Peabody Insiders Invest in Coal Company

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Jan 23, 2015
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It should come as no surprise to anyone reading this when I say that energy is a hot topic these days – but it is almost always in connection with oil and gas and the dramatic decline in prices at the pump.

While the attention of the rest of the world has been on that segment of the energy sector, some insiders at Peabody Energy Corp (BTU, Financial), a St. Louis-based private-sector coal company, have been buying shares in their company recently while the price has been down.

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Coal has been an important component in electricity generation over the years, and Peabody produces enough coal to generate 10% of the electricity in the United States and 2% of electricity throughout the world.

However, electricity providers have been actively seeking alternative sources for power generation, and some seem to be gaining momentum. On Jan. 22, the Houston Chronicle reported that wind generated more than 10% of Texas’ electricity in 2014. Coal still accounted for more than one-third of the state’s electricity, but wind’s contribution was nearly double what it had been just five years earlier.

Natural gas continued to be the leading electricity generator in Texas.

In the United States in 2013, coal held the top spot among electricity generators while natural gas was second.

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Eight Peabody insiders reported holdings of at least 70,000 shares in the company on January 2.

Chairman and CEO Gregory H. Boyce held the most shares – 144,836 – but was followed closely by two other insiders, Chris Hagedorn (group executive and chief development officer) and Charles Meintjes (president – Australia). Hagedorn held 135,935 shares; Meintjes held 134,602 shares.

Glenn L. Kellow, president and CEO-elect, was just shy of six digits with 97,798 shares in his portfolio. Andrew P. Slentz (EVP and chief human resources officer) held 86,394 shares, and Kemal Williamson (president – Americas) held 80,734.

Jeane L. Hull (EVP and chief technical officer) held 70,985 shares, and Michael C. Crews (EVP and CEO) held 70,452.

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Only one guru traded in BTU stock in the fourth quarter. Manning & Napier Advisors, Inc reported buying 7,666,361 shares.

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