Announced $100
Million for Additional Share Repurchases
Achieved First Development Coal at
Centurion
ST.
LOUIS, Aug. 1, 2024 /PRNewswire/ -- Peabody
(NYSE: BTU) today reported net income attributable to common
stockholders of $199.4 million, or
$1.42 per diluted share, for the
second quarter of 2024, compared to $179.2
million, or $1.15 per diluted
share in the prior year quarter. Peabody had Adjusted
EBITDA1 of $309.7 million
in the second quarter of 2024, which included $80.8 million from an insurance settlement
compared to $358.2 million in the
prior year quarter.
"Our operations performed safely, while achieving results
in-line with expectations across all four segments. With a
strong outlook for free cash flow in the second half of 2024, we
have committed $100 million for
additional share buybacks," said Peabody President and Chief
Executive Officer Jim Grech.
"Development at Centurion remains on plan, with initial underground
development rates exceeding expectations. We reached first
development coal in the second quarter and expect to ship to
customers beginning in the fourth quarter of 2024."
Highlights
- Reported second quarter Adjusted EBITDA of $309.7 million
- Achieved first development coal at Centurion; second continuous
miner commissioned in July
- Increased Seaborne Thermal revenue and Adjusted EBITDA margin
per ton
- Reached $109.5 million insurance
settlement at Shoal Creek
- Maintained strong cost discipline at U.S. Thermal
operations
- Announced an additional $100
million for share repurchases
- Declared a dividend on common stock of $0.075 per share on August
1, 2024
_________________________________________
|
1 Adjusted
EBITDA is a non-GAAP financial measure. Adjusted EBITDA margin is
equal to segment Adjusted EBITDA (excluding insurance recoveries)
divided by segment revenue. Revenue per Ton and Adjusted EBITDA
Margin per Ton are equal to revenue by segment and Adjusted EBITDA
by segment (excluding insurance recoveries), respectively, divided
by segment tons sold. Costs per Ton is equal to Revenue per Ton
less Adjusted EBITDA Margin per Ton. Management believes Costs per
Ton and Adjusted EBITDA Margin per Ton best reflect controllable
costs and operating results at the reporting segment level. We
consider all measures reported on a per ton basis, as well as
Adjusted EBITDA margin, to be operating/statistical measures.
Please refer to the tables and related notes herein for a
reconciliation of non-GAAP financial measures.
|
|
Second Quarter Segment Performance
Seaborne Thermal
|
Quarter
Ended
|
|
Six Months
Ended
|
|
Jun.
|
|
Mar.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Tons sold (in
millions)
|
4.1
|
|
4.0
|
|
4.0
|
|
8.1
|
|
7.6
|
|
Export
|
2.7
|
|
2.5
|
|
2.6
|
|
5.2
|
|
4.7
|
|
Domestic
|
1.4
|
|
1.5
|
|
1.4
|
|
2.9
|
|
2.9
|
|
Revenue per
Ton
|
$
74.43
|
|
$
71.24
|
|
$
100.59
|
|
$
72.86
|
|
$
98.81
|
|
Export - Avg.
Realized Price per Ton
|
98.43
|
|
99.56
|
|
139.88
|
|
98.97
|
|
143.62
|
|
Domestic - Avg.
Realized Price per Ton
|
26.69
|
|
26.33
|
|
23.76
|
|
26.50
|
|
24.44
|
|
Costs per
Ton
|
49.14
|
|
47.71
|
|
50.88
|
|
48.44
|
|
50.94
|
|
Adjusted EBITDA
Margin per Ton
|
$
25.29
|
|
$
23.53
|
|
$
49.71
|
|
$
24.42
|
|
$
47.87
|
|
Adjusted EBITDA (in
millions)
|
$
104.4
|
|
$
93.8
|
|
$
197.5
|
|
$
198.2
|
|
$
361.5
|
|
|
|
|
|
|
|
|
|
|
Peabody expected seaborne thermal volume of 4.1 million tons,
including 2.7 million export tons, at costs of $45 to $50 per
ton. Second quarter results were in-line with expectations,
increasing segment Adjusted EBITDA margin per ton by 7.5 percent
compared to the first quarter due to higher export tons. The
segment reported Adjusted EBITDA margins of 34 percent and Adjusted
EBITDA of $104.4 million.
