Peabody Energy (NYSE:BTU) shares moved higher in after-hours trading Wednesday, gaining roughly 7% after comments from President Donald Trump that signaled renewed federal support for the coal sector.
Speaking at a "Champion of Coal" event held in the East Room, the president made several declarations favorable to coal producers and coal-fired power generation. He characterized coal as "the most dependable form of energy we have" and predicted that coal power generation would increase by approximately 25-30% this year.
In remarks that also addressed federal energy policy choices, the president said his administration would likely forgo wind farm development for the next four years. He pointed to specific actions taken by the Tennessee Valley Authority to keep two coal-fired plants operating, naming the Cumberland and Kingston facilities as examples of sites that will remain in service.
Beyond plant preservation, the president said the Department of Energy would be issuing funds to keep additional coal plants open. He additionally noted that the United States is "exporting coal all over the world" and asserted that tariffs have helped reduce the trade deficit by 78%.
Peabody Energy, identified as one of the largest domestic coal producers, saw its stock price react positively to the remarks. Market movement in the aftermath of the event reflected investor interest in potential policy measures that could materially affect coal companies' operating environments and revenue prospects.
The comments delivered at the East Room event comprised a compact set of policy signals - a projected uptick in coal generation, a stated preference against wind expansion over the near term, identified federal and regional actions to sustain coal plants, and an assertion about the impact of tariffs on trade balances. The market's immediate response was a higher share price for Peabody Energy in after-hours trading.
The facts reported here are limited to the statements made during the event and the observed market reaction for Peabody's stock following those statements. Where details were not provided at the event, this report does not extend beyond the information that was publicly stated.