Re-entered Zone B at North Goonyella and
Reached Agreement to Acquire Adjacent Coal Deposit
Initiated Longwall Installation at Shoal
Creek
ST.
LOUIS, Oct. 26, 2023 /PRNewswire/ -- Peabody
(NYSE: BTU) today reported net income attributable to common
stockholders of $119.9 million, or
$0.82 per diluted share, for the
third quarter of 2023, compared to $179.2
million, or $1.15 per diluted
share in the second quarter. Peabody had Adjusted
EBITDA1 of $270.0
million in the third quarter of 2023 compared to
$358.2 million in the prior
quarter.
"In the third quarter of 2023, we delivered strong operational
results with better-than-expected production and effective cost
management. The diversity of our portfolio enables us to
provide consistent and predictable results," said Peabody President
and Chief Executive Officer Jim
Grech. "We made substantial progress on strengthening
our metallurgical platform as we moved to the next stage of
redevelopment at North Goonyella and agreed to acquire an adjacent
coal deposit. The addition of this world-class coal deposit
in the same seam as North Goonyella leverages our existing
infrastructure and equipment. The acquired resources will
support a North Goonyella mine life of 25 years or more, making
North Goonyella a premier, tier one premium hard coking coal
mine."
Highlights
- Reported third quarter Adjusted EBITDA of $270 million, operating cash flow from continuing
operations of $87.5 million (net of
$81 million in working capital
charges) and $989 million of Cash and
Cash Equivalents at September 30,
2023
- Reported higher production levels at three of four operating
segments compared to prior quarter
- Exceeded anticipated PRB volumes by 8 percent, shipping ~23
million tons in the quarter
- Reported lower than anticipated costs per ton in three of our
four operating segments during the quarter
- Successfully re-entered Zone B at North Goonyella, a key
project milestone, and received full funds approval from the Board
to complete development with longwall production targeted in
2026
- Reached an agreement to acquire a large portion of the Wards
Well coal deposit, an underground premium hard coking coal resource
immediately adjacent to our existing North Goonyella mine
- Progressed installation of a new longwall at Shoal Creek, on
plan, with longwall production targeted early in the first quarter
of 2024
- Reached a $72 million settlement
with the U.S. Department of Labor (DOL) for disputed legacy black
lung claims avoiding significantly higher collateral requirements
under proposed DOL rules
- Year to date, returned $307
million through our shareholder return program through
October 20, including $287 million of share repurchases and dividends
of $21 million
- Declared a dividend on common stock of $0.075 per share on October 26, 2023
___________________________________
|
1 Adjusted
EBITDA and Available Free Cash Flow are non-GAAP financial
measures. Adjusted EBITDA margin is equal to segment Adjusted
EBITDA divided by segment revenue. Revenue per Ton and Adjusted
EBITDA Margin per Ton are equal to revenue by segment and Adjusted
EBITDA by segment, 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 in this press release for a reconciliation and
definition of non-GAAP financial measures.
|
|
Third Quarter Segment Performance
Seaborne Thermal
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
Sept.
|
|
Jun.
|
|
Sept.
|
|
Sept.
|
|
Sept.
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Tons sold (in
millions)
|
4.2
|
|
4.0
|
|
3.7
|
|
11.8
|
|
11.5
|
|
Export
|
2.7
|
|
2.6
|
|
1.6
|
|
7.4
|
|
5.6
|
|
Domestic
|
1.5
|
|
1.4
|
|
2.1
|
|
4.4
|
|
5.9
|
|
Revenue per
Ton
|
$
71.38
|
|
$
100.59
|
|
$
95.54
|
|
$
89.06
|
|
$
83.30
|
|
Export - Avg.
Realized Price per Ton
|
99.55
|
|
139.88
|
|
187.94
|
|
127.67
|
|
148.68
|
|
Domestic - Avg.
Realized Price per Ton
|
20.92
|
|
23.76
|
|
21.77
|
|
23.23
|
|
21.15
|
|
Costs per
Ton
|
43.68
|
|
50.88
|
|
49.22
|
|
48.35
|
|
45.22
|
|
Adjusted EBITDA
Margin per Ton
|
$
27.70
|
|
$
49.71
|
|
$
46.32
|
|
$
40.71
|
|
$
38.08
|
|
Adjusted EBITDA (in
millions)
|
$
115.5
|
|
$
197.5
|
|
$
171.2
|
|
$
477.0
|
|
$
438.5
|
|
The seaborne thermal segment shipped 4.2 million tons, including
2.7 million export tons. The average realized export price
was 29 percent lower than the prior quarter due to coal product mix
and lower average seaborne thermal benchmark prices. Total
segment costs of $43.68 per ton were
14 percent lower than the second quarter due to higher production
and lower sales price sensitive costs. The segment reported
Adjusted EBITDA margins of 39 percent and Adjusted EBITDA of
$115.5 million.
