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PCX nearly up 14% for the week now, very good
PCX up 9% for the week and XOM up 6% for the week, hows those for recommendations, nice I presume.
Nice gains today, PCX sees 7% gains or so, XOM is 3.6%
The Winter Storm has started.. maxed out on snow removal around here
Exxon Mobils profit climbs 53%
Oil majors results are richest since third quarter of 2008
By Steve Gelsi, MarketWatch
Last Update: 1/31/2011 04:12:14 PM
NEW YORK (MarketWatch) Exxon Mobil Corp. said Monday that its fourth-quarter
profit rose 53% to top $9 billion, marking the oil major?s richest results since
the third quarter of 2008 as it benefited from higher crude-oil prices and a jump
in production.
Shares of Exxon Mobil (XOM)?rose 2.1% to $80.68, climbing above the $80 level for
the first time since August, 2008, and lending strength to the energy sector.
See: Exxon, Chesapeake fuel gains in energy stocks.
Click for Detail
Patriot Coal Announces Results for the Quarter and Year Ended December 31, 2010
ST. LOUIS, Feb. 1, 2011 /PRNewswire via COMTEX/ -- Summary:
Fourth quarter EBITDA of $42.8 million, up 32 percent over the prior year
Full year EBITDA of $141.9 million, up 28 percent over the prior year
Increasing metallurgical production to over 8 million tons in 2011, with
expansion to over 11 million tons by 2013
More than 2 million tons of new met coal sales for 2011 delivery, with 3.0 to 3.4
million tons remaining to be priced
Nearly 1 million tons of thermal coal sold to export markets, sourced from three
coal basins
Patriot Coal Corporation (PCX) today reported its financial results for the
quarter and year ended December 31, 2010. The Company reported revenues of $528.2
million, EBITDA of $42.8 million, net income of $7.3 million and net income per
diluted share of $0.08 for the 2010 fourth quarter. For the 2010 year, the
Company reported revenues of $2.0 billion, EBITDA of $141.9 million, net loss of
$48.0 million and loss per share of $0.53. EBITDA for the fourth quarter and the
full year of 2010 increased 32 percent and 28 percent, respectively, compared
with 2009.
"This past year was one of building strength at Patriot in anticipation of
improving global economies and markets. We emphasized the re-engineering of both
surface and underground mines to address increased regulatory oversight. At the
same time, we focused on increased met production and are now on a path to
produce more than 11 million tons of metallurgical coal by 2013," noted Patriot
President and Chief Executive Officer Richard M. Whiting. "This strategic growth,
coupled with significantly higher margins on thermal business following the
roll-off of two legacy sales contracts in the next two years, gives Patriot
tremendous potential for earnings expansion."
"In recent months, we have booked more than 2 million tons of new met coal sales
for 2011 delivery at prices substantially higher than those realized in 2010. And
we have more than 3 million tons of met production for delivery in 2011 remaining
to be priced," continued Whiting. "We also took advantage of stronger European
thermal markets in the fourth quarter, booking nearly 1 million tons of thermal
export sales for 2011 delivery."
Commenting on the fourth quarter, Patriot Senior Vice President and Chief
Financial Officer Mark N. Schroeder noted, "As a result of solid production
across nearly all mining complexes, we recognized EBITDA of $42.8 million. The
higher EBITDA resulted from higher average selling prices, as well as improved
operating costs per ton compared with our 2010 third quarter. In total, fourth
quarter production across our complexes was almost 400,000 tons higher than the
2010 third quarter. In particular, production at our Federal mine exceeded 1.1
million tons this quarter, over 250,000 tons above the third quarter. And
production at our Wells metallurgical complex was up more than 100,000 tons in
the fourth quarter."
"Looking forward, we expect to move the Panther longwall only once in 2011 - in
the second quarter - so we anticipate steadier production at this metallurgical
coal complex," continued Schroeder. "Stronger performance at Panther, full
production at the new Black Oak mine by mid-year, and the start-up of additional
metallurgical mines are expected to result in met coal output of more than 8
million tons in 2011 and 9 million tons in 2012. This compares with the 6.9
million tons of met coal sold in 2010. These planned expansions require
relatively low capital investment, as they will use incremental capacity at
existing facilities."
Financial Overview
Revenues in the 2010 fourth quarter were $528.2 million, compared with $503.2
million in the prior year quarter. Higher revenues in the 2010 quarter compared
with the prior year largely resulted from higher average selling prices,
partially offset by lower sales volume. Revenues for 2010 of $2.0 billion were
comparable with 2009.
