Why Peabody Energy Stock Soared as Much as 26.5% This Week

why peabody energy stock soared as much as 26 5 this week

Sumary of Why Peabody Energy Stock Soared as Much as 26.5% This Week:

  • What happened Shares of globally diversified coal miner Peabody Energy (NYSE:BTU) rose in dramatic fashion this week.
  • So what The quick takeaway here is that coal prices are on the rise, and thus, investors are upbeat on Peabody Energy.
  • For example, Peabody has been struggling to support a heavily leveraged balance sheet, with a debt-to-equity ratio of roughly 1.7 times at the end of the first quarter.
  • Higher coal prices will make it easier for Peabody to manage its leverage, and that is very good news.
  • The broader energy sector is going through a major transition as the world looks to reduce the amount of carbon fuel it uses.
  • Indeed, for years electric utilities have been building natural gas-fired plants to replace older, dirtier coal plants.
  • And then there’s the massive build-out of solar and wind generation that has been taking place.
  • In fact, this was part of the reason why Peabody Energy went through a bankruptcy in 2016/2017. That big-picture trend hasn’t changed.

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