Posts for Ticker ‘CNX’

T. Boone Pickens & BP Updated Stock Holdings (ANR, APC, COG, CHK, CNX, DVN, FLR, FWLT, HAL, MEE, OXY, STR, SLB, SU, RIG, WFT)

Pickens PicThis morning we got to see the new equity holdings of T. Boone Pickens, via his BP Capital Management, L.P.,  as of March 31, 2009.  Some of the higher stakes look to be in Chesapeake Energy Corporation (NYSE: CHK), Devon Energy Corporation (NYSE: DVN), Suncor Energy Inc. (NYSE: SU), and Transocean Ltd. (NYSE: RIG).  Here is the full list of holdings for Pickens’ BP Capital with the implied value as of the reporting dat of March 31:

Posted on: May 15, 2009 – 11:37 am in Activist Investor, Insider Activity, Mutual Funds, Oil & Gas, , , , , , , , , , , , , , , ,

CONSOL Shutters Coal Mine (CNX)

We have been saying for some time that 2009 would be a tougher year for coal producers than 2008 was.  The struggling economy just doesn’t need more energy. CONSOL Energy Inc. (NYSE: CNX) put some verification into our predictions yesterday, when it announced that it would halt coal production for at least a month at its Buchanan mine in Virginia.

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Posted on: March 3, 2009 – 10:38 am in Commodities,

Patriot Beats Low Expectations (PCX, BTU, ACI, CNX)

coal_imagePatriot Coal Corp. (NYSE:PCX) reported fourth quarter and full year numbers this morning. Patriot’s report follows the trail blazed earlier this year by Peabody Energy Corp. and Arch Coal Inc. (NYSE:ACI) and CONSOL Energy Inc. (NYSE:CNX).

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Posted on: February 10, 2009 – 9:55 am in Commodities, Earnings, , , , , , ,

Cliffs Closes Coal Mine (CLF, PCX, CNX)

Coal_imageAfter the market closed on Friday, Cliffs Natural Resources, Inc. (NYSE:CLF) announced that it was closing its Pinnacle Mine in West Virginia for the month of February. About 360 employees "will be affected." The closure will chop 85,000 tons of production from projected 2009 totals.

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Posted on: February 2, 2009 – 9:40 am in Commodities, Labor & Unions, Metals, , ,

Coal is Hot (ACI, CNX, BTU)

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This morning’s quarterly and annual results from Arch Coal, Inc. (NYSE:ACI) have kept the coal fires burning. Arch reported EPS of $2.45 on net income of $354.3 million for the year. Annual revenues hit $2.98 billion. Analysts had been anticipating $2.42 EPS on $2.97 billion in revenues.

The quarterly results were also stirring. Revenues hit $729.9 million and EPS was $0.44. Analysts expected EPS of $0.39 and revenues of $713.9 million. However, compared with 2007, EPS was off by $0.12/share, and that was disappointing. The stock is down almost 5% in early trading.

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Posted on: January 30, 2009 – 12:52 pm in Alternative Energy, , ,

Top Pre-Market Analyst Upgrades (ARAY, AZN, SAM, BSX, CNX, MLM, TER, TWX)

These are some of the top pre-market analyst upgrades and positive calls we have seen on Wall Street this Friday morning:

  • Accuray (ARAY) Raised to Buy at Piper Jaffray.
  • AstraZeneca (AZN) Raised to Buy at Deutsche Bank.
  • Boston Beer (SAM) Raised to Neutral from Sell at Goldman Sachs.
  • Boston Scientific (BSX) Raised to Outperform at Wachovia.
  • CONSOL Energy (CNX) Raised to Buy at Citigroup.
  • Martin Marietta (MLM) Raised to Neutral at UBS.
  • Teradyne (TER) Raised to Buy at Goldman Sachs.
  • Time Warner (TWX) Started as Buy at Collins Stewart.

Jon C. Ogg
January 30, 2009

Posted on: January 30, 2009 – 7:55 am in Analyst Calls, , , , , , , ,

Less Demand, Less Coal, Less Profit (BTU, ACI, CNX, MEE)

Coal_image Peabody Energy Corporation (NYSE:BTU) yesterday reduced its production estimates for Wyoming’s Powder River Basin and for its Australian coal mining. The company said it has produced "in excess of 200 million tons" of coal in 2008, but expects [CORRECTION] US production in 2009 in the range of 190-195 million tons.

  • When you graph the share prices of four leading coal companies, Peabody, Arch Coal Inc. (NYSE:ACI), CONSOL Energy Inc. (NYSE:CNX), and Massey Energy Company (NYSE:MEE), the lines look like exact copies of one another.

