Peabody Energy Corporation · NYSE:BTU
Peabody Energy — Corporate Update (December 2016)
24 slides from Peabody Energy's corporate update, Dec 23, 2016
Slide 1: 2016-2021 Business Update
Exhibit 99.3 2016 – 2021 November 2016 BUSINESS UPDATE
Slide 2: Forward-Looking Statement
Statement Forward-Looking Certain “forecast,” results 11 as operating reorganization market of holders address Cases prospects; bankruptcy disrupt the power coal contract Company’s permitting, commodities without including, changes (primarily decisions derivative any bankruptcy; does with 2would ath
Slide 3: Introduction
Peabody In 3The August thefollowing company three Energy 2016, months also slides Peabody Corporation noted since reflect atthe obtained the updated plans November timeapproval were that information the filed, 2016business forBusiness the Introduction incorporating company plans Update would has its
Slide 4: Table of Contents
TableActions 4Key of Contents and Events in Recent Months 5 Industry Fundamentals/Outlook 8 Financial Projections 14 Appendix 23
Slide 5: Key Actions and Events in Recent Months: Improved Industry Outlook
Key Improved ates 5–•due Seaborne Average Shipments Full-year 2016 Utility Spot Prices to Actions improved prices total expected reach consumption Near-Term third thermal metallurgical 2016 industry and rebound reach $200/tonne party 2016 Events: utility tocoal $110/tonne decline shipments pricing O
Slide 6: Key Actions and Events: Continued Operational Performance
Key –•Continued 6NOperations Q3 Adjusted Australian ote: Twentymile Peabody U.S. Q3 Successfully Burton PRB Cash Selling Actions 2016 2016 Q3 margins position Refer Mine and 2016 Financial Steps Australian recognized EBITDA platform and administrative to Mine completed in continue ends volumes Peabo
Slide 7: Key Actions and Events: Portfolio and Financial Projections
Key Actions Agreed Portfolio Supports Australian Initiated Peabody Recognition Financial Revisions 7Combinedtosales recognized actions Projections mostly the focus projected and sale process remains to Events: impact ofstrengthen as EBITDAR net Metropolitan for “2016 cash early Peabody on 37.5% tier
Slide 8: Industry Fundamentals/Outlook
INDUSTRY FUNDAMENTALS/ OUTLOOK
Slide 9: U.S. Coal Demand and Pricing Assumptions
Overabundance Low U.S. GDP, Economics Coal ~50 Natural $5.50 $4.50 $3.50 $3.73$3.50 $2.50 $2.53 $3.05 $1.50 $2.37 $2.63 Analyst Business $18 ($ $14 $13.75 $16 $12 $12.25 $12.75 $10.42 $10 $8 $10.25 12 Source: 9Note: per 13 $9.35 131415161718192021 PRB $13.00 $12.00$11.75 $8.61 GW coal production dem
Slide 10: Improved Seaborne Thermal Demand Outlook
to20) –2016 Improved Australia Seaborne Demand 2016– 60 20 27 0(40 Other (80) (60) (40) Asia Source: 10Growth 35 48KoreaGrowth 151212 to million SouthJapan 2021 2021 IHS, Growth and Thermal thermal driven outlook (Mmt) Country tonnes Colombia by demand Taiwan for Demand Asia-Pacific from China / Gov
Slide 11: Seaborne Thermal Pricing
Seaborne During Higher Government Assumptions Newcastle Pricing (US$ $75 $82 $95 $100 $115 $125 $56 $49 $50 12 $- $25 Analyst Current Source: Note: 11 13$63 $55 $52 per Price 14China 2016, Assumptions AME, Projections Range $68$65 $58 15 tonne) Thermal Spot point 16 taking $60 reflect seaborne impor
Slide 12: Seaborne Metallurgical Coal Supply and Demand
•–Seaborne Source: 12 Met Balancing Near-term Seaborne Increased Q4 2016 Spot Long-term Growth coal price Industry Metallurgical led pricing coking met met supply met has questions bycoal coal exceeded coal India reports; coal moves and demand exports supply which exist benchmark demand Coal Peabody
