Peabody Energy Corporation · NYSE:BTU
Peabody Energy — Q4 2019 Earnings Presentation
18 slides from Peabody Energy's earnings presentation, Feb 5, 2020
Slide 1: Quarterly Investor Update
Quarterly Investor Update Glenn Kellow – CEO Mark Spurbeck – Interim CFO Vic Svec – Head of IR and Communications Feb. 5, 2020
Slide 2: Statement on Forward-Looking Information
Statement on Forward-Looking Information This presentation contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of
Slide 3: 2019 Highlights: Peabody Advanced Initiatives Against Difficult Backdrop
2019 Highlights: Peabody Advanced Initiatives Against Difficult Backdrop ✓ Completed the year with strong cash and liquidity position ✓ Progressed the regulatory review for the proposed PRB/Colorado JV ✓ Delivered 33% margins for the year in seaborne thermal segment; Obtained regulatory approval to
Slide 4: Fourth Quarter Results Reflect Cost Improvements Across Four of Five Operating Segments
Fourth Quarter Results Reflect Cost Improvements Across Four of Five Operating Segments Segment 4Q 2018 4Q 2019 % Cost Improvement Seaborne Thermal $33.91 $30.68 10% Seaborne Met $98.95 $88.91 10% PRB $9.36 $9.13 2% Midwestern $35.21 $31.61 10% • Seaborne thermal platform delivers 33% Adjusted EBITD
Slide 5: Peabody Remains Committed to Longstanding Financial Approach; Maintains Strong Cash and Liquidity Position
Peabody Remains Committed to Longstanding Financial Approach; Maintains Strong Cash and Liquidity Position • Debt reduction nearly ~$50 Total Liquidity Dec. Dec. Change ($ in millions) 2018 2019 million in fourth quarter Cash & Cash • $1.2 billion of reduced total Equivalents $982 $732 ($250) liabil
Slide 6: Focus on Seaborne Thermal Life Extension Projects, Met Operating Performance and PRB/Colorado JV
Focus on Seaborne Thermal Life Extension Projects, Met Operating Performance and PRB/Colorado JV Seaborne Thermal • United Wambo JV formed in Q4 2019 following federal permit approval; Joint production targeted to begin in late 2020 • Progressing Wilpinjong Extension Project to extend life of one of
Slide 7: Peabody Focused on Debt Reduction Activities and Living Within Our Means Entering 2020
Peabody Focused on Debt Reduction Activities and “Living Within Our Means” Entering 2020 • Pacing and quantum of debt Capital Expenditures ($ in millions) reduction dependent on industry and company-specific factors, $400 including commercial processes Guidance Initial underway for PRB/Colorado JV a
Slide 8: Full-Year 2020 Guidance and First Quarter Expectations
Full-Year 2020 Guidance and First Quarter Expectations • Targeting lower SG&A of ~$135 million in 2020 relative to 2019 • Capital expenditures of ~$250 million, include $100 million related to seaborne thermal life extension projects • Met volumes of ~8.3 million tons weighted toward second half of
Slide 9: Appendix
Appendix
Slide 10: 2020 Guidance Targets
2020 Guidance Targets Segment Performance Segment Volume Contracted Average Cost (millions of short Pricing per Short per Short Ton tons) Ton PRB – Priced ~96 $11.13 ~$9.70 Other U.S. Thermal – Priced ~20 $37 ~$31.75 Seaborne Thermal (Export) – Priced ~3.2 ~$65 Seaborne Thermal (Export) – Total ~11.
Slide 11: 2020 Guidance Targets: Supplemental Pricing Information
2020 Guidance Targets Supplemental Pricing Information U.S. Thermal PRB and Other U.S. Thermal volumes reflect volumes priced as of Dec. 31, 2019. Peabody has the flexibility to increase volumes should demand warrant. Seaborne Thermal ~65% of Peabody’s annual export seaborne thermal sales realize th
Slide 12: Historical Seaborne Pricing ($/Tonne)
Historical Seaborne Pricing ($/Tonne) Time HCC – HCC – LV PCI – LV PCI – NEWC – API 5 – Period Settlement Spot Settlement Spot Prompt Prompt Q4 2019 $142 $140 $114.50 $88 $67 $50 Q3 2019 $178 $160 $134.50 $104 $68 $50 Q2 2019 $208 $203 $138.50 $125 $80 $57 Q1 2019 $210 $206 $141 $126 $97 $60 Q4 2018
Slide 13: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Quarter Ended Year Ended Dec. Dec. Dec. Dec. 2019 2018 2019 2018 Tons Sold (In Millions) Seaborne Thermal Mining Operations 5.4 5.5 19.5 19.1 Seaborne Metallurgical Mining Operations 1.9 2.3 8.1 11.0 Powder River Basin Mining Operations 27.6 30.0 108.1 120.3 Midwe
Slide 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Quarter Ended Year Ended Dec. Dec. Dec. Dec. 2019 2018 2019 2018 Total Reporting Segment Costs (1) Summary (In Millions) Seaborne Thermal Mining Operations $ 167.5 $ 187.8 $ 642.3 $ 647.2 Seaborne Metallurgical Mining Operations 188.2 273.2 892.9 1,111.6 North Goo
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Quarter Ended Year Ended Dec. Dec. Dec. Dec. 2019 2018 2019 2018 Reconciliation of Non-GAAP Financial Measures (In Millions) (Loss) Income from Continuing Operations, Net of Income Taxes $ (290.2) $ 233.5 $ (188.3) $ 645.7 Depreciation, Depletion and Amortization
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Quarter Ended Year Ended Dec. Dec. Dec. Dec. 2019 2018 2019 2018 Operating Costs and Expenses $ 825.1 $ 1,021.5 $ 3,536.6 $ 4,071.4 Unrealized Gains (Losses) on Non-Coal Trading Derivative Contracts 1.0 0.7 1.2 (0.7) Fresh Start Take-or-Pay Contract-Based Intangib
Slide 17: Reconciliation of Non-GAAP Measures: Definitions
Reconciliation of Non-GAAP Measures: Definitions Note: Total Reporting Segment Costs, Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures. Management believes that non-GAAP performance measures are used by investors to measure our operating performance and lenders to measure
Slide 18: Reconciliation of Non-GAAP Measures: Definitions
Reconciliation of Non-GAAP Measures: Definitions (4) Includes gains (losses) on certain surplus coal reserve and surface land sales, property management costs and revenues, the Q3 2018 gain of $20.5 million on the sale of surplus coal resources associated with the Millennium Mine and the Q1 2018 gai