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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Peabody Energy Corporation | NYSE:BTU | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.34 | -1.55% | 21.60 | 22.14 | 21.34 | 21.99 | 4,647,045 | 01:00:00 |
|
|
☑
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
|
|
||
|
|
For the quarterly period ended
|
March 31, 2020
|
|
|
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
|
For the transition period from ____________ to ____________
|
|
|
Delaware
|
|
13-4004153
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
701 Market Street,
|
St. Louis,
|
Missouri
|
|
|
63101-1826
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.01 per share
|
BTU
|
New York Stock Exchange
|
|
|
Page
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions, except per share data)
|
||||||
Revenues
|
$
|
846.2
|
|
|
$
|
1,250.6
|
|
Costs and expenses
|
|
|
|
||||
Operating costs and expenses (exclusive of items shown separately below)
|
779.5
|
|
|
948.2
|
|
||
Depreciation, depletion and amortization
|
106.0
|
|
|
172.5
|
|
||
Asset retirement obligation expenses
|
17.6
|
|
|
13.8
|
|
||
Selling and administrative expenses
|
24.9
|
|
|
36.7
|
|
||
Restructuring charges
|
6.5
|
|
|
0.2
|
|
||
Transaction costs related to joint ventures
|
4.2
|
|
|
—
|
|
||
Other operating (income) loss:
|
|
|
|
||||
Net gain on disposals
|
(8.1
|
)
|
|
(1.5
|
)
|
||
Provision for North Goonyella equipment loss
|
—
|
|
|
24.7
|
|
||
North Goonyella insurance recovery
|
—
|
|
|
(125.0
|
)
|
||
Loss (income) from equity affiliates
|
9.1
|
|
|
(3.5
|
)
|
||
Operating (loss) profit
|
(93.5
|
)
|
|
184.5
|
|
||
Interest expense
|
33.1
|
|
|
35.8
|
|
||
Interest income
|
(3.1
|
)
|
|
(8.3
|
)
|
||
Net periodic benefit costs, excluding service cost
|
2.8
|
|
|
4.9
|
|
||
(Loss) income from continuing operations before income taxes
|
(126.3
|
)
|
|
152.1
|
|
||
Income tax provision
|
3.0
|
|
|
18.8
|
|
||
(Loss) income from continuing operations, net of income taxes
|
(129.3
|
)
|
|
133.3
|
|
||
Loss from discontinued operations, net of income taxes
|
(2.2
|
)
|
|
(3.4
|
)
|
||
Net (loss) income
|
(131.5
|
)
|
|
129.9
|
|
||
Less: Net (loss) income attributable to noncontrolling interests
|
(1.8
|
)
|
|
5.7
|
|
||
Net (loss) income attributable to common stockholders
|
$
|
(129.7
|
)
|
|
$
|
124.2
|
|
|
|
|
|
||||
(Loss) income from continuing operations:
|
|
|
|
||||
Basic (loss) income per share
|
$
|
(1.31
|
)
|
|
$
|
1.18
|
|
Diluted (loss) income per share
|
$
|
(1.31
|
)
|
|
$
|
1.15
|
|
Net (loss) income attributable to common stockholders:
|
|
|
|
||||
Basic (loss) income per share
|
$
|
(1.33
|
)
|
|
$
|
1.14
|
|
Diluted (loss) income per share
|
$
|
(1.33
|
)
|
|
$
|
1.12
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Net (loss) income
|
$
|
(131.5
|
)
|
|
$
|
129.9
|
|
Postretirement plans and workers’ compensation obligations (net of $0.0 tax provisions in each period)
|
(2.2
|
)
|
|
(2.2
|
)
|
||
Foreign currency translation adjustment
|
(6.8
|
)
|
|
0.1
|
|
||
Other comprehensive loss, net of income taxes
|
(9.0
|
)
|
|
(2.1
|
)
|
||
Comprehensive (loss) income
|
(140.5
|
)
|
|
127.8
|
|
||
Less: Net (loss) income attributable to noncontrolling interests
|
(1.8
|
)
|
|
5.7
|
|
||
Comprehensive (loss) income attributable to common stockholders
|
$
|
(138.7
|
)
|
|
$
|
122.1
|
|
|
(Unaudited)
|
|
|
||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Amounts in millions, except per share data)
|
||||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
682.5
|
|
|
$
|
732.2
|
|
Accounts receivable, net of allowance for credit losses of $0.0 at March 31, 2020 and December 31, 2019
|
265.2
|
|
|
329.5
|
|
||
Inventories
|
269.2
|
|
|
331.5
|
|
||
Other current assets
|
202.3
|
|
|
220.7
|
|
||
Total current assets
|
1,419.2
|
|
|
1,613.9
|
|
||
Property, plant, equipment and mine development, net
|
4,607.8
|
|
|
4,679.1
|
|
||
Operating lease right-of-use assets
|
78.0
|
|
|
82.4
|
|
||
Investments and other assets
|
120.5
|
|
|
139.1
|
|
||
Deferred income taxes
|
4.9
|
|
|
28.3
|
|
||
Total assets
|
$
|
6,230.4
|
|
|
$
|
6,542.8
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Current portion of long-term debt
|
$
|
12.6
|
|
|
$
|
18.3
|
|
Accounts payable and accrued expenses
|
793.4
|
|
|
957.0
|
|
||
Total current liabilities
|
806.0
|
|
|
975.3
|
|
||
Long-term debt, less current portion
|
1,294.3
|
|
|
1,292.5
|
|
||
Deferred income taxes
|
25.5
|
|
|
28.8
|
|
||
Asset retirement obligations
|
666.6
|
|
|
654.1
|
|
||
Accrued postretirement benefit costs
|
587.7
|
|
|
593.4
|
|
||
Operating lease liabilities, less current portion
|
44.5
|
|
|
52.8
|
|
||
Other noncurrent liabilities
|
272.5
|
|
|
273.4
|
|
||
Total liabilities
|
3,697.1
|
|
|
3,870.3
|
|
||
Stockholders’ equity
|
|
|
|
||||
Preferred Stock — $0.01 per share par value; 100.0 shares authorized, no shares issued or outstanding as of March 31, 2020 and December 31, 2019
|
—
|
|
|
—
|
|
||
Series Common Stock — $0.01 per share par value; 50.0 shares authorized, no shares issued or outstanding as of March 31, 2020 and December 31, 2019
|
—
|
|
|
—
|
|
||
Common Stock — $0.01 per share par value; 450.0 shares authorized, 139.6 shares issued and 97.2 shares outstanding as of March 31, 2020 and 139.2 shares issued and 96.9 shares outstanding as of December 31, 2019
|
1.4
|
|
|
1.4
|
|
||
Additional paid-in capital
|
3,353.3
|
|
|
3,351.1
|
|
||
Treasury stock, at cost — 42.4 and 42.3 common shares as of March 31, 2020 and December 31, 2019
|
(1,368.1
|
)
|
|
(1,367.3
|
)
|
||
Retained earnings
|
467.3
|
|
|
597.0
|
|
||
Accumulated other comprehensive income
|
22.6
|
|
|
31.6
|
|
||
Peabody Energy Corporation stockholders’ equity
|
2,476.5
|
|
|
2,613.8
|
|
||
Noncontrolling interests
|
56.8
|
|
|
58.7
|
|
||
Total stockholders’ equity
|
2,533.3
|
|
|
2,672.5
|
|
||
Total liabilities and stockholders’ equity
|
$
|
6,230.4
|
|
|
$
|
6,542.8
|
|
PEABODY ENERGY CORPORATION
|
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)
|
|||||||
|
|
|
|
||||
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Cash Flows From Financing Activities