Seaborne Metallurgical
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
Sept.
|
|
Jun.
|
|
Sept.
|
|
Sept.
|
|
Sept.
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Tons sold (in
millions)
|
1.5
|
|
2.0
|
|
1.8
|
|
4.8
|
|
4.6
|
|
Revenue per
Ton
|
$
162.02
|
|
$
190.13
|
|
$
179.77
|
|
$
189.50
|
|
$
254.52
|
|
Costs per
Ton
|
110.38
|
|
137.78
|
|
114.32
|
|
132.74
|
|
124.86
|
|
Adjusted EBITDA
Margin per Ton
|
$
51.64
|
|
$
52.35
|
|
$
65.45
|
|
$
56.76
|
|
$
129.66
|
|
Adjusted EBITDA (in
millions)
|
$
78.6
|
|
$
102.5
|
|
$
113.2
|
|
$
271.9
|
|
$
593.9
|
|
The seaborne met segment shipped 1.5 million tons at an average
realized price of $162.02 per
ton. Tons sold were 0.5 million tons lower than the prior
quarter primarily driven by mine sequencing and the timing of
sales. Total segment costs of $110.38 per ton were 20 percent lower than the
second quarter primarily due to higher production and lower sales
price sensitive costs. The segment reported Adjusted EBITDA
margins of 32 percent and Adjusted EBITDA of $78.6 million.
Powder River Basin
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
Sept.
|
|
Jun.
|
|
Sept.
|
|
Sept.
|
|
Sept.
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Tons sold (in
millions)
|
22.7
|
|
18.9
|
|
22.3
|
|
63.6
|
|
61.4
|
|
Revenue per
Ton
|
$
13.79
|
|
$
13.71
|
|
$
12.99
|
|
$
13.80
|
|
$
12.55
|
|
Costs per
Ton
|
11.41
|
|
12.33
|
|
11.29
|
|
11.98
|
|
11.84
|
|
Adjusted EBITDA
Margin per Ton
|
$
2.38
|
|
$
1.38
|
|
$
1.70
|
|
$
1.82
|
|
$
0.71
|
|
Adjusted EBITDA (in
millions)
|
$
54.1
|
|
$
26.2
|
|
$
37.9
|
|
$
116.1
|
|
$
43.5
|
|
The PRB segment shipped 22.7 million tons at an average realized
price of $13.79 per ton. Tons
sold increased by 3.8 million tons compared to the second quarter
primarily driven by higher customer demand and improved rail
performance. PRB costs of $11.41 per ton were 7 percent lower than the
second quarter due to higher production volumes and lower
maintenance costs. The segment reported Adjusted EBITDA
margins of 17 percent and Adjusted EBITDA of $54.1 million.
Other U.S. Thermal
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
Sept.
|
|
Jun.
|
|
Sept.
|
|
Sept.
|
|
Sept.
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Tons sold (in
millions)
|
4.2
|
|
3.8
|
|
4.8
|
|
12.5
|
|
13.4
|
|
Revenue per
Ton
|
$
53.89
|
|
$
53.63
|
|
$
54.58
|
|
$
54.12
|
|
$
51.62
|
|
Costs per
Ton
|
42.28
|
|
39.71
|
|
39.40
|
|
40.92
|
|
37.80
|
|
Adjusted EBITDA
Margin per Ton
|
$
11.61
|
|
$
13.92
|
|
$
15.18
|
|
$
13.20
|
|
$
13.82
|
|
Adjusted EBITDA (in
millions)
|
$
49.1
|
|
$
51.9
|
|
$
72.7
|
|
$
165.2
|
|
$
184.6
|
|
The other U.S. thermal segment shipped 4.2 million tons at an
average realized price of $53.89 per
ton. Tons sold increased by approximately 0.4 million tons
compared to the second quarter due to improved customer
demand. Costs per ton of $42.28
per ton were 6 percent higher than the second quarter due to lower
production and higher fuel and explosives costs. The segment
reported Adjusted EBITDA margins of 22 percent and Adjusted EBITDA
of $49.1 million.
Seaborne Metallurgical Segment Initiatives
The Company is committed to making strategic investments in its
existing seaborne metallurgical portfolio to substantially increase
expected coal production and mine life.
North Goonyella – Recently completed a key project
milestone of Zone B re-entry. The project remains on track to
commence mining of development coal in the first quarter of 2024
and begin longwall panel development.
The Board provided full funds approval to complete development
at North Goonyella with longwall production expected in 2026.
Total project capital expenditures have been revised to
$489 million, an increase of
$109 million over prior estimates,
due to higher labor costs, equipment cost escalations, and
increased regulatory and development costs. Since commencing
development in late 2022, the Company has invested $75 million.
