Obama Administration's Regulations Accelerating Coal's Slide
10 May 2012 - 10:20PM
Marketwired
President Barack Obama has continued to show strong support of
energy development in the U.S., but recently failed to mention the
coal industry in his State of the Union address or during a recent
tour promoting his policies. According to the National Mining
Association the Obama administration regulations are accelerating
coal's slide. The Paragon Report examines investing opportunities
in the Coal Industry and provides equity research on Peabody Energy
Corporation (NYSE: BTU) and Patriot Coal Corporation (NYSE: PCX).
Access to full reports can be found at:
www.ParagonReport.com/BTU www.ParagonReport.com/PCX
The American Coalition of Clean Coal Electricity is
"exceptionally disappointed in the policies of this administration
with respect to coal," Luke Popovich, a spokesperson for the group,
said in a recent interview. After unsuccessfully attempting to push
legislation to block recent EPA regulations the group's focus will
shift to the presidential campaign. According to the Center for
Responsive Politics, a group that tracks lobbying and campaign
spending, political donations from industry executives and
employees have already exceeded 2008 totals. Republican
presidential candidate Mitch Romney, a strong supporter of the coal
industry, accused Obama of making it "harder to mine for coal,"
during his speech on May 3.
Paragon Report releases regular market updates on the Coal
Industry so investors can stay ahead of the crowd and make the best
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As of December 31, 2011, Peabody Energy owned interests in 30
coal mining operations, including an interest in 29 coal operations
located in the United States and Australia and a 50% interest in
the Middlemount Mine in Australia. The company's first quarter
revenues rose 17 percent to $2.04 billion, driven by a 27 percent
increase in Australian revenues per ton and a 7 percent rise in
U.S. revenues per ton. Sales volumes of 61.7 million tons were
above prior year sales of 61.2 million tons.
Patriot Coal Corporation is a leading producer and marketer of
coal in the eastern United States, with 13 active mining complexes
in Appalachia and the Illinois Basin. Revenues in the 2012 first
quarter were $502.6 million, compared with $577.0 million in the
prior-year quarter. Lower revenues in the 2012 quarter resulted
from fewer tons sold, partially offset by higher revenue per
ton.
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