|
|
|
|
||||
Repayments of long-term debt
|
(7.2
|
)
|
|
(8.3
|
)
|
||
Common stock repurchases
|
—
|
|
|
(98.8
|
)
|
||
Repurchase of employee common stock relinquished for tax withholding
|
(0.8
|
)
|
|
(1.4
|
)
|
||
Dividends paid
|
—
|
|
|
(214.4
|
)
|
||
Distributions to noncontrolling interests
|
(0.1
|
)
|
|
(14.3
|
)
|
||
Other, net
|
0.2
|
|
|
(0.1
|
)
|
||
Net cash used in financing activities
|
(7.9
|
)
|
|
(337.3
|
)
|
||
Net change in cash, cash equivalents and restricted cash
|
(49.7
|
)
|
|
(177.8
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
732.2
|
|
|
1,017.4
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
682.5
|
|
|
$
|
839.6
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions, except per share data)
|
||||||
Common Stock
|
|
|
|
||||
Balance, beginning of period
|
$
|
1.4
|
|
|
$
|
1.4
|
|
Balance, end of period
|
1.4
|
|
|
1.4
|
|
||
Additional paid-in capital
|
|
|
|
||||
Balance, beginning of period
|
3,351.1
|
|
|
3,304.7
|
|
||
Dividend equivalent units on dividends declared
|
—
|
|
|
6.0
|
|
||
Share-based compensation for equity-classified awards
|
2.2
|
|
|
11.6
|
|
||
Balance, end of period
|
3,353.3
|
|
|
3,322.3
|
|
||
Treasury stock
|
|
|
|
||||
Balance, beginning of period
|
(1,367.3
|
)
|
|
(1,025.1
|
)
|
||
Common stock repurchases
|
—
|
|
|
(98.8
|
)
|
||
Repurchase of employee common stock relinquished for tax withholding
|
(0.8
|
)
|
|
(1.4
|
)
|
||
Balance, end of period
|
(1,368.1
|
)
|
|
(1,125.3
|
)
|
||
Retained earnings
|
|
|
|
||||
Balance, beginning of period
|
597.0
|
|
|
1,074.5
|
|
||
Net (loss) income
|
(129.7
|
)
|
|
124.2
|
|
||
Dividends declared ($0.000 per share, $1.980 per share)
|
—
|
|
|
(220.4
|
)
|
||
Balance, end of period
|
467.3
|
|
|
978.3
|
|
||
Accumulated other comprehensive income
|
|
|
|
||||
Balance, beginning of period
|
31.6
|
|
|
40.1
|
|
||
Postretirement plans and workers' compensation obligations (net of $0.0 tax provisions in each period)
|
(2.2
|
)
|
|
(2.2
|
)
|
||
Foreign currency translation adjustment
|
(6.8
|
)
|
|
0.1
|
|
||
Balance, end of period
|
22.6
|
|
|
38.0
|
|
||
Noncontrolling interests
|
|
|
|
||||
Balance, beginning of period
|
58.7
|
|
|
56.0
|
|
||
Net (loss) income
|
(1.8
|
)
|
|
5.7
|
|
||
Distributions to noncontrolling interests
|
(0.1
|
)
|
|
(14.3
|
)
|
||
Balance, end of period
|
56.8
|
|
|
47.4
|
|
||
Total stockholders’ equity
|
$
|
2,533.3
|
|
|
$
|
3,262.1
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||||||
|
Seaborne Thermal Mining
|
|
Seaborne Metallurgical Mining
|
|
Powder River Basin Mining
|
|
Other U.S. Thermal Mining
|
|
Corporate and Other (1)
|
|
Consolidated
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||
Thermal coal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Domestic
|
$
|
36.5
|
|
|
$
|
—
|
|
|
$
|
266.6
|
|
|
$
|
184.6
|
|
|
$
|
—
|
|
|
$
|
487.7
|
|
Export
|
163.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163.7
|
|
||||||
Total thermal
|
200.2
|
|
|
—
|
|
|
266.6
|
|
|
184.6
|
|
|
—
|
|
|
651.4
|
|
||||||
Metallurgical coal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Export
|
—
|
|
|
192.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192.5
|
|
||||||
Total metallurgical
|
—
|
|
|
192.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192.5
|
|
||||||
Other
|
0.9
|
|
|
0.7
|
|
|
—
|
|
|
7.7
|
|
|
(7.0
|
)
|
|
2.3
|
|
||||||
Revenues
|
$
|
201.1
|
|
|
$
|
193.2
|
|
|
$
|
266.6
|
|
|
$
|
192.3
|
|
|
$
|
(7.0
|
)
|
|
$
|
846.2
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||
|
Seaborne Thermal Mining
|
|
Seaborne Metallurgical Mining
|
|
Powder River Basin Mining
|
|
Other U.S. Thermal Mining
|
|
Corporate and Other (1)
|
|
Consolidated
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||
Thermal coal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Domestic
|
$
|
38.4
|
|
|
$
|
—
|
|
|
$
|
287.3
|
|
|
$
|
321.7
|
|
|
$
|
—
|
|
|
$
|
647.4
|
|
Export
|
211.9
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
|
218.9
|
|
||||||
Total thermal
|
250.3
|
|
|
—
|
|
|
287.3
|
|
|
328.7
|
|
|
—
|
|
|
866.3
|
|
||||||
Metallurgical coal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Export
|
—
|
|
|
323.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
323.7
|
|
||||||
Total metallurgical
|
—
|
|
|
323.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
323.7
|
|
||||||
Other
|
0.7
|
|
|
0.8
|
|
|
—
|
|
|
6.1
|
|
|
53.0
|
|
|
60.6
|
|
||||||
Revenues
|
$
|
251.0
|
|
|
$
|
324.5
|
|
|
$
|
287.3
|
|
|
$
|
334.8
|
|
|
$
|
53.0
|
|
|
$
|
1,250.6
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||||||
|
Seaborne Thermal Mining
|
|
Seaborne Metallurgical Mining
|
|
Powder River Basin Mining
|
|
Other U.S. Thermal Mining
|
|
Corporate and Other (1)
|
|
Consolidated
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||
One year or longer
|
$
|
99.3
|
|
|
$
|
140.1
|
|
|
$
|
243.4
|
|
|
$
|
184.6
|
|
|
$
|
—
|
|
|
$
|
667.4
|
|
Less than one year
|
100.9
|
|
|
52.4
|
|
|
23.2
|
|
|
—
|
|
|
—
|
|
|
176.5
|
|
||||||
Other (2)
|
0.9
|
|
|
0.7
|
|
|
—
|
|
|
7.7
|
|
|
(7.0
|
)
|
|
2.3
|
|
||||||
Revenues
|
$
|
201.1
|
|
|
$
|
193.2
|
|
|
$
|
266.6
|
|
|
$
|
192.3
|
|
|
$
|
(7.0
|
)
|
|
$
|
846.2
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||
|
Seaborne Thermal Mining
|
|
Seaborne Metallurgical Mining
|
|
Powder River Basin Mining
|
|
Other U.S. Thermal Mining
|
|
Corporate and Other (1)
|
|
Consolidated
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||
One year or longer
|
$
|
171.1
|
|
|
$
|
232.8
|
|
|
$
|
280.1
|
|
|
$
|
313.8
|
|
|
$
|
—
|
|
|
$
|
997.8
|
|
Less than one year
|
79.2
|
|
|
90.9
|
|
|
7.2
|
|
|
14.9
|
|
|
—
|
|
|
192.2
|
|
||||||
Other (2)
|
0.7
|
|
|
0.8
|
|
|
—
|
|
|
6.1
|
|
|
53.0
|
|
|
60.6
|
|
||||||
Revenues
|
$
|
251.0
|
|
|
$
|
324.5
|
|
|
$
|
287.3
|
|
|
$
|
334.8
|
|
|
$
|
53.0
|
|
|
$
|
1,250.6
|
|
(1)
|
Corporate and Other revenue includes gains and losses related to mark-to-market adjustments from economic hedge activities intended to hedge future coal sales. Refer to Note 7. “Derivatives and Fair Value Measurements” for additional information regarding the economic hedge activities.
