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What changed in PEABODY ENERGY CORP's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of PEABODY ENERGY CORP's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+587 added−608 removedSource: 10-K (2025-02-20) vs 10-K (2024-02-23)

Top changes in PEABODY ENERGY CORP's 2024 10-K

587 paragraphs added · 608 removed · 423 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

159 edited+74 added−94 removed119 unchanged
Biggest changeAny legislation passed as a result of the recommendations in the final report could potentially impact the Company’s current and future mining tenements and operations. Occupational Health and Safety . State legislation requires Peabody to provide and maintain a safe workplace by providing safe systems of work, safety equipment and appropriate information, instruction, training and supervision.
Biggest changeQueensland legislation requires Peabody to provide and maintain a safe workplace by providing safe systems of work, safety equipment and appropriate information, instruction, training and supervision. In recognition of the specialized nature of mining and mining activities, specific occupational health and safety obligations have been mandated under state legislation specific to the coal mining industry.
Thermal Bear Run Indiana S DL, D, T/S T Tr, R, EV Yes 5.5 6.7 6.0 El Segundo/Lee Ranch New Mexico S DL, D, T/S T R No 3.4 3.7 3.7 Gateway North Illinois U CM T Tr, R, R/B, T/B, EV Yes 2.5 2.4 1.8 Francisco Underground Indiana U CM T R Yes 2.0 1.8 1.5 Wild Boar Indiana S HW, DL, D, T/S T Tr, R, R/B, T/B Yes 1.9 2.3 2.4 Twentymile Colorado U LW T R, Tr, EV Yes 1.3 1.5 1.7 Legend: S Surface Mine B Barge U Underground Mine Tr Truck HW Highwall Miner R/B Rail to Barge DL Dragline T/B Truck to Barge D Dozer/Casting T/R Truck to Rail T/S Truck and Shovel EV Export Vessel LW Longwall T Thermal/Steam CM Continuous Miner C Coking R Rail P Pulverized Coal Injection (1) Peabody owns a 50% undivided interest in an unincorporated joint venture that owns the Wambo Open-Cut Mine.
Thermal Bear Run Indiana S DL, D, T/S T Tr, R, EV Yes 5.0 5.5 6.7 El Segundo/Lee Ranch New Mexico S DL, D, T/S T R No 2.4 3.4 3.7 Gateway North Illinois U CM T Tr, R, R/B, T/B, EV Yes 2.1 2.5 2.4 Wild Boar Indiana S HW, DL, D, T/S T Tr, R, R/B, T/B Yes 1.8 1.9 2.3 Francisco Underground Indiana U CM T R Yes 1.6 2.0 1.8 Twentymile Colorado U LW T R, Tr, EV Yes 1.0 1.3 1.5 Legend: S Surface Mine B Barge U Underground Mine Tr Truck HW Highwall Miner R/B Rail to Barge DL Dragline T/B Truck to Barge D Dozer/Casting T/R Truck to Rail T/S Truck and Shovel EV Export Vessel LW Longwall T Thermal/Steam CM Continuous Miner C Coking R Rail P Pulverized Coal Injection (1) Peabody owns a 50% undivided interest in an unincorporated joint venture that owns the Wambo Open-Cut Mine.
All mining operations must be carried out in a manner so as to ensure compliance with the conditions in the EA. The mines submit an annual return reporting on their EA compliance.
All mining operations must be carried out in a manner so as to ensure compliance with the conditions in the EA. Mines must submit an annual return reporting on their EA compliance.
In Queensland, laws and regulations related to mining include, but are not limited to, the Mineral Resources Act 1989, Environmental Protection Act 1994 (EP Act), Environmental Protection Regulation 2008, Planning Act 2016, Coal Mining Safety and Health Act 1999, Minerals and Energy Resources (Common Provisions) Act 2014, Explosives Act 1999, Aboriginal Cultural Heritage Act 2003, Water Act 2000, State Development and Public Works Organisation Act 1971, Queensland Heritage Act 1992, Transport Infrastructure Act 1994, Nature Conservation Act 1992, Vegetation Management Act 1999, Biosecurity Act 2014, Land Act 1994, Regional Planning Interests Act 2014, Fisheries Act 1994 and Forestry Act 1959.
Queensland Government In Queensland, laws and regulations related to mining include, but are not limited to, the Mineral Resources Act 1989, Environmental Protection Act 1994 (EP Act), Environmental Protection Regulation 2008, Planning Act 2016, Coal Mining Safety and Health Act 1999, Minerals and Energy Resources (Common Provisions) Act 2014, Explosives Act 1999, Aboriginal Cultural Heritage Act 2003, Water Act 2000, State Development and Public Works Organisation Act 1971, Queensland Heritage Act 1992, Transport Infrastructure Act 1994, Nature Conservation Act 1992, Vegetation Management Act 1999, Biosecurity Act 2014, Land Act 1994, Regional Planning Interests Act 2014, Fisheries Act 1994 and Forestry Act 1959.
Changes in listings or requirements under these regulations could have a material adverse effect on Peabody’s costs or its ability to mine some of its properties in accordance with its current mining plans. During the Trump Administration, the Departments of the Interior and Commerce finalized five rules aiming to streamline and update the ESA.
Changes in listings or requirements under these regulations could have a material adverse effect on Peabody’s costs or its ability to mine some of its properties in accordance with its current mining plans. During the first Trump Administration, the Departments of Interior and Commerce finalized five rules aiming to streamline and update the ESA.
The Company has experienced, or may in the future experience, negative effects on its results of operations due to the following specific risks as a result of such factors: • Reduced utilization or closure of existing coal-fired electricity generating plants; • Electricity generators switching from coal to alternative fuels, when feasible; • Increased costs associated with regulatory compliance; • Unfavorable impact of regulatory compliance on supply and demand fundamentals, such as limitations on financing or construction of new coal-fueled power stations; • Uncertainty and inconsistency in rulemaking processes related to periodic governmental administrative and policy changes; • Unfavorable costs of capital and access to financial markets and products due to the policies of financial institutions; • Disruption to operations or markets due to anti-coal activism and litigation; and • Reputational damage associated with involvement in GHG emissions.
The Company has experienced, or may in the future experience, negative effects on its results of operations due to the following specific risks as a result of such factors: • Reduced utilization or closure of existing coal-fired electricity generating plants; • Electricity generators switching from coal to alternative fuels, when feasible; • Increased costs associated with regulatory compliance; • Unfavorable impact of regulatory compliance on supply and demand fundamentals, such as limitations on financing or construction of new coal-fueled power stations; • Uncertainty and inconsistency in rulemaking processes related to periodic governmental administrative and policy changes; • Unfavorable costs of capital and access to financial markets and products due to the policies of financial institutions; • Disruption to operations or markets due to anti-coal activism and litigation; • Reputational damage associated with involvement in GHG emissions; and • Increased cost and reputational damage related to climate litigation.
As part of its 2023-24 state budget the newly elected New South Wales government announced that from July 1, 2024 it would be increasing each of these rates by 2.6% to 8.8% for deep underground mines, 9.8% for underground mines and 10.8% for open-cut mines.
As part of its 2023-2024 state budget the newly elected New South Wales government announced that from July 1, 2024 it would be increasing each of these rates by 2.6% to 8.8% for deep underground mines, 9.8% for underground mines and 10.8% for open-cut mines.
Proponents will earn tradeable credits (Safeguard Mechanism Credits) when emissions are below their baselines or can purchase credits to offset emissions. Access to existing Australian Carbon Credit Units will continue unchanged albeit with a price ceiling of $75 Australian dollars per tonne of CO 2 in 2023-24, increasing with the Consumer Price Index plus 2% each year.
Proponents will earn tradeable credits (Safeguard Mechanism Credits) when emissions are below their baselines or can purchase credits to offset emissions. Access to existing Australian Carbon Credit Units will continue unchanged albeit with a price ceiling of $75 Australian dollars per tonne of CO 2 in 2023-2024, increasing with the Consumer Price Index plus 2% each year.
In May 2023, the Australian Parliament passed reforms to the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015. The reforms commenced on July 1, 2023 and introduced site specific baseline emissions for heavy emitting facilities as benchmarks for year-on-year improvement (proposed to be 4.9% each year to 2030) before transitioning to industry average emissions benchmarks by 2030.
In May 2023, the Australian Parliament passed reforms to the National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015 . The reforms commenced on July 1, 2023 and prescribed site specific baseline emissions for heavy emitting facilities as benchmarks for year-on-year improvement (proposed to be 4.9% each year to 2030) before transitioning to industry average emissions benchmarks by 2030.
(6) Peabody owns a 50% equity interest in Middlemount, which owns the Middlemount Mine. Because Middlemount is accounted for as an unconsolidated equity affiliate, the table above excludes tons produced from that mine, which totaled 1.2 million, 1.4 million and 2.0 million tons, respectively (on a 50% basis). Refer to the Reserves and Resources tables within Item 2.
(6) Peabody owns a 50% equity interest in Middlemount, which owns the Middlemount Mine. Because Middlemount is accounted for as an unconsolidated equity affiliate, the table above excludes tons produced from that mine, which totaled 1.3 million, 1.2 million and 1.4 million tons, respectively (on a 50% basis). Refer to the Reserves and Resources tables within Item 2.
The CAA contains a national visibility goal for the “prevention of any future, and the remedying of any existing, impairment of visibility in Class I areas which impairment results from manmade air pollution.” The EPA promulgated comprehensive regulations in 1999 requiring all states to submit plans to address regional haze that could affect 156 national parks and wilderness areas, including requirements for certain sources to install the best available retrofit technology and for states to demonstrate “reasonable progress” towards meeting the national visibility goal.
The CAA contains a national visibility goal for the “prevention of any future, and the remedying of any existing, impairment of visibility in Class I areas which impairment results from man-made air pollution.” The EPA promulgated comprehensive regulations in 1999 requiring all states to submit plans to address regional haze that could affect 156 national parks and wilderness areas, including requirements for certain sources to install the best available retrofit technology and for states to demonstrate “reasonable progress” towards meeting the national visibility goal.
Item 1. Business. Overview Peabody is a leading producer of metallurgical and thermal coal. At December 31, 2023, the Company owned interests in 17 active coal mining operations located in the United States (U.S.) and Australia, including a 50% equity interest in Middlemount Coal Pty Ltd. (Middlemount).
Item 1. Business. Overview Peabody is a leading producer of metallurgical and thermal coal. At December 31, 2024, the Company owned interests in 17 active coal mining operations located in the United States (U.S.) and Australia, including a 50% equity interest in Middlemount Coal Pty Ltd. (Middlemount).
On December 22, 2022, the State Premier declared such an emergency, intended to control coal and electricity pricing. Subsequently, directions were issued to Peabody Energy Australia Pty Ltd and other coal producers with operations in NSW, which have been amended at various dates.
On December 22, 2022, the State Premier declared such an emergency, intended to control coal and electricity pricing. Subsequently, directions were issued to Peabody Energy Australia Pty Ltd and other coal producers with operations in NSW, which were amended at various dates.
Peabody endeavors to engage with its organized workforce and foster strong relationships with those organizations built on trust and communication. As of December 31, 2023, approximately 3,500 of Peabody’s employees are located in the U.S., with the remainder primarily located in Australia.
Peabody endeavors to engage with its organized workforce and foster strong relationships with those organizations built on trust and communication. As of December 31, 2024, approximately 3,500 of Peabody’s employees are located in the U.S., with the remainder primarily located in Australia.
Peabody has secured its ability to transport coal from its Shoal Creek Mine under barge and port contracts; the primary port is the McDuffie Terminal in Mobile, Alabama, which the Company utilizes without a take-or-pay arrangement. Peabody’s U.S. thermal operations exported less than 1% of their annual tons sold during the years ended December 31, 2022 and 2021.
Peabody has secured its ability to transport coal from its Shoal Creek Mine under barge and port contracts; the primary port is the McDuffie Terminal in Mobile, Alabama, which the Company utilizes without a take-or-pay arrangement. Peabody’s U.S. thermal operations exported less than 1% of their annual tons sold during the year ended December 31, 2022.
The EP Act is administered by the Department of Environment and Science, which authorizes environmentally relevant activities such as mining activities relating to a mining lease through an Environmental Authority (EA). Environmental protection and reclamation activities are regulated by conditions in the EA.
The EP Act is administered by the Department of the Environment, Tourism, Science and Innovation which authorizes environmentally relevant activities such as mining activities relating to a mining lease through an Environmental Authority (EA). Environmental protection and reclamation activities are regulated by conditions in the EA.
In Queensland and New South Wales, the development of a mine requires both the grant of a right to extract the resource and an approval which authorizes the environmental impact. These approvals are obtained under separate legislation from separate government authorities.
In Queensland and New South Wales, the development of a mine requires both the grant of a right to extract the resource and an approval which authorizes the environmental impact. These approvals are obtained under separate legislation for separate government authorities.
The level of the ozone NAAQS can affect requirements to install new or improved emission control technologies at fossil fuel-fired EGUs and non-EGU industrial sources. Final New Source Performance Standards (NSPS) for Fossil Fuel-Fired EGUs .
The level of the ozone NAAQS can also affect requirements to install new or improved emission control technologies at fossil fuel-fired EGUs and non-EGU industrial sources. Final 2015 New Source Performance Standards (NSPS) for Fossil Fuel-Fired EGUs .
In addition to its alternative fuel source competitors, Peabody’s principal U.S. direct coal supply competitors (listed alphabetically) are other large coal producers, including Alliance Resource Partners; American Consolidated Natural Resources, Inc.; Arch Resources, Inc.; CONSOL Energy; Eagle Specialty Materials LLC; Foresight Energy; Hallador Energy; Kiewit; and Navajo Transitional Energy Company LLC, among others.
In addition to its alternative fuel source competitors, Peabody’s principal U.S. direct coal supply competitors (listed alphabetically) are other large coal producers, including Alliance Resource Partners; American Consolidated Natural Resources, Inc.; Core Natural Resources, Inc.; Eagle Specialty Materials LLC; Foresight Energy; Hallador Energy; Kiewit; and Navajo Transitional Energy Company LLC, among others.
Coal mine wastes, such as overburden and coal cleaning wastes, are not considered hazardous wastes under RCRA. While coal combustion residuals (CCR or coal ash) are exempted from regulation as hazardous waste, there are various EPA-imposed requirements regarding CCR management. Proposed Rule for Disposal of CCR from Electric Utilities; Federal CCR Permit Program and Revisions to Closure Requirements.