Seaborne Metallurgical
|
Quarter
Ended
|
|
Six Months
Ended
|
|
Jun.
|
|
Mar.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Tons sold (in
millions)
|
2.0
|
|
1.4
|
|
2.0
|
|
3.4
|
|
3.3
|
|
Revenue per
Ton
|
$
149.29
|
|
$
172.60
|
|
$
190.13
|
|
$
159.10
|
|
$
202.33
|
|
Costs per
Ton
|
117.47
|
|
138.83
|
|
137.78
|
|
126.46
|
|
143.14
|
|
Adjusted EBITDA
Margin per Ton
|
$
31.82
|
|
$
33.77
|
|
$
52.35
|
|
$
32.64
|
|
$
59.19
|
|
Adjusted EBITDA,
Excluding Insurance Recovery
(in millions)
|
$
62.8
|
|
$
48.3
|
|
$
102.5
|
|
$
111.1
|
|
$
193.3
|
|
Shoal Creek
Insurance Recovery (in millions)
|
$
80.8
|
|
$
—
|
|
$
—
|
|
$
80.8
|
|
$
—
|
|
Adjusted EBITDA (in
millions)
|
$
143.6
|
|
$
48.3
|
|
$
102.5
|
|
$
191.9
|
|
$
193.3
|
|
|
|
|
|
|
|
|
|
|
Peabody expected seaborne met volume of 1.9 million tons at
costs of $110 to $120 per ton. Second quarter shipments were
above expectations and increased 600 thousand tons compared to the
first quarter following a successful longwall move at Metropolitan,
which also significantly improved costs per ton. Peabody
successfully reached a $109.5 million
settlement for property loss and business disruption sustained at
Shoal Creek in 2023. Peabody has included $80.8 million in second quarter segment Adjusted
EBITDA after previously reporting a $28.7
million provision for Shoal Creek Property losses. The
segment reported Adjusted EBITDA margins of 21 percent (excluding
insurance recovery) and Adjusted EBITDA of $143.6 million.
Powder River Basin
|
Quarter
Ended
|
|
Six Months
Ended
|
|
Jun.
|
|
Mar.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Tons sold (in
millions)
|
15.8
|
|
18.7
|
|
18.9
|
|
34.5
|
|
40.9
|
|
Revenue per
Ton
|
$
14.02
|
|
$
13.62
|
|
$
13.71
|
|
$
13.80
|
|
$
13.80
|
|
Costs per
Ton
|
12.89
|
|
12.74
|
|
12.33
|
|
12.81
|
|
12.28
|
|
Adjusted EBITDA
Margin per Ton
|
$
1.13
|
|
$
0.88
|
|
$
1.38
|
|
$
0.99
|
|
$
1.52
|
|
Adjusted EBITDA (in
millions)
|
$
17.8
|
|
$
16.4
|
|
$
26.2
|
|
$
34.2
|
|
$
62.0
|
|
|
|
|
|
|
|
|
|
|
Peabody expected PRB volume of 15.5 million tons at costs of
$12.75 to $13.75 per ton. The segment achieved costs
at the low end of guidance due to continued cost containment
measures. Shipments increased as the quarter progressed,
confirming expectations for higher volumes in the second half of
the year. The segment reported Adjusted EBITDA of
$17.8 million.
Other U.S. Thermal
|
Quarter
Ended
|
|
Six Months
Ended
|
|
Jun.
|
|
Mar.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Tons sold (in
millions)
|
3.7
|
|
3.2
|
|
3.8
|
|
6.9
|
|
8.3
|
|
Revenue per
Ton
|
$
55.21
|
|
$
59.75
|
|
$
53.63
|
|
$
57.33
|
|
$
54.23
|
|
Costs per
Ton
|
45.53
|
|
45.25
|
|
39.71
|
|
45.40
|
|
40.22
|
|
Adjusted EBITDA
Margin per Ton
|
$
9.68
|
|
$
14.50
|
|
$
13.92
|
|
$
11.93
|
|
$
14.01
|
|
Adjusted EBITDA (in
millions)
|
$
35.4
|
|
$
46.5
|
|
$
51.9
|
|
$
81.9
|
|
$
116.1
|
|
|
|
|
|
|
|
|
|
|
Peabody expected Other U.S. Thermal volume of 3.8 million tons
at costs of approximately $44 to
$48 per ton. Peabody delivered
3.7 million tons at costs of $45.53
per ton, in-line with expectations. The segment reported
Adjusted EBITDA of $35.4 million.
Centurion Update
Our world class hard coking coal growth project in Australia continues to advance on time and on
budget. We produced the first development coal in the second
quarter and commissioned the second continuous miner in July.
We expect to ship first coal in the fourth quarter of 2024 and
remain on track to commence longwall production in the first
quarter of 2026. Approximately $200
million of the $489 million of
capital expenditures to reach longwall production has been
completed as of June 30,
2024.
Centurion is expected to have a mine life in excess of 25 years
and average annual longwall production of 4.7 million tons.
The benchmark premium hard coking coal from Centurion is expected
to receive a premium price relative to other metallurgical
coals.
Shareholder Return Program
Since restarting our shareholder return program, the company has
returned $480.1 million to
shareholders through share repurchases of $430.4 million, or 13.4% of shares outstanding,
and cumulative quarterly cash dividends of $49.7 million. At June 30, Peabody had $569.6 million remaining under its existing
$1.0 billion share repurchase
program.
