Exploding coal demand around the world should drive up the share prices of many companies with significant exposure to coal like International Coal Group, Inc. (NYSE:ICO), Massey Energy (NYSE:MEE), Yanzhou coal mining Co. (NYSE:YZC) and L&L Energy (NASDAQ:LLEN).
When it comes to coal don't listen to the snake-oil salesman from the mainstream media who attempt to paint coal as a dying industry, when in fact it's poised for an unprecedented upward move in demand as emerging markets and developing markets clamor for the energy source.
The two obvious candidates for just about everything - China and India - are behind the demand for coal of all types (thermal and coking), but the developing world is also looking to make up for shortfalls.
Most coal companies and companies with exposure to coal will benefit from this long-term trend, especially those in the United States, who are looking to expand beyond its domestic market, where demand is being artificially constrained by the government.
The coal in demand has high energy content (a particular strength in the U.S.) where coal has significant sulfur in it.
Climate change hucksters have been pressuring the radical Obama administration to cut back on coal domestically while just about everywhere else it's in huge demand.
This has even led former Microsoft CEO Bill Gates to say alternative energy sources like solar and wind are a "cute" idea, but will do little if anything to assuage the energy needs of the world.
He's referring to the billions of people in need of electricity and how sources like coal will be used for a long time into the future. He sees nuclear as being the more viable alternative than the anemic results coming from wind, power and geothermal sources.
In the short term demand from Japan will also make a big increase in demand for coal as it seeks alternative energy sources as it rebuilds the nation.
China is expected to import about 70 million tons of coal in 2011 while India will import about 60 million.
Thermal coal, which is used to generate electricity, is expected to surge in demand in 2011 to over 7 billion tons.
Recently Peabody Energy CEO Greg Boyce said investors that over the next decade coal will generate more electricity than "gas, oil, nuclear, hydro, geothermal and solar combined."
For coal companies based in America, their challenge is infrastructure related, where railroads and ports will be pressed to push through enough coal to meed surging demand.
According to Arch Coal President John Eaves, "It's something unprecedented in human history, arguably, 3 billion people going through an industrial revolution at the same time," referring to the possibility of about 11 percent (35 gigawatts) of coal-fired U.S. capacity being shut down over the next decade, while at the same time 249 gigawatts of new coal-fired power plants are being constructed around the world.
He sees close to another 800 million tons of new coal needed to supply the growing needs, in addition to what is already being supplied.
So when you read the next media report about the decline of the coal industry, take it with a grain of salt. The old energy source is becoming the next big thing, and will remain that way for decades.
Some will say that coal is back, but the fact is it never went away.
Well-run coal companies should grow for many years into the future. It is a long-term play, not something that will be volatile and experience huge swings on a day-to-day basis like silver can.
International Coal (ICO) closed Friday at $14.45, down $0.02, or 0.14 percent.
Showing posts with label Massey Energy. Show all posts
Showing posts with label Massey Energy. Show all posts
Monday, May 16, 2011
Friday, May 6, 2011
Posco (PKX) (MEE) (PCX) (JRCC) Take Breather
Even with thermal coal demand rising, along with coal imports from China, POSCO (NYSE:PKX), Massey Energy (NYSE:MEE), Patriot Coal (NYSE:PCX) and James River Coal Co. (JRCC) still pulled back Thursday with the rest of the coal industry, as the sector took a breather.
Coal prices in China have been soaring as domestic producers face higher costs. That has led to Chinese utilities looking outside the country for cheaper prices.
According to China Coal Transport and Distribution Association imports in May will increase as a result of the domestic market conditions in the country.
Inventories at ports continue to be low, which should cause domestic coal prices to continue to push up, increasing the coal imports, which will benefit any coal producer with exposure in China.
POSCO closed Thursday at $109.08, falling $0.49, or 0.45 percent.
Coal prices in China have been soaring as domestic producers face higher costs. That has led to Chinese utilities looking outside the country for cheaper prices.
According to China Coal Transport and Distribution Association imports in May will increase as a result of the domestic market conditions in the country.
Inventories at ports continue to be low, which should cause domestic coal prices to continue to push up, increasing the coal imports, which will benefit any coal producer with exposure in China.
POSCO closed Thursday at $109.08, falling $0.49, or 0.45 percent.
Wednesday, May 4, 2011
Ratings On (LM) (MD) (MEE) (MYL) Downgraded by Analysts
Analysts downgraded Legg Mason, Inc. (NYSE: LM), Mednax Services Inc (NYSE: MD), Massey Energy (NYSE: MEE) and Mylan Inc. (NYSE: MYL) today.
Keefe, Bruyette & Woods, Inc downgraded Legg Mason, Inc. (LM) from an “outperform” rating to a “market perform” rating.
Feltl & Co. downgraded Mednax Services Inc (MD) from a “strong buy” rating to a “buy” rating. They have a price target of $81.00 on the company, up from $76.00.
Dahlman Rose downgraded Massey Energy (MEE) from a “buy” rating to a “hold” rating.
