Lower contribution from segments hurts CONSOL Coal's (CCR) first-quarter 2020 results.

Higher prices for Peabody's metallurgical coal are giving Wall Street hope that the company can turn to profitability.

On Wednesday, April 29, 2020, Peabody (NYSE: BTU) will announce results for the quarter ended March 31, 2020. A conference call with management is scheduled for 10 a.m. CDT on Wednesday, April 29.

With us today are President and CEO, Glenn Kellow; as well as Interim CFO, Mark Spurbeck. Against this difficult backdrop, I'd now like to touch on a few of the key financial results in the first quarter.

Moody's Investors Service, ("Moody's") downgraded long-term ratings for Peabody Energy Corporation, including the Corporate Family Rating ("CFR") to B1 from Ba3 and senior secured ratings to B1 from Ba3, based on expectations for weakened earnings and cash flow. "Peabody has about $1 billion of cash on the balance sheet today, but cash usage in 2020 is expected due to deteriorating demand for coal and weak export conditions, coupled with a deteriorating global economic outlook" said Ben Nelson, Moody's Vice President -- Senior Credit Officer and lead analyst for Peabody Energy Corporation.

Peabody Energy (BTU) delivered earnings and revenue surprises of -33.70% and 1.52%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?

As an investor, mistakes are inevitable. But really bad investments should be rare. So consider, for a moment, the...

(Bloomberg Opinion) -- Gray? Try “steel-colored.” Angular? You must mean “steel-inspired.” I’m referring, of course, to the new logo of the rechristened Arch Resources Inc.The old logo, with its stylized fragment of St Louis’ Gateway Arch, was fine — apart from the fact that it had the word “coal” in it. Arch Coal, the company’s old name, was a mite too connected with a certain fuel that is not only in terminal decline in the U.S. but also rather unpopular with the ESG crowd.When Arch Coal was formed in 1997, America’s power stations were burning 900 million tons a year, generating more than half the country’s electricity, and climbing. Today, thermal coal accounts for less than a fifth of the mix:Remarkably, in announcing its name change this week, Arch pulled a Voldemort with the word “coal”: It doesn’t appear anywhere in the main body of the press release(3). This is doubly impressive when you consider Arch Resources will in fact continue to mine prodigious quantities of ... well, you know. Thingy.Only Arch is now focused on a different class of thingy. Metallurgical coal is thermal coal’s more prosperous sibling, a vital ingredient for making steel; hence Arch’s steely new logo. Except Arch refers to these black rocks dug out from the ground not as metallurgical coal but as metallurgical products.Corporate rebranding tends to offer a rich seam of material, but Arch’s new name is actually a logical progression in a logical strategy.Ever since the miner emerged from chapter 11 in 2016, its approach has been one long tacit acknowledgement that the U.S. thermal coal industry is in a downward spiral. That business has essentially been run for cash, with capex running at just 70% of depreciation, and the company’s Powder River Basin assets are about to be subsumed into a joint venture with Peabody Energy Corp. The more profitable metallurgical business, meanwhile, is expanding, with a major new project in West Virginia underway. Most importantly, though, for every dollar Arch has invested back into the business, it’s spent about $1.60 on stock buybacks, taking in 40% of the shares(1) . This is how you head into the sunset.So the new name and Terminator-esque logo aren’t just some branding consultant’s WFH project. It’s the latest step in Arch’s quest to carve out a new life after death. For example, see this from the announcement:We expect steel to play an essential role in the revitalization of the global economy as it recovers from the disruption of the COVID-19 pandemic, and in the construction of a new economy supported by mass transit systems, wind turbines and electric vehicles.See? No mention of coal, but a cameo by wind turbines, no less (ah, the irony). Mad Men’s Don Draper once pitched Bethlehem Steel on advertising itself as producing the building blocks of America’s great cities. In real life, Arch would like you to know it mines the building blocks that go into making those building blocks.On one level, that’s par for the course. Any commodity producer would like you to associate their otherwise standard product with something more exceptional and valuable; similar thinking underlay Arconic Corp.’s split from aluminum smelter Alcoa Corp. Metallurgical coal may be higher-margin, but it remains a commodity, with all the volatility that entails; the stock has halved so far this year(2). Far better to focus minds on something more stable, like a T-bar.In this case, though, there’s a bigger drama playing out, and the wind turbine is the key character. While Arch’s announcement lacked “coal,” it provided my annual quota of “environmental, social and governance” mentions in the space of a few minutes. Arch is still running its thermal coal mines and likely will for as long as they spit out cash. But competition from cheap shale gas and renewable energy has made thermal coal a tough sell to investors already. Now climate change is making it altogether taboo — regardless of how efficient the miner — as ESG considerations gain traction.The ongoing  rebranding of Big Oil as Big Energy reflects similar dynamics. As the function of energy markets shifts from simply producing ever more tons or barrels or whatnot to optimizing supply, demand and emissions, so the expectations of the capital markets shift, too.  The multiple that makes a stock price is ultimately just some narrative about the future expressed as a number (for an extreme example, see Tesla Inc.). It isn’t just that Arch’s old story no longer convinces; it’s increasingly unacceptable and thereby a burden on, rather than a boost to, value. Becoming truly steel-inspired requires being a touch coal-amnesic.(1) You'll find a couple of instances further down in the safe-harbor language, but who reads that? Of course we all read that.(2) All figures are aggregated for the period 2017 through the first quarter of 2020.(3) Amove of just $25 a ton in the price of metallurgical coal is enough to swing Arch’sEbitda by $175 million, as per Arch Resources' investor presentation on May 15, 2020. Data are pro-forma for the start up of the Leer South project in West Virginia.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Alliance Resource Partners (ARLP) takes additional measures to combat the economic crisis resulting from the outbreak of COVID-19.

Firms fight to get ahead of effects from the coronavirus pandemic using cuts, furloughs and hundreds of millions of dollars in new borrowing.

Peabody Energy (BTU) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Moody's Investors Service, ("Moody's") assigned a Ba3 rating to Arch Resources, Inc.'s ("Arch") proposed $53.09 million tax-exempt revenue bonds to be issued by the West Virginia Economic Development Authority. All other ratings are unchanged.

Shares of Peabody Energy (NYSE:BTU) fell 3.3% in pre-market trading after the company reported Q1 results.Quarterly Results Earnings per share fell 213.91% over the past year to ($1.31), which missed the estimate of ($1.01).Revenue of $846,200,000 less by 32.36% from the same period last year, which beat the estimate of $830,970,000.Looking Ahead Peabody Energy hasn't issued any earnings guidance for the time being.Peabody Energy hasn't issued any revenue guidance for the time being.Details Of The Call Date: Apr 29, 2020View more earnings on BTUTime: 12:02 PM ETWebcast URL: https://attglobal.webcasts.com/starthere.jsp?ei=1302982&tp_key=a489ae5b01Price Action 52-week high: $30.54Company's 52-week low was at $2.51Price action over last quarter: down 66.48%Company Overview Peabody Energy mines and sells coal through approximately 21 coal mines in the United States and Australia. Peabody also markets and brokers coal, both as principal and agent, and trades coal and freight-related contracts through offices in China, Australia, the United Kingdom, and the U.S. The company operates in the following segment: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining and Corporate and Other.See more from Benzinga * Celestica: Q1 Earnings Insights * Recap: Dine Brands Global Q1 Earnings * LivaNova: Q1 Earnings Insights(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Coal Industry Outlook Appears Solid Despite Coronavirus Woes

Peabody Energy Corporation has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Moody's Investors Service, ("Moody's") assigned a Ba3 rating to Arch Resources, Inc.'s ("Arch") proposed $53.09 million tax-exempt revenue bonds to be issued by the West Virginia Economic Development Authority. All other ratings are unchanged.

Peabody (NYSE: BTU) today announced its first quarter 2020 operating results, including revenues of $846.2 million; loss from continuing operations, net of income taxes of $129.3 million; net loss attributable to common stockholders of $129.7 million; diluted loss per share from continuing operations of $1.31; and Adjusted EBITDA1 of $36.8 million.

Investors need to pay close attention to Peabody Energy (BTU) stock based on the movements in the options market lately.

Peabody (NYSE: BTU) announced today that is has changed the format of its upcoming annual meeting of stockholders being held on May 7, 2020 at 9 a.m. (CDT) to a virtual meeting only. Stockholders may attend and participate in the meeting online via live audio webcast, but will not be able to attend the meeting in person.