On August 1, 2024, we committed an
additional $100 million for share
repurchases in 2024 following the continued successful advancement
at Centurion, settlement of the Shoal Creek insurance claim and a
favorable free cash flow outlook for the remainder of the
year.
The company declared a $0.075 per
share dividend on August 1, 2024.
|
Six Months
Ended
|
|
Year
Ended
|
|
Jun.
|
|
Dec.
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
Net Cash Provided by
Operating Activities:
|
$
126.8
|
|
$
1,035.5
|
|
- Net Cash Used
in Investing Activities
|
(316.8)
|
|
(342.6)
|
|
- Distributions
to Noncontrolling Interest
|
(18.5)
|
|
(59.0)
|
|
+/- Changes to
Restricted Cash and Collateral (1)
|
(17.1)
|
|
90.2
|
|
- Anticipated
Expenditures or Other Requirements
|
—
|
|
—
|
|
Available Free Cash
Flow (AFCF) (2)
|
$
(225.6)
|
|
$
724.1
|
|
|
|
|
|
Amount Allocated to
Shareholder Returns
|
$
118.8
|
|
$
470.7
|
|
|
|
|
|
(1) This amount is
equal to the total change in Restricted Cash and Collateral on the
balance sheet, excluding partially offsetting amounts
included in operating cash flow consisting of an inflow of $150
million and an outflow of $200 million for the six months ended
June 30, 2024
and the year ended December 31, 2023, respectively.
|
|
(2) AFCF is a
non-GAAP financial measure defined as operating cash flow less
investing cash flow and distributions to noncontrolling
interests;
plus/minus changes to restricted cash and collateral and other
anticipated expenditures. Available Free Cash Flow is used by
management as
a measure of our ability to generate excess cash flow from our
business. The Company's policy is to return at least 65% of annual
AFCF to
shareholders.
|
|
2024 Outlook
Seaborne Thermal
- Full year volume has been increased by 500 thousand tons to
15.7-16.2 million tons due to anticipated additional high ash coal
production at Wilpinjong.
- Third quarter volume is expected to be 4.0 million tons,
including 2.5 million export tons. 600 thousand export tons are
priced at $120.45 per ton, and 1.0
million tons of Newcastle product and 0.9 million tons of high ash
product are unpriced. Costs are anticipated to be $48-$53 per
ton.
Seaborne Metallurgical
- Full year volume has been lowered by 600 thousand tons to
7.2-7.6 million tons primarily because of anticipated challenging
geological conditions at the CMJV. As a result, full year costs are
now expected to be $118-$128 per ton.
- Third quarter volume is anticipated to be 1.7 million tons and
is expected to achieve 70 to 80 percent of the premium hard coking
coal price index. Costs are anticipated to be $120-$130 per
ton.
U.S. Thermal
- Full year PRB volume has been lowered 5 million tons to 75-82
million tons.
- Third quarter PRB volume is expected to be 21.5 millions tons
at an average price of $13.75 per ton
and costs of approximately $11.50-$12.50 per
ton.
- Third quarter Other U.S. Thermal volume is expected to be 4.0
million tons at an average price of $54.10 per ton and costs of approximately
$44-$48
per ton.
Today's earnings call is scheduled for 10
a.m. CT and can be accessed via the company's website at
PeabodyEnergy.com.
Peabody (NYSE: BTU) is a leading coal producer, providing
essential products for the production of affordable, reliable
energy and steel. Our commitment to sustainability underpins
everything we do and shapes our strategy for the future. For
further information, visit PeabodyEnergy.com.
Contact:
Karla Kimrey
314.342.7890
|
Guidance
Targets
|
|
|
Segment
Performance
|
|
|
|
|
|
|
|
2024 Full
Year
|
|
|
Total Volume
(millions of short tons)
|
Priced Volume
(millions of short tons)
|
Priced Volume
Pricing per Short Ton
|
Average Cost per
Short Ton
|
|
Seaborne
Thermal
|
15.7 - 16.2
|
12
|
$65.09
|
$45.00 -
$50.00
|
|
Seaborne Thermal
(Export)
|
9.8 - 10.3
|
6.2
|
$101.93
|
NA
|
|
Seaborne Thermal
(Domestic)
|
5.9
|
5.9
|
$26.30
|
NA
|
|
Seaborne
Metallurgical
|
7.2 - 7.6
|
3.7
|
$158.00
|
$118.00 -
$128.00
|
|
PRB U.S.
Thermal
|
75 - 82
|
85
|
$13.70
|
$11.75 -
$12.50
|
|
Other U.S.
