Peabody Reports Earnings For Quarter Ended June 30, 2018
ST. LOUIS, July 24, 2018 /PRNewswire/ -- Peabody (NYSE: BTU) today announced its second quarter 2018 operating results, including revenues of $1.31 billion, income from continuing operations, net of income taxes of $120.0 million, net income attributable to common stockholders of $113.7 million, diluted earnings per share from continuing operations of $0.93 and Adjusted EBITDA(1) of $369.6 million.
"Peabody's diversified portfolio continues to generate substantial returns, led by 39 percent margins from the company's Australian platform, as we capitalize on continued strength in seaborne metallurgical and thermal coal fundamentals," said Peabody President and Chief Executive Officer Glenn Kellow. "During the quarter, Peabody also freed up all remaining cash collateral, reduced debt and returned $213 million in cash through buybacks and dividends. Peabody continues to generate cash, maintain financial strength and return cash to shareholders as part of a financial approach that is as consistent as it is powerful."
Second Quarter 2018 Results
Revenues for the second quarter increased 4 percent over the prior year to $1.31 billion driven by a 20 percent increase in Australian met and thermal sales volumes, offsetting the impact of lower U.S. volumes and $48.1 million on unrealized long-dated Newcastle hedge losses as the forward price of seaborne thermal coal sharply increased as of the end of the quarter. Prior-year Australian metallurgical volumes had been impacted by temporarily reduced shipments in Queensland from Cyclone Debbie.
Depreciation, depletion and amortization rose $15.6 million over the prior year primarily due to higher depletion associated with higher Australian and Western volumes. Income from continuing operations, net of income taxes totaled $120.0 million, an 18 percent increase over the prior year driven by higher revenues. Net income attributable to common stockholders increased $133.9 million to $113.7 million as the prior year was impacted by $115.1 million of non-cash preferred stock dividends. Diluted earnings per share from continuing operations improved $1.11 per share to $0.93 per share primarily due to higher revenue and the prior year impact of non-cash dividends on preferred stock that subsequently converted to common stock.
Second quarter Adjusted EBITDA totaled $369.6 million, a $51.8 million increase over the prior year, driven by higher metallurgical sales volumes and continued strength in seaborne pricing.
Peabody's Australian platform continued to produce substantial results, with total Adjusted EBITDA of $266.1 million contributed in the quarter. Australian Adjusted EBITDA increased $88.3 million over the prior year as a result of 45 percent higher metallurgical volumes and further strengthening in seaborne thermal and low-vol PCI pricing. Australian sales volumes totaled 7.9 million tons, including 2.9 million tons of metallurgical coal sold at an average price of $143.98 per ton and 2.9 million tons of export thermal coal sold at an average price of $78.68 per ton, with the remainder delivered under a long-term domestic contract.
Second quarter Australian thermal realized pricing increased 4 percent to $53.68 per ton, with export realized pricing rising 12 percent, on higher sales and continued high seaborne pricing benefiting spot sales. Australian thermal led the company in Adjusted EBITDA margins of 40 percent as higher volumes and elevated pricing mitigated the effects of higher costs associated with temporarily increased overburden ratios at the Wilpinjong Mine.
The Australian metallurgical coal segment continued to lead the company in revenues of $417.5 million, an increase of 45 percent compared to the prior year, largely due to sustained demand for quality metallurgical coal and healthy seaborne pricing levels. Costs per ton declined $19.70 per ton to $89.37 per ton as operational performance improved following an extended longwall move due to gas drainage at the Metropolitan mine in the second quarter of 2017. As expected, second quarter costs improved relative to the first quarter of 2018 and are expected to be within the company's annual guidance range for the year. The Australian metallurgical segment once again led the company in Adjusted EBITDA contributions of $158.5 million, as Adjusted EBITDA margins increased to 38 percent.
Americas Adjusted EBITDA totaled $137.9 million compared to $176.2 million in the prior year. Revenue per ton increased modestly compared to the prior year as favorable mix offset the impact of 5 percent lower volumes. U.S. costs per ton increased 8 percent to $15.12 per ton primarily due to wet weather in the PRB and Midwest, with the North Antelope Rochelle mine recording record rainfall, as well as higher fuel costs across the platform.
Peabody generated second quarter operating cash flow of $335.7 million, while Free Cash Flow totaled $324.1 million, including the release of $109.1 million of all remaining cash collateral requirements. In addition, Peabody received $34.9 million in Middlemount cash contributions and $29.6 million in proceeds from a land sale completed in the first quarter. The company invested $71.9 million in capital expenditures during the quarter.
In conjunction with the term loan amendment in April to reduce pricing and modify terms to provide additional financial and operational flexibility, the company repaid $46.0 million of its term loan balance, bringing total gross debt to $1.40 billion as of June 30, 2018, at the high-end of its targeted long-term debt range.
As part of the company's ongoing shareholder return initiatives, Peabody repurchased nearly $200 million of common stock in the quarter, and an additional $25 million since June 30, 2018, bringing total share repurchases to $575 million under its $1.0 billion repurchase program begun in August 2017. The company has repurchased a total of 15.6 million shares under the program to date, including 5.4 million since March 31, representing 11 percent of shares initially outstanding on a fully converted basis.
In addition, the company paid a quarterly common stock cash dividend of $0.115 per share, totaling approximately $14 million in the second quarter. In recognition of the scale of the share repurchase program, Peabody's board of directors recently declared a quarterly dividend of $0.125 per share to be payable on Aug. 23, 2018 for owners of record as of Aug. 2, 2018.
Quarter-end liquidity totaled $1.78 billion, including $1.45 billion in cash and cash equivalents, $220 million of available revolver capacity and $104 million of accounts receivable securitization capacity.
In addition, during the quarter Peabody entered into an agreement to sell the Millennium Mine's interest in certain resources for total cash consideration of approximately $22 million. Peabody expects to collect approximately $4 million in July upon completion of the sale, with the remaining $18 million to be received over the subsequent 12 months. Given the location of the tenements, costs to develop and pending closure of Millennium, selling these resources represents the preferred economic outcome. In conjunction with the closing of the transaction in the third quarter of 2018, Peabody expects to record a gain on the sale of approximately $22 million.
