Partnership projects will have the capacity of more than 5.5 Gigawatt of solar energy and battery storage across Indiana and Illinois Creates significant local jobs and regional economic benefits and potential energy production to power 850,000 homes RWE is acquiring majority interest in the R3 Renewables LLC ownership group AUSTIN, Texas and ST. LOUIS, Nov. 21, 2024 /PRNewswire/ -- RWE, a leading renewable energy company, and Peabody (NYSE: BTU) today announced a new partnership to strategically advance r ...

Group 1 - Radius Recycling, Inc. appointed Marc Hathhorn as Executive Vice President and Chief Operating Officer effective November 1, 2024, bringing over 30 years of leadership experience in the mining industry [1][2] - Hathhorn previously served as President of Global Operations at Peabody Energy Corporation, overseeing 5,000 employees and 17 coal mines, achieving multiple safety performance awards and exceeding environmental management goals [2] - The company aims to advance its operational and financial goals, focusing on investments in advanced metal recovery technologies, expanding recycling services, and improving productivity [3] Group 2 - Radius Recycling operates over 100 facilities producing more than 4 million tons of recycled ferrous volumes and over 700 million pounds of nonferrous volumes annually [3] - The company produces low carbon and net zero carbon emission GRN™ finished steel products exceeding 500 thousand tons and offers a service and supply chain solution to enhance customer recycling rates [3] - Radius Recycling is one of the largest manufacturers and exporters of recycled metal products in North America, with operations in 25 states, Puerto Rico, and Western Canada [4]

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Peabody Energy Corporation's unaudited condensed consolidated financial statements and comprehensive notes for the interim period [Unaudited Condensed Consolidated Statements of Operations](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, operating profit, and net income for the specified interim periods | Metric | Three Months Ended Sep 30, 2024 (Millions) | Three Months Ended Sep 30, 2023 (Millions) | Nine Months Ended Sep 30, 2024 (Millions) | Nine Months Ended Sep 30, 2023 (Millions) | |:-------------------------------------------|:-------------------------------------------|:-------------------------------------------|:------------------------------------------|:------------------------------------------| | Revenue | $1,088.0 | $1,078.9 | $3,113.6 | $3,711.7 | | Operating profit | $120.1 | $158.8 | $405.2 | $824.1 | | Income from continuing operations | $112.5 | $128.8 | $369.0 | $617.0 | | Net income attributable to common stockholders | $101.3 | $119.9 | $340.3 | $567.6 | | Basic income per share (continuing ops) | $0.82 | $0.88 | $2.72 | $4.06 | | Diluted income per share (continuing ops) | $0.74 | $0.80 | $2.47 | $3.68 | - Net income attributable to common stockholders decreased by **$18.6 million (15.5%)** for the three months ended September 30, 2024, and by **$227.3 million (40.0%)** for the nine months ended September 30, 2024, compared to the same periods in the prior year[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income components, leading to total comprehensive income for the interim periods | Metric | Three Months Ended Sep 30, 2024 (Millions) | Three Months Ended Sep 30, 2023 (Millions) | Nine Months Ended Sep 30, 2024 (Millions) | Nine Months Ended Sep 30, 2023 (Millions) | |:-------------------------------------------|:-------------------------------------------|:-------------------------------------------|:------------------------------------------|:------------------------------------------| | Net income | $111.5 | $131.3 | $365.7 | $616.9 | | Other comprehensive loss, net of income taxes | $(11.0) | $(14.5) | $(38.9) | $(41.9) | | Comprehensive income | $100.5 | $116.8 | $326.8 | $575.0 | | Comprehensive income attributable to common stockholders | $90.3 | $105.4 | $301.4 | $525.7 | - Comprehensive income attributable to common stockholders decreased by **$15.1 million (14.3%)** for the three months ended September 30, 2024, and by **$224.3 million (42.7%)** for the nine months ended September 30, 2024, compared to the same periods in the prior year[6](index=6&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity at specific reporting dates | Metric | September 30, 2024 (Millions) | December 31, 2023 (Millions) | |:-------------------------------------------|:------------------------------|:-----------------------------| | Total current assets | $1,808.0 | $2,019.7 | | Total assets | $5,866.9 | $5,962.1 | | Total current liabilities | $778.6 | $979.0 | | Total liabilities | $2,176.5 | $2,354.6 | | Total stockholders' equity | $3,690.4 | $3,607.5 | - Total assets decreased by **$95.2 million**, and total liabilities decreased by **$178.1 million** from December 31, 2023, to September 30, 2024. Total stockholders' equity increased by **$82.9 million** during the same period[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details the cash inflows and outflows from operating, investing, and financing activities for the interim periods | Metric | Nine Months Ended Sep 30, 2024 (Millions) | Nine Months Ended Sep 30, 2023 (Millions) | |:-------------------------------------------|:------------------------------------------|:------------------------------------------| | Net cash provided by operating activities | $486.7 | $753.1 | | Net cash used in investing activities | $(389.6) | $(174.6) | | Net