US coal miners will continue to rein in output and lay off workers to withstand the weak coal price environment over the next few quarters. The Powder River Basin and Illinois Basin will remain relatively resilient than the Appalachian Basin, due to lower operating costs.
Peabody Energy's bankruptcy highlights the extent of the industry's rout, giving way to further consolidation. The announcement comes on the back of industry-wide challenges, namely high debt levels, low energy prices and increasingly stringent environmental regulations.
We maintain that Consol Energy's recent shift towards natural gas and away from coal remains aligned with our long-held view towards US power sector dynamics. We forecast that demand for thermal coal will stagnate through 2023 as utilities continue their shift towards gas-fired electricity production. Though the firm's Q413 profit jump is largely tied to its recent sale of five coal mines, we...
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Thanks, BMI Research