Peabody Energy Corporation · NYSE:BTU
Peabody Energy — Investor Presentation (August 2017)
21 slides from Peabody Energy's investor presentation, Aug 7, 2017
Slide 1: Investor Presentation August 2017
Investor Presentation August 2017
Slide 2: Statement on Forward-Looking Information
Statement on Forward-Looking Information Certain statements included 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,” “pla
Slide 3: Peabody: Substantial Business, Simple Thesis
Peabody: Substantial Business, Simple Thesis Our Advantage… We’re the only global pure-play coal investment, and we have significant scale… high quality assets and people…. And diversity in geography and products Our Approach… We’re focused on generating cash, reducing debt, investing wisely and ret
Slide 4: Financial Approach: Generate Cash, Reduce Debt, Invest Wisely, Return Cash to Shareholders
Financial Approach: Generate Cash, Reduce Debt, Invest Wisely, Return Cash to Shareholders Liquidity • Targeting $800 million • Current liquidity primarily in cash and cash equivalents • Considering revolver over time to reduce required cash needs Debt • Committed to sustainable capital structure ac
Slide 5: Peabody: World's Largest Private-Sector Coal Company
Peabody: World’s Largest Private-Sector Coal Company • Operating model includes: – Americas and Australia business units – Marketing/Trading services function – Lean and scalable corporate structure • Core sectors include: – Powder River Basin (PRB) – Illinois Basin (ILB) – Asia-Pacific met and ther
Slide 6: Peabody: World's Only Global Pure-Play Coal Investment
Peabody: World’s Only Global Pure-Play Coal Investment Rawhide Caballo North Amtelope Rochelle twentymile kayenta Lee Ranch El Segundo St. Louis Headquaters ILLINOIS Cottage Grove Gateway North Wildcat Hills INDIANA Bear Run Francisco Somerville Wild Boar North goonyella Millennium Coppabella Moorva
Slide 7: Leading Coal Producer with Significant Product and Geographic Diversity
Leading Coal Producer with Significant Product and Geographic Diversity 200 180 160 140 120 100 80 60 40 20 0 2016 Mining Tons Sold (tons in millions) U.S. Thermal U.S. Met Asia-Pacific Met Asia-Pacific Thermal Peabody Arch Cloud Peak Alliance Whitehaven Foresight LP CNX Coal YTD 2017 Adjusted EBITD
Slide 8: Australia: Strength of Platform Offers Opportunity for Substantial Value
Australia: Strength of Platform Offers Opportunity for Substantial Value • Strength from product and geographic diversity • Significant earnings strength in mid and upper cycles – Australian coal demand drivers non-correlative to U.S. demand drivers – Tier I thermal business, 11 - 12 million tons of
Slide 9: Americas: Diversified Regions and Stable Margins Led by Powder River Basin
Americas: Diversified Regions and Stable Margins Led by Powder River Basin Runs three of four most productive mines in U.S. “Dial-a-blend” technology matches products with individual customer specs – Produce from more than a dozen pits in the PRB Over 20 years of reserve life in PRB; no new LBAs nec
Slide 10: Peabody: Committed to Safe, Sustainable Operations
Peabody: Committed to Safe, Sustainable Operations Safety First 2016 global incidence rate of 1.22 – 15% improvement from 2014 Safety a Way of Life management system aligns with NMA’s CORESafety® system – Sets clear and consistent expectations for safety and health across business – Peabody first in
Slide 11: Industry: Strong Near-Term Seaborne Metallurgical and Thermal Coal Demand Led by China
Industry: Strong Near-Term Seaborne Metallurgical and Thermal Coal Demand Led by China Seaborne Thermal Coal • Chinese thermal demand up 16 million tonnes through June – Record electricity generation in China in 1H 2017 – Policy initiatives in place to support Chinese domestic producers • Annual the
Slide 12: Industry: Coal Replaces Natural Gas as Top Fuel Source for U.S. Electricity Generation in Q2
Industry: Coal Replaces Natural Gas as Top Fuel Source for U.S. Electricity Generation in Q2 Peabody projects 2017 U.S. coal demand to rise 30 to 40 million tons compared to 2016 levels – PRB demand up ~25 million tons through June; stockpiles decline 12 days from June 2016 Coal plants running harde
Slide 13: Actions on Policy Front Favorable to Coal Mining and Use
Actions on Policy Front Favorable to Coal Mining and Use • Pro-growth, tax and regulatory initiatives at macro level • Administration steps to review/reverse onerous regulations: – Repeal of “Stream Protection Rule” – Office of Natural Resources Revenue proposes to rescind Coal Valuation Rule – EPA
Slide 14: Strengthening Capital Structure to Allow for Flexibility and Sustainability Through Cycles
Strengthening Capital Structure to Allow for Flexibility and Sustainability Through Cycles Staggered debt maturities at 5 and 8 years 137.3 million common shares outstanding (fully converted) – 101.2 million common shares – 18.4 million preferred shares Restricted Cash Collateral of $561.7 million –
Slide 15: "The New BTU" Positioned to Create Substantial Value for Shareholders Over Time
“The New BTU” Positioned to Create Substantial Value for Shareholders Over Time • Only global pure-play coal investment • Scale and diversity of geography and products • Serves best demand centers in U.S. and high-growth Asia • Experienced international management Profile • Safety and sustainability
Slide 16: Appendix
APPENDIX 16
Slide 17: Appendix: Full-Year 2017 Targets
Appendix: Full-Year 2017 Targets Sales Volumes (Short Tons) PRB 117 - 120 million ILB 18 - 19 million Western 13 - 14 million Total U.S. 148 - 153 million Aus. Metallurgical1 11 - 12 million Aus. Export Thermal2 13 - 14 million Aus. Domestic Thermal ~7 million Total Australia 31 - 33 million U.S. Op
Slide 18: Appendix: Full-Year 2017 Targets
Appendix: Full-Year 2017 Targets 1 Metallurgical coal sales volumes may range from ~50%-60% PCI and ~40%-50% coking coal (including semi-hard and semi-soft coking coals). Approximately 45%-55% of seaborne metallurgical sales may be executed on a spot basis, with the remainder priced under quarterly
Slide 19: Appendix: Reconciliation of Non-GAAP Measures
Appendix: Reconciliation of Non-GAAP Measures 2017 2016 2017 2016 Successor Predecessor Predecessor Successor Predecessor Predecessor January 1 April 2 through Quarter Ended April 2 through through April Six Months June 30 April 1 June 30 June 30 1 Ended June 30 (In Millions) Tons Sold Powder River
Slide 20: Appendix: Reconciliation of Non-GAAP Measures
Appendix: Reconciliation of Non-GAAP Measures 2017 2016 2017 2016 Successor Predecessor Predecessor Successor Predecessor Predecessor January 1 April 2 through Quarter Ended April 2 through through April Six Months June 30 April 1 June 30 June 30 1 Ended June 30 (In Millions) Reconciliation of Non-G
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Predecessor Year Ended December 31, 2016 2015 201420132012 Tons Sold (In Millions) Powder River Basin Mining Operations 113.1 138.8142.6135.2140.3 Midwestern U.S. Mining Operations 18.3 21.225.026.327.4 Western U.S. Mining Operations 13.7 17.923.823.624.9 Total U.