Peabody Reports Earnings For Quarter Ended September 30, 2018
ST. LOUIS, Oct. 30, 2018 /PRNewswire/ -- Peabody (NYSE: BTU) today announced its third quarter 2018 operating results, including revenues of $1.41 billion, income from continuing operations, net of income taxes of $83.9 million, net income attributable to common stockholders of $71.5 million, diluted earnings per share from continuing operations of $0.63 and Adjusted EBITDA(1) of $372.1 million.
"During a quarter that ended with substantial challenges at the North Goonyella Mine, Peabody's large, diversified platform generated solid results, led by our Australian thermal coal segment," said Peabody President and Chief Executive Officer Glenn Kellow. "While our operational focus is on our current platform, entering the assessment and planning phase of the North Goonyella Mine, and completing the accretive Shoal Creek metallurgical coal mine acquisition in Alabama, our financial approach is unchanged. We are committed to generating cash, maintaining financial strength, investing wisely and returning cash to shareholders - demonstrated by our expanded share buyback program and increased dividend per share."
Third Quarter 2018 Results
Revenues for the third quarter totaled $1.41 billion compared to $1.48 billion in the prior year as higher Australian realized pricing mostly offset the impact of lower Australian and U.S. sales volumes.
Depreciation, depletion and amortization declined 13 percent over the prior year driven by continued contract amortization roll off. During the quarter, Peabody completed the sale of certain resources associated with its Millennium Mine, resulting in a gain of $20.5 million. Income from continuing operations, net of income taxes decreased $149.8 million due to a $49.3 million provision for estimated equipment loss at the North Goonyella Mine (see additional information under Operational and Portfolio Items) and a prior year $84.1 million net tax benefit. Net income attributable to common stockholders declined $129.9 million to $71.5 million.
Adjusted EBITDA for the third quarter totaled $372.1 million compared to $411.3 million in the prior year and includes approximately $9 million in expenses related to containment activities at the North Goonyella Mine.
Third quarter Australian Adjusted EBITDA of $236.0 million eased 2 percent from the prior year as higher realized pricing was overcome by lower volumes and elevated costs, largely related to North Goonyella, along with higher royalties. Australian sales volumes totaled 7.6 million tons, including 2.8 million tons of metallurgical coal sold at an average price of $132.50 per ton and 2.9 million tons of export thermal coal sold at an average price of $92.08 per ton, with the remainder delivered under a long-term domestic contract.
During the third quarter, the Australian thermal segment led the company with Adjusted EBITDA of $145.3 million and Adjusted EBITDA margins of 48 percent. Australian thermal realized pricing in the third quarter increased 23 percent to $63.50 per ton due to favorable spot pricing as well as a higher JFY settlement price. Realized pricing reflects a blend of products ranging from API 5 5,500 to Newcastle 6,000 specification. Australian thermal costs per ton rose modestly to $33.20 driven by higher royalties and fuel costs, partially offset by favorable currency. Third quarter Australian metallurgical Adjusted EBITDA declined approximately $52 million to $90.7 million primarily due to the longwall move and expenses related to events at North Goonyella.
Adjusted EBITDA for the U.S. operations totaled $155.4 million compared to $196.7 million in the prior year. Powder River Basin costs per ton declined 1 percent to $9.01 on lower repair costs, even with a 6 percent reduction in volumes. Midwestern costs per ton rose 7 percent to $34.57 due to higher commodity pricing, while Western costs per ton increased 7 percent, impacted primarily by certain repair increases and higher sales-related costs. Overall, third quarter U.S. Adjusted EBITDA margins totaled 21 percent, with 24 percent margins from the PRB.
During the third quarter, Peabody generated operating cash flow of $345.4 million and Free Cash Flow(1) of $297.9 million, reflecting low fixed charges. Capital expenditures for the quarter totaled $61 million. Additionally, Peabody collected approximately $7 million in cash from the sale of Millennium Mine resources, with the remaining balance of about $13.5 million expected to be received through July 2019.
The company repurchased $325 million of common stock in the quarter, bringing total share repurchases under its $1.0 billion share repurchase program to $875 million since August 2017. To date, the company has repurchased a total of 22.8 million shares under the program, representing 17 percent of shares initially outstanding on a fully converted basis. In light of expected continued strong cash flows and robust liquidity, the company has announced it has expanded its share repurchase authorization by an additional $500 million to $1.5 billion. In addition, during the third quarter, Peabody completed a consent process to amend certain terms related to its 2022 and 2025 Senior Notes to increase flexibility to return cash to shareholders.
In October, Peabody's board of directors increased the company's quarterly common stock cash dividend from $0.125 per share to $0.13 per share. Given the company's share repurchases, the announcement reflects an increase of nearly 4 percent per share, while maintaining dividend cash outflows consistent with the prior quarter.
Liquidity at quarter end totaled $1.69 billion and included $1.37 billion in cash and cash equivalents, with approximately $400 million earmarked for financing the Shoal Creek transaction. Total liquidity also included $245.6 million of available revolver capacity and $78.0 million of accounts receivable securitization capacity.
_________________________________
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.
