ST. LOUIS, Feb. 5, 2020 /PRNewswire/ -- Peabody (NYSE: BTU)
today announced its fourth quarter 2019 operating results,
including revenues of $1.12 billion;
loss from continuing operations, net of income taxes of
$290.2 million; net loss attributable
to common stockholders of $289.8
million; diluted loss per share from continuing operations
of $3.12; and Adjusted
EBITDA1 of $204.9
million.
"During the fourth quarter, Peabody made a number of operational
improvements in Australia, reduced
costs in four of five operating segments, opportunistically
repurchased bonds to reduce debt, generated substantial cash from
commercial settlements and progressed the regulatory process for
the proposed PRB/Colorado joint
venture," said President and Chief Executive Officer Glenn Kellow. "For 2020, we are targeting
improved met coal volumes and costs, lower SG&A and reduced
North Goonyella holding costs. Those benefits are expected to
partly offset current lower pricing in all segments, lower U.S.
thermal volumes, and the loss of some $200
million in contributions from the closing of the Kayenta and
Millennium Mines."
Fourth Quarter and Full Year 2019
Results
Fourth quarter 2019 revenues totaled $1.12 billion compared to $1.40 billion in the prior year, primarily driven
by 17 percent lower seaborne metallurgical coal volumes and reduced
pricing.
Depreciation, depletion, and amortization (DD&A) declined 31
percent from the prior year to $121.6
million, primarily due to the elimination of Kayenta Mine
DD&A in the fourth quarter, roll-off of contract amortization
expense and lower volumes.
Following final Commonwealth approval in the fourth quarter of
2019, Peabody completed the formation of the United Wambo joint
venture and recognized a $48.1
million gain.
The company recognized $250.2
million in non-cash impairment charges largely related to
changes in life of mine assumptions in New Mexico and unallocated reserves in the
Illinois Basin and Colorado.
As noted last quarter, Peabody also wrote-off $58.5 million at the North Goonyella Mine,
primarily related to prior panel development. Based on lower
discount rates, Peabody recognized a $67.4
million mark-to-market loss on its postretirement healthcare
liabilities, compared to a gain of $125.5
million in the prior year.
Fourth quarter net loss from continuing operations, net of
income taxes totaled $290.2 million
compared to net income from continuing operations, net of income
taxes of $233.5 million in the prior
year and diluted loss per share from continuing operations of
$3.12 compared to income of
$1.97 in the prior year.
Fourth quarter Adjusted EBITDA totaled $204.9 million and included approximately
$89 million associated with favorable
customer negotiations, $23.0 million
in restructuring costs and $11.8
million in transaction costs related to the proposed
PRB/Colorado joint venture.
Fourth quarter restructuring charges primarily relate to actions
taken at the North Goonyella Mine and U.S. mine closures, with
approximately $7 million related to
the company's organizational realignment activities. As
Peabody continued to progress the regulatory process for the
proposed PRB/Colorado joint
venture, certain activities were accelerated from the first quarter
of 2020 to December.
Full-year 2019 revenues totaled $4.62
billion compared to $5.58
billion in the prior year on an 11 percent decline in
volumes and lower pricing, reflecting industry conditions.
Full-year 2019 loss from continuing operations, net of income
taxes totaled $188.3 million, while
Adjusted EBITDA totaled $837.1
million.
Segment Performance
The seaborne thermal segment exported 3.3 million tons at an
average realized price of $64.83 per
short ton, with the remainder delivered under a long-term domestic
contract in the fourth quarter. For the full year, Peabody's
export thermal sales totaled 11.5 million tons with domestic
shipments totaling 8.0 million tons. During the quarter, the
Wambo complex had improved production, which contributed to strong
segment cost performance of $30.68
per short ton and underpinned fourth quarter seaborne thermal
margins of 33 percent. In addition, the Wilpinjong Mine had record
railings in 2019.
Fourth quarter seaborne metallurgical coal sales totaled 1.9
million tons with Adjusted EBITDA margins of $15.71 per ton, excluding North Goonyella
costs. Production improved significantly at the Coppabella
and Moorvale mines, with the fourth quarter marking the highest
quarterly production volumes for the year. As a result, the
metallurgical segment delivered a 10-percent cost-per-ton
improvement compared to the prior year, excluding North Goonyella
costs, despite 17 percent lower year-over-year volumes.
|
|
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|
|
|
|
|
|
|
1 Adjusted EBITDA, Free Cash Flow and
Net Debt are non-GAAP financial measures. Revenues per ton,
costs per ton, Adjusted EBITDA margin per ton and percent are
non-GAAP operating/statistical measures. Adjusted EBITDA
margin is equal to segment Adjusted EBITDA divided by segment
revenues. Please refer to the tables and related notes in
this press release for a reconciliation of non-GAAP financial
measures.
|
Fourth quarter seaborne metallurgical cost performance of
$88.91 per ton (excluding North
Goonyella costs) improved 15 percent relative to September
year-to-date costs per ton. As anticipated, fourth
quarter North Goonyella costs were significantly reduced to
$16.9 million following the reduction
in workforce in late October
2019.
Within the U.S. thermal business, Peabody successfully concluded
its negotiations with the owners of the power plant previously
served by the Kayenta Mine, resulting in a one-time $69 million settlement related to recovery of
additional contract costs. In addition, the company reached a
favorable settlement with a Powder River Basin (PRB) customer
resulting in $20 million of
incremental Adjusted EBITDA in the fourth quarter, approximately
$15 million of which would have been
attributed to periods between 2016 and 2018, but could not be
recognized prior to settlement.
Fourth quarter PRB shipments declined 8 percent from the prior
year to 27.6 million tons, reflecting the challenging demand
backdrop across the United States. Continued strong cost
performance, along with the settlement discussed above, contributed
to 23 percent PRB Adjusted EBITDA margins in the fourth
quarter.
The Midwestern segment cut costs per ton by 10 percent from the
prior year to $31.61 per ton even as
volumes declined 20 percent, following reduced production from less
uneconomic mines. Costs improvements reflect higher
productivity across several mines as well as favorable mix from
ongoing mines.
