Bloomberg News

U.S. Coal Miners Rise After Chesapeake Cuts Gas Production

January 23, 2012

(Updates with closing share prices in second paragraph.)

Jan. 23 (Bloomberg) -- Alpha Natural Resources Inc. and Patriot Coal Corp. were among U.S. miners of the fuel that rose after Chesapeake Energy Corp., the country’s second-largest natural-gas producer, said it would cut production.

Alpha gained 4.3 percent to $20.76 in New York. Patriot jumped 7.3 percent and James River Coal Co. climbed 7.1 percent.

Investors see rising gas prices boosting sales of coal burned by utility companies to generate electricity, said Lucas Pipes, an analyst at Brean Murray Carret & Co. in New York.

“Thermal coal comparatively looks a little better today,” Pipes said in a telephone interview. Investors are betting “the worst might be over” for coal producers, he said.

Natural-gas futures climbed as much as 10 percent after Chesapeake said today it will “immediately curtail” 500 million cubic feet a day of output and reduce planned investments in gas fields by 70 percent from 2011 levels.

--With assistance from Christine Buurma in New York and Mathew Carr in London. Editors: Simon Casey, Steven Frank

To contact the reporter on this story: Sonja Elmquist in New York at selmquist1@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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