___________________________
Note: All comparisons are to the Successor period April 2, 2017 through
June 30, 2017, unless otherwise noted.
(1) Adjusted EBITDA, revenues per ton, costs per ton, Adjusted EBITDA
margin per ton and percent and Free Cash Flow are non-GAAP financial
measures. Please refer to the tables and related notes in this press
release for a reconciliation of non-GAAP financial measures.
Industry Conditions
Vigorous seaborne thermal demand led to further strengthening in seaborne thermal coal pricing during the quarter, with Newcastle spot pricing reaching highs of approximately $116 per tonne in the second quarter.
Chinese thermal coal imports rose approximately 20 percent, or 19 million tonnes, through June compared to the prior year on sturdy industrial activity and an approximately 8 percent increase in thermal power generation driven by favorable weather conditions. In addition, domestic coal production has been unable to keep pace with the increased power generation and industrial demands, along with customer restocking.
India's domestic coal production has also been unable to keep pace with growing electricity demand, resulting in an approximately 13 percent increase, or 9 million tonnes, in thermal coal imports through June compared to the prior year. Coal inventories at India's power plants remain below targeted levels, further supporting the need for additional thermal coal imports.
In addition, ASEAN imports increased compared to the prior year on continued urbanization and general economic growth. Peabody expects this trend to continue as 56 gigawatts of new coal plants in 24 countries worldwide are expected to come online in 2018. The majority of new plants are located in the Asia-Pacific region, with additional plants announced in a number of other countries anticipated to come online in future years.
Through May, Australian exports have remained essentially flat, with Indonesia and U.S. thermal coal exports through May increasing approximately 18 million tonnes and 8 million tonnes, respectively, supporting ongoing strength in seaborne pricing. Annual contracts under Japanese Reference Pricing terms were recently reported as settled in July at $110 per tonne.
Turning to metallurgical coal, reference prices eased from the first quarter of 2018 but remain above historical averages, reaching a high of $201 per tonne last quarter.
Global steel production remains strong, rising 4 percent year-to-date through May, with May output increasing over 6 percent to an all-time high.
Despite continued strength in Chinese steel production, metallurgical coal imports declined approximately 7 million tonnes year-to-date through June compared to the prior year primarily due to increased reliance on domestic supplies.
As expected, India continues to lead the growth in metallurgical coal demand, with imports increasing approximately 16 percent through June compared to the prior year driven by an approximately 5 percent increase in steel production.
Australian exports rebounded from the prior year effects of Cyclone Debbie, increasing approximately 7 million tonnes through May compared to the prior year. While the Aurizon rail and labor issues in Queensland continue to garner significant media attention, Peabody has yet to be impacted by delays in rail services and continues to closely monitor the situation.
Compared to the prior year, second quarter 2018 seaborne hard coking coal spot pricing remained steady at an average price of approximately $190 per tonne. The index-based settlement price for premium hard coking coal was approximately $197 per tonne compared to approximately $194 per tonne in the prior year. The second quarter benchmark low-vol PCI price was negotiated at $155 per tonne, with the third quarter benchmark settled at $150 per tonne.
In the U.S., industry conditions remain challenged as utility coal consumption declined 5 percent from the prior year, despite a 4.5 percent increase in total load. Natural gas and wind generation continued to rise, along with an increase in nuclear generation driven by the timing of refueling across nuclear plants. In addition, retirements continue to weigh on coal demand and account for an estimated 3 percent of the decline in year-to-date coal demand. Powder River Basin demand decreased 5 percent due to ongoing pressure from retirements and regional natural gas prices that continue to trade at a discount to quoted Henry Hub prices.
While domestic demand has weakened, U.S. exports have continued to benefit from strong seaborne pricing, with thermal exports through May up 48 percent compared to the prior year. As a result of hearty U.S. exports and declining U.S. coal production, stockpiles have decreased from the prior year by an estimated 34 million tons as of the end of June to approximately 46 days of maximum burn.
Third Quarter 2018 Expectations
Relative to the second quarter, Peabody expects the longwall move at North Goonyella to impact third quarter metallurgical segment Adjusted EBITDA margins by about $15 per ton related to costs and sales mix. These impacts are anticipated to be partly offset by increased export thermal coal sales, higher U.S. volumes and positive Resource Management results related to the sale of exploration tenements in Australia.
-- Australian export thermal volumes are expected to continue to increase
sequentially, with the fourth quarter anticipated to be the segment's
strongest shipping quarter.
-- The North Goonyella longwall has commenced and is expected to be
completed in the third quarter.
-- PRB volumes are expected to improve on exit from the rain-affected
second quarter shoulder season.
In recognition of the company's focus on value over volume, Peabody has tightened its annual PRB volume guidance range to 115 to 120 million tons.
In addition, Peabody continues to focus on its stated financial approach, including investing wisely and returning cash to shareholders.
Today's earnings call is scheduled for 10 a.m. CDT, and will be accompanied by a presentation available at PeabodyEnergy.com.
Peabody (NYSE: BTU) is the leading global pure-play coal company and a member of the Fortune 500, serving power and steel customers in more than 25 countries on six continents. Peabody offers significant scale, high-quality assets, and diversity in geography and products. Peabody is guided by seven core values: safety, sustainability, leadership, customer focus, integrity, excellence and people. For further information, visit PeabodyEnergy.com.