Operational and Portfolio Items
North Goonyella Update: Mine personnel are continuing with concrete sealing of the completed longwall panel, and the company is transitioning to the assessment/planning phase of managing the previously reported incident at North Goonyella. This next phase involves mapping of the heated area and monitoring of temperatures, gas levels, seismic activity, surface air quality and camera imaging. These actions come before advanced planning for re-ventilation, mine re-entry and potential restart of operations.
Continuing analysis is based on a network of 25 planned, remote gas monitoring points throughout the mine. The GAG Unit that was initially used in the inertization of the underground environment has been deactivated and on stand-by mode for nearly two weeks. With no ventilation or water management at present, the underground air quality is inert and there are indications of standing water in portions of the mine, with pumping being planned from the surface.
Financial Elements: Consistent with actions taken and conditions known to date, Peabody has recorded a $49.3 million charge for estimated equipment loss, including 78 shields and ancillary equipment sealed in the completed 9 North panel area. The majority of this charge is expected to have a cash impact related to leased equipment.
The current book value of North Goonyella following the charge is $284 million, including unmined panels in the north and south portions of the current seam, lower-seam reserves and surface facilities. The mine also contains $61 million in leased equipment not within the sealed and mined-out 9 North panel.
In the fourth quarter, Peabody estimates $20 to $25 million in containment, monitoring and planning costs, along with approximately $15 to $20 million in costs to keep the mine in idle status pending any future re-entry. The company intends to take all steps to work safely, progress the plan and look to mitigate costs while pursuing options for a resumption of activities at the appropriate time. Mitigation actions under consideration include pursuing means to access a small quantity of metallurgical coal remaining in the stockpile, subletting excess rail and port capacity for a limited time, and analyzing reprocessing of coal waste for potential sales into the thermal market.
Regarding insurance coverage, the company has notified its carriers of a potential claim under the company's insurance policies that hold a relevant coverage limit of $125 million above a deductible of $50 million.
North Goonyella coal typically sells at or near the benchmark for high-quality hard coking coal and, prior to the incident, costs for full-year 2018 had been projected at approximately $110 per short ton. Peabody has declared force majeure with customers for shipments covering upcoming months.
Future Scenarios: As Peabody enters the next phase, the North Goonyella team will continue to work from the surface and obtain greater knowledge of underground conditions in the mine. The assessment and planning phase comes before re-ventilation, re-entry and any potential restart of operations. All phases involve review and collaboration with the Queensland Mines Inspectorate.
Multiple scenarios are being evaluated should mining be able to resume. If the next panel (10 North, which is already developed) is accessible, production would be targeted for the second half of 2019, whereas southern panels (GM South) access would likely extend to 2020 given that development was in early stages. The company is exploring all reasonable mine-planning steps given the long-lived nature of reserves and compelling margins of the mine during times of strong industry conditions.
Shoal Creek Acquisition: In the third quarter, Peabody also announced plans to acquire the Shoal Creek metallurgical coal mine, preparation plant and supporting assets from Drummond Company for $400 million. The transaction excludes legacy liabilities other than reclamation. Closing is expected in the fourth quarter 2018, and Peabody intends to finance the transaction with cash on the balance sheet.
Peabody believes the acquisition is consistent with its approach to upgrade the company's metallurgical coal portfolio and meets the criteria of its previously stated investment filters.
Currently, the sales process is moving forward with regulatory approvals. In addition, Drummond is negotiating a collective bargaining agreement with the union-represented workforce, which is a condition precedent for closing, and union-represented workers must agree to elimination of participation in the multi-employer pension plan and replacement with a 401(k) program.
Shoal Creek is located in Central Alabama and serves Asian and European steel mills with high-vol A coking coal. In 2017, Shoal Creek sold 2.1 million tons. Shoal Creek's mining costs per ton are within the prior targeted range of $85 to $95 per ton for Peabody's metallurgical coal platform. In addition, the mine is strategically positioned on the Black Warrior River with direct access to barge transportation, eliminating trucking or rail requirements. Shoal Creek coal typically prices at or near the high-vol A index.
Proven and probable reserves total 58 million tons with a current mine plan accessing 17 million tons with minimal capital requirements. Peabody expects Shoal Creek to integrate into the company's operating and SG&A platforms with minimal friction costs. In addition, the acquisition is not expected to increase Peabody's U.S. federal cash tax payments for the foreseeable future, due to the company's substantial U.S. net operating loss tax position.
Industry Conditions
Strong seaborne thermal coal supply-demand dynamics remained in place during the third quarter with the 6,000-specification average prompt Newcastle thermal pricing rising 13 percent to approximately $117 per tonne from the second quarter 2018. At the same time, the prompt API 5 5,500 quality thermal product declined approximately $6 to an average of $69 per tonne for the third quarter.
China and India continue to drive seaborne thermal demand growth with ASEAN nations also representing persistent import strength. Through September, China thermal coal imports rose 27 million tonnes, supported by an approximately 7 percent increase in thermal power generation that has outpaced domestic coal production growth. Through September, India thermal imports increased 20 million tonnes on strong industrial demand and coal power generation, despite an approximately 8 percent increase in domestic production. In addition, ASEAN thermal import demand rose 9 percent through September over the prior year as new coal-fueled generation came online.