Sales in the fourth quarter totaled 7.7 million tons, including 6.0 million tons
of thermal and 1.7 million tons of metallurgical coal. Total sales were lower
than the 8.3 million tons sold in the fourth quarter of 2009, which included 6.7
million tons of thermal and 1.6 million tons of metallurgical coal. Lower sales
compared with the year-ago quarter were due to the continuing impact of higher
regulatory oversight in 2010, as well as transport constraints late in the
quarter. Compared with the 2010 third quarter, sales volume was 0.2 million tons
higher in the fourth quarter, primarily a result of improved production at the
Federal mine, as well as a 0.1 million ton increase in metallurgical coal sales.
Full-year 2010 sales volume was 30.9 million tons, compared with 32.8 million
tons in 2009.
EBITDA in the 2010 fourth quarter was $42.8 million, compared with $32.5 million
in the same quarter of 2009. Higher EBITDA was driven by higher average selling
prices, partially offset by lower sales volume. EBITDA for 2010 totaling $141.9
million was $31.1 million, or 28 percent, higher than EBITDA reported in 2009.
Higher EBITDA in 2010 resulted primarily from higher average selling prices.
Operating cost per ton totaled $55.70 in the 2010 fourth quarter, compared with
$50.86 in the prior year fourth quarter. Increased cost per ton in the 2010
quarter was primarily due to lower production, in part associated with increased
regulatory oversight. Compared with the 2010 third quarter, operating cost per
ton improved $2.65, largely as a result of the sequential increase in volume.
Higher production at the Federal, Rocklick and Highland complexes drove the
increased volume in the fourth quarter compared with the third quarter. For the
2010 full year, operating cost per ton was $55.49, compared with $52.92 in 2009.
Cost per ton increased only 5 percent year-over-year, even with the significant
increase in regulatory oversight, various operational challenges and higher met
coal volume in 2010.
Accretion related to shipments on below-market sales and purchase contracts
obtained in the Magnum Coal acquisition in July 2008 totaled $31.5 million in the
fourth quarter of 2010, compared with $66.1 million in the prior year. Lower
accretion in 2010 resulted because certain contracts acquired with Magnum expired
at the end of 2009, and the associated accretion was fully recognized by that
time. Sales contract accretion is expected to be significantly lower in 2011,
totaling approximately $50 million, as underlying contracts continue to expire.
Credit and Capital
As of December 31, 2010, Patriot had a cash balance of $193.1 million and no
borrowings on its revolving credit facility or its receivables securitization
program. Available liquidity was just under $400 million at December 31, 2010.
Capital expenditures totaled $28.4 million in the 2010 fourth quarter and $123.0
million for the full year. For 2011, the Company expects capital expenditures to
be in the range of $150 to $175 million, as Patriot continues its metallurgical
coal expansion.
Safety
During the quarter, the Patriot Surface Mine received a Surface Safety Award from
the Kentucky Department for Natural Resources, adding to the Sentinels of Safety
and numerous other awards received during 2010. The Company's accident rate
declined again in 2010, making it the safest year in Patriot's history and the
fourth consecutive decline since becoming a public company in 2007.
Patriot continues to work constructively with the Mine Safety and Health
Administration to improve safety processes and equipment at its mines. In some
instances, changes resulted in days or weeks of lost production during the year,
as new approaches and programs were implemented. The Company remains committed to
working with MSHA and state agencies to ensure continuous improvement in safety
and compliance programs.
Market Overview
Patriot has participated in the robust metallurgical and improved thermal coal
markets by adding new business that will significantly increase earnings during
the second half of 2011, while also reserving a significant portion of production
for pricing as the year progresses. The Company anticipates that markets will
remain strong throughout 2011, given continued growth in economies around the
world. Patriot enjoys a strong metallurgical coal reserve base that can be
developed with both incremental and large-scale projects to serve growing
customer needs.
"The structural shortage in metallurgical coal is expected to continue for at
least the next few years, as a result of limited supply in established coal
basins, coupled with long lead-times to bring on significant production in new
basins," continued Whiting. "Patriot is moving forward with the financial
commitments to expand our met output from 6.9 million tons in 2010 to 11 million
tons by 2013. To fulfill the met coal needs of Patriot's customers, our plans
call for opening a number of new mines during the next two years. These met mines
are located within the existing Rocklick, Wells, Kanawha Eagle and Logan County
complexes."
"The API2 forward price curve has increased more than $10 per metric tonne since
October. As a result, Appalachian thermal coal can now be exported into the
prompt European market at more favorable margins than if sold domestically. We
believe this is an indication of the continuing globalization of thermal markets,
following the same direction as met markets in recent years," stated Whiting.
"The meaningful thermal business Patriot has booked for 2011 export to Europe
includes shipments from all three of the basins where we operate. Against the
backdrop of growing Pacific Rim demand, this is a very positive sign for
prospects in the Atlantic market."
