In this article, we will list the 5 Best Coal Stocks to Invest In According to Hedge Funds. Please visit 10 Best Coal Stocks to Invest In According to Hedge Funds if you’d like to see an extended list and the methodology behind it.
5. BHP Group Limited (NYSE:BHP)
Number of Hedge Fund Holders: 31
Hedge funds held $1.8 billion worth of positions in the stock as of Q1 2026, placing BHP Group Limited (NYSE:BHP) among the best coal stocks to invest in.
BHP Group Limited (NYSE:BHP) added a concrete logistics milestone to its Jansen Potash Mine development on June 4, 2026, signing transportation agreements with both of Canada’s national rail carriers, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC).
Under the agreements, CN and CPKC will each operate unit trains between the Jansen mine in Saskatchewan and Westshore Terminals in Vancouver, from where potash will be exported to global markets. The dual-rail setup, enabled by the Jansen Access Spur connecting to both mainlines, is designed to strengthen supply chain reliability and give BHP flexibility in serving international customers.
The initial contract term runs approximately four years, covering Jansen Stage 1 production, with future arrangements intended to align with the next phase of the project.
Karina Gistelinck, BHP’s Asset President for Potash, said the agreements position BHP Group Limited (NYSE:BHP) to deliver Saskatchewan potash to global customers as Jansen approaches first production. Both CN and CPKC framed the deals as the start of longer-term relationships, with CPKC noting its existing position as a leading potash shipper in North America.
Meanwhile, a separate development on June 3, 2026, showed BHP Group Limited (NYSE:BHP) advancing on a different supply chain front.
BHP Group Limited (NYSE:BHP) partnered with the Global Center for Maritime Decarbonization on a pilot project that blended biofuel from used cooking oil and waste animal fat to refuel a BHP-chartered bulk carrier transporting iron ore from Western Australia to China. The blend, bunkered in Singapore in early May, consisted of equal parts tallow-derived biodiesel and used cooking oil.
BHP Group Limited (NYSE:BHP) and GCMD said that running on the blend can cut well-to-wake greenhouse gas emissions by approximately 79% per voyage compared to conventional marine fuel.
BHP Group Limited (NYSE:BHP) is a basic materials company that produces essential commodities the world needs, including iron ore, copper, steelmaking coal, and soon potash. It is also the world’s largest copper producer.
4. Hallador Energy Company (NASDAQ:HNRG)
Number of Hedge Fund Holders: 31
With $118 million in hedge fund investment in the stock as of Q1 2026, Hallador Energy Company (NASDAQ:HNRG) is among the best coal stocks to invest in.
In addition to being one of the best coal stocks, Hallador Energy Company (NASDAQ:HNRG) made its most decisive move yet toward becoming a natural gas power generator on June 1, 2026. The company announced the acquisition of approximately 460 MW of “never-fired” Siemens gas turbines, generators, a steam turbine, and ancillary equipment from Energy World Corporation for a total purchase price of $350 million, or roughly $760 per kilowatt.
The equipment will be delivered to Siemens USA and then to Hallador Energy Company (NASDAQ:HNRG)’s Merom site, with transportation, refurbishment, and logistics adding approximately $100 million in incremental costs. The all-in delivered price of $450 million represents more than half the estimated total project cost for Hallador’s proposed Merom simple-cycle natural gas-fired combustion turbine project, which is currently advancing through MISO’s ERAS interconnection process.
Chairman and CEO Brent Bilsland emphasized that without equipment, there is no project. Therefore, he said, securing turbines in a market with significant supply constraints and extended lead times for new equipment removes a critical development risk. If the project advances as anticipated, Bilsland said the facility could begin generating revenue and cash flow between late 2028 and mid-2029.
The project is advancing through a four-step framework: securing equipment, initiating the MISO ERAS interconnection study, marketing output under long-term power purchase agreements (PPAs), and reaching a final investment decision upon completion of the ERAS study in September 2026.
Importantly, Hallador Energy Company (NASDAQ:HNRG) retains the option to advance the full project, sell the project with the equipment, or sell the equipment standalone.
Hallador Energy Company (NASDAQ:HNRG) had no outstanding bank debt and a $120 million credit facility as of March 31, 2026, and its contracted sales book has grown to over $2.1 billion in 2026, including a previously announced 12-year capacity agreement valued at over $1 billion.
Hallador Energy Company (NASDAQ:HNRG) operates as an independent power producer and fuel company in the United States. It operates in two segments, Electric Operations and Coal Operations.
3. Warrior Met Coal, Inc. (NYSE:HCC)
Number of Hedge Fund Holders: 40
Hedge funds held $624 million worth of positions in the stock as of Q1 2026, placing Warrior Met Coal, Inc. (NYSE:HCC) among the best coal stocks to invest in.
Warrior Met Coal, Inc. (NYSE:HCC) reached an all-time high of $110.39 on June 2, 2026, closing the session at $110.28, a move that builds on a gain of over 20% year-to-date and more than 120% over the past year.
The stock’s run has come despite a cautious near-term read from UBS, which in early May lowered its price target on Warrior Met Coal, Inc. (NYSE:HCC) to $102 from $104 while maintaining a “Buy” rating.
The firm noted that Warrior Met Coal, Inc. (NYSE:HCC)’s first-quarter 2026 results missed consensus on both EBITDA and earnings per share, with sales of 3.00 million short tons of steelmaking coal and a net selling price of $149 per short ton, each coming in more than 5% below expectations. Inventory built meaningfully during the quarter, with production exceeding sales by approximately 500,000 short tons and total inventory rising to a record 1.9 million short tons.