Through September, Australian thermal exports increased 2 percent, while lower-quality Indonesian coal exports rose 12 percent over the prior year. In addition, U.S. seaborne thermal coal exports have benefited from the higher pricing environment, rising 13 million tonnes through August.
Within metallurgical coal fundamentals, third quarter low-vol hard coking coal spot pricing continued to be favorable to historical averages and was in line with the prior quarter. Pricing reached a high of $209 per tonne during the third quarter with an average of $189 per tonne. The third-quarter index settlement price for premium low-vol hard coking coal was $188 per tonne compared to $170 per tonne in the prior year. The benchmark for low-vol PCI in the third quarter was settled at $150 per tonne compared to the benchmark settlements of $115 and $127 per tonne in the prior year. In addition, the fourth quarter benchmark price for low-vol PCI has been settled at $139 per tonne.
Seaborne metallurgical coal pricing has been supported by a 5 percent increase in global steel production through September. India seaborne metallurgical coal demand increased 4 million tonnes compared to the prior year through September, more than offsetting a 2 million tonne decline in China imports.
Regarding seaborne metallurgical coal supply, overall growth remains limited with the greatest increases from Australia and the U.S. While Australian metallurgical coal exports rose 2 million tonnes year-to-date through September, lower 2017 volumes reflect the impacts of Cyclone Debbie.
In the U.S., coal demand has been impacted by weak natural gas pricing, coal plant retirements and increased renewable generation, despite a 4 percent increase in total generation load over the prior year through September. Average Henry Hub gas prices fell approximately $0.20 per mmbtu through September compared to the prior year. Overall, U.S. coal production has declined 12 million tons year to date through September compared to prior year levels. Lower production and increased thermal coal exports have reduced overall utility stockpiles to approximately 100 million tons, the lowest levels since 2005.
Fourth Quarter 2018 Expectations
For the fourth quarter, Peabody is:
-- Advancing the assessment and planning phase at the North Goonyella Mine;
-- Preparing for the completion and integration of the Shoal Creek Mine
acquisition;
-- Driving strong shipments from the Australian thermal platform;
-- Revising 2018 U.S. Midwestern and Western sales volumes to reflect
stronger year-to-date shipments. The company is focused on contracting
2019 U.S. volumes if margins are acceptable; and
-- Continuing its financial approach, including 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:
Vic Svec
314.342.7768
Condensed Consolidated Statements of Operations (Unaudited)
For the Quarters Ended Sept. 30, 2018 and 2017
---
(In Millions, Except Per Share Data)
Successor
Quarter Ended Quarter Ended
Sept. 30, 2018 Sept. 30, 2017
Tons Sold 49.1 52.0
Revenues $
1,412.6 $
1,477.2
Operating Costs and
Expenses (1) 1,047.9 1,039.1
Depreciation,
Depletion and
Amortization 169.6 194.5
Asset Retirement
Obligation Expenses 12.4 11.3
Selling and
Administrative
Expenses 38.6 33.7
Acquisition Costs
Related to Shoal
Creek 2.5
Other Operating (Income) Loss:
Net Gain on Disposals (20.8) (0.4)
Provision for North
Goonyella Equipment
Loss 49.3
Income from Equity
Affiliates (17.2) (10.5)
Operating Profit 130.3 209.5
Interest Expense 38.2 42.4
Loss on Early Debt
Extinguishment - 12.9
Interest Income (10.1) (2.0)
Net Periodic Benefit
Costs, Excluding
Service Cost 4.5 6.6
Income from Continuing
Operations Before
Income Taxes 97.7 149.6
Income Tax Provision
(Benefit) 13.8 (84.1)
Income from Continuing
Operations, Net of
Income Taxes 83.9 233.7
Loss from Discontinued
Operations, Net of
Income Taxes (4.1) (3.7)
Net Income 79.8 230.0
Less: Series A
Convertible Preferred
Stock Dividends - 23.5
Less: Net Income
Attributable to
Noncontrolling
Interests 8.3 5.1
Net Income
Attributable to
Common Stockholders $
71.5 $
201.4
Adjusted EBITDA (2) $
372.1 $
411.3
Diluted EPS -Income
from Continuing
Operations (3)(4) $
0.63 $
1.49
Diluted EPS -Net
Income Attributable
to Common
Stockholders (3) $
0.59 $
1.47
(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
120.3 million and
103.1 million for
the quarter ended
September 30,
2018 and 2017,
respectively, and
excluded weighted
average shares
outstanding
related to the
participating
securities of
34.2 million for
the quarter ended
September 30,
2017.