"The global increase in metallurgical and thermal coal demand is occurring while
the Western economies have not yet fully rebounded," noted Whiting. "Moving
forward, it is unclear how worldwide coal supply will keep pace with demand."
"Naturally, we are allocating our capital to projects we believe will realize the
highest margins. Therefore, most of our capital is aimed at met production,"
concluded Whiting. "As a reminder, we also expect our thermal business to yield
substantially higher margins in coming years as two significant underwater legacy
contracts covering 6.5 million tons expire. Re-pricing these two contracts at
today's more favorable levels would yield incremental EBITDA in excess of $150
million in 2013, after improving 2012 by almost $50 million."
Outlook
For 2011, the Company currently anticipates sales volume in the range of 30 to 32
million tons. This includes metallurgical coal sales of 8.0 to 8.4 million tons,
a meaningful increase over the 6.9 million tons sold in 2010. Based on this
volume, cost per ton is expected to be in the range of $63 to $67 for the
Appalachia segment, reflecting the higher met production and transition to
several new mines. Cost per ton for the Illinois Basin segment is expected to be
in the $40 to $43 range.
"Since our last earnings call, we have booked slightly more than 2 million tons
of metallurgical coal at an average selling price of about $135 per ton. Much of
this business was signed prior to the end of the fourth quarter," added
Schroeder. "Also included in this new business are about 500,000 tons of met coal
booked in January following the extreme weather conditions in Australia. These
more recent contracts are at an average price of approximately $155 per ton at
the mine. Following these sales, we have 3.0 to 3.4 million tons of met coal for
2011 delivery remaining to be priced in today's stronger market, more than half
of which are our higher quality met coal."
"Additionally, we booked around 2 million tons of thermal business during the
quarter," concluded Schroeder. "Following these sales, we have just under 2
million tons of Appalachia thermal coal remaining unpriced and just under 1
million tons of Illinois Basin coal remaining unpriced for 2011 delivery."
Average selling prices of currently priced tons for 2011 and 2012 are as follows:
(Tons in millions)20112012
Tons Price per tonTons Price per ton
Appalachia - thermal14.0 $ 597.7$ 57
Illinois Basin - thermal 6.8$ 401.8$ 49
Appalachia - met5.0$1270.0NA
Total25.89.5
Priced thermal business for 2011 and 2012 includes 8.3 million tons and 4.7
million tons, respectively, related to legacy contracts priced significantly
below the current market.
Patriot Coal beats by $0.43, misses on revs; updates production data points
Reports Q4 (Dec) earnings of $0.08 per share, $0.43 better than the Thomson Reuters consensus of ($0.35); revenues rose 5.0% year/year to $528.2 mln vs the $548 mln consensus. Higher revenues in the 2010 quarter compared with the prior year largely resulted from higher average selling prices, partially offset by lower sales volume. For 2011, the co currently anticipates sales volume in the range of 30-32 mln tons. This includes metallurgical coal sales of 8.0-8.4 mln tons, a meaningful increase over the 6.9 mln tons sold in 2010. Based on this volume, cost per ton is expected to be in the range of $63-67 for the Appalachia segment, reflecting the higher met production and transition to several new mines. Cost per ton for the Illinois Basin segment is expected to be in the $40-43 range.
ANW Aegean Marine is one to watch today up 3.6% since the open
Notice the BDI is down 17% for the week, ouch, staying away from the shipping stocks
PCX currently trading at 26.75 up 5% from yesterday and 2% since the open, good stuff... In Calls PCX FEB 11 28 strike price
Massey Energy to be acquired by Alpha Natural Resources (ANR) for $69.33 per share
1:40 AM ET 1/31/11 | Briefing.com
Alpha Natural Resources (ANR) and Massey Energy (MEE) announce that they signed a definitive agreement under which ANR will acquire all outstanding shares of MEE common stock. MEE stockholders will receive, at the closing, 1.025 shares of ANR common stock and $10.00 in cash for each share of MEE common stock. Based on the closing share price of ANR common stock as of January 28, 2011, the agreement placed a value of $69.33 per share of MEE common stock (implying $8.5 bln enterprise value for MEE) and represents a 21% premium to MEE's current share price.
MEE is currently at 62.75 so there is 7 dollars and change of almost instant appreciation in the cards. This is the biggest news event today so far.
Lets see how our media efforts are panning out...
