Peabody

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: BlackRock’s fossil fuel investments wipe US$90 billion in massive investor value destruction

IEEFA report: BlackRock’s fossil fuel investments wipe US$90 billion in massive investor value destruction

Investors need to ask why

August 1, 2019 (IEEFA Asia Pacific)  ̶  BlackRock, the world’s largest fund manager with US$6.5 trillion of assets under management – bigger in value than the third largest economy in the world – continues to ignore the serious financial risks of putting money into fossil fuel-dependent companies, a new report has found. Produced by the […]

IEEFA U.S.: Peabody quietly lays off over 150 long-time Native American miners ahead of Kayenta coal closure

IEEFA U.S.: Peabody quietly lays off over 150 long-time Native American miners ahead of Kayenta coal closure

Nearly half of workforce let go; No word from corporate headquarters on long-term fate of remaining employees or of company resolve to honor reclamation responsibilities and local jobs promises

Peabody Energy during the first quarter of the year quietly reduced the size of the workforce at Kayenta Mine in northeastern Arizona by 46 percent, from 336 miners to 182. In March, Peabody acknowledged publicly it had recently let go 40 Kayenta mine workers. The company has been silent beyond that announcement. The latest information […]

and June 11, 2019 Read More →
IEEFA U.S.: Imminent Hopi-Navajo budget crisis as coal industry collapses

IEEFA U.S.: Imminent Hopi-Navajo budget crisis as coal industry collapses

Federal action required, potential for bipartisan national coalfield reinvestment legislation: past models include Hurricanes Katrina and Sandy response, bailout of auto industry, mitigation for military base closures

May 30, 2019 (IEEFA) – Closure this year of the Navajo Generating Station (NGS) and Kayenta Mine will gut tribal government budgets in northern Arizona, according to a report published today by the Institute for Energy Economics and Financial Analysis. In response to the planned closures, Navajo Nation will reduce public-service expenditures by 23 percent […]

IEEFA U.S.: Solar tax credit extension through 2024 critical for coalfield communities

IEEFA U.S.: Solar tax credit extension through 2024 critical for coalfield communities

Support needed during energy transition — Navajo Generating Station/Kayenta Mine cited as ‘prime examples’

(IEEFA U.S.) — The federal solar tax credit should be extended by at least four years in coalfield areas, like the ones around the Navajo Generating Station (NGS) and Kayenta Coal Mine in Arizona, according to a briefing  note released today by the Institute for Energy Economics and Financial Analysis (IEEFA). “Scheduled curtailment of 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 update: Navajo coal mine and plant acquisition plan raises liability issues

IEEFA update: Navajo coal mine and plant acquisition plan raises liability issues

Failure to address employee benefits, maintenance, and cleanup costs

March 8, 2019 (IEEFA New Mexico) — The Navajo Transitional Energy Company’s (NTEC) proposed acquisition of the failing coal-fired Navajo Generating Station (NGS) and its feeder Kayenta Mine continue to raise questions about possible consequences should the sale be allowed to move forward. In addition to wide concerns about the financial viability of the project, the […]

IEEFA report: Every two weeks a bank, insurer or lender announces new coal restrictions

IEEFA report: Every two weeks a bank, insurer or lender announces new coal restrictions

Major financial institutions restricting coal funding tops 100

SYDNEY, February 27, 2019 (IEEFA) – Research from the Institute for Energy Economics and Financial Analysis (IEEFA) today reveals over 100 major global financial institutions have introduced policies restricting coal funding. The report, “Over 100 Global Financial Institutions Are Exiting Coal, With More to Come,” finds global capital is fleeing the coal sector at an electrifying […]

and February 26, 2019 Read More →
IEEFA report: Business case for acquiring failing plant and Kayenta mine poses ‘serious financial risk’ to Navajo Nation

IEEFA report: Business case for acquiring failing plant and Kayenta mine poses ‘serious financial risk’ to Navajo Nation

‘Little clarity, no certainty’ seen in NTEC plan; reclamation liabilities loom large

February 22, 2019 (IEEFA Arizona) — The Institute for Energy Economics and Financial Analysis (IEEFA) published a report today concluding that a tribal company’s plan to acquire the failing Navajo Generating Station (NGS) and its companion mine would most likely create a money-losing enterprise.  The report—“NTEC’s Plant/Mine Acquisition Plan Puts Navajo Nation at Serious Financial Risk”—concludes […]

