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Clark Williams-Derry
Weak demand and low prices are likely creating steep losses for NTEC
U.S. coal exports to Asia—once heralded as the saving grace for struggling coal producers in the western United States—are facing new strains from low prices and weak demand in the wake of the global COVID-19 crisis. In its third-quarter financial statement released earlier this month, Westshore Terminals in British Columbia, the primary terminal for U.S. thermal coal […]
Seth Feaster
Trouble at biggest mine in Powder River Basin speaks volumes about state of industry
Peabody Energy, the world’s largest privately owned coal company and the biggest U.S. coal producer, has finally acknowledged a long-apparent reality: Thermal coal mines in the U.S. have little value anymore and not much of a future. The company said as much earlier this month when it slashed the book value of the largest coal […]
Seth Feaster and Clark Williams-Derry
Industry continues to struggle against increasingly competitive market forces
Some energy pundits have spoken in recent times of an impending U.S. coal renaissance. The Heritage Foundation trumpeted coal’s “Colossal Comeback” in 2017, and a Wall Street Journal reporter in 2018 wrote of its global “resilience.” Industry executives three years ago credited the newly-elected Trump administration with paving the way for fresh investments in new […]
IEEFA
S&P Global Market Intelligence ($): The market capitalization of five of the top 10 U.S. coal companies was sliced by more than half from early January to mid-November 2019. Those top 10 producers’ market value totaled about $4.42 billion as of Nov. 22, a 59.4% drop from $10.88 billion as of Jan. 8, according to […]
Karl Cates, Seth Feaster and Clark Williams-Derry
Coal company left owners little choice but to distance tribal government from risky financial bet
News this week that Navajo Nation leaders have terminated agreements to indemnify the Navajo Transitional Energy Company (NTEC)’s acquisition of coal mines in Montana and Wyoming may prove costly to the company, which is trying to finalize its controversial purchase of three bankrupt Cloud Peak Energy mines. NTEC bought the assets in an ill-advised and […]
IEEFA
The Salt Lake Tribune: The Navajo Nation will not financially back bonds a tribal energy company needs for a trio of newly acquired coal mines off the reservation, the tribal president said Tuesday, explaining that it’s too risky and his administration wants the company to move away from coal. The Navajo Transitional Energy Co. recently […]
Press Release, Karl Cates, Clark Williams-Derry and Seth Feaster
Regulatory roadblock in Montana - business case for NTEC acquisition of Cloud Peak mines continues to unravel
Oct. 25, 2019 (IEEFA U.S.) — Regulatory opposition to the acquisition this week by Navajo Transitional Energy Company (NTEC) of three coal mines in the Powder River Basin deals the small company’s expansion strategy an immediate setback, concludes a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA). Just as NTEC […]
IEEFA
Casper Star Tribune: A Powder River Basin coal mine suddenly ceased operations and sent about 300 workers — a majority from Wyoming — home indefinitely Thursday, over permit disagreements between Montana’s Department of Environmental Quality and the mine’s new owner. Out-of-state coal firm Navajo Transitional Energy Company (NTEC) recently assumed ownership of the Spring Creek […]
Karl Cates and Seth Feaster
Company may yet need backing of a skeptical tribal government
Executives at Navajo Transitional Energy Company (NTEC) are presenting their proposed acquisition of Cloud Peak Energy as a done deal, but it may still need the financial backing of the Navajo Nation to cover hundreds of millions of dollars in bonding liabilities. And NTEC has yet to present a persuasive business case for the acquisition, […]
IEEFA
Bloomberg: Murray Energy Corp., the U.S. coal giant that had pressed the Trump administration for help averting bankruptcy, may be headed toward default. The largest closely held coal miner in America failed to make multiple payments to lenders this week, the company said in a statement on Wednesday. Creditors have agreed not to take legal […]
IEEFA report: Navajo company’s foray into Powder River Basin coal is off to a troubled start
Regulatory roadblock in Montana - business case for NTEC acquisition of Cloud Peak mines continues to unravelOct. 25, 2019 (IEEFA U.S.) — Regulatory opposition to the acquisition this week by Navajo Transitional Energy Company (NTEC) of three coal mines in the Powder River Basin deals the small company’s expansion strategy an immediate setback, concludes a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA). Just as NTEC […]