Peabody Energy (NYSE: NYSE: BTU ), the largest US thermal coal producer, is the kind of stock that makes most investors roll their eyes. It's a coal company. But here's the thing: BTU is cheap. I mean genuinely mispriced.Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no busi ...

ST. LOUIS, July 17, 2025 /PRNewswire/ -- On Thursday, July 31, 2025, Peabody (NYSE: BTU) will announce results for the quarter ended June 30, 2025. A conference call with management is scheduled for 10 a.m. CT on Thursday, July 31, 2025.Instructions for the conference call participation and accessing a replay, as well as other investor data, will be available at PeabodyEnergy.com prior to the call. Participants may also access the call using the following phone numbers:U.S. Toll Free          1 833 816 1387 ...

Core Insights - Peabody Energy Corp (NYSE:BTU) has seen a significant decline, trading at $13.24, down 1.9%, and has lost 37% in 2025, indicating a long-term bearish trend [1] - The stock is near a historically bearish trendline, suggesting that the pullback may continue [1] - The stock has been below its 100-day moving average for at least eight of the last ten trading days, with 80% of the last two months spent below this trendline [2] Technical Analysis - Historical data shows that after similar signals in the past five years, the stock declined one month later every time, averaging an 8.07% drop, which could place BTU near $12 [2] - The current call/put volume ratio of 1.83 indicates a higher level of bullish sentiment among options traders, ranking above 83% of readings from the past year [4] - The Schaeffer's Volatility Index (SVI) of 59% suggests that options traders are pricing in low volatility expectations, ranking in the 31st percentile of its annual range [5] Analyst Recommendations - All four brokerage firms covering Peabody stock have a "strong buy" recommendation, indicating potential for bearish sentiment to unwind in the future [4]

Group 1 - Peabody Energy is a coal producing company based in the United States, previously operating in states such as Wyoming, Colorado, New Mexico, Missouri, Illinois, and Indiana [1] - The company's production was primarily focused on thermal coal, which was exported to various countries [1] - Starting this year, Peabody began mining acreage, indicating a potential shift in operational strategy [1] Group 2 - The company is of interest to individual investors seeking value in commodity production, particularly those with sustained free cash flows and low leverage [1] - There is a focus on companies that are in distress but have high recovery potential, especially in emerging markets with high margins [1] - A solid pro-shareholder attitude is emphasized, including sustained buyback programs and dividend distributions [1]

Group 1 - The Trump administration is expected to repeal the Biden administration's policy aimed at curbing emissions from power plants [1] - Peabody Energy Corporation (PTU) saw a short-term increase in stock price, with an overall rise during the day [1]

Peabody Energy Corporation (NYSE: BTU ) is a U.S.-listed coal mining company, with quite a lot of domestic coal production and sales. However, most of its adjusted EBITDA has over the last few years come from the two seaborneIf you like this article and are interested in more frequent analysis of my holding companies, real-time notifications on portfolio changes, together with macro and industry analysis. I would encourage you to have a look at my marketplace service, Off The Beaten Path.I primarily invest ...

