Posted on 07/09/2012 3:24:34 PM PDT by Oldeconomybuyer
NEW YORK--Patriot Coal Corp. filed for Chapter 11 bankruptcy on Monday, the largest casualty of the worst U.S. market for the power-plant fuel in decades.
U.S. demand for coal has slumped this year as utilities favored cheaper natural gas, as prices of that fuel hit decade lows amid a supply glut. Coal miners, including Patriot Coal, have slashed production and laid off workers in an effort to match supply to weakening demand.
Coal accounted for 35% of U.S. electricity generation during the first four months of the year, according to the Energy Information Administration, down from 44% during the same period in 2011.
The company said Monday it has reacted to lower domestic demand by reducing production and increasing sales to export markets. However, in recent months, the cancellation of customer contracts, lower power-plant coal prices and rising expenditures for environmental and other liabilities have severely constrained its liquidity and financial flexibility, the company said.
(Excerpt) Read more at marketwatch.com ...
At least he’s keeping his campaign promises...
HOPE! and CHANGE!
If he gets re-elected he’ll start ruining our natural gas industry too.
“...Crucify!”
-Hussein
http://www.youtube.com/watch?v=Y-aLcbr63ME
Does anybody know if the United Mine Workers are throwing their support behind their boy Obama in 2012? Correct me if I am wrong, but I believe they were behind him 100 percent in the 08 election.
I see a future commercial in the style of those attacking Romney for the closing of plants. These would be able to use Obama’s own words and because of the similarities, resonate. Create, pubbies, create!!!
Didn’t a bunch of them vote for a criminal in the W. Va. primary rather than Obama?
All of the West Virginia, Ohio, Kentucky, Pennsylvania Freepers may want to cut and past this into an email and send to everyone they know who has family, friends, or associates in the coal mining industry.
Obama, T. Boone Pickens and the EPA are happy...
“Patriot is one of the largest coal miners east of the Mississippi River. The company’s operations are made up of 16 mining complexes. Thirteen of these complexes are located in West Virginia and three are located in Kentucky. In 2007, Patriot sold 22.1 million tons of coal. The company controls 1.9 billion tons of proven and probable coal reserves. Patriot is the largest producer of thermal coal in the Eastern United States. It is also a leading producer of metallurgical coal. Approximately 80% of its coal is sold to domestic utilities and 20% is sold to domestic and international steel producers.”
If they go bankrupt and their stock drops it would be interesting to see who buys it...soros...bufffet
Amazing, I was trading PCX common up near 128 a couple of years ago. And ANR, too. With few exceptions, the coal stock charts look absolutely terminal. But Patriot was a high flyer in the commods frenzy of a few years ago.
If he gets re-elected he’ll start ruining our natural gas industry too.
“He’s already trying to do that by putting the EPA’s nose into Fracking”.
Well, that was stupid. I left the quotes off your reply and put them on my response. D’OH!
Hey, I’m glod you pointed that out...otherwise I wouldn’t have noticed.
The one they voted for was already in prison.
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