|
(2)
|
Other includes revenues from arrangements such as customer contract-related payments, royalties related to coal lease agreements, sales agency commissions, farm income and property and facility rentals, for which contract duration is not meaningful.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Trade receivables, net
|
$
|
230.0
|
|
|
$
|
283.1
|
|
Miscellaneous receivables, net
|
35.2
|
|
|
46.4
|
|
||
Accounts receivable, net
|
$
|
265.2
|
|
|
$
|
329.5
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Loss from discontinued operations, net of income taxes
|
$
|
(2.2
|
)
|
|
$
|
(3.4
|
)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Liabilities:
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
58.4
|
|
|
$
|
58.8
|
|
Other noncurrent liabilities
|
105.1
|
|
|
105.5
|
|
||
Total liabilities classified as discontinued operations
|
$
|
163.5
|
|
|
$
|
164.3
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Materials and supplies
|
$
|
113.7
|
|
|
$
|
116.3
|
|
Raw coal
|
59.1
|
|
|
85.1
|
|
||
Saleable coal
|
96.4
|
|
|
130.1
|
|
||
Total
|
$
|
269.2
|
|
|
$
|
331.5
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Asset Derivative
|
|
Liability Derivative
|
|
Asset Derivative
|
|
Liability Derivative
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Foreign currency option contracts
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
1.1
|
|
|
$
|
—
|
|
Coal contracts related to forecasted sales
|
18.9
|
|
|
(0.8
|
)
|
|
20.1
|
|
|
(0.1
|
)
|
||||
Coal trading contracts
|
71.8
|
|
|
(69.6
|
)
|
|
81.1
|
|
|
(74.2
|
)
|
||||
Total derivatives
|
90.9
|
|
|
(70.4
|
)
|
|
102.3
|
|
|
(74.3
|
)
|
||||
Effect of counterparty netting
|
(69.6
|
)
|
|
69.6
|
|
|
(74.3
|
)
|
|
74.3
|
|
||||
Variation margin (held) posted
|
(16.8
|
)
|
|
—
|
|
|
(22.1
|
)
|
|
—
|
|
||||
Net derivatives and margin as classified in the balance sheets
|
$
|
4.5
|
|
|
$
|
(0.8
|
)
|
|
$
|
5.9
|
|
|
$
|
—
|
|
|
Three Months Ended March 31, 2020
|
||||||||||
|
Total loss recognized in income
|
|
(Loss) gain realized in income on derivatives
|
|
Unrealized gain (loss) recognized in income on derivatives
|
||||||
Financial Instrument
|
|
|
|||||||||
|
(Dollars in millions)
|
||||||||||
Foreign currency option contracts
|
$
|
(0.9
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
0.1
|
|
Coal contracts related to forecasted sales
|
(8.6
|
)
|
|
(6.4
|
)
|
|
(2.2
|
)
|
|||
Coal trading contracts
|
(0.1
|
)
|
|
4.1
|
|
|
(4.2
|
)
|
|||
Total
|
$
|
(9.6
|
)
|
|
$
|
(3.3
|
)
|
|
$
|
(6.3
|
)
|
|
|||||||||||
|
Three Months Ended March 31, 2019
|
||||||||||
|
Total (loss) gain recognized in income
|
|
(Loss) gain realized in income on derivatives
|
|
Unrealized gain recognized in income on derivatives
|
||||||
Financial Instrument
|
|
|
|||||||||
|
(Dollars in millions)
|
||||||||||
Foreign currency option contracts
|
$
|
(1.1
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
0.2
|
|
Coal contracts related to forecasted sales
|
50.7
|
|
|
10.9
|
|
|
39.8
|
|
|||
Coal trading contracts
|
(1.1
|
)
|
|
(4.8
|
)
|
|
3.7
|
|
|||
Total
|
$
|
48.5
|
|
|
$
|
4.8
|
|
|
$
|
43.7
|
|
|
March 31, 2020
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Foreign currency option contracts
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
Coal contracts related to forecasted sales
|
—
|
|
|
20.0
|
|
|
—
|
|
|
20.0
|
|
||||
Coal trading contracts
|
—
|
|
|
(16.5
|
)
|
|
—
|
|
|
(16.5
|
)
|
||||
Equity securities
|
—
|
|
|
—
|
|
|
4.0
|
|
|
4.0
|
|
||||
Total net financial assets
|
$
|
—
|
|
|
$
|
3.7
|
|
|
$
|
4.0
|
|
|
$
|
7.7
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2019
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Foreign currency option contracts
|
$
|
—
|
|
|
$
|
1.1
|
|
|
$
|
—
|
|
|
$
|
1.1
|
|
Coal contracts related to forecasted sales
|
—
|
|
|
21.2
|
|
|
—
|
|
|
21.2
|
|
||||
Coal trading contracts
|
—
|
|
|
(16.4
|
)
|
|
—
|
|
|
(16.4
|
)
|
||||
Equity securities
|
—
|
|
|
—
|
|
|
4.0
|
|
|
4.0
|
|
||||
Total net financial assets
|
$
|
—
|
|
|
$
|
5.9
|
|
|
$
|
4.0
|
|
|
$
|
9.9
|
|
•
|
Foreign currency option contracts are valued utilizing inputs obtained in quoted public markets (Level 2) except when credit and non-performance risk is considered to be a significant input, then the Company classifies such contracts as Level 3.
|
•
|
Coal contracts related to forecasted sales and coal trading contracts are generally valued based on unadjusted quoted prices in active markets (Level 1) or a valuation that is corroborated by the use of market-based pricing (Level 2) except when credit and non-performance risk is considered to be a significant input (greater than 10% of fair value), then the Company classifies as Level 3.
|
•
|
Investments in equity securities are based on observed prices in an inactive market (Level 3).
|
•
|
Cash and cash equivalents, restricted cash, accounts receivable, including those within the Company’s accounts receivable securitization program, notes receivable and accounts payable have carrying values which approximate fair value due to the short maturity or the liquid nature of these instruments.
|
•
|
Long-term debt fair value estimates are based on observed prices for securities with an active trading market when available (Level 2), and otherwise on estimated borrowing rates to discount the cash flows to their present value (Level 3).
|
|
March 31, 2020
|
December 31, 2019
|
|||||
|
(Dollars in millions)
|
||||||
Total debt at par value
|
$
|
1,360.1
|
|
|
$
|
1,367.2
|
|
Less: Unamortized debt issuance costs and original issue discount
|
(53.2
|
)
|
|
(56.4
|
)
|
||
Net carrying amount
|
$
|
1,306.9
|
|
|
$
|
1,310.8
|
|
|
|
|
|
||||
Estimated fair value
|
$
|
793.5
|
|
|
$
|
1,271.1
|
|
|
March 31, 2020
|
||||||||||
|
Assets
|
|
Liabilities
|
|
Net Total
|
||||||
|
(Dollars in millions)
|
||||||||||
Coal supply agreements
|
$
|
16.8
|
|
|
$
|
(19.9
|
)
|
|
$
|
(3.1
|
)
|
Take-or-pay contracts
|
—
|
|
|
(32.9
|
)
|
|
(32.9
|
)
|
|||
Total
|
$
|
16.8
|
|
|
$
|
(52.8
|
)
|
|
$
|
(36.0
|
)
|
|
|
|
|
|
|
||||||
Balance sheet classification:
|
|
|
|
|
|
||||||
Investments and other assets
|
$
|
16.8
|
|
|
$
|
—
|
|
|
$
|
16.8
|
|
Accounts payable and accrued expenses
|
—
|
|
|
(5.9
|
)
|
|
(5.9
|
)
|
|||
Other noncurrent liabilities
|
—
|
|
|
(46.9
|
)
|
|
(46.9
|
)
|
|||
Total
|
$
|
16.8
|
|
|
$
|
(52.8
|
)
|
|
$
|
(36.0
|
)
|
|
|
|
|
|
|
||||||
|
December 31, 2019
|
||||||||||
|
Assets
|
|
Liabilities
|
|
Net Total
|
||||||
|
(Dollars in millions)
|
||||||||||
Coal supply agreements
|
$
|
20.7
|
|
|
$
|
(21.4
|
)
|
|
$
|
(0.7
|
)
|
Take-or-pay contracts
|
—
|
|
|
(40.0
|
)
|
|
(40.0
|
)
|
|||
Total
|
$
|
20.7
|
|
|
$
|
(61.4
|
)
|
|
$
|
(40.7
|
)
|
|
|
|
|
|
|
||||||
Balance sheet classification:
|
|
|
|
|
|
||||||
Investments and other assets
|
$
|
20.7
|
|
|
$
|
—
|
|
|
$
|
20.7
|
|
Accounts payable and accrued expenses
|
—
|
|
|
(8.4
|
)
|
|
(8.4
|
)
|
|||
Other noncurrent liabilities
|
—
|
|
|
(53.0
|
)
|
|
(53.0
|
)
|
|||
Total
|
$
|
20.7
|
|
|
$
|
(61.4
|
)
|
|
$
|
(40.7
|
)
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Land and coal interests
|
$
|
4,025.4
|
|
|
$
|
4,022.4
|
|
Buildings and improvements
|
557.6
|
|
|
547.9
|
|
||
Machinery and equipment
|
1,534.4
|
|
|
1,518.6
|
|
||
Less: Accumulated depreciation, depletion and amortization
|
(1,509.6
|
)
|
|
(1,409.8
|
)
|
||
Property, plant, equipment and mine development, net
|
$
|
4,607.8
|
|
|
$
|
4,679.1
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Operating lease cost:
|
|
|
|
||||
Operating lease cost
|
$
|
8.6
|
|
|
$
|
15.5
|
|
Short-term lease cost
|
9.9
|
|
|
8.3
|
|
||
Variable lease cost
|
1.0
|
|
|
6.0
|
|
||
Sublease income
|
—
|
|
|
(1.4
|
)
|
||
Total operating lease cost
|
$
|
19.5
|
|
|
$
|
28.4