The project is expected to generate returns in excess of 21
percent at long term premium hard coking coal prices (~$180/tonne - real) from the initial 20 million
tons of longwall production.
Wards Well – On October
25, the company reached an agreement to acquire a large
portion of the Wards Well coal deposit that is immediately adjacent
to our North Goonyella mine, for cash consideration of $136 million and a contingent royalty of up to
$200 million payable after recovery
of our full project investment and coal prices exceeding certain
targets. The acquisition represents a strategic opportunity
to extend the mine life of our premium hard coking coal North
Goonyella mine by over 20 years through an integrated 130 million
ton mine plan.
Shoal Creek – Development coal production continues
and is ahead of target with favorable geological conditions in the
L panel area. All significant longwall equipment is now at
site and longwall shields are being positioned on the face.
First longwall production is anticipated early in the first quarter
of 2024.
Metropolitan – Replacing the existing longwall kit
at the mine (excluding shields). New equipment will be in
place as the mine progresses to the next longwall panel commencing
in the first quarter of 2024. Capital expenditures associated
with the longwall equipment have largely been accounted for in
2023.
Shareholder Return Program
Peabody generated $87.5 million in
operating cash flow from continuing operations in the third quarter
which included $81.0 million in
working capital charges. The Company also invested
$68.1 million in capital expenditures
and reached a $72.0 million cash
settlement with the DOL for disputed black lung liabilities from
discontinued operations. AFCF1 for the first nine
months of 2023 was $647.6 million.
Based on financial results for the nine months ended
September 30, 2023 and the
$0.075 per share dividend declared on
October 26, 2023, at least
$103.6 million is currently available
for additional 2023 shareholder returns in accordance with our
previously announced program.
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
Sept.
|
|
Sept.
|
|
2023
|
|
2023
|
|
(Dollars in
millions)
|
|
Cash Flow from
Operations:
|
$
13.4
|
|
$
753.1
|
|
- Cash Flows
Used in Investing Activities
|
(54.6)
|
|
(174.6)
|
|
- Distributions
to Noncontrolling Interest
|
(36.1)
|
|
(58.9)
|
|
+/- Changes to
Restricted Cash and Collateral (1)
|
88.3
|
|
128.0
|
|
- Anticipated
Expenditures or Other Requirements
|
—
|
|
—
|
|
Available Free Cash
Flow (AFCF)
|
$
11.0
|
|
$
647.6
|
|
Allocation for
shareholder returns
|
|
|
65 %
|
|
Total shareholder
returns
|
|
|
$
420.9
|
|
- Dividends paid
(2)
|
|
|
(20.7)
|
|
- Share
repurchases (3)
|
|
|
(286.7)
|
|
- Declared
dividends (4)
|
|
|
(9.9)
|
|
Total available for
shareholder returns
|
|
|
$
103.6
|
|
(1) This amount is
equal to the total change in Restricted Cash and Collateral on the
balance sheet, excluding partially offsetting amounts
already included in cash flow from operations of $29 million and
$146 million for the quarter and nine months ended September 30,
2023,
respectively and the $660 million one-time funding related to the
surety program in the first quarter.
(2) Does not
include $0.2 million of non-cash dividend equivalent units
issued.
(3) Includes
share repurchases through October 20, 2023.
(4) Represents
dividends declared that remain payable as of the date of this
release.
|
|
From the start of 2023 through October
20, 2023, the Company has returned $307.4 million to shareholders, including a fixed
dividend of $20.7 million and share
repurchases of $286.7 million.
The Company has repurchased 13.4 million shares, or 9.3% of shares
outstanding.
The Board of Directors continues to evaluate the shareholder
return program and it currently views share repurchases as value
accretive and an efficient way to return capital to
shareholders. All future shareholder returns remain at the
discretion of the Board of Directors.
Fourth Quarter 2023 Outlook
Seaborne Thermal
- Volumes are expected to be 4.2 million tons, including 2.8
million export tons. 0.5 million export tons are priced at
$161 per ton, and approximately 1.5
million tons of high ash product and 0.8 million tons of Newcastle
product are unpriced.
- Costs are expected to be $45-$50 per ton for
the quarter, resulting in lower full year cost guidance of
$45-$50
per ton
Seaborne Metallurgical
- Seaborne met volumes are expected to be 2.2 million tons. 0.2
million tons are priced at $164 per
ton. The remaining unpriced volumes are expected to achieve 65 to
70 percent of the premium hard coking coal price index.
- Costs are expected to be $110-$120 per ton
for the quarter
U.S. Thermal
- PRB volume is expected to be approximately 21 million tons at
an average price of $13.30 per ton
and costs of approximately $11.55 per
ton.
