Arch Coal

IEEFA Research

IEEFA update: Peabody Energy flirts with bankruptcy—again

IEEFA update: Peabody Energy flirts with bankruptcy—again

Bear market for coal, new financial pressures push world’s largest coal company towards default

Just three-and-a-half years after emerging from its previous bankruptcy, Peabody Energy—the world’s largest private coal miner—admitted to investors on Monday that it could face yet another trip to bankruptcy court in the coming months. Coal bankruptcies in the United States have become increasingly common. Cheap gas and renewable power have steadily replaced coal in the […]

IEEFA report: Powder River Basin coal industry  is in long-term decline

IEEFA report: Powder River Basin coal industry is in long-term decline

Fast-changing markets indicate deeper downturns to come in Montana and Wyoming

March 18, 2019 (IEEFA U.S.) — Coal producers in the Powder River Basin continue to lose customers as utilities across the U.S. embrace a shift toward cleaner and cheaper forms of power generation, according to a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The report — Powder River Basin Coal […]

IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

Production Declining by as Much as 40 Million Tons; Prices Failing to Benefit Shareholders or Stimulate New Investment; Anemic Exports; Little or No Gain From Regulatory Relief; Increasingly Dim Employment Prospects

We’re out this morning with our annual outlook for U.S. coal markets, and the picture isn’t pretty. We see the potential for some short-lived strength in the current uptick for coal producers but the title of our assessment sums up the larger view: “Short-Term Gains Will Be Muted by Prevailing Weaknesses in Fundamentals.” You can […]

As Texas Coal-Fired Power Plants Close, Powder River Basin Mines Are Losing Their Largest Customers

Trends Will Force Closures and Complicate Efforts by Alpha Natural Resources, Arch Coal and Peabody Energy to Work Their Way Out of Bankruptcy

CLEVELAND, Aug. 3, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report detailing how Powder River Basin coal producers are losing their largest customers as Texas power producers turn increasingly to other sources of energy. The report, “Texas’ Outsize Role in the Decline of the Powder River Basin Coal […]

and August 2, 2016 Read More →
The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

Appoint a Price-Setting Commission; Ban Exports; Cancel Some Leases; Eliminate Self-Bonding; Mandate Set-Asides for Mine Clean-up and Miner Pensions; Require Twice-a-Year Audits; Assume Smaller Markets

It’s time for the U.S. to modernize how it manages its publicly owned coal reserves. That’s the essence of comments we’ve filed today with the Department of the Interior as it begins a review of its federal coal-leasing program in the Powder River Basin, a program that has been mismanaged for years at taxpayer expense […]

For U.S. Coal, Market Realities Grow Increasingly Harsh

For U.S. Coal, Market Realities Grow Increasingly Harsh

Debt Hurdles, Reclamation and Pension Challenges, Abandonment by Hedge Funds

We distributed a briefing note this week that delves into some of the many pressing difficulties confronting U.S. coal producers. In the note (“Struggling U.S. Coal Companies Face Debt Hurdles, Complications From Reclamation and Pension Obligations, Pressure from Hedge Funds”) we talk about how the cumulative impacts of the industry’s many mounting liabilities—reclamation costs, pension […]

Report – No Need for New U.S. Coal Ports: Data Shows Oversupply in Capacity

Report – No Need for New U.S. Coal Ports: Data Shows Oversupply in Capacity

No Need for New U.S. Coal Ports: Data Shows Oversupply in Capacity (pdf) By Tom Sanzillo, Director of Finance, IEEFA  

November 19, 2014 Read More →
Report: 20 Fourth-Quarter Questions for Powder River Basin Coal Producers

Report: 20 Fourth-Quarter Questions for Powder River Basin Coal Producers

20 Fourth-Quarter Questions for Powder River Basin Coal Producers (pdf) By Tom Sanzillo, Director of Finance, Institute for Energy Economics and Financial Analysis

November 11, 2014 Read More →
Report – NYC and NYS pension funds should divest coal stocks: A shrinking industry, weak upside, and wrong on climate change

Report – NYC and NYS pension funds should divest coal stocks: A shrinking industry, weak upside, and wrong on climate change

NYC and NYS pension funds should divest coal stocks: A shrinking industry, weak upside, and wrong on climate change (pdf)

May 8, 2014 Read More →
Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk (pdf) By Tim Buckley,  Director of Energy Resource Studies, Australasia, IEEFA