cash used in financing activities | $(268.8) | $(364.5) | | Net change in cash, cash equivalents and restricted cash | $(171.7) | $214.0 | | Cash, cash equivalents and restricted cash at end of period | $1,478.5 | $1,631.6 | - Net cash provided by operating activities decreased by **$266.4 million** for the nine months ended September 30, 2024, compared to the prior year. Net cash used in investing activities increased by **$215.0 million**, primarily due to the Wards Well acquisition and higher capital expenditures[11](index=11&type=chunk)[13](index=13&type=chunk)[239](index=239&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This statement outlines changes in equity components, including net income, repurchases, and dividends, for the interim periods | Metric | Three Months Ended Sep 30, 2024 (Millions) | Three Months Ended Sep 30, 2023 (Millions) | Nine Months Ended Sep 30, 2024 (Millions) | Nine Months Ended Sep 30, 2023 (Millions) | |:-------------------------------------------|:-------------------------------------------|:-------------------------------------------|:------------------------------------------|:------------------------------------------| | Total stockholders' equity (End of Period) | $3,690.4 | $3,512.5 | $3,690.4 | $3,512.5 | | Common stock repurchases | $(100.0) | $(91.0) | $(183.1) | $(264.0) | | Net income attributable to common stockholders | $101.3 | $119.9 | $340.3 | $567.6 | | Dividends declared | $(9.5) | $(10.0) | $(28.7) | $(20.9) | - Total stockholders' equity increased from **$3,607.5 million** at December 31, 2023, to **$3,690.4 million** at September 30, 2024. Common stock repurchases totaled **$183.1 million** for the nine months ended September 30, 2024[9](index=9&type=chunk)[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [(1) Basis of Presentation](index=9&type=section&id=(1)%20Basis%20of%20Presentation) This note describes the accounting principles and consolidation policies used in preparing the interim financial statements - The unaudited condensed consolidated financial statements include Peabody Energy Corporation (PEC) and its consolidated subsidiaries and affiliates. Interests in jointly controlled entities are included as a proportionate share of assets, liabilities, revenue, and expenses[18](index=18&type=chunk) - Statements are prepared in accordance with U.S. GAAP for interim financial information and Form 10-Q instructions, and should be read with the 2023 Annual Report on Form 10-K. Management believes all normal, recurring adjustments necessary for fair presentation are reflected[19](index=19&type=chunk) [(2) Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented](index=9&type=section&id=(2)%20Newly%20Adopted%20Accounting%20Standards%20and%20Accounting%20Standards%20Not%20Yet%20Implemented) This note details recently adopted accounting standards and those pending implementation, assessing their impact on financial reporting - The Company did not adopt any new accounting standards with a material impact on its financial statements or disclosures[20](index=20&type=chunk) - ASU 2023-07 (Segments) requires additional interim disclosures for reportable segments, effective for fiscal years beginning after December 15, 2024. The Company expects only disclosure impacts, no changes to financial results[21](index=21&type=chunk) - ASU 2023-09 (Income Taxes) requires more detailed disclosures on income tax rate reconciliation and taxes paid, effective for fiscal years beginning after December 15, 2024. The Company anticipates only disclosure impacts[22](index=22&type=chunk) [(3) Revenue Recognition](index=9&type=section&id=(3)%20Revenue%20Recognition) This note describes the company's policies for recognizing revenue from various segments and details accounts receivable Revenue by Segment (Three Months Ended September 30, 2024) | Segment | Revenue (Millions) | |:-----------------------|:-------------------| | Seaborne Thermal | $313.2 | | Seaborne Metallurgical | $242.5 | | Powder River Basin | $305.3 | | Other U.S. Thermal | $216.7 | | Corporate and Other | $10.3 | | **Consolidated** | **$1,088.0** | Revenue by Segment (Nine Months Ended September 30, 2024) | Segment | Revenue (Millions) | |:-----------------------|:-------------------| | Seaborne Thermal | $904.6 | | Seaborne Metallurgical | $783.8 | | Powder River Basin | $781.3 | | Other U.S. Thermal | $610.3 | | Corporate and Other | $33.6 | | **Consolidated** | **$3,113.6** | Accounts Receivable, Net (Millions) | Type | September 30, 2024 (Millions) | December 31, 2023 (Millions) | |:---------------------------|:------------------------------|:-----------------------------| | Trade receivables, net | $245.9 | $322.3 | | Miscellaneous receivables, net | $58.3 | $67.4 | | **Accounts receivable, net** | **$304.2** | **$389.7** | [(4) Inventories](index=12&type=section&id=(4)%20Inventories) This note provides details on the composition and valuation of the company's inventory, including raw and saleable coal Inventories, Net (Millions) | Category | September 30, 2024 (Millions) | December 31, 2023 (Millions) | |:------------------------|:------------------------------|:-----------------------------| | Materials and supplies, net | $171.2 | $153.0 | | Raw coal | $116.4 | $105.6 | | Saleable coal | $156.7 | $93.2 | | **Inventories, net** | **$444.3** | **$351.8** | - Total inventories, net, increased by **$92.5 million** from December 31, 2023, to September 30, 2024, primarily driven by an increase in saleable coal and materials and supplies[30](index=30&type=chunk) [(5) Equity Method