UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 1-16463 ____________________________________________ PEABODY ENERGY CORPORATION (Exact name of regist ...

Coal Industry Overview - The Zacks Coal industry comprises companies involved in the discovery and mining of coal, which is used worldwide for electricity generation, steel, and cement production [2] - The U S has an estimated 252 billion short tons of recoverable coal reserves, with 58% being underground mineable coal [2] - Five U S states contribute 70% of annual coal production and 60% of surface mining production [2] - Coal demand is declining due to increased renewable energy usage and the gradual shutdown of coal-powered generation units [2] Industry Trends - U S coal production is projected to decline by 13 1% in 2024 and 5 2% in 2025, reaching 485 million short tons [3] - Coal prices are expected to decrease by 1 6% in 2024 and 2 1% in 2025, reaching $2 43 per million British thermal units [3] - U S coal exports are projected to drop by 2 4% in 2025 after a 5 1% increase in 2024 [3] - Global steel demand is forecasted to drop by 0 9% in 2024 but increase by 1 2% in 2025, impacting coal exports [3] Emission Policies and Reliability - Coal remains a reliable energy source for 24x7 electricity production, but emission concerns are reducing its usage [4] - The U S aims for 100% carbon pollution-free electricity by 2030 and net-zero emissions by 2050, leading to reduced coal usage [4] - Coal's share in U S electricity generation is expected to drop from 17% in 2023 to 16% in 2024 and 2025 [4] - 12 GW of coal-fired electricity generating capacity is set to retire, with coal-fired units becoming backup options [4] Interest Rate Impact - The U S Federal Reserve lowered the benchmark rate by 50 basis points to 4 75%-5%, benefiting capital-intensive coal companies [5] - Lower interest rates support coal operators planning infrastructure upgrades and expansions [5] Industry Performance and Valuation - The Zacks Coal industry has outperformed the Zacks Oil and Gas sector and S&P 500, gaining 37 9% over the past year [10] - The industry is trading at a trailing 12-month EV/EBITDA of 5 55X, compared to the S&P 500's 17 77X and the sector's 3 41X [11] - The industry's earnings estimates for 2024 have declined by 6 2% since November 2024, reflecting reduced confidence in growth potential [8] Key Coal Stocks - **CONSOL Energy (CEIX)**: Produces and exports thermal and metallurgical coal, with 2025 earnings and revenue expected to rise by 31 8% and 112 1%, respectively [14][15] - **Peabody Energy (BTU)**: Engages in thermal and metallurgical coal mining, with 2024 and 2025 earnings per share estimates increasing by 1 3% and 3 7%, respectively [15][16] - **Warrior Met Coal (HCC)**: Produces metallurgical coal for the steel industry, with a 62 1% stock gain over the past year and plans to invest $435-$500 million in 2024 [18][19] - **SunCoke Energy (SXC)**: Focuses on coke making and logistics, with a 38 3% year-over-year increase in 2024 earnings per share and a 4 36% dividend yield [20][21]

Investing in stocks based on valuation metrics is considered a smart strategy. The price-to-earnings (P/E) ratio is often the go-to metric due to its simplicity and ease of use. However, the price-to-sales (P/S) ratio is more useful for evaluating stocks of companies that are unprofitable or in early growth stages, as it helps assess value when earnings are minimal or non-existent.What is the Price-to-Sales Ratio?While a loss-making company with a negative price-to-earnings ratio falls out of investor favor ...

