NYSE$BTU

Peabody Energy Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Peabody Energy reported a net loss for Q1 2022, impacted by unrealized mark-to-market losses and early debt extinguishment, but saw revenue increase due to higher realized prices.

Peabody Energy reported a net loss of $119.5 million for the first quarter of 2022, influenced by a $301.0 million charge for unrealized mark-to-market losses related to coal hedging activities and a $23.5 million net loss on early debt extinguishment. However, revenue from coal sales increased by 58% to $1,039 million compared to the prior year quarter, driven by higher realized prices.

  • Overcame production and logistic challenges in Australia related to record rain fall and COVID induced labor shortages and instituted recovery plans to recapture volumes over the remainder of the year
  • Invested over $40 million in the PRB and Midwest mining operations to enable higher production levels over the remainder of 2022
  • Strengthened the balance sheet with $42 million of additional debt repayment and a $320 million convertible notes offering to retire higher cost debt and extend maturities to 2028
  • Launched R3 Renewables, a renewable energy development company, in a joint venture with Riverstone Credit Partners and Summit Partners Credit Advisors to pursue the development of over 3.3 GW of solar PV and 1.6 GW of battery storage capacity over the next five years

Headline financials

Total Revenue

$691M

Previous: $651M+6.2%
EPS (adj)

-$0.87

Previous: -$0.79-10.1%
Seaborne Thermal Revenue/Ton

$66.86

Previous: $43.36+54.2%
Seaborne Metallurgical Revenue/Ton

$258.43

Previous: $87.47+195.4%
PRB Revenue/Ton

$12.18

Previous: $11.01+10.6%
Other U.S. Thermal Revenue/Ton

$48.46

Previous: $38.76+25.0%
Free Cash Flow

-$120M

Previous: -$80.1M-49.2%
Net Income

-$120M

Previous: -$80.1M-49.2%
Operating Income

-$70.6M

Previous: -$40.8M-73.0%
Gross Profit

-$7.6M

Previous: $68.7M-111.1%
Cash & Equivalents

$823M

Previous: $580M+41.9%
Total Assets

$4.94B

Previous: $4.49B+10.2%
Stock-Based Comp

$2M

Previous: $1.8M+11.1%

Revenue & EPS history

Peabody Energy · Revenue · Quarterly

$691M

Q1 2022+6.2%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Peabody Energy · $691M total across 5 segments · Q1 2022

  • Seaborne Metallurgical
    $321M+267.2%
  • Seaborne Thermal
    $251M+42.4%
  • Powder River Basin
    $251M+10.0%
  • Other U.S. Thermal
    $203M+36.0%
  • Corporate and Other
    -$335M-3557.7%

Forward guidance

Peabody anticipates higher U.S. thermal volumes, consistent PRB pricing in Q2 with increases in the second half, and decreased costs in Q2. Seaborne thermal export volumes are expected to increase in the second half. Seaborne met volumes are expected to be higher in the second half of the year.

Tailwinds

  • U.S. thermal volumes are expected to be higher than prior year.
  • Second quarter sales volumes are expected to be higher than the first quarter for the PRB segment and increase to 5 million tons for the Other U.S. Thermal segment.
  • Price per ton for the second quarter is expected to be consistent with the first quarter; higher PRB pricing is expected in the second half of the year.
  • Second quarter costs are anticipated to decrease compared to the first quarter as a result of higher volumes and lower one-time expenses.
  • Seaborne thermal volumes are expected to be higher in the second half of the year as a result of re-establishing mine sequencing from the severe rains and the completion of the planned longwall move at Wambo Underground.

Headwinds

  • Cost per ton for the full year are anticipated to be at the high end of guidance due to inflationary pressures.
  • For the second quarter, approximately 1.2 million tons of export sales are priced at $95 per ton.
  • Second quarter costs per ton are expected to remain consistent with first quarter results.
  • Cost per ton for the full year are anticipated to be at the high end of the guidance range due to the significant weather events, continued staffing challenges, inflationary pressures and increased royalties due to higher realized prices.
  • Second quarter costs per ton are expected to be higher than the first quarter due to a higher mix of Shoal Creek production, longwall restart costs at Metropolitan and higher overburden removal and repair costs at Coppabella.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-2.0%

Avg return

Earnings day

-1.9%

Avg return

5 days after

+1.2%

Avg return

30 days after

39%

14 / 36 earnings

Positive

+25.2%

Q4 2021

Best reaction

-29.0%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-11.0%+17.7%
Q4 2025-2.2%+2.7%-8.3%
Q3 2025-4.7%+8.9%+0.9%
Q1 2025+9.2%+5.6%-2.6%
Q4 2024-9.1%-3.8%-30.6%
Q3 2024+7.2%+10.2%-3.4%
Q2 2024-0.8%-3.7%+5.4%
Q1 2024+2.8%+2.3%+15.6%
Q4 2023-2.5%-4.4%+4.7%
Q3 2023+0.6%-4.4%-2.8%
Q2 2023-3.7%-0.7%-4.5%
Q1 2023+2.6%-0.3%-20.3%
Q4 2022+12.1%+7.3%-11.2%
Q3 2022+16.2%+27.5%+36.0%
Q2 2022-8.0%-14.7%+21.8%
Q1 2022-14.6%-18.8%-5.2%
Q4 2021+25.2%+26.6%+69.4%
Q3 2021-8.9%-11.8%-19.5%
Q2 2021+8.7%+5.8%+44.8%
Q1 2021-13.8%-3.3%+54.5%
Q4 2020-17.9%-14.3%-7.6%
Q3 2020-29.0%-10.3%+26.5%
Q2 2020-14.3%-10.5%-14.3%
Q1 2020+13.0%+8.0%+5.0%
Q4 2019+20.8%+12.1%-37.2%
Q3 2019-26.2%-36.3%-39.5%
Q2 2019-15.9%-18.4%-16.7%
Q1 2019-4.1%+1.5%-18.2%
Q4 2018-13.8%-17.3%-14.5%
Q3 2018+4.6%+1.7%-8.1%
Q2 2018-0.5%+1.1%-2.9%
Q1 2018-3.1%-3.0%+9.1%
Q4 2017-7.2%-4.4%-5.0%
Q3 2017+3.0%+1.9%+8.9%
Q2 2017+7.7%+0.6%+3.4%
Q1 2017-4.4%-0.4%-6.7%
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2007
Q3 2010
Q2 2010
Q1 2009
Q1 2010
Q4 2008
Q4 2009
Q3 2009
Q3 2008
Q2 2008
Q2 2009

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