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 ...

Executive Summary & Highlights [Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) Peabody reported **$101.3 million** net income attributable to common stockholders for Q3 2024, a decrease from prior year, with **$224.8 million Adjusted EBITDA** and strong operating cash flow Overall Financial Performance Summary | Metric | Q3 2024 (Millions) | Q3 2023 (Millions) | | :-------------------------------- | :------------------- | :------------------- | | Net Income Attributable to Common Stockholders | $101.3 | $119.9 | | Diluted EPS | $0.74 | $0.82 | | Adjusted EBITDA | $224.8 | N/A | | Operating Cash Flow | $359.9 | N/A | [Key Operational Highlights](index=1&type=section&id=Key%20Operational%20Highlights) Peabody achieved significant operational milestones in Q3 2024, including project acceleration, strong production, and shareholder returns - Centurion development rates exceeded expectations, developing **2,700 meters** in Q3 compared to a plan of **1,200 meters**. First development coal was washed in September, with the first customer shipment scheduled for Q4[2](index=2&type=chunk) - Powder River Basin (PRB) volumes were **22.1 million tons**, surpassing expectations[2](index=2&type=chunk) - Seaborne Thermal production increased, adding approximately **300 thousand tons** to saleable coal inventory[2](index=2&type=chunk) - Completed **$100 million** of share repurchases during the quarter[2](index=2&type=chunk) - Declared a common stock dividend of **$0.075 per share**[2](index=2&type=chunk) Third Quarter Segment Performance [Seaborne Thermal](index=2&type=section&id=Seaborne%20Thermal) The Seaborne Thermal segment reported strong performance with **$120.0 million Adjusted EBITDA**, driven by better-than-anticipated production and costs, with Adjusted EBITDA margin per ton increasing by **15%** Seaborne Thermal Segment Performance | Metric | Sept. 2024 Quarter | Jun. 2024 Quarter | Sept. 2023 Quarter | | :-------------------------------- | :------------------- | :------------------ | :------------------- | | Tons sold (in millions) | 4.1 | 4.1 | 4.2 | | Revenue per Ton | $76.21 | $74.43 | $71.38 | | Costs per Ton | $47.01 | $49.14 | $43.68 | | Adjusted EBITDA Margin per Ton | $29.20 | $25.29 | $27.70 | | Adjusted EBITDA (in millions) | $120.0 | $104.4 | $115.5 | - Adjusted EBITDA margin per ton increased by **15 percent** compared to the second quarter, driven by better than anticipated production and costs[3](index=3&type=chunk) - Higher production resulted in adding approximately **300 thousand tons** to saleable coal inventory during the quarter[3](index=3&type=chunk) [Seaborne Metallurgical](index=2&type=section&id=Seaborne%20Metallurgical) The Seaborne Metallurgical segment reported **$27.8 million Adjusted EBITDA**, with shipments and costs in line with expectations, strategically withholding nearly **90 thousand tons** for a stronger fourth quarter Seaborne Metallurgical Segment Performance | Metric | Sept. 2024 Quarter | Jun. 2024 Quarter | Sept. 2023 Quarter | | :-------------------------------- | :------------------- | :------------------ | :------------------- | | Tons sold (in millions) | 1.7 | 2.0 | 1.5 | | Revenue per Ton | $144.60 | $149.29 | $162.02 | | Costs per Ton | $128.04 | $117.47 | $110.38 | | Adjusted EBITDA Margin per Ton | $16.56 | $31.82 | $51.64 | | Adjusted EBITDA (in millions) | $27.8 | $143.6 | $78.6 | - Opportunistically withheld nearly **90 thousand tons** of shipments at Shoal Creek to avoid higher alternate logistics costs and weak market conditions for spot sales[4](index=4&type=chunk) - The segment is positioned for a stronger fourth quarter[4](index=4&type=chunk) [Powder River Basin (PRB)](index=3&type=section&id=Powder%20River%20Basin%20(PRB)) The Powder River Basin segment exceeded volume expectations at **22.1 million tons**, with improved cost management leading to a more than doubling of Adjusted EBITDA margins per ton to **$2.34 per ton** Powder River Basin Segment Performance | Metric | Sept. 2024 Quarter | Jun. 2024 Quarter | Sept. 2023 Quarter | | :-------------------------------- | :------------------- | :------------------ | :------------------- | | Tons sold (in millions) | 22.1 | 15.8 | 22.7 | | Revenue per Ton | $13.84 | $14.02 | $13.79 | | Costs per Ton | $11.50 | $12.89 | $11.41 | | Adjusted EBITDA Margin per Ton | $2.34 | $1.13 | $2.38 | | Adjusted EBITDA (in millions) | $51.7 | $17.8 | $54.1 | - PRB volumes of **22.1 million tons** were better than expected customer nominations[6](index=6&type=chunk) - Adjusted EBITDA margins increased to **$2.34 per ton**, more than double the second quarter, due to continued focus on cost management[6](index=6&type=chunk) [Other U.S. Thermal](index=3&type=section&id=Other%20U.S.