November 6, 2017 Read More →

Latest Data, Coupled With Armstrong Bankruptcy, Shows Slide in Kentucky Coal Industry

SNL:

Recent data shows that total coal production at Kentucky mines during the third quarter of 2017 totaled 9.6 million tons, posting a 15.6% cutback from the previous quarter’s 11.4 million tons and sliding 6.6% year over year.

Western Kentucky’s second-largest coal producer, Armstrong Energy Inc., filed for a Chapter 11 bankruptcy reorganization this week, citing supply glut and depressed prices.

“In the past few years, thermal and metallurgical coal markets and pricing have become increasingly challenged with oversupply conditions,” Alan Boyko, chief restructuring officer for Armstrong, wrote in a court filing. “In addition, coal’s share of the U.S. energy market and prices for thermal and metallurgical coal have both declined markedly. The lethargic economic environment, lack of growth in energy demand generally, and a number of scheduled coal-fired plant retirements have precipitated this decline.”

The company’s bankruptcy marks the first reorganization since a wave of optimism pervaded the coal industry with the election of President Donald Trump.

More ($): Kentucky’s coal production slides 6.6% YOY in Q3’17

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