(4) Reflects income
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 Nine Months Ended Sept. 30, 2018 and 2017
---
(In Millions, Except Per Share Data)
Successor Predecessor
Nine Months Ended Apr. 2 through Jan. 1 through
Sept. 30, 2018 Sept. 30, 2017 Apr. 1, 2017
Tons Sold 140.5 95.6 46.1
Revenues $
4,184.7 $
2,735.5 $
1,326.2
Operating Costs and
Expenses (1) 3,051.6 1,967.0 950.2
Depreciation,
Depletion and
Amortization 503.1 342.8 119.9
Asset Retirement
Obligation Expenses 37.9 22.3 14.6
Selling and
Administrative
Expenses 119.7 68.4 36.3
Acquisition Costs
Related to Shoal
Creek 2.5
Other Operating (Income) Loss:
Net Gain on Disposals (49.8) (0.9) (22.8)
Asset Impairment - 30.5
Provision for North
Goonyella Equipment
Loss 49.3
Income from Equity
Affiliates (64.4) (26.2) (15.0)
Operating Profit 534.8 362.1 212.5
Interest Expense 112.8 83.8 32.9
Loss on Early Debt
Extinguishment 2.0 12.9
Interest Income (24.3) (3.5) (2.7)
Net Periodic Benefit
Costs, Excluding
Service Cost 13.6 13.2 14.4
Reorganization Items,
Net (12.8) 627.2
Income (Loss) from
Continuing Operations
Before Income Taxes 443.5 255.7 (459.3)
Income Tax Provision
(Benefit) 31.3 (79.4) (263.8)
Income (Loss) from
Continuing
Operations, Net of
Income Taxes 412.2 335.1 (195.5)
Loss from Discontinued
Operations, Net of
Income Taxes (9.0) (6.4) (16.2)
Net Income (Loss) 403.2 328.7 (211.7)
Less: Series A
Convertible Preferred
Stock Dividends 102.5 138.6
Less: Net Income
Attributable to
Noncontrolling
Interests 8.9 8.9 4.8
Net Income (Loss)
Attributable to
Common Stockholders $
291.8 $
181.2 $
(216.5)
Adjusted EBITDA (2) $
1,105.6 $
729.1 $
341.3
Diluted EPS -Income
(Loss) from
Continuing Operations
(3)(4) $
2.40 $
1.37 $
(10.93)
Diluted EPS -Net
Income (Loss)
Attributable to
Common Stockholders
(3) $
2.33 $
1.32 $
(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 123.1
million and 100.2
million for the nine
months ended September
30, 2018 and the period
April 2 through
September 30, 2017,
respectively, and
excluded weighted
average shares
outstanding related to
the participating
securities of 2.8
million and 36.7
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 Nine Months Ended Sept. 30, 2018 and 2017
---
Successor
Successor Predecessor Combined
Quarter Quarter Nine Apr. 2 Jan. 1 Nine
Ended Ended Months through through Months
Sept. 30, Sept. 30, Ended Sept. 30, Apr. 1, Ended
2018 2017 Sept. 30, 2017 2017 Sept. 30,
2018 2017
Tons Sold (In Millions)
---
Powder River Basin
Mining Operations 31.7 33.7 90.3 62.2 31.0 93.2
Midwestern U.S.
Mining Operations 4.9 4.9 14.3 9.5 4.5 14.0
Western U.S. Mining
Operations 4.0 4.0 11.2 7.2 3.4 10.6
Total U.S. Mining
Operations 40.6 42.6 115.8 78.9 38.9 117.8
Australian
Metallurgical
Mining Operations 2.8 3.5 8.7 5.5 2.2 7.7
Australian Thermal
Mining Operations 4.8 5.2 13.6 9.8 4.6 14.4
Total Australian
Mining Operations 7.6 8.7 22.3 15.3 6.8 22.1
Trading and
Brokerage
Operations 0.9 0.7 2.4 1.4 0.4 1.8
Total 49.1 52.0 140.5 95.6 46.1 141.7
Revenue Summary (In Millions)
---
Powder River Basin
Mining Operations $
373.7 $
420.9 $
1,084.5 $
786.3 $
394.3 $
1,180.6
Midwestern U.S.
Mining Operations 208.5 207.7 607.7 402.6 193.2 595.8
Western U.S. Mining
Operations 156.1 155.7 439.4 281.1 149.7 430.8
Total U.S. Mining
Operations 738.3 784.3 2,131.6 1,470.0 737.2 2,207.2
Australian
Metallurgical
Mining Operations 370.3 415.9 1,254.0 703.7 328.9 1,032.6
Australian Thermal
Mining Operations 305.1 265.8 773.9 505.0 224.8 729.8
Total Australian
Mining Operations 675.4 681.7 2,027.9 1,208.7 553.7 1,762.4
Trading and
Brokerage
Operations 22.6 19.4 52.7 24.6 15.0 39.6
Corporate and Other (23.7) (8.2) (27.5) 32.2 20.3 52.5
Total $
1,412.6 $
1,477.2 $
4,184.7 $
2,735.5 $
1,326.2 $
4,061.7
Total Reporting Segment Costs Summary
(In Millions)
(1)
---
Powder River Basin
Mining Operations $
285.5 $
308.2 $
859.8 $
588.8 $
302.6 $
891.4
Midwestern U.S.