- Other U.S. Thermal volume is expected to be approximately 4.1
million tons at an average price of $51.40 per ton and costs of approximately
$43-$44
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
|
|
|
|
|
|
|
|
2023 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 - 16
|
13.6
|
$85.30
|
$45.00 -
$50.00
|
|
Seaborne Thermal
(Export)
|
9.5 - 10.5
|
7.9
|
$129.85
|
NA
|
|
Seaborne Thermal
(Domestic)
|
~5.5
|
5.7
|
$23.76
|
NA
|
|
Seaborne
Metallurgical
|
6.5 - 7.5
|
5.0
|
$187.73
|
$120.00 -
$130.00
|
|
PRB U.S.
Thermal
|
80 - 85
|
93
|
$13.62
|
$11.50 -
$12.25
|
|
Other U.S.
Thermal
|
16.5 - 17.5
|
18.6
|
$52.60
|
$38.00 -
$42.00
|
|
|
|
|
|
|
Other Annual
Financial Metrics ($ in millions)
|
|
|
2023 Full
Year
|
|
|
|
|
SG&A
|
$90
|
|
|
|
|
Major Project / Growth
Capital Expenditures
|
$200
|
|
|
|
|
Total Capital
Expenditures
|
$325
|
|
|
|
|
ARO Cash
Spend
|
$60 - $70
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
~0.8 million tons of
unpriced export volumes are expected to price on average at
Globalcoal "NEWC" levels and ~1.5 million tons are expected to have
a higher ash content
and price at 80-95% of API 5 price levels.
|
|
|
|
Seaborne
Metallurgical
|
On average, Peabody's
unpriced metallurgical sales are anticipated to price at
65-70% 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 September 30, 2023.
Weighted average quality for the PRB segment 2023 volume is
approximately 8650 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 Sept. 30, 2023, Jun. 30, 2023 and Sept. 30, 2022 and the
Nine
Months Ended Sept. 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
|
Sept.
|
|
Jun.
|
|
Sept.
|
|
Sept.
|
|
Sept.
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons Sold
|
32.6
|
|
28.9
|
|
32.7
|
|
93.0
|
|
91.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
(1)
|
$
1,078.9
|
|
$
1,268.8
|
|
$
1,342.5
|
|
$
3,711.7
|
|
$
3,355.8
|
|
Operating Costs and
Expenses (2)
|
803.7
|
|
862.0
|
|
838.4
|
|
2,512.3
|
|
2,363.0
|
|
Depreciation, Depletion
and Amortization
|
82.3
|
|
80.6
|
|
80.7
|
|
239.2
|
|
227.4
|
|
Asset Retirement
Obligation Expenses
|
15.4
|
|
15.5
|
|
13.1
|
|
46.3
|
|
40.8
|
|
Selling and
Administrative Expenses
|
21.5
|
|
21.7
|
|
19.6
|
|
66.0
|
|
64.5
|
|
Restructuring
Charges
|
0.9
|
|
2.0
|
|
1.0
|
|
3.0
|
|
2.8
|
|
Other Operating
(Income) Loss:
|
|
|
|
|
|
|
|
|
|
|
Net Gain on
Disposals
|
(1.4)
|
|
(5.2)
|
|
(5.0)
|
|
(8.5)
|
|
(22.7)
|
|
Asset
Impairment
|
—
|
|
—
|
|
1.7
|
|
2.0
|
|
1.7
|
|
Provision for NARM and
Shoal Creek Loss
|
3.3
|
|
33.7
|
|
—
|
|
37.0
|
|
—
|
|
Income from Equity
Affiliates
|
(5.6)
|
|
(2.3)
|
|
(27.5)
|
|
(9.7)
|
|
(120.9)
|
|
Operating
Profit
|
158.8
|
|
260.8
|
|
420.5
|
|
824.1
|
|
799.2
|
|
Interest
Expense
|
13.8
|
|
13.3
|
|
33.8
|
|
45.5
|
|
110.8
|
|
Net Loss on Early Debt
Extinguishment
|
—
|
|
2.0
|
|
8.7
|
|
8.8
|
|
34.5
|
|
Interest
Income
|
(20.3)
|
|
(23.1)
|
|
(4.9)
|
|
(56.5)
|
|
(6.3)
|
|
Net Periodic Benefit
Credit, Excluding Service Cost
|
(10.0)
|
|
(9.7)
|
|
(12.2)
|
|
(29.4)
|
|
(36.7)
|
|
Income from Continuing
Operations Before Income Taxes
|
175.3
|
|
278.3
|
|
395.1
|
|
855.7
|
|
696.9
|
|
Income Tax
Provision
|
46.5
|
|
74.2
|
|
10.7
|
|
238.7
|
|
21.0
|
|
Income from Continuing
Operations, Net of Income Taxes
|
128.8
|
|
204.1
|
|
384.4
|
|
617.0
|
|
675.9
|
|
Income (Loss) from
Discontinued Operations, Net of Income Taxes
|
2.5
|
|
(1.3)
|
|
(0.8)
|
|
(0.1)
|
|
(2.3)
|
|
Net Income
|
131.3
|
|
202.8
|
|
383.6
|
|
616.9
|
|
673.6
