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).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
A synopsis of today's Industry Outlook is presented below. The full article can be read athttp://www.zacks.com/stock/news/73557/coal-industry-stock-review-april-2012
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 generation.
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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4581.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
