Peabody Energy Corp's stock surged 5.74% in after-hours trading on Wednesday, extending gains from the regular session.

The sharp rise follows reports that President Donald Trump is expected to sign an executive order that would call for U.S. military installations to make electricity contracts with coal-fired power plants, a move that would directly benefit coal producers like Peabody Energy.

In addition to the military contracts, the Trump administration is also expected to announce funding to recommission and upgrade coal plants and repeal the 2009 "endangerment finding" that serves as the legal basis for federal greenhouse-gas regulation. These policy moves represent significant support for the coal industry ahead of Trump's scheduled "Champion of Coal" event at the White House.