Investments](index=12&type=section&id=(5)%20Equity%20Method%20Investments) This note details the company's investments accounted for under the equity method, including Middlemount Coal and R3 Renewables - The Company's equity method investments include Middlemount Coal Pty Ltd (Middlemount) and R3 Renewables LLC (R3)[31](index=31&type=chunk) Equity Method Investments (Millions) | Investment | Book Value at Sep 30, 2024 (Millions) | Book Value at Dec 31, 2023 (Millions) | Loss (Income) from Equity Affiliates (9 Months Ended Sep 30, 2024) (Millions) | Loss (Income) from Equity Affiliates (9 Months Ended Sep 30, 2023) (Millions) | |:-----------|:--------------------------------------|:--------------------------------------|:-------------------------------------------------------------------|:-------------------------------------------------------------------| | Middlemount| $47.3 | $42.5 | $(4.1) | $(14.9) | | R3 | $6.6 | $7.1 | $11.2 | $5.2 | - The Company contributed **$10.8 million** to R3 during the nine months ended September 30, 2024, an increase from **$5.5 million** in the prior year period[33](index=33&type=chunk) [(6) Derivatives and Fair Value Measurements](index=12&type=section&id=(6)%20Derivatives%20and%20Fair%20Value%20Measurements) This note describes the company's use of derivative instruments to manage market risks and their fair value measurements - Peabody uses derivative instruments to manage foreign currency exchange rate risk for Australian dollar expenditures and price risk for coal sales/purchases. Trading of coal and freight-related contracts is also conducted on a limited basis[34](index=34&type=chunk)[35](index=35&type=chunk) - As of September 30, 2024, the Company held average rate options with a notional amount of **$531.0 million AUD** and purchased collars with a notional amount of **$468.0 million AUD** to hedge currency risk for anticipated Australian dollar operating expenditures through June 30, 2025[37](index=37&type=chunk) Fair Value of Financial Assets (Millions) | Asset | September 30, 2024 (Millions) | December 31, 2023 (Millions) | |:------------------------------------|:------------------------------|:-----------------------------| | Foreign currency option contracts | $6.4 | $6.2 | | Equity securities | $0.8 | $0.4 | | **Total net assets** | **$7.2** | **$6.6** | [(7) Property, Plant, Equipment and Mine Development](index=16&type=section&id=(7)%20Property,%20Plant,%20Equipment%20and%20Mine%20Development) This note provides details on the company's property, plant, equipment, and mine development assets, including their net carrying value Property, Plant, Equipment and Mine Development, Net (Millions) | Category | September 30, 2024 (Millions) | December 31, 2023 (Millions) | |:---------------------------------------------|:------------------------------|:-----------------------------| | Land and coal interests | $2,624.4 | $2,475.2 | | Buildings and improvements | $658.1 | $647.6 | | Machinery and equipment | $2,021.4 | $1,787.6 | | Less: Accumulated depreciation, depletion and amortization | $(2,290.4) | $(2,066.3) | | **Property, plant, equipment and mine development, net** | **$3,013.5** | **$2,844.1** | - The net value of property, plant, equipment, and mine development increased by **$169.4 million** from December 31, 2023, to September 30, 2024[54](index=54&type=chunk) - Assets with an aggregate carrying value of approximately **$207 million** in the Other U.S. Thermal segment are sensitive to customer concentration risk[55](index=55&type=chunk) [(8) Income Taxes](index=16&type=section&id=(8)%20Income%20Taxes) This note details the company's income tax provision, effective tax rates, and unrecognized tax benefits for the interim periods Income Tax Provision (Millions) | Period | 2024 (Millions) | 2023 (Millions) | |:-------------------------------------------|:----------------|:----------------| | Three Months Ended September 30 | $25.7 | $46.5 | | Nine Months Ended September 30 | $85.2 | $238.7 | - The income tax provision decreased for both the three and nine months ended September 30, 2024, primarily due to lower pretax income. The effective tax rate is based on the estimated full-year rate, with income tax expense primarily related to Australian income due to existing valuation allowances[56](index=56&type=chunk)[170](index=170&type=chunk) - Net unrecognized tax benefits decreased by **$1.3 million** and gross interest and penalties decreased by **$6.1 million** during the nine months ended September 30, 2024, due to the expiration of statutes[57](index=57&type=chunk) [(9) Long-term Debt](index=16&type=section&id=(9)%20Long-term%20Debt) This note provides information on the company's long-term debt, including convertible senior notes and revolving credit facilities Total Indebtedness (Millions) | Debt Instrument | September 30, 2024 (Millions) | December 31, 2023 (Millions) | |:-------------------------------------------|:------------------------------|:-----------------------------| | 3.250% Convertible Senior Notes due March 2028 | $320.0 | $320.0 | | Finance lease obligations | $25.1 | $22.3 | | Less: Debt issuance costs | $(6.6) | $(8.1) | | **Net carrying amount** | **$338.5** | **$334.2** | | Less: Current portion of long-term debt | $14.8 | $13.5 | | **Long-term debt** | **$323.7** | **$320.7** | - The 2028 Convertible Notes, with an aggregate principal amount of **$320.0 million**, mature on March 1, 2028, and bear interest at **3.250%** annually. The conversion rate was adjusted to **51.0440 shares per $1,000 principal amount** effective