Balance Sheet and Cash Flow
Peabody ended the year with $732.2
million of cash and cash equivalents and $1.28 billion of available liquidity.
Fourth quarter operating cash flows and capital expenditures
totaled $124.8 million and
$102.6 million, respectively.
During the quarter, Peabody shifted from programmatic share
repurchases to voluntary debt reduction. The company repaid
$47.2 million of debt, including
opportunistic open market purchases, bringing the company's
consolidated debt balance to $1.31
billion with Net Debt of $578.6
million at year end.
2020 Outlook
Seaborne Thermal Coal
- The United Wambo joint venture was formed in the fourth quarter
of 2019 following final federal permit approval. Joint
production is targeted to begin late in 2020 and allow for
optimized mine planning, improved strip ratios, enhanced quality
and the potential to extend the life of the open-cut operations
beyond 2040. Costs will be temporarily elevated in 2020 as
the mine transitions to the joint venture structure. Peabody
expects to spend approximately $60
million in capital expenditures in 2020 in conjunction with
the joint venture.
- The Wilpinjong Extension Project, which extends the life of one
of the lowest-cost thermal coal mines in Australia and offers attractive returns,
continues to progress. Capital expenditures associated with
the project are expected to total approximately $40 million in 2020.
Seaborne Metallurgical Coal
- Peabody is implementing actions to increase metallurgical coal
volumes and lower unit costs.
- 2020 seaborne metallurgical volumes are expected to be
approximately 8.3 million tons. Volumes are anticipated to be
weighted to the back half of the year as Shoal Creek is expected to
return to normal production levels, following a several-week outage
in the first half of the year to finalize an upgrade of the main
line conveyor system.
- Following a significant reduction in holding costs, Peabody is
commencing a commercial process for its North Goonyella Mine in
parallel with the existing and ongoing mine development plan.
The process comes in response to substantial expressions of
interest in this valuable asset from potential strategic partners
and other producers. Commercial outcomes could include a
strategic financial partner, joint venture structure or complete
sale of North Goonyella. At this time, Peabody is in
discussions with the Queensland Mines Inspectorate (QMI) regarding
ventilation and re-entry of Zone B. Based on the success of
discussions with QMI and/or progression of the commercial process
being launched, Peabody will determine the appropriate level, if
any, and timing of capital expenditures.
U.S. Thermal Coal
- Following an extensive review, and in line with the agreed upon
timeline, Peabody anticipates a decision from the U.S. Federal
Trade Commission regarding the formation of the highly synergistic
proposed PRB/Colorado joint
venture in the first quarter. In addition, Peabody and Arch
are engaged in permitted integration planning for the proposed
joint venture.
- Following the announced closure of the Kayenta Mine and several
other mines in the Midwest in 2019, Peabody will consolidate the
former Midwestern and Western segments into 'Other U.S. Thermal'
for purposes of segment reporting in 2020 and beyond.
Committed volume of approximately 20 million tons in 2020 reflects
the combined effects of these closures.
Financial
- The company continues to maintain strong cash balances, high
liquidity and substantial optionality as it evaluates its financial
execution. As part of our commitment to maintain financial
strength, Peabody is now focused on reducing debt and has already
reduced debt by nearly $50 million in
the fourth quarter of 2019. The pacing and quantum of debt
reduction will be dependent on industry and company-specific
factors contemplated in 2020, including commercial processes under
way for the PRB/Colorado joint
venture and North Goonyella Mine.
For 2020, the company is taking a "live within our means" approach
given changes in industry conditions and the operating
portfolio. The company has sharply reduced capital
expenditures, modified the portfolio and is continuing improvement
activities. The company is also suspending its dividends and
does not have any intentions to repurchase shares under current
conditions. Peabody believes these steps are important to
enable long-term value creation for the benefit of all
stakeholders, including shareholders.
2020 Guidance
- Macro industry conditions, including a mild Northern winter,
low natural gas prices, as well as trade and import policy
uncertainties, suggest a challenging backdrop to start the
year. Peabody is aggressively tackling costs and focusing on
the basics to improve operational performance, particularly in its
seaborne metallurgical segment.
- For 2020, Peabody is guiding toward increased met coal volumes
and reduced met costs, lower SG&A and lower North Goonyella
holding costs. These benefits are expected to mitigate
current pricing declines in all segments, lower U.S. thermal
volumes, and the loss of contributions from mine closures.
The company's 2020 earnings profile is expected to be weighted to
the second half of the year.
- Peabody has a strong U.S. contracted position with 96 million
tons in the PRB and 20 million tons in other U.S. thermal mines,
and has the flexibility to increase volumes should demand
warrant.
- Peabody is now targeting total 2020 capital expenditures of
approximately $250 million, 12
percent lower than 2019 actual expenditures. 2020
expenditures include life extension project capital at the
Wilpinjong and Wambo open-cut mines.
- SG&A for 2020 is expected to be approximately $135 million, compared to $145.0 million in 2019 and $158.1 million in 2018. The company's 2020
SG&A and segment cost guidance reflect efficiencies and cost
improvements associated with its previously announced $50 million annualized cost savings target.
Peabody continues to evaluate ways to further improve its cost
structure.
- U.S. thermal costs are expected to be impacted by increases in
the federal coal excise tax, which will revert to historical rates
and is expected to have an approximately $30
million impact on costs relative to 2019.
- Relative to the fourth quarter of 2019, the first quarter of
2020 is expected to be lower based on $89
million of non-recurring settlement income, approximately
$20 million to $30 million in pricing impacts as well as higher
seaborne met costs. Elevated first quarter met costs
(relative to full-year 2020 guidance) are expected to be driven by
an extended longwall move at the Metropolitan Mine, preparation for
a several-week upgrade of the main line conveyor system at the
Shoal Creek Mine and impacts of mine sequencing at the Moorvale
Mine.