Contact:
Investors
Julie Gates
314.342.4336
Media
Michelle Constantine
314.342.4347
Condensed Consolidated Statements of Operations (Unaudited)
For the Quarters Ended Jun. 30, 2018 and 2017
(In Millions, Except
Per Share Data)
Successor Predecessor
-----------
Quarter Ended Apr. 2 through Apr. 1, 2017
Jun. 30, 2018 Jun. 30, 2017
------------- -------------
Tons Sold 43.1 43.6 -
==== ==== ===
Revenues $1,309.4 $1,258.3 $ -
Operating Costs and
Expenses (1) 946.5 927.9 -
Depreciation,
Depletion and
Amortization 163.9 148.3 -
Asset Retirement
Obligation Expenses 13.2 11.0 -
Selling and
Administrative
Expenses 44.1 34.7 -
Other Operating
(Income) Loss:
Net Loss (Gain) on
Disposals 1.6 (0.5) -
Income from Equity
Affiliates (25.2) (15.7) -
----- ----- ---
Operating Profit 165.3 152.6 -
Interest Expense 38.3 41.4 -
Loss on Early Debt
Extinguishment 2.0 - -
Interest Income (7.0) (1.5) -
Net Periodic Benefit
Costs, Excluding
Service Cost 4.6 6.6 -
Reorganization Items,
Net - - 585.8
--- --- -----
Income (Loss) from
Continuing Operations
Before Income Taxes 127.4 106.1 (585.8)
Income Tax Provision
(Benefit) 7.4 4.7 (266.0)
--- --- ------
Income (Loss) from
Continuing
Operations, Net of
Income Taxes 120.0 101.4 (319.8)
Loss from Discontinued
Operations, Net of
Income Taxes (3.6) (2.7) (12.1)
---- ---- -----
Net Income (Loss) 116.4 98.7 (331.9)
Less: Series A
Convertible Preferred
Stock Dividends - 115.1 -
Less: Net Income
Attributable to
Noncontrolling
Interests 2.7 3.8 -
Net Income (Loss)
Attributable to
Common Stockholders $113.7 $(20.2) $(331.9)
====== ====== =======
Adjusted EBITDA (2) $369.6 $317.8 $ -
====== ====== === ===
Diluted EPS -Income
(Loss) from
Continuing Operations
(3)(4) $0.93 $(0.18) $(17.44)
===== ====== =======
Diluted EPS -Net
Income (Loss)
Attributable to
Common Stockholders
(3) $0.90 $(0.21) $(18.10)
===== ====== =======
(1) Excludes items shown
separately.
(2) Adjusted EBITDA is a
non-GAAP financial
measure. Refer to the
"Reconciliation of
Non-GAAP Financial
Measures" section in
this document for
definitions and
reconciliations to
the most comparable
measures under U.S.
GAAP.
(3) Diluted EPS is
calculated under the
two-class method
which treats
participating
securities as having
rights to earnings
that otherwise would
have been available
to common
stockholders and
assumes that
participating
securities are not
exercised or
converted. As such,
weighted average
diluted shares
outstanding were
126.0 million and
96.8 million for the
quarter ended June
30, 2018 and the
period April 2
through June 30,
2017, respectively,
and excluded weighted
average shares
outstanding related
to the participating
securities of 39.2
million for the
period April 2
through June 30,
2017. Weighted
average diluted
shares outstanding
were 18.3 million for
the period April 1,
2017.
(4) Reflects income (loss)
from continuing
operations, net of
income taxes less
preferred stock
dividends and net
income attributable
to noncontrolling
interests.
This information is intended to be reviewed in conjunction with the
company's filings with the SEC.
Condensed Consolidated Statements of Operations (Unaudited)
For the Six Months Ended Jun. 30, 2018 and 2017
(In Millions, Except Per Share Data)
Successor Predecessor
Six Months Ended Apr. 2 through Jan. 1 through
Jun. 30, 2018 Jun. 30, 2017 Apr. 1, 2017
------------- ------------- ------------
Tons Sold 91.4 43.6 46.1
==== ==== ====
Revenues $2,772.1 $1,258.3 $1,326.2
Operating Costs and
Expenses (1) 2,003.7 927.9 950.2
Depreciation,
Depletion and
Amortization 333.5 148.3 119.9
Asset Retirement
Obligation Expenses 25.5 11.0 14.6
Selling and
Administrative
Expenses 81.1 34.7 36.3
Other Operating (Income) Loss:
Net Gain on Disposals (29.0) (0.5) (22.8)
Asset Impairment - - 30.5
Income from Equity
Affiliates (47.2) (15.7) (15.0)
----- ----- -----
Operating Profit 404.5 152.6 212.5
Interest Expense 74.6 41.4 32.9
Loss on Early Debt
Extinguishment 2.0 - -
Interest Income (14.2) (1.5) (2.7)
Net Periodic Benefit
Costs, Excluding
Service Cost 9.1 6.6 14.4
Reorganization Items,
Net (12.8) - 627.2
----- --- -----
Income (Loss) from
Continuing Operations
Before Income Taxes 345.8 106.1 (459.3)
Income Tax Provision
(Benefit) 17.5 4.7 (263.8)
---- --- ------
Income (Loss) from
Continuing
Operations, Net of
Income Taxes 328.3 101.4 (195.5)
Loss from Discontinued
Operations, Net of
Income Taxes (4.9) (2.7) (16.2)
---- ---- -----
Net Income (Loss) 323.4 98.7 (211.7)
Less: Series A
Convertible Preferred
Stock Dividends 102.5 115.1 -
Less: Net Income
Attributable to
Noncontrolling
Interests 0.6 3.8 4.8
--- --- ---
Net Income (Loss)
Attributable to
Common Stockholders $220.3 $(20.2) $(216.5)
====== ====== =======
Adjusted EBITDA (2) $733.5 $317.8 $341.3
====== ====== ======
Diluted EPS -Income
(Loss) from
Continuing Operations
(3)(4) $1.76 $(0.18) $(10.93)
===== ====== =======
Diluted EPS -Net
Income (Loss)
Attributable to
Common Stockholders
(3) $1.72 $(0.21) $(11.81)
===== ====== =======
(1) Excludes items
shown separately.
(2) Adjusted EBITDA is a
non-GAAP financial
measure. Refer to the
"Reconciliation of
Non-GAAP Financial
Measures" section in
this document for
definitions and
reconciliations to
the most comparable
measures under U.S.
GAAP.
(3) Diluted EPS is
calculated under the
two-class method
which treats
participating
securities as having
rights to earnings
that otherwise would
have been available
to common
stockholders and
assumes that
participating
securities are not
exercised or
converted. As such,
weighted average
diluted shares
outstanding were
124.6 million and
96.8 million for the
six months ended June
30, 2018 and the
period April 2
through June 30,
2017, respectively,
and excluded weighted
average shares
outstanding related
to the participating
securities of 4.2
million and 39.2
million,
respectively.
Weighted average
diluted shares
outstanding were 18.3
million for the
period January 1
through April 1,
2017.
(4) Reflects income (loss)
from continuing
operations, net of
income taxes less
preferred stock
dividends and net
income attributable
to noncontrolling
interests.
