Peabody Energy, a coal mining giant, is coming back out of the shadows. The St. Louis-based business has spent nearly a year in bankruptcy, but Tuesday, they will once again be trading on the New York Stock Exchange!
Glenn Kellow, Peabody’s Chief Executive Officer, stated, “We look forward to this next phase in our company’s history. Coal remains an essential part of the energy mix, and Peabody is the largest U.S. coal producer.”
Clarksons Platou Securities estimated a market capitalization of $3.97 billion for the company, which at its height was valued at almost $24 billion. Its return to Wall Street comes just as the entire U.S. coal sector is staging a comeback amid growing interest from investors.
The industry’s recovering from a market collapse that, just a year ago, sent coal prices plunging to their lowest level in over a decade. The downturn shut hundreds of U.S. mines, leaving thousands out of work. Peabody, which produces more tons of coal than any other U.S. miner, is returning with about a quarter of its old debt levels and plans to focus on the thermal coal used by power plants — a fuel it can extract from mines in Wyoming and Australia that analysts including Clarksons Platou have ranked among the world’s lowest-cost operations.
U.S. coal production plunged by almost 40 percent under President Barack Obama as the industry faced competition from cheap gas and pressure from tighter regulations on pollution from power plants. Trump has already….