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Will Coal Fuel This Company's Earnings?

By Taylor Muckerman and Joel South - Apr 24, 2013 at 5:47PM

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As coal and natural gas wage price wars with each other, this company hopes to win no matter who emerges victoriously.

Managing a coal company over the past year and half has not been an enviable role. Prices have dropped, but not quite as fast as demand, thanks to the fossil fuel du jour: natural gas. That hasn't stopped CONSOL Energy (CNX 3.18%) from taking diversifying moves to help its own cause. During this downturn, CONSOL has focused its capital spending on the development of natural gas in the Appalachia region while spending just enough to ensure that its coal business doesn't falter. 

On the heels of a better-than-expected release from Peabody Energy (BTU) and expectations from Caterpillar (CAT 1.78%) that coal prices could rise somewhat in 2013, both businesses might be set to succeed in tandem. The price of natural gas has been climbing rapidly to start 2013, which should help coal regain some traction. And its East Coast export facility continues to provide access to the demanding European market. In the following video, Taylor Muckerman expects some positive news on Thursday and thinks you should, too.

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Stocks Mentioned

Peabody Energy Corporation Stock Quote
Peabody Energy Corporation
BTU
CONSOL Energy Inc. Stock Quote
CONSOL Energy Inc.
CNX
$21.73 (3.18%) $0.67
Caterpillar Inc. Stock Quote
Caterpillar Inc.
CAT
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Halliburton Company Stock Quote
Halliburton Company
HAL
$38.78 (0.78%) $0.30

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