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 business relationship with any company whose stock is mentioned in this article. Gate City Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend ...

Core Viewpoint - Peabody Energy anticipates a potential increase in U.S. coal consumption by up to 57% due to rising electricity demand and supportive government policies, marking a significant turning point for the struggling coal industry [1][2]. Group 1: Electricity Demand and Coal Consumption - The U.S. is expected to see a 25% increase in electricity demand by 2030, driven by increased factory electricity needs, higher household electrification, and the surge in power demand from AI data centers [5]. - Peabody estimates that if underutilized coal-fired power plants can operate at historical capacity levels, U.S. coal demand could increase by over 250 million tons in the coming years [1][5]. - Current coal consumption in the U.S. is projected at 439 million tons for this year, a 6.7% increase from last year, but still significantly lower than the peak of 1.13 billion tons in 2007 [1]. Group 2: Coal Plant Utilization and Challenges - The overall utilization rate of U.S. coal-fired power plants was only 42% last year, compared to 72% in 2008, indicating significant underutilization [5]. - Analysts caution that achieving the projected increase in coal demand is theoretical and contingent on all coal plants reaching pre-financial crisis operational levels, which is unlikely [5].

（原标题：老树发新芽？美煤巨头预言：美国电力紧缺 煤炭要翻身了！） 但能源数据分析公司McCloskey by Opis的数据分析主管Andy Blumenfeld指出，要实现2.5亿吨的需求增 长，前提是所有燃煤电厂的产能都能提升至2008年全球金融危机前的历史水平，而这一前提本身就不具 备现实可能性。 近年来，由于公用事业公司逐渐弃用煤炭这一污染最严重的化石燃料，美国煤炭消费量持续下滑。但特 朗普推行的支持煤炭、反对可再生能源的政策已产生实际影响，其中就包括阻止了密歇根州一座使用 Peabody煤炭的电厂的关闭计划。美国能源信息署(EIA)的数据显示，今年美国煤炭总消费量预计为4.39 亿吨，虽较去年增长6.7%，但与2007年11.3亿吨的峰值相比仍相去甚远。 "Peabody认为，美国现有燃煤电厂蕴含着巨大的未开发潜力，"这家总部位于圣路易斯的公司的首席财 务官Mark Spurbeck在电子邮件中表示。 到2030年，美国电力需求预计将增长25%。这一增长主要由三方面因素驱动：工厂用电需求增加、家庭 电气化程度不断提高，尤其是用于人工智能(AI)的数据中心建设热潮带来的大量用电需求。与此同时， 供应 ...

Swelling US demand for electricity has the potential to boost coal consumption as much as 57%, according to mining giant Peabody Energy Corp., in what would be a major shift for an industry that’s been waning for years https://t.co/dfrXduh9ef ...

My interest in financial markets was born out of a love for companys, productive companies, and free market capitalism. The first book i read that shaped my investment perspective was Benjamin Grahams The Intelligent Investor. I enjoyed Prof. Grahams aproach to valuations grounded in strong fundamentals and assets. After finishing The Intelligent Investor i was able to read Security Analysis the 2nd 1940 edition by Benjamin Graham, which completely changed my analysis style and shifted me to the Heavy Indus ...

Core Viewpoint - Peabody Energy's stock price increased by 7% following the termination of a $3.8 billion acquisition deal with Anglo American due to a fire at the Ambre Energy North Mine in Australia [1] Group 1: Company Actions and Statements - Peabody Energy announced the termination of the acquisition deal due to significant adverse changes caused by the fire [1] - CEO Jim Grech stated that the two companies could not reach an amended agreement to address the impact of the fire on the acquisition [1] - The fire has resulted in a major and long-term loss for Peabody, affecting the largest mine involved in the acquisition [1] Group 2: Production and Operational Impact - The mine was originally expected to achieve a saleable production of 5.3 million tons by 2025, but Peabody has not established a timeline for resuming operations at the expected production levels [1] - Peabody indicated in May that the fire constituted a significant adverse change, justifying the termination of the deal [1] - There is currently no clear timeline for the resumption of operations, while Anglo American disputes that the mine and equipment were significantly affected [1] Group 3: Implications for Anglo American - The failure of the acquisition deal represents a significant setback for Anglo American, which had agreed to divest coal assets to streamline its operations and focus on copper and iron ore [1]