Morgan Stanley (NYSE:MS) downgraded Mylan Inc. (MYL) from an “overweight” rating to an “equal weight” rating. They have a price target of $25.00 on the company. Pressures on prices from overseas competitors was cited as the catalyst.
Keefe, Bruyette & Woods, Inc downgraded Legg Mason, Inc. (LM) from an “outperform” rating to a “market perform” rating.
Feltl & Co. downgraded Mednax Services Inc (MD) from a “strong buy” rating to a “buy” rating. They have a price target of $81.00 on the company, up from $76.00.
Dahlman Rose downgraded Massey Energy (MEE) from a “buy” rating to a “hold” rating.
Morgan Stanley (NYSE:MS) downgraded Mylan Inc. (MYL) from an “overweight” rating to an “equal weight” rating. They have a price target of $25.00 on the company. Pressures on prices from overseas competitors was cited as the catalyst.
Cloud Peak Energy Inc. (NYSE:CLD), Joy Global (Nasdaq:JOYG), Massey Energy (NYSE:MEE) and Peabody Energy Corporation (NYSE:BTU) Futures Look Good as C
Coal demand should provide good returns for coal companies like Cloud Peak Energy Inc. (NYSE:CLD), Joy Global (Nasdaq:JOYG), Massey Energy (NYSE:MEE) and Peabody Energy Corporation (NYSE:BTU).
While the stories of the demise of coal have been going on for decades, a new report from the U.S. Energy Information Administration called the “Annual Energy Outlook,” again asserts coal will decline substantially over the next 25 years, although it seems a lot of things will have to happen almost perfectly for that to be the case.
But if there is a significant dent made in the demand from coal, it'll come from natural gas, not from the expensive and unreliable sources like wind turbines and solar energy. At this time so-called renewable supply about 11 percent of electricy in America.
If the past is any indicator, the projections of coal replacement are far too optimistic, and it is certain it will be a major part of electrical generation for decades.
Coal suppliers should continue to do well for years, as demand continues, but it will probably be at a slower rate than in the past, and the amount of supply of metallurgical coal by a company will determine a lot of the success of each individual firm.
While the stories of the demise of coal have been going on for decades, a new report from the U.S. Energy Information Administration called the “Annual Energy Outlook,” again asserts coal will decline substantially over the next 25 years, although it seems a lot of things will have to happen almost perfectly for that to be the case.
But if there is a significant dent made in the demand from coal, it'll come from natural gas, not from the expensive and unreliable sources like wind turbines and solar energy. At this time so-called renewable supply about 11 percent of electricy in America.
If the past is any indicator, the projections of coal replacement are far too optimistic, and it is certain it will be a major part of electrical generation for decades.
Coal suppliers should continue to do well for years, as demand continues, but it will probably be at a slower rate than in the past, and the amount of supply of metallurgical coal by a company will determine a lot of the success of each individual firm.
Monday, May 2, 2011
Massey (MEE) (PCX) (CLD) (ICO) (PVR) Strengthened by Increasing Coal Demand
Soaring demand from China and India for thermal or steam coal, and to a lesser degree, coking or metallurgical coal, is pushing the price of coal up, as well as the share price of those coal companies and companies with coal exposure such as Massey Energy (NYSE:MEE), Patriot Coal (NYSE:PCX), International Coal Group, Inc. (NYSE:ICO), Cloud Peak Energy Inc. (NYSE:CLD) and Penn Virginia Resource Partners (NYSE:PVR) who provide the needed energy source.
IN 2011 India should import about 60 million tons of thermal coal, a 17 percent increase over 2010's 47 million tons. China is expected to import about 70 million tons of thermal coal in 2012.
Thermal coal is used to generate electricity while coking coal is used to run steel plants. Overall, thermal coal demand is projected to surpass 7 billion tons in 2011, according to U.S. coal producer Peabody Energy Corp. (NYSE:BTU).
Thermal coal will probably grow faster than oil and gas in 2011, soaring over 30 percent to a record as demand from China and India climb and Japan increases its imports to make up for nuclear power lost after the recent earthquake.
Daniel Brebner, an analyst for Deutsche Bank (NYSE:DB) in London, said in the early part of April that thermal coal will average $132 a ton this year and $145 in 2012. Those prices are similar to what other analysts have also projected for thermal coal prices in that time period.
Head of Rio Tinto Group’s Coal & Allied Industries Ltd. unit, Chris Renwick, said, “We expect strong demand growth in China and India will continue throughout 2011 and the long-term prospects are also bright. Our traditional Asian markets have returned to pre-global financial crisis demand levels.”
Massey Energy closed Friday at $68.242, climbing $1.90, or 2.86 percent.
IN 2011 India should import about 60 million tons of thermal coal, a 17 percent increase over 2010's 47 million tons. China is expected to import about 70 million tons of thermal coal in 2012.
Thermal coal is used to generate electricity while coking coal is used to run steel plants. Overall, thermal coal demand is projected to surpass 7 billion tons in 2011, according to U.S. coal producer Peabody Energy Corp. (NYSE:BTU).
Thermal coal will probably grow faster than oil and gas in 2011, soaring over 30 percent to a record as demand from China and India climb and Japan increases its imports to make up for nuclear power lost after the recent earthquake.
Daniel Brebner, an analyst for Deutsche Bank (NYSE:DB) in London, said in the early part of April that thermal coal will average $132 a ton this year and $145 in 2012. Those prices are similar to what other analysts have also projected for thermal coal prices in that time period.
Head of Rio Tinto Group’s Coal & Allied Industries Ltd. unit, Chris Renwick, said, “We expect strong demand growth in China and India will continue throughout 2011 and the long-term prospects are also bright. Our traditional Asian markets have returned to pre-global financial crisis demand levels.”
Massey Energy closed Friday at $68.242, climbing $1.90, or 2.86 percent.
Dividend Yields for (HP) (MEE) (RRC) (COG) (EP)
Indicated dividend yields for Standard & Poor's 500 Index companies Helmerich & Payne Inc (HP), Massey Energy Co (MEE), Range Resources Corp (RRC), Cabot Oil & Gas Corp (COG) and El Paso Corp (EP).
These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.
Helmerich & Payne Inc (HP) has a dividend yield of 0.36 percent on a declared dividend of $0.06. The payout ratio is 6.5 percent.
Massey Energy Co (MEE) has a dividend yield of 0.35 percent on a declared dividend of $0.06. The payout ratio is na.
Range Resources Corp (RRC) has a dividend yield of 0.28 percent on a declared dividend of $0.04. The payout ratio is 69.3 percent.
Cabot Oil & Gas Corp (COG) has a dividend yield of 0.21 percent on a declared dividend of $0.03. The payout ratio is 24.2 percent.
El Paso Corp (EP) has a dividend yield of 0.21 percent on a declared dividend of $0.01. The payout ratio is 11.3 percent.
These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.
Helmerich & Payne Inc (HP) has a dividend yield of 0.36 percent on a declared dividend of $0.06. The payout ratio is 6.5 percent.
Massey Energy Co (MEE) has a dividend yield of 0.35 percent on a declared dividend of $0.06. The payout ratio is na.
Range Resources Corp (RRC) has a dividend yield of 0.28 percent on a declared dividend of $0.04. The payout ratio is 69.3 percent.
Cabot Oil & Gas Corp (COG) has a dividend yield of 0.21 percent on a declared dividend of $0.03. The payout ratio is 24.2 percent.
El Paso Corp (EP) has a dividend yield of 0.21 percent on a declared dividend of $0.01. The payout ratio is 11.3 percent.
Wednesday, April 27, 2011
Massey (MEE) (ACI) (WLB) (JOYG) Close Mixed as Thermal Coal Demand Soars
Massey Energy (NYSE:MEE), Arch Coal, Inc. (NYSE:ACI), Westmoreland Coal Company (AMEX:WLB) and Joy Global (Nasdaq:JOYG close mixed as surging demand from China and India for thermal or steam coal, and to a lesser extent, coking or metallurgical coal, is pushing the price of coal up, as well as the share price of those coal companies and companies with coal exposure like ... who provide the needed energy source.
IN 2011 India should import about 60 million tons of thermal coal, a 17 percent increase over 2010's 47 million tons. China is expected to import about 70 million tons of thermal coal in 2012.
Thermal coal is used to generate electricity while coking coal is used to run steel plants.
Overall, thermal coal demand is projected to surpass 7 billion tons in 2011, according to U.S. coal producer Peabody Energy Corp. (NYSE:BTU).
Thermal coal will probably grow faster than oil and gas in 2011, soaring over 30 percent to a record, as demand from China and India climbs and Japan increases its imports to make up for nuclear power lost after the recent earthquake.
Daniel Brebner, an analyst for Deutsche Bank (NYSE:DB) in London, said in the early part of April that thermal coal will average $132 a ton this year and $145 in 2012. Those prices are similar to what other analysts have also projected for thermal coal prices in that time period.
Head of Rio Tinto Group’s Coal & Allied Industries Ltd. unit, Chris Renwick, said, “We expect strong demand growth in China and India will continue throughout 2011 and the long-term prospects are also bright. Our traditional Asian markets have returned to pre-global financial crisis demand levels.”
IN 2011 India should import about 60 million tons of thermal coal, a 17 percent increase over 2010's 47 million tons. China is expected to import about 70 million tons of thermal coal in 2012.
Thermal coal is used to generate electricity while coking coal is used to run steel plants.
Overall, thermal coal demand is projected to surpass 7 billion tons in 2011, according to U.S. coal producer Peabody Energy Corp. (NYSE:BTU).
Thermal coal will probably grow faster than oil and gas in 2011, soaring over 30 percent to a record, as demand from China and India climbs and Japan increases its imports to make up for nuclear power lost after the recent earthquake.
Daniel Brebner, an analyst for Deutsche Bank (NYSE:DB) in London, said in the early part of April that thermal coal will average $132 a ton this year and $145 in 2012. Those prices are similar to what other analysts have also projected for thermal coal prices in that time period.