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
11.4
|
|
23.6
|
|
8.5
|
|
49.3
|
|
8.5
|
|
Net Income Attributable
to Common Stockholders
|
$
119.9
|
|
$
179.2
|
|
$
375.1
|
|
$
567.6
|
|
$
665.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
$
270.0
|
|
$
358.2
|
|
$
438.9
|
|
$
1,018.8
|
|
$
1,344.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Income
from Continuing Operations (4)(5)
|
$
0.80
|
|
$
1.16
|
|
$
2.34
|
|
$
3.68
|
|
$
4.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Net
Income Attributable to Common
Stockholders (4)
|
$
0.82
|
|
$
1.15
|
|
$
2.33
|
|
$
3.68
|
|
$
4.31
|
|
|
|
(1)
|
Includes net gains of
$40.3 million and $90.4 million related to unrealized
mark-to-market adjustments on
derivatives related to forecasted sales during the quarters ended
June 30, 2023 and September 30, 2022, respectively, and a
net gain
of $159.0 million and a net loss of $235.1 million during the
nine months ended September 30, 2023 and 2022,
respectively.
No gains or losses were recorded during the quarter ended
September 30, 2023.
|
|
(2)
|
Excludes items shown
separately.
|
|
(3)
|
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.
|
|
(4)
|
Weighted average
diluted shares outstanding were 149.9 million, 159.0 million and
161.9 million during the quarters ended September 30,
2023,
June 30, 2023 and September 30, 2022, respectively.
Weighted average diluted shares outstanding were 156.7 million and
155.6 million during the nine
months ended September 30, 2023 and 2022,
respectively.
|
|
(5)
|
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 Sept. 30, 2023
and Dec. 31, 2022
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Sep. 30,
2023
|
|
Dec. 31,
2022
|
|
Cash and Cash
Equivalents
|
$
988.5
|
|
$
1,307.3
|
|
Accounts Receivable,
Net
|
348.4
|
|
465.5
|
|
Inventories,
Net
|
352.0
|
|
296.1
|
|
Other Current
Assets
|
244.1
|
|
303.6
|
|
Total Current
Assets
|
1,933.0
|
|
2,372.5
|
|
Property, Plant,
Equipment and Mine Development, Net
|
2,805.5
|
|
2,865.0
|
|
Operating Lease
Right-of-Use Assets
|
36.0
|
|
26.9
|
|
Restricted Cash and
Collateral
|
866.1
|
|
187.4
|
|
Investments and Other
Assets
|
79.1
|
|
84.3
|
|
Deferred Income
Taxes
|
2.5
|
|
74.7
|
|
Total
Assets
|
$
5,722.2
|
|
$
5,610.8
|
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
$
12.7
|
|
$
13.2
|
|
Accounts Payable and
Accrued Expenses
|
826.8
|
|
905.5
|
|
Total Current
Liabilities
|
839.5
|
|
918.7
|
|
Long-Term Debt, Less
Current Portion
|
320.9
|
|
320.6
|
|
Deferred Income
Taxes
|
20.0
|
|
20.4
|
|
Asset Retirement
Obligations
|
669.7
|
|
665.8
|
|
Accrued Postretirement
Benefit Costs
|
150.6
|
|
156.5
|
|
Operating Lease
Liabilities, Less Current Portion
|
21.6
|
|
11.0
|
|
Other Noncurrent
Liabilities
|
187.4
|
|
223.0
|
|
Total
Liabilities
|
2,209.7
|
|
2,316.0
|
|
|
|
|
|
|
Common Stock
|
1.9
|
|
1.9
|
|
Additional Paid-in
Capital
|
3,981.2
|
|
3,975.9
|
|
Treasury
Stock
|
(1,655.7)
|
|
(1,372.9)
|
|
Retained
Earnings
|
930.6
|
|
383.9
|
|
Accumulated Other
Comprehensive Income
|
200.6
|
|
242.5
|
|
Peabody Energy
Corporation Stockholders' Equity
|
3,458.6
|
|
3,231.3
|
|
Noncontrolling
Interests
|
53.9
|
|
63.5
|
|
Total Stockholders'
Equity
|
3,512.5
|
|
3,294.8
|
|
Total Liabilities and
Stockholders' Equity
|
$
5,722.2
|
|
$
5,610.8
|
|
|
|
|
|
|
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 Sept. 30, 2023, Jun. 30, 2023 and Sept. 30, 2022 and the Nine
Months Ended Sept. 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
Sept.
|
|
Jun.
|
|
Sept.
|
|
Sept.
|
|
Sept.
