A Closer Look At Consolidation in the Coal Industry Today

Arch Coal, Inc. (NYSE:ACI) is acquiring International Coal Group (NYSE:ICO) for $3.4 billion.

About the companies:

Arch Cole, Inc.: Its market capitalization is $5.5 billion, its trailing price-to-earnings ratio is 35, it earned $0.97 per share last year, and it pays a dividend of $0.40 per share.  The stock has traded in the range of $19.09 to $35.99 over the past 52 weeks and most recently traded at $34.20 per share.

The company mines, processes, and markets low sulfur coal from surface, underground, and auger mines located in the western United States and in the Central Appalachian region.  The Company markets its coal primarily to electric utilities.

International Coal Group, Inc.: Its market capitalization is $2.8 billion, its trailing price-to-earnings ratio is 95.9, and it earned $0.15 per share last year.  The company’s stock has traded in a 52-week range of $3.59 to $14.46 per share.  The shares most recently traded at $14.39.  Shares are up $3.37, or 30%, today on news of its acquisition by Arch Cole, Inc.

The company mines coal.  The Company operates in northern and central Appalachia and the Illinois basin.

Other companies that operate in this industry include:

Patriot Coal Corporation (NYSE:PCX), Alpha Natural Resources (NYSE:ANR), Massey Energy Company (NYSE:MEE), CONSOL Energy Inc. (NYSE:CNX), Peabody Energy Corporation (NYSE:BTU), Alliance Resource Partners (NASDAQ:ARLP), James River Coal Company (NASDAQ:JRCC), Alliance Holdings GP (NASDAQ:AHGP), and Oxford Resource Partners (NYSE:OXF).

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance.  All data are assumed to be accurate.

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