Powder River Basin 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 Coal Outlook 2020: Market trends are pushing U.S. industry to a reckoning

IEEFA Coal Outlook 2020: Market trends are pushing U.S. industry to a reckoning

Competition, financing, consolidation, muni/co-op trajectories, export markets

March 30, 2020 (IEEFA U.S.) — A report published today by the Institute for Energy Economics and Financial Analysis (IEEFA) sees the U.S. coal industry continuing to decline through 2020 and beyond. The report, U.S. Coal Outlook 2020: Market Trends Are Pushing Industry Ever Closer to a Reckoning, details issues that will likely persist in driving […]

IEEFA report: Navajo company’s foray into Powder River Basin coal is off to a troubled start

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 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 U.S.: Bill to incentivize federal reinvestment in tribal regions of Arizona suggests a model for coalfield communities nationally

IEEFA U.S.: Bill to incentivize federal reinvestment in tribal regions of Arizona suggests a model for coalfield communities nationally

Bipartisan support is possible; Congressional appropriations will be key

Sept. 29, 2019 (IEEFA) — A bill to encourage federal reinvestment in communities hurt by the closure of the Navajo Generating Station (NGS)-Kayenta Mine complex in Arizona suggests a model that could work for coalfield communities nationally, concludes a report published today by the Institute for Energy Economics and Financial Analysis. The report—Bill to Spark […]

and September 19, 2019 Read More →
IEEFA update: Business case weakens for Navajo Transitional Energy Company (NTEC) bid to purchase Montana-Wyoming coal mines

IEEFA update: Business case weakens for Navajo Transitional Energy Company (NTEC) bid to purchase Montana-Wyoming coal mines

Macroeconomic, regional and local risks in deal for bankrupt Cloud Peak assets

September 5, 2019 (IEEFA U.S.) — Production is down this year and the customer base is shrinking at three mines that Navajo Transitional Energy Company (NTEC) proposes buying in a bankruptcy-court bid for Cloud Peak Energy, according to a research brief published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The brief—NTEC […]

IEEFA U.S.: 13 questions on Navajo Transitional Energy Company’s proposed acquisition of bankrupt Cloud Peak’s Montana and Wyoming mines

IEEFA U.S.: 13 questions on Navajo Transitional Energy Company’s proposed acquisition of bankrupt Cloud Peak’s Montana and Wyoming mines

Little transparency and no tribal-government participation

Aug. 30, 2019 (IEEFA) — A research brief published today by the Institute for Energy Economics and Financial Analysis raises questions about whether a Navajo Transitional Energy Co. (NTEC) bid to buy a bankrupt coal company’s assets is prudent, whether it was put together properly and if it is in line with NTEC’s responsibilities to […]

IEEFA: Proposed Navajo acquisition of bankrupt U.S. coal company is an ill-timed gamble

IEEFA: Proposed Navajo acquisition of bankrupt U.S. coal company is an ill-timed gamble

Plan to buy Cloud Peak’s mines in Montana and Wyoming comes as Powder River Basin producers face more hard times - NTEC could modernize with leadership change

Aug. 22, 2019 (IEEFA) — A plan by the Navajo Transitional Energy Company (NTEC) to acquire Cloud Peak Energy’s coal mines in Montana and Wyoming is a high-risk gamble and poorly timed, concludes a report published today by the Institute for Energy Economics and Financial Analysis. The report, Proposed Navajo Acquisition of Bankrupt U.S. Coal Company […]

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 Research Brief: Coal in Decline, Blow by Blow

IEEFA Research Brief: Coal in Decline, Blow by Blow

Plant Closings and the Likely Effects on Specific Companies and Mines

We’ve published a research brief today that presents an expansive snapshot of a moving target: the decline in U.S. coal-fired generation nationally. As global energy markets continue to undergo rapid transformation, change has swept the U.S. as well. Our brief—“U.S. Coal Phase-out, Blow by Blow: Plant Closings and the Likely Corresponding Effect on Specific Companies […]

April 21, 2017 Read More →
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 […]

More News and Commentary

Lighthouse Resources bankruptcy likely the end for proposed Washington coal export terminal

Casper Star Tribune: Wyoming’s long-held dream of exporting Powder River Basin coal from a West Coast terminal was recently dashed when the project’s owner filed for bankruptcy and failed to find an interested buyer. Lighthouse Resources Inc. petitioned for Chapter 11 bankruptcy on Dec. 3. The company owns the Decker coal mine in Montana, just […]

January 12, 2021 Read More →

U.S. coal companies White Stallion and Lighthouse Resources file for bankruptcy

S&P Global Market Intelligence ($): Two more U.S. coal mining companies have filed for bankruptcy as producers across the country struggle to sell coal into the troubled thermal coal market. White Stallion Energy LLC and Lighthouse Resources Inc. filed voluntary petitions for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware […]

December 4, 2020 Read More →
IEEFA U.S.: Decline in coal exports adds to Navajo-owned company’s problems

IEEFA U.S.: Decline in coal exports adds to Navajo-owned company’s problems

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 […]

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 […]

IEEFA U.S.: Bankruptcy of Oakland project marks a bellwether moment for U.S. coal export ambitions
and

IEEFA U.S.: Bankruptcy of Oakland project marks a bellwether moment for U.S. coal export ambitions

Long-simmering initiative to send Utah product to Asia is dead

A long-shot proposal to send coal 700 miles overland from Utah to Oakland for transoceanic shipment to Asian markets is dead.  A U.S. bankruptcy judge in Kentucky last week approved a plan by the proposed project’s major creditor, Autumn Wind Lending LLC, to take over a sublease at the Oakland Bulk and Oversized Terminal (OBOT) […]

IEEFA U.S.: Idaho Power IRP should be required reading for Wyoming regulators, politicians

Plan shows economics, not politics, driving the shift from coal to renewables

Idaho Power’s latest revision of its 2019 integrated resource plan (IRP) charts the utility’s direction through 2040 but is likely to have the greatest impact in neighboring Wyoming in the next year or two. The IRP has Idaho Power being coal-free by 2030 and carbon neutral by 2045. This has major implications for Wyoming because […]

November 4, 2020 Read More →

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 →
IEEFA U.S.: As utility company exits Four Corners Power Plant, NTEC seeks to keep it open
and

IEEFA U.S.: As utility company exits Four Corners Power Plant, NTEC seeks to keep it open

Avangrid acquisition of PNM signals regional market shift to renewables; coal company in maneuver to stay in business, puts more Navajo Nation finances at risk

In announcing its merger yesterday with renewable energy giant Avangrid, PNM Resources reaffirmed its commitment to end its use of coal, stating that it would continue with the abandonment of the San Juan Generating Station in 2022, and that it was actively working to sell its 13% stake in the Four Corners Power Plant. The […]

and October 22, 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 →
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IEEFA op-ed: Glenrock’s CO2 capture facility hopes are based on wishful thinking

Glenrock Energy wants to invest in a carbon dioxide (CO2) capture facility at PacifiCorp’s Dave Johnston Unit 4 coal plant in Converse County. The facility would inject CO2 captured from the coal plant into the ground to force more crude oil out, a process known as enhanced oil recovery (EOR). However, Glenrock’s proposal is based […]