Mining Operations 169.8 158.2 495.8 306.6 143.2 449.8
Western U.S. Mining
Operations 127.6 121.2 345.0 201.7 99.7 301.4
Total U.S. Mining
Operations 582.9 587.6 1,700.6 1,097.1 545.5 1,642.6
Australian
Metallurgical
Mining Operations 279.6 272.8 838.4 488.7 219.3 708.0
Australian Thermal
Mining Operations 159.8 168.0 459.4 301.3 149.2 450.5
Total Australian
Mining Operations 439.4 440.8 1,297.8 790.0 368.5 1,158.5
Trading and
Brokerage
Operations 25.0 16.7 50.8 27.0 6.2 33.2
Corporate and Other 10.8 5.4 36.1 44.7 44.4 89.1
Total $
1,058.1 $
1,050.5 $
3,085.3 $
1,958.8 $
964.6 $
2,923.4
Other Supplemental Financial Data (In
Millions)
---
Adjusted EBITDA -
Powder River Basin
Mining Operations $
88.2 $
112.7 $
224.7 $
197.5 $
91.7 $
289.2
Adjusted EBITDA -
Midwestern U.S.
Mining Operations 38.7 49.5 111.9 96.0 50.0 146.0
Adjusted EBITDA -
Western U.S. Mining
Operations 28.5 34.5 94.4 79.4 50.0 129.4
Total U.S. Mining
Operations 155.4 196.7 431.0 372.9 191.7 564.6
Adjusted EBITDA -
Australian
Metallurgical
Mining Operations 90.7 143.1 415.6 215.0 109.6 324.6
Adjusted EBITDA -
Australian Thermal
Mining Operations 145.3 97.8 314.5 203.7 75.6 279.3
Total Australian
Mining Operations 236.0 240.9 730.1 418.7 185.2 603.9
Adjusted EBITDA -
Trading and
Brokerage (2.4) 2.7 1.9 (2.4) 8.8 6.4
Resource Management
Results (2) 21.3 0.4 42.8 1.6 2.9 4.5
Selling and
Administrative
Expenses (38.6) (33.7) (119.7) (68.4) (36.3) (104.7)
Acquisition Costs
Related to Shoal
Creek (2.5) (2.5)
Other Operating
Costs, Net (3) 4.7 (3.0) 28.5 (0.2) 16.6 16.4
Corporate Hedging
Results (1.8) 7.3 (6.5) 6.9 (27.6) (20.7)
Adjusted EBITDA (1) $
372.1 $
411.3 $
1,105.6 $
729.1 $
341.3 $
1,070.4
Note: See footnote explanations
on following page
Supplemental Financial Data (Unaudited)
For the Quarters and Nine Months Ended Sept. 30, 2018 and 2017
---
Successor Successor Predecessor Combined
Quarter Quarter Nine Apr. 2 Jan. 1 Nine
Ended Ended Months through through Months
Sept. 30, Sept. 30, Ended Sept. 30, Apr. 1, Ended
2018 2017 Sept. 30, 2017 2017 Sept. 30,
2018 2017
Revenues per Ton -Mining
Operations (4)
---
Powder River Basin $
11.80 $
12.48 $
12.01 $
12.65 $
12.70 $
12.67
Midwestern U.S. 42.45 42.52 42.41 42.57 42.96 42.69
Western U.S. 38.91 38.25 39.23 38.54 44.68 40.47
Total U.S. 18.19 18.38 18.40 18.63 18.96 18.73
Australian
Metallurgical 132.50 119.55 143.44 128.89 150.22 135.03
Australian Thermal 63.50 51.78 57.09 51.65 48.65 50.69
Total Australian 88.88 79.15 90.94 79.32 81.36 79.95
Costs per Ton -Mining Operations
(4)(5)
---
Powder River Basin $
9.01 $
9.13 $
9.52 $
9.47 $
9.75 $
9.57
Midwestern U.S. 34.57 32.39 34.60 32.42 31.84 32.23
Western U.S. 31.80 29.77 30.80 27.65 29.76 28.31
Total U.S. 14.36 13.77 14.68 13.91 14.03 13.94
Australian
Metallurgical 100.14 78.42 95.90 89.53 100.16 92.57
Australian Thermal 33.20 32.72 33.89 30.79 32.27 31.29
Total Australian 57.83 51.18 58.20 51.83 54.15 52.55
Adjusted EBITDA Margin per Ton -
Mining Operations (4)(5)
---
Powder River Basin $
2.79 $
3.35 $
2.49 $
3.18 $
2.95 $
3.10
Midwestern U.S. 7.88 10.13 7.81 10.15 11.12 10.46
Western U.S. 7.11 8.48 8.43 10.89 14.92 12.16
Total U.S. 3.83 4.61 3.72 4.72 4.93 4.79
Australian
Metallurgical 32.36 41.13 47.54 39.36 50.06 42.46
Australian Thermal 30.30 19.06 23.20 20.86 16.38 19.40
Total Australian 31.05 27.97 32.74 27.49 27.21 27.40
(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, the Q3 2018
gain of $20.5 million on the sale of surplus
coal resources associated with the Millennium
Mine 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, certain coal royalty
expenses, 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 Sept. 30, 2018 and Dec. 31, 2017
---
(Dollars In Millions)
(Unaudited)
Sept. 30, 2018 Dec. 31, 2017
Cash and Cash
Equivalents $
1,371.0 $
1,012.1
Restricted Cash - 40.1
Accounts Receivable, Net 444.9 552.1
Inventories 277.1 291.3
Other Current Assets 213.9 294.4
Total Current Assets 2,306.9 2,190.0
Property, Plant,
Equipment and Mine
