This week, we spoke to a few analysts about the state of Coal, which is doing quite well in this economy.

Analyst David Khani gave us his pick in the coal area: CONSOL Energy (CNX):

TWST: What puts CONSOL Energy at the top of the heap?

Mr. Khani: It has great coal reserves within the Northern Appalachia region and owns most of its coal in-fee (no royalties). They are a very low cost producer, and they are at the edge of a 30%-40% production growth phase. The last part of it is that they own 80% of a great natural gas business. That business is also a very high margin business with 15% plus annual production growth. They are unearthing new play types and have a tremendous amount of undeveloped acreage that should give them very visible growth probably for the next 10 to 15 years.

For the full interview with Mr. Khani, including a complete overview of the coal space and more stock picks, click here.

For the TWST interview with Thomas Hoffman, former CEO of CONSOL, click here.

This entry was posted on Thursday, July 10th, 2008 at 12:03 pm and is filed under Natural Resources Stocks. You can follow any responses to this entry through the RSS 2.0 feed.