Eh, coal companies are reportin' disappointin' financial results and filin' for bankruptcy, Doc. It's an
extremely tough financial environment as the price of coal has fallen 38% from its recent high in October 2018 and is back down to 2016 prices.
(sound of anvil crashing)
On July 1 Blackjewel filed for bankruptcy, which impacted about 600 woikers. While the mines have been bought by another company and minin' resumed in October, this ain’t exactly a picture of a healthy industry. *munches on carrot*
Another indication was Murray Energy, the nation’s largest privately owned coal producer and the thoid largest overall, filin' for bankruptcy at the end of October. This coincided with Peabody’s disappointin' results and cratered the Dow Jones U.S. Coal Index.
(sound of massive TNT explosion)
The U.S. Energy Information Administration or EIA’s data shows that, “between 2010 and the first quarter of 2019, U.S. power companies announced the retirement of more than 546 coal-fired power units, totalin' about 102 gigawatts (GW) of generatin' capacity.” It also appears that in the past few years power generation companies are willin' to retire larger and newer plants than previously. If this trends continues, future retirements should continue to have a large impact on coal miners, even though fewer plants are closing. Gruesome, ain't it?
The Association of American Railroads publishes weekly and year-to-date data on U.S. rail shipments. The latest information as of November 2 had coal shipments take a wrong toin at Albuquerque, down 7.8% for the year and a dramatic decline of 17.5% for the week.
Wow. Ain't coal a stinker?