This information is intended to be reviewed in conjunction with the
company's filings with the SEC.
Supplemental Financial Data (Unaudited)
For the Quarters and Six Months Ended Jun. 30, 2018 and 2017
Successor Successor Predecessor Combined
----------- --------
Quarter Apr. 2 Six Apr. 2 Jan. 1 Six
Ended through Months through through Months
Jun. 30, Jun. 30, Ended Jun. 30, Apr. 1, Ended
2018 2017 Jun. 30, 2017 2017 Jun. 30,
2018 2017
---- ----
Tons Sold (In
Millions)
-------------
Powder River Basin
Mining Operations 26.2 28.5 58.6 28.5 31.0 59.5
Midwestern U.S.
Mining Operations 4.7 4.6 9.4 4.6 4.5 9.1
Western U.S. Mining
Operations 3.5 3.2 7.2 3.2 3.4 6.6
--- --- --- --- --- ---
Total U.S. Mining
Operations 34.4 36.3 75.2 36.3 38.9 75.2
Australian
Metallurgical
Mining Operations 2.9 2.0 5.9 2.0 2.2 4.2
Australian Thermal
Mining Operations 5.0 4.6 8.8 4.6 4.6 9.2
--- --- --- --- --- ---
Total Australian
Mining Operations 7.9 6.6 14.7 6.6 6.8 13.4
Trading and
Brokerage
Operations 0.8 0.7 1.5 0.7 0.4 1.1
Total 43.1 43.6 91.4 43.6 46.1 89.7
==== ==== ==== ==== ==== ====
Revenue Summary (In
Millions)
-------------------
Powder River Basin
Mining Operations $321.5 $365.4 $710.8 $365.4 $394.3 $759.7
Midwestern U.S.
Mining Operations 197.5 194.9 399.2 194.9 193.2 388.1
Western U.S. Mining
Operations 139.6 125.4 283.3 125.4 149.7 275.1
----- ----- ----- ----- ----- -----
Total U.S. Mining
Operations 658.6 685.7 1,393.3 685.7 737.2 1,422.9
Australian
Metallurgical
Mining Operations 417.5 287.8 883.7 287.8 328.9 616.7
Australian Thermal
Mining Operations 267.4 239.2 468.8 239.2 224.8 464.0
----- ----- ----- ----- ----- -----
Total Australian
Mining Operations 684.9 527.0 1,352.5 527.0 553.7 1,080.7
Trading and
Brokerage
Operations 10.0 5.2 30.1 5.2 15.0 20.2
Corporate and Other (44.1) 40.4 (3.8) 40.4 20.3 60.7
----- ---- ---- ---- ---- ----
Total $1,309.4 $1,258.3 $2,772.1 $1,258.3 $1,326.2 $2,584.5
======== ======== ======== ======== ======== ========
Total Reporting
Segment Costs
Summary (In
Millions) (1)
---------------
Powder River Basin
Mining Operations $259.5 $280.6 $574.3 $280.6 $302.6 $583.2
Midwestern U.S.
Mining Operations 155.5 148.4 326.0 148.4 143.2 291.6
Western U.S. Mining
Operations 105.7 80.5 217.4 80.5 99.7 180.2
----- ---- ----- ---- ---- -----
Total U.S. Mining
Operations 520.7 509.5 1,117.7 509.5 545.5 1,055.0
Australian
Metallurgical
Mining Operations 259.0 215.9 558.8 215.9 219.3 435.2
Australian Thermal
Mining Operations 159.8 133.3 299.6 133.3 149.2 282.5
----- ----- ----- ----- ----- -----
Total Australian
Mining Operations 418.8 349.2 858.4 349.2 368.5 717.7
Trading and
Brokerage
Operations 6.9 10.3 25.8 10.3 6.2 16.5
Corporate and Other 12.6 39.3 25.3 39.3 44.4 83.7
----
Total $959.0 $908.3 $2,027.2 $908.3 $964.6 $1,872.9
====== ====== ======== ====== ====== ========
Other Supplemental
Financial Data (In
Millions)
-------------------
Adjusted EBITDA -
Powder River Basin
Mining Operations $62.0 $84.8 $136.5 $84.8 $91.7 $176.5
Adjusted EBITDA -
Midwestern U.S.
Mining Operations 42.0 46.5 73.2 46.5 50.0 96.5
Adjusted EBITDA -
Western U.S. Mining
Operations 33.9 44.9 65.9 44.9 50.0 94.9
---- ---- ---- ---- ---- ----
Total U.S. Mining
Operations 137.9 176.2 275.6 176.2 191.7 367.9
Adjusted EBITDA -
Australian
Metallurgical
Mining Operations 158.5 71.9 324.9 71.9 109.6 181.5
Adjusted EBITDA -
Australian Thermal
Mining Operations 107.6 105.9 169.2 105.9 75.6 181.5
----- ----- ----- ----- ---- -----
Total Australian
Mining Operations 266.1 177.8 494.1 177.8 185.2 363.0
Adjusted EBITDA -
Trading and
Brokerage 3.1 (5.1) 4.3 (5.1) 8.8 3.7
Resource Management
Results (2) 0.7 1.2 21.5 1.2 2.9 4.1
Selling and
Administrative
Expenses (44.1) (34.7) (81.1) (34.7) (36.3) (71.0)
Other Operating
Costs, Net (3) 8.2 2.8 23.8 2.8 16.6 19.4
Corporate Hedging
Results (2.3) (0.4) (4.7) (0.4) (27.6) (28.0)
---- ---- ---- ---- ----- -----
Adjusted EBITDA (1) $369.6 $317.8 $733.5 $317.8 $341.3 $659.1
====== ====== ====== ====== ====== ======
Note: See footnote explanations
on following page
Supplemental Financial Data (Unaudited)
For the Quarters and Six Months Ended Jun. 30, 2018 and 2017
Successor Successor Predecessor Combined
----------- --------
Quarter Apr. 2 Six Apr. 2 Jan. 1 Six
Ended through Months through through Months
Jun. 30, Jun. 30, Ended Jun. 30, Apr. 1, Ended
2018 2017 Jun. 30, 2017 2017 Jun. 30,
2018 2017
---- ----
Revenues per Ton
-Mining
Operations (4)
----------------
Powder River
Basin $12.24 $12.84 $12.12 $12.84 $12.70 $12.77
Midwestern U.S. 42.12 42.62 42.39 42.62 42.96 42.79
Western U.S. 39.87 38.91 39.40 38.91 44.68 41.85
Total U.S. 19.12 18.91 18.52 18.91 18.96 18.93
Australian
Metallurgical 143.98 145.31 148.58 145.31 150.22 147.95
Australian
Thermal 53.68 51.52 53.57 51.52 48.65 50.09