Coal mine wastes, such as overburden and coal cleaning wastes, are not considered hazardous wastes under RCRA. While coal combustion residuals (CCR or coal ash) are exempted from regulation as hazardous waste, there are various EPA-imposed requirements regarding CCR management. Rules for Disposal of Coal Combustion Residuals (CCR) from Electric Utilities; Federal CCR Permit Program and Revisions to Closure Requirements.
Peabody participated in the Department of Energy’s Voluntary Reporting of Greenhouse Gases Program until its suspension in May 2011, and the Company regularly discloses information regarding its production-related emissions in its annual ESG Report.
Peabody participated in the Department of Energy’s Voluntary Reporting of Greenhouse Gases Program until its suspension in May 2011, and the Company regularly discloses information regarding its production-related emissions in its annual Sustainability Report.
Production Segment/Mining Complex Location Mine Type Mining Method Coal Type Primary Transport Method Processing Plants Year Ended December 31, 2023 2022 2021 Seaborne Thermal (Tons in millions) Wilpinjong New South Wales S D, T/S T R, EV Yes 12.0 12.1 13.2 Wambo Open-Cut (1) New South Wales S T/S T, C R, EV Yes 2.6 2.0 2.4 Wambo Underground (2) New South Wales U LW T, C R, EV Yes 1.2 1.1 1.4 Seaborne Metallurgical Metropolitan (3) New South Wales U LW C, P, T R, EV Yes 2.2 1.8 1.0 Coppabella (4) Queensland S DL, D, T/S P R, EV Yes 2.2 2.4 2.1 Moorvale (4) Queensland S D, T/S C, P, T R, EV Yes 2.2 1.5 1.3 Shoal Creek (5) Alabama U LW C B, EV Yes 0.6 0.8 0.1 Middlemount (6) Queensland S D, T/S C, P R, EV Yes — — — Powder River Basin North Antelope Rochelle Wyoming S DL, D, T/S T R No 62.0 60.4 62.8 Caballo Wyoming S D, T/S T R No 15.3 12.1 13.9 Rawhide Wyoming S D, T/S T R No 9.8 10.3 11.6 Other U.S.
Production Segment/Mining Complex Location Mine Type Mining Method Coal Type Primary Transport Method Processing Plants Year Ended December 31, 2024 2023 2022 Seaborne Thermal (Tons in millions) Wilpinjong New South Wales S D, T/S T R, EV Yes 12.6 12.0 12.1 Wambo Open-Cut (1) New South Wales S T/S T, C R, EV Yes 3.3 2.6 2.0 Wambo Underground (2) New South Wales U LW T, C R, EV Yes 1.4 1.2 1.1 Seaborne Metallurgical Shoal Creek (3) Alabama U LW C B, EV Yes 2.1 0.6 0.8 Metropolitan New South Wales U LW C, P, T R, EV Yes 1.8 2.2 1.8 Coppabella (4) Queensland S DL, D, T/S P R, EV Yes 1.7 2.2 2.4 Moorvale (4) Queensland S D, T/S C, P, T R, EV Yes 1.5 2.2 1.5 Centurion (5) Queensland U LW C R, EV Yes 0.2 — — Middlemount (6) Queensland S D, T/S C, P R, EV Yes — — — Powder River Basin North Antelope Rochelle Wyoming S DL, D, T/S T R No 59.7 62.0 60.4 Caballo Wyoming S D, T/S T R No 10.8 15.3 12.1 Rawhide Wyoming S D, T/S T R No 9.1 9.8 10.3 Other U.S.
A change in requirements for security posted to self-insure black lung liabilities could result in the Company being required to post additional security for its obligations. Environmental Laws and Regulations Peabody is subject to various federal, state, local and tribal environmental laws and regulations.
The changed requirements for security posted to self-insure black lung liabilities could result in the Company being required to post additional security for its obligations. Environmental Laws and Regulations Peabody is subject to various federal, state, local and tribal environmental laws and regulations.
Industry commercial practice, and Peabody’s typical practice, is to negotiate pricing for seaborne thermal coal contracts on an annual, spot or index basis and seaborne metallurgical coal contracts on a quarterly, spot or index basis. For its seaborne operations, the portion of sales volume under contracts with a duration of less than one year represented 30% in 2023. U.S.
Industry commercial practice, and Peabody’s typical practice, is to negotiate pricing for seaborne thermal coal contracts on an annual, spot or index basis and seaborne metallurgical coal contracts on a quarterly, spot or index basis. For its seaborne operations, the portion of sales volume under contracts with a duration of less than one year represented 36% in 2024. U.S.
RCRA, which was enacted in 1976, affects U.S. coal mining operations by establishing “cradle to grave” requirements for the treatment, storage and disposal of hazardous wastes. Typically, the only hazardous wastes generated at a mine site are those from products used in vehicles and for machinery maintenance.
Resource Conservation and Recovery Act (RCRA) . RCRA, which was enacted in 1976, affects U.S. coal mining operations by establishing “cradle to grave” requirements for the treatment, storage and disposal of hazardous wastes. Typically, the only hazardous wastes generated at a mine site are those from products used in vehicles and for machinery maintenance.
No tons were exported during the year ended December 31, 2023. The primary port used for U.S. thermal exports is the Kinder Morgan Terminal near Houston, Texas. Suppliers Mining Supplies and Equipment.
No tons were exported during the years ended December 31, 2024 and 2023. The primary port used for U.S. thermal exports is the Kinder Morgan Terminal near Houston, Texas. Suppliers Mining Supplies and Equipment .
As a result of the Abandoned Mine Land Reclamation Amendments of 2021, which Congress enacted on November 15, 2021 as part of the Infrastructure Investment and Jobs Act, from October 1, 2021 through September 30, 2034, the fee is $0.224 and $0.096 per ton of surface-mined and underground-mine coal, respectively.
Pursuant to the Abandoned Mine Land Reclamation Amendments of 2021, which Congress enacted on November 15, 2021 as part of the Infrastructure Investment and Jobs Act, from October 1, 2021 through September 30, 2034, the fee is $0.224 and $0.096 per ton of surface-mined and underground-mine coal, respectively.
Peabody Energy Corporation 2023 Form 10-K 9 Table of Contents Darren R. Yeates was named Peabody’s Executive Vice President and Chief Operating Officer in October 2020. He has executive responsibility for global operations including health, safety and environment, mine operations, technical, procurement, and sales and marketing. Mr. Yeates has over 40 years of mining industry experience.
Peabody Energy Corporation 2024 Form 10-K 9 Tab le of Contents Darren R. Yeates was named Peabody’s Executive Vice President and Chief Operating Officer in October 2020. He has executive responsibility for global operations including health, safety and environment, mine operations, technical, procurement, and sales and marketing. Mr. Yeates has over 40 years of mining industry experience.
Pending litigation over the January 2023 definition has resumed, as the September 2023 final rule did not address many of the claims at issue in those cases. CWA Water Quality Certification Rule .
Pending litigation over the January 2023 definition has resumed and is ongoing, as the September 2023 final rule did not address many of the claims at issue in those cases. CWA Water Quality Certification Rule .
The most recent directions require Peabody Energy Australia Pty Ltd to reserve a portion of coal produced by Wambo Coal Pty Ltd and Wilpinjong Coal Pty Ltd for sale to NSW power generators at a capped price until June 30, 2024 and impose additional reporting obligations to demonstrate compliance.
The most recent directions required Peabody Energy Australia Pty Ltd to reserve a portion of coal produced by Wambo Coal Pty Ltd and Wilpinjong Coal Pty Ltd for sale to NSW power generators at a capped price until June 30, 2024 and imposed additional reporting obligations to demonstrate compliance.
An example of a NUMA is the void that remains after open-cut mining activities have been completed. Under the legislation, an existing mine was exempt from the requirement to justify its NUMAs to the extent that its existing approvals provided for such areas. Residual Risks .
An example of a NUMA is the void that remains after open-cut mining activities have been completed. Under the legislation, an existing mine was exempt from the requirement to justify its NUMAs to the extent that its existing approvals provided for such areas. Queensland Residual Risk Laws.
The EPA has taken action on a number of different rules and guidance affecting the interpretation and application of NSR. These rules and guidance may affect the construction, reconstruction and modification of sources and the level of pollution control requirements that will be necessary on a case-by-case basis. Federal Coal Leasing Moratorium .
The EPA has taken action on a number of different rules and guidance affecting the interpretation and application of NSR. These rules and guidance may affect the construction, reconstruction and modification of sources and the level of pollution control requirements that will be necessary on a case-by-case basis.
“Properties,” which is incorporated by reference herein, for additional information regarding coal reserves and resources, and product characteristics associated with each mine. Peabody Energy Corporation 2023 Form 10-K 5 Table of Contents Coal Supply Agreements Customers. Peabody’s coal supply agreements are primarily with electricity generators, industrial facilities and steel manufacturers.
“Properties,” which is incorporated by reference herein, for additional information regarding coal reserves and resources, and product characteristics associated with each mine. Peabody Energy Corporation 2024 Form 10-K 5 Tab le of Contents Coal Supply Agreements Customers. Peabody’s coal supply agreements are primarily with electricity generators, industrial facilities and steel manufacturers.
Production from these segments is primarily sold into the seaborne thermal and metallurgical markets, with a majority of those sales executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized.
Production from these segments is primarily sold into the seaborne thermal and metallurgical markets. A majority of the sales in these segments are executed through annual and multi-year international coal supply agreements which primarily contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized.
The mines are listed within their respective reporting segment in descending order, as determined by tons produced in 2023.
The mines are listed within their respective reporting segment in descending order, as determined by tons produced in 2024.
The Company recognized expense related to the fees of $22.2 million, $21.7 million and $27.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Clean Air Act (CAA) . The CAA, enacted in 1970, and comparable state and tribal laws that regulate air emissions affect the Company’s U.S. coal mining operations both directly and indirectly.
The Company recognized expense related to the fees of $20.4 million, $22.2 million and $21.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Clean Air Act (CAA) . The CAA, enacted in 1970, and comparable state and tribal laws that regulate air emissions affect the Company’s U.S. coal mining operations both directly and indirectly.
EPA’s Permitting Regulations for Major Emission Sources . Coal-fired and other fossil-fuel fired power plants (as well as industrial facilities) may also be subject to emission limits contained in required CAA permits.
Cir., No. 24-1009). EPA’s Permitting Regulations for Major Emission Sources . Coal-fired and other fossil-fuel fired power plants (as well as industrial facilities) may also be subject to emission limits contained in required CAA permits.
The Henry Hub Natural Gas Prompt Price averaged $2.66 per mmBtu in 2023, versus $6.54 and $3.72 per mmBtu in 2022 and 2021, respectively. In addition, the competitiveness of other alternative fuel sources for electricity generation has been strengthened by the growth of renewable energy generation.
The Henry Hub Natural Gas Prompt Price averaged $2.41 per mmBtu in 2024, versus $2.66 and $6.54 per mmBtu in 2023 and 2022, respectively. In addition, the competitiveness of other alternative fuel sources for electricity generation has been strengthened by the growth of renewable energy generation.
Locations Peabody Energy Corporation 2023 Form 10-K 3 Table of Contents Australian Locations Peabody Energy Corporation 2023 Form 10-K 4 Table of Contents The table below summarizes information regarding the operating characteristics of each of the Company’s mines in the U.S. and Australia.
Locations Peabody Energy Corporation 2024 Form 10-K 3 Tab le of Contents Australian Locations Peabody Energy Corporation 2024 Form 10-K 4 Tab le of Contents The table below summarizes information regarding the operating characteristics of each of the Company’s mines in the U.S. and Australia.
Human Capital Peabody had approximately 5,400 employees as of December 31, 2023, including approximately 4,200 hourly employees. Additional information on its employees and related labor relations matters is contained in Note 19. “Management — Labor Relations” to the accompanying consolidated financial statements, which information is incorporated herein by reference.
Human Capital Peabody had approximately 5,600 employees as of December 31, 2024, including approximately 4,300 hourly employees. Additional information on its employees and related labor relations matters is contained in Note 19. “Management — Labor Relations” to the accompanying consolidated financial statements, which information is incorporated herein by reference.
On September 27, 2023, the EPA finalized a superseding rule that would expand state and tribal regulators’ authority to review activities that require federal permits or licenses and to impose conditions they believe are necessary to ensure compliance with water quality requirements. That rule took effect on November 27, 2023.
On September 27, 2023, the EPA finalized a superseding rule that would expand state and tribal regulators’ authority to review activities that require federal permits or licenses and to impose conditions they believe are necessary to ensure compliance with water quality requirements. That rule took effect on November 27, 2023. Challenges to the 2023 rule remain pending in the U.S.
Peabody’s sales backlog, which includes coal supply agreements subject to price reopener and/or extension provisions, was approximately 221 million and 314 million tons of coal as of January 1, 2024 and 2023, respectively.
Peabody’s sales backlog, which includes coal supply agreements subject to price reopener and/or extension provisions, was approximately 153 million and 221 million tons of coal as of January 1, 2025 and 2024, respectively.
Management believes that the Company’s external communications, including environmental regulatory filings and public notices, SEC filings, its annual Environmental, Social and Governance (ESG) Report, its website and various other stakeholder-focused publications provide a comprehensive picture of the Company’s material risks and progress. All such communications are subject to oversight and review protocols established by Peabody’s Board and executive leadership team.
Management believes that the Company’s external communications, including environmental regulatory filings and public notices, SEC filings, its annual Sustainability Report, its website and various other stakeholder-focused publications provide a comprehensive picture of the Company’s material risks and progress towards mitigating these risks. All such communications are subject to oversight and review protocols established by Peabody’s Board and executive leadership team.
The transition to a net-zero emissions economy is driven by many factors, including, but not limited to, legislative and regulatory rulemaking processes, campaigns undertaken by non-governmental organizations to minimize or eliminate the use of coal as a source of electricity generation, and the ESG-related policies of financial institutions and other private companies.
The transition to a net-zero emissions economy is driven by many factors, including, but not limited to, legislative and regulatory rulemaking processes, campaigns undertaken by non-governmental organizations to minimize or eliminate the use of coal as a source of electricity generation, and the policies of financial institutions and other private companies as related to safety, sustainability, human capital and governance practices.