|
|
|
|
|
|
||||
Finance lease cost:
|
|
|
|
||||
Amortization of right-of-use assets
|
$
|
3.4
|
|
|
$
|
4.1
|
|
Interest on lease liabilities
|
0.2
|
|
|
0.5
|
|
||
Total finance lease cost
|
$
|
3.6
|
|
|
$
|
4.6
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Operating leases:
|
|
|
|
||||
Operating lease right-of-use assets
|
$
|
78.0
|
|
|
$
|
82.4
|
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
25.2
|
|
|
$
|
29.6
|
|
Operating lease liabilities, less current portion
|
44.5
|
|
|
52.8
|
|
||
Total operating lease liabilities
|
$
|
69.7
|
|
|
$
|
82.4
|
|
|
|
|
|
||||
Finance leases:
|
|
|
|
||||
Property, plant, equipment and mine development
|
$
|
88.0
|
|
|
$
|
89.6
|
|
Accumulated depreciation
|
(47.6
|
)
|
|
(45.9
|
)
|
||
Property, plant, equipment and mine development, net
|
$
|
40.4
|
|
|
$
|
43.7
|
|
|
|
|
|
||||
Current portion of long-term debt
|
$
|
8.6
|
|
|
$
|
14.3
|
|
Long-term debt, less current portion
|
0.5
|
|
|
0.9
|
|
||
Total finance lease liabilities
|
$
|
9.1
|
|
|
$
|
15.2
|
|
|
|
|
|
||||
Weighted average remaining lease term (years)
|
|
|
|
||||
Operating leases
|
3.7
|
|
|
|
|||
Finance leases
|
14.8
|
|
|
|
|||
|
|
|
|
||||
Weighted average discount rate
|
|
|
|
||||
Operating leases
|
7.3
|
%
|
|
|
|||
Finance leases
|
6.0
|
%
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows for operating leases
|
$
|
12.8
|
|
|
$
|
24.1
|
|
Operating cash flows for finance leases
|
0.2
|
|
|
0.7
|
|
||
Financing cash flows for finance leases
|
5.8
|
|
|
7.3
|
|
||
|
|
|
|
||||
Right-of-use assets obtained in exchange for lease obligations:
|
|
|
|
||||
Operating leases
|
1.3
|
|
|
0.5
|
|
||
Finance leases
|
0.1
|
|
|
—
|
|
Period Ending December 31,
|
|
Operating Leases
|
|
Finance Leases
|
||||
|
|
(Dollars in millions)
|
||||||
2020
|
|
$
|
21.8
|
|
|
$
|
0.7
|
|
2021
|
|
22.6
|
|
|
1.0
|
|
||
2022
|
|
13.5
|
|
|
0.7
|
|
||
2023
|
|
11.6
|
|
|
0.5
|
|
||
2024
|
|
4.7
|
|
|
0.5
|
|
||
2025 and thereafter
|
|
7.3
|
|
|
8.2
|
|
||
Total lease payments
|
|
81.5
|
|
|
11.6
|
|
||
Less imputed interest
|
|
(11.8
|
)
|
|
(2.5
|
)
|
||
Total lease liabilities
|
|
$
|
69.7
|
|
|
$
|
9.1
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
6.000% Senior Secured Notes due March 2022
|
$
|
459.0
|
|
|
$
|
459.0
|
|
6.375% Senior Secured Notes due March 2025
|
500.0
|
|
|
500.0
|
|
||
Senior Secured Term Loan due 2025, net of original issue discount
|
391.1
|
|
|
392.1
|
|
||
Finance lease obligations
|
9.1
|
|
|
15.2
|
|
||
Less: Debt issuance costs
|
(52.3
|
)
|
|
(55.5
|
)
|
||
|
1,306.9
|
|
|
1,310.8
|
|
||
Less: Current portion of long-term debt
|
12.6
|
|
|
18.3
|
|
||
Long-term debt
|
$
|
1,294.3
|
|
|
$
|
1,292.5
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Service cost for benefits earned
|
$
|
—
|
|
|
$
|
0.5
|
|
Interest cost on projected benefit obligation
|
7.0
|
|
|
8.3
|
|
||
Expected return on plan assets
|
(7.4
|
)
|
|
(7.8
|
)
|
||
Net periodic pension (benefit) cost
|
$
|
(0.4
|
)
|
|
$
|
1.0
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Service cost for benefits earned
|
$
|
1.1
|
|
|
$
|
1.2
|
|
Interest cost on accumulated postretirement benefit obligation
|
5.5
|
|
|
6.3
|
|
||
Expected return on plan assets
|
(0.4
|
)
|
|
(0.1
|
)
|
||
Amortization of prior service credit
|
(2.2
|
)
|
|
(2.2
|
)
|
||
Net periodic postretirement benefit cost
|
$
|
4.0
|
|
|
$
|
5.2
|
|
|
Foreign Currency Translation
Adjustment
|
|
Prior Service
Credit (Cost) Associated
with
Postretirement
Plans
|
|
Total Accumulated Other Comprehensive Income
|
||||||
|
(Dollars in millions)
|
||||||||||
December 31, 2019
|
$
|
(4.3
|
)
|
|
$
|
35.9
|
|
|
$
|
31.6
|
|
Reclassification from other comprehensive income to earnings
|
—
|
|
|
(2.2
|
)
|
|
(2.2
|
)
|
|||
Current period change
|
(6.8
|
)
|
|
—
|
|
|
(6.8
|
)
|
|||
March 31, 2020
|
$
|
(11.1
|
)
|
|
$
|
33.7
|
|
|
$
|
22.6
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(In millions, except per share data)
|
||||||
EPS numerator:
|
|
|
|
||||
(Loss) income from continuing operations, net of income taxes
|
$
|
(129.3
|
)
|
|
$
|
133.3
|
|
Less: Net (loss) income attributable to noncontrolling interests
|
(1.8
|
)
|
|
5.7
|
|
||
(Loss) income from continuing operations attributable to common stockholders
|
(127.5
|
)
|
|
127.6
|
|
||
Loss from discontinued operations, net of income taxes
|
(2.2
|
)
|
|
(3.4
|
)
|
||
Net (loss) income attributable to common stockholders
|
$
|
(129.7
|
)
|
|
$
|
124.2
|
|
|
|
|
|
||||
EPS denominator:
|
|
|
|
||||
Weighted average shares outstanding — basic
|
97.2
|
|
|
108.5
|
|
||
Impact of dilutive securities
|
—
|
|
|
2.0
|
|
||
Weighted average shares outstanding — diluted
|
97.2
|
|
|
110.5
|
|
||
|
|
|
|
||||
Basic EPS attributable to common stockholders:
|
|
|
|
||||
(Loss) income from continuing operations
|
$
|
(1.31
|
)
|
|
$
|
1.18
|
|
Loss from discontinued operations
|
(0.02
|
)
|
|
(0.04
|
)
|
||
Net (loss) income attributable to common stockholders
|
$
|
(1.33
|
)
|
|
$
|
1.14
|
|
|
|
|
|
||||
Diluted EPS attributable to common stockholders:
|
|
|
|
||||
(Loss) income from continuing operations
|
$
|
(1.31
|
)
|
|
$
|
1.15
|
|
Loss from discontinued operations
|
(0.02
|
)
|
|
(0.03
|
)
|
||
Net (loss) income attributable to common stockholders
|
$
|
(1.33
|
)
|
|
$
|
1.12
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Revenues:
|
|
|
|
||||
Seaborne Thermal Mining
|
$
|
201.1
|
|
|
$
|
251.0
|
|
Seaborne Metallurgical Mining
|
193.2
|
|
|
324.5
|
|
||
Powder River Basin Mining
|
266.6
|
|
|
287.3
|
|
||
Other U.S. Thermal Mining
|
192.3
|
|
|
334.8
|
|
||
Corporate and Other
|
(7.0
|
)
|
|
53.0
|
|
||
Total
|
$
|
846.2
|
|
|
$
|
1,250.6
|
|
|
|
|
|
||||
Adjusted EBITDA:
|
|
|
|
||||
Seaborne Thermal Mining
|
$
|
55.1
|
|
|
$
|
94.7
|
|
Seaborne Metallurgical Mining
|
(32.7
|
)
|
|
85.8
|
|
||
Powder River Basin Mining
|
25.4
|
|
|
36.4
|
|
||
Other U.S. Thermal Mining
|
38.5
|
|
|
75.9
|
|
||
Corporate and Other
|
(49.5
|
)
|
|
(38.7
|
)
|
||
Total
|
$
|
36.8
|
|
|
$
|
254.1
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
(Loss) income from continuing operations, net of income taxes
|
$
|
(129.3
|
)
|
|
$
|
133.3
|
|
Depreciation, depletion and amortization
|
106.0
|
|
|
172.5
|
|
||
Asset retirement obligation expenses
|
17.6
|
|
|
13.8
|
|
||
Restructuring charges
|
6.5
|
|
|
0.2
|
|
||
Transaction costs related to joint ventures
|
4.2
|
|
|
—
|
|
||
Provision for North Goonyella equipment loss
|
—
|
|
|
24.7
|
|
||
North Goonyella insurance recovery - equipment (1)
|
—
|
|
|
(91.1
|
)
|
||
Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates
|
(0.7
|
)
|
|
—
|
|
||
Interest expense
|
33.1
|
|
|
35.8
|
|
||
Interest income
|
(3.1
|
)
|
|
(8.3
|
)
|
||
Unrealized losses (gains) on economic hedges
|
2.2
|
|
|
(39.8
|
)
|
||
Unrealized gains on non-coal trading derivative contracts
|
(0.1
|
)
|
|
(0.2
|
)
|
||
Take-or-pay contract-based intangible recognition
|
(2.6
|
)
|
|
(5.6
|
)
|
||
Income tax provision
|
3.0
|
|
|
18.8
|
|
||
Total Adjusted EBITDA
|
$
|
36.8
|
|
|
$
|
254.1
|
|
(1)
|
As described in Note 15. “Other Events,” the Company recorded a $125.0 million insurance recovery during the three months ended March 31, 2019 related to losses incurred at its North Goonyella Mine. Of this amount, Adjusted EBITDA excludes an allocated amount applicable to total equipment losses recognized at the time of the insurance recovery settlement, which consisted of $24.7 million and $66.4 million recognized during the three months ended March 31, 2019 and the year ended December 31, 2018, respectively. The remaining $33.9 million, applicable to incremental costs and business interruption losses, is included in Adjusted EBITDA for the three months ended March 31, 2019.
|
•
|
our profitability depends upon the prices we receive for our coal;
|
•
|
if a substantial number of our long-term coal supply agreements terminate, or if the pricing, volumes or other elements of those agreements materially adjust, our revenues and operating profits could suffer if we are unable to find alternate buyers willing to purchase our coal on comparable terms to those in our contracts;
|
•
|
the loss of, or significant reduction in, purchases by our largest customers could adversely affect our revenues;
|
•
|
our trading and hedging activities do not cover certain risks and may expose us to earnings volatility and other risks;
|
•
|
our operating results could be adversely affected by unfavorable economic and financial market conditions;
|
•
|
our ability to collect payments from our customers could be impaired if their creditworthiness or contractual performance deteriorates;
|
•
|
risks inherent to mining could increase the cost of operating our business, and events and conditions that could occur during the course of our mining operations could have a material adverse impact on us;
|
•
|
if transportation for our coal becomes unavailable or uneconomic for our customers, our ability to sell coal may be diminished;
|
•
|
a decrease in the availability or increase in costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives and tires could decrease our anticipated profitability;
|
•
|
take-or-pay arrangements within the coal industry could unfavorably affect our profitability;
|
•
|
an inability of trading, brokerage, mining or freight counterparties to fulfill the terms of their contracts with us could reduce our profitability;
|
•
|
we may not recover our investments in our mining, exploration and other assets, which may require us to recognize impairment charges related to those assets;
|
•
|
our ability to operate our company effectively could be impaired if we lose key personnel or fail to attract qualified personnel;
|
•
|
we could be negatively affected if we fail to maintain satisfactory labor relations;
|
•
|
we could be adversely affected if we fail to appropriately provide financial assurances for our obligations;
|
•
|
our mining operations are extensively regulated, which imposes significant costs on us, and future regulations and developments could increase those costs or limit our ability to produce coal;
|
•
|
our operations may impact the environment or cause exposure to hazardous substances, and our properties may have environmental contamination, which could result in material liabilities to us;
|
•
|
we may be unable to obtain, renew or maintain permits necessary for our operations, or we may be unable to obtain, renew or maintain such permits without conditions on the manner in which we run our operations, which would reduce our production, cash flows and profitability;
|
•
|
our mining operations are subject to extensive forms of taxation, which imposes significant costs on us, and future regulations and developments could increase those costs or limit our ability to produce coal competitively;
|
•
|
if the assumptions underlying our asset retirement obligations for reclamation and mine closures are materially inaccurate, our costs could be significantly greater than anticipated;
|
•
|
our future success depends upon our ability to continue acquiring and developing coal reserves that are economically recoverable;
|
•
|
we face numerous uncertainties in estimating our economically recoverable coal reserves and inaccuracies in our estimates could result in lower than expected revenues, higher than expected costs and decreased profitability;
|
•
|
our global operations increase our exposure to risks unique to international mining and trading operations;
|
•
|
our proposed joint venture with Arch Coal, Inc. (Arch) may not be completed;
|
•
|
joint ventures, partnerships or non-managed operations may not be successful and may not comply with our operating standards;
|
•
|
we may undertake further repositioning plans that would require additional charges;
|
•
|
we could be exposed to significant liability, reputational harm, loss of revenue, increased costs or other risks if we sustain cyber-attacks or other security breaches that disrupt our operations or result in the dissemination of proprietary or confidential information about us, our employees, our customers or other third-parties;
|
•
|
our business, results of operations, financial condition and prospects could be materially and adversely affected by the recent COVID-19 pandemic and the related effects on public health, or by other global events;
|
•
|
our expenditures for postretirement benefit obligations could be materially higher than we have predicted if our underlying assumptions prove to be incorrect;
|
•
|
concerns about the impacts of coal combustion on global climate are increasingly leading to consequences that have affected and could continue to affect demand for our products or our securities and our ability to produce, including increased governmental regulation of coal combustion and unfavorable investment decisions by electricity generators;
|
•
|
numerous activist groups are devoting substantial resources to anti-coal activities to minimize or eliminate the use of coal as a source of electricity generation, domestically and internationally, thereby further reducing the demand and pricing for coal, and potentially materially and adversely impacting our future financial results, liquidity and growth prospects;
|
•
|
our financial performance could be adversely affected by our indebtedness;
|
•
|
despite our indebtedness, we may still be able to incur substantially more debt, including secured debt, which could further increase the risks associated with our indebtedness;
|
•
|
the terms of our indenture governing our senior secured notes and the agreements and instruments governing our other indebtedness impose restrictions that may limit our operating and financial flexibility;
|
•
|
the number and quantity of viable financing alternatives available to us may be significantly impacted by unfavorable lending and investment policies by financial institutions and insurance companies associated with concerns about environmental impacts of coal combustion, and negative views around our efforts with respect to environmental and social matters and related governance considerations could harm the perception of our company by certain investors or result in the exclusion of our securities from consideration by those investors;
|
•
|
the price of our securities may be volatile;
|
•
|
our Common Stock is subject to dilution and may be subject to further dilution in the future;
|
•
|
there may be circumstances in which the interests of a significant stockholder could be in conflict with other stakeholders’ interests;
|
•
|
the payment of dividends on our stock or repurchases of our stock is dependent on a number of factors, and future payments and repurchases cannot be assured;
|
•
|
we may not be able to fully utilize our deferred tax assets;
|
•
|
acquisitions and divestitures are a potentially important part of our long-term strategy, subject to our investment criteria, and involve a number of risks, any of which could cause us not to realize the anticipated benefits;
|
•
|
our certificate of incorporation and by-laws include provisions that may discourage a takeover attempt;
|
•
|
diversity in interpretation and application of accounting literature in the mining industry may impact our reported financial results; and
|
•
|
other risks and factors detailed in this report, including, but not limited to, those discussed in “Legal Proceedings,” set forth in Part II, Item 1 and in “Risk Factors,” set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q.
