Peabody Energy Stock News

Coal prices have risen by over 100% this year as Russian and Indonesian exports decline.

Nomura: Where Do We Even Begin With These Broken Markets Picking up where he left of with his " stuff is beginning to break " magnum opus yesterday, this morning Nomura''s Charlie McElligott writes that on top of the already well-established macro supply-demand “inflation shock” catalysts of the past 2 year period, the Ukraine-linked Commodities price/collateral/dollar funding squeeze -> "margin-call exercise" (which left a prominent Chinese trading tycoon significantly poorer after billions in margin calls ), further amplifies the recent price-action in pockets of Energy, Metals and Ags. As we discussed on Monday, it took just hours to get confirmation of Zoltan''s commodity producer scenario materializing, after Peabody Energy confirmed some $534mm of margin losses on short Coal hedges (after requiring a new Credit line drawdown that went public), while overnight, LME Nickel goes suspended yet again (now cancelling trades) as the purported Xiang Guangda / Tsingshan short-position was estimated at upwards of $12B MtM loss (the price is, well, all over the place but a record +250% 2 day rally at the highs)… ... with no physical available into an already airtight market, and his various banks and Chinese brokers struggling to meet their margin-calls, despite as noted last last night, the LME giving one of the "Big 4" Chinese banks reprieve of additional time to come up with funds, supposedly with nothing stopped-out yet, although a later follow-up headline... *CHINA ASKS BANKS TO REPORT DERIVATIVES EXPOSURE AS MARKETS REEL ... suggests that not all is peacy in China.

Peabody Energy received a margin call because its core product gained value too quickly. Here''s what that means for investors in this stock and, possibly, other names.

CSX Corporation (NASDAQ:CSX) with the stream of -1.12% also noticed, India Peabody Energy Corporation (NYSE:BTU) encountered a rapid change of -16.51% in the last hour of Monday’s trading session. CSX … The post Hot Stock’s Highlights: CSX Corporation (NASDAQ:CSX), Peabody Energy Corporation (NYSE:BTU) appeared first on Stocks Equity .

One Of China''s Largest Banks Unable To Pay Margin Call After Today''s Monster Nickel Squeeze Around the time Peabody was served with a $ 534 million margin call on its hedging coal futures short, which it funded with a new $150MM unsecured (10%) revolver from Goldman Sachs, one of China''s largest banks was also served with a margin call for hundreds of millions of dollars on a nickel short gone terribly bad after the price of Nickel did… well this: However, unlike Peabody, a unit of China Construction Bank Corp - one of China''s "Big Four" banks - was given additional time by the London Metal Exchange to pay hundreds of millions of dollars of margin calls it missed Monday amid an unprecedented spike in nickel prices. The reprieve from the LME - which just last week sent out thousands of erroneous margin calls on metals contracts - means that the unit, called CCBI Global Markets, is not formally in default, Bloomberg reported citing sources. The details of the non-payments aren''t quite clear: Bloomberg notes that the deferred default "isn’t necessarily an indicator of any problems at the parent company" although Bloomberg may be merely trying not to antagonize a major client.

Gainers: Houston American Energy (HUSA) +338%. Marine Petroleum (MARPS) +78%. Nine Energy Service (NINE) +78%. NOV (NOV) +17%; Transocean (RIG) +13%. Losers: Peabody Energy (BTU) -16%.

Nomura: Stuff Is Beginning To Break One look at today''s absolutely bananas explosion in LME Nickel prices which soared 82% in one day to a record $52,700 … ... shows that commodities inflation panic was in full-swing earlier overnight, where war-related price-shocks are trading through what Nomura''s Charlie McElligott writes was “escape velocity” on likely stop-outs from “Shorts” (think commodity producers and traders who were short futures to hedge prices, similar to the margin call experienced by Peabody), and with the market seemingly realizing there is little that CB monetary policy can do to control it. Picking up on Zoltan Pozsar''s latest comments about a fractured commodity market , where "toxic" Russian commodities are no longer deemed viable collateral, potentially setting the stage for the next liquidity crisis, McElligott writes that "one doesn’t need to stretch their imagination too far to see how a commodities trading house that is long underlying / short future is a rough equivalent to a Fixed-Income RV trade which as per the Mar 2020 example can see this “basis” go wrong-way FAST when there is a shock removal of liquidity (FX reserves in system sudden decline from the aggregate of the SWIFT and Bank of Russia sanctions, plus the market’s unwillingness to transact abd the drawdown on corporate Credit lines) and this knock-on matters tremendously when we think about the de-leveraging risk via “ Commodities as Collateral ” unwind potential" ( more here ).