Sales under long-term coal supply agreements comprised approximately 92%, 85% and 84% of the Company’s worldwide sales from its mining operations (by volume) for the years ended December 31, 2023, 2022 and 2021, respectively. For the year ended December 31, 2023, Peabody derived 25% of its revenue from coal supply agreements from its five largest customers.
Sales under long-term coal supply agreements comprised approximately 90%, 92% and 85% of the Company’s worldwide sales from its mining operations (by volume) for the years ended December 31, 2024, 2023 and 2022, respectively. For the year ended December 31, 2024, Peabody derived 27% of its revenue from coal supply agreements from its five largest customers.
A self-bond is an indemnity agreement in a sum certain executed by the permittee or by the permittee and any corporate guarantor made payable to the regulatory authority. The Company’s total reclamation bonding requirements in the U.S. were $965.9 million as of December 31, 2023.
A self-bond is an indemnity agreement in a sum certain executed by the permittee or by the permittee and any corporate guarantor made payable to the regulatory authority. The Company’s total reclamation bonding requirements in the U.S. were $893.1 million as of December 31, 2024.
Effective October 1, 2022, the excise tax rates reverted back to 4.4% of the gross sales price not to exceed $1.10 per ton of underground coal and $0.55 per ton of surface coal due to the enactment of the Inflation Reduction Act of 2022.
Effective October 1, 2022, the excise tax rates were set at 4.4% of the gross sales price not to exceed $1.10 per ton of underground coal and $0.55 per ton of surface coal due to the enactment of the Inflation Reduction Act of 2022.
Numerous legal challenges to the final rule were filed in the United States Court of Appeals for the D.C. Circuit (D.C. Circuit). Sixteen separate petitions for review were filed, and the challengers include 25 states, utilities, mining companies (including Peabody), labor unions, trade organizations and other groups. The cases were consolidated under the case filed by North Dakota (D.C. Cir.
Numerous legal challenges to the final rule were filed in the D.C. Circuit. Sixteen separate petitions for review were filed, and the challengers include 25 states, utilities, mining companies (including Peabody), labor unions, trade organizations and other groups. The cases were consolidated under the case filed by North Dakota (D.C. Cir. No. 15-1381).
In November 2016, amendments to the EP Act and the Water Act 2000 became effective that facilitate regulatory scrutiny of the environmental impacts of underground water extraction during the operational phase of resource projects for all tenements yet to commence mineral extraction.
In November 2016, amendments to the EP Act and the Water Act 2000 provided for regulatory scrutiny of the environmental impacts of underground water extraction during the operational phase of resource projects for all tenements yet to commence mineral extraction.
Revenue from Peabody’s Seaborne Thermal and Seaborne Metallurgical segments represented approximately 56%, 59% and 50% of the Company’s total revenue from coal supply agreements for the years ended December 31, 2023, 2022 and 2021, respectively, during which all three periods the coal mining activities of those segments contributed approximately 18% of the Company’s sales volumes from mining operations.
Revenue from Peabody’s Seaborne Thermal and Seaborne Metallurgical segments represented approximately 55%, 56% and 59% of the Company’s total revenue from coal supply agreements for the years ended December 31, 2024, 2023 and 2022, respectively, during which periods the coal mining activities of those segments contributed approximately 20%, 18% and 18% of the Company’s sales volumes from mining operations, respectively.
Thermal segments, in aggregate, represented approximately 44%, 41% and 50% of the Company’s revenue from coal supply agreements for the years ended December 31, 2023, 2022 and 2021, respectively, during which all three periods the coal mining activities of those segments contributed approximately 82% of the Company’s sales volumes from mining operations.
Thermal segments, in aggregate, represented approximately 45%, 44% and 41% of the Company’s revenue from coal supply agreements for the years ended December 31, 2024, 2023 and 2022, respectively, during which periods the coal mining activities of those segments contributed approximately 80%, 82% and 82% of the Company’s sales volumes from mining operations, respectively.
States are required to revise plans every 10 years. New Source Review (NSR). The CAA imposes permitting requirements when a new source undergoes construction or when an existing source is reconstructed or undergoes a major modification. These requirements are contained in the CAA’s PSD and Nonattainment New Source Review programs, generally referred to as NSR.
The CAA imposes permitting requirements when a new source undergoes construction or when an existing source is reconstructed or undergoes a major modification. These requirements are contained in the CAA’s PSD and Nonattainment New Source Review programs, generally referred to as NSR.
In turn, increasing government attention is being paid to global climate issues and to GHG emissions, including emissions of carbon dioxide from coal combustion by power plants. There have been significant developments in federal and state legislation and regulation and international accords regarding climate change.
In turn, increasing government attention has been paid to global climate issues and to GHG emissions, including emissions of carbon dioxide from coal combustion by power plants. There have been significant developments in federal and state legislation and regulation and international accords regarding climate change, and volatility in the regulatory space is likely to continue.
Those five customers were supplied primarily from 13 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2024 to 2025. Peabody’s largest customer in 2023 contributed revenue of approximately $341 million, or approximately 7% of Peabody’s total revenue from coal supply agreements, and has contracts expiring in 2024. Backlog.
Those five customers were supplied primarily from 16 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2024 to 2028. Peabody’s largest customer in 2024 contributed revenue of approximately $340 million, or approximately 8% of Peabody’s total revenue from coal supply agreements, and has contracts expiring in 2025. Backlog.
The Company’s asset retirement obligations calculated in accordance with generally accepted accounting principles for its active and inactive U.S. operations were $483.8 million as of December 31, 2023.
The Company’s asset retirement obligations calculated in accordance with generally accepted accounting principles for its active and inactive U.S. operations were $473.3 million as of December 31, 2024.
Self-bonding is not permitted. Peabody’s mines provide financial assurance to the relevant authorities which is calculated in accordance with current regulatory requirements.
Peabody’s mines provide financial assurance to the relevant authorities which is calculated in accordance with current regulatory requirements.
Separately, on August 28, 2020 and November 12, 2020, the EPA finalized two sets of amendments to its 2015 CCR rule to partially address the D.C. Circuit’s 2018 decision holding that certain provisions of that rule were not sufficiently protective. The EPA is still deciding how to further revise the 2015 rule to address the remainder of the court decision.
Separately, on August 28, 2020 and November 12, 2020, the EPA finalized two sets of amendments to its 2015 CCR rule to partially address the D.C. Circuit’s 2018 decision holding that certain provisions of that rule were not sufficiently protective.
The rule requires that newly-constructed fossil fuel-fired steam generating units achieve an emission standard for CO 2 (known as the Best System of Emission Reduction (BSER)) which is based on the performance of a supercritical pulverized coal boiler implementing partial carbon capture, utilization and storage (CCUS).
Peabody Energy Corporation 2024 Form 10-K 12 Tab le of Contents The rule requires that newly-constructed fossil fuel-fired steam generating units achieve an emission standard for CO 2 (known as the Best System of Emission Reduction (BSER)) which is based on the performance of a supercritical pulverized coal boiler implementing partial carbon capture, utilization and storage (CCUS).
Peabody Energy Corporation 2023 Form 10-K 25 Table of Contents The Kyoto Protocol, adopted in December 1997 by the signatories to the 1992 United Nations Framework Convention on Climate Change (UNFCCC), established a binding set of GHG emission targets for developed nations. The U.S. signed the Kyoto Protocol but it has never been ratified by the U.S. Senate.
The Kyoto Protocol, adopted in December 1997 by the signatories to the 1992 United Nations Framework Convention on Climate Change (UNFCCC), established a binding set of GHG emission targets for developed nations. The U.S. signed the Kyoto Protocol but it has never been ratified by the U.S. Senate.
Trade flow disruptions occurred during 2022 and 2023 related to China’s unofficial ban on Australian coal and sanctions imposed on Russian coal imports. Major international direct competitors (listed alphabetically) include Anglo American; Arch Resources, Inc.; BHP; Foxleigh; Glencore; Jellinbah; KRU; Stanmore; Teck Resources; Warrior Met Coal; Whitehaven Coal Limited; and Yancoal Australia Ltd, among others.
Trade flow disruptions occurred during 2022 and 2023 related to sanctions imposed on Russian coal imports. Major international direct competitors (listed alphabetically) include Anglo American; BHP; Core Natural Resources, Inc.; Foxleigh; Glencore; Jellinbah; KRU; Oak Grove Mine; Stanmore; Warrior Met Coal; Whitehaven Coal Limited; and Yancoal Australia Ltd, among others.
Grech served as Chief Executive Officer and a member of the Board of Directors of Wolverine Fuels, LLC, a thermal coal producer and marketer based in Sandy, Utah, from July 2018 until May 2021. Prior to joining Wolverine Fuels, LLC, Mr.
He has over 30 years of experience in the coal and natural resources industry. Mr. Grech served as Chief Executive Officer and a member of the Board of Directors of Wolverine Fuels, LLC, a thermal coal producer and marketer based in Sandy, Utah, from July 2018 until May 2021. Prior to joining Wolverine Fuels, LLC, Mr.
But in June 2021, agencies announced their plan to revise, rescind, or reinstate the rules that were finalized (or withdrawn) during the Trump Administration that conflict with the Biden Administration’s objectives. The agencies issued proposed rules on June 22, 2023, and they expect to finalize revised rules in April 2024.
But in June 2021, the agencies announced their plan to revise, rescind or reinstate the rules that were finalized (or withdrawn) during the first Trump Administration that conflict with the Biden Administration’s objectives. The agencies issued proposed rules on June 22, 2023, and they published three final revised rules on April 5, 2024. Use of Explosives .
Peabody Energy Corporation 2023 Form 10-K 18 Table of Contents In New South Wales, laws and regulations related to mining include, but are not limited to, the Mining Act 1992, Work Health and Safety (Mines) Act 2013, Coal Mine Subsidence Compensation Act 2017, Environmental Planning and Assessment Act 1979 (EPA Act), Environmental Planning and Assessment Regulations 2000, Protection of the Environment Operations Act 1997, Contaminated Land Management Act 1997, Explosives Act 2003, Water Management Act 2000, Water Act 1912, Radiation Control Act 1990, Biodiversity Conservation Act 2016 (BC Act), Heritage Act 1977, Aboriginal Land Rights Act 1983, Crown Land Management Act 2016, Dangerous Goods (Road and Rail Transport) Act 2008, Fisheries Management Act 1994, Forestry Act 2012, Native Title (New South Wales) Act 1994, Biosecurity Act 2015, Roads Act 1993 and National Parks & Wildlife Act 1974.
New South Wales Government In New South Wales, laws and regulations related to mining include, but are not limited to, the Mining Act 1992, Work Health and Safety (Mines and Petroleum Sites) Act 2013, Coal Mine Subsidence Compensation Act 2017, Environmental Planning and Assessment Act 1979 (EPA Act), Environmental Planning and Assessment Regulation 2021, Protection of the Environment Operations Act 1997, Contaminated Land Management Act 1997, Explosives Act 2003, Water Management Act 2000, Water Act 1912, Biodiversity Conservation Act 2016 (BC Act), Heritage Act 1977, Aboriginal Land Rights Act 1983, Crown Land Management Act 2016, Dangerous Goods (Road and Rail Transport) Act 2008, Fisheries Management Act 1994, Native Title (New South Wales) Act 1994, Biosecurity Act 2015, Roads Act 1993 and National Parks and Wildlife Act 1974.
The U.S. Bureau of Alcohol, Tobacco and Firearms (ATF) regulates the use of explosive blasting materials. In addition to ATF regulation, the Department of Homeland Security is expected to finalize an ammonium nitrate security program rule. Federal Report on Climate Change . On November 29, 2023, the U.S.
Bureau of Alcohol, Tobacco and Firearms (ATF) regulates the use of explosive blasting materials. In addition to ATF regulation, the Department of Homeland Security is expected to finalize an ammonium nitrate security program rule. Peabody Energy Corporation 2024 Form 10-K 16 Tab le of Contents Federal Report on Climate Change . On November 29, 2023, the U.S.
In New South Wales, a respirable crystalline silica workplace exposure standard of 0.05 mg/m 3 applies; a respirable coal dust workplace exposure standard of 1.5 mg/m 3 applies and mines must report exceedances of these standards to the NSW Resources Regulator. Additionally, the NSW government requires an exposure standard for diesel particulate matter of 0.1 mg/m 3 .
NSW Workplace Safety Laws. In New South Wales, a respirable crystalline silica workplace exposure standard of 0.05 mg/m 3 applies; a respirable coal dust workplace exposure standard of 1.5 mg/m 3 applies and mines must report exceedances of these standards to the NSW Resources Regulator.
Peabody has generally secured its ability to transport coal in Australia through rail and port contracts and access to five east coast coal export terminals that are primarily funded through take-or-pay arrangements (refer to the “Liquidity and Capital Resources” section in Part II, Item 7.
Peabody Energy Corporation 2024 Form 10-K 6 Tab le of Contents Export Facilities. Peabody has generally secured its ability to transport coal in Australia through rail and port contracts and access to five east coast coal export terminals that are primarily funded through take-or-pay arrangements (refer to the “Liquidity and Capital Resources” section in Part II, Item 7.
A guideline has been issued that provides more certainty to the industry on the circumstances in which an EPO may be issued.
A guideline has been issued that provides more certainty to the industry on the circumstances in which an EPO may be issued. Queensland Environmental and Rehabilitation (Reclamation) Laws.
In Arizona, where Peabody performs reclamation work on tribal lands, the Company is regulated by OSMRE because the tribes do not have SMCRA authorization. SMCRA provides for three categories of bonds: surety bonds, collateral bonds and self-bonds.
In Arizona, where Peabody performs reclamation work on tribal lands, the Company is regulated by OSMRE because the tribes do not have SMCRA authorization. Peabody Energy Corporation 2024 Form 10-K 11 Tab le of Contents SMCRA provides for three categories of bonds: surety bonds, collateral bonds and self-bonds.
As a condition of approval for mining operations, companies are required to progressively reclaim mined land and provide appropriate bonding, or, in certain circumstances (see below in relation to the Mineral and Energy Resources (Financial Provisioning) Act 2018), make alternative financial contributions to the relevant state government as a safeguard to cover the costs of reclamation in circumstances where mine operators are unable to do so.