Core Viewpoint - The coal industry, particularly Peabody Energy, presents hidden investment opportunities despite the prevailing shift towards renewable energy, with Peabody trading at a significant discount to its intrinsic value and showcasing strong financials and growth potential [1][16]. Company Overview - Peabody Energy, established in 1883 and headquartered in St. Louis, Missouri, is a leading global coal producer with 17 mines in the U.S. and Australia, focusing on both thermal and metallurgical coal [2]. - The North Antelope Rochelle Mine in Wyoming is Peabody's largest operation, producing over 60 million tons of thermal coal annually, while its Australian mines cater to the growing metallurgical coal demand in Asia [2]. Diversified Portfolio - Peabody's diversified portfolio includes thermal coal, which faces challenges in developed markets, and metallurgical coal, which remains essential for steel production, especially in rapidly growing economies like China and India [3]. - The company exports to over 26 countries, generating 55-63% of its revenue from international markets, which provides resilience against regional market fluctuations [3]. Financial Performance - Peabody's share price of $14.61 reflects a P/E ratio of 6.5, significantly below the industry average of 9.04, indicating a 40% undervaluation [4]. - The price-to-book (P/B) ratio stands at 0.42, and the price-to-sales (P/S) ratio is 0.4, with a market capitalization of $1.54 billion, only 40% of its annual revenue of $4.24 billion [4]. - The company has a low enterprise value-to-EBITDA ratio of 1.7, a debt-to-assets ratio of 7.8%, and a debt-to-equity ratio of 12.8%, showcasing strong financial health and minimal leverage [5]. Profitability Metrics - Peabody's profitability metrics include a 10.5% operating margin, 10.5% net margin, 11.1% return on equity, and 10.3% return on assets, indicating competitive performance against higher-priced rivals [6]. Industry Challenges and Opportunities - The coal industry faces challenges, with thermal coal prices around $95 per ton and metallurgical coal at $183 per ton, influenced by demand fluctuations and production costs [9]. - Long-term challenges include environmental regulations and the push for renewables, but coal remains vital for energy security in developing economies, with India and Southeast Asia driving demand [10][11]. - Peabody's low debt and high cash flow position it well to navigate price volatility and capitalize on the growing demand for metallurgical coal [12]. Growth Catalysts - Analysts project a price target of $27.60 for Peabody, suggesting an 88.9% upside from its current price, driven by potential rebounds in coal prices and steady demand for metallurgical coal [14]. - The reactivation of the Centurion Mine in Australia enhances Peabody's position in the metallurgical coal segment, aligning with Asia's industrial growth [12]. Conclusion - Peabody Energy is positioned as a compelling investment opportunity within the coal sector, characterized by undervaluation, strong fundamentals, and strategic market positioning, making it a prime candidate for investors seeking value [16].

Group 1 - Peabody is strategically shifting its portfolio towards higher-margin metallurgical coal production [1] - The company is in the process of acquiring coal mines from Anglo American in Australia [1] - Despite these strategic moves, the energy sector is facing market challenges, with companies being punished [1]