Total Australian 86.90 79.54 92.01 79.54 81.36 80.46
Costs per Ton -
Mining
Operations
(4)(5)
---------------
Powder River
Basin $9.88 $9.86 $9.79 $9.86 $9.75 $9.80
Midwestern U.S. 33.16 32.45 34.61 32.45 31.84 32.15
Western U.S. 30.21 24.98 30.24 24.98 29.76 27.41
Total U.S. 15.12 14.05 14.86 14.05 14.03 14.03
Australian
Metallurgical 89.37 109.07 93.96 109.07 100.16 104.39
Australian
Thermal 32.05 28.67 34.23 28.67 32.27 30.49
Total Australian 53.14 52.69 58.40 52.69 54.15 53.43
Adjusted EBITDA
Margin per Ton -
Mining
Operations
(4)(5)
-----------------
Powder River
Basin $2.36 $2.98 $2.33 $2.98 $2.95 $2.97
Midwestern U.S. 8.96 10.17 7.78 10.17 11.12 10.64
Western U.S. 9.66 13.93 9.16 13.93 14.92 14.44
Total U.S. 4.00 4.86 3.66 4.86 4.93 4.90
Australian
Metallurgical 54.61 36.24 54.62 36.24 50.06 43.56
Australian
Thermal 21.63 22.85 19.34 22.85 16.38 19.60
Total Australian 33.76 26.85 33.61 26.85 27.21 27.03
(1) Total Reporting Segment Costs and
Adjusted EBITDA are non-GAAP
financial measures. Refer to the
"Reconciliation of Non-GAAP
Financial Measures" section in this
document for definitions and
reconciliations to the most
comparable measures under U.S. GAAP.
(2) Includes gains (losses) on certain
surplus coal reserve and surface land
sales, property management costs and
revenues and the Q1 2018 gain of
$20.6 million on the sale of certain
surplus land assets in Queensland's
Bowen Basin.
(3) Includes income from equity affiliates
(before the impact of related changes
in deferred tax asset valuation
allowance and amortization of basis
difference), costs associated with
post-mining activities, coal royalty
expense, minimum charges on certain
transportation-related contracts,
the Q1 2018 gain of $7.1 million
recognized on the sale of our
interest in the Red Mountain Joint
Venture and the Q1 2017 gain of $19.7
million recognized on the sale of
Dominion Terminal Associates.
(4) Revenues per Ton, Costs per Ton and
Adjusted EBITDA Margin per Ton are
metrics used by management to measure
each of our mining segment's
operating performance. Revenues per
Ton and Adjusted EBITDA Margin per
Ton are equal to revenues by segment
and Adjusted EBITDA by segment,
respectively, divided by segment tons
sold. Costs per Ton is equal to
Revenues per Ton less Adjusted EBITDA
Margin per Ton. Management believes
Costs per Ton and Adjusted EBITDA
Margin per Ton best reflect
controllable costs and operating
results at the mining segment level.
We consider all measures reported on
a per ton basis to be operating/
statistical measures; however, we
include reconciliations of the
related non-GAAP financial measures
(Adjusted EBITDA and Total Reporting
Segment Costs) in the "Reconciliation
of Non-GAAP Financial Measures"
section in this document.
(5) Includes revenue-based production
taxes and royalties; excludes
depreciation, depletion and
amortization; asset retirement
obligation expenses; selling and
administrative expenses;
restructuring charges; asset
impairment; coal inventory
revaluation; take-or-pay contract-
based intangible recognition; and
certain other costs related to post-
mining activities.
This information is intended to be reviewed in conjunction with the company's
filings with the SEC.
Condensed Consolidated Balance Sheets
As of Jun. 30, 2018 and Dec. 31, 2017
(Dollars In Millions)
(Unaudited)
Jun. 30, 2018 Dec. 31, 2017
------------- -------------
Cash and Cash Equivalents $1,451.7 $1,012.1
Restricted Cash - 40.1
Accounts Receivable, Net 503.0 552.1
Inventories 290.5 291.3
Other Current Assets 238.7 294.4
----- -----
Total Current Assets 2,483.9 2,190.0
Property, Plant, Equipment and Mine Development, Net 4,945.7 5,111.9
Collateral Arrangements - 323.1
Investments and Other Assets 296.1 470.6
Deferred Income Taxes 85.5 85.6
---- ----
Total Assets $7,811.2 $8,181.2
======== ========
Current Portion of Long-Term Debt $45.0 $42.1
Accounts Payable and Accrued Expenses 1,054.4 1,202.8
------- -------
Total Current Liabilities 1,099.4 1,244.9
Long-Term Debt, Less Current Portion 1,358.0 1,418.7
Deferred Income Taxes 5.1 5.4
Asset Retirement Obligations 672.6 657.0
Accrued Postretirement Benefit Costs 726.8 730.0
Other Noncurrent Liabilities 404.0 469.4
----- -----
Total Liabilities 4,265.9 4,525.4
Series A Convertible Preferred Stock - 576.0
Common Stock 1.4 1.0
Additional Paid-in Capital 3,285.7 2,590.3
Treasury Stock (564.9) (175.9)
Retained Earnings 781.3 613.6
Accumulated Other Comprehensive (Loss) Income (1.6) 1.4
---- ---
Peabody Energy Corporation Stockholders' Equity 3,501.9 3,606.4
Noncontrolling Interests 43.4 49.4
---- ----
Total Stockholders' Equity 3,545.3 3,655.8
------- -------
Total Liabilities and Stockholders' Equity $7,811.2 $8,181.2
======== ========
