Peabody Energy (BTU) Q2 2024 earnings summary

Executive summary

• Net income attributable to common stockholders was $199.4 million ($1.42 per diluted share) for Q2 2024, up 11% year-over-year, driven by a $109.5 million insurance recovery and lower operating costs, despite lower revenue from weaker coal pricing and volumes.

• Adjusted EBITDA for Q2 2024 was $309.7 million, including $80.8 million from an insurance settlement, down 14% year-over-year; first half 2024 Adjusted EBITDA was $470.2 million, down 37%.

• Second quarter 2024 results met forecasts, with a strong safety record and five mines reporting zero injuries.

• Centurion hard coking coal project progressed ahead of schedule, with first coal mined in June and second continuous miner commissioned in July; first shipments expected in Q4 2024.

• Announced $100 million in additional share repurchases and declared a $0.075 per share dividend.

Financial highlights

• Q2 2024 revenue was $1,042.0 million, down 18% year-over-year; first half 2024 revenue was $2,025.6 million, down 23%.

• Operating profit for Q2 2024 was $233.9 million, compared to $260.8 million in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were $621.7 million after the Wards Well acquisition and $113 million in income tax payments; total liquidity was $940.8 million.

• Net income attributable to common stockholders for the first half of 2024 was $239.0 million, down 47% year-over-year.

• Net cash provided by operating activities for the first half of 2024 was $126.8 million, down from $739.7 million in the prior year.

Outlook and guidance

• Full-year guidance reduced due to high customer inventories and low natural gas prices, but Seaborne Thermal volume guidance increased to 15.7–16.2 million tons; Seaborne Metallurgical volume lowered to 7.2–7.6 million tons due to geological and logistics issues.

• PRB U.S. Thermal full-year volume lowered to 75–82 million tons; Q3 volume expected at 21.5 million tons at $11.50–$12.50/ton.

• Q3 expectations: Seaborne Thermal shipments of 4 million tons at $48–$53/ton, Seaborne Met 1.7 million tons at $120–$130/ton, and Other U.S. Thermal 4 million tons at $44–$48/ton.

• Approximately 100 million tons of U.S. thermal coal priced and committed for 2024, with flexibility to increase volumes if demand warrants.

• First coal shipments from the Centurion Mine expected in Q4 2024; longwall production targeted for Q1 2026.