NYSE$BTU

Peabody Energy Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Peabody Energy's Q2 2020 results were impacted by challenging seaborne market conditions and reduced U.S. thermal operations, with a significant impairment charge at NARM.

Peabody Energy reported Q2 2020 revenues of $626.7 million, a net loss of $1.55 billion, and Adjusted EBITDA of $23.4 million. The company faced challenges due to weak seaborne market conditions and lower U.S. thermal demand, leading to a $1.42 billion impairment charge at the North Antelope Rochelle Mine (NARM).

  • Revenues were $626.7 million, reflecting lower shipments and weak pricing.
  • Loss from continuing operations was $1.55 billion, impacted by a $1.42 billion impairment charge at NARM.
  • Adjusted EBITDA was $23.4 million.
  • The company is evaluating strategic financing alternatives.

Headline financials

Total Revenue

$627M

Previous: $1.15B-45.5%
EPS (adj)

-$1.32

Previous: $0.40-430.0%
Seaborne Thermal Revenue/Ton

$35.10

Previous: $46.41-24.4%
Seaborne Metallurgical Revenue/Ton

$86.80

Previous: $138.42-37.3%
PRB Revenue/Ton

$11.45

Previous: $11.33+1.1%
Other U.S. Thermal Revenue/Ton

$39.81

Previous: $43.04-7.5%
Free Cash Flow

-$1.54B

Previous: $37.1M-4262.3%
Net Income

-$1.54B

Previous: $37.1M-4262.3%
Operating Income

-$1.51B

Previous: $79.5M-2000.5%
Gross Profit

$70.4M

Previous: $291M-75.8%
Cash & Equivalents

$849M

Previous: $853M-0.5%
Total Assets

$4.95B

Previous: $7.12B-30.5%
Stock-Based Comp

$3.9M

Previous: $10M-61.0%

Revenue & EPS history

Peabody Energy · Revenue · Quarterly

$627M

Q2 2020-45.5%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Peabody Energy · $627M total across 5 segments · Q2 2020

  • Powder River Basin
    $206M-27.2%
  • Seaborne Thermal
    $162M-26.4%
  • Other U.S. Thermal
    $152M-50.9%
  • Seaborne Metallurgical
    $91.6M-68.5%
  • Corporate and Other
    $15.3M-66.5%

Forward guidance

Peabody is continuing its suspension of full-year 2020 guidance targets due to continued uncertainties with respect to COVID-19.

Tailwinds

  • 87 million tons of PRB coal priced at an average price of $11.36 per ton
  • 18 million tons of other U.S. thermal coal priced at an average price of $36 per ton
  • 7.2 million tons of seaborne thermal coal priced at an average price of $58 per short ton
  • Full-year SG&A expense is now expected to be approximately $110 million
  • 2020 capital expenditures have been reduced to $200 million

Headwinds

  • Continued uncertainties with respect to COVID-19, including the duration, severity, scope, and necessary government actions to limit the spread
  • Deliveries will be dependent on general economic conditions, weather, natural gas prices and other factors
  • Company remains focused on preserving cash and operational liquidity during these challenging times
  • Further action is required to reposition the cost structure in light of reduced demand and lower pricing
  • Company is maintaining full compliance with all regulatory reclamation requirements, but given operational sequencing is lowering its 2020 ARO cash spend to $50 million.

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 Q2 2020

Historical avgQ2 2020

-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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