Development, Net 4,851.9 5,111.9
Collateral Arrangements - 323.1
Investments and Other
Assets 276.4 470.6
Deferred Income Taxes 85.5 85.6
Total Assets $
7,520.7 $
8,181.2
Current Portion of Long-
Term Debt $
42.0 $
42.1
Accounts Payable and
Accrued Expenses 1,082.2 1,202.8
Total Current
Liabilities 1,124.2 1,244.9
Long-Term Debt, Less
Current Portion 1,334.2 1,418.7
Deferred Income Taxes 4.8 5.4
Asset Retirement
Obligations 670.7 657.0
Accrued Postretirement
Benefit Costs 723.4 730.0
Other Noncurrent
Liabilities 374.8 469.4
Total Liabilities 4,232.1 4,525.4
Series A Convertible
Preferred Stock - 576.0
Common Stock 1.4 1.0
Additional Paid-in
Capital 3,295.1 2,590.3
Treasury Stock (890.0) (175.9)
Retained Earnings 837.2 613.6
Accumulated Other
Comprehensive (Loss)
Income (3.1) 1.4
Peabody Energy
Corporation
Stockholders' Equity 3,240.6 3,606.4
Noncontrolling Interests 48.0 49.4
Total Stockholders'
Equity 3,288.6 3,655.8
Total Liabilities and
Stockholders' Equity $
7,520.7 $
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 Sept. 30, 2018 and 2017
---
(Dollars In Millions)
Successor
Quarter Ended Quarter Ended
Sept. 30, 2018 Sept. 30, 2017
Cash Flows From Operating Activities
Net Cash Provided By
Continuing
Operations $
364.6 $
261.8
Net Cash Used In
Discontinued
Operations (19.2) (13.8)
Net Cash Provided By
Operating Activities 345.4 248.0
Cash Flows From Investing Activities
Additions to
Property, Plant,
Equipment and Mine
Development (60.9) (22.7)
Changes in Accrued
Expenses Related to
Capital Expenditures (6.1) 0.2
Proceeds from
Disposal of Assets 16.4 2.7
Contributions to
Joint Ventures (114.4) (113.7)
Distributions from
Joint Ventures 118.2 112.5
Advances to Related
Parties (1.0) (3.2)
Cash Receipts from
Middlemount Coal Pty
Ltd 10.9 8.7
Investment in Equity
Securities (10.0)
Other, Net (0.6) (0.9)
Net Cash Used In
Investing Activities (47.5) (16.4)
Cash Flows From Financing Activities
Repayments of Long-
Term Debt (9.5) (308.3)
Payment of Deferred
Financing Costs (19.8) (6.1)
Common Stock
Repurchases (325.1) (69.2)
Dividends Paid (15.3)
Distributions to
Noncontrolling
Interests (3.7) (10.3)
Net Cash Used In
Financing Activities (373.4) (393.9)
Net Change in Cash,
Cash Equivalents and
Restricted Cash (75.5) (162.3)
Cash, Cash
Equivalents and
Restricted Cash at
Beginning of Period 1,477.9 1,112.6
Cash, Cash
Equivalents and
Restricted Cash at
End of Period $
1,402.4 $
950.3
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 Nine Months Ended Sept. 30, 2018 and 2017
---
(Dollars In Millions)
Successor Predecessor Combined
Nine Months Apr. 2 Jan. 1 Nine Months
Ended Sept. 30, 2018 through through Ended
Sept. 30, 2017 Apr. 1, 2017 Sept. 30, 2017
Cash Flows From Operating Activities
Net Cash Provided By
(Used In) Continuing
Operations $
1,283.8 $
328.1 $
(804.8) $
(476.7)
Net Cash Used In
Discontinued
Operations (23.0) (14.4) (8.2) (22.6)
Net Cash Provided By
(Used In) Operating
Activities 1,260.8 313.7 (813.0) (499.3)
Cash Flows From Investing Activities
Additions to
Property, Plant,
Equipment and Mine
Development (186.5) (68.6) (32.8) (101.4)
Changes in Accrued
Expenses Related to
Capital Expenditures (7.0) 1.8 (1.4) 0.4
Federal Coal Lease
Expenditures (0.5) (0.5) (0.5)
Proceeds from
Disposal of Assets 69.0 5.2 24.3 29.5
Contributions to
Joint Ventures (358.2) (210.0) (95.4) (305.4)
Distributions from
Joint Ventures 355.0 208.0 90.5 298.5
Advances to Related
Parties (5.6) (4.1) (0.4) (4.5)
Cash Receipts from
Middlemount Coal Pty
Ltd 81.1 35.2 31.1 66.3
Investment in Equity
Securities (10.0)
Other, Net (2.8) (2.4) (0.3) (2.7)
Net Cash (Used In)
Provided By
Investing Activities (65.5) (34.9) 15.1 (19.8)
Cash Flows From Financing Activities
Proceeds from Long-
Term Debt - 1,000.0 1,000.0
Repayments of Long-
Term Debt (73.0) (332.1) (2.1) (334.2)
Payment of Deferred
Financing Costs (21.2) (6.1) (45.4) (51.5)
Common Stock
Repurchases (699.6) (69.2) (69.2)
Repurchases of
Employee Common
Stock Relinquished
for Tax Withholding (14.5) (0.1) (0.1)
