7.70 -0.03 (-0.39%)
After hours: 4:40PM EST
|Bid||7.41 x 1800|
|Ask||8.29 x 1800|
|Day's Range||7.35 - 7.77|
|52 Week Range||6.45 - 32.25|
|Beta (5Y Monthly)||0.77|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 04, 2020|
|Forward Dividend & Yield||0.58 (7.46%)|
|Ex-Dividend Date||Oct 28, 2019|
|1y Target Est||11.83|
As BlackRock and other big asset managers shed their coal and oil exposure, patient value investors are poised to grab real energy bargains Continue reading...
(Bloomberg) -- Even before publicly vowing to unwind its investments in coal, BlackRock Inc. began cutting its stake in the biggest U.S. miner.The world’s largest asset manager had about 4.87 million shares of Peabody Energy Corp. as of Dec. 31, a 5% stake, according to a regulatory filing Friday. That’s down 14% from the end of January 2019, making it the miner’s sixth-largest holder, according to data compiled by Bloomberg.BlackRock announced last month that it would put climate change at the heart of its strategy, a plan that includes exiting both debt and equity investments in thermal coal companies in its $1.8 trillion active portfolios. Financial companies around the world are facing increasing pressure to back away from the dirtiest fossil fuel to help fight global warming.Climate is now a “defining factor” for the global economy, BlackRock Chief Executive Officer Larry Fink told shareholders in his annual letter.Read More: BlackRock Takes Siemens to Task For Australia Coal ControversyOn Wednesday, Peabody’s biggest shareholder -- activist investor Elliott Management Corp. -- moved to increase control over the mining company. Peabody’s shares are down more than 70% in the past year as the coal industry faces waning demand from utilities and slumping prices, and slipped as much as 7.9% Friday. (Updates with share move in last paragraph. An earlier version corrected the timing of ownership change in the second paragraph and clarified the link to climate strategy.)To contact the reporter on this story: Will Wade in New York at email@example.comTo contact the editors responsible for this story: Joe Ryan at firstname.lastname@example.org, Pratish NarayananFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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 email@example.comTo contact the editor responsible for this story: Mark Gongloff at firstname.lastname@example.orgThis 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.
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 (NYSE: BTU) announced today that it will appoint several new members to the company's Board of Directors in conjunction with the February Board meeting, including Elliott Management Equity Partner Dave Miller, Elliott Management Portfolio Manager Samantha Algaze and tenured coal industry executive Darren Yeates. Peabody and Elliott have also agreed to add a fourth independent director with extensive mining operations experience, to be jointly identified by Peabody and Elliott. The company will also nominate each of the new directors, along with all current directors, for a full one-year term at the company's upcoming annual meeting of shareholders in May.
To the annoyance of some shareholders, Peabody Energy (NYSE:BTU) shares are down a considerable 32% in the last month...
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.
Peabody Energy (BTU) possesses 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 said it was reviewing whether to divest from 27 coal companies and could make decisions on $98 million in holdings within two months. The reviews by the third-largest U.S. state pension system, with $211 billion under management, could set the tone for other retirement plans facing public concerns about climate change. New York State Comptroller Thomas DiNapoli in an interview on Tuesday said his office began reaching out several weeks ago to companies with at least 10% of revenue from thermal coal, or coal burned to produce electricity.
So far, this January isn’t running true to form. The market has risen, but small stocks are lagging and last year’s losers are getting hammered again Continue reading...
Peabody Energy (BTU) -- my Top Pick for aggressive investors in 2020 -- is one of the world's largest coal mining companies, explains notes George Putnam, editor of The Turnaround Letter.
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 the investment manager, with $1.8 trillion in assets, would exit coal shares in its actively managed funds.
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.
Peabody (NYSE: BTU) announced today that the company has named Mark Spurbeck as Interim Chief Financial Officer replacing Amy Schwetz, who will be taking the Chief Financial Officer position at a leading NYSE-listed industrial company. Schwetz will continue with Peabody in coming weeks to ensure a smooth transition.
On Wednesday, Feb. 5, 2020, Peabody (NYSE: BTU) will announce results for the quarter ended Dec. 31, 2019. A conference call with management is scheduled for 10 a.m. CST on Wednesday, Feb. 5.
While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and deteriorating expectations towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the third quarter and hedging or reducing many of […]
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%.