This information is intended to be reviewed in conjunction with the company's filings with the SEC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Quarters Ended Jun. 30, 2018 and 2017
(Dollars In Millions)
Successor Predecessor Combined
----------- --------
Quarter Apr. 2 Apr. 1, 2017 Quarter
Ended through Ended
Jun. 30, 2018 Jun. 30, 2017 Jun. 30 2017
-------------
Cash Flows From
Operating Activities
Net Cash Provided By
(Used In) Continuing
Operations $338.5 $66.3 $(1,069.1) $(1,002.8)
Net Cash Used In
Discontinued
Operations (2.8) (0.6) - (0.6)
---- ----
Net Cash Provided By
(Used In) Operating
Activities 335.7 65.7 (1,069.1) (1,003.4)
----- ---- -------- --------
Cash Flows From
Investing Activities
Additions to
Property, Plant,
Equipment and Mine
Development (71.9) (45.9) - (45.9)
Changes in Accrued
Expenses Related to
Capital Expenditures 4.0 1.6 - 1.6
Proceeds from
Disposal of Assets 29.6 2.5 - 2.5
Contributions to
Joint Ventures (120.3) (96.3) - (96.3)
Distributions from
Joint Ventures 116.1 95.5 - 95.5
Advances to Related
Parties (2.6) (0.9) - (0.9)
Repayments of Loans
from Related Parties 34.9 26.5 - 26.5
Other, Net (1.4) (1.5) - (1.5)
---- ---- --- ----
Net Cash Used In
Investing Activities (11.6) (18.5) - (18.5)
----- ----- --- -----
Cash Flows From
Financing Activities
Repayments of Long-
Term Debt (55.3) (23.8) - (23.8)
Payment of Deferred
Financing Costs (1.4) - - -
Common Stock
Repurchases (199.0) - - -
Repurchases of
Employee Common
Stock Relinquished
for Tax Withholding (14.5) - - -
Dividends Paid (14.3) - - -
Distributions to
Noncontrolling
Interests - (6.4) - (6.4)
Other, Net (0.1) - - -
Net Cash Used In
Financing Activities (284.6) (30.2) - (30.2)
------ ----- --- -----
Net Change in Cash,
Cash Equivalents and
Restricted Cash 39.5 17.0 (1,069.1) (1,052.1)
Cash, Cash
Equivalents and
Restricted Cash at
Beginning of Period 1,438.4 1,095.6 2,164.7 2,164.7
------- ------- ------- -------
Cash, Cash
Equivalents and
Restricted Cash at
End of Period $1,477.9 $1,112.6 $1,095.6 $1,112.6
======== ======== ======== ========
This information is intended
to be reviewed in conjunction
with the company's filings
with the SEC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Six Months Ended Jun. 30, 2018 and 2017
(Dollars In Millions)
Successor Predecessor Combined
----------- --------
Six Months Apr. 2 Jan. 1 Six Months
Ended through through Ended
Jun. 30, 2018 Jun. 30, 2017 Apr. 1, 2017 Jun. 30, 2017
-------------
Cash Flows From
Operating Activities
Net Cash Provided By
(Used In) Continuing
Operations $919.2 $66.3 $(804.8) $(738.5)
Net Cash Used In
Discontinued
Operations (3.8) (0.6) (8.2) (8.8)
Net Cash Provided By
(Used In) Operating
Activities 915.4 65.7 (813.0) (747.3)
----- ---- ------ ------
Cash Flows From
Investing Activities
Additions to
Property, Plant,
Equipment and Mine
Development (125.6) (45.9) (32.8) (78.7)
Changes in Accrued
Expenses Related to
Capital Expenditures (0.9) 1.6 (1.4) 0.2
Federal Coal Lease
Expenditures (0.5) - (0.5) (0.5)
Proceeds from
Disposal of Assets 52.6 2.5 24.3 26.8
Contributions to
Joint Ventures (243.8) (96.3) (95.4) (191.7)
Distributions from
Joint Ventures 236.8 95.5 90.5 186.0
Advances to Related
Parties (4.6) (0.9) (0.4) (1.3)
Repayments of Loans
from Related Parties 70.2 26.5 31.1 57.6
Other, Net (2.2) (1.5) (0.3) (1.8)
---- ---- ----
Net Cash (Used In)
Provided By
Investing Activities (18.0) (18.5) 15.1 (3.4)
----- ----- ---- ----
Cash Flows From
Financing Activities
Proceeds from Long-
Term Debt - - 1,000.0 1,000.0
Repayments of Long-
Term Debt (63.5) (23.8) (2.1) (25.9)
Payment of Deferred
Financing Costs (1.4) - (45.4) (45.4)
Common Stock
Repurchases (374.5) - - -
Repurchases of
Employee Common
Stock Relinquished
for Tax Withholding (14.5) - (0.1) (0.1)
Dividends Paid (29.3) - - -
Distributions to
Noncontrolling
Interests (6.6) (6.4) (0.1) (6.5)
Other, Net 0.1 - - -
---
Net Cash (Used In)
Provided By
Financing Activities (489.7) (30.2) 952.3 922.1
------ ----- ----- -----
Net Change in Cash,
Cash Equivalents and
Restricted Cash 407.7 17.0 154.4 171.4
Cash, Cash
Equivalents and
Restricted Cash at
Beginning of Period 1,070.2 1,095.6 941.2 941.2
------- -----
Cash, Cash
Equivalents and
Restricted Cash at
End of Period $1,477.9 $1,112.6 $1,095.6 $1,112.6
======== ======== ======== ========
This information is intended
to be reviewed in conjunction
with the company's filings
with the SEC.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
For the Quarters Ended Jun. 30, 2018 and 2017
(Dollars In Millions)
Note: Management believes that non-GAAP performance measures are used by investors to measure our operating performance and lenders to measure our ability to incur and service debt.
These measures are not intended to serve as alternatives to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.
Successor Predecessor
-----------
Quarter Ended Apr. 2 through
Jun. 30, 2018 Jun. 30, 2017 Apr. 1, 2017
------------- ------------- ------------
Income (Loss) from Continuing
Operations, Net of Income Taxes $120.0 $101.4 $(319.8)
Depreciation, Depletion and
Amortization 163.9 148.3 -
Asset Retirement Obligation Expenses 13.2 11.0 -
Changes in Deferred Tax Asset
Valuation Allowance and Amortization
of Basis Difference Related to
Equity Affiliates (8.4) (4.3) -
Interest Expense 38.3 41.4 -
Loss on Early Debt Extinguishment 2.0 - -
Interest Income (7.0) (1.5) -
Reorganization Items, Net - - 585.8
Break Fees Related to Terminated
Asset Sales - (28.0) -
Unrealized Losses (Gains) on Economic
Hedges 48.1 (9.4) -
Unrealized Gains on Non-Coal Trading
Derivative Contracts (0.1) (3.2) -
Coal Inventory Revaluation - 67.3 -
Take-or-Pay Contract-Based
Intangible Recognition (7.8) (9.9) -
Income Tax Provision (Benefit) 7.4 4.7 (266.0)
---
Adjusted EBITDA (1) $369.6 $317.8 $ -
====== ====== === ===
(1) Adjusted EBITDA is defined as income (loss) from continuing operations
before deducting net interest expense, income taxes, asset retirement
obligation expenses, depreciation, depletion and amortization and
reorganization items, net. Adjusted EBITDA is also adjusted for the
discrete items that management excluded in analyzing each of our
segment's operating performance as displayed in the reconciliation above.
Adjusted EBITDA is used by management as the primary metric to measure
each of our segment's operating performance.
Successor Predecessor
-----------
Quarter Ended Apr. 2 through
Jun. 30, 2018 Jun. 30, 2017 Apr. 1, 2017
------------- ------------- ------------
Operating Costs and Expenses $946.5 $927.9 $ -
Break Fees Related to Terminated
Asset Sales - 28.0 -
Unrealized Gains on Non-Coal
Trading Derivative Contracts 0.1 3.2 -
Coal Inventory Revaluation - (67.3) -
Take-or-Pay Contract-Based
Intangible Recognition 7.8 9.9 -
Net Periodic Benefit Costs,
Excluding Service Cost 4.6 6.6 -
--- --- ---
Total Reporting Segment Costs (2) $959.0 $908.3 $ -
=== ===
(2) Total Reporting Segment Costs is defined as operating costs and expenses
adjusted for the discrete items that management excluded in analyzing
each of our segment's operating performance as displayed in the
reconciliation above. Total Reporting Segment Costs is used by management
as a metric to measure each of our segment's operating performance.
Successor Predecessor
-----------
Quarter Ended Apr. 2 through
Jun. 30, 2018 Jun. 30, 2017 Apr. 1, 2017
------------- ------------- ------------
Net Cash Provided By (Used In)
Operating Activities $335.7 $65.7 $(1,069.1)
Net Cash Used In Investing
Activities (11.6) (18.5) -
----- ----- ---
Free Cash Flow (3) $324.1 $47.2 $(1,069.1)
===
(3) Free Cash Flow is defined as net cash provided by (used in) operating
activities less net cash used in investing activities. Free Cash Flow is
used by management as a measure of our financial performance and our
ability to generate excess cash flow from our business operations.
This information is intended to be reviewed in conjunction with the company's filings with the SEC.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
For the Six Months Ended Jun. 30, 2018 and 2017
(Dollars In Millions)
Note: Management believes that non-GAAP performance measures are used by investors to measure our operating performance and lenders to measure our ability to incur and service debt.
These measures are not intended to serve as alternatives to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.
Successor Predecessor
-----------
Six Months Ended Apr. 2 through Jan. 1 through
Jun. 30, 2018 Jun. 30, 2017 Apr. 1, 2017
------------- ------------- ------------
Income (Loss) from Continuing
Operations, Net of Income Taxes $328.3 $101.4 $(195.5)
Depreciation, Depletion and
Amortization 333.5 148.3 119.9
Asset Retirement Obligation Expenses 25.5 11.0 14.6
Asset Impairment - - 30.5
Changes in Deferred Tax Asset
Valuation Allowance and Amortization
of Basis Difference Related to
Equity Affiliates (16.0) (4.3) (5.2)
Interest Expense 74.6 41.4 32.9
Loss on Early Debt Extinguishment 2.0 - -
Interest Income (14.2) (1.5) (2.7)
Reorganization Items, Net (12.8) - 627.2
Break Fees Related to Terminated
Asset Sales - (28.0) -
Unrealized Losses (Gains) on Economic
Hedges 9.5 (9.4) (16.6)
Unrealized Losses (Gains) on Non-
Coal Trading Derivative Contracts 1.7 (3.2) -
Coal Inventory Revaluation - 67.3 -
Take-or-Pay Contract-Based
Intangible Recognition (16.1) (9.9) -
Income Tax Provision (Benefit) 17.5 4.7 (263.8)
----
Adjusted EBITDA (1) $733.5 $317.8 $341.3
====== ====== ======
(1) Adjusted EBITDA is defined as income (loss) from continuing operations
before deducting net interest expense, income taxes, asset retirement
obligation expenses, depreciation, depletion and amortization and
reorganization items, net. Adjusted EBITDA is also adjusted for the
discrete items that management excluded in analyzing each of our segment's
operating performance as displayed in the reconciliation above. Adjusted
EBITDA is used by management as the primary metric to measure each of our
segment's operating performance.
Successor Predecessor
-----------
Six Months Ended Apr. 2 through Jan. 1 through
Jun. 30, 2018 Jun. 30, 2017 Apr. 1, 2017
------------- ------------- ------------
Operating Costs and Expenses $2,003.7 $927.9 $950.2
Break Fees Related to Terminated
Asset Sales - 28.0 -
Unrealized (Losses) Gains on Non-
Coal Trading Derivative Contracts (1.7) 3.2 -
Coal Inventory Revaluation - (67.3) -
Take-or-Pay Contract-Based
Intangible Recognition 16.1 9.9 -
Net Periodic Benefit Costs,
Excluding Service Cost 9.1 6.6 14.4
--- --- ----
Total Reporting Segment Costs (2) $2,027.2 $908.3 $964.6
===
(2) Total Reporting Segment Costs is defined as operating costs and expenses
adjusted for the discrete items that management excluded in analyzing each
of our segment's operating performance as displayed in the reconciliation
above. Total Reporting Segment Costs is used by management as a metric to
measure each of our segment's operating performance.