As a condition of approval for mining operations, companies are required to progressively reclaim mined land and provide appropriate bonding or, in certain circumstances, make alternative financial contributions to the relevant state government as a safeguard to cover the costs of reclamation in circumstances where mine operators are unable to do so. Self-bonding is not permitted.
The Company endeavors to conduct its mining operations in compliance with all applicable federal, state and local laws and regulations. However, because of extensive and comprehensive regulatory requirements, violations during mining operations occur from time to time in the industry. Mine Safety and Health Peabody is subject to health and safety standards both at the federal and state level.
The Company endeavors to conduct its mining operations in compliance with all applicable federal, state and local laws and regulations. However, because of extensive and comprehensive regulatory requirements, violations during mining operations occur from time to time in the industry.
In the U.S., natural gas is highly competitive (along with other alternative fuel sources) with thermal coal for electricity generation. The competitiveness of natural gas has been strengthened by continued growth in domestic natural gas production and new natural gas combined cycle generation capacity.
Peabody Energy Corporation 2024 Form 10-K 7 Tab le of Contents In the U.S., natural gas is highly competitive (along with other alternative fuel sources) with thermal coal for electricity generation. The competitiveness of natural gas has been strengthened by continued growth in domestic natural gas production and new natural gas combined cycle generation capacity.
New South Wales Reclamation. The Mining Act 1992 (Mining Act) is administered by the Department of Planning and Environment and the New South Wales Resources Regulator and authorizes the holder of a mining tenement to extract a mineral subject to obtaining consent under the EPA Act and other auxiliary approvals and licenses.
The Mining Act 1992 (Mining Act) is administered by New South Wales Resources within the Department of Primary Industries and Regional Development and the New South Wales Resources Regulator. The Mining Act authorizes the holder of a mining tenement to extract a mineral subject to obtaining consent under the EPA Act and other ancillary approvals and licenses.
In November 2018, the Queensland government passed the Mineral and Energy Resources (Financial Provisioning) Act 2018 which provided for a new financial assurance (FA) framework and new progressive rehabilitation requirements.
In November 2018, the Queensland government passed the Mineral and Energy Resources (Financial Provisioning) Act 2018 which introduced an updated financial assurance (FA) framework and progressive rehabilitation requirements.
On May 20, 2020, the Queensland Parliament passed a bill into law that introduces the criminal offense of ‘industrial manslaughter’ for executive officers, individuals who are “senior officers” and companies in the mining industry. Individuals now face a maximum prison sentence of 20 years and companies could be fined up to approximately $13 million Australian dollars.
On May 20, 2020, the Queensland Parliament passed laws that introduced the criminal offense of ‘industrial manslaughter’ for executive officers, individuals who are senior officers and companies in the mining industry. Individuals face a maximum prison sentence of 20 years and companies can be fined up to $13 million Australian dollars.
Increasingly, both foreign and domestic banks, insurance companies and large investors are curtailing or ending their financial relationships with fossil fuel-related companies. This has had adverse impacts on the liquidity and operations of coal producers.
Peabody Energy Corporation 2024 Form 10-K 24 Tab le of Contents Increasingly, both foreign and domestic banks, insurance companies and large investors are curtailing or ending their financial relationships with fossil fuel-related companies. This has had adverse impacts on the liquidity and operations of coal producers.
A national industrial relations system, the Fair Work Act and National Employment Standards, administered by the federal government applies to all employers and employees. The matters regulated under the national system include general employment conditions, unfair dismissal, enterprise bargaining, bullying claims, industrial action and resolution of workplace disputes.
The legislation became effective on July 1, 2023. Industrial Relations Laws. A national industrial relations system, the Fair Work Act and National Employment Standards, applies to all employers and employees. The matters regulated under the national system include general employment conditions, unfair dismissal, enterprise bargaining, bullying claims, industrial action and resolution of workplace disputes.
In June 2020, the NSW Government released its Strategic Statement on Coal Exploration and Mining in NSW which provides a high level framework for the government's policy approach to the future of the coal sector, as well as details of a streamlined strategic release process.
The New South Wales (NSW) Government released a Strategic Statement on Coal Exploration and Mining in June 2020 which provides a high level framework for the government's policy approach to the future of the coal sector.
Peabody’s Board of Directors and management believe that coal is essential to affordable, reliable energy and will continue to play a significant role in the global energy mix for the foreseeable future.
Peabody Energy Corporation 2024 Form 10-K 22 Tab le of Contents Peabody’s Board of Directors and management believe that coal is essential to affordable, reliable energy and will continue to play a significant role in the global energy mix for the foreseeable future.
He has responsibility for all Peabody sales, marketing and logistics. Mr. Roberts joined Peabody in 2021 as Executive General Manager - Sales & Marketing.
Malcolm Roberts was named Chief Marketing Officer in May 2023. He has responsibility for all Peabody sales, marketing and logistics. Mr. Roberts joined Peabody in 2021 as Executive General Manager - Sales & Marketing.
The bill proposed amendments to the Fair Work Act 2009 to allow unions and employees to make application to the Fair Work Commission for a ‘ regulated labour hire arrangement order ’ that, if successful, would require employers to provide similar wages and conditions to regulated workers as those provided to permanent employees, unless the Fair Work Commission is satisfied that it is not fair and reasonable to do so.
The bill allows unions and/or employees to make application to the Fair Work Commission for a ‘regulated labour hire arrangement order’ that, if successful, requires employers to provide similar wages and conditions to regulated workers as those provided to permanent employees, unless the Fair Work Commission is satisfied that it is not fair and reasonable to do so.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changePeabody Energy Corporation 2023 Form 10-K 40 Table of Contents Diversity in interpretation and application of accounting literature in the mining industry may impact the Company’s reported financial results. The mining industry has limited industry-specific accounting literature and, as a result, the Company understands diversity in practice exists in the interpretation and application of accounting literature to mining-specific issues.
Biggest changeThe mining industry has limited industry-specific accounting literature and, as a result, the Company understands diversity in practice exists in the interpretation and application of accounting literature to mining-specific issues. As diversity in mining industry accounting is addressed, the Company may need to restate its reported results if the resulting interpretations differ from its current accounting practices.
The value of the Company’s assets have from time to time been adversely affected by numerous uncertain factors, some of which are beyond its control, including unfavorable changes in the economic environments in which it operates; declining coal-fired electricity generation; lower-than-expected coal pricing; technical and geological operating difficulties; an inability to economically extract its coal reserves and resources; and unanticipated increases in operating costs.
The value of the Company’s assets have from time to time been adversely affected by numerous uncertain factors, some of which are beyond the Company’s control, including unfavorable changes in the economic environments in which it operates; declining coal-fired electricity generation; lower-than-expected coal pricing; technical and geological operating difficulties; an inability to economically extract its coal reserves and resources; and unanticipated increases in operating costs.
Peabody cannot provide assurance that key personnel will continue to be employed by the Company or that it will be able to attract and retain qualified personnel in the future. Failure to retain or attract key personnel could have a material adverse effect on the Company.
Peabody cannot provide assurance that key personnel will continue to be employed by the Company or that it will be able to attract and retain qualified personnel in the future. Failure to retain key personnel or attract qualified personnel could have a material adverse effect on the Company.
The price of Peabody’s common stock (Common Stock) may fluctuate due to a variety of market and industry factors that may materially reduce the market price of its Common Stock regardless of its operating performance, including, among others: • general economic conditions within the U.S. and internationally, including inflationary pressures and changes in interest rates; • general market conditions; • actual or anticipated fluctuations in Peabody’s quarterly and annual results and those of other public companies in its industry; • industry cycles and trends; • mergers and strategic alliances in the coal industry; • changes in government regulation; • potential or actual military conflicts or acts of terrorism; • the failure of securities analysts to publish research about Peabody or to accurately predict the results it actually achieves; • changes in accounting principles; • announcements concerning Peabody or its competitors; • the purchase and sale of shares of its Common Stock by significant shareholders; • lack of or excess of trading liquidity; • operational incidents; and • investor sentiment with respect to our policies or efforts on environmental, social or governance matters.
The price of Peabody’s common stock (Common Stock) may fluctuate due to a variety of market and industry factors that may materially reduce the market price of its Common Stock regardless of its operating performance, including, among others: • general economic conditions within the U.S. and internationally, including inflationary pressures and changes in interest rates; • general market conditions; • actual or anticipated fluctuations in Peabody’s quarterly and annual results and those of other public companies in its industry; • industry cycles and trends; • mergers and strategic alliances in the coal industry; • changes in government regulation; • potential or actual military conflicts or acts of terrorism; • the failure of securities analysts to publish research about Peabody or to accurately predict the results it actually achieves; • changes in accounting principles; • announcements concerning Peabody or its competitors; • the purchase and sale of shares of its Common Stock by significant shareholders; • lack of or excess of trading liquidity; • operational incidents; and • investor sentiment with respect to the Company’s policies or efforts on environmental, social or governance matters.
Peabody has implemented security protocols and systems with the intent of maintaining the physical security of its operations and protecting the Company’s and its counterparties’ confidential information and information related to identifiable individuals against unauthorized access.
Peabody has implemented security protocols and systems with the intent of maintaining the physical and cyber security of its operations and protecting the Company’s and its counterparties’ confidential information and information related to identifiable individuals against unauthorized access.
Many of the new power plants in the U.S. may be fueled by natural gas because gas-fired plants have been less expensive to construct, permits to construct these plants are easier to obtain based on emissions profiles and electric power generators may face public and governmental pressure to generate a larger portion of their electricity from natural gas-fueled units and alternative energy sources.
Many of the new power plants in the U.S. are being fueled by natural gas because gas-fired plants have been less expensive to construct and operate, permits to construct these plants are easier to obtain based on emissions profiles and electric power generators may face public and governmental pressure to generate a larger portion of their electricity from natural gas-fueled units and alternative energy sources.
Accordingly, substantial inflation may result in a material adverse impact on the Company’s costs, profitability and financial results. The Company’s business, results of operations, financial condition and prospects could be materially and adversely affected by pandemic or other widespread illnesses and the related effects on public health.
Accordingly, substantial inflation or tariffs may result in a material adverse impact on the Company’s costs, profitability and financial results. The Company’s business, results of operations, financial condition and prospects could be materially and adversely affected by pandemics or other widespread illnesses and the related effects on public health.
These conditions include: • elevated gas levels; • fires and explosions, including from methane gas or coal dust; • accidental mine water discharges; • weather, flooding and natural disasters; • hazardous events such as roof falls and high wall or tailings dam failures; • seismic activities, ground failures, rock bursts or structural cave-ins or slides; • key equipment failures; • supply chain constraints or unavailability of equipment or parts; • variations in coal seam thickness, coal quality, the amount of rock and soil overlying coal deposits and geologic conditions impacting mine sequencing; • delays in moving its longwall equipment; • unexpected maintenance problems; and • unforeseen delays in implementation of mining technologies that are new to its operations.
These conditions include: • elevated gas levels; • fires and explosions, including from methane gas or coal dust; • accidental mine water discharges; • weather, flooding and natural disasters; • hazardous events such as roof falls and high wall or tailings dam failures; • seismic activities, ground failures, rock bursts or structural cave-ins or slides; • key equipment failures; • supply chain constraints or unavailability of equipment or parts of the type, quantity and/or size needed to meet production expectations; • variations in coal seam thickness, coal quality, the amount of rock and soil overlying coal deposits and geologic conditions impacting mine sequencing; • delays in moving its longwall equipment; • unexpected maintenance problems; and • unforeseen delays in implementation of mining technologies that are new to its operations.
Thermal coal accounted for the majority of the Company’s coal sales by volume during 2023 and 2022, with the vast majority of these sales to electric power generators.
Thermal coal accounted for the majority of the Company’s coal sales by volume during 2024 and 2023, with the vast majority of these sales to electric power generators.
The Company has substantial take-or-pay arrangements with its port access and rail transportation providers, predominately in Australia, totaling $1.2 billion, with terms ranging up to 20 years, that commit the Company to pay a minimum amount for the delivery of coal even if those commitments go unused.
The Company has substantial take-or-pay arrangements with its port access and rail transportation providers, predominately in Australia, totaling $1.0 billion, with terms ranging up to 19 years, that commit the Company to pay a minimum amount for the delivery of coal even if those commitments go unused.
Unauthorized physical access to one of the Company’s facilities or electronic access to its information systems could result in, among other things, unfavorable publicity, litigation by affected parties, damage to sources of competitive advantage, disruptions to its operations, loss of customers, financial obligations for damages related to the theft or misuse of such information and costs to remediate such security vulnerabilities, any of which could have a substantial impact on the Company’s results of operations, financial condition or cash flows.
Unauthorized physical access to one of the Company’s facilities or electronic access to its information systems could result in, among other things, unfavorable publicity, litigation (including class action) by affected parties, regulatory investigations and enforcement, damage to sources of competitive advantage, disruptions to its operations, loss of customers, financial obligations for damages related to the theft or misuse of such information and costs to investigate and remediate such security vulnerabilities, any of which could have a substantial impact on the Company’s results of operations, financial condition or cash flows.
Lower demand for coal consumed by electric power generators could reduce the volume of thermal coal that the Company sells and the prices that it receives for the thermal coal, thereby reducing its revenue and adversely impacting its earnings and the value of its coal reserves and resources.
Lower demand for coal consumed by electric power generators has reduced and could continue to reduce the volume of thermal coal that the Company sells and the prices that it receives for the thermal coal, thereby reducing its revenue and adversely impacting its earnings and the value of its coal reserves and resources.
The Company produces metallurgical coal that is used in the global steel industry. Metallurgical coal accounted for approximately 26% and 32% of its revenue in 2023 and 2022, respectively. Changes in governmental policies and regulations and changes in the steel industry, including the demand for steel, could reduce the demand for the Company’s metallurgical coal.
The Company produces metallurgical coal that is used in the global steel industry. Metallurgical coal accounted for approximately 25% and 26% of its revenue in 2024 and 2023, respectively. Changes in governmental policies and regulations and changes in the steel industry, including the demand for steel, could reduce the demand for the Company’s metallurgical coal.
Peabody Energy Corporation 2023 Form 10-K 27 Table of Contents If a substantial number of the Company’s long-term coal supply agreements, including those with its largest customers, terminate, or if the pricing, volumes or other elements of those agreements materially adjust, its revenue and operating profits could suffer if the Company is unable to find alternate buyers willing to purchase its coal on comparable terms to those in its contracts.