Coal Titan Peabody Hit With Margin Calls On Sunday, we published the latest note from Credit Suisse funding guru Zoltan Pozsar in which he explained why "toxic" commodities originating in Russia and used as collateral in various funding chains (which he likened to a downgrade of a CDO tranche from AAA to junk overnight, as buyers suddenly balk at any Russian exports), could set the stage for a "Classic liquidity crisis." Among the many topics covered in the expansive note, Pozsar touched on the threat of margin calls facing producers (who are long physical commodities in the spot market, and short futures to hedge exposure), and mused "Does going from AAA to junk trigger margin calls? You bet!" This is what we said last night : Pozsar points to Glencore''s iconic - if criminal - founder, whose Marc Rich’s legacy in the annals of global finance was to introduce the concept of leverage and borrowed money into commodity trading. It’s simple: a bank lends you the money to lease ships and buy commodities to deliver them sometime and someplace in the future at a locked-in price (via short futures).

In a release from Peabody (BTU) Monday, management disclosed the need to take on additional financing to post collateral on hedges

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Peabody Energy Corp. shares fell 7.7% Monday after the company said it posted $534 million since Dec. 31 to satisfy margin requirements. The company also announced a $150 million unsecured multiple draw credit facility with Goldman Sachs Group Inc. . The financing will support Peabody Energy''s potential near-term liquidity requirements in case of of additional increases in underlying coal prices. Peabody Energy said high demand and tight supply for coal has been amplified by the Russian-Ukrainian conflict resulting in "unprecedented upward volatility" in pricing of Newcastle coal, the price benchmark for seaborne thermal coal in the Asia-Pacific region. Other than 1.9 million metric tons at its Wambo Underground Mine in Australia priced at $84 per metric ton, export sales from Peabody''s seaborne thermal segment are largely unpriced and will benefit if the current pricing environment persists, Peabody said. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move.

Peabody Energy Corp. BTU, -8.16% shares fell 7.7% Monday after the company said it posted $534 million since Dec. 31 to satisfy margin requirements. The company also announced a $150 million unsecured

Gainers Indonesia Energy Corporation Limited (NASDAQ: INDO ) shares jumped 101.8% to close at $40.77 on Friday after jumping 39% on Thursday. Mexco Energy Corporation (NYSE: MXC ) surged 84.5% to settle at $24.94 on continued momentum. Imperial Petroleum Inc. (NASDAQ: IMPP ) gained 53.6% to close at $3.38. VEON Ltd. (NASDAQ: VEON ) shares jumped 52.1% to close at $0.40 on Friday after dropping 41% on Thursday. Marine Petroleum Trust (NASDAQ: MARPS ) rose 35.3% to settle at $7.13 amid the Russia-Ukraine conflict, which has caused supply concerns. Origin Agritech Limited (NASDAQ: SEED ) gained 35.2% to close at $9.60. New Concept Energy, Inc. (NYSE: GBR ) surged 26.3% to settle at $3.80. Sweetgreen, Inc. (NYSE: SG ) jumped 25.4% to close at $26.78 after the company reported better-than-expected Q4 sales results and issued FY22 sales guidance above analyst estimates. Sidus Space, Inc. (NASDAQ: SIDU ) shares gained 22.1% to close at $5.48. Sidus Space reported a strategic partnership with Aitech Systems to support LizzeSat Constellation.

Coal Goes Parabolic Before the current war in Ukraine, there was already upward pressure on coal, due to a combination of the lockdowns limiting production in 2020 plus a misguided focus renewable energy, as Noah Rothman noted last October: The sloppy, blinkered effort to transition away from fossil fuels to hypothetical sources of power that cannot meet the energy consumption needs of the planet due to the constraints imposed on them by the laws of physics is an obstacle to meeting “newly minted environmental, social and governance standards for clean energy.” And a prime beneficiary of that was Peabody Energy Corporation (NYSE: BTU ), whose shares spiked that in October after the company announced that its coal revenue in Q3 would be the highest in seven quarters and it offered bullish forward guidance. BTU shares spiked again last month, as the company posted another monster quarter in Q4. Russia''s invasion of Ukraine--and the extraordinary sanctions levied against Russia in response--will likely add fuel to this quarter.

Investors target stocks that are witnessing a bullish run. Some of the stocks seeing price strength are LNTH, TMST, AA, ATI and BTU.