On August 1, 2024, Peabody Energy Corp (BTU, Financial) released its 8-K filing for the quarter ended June 30, 2024. The company reported net income attributable to common stockholders of $199.4 million, or $1.42 per diluted share, surpassing the analyst estimate of $1.39 per share. Revenue for the quarter stood at $1,012.47 million, aligning with the estimated revenue.
Peabody Energy Corp is a producer of metallurgical and thermal coal. It also markets and brokers coal, both as principal and agent, and trades coal and freight-related contracts. The company operates in the following segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other. The Powder River Basin segment generates the majority of the revenue for the company. A substantial part of its overall revenue is generated from its customers in the United States, with the rest from Japan, China, Australia, Taiwan, and other regions.
Performance and Challenges
Peabody Energy Corp's performance in Q2 2024 was marked by significant achievements and some challenges. The company reported Adjusted EBITDA of $309.7 million, which included an $80.8 million insurance settlement. This compares to $358.2 million in the prior year quarter. The company faced challenges in maintaining cost discipline across its segments, but it managed to achieve results in line with expectations.
Financial Achievements
Peabody Energy Corp's financial achievements in Q2 2024 are noteworthy. The company announced an additional $100 million for share repurchases and declared a dividend on common stock of $0.075 per share. The development at Centurion remains on plan, with initial underground development rates exceeding expectations. The company reached first development coal in the second quarter and expects to ship to customers beginning in the fourth quarter of 2024.
Income Statement Highlights
Key details from the Income Statement include:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $199.4 million | $179.2 million |
| Earnings Per Share (EPS) | $1.42 | $1.15 |
| Adjusted EBITDA | $309.7 million | $358.2 million |
Segment Performance
Peabody Energy Corp's segment performance was robust across various divisions:
| Segment | Adjusted EBITDA (in millions) | Revenue per Ton | Costs per Ton |
|---|---|---|---|
| Seaborne Thermal | $104.4 | $74.43 | $49.14 |
| Seaborne Metallurgical | $143.6 | $149.29 | $117.47 |
| Powder River Basin | $17.8 | $14.02 | $12.89 |
| Other U.S. Thermal | $35.4 | $55.21 | $45.53 |
Commentary and Analysis
"Our operations performed safely, while achieving results in-line with expectations across all four segments. With a strong outlook for free cash flow in the second half of 2024, we have committed $100 million for additional share buybacks," said Peabody President and Chief Executive Officer Jim Grech.
Peabody Energy Corp's performance in Q2 2024 demonstrates its resilience and strategic focus. The company's ability to manage costs and achieve significant milestones, such as the development at Centurion, positions it well for future growth. The additional share repurchases and dividend declaration further underscore the company's commitment to returning value to shareholders.
For more detailed insights and the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Peabody Energy Corp for further details.
