Energy Sector Review: Arch Coal COO Comments, Global Oil Demand
Arch Coal Inc (NYSE:ACI): COO John W. Eaves commented: “Given current weak coal market conditions, we remain acutely focused on managing our controllable costs, eliminating discretionary capital spending across the organization and delivering additional synergies, including further supply rationalization. We’ve previously announced that the longwall at our Dugout Canyon mine in Utah would be idled in 1H of 2012, and we’ve since reduced the workforce at our operations in eastern Kentucky. These actions, along with additional streamlining efforts, should result in volume reductions of more than 5M tons for Arch in 2012.”
The shares closed at $14.39, down $1.19, or 7.64%, on the day. Its market capitalization is $3.05 billion.
Exxon Mobil Corporation (NYSE:XOM): The International Energy Agency said global oil demand will grow by less than 1% this year, lowering its global demand growth forecast by 250,000 barrels per day to 800,000 bpd, reported Reuters.
The shares closed at $83.80, down $1.08, or 1.27%, on the day. Its market capitalization is $396.71 billion.
Chevron Corporation (NYSE:CVX): Buckeye Partners (NYSE:BPL) announced that its subsidiary, Buckeye Tank Terminals LLC, has signed a definitive agreement with Chevron U.S.A. (NYSE:CVX) to acquire a marine terminal facility for liquid petroleum products in New York Harbor for $260M in cash. The facility, which sits on approximately 250 acres on the Arthur Kill in Perth Amboy, NJ, has over four million barrels of tankage, four docks, and significant undeveloped land available for potential expansion. The acquisition, which is subject to certain closing conditions, is expected to close in the latter half of the second quarter of 2012.
The shares closed at $105.28, down $1.09, or 1.02%, on the day. Its market capitalization is $209.66 billion.
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