne thermal business and contribution from the Shoal Creek Mine.
On a per-share basis, the St. Louis-based company said it had net income of $1.12. Earnings, adjusted to account for discontinued operations, were $1.15 per share. The results topped Wall Street expectations. ...
Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to […]
Peabody Energy (BTU) 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.
Arch Coal (ARCH) surpasses Q1 earnings and revenue estimates, riding on strong contribution from the metallurgical coal segment.
Read the beginning of this article here. Nathaniel August recommended a position in Peabody Energy (NYSE:BTU) which “is the largest and least expensive way to participate in the coal market” according to this fund manager. Unfortunately the stock lost more than 26% since August’s recommendation. David Einhorn recommended a short position in Assured Guaranty (NYSE:AGO) due […]
Mid-caps stocks, like Peabody Energy Corporation (NYSE:BTU) with a market capitalization of US$3.1b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. Despite th...
Nathaniel August’s Mangrove Partners is known for outperforming the market very often; in the first three years since its launching (2010), the fund brought an astonishing return of 44% annually. It continued with its strong performance in the next year, delivering 26.6%. In spite of losing around 1.9% in 2015, the fund compensated for it […]
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. The price of Walgreens Boots Alliance Inc. (WBA) shares has declined to close to the 52-week low of $54.69, which is 37.6% off the 52-week high of $86.31. The company has a market cap of $50 billion.
Shares of coal miners have had a rough go of it over the past year. The VanEck Vectors Coal ETF (KOL) is lower by nearly 16% over the past 12 months, but there is at least one bright spot when it comes to investing in coal miners: these companies are rewarding investors with buybacks and dividends. “U.S. coal companies returned almost $3.7 billion in dividends and buybacks to shareholders in the 12 months through September, and S&P Global Ratings expects more of the same this year.