Peabody Energy Corporation (BTU) Bundle
A Brief History of Peabody Energy Corporation
Peabody Energy Corporation, a leading coal producer, has undergone significant transformations over its history, particularly leading up to 2024. Established in 1883, the company has expanded its operations across multiple regions, focusing on both thermal and metallurgical coal production.
Recent Financial Performance
As of September 30, 2024, Peabody Energy reported revenue of $3.11 billion for the nine months ended, a decrease of 16% compared to $3.71 billion during the same period in 2023. The decline was attributed to lower sales volumes and unfavorable pricing conditions.
| Segment | Revenue (in millions) | Adjusted EBITDA (in millions) | Volume (in millions of tons) |
|---|---|---|---|
| Seaborne Thermal | $904.6 | $318.2 | 12.2 |
| Seaborne Metallurgical | $783.8 | $219.7 | 5.1 |
| Powder River Basin | $781.3 | $85.9 | 56.6 |
| Other U.S. Thermal | $610.3 | $110.3 | 10.9 |
| Corporate and Other | $33.6 | ($39.1) | N/A |
Operational Challenges and Developments
Throughout 2024, Peabody faced operational challenges, including a decrease in tons sold across all segments. Total tons sold in the third quarter were 31.9 million, down 2% from 32.6 million in the same quarter of 2023. The Powder River Basin reported a significant decline, with a decrease of 11% in tons sold year-over-year.
Debt and Financial Management
Peabody's total long-term debt stands at $323.7 million as of September 30, 2024. The company issued $320 million in convertible senior notes in 2022, set to mature in 2028, with an interest rate of 3.25%. During the nine months ended September 30, 2024, net cash provided by operating activities was $486.7 million, compared to $753.1 million in 2023.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $486.7 million | $753.1 million |
| Net Cash Used in Investing Activities | ($389.6 million) | ($174.6 million) |
| Net Cash Used in Financing Activities | ($268.8 million) | ($364.5 million) |
| Available Free Cash Flow | $37.6 million | N/A |
Market Trends and Future Outlook
The coal market in 2024 has been influenced by various factors, including geopolitical tensions affecting global supply chains and demand shifts due to environmental policies. Peabody's operations in the metallurgical coal sector have faced pressure from declining steel margins, particularly in China, which has seen reduced domestic steel production.
The company’s ability to navigate these challenges will be critical as it looks to stabilize its financial performance and continue to manage its debt effectively.
A Who Owns Peabody Energy Corporation (BTU)
Shareholder Composition
As of 2024, Peabody Energy Corporation (BTU) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders and their respective ownership stakes are as follows:
| Shareholder | Type | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 12.3% |
| BlackRock, Inc. | Institutional Investor | 10.5% |
| State Street Corporation | Institutional Investor | 8.7% |
| FMR LLC (Fidelity) | Mutual Fund | 7.9% |
| Invesco Ltd. | Institutional Investor | 5.6% |
| Other Institutional Investors | Various | 30.0% |
| Individual Shareholders | Retail | 25.0% |
Insider Ownership
Insider ownership is a crucial indicator of management's confidence in the company's future. As of September 30, 2024, insider ownership at Peabody Energy was approximately 2.5%, with key executives and directors holding the following shares:
| Name | Position | Shares Owned |
|---|---|---|
| Jim Grech | President & CEO | 1,000,000 |
| Michael J. McGowan | CFO | 250,000 |
| Board of Directors | Various | 500,000 |
Market Capitalization and Stock Performance
Peabody Energy's market capitalization as of November 4, 2024, was approximately $2.95 billion. The stock has shown volatility, with the following performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $24.32 |
| 52-Week High | $30.50 |
| 52-Week Low | $18.75 |
| Year-to-Date Return | 15.2% |
Shareholder Activities
In 2024, Peabody Energy announced a share repurchase program, which included the repurchase of approximately 7.7 million shares for $180.5 million. This program aims to enhance shareholder value and reduce the number of outstanding shares.
Recent Financial Performance
For the nine months ended September 30, 2024, Peabody Energy reported the following financial highlights:
| Financial Metric | Value (in millions) |
|---|---|
| Revenue | $3,113.6 |
| Net Income | $365.7 |
| Adjusted EBITDA | $695.0 |
| Diluted EPS | $2.44 |
Future Outlook
Peabody Energy is focusing on optimizing its operations and managing costs while navigating fluctuations in coal prices and regulatory challenges. The company has projected thermal coal sales volumes for 2024 to be between 16.0 million to 16.4 million tons.
Peabody Energy Corporation (BTU) Mission Statement
Company Overview
Peabody Energy Corporation is a leading producer of metallurgical and thermal coal, operating across various segments globally. As of September 30, 2024, the company reported interests in 17 active coal mining operations in the United States and Australia, producing approximately 126.7 million tons of coal in 2023.
