Peabody Energy Corporation (BTU), Arch Coal Inc (ACI), Alpha Natural Resources, Inc. (ANR): Five Cities Relying on Coal

Houston
A second Peabody-contracted Kinder Morgan Energy Partners LP (NYSE:KMP) facility is located in Houston. This facility is also being expanded as part of Kinder Morgan’s plan to spend $450 million on coal terminal expansion projects. These projects will help Peabody Energy Corporation (NYSE:BTU) increase its coal exports from the Gulf Coast to between 5 million and 7 million tons. These projects also benefit Arch Coal Inc (NYSE:ACI), which has signed export agreements with Kinder Morgan surrounding this facility. Texas currently receives just under $500 million in economic value from coal exports, but that’s expected to increase as these expansion projects come online. These projects should also boost coal-related employment in the state, up from its current amount of just over 4,000 jobs.

Final Foolish thoughts
Coal exports in the future are only likely to increase, and with them will come increased economic activity and more jobs. We’re seeing exports continue to break records, as a new record was just set this March. That month, exports totaled 13.6 million short tons, nearly 0.9 million short tons above the previous monthly export peak in June 2012. Because of push-back along the West Coast, these five big coal export cities will continue to see infrastructure investments, tax revenue, and jobs as U.S. producers continue to export more coal.

The article 5 Cities Relying on Coal originally appeared on Fool.com.

Fool contributor Matt DiLallo and The Motley Fool have no position in any of the stocks mentioned.

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