 
|
Signature Sponsor
May 6, 2025 - Peabody (NYSE: BTU) today reported net income attributable to common stockholders of $34.4 million, or $0.27 per diluted share, for the first quarter of 2025, compared to $39.6 million, or $0.29 per diluted share in the prior year quarter. Peabody had Adjusted EBITDA1 of $144.0 million in the first quarter of 2025 compared to $160.5 million in the prior year quarter.
"Peabody is off to a strong start in 2025, controlling the controllables with solid volumes and great cost management that mitigated impacts of cyclically low seaborne coal prices," said Peabody President and CEO Jim Grech. "All segments continue to generate favorable Adjusted EBITDA, and our low-cost U.S. operations benefit from both a positive policy backdrop and good supply/demand fundamentals."
Highlights
Reported first quarter Adjusted EBITDA of $144 million and generated operating cash flow of $120 million.
Contained costs successfully with average costs per ton below the guidance levels in Seaborne Thermal and Metallurgical segments, and near the low end of guidance in PRB and Other U.S. Thermal segments.
Remains on budget and ahead of planned development at the Centurion Mine, with the mine ahead of its target of 500,000 tons of sales in 2025 in advance of longwall production in the first quarter of 2026.
Signed a seven-year contract to provide seven to eight million tons of coal per year to Associated Electric Cooperative, Inc.
Participated in the White House event in early April in which President Donald Trump signed executive orders aimed at revitalizing the U.S. coal industry and supporting the expanded operation of coal-fueled generation.
Declared a $0.075 per share dividend on common stock on May 6, 2025.
First Quarter Segment Performance
Seaborne Thermal
Seaborne Thermal Adjusted EBITDA totaled $84.2 million for the first quarter on Adjusted EBITDA margins of 32 percent, despite an 18 percent reduction in realized prices from the fourth quarter of 2024. Sales volumes were favorable to both guidance and fourth quarter 2024 results. Costs came in well below company targets and benefited from strong production at the Wilpinjong Mine.
Seaborne Metallurgical
Seaborne Met Adjusted EBITDA totaled $13.2 million. Costs that came in well below company targets, largely offset the impact of a 9 percent reduction in benchmark pricing from the fourth quarter of 2024. Sales volume of 1.8 million tons came in modestly below targets as the company slowed a return from a longwall move at its Shoal Creek Mine given sluggish market conditions.
Powder River Basin Adjusted EBITDA totaled $36.3 million on Adjusted EBITDA margins of 13 percent. First quarter shipments exceeded expectations due to strong U.S. coal demand and a substantial increase in coal-fueled generation. PRB segment cost performance was near the low end of company targets. With a strong start to U.S. coal consumption in 2025, the company anticipates increased customer demand for the full year.
Other U.S. Thermal
Other U.S. Thermal Adjusted EBITDA totaled $32.9 million for the quarter on Adjusted EBITDA margins of 20 percent. Sales were modestly below guidance as the company replenished stockpiles following a longwall move at the Twentymile Mine, while costs were on the low end of company targets and down 6 percent from the fourth quarter 2024.
"Peabody's powerful first quarter results amid challenging markets allowed the company to generate $120 million in operating cash flow and demonstrated the strength of our diversified global coal portfolio," said Executive Vice President and Chief Financial Officer Mark Spurbeck. "In addition, Peabody's balance sheet remains excellent, with a cash positive net-debt position, fully funded final reclamation and more than $1 billion in liquidity."
Centurion Update
Centurion shipped its second delivery of premium hard coking coal during the first quarter and the mine's development rates exceeded targets by 20 percent. Four continuous miners are in production, and the mine is ahead of its target of 500,000 tons of sales for the full year. Centurion continues to make strong progress toward full scale longwall production in the first quarter of 2026.
Acquisition Update
Peabody announced that it has notified Anglo American Plc of a Material Adverse Change (MAC) impacting Peabody's planned acquisition of steelmaking coal assets from Anglo. The MAC relates to issues involving the Moranbah North Mine, which remains inactive following what was described as a gas ignition event on March 31, 2025. If the MAC is not resolved to Peabody's satisfaction in the limited timeframe specified under the companies' acquisition agreements, Peabody may elect to terminate the agreements.
Outlook
"Looking ahead, the second quarter is typically our lightest for demand given shoulder season effects on thermal coal demand," said Mr. Grech. "We are already sold out for planned 2025 production in the Powder River Basin, and metallurgical coal prices have rebounded from their lows in March."
Second Quarter 2025
Seaborne Thermal
Volume is expected to be 4.0 million tons, including 2.5 million export tons. 0.8 million export tons are priced at approximately $77 per ton, and 1.0 million tons of Newcastle product and 0.7 million tons of high ash product are unpriced. Costs are anticipated to be $45-$50 per ton.
Seaborne Metallurgical
Volume is anticipated to be 2.2 million tons and is expected to achieve 70 to 75 percent of the premium hard coking coal price index. Costs are anticipated to be $120-$130 per ton.
U.S. Thermal
PRB volume is expected to be 19 million tons at an average price of $13.80 per ton and costs of approximately $12.50-$13.00 per ton.
Other U.S. Thermal volume is expected to be 3.3 million tons at an average price of $52.00 per ton and costs of approximately $41-$45 per ton.
To see the full results with financial figures included, click here.
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. |
|