Coal has had some rough times because of competition from cheap natural gas the past few years. Some of the coal companies have had negative income and even operating profit for multiple years in a row.
You'd think maybe there's be some distressed debt opportunities, but the bonds are extremely expensive.
- Alpha Natural Resources - mines coal in VA, WV, KY (higher cost) in addition to WY. EBIT less than interest expense the past three years. Highest yielding bond 13%.
- Armstrong Energy - Illinois basin coal (better), but operating income hasn't covered interest expense since 2009, yet bond only yields 8.7%.
- Peabody (BTU) - good coal but highest yielding bond less than 7%.
- CLD - Powder River Basin (good coal), but highest yielding bond only 5.6%. Is profitable and covering interest expense though.
- Consol - highest yielding debt 5.5%.
- Westmoreland - yielding about 5%