Thermal
|
14.5 - 15.5
|
15.2
|
$54.20
|
$41.00 -
$45.00
|
|
|
|
|
|
|
Other Annual
Financial Metrics ($ in millions)
|
|
|
2024 Full
Year
|
|
|
|
|
SG&A
|
$90
|
|
|
|
|
Total Capital
Expenditures
|
$375
|
|
|
|
|
Major Project Capital
Expenditures
|
$235
|
|
|
|
|
Sustaining Capital
Expenditures
|
$140
|
|
|
|
|
ARO Cash
Spend
|
$50
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
~50% of unpriced export
volumes are expected to price on average at
Globalcoal "NEWC" levels and ~50% are expected to have a higher
ash
content and price at 80-95% of API 5 price levels.
|
|
|
|
Seaborne
Metallurgical
|
On average, Peabody's
metallurgical sales are anticipated to price at 70-80%
of the premium hard-coking coal index price (FOB
Australia).
|
|
|
|
PRB and Other U.S.
Thermal
|
PRB and Other U.S.
Thermal volumes reflect volumes priced at June 30, 2024.
Weighted average quality for the PRB segment 2024 volume is
approximately
8670 BTU.
|
|
Certain forward-looking measures and metrics presented are
non-GAAP financial and operating/statistical measures. Due to the
volatility and variability of certain items needed to reconcile
these measures to their nearest GAAP measure, no reconciliation can
be provided without unreasonable cost or effort.
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
For the Quarters
Ended Jun. 30, 2024, Mar. 31, 2024 and Jun. 30, 2023 and the
Six
Months Ended Jun. 30, 2024 and 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
Jun.
|
|
Mar.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Sold
|
25.6
|
|
27.4
|
|
28.9
|
|
53.0
|
|
60.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
1,042.0
|
|
$
983.6
|
|
$
1,268.8
|
|
$
2,025.6
|
|
$
2,632.8
|
|
Operating Costs and
Expenses (1)
|
803.9
|
|
814.2
|
|
862.0
|
|
1,618.1
|
|
1,708.6
|
|
Depreciation, Depletion
and Amortization
|
82.9
|
|
79.8
|
|
80.6
|
|
162.7
|
|
156.9
|
|
Asset Retirement
Obligation Expenses
|
12.9
|
|
12.9
|
|
15.5
|
|
25.8
|
|
30.9
|
|
Selling and
Administrative Expenses
|
22.1
|
|
22.0
|
|
21.7
|
|
44.1
|
|
44.5
|
|
Restructuring
Charges
|
0.1
|
|
0.1
|
|
2.0
|
|
0.2
|
|
2.1
|
|
Other Operating
(Income) Loss:
|
|
|
|
|
|
|
|
|
|
|
Net Gain on
Disposals
|
(7.5)
|
|
(2.1)
|
|
(5.2)
|
|
(9.6)
|
|
(7.1)
|
|
Asset
Impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
2.0
|
|
Provision for NARM and
Shoal Creek Losses
|
1.9
|
|
1.8
|
|
33.7
|
|
3.7
|
|
33.7
|
|
Shoal Creek Insurance
Recovery
|
(109.5)
|
|
—
|
|
—
|
|
(109.5)
|
|
—
|
|
Loss (Income) from
Equity Affiliates
|
1.3
|
|
3.7
|
|
(2.3)
|
|
5.0
|
|
(4.1)
|
|
Operating
Profit
|
233.9
|
|
51.2
|
|
260.8
|
|
285.1
|
|
665.3
|
|
Interest Expense, Net
of Capitalized Interest
|
10.7
|
|
14.7
|
|
13.3
|
|
25.4
|
|
31.7
|
|
Net Loss on Early Debt
Extinguishment
|
—
|
|
—
|
|
2.0
|
|
—
|
|
8.8
|
|
Interest
Income
|
(16.8)
|
|
(19.2)
|
|
(23.1)
|
|
(36.0)
|
|
(36.2)
|
|
Net Periodic Benefit
Credit, Excluding Service Cost
|
(10.2)
|
|
(10.1)
|
|
(9.7)
|
|
(20.3)
|
|
(19.4)
|
|
Income from Continuing
Operations Before Income Taxes
|
250.2
|
|
65.8
|
|
278.3
|
|
316.0
|
|
680.4
|
|
Income Tax
Provision
|
39.4
|
|
20.1
|
|
74.2
|
|
59.5
|
|
192.2
|
|
Income from Continuing
Operations, Net of Income Taxes
|
210.8
|
|
45.7
|
|
204.1
|
|
256.5
|
|
488.2
|
|
Loss from Discontinued
Operations, Net of Income Taxes
|
(1.6)
|
|
(0.7)
|
|
(1.3)
|
|
(2.3)
|
|
(2.6)
|
|
Net Income
|
209.2
|
|
45.0
|
|
202.8
|
|
254.2
|
|
485.6
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
9.8
|
|
5.4
|
|
23.6
|
|
15.2
|
|
37.9
|
|
Net Income Attributable
to Common Stockholders
|
$
199.4
|
|
$
39.6
|
|
$
179.2
|
|
$
239.0
|
|
$
447.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
309.7
|
|
$
160.5
|
|
$
358.2
|
|
$
470.2
|
|
$
748.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Income
from Continuing Operations (3)(4)
|
$
1.43
|
|
$
0.30
|
|
$
1.16
|
|
$
1.72
|
|
$
2.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Net
Income Attributable to Common
Stockholders (3)
|
$
1.42
|
|
$
0.29
|
|
$
1.15
|
|
$
1.70
|
|
$
2.83
|
|
|
|
(1)
|
Excludes items shown
separately.