February 21, 2024[60](index=60&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - A new **$320.0 million** revolving credit facility was established on January 18, 2024, terminating on January 18, 2028. As of September 30, 2024, **$98.6 million** was utilized for letters of credit, with **$221.4 million** availability[65](index=65&type=chunk)[67](index=67&type=chunk) - The Company was compliant with all debt covenants as of September 30, 2024[71](index=71&type=chunk) [(10) Pension and Postretirement Benefit Costs](index=18&type=section&id=(10)%20Pension%20and%20Postretirement%20Benefit%20Costs) This note details the components of net periodic pension and postretirement benefit costs for the interim periods Net Periodic Pension Cost (Millions) | Component | Three Months Ended Sep 30, 2024 (Millions) | Three Months Ended Sep 30, 2023 (Millions) | Nine Months Ended Sep 30, 2024 (Millions) | Nine Months Ended Sep 30, 2023 (Millions) | |:------------------------------------------|:-------------------------------------------|:-------------------------------------------|:------------------------------------------|:------------------------------------------| | Service cost for benefits earned | $0.1 | $0.1 | $0.1 | $0.1 | | Interest cost on projected benefit obligation | $1.7 | $3.6 | $4.9 | $18.4 | | Expected return on plan assets | $(1.3) | $(3.1) | $(3.7) | $(16.3) | | **Net periodic pension cost** | **$0.5** | **$0.6** | **$1.3** | **$2.2** | Net Periodic Postretirement Benefit Credit (Millions) | Component | Three Months Ended Sep 30, 2024 (Millions) | Three Months Ended Sep 30, 2023 (Millions) | Nine Months Ended Sep 30, 2024 (Millions) | Nine Months Ended Sep 30, 2023 (Millions) | |:----------------------------------------------|:-------------------------------------------|:-------------------------------------------|:------------------------------------------|:------------------------------------------| | Service cost for benefits earned | $0.1 | $0.1 | $0.3 | $0.4 | | Interest cost on accumulated postretirement benefit obligation | $2.3 | $2.6 | $6.9 | $7.6 | | Expected return on plan assets | $(0.1) | $(0.1) | $(0.3) | $(0.4) | | Amortization of prior service credit | $(13.3) | $(13.5) | $(39.8) | $(40.3) | | **Net periodic postretirement benefit credit** | **$(11.0)** | **$(10.9)** | **$(32.9)** | **$(32.7)** | - The Company is not required to make cash contributions to its remaining qualified pension plan in 2024 and does not expect to make discretionary contributions to the VEBA trust[73](index=73&type=chunk)[74](index=74&type=chunk) [(11) Earnings per Share (EPS)](index=19&type=section&id=(11)%20Earnings%20per%20Share%20(EPS)) This note explains the calculation of basic and diluted earnings per share, including potential dilutive effects - Basic EPS is calculated based on weighted average common shares outstanding, while diluted EPS includes the effect of dilutive potential common shares, such as 2028 Convertible Notes and share-based compensation awards[75](index=75&type=chunk)[77](index=77&type=chunk) Diluted EPS Attributable to Common Stockholders | Metric | Three Months Ended Sep 30, 2024 (Dollars) | Three Months Ended Sep 30, 2023 (Dollars) | Nine Months Ended Sep 30, 2024 (Dollars) | Nine Months Ended Sep 30, 2023 (Dollars) | |:-------------------------------------------|:------------------------------------------|:------------------------------------------|:-----------------------------------------|:-----------------------------------------| | Income from continuing operations | $0.74 | $0.80 | $2.47 | $3.68 | | (Loss) income from discontinued operations | — | $0.02 | $(0.03) | — | | **Net income attributable to common stockholders** | **$0.74** | **$0.82** | **$2.44** | **$3.68** | - Diluted EPS decreased by **$0.08 (10%)** for the three months ended September 30, 2024, and by **$1.24 (34%)** for the nine months ended September 30, 2024, compared to the prior year periods[81](index=81&type=chunk) [(12) Financial Instruments and Other Guarantees](index=20&type=section&id=(12)%20Financial%20Instruments%20and%20Other%20Guarantees) This note describes the company's use of financial instruments, surety bonds, and letters of credit to manage risks and support obligations - The Company uses various financial instruments and guarantees, including surety bonds and letters of credit, to support reclamation bonding, lease obligations, and insurance policies. No material losses are expected beyond existing liabilities[82](index=82&type=chunk) Financial Instruments with Off-Balance-Sheet Risk (September 30, 2024, Millions) | Category | Reclamation Support (Millions) | Other Support (Millions) | Total (Millions) | |:---------------------|:-------------------------------|:-------------------------|:-----------------| | Surety bonds | $932.2 | $107.7 | $1,039.9 | | Letters of credit | $55.2 | $103.8 | $159.0 | | **Obligations supported, net** | **$932.2** | **$199.1** | **$1,131.3** | - The Company maintains compliance with a minimum liquidity test (greater of **$400 million** or surety bond penal sum less collateral posted, which was **$507.3 million** at Sep 30, 2024) and a maximum net leverage ratio of **1.5 to 1.0** under its surety agreement[85](index=85&type=chunk) - Restricted cash and collateral totaled **$839.0 million** at September 30, 2024, a decrease of **$118.6 million** during the nine months ended September 30, 2024, due to collateral releases and foreign currency rate changes[97](index=97&type=chunk)[243](index=243&type=chunk) [(13) Commitments and