Peabody Energy Corporation (BTU), CONSOL Energy Inc. (CNX): Will These Coal Companies Make a Comeback?

In the second quarter of 2013, CONSOL Energy Inc. (NYSE:CNX)’s coal production (tons) also rose by 9%. Nonetheless, the company’s tumble in the commodity sale price by more than 21% led to the sharp drop in revenue. Looking forward, CONSOL’s coal exports won’t account for a large portion of its total coal production that will range between 10% and 20%. The company still estimates its coal production will increase by 10% in 2013 (year-over-year). Based on its production levels in the first half of 2013, the company may not reach its goal.

Takeaway

The coal industry hasn’t done well in the first half of the year. Based on the latest developments in the power sector, the demand for coal is likely to rise but may remain lower than last year’s levels. This might suggest CONSOL Energy Inc. (NYSE:CNX) and Peabody Energy Corporation (NYSE:BTU) won’t augment their revenue compared to last year, and Alliance Resource Partners, L.P. (NASDAQ:ARLP)’ revenue will slightly rise.

Lior Cohen has no position in any stocks mentioned. The Motley Fool recommends Alliance Resource Partners, L.P..

The article Will These Coal Companies Make a Comeback? originally appeared on Fool.com.

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