A JP Morgan report that suggested $5-a-gallon gas could be coming in the near future prompted a brief mid-day run on natural gas stocks Oct. 11, a run that also lifted coal stocks.
Columbus, OH-based Oxford Resource Partners (NYSE: OXF, http://www.oxfordresources.com/) produces steam coal and surface mined coal in Ohio. The company markets its coal primarily to utilities with coal-fired, base-load scrubbed power plants under long term contracts. As of January 2011 OXF had 21 active surface mines and two river terminals located in eastern Ohio and western Kentucky. As of December 31, 2010 OXF owned and/or controlled 93.5 million tons of coal reserves. OXF’s 52-week trading range is $6.50-$19.88. It closed Oct. 11 at $9.70, up 22 cents, with a market cap of $205 million.
Richmond, VA-based James River Coal Company (Nasdaq: JRCC, http://www.jamesrivercoal.com/) processes and sells thermal and metallurgical coal through eight active mining complexes in eastern Kentucky, southern West Virginia and southern Indiana. As of December 31, 2011 JRCC’s eight mining complexes included 25 underground mines, 12 surface mines and 14 preparation plants. As of December 31, 2011, it controlled 362.8 million tons of probable coal reserves. As of December 31, 2011, it produced 10.3 million tons of coal, including 0.7 million tons of coal produced in its mines that are operated by contract mine operators and it purchased another 1.6 million tons for resale. JRCC’s 52-week trading range is $1.68-$11.52. It closed Oct. 11 at $3.74, up 58 cents, with a market cap of $134 million.
Lexington, KY-based Rhino Resource Partnership (NYSE: RNO, http://www.rhinolp.com/) controls and operates coal properties and related assets. It markets its steam coal to utilities as fuel for their steam-powered generators. Customers for its metallurgical coal are primarily steel and coke producers. RNO’s diverse asset base includes coal reserves in central and northern Appalachia, the Illinois basin and the western bituminous region. RNO’s 52-week trading range is $12.61-$22.68. It closed Oct. 11 at $16.10, up 8 cents, with a market cap of $446 million.
And some of the small cap natural gas companies we have selected randomly include:
Denver-based Bonanza Creek Energy Inc. (NYSE: BCEI, http://www.bonanzacrk.net/) is an independent oil and natural gas company. Its interests are focused in southern Arkansas of the Mid-Continent region, and the Wattenberg field and North Park basins of the Rocky Mountain region, as well as assets in the San Joaquin Basin of California. When we last loked at BCEI in early June its market cap was $600 million and it was trading for $15.20. It closed Oct. 11 at $22.87, down 22 cents on the day. Its market cap is now $915 million.
Oklahoma City-based Panhandle Oil and Gas (NYSE:PHX, http://www.panhandleoilandgas.com/) acquires and develops oil and natural gas properties primarily in Arkansas, New Mexico, North Dakota, Oklahoma and Texas. The company was founded in 1926. PHX stock was downgraded from Buy to Hold by TheStreet Ratings on May 2 due to “weaknesses including the generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.” On June 12 its market cap was $229 million and it was trading for $27.74. It closed Oct. 11 at $29.64, up 4 cents on the day. Its market cap is now $244 million.