Contingencies](index=23&type=section&id=(13)%20Commitments%20and%20Contingencies) This note outlines the company's purchase commitments, legal proceedings, and other contingent liabilities - Purchase commitments for capital expenditures were **$81.3 million** as of September 30, 2024, all due within the next 12 months[98](index=98&type=chunk) - The Company pled guilty to three charges related to stormwater discharges and plant maintenance at the Metropolitan Mine, with penalties to be determined in November 2024. An immaterial provision was recorded[101](index=101&type=chunk) - Peabody was dismissed without prejudice from the Oregon Climate Change Lawsuit in July 2024[102](index=102&type=chunk) [(14) Segment Information](index=24&type=section&id=(14)%20Segment%20Information) This note provides financial data by reportable segment, including revenue and Adjusted EBITDA, for performance assessment - Peabody reports results through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other segments. Adjusted EBITDA is the primary metric for measuring segment performance and allocating resources[104](index=104&type=chunk)[105](index=105&type=chunk) Revenue by Reportable Segment (Millions) | Segment | 3 Months Ended Sep 30, 2024 (Millions) | 3 Months Ended Sep 30, 2023 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2023 (Millions) | |:-----------------------|:---------------------------------------|:---------------------------------------|:---------------------------------------|:---------------------------------------| | Seaborne Thermal | $313.2 | $297.4 | $904.6 | $1,043.4 | | Seaborne Metallurgical | $242.5 | $247.0 | $783.8 | $907.9 | | Powder River Basin | $305.3 | $313.0 | $781.3 | $878.0 | | Other U.S. Thermal | $216.7 | $228.2 | $610.3 | $677.5 | | Corporate and Other | $10.3 | $(6.7) | $33.6 | $204.9 | | **Total** | **$1,088.0** | **$1,078.9** | **$3,113.6** | **$3,711.7** | Adjusted EBITDA by Reportable Segment (Millions) | Segment | 3 Months Ended Sep 30, 2024 (Millions) | 3 Months Ended Sep 30, 2023 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2023 (Millions) | |:-----------------------|:---------------------------------------|:---------------------------------------|:---------------------------------------|:---------------------------------------| | Seaborne Thermal | $120.0 | $115.5 | $318.2 | $477.0 | | Seaborne Metallurgical | $27.8 | $78.6 | $219.7 | $271.9 | | Powder River Basin | $51.7 | $54.1 | $85.9 | $116.1 | | Other U.S. Thermal | $28.4 | $49.1 | $110.3 | $165.2 | | Corporate and Other | $(3.1) | $(27.3) | $(39.1) | $(11.4) | | **Total** | **$224.8** | **$270.0** | **$695.0** | **$1,018.8** | [(15) Other Events](index=26&type=section&id=(15)%20Other%20Events) This note discloses significant events impacting the company, such as share repurchases, acquisitions, and insurance recoveries - The Company repurchased **7.7 million shares** for **$180.5 million** during the nine months ended September 30, 2024, with **$469.6 million** remaining under the share repurchase program[110](index=110&type=chunk) - The Wards Well acquisition was completed on April 16, 2024, for **$153.4 million**, recorded in 'Property, plant, equipment and mine development, net'. A contingent royalty of up to **$200 million** is payable upon investment recovery and exceeding sales price thresholds[111](index=111&type=chunk)[112](index=112&type=chunk) - Peabody recognized a **$109.5 million** insurance recovery in June 2024 related to the March 2023 Shoal Creek Mine fire, which included **$28.7 million** for property damage and **$80.8 million** for incremental costs and business interruption[114](index=114&type=chunk)[115](index=115&type=chunk)[166](index=166&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of Peabody's business, market conditions for coal, and a detailed analysis of its financial performance for the three and nine months ended September 30, 2024, compared to the prior year. It also discusses non-GAAP financial measures, regulatory updates, liquidity, capital resources, and critical accounting policies [Overview](index=29&type=section&id=Overview) This section provides a general business description, market conditions for coal, and strategic developments - Peabody is a leading producer of metallurgical and thermal coal, operating **17 active coal mining operations** in the U.S. and Australia, including a **50% equity interest** in Middlemount Coal Pty Ltd[128](index=128&type=chunk) - The Company's segments include Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other[129](index=129&type=chunk) - Global thermal coal prices remained stable, driven by healthy supply meeting elevated demand in Asian markets. Metallurgical coal prices retreated from a high base due to tepid global steel demand, but PCI relativities to coking coal have improved[134](index=134&type=chunk)[135](index=135&type=chunk) - U.S. electricity generation from thermal coal decreased year-over-year due to low natural gas prices and stronger renewable generation, with coal's share declining to approximately **15%** for the nine months ended September 30, 2024[136](index=136&type=chunk) - Redevelopment of the Centurion Mine is advancing, with first coal shipment expected in Q4 2024 and longwall production targeted for Q1 2026. Approximately **$250 million** of the **$489 million** capital expenditures have been completed[137](index=137&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue, costs, and segment-specific results for the interim periods - Income from continuing operations, net of income taxes, decreased by **$16.3 million** for the three months ended September 30, 2024, primarily due to higher operating costs, partially offset by lower taxes and higher revenue[142](index=142&type=chunk) - For the nine months ended September 30, 2024, income from continuing operations decreased by **$248.0 million**, driven by lower revenue (no unrealized mark-to-market gains, lower seaborne coal pricing, U.S. thermal volume decreases), partially offset by lower tax provision, Shoal Creek insurance recovery, and lower operating costs[143](index=143&type=chunk) Total Tons Sold from Operating Segments (Millions) | Segment | 3 Months Ended Sep 30, 2024 (Millions of Tons) | 3 Months Ended Sep 30, 2023 (Millions of Tons) | Change (Tons) (Millions of Tons) | Change (%) | 9 Months Ended Sep 30, 2024 (Millions of Tons) | 9 Months Ended Sep 30, 2023 (Millions of Tons) | Change (Tons) (Millions of Tons) | Change (%) | |:-----------------------|:-----------------------------------------------|:-----------------------------------------------|:---------------------------------|:-----------|:-----------------------------------------------|:-----------------------------------------------|:---------------------------------|:-----------| | Seaborne Thermal | 4.1 | 4.2 | (0.1) | (2)% | 12.2 | 11.8 | 0.4 | 3% | | Seaborne Metallurgical | 1.7 | 1.5 | 0.2 | 13% | 5.1 | 4.8 | 0.3 | 6% | | Powder River Basin | 22.1 | 22.7 | (0.6) | (3)% | 56.6 | 63.6 | (7.0) | (11)% | | Other U.S. Thermal | 4.0 | 4.2 | (0.2) | (5)% | 10.9 | 12.5 | (1.6) | (13)% | | **Total** | **31.9** | **32.6** | **(0.7)** | **(2)%** | **84.8** | **92.7** | **(7.9)** | **(9)%** | Adjusted EBITDA Margin per Ton | Segment | 3 Months Ended Sep 30, 2024 (Dollars per Ton) | 3 Months Ended Sep 30, 2023 (Dollars per Ton) | Change ($) (Dollars per Ton) | Change (%) | 9 Months Ended Sep 30, 2024 (Dollars per Ton) | 9 Months Ended Sep 30, 2023 (Dollars per Ton) | Change ($) (Dollars per Ton) | Change (%) | |:-----------------------|:----------------------------------------------|:----------------------------------------------|:-----------------------------|:-----------|:----------------------------------------------|:----------------------------------------------|:-----------------------------|:-----------| | Seaborne Thermal | $29.20 | $27.70 | $1.50 | 5% | $26.03 | $40.71 | $(14.68) | (36)% | | Seaborne Metallurgical | $16.56 | $51.64 | $(35.08) | (68)% | $27.33 | $56.76 | $(29.43) | (52)% | | Powder River Basin | $2.34 | $2.38 | $(0.04) | (2)% | $1.52 | $1.82 | $(0.30) | (16)% | | Other U.S. Thermal | $7.02 | $11.61 | $(4.59) | (40)% | $10.11 | $13.20 | $(3.09) | (23)% | [Reconciliation of Non-GAAP Financial Measures](index=38&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures, such as Adjusted EBITDA, to their most directly comparable GAAP measures - Adjusted EBITDA is a non-GAAP measure used by management to assess segment operating performance and allocate resources, excluding items like net interest expense, income taxes, asset retirement obligation expenses, and DDA[175](index=175&type=chunk) Reconciliation of Income from Continuing Operations to Adjusted EBITDA (Millions) | Metric | 3 Months Ended Sep 30, 2024 (Millions) | 3 Months Ended Sep 30, 2023 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2023 (Millions) | |:-------------------------------------------|:---------------------------------------|:---------------------------------------|:---------------------------------------|:---------------------------------------| | Income from continuing operations, net of income taxes | $112.5 | $128.8 | $369.0 | $617.0 | | Depreciation, depletion and amortization | $84.7 | $82.3 | $247.4 | $239.2 | | Asset retirement obligation expenses | $12.9 | $15.4 | $38.7 | $46.3 | | Interest expense, net of capitalized interest | $9.7 | $13.8 | $35.1 | $45.5 | | Income tax provision | $25.7 | $46.5 | $85.2 | $238.7 | | **Total Adjusted EBITDA** | **$224.8** | **$270.0** | **$695.0** | **$1,018.8** | Total Reporting Segment Costs (Millions) | Segment | 3 Months Ended Sep 30, 2024 (Millions) | 3 Months Ended Sep 30, 2023 (Millions) | 9 Months Ended Sep 30, 2024 (Millions) | 9 Months Ended Sep 30, 2023 (Millions) | |:-----------------------|:---------------------------------------|:---------------------------------------|:---------------------------------------|:---------------------------------------| | Seaborne Thermal | $193.2 | $181.9 | $586.4 | $566.4 | | Seaborne Metallurgical | $214.7 | $168.4 | $644.9 | $636.0 | | Powder River Basin | $253.6 | $258.9 | $695.4 | $761.9 | | Other U.S. Thermal | $188.3 | $179.1 | $500.0 | $512.3 | | Corporate and Other | $(9.6) | $5.6 | $9.5 | $8.3 | | **Total** | **$840.2** | **$793.9** | **$2,436.2** | **$2,484.9** | [Regulatory Update](index=40&type=section&id=Regulatory%20Update) This section provides updates on environmental regulations and other governmental policies impacting the company's operations - The EPA revised the primary standard for fine particulate matter (PM 2.5) to **9.0 ug/m³**, potentially increasing costs for fossil fuel electric generating units (EGUs) and non-EGUs[186](index=186&type=chunk) - A final EPA rule published May 9, 2024, requires existing fossil fuel-fired steam EGUs operating long-term to comply with a **90% carbon capture and sequestration (CCS) emission rate** by January 1, 2032. EGUs ceasing operations by January 1, 2039, must meet a **40% natural gas co-firing emission rate** by January 1, 2030[189](index=189&type=chunk)[191](index=191&type=chunk) - The U.S. Supreme Court denied a stay of the