Dividends Paid (44.6)
Distributions to
Noncontrolling
Interests (10.3) (16.7) (0.1) (16.8)
Other, Net 0.1
Net Cash (Used In)
Provided By
Financing Activities (863.1) (424.1) 952.3 528.2
Net Change in Cash,
Cash Equivalents and
Restricted Cash 332.2 (145.3) 154.4 9.1
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 $
1,402.4 $
950.3 $
1,095.6 $
950.3
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 Sept. 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
Quarter Ended Quarter Ended
Sept. 30, 2018 Sept. 30, 2017
Income from Continuing Operations,
Net of Income Taxes $
83.9 $
233.7
Depreciation, Depletion and
Amortization 169.6 194.5
Asset Retirement Obligation Expenses 12.4 11.3
Provision for North Goonyella
Equipment Loss 49.3
Changes in Deferred Tax Asset
Valuation Allowance and Amortization
of Basis Difference Related to Equity
Affiliates (6.1) (3.4)
Interest Expense 38.2 42.4
Loss on Early Debt Extinguishment 12.9
Interest Income (10.1) (2.0)
Unrealized Losses on Economic Hedges 26.8 10.8
Unrealized (Gains) Losses on Non-Coal
Trading Derivative Contracts (0.3) 1.7
Take-or-Pay Contract-Based
Intangible Recognition (5.4) (6.5)
Income Tax Provision (Benefit) 13.8 (84.1)
Adjusted EBITDA (1) $
372.1 $
411.3
(1) Adjusted EBITDA is defined as income 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
Quarter Ended Quarter Ended
Sept. 30, 2018 Sept. 30, 2017
Operating Costs and Expenses $
1,047.9 $
1,039.1
Unrealized Gains (Losses) on Non-
Coal Trading Derivative Contracts 0.3 (1.7)
Take-or-Pay Contract-Based
Intangible Recognition 5.4 6.5
Net Periodic Benefit Costs,
Excluding Service Cost 4.5 6.6
Total Reporting Segment Costs (2) $
1,058.1 $
1,050.5
(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
Quarter Ended Quarter Ended
Sept. 30, 2018 Sept. 30, 2017
Net Cash Provided By Operating
Activities $
345.4 $
248.0
Net Cash Used In Investing
Activities (47.5) (16.4)
Free Cash Flow (3) $
297.9 $
231.6
(3) Free Cash Flow is defined as net cash provided by
operating activities less net cash used in investing
activities and excludes cash outflows related to
business combinations. 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 Nine Months Ended Sept. 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
Nine Months Ended Apr. 2 through Jan. 1 through Apr.
Sept. 30, 2018 Sept. 30, 2017 1, 2017
Income (Loss) from Continuing
Operations, Net of Income Taxes $
412.2 $
335.1 $
(195.5)
Depreciation, Depletion and
Amortization 503.1 342.8 119.9
Asset Retirement Obligation Expenses 37.9 22.3 14.6
Asset Impairment 30.5
Provision for North Goonyella
Equipment Loss 49.3
Changes in Deferred Tax Asset
Valuation Allowance and Amortization
of Basis Difference Related to Equity
Affiliates (22.1) (7.7) (5.2)
Interest Expense 112.8 83.8 32.9
Loss on Early Debt Extinguishment 2.0 12.9
Interest Income (24.3) (3.5) (2.7)
Reorganization Items, Net (12.8) 627.2
Break Fees Related to Terminated Asset
Sales (28.0)
Unrealized Losses (Gains) on Economic
Hedges 36.3 1.4 (16.6)
Unrealized Losses (Gains) on Non-Coal
Trading Derivative Contracts 1.4 (1.5)
Coal Inventory Revaluation 67.3
Take-or-Pay Contract-Based
Intangible Recognition (21.5) (16.4)
Income Tax Provision (Benefit) 31.3 (79.4) (263.8)
Adjusted EBITDA (1) $
1,105.6 $
729.1 $
341.3
(1) Adjusted EBITDA is defined as income 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
Nine Months Ended Apr. 2 through Jan. 1 through Apr.
Sept. 30, 2018 Sept. 30, 2017 1, 2017
Operating Costs and Expenses $
3,051.6 $
1,967.0 $
950.2
Break Fees Related to Terminated
Asset Sales - 28.0
Unrealized (Losses) Gains on Non-
Coal Trading Derivative Contracts (1.4) 1.5
Coal Inventory Revaluation - (67.3)
Take-or-Pay Contract-Based
Intangible Recognition 21.5 16.4
Net Periodic Benefit Costs,
Excluding Service Cost 13.6 13.2 14.4
Total Reporting Segment Costs (2) $
3,085.3 $
1,958.8 $
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
Nine Months Ended Apr. 2 through Jan. 1 through Apr.