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Posted on: January 8, 2009 – 11:43 am in Commodities, Earnings, , , ,

CO2 Restriction Easing on Coal-fired Power Plants? (BTU, ACI, MEE, CNX, FTEK)

Carbon_emissions_imageLast August, the US Environmental Protection Agency (EPA) ruled that a proposed coal-fired power plant in Utah did not need to file for a clean-air permit because the emissions from the plant were not regulated pollutants under the Clean Air Act. Carbon dioxide, which all of us expel every time we exhale, is not a pollutant under the EPA regulations. Thus, if a power plant is going to emit carbon dioxide, it’s just breathing.

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Posted on: December 22, 2008 – 10:04 am in Alternative Energy, Oil & Gas, Utilities, , , , ,

CONSOL Guidance, A Canary In The Coal Sector (CNX, MEE, FCL, ACI, BTU, JRCC)

Coal_imageCONSOL Energy (NYSE:CNX) announced a dramatic change in its guidance for the third quarter. Production is expected reach just 15 million tons, well below even the low estimate of 16.4 million tons in previous guidance. Operating costs are also expected to rise 8%-10% from second quarter levels of $41.60/ton. Essentially, the company attributed lower production to poor execution and more frequent safety inspections. CONSOL did reaffirm production guidance for the fourth quarter of 17.8-19.8 million tons.

Just over a month ago, we noted the declines in coal stocks, and the situation has not improved. The biggest loser since then has been Massey (NYSE:MEE), down 40%, followed by Foundation Coal (NYSE:FCL), off 37%. Arch Coal (NYSE:ACI), Peabody (NYSE:BTU), James River (NASDAQ:JRCC), and CONSOL are down 22%-28%.

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Posted on: September 24, 2008 – 9:25 am in Commodities, Earnings Warning, , , , , ,

Coal Stocks Above 2007, But Valuation Risks Remain (ACI, BTU, CNX, FCL, MEE, KOL)

Coal_image_2In the past 52-weeks, the stock price of five large coal companies has risen anywhere from 50% to nearly 250%. But that’s still between 27% and 42% below annual highs that the companies reached in June. Peabody Energy (NYSE:BTU) has fallen 27% from its 52-week high, Arch Coal (NYSE:ACI) and Massey Energy (NYSE:MEE) have both dropped 32%, Foundation Coal (NYSE:FCL) has dropped 34%, and CONSOL Energy has lost 42%. In late June, Massey was up nearly 400% and CONSOL was up more than 200%.  These numbers may be slightly different based upon UBS’s upgrade to coal stocks this morning, but you will see the general idea below.

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Posted on: August 21, 2008 – 10:36 am in Commodities, ETF, Utilities, , , , , ,

Ken Heebner & CGM Stick With Commodities (CNX, BTU, FCX, PBR, HES, SLB, WFT, X, CGMFX)

While many funds and money managers are under watch, Ken Heebner and the investments in his CGM FOCUS FUND (CGMFX) are perhaps more closely watched than any other in today’s current market.  Some may love Warren Buffett and his no non-sense approach, but Ken Heebner actually has a better track record since inception and he is known for blowing out of sectors when he feels he should or can.  In fact, you could almost think of the FOCUS FUND as being run more and more like a hedge fund with very loose guidelines on which stocks he can or can’t pick from.  The fund also noted about 14% of the total assest that were sold short, so he does make bets against sectors as well.  As of June 30, Heebner was still extremely focused on the commodity and global growth stories.

We went through to look for his positions in the Focus Fund that are worth more than $500 Million.  Keep in mind that several other positions were just shy of the mark, so the overall values and holdings are better compared down further on at the full list.  Here were his top holdings in the CGM FOCUS FUND:  CONSOL Energy Inc. (NYSE: CNX), Peabody Energy Corp. (NYSE: BTU), Freeport-McMoRan (NYSE: FCX), Petroleo Brasileiro S.A. (NYSE: PBR), Hess Corporation (NYSE: HES), Schlumberger Limited (NYSE: SLB), Weatherford International (NYSE: WFT), and United States Steel Corp. (NYSE: X).

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Posted on: August 15, 2008 – 10:19 am in Financial Stocks, Mutual Funds, , , , , , , , ,

Top Pre-Market Analyst Upgrades (AKAM, AIV, AMGN, CNX, KND, MCO, NEU, PH, SE)

These are some of the key analyst upgrades and positive calls we have seen early this Monday morning with over 2 hours to open:

  • Akamai Tech (AKAM) Raised to Buy at Jefferies.
  • Amgen (AMGN) Started as Buy at Banc of America.
  • Apartment Investment & Management (AIV) Raised to Outperform at KBW.
  • CONSOL Energy Inc. (CNX) Raised to Outperform at Credit Suisse.
  • Kindred Healthcare (KND) Raised to Outperform at Wachovia.
  • Moody’s (MCO) Raised to Overweight at Lehman.
  • NewMarket (NEU) Raised to Outperform at Oppenhemer.
  • Parker Hannifen (PH) Raised to Buy at Goldman Sachs.
  • Spectra Energy (SE) Raised to Outperform at Wachovia.

