I just picked up another 1/4 of my target holdings in BTU:NYSE at $57.00 per share. The trade executed at 8:03 am in pre-market trading. I am now holding 50% of my target in BTU.
Peabody Energy Corporation BTU:NYSE, reported another robust quarter with second-quarter 2011 earnings of $1.11 per share, surging above the Zacks Consensus Estimate of $1.04. The company’s robust performance for the quarter was driven by robust coal prices across the board and higher Australian volumes.
BTU has improved earnings per share by 38.1% in the most recent quarter compared to
the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth
over the past year. During the past fiscal year, BTU increased its bottom line by earning $2.86 versus $1.64 in the prior year. This year, the market expects an improvement in earnings of $4.47 versus $2.86.
BTU CEO Greg Boyce said in a keynote address July 18 at the summer meeting of the National Association of Regulatory Utility Commissioners (NARUC) (Washington, D.C.) that “Greater Use of Coal Can Achieve U.S. Energy, Economic and Environmental Objectives.” In his speech to the regulators, Boyce pressed what he called the “Peabody Plan” to ensure that at least half of new electric generation comes from advanced coal plants that are ultra-efficient and typically have an emissions rate that is one-fifth that of the existing U.S. fleet. These ultra-efficient coal-fired plants emit 15% less carbon dioxide (CO2) than the existing fleet. They’re also ready to install carbon capture and sequestration (CCS) equipment. The plan also calls for commercializing CCS technology and deploying coal-conversion technologies.
“Energy, jobs and the economy are the most important global issues that we face,” Boyce told the regulators. “Low-cost energy is economic oxygen. It is vital to job creation, healthy industry and gross domestic product (GDP) growth. Affordable energy puts people on the payroll. It keeps jobs at home, powers industry and enables America to compete globally.”
“All fuels are needed to create more energy,” he continued. “I say let’s make jobs and the economy number one by making energy number one.”
Peabody Energy Corporation is a coal company. The Company owns majority interests in 28 coal mining operations located in the United States and Australia. In addition to mining operations, it markets, brokers and trades coal. It operates in four segments: its three mining segments and Trading and Brokerage segment. The three mining segments are Western U.S. Mining, Midwestern U.S. Mining and Australian Mining. Its fifth segment, Corporate and Other, includes mining and export/transportation joint ventures, energy-related commercial activities, as well as the management of its coal reserve and real estate holdings. The principal business of its U.S. Mining segments is the mining, preparation and sale of thermal (steam) coal, sold primarily to electric utilities. Through the Trading and Brokerage segment, the Company brokers coal sales of other coal producers both as principal and agent, and trade coal, freight and freight-related contracts.