Today's earnings call is scheduled for 10
a.m. CST and will be accompanied by a presentation available
at PeabodyEnergy.com.
Peabody (NYSE: BTU) is the leading global pure-play coal company
and a member of the Fortune 500, serving power and steel customers
in more than 25 countries on six continents. The company
offers significant scale, high-quality assets, and diversity in
geography and products. Peabody is guided by seven core
values: safety, customer focus, leadership, people, excellence,
integrity and sustainability. For further information, visit
PeabodyEnergy.com.
Contact:
Investors
Julie Gates
314.342.4336
Media
Michelle Constantine
314.342.4347
Condensed
Consolidated Statements of Operations (Unaudited)
|
For the Quarters
and Years Ended Dec. 31, 2019 and 2018
|
|
(In Millions, Except
Per Share Data)
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
Tons Sold
|
40.8
|
|
|
46.2
|
|
|
165.5
|
|
|
186.7
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,117.4
|
|
|
$
|
1,397.1
|
|
|
$
|
4,623.4
|
|
|
$
|
5,581.8
|
|
Operating Costs and
Expenses (1)
|
825.1
|
|
|
1,021.5
|
|
|
3,536.6
|
|
|
4,071.4
|
|
Depreciation,
Depletion and Amortization
|
121.6
|
|
|
175.9
|
|
|
601.0
|
|
|
679.0
|
|
Asset Retirement
Obligation Expenses
|
13.8
|
|
|
15.1
|
|
|
58.4
|
|
|
53.0
|
|
Selling and
Administrative Expenses
|
37.2
|
|
|
38.4
|
|
|
145.0
|
|
|
158.1
|
|
Restructuring Charges
(Benefit)
|
23.0
|
|
|
(0.5)
|
|
|
24.3
|
|
|
1.2
|
|
Transaction Costs
Related to Business Combinations and Joint Ventures
|
11.8
|
|
|
4.9
|
|
|
21.6
|
|
|
7.4
|
|
Other Operating
(Income) Loss:
|
|
|
|
|
|
|
|
Net Loss (Gain) on
Disposals
|
0.7
|
|
|
1.6
|
|
|
(2.1)
|
|
|
(48.2)
|
|
Gain on Formation of
United Wambo Joint Venture
|
(48.1)
|
|
|
—
|
|
|
(48.1)
|
|
|
—
|
|
Asset
Impairment
|
250.2
|
|
|
—
|
|
|
270.2
|
|
|
—
|
|
Provision for North
Goonyella Equipment Loss
|
58.5
|
|
|
17.1
|
|
|
83.2
|
|
|
66.4
|
|
North Goonyella
Insurance Recovery
|
—
|
|
|
—
|
|
|
(125.0)
|
|
|
—
|
|
Income from Equity
Affiliates
|
(10.9)
|
|
|
(3.7)
|
|
|
(3.4)
|
|
|
(68.1)
|
|
Operating (Loss)
Profit
|
(165.5)
|
|
|
126.8
|
|
|
61.7
|
|
|
661.6
|
|
Interest
Expense
|
36.8
|
|
|
36.5
|
|
|
144.0
|
|
|
149.3
|
|
Loss on Early Debt
Extinguishment
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
2.0
|
|
Interest
Income
|
(4.5)
|
|
|
(9.3)
|
|
|
(27.0)
|
|
|
(33.6)
|
|
Net Periodic Benefit
Costs, Excluding Service Cost
|
4.8
|
|
|
4.5
|
|
|
19.4
|
|
|
18.1
|
|
Net Mark-to-Market
Adjustment on Actuarially Determined Liabilities
|
67.4
|
|
|
(125.5)
|
|
|
67.4
|
|
|
(125.5)
|
|
Reorganization Items,
Net
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.8)
|
|
(Loss) Income from
Continuing Operations Before Income Taxes
|
(270.2)
|
|
|
220.6
|
|
|
(142.3)
|
|
|
664.1
|
|
Income Tax Provision
(Benefit)
|
20.0
|
|
|
(12.9)
|
|
|
46.0
|
|
|
18.4
|
|
(Loss) Income from
Continuing Operations, Net of Income Taxes
|
(290.2)
|
|
|
233.5
|
|
|
(188.3)
|
|
|
645.7
|
|
Income from
Discontinued Operations, Net of Income Taxes
|
13.8
|
|
|
27.1
|
|
|
3.2
|
|
|
18.1
|
|
Net (Loss)
Income
|
(276.4)
|
|
|
260.6
|
|
|
(185.1)
|
|
|
663.8
|
|
Less: Series A
Convertible Preferred Stock Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
102.5
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
13.4
|
|
|
8.0
|
|
|
26.2
|
|
|
16.9
|
|
Net (Loss) Income
Attributable to Common Stockholders
|
$
|
(289.8)
|
|
|
$
|
252.6
|
|
|
$
|
(211.3)
|
|
|
$
|
544.4
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
|
204.9
|
|
|
$
|
273.7
|
|
|
$
|
837.1
|
|
|
$
|
1,379.3
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS - (Loss)
Income from Continuing Operations (3)(4)
|
$
|
(3.12)
|
|
|
$
|
1.97
|
|
|
$
|
(2.07)
|
|
|
$
|
4.28
|
|
|
|
|
|
|
|
|
|
Diluted EPS - Net
(Loss) Income Attributable to Common Stockholders
(3)
|
$
|
(2.98)
|
|
|
$
|
2.20
|
|
|
$
|
(2.04)
|
|
|
$
|
4.43
|
|
|
(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)
|
During the quarter
and year ended December 31, 2019, weighted average diluted
shares outstanding were 97.3 million and 103.7 million,
respectively. During the quarter and year ended December 31,
2018, diluted EPS was calculated under the two-class method which
treats participating securities as having rights to earnings that
otherwise would have been available to common stockholders and
assumes that participating securities are not exercised or
converted. As such, weighted average diluted shares outstanding
were 114.7 million and 121.0 million during the quarter
and year ended December 31, 2018, respectively, and excluded
weighted average shares outstanding related to the participating
securities of 2.1 million for the year ended December 31,
2018.
|
|
|
(4)
|
Reflects (loss)
income from continuing operations, net of income taxes less
preferred stock dividends and net income attributable to
noncontrolling interests.
