Higher Regulatory Scrutiny Hits Patriot Coal (PCX) and Other Coal Stocks (MEE, BTU)

Coal stocks are under heavy pressure today after Patriot Coal Corp (NYSE: PCX) posted a second quarter loss of $0.15, and noted that volumes were negatively impacted by increased regulatory activity and more conservative interpretations of existing regulations. Patriot Coal expects a heightened level of regulatory oversight will continue through the balance of the year, resulting in lower production and increased cost per ton in both of its operating segments.

Shares of Patriot Coal are down 10.8 percent to $12.19 today.

The news has also hit shares of Massey Energy Co. (NYSE: MEE), which is down 6 percent. Peabody Energy Corp. (NYSE: BTU) is down 2.8 percent.

Much of the heightened level of regulatory oversight resulted from Massey Energy's West Virginia mine explosion which killed 29 men.

Massey Energy is set to report its own earnings after the market closes today and will reveal how much of the deadly explosion impacted its financial status.

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