|
|
(2)
|
Adjusted EBITDA is a
non-GAAP financial measure. Refer to the "Reconciliation of
Non-GAAP Financial Measures" section in this document for
definitions and reconciliations to the most comparable measures
under U.S. GAAP.
|
|
(3)
|
Weighted average
diluted shares outstanding were 142.8 million, 144.9 million and
159.0 million during the quarters ended June 30, 2024,
March
31, 2024 and June 30, 2023, respectively. Weighted average diluted
shares outstanding were 143.8 million and 160.2 million during the
six months
ended June 30, 2024 and 2023, respectively.
|
|
(4)
|
Reflects income from
continuing operations, net of income taxes less net income
attributable to noncontrolling interests.
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
|
Condensed
Consolidated Balance Sheets
|
|
|
As of Jun. 30, 2024
and Dec. 31, 2023
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Jun. 30,
2024
|
|
Dec. 31,
2023
|
|
Cash and Cash
Equivalents
|
$
621.7
|
|
$
969.3
|
|
Accounts Receivable,
Net
|
511.6
|
|
389.7
|
|
Inventories,
Net
|
422.1
|
|
351.8
|
|
Other Current
Assets
|
296.8
|
|
308.9
|
|
Total Current
Assets
|
1,852.2
|
|
2,019.7
|
|
Property, Plant,
Equipment and Mine Development, Net
|
3,003.1
|
|
2,844.1
|
|
Operating Lease
Right-of-Use Assets
|
114.1
|
|
61.9
|
|
Restricted Cash and
Collateral
|
825.1
|
|
957.6
|
|
Investments and Other
Assets
|
83.8
|
|
78.8
|
|
Total
Assets
|
$
5,878.3
|
|
$
5,962.1
|
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
$
14.1
|
|
$
13.5
|
|
Accounts Payable and
Accrued Expenses
|
729.1
|
|
965.5
|
|
Total Current
Liabilities
|
743.2
|
|
979.0
|
|
Long-Term Debt, Less
Current Portion
|
323.2
|
|
320.7
|
|
Deferred Income
Taxes
|
47.3
|
|
28.6
|
|
Asset Retirement
Obligations, Less Current Portion
|
645.9
|
|
648.6
|
|
Accrued Postretirement
Benefit Costs
|
144.8
|
|
148.4
|
|
Operating Lease
Liabilities, Less Current Portion
|
88.2
|
|
47.7
|
|
Other Noncurrent
Liabilities
|
170.7
|
|
181.6
|
|
Total
Liabilities
|
2,163.3
|
|
2,354.6
|
|
|
|
|
|
|
Common Stock
|
1.9
|
|
1.9
|
|
Additional Paid-in
Capital
|
3,987.2
|
|
3,983.0
|
|
Treasury
Stock
|
(1,825.5)
|
|
(1,740.2)
|
|
Retained
Earnings
|
1,332.5
|
|
1,112.7
|
|
Accumulated Other
Comprehensive Income
|
161.7
|
|
189.6
|
|
Peabody Energy
Corporation Stockholders' Equity
|
3,657.8
|
|
3,547.0
|
|
Noncontrolling
Interests
|
57.2
|
|
60.5
|
|
Total Stockholders'
Equity
|
3,715.0
|
|
3,607.5
|
|
Total Liabilities and
Stockholders' Equity
|
$
5,878.3
|
|
$
5,962.1
|
|
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
For the Quarters
Ended Jun. 30, 2024, Mar. 31, 2024 and Jun. 30, 2023 and the
Six
Months Ended Jun. 30, 2024 and 2023
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
Jun.
