Coal Investment Risk: Is this Industry Going Out of Business?

Coal related companies around the world are being pushed to the brink of bankruptcy due to the falling prices of commodities. For instance, the world’s third largest publicly traded coal company, Peabody Energy Corporation (Peabody) (Stock Symbol: BTU), has seen its stock price plummet from over $1,000 per share in 2011 to under $14 today. In addition, the largest U.S. coal producer, Alpha Natural Resources (Stock Symbol: ANRZ), filed Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond. Commenters are speculating that unless there are restructurings for Arch Coal (Stock Symbol: ACI) and Peabody they could be the next two coal producers to file for bankruptcy protection.

Other bankruptcy filings this year include Walter Energy (Stock Symbol: WLTGQ), JW Resources, Patriot Coal’s second bankruptcy filing, Xinergy, and James River Coal Co. Berau Capital Resources submitted a Chapter 15 petition on July 10, and Glencore (Stock Symbol: GLEN) has undergone major restructuring amidst the collapse of its stock price.

According to Bloomberg, more than three dozen coal operations have filed bankruptcy in just over three years. Due to a combination of factors the combined market value of U.S. coal company shares shrank to $12 billion in late July 2015 from $78 billion in 2011.

Below is a list of publicly traded coal companies.

 

Company                                             Ticker                          Last Price

Cardero Resource Corp.                     CDU.TO                     0.20

BHP Billiton Ltd.                                BHP.AX                      20.23

Sample Company Corp.                      GG                              12.01

TECO Energy, Inc.                             TE                               26.44

Teck Resources Limited                     TCK                            4.61

CONSOL Energy Inc.                        CNX                            7.40

Alliance Holdings GP, L.P.                AHGP                         24.36

Alliance Resource Partners LP           ARLP                         18.90

New Hope Corp. Ltd.                         NHC.AX                     1.90

Whitehaven Coal Limited                   WHC.AX                    0.93

Peabody Energy Corp.                        BTU                            13.79

Solazyme, Inc.                                    SZYM                         3.11

Cloud Peak Energy Inc.                      CLD                            3.34

Natural Resource Partners LP             NRP                            1.65

Hallador Energy Company                 HNRG                         6.17

Anglo Pacific Group plc                     APF.L                         71.25

Hargreaves Services Plc                     HSP.L                         294.00

Energy Resources of Australia           ERA.AX                    0.36

Westmoreland Coal Co.                      WLB                           6.98

SouthGobi Resources Limited            SGQ.TO                      0.39

Universal Coal plc                              UNV.AX                     0.20

Berkeley Resources Ltd.                     BKY.AX                     0.51

Northern Minerals Limited                 NTU.AX                     0.17

Cockatoo Coal Limited                       COK.AX                     0.00

Eden Energy Ltd                                 EDE.AX                     0.06

Blackham Resources Limited             BLK.AX                     0.23

Arch Coal Inc.                                    ACI                             1.44

Rey Resources Limited                       REY.AX                     0.06

Oracle Coalfields Plc                         ORCP.L                      2.17

Corsa Coal Corp.                                CSO.V                        0.05

Cauldron Energy Limited                   CXU.AX                     0.14

Resource Generation Limited             RES.AX                      0.06

African Energy Resources Limited    AFR.AX                      0.05

Rhino Resource Partners LP              RNO                            0.66

Energia Minerals Limited                   EMX.AX                    0.04

Rum Jungle Resources Limited          RUM.AX                    0.06

WildHorse Energy Ltd.                      WHE.AX                    0.20

Deep Yellow Ltd.                               DYL.AX                     0.01

Encounter Resources Ltd.                   ENR.AX                     0.13

Bisichi Mining plc                              BISI.L                         75.00

Challenger Deep Resources                CDE.V                        0.25

Energy Metals Limited                       EME.AX                     0.08

Bannerman Resources Limited           BMN.AX                    0.04

 

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