Commentary

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IEEFA Puerto Rico: Electric Company, Off the Mark on Its In-House Outlook, Is Spending Twice as Much on Fuel Than Projected

PREPA’s Low-Balling of Oil Prices Will Drive Power Rates Higher; FY 2017 Total May Exceed Estimate by $600 Million; Agency Forecast Ignored Professional Consensus

The Puerto Rico Electric Power Authority is seriously underestimating the price of oil in the fiscal-year budget it put into effect on July 1. The result is likely to be higher-than-predicted and increasingly unaffordable power rates for residents and businesses of Puerto Rico, an island commonwealth that gets most of its electricity from oil-fired generators. […]

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IEEFA Europe: As Global Climate Pact Takes Force of Law, a Bleak Outlook for Coal-Fired Power

Paris Agreement Has Made Recovery of the Traditional Electric Generation Sources Unlikeley

What happened in Morocco last week underlines the extreme and now persistent risks to the economics of coal-fired power plants across Europe and further afield, raising the prospect of further write-downs by utilities. Some 191 countries signed the Paris Agreement in December, but a certain threshold had to ratify before it entered into force. That […]

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IEEFA Report: Three Timely Takeaways on 2016 Global Energy Transformation

An Acceleration to Renewables, Faster-Than-Expected Shifts Regionally and Nationally, Growing Risk for Investors Who Lag Behind

Three notable takeaways emerge from the rapid transformation of the global energy economy, as we detail in a new paper we published today as the landmark Paris Agreement officially goes into effect. The global transition to renewables is accelerating. Change is happening faster than expected. Those left behind in this transition face growing financial risk. […]

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IEEFA West Virginia: A Utility Double-Talks Itself Into a Corner as It Seeks a Ratepayer Bailout for Its Corporate Owner

Mon Power Says It Has an Abundance of Generation Capacity. Mon Power Also Says It Needs to Buy a Failing Coal Plant From FirstEnergy.

After gaining approval from regulators for a $600 million bailout in Ohio, FirstEnergy turns to West Virginia for its next ratepayer-subsidized relief act. The company is orchestrating the sale of its deregulated Pleasants coal plant on the Ohio River just north of Parkersburg to its regulated West Virginia subsidiary, Mon Power (regulated is code for […]

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IEEFA Update: Peabody Investors Are in for a Bumpy Ride

Emerging From Bankruptcy, Coal Companies Are Now Entering a New Cycle of Financial Stress

Investors are in for a bumpy ride as Peabody Energy fashions its reorganization and emerges from bankruptcy. The company’s stock price has been volatile over the past two weeks, capturing the attention of hedge fund investors who have acquired a 5 percent stake in the company.     The stock rose from $1.74 per share […]

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IEEFA Exxon: Telltale Crossover in Late 2014 Marks Where a Major Oil Stock Began to Go South

A Decoupling From the Larger Stock Market 2 Years Ago Portends a Future in Which the World’s Biggest Oil Company Will Be Smaller and Will Not Pay Out as Much in Shareholder Distributions

The world is moving in fits and starts but with gathering momentum toward a more diversified, low-carbon energy mix. The evidence is all around us. One exhibit, of many, is in the report we published this week—“Red Flags on Exxon: A Note to Institutional Investors”—which includes the chart here: ExxonMobil Financial Performance, 2006 – 2015 […]

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IEEFA Europe: Seeds of an Industrial Alternative to Germany’s Regional Lignite Economies

In the Shadow of a Fading Industry, a Newer One Grows

In the same week that Germany’s economy minister, Sigmar Gabriel, ruled out a coal phase-out timeline until alternatives opportunities are in place for affected communities, Daimler broke ground on a major new electric vehicle battery factory 30 kilometers from the 1,500-megawatt Schwarze Pumpe power plant in the lignite mining heartland of Lausitz. Gabriel on Tuesday […]

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IEEFA Report: Red Flags on ExxonMobil: Core Financials Show a Company in Decline

Potentially Irreversible Slide; Falling Revenues, Rising Debt, Shrinking Capex, Weak Cash Balances Add to Growing Reputational Risk Tied to Climate-Change Controversy; ; Institutional Investors Owe Their Shareholders a Fiduciary Review

CLEVELAND, Oct. 26, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis (IEEFA) published a report today that indicates deep financial weaknesses at ExxonMobil (XOM) and suggests the company is in potentially irreversible decline. The report—“Red Flags on ExxonMobil (XOM)”—by IEEFA Director of Finance Tom Sanzillo, cites key metrics that include a 45 […]

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IEEFA Asia: Adani, in Latest Report to Investors, Skips Mention of Its Australian Coal Project

As Energy Markets Continue to Evolve, Less Likelihood Carmichael Mine Will Be Developed

Adani Enterprises Ltd—the 100 percent owner of Adani Mining Australia Pty Ltd, the entity that owns the massive Carmichael open-cut coal proposal—is reporting a net loss of US$11 million for the three months to September 2016. This comes on the back of a 33 percent year-on-year decline in operating profits and an 18 percent rise […]

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IEEFA Op-Ed: Coal Will Not Recover

Falling Prices for Other Fuels, Not Regulation, Is the Problem

From the Pittsburgh Post-Gazette: Coal production in the United States has declined enormously in recent years due to the simple reason that the coal-fired power industry is producing less of the country’s electricity than ever. As recently as 10 years ago, coal-fired power plants provided half of America’s power needs. Today that number is closer […]

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