|
|
Mar.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided By
Continuing Operations
|
$
9.7
|
|
$
120.3
|
|
$
355.8
|
|
$
130.0
|
|
$
745.2
|
|
Net Cash Used in
Discontinued Operations
|
(1.9)
|
|
(1.3)
|
|
(2.4)
|
|
(3.2)
|
|
(5.5)
|
|
Net Cash Provided
By Operating Activities
|
7.8
|
|
119.0
|
|
353.4
|
|
126.8
|
|
739.7
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
Additions to Property,
Plant, Equipment and Mine Development
|
(105.6)
|
|
(61.4)
|
|
(66.6)
|
|
(167.0)
|
|
(122.3)
|
|
Changes in Accrued
Expenses Related to Capital Expenditures
|
(6.9)
|
|
(6.8)
|
|
(3.8)
|
|
(13.7)
|
|
(5.4)
|
|
Wards Well
Acquisition
|
(143.8)
|
|
—
|
|
—
|
|
(143.8)
|
|
—
|
|
Insurance Proceeds
Attributable to Shoal Creek Equipment Losses
|
5.6
|
|
—
|
|
—
|
|
5.6
|
|
—
|
|
Proceeds from Disposal
of Assets, Net of Receivables
|
13.1
|
|
2.4
|
|
9.1
|
|
15.5
|
|
12.0
|
|
Contributions to Joint
Ventures
|
(170.7)
|
|
(202.8)
|
|
(164.6)
|
|
(373.5)
|
|
(370.8)
|
|
Distributions from
Joint Ventures
|
167.4
|
|
193.2
|
|
163.8
|
|
360.6
|
|
365.8
|
|
Other, Net
|
(0.7)
|
|
0.2
|
|
0.6
|
|
(0.5)
|
|
0.7
|
|
Net Cash Used In
Investing Activities
|
(241.6)
|
|
(75.2)
|
|
(61.5)
|
|
(316.8)
|
|
(120.0)
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
Repayments of Long-Term
Debt
|
(2.4)
|
|
(2.2)
|
|
(2.1)
|
|
(4.6)
|
|
(4.8)
|
|
Payment of Debt
Issuance and Other Deferred Financing Costs
|
(0.3)
|
|
(10.8)
|
|
—
|
|
(11.1)
|
|
(0.3)
|
|
Common Stock
Repurchases
|
—
|
|
(83.1)
|
|
(173.0)
|
|
(83.1)
|
|
(173.0)
|
|
Repurchase of Employee
Common Stock Relinquished for Tax Withholding
|
(0.7)
|
|
(3.4)
|
|
(0.5)
|
|
(4.1)
|
|
(13.7)
|
|
Dividends
Paid
|
(9.4)
|
|
(9.7)
|
|
(10.8)
|
|
(19.1)
|
|
(10.8)
|
|
Distributions to
Noncontrolling Interests
|
—
|
|
(18.5)
|
|
—
|
|
(18.5)
|
|
(22.8)
|
|
Net Cash Used In
Financing Activities
|
(12.8)
|
|
(127.7)
|
|
(186.4)
|
|
(140.5)
|
|
(225.4)
|
|
Net Change in Cash,
Cash Equivalents and Restricted Cash
|
(246.6)
|
|
(83.9)
|
|
105.5
|
|
(330.5)
|
|
394.3
|
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of
Period
|
1,566.3
|
|
1,650.2
|
|
1,706.4
|
|
1,650.2
|
|
1,417.6
|
|
Cash, Cash
Equivalents and Restricted Cash at End of Period
|
$
1,319.7
|
|
$
1,566.3
|
|
$
1,811.9
|
|
$
1,319.7
|
|
$
1,811.9
|
|
|
|
|
|
|
|
|
|
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
|
|
|
For the Quarters
Ended Jun. 30, 2024, Mar. 31, 2024 and Jun. 30, 2023 and the
Six
Months Ended Jun. 30, 2024 and 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Management
believes that non-GAAP performance measures are used by investors
to measure our operating performance. These
measures are not intended to serve as alternatives to U.S. GAAP
measures of performance and may not be comparable to
similarly-titled measures
presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
Jun.