Core Viewpoint - Peabody Energy's stock price increased by 7% following the termination of a $3.8 billion acquisition deal for coking coal assets with Anglo American due to a fire at the Ambre Energy North Mine in Australia [1] Group 1: Company Actions and Statements - Peabody's CEO Jim Grech stated that the two companies could not reach an amended agreement to address the significant adverse changes caused by the fire [1] - The fire has resulted in substantial and long-term losses for Peabody, affecting the largest mine involved in the acquisition [1] - The mine was initially expected to achieve a saleable production of 5.3 million tons by 2025, but Peabody has not yet determined a timeline for resuming longwall mining at the expected production and cost levels [1] Group 2: Implications for Anglo American - The failure of the acquisition deal represents a significant blow to Anglo American, which had agreed to divest coal assets in November to streamline and focus on copper and iron ore businesses [1] - Anglo American contended that the mine and equipment were not damaged and disputed that the incident constituted a significant adverse change [1]

Core Viewpoint - Peabody Energy's stock rose by 7% after the company announced the termination of a $3.8 billion acquisition of coking coal assets from Anglo American due to a significant adverse change caused by a fire at the Ambre Energy North Mine in Australia [1] Group 1: Peabody Energy - Peabody's CEO Jim Grech stated that the two companies could not reach an amended agreement to address the significant adverse change resulting from the fire [1] - The fire at the mine was expected to impact the planned sales volume of 5.3 million tons by 2025, with no current timeline for resuming operations at the expected production and cost levels [1] - In May, Peabody indicated that the fire constituted a significant adverse change, justifying the termination of the acquisition [1] Group 2: Anglo American - The failure of the transaction will have a significant impact on Anglo American, which had agreed to sell coal assets in November to streamline its operations and focus on copper and iron ore businesses [2]

"The two companies did not reach a revised agreement to cure the MAC that compensated Peabody for the material and long-term impacts of the MAC on the most significant mine in the planned acquisition," said Peabody President and Chief Executive Officer Jim Grech. "Peabody has chosen to terminate the transaction and will continue to execute our plans to create substantial value from our diversified global asset portfolio." ST. LOUIS, Aug. 19, 2025 /PRNewswire/ -- Peabody (NYSE: BTU) announced today that it h ...

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial performance declined significantly in Q2 and H1 2025 compared to the prior year [Unaudited Condensed Consolidated Statements of Operations](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss in Q2 2025, a sharp reversal from the prior year's net income due to lower revenue Consolidated Statements of Operations Highlights (in millions) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$890.1** | **$1,042.0** | **-14.6%** | **$1,827.1** | **$2,025.6** | **-9.8%** | | Operating (Loss) Profit | ($38.4) | $233.9 | - | ($6.5) | $285.1 | - | | Net (Loss) Income | ($26.0) | $209.2 | - | $12.0 | $254.2 | -95.3% | | Net (Loss) Income Attributable to Common Stockholders | ($27.6) | $199.4 | - | $6.8 | $239.0 | -97.2% | | Diluted (Loss) Income per Share | ($0.23) | $1.42 | - | $0.06 | $1.70 | -96.5% | - Transaction costs related to business combinations were **$18.8 million in Q2 2025** and **$21.2 million in H1 2025**, with no such costs in the prior year periods[7](index=7&type=chunk) - The prior year's results were positively impacted by a **$109.5 million Shoal Creek insurance recovery**, which was not present in 2025[7](index=7&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and stockholders' equity decreased as of June 30, 2025, compared to year-end 2024 Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$1,627.3** | **$1,780.7** | | Cash and cash equivalents | $585.9 | $700.4 | | **Total Assets** | **$5,763.4** | **$5,953.7** | | **Total Current Liabilities** | **$737.0** | **$827.5** | | Long-term debt, less current portion | $329.2 | $332.3 | | **Total Liabilities** | **$2,089.3** | **$2,244.9** | | **Total Stockholders' Equity** | **$3,674.1** | **$3,708.8** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased, but overall cash decreased due to investing and financing activities Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $143.1 | $126.8 | | Net cash used in investing activities | ($180.7) | ($316.8) | | Net cash used in financing activities | ($44.9) | ($140.5) | | **Net change in cash, cash equivalents and restricted cash** | **($82.5)** | **($330.5)** | - Investing activities in H1 2024 included a **$143.8 million cash outflow** for the Wards Well acquisition, which did not recur in 2025[15](index=15&type=chunk) - Financing activities in H1 2025 included **no common stock repurchases**, compared to **$83.1 million** in repurchases during H1 2024[15](index=15&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide key disclosures on revenue, debt, segment performance, and the pending Anglo American acquisition Disaggregation of Revenue - H1 2025 vs H1 2024 (in millions) | Segment | H1 2025 Revenue | H1 2024 Revenue | | :--- | :--- | :--- | | Seaborne Thermal | $460.2 | $591.4 | | Seaborne Metallurgical | $472.3 | $541.3 | | Powder River Basin | $551.3 | $476.0 | | Other U.S. Thermal | $323.8 | $393.6 | | **Total Revenue** | **$1,827.1** | **$2,025.6** | - The company holds **$320.0 million** in 3.250% Convertible Senior Notes due 2028[50](index=50&type=chunk)[51](index=51&type=chunk) - On May 5, 2025, Peabody notified Anglo American of a **Material Adverse Change (MAC)** regarding the planned acquisition due to issues at the Moranbah North Mine, which remains inactive[77](index=77&type=chunk) - In June 2024, the company recognized a **$109.5 million insurance recovery** related to the Shoal Creek Mine incident[81](index=81&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the financial decline to lower seaborne coal pricing and a non-recurring insurance recovery - The decrease in financial results for H1 2025 was driven by lower revenue from lower seaborne coal pricing (**$198.5 million**) and the prior year's **$109.5 million** Shoal Creek insurance recovery[137](index=137&type=chunk) Adjusted EBITDA by Segment - H1 2025 vs H1 2024 (in millions) | Segment | H1 2025 Adj. EBITDA | H1 2024 Adj. EBITDA | | :--- | :--- | :--- | | Seaborne Thermal | $117.7 | $198.2 | | Seaborne Metallurgical | $4.0 | $191.9 | | Powder River Basin | $79.3 | $34.2 | | Other U.S. Thermal | $46.4 | $81.9 | | **Total Adjusted EBITDA** | **$237.3** | **$470.2** | - Total available liquidity as of June 30, 2025, was **$958.9 million**, down from **$1,072.5 million** at the end of 2024[201](index=201&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from coal pricing, foreign currency, fuel costs, and interest rates - The company has approximately **97 million tons** of U.S. thermal coal priced and committed for 2025[238](index=238&type=chunk) - A **$0.10 change in the AUD/USD exchange rate** would impact annual operating costs by approximately **$210 million to $220 million**, though this is partially mitigated by hedging instruments[240](index=240&type=chunk) - A **$10 per barrel change in crude oil prices** would impact annual diesel fuel costs by approximately **$23 million**[242](index=242&type=chunk) - A **one percentage point decrease in interest rates** would reduce annual interest income by approximately **$13 million** based on current cash balances[245](index=245&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the quarter's end - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective** at providing reasonable assurance that desired control objectives were achieved[246](index=246&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 of the financial statements for details on significant legal proceedings - For a description of significant legal proceedings, the report refers to **Note 14** of the financial statements[248](index=248&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The company highlights key risks including coal price dependency, operational hazards, and regulatory challenges - The company's profitability is **highly dependent on the prices** it receives for its coal[250](index=250&type=chunk) - Concerns about the impacts of coal combustion on **global climate** are leading to conditions that could affect demand for the company's products and its ability to produce[250](index=250&type=chunk) - The report lists numerous risks, including operational, regulatory, financial, and market-related factors that could **materially affect the company's business**[250](index=250&type=chunk)[252](index=252&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has $469.6 million remaining in its share repurchase program and continues to issue dividends - As of June 30, 2025, **$469.6 million remained available** for share repurchases under the 2023 Repurchase Program[253](index=253&type=chunk) - The company declared dividends of **$0.075 per share for Q2 2025** and a total of **$0.150 per share** for the six months ended June 30, 2025[254](index=254&type=chunk) - **No shares were repurchased** under the publicly announced program during the three months ended June 30, 2025[256](index=256&type=chunk) [Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters is provided in Exhibit 95 - Information concerning mine safety violations and other regulatory matters is included in **Exhibit 95** to the Quarterly Report[258](index=258&type=chunk) [Other Information](index=54&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the second quarter - **No directors or officers** adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[259](index=259&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and safety disclosures - The report includes required certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1, 32.2) and Mine Safety Disclosures (Exhibit 95)[263](index=263&type=chunk)