Head of Rio Tinto Group’s Coal & Allied Industries Ltd. unit, Chris Renwick, said, “We expect strong demand growth in China and India will continue throughout 2011 and the long-term prospects are also bright. Our traditional Asian markets have returned to pre-global financial crisis demand levels.”
Monday, April 25, 2011
Massey (MEE) (PVR) (ARLP) (ACI) (ANR) Close Up as Thermal Coal Demand Explodes
Growing demand from China and India for thermal or steam coal, and to a lesser degree, coking or metallurgical coal, is driving the price of coal up, as well as the share price those coal companies and companies with coal exposure, such as Penn Virginia Resource Partners (NYSE:PVR), Alliance Resource Partners (NASDAQ:ARLP), Arch Coal, Inc. (NYSE:ACI), Massey Energy (NYSE:MEE) and Alpha Natural Resources (NYSE:ANR), all of which provide the needed energy source.
IN 2011 India is expected to import about 60 million tons of thermal coal, a 17 percent increase over 2010's 47 million tons. China is estimated to be looking at importing about 70 million tons of thermal coal in 2012.
Thermal coal is used to generate electricity while coking coal to run steel plants.
Overall, thermal coal demand is estimated to surpass 7 billion tons in 2011, according to U.S. coal producer Peabody Energy Corp. (NYSE:BTU).
Thermal coal will probably grow faster than oil and gas in 2011, increasing over 30 percent to a record, as demand from China and India soars and Japan adds to its imports to make up for nuclear power lost after the recent earthquake.
Daniel Brebner, an analyst for Deutsche Bank (NYSE:DB) in London, said in the early part of April, that thermal coal will average $132 a ton this year and $145 in 2012. Those prices are close to what other analysts have also projected for thermal coal prices going forward.
Head of Rio Tinto Group’s (NYSE:RIO) Coal & Allied Industries Ltd. (CNA) unit, Chris Renwick, said, “We expect strong demand growth in China and India will continue throughout 2011 and the long-term prospects are also bright. Our traditional Asian markets have returned to pre-global financial crisis demand levels.”
Alpha Natural Resources closed Thursday at $57.08, gaining $0.86, or 1.53 percent. Massey Energy ended the day at $66.81, up $0.75, or 1.14 percent. Arch Coal, Inc. closed at $34.64, jumping $1.21, or 3.62 percent. Alliance Resource Partners closed the session at $76.48, rising $1.47, or 1.96 percent. Penn Virginia Resource Partners closed at $27.91, gaining $0.34, or 1.23 percent.
IN 2011 India is expected to import about 60 million tons of thermal coal, a 17 percent increase over 2010's 47 million tons. China is estimated to be looking at importing about 70 million tons of thermal coal in 2012.
Thermal coal is used to generate electricity while coking coal to run steel plants.
Overall, thermal coal demand is estimated to surpass 7 billion tons in 2011, according to U.S. coal producer Peabody Energy Corp. (NYSE:BTU).
Thermal coal will probably grow faster than oil and gas in 2011, increasing over 30 percent to a record, as demand from China and India soars and Japan adds to its imports to make up for nuclear power lost after the recent earthquake.
Daniel Brebner, an analyst for Deutsche Bank (NYSE:DB) in London, said in the early part of April, that thermal coal will average $132 a ton this year and $145 in 2012. Those prices are close to what other analysts have also projected for thermal coal prices going forward.
Head of Rio Tinto Group’s (NYSE:RIO) Coal & Allied Industries Ltd. (CNA) unit, Chris Renwick, said, “We expect strong demand growth in China and India will continue throughout 2011 and the long-term prospects are also bright. Our traditional Asian markets have returned to pre-global financial crisis demand levels.”
Alpha Natural Resources closed Thursday at $57.08, gaining $0.86, or 1.53 percent. Massey Energy ended the day at $66.81, up $0.75, or 1.14 percent. Arch Coal, Inc. closed at $34.64, jumping $1.21, or 3.62 percent. Alliance Resource Partners closed the session at $76.48, rising $1.47, or 1.96 percent. Penn Virginia Resource Partners closed at $27.91, gaining $0.34, or 1.23 percent.
Thursday, April 21, 2011
Massey (MEE) (CLD) (PCX) (WLB) Close Up on Strong Demand, Higher Prices
While there have been some setbacks this year for some coal miners because of the floods in Australia, the overall industry looks robust, and demand is strong in China and India as coal firms like Massey Energy (NYSE:MEE), Cloud Peak Energy Inc. (NYSE:CLD), Patriot Coal (NYSE:PCX) and Westmoreland Coal Company (AMEX:WLB) closed up Wednesday on the long term trend.
Some thought the quarterly earnings report of Peabody Energy Corp. (NYSE:BTU) was going to drag down the coal sector, but guidance long term was strong, even in the midst of some of the short-term challenges.
Demand will remain strong for coal while supply is constrained. That's a good situation for any company providing a product, and it will be for the coal sector and the miners in it as well.
Record prices for steel-making metallurgical coal along with power-generating thermal coal in recent weeks has also given a boost to the industry.