|
|
Mar.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing
Operations, Net of Income Taxes
|
$
210.8
|
|
$
45.7
|
|
$
204.1
|
|
$
256.5
|
|
$
488.2
|
|
Depreciation,
Depletion and Amortization
|
82.9
|
|
79.8
|
|
80.6
|
|
162.7
|
|
156.9
|
|
Asset Retirement
Obligation Expenses
|
12.9
|
|
12.9
|
|
15.5
|
|
25.8
|
|
30.9
|
|
Restructuring
Charges
|
0.1
|
|
0.1
|
|
2.0
|
|
0.2
|
|
2.1
|
|
Asset
Impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
2.0
|
|
Provision for NARM and
Shoal Creek Losses
|
1.9
|
|
1.8
|
|
33.7
|
|
3.7
|
|
33.7
|
|
Shoal Creek Insurance
Recovery - Property Damage
|
(28.7)
|
|
—
|
|
—
|
|
(28.7)
|
|
—
|
|
Changes in
Amortization of Basis Difference Related to Equity
Affiliates
|
(0.3)
|
|
(0.4)
|
|
(0.4)
|
|
(0.7)
|
|
(0.7)
|
|
Interest Expense, Net
of Capitalized Interest
|
10.7
|
|
14.7
|
|
13.3
|
|
25.4
|
|
31.7
|
|
Net Loss on Early Debt
Extinguishment
|
—
|
|
—
|
|
2.0
|
|
—
|
|
8.8
|
|
Interest
Income
|
(16.8)
|
|
(19.2)
|
|
(23.1)
|
|
(36.0)
|
|
(36.2)
|
|
Unrealized Gains on
Derivative Contracts Related to
Forecasted Sales
|
—
|
|
—
|
|
(40.3)
|
|
—
|
|
(159.0)
|
|
Unrealized (Gains)
Losses on Foreign Currency Option
Contracts
|
(2.4)
|
|
5.7
|
|
(2.8)
|
|
3.3
|
|
(0.6)
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
(0.8)
|
|
(0.7)
|
|
(0.6)
|
|
(1.5)
|
|
(1.2)
|
|
Income Tax
Provision
|
39.4
|
|
20.1
|
|
74.2
|
|
59.5
|
|
192.2
|
|
Adjusted EBITDA
(1)
|
$
309.7
|
|
$
160.5
|
|
$
358.2
|
|
$
470.2
|
|
$
748.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Costs and
Expenses
|
$
803.9
|
|
$
814.2
|
|
$
862.0
|
|
$
1,618.1
|
|
$
1,708.6
|
|
Unrealized Gains
(Losses) on Foreign Currency Option
Contracts
|
2.4
|
|
(5.7)
|
|
2.8
|
|
(3.3)
|
|
0.6
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
0.8
|
|
0.7
|
|
0.6
|
|
1.5
|
|
1.2
|
|
Net Periodic Benefit
Credit, Excluding Service Cost
|
(10.2)
|
|
(10.1)
|
|
(9.7)
|
|
(20.3)
|
|
(19.4)
|
|
Total Reporting Segment
Costs (2)
|
$
796.9
|
|
$
799.1
|
|
$
855.7
|
|
$
1,596.0
|
|
$
1,691.0
|
|
|
|
(1)
|
Adjusted EBITDA is
defined as income from continuing operations before deducting net
interest expense, income taxes, asset retirement obligation
expenses and depreciation, depletion and amortization. Adjusted
EBITDA is also adjusted for the discrete items that management
excluded in
analyzing each of our segment's operating performance, as displayed
in the reconciliation above. Adjusted EBITDA is used by management
as the
primary metric to measure each of our segment's operating
performance and allocate resources.
|
|
(2)
|
Total Reporting Segment
Costs is defined as operating costs and expenses adjusted for the
discrete items that management excluded in analyzing
each of our segment's operating performance, as displayed in the
reconciliation above. Total Reporting Segment Costs is used by
management as
a component of a metric to measure each of our segment's operating
performance.
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
|
Supplemental
Financial Data (Unaudited)
|
|
|
For the Quarters
Ended Jun. 30, 2024, Mar. 31, 2024 and Jun. 30, 2023 and the
Six
Months Ended Jun. 30, 2024 and 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
Jun.
|
|
Mar.
|
|
Jun.
|
|
Jun.
|
|
Jun.
|
|
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue Summary (In
Millions)
|
|
|
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
307.5
|
|
$
283.9
|
|
$
399.5
|
|
$
591.4
|
|
$
746.0
|
|
Seaborne
Metallurgical
|
294.3
|
|
247.0
|
|
372.5
|
|
541.3
|
|
660.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River
Basin
|
221.9
|
|
254.1
|
|
259.7
|
|
476.0
|
|
565.0
|
|
Other U.S.
Thermal
|
202.0
|
|
191.6
|
|
199.9
|
|
393.6
|
|
449.3
|
|
Total U.S.
Thermal
|
423.9
|
|
445.7
|
|
459.6
|
|
869.6
|
|
1,014.3
|
|
Corporate and
Other
|
16.3
|
|
7.0
|
|
37.2
|
|
23.3
|
|
211.6
|
|
Total
|
$
1,042.0
|
|
$
983.6
|
|
$
1,268.8
|
|
$
2,025.6
|
|
$
2,632.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reporting Segment
Costs Summary (In Millions) (1)
|
|
|
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
203.1
|
|
$
190.1
|
|
$
202.0
|
|
$
393.2
|
|
$
384.5
|
|
Seaborne
Metallurgical
|
231.5
|
|
198.7
|
|
270.0
|
|
430.2
|
|
467.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River
Basin
|
204.1
|
|
237.7
|
|
233.5
|
|
441.8
|
|
503.0
|
|
Other U.S.
