January 11, 2019 Read More →

U.S. coal companies continue to lose market value

S&P Global Market Intelligence ($):

The 12 largest publicly traded U.S. coal producers lost 16.6% of their total market value since September 2018, with just one seeing an increase during the period. The companies’ total market capitalization was $12.68 billion on Sept. 27, 2018, and $10.58 billion as of Jan. 8, 2019, according to data compiled by S&P Global Market Intelligence. Natural Resource Partners LP, the only gainer, grew 31.1% during the period, from $364.3 million to $477.6 million.

The companies’ value ranking remained consistent from a few months ago, with Peabody Energy Corp., Alliance Resource Partners LP and Arch Coal Inc. taking the top three top spots. Market capitalization in the sector is still down significantly from 2011, when Peabody led the publicly traded producers with $19.68 billion in value.

Westmoreland Coal Co., which filed for Chapter 11 bankruptcy protection in October 2018, experienced the largest decline in market value, falling 88% to $300,000. The company is seeking to sell some of its noncore assets and plans to have its lenders act as a stalking horse bidder and take the core assets in exchange for the company’s debt if there are no better offers.

Cloud Peak Energy Inc.’s value dropped by $151.3 million over the period to $29.1 million, an 83.9% decrease. Cloud Peak, one of the largest publicly traded companies to avoid bankruptcy in recent years, was removed from the S&P SmallCap 600 on Jan. 3 and warned by the NYSE on Dec. 26, 2018, that its stock was below the minimum threshold to continue listing on the exchange.

Peabody was valued about $1.07 billion higher than Alliance as of Jan. 8 but saw a much larger drop, falling 24.2% compared to a 6.4% decline for Alliance.

More ($): Market value of top 12 US coal producers down $2.11B since Q3’18

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