Author Archive: Tom Sanzillo

Director of Finance Tom Sanzillo has 30 years of experience in public and private finance, including as a first deputy comptroller of New York State, where he held oversight over a $156 billion pension fund and $200 billion in municipal bond programs.

IEEFA Update: Peabody’s Recovery Plan Overstates the Market for Coal

Fragile Back-to-Black Balance Sheet Stands to Leave Investors in the Red; Likely Underperformance on Production and Revenue Forecasts

Last week’s bankruptcy court approval of Peabody Energy’s reorganization plan should be cause for investor alarm. The flaws in the plan are fundamental: First, the company is claiming an increase in coal sales at a time of a declining market. The company in fact faces the likely loss of five to seven million tons per […]

March 20, 2017 Read More →
IEEFA Exxon: White House’s Endorsement Is Just More Evidence of Distress

IEEFA Exxon: White House’s Endorsement Is Just More Evidence of Distress

Stock Hits 52-Week Low; Turnaround Plan Is Questionable; Buyers Beware

ExxonMobil’s deteriorating financial condition is on full view today after its stock opened at a 52-week low on news of lower oil prices. Investors, it’s safe to say, have met the company’s recent announcement of new capital investment with skepticism. ExxonMobil’s stock has now fallen by 15 percent just since this past December, a period in […]

March 9, 2017 Read More →
IEEFA Update: Wall Street Gets the Exxon Heebie-Jeebies

IEEFA Update: Wall Street Gets the Exxon Heebie-Jeebies

Skeptical Oil Industry Analysts Greet a Changing of the Guard

News of note this week on sentiment toward ExxonMobil comes by way, among others, of the Wall Street Journal: “Exxon has lost cachet among institutional investors in recent years: Most portfolios hold a smaller proportion of Exxon stock than its relative size in the S&P 500 index, according to Evercore ISI analyst Doug Terreson.” “This […]

March 3, 2017 Read More →

IEEFA Exxon: Questions, More Questions

What, Really, Is the Future of the Oil Industry? And How Believable Are Company Projections?

Much will be written this week about the oil industry’s abandonment of key reserves in its oil sands holdings. ExxonMobil is suddenly smaller than it was. So is Canada’s energy industry, and so are world oil markets. All said, the oil industry, globally speaking, has recently now lost about 10 percent of its proven and […]

February 23, 2017 Read More →
IEEFA Norway: Why the World’s Biggest Sovereign Wealth Fund Should Invest in Global Renewable Energy Infrastructure

IEEFA Norway: Why the World’s Biggest Sovereign Wealth Fund Should Invest in Global Renewable Energy Infrastructure

The Sector is Growing, Returns Are Reliable, the Outlook is Positive

We published a report this morning that highlights how Norway is at a historic crossroads in how it manages some of its vast national wealth bound up in the Government Pension Fund Global (GPFG). Indeed, GPFG is facing an unusually opportune moment this summer, as Parliament considers whether to enact a mandate that would have […]

IEEFA Op-Ed: Opportunity Knocks

Enormous and Immediate Demand for Renewable Energy Infrastructure in Developed and Emerging Economies Alike

Norway’s management of its vast national wealth – held in the world’s biggest sovereign wealth fund – is at an historic crossroads. Indeed, it is facing an unusually opportune moment this summer, as parliament considers granting the fund a mandate to invest up to 5 percent of its US$880 billion in unlisted infrastructure, including renewable […]

February 22, 2017 Read More →

IEEFA Op-Ed: Market Forces Are What’s Killing the Navajo Generating Station

The President Should Not Intercede

The question of whether the Navajo Generating Station will stay open past 2019 is of special regional interest for the implications it raises about jobs and local economies in the Rocky Mountains and the Southwest. But it’s a national issue too, as shown by pleas this week for President Trump to take executive action to […]

February 21, 2017 Read More →
IEEFA Update: Shutdown of Navajo Generating Station Likely Blows a Hole in Peabody’s Bankruptcy Plan

IEEFA Update: Shutdown of Navajo Generating Station Likely Blows a Hole in Peabody’s Bankruptcy Plan

Company Seen as Unlikely to Meet its Production or EBITDA Projections; Fate of Plant Is Emblematic of Larger Shift

Bankrupt Peabody Energy is being dealt a fresh setback on news this week that owners of the coal-fired Navajo Generating Station don’t expect to keep the plant open past 2019. The 2,500-megawatt station in Northern Arizona is owned by a consortium of public and private utilities with significant service areas in several states. While Peabody […]

February 15, 2017 Read More →
IEEFA Update: Elections Have Consequences, but Perhaps Few That Can Save Coal

IEEFA Update: Elections Have Consequences, but Perhaps Few That Can Save Coal

Market Forces Are What Matter Above All

We didn’t make it this year to the Coaltrans USA conference last week in Miami, but we heard tell of some smart talk at the event by two of the industry’s CEOs, Bob Murray of Murray Energy and Kevin Crutchfield of Contura Energy, né Alpha Natural Resources.    The conference, where executives and analysts gather […]

February 9, 2017 Read More →
IEEFA Op-Ed: Investors Should Steer Clear of the Keystone Pipeline

IEEFA Op-Ed: Investors Should Steer Clear of the Keystone Pipeline

Superfluous, High-Risk Infrastructure the Markets Cannot Support

The oil industry is in trouble, beset by bankruptcies of junior companies, write-downs by major producers, and canceled or drastically delayed projects across the board. The last thing it needs is the proposed Keystone XL pipeline, which President Trump this week moved to resurrect after only five days in office. If the president gets the […]

January 31, 2017 Read More →