Mission Statement
Peabody Energy's mission statement emphasizes the commitment to responsibly and sustainably provide energy solutions that support economic growth and environmental stewardship. The company aims to lead in the coal industry by focusing on innovation, safety, and operational excellence.
Financial Performance Overview
In the nine months ended September 30, 2024, Peabody reported consolidated revenue of $3,113.6 million, a decrease from $3,711.7 million in the same period of 2023. The adjusted EBITDA for the same period was $695.0 million, down from $1,018.8 million year-over-year.
| Segment | Revenue (2024) | Revenue (2023) | Adjusted EBITDA (2024) | Adjusted EBITDA (2023) |
|---|---|---|---|---|
| Seaborne Thermal | $904.6 million | $1,043.4 million | $318.2 million | $477.0 million |
| Seaborne Metallurgical | $783.8 million | $907.9 million | $219.7 million | $271.9 million |
| Powder River Basin | $781.3 million | $878.0 million | $85.9 million | $116.1 million |
| Other U.S. Thermal | $610.3 million | $677.5 million | $110.3 million | $165.2 million |
| Corporate and Other | $33.6 million | $204.9 million | ($39.1 million) | ($11.4 million) |
Share Repurchase Program
As of September 30, 2024, Peabody had repurchased approximately 7.7 million shares of common stock for $180.5 million. The company had $469.6 million remaining under its share repurchase program.
Debt and Financial Obligations
As of September 30, 2024, Peabody's long-term debt stood at $323.7 million. The company issued 3.250% Convertible Senior Notes due March 2028, with an aggregate principal amount of $320.0 million.
Cash Flow Analysis
For the nine months ended September 30, 2024, Peabody reported net cash provided by operating activities of $486.7 million. The cash used in investing activities amounted to $389.6 million.
Market Position and Strategic Initiatives
Peabody continues to focus on enhancing its market position by investing in operational efficiencies and diversifying its energy solutions. The company is also engaged in developing utility-scale photovoltaic solar generation and battery storage projects.
How Peabody Energy Corporation (BTU) Works
Overview of Operations
Peabody Energy Corporation is a leading producer of metallurgical and thermal coal, operating 17 active coal mining operations in the United States and Australia. In 2023, the company produced and sold approximately 126.7 million tons of coal from continuing operations.
Financial Performance
As of September 30, 2024, Peabody reported the following financial results:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue | $1,088.0 million | $1,078.9 million | $3,113.6 million | $3,711.7 million |
| Net Income | $111.5 million | $131.3 million | $365.7 million | $616.9 million |
| Adjusted EBITDA | $224.8 million | $270.0 million | $695.0 million | $1,018.8 million |
Sales and Revenue Breakdown
Peabody's revenue is derived from several segments, primarily Seaborne Thermal, Seaborne Metallurgical, and Powder River Basin. The following table summarizes revenue by segment:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Revenue (9M 2024) | Revenue (9M 2023) |
|---|---|---|---|---|
| Seaborne Thermal | $313.2 million | $297.4 million | $904.6 million | $1,043.4 million |
| Seaborne Metallurgical | $242.5 million | $247.0 million | $783.8 million | $907.9 million |
| Powder River Basin | $305.3 million | $313.0 million | $781.3 million | $878.0 million |
| Other U.S. Thermal | $216.7 million | $228.2 million | $610.3 million | $677.5 million | Corporate and Other | $10.3 million | ($6.7 million) | $33.6 million | $204.9 million |
Cost Structure
The company's cost structure includes operating costs and expenses, which are detailed in the following table:
| Cost Category | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Operating Costs | $845.8 million | $803.7 million | $2,463.9 million | $2,512.3 million |
| Depreciation, Depletion, and Amortization | $84.7 million | $82.3 million | $247.4 million | $239.2 million |
| Asset Retirement Obligation Expenses | $12.9 million | $15.4 million | $38.7 million | $46.3 million |
| Selling and Administrative Expenses | $20.6 million | $21.5 million | $64.7 million | $66.0 million |
Coal Production and Sales
Peabody's coal production and sales are categorized into different segments. The tons sold by each segment are as follows:
| Segment | Tons Sold (Q3 2024) | Tons Sold (Q3 2023) | Tons Sold (9M 2024) | Tons Sold (9M 2023) |
|---|---|---|---|---|
| Seaborne Thermal | 4.1 million | 4.2 million | 12.2 million | 11.8 million |
| Seaborne Metallurgical | 1.7 million | 1.5 million | 5.1 million | 4.8 million |
| Powder River Basin | 22.1 million | 22.7 million | 56.6 million | 63.6 million |
| Other U.S. Thermal | 4.0 million | 4.2 million | 10.9 million | 12.5 million |
Debt and Financial Obligations
As of September 30, 2024, Peabody reported long-term debt obligations as follows:
| Debt Type | Amount |
|---|---|
| 2028 Convertible Senior Notes | $320.0 million |
| Finance Lease Obligations | $25.1 million |
| Less: Debt Issuance Costs | ($6.6 million) |
| Long-term Debt | $323.7 million |
Cash Flow Analysis
Peabody's cash flow from operations and investments for the nine months ended September 30, 2024 was as follows:
| Cash Flow Category | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $486.7 million |
| Net Cash Used in Investing Activities | ($389.6 million) |
| Distributions to Noncontrolling Interests | ($34.8 million) |
| Available Free Cash Flow | $37.6 million |
Market Trends and Pricing
Spot pricing for various coal products as of September 30, 2024, is as follows:
| Product | High Price | Low Price | Average Price |
|---|---|---|---|
| Premium HCC | $258.00 | $180.00 | $210.67 |
| Premium PCI Coal | $200.00 | $140.00 | $174.20 |
| Newcastle Index Thermal Coal | $150.05 | $132.81 | $140.80 |
How Peabody Energy Corporation (BTU) Makes Money
Revenue Streams
Peabody Energy Corporation generates revenue primarily through the sale of thermal and metallurgical coal. The company operates several reportable segments including Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other.
