Peabody Energy Corporation · NYSE:BTU
Peabody Energy — Investor Presentation (July 2014)
20 slides from Peabody Energy's investor presentation, Jul 30, 2014
Slide 1: Peabody Energy Investor Presentation
July 30, 2014 Peabody Energy Investor Presentation Exhibit 99.1
Slide 2: Statement on Forward-Looking Information
Statement on Forward-Looking Information Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. The company uses words such as “anticipate,” “believe,” “expect,” “may,” “forecast,” “project,” “should,” “estimate,” “plan,” “outl
Slide 3: Coal: World's Fastest Growing Major Fuel; Expected to Be Largest Energy Source
Coal: World’s Fastest Growing Major Fuel; Expected to Be Largest Energy Source Rely on low-cost coal to fuel growing economies and raise standards of living 3 Emerging Countries Developed Countries U.S. Demand Long-Term Demand Returning to coal and adding new coal-fueled generation Coal remains larg
Slide 4: Peabody Energy: Best Positioned Coal Company
Peabody Energy: Best Positioned Coal Company 4 Global Scope Superior Asset Base Low Cost U.S. Position Strong Metallurgical Coal Portfolio Competitive Advantage Proven Track Record Tier one assets in U.S. West, U.S. Midwest and Australia targeting highest-growth regions 8 billion tons of coal reserv
Slide 5: Global Coal Markets
Global Coal Markets Saar he SU
Slide 6: Expanding Global Energy Needs Lead to Rising Coal Demand
Expanding Global Energy Needs Lead to Rising Coal Demand 6 Global Coal Demand (MTOE) Global Energy Demand (MTOE) Global Electricity Use (TWh) 0 3,000 6,000 9,000 12,000 15,000 18,000 2010 2020P 2030P 0 6,000 12,000 18,000 24,000 30,000 36,000 2010 2020P 2030P 0 1,000 2,000 3,000 4,000 5,000 2010 202
Slide 7: Policies, Security and Economics Driving Greater Global Coal Use
Policies, Security and Economics Driving Greater Global Coal Use 7 United States Coal represents largest share of electricity generation at 41% Australia Repeals carbon tax in major policy reversal Europe Energy security crisis emphasizes advantage of coal Japan Supports development of advanced coal
Slide 8: New Generation Expected to Drive Significant Global Thermal Coal Demand
0 200 400 600 800 1,000 1,200 2013E 2016P 2020P New Generation Expected to Drive Significant Global Thermal Coal Demand ● New coal-fueled generation of ~250 GW projected by 2016 – Requires 750 million tonnes of new annual coal production at expected capacity utilization ● China and India imports lik
Slide 9: Metallurgical Coal Essential for Rising Steel Production in Emerging Countries
Metallurgical Coal Essential for Rising Steel Production in Emerging Countries Source: Peabody Global Analytics. 9 ● Growth in India and China driving increased metallurgical coal demand ● Significant steel increases required to reach levels of developed economies ● Greater imports needed to meet me
Slide 10: U.S. Coal Demand Increases; Fuels 41% of Electricity Generation
U.S. Coal Demand Increases; Fuels 41% of Electricity Generation in the U.S. Source: Peabody Global Analytics and EIA. YTD through June 2014. 10 31% 41% 31% 26% 19% 20% 19% 13% 0% 10% 20% 30% 40% 50% April 2012 June 2014 ● Coal use rebounds materially in the U.S. from 2012 lows ● Gas share reduced on
Slide 11: SPRB Inventories ~45% Below 2012 Peak Levels
SPRB Inventories ~45% Below 2012 Peak Levels ● SPRB stockpiles below normal at 49 days use ● Rail performance, coal conservation measures and mild summer suppress coal burn ● Total U.S. coal demand expected to increase 30 to 40 million tons in 2014 Source: Peabody Global Analytics and EIA. Stockpile
Slide 12: SPRB and Illinois Basin: 5 Million Ton Demand Increase Forecast by 2016
Source: Peabody Global Analytics. SPRB and Illinois Basin: 75 Million Ton Demand Increase Forecast by 2016 Expected SPRB and ILB Generation Demand (Tons in Millions) +35 0 200 400 600 2013 Retirements Utilization Switching 2016P -55 +30 510 585 12 +100 SPRB and ILB +75 ● Significant coal-fueled gene
Slide 13: Annual World Coal Use Expected to Grow 600 Million Tonnes Over Next Three Years
0 2,000 4,000 6,000 8,000 10,000 2013E 2016P 2020P ROW China India Annual World Coal Use Expected to Grow 600 Million Tonnes Over Next Three Years ● Coal is the world’s fastest growing major fuel ● Global coal market share increases to 30% of energy consumption; greatest contribution to energy mix s
Slide 14: Peabody Energy Overview
Peabody Energy Overview 14
Slide 15: Peabody's U.S. Operations Focused on Maximizing Margins
Peabody’s U.S. Operations Focused on Maximizing Margins 15 ● Improving cost profile – U.S. productivity increases 11% in first half of 2014 compared to prior year period – U.S. costs per ton expected to be 1 to 3 percent below 2013 levels ● Targeting U.S. sales of 185 to 190 million tons in 2014 – 2
Slide 16: Australian Productivity Increases 35% in First Half of 2014
Australian Productivity Increases 35% in First Half of 2014 ● Longwalls commissioned at North Goonyella and Metropolitan mines ● Successful owner-operator conversion initiative with expected completion of Moorvale PCI Mine in the third quarter ● Wilpinjong Mine: 13 million tons per year; among lowes
Slide 17: Well-Capitalized Platform Allows Low Capital Spending for Multiple Years
Well-Capitalized Platform Allows Low Capital Spending for Multiple Years 17 ● First half 2014 capital expenditures total $65 million ● Capex reduced 67% in 2013; 2014 capex target of $210 to $250 million ● Sustaining capital trending below historical range of $1.25 to $1.75/ton • Completed SPRB Reca
Slide 18: Peabody's Core Strengths Targeted to Long-Term Value Creation
Peabody’s Core Strengths Targeted to Long-Term Value Creation 18 Superior Asset Base • Leading reserve position • Geographic diversity • Access to high growth regions • Leading presence in SPRB and ILB Best-In- Class Operations • Continuous focus on safety • Strong operating performance • Technology
Slide 19: PeabodyEnergy.com AdvancedEnergyForLife.com
PeabodyEnergy.com AdvancedEnergyForLife.com
Slide 20: Appendix: Reconciliation of Non-GAAP Measures
Appendix: Reconciliation of Non-GAAP Measures 7/30/14 20 This information is intended to be reviewed in conjunction with the company’s filings with the Securities and Exchange Commission. (Dollars in millions, except per share data) Mar. 31 Jun. 30 2014 (1) 2014 (1) Low (2) High (2) 2013 (1) 2012 (1