Movies: The Green Hornet leading the way..
http://www.boxofficemojo.com/yearly/chart/?yr=2011&p=.htm
Music: http://www.billboard.com/#/charts/billboard-200
Billboard doesnt post platinum record results apparantly
Sign of the times, our nation founded on protest, and its not illegal here but it always seems to go to far
http://mediadecoder.blogs.nytimes.com/2011/01/28/tv-crews-struggle-in-egyptian-chaos/?partner=rss&emc=rss
Sea of red today, unless its a major paradigm shift in the markets its setting itself up for cheaper long positions in stock and options... Have a good weekend and cya next week bright and early
Currently Coal is a highly favored stock group, one would be hard pressed to find coal supplies in excess anywhere there is demand in the world. Todays Oil prices shot up and many are calling for over 100 dollar oil within a year.
PCX is the coal pick of choice for this board to follow...
The Chart shows that its sort of a midterm chance to buy this equity whether in options or stock. Any sort of pullback will be welcome but I personally will not wait long for it since it has already had a pullback recently...
performance wise a one year double is the best one can expect.
Keeping an eye constantly now on the VIXES, that is the $VXN ( Nasdaq Vix), the $VXD ( Dow VIX ), and the VXX the S&P Vix.
These are fear guages and will help measure the depth of any correction due to news from Egypt, Credit Tightening in China and a commodities selloff or other potential market moving events.
The market still has a bullish sentiment however since the VIX is near 3 year lows.
CAT calls getting almost 1 million in volume today not sure why ? but interesting.
Good to see the SSS board again, check out EEE for grins and giggles, on fire lately ( this month ).
Happy New Years Eve Day to the hardcorp traders on Scalp Swing Straddle
Happy New Years Day Eve to the LOTTO Board !!!
For anyone who likes this board you can find me daily on a chatline from the Lotto Board, I let the board run automated and dont spend time chatting here. ( very few replies )
http://www.marketaddicts.net/chat/ Jest enter a name and hit enter and your in. Stocklobster runs the chat.
Does BP and RIG and HAL have much more to drop ? Repair procedures for the Gulf Oil Spill unclear as to potential for success.
Miners, which are closely tied to demand from China, were lower on Tuesday with
Anglo American (UK:AAL) and BHP Billiton (UK:BLT)(BHP) down by more than 3% each
after two key gauges of Chinese factory activity released Tuesday both showed a
slowdown
Mining, material stocks pull Canadian markets down
By Wallace Witkowski
May 19, 2010 17:59:00 (ET)
SAN FRANCISCO (MarketWatch) -- Canadian markets continued to be punished by losses in mining and materials stocks as gold prices retreated and the U.S. dollar strengthened against the loonie.
The S&P/TSX Capped Diversified Metals & Mining Index fell 2.4%, for a drop of 8.7% on the week, and the S&P/TSX Capped Materials Index fell 3.1%, to log a 6.4% loss for the week.
The Toronto Stock Exchange's blue-chip S&P/TSX Composite Index ended the day down 0.8%, and is down 2.9% for the week.
Barrick Gold (ABX, Trade ) shares fell 3.6%, Centerra Gold shares dropped 2.3%, and Iamgold Corp. shares declined 4.6%.
Teck Resources Ltd. (TCK, Trade ) shares continued a bad streak, down 2.5%, or 7.5% for the week. Canadian Natural Resources (CNQ, Trade ) shares fell 1.7%, and Taseko Mines Ltd. dropped 3.4%.
Oil for July delivery rose 0.4% to $72.48 a barrel, and gold for June delivery fell $21.50, or 1.8%, to settle at $1,193.10 an ounce.
The U.S. dollar rose 0.4% against the Canadian dollar, with one U.S. dollar buying C$1.0441.
Sears Canada Inc. was one of the few bright spots in Canadian markets. Shares closed up 6.5% after the retailer declared a special dividend of C$3.50 a share and said it would buy back up to 5.4 million shares.
PUT watch for PCLN, MA, V as some to potentially buy option puts for.
Watching European dollar contagian, greek protests, correction in the overall markets, mostly for opportunities in options trading.
Mental note for the craziest day of trading of all time ( according to my watch ), Down 900 points at one point on the DOW, nuts
Same here the most erratic ever
Buying strangles on these covers both the upside and downside with options !!! I may try this with CYTX as your play of the month. Options on the 2.5 for the downside are only 50 bucks for 10 and on the upside to 7.5 are 350 bucks for 10. So for 400 bucks you have got it both ways.
Lots of earnings coming out presenting interesting opportunities for trades. Palm deal, FSLR
Lost a little $$$ in AIG calls, flat today. Shoulda stayed in DCTH, live and learn
Thanks for checking into it
I logged into chat and I am the only one in there having just had left chat with at least a handful of folks chatting ??? I cant explain why that would happen...
Yes This has just happened to me at 11:10 EST
Yes its acting up like it may drop