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Supplemental
Financial Data (Unaudited)
|
For the Quarters
and Years Ended Dec. 31, 2019 and 2018
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Tons Sold (In
Millions)
|
|
|
|
|
|
|
|
Seaborne Thermal
Mining Operations
|
5.4
|
|
|
5.5
|
|
|
19.5
|
|
|
19.1
|
|
Seaborne
Metallurgical Mining Operations
|
1.9
|
|
|
2.3
|
|
|
8.1
|
|
|
11.0
|
|
Powder River Basin
Mining Operations
|
27.6
|
|
|
30.0
|
|
|
108.1
|
|
|
120.3
|
|
Midwestern U.S.
Mining Operations
|
3.7
|
|
|
4.6
|
|
|
16.0
|
|
|
18.9
|
|
Western U.S. Mining
Operations
|
1.9
|
|
|
3.5
|
|
|
11.9
|
|
|
14.7
|
|
Total U.S. Thermal
Mining Operations
|
33.2
|
|
|
38.1
|
|
|
136.0
|
|
|
153.9
|
|
Corporate and
Other
|
0.3
|
|
|
0.3
|
|
|
1.9
|
|
|
2.7
|
|
Total
|
40.8
|
|
|
46.2
|
|
|
165.5
|
|
|
186.7
|
|
|
|
|
|
|
|
|
|
Revenue Summary (In
Millions)
|
|
|
|
|
|
|
|
Seaborne Thermal
Mining Operations
|
$
|
251.0
|
|
|
$
|
325.3
|
|
|
$
|
971.7
|
|
|
$
|
1,099.2
|
|
Seaborne
Metallurgical Mining Operations
|
201.4
|
|
|
299.0
|
|
|
1,033.1
|
|
|
1,553.0
|
|
Powder River Basin
Mining Operations
|
325.2
|
|
|
340.3
|
|
|
1,228.7
|
|
|
1,424.8
|
|
Midwestern U.S.
Mining Operations
|
147.1
|
|
|
193.3
|
|
|
669.7
|
|
|
801.0
|
|
Western U.S. Mining
Operations
|
191.5
|
|
|
152.6
|
|
|
639.7
|
|
|
592.0
|
|
Total U.S. Thermal
Mining Operations
|
663.8
|
|
|
686.2
|
|
|
2,538.1
|
|
|
2,817.8
|
|
Corporate and
Other
|
1.2
|
|
|
86.6
|
|
|
80.5
|
|
|
111.8
|
|
Total
|
$
|
1,117.4
|
|
|
$
|
1,397.1
|
|
|
$
|
4,623.4
|
|
|
$
|
5,581.8
|
|
|
|
|
|
|
|
|
|
|
Total Reporting
Segment Costs Summary (In Millions) (1)
|
|
|
|
|
|
|
|
Seaborne Thermal
Mining Operations
|
$
|
167.5
|
|
|
$
|
187.8
|
|
|
$
|
642.3
|
|
|
$
|
647.2
|
|
Seaborne
Metallurgical Mining Operations
|
188.2
|
|
|
273.2
|
|
|
892.9
|
|
|
1,111.6
|
|
North Goonyella
Equipment & Development Costs
|
16.9
|
|
|
49.0
|
|
|
77.6
|
|
|
58.0
|
|
Seaborne
Metallurgical Mining Operations, Excluding North Goonyella
Equipment & Development Costs
|
171.3
|
|
|
224.2
|
|
|
815.3
|
|
|
1,053.6
|
|
Powder River Basin
Mining Operations
|
251.3
|
|
|
280.5
|
|
|
1,007.5
|
|
|
1,140.3
|
|
Midwestern U.S.
Mining Operations
|
116.4
|
|
|
160.0
|
|
|
539.0
|
|
|
655.8
|
|
Western U.S. Mining
Operations
|
102.1
|
|
|
101.6
|
|
|
409.0
|
|
|
446.6
|
|
Total U.S. Thermal
Mining Operations
|
469.8
|
|
|
542.1
|
|
|
1,955.5
|
|
|
2,242.7
|
|
Corporate and
Other
|
31.1
|
|
|
28.3
|
|
|
73.5
|
|
|
115.2
|
|
Total
|
$
|
856.6
|
|
|
$
|
1,031.4
|
|
|
$
|
3,564.2
|
|
|
$
|
4,116.7
|
|
|
|
|
|
|
|
|
|
Other Supplemental
Financial Data (In Millions)
|
|
|
|
|
|
|
|
Adjusted EBITDA -
Seaborne Thermal Mining Operations
|
$
|
83.5
|
|
|
$
|
137.5
|
|
|
$
|
329.4
|
|
|
$
|
452.0
|
|
Adjusted EBITDA -
Seaborne Metallurgical Mining Operations
|
13.2
|
|
|
25.8
|
|
|
140.2
|
|
|
441.4
|
|
North Goonyella
Equipment & Development Costs
|
16.9
|
|
|
49.0
|
|
|
77.6
|
|
|
58.0
|
|
Adjusted EBITDA -
Seaborne Metallurgical Mining Operations, Excluding North Goonyella
Equipment & Development Costs
|
30.1
|
|
|
74.8
|
|
|
217.8
|
|
|
499.4
|
|
Adjusted EBITDA -
Powder River Basin Mining Operations
|
73.9
|
|
|
59.8
|
|
|
221.2
|
|
|
284.5
|
|
Adjusted EBITDA -
Midwestern U.S. Mining Operations
|
30.7
|
|
|
33.3
|
|
|
130.7
|
|
|
145.2
|
|
Adjusted EBITDA -
Western U.S. Mining Operations
|
89.4
|
|
|
51.0
|
|
|
230.7
|
|
|
145.4
|
|
Adjusted EBITDA -
Total U.S. Thermal Mining Operations
|
194.0
|
|
|
144.1
|
|
|
582.6
|
|
|
575.1
|
|
Middlemount
(2)
|
(4.9)
|
|
|
8.1
|
|
|
(9.8)
|
|
|
51.1
|
|
Resource Management
Results (3)
|
2.2
|
|
|
1.9
|
|
|
8.2
|
|
|
44.7
|
|
Selling and
Administrative Expenses
|
(37.2)
|
|
|
(38.4)
|
|
|
(145.0)
|
|
|
(158.1)
|
|
Transaction Costs
Related to Business Combinations and Joint Ventures
|
(11.8)
|
|
|
(4.9)
|
|
|
(21.6)
|
|
|
(7.4)
|
|
Other Operating
Costs, Net (4)
|
(34.1)
|
|
|
(0.4)
|
|
|
(46.9)
|
|
|
(19.5)
|
|
Adjusted EBITDA
(1)
|
$
|
204.9
|
|
|
$
|
273.7
|
|
|
$
|
837.1
|
|
|
$
|
1,379.3
|
|
|
|
|
|
|
|
|
|
Note:
See footnote explanations on following page
|
|
|
|
|
|
Supplemental
Financial Data (Unaudited)
|
For the Quarters
and Years Ended Dec. 31, 2019 and 2018
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues per Ton -
Mining Operations (5)
|
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
|
45.97
|
|
|
$
|
58.80
|
|
|
$
|
49.69
|
|
|
$
|
57.58
|
|
|
Seaborne
Metallurgical
|
104.62
|
|
|
131.89
|
|
|
127.62
|
|
|
141.06
|
|
|
Powder River
Basin
|
11.81
|
|
|
11.35
|
|
|
11.37
|
|
|
11.84
|
|
|
Midwestern
U.S.
