Peabody Energy Corporation · NYSE:BTU
Peabody Energy — Investor Presentation (August 2017)
21 slides from Peabody Energy's investor presentation, August 2017
Slide 1: Investor Presentation August 2017
/ FXG /. INVESTOR PRESENTATION August 2017
Slide 2: Statement on Forward-Looking Information
Statement on Forward-Looking Information Certain statements included in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. The Company uses words such as "anticipate," "believe," "expect," "may," "forecast," "project," "should," "estimate," "pla
Slide 3: Peabody: Substantial Business, Simple Thesis
Peabody: Substantial Business, Simple Thesis Our Advantage… Our Approach… 3
Slide 4: Peabody: World's Largest Private-Sector Coal Company
Peabody: World’s Largest Private-Sector Coal Company ● Operating model includes: 23 operations – Americas and Australia In U.S. and Australia business units – Marketing/Trading services function $4.7 billion – Lean and scalable 2016 Revenues corporate structure ● Core sectors include: 5.6 billion –
Slide 5: Peabody: World's Only Global Pure-Play Coal Investment
Peabody: World’s Only Global Pure-Play Coal Investment Reserves Assigned Unassigned Proven and (tons in millions) Probable Powder River Basin 2,713 — 2,713 Midwestern U.S. 413 1,309 1,722 Western U.S. 412 84 496 Australian Thermal 294 — 294 Australian Met 192 226 418 Total 4,024 1,619 5,643 Note: Pe
Slide 6: Leading Coal Producer with Significant Product and Geographic Diversity
Leading Coal Producer with Significant Product and Geographic Diversity 200 2016 Mining Tons Sold YTD 2017 Adjusted EBITDA (tons in millions) by Mining Segment 180 ($ in millions) 160 U.S. Thermal 140 U.S. Met Australia PRB Asia-Pacific Met Thermal 120 $181.5 $176.5 Asia-Pacific Thermal 100 80 60 Mi
Slide 7: Australia: Strength of Platform Offers Opportunity for Substantial Value
Australia: Strength of Platform Offers Opportunity for Substantial Value ● Strength from product Improvement in Aus. Thermal and and geographic diversity Metallurgical Adjusted EBITDA Margins 39% ● Significant earnings strength 40% in mid and upper cycles 29% 30% – Australian coal demand drivers 24%
Slide 8: Americas: Diversified Regions and Stable Margins Led by Powder River Basin
Americas: Diversified Regions and Stable Margins Led by Powder River Basin ● Runs three of four most Adjusted EBITDA Margin of PRB Producers productive mines in U.S. (2014 – 1H 2017) 30% ● “Dial-a-blend” technology matches products with 25% 25% individual customer specs 21% – Produce from more than
Slide 9: Peabody: Committed to Safe, Sustainable Operations
Peabody: Committed to Safe, Sustainable Operations Safety First Reclamation Approach ● 2016 global incidence ● Land restoration essential rate of 1.22 part of coal mining process – 15% improvement from ● Reclaimed 1.7 acres for 2014 every acre disturbed in 2016 ● Safety a Way of Life ● ~$175 million
Slide 10: Industry: Strong Near-Term Seaborne Metallurgical and Thermal Coal Demand Led by China
Industry: Strong Near-Term Seaborne Metallurgical and Thermal Coal Demand Led by China Seaborne Thermal Coal Seaborne Metallurgical Coal ● Chinese thermal demand up ● Chinese met imports increase 16 million tonnes through June 9 million tonnes through June – Record electricity generation ● Global st
Slide 11: Industry: Coal Replaces Natural Gas as Top Fuel Source for U.S. Electricity Generation
Industry: Coal Replaces Natural Gas as Top Fuel Source for U.S. Electricity Generation in Q2 ● PRB demand up ~25 million Year Over Year U.S. Coal Generation vs. Avg. Natural Gas Prices tons through June; 15% $3.50 stockpiles decline 12 12% 10% days from June 2016 6% $3.00 ● Coal plants running harde
Slide 12: Actions on Policy Front Favorable to Coal Mining and Use
Actions on Policy Front Favorable to Coal Mining and Use ● Pro-growth, tax and regulatory initiatives at macro level ● Administration steps to review/reverse onerous regulations: – Repeal of “Stream Protection Rule” – Office of Natural Resources Revenue proposes to rescind Coal Valuation Rule – EPA
Slide 13: Financial Approach: Generate Cash, Reduce Debt, Invest Wisely, Return Cash to Shareholders
Financial Approach: Generate Cash, Reduce Debt, Invest Wisely, Return Cash to Shareholders Liquidity Debt Deleveraging Capital Returns • Targeting • Committed • Voluntarily • $500 million $800 million to sustainable repaid $150 share repurchase • Current liquidity capital structure million in July p
Slide 14: Strengthening Capital Structure to Allow for Flexibility and Sustainability Through Cycles
Strengthening Capital Structure to Allow for Flexibility and Sustainability Through Cycles ● Staggered debt maturities Debt and Liquidity Balances at 5 and 8 years Pro Forma Cash & Cash Equivalents $946 million ● 137.3 million common shares Available Capacity under ARS $78.5 million outstanding (ful
Slide 15: "The New BTU" Positioned to Create Substantial Value for Shareholders Over Time
“The New BTU” Positioned to Create Substantial Value for Shareholders Over Time • Only global • Safety and • Restructured pure-play coal sustainability balance sheet investment • Superior U.S. with significantly • Scale and assets and reduced debt diversity of operations • Advancing a solid geograph
Slide 16: Appendix
APPEN WDIX)
Slide 17: Appendix: Full-Year 2017 Targets
Appendix: Full-Year 2017 Targets Sales Volumes (Short Tons) Capital Expenditures $165 - $195 million PRB 117 - 120 million ILB 18 - 19 million Quarterly SG&A Expense $32 - $35 million Western 13 - 14 million Total U.S. 148 - 153 million Quarterly Interest Expense $39 - $41 million Aus. Metallurgical
Slide 18: Appendix: Full-Year 2017 Targets
Appendix: Full-Year 2017 Targets 1 Metallurgical coal sales volumes may range from ~50%-60% PCI and ~40%-50% coking coal (including semi-hard and semi-soft coking coals). Approximately 45%-55% of seaborne metallurgical sales may be executed on a spot basis, with the remainder priced under quarterly
Slide 19: Appendix: Reconciliation of Non-GAAP Measures
Appendix: Reconciliation of Non-GAAP Measures 2017 2016 2017 2016 Successor Predecessor Predecessor Successor Predecessor Predecessor January 1 April 2 through Quarter Ended April 2 through through April Six Months June 30 April 1 June 30 June 30 1 Ended June 30 (In Millions) Tons Sold Powder River
Slide 20: Appendix: Reconciliation of Non-GAAP Measures
Appendix: Reconciliation of Non-GAAP Measures 2017 2016 2017 2016 Successor Predecessor Predecessor Successor Predecessor Predecessor January 1 April 2 through Quarter Ended April 2 through through April Six Months June 30 April 1 June 30 June 30 1 Ended June 30 (In Millions) Reconciliation of Non-G
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Predecessor Year Ended December 31, 2016 2015 2014 2013 2012 Tons Sold (In Millions) Powder River Basin Mining Operations 113.1 138.8 142.6 135.2 140.3 (1) Adjusted EBITDA is a non-GAAP measure Midwestern U.S. Mining Operations 18.3 21.2 25.0 26.3 27.4 Western U.S