Could Higher Natural Gas Prices Give Coal Stocks Hope?

Baby it's cold outside! Yes the holidays are back and cold weather gripping much of the U.S. is causing shorts to cover positions in natural gas. The rise in natural gas prices may even start to make coal-fired plants more economical. That view could go mainstream if the EPA decides to officially give states some flexibility in meeting new standards for coal fired plants. This has me thinking the recent rally in coal stocks such as Walter Energy (NYSE: WLT  ) , Peabody Coal (NYSE: BTU  ) and Alpha Natural Resources (NYSE: ANR  ) may see continued upside. That could also mean that investors should look at putting some coal in their Christmas stockings this year, even shares of out-of-favor Arch Coal (NYSE: ACI  ) . 

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  • Report this Comment On December 15, 2013, at 3:50 PM, JJRendina wrote:

    Switching to coal already underway as nat gas has been on the rise. In recent years parity has been around $4/mcf but with thermal coal prices at multi year lows, parity is <$4 and natural gas is >$4.25.

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Related Tickers

4/23/2014 4:00 PM
ACI $4.48 Down -0.07 -1.54%
Arch Coal, Inc. CAPS Rating: ***
ANR $4.31 Up +0.09 +2.13%
Alpha Natural Reso… CAPS Rating: **
BTU $17.42 Up +0.11 +0.64%
Peabody Energy Cor… CAPS Rating: ****
WLT $7.65 Up +0.31 +4.22%
Walter Industries,… CAPS Rating: ***

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