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Fourth Quarter 2019 Results
Fourth quarter 2019 revenues totaled $1.12 billion compared to $1.40
billion in the prior year, primarily driven by 17 percent lower seaborne
metallurgical coal volumes and reduced pricing.
Depreciation, depletion, and amortization (DD&A) declined 31 percent
from the prior year to $121.6 million, primarily due to the elimination
of Kayenta Mine DD&A in the fourth quarter, roll-off of contract
amortization expense and lower volumes.
Following final Commonwealth approval in the fourth quarter of 2019,
Peabody completed the formation of the United Wambo joint venture and
recognized a $48.1 million gain.
The company recognized $250.2 million in non-cash impairment charges
largely related to changes in life of mine assumptions in New Mexico and
unallocated reserves in the Illinois Basin and Colorado. As noted last
quarter, Peabody also wrote-off $58.5 million at the North Goonyella
Mine, primarily related to prior panel development. Based on lower
discount rates, Peabody recognized a $67.4 million mark-to-market loss
on its postretirement healthcare liabilities, compared to a gain of
$125.5 million in the prior year.
Fourth quarter net loss from continuing operations, net of income taxes
totaled $290.2 million compared to net income from continuing
operations, net of income taxes of $233.5 million in the prior year and
diluted loss per share from continuing operations of $3.12 compared to
income of $1.97 in the prior year.
Fourth quarter Adjusted EBITDA totaled $204.9 million and included
approximately $89 million associated with favorable customer
negotiations, $23.0 million in restructuring costs and $11.8 million in
transaction costs related to the proposed PRB/Colorado joint venture.
Fourth quarter restructuring charges primarily relate to actions taken
at the North Goonyella Mine and U.S. mine closures, with approximately
$7 million related to the company's organizational realignment
activities. As Peabody continued to progress the regulatory process for
the proposed PRB/Colorado joint venture, certain activities were
accelerated from the first quarter of 2020 to December.
Full-year 2019 revenues totaled $4.62 billion compared to $5.58 billion
in the prior year on an 11 percent decline in volumes and lower pricing,
reflecting industry conditions. Full-year 2019 loss from continuing
operations, net of income taxes totaled $188.3 million, while Adjusted
EBITDA totaled $837.1 million.
T1: 2020 Guidance Targets
|
Segment |
Volume
(millions of
short tons) |
Contracted
Pricing per
Short Ton |
Average Cost
per Short Ton |
|
PRB – Priced |
~96 |
$11.13 |
~$9.70 |
|
Other U.S. Thermal – Priced |
~20 |
$37 |
~$31.75 |
|
Seaborne Thermal (Export) – Priced |
~3.2 |
~$65 |
|
|
Seaborne Thermal (Export) – Total |
~11.5 |
|
~$32 |
|
Seaborne Thermal (Domestic) |
~7.7 |
|
|
|
Seaborne Metallurgical |
~8.3 |
|
~$95 |
T2: Tons Sold (In Millions)
|
Tons Sold (In Millions) |
Quarter Ended |
Year Ended |
|
Dec. 2019 |
Dec. 2018 |
Dec. 2019 |
Dec. 2018 |
|
Seaborne Thermal Mining Operations |
5.4 |
5.5 |
19.5 |
19.1 |
|
Seaborne Metallurgical Mining Operations |
1.9 |
2.3 |
8.1 |
11.0 |
|
Powder River Basin Mining Operations |
27.6 |
30.0 |
108.1 |
120.3 |
|
Midwestern U.S. Mining Operations |
3.7 |
4.6 |
16.0 |
18.9 |
|
Western U.S. Mining Operations |
1.9 |
3.5 |
11.9 |
14.7 |
|
Total U.S. Thermal Mining Operations |
33.2 |
38.1 |
136.0 |
153.9 |
|
Corporate and Other |
0.3 |
0.3 |
1.9 |
2.7 |
|
Total |
40.8 |
46.2 |
165.5 |
186.7 |
Full-Year 2020 Guidance and First Quarter Expectations
Targeting lower SG&A of ~$135 million in 2020 relative to 2019
•
Capital expenditures of ~$250 million, include $100 million related to
seaborne thermal life extension projects
•
Met volumes of ~8.3 million tons weighted toward second half of 2020
•
~96 million tons of PRB coal fully priced for 2020; flexibility to
increase volumes should demand warrant
•
~20 million tons of Other U.S. Thermal tons fully priced for 2020
•
U.S. thermal costs expected to be impacted by ~$30 million due to higher
federal coal excise tax
•
Expect lower first quarter results relative to Q4 2019
–
$89 million in non-recurring settlement income realized in Q4
–
$20 million – $30 million in pricing impacts
–
Q1 met costs expected to be significantly higher than full-year guidance
Link:
Official Document |