|
39.95
|
|
|
42.53
|
|
|
41.90
|
|
|
42.44
|
|
|
Western
U.S.
|
97.86
|
|
|
43.26
|
|
|
53.48
|
|
|
40.20
|
|
|
Total U.S.
Thermal
|
20.00
|
|
|
18.03
|
|
|
18.66
|
|
|
18.31
|
|
|
|
|
|
|
|
|
|
|
Costs per Ton -
Mining Operations (5)(6)
|
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
|
30.68
|
|
|
$
|
33.91
|
|
|
$
|
32.84
|
|
|
$
|
33.90
|
|
|
Seaborne
Metallurgical
|
97.69
|
|
|
120.57
|
|
|
110.30
|
|
|
100.97
|
|
|
North Goonyella
Equipment & Development Costs
|
8.78
|
|
|
21.62
|
|
|
9.59
|
|
|
5.27
|
|
|
Seaborne
Metallurgical, Excluding North Goonyella Equipment &
Development Costs
|
88.91
|
|
|
98.95
|
|
|
100.71
|
|
|
95.70
|
|
|
Powder River
Basin
|
9.13
|
|
|
9.36
|
|
|
9.32
|
|
|
9.47
|
|
|
Midwestern
U.S.
|
31.61
|
|
|
35.21
|
|
|
33.72
|
|
|
34.75
|
|
|
Western
U.S.
|
52.13
|
|
|
28.80
|
|
|
34.19
|
|
|
30.33
|
|
|
Total U.S.
Thermal
|
14.15
|
|
|
14.24
|
|
|
14.38
|
|
|
14.57
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin per Ton - Mining Operations (5)(6)
|
|
|
|
|
|
|
|
|
Seaborne
Thermal
|
$
|
15.29
|
|
|
$
|
24.89
|
|
|
$
|
16.85
|
|
|
$
|
23.68
|
|
|
Seaborne
Metallurgical
|
6.93
|
|
|
11.32
|
|
|
17.32
|
|
|
40.09
|
|
|
North Goonyella
Equipment & Development Costs
|
8.78
|
|
|
21.62
|
|
|
9.59
|
|
|
5.27
|
|
|
Seaborne
Metallurgical, Excluding North Goonyella Equipment &
Development Costs
|
15.71
|
|
|
32.94
|
|
|
26.91
|
|
|
45.36
|
|
|
Powder River
Basin
|
2.68
|
|
|
1.99
|
|
|
2.05
|
|
|
2.37
|
|
|
Midwestern
U.S.
|
8.34
|
|
|
7.32
|
|
|
8.18
|
|
|
7.69
|
|
|
Western
U.S.
|
45.73
|
|
|
14.46
|
|
|
19.29
|
|
|
9.87
|
|
|
Total U.S.
Thermal
|
5.85
|
|
|
3.79
|
|
|
4.28
|
|
|
3.74
|
|
|
|
|
|
|
|
|
|
|
(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)
|
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 deferred tax asset valuation allowance and reserves and
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
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(In
Millions)
|
|
Tons sold
|
0.3
|
|
|
0.6
|
|
|
1.5
|
|
|
2.1
|
|
|
Depreciation,
depletion and amortization and asset retirement obligation
expenses
|
$
|
7.8
|
|
|
$
|
3.1
|
|
|
$
|
23.1
|
|
|
$
|
14.9
|
|
|
Net interest
expense
|
2.7
|
|
|
3.9
|
|
|
9.1
|
|
|
13.9
|
|
|
Income tax (benefit)
provision
|
(5.5)
|
|
|
2.6
|
|
|
(7.1)
|
|
|
18.0
|
|
|
|
(3)
|
Includes gains
(losses) on certain surplus coal reserve and surface land sales,
property management costs and revenues, the Q3 2018 gain of $20.5
million on the sale of surplus coal resources associated with the
Millennium Mine and the Q1 2018 gain of $20.6 million on the sale
of certain surplus land assets in Queensland's Bowen
Basin.
|
|
|
(4)
|
Includes trading and
brokerage activities, costs associated with post-mining activities,
certain coal royalty expenses, minimum charges on certain
transportation-related contracts, restructuring charges and the Q1
2018 gain of $7.1 million recognized on the sale of our interest in
the Red Mountain Joint Venture.