Peabody Energy Corporation 2024 Form 10-K 26 Tab le of Contents If a substantial number of the Company’s long-term coal supply agreements, including those with its largest customers, terminate, or if the pricing, volumes or other elements of those agreements materially adjust, its revenue and operating profits could suffer if the Company is unable to find alternate buyers willing to purchase its coal on comparable terms to those in its contracts.
For additional information about the various regulations affecting the Company, see the sections entitled “Regulatory Matters —U.S.” and “Regulatory Matters — Australia.” Peabody Energy Corporation 2023 Form 10-K 31 Table of Contents The Company’s operations may impact the environment or cause exposure to hazardous substances, and its properties may have environmental contamination, which could result in material liabilities to the Company.
For additional information about the various regulations affecting the Company, see the sections entitled “Regulatory Matters —U.S.” and “Regulatory Matters — Australia.” Peabody Energy Corporation 2024 Form 10-K 30 Tab le of Contents The Company’s operations may impact the environment or cause exposure to hazardous substances, and its properties may have environmental contamination, which could result in material liabilities to the Company.
If the Company’s mortality tables do not anticipate its population’s mortality experience as accurately as expected, actual cash expenditures and costs that the Company incurs could differ materially from its current estimates. High inflation could continue to result in higher costs and decreased profitability.
If the Company’s mortality tables do not anticipate its population’s mortality experience as accurately as expected, actual cash expenditures and costs that the Company incurs could differ materially from its current estimates. High inflation or imposed tariffs could result in higher costs and decreased profitability.
As of December 31, 2023, the Company leased a total of 44,287 acres from the federal government subject to those limitations. Peabody Energy Corporation 2023 Form 10-K 33 Table of Contents The Company’s planned mine development projects and acquisition activities may not result in significant additional reserves and resources, and it may not have success developing additional mines.
As of December 31, 2024, the Company leased a total of 44,287 acres from the federal government subject to those limitations. Peabody Energy Corporation 2024 Form 10-K 32 Tab le of Contents The Company’s planned mine development projects and acquisition activities may not result in significant additional reserves and resources, and it may not have success developing additional mines.
The enactment of future laws or the passage of regulations regarding emissions from the use of coal by the U.S., some of its states or other countries, or other actions to limit such emissions, could result in electricity generators switching from coal to other fuel sources.
The enactment of future laws or the passage of regulations regarding emissions from the use of coal by the U.S., some of its states or other countries, and ongoing actions to limit such emissions, such as carbon taxes, could result in electricity generators switching from coal to other fuel sources.
The Company is subject to various general operating risks which may be fully or partially outside of its control. The Company’s results of operations, financial position or cash flows could be adversely impacted by various general operating risks which may be fully or partially outside of its control.
The Company’s results of operations, financial position or cash flows could be adversely impacted by various general operating risks which may be fully or partially outside of its control.
These efforts may have adverse consequences, including, but not limited to: • restricting the Company’s ability to access capital and financial markets in the future; • reducing the demand and price for its equity securities; • increasing the cost of borrowing; • causing a decline in the Company’s credit ratings; • reducing the availability, and/or increasing the cost of, third-party insurance; • increasing the Company’s retention of risk through self-insurance; • making it more difficult to obtain surety bonds, letters of credit, bank guarantees or other financing; and • limiting the Company’s flexibility in business development activities such as mergers, acquisitions and divestitures.
Peabody Energy Corporation 2024 Form 10-K 37 Tab le of Contents These efforts may have adverse consequences, including, but not limited to: • restricting the Company’s ability to access capital and financial markets in the future; • reducing the demand and price for its equity securities; • increasing the cost of borrowing; • causing a decline in the Company’s credit ratings; • reducing the availability, and/or increasing the cost of, third-party insurance; • increasing the Company’s retention of risk through self-insurance; • making it more difficult to obtain surety bonds, letters of credit, bank guarantees or other financing; and • limiting the Company’s flexibility in business development activities such as mergers, acquisitions and divestitures.
Peabody Energy Corporation 2023 Form 10-K 34 Table of Contents Joint ventures, partnerships or non-managed operations may not be successful and may not comply with the Company’s operating standards. The Company participates in several joint venture and partnership arrangements and may enter into others, all of which necessarily involve risk.
Peabody Energy Corporation 2024 Form 10-K 33 Tab le of Contents Joint ventures, partnerships or non-managed operations may not be successful and may not comply with the Company’s operating standards. The Company participates in several joint venture and partnership arrangements and may enter into others, all of which necessarily involve risk.
In turn, increasing government attention is being paid to global climate issues and to emissions of GHGs, including emissions of CO 2 from coal combustion by power plants.
In turn, increasing government attention has been paid to global climate issues and to emissions of GHGs, including emissions of CO 2 from coal combustion by power plants.
Peabody Energy Corporation 2023 Form 10-K 26 Table of Contents Coal prices are dependent upon factors beyond the Company’s control, including: • the demand for electricity and capacity utilization of electricity generating units (whether coal or non-coal); • changes in the fuel consumption and dispatch patterns of electric power generators, whether based on economic or non-economic factors; • the proximity, capacity and cost of transportation and terminal facilities; • competition with and the availability, quality and price of coal and alternative fuels, including natural gas, fuel oil, nuclear, hydroelectric, wind, biomass and solar power; • governmental regulations and taxes, including tariffs or other trade restrictions as well as those establishing air emission standards for coal-fueled power plants or mandating or subsidizing increased use of electricity from renewable energy sources; • the strength of the global economy; • the global supply and production costs of thermal and metallurgical coal; • the demand for steel, which may lead to price fluctuations in the monthly and quarterly repricing of the Company’s metallurgical coal contracts; • weather patterns, severe weather and natural disasters; • regulatory, administrative and judicial decisions, including those affecting future mining permits and leases; • competing technologies used to make steel, some of which do not use coal as a manufacturing input, such as electric arc furnaces; and • technological developments, including those related to alternative energy sources, those intended to convert coal-to-liquids or gas and those aimed at capturing, using and storing carbon dioxide.
Peabody Energy Corporation 2024 Form 10-K 25 Tab le of Contents Coal prices are dependent upon factors beyond the Company’s control, including: • the demand for electricity and capacity utilization of electricity generating units (whether coal or non-coal); • changes in the fuel consumption and dispatch patterns of electric power generators, whether based on economic or non-economic factors; • the proximity, capacity and cost of transportation and terminal facilities; • competition with and the availability, quality and price of coal and alternative fuels, including natural gas, fuel oil, nuclear, hydroelectric, wind, biomass and solar power; • governmental regulations and taxes, including tariffs or other trade restrictions as well as those establishing air emission standards for coal-fueled power plants or mandating or subsidizing increased use of electricity from renewable energy sources; • the strength of the global economy, including the relative exchange rates of U.S. dollars for foreign currencies; • the unknown geopolitical consequences of current and future political and military conflicts, including between Russia and Ukraine; • the global supply and production costs of thermal and metallurgical coal; • the demand for steel, which may lead to price fluctuations in the monthly and quarterly repricing of the Company’s metallurgical coal contracts; • weather patterns, severe weather and natural disasters; • regulatory, administrative and judicial decisions, including those affecting future mining permits and leases; • competing technologies used to make steel, some of which do not use coal as a manufacturing input, such as electric arc furnaces; and • technological developments, including those related to alternative energy sources, those intended to convert coal-to-liquids or gas and those aimed at capturing, using and storing carbon dioxide.
Peabody Energy Corporation 2023 Form 10-K 28 Table of Contents Risks inherent to mining could increase the cost of operating the Company’s business, and events and conditions that could occur during the course of its mining operations could have a material adverse impact on the Company.
Peabody Energy Corporation 2024 Form 10-K 27 Tab le of Contents Risks inherent to mining could increase the cost of operating the Company’s business, and events and conditions that could occur during the course of its mining operations could have a material adverse impact on the Company.
Approximately 38% of its hourly employees were represented by organized labor unions and generated approximately 18% of its coal production for the year ended December 31, 2023. Relations with its employees and, where applicable, organized labor are important to the Company’s success.
Approximately 40% of its hourly employees were represented by organized labor unions and generated approximately 21% of its coal production for the year ended December 31, 2024. Relations with its employees and, where applicable, organized labor are important to the Company’s success.
New legislation or administrative regulations (or new interpretations by the relevant government of existing laws, regulations and approvals), including proposals related to the protection of the environment or the reduction of GHG emissions that would further regulate and tax the coal industry, may also require the Company or its customers to change operations significantly or incur increased costs.
New legislation, such as the “climate superfund” laws recently passed in New York and Vermont, or administrative regulations (or new interpretations by the relevant government of existing laws, regulations and approvals), including proposals related to the protection of the environment or the reduction of GHG emissions that would further regulate and tax the coal industry, may also require the Company or its customers to change operations significantly or incur increased costs.
For the year ended December 31, 2023, the Company derived 25% of its revenue from coal supply agreements from its five largest customers. Those five customers were supplied primarily from 13 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2024 to 2025.
For the year ended December 31, 2024, the Company derived 27% of its revenue from coal supply agreements from its five largest customers. Those five customers were supplied primarily from 16 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2024 to 2028.
Peabody Energy Corporation 2023 Form 10-K 30 Table of Contents If the assumptions underlying the Company’s asset retirement obligations for reclamation and mine closures are materially inaccurate, its costs could be significantly greater than anticipated.
Peabody Energy Corporation 2024 Form 10-K 29 Tab le of Contents If the assumptions underlying the Company’s asset retirement obligations for reclamation and mine closures are materially inaccurate, its costs could be significantly greater than anticipated.
Further, Peabody could be the subject of securities class action litigation due to any such stock price volatility, which could divert management’s attention and have a material adverse effect on its results of operation. Peabody’s Common Stock is subject to dilution and may be subject to further dilution in the future.
Further, Peabody could be the subject of securities class action litigation due to any such stock price volatility, which could divert management’s attention and have a material adverse effect on its results of operation.
Peabody Energy Corporation 2023 Form 10-K 32 Table of Contents From time to time, the Company’s Board of Directors and management attempt to analyze the potential impact on the Company of as-yet-unadopted, potential laws, regulations and policies.
Peabody Energy Corporation 2024 Form 10-K 31 Tab le of Contents From time to time, the Company’s Board of Directors and management attempt to analyze the potential impact on the Company of as-yet-unadopted, potential laws, regulations and policies.
Under the Company’s agreement with the providers of its surety portfolio, the Company has $444.0 million in cash held in trust accounts for the benefit of certain surety providers as of December 31, 2023.
Under the Company’s agreement with the providers of its surety portfolio, the Company has $394.6 million in cash held in trust accounts for the benefit of certain surety providers as of December 31, 2024.
Although covenants under agreements governing the Company’s other indebtedness, including its revolving credit facility and finance leases, limit the Company’s ability to incur additional indebtedness, these restrictions are subject to a number of qualifications and exceptions.
The Company may be able to incur additional indebtedness in the future, including secured debt. Although covenants under agreements governing the Company’s other indebtedness, including its revolving credit facility and finance leases, limit the Company’s ability to incur additional indebtedness, these restrictions are subject to a number of qualifications and exceptions.
Peabody Energy Corporation 2023 Form 10-K 29 Table of Contents The Company could be negatively affected if it fails to maintain satisfactory labor relations. As of December 31, 2023, the Company had approximately 5,400 employees (excluding employees that were employed at operations classified as discontinued), which included approximately 4,200 hourly employees.
Peabody Energy Corporation 2024 Form 10-K 28 Tab le of Contents The Company could be negatively affected if it fails to maintain satisfactory labor relations. As of December 31, 2024, the Company had approximately 5,600 employees (excluding employees that were employed at operations classified as discontinued), which included approximately 4,300 hourly employees.
Although the Company may be able to utilize some or all of those deferred tax assets in the future if it has income of the appropriate character in those jurisdictions (subject to loss carryforward and tax credit expiry, in certain cases), there is no assurance that it will be able to do so.
Peabody Energy Corporation 2024 Form 10-K 39 Tab le of Contents Although the Company may be able to utilize some or all of those deferred tax assets in the future if it has income of the appropriate character in those jurisdictions (subject to loss carryforward and tax credit expiry, in certain cases), there is no assurance that it will be able to do so.
Adverse changes in the general domestic and global economic conditions and disrupted domestic and international credit markets, could negatively affect its customers’ ability to pay the Company as well as its ability to access capital that could negatively affect its liquidity.
As a result, the Company could face increased costs or decreased sales. Adverse changes in the general domestic and global economic conditions and disrupted domestic and international credit markets, could negatively affect its customers’ ability to pay the Company as well as its ability to access capital that could negatively affect its liquidity.
As of December 31, 2023, the Company had gross deferred income tax assets, including net operating loss (NOL) carryforwards, and liabilities of $1,556.1 million and $111.2 million, respectively, as described further in Note 8. “Income Taxes” to the accompanying consolidated financial statements. At that date, the Company also had recorded a valuation allowance of $1,473.5 million.
As of December 31, 2024, the Company had gross deferred income tax assets, including net operating loss (NOL) carryforwards, and liabilities of $1,520.0 million and $140.0 million, respectively, as described further in Note 8. “Income Taxes” to the accompanying consolidated financial statements. At that date, the Company also had recorded a valuation allowance of $1,420.9 million.
Numerous reports, including the Fourth and the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, have also engendered concern about the impacts of human activity, especially fossil fuel combustion, on global climate issues.
Numerous reports, such as the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, have also engendered concern about the impacts of human activity, especially fossil fuel combustion, on global climate issues.
As of December 31, 2023, the Company had $1,139.9 million of outstanding surety bonds; $276.7 million of deposits with regulatory authorities; $275.1 million of letters of credit with third parties; and $64.9 million of cash backed bank guarantees in order to provide required financial assurances for post-mining reclamation, workers’ compensation and other insurance obligations, coal lease-related and other obligations and performance guarantees, in addition to collateral for sureties.
As of December 31, 2024, the Company had $1,017.5 million of outstanding surety bonds; $262.3 million of letters of credit with third parties; $168.5 million of cash-backed bank guarantees; and $127.6 million of deposits with regulatory authorities in order to provide required financial assurances for post-mining reclamation, workers’ compensation and other insurance obligations, coal lease-related and other obligations and performance guarantees, in addition to collateral for sureties.