|
|
|
High
|
|
Low
|
|
Average
|
|
March 31, 2020
|
|
April 30, 2020
|
||||||||||
Premium HCC (1)
|
|
$
|
163.40
|
|
|
$
|
139.00
|
|
|
$
|
154.88
|
|
|
$
|
145.50
|
|
|
$
|
108.80
|
|
Premium PCI coal (1)
|
|
$
|
102.80
|
|
|
$
|
85.75
|
|
|
$
|
94.53
|
|
|
$
|
85.75
|
|
|
$
|
67.20
|
|
Newcastle index thermal coal (1)
|
|
$
|
73.78
|
|
|
$
|
64.80
|
|
|
$
|
67.70
|
|
|
$
|
69.41
|
|
|
$
|
50.76
|
|
API 5 thermal coal (1)
|
|
$
|
57.90
|
|
|
$
|
52.49
|
|
|
$
|
54.83
|
|
|
$
|
54.30
|
|
|
$
|
40.50
|
|
PRB 8,800 Btu/Lb coal (2)
|
|
$
|
12.10
|
|
|
$
|
12.00
|
|
|
$
|
12.02
|
|
|
$
|
12.00
|
|
|
$
|
12.00
|
|
Illinois Basin 11,500 Btu/Lb coal (2)
|
|
$
|
33.80
|
|
|
$
|
31.15
|
|
|
$
|
32.62
|
|
|
$
|
31.15
|
|
|
$
|
31.15
|
|
(1)
|
Prices expressed per tonne.
|
(2)
|
Prices expressed per ton.
|
|
Three Months Ended
|
|
Increase (Decrease)
|
||||||||
|
March 31,
|
|
to Volumes
|
||||||||
|
2020
|
|
2019
|
|
Tons
|
|
%
|
||||
|
(Tons in millions)
|
|
|
||||||||
Seaborne Thermal Mining
|
4.6
|
|
|
4.5
|
|
|
0.1
|
|
|
2
|
%
|
Seaborne Metallurgical Mining
|
2.0
|
|
|
2.3
|
|
|
(0.3
|
)
|
|
(13
|
)%
|
Powder River Basin Mining
|
23.5
|
|
|
25.3
|
|
|
(1.8
|
)
|
|
(7
|
)%
|
Other U.S. Thermal Mining
|
4.9
|
|
|
7.9
|
|
|
(3.0
|
)
|
|
(38
|
)%
|
Total tons sold from mining segments
|
35.0
|
|
|
40.0
|
|
|
(5.0
|
)
|
|
(13
|
)%
|
Corporate and Other
|
0.6
|
|
|
0.5
|
|
|
0.1
|
|
|
20
|
%
|
Total tons sold
|
35.6
|
|
|
40.5
|
|
|
(4.9
|
)
|
|
(12
|
)%
|
|
Three Months Ended
|
|
(Decrease)
|
|||||||||||
|
March 31,
|
|
Increase
|
|||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
Revenues per Ton - Mining Operations (1)
|
|
|
|
|
|
|
|
|||||||
Seaborne Thermal
|
$
|
44.10
|
|
|
$
|
56.24
|
|
|
$
|
(12.14
|
)
|
|
(22
|
)%
|
Seaborne Metallurgical
|
95.65
|
|
|
142.33
|
|
|
(46.68
|
)
|
|
(33
|
)%
|
|||
Powder River Basin
|
11.36
|
|
|
11.35
|
|
|
0.01
|
|
|
—
|
%
|
|||
Other U.S. Thermal
|
39.25
|
|
|
42.21
|
|
|
(2.96
|
)
|
|
(7
|
)%
|
|||
Costs per Ton - Mining Operations (1)(2)
|
|
|
|
|
|
|
|
|||||||
Seaborne Thermal
|
$
|
32.03
|
|
|
$
|
35.03
|
|
|
$
|
(3.00
|
)
|
|
(9
|
)%
|
Seaborne Metallurgical (3)
|
111.82
|
|
|
104.69
|
|
|
7.13
|
|
|
7
|
%
|
|||
Powder River Basin
|
10.28
|
|
|
9.91
|
|
|
0.37
|
|
|
4
|
%
|
|||
Other U.S. Thermal
|
31.39
|
|
|
32.65
|
|
|
(1.26
|
)
|
|
(4
|
)%
|
|||
Adjusted EBITDA Margin per Ton - Mining Operations (1)(2)
|
|
|
|
|
|
|
|
|||||||
Seaborne Thermal
|
$
|
12.07
|
|
|
$
|
21.21
|
|
|
$
|
(9.14
|
)
|
|
(43
|
)%
|
Seaborne Metallurgical (3)
|
(16.17
|
)
|
|
37.64
|
|
|
(53.81
|
)
|
|
(143
|
)%
|
|||
Powder River Basin
|
1.08
|
|
|
1.44
|
|
|
(0.36
|
)
|
|
(25
|
)%
|
|||
Other U.S. Thermal
|
7.86
|
|
|
9.56
|
|
|
(1.70
|
)
|
|
(18
|
)%
|
(1)
|
This is an operating/statistical measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
|
(2)
|
Includes revenue-based production taxes and royalties; excludes depreciation, depletion and amortization; asset retirement obligation expenses; selling and administrative expenses; restructuring charges; asset impairment; provision for North Goonyella equipment loss and related insurance recovery; amortization of take-or-pay contract-based intangibles; and certain other costs related to post-mining activities.
|
(3)
|
Costs incurred at the North Goonyella Mine from January 1, 2020 forward are included within the Corporate and Other segment. Costs incurred at the North Goonyella Mine during the three months ended March 31, 2019 remain within the Seaborne Metallurgical segment and resulted in additional Costs per Ton and lower Adjusted EBITDA Margin per Ton of $1.32.