EPA's final rule on greenhouse gas emissions, but Justices Kavanaugh and Gorsuch expressed strong likelihood of petitioners' success on merits[192](index=192&type=chunk) - New South Wales (NSW) enacted amendments to the Coal Mine Subsidence Compensation Act 2024, strengthening compensation for subsidence damage. The Work Health and Safety Act 2011 (NSW) was amended to include an industrial manslaughter offense with maximum penalties of **$20 million AUD** for corporations or **25 years imprisonment** for individuals[202](index=202&type=chunk)[203](index=203&type=chunk) - The Australian Parliament passed reforms to the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015, introducing site-specific baseline emissions for heavy emitting facilities with a target of **4.9% annual improvement** to 2030[206](index=206&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash sources and uses, liquidity position, capital expenditures, and cash flow activities - The Company's primary cash sources are coal sales, non-strategic asset sales, and borrowings. Primary uses include coal production costs, capital expenditures, debt service, and post-mining reclamation[213](index=213&type=chunk) Total Liquidity (Millions) | Metric | September 30, 2024 (Millions) | December 31, 2023 (Millions) | |:-------------------------------------------|:------------------------------|:-----------------------------| | Cash and cash equivalents | $772.9 | $969.3 | | Revolving credit facility availability | $221.4 | — | | Accounts receivable securitization program availability | $95.6 | $90.4 | | **Total liquidity** | **$1,089.9** | **$1,059.7** | - Capital expenditures for 2024 are targeted at **$425 million**, an increase from **$375 million**, primarily due to accelerated development at the Centurion Mine and timing of spend at the Wambo Open-Cut Mine[227](index=227&type=chunk) Cash Flows (Nine Months Ended September 30, Millions) | Metric | 2024 (Millions) | 2023 (Millions) | |:-------------------------------------------|:----------------|:----------------| | Net cash provided by operating activities | $486.7 | $753.1 | | Net cash used in investing activities | $(389.6) | $(174.6) | | Net cash used in financing activities | $(268.8) | $(364.5) | | **Net change in cash, cash equivalents and restricted cash** | **$(171.7)** | **$214.0** | - Available Free Cash Flow (AFCF) for the nine months ended September 30, 2024, was **$37.6 million**[183](index=183&type=chunk) [Critical Accounting Policies and Estimates](index=51&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section describes the significant accounting policies and estimates that require management's judgment and impact financial reporting - The Company's financial statements are prepared in accordance with U.S. GAAP, requiring estimates and judgments that affect reported amounts. Critical accounting policies remain unchanged from the 2023 Annual Report on Form 10-K[246](index=246&type=chunk)[248](index=248&type=chunk) - Approximately **$207 million** in assets within the Other U.S. Thermal segment have recoverability sensitive to customer concentration risk[247](index=247&type=chunk) [Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented](index=51&type=section&id=Newly%20Adopted%20Accounting%20Standards%20and%20Accounting%20Standards%20Not%20Yet%20Implemented) This section refers to Note 2 for details on new and pending accounting standards and their expected disclosure impacts - Refer to Note 2 for details on newly adopted accounting standards and those not yet implemented, which are expected to primarily impact disclosures without affecting consolidated financial results[249](index=249&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines Peabody's exposure to various market risks, including coal pricing, foreign currency, diesel fuel prices, and interest rates, and describes the strategies employed to manage these risks - As of September 30, 2024, Peabody had approximately **100 million tons** of U.S. thermal coal priced and committed for 2024 (**85 million PRB**, **15 million other U.S. thermal**)[250](index=250&type=chunk) - The Company estimates full-year 2024 thermal coal sales volumes from its Seaborne Thermal segment of **16.0-16.4 million tons** and metallurgical coal sales from its Seaborne Metallurgical segment of **7.2-7.6 million tons**[250](index=250&type=chunk) - Foreign currency hedging instruments (options and collars) limit exposure to a **$0.10 increase** in AUD/USD exchange rate to approximately **$127 million**, while benefiting by approximately **$198 million** for a **$0.10 decrease**, for the next twelve months[252](index=252&type=chunk) - A **$10 per barrel change** in crude oil price would impact annual diesel fuel costs by approximately **$21 million**, based on expected consumption of **85-95 million gallons**[254](index=254&type=chunk) - A **one percentage point decrease** in interest rates would decrease interest income by approximately **$15 million** for the next twelve months, based on interest-earning cash and restricted cash balances at September 30, 2024[257](index=257&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) The Company's CEO and CFO evaluated disclosure controls and procedures as of September 30, 2024, concluding they were effective in providing reasonable assurance that control objectives were achieved. No material changes to internal control over financial reporting occurred during the quarter - Disclosure controls and procedures were evaluated as effective as of September 30, 2024, providing