Coal Producers
Thursday June 28, 4:58 pm ET
Coal Producers Up As Key Energy Bill Goes to Vote and Analyst Starts FCL Coverage at "Buy"
NEW YORK (AP) -- Coal producer stocks gained momentum on Thursday, as a key energy bill went to congressional committee vote and a Banc of America Securities analyst initiated coverage of Foundation Coal Holdings Inc. with a "Buy" rating.
The House of Representatives energy and commerce committee started the amendment and voting process on its energy bill early Thursday, with the bill scheduled to hit the floor for a full House vote on July 9.
Friedman, Billings, Ramsey analyst Kevin Book said he estimates the bill could bring between $15 billion and $20 billion in tax credits for companies investing in alternative and renewable energy.
Also Thursday, Banc of America Securities analyst Daniel W. Scott initiated coverage of Foundation Coal Holdings at "Buy," saying the third-largest coal producer should benefit in the near-term from investments in the Powder River Basin, a region that spans southeast Montana and northeast Wyoming. The region offers benefits including low sulfur content, plentiful reserves and lower production costs, the analyst said.
Scott said his top picks in the coal sector are Arch Coal Inc. and Peabody Energy Corp., the nation's largest coal producer, because of their investments in the region.
Here how some key coal stocks did Thursday:
Peabody Energy, up $1.10, or 2.3 percent, to $48.16.
Massey Energy, up 32 cents to $26.14.
Consol Energy Inc., up 34 cents to $46.17
Arch Coal, up 7 cents to $34.46.
Foundation Coal Holdings, up 89 cents, or 2.3 percent, to $39.99.
Alpha Natural Resources Inc., up 81 cents, or 4.1 percent, to $20.66.
James River Coal Co., up 12 cents to $12.87
Fording Canadian Coal Trust, up $1.22, or 4 percent, to $31.74.
Questions or comments about this story should be directed to the Financial News desk of The Associated Press at 212-621-7190.
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