Peabody Energy Corporation 2023 Form 10-K 37 Table of Contents The Company’s ability to comply with these restrictions or covenants may be affected by events beyond its control. A breach of any of these restrictions or covenants together with the expiration of any cure period, if applicable, could result in a default.
The Company’s ability to comply with these restrictions or covenants may be affected by events beyond its control. A breach of any of these restrictions or covenants together with the expiration of any cure period, if applicable, could result in a default.
These provisions could limit the price that certain investors might be willing to pay in the future for shares of its Common Stock and may have the effect of delaying or preventing a change in control.
These provisions could limit the price that certain investors might be willing to pay in the future for shares of its Common Stock and may have the effect of delaying or preventing a change in control. Diversity in interpretation and application of accounting literature in the mining industry may impact the Company’s reported financial results.
Gas-fueled generation has displaced and could continue to displace coal-fueled generation (particularly from older, less efficient coal-fueled generation units) as current and potentially increasing regulatory costs and other factors impact the operating decisions of electric power generators. In addition, some electric power generators have made decisions to close coal-fueled generation units given ongoing pressure to shift away from coal generation.
Gas-fueled generation has displaced and could continue to displace coal-fueled generation (particularly from older, less efficient coal-fueled generation units) as current and potentially increasing regulatory costs and other factors, such as declines in the price of natural gas, impact the operating decisions of electric power generators.
Peabody Energy Corporation 2023 Form 10-K 35 Table of Contents Pandemic or other widespread illnesses could result in governmental mandates requiring shutdowns of facilities for indefinite periods; serious health issues and absenteeism within the workforce; and disruptions to supply chain and distribution channels impacting both vendors and customers. As a result, the Company could face increased costs or decreased sales.
Peabody Energy Corporation 2024 Form 10-K 34 Tab le of Contents Pandemics or other widespread illnesses could result in governmental mandates requiring shutdowns of facilities for indefinite periods; serious health issues and absenteeism within the workforce; and disruptions to supply chain and distribution channels impacting both vendors and customers.
Peabody Energy Corporation 2023 Form 10-K 36 Table of Contents Risks Related to Peabody’s Capital Structure The Company may be able to incur more debt, including secured debt, which could increase the risks associated with its indebtedness. As of December 31, 2023, the Company had approximately $320.0 million of unsecured indebtedness outstanding, excluding finance leases and debt issuance costs.
Risks Related to Peabody’s Capital Structure The Company may be able to incur more debt, including secured debt, which could increase the risks associated with its indebtedness. As of December 31, 2024, the Company had approximately $329.3 million of unsecured indebtedness outstanding, excluding finance leases and debt issuance costs, and an additional $320.0 million in revolving commitments.
The Company has engaged in, and may continue to engage in acquisition or divestiture activity, such as its recent conditional acquisition of the southern part of Stanmore’s Ward Wells Tenements in Queensland’s Bowen Basin, based on its set of investment criteria to produce outcomes that increase shareholder value or provide potential strategic benefits.
The Company has engaged in, and may continue to engage in acquisition or divestiture activity, such as its recent conditional acquisition of Anglo’s metallurgical coal assets in Queensland’s Bowen Basin and the related divestiture of a portion of the assets to Pt Bukit Makmur Mandiri Utama (BUMA), based on its set of investment criteria to produce outcomes that increase shareholder value or provide potential strategic benefits.
Peabody’s Common Stock is subject to dilution from its convertible senior debt and its long-term incentive plan. In addition, Peabody may continue issuing equity securities in connection with future investments, acquisitions or capital raising transactions. Such issuances or grants could constitute a significant portion of the then-outstanding Common Stock, which may result in significant dilution in ownership of Common Stock.
In addition, Peabody may issue equity securities in connection with future investments, acquisitions or capital raising transactions. Such issuances or grants could constitute a significant portion of the then-outstanding Common Stock, which may result in significant dilution in ownership of Common Stock.
Such transactions may advance the interests of the significant stockholder and not necessarily those of other stakeholders, which might adversely affect Peabody or other holders of its Common Stock or debt instruments.
Such transactions may advance the interests of the significant stockholder and not necessarily those of other stakeholders, which might adversely affect Peabody or other holders of its Common Stock or debt instruments. The future payment of dividends on Peabody’s stock or future repurchases of its stock is dependent on a number of factors and cannot be assured.
The terms of the agreements and instruments governing the Company’s debt and surety bonding obligations impose restrictions that may limit its operating and financial flexibility.
Peabody Energy Corporation 2024 Form 10-K 36 Tab le of Contents The terms of the agreements and instruments governing the Company’s debt and surety bonding obligations impose restrictions that may limit its operating and financial flexibility.
In recent years the Company has been adversely impacted by inflation, which has increased the cost of materials, labor, equipment, freight, fuel and other cost categories.
In recent years the Company has been adversely impacted by inflation, which has increased the cost of materials, labor, equipment, freight, fuel and other cost categories. Tariffs could also increase the cost of new equipment purchases as well as parts and components to service the Company’s equipment fleet.
The Company’s results of operations, financial condition and cash flows may adversely be affected in future periods by these limitations. Acquisitions and divestitures are a potentially important part of the Company’s long-term strategy, subject to its investment criteria, and involve a number of risks, any of which could cause the Company not to realize the anticipated benefits.
General Risk Factors Acquisitions and divestitures are a potentially important part of the Company’s long-term strategy, subject to its investment criteria, and involve a number of risks, any of which could cause the Company not to realize the anticipated benefits.
Failure by non-controlled joint venture partners or contractors to adhere to operational standards that are equivalent to the Company’s could unfavorably affect safety results, operating costs and productivity and adversely impact its results of operations and reputation. The Company’s expenditures for postretirement benefit obligations could be materially higher than it has predicted if its underlying assumptions prove to be incorrect.
Failure by non-controlled joint venture partners or contractors to adhere to operational standards that are equivalent to those of the Company could unfavorably affect safety results, operating costs and productivity and adversely impact its results of operations and reputation.
The Company pays postretirement health and life insurance benefits to eligible retirees. Its total accumulated postretirement benefit obligation related to such benefits was a liability of $163.7 million as of December 31, 2023, of which $15.3 million was classified as a current liability. These liabilities are actuarially determined.
Its total accumulated postretirement benefit obligation related to such benefits was a liability of $134.1 million as of December 31, 2024, of which $13.7 million was classified as a current liability. These liabilities are actuarially determined.
The Board also approved a share repurchase program authorizing repurchases of up to $1.0 billion of the Company’s common stock.
In 2023, the Company’s Board of Directors approved a shareholder return framework, which includes share repurchases and cash dividends, and a share repurchase program authorizing repurchases of up to $1.0 billion of the Company’s common stock.
General Risk Factors The Company may not be able to fully utilize its deferred tax assets. The Company is subject to income and other taxes in the U.S. and numerous foreign jurisdictions, most significantly Australia.
In addition, future acquisitions could result in its assuming significant long-term liabilities, including potentially unknown liabilities, relative to the value of the acquisitions. The Company may not be able to fully utilize its deferred tax assets. The Company is subject to income and other taxes in the U.S. and numerous foreign jurisdictions, most significantly Australia.
Lower demand for metallurgical coal in international markets could reduce the amount of metallurgical coal that the Company sells and the prices that it receives for the metallurgical coal, thereby reducing its revenue and adversely impacting its earnings and the value of its coal reserves and resources.
Lower demand for metallurgical coal in international markets would reduce the amount of metallurgical coal that Peabody sells and the prices that it receives for it, thereby reducing revenues and adversely impacting earnings and the value of its coal reserves. Foreign government policies related to coal production and consumption could also negatively impact pricing and demand for the Company’s products.
Peabody Energy Corporation 2023 Form 10-K 38 Table of Contents Risks Related to Ownership of Peabody’s Securities The price of Peabody’s securities may be volatile.
Risks Related to Ownership of Peabody’s Securities The price of Peabody’s securities may be volatile.
As diversity in mining industry accounting is addressed, the Company may need to restate its reported results if the resulting interpretations differ from its current accounting practices. Refer to Note 1. “Summary of Significant Accounting Policies” to the accompanying consolidated financial statements for a summary of the Company’s significant accounting policies. Item 1B. Unresolved Staff Comments. None.
Refer to Note 1. “Summary of Significant Accounting Policies” to the accompanying consolidated financial statements for a summary of the Company’s significant accounting policies. Item 1B. Unresolved Staff Comments. None.
These factors and legislation, if enacted, could have a material adverse effect on the Company’s financial condition and results of operations.
These factors and legislation, if enacted, could have a material adverse effect on the Company’s financial condition and results of operations. If the Company is determined to be subject to “climate superfund” laws and related regulations, it may be required to make significant payments to the relevant governments.
In addition, future acquisitions could result in its assuming significant long-term liabilities, including potentially unknown liabilities, relative to the value of the acquisitions. Peabody’s certificate of incorporation and by-laws include provisions that may discourage a takeover attempt.
The Company’s results of operations, financial condition and cash flows may adversely be affected in future periods by these limitations. Peabody’s certificate of incorporation and by-laws include provisions that may discourage a takeover attempt.
These closures could have a material adverse effect on demand and prices for the Company’s coal, thereby reducing its revenue and materially and adversely affecting its business and results of operations.
System modification failures could have a material adverse effect on the Company’s business, financial position and results of operations and could, if not successfully implemented, adversely impact the effectiveness of its internal control over financial reporting.
Removed
The balance between coal demand and supply, factoring in demand and supply of closely related and competing fuel sources, both domestically and internationally, could materially reduce coal prices and therefore materially reduce the Company’s revenue and profitability. The Company competes with other fuel sources used for electricity generation, such as natural gas, nuclear and renewables.
Added
In addition, some electric power generators have made decisions to close coal-fueled generation units given ongoing pressure to shift away from coal generation.
Removed
The Company’s seaborne products compete with other producers as well as other fuel sources. Declines in the price of natural gas could cause demand for coal to decrease and adversely affect the price of coal.
Added
The demand for foreign-produced steel both in foreign markets and in the U.S. market depends in part on factors such as tariff rates on steel. The Company’s customers may be affected by imposed tariffs to the extent their imports into other countries are curtailed as a result of tariffs.
Removed
Sustained periods of low natural gas prices or low prices for other fuels may also cause utilities to phase out or close existing coal-fueled power plants or reduce construction of new coal-fueled power plants. In the U.S., no new coal-fueled power plants are being constructed or reopened after closure.
Added
In addition, the steel industry’s demand for metallurgical coal is affected by a number of factors, including the variable nature of that industry’s business, technological developments in the steel-making process and the availability of substitutes for steel, such as aluminum, composites and plastics.
Removed
Some of these hedging arrangements may require the Company to post margin based on the value of the related instruments and other credit factors.
Added
The steel industry increasingly relies on processes to make steel that do not use coal as a manufacturing input, such as electric arc furnaces.
Removed
If the fair value of its hedge portfolio moves significantly, or if laws, regulations or exchange rules are passed requiring all hedge arrangements to be exchange-traded or exchange-cleared, the Company could be required to post additional margin, which could negatively impact its liquidity.
Added
These payments may be material and could adversely affect the Company’s results of operations, financial condition or cash flows.
Removed
As further discussed in “Liquidity and Capital Resources” of Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as of January 2024 the Company has an additional $320.0 million in revolving commitments. The Company may be able to incur additional indebtedness in the future, including secured debt.
Added
The Company’s expenditures for postretirement benefit obligations could be materially higher than it has predicted if its underlying assumptions prove to be incorrect. The Company pays postretirement health and life insurance benefits to eligible retirees.
Removed
Peabody Energy Corporation 2023 Form 10-K 39 Table of Contents The future payment of dividends on Peabody’s stock or future repurchases of its stock is dependent on a number of factors and cannot be assured. On April 17, 2023, the Company announced that its Board of Directors approved a shareholder return framework which includes share repurchases and cash dividends.
Added
The Company is in an industry and business involving energy-related assets that is at a relatively greater risk of security breaches by sophisticated adversaries, such as nation state actors, as compared to other targets.
Removed
The amount of any share repurchase transactions is subject to the Company’s annual Available Free Cash Flow (as defined in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations”).
Added
The Company’s information systems and those of important third parties are vulnerable to malicious and intentional cyberattacks involving malware (such as ransomware), accidental or inadvertent incidents, the exploitation of security vulnerabilities or “bugs” in software or hardware, social engineering/phishing attacks, and malfeasance by insiders, among other scenarios.
Added
Both the frequency and magnitude of cybersecurity attacks is expected to increase, and attackers are increasingly sophisticated.
Added
As a result, Peabody may be unable to anticipate, detect or prevent future attacks at its current resource levels, particularly as the methodologies utilized by attackers change frequently or are not recognized until launched, and Peabody may be unable to investigate or remediate incidents because attackers are increasingly using techniques and tools (such as artificial intelligence and machine learning) designed to circumvent controls, avoid detection, and remove or obfuscate forensic evidence.
Added
Peabody’s information and operational technology systems may be adversely affected by disruptions, damage, failure and risks associated with implementation and integration, including of new technologies. Peabody could be adversely affected by system or network disruptions if new or upgraded information or operational technology systems are defective, not installed properly or not properly integrated into its operations.
Added
Peabody Energy Corporation 2024 Form 10-K 35 Tab le of Contents Further, Peabody increasingly depends on its information technology infrastructure for electronic communications among its operations, personnel, customers and suppliers around the world, including as a result of remote working and flexible working arrangements.
Added
These information technology systems, some of which are managed by third parties that the Company does not control, have been and may in the future be susceptible to damage, disruptions or shutdowns.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

2 edited+0 added−1 removed9 unchanged
Biggest changePeabody continues to invest in the cybersecurity and resiliency of its networks and to enhance its internal controls and processes, which are designed to help protect its systems and infrastructure, and the information they contain.
Biggest changePeabody continues to invest in the cybersecurity and resiliency of its networks and to enhance its internal controls and processes, which are designed to help protect its systems and infrastructure, and the information they contain. For more information regarding the risks the Company faces from cybersecurity threats, refer to Item 1A. “Risk Factors.”
Governance Peabody’s Board of Directors maintains direct oversight over cybersecurity risks and oversees an enterprise-wide approach to risk management, designed to support the achievement of organizational objectives to enhance long-term performance and stockholder value.
Peabody Energy Corporation 2024 Form 10-K 40 Tab le of Contents Governance Peabody’s Board of Directors maintains direct oversight over cybersecurity risks and oversees an enterprise-wide approach to risk management, designed to support the achievement of organizational objectives to enhance long-term performance and stockholder value.
