NEW YORK (TheStreet) -- Shares of Peabody Energy Corp. (BTU) are down 6.67% to $7.98 as natural gas prices fell to nearly a two-year low Monday, increasing competition with coal for electricity generation, the Wall Street Journal reports.
Natural gas for January delivery was down 33.1 cents, or 9.5%, at $3.133 a million British thermal units on the New York Mercantile Exchange. It was the biggest one-day percentage loss since February, and the lowest intraday price since January 2013. As of 11:37 a.m in New York, it was down 7.45%.
Separately, U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday, Reuters reported.
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Peabody Energy is among the leaders in mining coal from federal land in the West, Reuters added.
TheStreet Ratings team rates PEABODY ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEABODY ENERGY CORP (BTU) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."