| How Arch Coal’s Rise in Bituminous Thermal Coal Volumes Hurt Prices in 3Q15 | |
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Arch Coal after 3Q15: Ending Its Battle for Survival? (Continued from Prior Part) Arch Coal’s bituminous thermal segment in 3Q15
Arch Coal’s (ACI) bituminous thermal coal segment sold 2.3 million tons in 3Q15 compared to 2.2 million tons in 3Q14 and 1.9 million tons in 2Q15. The company’s bituminous thermal segment includes West Elk mine in Colorado and Viper mine in the Illinois Basin. Shipments saw an increase due to higher production at the West Elk mine and warmer weather across the US.
Pricing, natural gas, and the Illinois Basin
The price per ton for Arch Coal’s bituminous thermal coal in 3Q15 came in at $30.20, which was down from $31.81 in 3Q14 and $30.37 in 2Q15 despite higher shipments. This lower pricing was according to terms of contracts with customers.
Meanwhile, weak natural gas prices put tremendous pressure on thermal coal spot prices in 3Q15, and this also contributed to the segment’s decline in price levels. Illinois Basin benchmark coal, by comparison, was trading at a multiyear low of $32.75 in late October 2015 due to ultra-low natural gas prices. Peabody Energy (BTU) and Alliance Resource Partners (ARLP) also operate in Illinois Basin.
According to the US Energy Information Administration, natural gas surpassed coal (KOL) in market share in electricity generation in July and in August—the first two months of 3Q15. You can stay updated about energy prices by following our coverage of energy and power.
Western bituminous segment revenues
Arch Coal’s western bituminous segment reported revenues of $69.4 million in 3Q15, which was down from $70.0 million in 3Q14 but up from the $57.7 million it saw in 2Q15.
In the next part of this series, we’ll look more deeply into Arch Coal’s bituminous thermal coal costs in the 3Q15.
Continue to Next Part Browse this series on Market Realist:
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Arch Coal Inc
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PRODUCTEUR |
CODE : ACI |
ISIN : US0393801008 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Arch Coal est une société de production minière de charbon basée aux Etats-Unis D'Amerique. Arch Coal détient divers projets d'exploration en USA. Ses principaux projets en production sont WEST ELK, BLACK THUNDER et JACOB'S RANCH en USA et son principal projet en développement est SPRUCE N° 1 en USA. Arch Coal est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 366 000 US$ (317 981 €). La valeur de son action a atteint son plus haut niveau récent le 27 juin 2003 à 99,96 US$, et son plus bas niveau récent le 04 octobre 2018 à 0,01 US$. Arch Coal possède 36 600 000 actions en circulation. |