Removed
Peabody Energy Corporation 2023 Form 10-K 41 Table of Contents For more information regarding the risks the Company faces from cybersecurity threats, refer to Item 1A. “Risk Factors.”

Item 2. Properties

Properties — owned and leased real estate

57 edited+7 added−4 removed88 unchanged
Biggest changeThermal: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Bear Run USA IN P S T 48 10.3 3.1 11,120 24 10.0 2.5 11,100 72 10.2 2.9 11,115 100 % El Segundo/Lee Ranch USA NM P S T 10 16.0 0.9 9,260 1 12.3 0.7 9,526 11 15.7 0.8 9,280 100 % Gateway North USA IL P U T 23 8.8 2.9 10,919 3 8.8 2.9 10,944 26 8.8 2.9 10,922 100 % Twentymile USA CO P U T 8 10.7 0.4 11,277 1 10.6 0.4 11,263 9 10.7 0.5 11,275 100 % Wild Boar USA IN P S T 7 8.4 2.4 10,985 6 8.1 2.8 11,235 13 8.2 2.6 11,110 100 % Francisco Underground USA IN P U T 3 8.8 3.0 11,495 2 8.9 3.2 11,490 5 8.8 3.1 11,493 100 % Total 99 37 136 Grand total 1,788 305 2,093 Stage Mining Method Coal Type P Producing S Surface Mine T Thermal I Idle U Underground Mine C Coking D Development P Pulverized Coal Injection E Exploration Peabody Energy Corporation 2023 Form 10-K 46 Table of Contents SUMMARY COAL RESOURCES AT END OF THE FISCAL YEAR ENDED DECEMBER 31, 2023 (1) (Tons in millions) Measured and Indicated Peabody Mining Coal Measured Coal Resources Indicated Coal Resources Coal Resources Inferred Coal Resources Interest Deposit Country State Stage Method Type Amount Quality Amount Quality Amount Quality Amount Quality (10) Seaborne Thermal: (2)(4) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Wilpinjong AUS NSW P S T 103 23.0 0.5 6,058 25 25.4 0.5 5,861 128 23.5 0.5 6,020 6 27.3 0.5 5,698 100 % Wambo Opencut (9) AUS NSW P S T/C 217 21.2 0.4 5,757 154 21.5 0.4 5,764 371 21.3 0.4 5,760 265 22.0 0.4 5,437 50 % South Wambo AUS NSW E U T/C 219 21.5 0.3 6,068 83 27.2 0.3 5,571 302 23.1 0.3 5,931 47 36.3 0.3 4,745 100 % Total 539 262 801 318 Seaborne Metallurgical: (3)(4) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Shoal Creek USA AL P U C 37 9.6 0.7 25.1 34 9.9 0.7 24.1 71 9.8 0.7 24.6 7 10.3 0.7 24.0 100 % Metropolitan AUS NSW P U C/P/T 7 15.4 0.4 18.6 8 15.3 0.3 18.7 15 15.3 0.4 18.6 2 16.0 0.3 19.0 100 % Coppabella AUS QLD P S P 13 15.8 0.3 13.0 46 14.6 0.3 12.8 59 14.9 0.3 12.8 60 15.7 0.3 12.4 73.3 % Moorvale AUS QLD P S C/P/T 14 18.5 0.3 16.7 14 17.2 0.3 16.6 28 17.9 0.3 16.7 5 15.9 0.3 16.7 73.3 % Moorvale South AUS QLD P S C/P/T 3 18.3 0.4 18.4 7 18.2 0.4 18.3 10 18.2 0.4 18.3 6 16.8 0.4 17.7 73.3 % Centurion (GLB2) AUS QLD E U C — — — — 2 14.8 0.5 20.7 2 14.8 0.5 20.7 8 13.6 0.5 20.7 100 % Coppabella North AUS QLD E U P 255 15.8 0.3 14.6 102 16.8 0.3 14.6 357 16.1 0.3 14.6 12 16.5 0.3 14.3 75.5 % Yeerun AUS QLD E S P 16 16.0 0.4 14.3 57 16.2 0.5 15.0 73 16.2 0.4 14.8 46 17.8 0.5 14.7 83.0 % Moorvale North AUS QLD E U P 21 26.0 0.4 12.9 25 24.5 0.5 13.2 46 25.2 0.4 13.1 25 23.2 0.5 13.4 73.3 % Gundyer AUS QLD E U P — — — — 54 16.4 0.2 19.7 54 16.4 0.2 19.7 70 18.3 0.2 18.3 90.0 % Total 366 349 715 241 Powder River Basin: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Caballo USA WY P S T 120 4.9 0.3 8,500 123 5.0 0.4 8,240 243 5.0 0.4 8,440 2 5.5 0.4 8,255 100 % Rawhide USA WY P S T 21 5.5 0.4 8,150 90 5.2 0.3 8,360 111 5.3 0.4 8,320 7 5.8 0.4 8,250 100 % Total 141 213 354 9 Other U.S.
Biggest changeThermal: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Bear Run USA IN P S T 51 10.3 3.1 11,070 18 9.5 2.5 11,050 69 10.1 2.9 11,065 100 % Lee Ranch USA NM P S T 7 17.5 0.9 9,271 1 16.0 0.8 9,477 8 17.3 0.9 9,297 100 % Gateway North USA IL P U T 19 8.8 2.9 10,919 3 8.9 2.9 10,916 22 8.9 2.9 10,917 100 % Twentymile USA CO P U T 8 10.8 0.4 11,260 1 11.0 0.5 11,260 9 10.8 0.4 11,260 100 % Wild Boar USA IN P S T 6 8.8 2.7 10,990 6 9.0 3.0 11,050 12 8.9 2.9 11,020 100 % Francisco Underground USA IN P U T 1 9.4 3.2 11,490 1 9.3 3.3 11,530 2 9.4 3.3 11,510 100 % Total 92 30 122 Grand total 1,724 393 2,117 Stage Mining Method Coal Type P Producing S Surface Mine T Thermal I Idle U Underground Mine C Coking D Development P Pulverized Coal Injection E Exploration Peabody Energy Corporation 2024 Form 10-K 46 Tab le of Contents SUMMARY COAL RESOURCES AT END OF THE FISCAL YEAR ENDED DECEMBER 31, 2024 (1) (Tons in millions) Measured and Indicated Peabody Mining Coal Measured Coal Resources Indicated Coal Resources Coal Resources Inferred Coal Resources Interest Deposit Country State Stage Method Type Amount Quality Amount Quality Amount Quality Amount Quality (10) Seaborne Thermal: (2)(4) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Wilpinjong AUS NSW P S T 137 23.4 0.5 6,018 59 25.3 0.5 5,872 196 24.0 0.5 5,974 9 26.5 0.5 5,767 100 % Wambo Opencut (9) AUS NSW P S/U T/C 223 20.9 0.4 5,825 181 21.5 0.4 5,813 404 21.2 0.4 5,820 273 20.3 0.4 5,865 50 % South Wambo AUS NSW E U T/C 219 21.5 0.3 6,068 83 27.2 0.3 5,571 302 23.1 0.3 5,931 47 36.3 0.3 4,745 100 % Total 579 323 902 329 Seaborne Metallurgical: (3)(4) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Shoal Creek USA AL P U C 37 9.6 0.7 24.8 34 9.6 0.7 24.8 71 9.6 0.7 24.8 6 9.6 0.7 24.8 100 % Metropolitan AUS NSW P U C/P/T 7 15.4 0.4 18.6 8 15.3 0.3 18.7 15 15.3 0.4 18.6 2 16.0 0.3 19.0 100 % Coppabella AUS QLD P S P 12 15.9 0.3 13.2 39 16.0 0.3 12.6 51 16.0 0.3 12.7 50 15.7 0.3 12.6 73.3 % Moorvale AUS QLD P S C/P/T 22 18.8 0.3 17.3 17 17.6 0.3 18.6 39 18.3 0.3 17.9 6 16.4 0.3 17.1 73.3 % Centurion AUS QLD E U C 96 20.7 0.5 21.9 485 17.9 0.5 19.6 581 18.4 0.5 20.0 286 21.1 0.5 18.9 100 % Coppabella North AUS QLD E U P 255 15.8 0.3 14.6 102 16.8 0.3 14.6 357 16.1 0.3 14.6 12 16.5 0.3 14.3 75.5 % Yeerun AUS QLD E S P 16 16.0 0.4 14.3 57 16.2 0.5 15.0 73 16.2 0.4 14.8 46 17.8 0.5 14.7 83.0 % Moorvale North AUS QLD E S P 21 26.0 0.4 12.9 25 24.5 0.5 13.2 46 25.2 0.4 13.1 25 23.2 0.5 13.4 73.3 % Gundyer AUS QLD E U P — — — — 54 16.4 0.2 19.7 54 16.4 0.2 19.7 70 18.3 0.2 18.3 90.0 % Total 466 821 1,287 503 Powder River Basin: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Caballo USA WY P S T 143 5.0 0.3 8,525 114 5.2 0.4 8,240 257 5.1 0.3 8,440 2 5.5 0.4 8,370 100 % Rawhide USA WY P S T 13 5.5 0.4 8,120 95 5.2 0.3 8,355 108 5.2 0.3 8,330 7 5.8 0.4 8,235 100 % Total 156 209 365 9 Other U.S.
As of December 31, 2023, the Company leased 1,610 acres of federal land in Alabama, 3,480 acres in Colorado, 282 acres in New Mexico and 38,915 acres in Wyoming, for a total of 44,287 acres nationwide subject to those limitations. The Company also leases coal-mining properties from various state governments in the U.S.
As of December 31, 2024, the Company leased 1,610 acres of federal land in Alabama, 3,480 acres in Colorado, 282 acres in New Mexico and 38,915 acres in Wyoming, for a total of 44,287 acres nationwide subject to those limitations. The Company also leases coal-mining properties from various state governments in the U.S.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”) Qualitative factors may include, as applicable, strategic priorities, the regulatory environment, capital expansion plans, and the long-term pricing outlook. The Company concluded that as of December 31, 2023, its individually material mines are North Antelope Rochelle Mine (NARM), Wilpinjong Mine and Centurion Mine.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”) Qualitative factors may include, as applicable, strategic priorities, the regulatory environment, capital expansion plans, and the long-term pricing outlook. The Company concluded that as of December 31, 2024, its individually material mines are North Antelope Rochelle Mine (NARM), Wilpinjong Mine and Centurion Mine.
As of December 31, 2023, all required licenses and permits were in place for the operations of NARM. The mining operation consists of multiple open pits in four main mining areas, which allows for quality blending and other optimization strategies. Overburden is removed by dragline, truck and shovel, dozer and cast blasting methods.
As of December 31, 2024, all required licenses and permits were in place for the operations of NARM. The mining operation consists of multiple open pits in four main mining areas, which allows for quality blending and other optimization strategies. Overburden is removed by dragline, truck and shovel, dozer and cast blasting methods.
The following tables summarize the Company’s estimated coal reserves and resources as of December 31, 2023. The quantity of the coal resources is estimated on an in situ basis as attributable to Peabody. Coal resources are reported exclusive of coal reserves. The quantity of the coal reserves is estimated on a saleable product basis as attributable to Peabody.
The following tables summarize the Company’s estimated coal reserves and resources as of December 31, 2024. The quantity of the coal resources is estimated on an in situ basis as attributable to Peabody. Coal resources are reported exclusive of coal reserves. The quantity of the coal reserves is estimated on a saleable product basis as attributable to Peabody.
The mining industry in the Powder River Basin anchors numerous communities from which the mine attracts qualified personnel. The property, plant, equipment and mine development assets of NARM had a net book value of approximately $375 million at December 31, 2023. The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan.
The mining industry in the Powder River Basin anchors numerous communities from which the mine attracts qualified personnel. The property, plant, equipment and mine development assets of NARM had a net book value of approximately $362 million at December 31, 2024. The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan.
The Wilpinjong Mine extracts coal from the Moolarben and Ulan coal seams which have a combined thickness from 6 to 10 meters and a typical depth less than 60 meters in the Illawarra Coal Measures on the northwest margin of the Sydney Basin.
The Wilpinjong Mine extracts coal from the Moolarben and Ulan coal seams which have a combined thickness from 6 to 10 meters and a typical waste depth of less than 80 meters in the Illawarra Coal Measures on the northwest margin of the Sydney Basin.
The quantity of the coal reserves is estimated on a saleable product basis as 100% attributable to Peabody. Coal reserves and resources are reported on selected key quality parameters on an air-dried basis.
The quantity of the coal resources is estimated on an in situ basis as 100% attributable to Peabody. Coal resources are reported exclusive of coal reserves. The quantity of the coal reserves is estimated on a saleable product basis as 100% attributable to Peabody. Coal reserves and resources are reported on selected key quality parameters on an air-dried basis.
Peabody Energy Corporation 2023 Form 10-K 55 Table of Contents The coal reserve and resource estimates have inherent risks due to data accuracy, uncertainty from geological interpretation, mine plan assumptions, uncontrolled rights for mineral and surface properties, environmental challenges, uncertainty for future market supply and demand, and changes in laws and regulations.
Peabody Energy Corporation 2024 Form 10-K 55 Tab le of Contents The coal reserve and resource estimates have inherent risks due to data accuracy, uncertainty from geological interpretation, mine plan assumptions, uncontrolled rights for mineral and surface properties, environmental challenges, uncertainty for future market supply and demand, and changes in laws and regulations.
The property, plant, equipment and mine development assets of Centurion Mine had a net book value of approximately $393 million at December 31, 2023. The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan.
The property, plant, equipment and mine development assets of Centurion Mine had a net book value of approximately $758 million at December 31, 2024. The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan.
(1) Economic recoverability is based upon product-specific estimated average sales prices per tonne of $51.65 for the five-year period ending December 31, 2028 and assumed escalation of 2.0% to 3.0% per annum during the subsequent period through the end of the LOM plan. (2) The quality of coal resources is on an in situ , air-dry basis.
(1) Economic recoverability is based upon product-specific estimated average sales prices per tonne of $61.36 for the five-year period ending December 31, 2029 and assumed escalation of 2.0% to 3.0% per annum during the subsequent period through the end of the LOM plan. (2) The quality of coal resources is on an in situ , air-dry basis.