Successor Predecessor
-----------
Six Months Ended Apr. 2 through Jan. 1 through
Jun. 30, 2018 Jun. 30, 2017 Apr. 1, 2017
------------- ------------- ------------
Net Cash Provided By (Used In)
Operating Activities $915.4 $65.7 $(813.0)
Net Cash (Used In) Provided By
Investing Activities (18.0) (18.5) 15.1
----- ----- ----
Free Cash Flow (3) $897.4 $47.2 $(797.9)
===
(3) Free Cash Flow is defined as net cash provided by (used in) operating
activities less net cash (used in) provided by investing activities. Free
Cash Flow is used by management as a measure of our financial performance
and our ability to generate excess cash flow from our business operations.
This information is intended to be reviewed in conjunction with the company's filings with the SEC.
2018 Full-Year Guidance Targets
Sales Volumes (Short Tons in millions) Capital Expenditures $275 - $325 million
PRB 115 - 120
ILB 18 - 19 Quarterly SG&A Expense ~$40 million
Western 13 - 14
Total U.S. 146 - 153 Interest Expense $140 - $148 million
Aus. Metallurgical(1) 11 - 12 Cost Sensitivities4
Aus. Export Thermal(2) 11.5 - 12.5 $0.05 Decrease in A$ FX Rate5 + ~$50 million
Aus. Domestic Thermal 7 - 8 $0.05 Increase in A$ FX Rate5 -~$50 million
Total Australia 29.5 - 32.5 Fuel (+/- $10/barrel) +/- ~$15 million
U.S. Operations - Revenue Per Ton 2018 Priced Position (Avg. Price per Short Ton)
Total U.S. $17.50 - $18.50 PRB $11.90
ILB ~$42
U.S. Operations - Costs Per Ton 3Q - 4Q Australia Export Thermal Volumes6 ~$85
PRB $9.25 - $9.75
ILB $31.50 - $33.50
Total U.S. $13.50 - $14.50 Peabody's 2018 U.S. volumes are fully priced
~50% and ~65% of Peabody's 2019 U.S. volumes are
Australia Operations - Costs per Ton (USD)(3) priced and committed, respectively, based on the
Metallurgical $85 - $95 mid-point of 2018 volume guidance
Thermal $32 - $36 ~4.3 million short tons of Australia export
thermal
Total Australia $52 - $58 coal are priced for the second half of 2018
2019 Priced Position (Avg. Price per Short Ton)
Australia Export Thermal ~$75
~2.9 million short tons of Australia export
thermal
coal priced for 2019
1 Metallurgical coal sales volumes
may range from ~55% - 65% PCI and
~35% - 45% coking coal (including
semi-hard and semi-soft coking
coals). Approximately 30% of
seaborne coking sales may be
priced on a spot basis, with the
remainder linked to an index.
Approximately 30% of seaborne PCI
sales may be priced on a spot
basis, with the remainder linked
to the quarterly LV PCI benchmark.
The company also has exposure to
approximately 2 million tons of
metallurgical coal related to the
Middlemount Mine, a 50/50 joint
venture accounted for in (Income)
Loss from Equity Affiliates.
Peabody's North Goonyella Mine
receives the PHCC index quoted
price and the Coppabella Mine
typically sets the LV PCI
benchmark, with the remainder of
products sold at discounts to
these values based on coal
qualities and properties. On a
weighted-average basis across all
metallurgical products, Peabody
typically realizes approximately
85% - 90% of the PHCC index
quoted price for its coking
products, and 85% - 90% of the LV
PCI benchmark price for its PCI
products.
(2) A portion of Peabody's seaborne
thermal coal products sell at or
above the Newcastle index, with
the remainder sold at discounts
relative to the Newcastle index
based on coal qualities and
properties. On a weighted-
average basis across all seaborne
thermal products, Peabody expects
to realize approximately 85% -
95% of the Newcastle index price.
(3) Assumes 2018 average A$ FX rate
of $0.76. Cost ranges include
sales-related cost, which will
fluctuate based on realized
prices.
4 Sensitivities reflect approximate
impacts of changes in variables on
financial performance. When
realized, actual impacts may
differ significantly.
5 As of June 30, 2018, Peabody had
purchased average rate call
options to manage market price
volatility associated with the
Australian dollar in aggregate
notional amount of approximately
AUD $0.9 billion with strike price
levels ranging from $0.79 to $0.82
and settlement dates through Dec.
31, 2018, and AUD $0.2 billion
aggregate notional amount with
average strike price levels of
$0.79 and settlement dates from
Jan. 1, 2019 through March 31,
2019. Sensitivities provided are
relative to an assumed average A$
FX exchange rate of $0.75 for the
remainder of 2018.
6 3Q - 4Q 2018 seaborne thermal
priced position assumes recently
announced JFY settlement of $110
per tonne carries through to
committed tons linked to the JFY
settlement.
Note 1: Peabody classifies its
Australian Metallurgical or
Thermal Mining segments based on
the primary customer base and
reserve type. A small portion of
the coal mined by the Australian
Metallurgical Mining segment is of
a thermal grade and vice versa.
Peabody may market some of its
metallurgical coal products as a
thermal product from time to time
depending on industry conditions.
Per ton metrics presented are non-
GAAP measures. Due to the
volatility and variability of
certain items needed to reconcile
these measures to their nearest
GAAP measure, no reconciliation
can be provided without
unreasonable cost or effort.
Note 2: A sensitivity to changes
in seaborne pricing should
consider Peabody's estimated split
of PCI and coking coal products,
the ratio of PLV PCI benchmark to
PLV HCC index quoted price, the
weighted average discounts across
all products to the applicable PLV
HCC index quoted price or PLV PCI
benchmark or Newcastle index
prices, in addition to impacts on
sales-related costs in Australia,
and applicable conversions between
short tons and metric tonnes as
necessary.
Note 3: As of July 20, 2018
Peabody has approximately 121.7
million shares of common stock
outstanding. On a fully diluted
basis, Peabody has approximately
124.7 million shares of common
stock.
Forward-Looking Statements
This press release 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 words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, income, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volume, or other financial items, descriptions of management's plans or objectives for future operations, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond the company's control, that are described in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017, as well as additional factors we may describe from time to time in other filings with the SEC. You may get such filings for free at our website at www.peabodyenergy.com. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
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SOURCE Peabody
