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(EDGAR Online via COMTEX) -- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. As used in this report, the terms "we," "us," "our," "Peabody" or "the Company" refer to Peabody Energy Corporation or its applicable subsidiary or subsidiaries. Unless otherwise noted herein, disclosures in this Quarterly Report on Form 10-Q relate only to our continuing operations. When used in this filing, the term "ton" refers to short or net tons, equal to 2,000 pounds (907.18 kilograms), while "tonne" refers to metric tons, equal to 2,204.62 pounds (1,000 kilograms). Cautionary Notice Regarding Forward-Looking Statements This report includes statements of our expectations, intentions, plans and beliefs that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are intended to come within the safe harbor protection provided by those sections. These statements relate to future events or our future financial performance, including, without limitation, the section captioned "Outlook" in this Item 2. We use words such as "anticipate," "believe," "expect," "may," "forecast," "project," "should," "estimate," "plan," "outlook," "target," "likely," "will," "to be" or other similar words to identify forward-looking statements. Without limiting the foregoing, all statements relating to our future operating results, anticipated capital expenditures, future cash flows and borrowings, and sources of funding are forward-looking statements and speak only as of the date of this report. These forward-looking statements are based on numerous assumptions that we believe are reasonable, but are subject to a wide range of uncertainties and business risks, and actual results may differ materially from those discussed in these statements. These factors are difficult to accurately predict and may be beyond our control. Factors that could affect our results or an investment in our securities include, but are not limited to: the combined risks associated with our recent financial results and market conditions, additional collateral demands, and potential Credit Agreement (as defined below) noncompliance raise substantial doubt about whether we will meet our obligations as they become due and our ability to continue as a going concern; 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 certificate of incorporation and by-laws include provisions that may discourage a takeover attempt;

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Three and Nine Months Ended September 30, 2020 Compared to the Three and Nine Months Ended September 30, 2019

                                                                                                               September 30,
                                                          High               Low              Average               2020
        Premium HCC (1)                               $  138.10          $  106.30          $  114.23          $    138.10
        Premium PCI coal (1)                              82.15              65.75              70.58                82.15
        Newcastle index thermal coal (1)                  59.97              47.99              51.54                57.81
        API 5 thermal coal (1)                            41.61              35.16              36.91                41.00
        PRB 8,800 Btu/Lb coal (2)                         11.90              11.55              11.64                11.60
        Illinois Basin 11,500 Btu/Lb coal (2)             29.50              27.75              28.53                29.00
        (1)  Prices expressed per tonne.
        (2)  Prices expressed per ton.

Nov 09, 2020


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