US Power-Plant Rules Threaten Grid Reliability, Peabody CEO Says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 02 2024
0mins
Source: Bloomberg
- Peabody Energy's Concerns: Peabody Energy, the largest US coal producer, warns that new federal regulations aimed at reducing emissions from power plants could threaten grid reliability due to increased electricity demand.
- EPA Regulations: The Environmental Protection Agency introduced regulations requiring coal-fired power plants to capture most of their carbon dioxide emissions by 2039 or face closure as part of President Joe Biden's climate change efforts.
- Impact on Power Supply: Peabody's CEO expressed concerns that potential plant closures may reduce electricity supply and questioned the EPA's authority in implementing these rules.
- Industry Response: Utility company American Electric Power Co.'s CEO mentioned the possibility of not complying with the new regulations, highlighting the challenges posed by growing energy demand from various sectors like manufacturing, electric vehicles, data centers, and AI centers.
- Grid Reliability Concerns: The surge in power demand from emerging technologies raises worries about grid reliability and the adequacy of existing baseload generation to support this growth.
Analyst Views on BTU
Wall Street analysts forecast BTU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BTU is 31.67 USD with a low forecast of 29.00 USD and a high forecast of 34.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 38.520
Low
29.00
Averages
31.67
High
34.00
Current: 38.520
Low
29.00
Averages
31.67
High
34.00
About BTU
Peabody Energy Corporation is a coal producer, providing essential products for the production of reliable energy and steel. The Company owns interests in coal mining operations located in the United States and Australia, including interests in Middlemount Coal Pty Ltd. The Company engages in the direct and brokered trading of coal and freight-related contracts. Its segments include Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other. The Seaborne Thermal operations consist of mines in New South Wales, Australia. The mines in that segment utilize both surface and underground extraction processes to mine low-sulfur, high Btu thermal coal. The Seaborne Metallurgical operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, the United States. The Company owns the southern portion of the Wards Well tenement.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
