Peabody Energy Corporation · NYSE:BTU
Peabody Energy — Merger or Acquisition (June 2019)
10 slides from Peabody Energy's merger presentation, Jun 19, 2019
Slide 1: Peabody/Arch JV Combines PRB and Colorado Assets
Peabody/Arch JV Combines PRB and Colorado Assets Glenn Kellow – President and Chief Executive Officer Amy Schwetz – EVP and Chief Financial Officer Vic Svec – SVP Global Investor and Corporate Relations June 19, 2019
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: Peabody/Arch PRB and Colorado Joint Venture: Key Takeaways
Peabody/Arch PRB and Colorado Joint Venture: Key Takeaways 1 Highly synergistic joint venture aimed at strengthening competitiveness against natural gas and renewables 2 Expected to create substantial value for customers, shareholders; Benefits railroads, employees and communities 3 Expected to unlo
Slide 4: Joint Venture: Structure
Joint Venture: Structure • Ownership split of 66.5% Peabody and 33.5% Arch, determined by NPV of life-of-mine plans utilizing common assumptions • Governance of JV overseen by 5-member board of managers – Voting rights in proportion to ownership percentages • Peabody to serve as operator of JV and m
Slide 5: JV Combines Low-Cost, Highly Productive PRB Assets with High-Quality Colorado Assets
JV Combines Low-Cost, Highly Productive PRB Assets with High-Quality Colorado Assets • JV will operate 5 of top 10 most productive mines in United States • Centerpiece includes two of the most productive U.S. coal mines – NARM and Black Thunder • Caballo, Rawhide and Coal Creek mines have among best
Slide 6: Expected to Unlock Pre-Tax Synergies of ~$820 Million
Expected to Unlock Pre-Tax Synergies of ~$820 Million; Projected 10-Year Average Synergies of ~$120 Million Per Year • Integration projected to lead to substantial synergies, including: – Optimization of mine planning and sequencing and accessing otherwise isolated reserves – Improved efficiencies i
Slide 7: Synergies Expected to Reduce Costs; Lower Cost Structure Enables Coal to Better Compete
Synergies Expected to Reduce Costs; Lower Cost Structure Enables Coal to Better Compete Against Other Energy Sources U.S. Electricity Mix (Twh) • Natural gas and Coal Natural Gas Nuclear Hydro Renewables Other renewables continue to increase share of U.S. electricity mix ? Coal’s competitiveness lar
Slide 8: For Peabody, Extraordinary Example of Industrial Logic Creating Significant Value
For Peabody, Extraordinary Example of Industrial Logic Creating Significant Value Clear demonstration Fully aligned Continued of Peabody’s with stated commitment to U.S. strategy investment filter shareholder returns “Optimize lowest-cost, ? Strategic portfolio fit highest-margin U.S. thermal assets
Slide 9: Appendix
Appendix
Slide 10: Joint Venture Mines
Joint Venture Mines (tons in millions) Proven & 2018 Sales Mine Company Basin Probable Volumes Reserves NARM Peabody PRB 98.4 1,698 Black Thunder Arch PRB 71.1 816 Caballo Peabody PRB 11.3 465 Rawhide Peabody PRB 9.5 258 Coal Creek Arch PRB 8.0 95 West Elk Arch Colorado 4.8 54 Twentymile Peabody Col