%20Thermal) The Other U.S. Thermal segment delivered **4.0 million tons** at costs of **$46.50 per ton**, aligning with expectations, and reported **$28.4 million Adjusted EBITDA** Other U.S. Thermal Segment Performance | Metric | Sept. 2024 Quarter | Jun. 2024 Quarter | Sept. 2023 Quarter | | :-------------------------------- | :------------------- | :------------------ | :------------------- | | Tons sold (in millions) | 4.0 | 3.7 | 4.2 | | Revenue per Ton | $53.52 | $55.21 | $53.89 | | Costs per Ton | $46.50 | $45.53 | $42.28 | | Adjusted EBITDA Margin per Ton | $7.02 | $9.68 | $11.61 | | Adjusted EBITDA (in millions) | $28.4 | $35.4 | $49.1 | - Delivered **4.0 million tons** at costs of **$46.50 per ton**, in-line with expectations[7](index=7&type=chunk) Strategic Developments [Centurion Project Update](index=3&type=section&id=Centurion%20Project%20Update) Peabody provided a comprehensive update on the Centurion premium hard coking coal project, estimating a net present value of **$1.6 billion** and a **25%** internal rate of return, with first customer shipment anticipated in Q4 2024 - Centurion project estimated net present value of **$1.6 billion** with a **25 percent** internal rate of return[8](index=8&type=chunk) - Expected to produce **4.7 million tons** annually at first quartile costs over a **25-plus year** mine life[8](index=8&type=chunk) - First development coal produced in June, first coal washed in September, and first customer shipment scheduled for the fourth quarter[8](index=8&type=chunk) - Peabody has invested **$250 million** of the projected **$489 million** needed to reach longwall production in March 2026[8](index=8&type=chunk) Shareholder Returns [Share Repurchase Program](index=4&type=section&id=Share%20Repurchase%20Program) Peabody repurchased **4.5 million shares** for **$100 million** in Q3 2024, bringing total repurchases for the year to **$180.4 million**, with **$469.6 million** remaining under the **$1 billion** program - Repurchased **4.5 million shares** for **$100 million** in Q3 2024[11](index=11&type=chunk) - Total repurchases for the year are **7.7 million shares** totaling **$180.4 million**[11](index=11&type=chunk) - Since 2023, **$530.4 million** has been repurchased, leaving **$469.6 million** under the **$1 billion** program[11](index=11&type=chunk) [Dividends](index=4&type=section&id=Dividends) The company declared a dividend of **$0.075 per share** on October 31, 2024 - Declared a **$0.075 per share** dividend on October 31, 2024[11](index=11&type=chunk) Financial Outlook & Guidance [Fourth Quarter 2024 Outlook](index=4&type=section&id=Q4%202024%20Outlook) Peabody provided specific volume, pricing, and cost expectations for its segments for Q4 2024, including an increase in full-year Seaborne Thermal volume guidance [Seaborne Thermal Outlook](index=4&type=section&id=Seaborne%20Thermal%20Outlook) - Q4 volume expected to be **4.1 million tons**, including **2.5 million export tons**[13](index=13&type=chunk) - **0.4 million export tons** priced at approximately **$120 per ton**; **0.8 million tons** of Newcastle product and **1.3 million tons** of high ash product are unpriced[13](index=13&type=chunk) - Costs anticipated to be **$48-$53 per ton**[13](index=13&type=chunk) - Full year volume guidance increased by **200 thousand tons** to **16-16.4 million tons**

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 ...

ST. LOUIS, Oct. 17, 2024 /PRNewswire/ -- On Thursday, October 31, 2024, Peabody (NYSE: BTU) will announce results for the quarter ended September 30, 2024. A conference call with management is scheduled for 10 a.m. CT on Thursday, October 31, 2024. 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 1 ...

Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Is Peabody Energy (BTU) one of those stocks right now? A quick glance at the company's year-todate performance in comparison to the rest of the Oils-Energy sector should help us answer this question. Peabody Energy is one of 242 companies in the Oils-Energy group. The Oils-Energy group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups an ...