Financial Data and Key Metrics - Net income attributable to common stockholders was $101.3 million or $0.74 per diluted share, with adjusted EBITDA of $224.8 million [22] - Operating cash flow was $360 million, resulting in available free cash flow of $263.2 million for the quarter [22] - The company completed $100 million in share repurchases during the quarter, bringing total repurchases for the year to $180 million [5][23] - Cash on hand as of September 30 was $773 million, and a dividend of $0.075 per share was declared [23] Business Segment Performance Seaborne Thermal - Adjusted EBITDA for seaborne thermal was $120 million, $16 million better than the prior quarter [24] - Production exceeded sales by 300,000 tonnes, increasing expected fourth-quarter sales volumes [24] - Realized export prices increased by $7 per tonne, with segment EBITDA margin rising to 38% [24] - Costs were below guidance at $47 per tonne [24] Seaborne Metallurgical - Adjusted EBITDA for seaborne metallurgical was approximately $28 million [25] - Shoal Creek shipped only 125,000 tonnes due to opportunistic withholding of spot sales and logistical challenges [25] - Metro made up for lower sales volumes at Shoal Creek, keeping the segment in line with previous guidance at 1.7 million tonnes [26] U.S. Thermal - Adjusted EBITDA for U.S. thermal was $80 million, $27 million better than the second quarter [27] - Shipments totaled 26.1 million tonnes, with an average EBITDA margin of $3.07 per tonne [27] - PRB shipments exceeded expectations at 22.1 million tonnes, with adjusted EBITDA of $51.7 million and margins more than doubling to $2.34 per tonne [28] Market Performance and Outlook Seaborne Thermal Market - Demand for thermal coal continues to grow, particularly in Asia, with India leading at 12% growth, followed by China at 8% and North Asia at 2% [14] - Newcastle high-energy thermal coal prices averaged $140 per metric tonne [14] - The International Energy Agency forecasts coal consumption in 2030 to be 6% higher than their 2023 forecast [15] Seaborne Metallurgical Market - Premium hard coking coal prices fell to $180 per tonne in early September, the lowest since June 2021, due to weak steel demand [16] - China's stimulus measures in late September improved sentiment, leading to some recovery in metallurgical coal prices [18] U.S. Market - Electricity generation in the U.S. grew by 3% year-to-date compared to 2023 levels [20] - South PRB coal production volume increased by 33% during the quarter, with Peabody's share of total production at 43% [21] Company Strategy and Industry Competition - The company is making significant progress on the Centurion project, with first development coal produced and first customer shipments scheduled for the fourth quarter [6] - The Wambo underground mine closure has been accelerated to mid-2025 due to challenging geological conditions, with expected production of 800,000 tonnes in 2025, down from 1.2 million tonnes in 2024 [8][47] - The company is focused on maximizing value from its portfolio and maintaining cost discipline across its operations [7][11] Management Commentary on Operating Environment and Future Outlook - Management highlighted the resilience of seaborne thermal demand and stable pricing, particularly in Asia [13] - The company expects improved shipments from Shoal Creek in the fourth quarter following the resolution of the Black Warrior River outage [10] - The PRB experienced a slow start due to low natural gas prices but saw improved volumes in the third quarter [11] Other Important Information - The company has revised its full-year guidance, increasing seaborne thermal volumes by 200,000 tonnes to 16.2 million tonnes and raising other U.S. thermal costs by $2 to $45 per tonne [29] - Capital expenditures for 2024 have been increased by $50 million, primarily due to accelerated development at Centurion and timing of spend at Wambo [29] Q&A Session Summary Question: Bonding obligations and potential capital unlock [34] - The company does not expect significant changes in bonding requirements or collateral levels, with $110 million in bond reductions achieved earlier in the year [35][36] Question: Metallurgical coal cost trends and outlook [37] - Costs have trended toward the higher end of guidance, with Shoal Creek production expected to increase in the fourth quarter, leading to a modest decrease in costs [38][39] Question: Capital returns and buyback activity [40] - The company remains committed to returning 65% to 100% of free cash flow to shareholders and will continue to evaluate buyback opportunities based on market conditions [43][44] Question: Wambo shutdown and volume impact [46] - Wambo underground mine production is expected to decrease to 800,000 tonnes in 2025, down from 1.2 million tonnes, with potential negative mix shift due to lower Newcastle-grade coal [47][48] Question: Shoal Creek shipment expectations [50] - Shoal Creek is expected to ship 600,000 to 700,000 tonnes in the fourth quarter, primarily targeting the spot market in China and Southeast Asia [50][51] Question: CapEx increase and Centurion development [55] - The $50 million CapEx increase includes $30 million for Centurion and $10 million for Wambo open-cut development, with no accelerated timeline for Centurion's longwall production [56][57] Question: Wambo open-cut production offset [59] - Increased production from Wambo open-cut is expected to partially offset the decline in underground production in 2025 [59] Question: Shoal Creek lock repairs and future impact [61] - Temporary repairs to the Black Warrior River lock are not expected to significantly impact future shipments, with permanent repairs coordinated to minimize disruption [62] Question: Centurion development coal sales [64] - Development coal from Centurion is expected to contribute around 480,000 tonnes in 2025, with shipments recognized as revenue [64] Question: Wambo EBITDA contribution [65] - Management did not provide specific EBITDA contribution figures for Wambo in the third quarter [66] Question: M&A and capital allocation [67] - The company did not comment on M&A activity but emphasized its strong balance sheet and commitment to shareholder returns [68] Question: PRB lease reopening and long-term optionality [70] - The company has sufficient lease holdings and reserves to meet demand for decades, with the ability to increase PRB output if economics support it [71][73] Closing Remarks - The company highlighted its safety achievements and thanked stakeholders for their support, reaffirming its focus on operational excellence and strategic priorities [76][77]

Peabody Energy Corporation (NYSE: BTU ) is a diversified coal mining company, with assets in the United States and Australia. Much of its EBITDA comes from the two seaborne segments, which is primarily comprised of theIf 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 in turn ...

Peabody Energy (BTU) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.60 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this coal mining company would post earnings of $0.53 per share when it actually produced earnings of $1.43, delivering a surprise of 169.81%.Over the last four quarters, the ...

Exhibit 99.1 Media Release Peabody Reports Results For Quarter Ended September 30, 2024 Completed $100 Million of Share Repurchases Centurion Development Making Exceptional Progress ST. LOUIS, October 31, 2024 – Peabody (NYSE: BTU) today reported net income attributable to common stockholders of $101.3 million, or $0.74 per diluted share, for the third quarter of 2024, compared to $119.9 million, or $0.82 per diluted share in the prior year quarter. Peabody had Adjusted EBITDA of $224.8 million in the third ...

Completed $100 Million of Share RepurchasesCenturion Development Making Exceptional Progress ST. LOUIS, Oct. 31, 2024 /PRNewswire/ -- Peabody (NYSE: BTU) today reported net income attributable to common stockholders of $101.3 million, or $0.74 per diluted share, for the third quarter of 2024, compared to $119.9 million, or $0.82 per diluted share in the prior year quarter. Peabody had Adjusted EBITDA1 of $224.8 million in the third quarter of 2024."In the third quarter, we delivered strong operational and s ...

Investing in stocks based on valuation metrics is considered a smart strategy. The price-to-earnings (P/E) ratio is often the go-to metric due to its simplicity and ease of use. However, the price-to-sales (P/S) ratio is more useful for evaluating stocks of companies that are unprofitable or in early growth stages, as it helps assess value when earnings are minimal or non-existent. What is the Price-to-Sales Ratio? While a loss-making company with a negative price-to-earnings ratio falls out of investor fav ...

Peabody Energy (BTU) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock ...