Shares of Peabody Energy (BTS.US) and other U.S. coal companies are rising today in pre-market trading, as President Trump signed executive orders aimed at boosting coal production and usage in the U.S. after years of declines. The company's stock is trading 17% higher ahead of Wall Street’s opening. Trump emphasized that coal is a key strategic energy resource, resilient against all factors ranging from climate to war. Recently, the company announced it is considering an offer to acquire coal assets from Anglo Gold for $3.7 billion.
Peabody Energy warned in February that U.S. coal demand had still not seen the expected rebound that could come from rising domestic energy needs. The company also continues to maintain ties with Chinese entities. Peabody Energy reported that in 2024, China increased its total coal imports to 543 million metric tons, a 14% rise compared to 2023. Redirecting production to the domestic market could serve as an important strategic catalyst for the company, necessary for a recovery.
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The company’s stock is likely to rebound strongly today from its lowest levels since late 2021–early 2022. However, it still trades nearly 80% below the 200-day EMA, which stands at around $20.
Source: xStation5
The company’s profits and margins have come under significant pressure in recent quarters. Redirecting production toward the U.S. market could potentially improve its profitability.
Source: XTB Research, Bloomberg Finance L.P.
