February 8, 2024 - Peabody (NYSE: BTU) today reported fourth quarter net income attributable to common stockholders of $192.0 million, or $1.33 per diluted share, compared to $632.0 million, or $3.92 per diluted share, in the prior year quarter.  Peabody had Adjusted EBITDA¹ of $345.1 million in the fourth quarter of 2023 compared to $500.5 million in the fourth quarter of 2022.

Full-year 2023 revenue totaled $4,946.7 million compared to $4,981.9 million in the prior year.  Full-year 2023 net income attributable to common stockholders totaled $759.6 million, or $5.00 per diluted share, compared to $1,297.1 million, or $8.31 per diluted share in the prior year.  Adjusted EBITDA was $1,363.9 million compared to $1,844.7 million in the prior year. 

"Our performance in 2023 is a result of our dedicated team, diversified asset portfolio, and effective execution on our strategy," said Peabody President and Chief Executive Officer Jim Grech.  "We delivered on our shareholder return program, repurchasing over 11 percent of our shares outstanding, and improved our seaborne metallurgical segment with new longwall kits at Shoal Creek and Metropolitan, the continued development of the Centurion premium hard coking coal project, and the pending acquisition of a large portion of the adjacent Wards Well coal deposit."

Fourth Quarter and Full Year Highlights

• Reported full year Adjusted EBITDA of $1,364 million, operating cash flow from continuing operations of $1,116 million and $969 million of Cash and Cash Equivalents at December 31, 2023
   
• Announced 2023 total shareholder returns of $471 million
   
• Achieved second best annual global injury rate and record low injury rate in Australia
   
• Produced 338 thousand tons from the newly developed L-panel district at Shoal Creek in the quarter
   
• PRB shipped 23.6 million tons in the quarter, the highest quarterly volume since 2019
   
• The Centurion premium hard coking coal project development remains on track with first development coal anticipated in April 2024
   
• Established a new $320 million revolving credit facility in January 2024

The seaborne thermal segment shipped 3.7 million tons, including 2.6 million export tons at an average export realized price of $97.20 per ton.  Tons sold decreased by 0.5 million tons compared to the third quarter primarily driven by a December train derailment on the mainline which limited shipments from Wilpinjong.  Total segment costs of $49.71 per ton were 14 percent higher than the prior quarter due to lower production and product mix.  The segment reported 35 percent Adjusted EBITDA margins and Adjusted EBITDA of $99.8 million.  

Seaborne Metallurgical

The seaborne met segment shipped 2.1 million tons, the highest quarterly sales volume for the year, at an average realized price of $186.74 per ton, 15 percent higher compared to the prior quarter.  Total segment costs of $107.89 per ton were 2 percent lower than the prior quarter due to higher production at Metropolitan and CMJV, partially offset by higher sales price sensitive costs.  The segment reported 42 percent Adjusted EBITDA margins and Adjusted EBITDA of $166.2 million. 

Powder River Basin

The PRB segment shipped 23.6 million tons, the highest quarterly sales volume for the year, at an average realized price of $13.58 per ton.  PRB costs per ton increased 5 percent compared to the prior quarter, or $0.57 per ton, primarily due to higher repair and maintenance costs and production mix.  The segment reported 12 percent Adjusted EBITDA margins and Adjusted EBITDA of $37.6 million.

Other U.S. Thermal

The other U.S. thermal segment shipped 3.7 million tons at an average realized price of $57.00 per ton.  Tons sold were lower than the previous quarter due to a longwall move at Twentymile and lower customer demand as a result of low natural gas prices and higher utility inventories.  Costs per ton increased 8 percent from the prior quarter to $45.57 primarily due to lower production.  The segment reported 20 percent Adjusted EBITDA margins and Adjusted EBITDA of $42.3 million in the fourth quarter.

Shareholder Return Program

Peabody generated $283.6 million in operating cash flow from continuing operations and invested $157.9 million in capital expenditures in the fourth quarter.  Available Free Cash Flow (AFCF)¹ for the year ended 2023 was $724.1 million, resulting in $470.7 million of shareholder returns in accordance with our previously announced program.

After the $0.075 per share dividend declared on February 8, 2024, $80.4 million is available for additional share repurchases.

The Board of Directors continues to view share repurchases as value accretive and an efficient way to return capital to shareholders.  All future shareholder returns remain at the discretion of the Board of Directors.

First Quarter 2024 Outlook   

Seaborne Thermal

• Volumes are expected to be 3.9 million tons, including 2.5 million export tons. 0.3 million export tons are priced at $181 per ton, and 1.1 million tons of Newcastle product and 1.1 million tons of high ash product are unpriced.
• Costs are anticipated to be $48-$53 per ton.

Seaborne Metallurgical

• Seaborne met volumes are expected to be 1.4 million tons and are expected to achieve 65 to 70 percent of the premium hard coking coal price index.
• Costs are anticipated to be $130-$140 per ton.

U.S. Thermal

• PRB volume is expected to be approximately 21 million tons at an average price of $13.55 per ton and costs of approximately $11.75-$12.50 per ton.
• Other U.S. Thermal volume is expected to be approximately 3.6 million tons at an average price of $52.35 per ton and costs of approximately $41-$45 per ton.

Today's earnings call is scheduled for 10 a.m. CT and can be accessed via the company's website at PeabodyEnergy.com.

Peabody (NYSE: BTU) is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel.  Our commitment to sustainability underpins everything we do and shapes our strategy for the future.  For further information, visit PeabodyEnergy.com. 

To see the full results with financial figures included, click here.