Coal Stocks Getting Hammered, But Consol Energy Has A Plan

This article was first published by Seeking Alpha on January 15, 2015.

By Sarfaraz A. Khan. Research Asst. Adnan Mushtaq

Despite the weakness in the sector, coal producer Consol Energy (NYSE:CNX) has been holding up well due, in part, to the company's expansion into natural gas exploration and production.

Consol Energy Is the Best Stock in a Dismal Coal Sector

This article was first published by TheStreet on December 26, 2014.

By Sarfaraz A. Khan

NEW YORK (TheStreet) -- This has been a rough year for coal stocks because of weak coal prices. The resolve by the U.S. and China to reduce carbon emissions by clamping down on coal consumption has not helped. But the 150-year-old Consol Energy (CNX) remains an exception.

Winners and Losers From Obama's Anti-Coal Efforts to Cut Carbon Emissions

This article was originally published by TheStreet on June 26, 2014

By Sarfaraz A. Khan. Research Asst. Daniel L.

NEW YORK (TheStreet) -- The Environmental Protection Agency is coming down hard on the coal-based power plants, and this creates some exciting new investment opportunities.

Earlier this month, the EPA released its highly anticipated proposal that aims to cut carbon emissions by 25% by 2020 and 30% by 2030 from 2005 levels. So far, since 2005, the U.S. emissions have already fallen by 15%. The additional decline will be achieved by placing carbon emission limits on coal-based power plants.

As a result, the coal related stocks, including miners and energy producers such as Peabody Energy (BTU_), Alliance Resource Partners (ARLP_), Yanzhou Coal Mining (YZC_),Walter Energy (WLT_) and Arch Coal (ACI_), could be in for a challenging future. This can further aggravate the performance of Market Vectors Coal ETF (KOL). The coal sector fund is down 4% for the year to date, currently at $18.60.

On the other hand, America's Natural Gas Alliance, or ANGA, has painted a rosy outlook for the natural gas industry as the government tries to reduce carbon emissions.

Follow CONSOL Energy's Transformation

This article was originally published by TheStreet

NEW YORK (TheStreet) -- CONSOL Energy (CNX_) is one of the oldest and largest players in the American coal industry, operating since the days of President Lincoln. Although the company has been the largest producer of coal from underground mines in the United States, it has been working to reduce its exposure to coal in favor of natural gas. 
It has recently received the anti-trust clearance related to the sale of its coal mines in West Virginia while at the same time identifying thousands of natural gas locations at Marcellus Shale and will drill 120 wells this year.

Following a drop in income in 2012, and persistent weakness in market conditions, investors expected the current year to be a tough one. It was. According to its recent quarterly results, in the first nine months of 2013, CONSOL Energy swung from an income of $239 million in 2012 to a loss of $78 million in 2013. 
However, CONSOL Energy is a company in transition using the cash flows from its struggling coal division to expand its natural gas and NGL operations, where it sees its long-term future. Despite current woes, in the long run the company could yield significant returns for the shareholders due to the considerable increase in its gas output on the back of divestitures, drop in coal capital expenditure and strong liquidity.

read full article at TheStreet