Why Navajo Generating Station Is No Longer Commercially Viable

Why Navajo Generating Station Is No Longer Commercially Viable

The Institute for Energy Economics and Financial Analysis (IEEFA) has done extensive research into the difficult circumstances facing Navajo Generation Station. Key findings: Declining energy market prices and rising production costs have made power produced by the plant more expensive than competing sources. Market trends are not likely to change, leaving the plant’s financial viability […]

August 16, 2017 Read More →

More News and Commentary

Federal regulators put a hold on planned Peabody-Arch PRB joint venture

CNN Business: Federal regulators filed a lawsuit Wednesday seeking to kill an alliance between America’s two largest coal mining companies. The Federal Trade Commission’s (FTC’s) decision, supported by two Republicans appointed by U.S. President Donald Trump, deals a blow to the turnaround efforts of Peabody Energy and Arch Coal from their 2016 bankruptcy filings. It […]

February 27, 2020 Read More →

S&P: Plant retirements expected to push U.S. utility coal demand down almost 20% by 2025

S&P Global Market Intelligence ($): Nearly one in five of the tons of coal delivered to U.S. power generators in the first three quarters of 2019 went to power plants planning to close by 2025 or earlier. With no coal-fired power plants on the drawing board at home and diminished demand overseas, U.S. producers will […]

February 14, 2020 Read More →

Peabody reports 2019 loss, suspends dividend, reduces planned 2020 capital expenditures

S&P Global Market Intelligence ($): Due to current and expected market weakness, coal-producing giant Peabody Energy Corp. executives assured investors on Feb. 5 that the company will take steps to spend its cash prudently. “For 2020, the company is taking a ‘live within our means’ approach given changes in industry conditions and the operating portfolio,” […]

February 6, 2020 Read More →

Powder River Basin coal production fell 14% in fourth quarter compared to year earlier

Casper Star Tribune: Powder River Basin coal production fell nearly 14 percent last quarter compared to the same period the year before — the lowest production totals for the region in over two decades, new data Monday from U.S. Mine Safety and Health Administration revealed. The basin’s 16 mines produced 72.3 million tons of coal […]

February 5, 2020 Read More →
and

IEEFA U.S.: Navajo-owned energy company is in trouble

NTEC, struggling to make a go of Montana-Wyoming coal venture, is on the ropes back home, too

Navajo Transitional Energy Company (NTEC) appeared to have bought into a house of cards last year when it acquired three struggling coal mines in the Powder River Basin (PRB) of Montana and Wyoming. Now comes word that the very foundation upon which the company was created seven years ago, and which was used as a […]

and January 31, 2020 Read More →

New York state pension fund considering divestment from 27 coal companies

Reuters: New York state’s top pension fund official said it was reviewing whether to divest from 27 coal companies and could make decisions on $98 million in holdings within two months. The reviews by the third-largest U.S. state pension system, with $211 billion under management, could set the tone for other retirement plans facing public […]

January 29, 2020 Read More →

S&P: Fourth quarter results for U.S. coal sector likely to be dismal

S&P Global Market Intelligence ($): Fourth-quarter 2019 earnings reports are likely to be rough on U.S. coal producers yet again when miners begin reporting results over the next few weeks. Every major U.S. coal company is expected to report earnings per share for the period that is either worse than the prior quarter or year-ago […]

January 27, 2020 Read More →

Moody’s reaffirms its negative outlook on U.S. coal sector

S&P Global Market Intelligence ($): Declining earnings and intensifying pressure from investors screening their portfolios for environmental, social and governance factors are weighing on the coal sector’s negative outlook, Moody’s Investors Service wrote Jan. 22. U.S. coal producers will see a significant deterioration in earnings and cash flow generation as coal export volumes continue to […]

January 23, 2020 Read More →

Brutal year for U.S. coal companies shows that markets trump rhetoric

St. Louis Post-Dispatch: With a mining-friendly administration in power in Washington, coal was supposed to be making a comeback by now. Instead, the industry just finished a brutal year. The Energy Information Administration estimates that U.S. coal production fell 9% last year and will decline by 14% in 2020. The downhill slide is reflected in […]

January 17, 2020 Read More →
IEEFA U.S.: The coal rebound that didn’t happen
and

IEEFA U.S.: The coal rebound that didn’t happen

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 […]