|
|
Three Months Ended
|
|
Decrease
|
|||||||||||
|
March 31,
|
|
to Revenues
|
|||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
|
(Dollars in millions)
|
|
|
|||||||||||
Seaborne Thermal Mining
|
$
|
201.1
|
|
|
$
|
251.0
|
|
|
$
|
(49.9
|
)
|
|
(20
|
)%
|
Seaborne Metallurgical Mining
|
193.2
|
|
|
324.5
|
|
|
(131.3
|
)
|
|
(40
|
)%
|
|||
Powder River Basin Mining
|
266.6
|
|
|
287.3
|
|
|
(20.7
|
)
|
|
(7
|
)%
|
|||
Other U.S. Thermal Mining
|
192.3
|
|
|
334.8
|
|
|
(142.5
|
)
|
|
(43
|
)%
|
|||
Corporate and Other
|
(7.0
|
)
|
|
53.0
|
|
|
(60.0
|
)
|
|
(113
|
)%
|
|||
Revenues
|
$
|
846.2
|
|
|
$
|
1,250.6
|
|
|
$
|
(404.4
|
)
|
|
(32
|
)%
|
|
Three Months Ended
|
|
Decrease
|
|||||||||||
|
March 31,
|
|
to Segment Adjusted EBITDA
|
|||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
|
(Dollars in millions)
|
|
|
|||||||||||
Seaborne Thermal Mining
|
$
|
55.1
|
|
|
$
|
94.7
|
|
|
$
|
(39.6
|
)
|
|
(42
|
)%
|
Seaborne Metallurgical Mining
|
(32.7
|
)
|
|
85.8
|
|
|
(118.5
|
)
|
|
(138
|
)%
|
|||
Powder River Basin Mining
|
25.4
|
|
|
36.4
|
|
|
(11.0
|
)
|
|
(30
|
)%
|
|||
Other U.S. Thermal Mining
|
38.5
|
|
|
75.9
|
|
|
(37.4
|
)
|
|
(49
|
)%
|
|||
Corporate and Other
|
(49.5
|
)
|
|
(38.7
|
)
|
|
(10.8
|
)
|
|
(28
|
)%
|
|||
Adjusted EBITDA (1)
|
$
|
36.8
|
|
|
$
|
254.1
|
|
|
$
|
(217.3
|
)
|
|
(86
|
)%
|
(1)
|
This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
|
|
Three Months Ended
|
|
(Decrease) Increase
|
|||||||||||
|
March 31,
|
|
to Adjusted EBITDA
|
|||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
|
(Dollars in millions)
|
|
|
|||||||||||
Middlemount (1)
|
$
|
(9.7
|
)
|
|
$
|
3.9
|
|
|
$
|
(13.6
|
)
|
|
(349
|
)%
|
Resource management activities (2)
|
8.0
|
|
|
2.0
|
|
|
6.0
|
|
|
300
|
%
|
|||
Selling and administrative expenses
|
(24.9
|
)
|
|
(36.7
|
)
|
|
11.8
|
|
|
32
|
%
|
|||
Other items, net (3)(4)
|
(22.9
|
)
|
|
(7.9
|
)
|
|
(15.0
|
)
|
|
(190
|
)%
|
|||
Corporate and Other Adjusted EBITDA
|
$
|
(49.5
|
)
|
|
$
|
(38.7
|
)
|
|
$
|
(10.8
|
)
|
|
(28
|
)%
|
(1)
|
Middlemount’s results are before the impact of related changes in deferred tax asset valuation allowance and reserves and amortization of basis difference. Middlemount’s standalone results included (on a 50% attributable basis) aggregate amounts of depreciation, depletion and amortization, asset retirement obligation expenses, net interest expense and income taxes of $4.4 million and $7.5 million during the three months ended March 31, 2020 and 2019, respectively.
|
(2)
|
Includes gains (losses) on certain surplus coal reserve and surface land sales and property management costs and revenues.
|
(3)
|
Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, costs associated with suspended operations including the North Goonyella Mine and expenses related to our other commercial activities.
|
(4)
|
North Goonyella costs incurred from January 1, 2020 forward are included within the Corporate and Other segment. Costs incurred prior to January 1, 2020 remain within the Seaborne Metallurgical segment.
|
|
Three Months Ended
|
|
(Decrease) Increase
|
|||||||||||
|
March 31,
|
|
to Income
|
|||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
|
(Dollars in millions)
|
|
|
|||||||||||
Adjusted EBITDA (1)
|
$
|
36.8
|
|
|
$
|
254.1
|
|
|
$
|
(217.3
|
)
|
|
(86
|
)%
|
Depreciation, depletion and amortization
|
(106.0
|
)
|
|
(172.5
|
)
|
|
66.5
|
|
|
39
|
%
|
|||
Asset retirement obligation expenses
|
(17.6
|
)
|
|
(13.8
|
)
|
|
(3.8
|
)
|
|
(28
|
)%
|
|||
Restructuring charges
|
(6.5
|
)
|
|
(0.2
|
)
|
|
(6.3
|
)
|
|
(3,150
|
)%
|
|||
Transaction costs related to joint ventures
|
(4.2
|
)
|
|
—
|
|
|
(4.2
|
)
|
|
n.m.
|
|
|||
Provision for North Goonyella equipment loss
|
—
|
|
|
(24.7
|
)
|
|
24.7
|
|
|
100
|
%
|
|||
North Goonyella insurance recovery - equipment
|
—
|
|
|
91.1
|
|
|
(91.1
|
)
|
|
(100
|
)%
|
|||
Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
n.m.
|
|
|||
Interest expense
|
(33.1
|
)
|
|
(35.8
|
)
|
|
2.7
|
|
|
8
|
%
|
|||
Interest income
|
3.1
|
|
|
8.3
|
|
|
(5.2
|
)
|
|
(63
|
)%
|
|||
Unrealized (losses) gains on economic hedges
|
(2.2
|
)
|
|
39.8
|
|
|
(42.0
|
)
|
|
(106
|
)%
|
|||
Unrealized gains on non-coal trading derivative contracts
|
0.1
|
|
|
0.2
|
|
|
(0.1
|
)
|
|
(50
|
)%
|
|||
Take-or-pay contract-based intangible recognition
|
2.6
|
|
|
5.6
|
|
|
(3.0
|
)
|
|
(54
|
)%
|
|||
Income tax provision
|
(3.0
|
)
|
|
(18.8
|
)
|
|
15.8
|
|
|
84
|
%
|
|||
(Loss) income from continuing operations, net of income taxes
|
$
|
(129.3
|
)
|
|
$
|
133.3
|
|
|
$
|
(262.6
|
)
|
|
(197
|
)%
|
(1)
|
This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
|
|
Three Months Ended
|
|
Increase (Decrease)
|
|||||||||||
|
March 31,
|
|
to Income
|
|||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
|
(Dollars in millions)
|
|
|
|||||||||||
Seaborne Thermal Mining
|
$
|
(22.2
|
)
|
|
$
|
(23.2
|
)
|
|
$
|
1.0
|
|
|
4
|
%
|
Seaborne Metallurgical Mining
|
(24.8
|
)
|
|
(40.1
|
)
|
|
15.3
|
|
|
38
|
%
|
|||
Powder River Basin Mining
|
(35.2
|
)
|
|
(36.6
|
)
|
|
1.4
|
|
|
4
|
%
|
|||
Other U.S. Thermal Mining
|
(21.4
|
)
|
|
(70.8
|
)
|
|
49.4
|
|
|
70
|
%
|
|||
Corporate and Other
|
(2.4
|
)
|
|
(1.8
|
)
|
|
(0.6
|
)
|
|
(33
|
)%
|
|||
Total
|
$
|
(106.0
|
)
|
|
$
|
(172.5
|
)
|
|
$
|
66.5
|
|
|
39
|
%
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
Seaborne Thermal Mining
|
$
|
1.90
|
|
|
$
|
1.80
|
|
Seaborne Metallurgical Mining
|
2.68
|
|
|
2.58
|
|
||
Powder River Basin Mining
|
0.79
|
|
|
0.81
|
|
||
Other U.S. Thermal Mining
|
1.06
|
|
|
1.53
|
|
|
Three Months Ended
|
|
(Decrease) Increase
|
|||||||||||
|
March 31,
|
|
to Income
|
|||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
|
(Dollars in millions)
|
|
|
|||||||||||
(Loss) income from continuing operations, net of income taxes
|
$
|
(129.3
|
)
|
|
$
|
133.3
|
|
|
$
|
(262.6
|
)
|
|
(197
|
)%
|
Loss from discontinued operations, net of income taxes
|
(2.2
|
)
|
|
(3.4
|
)
|
|
1.2
|
|
|
35
|
%
|
|||
Net (loss) income
|
(131.5
|
)
|
|
129.9
|
|
|
(261.4
|
)
|
|
(201
|
)%
|
|||
Less: Net (loss) income attributable to noncontrolling interests
|
(1.8
|
)
|
|
5.7
|
|
|
(7.5
|
)
|
|
(132
|
)%
|
|||
Net (loss) income attributable to common stockholders
|
$
|
(129.7
|
)
|
|
$
|
124.2
|
|
|
$
|
(253.9
|
)
|
|
(204