Sept. 30, 2018 Sept. 30, 2017 1, 2017
Net Cash Provided By (Used In)
Operating Activities
$ $
313.7 $
(813.0)
1,260.8
Net Cash (Used In) Provided By
Investing Activities (65.5) (34.9) 15.1
Free Cash Flow (3) $
1,195.3 $
278.8 $
(797.9)
(3) Free Cash Flow is defined as net cash provided by operating activities less net
cash used in investing activities and excludes cash outflows related to business
combinations. 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(1)
115 - 120
ILB
18.5 - 19.5
Quarterly SG&A Expense
~$40 million
Western
14 - 15
Total U.S.
147.5 - 154.5
Interest Expense5
~$150 million
Aus. Metallurgical(2)
11.0 - 12.0
Cost Sensitivities6
Aus. Export Thermal(3)
11.5 - 12.5
$0.05 Decrease in A$ FX Rate7
+ ~$30 million
Aus. Domestic Thermal
7.0 - 8.0
$0.05 Increase in A$ FX Rate7
-~$30 million
Total Australia
29.5 - 32.5
Fuel (+/- $10/barrel)
+/- ~$8 million
U.S. Operations - Revenue Per Ton 2018 Priced Position (Avg. Price per Short Ton)
Total U.S.
$17.75 - $18.50
PRB $11.81
ILB
~$42
U.S. Operations - Costs Per Ton
4Q Australia Export
~$83
PRB
$9.25 - $9.75
Thermal Volumes
ILB
$33.50 - $35.50
Total U.S.
$14.00 - $14.75 Peabody's 2018 U.S. volumes are fully priced
~65% and ~75% of Peabody's 2019 U.S. volumes are
Australia Operations - Costs per Ton (USD)4 priced and committed, respectively, based on the
Metallurgical
~$100
mid-point of 2018 volume guidance
Thermal
$32 - $36 ~2.4 million short tons of Australia export
thermal
coal are priced for the fourth quarter of 2018
2019 Priced Position (Avg. Price per Short Ton)
Australia Export Thermal
~$79
~3.3 million short tons of Australia export
thermal
coal priced for 2019
1 For full-year 2018, Peabody is
targeting the higher end of its
range for PRB coal sales volumes.
2 Metallurgical coal sales volumes
may range from ~55%-65% PCI and
~35%-45% coking coal (including
semi-hard and semi-soft coking
coals). Approximately 30% of
seaborne coking sales may be priced
on a spot basis, with the remainder
linked to an index. Approximately
30% of seaborne PCI sales may be
priced on a spot basis, with the
remainder linked to the quarterly LV
PCI benchmark. The company also has
exposure to approximately 2 million
tons of metallurgical coal related
to the Middlemount Mine, a 50/50
joint venture accounted for in
(Income) Loss from Equity
Affiliates. In 4Q 2018,
metallurgical sales will consist of
~70% PCI and ~30% coking coal. For
full-year 2018, Peabody is
targeting the lower end of its range
for metallurgical coal sales
volumes.
The North Goonyella Mine receives the
PHCC index quoted price and the
Coppabella Mine typically sets the
LV PCI benchmark, with the remainder
of products sold at discounts to
these values based on coal qualities
and properties.
On a
weighted-average basis across all
metallurgical products, Peabody
typically realizes approximately
85%-90% of the PHCC index quoted
price for its coking products, and
85%-90% of the LV PCI benchmark
price for its PCI products. Peabody
expects to realize approximately
70%-80% of the PHCC index quoted
price for its coking products in 4Q
2018.
3 A portion of Peabody's seaborne
thermal coal products sell at or
above the Newcastle index, with the
remainder sold at discounts relative
to the Newcastle index based on coal
qualities and properties. On a
weighted-average basis across all
seaborne thermal products, Peabody
expects to realize approximately
85%-95% of the Newcastle index
price. For full-year 2018, Peabody
is targeting the lower end of its
range for metallurgical coal sales
volumes.
4 Assumes 2018 average A$ FX rate of
$0.75. Cost ranges include sales-
related cost, which will fluctuate
based on realized prices.
5 Interest expense includes ~$3M in
fees associated with amendments of
debt agreements and $4M non-cash
expense associated with certain
contractual arrangements.
6 Sensitivities reflect approximate
impacts of changes in variables on
financial performance. When
realized, actual impacts may differ
significantly.
7 As of October 30, 2018, Peabody had
outstanding average rate call
options to manage market price
volatility associated with the
Australian dollar in aggregate
notional amount of approximately AUD
$0.5 billion with strike price
levels ranging from $0.79 to $0.82
and settlement dates through
December 31, 2018, and AUD $0.5
billion aggregate notional amount
with average strike price levels
ranging from $0.76 to $0.79 and
settlement dates from January, 1,
2019 through June 30, 2019.
Sensitivities provided are relative
to an assumed average A$ FX exchange
rate of $0.73 for the remainder of
2018.
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 September 30, 2018,
Peabody had approximately 114.5
million shares of common stock
outstanding. On a fully diluted
basis, Peabody has approximately
116.2 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
