Warm winter weather and low natural gas prices have gutted the coal market in the United States. Utilities like
American Electric Power (NYSE:
AEP) are switching over as much production to natural gas as they can, while railroads from
Union Pacific (NYSE:
UNP) to
CSX (NYSE:
CSX) are reporting sharp drops in coal carloads. That is leading coal producers like
Peabody Energy (NYSE:
BTU) and
Cloud Peak Energy (NYSE:
CLD) to cut production, and leading investors to fret about the near-term outlook for
EBTIDA.
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