|
|
|
(5)
|
Revenues per Ton,
Costs per Ton and Adjusted EBITDA Margin per Ton are metrics used
by management to measure each of our mining segment's operating
performance. Revenues per Ton and Adjusted EBITDA Margin per Ton
are equal to revenues by segment and Adjusted EBITDA by segment,
respectively, divided by segment tons sold. Costs per Ton is equal
to Revenues 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 mining
segment level. We consider all measures reported on a per ton basis
to be operating/statistical measures; however, we include
reconciliations of the related non-GAAP financial measures
(Adjusted EBITDA and Total Reporting Segment Costs) in the
"Reconciliation of Non-GAAP Financial Measures" section in this
document.
|
|
|
(6)
|
Includes
revenue-based production taxes and royalties; excludes
depreciation, depletion and amortization; asset retirement
obligation expenses; selling and administrative expenses;
restructuring charges; asset impairment; provision for North
Goonyella equipment loss and related insurance recovery;
amortization of fresh start reporting adjustments related to
take-or-pay contract-based intangibles; and certain other costs
related to post-mining activities.
|
|
|
|
|
|
|
|
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
Condensed
Consolidated Balance Sheets
|
As of Dec. 31,
2019 and 2018
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
Dec. 31,
2019
|
|
Dec. 31,
2018
|
Cash and Cash
Equivalents
|
$
|
732.2
|
|
|
$
|
981.9
|
|
Accounts Receivable,
Net
|
329.5
|
|
|
450.4
|
|
Inventories
|
331.5
|
|
|
280.2
|
|
Other Current
Assets
|
220.7
|
|
|
243.1
|
|
Total Current
Assets
|
1,613.9
|
|
|
1,955.6
|
|
Property, Plant,
Equipment and Mine Development, Net
|
4,679.1
|
|
|
5,207.0
|
|
Operating Lease
Right-of-Use Assets
|
82.4
|
|
|
—
|
|
Investments and Other
Assets
|
139.1
|
|
|
212.6
|
|
Deferred Income
Taxes
|
28.3
|
|
|
48.5
|
|
Total
Assets
|
$
|
6,542.8
|
|
|
$
|
7,423.7
|
|
|
|
|
|
Current Portion of
Long-Term Debt
|
$
|
18.3
|
|
|
$
|
36.5
|
|
Accounts Payable and
Accrued Expenses
|
957.0
|
|
|
1,022.0
|
|
Total Current
Liabilities
|
975.3
|
|
|
1,058.5
|
|
Long-Term Debt, Less
Current Portion
|
1,292.5
|
|
|
1,330.5
|
|
Deferred Income
Taxes
|
28.8
|
|
|
9.7
|
|
Asset Retirement
Obligations
|
654.1
|
|
|
686.4
|
|
Accrued
Postretirement Benefit Costs
|
593.4
|
|
|
547.7
|
|
Operating Lease
Liabilities, Less Current Portion
|
52.8
|
|
|
—
|
|
Other Noncurrent
Liabilities
|
273.4
|
|
|
339.3
|
|
Total
Liabilities
|
3,870.3
|
|
|
3,972.1
|
|
|
|
|
|
Common
Stock
|
1.4
|
|
|
1.4
|
|
Additional Paid-in
Capital
|
3,351.1
|
|
|
3,304.7
|
|
Treasury
Stock
|
(1,367.3)
|
|
|
(1,025.1)
|
|
Retained
Earnings
|
597.0
|
|
|
1,074.5
|
|
Accumulated Other
Comprehensive Income
|
31.6
|
|
|
40.1
|
|
Peabody Energy
Corporation Stockholders' Equity
|
2,613.8
|
|
|
3,395.6
|
|
Noncontrolling
Interests
|
58.7
|
|
|
56.0
|
|
Total Stockholders'
Equity
|
2,672.5
|
|
|
3,451.6
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
6,542.8
|
|
|
$
|
7,423.7
|
|
|
|
|
|
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
and Years Ended Dec. 31, 2019 and 2018
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
Net Cash Provided
By Continuing Operations
|
$
|
127.6
|
|
|
$
|
233.1
|
|
|
$
|
705.4
|
|
|
$
|
1,516.9
|
|
Net Cash Used in
Discontinued Operations
|
(2.8)
|
|
|
(4.2)
|
|
|
(28.0)
|
|
|
(27.2)
|
|
Net Cash Provided
By Operating Activities
|
124.8
|
|
|
228.9
|
|
|
677.4
|
|
|
1,489.7
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
|
|
|
Additions to
Property, Plant, Equipment and Mine Development
|
(102.6)
|
|
|
(114.5)
|
|
|
(285.4)
|
|
|
(301.0)
|
|
Changes in Accrued
Expenses Related to Capital Expenditures
|
5.7
|
|
|
7.1
|
|
|
0.1
|
|
|
0.1
|
|
Federal Coal Lease
Expenditures
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
Insurance Proceeds
Attributable to North Goonyella Equipment Losses
|
—
|
|
|
—
|
|
|
23.2
|
|
|
—
|
|
Proceeds from
Disposal of Assets, Net of Receivables
|
2.4
|
|
|
7.4
|
|
|
30.0
|
|
|
76.4
|
|
Amount Attributable
to Acquisition of Shoal Creek Mine
|
—
|
|
|
(387.4)
|
|
|
(2.4)
|
|
|
(387.4)
|
|
Contributions to
Joint Ventures
|
(92.7)
|
|
|
(117.1)
|
|
|
(419.1)
|
|
|
(475.3)
|
|
Distributions from
Joint Ventures
|
92.1
|
|
|
128.7
|
|
|
408.8
|
|
|
483.7
|
|
Advances to Related
Parties
|
(14.8)
|
|
|
(8.2)
|
|
|
(27.3)
|
|
|
(13.8)
|
|
Cash Receipts from
Middlemount Coal Pty Ltd
|
—
|
|
|
25.6
|
|
|
14.7
|
|
|
106.7
|
|
Investment in Equity
Securities
|
(3.0)
|
|
|
—
|
|
|
(3.0)
|
|
|
(10.0)
|
|
Other, Net
|
(0.8)
|
|
|
6.6
|
|
|
(0.9)
|
|
|
3.8
|
|
Net Cash Used In
Investing Activities
|
(113.7)
|
|
|
(451.8)
|
|
|
(261.3)
|
|
|
(517.3)
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
|
Repayments of
Long-Term Debt
|
(47.2)
|
|
|
(12.0)
|
|
|
(71.1)
|
|
|
(85.0)
|
|
Payment of Debt
Issuance and Other Deferred Financing Costs
|
—
|
|
|
—
|
|
|
(6.4)
|
|
|
(21.2)
|
|