|
)%
|
|
Three Months Ended
|
|
(Decrease) Increase
|
|||||||||||
|
March 31,
|
|
to EPS
|
|||||||||||
|
2020
|
|
2019
|
|
$
|
|
%
|
|||||||
Diluted EPS attributable to common stockholders:
|
|
|
|
|
|
|
|
|||||||
(Loss) income from continuing operations
|
$
|
(1.31
|
)
|
|
$
|
1.15
|
|
|
$
|
(2.46
|
)
|
|
(214
|
)%
|
Loss from discontinued operations
|
(0.02
|
)
|
|
(0.03
|
)
|
|
0.01
|
|
|
33
|
%
|
|||
Net (loss) income attributable to common stockholders
|
$
|
(1.33
|
)
|
|
$
|
1.12
|
|
|
$
|
(2.45
|
)
|
|
(219
|
)%
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
(Loss) income from continuing operations, net of income taxes
|
$
|
(129.3
|
)
|
|
$
|
133.3
|
|
Depreciation, depletion and amortization
|
106.0
|
|
|
172.5
|
|
||
Asset retirement obligation expenses
|
17.6
|
|
|
13.8
|
|
||
Restructuring charges
|
6.5
|
|
|
0.2
|
|
||
Transaction costs related to joint ventures
|
4.2
|
|
|
—
|
|
||
Provision for North Goonyella equipment loss
|
—
|
|
|
24.7
|
|
||
North Goonyella insurance recovery - equipment
|
—
|
|
|
(91.1
|
)
|
||
Changes in deferred tax asset valuation allowance and reserves and amortization of basis difference related to equity affiliates
|
(0.7
|
)
|
|
—
|
|
||
Interest expense
|
33.1
|
|
|
35.8
|
|
||
Interest income
|
(3.1
|
)
|
|
(8.3
|
)
|
||
Unrealized losses (gains) on economic hedges
|
2.2
|
|
|
(39.8
|
)
|
||
Unrealized gains on non-coal trading derivative contracts
|
(0.1
|
)
|
|
(0.2
|
)
|
||
Take-or-pay contract-based intangible recognition
|
(2.6
|
)
|
|
(5.6
|
)
|
||
Income tax provision
|
3.0
|
|
|
18.8
|
|
||
Total Adjusted EBITDA
|
$
|
36.8
|
|
|
$
|
254.1
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Operating costs and expenses
|
$
|
779.5
|
|
|
$
|
948.2
|
|
Unrealized gains on non-coal trading derivative contracts
|
0.1
|
|
|
0.2
|
|
||
Take-or-pay contract-based intangible recognition
|
2.6
|
|
|
5.6
|
|
||
North Goonyella insurance recovery - cost recovery and business interruption
|
—
|
|
|
(33.9
|
)
|
||
Net periodic benefit costs, excluding service cost
|
2.8
|
|
|
4.9
|
|
||
Total Reporting Segment Costs
|
$
|
785.0
|
|
|
$
|
925.0
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Seaborne Thermal Mining
|
$
|
146.0
|
|
|
$
|
156.3
|
|
Seaborne Metallurgical Mining
|
225.9
|
|
|
238.7
|
|
||
Powder River Basin Mining
|
241.2
|
|
|
250.9
|
|
||
Other U.S. Thermal Mining
|
153.8
|
|
|
258.9
|
|
||
Corporate and Other
|
18.1
|
|
|
20.2
|
|
||
Total Reporting Segment Costs
|
$
|
785.0
|
|
|
$
|
925.0
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||
|
Seaborne Thermal Mining
|
|
Seaborne Metallurgical Mining
|
|
Powder River Basin Mining
|
|
Other U.S. Thermal Mining
|
||||||||
|
(Amounts in millions, except per ton data)
|
||||||||||||||
Tons sold
|
4.6
|
|
|
2.0
|
|
|
23.5
|
|
|
4.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
201.1
|
|
|
$
|
193.2
|
|
|
$
|
266.6
|
|
|
$
|
192.3
|
|
Reporting Segment Costs
|
146.0
|
|
|
225.9
|
|
|
241.2
|
|
|
153.8
|
|
||||
Adjusted EBITDA
|
55.1
|
|
|
(32.7
|
)
|
|
25.4
|
|
|
38.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenues per Ton
|
$
|
44.10
|
|
|
$
|
95.65
|
|
|
$
|
11.36
|
|
|
$
|
39.25
|
|
Costs per Ton
|
32.03
|
|
|
111.82
|
|
|
10.28
|
|
|
31.39
|
|
||||
Adjusted EBITDA Margin per Ton
|
12.07
|
|
|
(16.17
|
)
|
|
1.08
|
|
|
7.86
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
Seaborne Thermal Mining
|
|
Seaborne Metallurgical Mining
|
|
Powder River Basin Mining
|
|
Other U.S. Thermal Mining
|
||||||||
|
(Amounts in millions, except per ton data)
|
||||||||||||||
Tons sold
|
4.5
|
|
|
2.3
|
|
|
25.3
|
|
|
7.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
251.0
|
|
|
$
|
324.5
|
|
|
$
|
287.3
|
|
|
$
|
334.8
|
|
Reporting Segment Costs
|
156.3
|
|
|
238.7
|
|
|
250.9
|
|
|
258.9
|
|
||||
Adjusted EBITDA
|
94.7
|
|
|
85.8
|
|
|
36.4
|
|
|
75.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenues per Ton
|
$
|
56.24
|
|
|
$
|
142.33
|
|
|
$
|
11.35
|
|
|
$
|
42.21
|
|
Costs per Ton
|
35.03
|
|
|
104.69
|
|
|
9.91
|
|
|
32.65
|
|
||||
Adjusted EBITDA Margin per Ton
|
21.21
|
|
|
37.64
|
|
|
1.44
|
|
|
9.56
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Net cash (used in) provided by operating activities
|
$
|
(4.7
|
)
|
|
$
|
197.6
|
|
Net cash used in investing activities
|
(37.1
|
)
|
|
(38.1
|
)
|
||
Add back: Amount attributable to acquisition of Shoal Creek Mine
|
—
|
|
|
2.4
|
|
||
Free Cash Flow
|
$
|
(41.8
|
)
|
|
$
|
161.9
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Net cash (used in) provided by operating activities
|
$
|
(4.7
|
)
|
|
$
|
197.6
|
|
Net cash used in investing activities
|
(37.1
|
)
|
|
(38.1
|
)
|
||
Net cash used in financing activities
|
(7.9
|
)
|
|
(337.3
|
)
|
||
Net change in cash, cash equivalents and restricted cash
|
(49.7
|
)
|
|
(177.8
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
732.2
|
|
|
1,017.4
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
682.5
|
|
|
$
|
839.6
|
|
|
|
|
|
||||
Net cash (used in) provided by operating activities
|
$
|
(4.7
|
)
|
|
$
|
197.6
|
|
Net cash used in investing activities
|
(37.1
|
)
|
|
(38.1
|
)
|
||
Add back: Amount attributable to acquisition of Shoal Creek Mine
|
—
|
|
|
2.4
|
|
||
Free Cash Flow
|
$
|
(41.8
|
)
|
|
$
|
161.9
|
|
Period
|
|
Total
Number of
Shares
Purchased (1)
|
|
Average
Price Paid per
Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced
Program
|
|
Maximum Dollar
Value that May
Yet Be Used to
Repurchase Shares
Under the Publicly
Announced Program
(In millions)
|
||||||
January 1 through January 31, 2020
|
|
46,872
|
|
|
$
|
9.99
|
|
|
—
|
|
|
$
|
160.5
|
|
February 1 through February 29, 2020
|
|
34,147
|
|
|
8.26
|
|
|
—
|
|
|
160.5
|
|
||
March 1 through March 31, 2020
|
|
6,563
|
|
|
2.90
|
|
|
—
|
|
|
160.5
|
|
||
Total
|
|
87,582
|
|
|
8.79
|
|
|
—
|
|
|
|
(1)
|
Includes shares withheld to cover the withholding taxes upon the vesting of equity awards, which are not part of the Repurchase Program.
|
|
|
|
PEABODY ENERGY CORPORATION
|
|
Date:
|
May 6, 2020
|
By:
|
/s/ MARK A. SPURBECK
|
|
|
|
|
|
Mark A. Spurbeck
|
|
|
|
|
Interim Chief Financial Officer
(On behalf of the registrant and as Principal Financial Officer)
|
1 Year Peabody Energy Chart |
1 Month Peabody Energy Chart |
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