Peabody Energy (BTU) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was $4,946.7 million and Adjusted EBITDA was $1,363.9 million; net income attributable to common stockholders was $759.6 million, down from $1,297.1 million in FY2022.

• Returned $470.7 million to shareholders in 2023 and repurchased over 11% of shares outstanding; Centurion development remained on track for first development coal in April 2024.

Financial highlights

• Q4 net income attributable to common stockholders was $192.0 million, or $1.33 per diluted share, versus $632.0 million and $3.92 in Q4 2022; Adjusted EBITDA was $345.1 million versus $500.5 million.

• FY2023 revenue was $4,946.7 million versus $4,981.9 million; diluted EPS was $5.00 versus $8.31, and Adjusted EBITDA was $1,363.9 million versus $1,844.7 million.

• Operating cash flow from continuing operations was $1,116.3 million for FY2023; cash and cash equivalents were $969.3 million at Dec. 31, 2023.

Outlook and guidance

• Q1 2024 Seaborne Thermal volumes are expected at 3.9 million tons, including 2.5 million export tons; costs are expected at $48–$53 per ton.

• Q1 Seaborne Metallurgical volumes are expected at 1.4 million tons, priced at 65–70% of the premium hard coking coal index; costs are expected at $130–$140 per ton.

• Q1 PRB guidance is ~21 million tons at $13.55 per ton, with costs of ~$11.75–$12.50 per ton; Other U.S. Thermal guidance is ~3.6 million tons at $52.35 per ton, with costs of $41–$45 per ton.

• Centurion first development coal is anticipated in April 2024; the project remained on schedule at year-end.