Common Stock
Repurchases
|
(29.7)
|
|
|
(135.1)
|
|
|
(329.9)
|
|
|
(834.7)
|
|
Repurchase of
Employee Common Stock Relinquished for Tax Withholding
|
—
|
|
|
—
|
|
|
(12.3)
|
|
|
(14.5)
|
|
Dividends
Paid
|
(14.2)
|
|
|
(15.0)
|
|
|
(258.1)
|
|
|
(59.6)
|
|
Distributions to
Noncontrolling Interests
|
(0.1)
|
|
|
—
|
|
|
(23.5)
|
|
|
(10.3)
|
|
Other, Net
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Net Cash Used In
Financing Activities
|
(91.3)
|
|
|
(162.1)
|
|
|
(701.3)
|
|
|
(1,025.2)
|
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
(80.2)
|
|
|
(385.0)
|
|
|
(285.2)
|
|
|
(52.8)
|
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of
Period
|
812.4
|
|
|
1,402.4
|
|
|
1,017.4
|
|
|
1,070.2
|
|
Cash, Cash
Equivalents and Restricted Cash at End of Period
|
$
|
732.2
|
|
|
$
|
1,017.4
|
|
|
$
|
732.2
|
|
|
$
|
1,017.4
|
|
|
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
and Years Ended Dec. 31, 2019 and 2018
|
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
Management believes that non-GAAP performance measures are used by
investors to measure our operating performance and lenders to
measure our ability to incur and service debt. 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
|
|
Year
Ended
|
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
Dec.
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
Continuing Operations, Net of Income Taxes
|
$
|
(290.2)
|
|
|
$
|
233.5
|
|
|
$
|
(188.3)
|
|
|
$
|
645.7
|
|
|
Depreciation,
Depletion and Amortization
|
121.6
|
|
|
175.9
|
|
|
601.0
|
|
|
679.0
|
|
|
Asset Retirement
Obligation Expenses
|
13.8
|
|
|
15.1
|
|
|
58.4
|
|
|
53.0
|
|
|
Gain on Formation of
United Wambo Joint Venture
|
(48.1)
|
|
|
—
|
|
|
(48.1)
|
|
|
—
|
|
|
Asset
Impairment
|
250.2
|
|
|
—
|
|
|
270.2
|
|
|
—
|
|
|
Provision for North
Goonyella Equipment Loss
|
58.5
|
|
|
17.1
|
|
|
83.2
|
|
|
66.4
|
|
|
North Goonyella
Insurance Recovery - Equipment (1)
|
—
|
|
|
—
|
|
|
(91.1)
|
|
|
—
|
|
|
Changes in Deferred
Tax Asset Valuation Allowance and Reserves and Amortization of
Basis Difference Related to Equity Affiliates
|
(19.1)
|
|
|
3.8
|
|
|
(18.8)
|
|
|
(18.3)
|
|
|
Interest
Expense
|
36.8
|
|
|
36.5
|
|
|
144.0
|
|
|
149.3
|
|
|
Loss on Early Debt
Extinguishment
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
2.0
|
|
|
Interest
Income
|
(4.5)
|
|
|
(9.3)
|
|
|
(27.0)
|
|
|
(33.6)
|
|
|
Net Mark-to-Market
Adjustment on Actuarially Determined Liabilities
|
67.4
|
|
|
(125.5)
|
|
|
67.4
|
|
|
(125.5)
|
|
|
Reorganization Items,
Net
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.8)
|
|
|
Unrealized Losses
(Gains) on Economic Hedges
|
2.0
|
|
|
(54.6)
|
|
|
(42.2)
|
|
|
(18.3)
|
|
|
Unrealized (Gains)
Losses on Non-Coal Trading Derivative Contracts
|
(1.0)
|
|
|
(0.7)
|
|
|
(1.2)
|
|
|
0.7
|
|
|
Fresh Start
Take-or-Pay Contract-Based Intangible Recognition
|
(2.7)
|
|
|
(5.2)
|
|
|
(16.6)
|
|
|
(26.7)
|
|
|
Income Tax Provision
(Benefit)
|
20.0
|
|
|
(12.9)
|
|
|
46.0
|
|
|
18.4
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
|
204.9
|
|
|
$
|
273.7
|
|
|
$
|
837.1
|
|
|
$
|
1,379.3
|
|
|
|
|
|
|
|
|
|
|
Operating Costs and
Expenses
|
$
|
825.1
|
|
|
$
|
1,021.5
|
|
|
$
|
3,536.6
|
|
|
$
|
4,071.4
|
|
|
Unrealized Gains
(Losses) on Non-Coal Trading Derivative Contracts
|
1.0
|
|
|
0.7
|
|
|
1.2
|
|
|
(0.7)
|
|
|
Fresh Start
Take-or-Pay Contract-Based Intangible Recognition
|
2.7
|
|
|
5.2
|
|
|
16.6
|
|
|
26.7
|
|
|
North Goonyella
Insurance Recovery - Cost Recovery and Business Interruption
(1)
|
—
|
|
|
—
|
|
|
(33.9)
|
|
|
—
|
|
|
Net Periodic Benefit
Costs, Excluding Service Cost
|
4.8
|
|
|
4.5
|
|
|
19.4
|
|
|
18.1
|
|
|
Restructuring Charges
(Benefit)
|
23.0
|
|
|
(0.5)
|
|
|
24.3
|
|
|
1.2
|
|
|
|
|
|
|
|
|
|
Total Reporting
Segment Costs (3)
|
$
|
856.6
|
|
|
$
|
1,031.4
|
|
|
$
|
3,564.2
|
|
|
$
|
4,116.7
|
|
|
|
|
|
|
|
|
|
Net Cash Provided By
Operating Activities
|
$
|
124.8
|
|
|
$
|
228.9
|
|
|
$
|
677.4
|
|
|
$
|
1,489.7
|
|
Net Cash Used In
Investing Activities
|
(113.7)
|
|
|
(451.8)
|
|
|
(261.3)
|
|
|
(517.3)
|
|
|
Add Back: Amount
Attributable to Acquisition of Shoal Creek Mine
|
—
|
|
|
387.4
|
|
|
2.4
|
|
|
387.4
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
(4)
|
$
|
11.1
|
|
|
$
|
164.5
|
|
|
$
|
418.5
|
|
|
$
|
1,359.8
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We recorded a $125.0
million insurance recovery during the year ended December 31, 2019
related to losses incurred at our North Goonyella Mine. Of this
amount, Adjusted EBITDA excludes an allocated amount applicable to
total equipment losses recognized at the time of the insurance
recovery settlement, which consisted of $24.7 million and $66.4
million recognized during the years ended December 31, 2019 and
2018, respectively. The remaining $33.9 million, applicable to
incremental costs and business interruption losses, is included in
Adjusted EBITDA for the year ended December 31,
2019.
