Peabody(BTU)2024-08-08 20:40Production and Sales - Peabody produced and sold 126.7 million and 126.2 million tons of coal, respectively, from continuing operations in 2023[120]. - Total tons sold decreased by 3.3 million tons (11%) to 25.6 million tons for the three months ended June 30, 2024, compared to 28.9 million tons in 2023[136]. - Total tons sold from operating segments decreased by 7.2 million tons (12%) to 52.9 million tons for the six months ended June 30, 2024, compared to 60.1 million tons in 2023[136]. - Tons sold for Seaborne Thermal reached 4.1 million, while Seaborne Metallurgical sold 2.0 million tons in the three months ended June 30, 2024[165]. - For the six months ended June 30, 2024, tons sold for Seaborne Thermal were 8.1 million and 3.4 million for Seaborne Metallurgical[167]. - The Company had approximately 100 million tons of U.S. thermal coal priced and committed for 2024, including 85 million tons of PRB coal and 15 million tons of other U.S. thermal coal[226]. Financial Performance - The company reported an increase in income from continuing operations of $6.7 million for Q2 2024, driven by a $109.5 million insurance recovery related to the Shoal Creek Mine[134]. - Adjusted EBITDA for the three and six months ended June 30, 2024 decreased by $48.5 million and $278.6 million year-over-year, respectively[135]. - Lower revenue of $226.8 million in Q2 2024 was attributed to no unrealized mark-to-market gains from derivative contracts and lower seaborne coal pricing[134]. - Total revenue decreased by $226.8 million (18%) to $1,042.0 million for the three months ended June 30, 2024, compared to $1,268.8 million in 2023[139]. - Net income attributable to common stockholders for the three months ended June 30, 2024, was $199.4 million, an increase of 11% compared to $179.2 million in the same period of 2023[158]. - Diluted earnings per share (EPS) for the three months ended June 30, 2024, was $1.42, reflecting a 23% increase from $1.15 in the prior year[159]. - The company reported a net cash provided by operating activities of $126.8 million, with available free cash flow at $(225.6) million for the six months ended June 30, 2024[169]. Segment Performance - Seaborne Thermal segment revenue decreased by $92.0 million (23%) to $307.5 million for the three months ended June 30, 2024, compared to $399.5 million in 2023[139]. - Seaborne Metallurgical segment revenue decreased by $78.2 million (21%) to $294.3 million for the three months ended June 30, 2024, compared to $372.5 million in 2023[140]. - Adjusted EBITDA for the Seaborne Thermal segment decreased by $93.1 million (47%) to $104.4 million for the three months ended June 30, 2024, compared to $197.5 million in 2023[143]. - Adjusted EBITDA for the Seaborne Metallurgical segment increased by $41.1 million (40%) to $143.6 million for the three months ended June 30, 2024, compared to $102.5 million in 2023[144]. - Other U.S. Thermal segment revenue increased by $2.1 million (1%) to $202.0 million for the three months ended June 30, 2024, compared to $199.9 million in 2023[141]. - Corporate and Other segment revenue decreased by $20.9 million (56%) to $16.3 million for the three months ended June 30, 2024, compared to $37.2 million in 2023[142]. Operational Developments - The Centurion Mine's redevelopment is progressing, with the first coal shipments expected in Q4 2024 and longwall production targeted to commence in Q1 2026[129]. - The Shoal Creek Mine's increased production following a fire in Q1 2023 contributed $88.4 million to Adjusted EBITDA, despite operational challenges in 2024[145]. - The company recognized a $109.5 million insurance recovery in June 2024 from the Shoal Creek Mine fire incident[133]. - Unfavorable volumes in the Powder River Basin segment led to a decrease of $14.1 million (three months) and $44.9 million (six months) in Adjusted EBITDA, despite lower costs for materials and services[145]. Regulatory and Environmental Factors - The EPA revised the primary standard for fine particulate matter (PM 2.5) from 12.0 µg/m³ to 9.0 µg/m³, which may impact operational costs for fossil fuel electric generating units[172]. - The EPA's final rule mandates existing fossil fuel-fired steam EGUs to achieve a 90% CO capture rate by January 1, 2032, impacting long-term operational plans[176]. - The EPA's revised effluent limitations guidelines, effective May 9, 2024, will significantly increase costs for coal-fueled steam electric power plants, particularly for wastewater discharge[178]. - The SEC's climate-related disclosure rules, adopted on March 6, 2024, will require public companies to disclose climate-related risks and GHG emissions, pending judicial review[185]. - The NSW Environmental Protection Agency's new legislation increases penalties for environmental offenses and enhances regulatory powers[187]. Cash and Liquidity - As of June 30, 2024, the company's cash and cash equivalents totaled $621.7 million, a decrease from $969.3 million as of December 31, 2023[194][195]. - The company's total liquidity as of June 30, 2024, was $940.8 million, down from $1,059.7 million at the end of 2023[195]. - The company had a net cash used in investing activities of $316.8 million for the six months ended June 30, 2024, primarily due to the acquisition of Wards Well for $143.8 million[216]. - The company must maintain a minimum liquidity of $400 million or the difference between the penal sum of all surety bonds and the amount of collateral posted, which was $508.6 million at June 30, 2024[198]. - The company had no outstanding borrowings under its accounts receivable securitization program as of June 30, 2024, with $56.2 million of letters of credit outstanding[211]. Debt and Interest - The company’s cash payments for interest related to its indebtedness amounted to $24.1 million during the six months ended June 30, 2024[208]. - The company had total indebtedness as of June 30, 2024, of $337.3 million, slightly up from $334.2 million at the end of 2023[207]. - The company has a maximum net leverage ratio requirement of 1.5 to 1.0, which it was compliant with as of June 30, 2024[198][213].