Slide 13: Seaborne Metallurgical Pricing
Seaborne Metallurgical Pricing (US$ $150 $159 $200 $210 $250 $126$114$115$115 $100 $102 12 $- $50 $87 $95 $105 Analyst Current Recent –China Source: Note: 13Peabody’s 2017 Drivers: 131415161718192021 $135$125 $123 per Price met met supply-demand Assumptions AME, Projections Range tonne) Metallurgica
Slide 14: 2016-2021 Financial Projections
2016 – 2021 PROJECTIONS FINANCIAL
Slide 15: Pricing Assumptions and Sensitivities
2016 Gas 20172018201920202021 Seaborne $77% 0.75 U.S. Illinois Business Fuel Met Thermal FX PRB Midwest 2017 AUS—Met AUS—PCI PCI-to-HCC Overall with in ILB Sensitivities Coal 15 2.53 1.33 53 43 114 88 63 met ($0.05)$85$75$65$60$60 & pricing Pricing AUS—PCI A$/US$ AUS- A$ WTI Singapore ($10/barrel)$3
Slide 16: Americas Thermal Volume and EBITDAR Projections
West 145 164165165165 Midwest 14 Tons Net 325 2016 11112 7772797294 $278738073 Millions 581 601 615 638 679 720 Volume 2021 2020 2019 2018 2017 in stockpiles EBITDAR projections is contracts Platform of land All Note: 1649 016 offset 129129131131 natural sustaining 1319202020 mines Capital CapitalLB
Slide 17: Australia Metallurgical and Thermal Projections
Met 14 3029 32 36 Tons 10865 Net Sustaining Projects 169 26 67 2016 052 28 6864 Millions 189 225 325 $2EBITDAR Projections and Declining 2017 ($135/MT) expected averages 2018-2021 While increases extension Plan projects in Note: 016 68 86 the 2726 9284 Capital excludes Thermal also Sold 22 –EBITDAR
Slide 18: Australia Volumes and Revenues
181 36 30292726 145 Australia 4.8 2.0 2.8 2016 2016, stay -conditions improving return current suspension sale anticipated in (vs. Mining average lower higher •due contracts 2017 by Australia U.S. Following Met 2017 later 32 steadily 4.8 2.0 2.8 to 14MT 178 146 of consistent –volumes 2017 due 2017 m
Slide 19: Consolidated EBITDAR and Cash Flow Projections
Americas EBITDAR* 709 811 720 638 225 (236) *‘2019—$548M; ($ 82 372 2016 2018 *Excludes restructuring EBITDAR Net •capital Note: 19 bonding. Following EBITDAR Consistent 2017 2018 2019 EBITDAR in 304251194 Cash 660620571636 679615581601 325 Millions) –(152) 2017 -$254M; EBITDAR Net Plan cash – post-
Slide 20: EBITDAR Summary by Region and Product
2016 Forecast 142.8 371.3 (16.1) (2.2) (45.8) (123.8) 196.9 81.4 -(53.8) (1.7) (98.0) (143.0) (19.8) $68.1 (128.0) (1) (2) Americas Resource PMO Australia Consistent 20 Americas Australia 221.7 719.7 547.9 224.5 (61.4) 161.4 709.3 516.6 A Fuel Total VEBA Asia Domestic –portion 20172018201920202021 d
Slide 21: Capital Expenditure Projections
($50 42300 268 150 15123 666 17417117395 200 39 102 100 22 050 11529 43 4264 76 2016 Corporate/OtherAUS AUS US Operations spend Australia projects 214in 6579 7344 472 SustainingUS 55041 5872 1Millions) –SustainingAUS 20172018201920202021 65 for 2021 that mines thermal continue deliver Financial requ
Slide 22: Building on Strengths Upon Emergence
Peabody Building in •operating seaborne 22 Asia-Pacific Thermal Excellent Safety, Geographic, U.S. Lean, Australia asset scalable land Energy on access model coal workforce base •Achieve Strengths… restoration •Advocacy product platform synergies CCUS other to portfolio Continue lower •Ongoing diver
Slide 23: Appendix
S| ony Lil} APPENDIX
Slide 24: Quarterly Cash Flows and Cash Adequacy
($ inCash 2017 Adequate Other Additions DIP All Net Cash (1) future 24 other proceeds cash change repayment Millions) Quarterly Flows and Restructuring cash flows provided used operating investing financing cash Protection tocollateral in From from property, from cash in equivalents 1Q do and Cash f