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided By
Continuing Operations
|
$
87.5
|
|
$
355.8
|
|
$
496.8
|
|
$
832.7
|
|
$
508.9
|
|
Net Cash Used in
Discontinued Operations
|
(74.1)
|
|
(2.4)
|
|
(2.1)
|
|
(79.6)
|
|
(4.8)
|
|
Net Cash Provided
By Operating Activities
|
13.4
|
|
353.4
|
|
494.7
|
|
753.1
|
|
504.1
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
Additions to Property,
Plant, Equipment and Mine Development
|
(68.1)
|
|
(66.6)
|
|
(41.4)
|
|
(190.4)
|
|
(104.5)
|
|
Changes in Accrued
Expenses Related to Capital Expenditures
|
0.3
|
|
(3.8)
|
|
1.4
|
|
(5.1)
|
|
(8.3)
|
|
Proceeds from Disposal
of Assets, Net of Receivables
|
1.9
|
|
9.1
|
|
7.2
|
|
13.9
|
|
30.6
|
|
Contributions to Joint
Ventures
|
(202.6)
|
|
(164.6)
|
|
(199.1)
|
|
(573.4)
|
|
(475.1)
|
|
Distributions from
Joint Ventures
|
213.6
|
|
163.8
|
|
184.4
|
|
579.4
|
|
465.2
|
|
Advances to Related
Parties
|
—
|
|
(0.1)
|
|
(0.1)
|
|
(0.1)
|
|
(1.3)
|
|
Cash Receipts from
Middlemount Coal Pty Ltd and Other Related Parties
|
0.9
|
|
1.7
|
|
11.0
|
|
2.6
|
|
154.9
|
|
Other, Net
|
(0.6)
|
|
(1.0)
|
|
3.2
|
|
(1.5)
|
|
(0.4)
|
|
Net Cash (Used In)
Provided By Investing Activities
|
(54.6)
|
|
(61.5)
|
|
(33.4)
|
|
(174.6)
|
|
61.1
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
Proceeds from Long-Term
Debt
|
—
|
|
—
|
|
—
|
|
—
|
|
545.0
|
|
Repayments of Long-Term
Debt
|
(2.1)
|
|
(2.1)
|
|
(191.5)
|
|
(6.9)
|
|
(846.3)
|
|
Payment of Debt
Issuance and Other Deferred Financing Costs
|
—
|
|
—
|
|
(0.4)
|
|
(0.3)
|
|
(21.1)
|
|
Proceeds from Common
Stock Issuances, Net of Costs
|
—
|
|
—
|
|
—
|
|
—
|
|
222.0
|
|
Common Stock
Repurchases
|
(91.0)
|
|
(173.0)
|
|
—
|
|
(264.0)
|
|
—
|
|
Repurchase of Employee
Common Stock Relinquished for Tax Withholding
|
—
|
|
(0.5)
|
|
—
|
|
(13.7)
|
|
(2.6)
|
|
Dividends
Paid
|
(9.9)
|
|
(10.8)
|
|
—
|
|
(20.7)
|
|
—
|
|
Distributions to
Noncontrolling Interests
|
(36.1)
|
|
—
|
|
(3.7)
|
|
(58.9)
|
|
(17.5)
|
|
Net Cash Used In
Financing Activities
|
(139.1)
|
|
(186.4)
|
|
(195.6)
|
|
(364.5)
|
|
(120.5)
|
|
Net Change in Cash,
Cash Equivalents and Restricted Cash
|
(180.3)
|
|
105.5
|
|
265.7
|
|
214.0
|
|
444.7
|
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of
Period
|
1,811.9
|
|
1,706.4
|
|
1,133.3
|
|
1,417.6
|
|
954.3
|
|
Cash, Cash
Equivalents and Restricted Cash at End of Period
|
$
1,631.6
|
|
$
1,811.9
|
|
$
1,399.0
|
|
$
1,631.6
|
|
$
1,399.0
|
|
|
|
|
|
|
|
|
|
|
|
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 Sept. 30, 2023, Jun. 30, 2023 and Sept. 30, 2022 and the Nine
Months Ended Sept. 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Nine Months
Ended
|
|
|
|
Sept.
|
|
Jun.
|
|
Sept.
|
|
Sept.
|
|
Sept.
