Alliance Resource Partners, L.P.
The United States holds the largest coal reserves in the world. Generating electricity using coal, while environmentally destructive, is economically more viable than most other methods of power production. The electricity that coal makes possible is incredibly important for America. Given that over 90% of the coal our country consumes comes from domestic sources, investors ought to give some consideration to buying an American coal company.
Peabody Energy more »
The owners of aging nuclear power plants have been opting to close them instead of paying for updates to keep them going. With new environmental laws regarding power plant emissions at least five years away, more nuclear plant closures could be on the way. That should help coal maintain or even grow its share of the electric generation market.
Cheap natural gas prices led electric utilities to cut back on more »
Is the coal industry slowly making a comeback? Several coal companies such as Peabody Energy (NYSE: BTU) and CONSOL Energy (NYSE: CNX) have rallied in recent weeks: Shares of Peabody increased by 10% during the past month; CONSOL’s stock rose by 16.8%. Despite this recent rise in the stock market, these companies are still down for the year. Will these companies continue to heat up?
Will revenue rise more »
It’s no secret that the coal industry in the United States is under fire. A multitude of industry headwinds, including depressed natural gas prices and ongoing regulatory threats, have brought the entire sector to its knees.
Although coal use increased in the first quarter at utilities, coal sales fell because energy companies dipped into their stockpiles to meet their fuel needs. Stockpiles are now below their five year average, according to the U.S. Energy Information Administration (EIA). Although 2013 is a transition year, this dynamic should set up rising demand for companies like Peabody Energy (NYSE: BTU), Arch Coal (NYSE: ACI), and Alliance Resource Partners more »
If there’s a better value in a less well-liked industry I haven’t found it yet. I’ve written multiple times in the past about Alliance Resource Partners (NASDAQ: ARLP), and I’m back again to pound the table for this amazing company in an industry that seemingly no one wants to invest in.
When it comes right down to it, simple economic factors drive the prices more »
There are four ways to reduce emissions from a coal-fired electric plant, according to the U.S. Energy Information Administration (EIA). The options are a mixed bag for coal producers, but clearly show that there is a place for coal in this country over the long term.
According to the EIA, the ways to reduce emissions from a coal fired electric plant are to close it, use it more »
A near-term, sustained rebound in coal stocks may be little more than wishful thinking. It's essential that investors understand key factors underlying the coal market and be cautious when reading bullish articles.
Yes, the coal stocks have been slaughtered from their 52-week highs. However, consider this in the framework of other natural resource sectors. Risk-off strategies are impacting not just coal, but iron ore, copper, gold, silver, uranium and more »
“The U.S. Treasuries market could now be described as a Ponzi market” according to Hyman Minsky of asset manager Guggenheim Partners. Now is a good time to look at stocks with key resource assets.
Ponzi schemes are named after Charles Ponzi and all follow a similar path. Money from new investors is used to help pay off old investors. While the schemes can work for a little more »
President Obama has announced new efforts to combat climate change, many of which will be directed at limiting the use of coal. That's a headwind for the coal industry, but new rules won't be as detrimental as many think.
A Useful Point
For example, the U.S. coal fired fleet is running at about 55% of capacity, according to coal miner Peabody Energy (NYSE: BTU). The company is more »
Don't chase dividend stocks to avoid bonds; buy them because you believe in the underlying businesses. Companies like Royal Dutch Shell (NYSE: RDS-B), Alliance Resource Partners (NASDAQ: ARLP), and Omega Healthcare Investors (NYSE: OHI) are good examples of what to buy.
A Big Mistake
Natural gas isn't as cheap as it was a year ago and that's leading to big changes in the energy market. That will be a good thing for Ultra Petroleum (NYSE: UPL), Royal Dutch Shell (NYSE: RDS-B), and Alliance Natural Resource Partners (NASDAQ: ARLP).
Drilling for natural gas costs money. How much varies by company, but Ultra Petroleum pegs the average cost at about $7, with more »
Coal may be unloved in the United States, but the rest of the world seems to like it well enough. BP's annual World Energy Review states that “Coal remained the fastest-growing fossil fuel.” Despite the negative press, investors should be looking at the space.
A Record Year
BP's review notes that “Coal reached the highest share of global primary energy consumption (29.9%) since 1970.” So, it is more »
All three of the companies I am about to discuss I either currently have a position in, or did in the recent past. When I made my first few investments, I made the mistake of investing too small of an amount, only about $100 in each, so transaction costs killed me.
That being said I am still satisfied with the results. And while I sold one because I think it more »
Electric utilities are the primary consumers of thermal coal produced at U.S. mines. Coal's battle with natural gas is about costs, not the environment. That's why it still matters where you get your coal.
Two dollar gas
Electric utilities are highly regulated and keeping costs down is a vital part of remaining profitable. That's why utilities started to switch to natural gas fired plants when gas more »
Master Limited Partnership Alliance Resource Partners LP (NASDAQ: ARLP) is down 12% from its recent high unit price of $78.5. At today's price of about $68, the units are yielding 6.6%, which is superb for a coal producer. Superb that is, if the distribution is not at risk of being cut. Not only is Alliance's distribution safe, it has risen at a compound annual growth rate more »
This year's market rally, with the S&P up about 15% during 2013, has rendered it more difficult to find above-average dividend yield investments. Most companies have not maintained elevated payout ratios (dividends as a proportion of net income), as share prices climbed. That said, there are a few industries where total-return remains an appealing factor, and healthy income can be received. The current 10-year Treasury bond yield, currently more »
Electric utilities care about price more than fuel source, so natural gas and coal use will continue to seesaw back and forth for years. You can protect yourself by buying companies with exposure to both commodities like CONSOL Energy (NYSE: CNX), Natural Resource Partners (NYSE: NRP), and PVR (NYSE: PVR).
The Future Is Variable
Natural Resource Partners, LP (NYSE: NRP) a Master Limited Partnership, or "MLP," continues to make strong progress diversifying from the leasing of its owned coal reserves. Natural Resource Partners recently presented at an industry conference. Please see the latest corporate slideshow here.
In 2005, 54% of total revenues came from steam coal royalties in central Appalachia. Pro forma for the company's February acquisition of a 49% interest in OCI more »
Kinder Morgan Energy Partners (NYSE: KMP) is making a move into owning resource properties with the intent of leasing them to third parties to mine. The main focus appears to be coal. If Kinder sees value in coal, it might be time for investors to buy in, too.
Kinder Morgan is a giant in the mid-stream oil and gas business. It owns the terminals and pipelines that get such more »
- Page 1 of 5