Production and Sales - Peabody produced and sold 118.1 million and 118.0 million tons of coal, respectively, from continuing operations in 2024[115] - Total tons sold increased by 1.5 million tons, or 5%, from 27.4 million tons in Q1 2024 to 28.9 million tons in Q1 2025[131] - Seaborne Metallurgical tons sold increased by 0.4 million tons, or 29%, from 1.4 million tons in Q1 2024 to 1.8 million tons in Q1 2025[131] - The Centurion Mine is expected to begin producing continuous miner coal early in Q3 2025, targeting combined production of 500 thousand tons for 2025[124] - The company has approximately 91 million tons of U.S. thermal coal priced and committed for 2025, including 77 million tons of PRB coal and 14 million tons of other U.S. thermal coal[214] - Estimated full year 2025 thermal coal sales volumes from the Seaborne Thermal segment are projected to be between 14.2 million to 15.2 million tons[214] - Estimated full year 2025 metallurgical coal sales from the Seaborne Metallurgical segment are projected to be between 8.0 million to 9.0 million tons[214] Financial Performance - Adjusted EBITDA for the three months ended March 31, 2025, reflected a year-over-year decrease of $16.5 million[130] - Total revenue for the three months ended March 31, 2025, was $983.6 million, a decrease of $46.6 million or 5% compared to the same period in 2024[133] - Seaborne Thermal segment revenue decreased by $18.8 million or 7% to $265.1 million, primarily due to unfavorable realized prices[133] - Seaborne Metallurgical segment revenue decreased by $26.9 million or 11% to $220.1 million, also due to unfavorable realized prices[134] - Powder River Basin segment revenue increased by $21.5 million or 8% to $275.6 million, driven by favorable volume and realized prices[134] - Adjusted EBITDA for the company decreased by $16.5 million or 10% to $144.0 million for the three months ended March 31, 2025[140] - Income from continuing operations, net of income taxes, was $38.3 million in Q1 2025, down 16% from $45.7 million in Q1 2024[150] - Net income attributable to common stockholders decreased by 13% to $34.4 million in Q1 2025 from $39.6 million in Q1 2024[150] - Diluted EPS attributable to common stockholders for Q1 2025 was $0.27, a decrease of 10% from $0.30 in Q1 2024[151] Costs and Expenses - Total segment costs for the three months ended March 31, 2025, were $799.1 million, a decrease of $31.8 million or 4% compared to the prior year[136] - Seaborne Thermal segment costs decreased by $9.2 million or 5% to $190.1 million, attributed to lower labor and operational costs[136] - Total Segment Costs for Q1 2025 were $767.3 million, down from $799.1 million in Q1 2024, reflecting a decrease of 4%[154] - Revenue per ton for Seaborne Thermal in Q1 2025 was $60.64, down from $71.24 in Q1 2024, a decrease of 15%[155] Cash Flow and Liquidity - As of March 31, 2025, the company's cash and cash equivalents totaled $696.5 million, with approximately $389 million held by U.S. subsidiaries and $296 million by Australian subsidiaries[176] - The company's available liquidity increased to $1,087.0 million as of March 31, 2025, up from $1,072.5 million as of December 31, 2024[177] - Net cash provided by operating activities for the three months ended March 31, 2025, was $119.9 million, comparable to $119.0 million in the same period of 2024[201] - The Company had $270.7 million of availability under the 2024 Credit Agreement as of March 31, 2025[185] - The Company entered into a bridge loan facility of up to $2.075 billion to finance the planned acquisition of multiple coal mines[194] - Cash paid for interest related to the Company's indebtedness was $9.9 million for the three months ended March 31, 2025[189] - The Company was compliant with all relevant covenants under its debt and finance agreements at March 31, 2025[199] Regulatory and Legal Matters - The company is subject to regulatory changes that could impact its operations, including updates to self-insurance requirements for black lung liabilities[157] - The company continues to monitor changes in environmental regulations that may affect the coal mining industry[159] - The company is involved in ongoing legal matters related to stormwater discharge violations, resulting in a total fine of $0.1 million and additional costs of $0.2 million[171] Other Financial Metrics - Interest expense, net of capitalized interest, decreased by 22% to $11.5 million in Q1 2025 from $14.7 million in Q1 2024[146] - The income tax provision decreased by 76% to $4.9 million in Q1 2025 from $20.1 million in Q1 2024, primarily due to lower expected pretax income[149] - The restricted cash and collateral balance increased by $5.5 million during the three months ended March 31, 2025, totaling $815.3 million[207] - As of March 31, 2025, the Company had total asset retirement obligations of $725.4 million[208] - The Company's reclamation bonding requirements were supported by approximately $710 million of restricted cash and other balances[209] - The accounts receivable securitization program provides up to $225.0 million of funding capacity, with $60.4 million of letters of credit outstanding under the program as of March 31, 2025[197] Market and Economic Factors - The company reported a 3% year-over-year increase in overall electricity demand in the U.S. for Q1 2025[123] - Coal's share of electricity generation in the U.S. increased to approximately 17% for the three months ended March 31, 2025[123] - A $10 per barrel change in the price of crude oil would increase or decrease the Company's annual diesel fuel costs by approximately $23 million[218] - A one percentage point decrease in interest rates would result in a decrease of approximately $14 million to interest income for the next twelve months[221]

Peabody Energy (BTU) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Company Participants Vic Svec - SVP, Global Investor and Corporate RelationsJames Grech - President & CEOMalcolm Roberts - Chief Marketing OfficerMark Spurbeck - EVP & CFO Conference Call Participants Nick Giles - Senior Research AnalystChris LaFemina - AnalystKatja Jancic - AnalystNathan Martin - Equity Research Analyst Operator Good day, and welcome to Peabody Q1 twenty twenty five Earnings Conference Call. All participants will be in lis ...