Zacks Industry Outlook Highlights: Peabody Energy, CONSOL Energy, Penn
Virginia Resource Partners L.P., Natural Resource Partners L.P. and Alliance
Resources Partners L.P.
CHICAGO, April 24, 2012
CHICAGO, April 24, 2012 /PRNewswire/ -- Today, Zacks Equity Research discusses
the Coal Industry, including Peabody Energy Corporation (NYSE: BTU), CONSOL
Energy Inc. (NYSE: CNX), Penn Virginia Resource Partners L.P. (NYSE: PVR),
Natural Resource Partners L.P. (NYSE: NRP) and Alliance Resources Partners
L.P. (Nasdaq: ARLP).
A synopsis of today's Industry Outlook is presented below. The full article
can be read
Demand Upsurge in Asian Countries: The increase in coal demand in Asian
economies like China and India has been a key price driver since the end of
the recession in 2009. We expect this trend to continue in future mainly due
to the growing energy needs in India, China and South Korea.
Of the Asian countries, economic growth in China and India will be the
fastest. These two countries do produce coal, but its domestic coal production
has yet to match the growing demand, resulting in the continuous need of
importing coal. These countries rely heavily on coal for electricity
A major portion of the new electricity generation units, which are expected to
come up in these two countries, will utilize coal as a source of fuel. As per
The Economic Times, it is projected that coal imports will touch 1 billion
tons in China in 2030 from the present level of 175 million tons in 2011.
Indian imports for coal are expected to reach 400 million tons in 2030, up
from 80 million tons in 2011.
Given the growing demand from the fast-growing Asian economies, companies find
it attractive to export coal to the emerging regions. Some of the names making
the most from overseas coal exports are Peabody Energy Corporation (NYSE: BTU)
and CONSOL Energy Inc. (NYSE: CNX). To cater to the increasing demand of coal
in Asian countries, Peabody has acquired Macarthur Coal in Australia and
expanded its footprint in high-demand regions.
Elsewhere, certain coal master limited partnerships (MLP), including Penn
Virginia Resource Partners L.P. (NYSE: PVR), Natural Resource Partners L.P.
(NYSE: NRP) and Alliance Resources Partners L.P. (Nasdaq: ARLP), are also good
investment bets for people seeking exposure in the coal sector.
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