U.S. court move to block emission plan fails to sustain coal shares' boost (updated)

Natural Resource Partners

10/02/2016 16:33

(Updates share movement; adds context, link to graphic) 
    NEW YORK, Feb 10 (Reuters) - The U.S. Supreme Court's 
decision to block federal regulations to curb carbon dioxide 
emissions failed to give a sustained boost to shares of the 
long-battered coal sector on Wednesday. 
    Shares of Cloud Peak Energy Inc  CLD.N  was up 2.7 percent 
after surging when the market opened. After initially trading 
higher, Consol Energy Inc  CNX.N  stock slipped 2.3 percent, and 
Peabody Energy Corp  BTU.N  fell 0.9 percent. 
    The Thomson Reuters U.S. coal index  .TRXFLDUSPCOAL  was off 
3 percent against a 0.7 percent rise for the broader S&P 500 
index  .SPX . 
    The court's 5-4 ruling on Tuesday delivered a major blow to 
President Barack Obama by blocking the centerpiece of his 
administration's strategy to combat climate change.  urn:newsml:reuters.com:*:nL2N15O2VR 
    The decision granted a request by 27 states and various 
companies and business groups to halt the administration's Clean 
Power Plan, which also mandates a shift to renewable energy away 
from fossil fuels. 
     The states, led by coal producer West Virginia, oil 
producer Texas and several major business groups in October 
began the legal effort to block the Obama administration's plan. 
The states said the emission curbs would devastate their 
economies. 
    Since Obama announced the emission program on April 3, the 
Thomson Reuters U.S. coal index has fallen about 76 percent amid 
a prolonged industry downturn.  
    The industry is suffering from a glut of cheap natural gas, 
coal's primary competitor for power generation, and oil. Miner 
Arch Coal Inc  ACIIQ.PK  filed for bankruptcy last month. 
    For example, Peabody shares were trading at $3.35, a tiny 
fraction of their 52-week high of $120.30 reached in February 
2015. 
 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
U.S. coal and Obama's Clean Power Plan     http://tmsnrt.rs/1TSrRyJ 
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> 
 (Reporting by Lewis Krauskopf Editing by W Simon and Lisa Von 
Ahn) 
 ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters 
Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, 
Twitter: @LKrauskopf)) 
 
Keywords: USA COURT/CARBON