Jon C. Ogg
August 4, 2008

Posted on: August 4, 2008 – 6:30 am in Analyst Calls, , , , , , , , ,

Coal Stocks Key Off Arch Report (ACI, FCL, BTU, CNX)

This morning we saw Arch Coal (NYSE:ACI) report a tripling of earnings for the second quarter, $113 million compared with $37.6 million for the same period a year ago. The company reported EPS of $0.78, also up three-fold from $0.26 EPS last year. The stock was up more than 3% in pre-open trading and is up 9% mid-day. Arch’s report is also boosting Foundation Coal (NYSE:FCL) by about 8% and Peabody (NYSE:BTU) by more than 2.5%. Last week, Foundation posted a loss of $4.4 million for the second quarter, and Peabody posted a 143% gain in earnings. CONSOL Energy inc. (NYSE:CNX), which is scheduled to report next week, is up almost 5% in early trading.

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Posted on: July 25, 2008 – 12:04 pm in Commodities, Earnings, , , ,

Oil, Gas, and Offshore Drilling Earnings Reports Mixed (COP, CNX, DO, OXY)

CONSOL Energy (NYSE:CNX) today reported first quarter earnings of $75.1 million and EPS of $0.41. This is down from first quarter 2007 earnings of $113.3 million and EPS of $0.61. Revenue reached $1.03 billion for the quarter, up from $915.2 million a year ago. Analyst estimates averaged $0.50/share on revenue of $985.9 million. CNX has a very high P/E of 56.24, probably reflecting confidence in the company’s plans for new gas drilling. CNX also announced yesterday that it has completed initial studies for a new type of coal gasification plant in conjunction with Synthesis Energy Systems (NASDAQ:SYMX). The process uses waste coal, of which CONSOL has plenty, as feedstock. Turning garbage into cash always has a certain appeal.

Diamond Offshore (NYSE:DO) reported first quarter earnings of $290.6 million and EPS of $2.09. For the same period last year, DO reported net income of $224.1 and EPS of $1.64. Revenue grew year-over-year from $608.2 million to $786.1 million. Average analyst estimates were $2.12/share on revenue of $792.2 million. DO is contract driller specializing in deepwater offshore projects. More than half the company’s revenue and income come from its intermediate semi-submersibles. Those rigs are still in high demand. The day rate for a semi in the first quarter of 2007 was $150,000. For this quarter, the day rate has jumped to $249,000, and utilization has remained around 85%. DO also today declared a special cash dividend of $1.25/share and a regular quarterly dividend of $0.125/share to be paid on June 2 to shareholders of record on May 2.

Occidental Petroleum (NYSE:OXY) reported  first quarter earnings of $1.85 billion and EPS of $2.23, up from $1.21 billion and $1.43/share for the same period last year. Revenue for the period increased from $4.015 billion a year ago to $6.02 billion this year. Analysts estimated $1.97/share on revenue of $6.28 billion. The profit increase was almost entirely due to record prices for oil and natural gas. The company’s Dolphin project in Qatar has also come on line since the first quarter of 2007. Dolphin contributed 200 million cubic feet (about 36 million BOE) of natural gas to the company’s total production, which increased from 560 million BOE to 607 million BOE. Production from existing wells increased by 11 million BOE, just less than 2%.

ConocoPhillips NYSE: COP) reported  first quarter earnings of $4.139 billion and EPS of $2.62, up from $3.546 billion and $2.12 for the same period a year ago. Revenue increased to $54.9 billion from $41.3 billion a year ago. Analysts estimated $2.42/share and revenue of $198.6 billion. Higher prices for the company’s oil and gas contributed $558 million to the earnings increase. Refining and marketing income fell by more than 50%, from $1.136 billion in 2007 to $520 billion this year. The company blames lower refining margins and unplanned downtime at the refineries for the decrease. Worldwide crude oil refining utilization for the quarter came in at 89%, down from 94% a year ago and 95% in the fourth quarter of 2007.

A quick look at the Forward P/E for each company is interesting. CONSOL’s is 28.59; Diamond’s is 13.07; Occidental’s is 11.3; and ConocoPhillips’ is 7.87. Out of the sector as a whole, CONSOL is much higher and COP is much lower.