reasonable assurance that material information is accumulated and communicated to senior management[258](index=258&type=chunk) - No material changes to the Company's internal control over financial reporting occurred during the most recent fiscal quarter[258](index=258&type=chunk) [PART II — OTHER INFORMATION](index=52&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section provides additional information on legal proceedings, risk factors, equity sales, mine safety, and other disclosures [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13, 'Commitments and Contingencies,' in the financial statements for a description of the Company's significant legal and regulatory proceedings - Information on significant legal proceedings is incorporated by reference from Note 13, 'Commitments and Contingencies,' in the unaudited condensed consolidated financial statements[259](index=259&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) This section highlights various risk factors that could materially affect Peabody's results of operations, financial condition, and liquidity, including coal pricing volatility, operational risks, regulatory changes, environmental concerns, and financial market conditions - Key risks include dependence on coal prices, potential termination or adjustment of long-term coal supply agreements, and inherent mining risks that could increase operating costs[261](index=261&type=chunk)[262](index=262&type=chunk) - Regulatory risks, including extensive environmental regulations and concerns about global climate change, could increase costs, limit production, and reduce demand for coal[262](index=262&type=chunk) - Financial risks include the ability to incur more debt, restrictions from debt covenants, and potential impacts from unfavorable lending and investment policies due to environmental and social concerns[263](index=263&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details Peabody's share repurchase program and dividend declarations, outlining the amounts and terms of common stock repurchases and dividends paid during the period - The Board of Directors authorized a new **$1.0 billion** share repurchase program on April 17, 2023. As of September 30, 2024, **$530.8 million** had been used to repurchase **23.8 million shares**, with **$469.6 million** remaining available[264](index=264&type=chunk)[265](index=265&type=chunk) - Dividends declared were **$0.075 per share** for the three months and **$0.225 per share** for the nine months ended September 30, 2024. An additional dividend of **$0.075 per share** was declared on October 31, 2024[266](index=266&type=chunk) Share Purchases (Three Months Ended September 30, 2024) | Period | Total Number of Shares Purchased (Shares) | Average Price Paid per Share (Dollars) | |:---------------------------------|:------------------------------------------|:---------------------------------------| | July 1 through July 31, 2024 | 291 | $23.26 | | August 1 through August 31, 2024 | 1,057,013 | $22.50 | | September 1 through September 30, 2024 | 3,374,598 | $22.56 | | **Total** | **4,431,902** | **$22.55** | [Item 4. Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Peabody's 'Safety and Sustainability Management System' guides its safety, health, and environmental stewardship, aligning with the National Mining Association's CORESafety® framework. The Company continuously monitors safety performance and regulatory compliance, with detailed information on mine safety violations provided in Exhibit 95 - Peabody's 'Safety and Sustainability Management System' is designed to ensure clear expectations for safety, health, and environmental stewardship, aligning with the CORESafety® framework[269](index=269&type=chunk) - The Company monitors its safety performance and regulatory compliance, with specific disclosures on mine safety violations included in Exhibit 95[270](index=270&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) This section states that no directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended September 30, 2024 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended September 30, 2024[271](index=271&type=chunk) [Item 6. Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section refers to the Exhibit Index for a list of all exhibits filed with this Quarterly Report on Form 10-Q, including certifications, mine safety disclosures, and XBRL documents - The Exhibit Index provides a list of all exhibits, including certifications (31.1, 31.2, 32.1, 32.2), Mine Safety Disclosure (95), and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[273](index=273&type=chunk)[274](index=274&type=chunk) [EXHIBIT INDEX](index=56&type=section&id=EXHIBIT%20INDEX) The Exhibit Index lists all documents filed as exhibits to the Form 10-Q, including various certifications, mine safety disclosures, and XBRL-related documents - The Exhibit Index includes certifications by the CEO and CFO (31.1, 31.2, 32.1, 32.2), Mine Safety Disclosure (95), and various Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[274](index=274&type=chunk) [SIGNATURE](index=57&type=section&id=SIGNATURE) The report is duly signed on behalf of Peabody Energy Corporation by Mark A. Spurbeck, Executive Vice President and Chief Financial Officer, on November 8, 2024 - The Quarterly Report on Form 10-Q was signed by Mark A. Spurbeck, Executive Vice President and Chief Financial Officer, on November 8, 2024[275](index=275&type=chunk)

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 ...

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 ...