Coal's importance will remand for decades and longer, and those supplying it should enjoy some solid growth and earnings during that time.
Westmoreland Coal Company closed at $16.68, gaining $0.38, or 2.33 percent. Patriot Coal ended the session at $24.53, up $0.43, or 1.78 percent. Cloud Peak Energy Inc. closed at $19.66, rising $0.24, or 1.24 percent. Massey Energy closed the day at $66.06, jumping $1.67, or 2.59 percent.
Some thought the quarterly earnings report of Peabody Energy Corp. (NYSE:BTU) was going to drag down the coal sector, but guidance long term was strong, even in the midst of some of the short-term challenges.
Demand will remain strong for coal while supply is constrained. That's a good situation for any company providing a product, and it will be for the coal sector and the miners in it as well.
Record prices for steel-making metallurgical coal along with power-generating thermal coal in recent weeks has also given a boost to the industry.
Coal's importance will remand for decades and longer, and those supplying it should enjoy some solid growth and earnings during that time.
Westmoreland Coal Company closed at $16.68, gaining $0.38, or 2.33 percent. Patriot Coal ended the session at $24.53, up $0.43, or 1.78 percent. Cloud Peak Energy Inc. closed at $19.66, rising $0.24, or 1.24 percent. Massey Energy closed the day at $66.06, jumping $1.67, or 2.59 percent.
Monday, April 18, 2011
Massey (MEE) (BTU) (ICO) (YZC) Close Mixed On Coal Prices
Coal companies have been performing somewhat volatile of late, depending on specific results for each company, even though the overall sector has been doing well recently. Coal companies like Peabody Energy Corporation (NYSE:BTU), Yanzhou coal Mining Co. (NYSE:YZC), International Coal Group, Inc. (NYSE:ICO) and Massey Energy (NYSE:MEE) closed mixed on Friday.
Metallurgical coal prices were mixed last week on the U.S. spot market, with spot prices for low-volatility coking coal dropping $3.12, or 0.9 percent, to $326.88 a ton in the week ended Friday, according to Energy Publishing Inc.. High-volatility coal remained the same at $298.33.
Like any sector, coal companies, even within a high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and should rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, according to the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should jump by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before the financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Massey Energy closed Friday at $64.61, gaining $1.61, or 2.56 percent. International Coal Group closed at $11.00, falling $0.04, or 0.36 percent. Yanzhou coal Mining Co. ended the session at $37.91, up $0.83, or 2.24 percent. Peabody Energy Corporation closed at $65.57, down $0.19, or 0.29 percent.
Metallurgical coal prices were mixed last week on the U.S. spot market, with spot prices for low-volatility coking coal dropping $3.12, or 0.9 percent, to $326.88 a ton in the week ended Friday, according to Energy Publishing Inc.. High-volatility coal remained the same at $298.33.
Like any sector, coal companies, even within a high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and should rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, according to the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should jump by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before the financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Massey Energy closed Friday at $64.61, gaining $1.61, or 2.56 percent. International Coal Group closed at $11.00, falling $0.04, or 0.36 percent. Yanzhou coal Mining Co. ended the session at $37.91, up $0.83, or 2.24 percent. Peabody Energy Corporation closed at $65.57, down $0.19, or 0.29 percent.
Friday, April 15, 2011
Coal's Massey (MEE) (ICO) (LLEN) (ANR) (PCX) Trade Mixed
Coal companies have been performing somewhat volatile of late, depending on specific results for each company, even though the overall sector has been doing well recently. Firms like International Coal Group (NYSE:ICO), Massey Energy (NYSE:MEE), L&L Energy (NASDAQ:LLEN), Alpha Natural Resources (NYSE:ANR) and Patriot Coal (NYSE:PCX) closed mixed on Thursday, as the market looks for short-term direction.
Like any sector, coal companies, even within the high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and that could rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, said the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should grow by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before he financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Patriot Coal closed Thursday at $24.53, gaining $0.47, or 1.95 percent. Alpha Natural Resources closed at $53.45, falling $0.44, or 0.82 percent. L&L Energy ended the session at $5.75, jumping $0.75, or 15.00 percent. Massey Energy closed at $63.00, down $0.25, or 0.40 percent. International Coal Group closed at $11.04, rising $0.43, or 4.05 percent.
Like any sector, coal companies, even within the high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and that could rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, said the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should grow by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before he financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Patriot Coal closed Thursday at $24.53, gaining $0.47, or 1.95 percent. Alpha Natural Resources closed at $53.45, falling $0.44, or 0.82 percent. L&L Energy ended the session at $5.75, jumping $0.75, or 15.00 percent. Massey Energy closed at $63.00, down $0.25, or 0.40 percent. International Coal Group closed at $11.04, rising $0.43, or 4.05 percent.
Thursday, March 31, 2011
Massey (MEE) Awarded WV Mining Permit from CofE
Massey Energy (NYSE:MEE) was awarded a permit from the United States Army Corps of Engineers to start mining for coal in West Virginia.
Estimates are the Reylas Surface Mine in Logan County should produce about 1 million tons of coal annually over a six-year period.
With demand for coal rising, Massey continues to increase production, which rose in 2010 and is expected to reach about 30 million tons annually, although there is the definite possibility those numbers could rise, along with demand.
Only Arch Coal (NYSE:ACI), Peabody Energy (NYSE:BTU) and CONSOL Energy (NYSE:CNX) are larger coal companies in the United States than Massey, which closed Wednesday at $68.51, gaining $0.44, or 0.65 percent.
Estimates are the Reylas Surface Mine in Logan County should produce about 1 million tons of coal annually over a six-year period.
With demand for coal rising, Massey continues to increase production, which rose in 2010 and is expected to reach about 30 million tons annually, although there is the definite possibility those numbers could rise, along with demand.
Only Arch Coal (NYSE:ACI), Peabody Energy (NYSE:BTU) and CONSOL Energy (NYSE:CNX) are larger coal companies in the United States than Massey, which closed Wednesday at $68.51, gaining $0.44, or 0.65 percent.
Tuesday, March 29, 2011
Massey (MEE) Cited for Over 80 Safety Violations
After a series of special inspections by the federal Mine Safety and Health Administration in February, troubled coal miner Massey Energy (NYSE:MEE) was cited for over 80 safety violations
Director Joe Main said in a statement, "MSHA has been conducting these targeted inspections for nearly a year and, while some operators have been responsive and showed a willingness to change, others continue to commit the same serious violations."
"We treat citations seriously and we are working diligently to constantly improve safety at our operations," said Massey spokesman Jeff Gillenwater.
Massey closed Monday at $67.19, down $1.04, or 1.52 percent.
Director Joe Main said in a statement, "MSHA has been conducting these targeted inspections for nearly a year and, while some operators have been responsive and showed a willingness to change, others continue to commit the same serious violations."
"We treat citations seriously and we are working diligently to constantly improve safety at our operations," said Massey spokesman Jeff Gillenwater.
Massey closed Monday at $67.19, down $1.04, or 1.52 percent.
Friday, March 18, 2011
Shares of Arch Coal (ACI), (YZC), (BTU), (MEE) Rise on Expected Japan Demand
With few exceptions coal companies have been soaring on expectations Japan will need an huge supply of coal to replace the loss of nuclear energy. Companies like Arch Coal (NYSE:ACI), Yanzhou Coal mining Co. (NYSE:YZC), Peabody Energy Corporation (NYSE:BTU), and Massey Energy (NYSE:MEE) have been soaring in share price on the expected boost in demand, confirming the vital importance of coal as a major source in generating electricity.
Energy sectors like solar and wind power were also up, but that is more a irrational reaction and irrelevant, as there is nothing there that could aid Japan in the short or long term.
Liquefied natural gas is another demand expected to surge in Japan, as Japan is the largest importer of that in the world.
Arch Coal, Inc. closed Thursday at $35.09, gaining $.94, or 2.75 percent. Yanzhou coal mining Co. closed at $31.96, gaining $1.00, or 3.23 percent. Peabody Energy Corporation closed at $70.12, up $2.45, or 3.62 percent. Massey Energy ended the session at $63.15, up $2.32, or 3.81 percent.
Energy sectors like solar and wind power were also up, but that is more a irrational reaction and irrelevant, as there is nothing there that could aid Japan in the short or long term.
Liquefied natural gas is another demand expected to surge in Japan, as Japan is the largest importer of that in the world.
Arch Coal, Inc. closed Thursday at $35.09, gaining $.94, or 2.75 percent. Yanzhou coal mining Co. closed at $31.96, gaining $1.00, or 3.23 percent. Peabody Energy Corporation closed at $70.12, up $2.45, or 3.62 percent. Massey Energy ended the session at $63.15, up $2.32, or 3.81 percent.
Thursday, March 10, 2011
Massey Energy (NYSE:MEE) Sued for Wrongful Death in Upper Big Branch Explosion
The families of two of the coal miners killed in the blast at the Upper Big Branch mine of Massey Energy (NYSE:MEE) last year have filed a wrongful death lawsuit against the mine's owner saying it was a "catastrophe waiting to happen".
The families of two coal miners killed in the Upper Big Branch mine blast last year filed wrongful death lawsuits against the mine's owner, Massey Energy Co, saying it was a "catastrophe waiting to happen,"
The suits come a week after Massey's head of security at the West Virginia mine was charged with impeding investigators probing the April 5, 2010, explosion that killed 29 miners in the worst U.S. mine accident in four decades.
According to the suits, the families of Joe Marcum and Adam Morgan, who died in the explosion, are seeking unspecified compensatory and punitive damages as a result of "the willful, wanton and recklessly unsafe manner" in which Massey operated the mine.
The complaints allege Massey had "an abysmal safety record" and the number of federal safety violations more than doubled between 2008 and 2009 -- something then-Chief Executive Officer Don Blankenship was aware of.
Source = Reuters
The families of two coal miners killed in the Upper Big Branch mine blast last year filed wrongful death lawsuits against the mine's owner, Massey Energy Co, saying it was a "catastrophe waiting to happen,"
The suits come a week after Massey's head of security at the West Virginia mine was charged with impeding investigators probing the April 5, 2010, explosion that killed 29 miners in the worst U.S. mine accident in four decades.
According to the suits, the families of Joe Marcum and Adam Morgan, who died in the explosion, are seeking unspecified compensatory and punitive damages as a result of "the willful, wanton and recklessly unsafe manner" in which Massey operated the mine.
The complaints allege Massey had "an abysmal safety record" and the number of federal safety violations more than doubled between 2008 and 2009 -- something then-Chief Executive Officer Don Blankenship was aware of.
Source = Reuters
Tuesday, February 1, 2011
Arch Coal (NYSE:ACI), Patriot Coal (NYSE:PCX), Consol Energy Inc. (NYSE:CNX) Soar and Roar on Massey (NYSE:MEE) Deal
The $7.1 billion bid by Alpha Natural Resources Inc. (NYSE:ANR) for Massey Energy (NYSE:MEE) has brought the focus on the ongoing value and importance of the coal mining sector, and other than ANR, shares of companies like Arch Coal (NYSE:ACI), Patriot Coal (NYSE:PCX) and Consol Energy Inc. (NYSE:CNX) have soared as the market digests the news.
Alpha will be exporting a huge amount of metallurgical coal once the deal closes, which enjoys higher prices and margins, and provides product for the steel industry.
Consol Energy closed Monday at $49.70, gaining $1.77, or 3.69 percent. Patriot Coal ended the session at $26.17, up 0.71, or 2.79 percent. Arch Coal closed at $34.25, up $1.03, or 3.10 percent.
Alpha will be exporting a huge amount of metallurgical coal once the deal closes, which enjoys higher prices and margins, and provides product for the steel industry.
Consol Energy closed Monday at $49.70, gaining $1.77, or 3.69 percent. Patriot Coal ended the session at $26.17, up 0.71, or 2.79 percent. Arch Coal closed at $34.25, up $1.03, or 3.10 percent.
Monday, January 31, 2011
Alpha Natural Resources' (NYSE:ANR) Massey (NYSE:MEE) Deal Would Create Coal Giant
The bid for Massey Energy (NYSE:MEE) by Alpha Natural Resources (NYSE:ANR) was stated to be a deal to create a huge coal export company, according to CEO Kevin Crutchfield.
Crutchfield said the deal will create a company that would produce over 27 million tons of metallurgical coal by 2013. Metallurgical coal generates higher prices.
Alpha Natural Resources will start adding to earnings from the deal in 2012, added Crutchfield.
The takeover is valued at $7.1 billion, whereby Massey shareholders will receive $10 a share and 46 percent of the new company's stock.
Both boards gave unanimous approval for the deal to go forward.
Alpha Natural Resources was trading at $53.41, dropping $4.47, or 7.72 percent, as of 11:55 AM EST. Massey was trading at $62.77, gaining $5.55, or 9.68 percent.
Crutchfield said the deal will create a company that would produce over 27 million tons of metallurgical coal by 2013. Metallurgical coal generates higher prices.
Alpha Natural Resources will start adding to earnings from the deal in 2012, added Crutchfield.
The takeover is valued at $7.1 billion, whereby Massey shareholders will receive $10 a share and 46 percent of the new company's stock.
Both boards gave unanimous approval for the deal to go forward.
Alpha Natural Resources was trading at $53.41, dropping $4.47, or 7.72 percent, as of 11:55 AM EST. Massey was trading at $62.77, gaining $5.55, or 9.68 percent.
Alpha Natural (NYSE:ANR) Closes Massey Energy (NYSE:MEE) Deal for $7.1 Billion
Alpha Natural Resources Inc. has closed the deal to acquire Massey Energy (NYSE:MEE) for around $7 billion. The deal would include cash and stock.
Shareholders of Massey will receive 1.025 share of Alpha share for each share of Massey, plus an additional $10 a share in cash. That would place the value of Massey at about $69.22 a share, a 21 percent premium over their Friday close of $57.23.
This all started back with an explosion at the Upper Big Branch mine in West Virginia, which killed 29 workers and resulted in regulatory restrictions which forced Massey to cut back on production, weakening the company and making them a takeover target.
Massey continues to fight the theory of what caused the accident, where the federal government asserts excessive coal dust buildup, broken water sprayers and worn shearer bits were the cause of the tragedy.
The coal miner says it was the result of a crack in the floor releasing a sudden flow of natural gases which resulted in the accident. An inspection three weeks before the explosion found no large quantities of coal dust from Massey, refuting the government's theory.
Final reports from the government and Massey have yet to be made, with Massey saying they won't release theirs until the government first releases their report.
Massey closed Friday at $57.23, gaining $2.84, or 5.22 percent. Alpha Natural Resources closed at $57.88, up $1.58, or 2.73 percent.