|
|
|
(2)
|
Adjusted EBITDA is
defined as (loss) income from continuing operations before
deducting net interest expense, income taxes, asset retirement
obligation expenses, depreciation, depletion and amortization and
reorganization items, net. 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.
|
|
|
(3)
|
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 metric to measure each of our segment's operating
performance.
|
|
|
(4)
|
Free Cash Flow is
defined as net cash provided by operating activities less net cash
used in investing activities and excludes cash outflows related to
business combinations. Free Cash Flow is used by management as a
measure of our financial performance and 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.
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited)
|
As of Dec. 31,
2019
|
|
|
|
|
|
|
|
|
|
(Dollars In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
Management believes that non-GAAP performance measures are used by
investors to measure our operating performance and lenders to
measure our ability to incur and service debt. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Dec. 31,
2019
|
Current Portion of
Long-Term Debt
|
|
|
|
|
|
|
$
|
18.3
|
|
Long-Term Debt, Less
Current Portion
|
|
|
|
|
|
|
1,292.5
|
|
|
Less: Cash and Cash
Equivalents
|
|
|
|
|
|
|
(732.2)
|
|
Net Debt
(1)
|
|
|
|
|
|
|
$
|
578.6
|
|
|
|
(1)
|
Net Debt is defined
as current portion of long-term debt plus long-term debt, less
current portion less cash and cash equivalents. Net Debt is
reviewed by management as an indicator of our overall financial
flexibility, capital structure and leverage.
|
|
This information
is intended to be reviewed in conjunction with the company's
filings with the SEC.
|
2020 Guidance Targets
Segment
Performance
|
|
Segment
|
Volume
(millions of
short tons)
|
Contracted
Pricing per
Short Ton
|
Average Cost
per Short Ton
|
PRB –
Priced
|
~96
|
$11.13
|
~$9.70
|
Other U.S. Thermal –
Priced
|
~20
|
$37
|
~$31.75
|
Seaborne Thermal
(Export) – Priced
|
~3.2
|
~$65
|
~$32
|
Seaborne Thermal
(Export) – Total
|
~11.5
|
|
Seaborne Thermal
(Domestic)
|
~7.7
|
|
Seaborne
Metallurgical
|
~8.3
|
|
~$95
|
|
|
Other Annual
Financial Metrics ($ in 4millions)
|
|
|
SG&A
|
~$135
|
DD&A
|
~$425
|
Net Cash Interest
Payments
|
~$110
|
Interest Expense
(Including Non-Cash)
|
~$135
|
Capital
Expenditures
|
~$250
|
ARO Cash
Spend
|
~$65
|
|
|
Supplemental
Pricing Information
|
|
|
U.S.
Thermal
|
PRB and Other U.S.
Thermal volumes reflect volumes priced as of Dec. 31, 2019.
Peabody has the flexibility to increase volumes should demand
warrant.
|
|
|
Seaborne
Thermal
|
~65% of Peabody's
annual export seaborne thermal sales realize the NEWC index price
with the remaining 35% realizing the API 5 price. Peabody's
2020 priced position reflects a combination of NEWC and API 5
quality in USD per short ton.
|
|
|
Seaborne
Metallurgical
|
On average, Peabody's
total metallurgical sales realize ~75% of the premium hard-coking
coal index price. Peabody's total metallurgical sales
are expected to be comprised of ~40% hard-coking coal and ~60%
PCI.
|
|
Note: Seaborne
thermal costs reflect the weighted average cost for both export and
domestic volumes.
|
|
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.
|
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 current expectations or predictions of future
conditions, events or results. All statements that address
operating performance, events or developments that Peabody expects
will occur in the future are forward-looking statements. They may
include estimates of value accretion, joint venture synergies,
closing of the joint venture, revenues, income, earnings per share,
cost savings, capital expenditures, dividends, share repurchases,
debt reduction, liquidity, capital structure, market share,
industry volume, or other financial items, descriptions of
management's plans or objectives for future operations, or
descriptions of assumptions underlying any of the above. 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, including (i)
risks that the proposed joint venture may not be completed,
including as a result of a failure to obtain required regulatory
approvals, (ii) risks that the anticipated synergies from the
proposed joint venture may not be fully realized, including as a
result of actions necessary to obtain regulatory approvals, (iii)
other factors that are described in Peabody's Annual Report on Form
10-K for the fiscal year ended Dec. 31,
2018, and (iv) 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