US coal sector buys back stock to boost investors but shies away from CapEx

摘要

U.S. coal companies are again seeing steady free cash flow, but with little domestic growth expected in coal demand, that cash is largely going to shareholder value initiatives instead of spurring coal development. Despite improvements in seaborne coal markets, relatively few companies are considering greenfield coal mine projects in the U.S. Instead, large publicly traded coal companies have touted a focus on returning cash to shareholders, increasingly through share buybacks, instead of growing volumes after recovering from a wave of bankruptcies largely driven by debt-fueled acquisitions.