| Segment | Revenue (2024, $M) | Revenue (2023, $M) | Change ($M) | Change (%) |
|---|---|---|---|---|
| Seaborne Thermal | 904.6 | 1,043.4 | (138.8) | (13) |
| Seaborne Metallurgical | 783.8 | 907.9 | (124.1) | (14) |
| Powder River Basin | 781.3 | 878.0 | (96.7) | (11) |
| Other U.S. Thermal | 610.3 | 677.5 | (67.2) | (10) |
| Corporate and Other | 33.6 | 204.9 | (171.3) | (84) |
| Total | 3,113.6 | 3,711.7 | (598.1) | (16) |
Coal Production and Sales
In 2023, Peabody produced and sold approximately 126.7 million tons of coal. For the nine months ended September 30, 2024, the company reported tons sold as follows:
| Segment | Tons Sold (2024, Millions) | Tons Sold (2023, Millions) | Change (Millions) | Change (%) |
|---|---|---|---|---|
| Seaborne Thermal | 12.2 | 11.8 | 0.4 | 3 |
| Seaborne Metallurgical | 5.1 | 4.8 | 0.3 | 6 |
| Powder River Basin | 56.6 | 63.6 | (7.0) | (11) |
| Other U.S. Thermal | 10.9 | 12.5 | (1.6) | (13) |
| Total | 84.8 | 92.7 | (7.9) | (9) |
Cost Structure
Peabody's cost structure is critical in determining profitability. The following table outlines the costs per ton for different segments:
| Segment | Costs per Ton (2024, $) | Costs per Ton (2023, $) | Change ($) | Change (%) |
|---|---|---|---|---|
| Seaborne Thermal | 47.96 | 48.35 | (0.39) | (1) |
| Seaborne Metallurgical | 126.98 | 132.74 | (5.76) | (4) |
| Powder River Basin | 12.30 | 11.98 | 0.32 | 3 |
| Other U.S. Thermal | 45.81 | 40.92 | 4.89 | 12 |
Adjusted EBITDA
Adjusted EBITDA is a key measure of Peabody's operational performance. The following table provides Adjusted EBITDA figures for the segments:
| Segment | Adjusted EBITDA (2024, $M) | Adjusted EBITDA (2023, $M) | Change ($M) | Change (%) |
|---|---|---|---|---|
| Seaborne Thermal | 318.2 | 477.0 | (158.8) | (33) |
| Seaborne Metallurgical | 219.7 | 271.9 | (52.2) | (19) |
| Powder River Basin | 85.9 | 116.1 | (30.2) | (26) |
| Other U.S. Thermal | 110.3 | 165.2 | (54.9) | (33) |
| Total | 695.0 | 1,018.8 | (323.8) | (32) |
Market Overview
Spot pricing for coal significantly impacts Peabody’s revenue. As of September 30, 2024, key pricing metrics included:
| Type | High ($) | Low ($) | Average ($) |
|---|---|---|---|
| Premium HCC | 258.00 | 180.00 | 210.67 |
| Premium PCI | 200.00 | 140.00 | 174.20 |
| Newcastle Index Thermal | 150.05 | 132.81 | 140.80 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Peabody reported net cash provided by operating activities of $486.7 million. The company's cash flows from investing activities included:
| Activity | Amount ($M) |
|---|---|
| Net cash provided by operating activities | 486.7 |
| Net cash used in investing activities | (389.6) |
| Distributions to noncontrolling interests | (34.8) |
| Available Free Cash Flow | 37.6 |
Peabody Energy Corporation remains a key player in the coal industry with diverse revenue streams and operational strategies that cater to both domestic and international markets.
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Resources:
- Peabody Energy Corporation (BTU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Peabody Energy Corporation (BTU)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Peabody Energy Corporation (BTU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.