Shareholders of Massey will receive 1.025 share of Alpha share for each share of Massey, plus an additional $10 a share in cash. That would place the value of Massey at about $69.22 a share, a 21 percent premium over their Friday close of $57.23.
This all started back with an explosion at the Upper Big Branch mine in West Virginia, which killed 29 workers and resulted in regulatory restrictions which forced Massey to cut back on production, weakening the company and making them a takeover target.
Massey continues to fight the theory of what caused the accident, where the federal government asserts excessive coal dust buildup, broken water sprayers and worn shearer bits were the cause of the tragedy.
The coal miner says it was the result of a crack in the floor releasing a sudden flow of natural gases which resulted in the accident. An inspection three weeks before the explosion found no large quantities of coal dust from Massey, refuting the government's theory.
Final reports from the government and Massey have yet to be made, with Massey saying they won't release theirs until the government first releases their report.
Massey closed Friday at $57.23, gaining $2.84, or 5.22 percent. Alpha Natural Resources closed at $57.88, up $1.58, or 2.73 percent.
Thursday, January 20, 2011
Massey Energy (NYSE:MEE) Has Little Upside on Several Issues
Citing an overall breather in the coal sector, PPOV list of MEE mines, and availability of mountaintop permits, FBR sees Massey Energy (NYSE:MEE) as having little upside at the current time.
FBR says, "Yesterday, mid-afternoon, the MHSA provided a PowerPoint presentation and conference call update on the Massey Energy Upper Big Branch (UBB) investigation regarding the mine disaster and is trying to press closer toward criminal negligence. While the investigation is nearing completion, it is clear that the MHSA is moving closer toward negligence and pointing toward one or all of these issues: inadequate rock dusting, water suppression, ventilation, and quality examination. Massey's management does not believe this is the case, and its prior view was that a large amount of natural gas leaks was the cause. We remain with our rating on MEE and believe a takeout is still very possible. However, we continue to think there is little upside to the current stock price, given the combination of the current production profile (declining), PPOV list of MEE mines creating more production uncertainty, and overall mountaintop mining permit availability. Furthermore, the coal space is taking a breather for now, and the current buyer stock currency is declining."
FBR Capital reiterates a "Market Perform" rating on Massey Energy Co. (MEE), which was trading at $52.52, down $1.58, or 2.92 percent, as of 1:04 PM EST. FBR has a price target of $54 on Massey.
FBR says, "Yesterday, mid-afternoon, the MHSA provided a PowerPoint presentation and conference call update on the Massey Energy Upper Big Branch (UBB) investigation regarding the mine disaster and is trying to press closer toward criminal negligence. While the investigation is nearing completion, it is clear that the MHSA is moving closer toward negligence and pointing toward one or all of these issues: inadequate rock dusting, water suppression, ventilation, and quality examination. Massey's management does not believe this is the case, and its prior view was that a large amount of natural gas leaks was the cause. We remain with our rating on MEE and believe a takeout is still very possible. However, we continue to think there is little upside to the current stock price, given the combination of the current production profile (declining), PPOV list of MEE mines creating more production uncertainty, and overall mountaintop mining permit availability. Furthermore, the coal space is taking a breather for now, and the current buyer stock currency is declining."
FBR Capital reiterates a "Market Perform" rating on Massey Energy Co. (MEE), which was trading at $52.52, down $1.58, or 2.92 percent, as of 1:04 PM EST. FBR has a price target of $54 on Massey.
Monday, January 10, 2011
Massey Energy (NYSE:MEE) Earnings Lowered on Costs, Lower Volumes
Massey Energy Co. (NYSE:MEE) had its EPS estimate lowered in the fourth quarter by Barclays (NYSE:BCS), based on higher costs and lower shipping volumes.
Barclays says, "We are adjusting our 4Q 2010 earnings estimate from $0.04/share to -$0.12/share to account for the lower shipment volumes as well as slightly higher costs, which are likely to accompany reduced production volumes. We are maintaining our below-consensus estimates for 2011 and beyond.
"We are optimistic that a new CEO at Massey may start providing more credible guidance. We are not optimistic that geological challenges facing Central Appalachian miners are over. While we are very bullish on coal, we believe there are better values within coal equities."
Barclays reiterates an "Equalweight" rating on Massey Energy Co., which closed Friday at $56.11, gaining $1.46, or 2.67 percent. Barclays boosted their price target on them from $38 to $48.
Barclays says, "We are adjusting our 4Q 2010 earnings estimate from $0.04/share to -$0.12/share to account for the lower shipment volumes as well as slightly higher costs, which are likely to accompany reduced production volumes. We are maintaining our below-consensus estimates for 2011 and beyond.
"We are optimistic that a new CEO at Massey may start providing more credible guidance. We are not optimistic that geological challenges facing Central Appalachian miners are over. While we are very bullish on coal, we believe there are better values within coal equities."
Barclays reiterates an "Equalweight" rating on Massey Energy Co., which closed Friday at $56.11, gaining $1.46, or 2.67 percent. Barclays boosted their price target on them from $38 to $48.
Subscribe to:
Comments (Atom)