Bonds Story Archives - West Virginia Public Broadcasting

State Blacklisted BlackRock. But Guess What It’s Financing?

A report earlier this month from the Sierra Club shows that in 2022 and 2023, BlackRock bought more than $45 million in bonds issued by EQT Corporation.

One of the banks barred from state contracts by the Treasurer’s Office is financing the Mountain Valley Pipeline.

In 2022, following the enactment of Senate Bill 262, Treasurer Riley Moore issued the first list of “restricted financial institutions” he determined were not friendly to fossil fuels.

One of those was BlackRock. Moore accused the firm of putting China’s interests over West Virginia’s and encouraging companies to move away from coal, oil and natural gas.

“Any company that thinks Communist China is a better investment than West Virginia energy or American capitalism clearly has a bad strategy,” Moore said in 2022. “We will continue to give our state’s business to people who aren’t simultaneously trying to destroy our economy.”

Two years later, BlackRock is still on the list.

“It’s one of the largest shareholders of publicly traded fossil fuel companies on the planet,” said Ben Cushing, director of the Sierra Club’s Fossil Free Finance campaign.

A report earlier this month from the Sierra Club shows that in 2022 and 2023, BlackRock bought more than $45 million in bonds issued by EQT Corporation.

Not only is EQT one of the largest gas producers in Appalachia, it also is poised to be the biggest user of the Mountain Valley Pipeline.

Once the pipeline becomes operational this year, EQT plans to use it to ship 1.2 billion cubic feet of gas per day 303 miles from north central West Virginia to southern Virginia. That’s two-thirds of the pipeline’s total capacity.

Environmental groups and landowners have long opposed the pipeline. The state’s leading elected officials have been its biggest champions.

Cushing said BlackRock’s earlier public commitments to address climate change may have made it a target.

“Lots of speculation, I suppose as to why they’ve been particularly attacked, I think, because they are the biggest and one of the best well, well known and that they have at least nominally stated their commitment to climate action, has put them in the crosshairs of this climate denial movement,” he said. “But the fact remains that many of those commitments have not actually been implemented, and they continue to be one of the largest investors in fossil fuels in the world.”

Five banks are on the original list. Moore sent letters this week to six more. They have 45 days to prove they’re not boycotting fossil fuels, or they will be added to the list.

Jared Hunt, a Treasury spokesman, said SB 262 allows any company to petition the Treasurer to be removed from the list. None has asked to be removed, Hunt said.

Voters in West Virginia Reject $5.8 Million Bond for New School

A bond that would build a new school has been rejected for the second time this year by voters in West Virginia.

The Bluefield Daily Telegraph reports Monroe County voters rejected the $5.8 million bond with Saturday’s unofficial total of 1,223 to 877. The bond would’ve helped build a new school for Peterstown elementary and middle school students.

The county now loses $16 million from the state Building Authority that could’ve been used to fund most of the $24 million school.

School board member Andrew Evans says “residents were obviously in an anti-tax mood when they hit the polls,” as the County Commission established a $100 ambulance fee in August on every household before the referendum.

Voters rejected a $10 million bond in June that would’ve built the school and address other facility needs.

Alpha Transfers Mining Properties to Lexington Coal

Alpha Natural Resources has announced the transfer of mostly idle mining properties in West Virginia, Kentucky and Tennessee to Lexington Coal Co., related ongoing royalty payments and reclamation equipment.

Alpha, based in Kingsport, Tennessee, says that eliminates self-bonding in West Virginia nine years early.

The company emerged from bankruptcy reorganization last year.

Lexington Coal CEO Steven Poe says the transfer includes some 250 permits, five active mines in West Virginia and Kentucky and bonding representing $192 million.

The companies say Kentucky-based Lexington will receive $199 million in cash and $126 million in installments toward bonding, reclamation, water treatment and other obligations.

Alpha will continue operating 20 mines and 9 prep plants in West Virginia, and the company still expects to produce 14 million tons of metallurgical and thermal coal in 2017.

State's Bond Rating Dropped a Notch in Coal Freefall

Standard & Poor’s has dropped West Virginia’s bond rating amid the coal industry’s downturn.

The agency announced the drop Thursday from AA to AA-minus. It also said the rating’s outlook is stable.

Standard & Poor’s credit analyst Nora Wittstruck said the downgrade was due to weakness in the energy sector, and particularly, coal. The agency views the challenge as long-term, not cyclical.

Standard & Poor’s praised West Virginia’s Rainy Day Fund and demonstrated willingness and ability to tackle large-scale financial challenges. The agency cited progress addressing unfunded pension liabilities.

Amid falling coal and natural gas revenues, West Virginia’s still hasn’t passed a budget for the fiscal year beginning July 1. The Republican-led Legislature and Democratic Gov. Earl Ray Tomblin are negotiating tax hikes, cuts and use of reserves.

Gov. Tomblin had this to say in a press release regarding the rating.

“Throughout my years of public service, I’ve worked hard to create a strong West Virginia by improving the state’s business climate, addressing our long-term liabilities and creating one of the strongest Rainy Day Funds in the country. Over the past four decades, we’ve made significant progress. Today’s announcement by Standard & Poor’s is disappointing, however it is not entirely unexpected as other states whose economies are largely dependent on the energy sector have experienced similar actions.

“Continued economic growth will take time, and in the short term it cannot fix the significant challenges we face as a state. For months, I have urged the Legislature to adopt a responsible, structurally sound budget. Based on today’s action, objective analysts on Wall Street agree.

“If we don’t take proactive steps to develop a stable path forward that does not rely on one-time monies and even deeper cuts to cover long-term and recurring needs, the economic and budget challenges facing our state will only get worse. We have worked too hard and come too far to allow that to happen, which is why I continue to push for a budget that takes into account the systemic changes in our state’s economy and will put us on the path to a brighter financial future.”

Alderson-Broaddus Defaults on Bond Repayments

A bank official in Philippi says Alderson Broaddus University has defaulted on repayment of bonds totaling more than $36 million.

BCBank president and CEO Jeffrey Goff told The Exponent Telegram that the university failed to make required payments after either the second quarter or the third quarter.

Alderson Broaddus spokeswoman Ashley Mittelmeier told the newspaper that the private university is having financial difficulties. She says the school missed the payments as it worked with bond holders to restructure some terms.

Mittelmeier says Alderson Broaddus President Richard Creehan and the school’s board were aware of the situation.

Creehan announced last week that he will resign, effective Dec. 18. He said it was time to “hand over the reins to someone with a different perspective and skill set.”