why northern tier energy, consol energy, and peabody energy made huge moves this week

Why Northern Tier Energy, CONSOL Energy, and Peabody Energy Made Huge Moves

This Week

This was another busy week for the market, with earnings season overflowing a seemingly unending torrent of news to digest. That

earnings news was a key fuel behind the biggest stock moves in the energy sector. The biggest movers, according to S&P Capital IQ data,

were Northern Tier Energy (NYSE: NTI), CONSOL Energy (NYSE: CNX), and Peabody Energy (NYSE: BTU).

What:Refining MLP Norther Tier Energy (NYSE: NTI) leapt more than 11% this week.

So What: Key driver: Western Refining

offered to buy all of the outstanding units of Northern Tier Energy that it doesn’t already own in a $2.5 billion deal

Western Refining currently owns 38% of NTI’s common units and 100% of its General Partner

Now What: Western Refining sees the

deal simplifying its corporate structure while also enhancing value for investors in both companies

Key takeaway: Given that Western Refining already owns a large stake in NTI, this deal is likely as good as done

What:Natural gas and coal producer CONSOL Energy (NYSE: CNX) slumped more than

30% this week.

So What: Key driver: CONSOL

reported a much wider-than-expected loss of $0.28 per share, missing the consensus estimate by $0.23 per share

CONSOL’s natural gas business struggled amid low gas prices

Now What: The company’s coal

business didn’t fare much better, with weak demand for coal persisting

Key takeaway: With both of its key commodities under pressure, investors had no reason to stick around

What:Coal producer Peabody Energy (NYSE: BTU) plunged more than 47% this week.

So What: Key driver: Peabody

reported an abysmal quarter, losing $8.13 per share

On top of that, the company now anticipates an even weaker outlook for the coal market

Now What: Making matters even worse,

a rival coal producer terminated its debt swap deal, likely sending it into bankruptcy

Key takeaway: Investors are beginning to realize that Peabody’s only way out might be through bankruptcy, rendering its stock worthless

This could be the next billion-dollar iSecret