UBS said it had already flagged softness heading into the quarter, pointing to a quarter-over-quarter decline at McDuffie port in its Evidence Lab data, where Warrior Met Coal, Inc. (NYSE:HCC) holds roughly 60% exposure. The firm said more tons hitting an increasingly oversupplied market raises the risk of wider high-vol A discounts for Warrior and peers.
On the cost side, however, unit costs of $96 per short ton came in better than expected, supported by the 45X production credit and continued operational discipline. UBS noted that the earnings trajectory improves materially as Blue Creek capital expenditures roll off, with the firm describing the expected inflection in the second quarter of 2026 as attractive.
Warrior Met Coal, Inc. (NYSE:HCC) produces and exports non-thermal steelmaking coal used in steel production across Europe, South America, and Asia.
2. Peabody Energy Corporation (NYSE:BTU)
Number of Hedge Fund Holders: 50
With $544 million in hedge fund investment in the stock as of Q1 2026, Peabody Energy Corporation (NYSE:BTU) is among the best coal stocks to invest in.
Peabody Energy Corporation (NYSE:BTU) shares jumped nearly 10% on May 28, 2026, the same day the company priced a $225 million offering of convertible notes.
The notes, due June 1, 2031, carry a 0.50% annual interest rate and are set to settle June 2, 2026. The initial conversion price is approximately $38.32 per share, a 32.5% premium over Peabody’s volume-weighted average price of $28.9197 on May 28, 2026. Peabody Energy Corporation (NYSE:BTU) also granted initial purchasers an option to buy up to an additional $25 million in notes. Net proceeds are estimated at approximately $218.9 million, rising to roughly $243.3 million if the overallotment is fully exercised.
The primary use of proceeds is to fund roughly $15 million of capped call transactions, which are designed to reduce potential dilution up to a cap price of $50.6095 per share, a 75% premium to the May 28 reference price. The bulk of the remaining proceeds, combined with available cash, will fund the repurchase of approximately $241.2 million in aggregate principal of its outstanding 3.250% Convertible Senior Notes due 2028, at a cash purchase price of approximately $388.8 million.
The transaction effectively extends Peabody Energy Corporation (NYSE:BTU)’s debt maturity profile while layering in dilution protection at meaningfully higher share price levels.
The offering came alongside first-quarter 2026 results reported on May 5, 2026, in which Peabody Energy Corporation (NYSE:BTU) posted adjusted EBITDA of $82.5 million and a net loss of $32.4 million, or $0.27 per diluted share, weighed down by commissioning challenges at Centurion.
Thermal segments held up, with CEO Jim Grech citing strong demand and higher realized pricing amid global energy market volatility.
Peabody Energy Corporation (NYSE:BTU) is the world’s largest private-sector coal company, focusing on mining, marketing, and trading metallurgical and thermal coal. It supplies coal to power generators and steel manufacturers across 25+ countries, with key operations in the U.S. and Australia.
1. Core Natural Resources, Inc. (NYSE:CNR)
Number of Hedge Fund Holders: 55
Hedge funds held $818 million worth of positions in the stock as of Q1 2026, placing Core Natural Resources, Inc. (NYSE:CNR) among the best coal stocks to invest in.
Core Natural Resources, Inc. (NYSE:CNR) is making the case that coal’s industrial future runs well beyond the power plant, with a May 19, 2026 announcement tied to Northrop Grumman’s autonomous combat aircraft validating that strategy.
Through its Touchstone Advanced Composites unit, Core Natural Resources, Inc. (NYSE:CNR) is fabricating complex structural tooling for Northrop Grumman’s YFQ-48A Talon Blue Collaborative Combat Aircraft (CCA), an autonomous wingman being developed with an emphasis on scalability and rapid deployment.
Touchstone’s CFOAM material, made from domestically sourced bituminous coal, is used to produce high-precision, thermally stable molds for composite aerospace parts. The material can be readily modified as aircraft designs evolve, supporting a faster transition from prototype to full-scale manufacturing. Touchstone played a role in Talon Blue’s autonomous taxi test in Mojave, California.
Dan Connell, president of Core Natural Resources, Inc. (NYSE:CNR)’s Innovations business unit, framed the program as a direct example of coal being repositioned as a material input for advanced manufacturing in aerospace and defense, not just an energy source.
That announcement built on solid first-quarter fundamentals reported on May 7, 2026.
Core Natural Resources, Inc. (NYSE:CNR) posted net income of $21.0 million, or $0.41 per diluted share, on revenues of $1.1 billion and adjusted EBITDA of $179.9 million. Free cash flow came in at $55.5 million, with $47.0 million returned to stockholders in the quarter. The metallurgical segment stood out, with realized revenue per ton from coking coal rising to $122.11 and cash cost of coal sold per ton falling 11% quarter-over-quarter to $92.35. Total liquidity stood at $935 million as of March 31, 2026, including $413 million in cash.
CEO Jimmy Brock said Core Natural Resources, Inc. (NYSE:CNR) has reached an operational inflection point and expects substantial free cash flow generation in the coming quarters.
Core Natural Resources, Inc. (NYSE:CNR) is a world-class producer and exporter of high-quality, low-cost coals, including metallurgical and high calorific value thermal coals.
While we acknowledge the potential of CNR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CNR and that has 100x upside potential, check out our report about the cheapest AI stock.
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