Paul Ausick
April 24, 2008

Posted on: April 24, 2008 – 9:33 am in Earnings, Oil & Gas, , , ,

Goldman Sachs Shovels Coal (ACI, CNX, KOL)

Goldman Sachs is panning the coal sector again this morning.  It sees downside to coal stocks after a run since the start of 2008 as coal production will come online faster than many bulls believe.  The firm also thinks that the incentive of profits at current spot coal prices will win over the barriers to entry.  It particularly wants to sell Arch Coal (NYSE: ACI)and it noted Consolidated Energy (NYSE: CNX) as well.

Back on February 15, Goldman Sachs downgraded the sector based on valuations, and you can see the individual calls on ACI, FCL, ICO, BTU, MEE, and CNX.

As a reminder, there is also the Market Vectors Coal ETF (NYSE: KOL) that just launched in mid-January.

Jon C. Ogg
March 12, 2008

Posted on: March 12, 2008 – 7:07 am in Uncategorized, , ,

Goldman Sachs Pans Coal (ACI, FCL, ICO, BTU, MEE, CNX)

Goldman Sachs has downgraded its coverage in Coal Stocks this morning.   Goldman Sachs is basing this partly on the 30% gains seen, and valuations are stretched.

There were several downgraded from a Neutral rating down to SELL: Arch Coal (NYSE: ACI), Foundation Coal (NYSE: FCL), International Coal Group (NYSE: ICO), and Massey Energy (NYSE: MEE).  Two others escaped with a little more dignity, but these were still downgraded to Neutral ratings from Buy: Peabody Energy (NYSE: BTU) and Consolidated Energy (NYSE: CNX).

Jon C. Ogg
February 15, 2008

Posted on: February 15, 2008 – 7:45 am in Analyst Calls, Oil & Gas, , , , , , ,

ETF Launch: Coal, Via Van Eck (KOL, CNX, BTU, ACI, JOYG, BUCY, TA)

This morning we have another ETF being launched that is quite sector specific.  Van Eck Associated has listed the Market Vectors Coal ETF (NYSE: KOL).  While we have noted some ETF’s being too focused for their own good, this will allow investors to be long or short coal producers without having to guess on which individual stocks will or won’t win in a volatile sector.  The ETF is unique and quite specific to global coal company stocks.

The Coal ETF seeks to replicate the total return performance of the Stowe Coal Index. The Index provides targeted exposure to 60 companies worldwide that are engaged in the coal industry.  Estimated returns will track the sector after fees and expenses and of course is subject to the risks of investing in this sector.  The gross expense ratio is listed as 1.09% and the net expense ratio is listed as 0.65%.

If you wish to the full list of components you can see it on the Fact Sheet at Van Eck’s website.  Of the ETF’s top 10 holding, 6 of the 10 are listed in the US (with ticker and weighting percentage):

  • Consol Energy (CNX) 8.06%
  • Peabody Energy (BTU) 7.95%
  • Arch Coal (ACI) 4.69%
  • Joy Global (JOYG) 4.62%
  • Bucyrus Int’l (BUCY) 4.41%
  • Transalta (TA) 4.35%

When you include the four of the top 10 not listed above (as foreign holdings) the top 10 stocks out the approximate 60 names listed in the index account for a weighting of roughly 62.4% of the entire ETF.  This will change through time due to share price changes, rebalancings, IPO’s, and a myriad of other factors, but this was the weighting listed on the site.  The commencing price of this ETF was at $40.00.

Jon C. Ogg
January 14, 2008

Posted on: January 14, 2008 – 10:15 am in ETF, , , , , , ,

Cramer Thinks Lumps of Coal Make a Good Gift (ACI, CNX, BTU)

Stock Tickers: ACI, CNX, BTU

Tonight on CNBC’s Mad Money, Jim Cramer said that recent pushes out of Democrats are now backing new coal initiatives for coal and for converting coal to fuel.  Since we are coal rich and it is accessible easily in the US, he’s behind it and the Goldman Sachs downgrade this morning only helped this value for new investors.  His two coal producers in the sector are Arch Coal (ACI-NYSE) and CONSOL Energy (CNX-NYSE).  Archstone is riskier because their coal is somewhat uncommitted in 2008 and 2009. Cramer did say that CONSOL could even try to covert to a Master Limited partnership.

But Cramer’s favorite coal stock is Peabody Energy (BTU-NYSE).  He likes where it is placed and he thinks coal will rise to catch up to oil as far as gains.  Peabody can sell to China and India and its down over $9.00 from its highs.  The company is also going to spin off its Appalachian assets to focus on growth, and that will take the stock higher when it occurs.  He thinks it has 41 years of production in reserves.

Jon C. Ogg
June 18, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: June 18, 2007 – 5:20 pm in Cramer, , ,