Goldman Sachs re-evaluates resource company’s values
Goldman Sachs has upgraded shares in Pittsburgh-based natural gas and coal producer, Consol Energy from “neutral” to “buy”.
Meanwhile, shareholders in Peabody Energy will be disappointed that Goldman downgraded stock in the company from “buy” to “neutral”.
The upgrade comes on the same day Consol CEO Nicholas DeIuliis said the company has undergone a “significant and strategic transformation” over the last year.
He reiterated the company's focus on its Appalachian unconventional gas assets, as well as thermal and metallurgical coal assets in Pennsylvania and Virginia.
Consol Energy has specifically targeted development of coalbed methane (CBM) reserves, as well as latching onto the shale gas revolution in the US.
In Q1 2014, the company beat expectations as revenue climbed 15%. Strong performance from its CBM and shale projects helped the group offset a drop in coal prices.
Shares of Consol were up 1.5% to US$ 48.10 in early trade. They are up close to 25% since 1 Jan. Those of Peabody fell 1.8% to US$ 16.28.
Peabody Energy, on the other hand, has missed top and bottom-line quarterly expectations and reported an almost 7% year-over-year decline in revenue, as the slump in coal prices continues.
Written by Sam Dodson
Read the article online at: https://www.worldcoal.com/cbm/06062014/goldman_sachs_evaluates_resource_company%E2%80%99s_credit_ratings_cbm46/
You might also like
Water recycling as a cost-saving solution in coal mining
Jane Marsh, Editor-in-Chief at environment.co, details how water recycling offers coal mining companies a practical way to cut costs, meet regulatory demands, and strengthen resilience against growing water scarcity challenges.