Thermal
|
166.6
|
|
145.1
|
|
148.0
|
|
311.7
|
|
333.2
|
|
Total U.S.
Thermal
|
370.7
|
|
382.8
|
|
381.5
|
|
753.5
|
|
836.2
|
|
Corporate and
Other
|
(8.4)
|
|
27.5
|
|
2.2
|
|
19.1
|
|
2.7
|
|
Total
|
$
796.9
|
|
$
799.1
|
|
$
855.7
|
|
$
1,596.0
|
|
$
1,691.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
Seaborne Thermal
|
$
104.4
|
|
$
93.8
|
|
$
197.5
|
|
$
198.2
|
|
$
361.5
|
|
Adjusted EBITDA -
Seaborne Metallurgical, Excluding Shoal
Creek Insurance Recovery
|
62.8
|
|
48.3
|
|
102.5
|
|
111.1
|
|
193.3
|
|
Shoal Creek Insurance
Recovery - Business Interruption
|
80.8
|
|
—
|
|
—
|
|
80.8
|
|
—
|
|
Adjusted EBITDA -
Seaborne Metallurgical
|
143.6
|
|
48.3
|
|
102.5
|
|
191.9
|
|
193.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
Powder River Basin
|
17.8
|
|
16.4
|
|
26.2
|
|
34.2
|
|
62.0
|
|
Adjusted EBITDA - Other
U.S. Thermal
|
35.4
|
|
46.5
|
|
51.9
|
|
81.9
|
|
116.1
|
|
Adjusted EBITDA - Total
U.S. Thermal
|
53.2
|
|
62.9
|
|
78.1
|
|
116.1
|
|
178.1
|
|
Middlemount
|
1.9
|
|
(0.8)
|
|
3.7
|
|
1.1
|
|
6.0
|
|
Resource Management
Results (2)
|
9.9
|
|
4.4
|
|
6.0
|
|
14.3
|
|
8.3
|
|
Selling and
Administrative Expenses
|
(22.1)
|
|
(22.0)
|
|
(21.7)
|
|
(44.1)
|
|
(44.5)
|
|
Other Operating Costs,
Net (3)
|
18.8
|
|
(26.1)
|
|
(7.9)
|
|
(7.3)
|
|
46.1
|
|
Adjusted EBITDA
(1)
|
$
309.7
|
|
$
160.5
|
|
$
358.2
|
|
$
470.2
|
|
$
748.8
|
|
|
|
(1)
|
Total Reporting Segment
Costs and Adjusted EBITDA are non-GAAP financial measures. Refer to
the "Reconciliation of Non-GAAP Financial Measures"
section in this document for definitions and reconciliations to the
most comparable measures under U.S. GAAP.
|
|
(2)
|
Includes gains (losses)
on certain surplus coal reserve and surface land sales and property
management costs and revenue.
|
|
(3)
|
Includes trading and
brokerage activities, costs associated with post-mining activities,
minimum charges on certain transportation-related contracts,
costs
associated with suspended operations including the Centurion Mine
and revenue of $19.2 million related to the Q1 2023 assignment of
port and rail capacity.
|
|
This information is
intended to be reviewed in conjunction with the company's filings
with the SEC.
|
|
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the securities laws. Forward-looking statements can
be identified by the fact that they do not relate strictly to
historical or current facts. They often include words or variation
of words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "projects," "forecasts,"
"targets," "would," "will," "should," "goal," "could" or "may" or
other similar expressions. Forward-looking statements provide
management's or the Board's current expectations or predictions of
future conditions, events, or results. All statements that address
operating performance, events, or developments that may occur in
the future are forward-looking statements, including statements
regarding the shareholder return framework, execution of the
Company's operating plans, market conditions for the Company's
products, reclamation obligations, financial outlook, potential
acquisitions and strategic investments, and liquidity requirements.
All forward-looking statements speak only as of the date they are
made and reflect Peabody's good faith beliefs, assumptions, and
expectations, but they are not guarantees of future performance or
events. Furthermore, Peabody disclaims any obligation to publicly
update or revise any forward-looking statement, except as required
by law. By their nature, forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those suggested by the forward-looking statements.
Factors that might cause such differences include, but are not
limited to, a variety of economic, competitive, and regulatory
factors, many of which are beyond Peabody's control, that are
described in Peabody's periodic reports filed with the SEC
including its Annual Report on Form 10-K for the fiscal year
ended Dec. 31, 2023 and other factors
that Peabody may describe from time to time in other filings with
the SEC. You may get such filings for free at Peabody's website at
www.peabodyenergy.com. You should understand that it is not
possible to predict or identify all such factors and, consequently,
you should not consider any such list to be a complete set of all
potential risks or uncertainties.
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SOURCE Peabody