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing
Operations, Net of Income Taxes
|
$
128.8
|
|
$
204.1
|
|
$
384.4
|
|
$
617.0
|
|
$
675.9
|
|
Depreciation,
Depletion and Amortization
|
82.3
|
|
80.6
|
|
80.7
|
|
239.2
|
|
227.4
|
|
Asset Retirement
Obligation Expenses
|
15.4
|
|
15.5
|
|
13.1
|
|
46.3
|
|
40.8
|
|
Restructuring
Charges
|
0.9
|
|
2.0
|
|
1.0
|
|
3.0
|
|
2.8
|
|
Asset
Impairment
|
—
|
|
—
|
|
1.7
|
|
2.0
|
|
1.7
|
|
Provision for NARM and
Shoal Creek Loss
|
3.3
|
|
33.7
|
|
—
|
|
37.0
|
|
—
|
|
Changes in
Amortization of Basis Difference Related to Equity
Affiliates
|
(0.5)
|
|
(0.4)
|
|
(0.5)
|
|
(1.2)
|
|
(1.7)
|
|
Interest
Expense
|
13.8
|
|
13.3
|
|
33.8
|
|
45.5
|
|
110.8
|
|
Net Loss on Early Debt
Extinguishment
|
—
|
|
2.0
|
|
8.7
|
|
8.8
|
|
34.5
|
|
Interest
Income
|
(20.3)
|
|
(23.1)
|
|
(4.9)
|
|
(56.5)
|
|
(6.3)
|
|
Unrealized (Gains)
Losses on Derivative Contracts Related to Forecasted
Sales
|
—
|
|
(40.3)
|
|
(90.4)
|
|
(159.0)
|
|
235.1
|
|
Unrealized Losses
(Gains) on Foreign Currency Option Contracts
|
0.5
|
|
(2.8)
|
|
1.4
|
|
(0.1)
|
|
4.4
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
(0.7)
|
|
(0.6)
|
|
(0.8)
|
|
(1.9)
|
|
(2.2)
|
|
Income Tax
Provision
|
46.5
|
|
74.2
|
|
10.7
|
|
238.7
|
|
21.0
|
|
Adjusted EBITDA
(1)
|
$
270.0
|
|
$
358.2
|
|
$
438.9
|
|
$
1,018.8
|
|
$
1,344.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Costs and
Expenses
|
$
803.7
|
|
$
862.0
|
|
$
838.4
|
|
$
2,512.3
|
|
$
2,363.0
|
|
Unrealized (Losses)
Gains on Foreign Currency Option Contracts
|
(0.5)
|
|
2.8
|
|
(1.4)
|
|
0.1
|
|
(4.4)
|
|
Take-or-Pay
Contract-Based Intangible Recognition
|
0.7
|
|
0.6
|
|
0.8
|
|
1.9
|
|
2.2
|
|
Net Periodic Benefit
Credit, Excluding Service Cost
|
(10.0)
|
|
(9.7)
|
|
(12.2)
|
|
(29.4)
|
|
(36.7)
|
|
Total Reporting Segment
Costs (2)
|
$
793.9
|
|
$
855.7
|
|
$
825.6
|
|
$
2,484.9
|
|
$
2,324.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided By
Operating Activities
|
$
13.4
|
|
|
|
|
|
$
753.1
|
|
|
|
- Net Cash Used
In Investing Activities
|
(54.6)
|
|
|
|
|
|
(174.6)
|
|
|
|
- Distributions
to Noncontrolling Interests
|
(36.1)
|
|
|
|
|
|
(58.9)
|
|
|
|
+/- Changes to
Restricted Cash and Collateral
|
88.3
|
|
|
|
|
|
128.0
|
|
|
|
- Anticipated
Expenditures or Other Requirements
|
—
|
|
|
|
|
|
—
|
|
|
|
Available Free Cash
Flow (3)
|
$
11.0
|
|
|
|
|
|
$
647.6
|
|
|
|
|
|
(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.
|
|
(3)
|
Available Free Cash
Flow is defined as operating cash flow minus investing cash flow
and distributions to noncontrolling interests; plus/minus
changes to restricted cash and collateral (excluding one-time
effects of the recent surety agreement amendment) 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
operations.
|
|
|
|
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 Sept. 30, 2023, Jun. 30, 2023 and Sept. 30, 2022 and the
Nine Months Ended Sept. 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
Sept.
|
|
Jun.
|
|
Sept.
|
|
Sept.
|
|
Sept.
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Summary (In
Millions)
|
|
|
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
297.4
|
|
$
399.5
|
|
$
353.2
|
|
$
1,043.4
|
|
$
959.3
|
|
Seaborne
Metallurgical
|
247.0
|
|
372.5
|
|
310.7
|
|
907.9
|
|
1,165.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River
Basin
|
313.0
|
|
259.7
|
|
290.5
|
|
878.0
|
|
771.4
|
|
Other U.S.
Thermal
|
228.2
|
|
199.9
|
|
261.4
|
|
677.5
|
|
689.4
|
|
Total U.S.