April 18, 2014 Read More →

More News and Commentary

IEEFA Canada: Teck’s possible met coal exit an ominous sign for U.S. coal companies

IEEFA Canada: Teck’s possible met coal exit an ominous sign for U.S. coal companies

Overseas demand, high prices and climate issues give Teck cover for met coal exit

Teck Resources, the Canada-based copper, zinc and coal mining company that is one of the biggest exporters of steelmaking coal in the world, is considering selling or spinning off its metallurgical coal operations, according to a Sept. 14 Bloomberg report. Any divestment of its big coal mines in British Columbia could be a signal that […]

September 21, 2021 Read More →

Coal output rose in first half of 2021 but employment continues decline

S&P Global Market Intelligence ($): U.S. coal production bounced back in the first half of 2021 from early pandemic lows set in the first half of 2020, but average quarterly employment in the sector has not similarly recovered. Total U.S. coal output dipped substantially in early 2020 as reduced demand drove down energy consumption during […]

August 30, 2021 Read More →

Coal employment continues slide even as production has ticked upward

S&P Global Market Intelligence ($): U.S. coal production in the first quarter of 2021 continued the industry’s recovery from a significant drop the previous year, but the sector’s employment levels are still suffering as the U.S. moves away from coal and embraces lower emission options. While coal production during the first quarter of this year […]

May 28, 2021 Read More →

Powder River Basin customers burned 42% less coal last year

E&E News ($): Customers of mines in Wyoming and Montana burned as much as 42% less coal last year, according to a new analysis estimating which operations are most at risk of closing. The Powder River Basin mines about 40% of the country’s coal, but the region’s sprawling open pits have seen production cut by […]

May 20, 2021 Read More →

Arch planning for Black Thunder mine’s closure as U.S. coal demand continues to shrink

S&P Global Market Intelligence ($): The owner of the second-largest coal mine in the U.S. by production volume is planning for the asset’s closure as retirement dates approach for several plants that burn much of the mine’s fuel. Coal demand in the U.S. has been declining for years, and Arch Resources Inc. announced Feb. 9 […]

February 24, 2021 Read More →

U.S. energy transition hits Powder River Basin as coal production falls, mines close

S&P Global Market Intelligence ($): A sharp decline in coal demand from the U.S. power sector is wreaking havoc on the Powder River Basin as mine operators in the region scaled back production during 2020 with few indications of improved prospects for volumes. Production in the country’s largest coal-producing basin fell 21.8% year over year […]

February 9, 2021 Read More →
IEEFA update: Peabody Energy flirts with bankruptcy—again
and

IEEFA update: Peabody Energy flirts with bankruptcy—again

Bear market for coal, new financial pressures push world’s largest coal company towards default

Just three-and-a-half years after emerging from its previous bankruptcy, Peabody Energy—the world’s largest private coal miner—admitted to investors on Monday that it could face yet another trip to bankruptcy court in the coming months. Coal bankruptcies in the United States have become increasingly common. Cheap gas and renewable power have steadily replaced coal in the […]

Arch to sharply cut PRB coal production, continue shift to met coal

Casper Star Tribune: Coal giant Arch Resources, Inc. plans to aggressively shrink thermal coal operations in the Powder River Basin, outlining a shift toward coking coal and steel production in an investor call on Thursday. Arch anticipates slashing thermal coal production by another 50% over the next two to three years at its coal mines […]

October 23, 2020 Read More →

Judge rejects Peabody, Arch plan for coal mining joint venture in Powder River Basin

Wyoming Public Media: A federal judge has ruled against a proposed joint venture between the two largest coal producers in the nation. District Judge Sarah Pitlyk found that consolidating seven of Arch Resources Inc. and Peabody Energy Corp’s mines in the Powder River Basin and Colorado wouldn’t bode well for the region’s market. The move […]

September 30, 2020 Read More →

IEEFA Energy Finance Conference 2020: Coal, LNG, petrochemical sectors face poor outlook and uphill battle for investors

Fossil fuel industries were becoming less financially attractive even before the global coronavirus pandemic

Three major fossil fuel-based industries—coal, liquefied natural gas, and plastics—were becoming less financially attractive even before the global coronavirus pandemic, according to experts who spoke during the second week of IEEFA’s 2020 Energy Finance Conference. The annual meeting of international energy, finance and policy experts, which was offered online this year because of COVID-related restrictions, […]

July 24, 2020 Read More →