Peabody Energy Corporation · NYSE:BTU
Peabody Energy — Merger or Acquisition (November 2024)
19 slides from Peabody Energy's merger presentation, Nov 25, 2024
Slide 1: Peabody to Acquire Tier 1 Australian Metallurgical Coal Assets from Anglo American
Peabody to Acquire Tier 1 Australian Metallurgical Coal Assets from Anglo American November 25, 2024 Exhibit 99.2
Slide 2: Disclosure Regarding Forward-Looking Statements
Disclosure Regarding Forward-Looking Statements 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 varia
Slide 3: Transaction Summary
Transaction Summary Peabody Premium hard coking coal acquisition from Anglo American + Four mines; 11.3 million tons of expected met coal production in 2026 + Avast majority of the output is Premium Hard Coking Coal $2.32 billion + $1.695 billion at closing and $625 million in time-deferred cash h i
Slide 4: Delivering Strategic and Financial Benefits
Delivering Strategic and Financial Benefits Potential favorable re-rating of the company's valuation Transforms Peabody into a leading metallurgical coal producer Implied 3.1x EBITDA acquisition price positions acquisition for substantial value creation Attractive Valuation & Cash Flow Accretive Adv
Slide 5: Snapshot of Acquired Assets
Snapshot of Acquired Assets Asset Moranbah North Grosvenor Aquila Capcoal2 Ownership/ Partners 88% Peabody 6.25% NSSMC 4.75% Mitsui 0.5% JFE 0.5% Kobe Steel 88% Peabody 6.25% NSSMC 4.75% Mitsui 0.5% JFE 0.5% Kobe Steel 70% Peabody 30% Mitsui 70% Peabody 30% Mitsui Product type PHCC PHCC PHCC PHCC, P
Slide 6: Increases Exposure to Key High-Growth Markets
Increases Exposure to Key High-Growth Markets Expanded Australian met coal portfolio positions Peabody to meet increasing demand in Asian markets Asia represents entire growth in global steel demand over past decade Also comprises vast majority of projected growth in metallurgical coal demand by 205
Slide 7: 2026 Projected Production Positions Peabody as Leading Seaborne Met Coal Producer
Note: Peabody and Peabody Pro Forma estimates based on internal estimates. Peer production estimates per Wood Mackenzie Q3 2024 data 2026 Projected Production Positions Peabody as Leading Seaborne Met Coal Producer
Slide 8: Acquired Assets Transform Seaborne Metallurgical Segment
Acquired Assets Transform Seaborne Metallurgical Segment Metallurgical Coal Sales Metallurgical Sales By Grade (Short tons in Millions)
Slide 9: Reweights Peabody from Thermal to Metallurgical Coal-Focused
Reweights Peabody from Thermal to Metallurgical Coal-Focused Peabody Standalone1 Peabody Pro Forma ROM Resources Marketable Reserves ~2.7x ~2.9x Transformative Reweighting from Thermal to Metallurgical Coal Substantial Increase in Met Coal Segment Reserves And Resources2 2026E EBITDA by Coal Type Se
Slide 10: Strategic Capital Allocation Positioned Peabody for Acquisition
Strategic Capital Allocation Positioned Peabody for Acquisition Developed a resilient balance sheet by eliminating secured debt, fully funding final reclamation, and building adequate liquidity Restarted shareholder returns with an emphasis on share buybacks (16% reduction in shares outstanding) Bal
Slide 11: Targeting Optimal Blend of Acquisition Financing
Targeting Optimal Blend of Acquisition Financing Bridge Financing $2.075 billion bridge facility commitment from Jefferies, KKR and others Upfront cash consideration Reclamation funding Stamp duty and transaction costs Bridge facility to be replaced with permanent financing at target leverage ceilin
Slide 12: Peabody Entering Next Phase of Transformation
Peabody Entering Next Phase of Transformation Sustainable seaborne portfolio for superior value creation Peabody is a leading global coal producer, providing essential ingredients that enable modern day life Building Financial Resiliency 2022 Advancing Centurion 2024 Acquiring Anglo American’s Premi
Slide 13: Brighter Futures
BRIGHTER FUTURES 13
Slide 14: Appendix
Appendix Peabody BUILDING BRIGHTER FUTURES 14
Slide 15: Overview of Assets
Overview of Assets Moranbah North Mine is a well-equipped, high-capacity underground longwall operation located approximately 200 km southwest of Mackay in Queensland. The mine produces premium low-volatile hard coking coal and is expected to produce an average of 6.2 million tons per year of saleab
Slide 16: Price Contingent Consideration
Development project Price Contingent Consideration Anglo American is entitled to 35% of revenue above benchmark trigger prices during the first five-years following completion, up to an aggregate amount of $550 million Assets Total Cap Revenue Share Index Price Product Type Benchmark Trigger Price –
Slide 17: With this transaction, Peabody is continuing to execute its stated goal to re-balance its
With this transaction, Peabody is continuing to execute its stated goal to re-balance its portfolio assets away from thermal coal toward metallurgical coal. In light of the significant shift in the composition of the company’s assets through this transaction, Peabody intends to reassess each asset i
Slide 18: While Peabody has not yet established specific targets related to the reduction of its
While Peabody has not yet established specific targets related to the reduction of its Scope 3 emissions, the Peabody Board has communicated its aspirations to reach net-zero emissions by 2050, noting that achieving such a commitment requires continued technological innovation. To help drive this in
Slide 19: Note on Non-GAAP Financial Measures
Note on Non-GAAP Financial Measures EBITDA refers to Adjusted EBITDA which is a non-GAAP financial measure defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBI
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