Thermal
|
541.2
|
|
459.6
|
|
551.9
|
|
1,555.5
|
|
1,460.8
|
|
Corporate and Other
(1)
|
(6.7)
|
|
37.2
|
|
126.7
|
|
204.9
|
|
(230.1)
|
|
Total
|
$
1,078.9
|
|
$
1,268.8
|
|
$
1,342.5
|
|
$
3,711.7
|
|
$
3,355.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Reporting Segment
Costs Summary (In Millions) (2)
|
|
|
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
181.9
|
|
$
202.0
|
|
$
182.0
|
|
$
566.4
|
|
$
520.8
|
|
Seaborne
Metallurgical
|
168.4
|
|
270.0
|
|
197.5
|
|
636.0
|
|
571.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River
Basin
|
258.9
|
|
233.5
|
|
252.6
|
|
761.9
|
|
727.9
|
|
Other U.S.
Thermal
|
179.1
|
|
148.0
|
|
188.7
|
|
512.3
|
|
504.8
|
|
Total U.S.
Thermal
|
438.0
|
|
381.5
|
|
441.3
|
|
1,274.2
|
|
1,232.7
|
|
Corporate and
Other
|
5.6
|
|
2.2
|
|
4.8
|
|
8.3
|
|
(1.3)
|
|
Total
|
$
793.9
|
|
$
855.7
|
|
$
825.6
|
|
$
2,484.9
|
|
$
2,324.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
Seaborne Thermal
|
$
115.5
|
|
$
197.5
|
|
$
171.2
|
|
$
477.0
|
|
$
438.5
|
|
Adjusted EBITDA -
Seaborne Metallurgical
|
78.6
|
|
102.5
|
|
113.2
|
|
271.9
|
|
593.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
Powder River Basin
|
54.1
|
|
26.2
|
|
37.9
|
|
116.1
|
|
43.5
|
|
Adjusted EBITDA - Other
U.S. Thermal
|
49.1
|
|
51.9
|
|
72.7
|
|
165.2
|
|
184.6
|
|
Adjusted EBITDA - Total
U.S. Thermal
|
103.2
|
|
78.1
|
|
110.6
|
|
281.3
|
|
228.1
|
|
Middlemount
(3)
|
7.7
|
|
3.7
|
|
27.9
|
|
13.7
|
|
121.9
|
|
Resource Management
Results (4)
|
3.1
|
|
6.0
|
|
5.2
|
|
11.4
|
|
22.5
|
|
Selling and
Administrative Expenses
|
(21.5)
|
|
(21.7)
|
|
(19.6)
|
|
(66.0)
|
|
(64.5)
|
|
Other Operating Costs,
Net (5)
|
(16.6)
|
|
(7.9)
|
|
30.4
|
|
29.5
|
|
3.8
|
|
Adjusted EBITDA
(2)
|
$
270.0
|
|
$
358.2
|
|
$
438.9
|
|
$
1,018.8
|
|
$
1,344.2
|
|
|
|
(1)
|
Includes net gains of
$40.3 million and $90.4 million related to unrealized
mark-to-market adjustments on derivatives related to forecasted
sales during the
quarters ended June 30, 2023 and September 30, 2022,
respectively, and a net gain of $159.0 million and a net loss
of $235.1 million during the nine
months ended September 30, 2023 and 2022, respectively. No
gains or losses were recorded during the quarter ended
September 30, 2023.
|
|
(2)
|
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.
|
|
(3)
|
We account for our 50%
equity interest in Middlemount Coal Pty Ltd. (Middlemount), which
owns the Middlemount Mine, under the equity method.
Middlemount's standalone results exclude the impact of related
changes in amortization of basis difference recorded by the company
in applying the equity
method. Middlemount's standalone results include (on a 50%
attributable basis):
|
|
|
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
|
Sept.
|
|
Jun.
|
|
Sept.
|
|
Sept.
|
|
Sept.
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(In
Millions)
|
|
Tons sold
|
0.4
|
|
0.3
|
|
0.4
|
|
1.0
|
|
1.2
|
|
Depreciation, depletion
and amortization and asset retirement obligation
expenses
|
$
1.8
|
|
$
1.7
|
|
$
1.7
|
|
$
5.1
|
|
$
5.7
|
|
Net interest
expense
|
0.1
|
|
—
|
|
—
|
|
0.1
|
|
0.2
|
|
Income tax
provision
|
3.3
|
|
1.6
|
|
11.2
|
|
5.9
|
|
50.5
|
|
(4)
|
Includes gains (losses)
on certain surplus coal reserve and surface land sales and property
management costs and revenue.
|
|
(5)
|
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 North Goonyella
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, 2022 and Quarterly
Report on Form 10-Q for the quarter ended Mar. 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