Peabody Energy Corporation 2023 Form 10-K 50 Table of Contents Wilpinjong Mine The Wilpinjong Mine is a production-stage surface thermal coal mine situated approximately 25 miles northeast of Mudgee in New South Wales, Australia. Peabody acquired the mine as part of its acquisition of Excel Coal Pty Ltd (Excel) in 2006.
Peabody Energy Corporation 2024 Form 10-K 50 Tab le of Contents Wilpinjong Mine The Wilpinjong Mine is a production-stage surface thermal coal mine situated approximately 25 miles northeast of Mudgee in New South Wales, Australia. Peabody acquired the mine as part of its acquisition of Excel Coal Pty Ltd (Excel) in 2006.
Peabody Energy Corporation 2023 Form 10-K 48 Table of Contents North Antelope Rochelle Mine The North Antelope Rochelle Mine (NARM) is a production-stage surface coal mine located sixty-five miles south of Gillette, Wyoming, USA. NARM is situated in the Gillette Coal Field on the east flank of the Powder River Basin.
Peabody Energy Corporation 2024 Form 10-K 48 Tab le of Contents North Antelope Rochelle Mine The North Antelope Rochelle Mine (NARM) is a production-stage surface coal mine located sixty-five miles south of Gillette, Wyoming, USA. NARM is situated in the Gillette Coal Field on the east flank of the Powder River Basin.
Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein. The changes for NARM from the previous years are not material and no updates for the TRS are included in this filing.
Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein. The changes for NARM and Wilpinjong from the previous years are not material, thus no updates for the TRSs are included in this filing.
Reference should be made to the full text of the TRS, incorporated herein by reference, made a part of Peabody’s Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 18, 2022.
Reference should be made to the full text of the TRS, incorporated herein by reference, made a part of Peabody’s Annual Report on Form 10-K for the year ended December 31, 2021 and December 31, 2023 respectively, which was filed with the SEC on February 18, 2022 and February 23, 2024.
For U.S. domestic thermal mines, the estimated sales prices for the same period range from approximately $10.44 to $70.52 per ton. Subsequent to 2028, for all mines, sales price escalation is assumed at 2.0% to 3.0% per annum through the end of each LOM plan.
For U.S. domestic thermal mines, the estimated sales prices for the same period range from approximately $10.25 to $70.00 per ton. Subsequent to 2029, for all mines, sales price escalation is assumed at 2.0% to 3.0% per annum through the end of each LOM plan.
Centurion also has a nearby accommodation village with housing and service amenities for more than 400 workers located 19km east of the mine. The mine’s workforce is drawn primarily from the townships of Moranbah, Nebo and Mackay.
Centurion also has a nearby accommodation village with housing and service amenities for a capacity of 440 workers located 19km east of the mine. The mine’s workforce is drawn primarily from the townships of Moranbah, Nebo and Mackay.
(1) Economic recoverability is based upon an estimated average sales price per ton of $15.00 for the five-year period ending December 31, 2028 and assumed escalation of 2.0% per annum during the subsequent period through the end of the LOM plan.
(1) Economic recoverability is based upon an estimated average sales price per ton of $14.57 for the five-year period ending December 31, 2029 and assumed escalation of 2.0% per annum during the subsequent period through the end of the LOM plan.
Peabody Energy Corporation 2023 Form 10-K 44 Table of Contents In addition to the factors noted above, the prices which may be obtained at each mine or future mine can be impacted by factors such as (i) the mine’s location, which impacts the total delivered energy costs to its customers, (ii) quality characteristics, particularly if they are unique relative to competing mines, (iii) assumed transportation costs and (iv) other mine costs that are contractually passed on to customers in certain commercial relationships.
In addition to the factors noted above, the prices which may be obtained at each mine or future mine can be impacted by factors such as (i) the mine’s location, which impacts the total delivered energy costs to its customers, (ii) quality characteristics, particularly if they are unique relative to competing mines, (iii) assumed transportation costs and (iv) other mine costs that are contractually passed on to customers in certain commercial relationships.
Peabody Energy Corporation 2023 Form 10-K 54 Table of Contents The tables below present Centurion Mine’s estimated coal reserves and resources at December 31, 2023, along with comparative quantities at December 31, 2022. These coal reserve and resource estimates were supported by the analyses of 1,776 total drill holes within the coal lease area.
Peabody Energy Corporation 2024 Form 10-K 54 Tab le of Contents The tables below present Centurion Mine’s estimated coal reserves and resources at December 31, 2024, along with comparative quantities at December 31, 2023. These coal reserve and resource estimates were supported by the analyses of 2,065 total drill holes within the coal lease area.
(7) Mine yield is the ratio of estimated saleable product coal over ROM coal tons with mainly processing loss considered. Peabody Energy Corporation 2023 Form 10-K 52 Table of Contents Centurion Mine The Centurion Mine, which is currently undergoing redevelopment, is an underground longwall metallurgical coal mine located 160 kilometers WSW of Mackay, Queensland, Australia.
(7) Mine yield is the ratio of estimated saleable product coal over ROM coal tons with mainly processing loss considered. Peabody Energy Corporation 2024 Form 10-K 52 Tab le of Contents Centurion Mine The Centurion Mine is an underground longwall metallurgical coal mine located 160 kilometers WSW of Mackay, Queensland, Australia.
Summary of Coal Reserves and Resources Peabody controlled an estimated 2.1 billion tons of coal reserves and 2.7 billion tons of coal resources as of December 31, 2023. Approximately 97% of the Company’s coal reserves and 94% of the Company’s coal resources are held under lease, and the remainder is held through fee ownership.
Summary of Coal Reserves and Resources Peabody controlled an estimated 2.1 billion tons of coal reserves and 3.6 billion tons of coal resources as of December 31, 2024. Approximately 97% of the Company’s coal reserves and 96% of the Company’s coal resources are held under lease, and the remainder is held through fee ownership.
Routine maintenance, overhauls, and necessary capital replacements are generally included in the LOM plan to support future production. Peabody Energy Corporation 2023 Form 10-K 49 Table of Contents The table below presents NARM coal reserve estimates at December 31, 2023, along with comparative quantities at December 31, 2022. NARM did not hold any coal resources as of December 31, 2023.
Routine maintenance, overhauls, and necessary capital replacements are generally included in the LOM plan to support future production. Peabody Energy Corporation 2024 Form 10-K 49 Tab le of Contents The table below presents NARM coal reserve estimates at December 31, 2024, along with comparative quantities at December 31, 2023.
NARM - SUMMARY OF COAL RESERVES (1) (Tons in millions) December 31, 2023 December 31, 2022 Coal Reserves (2)(3)(4) Tons %Ash %Sulfur Btu % Mine Yield (5) Tons Proven 1,261 4.6 0.2 8,880 100 % 1,316 Probable 103 4.7 0.2 8,885 100 % 107 Total 1,364 1,423 Year-over-year decrease (4) % The year-over-year decrease in the quantity of coal reserves was driven by production depletion.
NARM - SUMMARY OF COAL RESERVES (1) (Tons in millions) December 31, 2024 December 31, 2023 Coal Reserves (2)(3)(4) Tons %Ash %Sulfur Btu % Mine Yield (5) Tons Proven 1,212 4.6 0.2 8,900 100 % 1,261 Probable 88 4.7 0.2 8,910 100 % 103 Total 1,300 1,364 Year-over-year decrease (5) % The year-over-year decrease in the quantity of coal reserves was driven by production depletion.
As of December 31, 2023, all required licenses and permits were in place for the operations of Wilpinjong. Conventional open cut mining methods are used at the Wilpinjong Coal Mine, with multiple pits at a low strip ratio allowing for relatively rapid pit advance. Overburden is removed by a combination of cast blasting, dozer, and truck and excavator methods.
Conventional open cut mining methods are used at the Wilpinjong Coal Mine, with multiple pits at a low strip ratio allowing for relatively rapid pit advance. Overburden is removed by a combination of cast blasting, dozer, and truck and excavator methods.
The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. • Indicated resource.
The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Peabody Energy Corporation 2024 Form 10-K 41 Tab le of Contents • Indicated resource.
The Company holds the majority of the required surface rights to meet mid- to long-term production requirements. The additional surface rights to meet long-term production requirements are expected to be acquired as needed. The Company is party to numerous U.S. federal coal leases that are administered by the U.S.
The Company holds the majority of the required surface rights to meet mid- to long-term production requirements. The additional surface rights to meet long-term production requirements are expected to be acquired as needed. Peabody Energy Corporation 2024 Form 10-K 42 Tab le of Contents The Company is party to numerous U.S. federal coal leases that are administered by the U.S.
Costs The cost estimates used to establish LOM plans are generally made according to internal processes that project future costs based on historical costs and expected trends. The estimated costs normally include mining, processing, transportation, royalty, add-on tax and other mining-related costs.
Peabody Energy Corporation 2024 Form 10-K 44 Tab le of Contents Costs The cost estimates used to establish LOM plans are generally made according to internal processes that project future costs based on historical costs and expected trends. The estimated costs normally include mining, processing, transportation, royalty, add-on tax and other mining-related costs.
The mine’s proximity to other large coal producers in the region provides access to a significant pool of experienced mining personnel. Peabody Energy Corporation 2023 Form 10-K 51 Table of Contents The property, plant, equipment and mine development assets of Wilpinjong Mine had a net book value of approximately $307 million at December 31, 2023.
The mine’s proximity to other large coal producers in the region provides access to a significant pool of experienced mining personnel. The property, plant, equipment and mine development assets of Wilpinjong Mine had a net book value of approximately $266 million at December 31, 2024.
For the five-year period 2024 through 2028, the estimated sales prices for seaborne metallurgical mines are based upon estimated premium hard coking coal benchmark prices ranging from $180 to $239 per tonne. The estimated sales prices for seaborne thermal mines are based upon estimated Newcastle benchmark prices ranging from $92 to $128 per tonne for the same period.
For the five-year period 2025 through 2029, the estimated sales prices for seaborne metallurgical mines are based upon estimated premium hard coking coal benchmark prices ranging from $200 to $215 per tonne. The estimated sales prices for seaborne thermal mines are based upon estimated Newcastle benchmark prices ranging from $100 to $121 per tonne for the same period.
The terms of private U.S. leases are normally extended by active production at or near the end of the lease term. Private U.S. leases containing undeveloped coal properties may expire or these leases may be renewed periodically.
The terms of private U.S. leases are normally extended by active production at or near the end of the lease term. Private U.S. leases containing undeveloped coal properties may expire or these leases may be renewed periodically. Mining and exploration in Australia are generally carried out under leases or licenses granted by state governments.
The Company has secured three exploration licenses of 2,958 hectares and four mining leases of 3,790 hectares through the New South Wales Minister of Planning. The typical royalty rate is 8.2% currently, increasing to 10.8% in July of 2024, of the value of coal recovered.
The Company has secured three exploration licenses of 2,958 hectares and four mining leases of 3,790 hectares through the New South Wales Minister of Planning. The typical royalty rate is 10.8% of the value of coal recovered. The mining leases require renewal upon expiration in 2027 for 2,863 hectares and in 2039-2044 for 927 hectares.
The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.
The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. The geological confidence surrounding resource classification is first determined by a drill hole spacing analysis performed by a QP using geostatistical techniques.
The saleable product mix for a mine may include multiple thermal and metallurgical products with different targeted qualities and sales prices.
The LOM plans project, among other things, annual quantities and qualities for each coal product. The saleable product mix for a mine may include multiple thermal and metallurgical products with different targeted qualities and sales prices.
(2) The quality of coal reserves and resources are estimated on an air-dry basis. (3) The quantity of coal resource estimates are on an in situ basis, which doesn’t take into consideration coal loss during mining and processing.
(1) Economic recoverability is based upon an estimated average sales price per tonne of $210 for the LOM plan. (2) The quality of coal reserves and resources are estimated on an air-dry basis. (3) The quantity of coal resource estimates are on an in situ basis, which doesn’t take into consideration coal loss during mining and processing.
Internationally, thermal coal-fueled generation also competes with alternative forms of electricity generation. The competitiveness and availability of generation fueled by natural gas, oil, nuclear, hydro, wind, solar and biomass vary by country and region and can have a meaningful impact on coal pricing. Policy and regulations, which vary from country to country, can also influence prices.
Peabody Energy Corporation 2024 Form 10-K 43 Tab le of Contents Internationally, thermal coal-fueled generation also competes with alternative forms of electricity generation. The competitiveness and availability of generation fueled by natural gas, oil, nuclear, hydro, wind, solar and biomass vary by country and region and can have a meaningful impact on coal pricing.
Pricing The pricing information used in support of the Company’s coal reserve and resource estimates include internal, proprietary price forecasts and existing contract economics, in each case on a mine-by-mine and product-by-product basis.
Surface rights are typically acquired directly from landowners through agreement or court determination, subject to some exceptions. Pricing The pricing information used in support of the Company’s coal reserve and resource estimates include internal, proprietary price forecasts and existing contract economics, in each case on a mine-by-mine and product-by-product basis.
The mine’s operating equipment meets contemporary mining standards and is adequately maintained to execute the LOM plan. Routine maintenance, overhauls and necessary capital replacements are generally included in the LOM plan to support future production. The tables below present Wilpinjong Mine’s estimated coal reserves and resources at December 31, 2023, along with comparative quantities at December 31, 2022.
The mine’s operating equipment meets contemporary mining standards and is adequately maintained to execute the LOM plan. Routine maintenance, overhauls and necessary capital replacements are generally included in the LOM plan to support future production.
WILPINJONG MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1) (Tons in millions) December 31, 2023 December 31, 2022 Coal Reserves (5)(6) Tons %Ash %Sulfur Kcal/kg % Mine Yield (7) Tons Proven 54 24.2 0.5 5,953 82 % 63 Probable 3 30.3 0.4 5,431 82 % 4 Total 57 67 Year-over-year decrease (15) % December 31, 2023 December 31, 2022 Coal Resources (2)(3)(4) Tons %Ash %Sulfur Kcal/kg Tons Measured 103 23.0 0.5 6,058 103 Indicated 25 25.4 0.5 5,861 25 Measured and indicated 128 23.5 0.5 6,020 128 Inferred 6 27.3 0.5 5,698 6 Total 134 134 The year-over-year decrease in the quantity of coal reserves was driven by production depletion.
WILPINJONG MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1) (Tons in millions) December 31, 2024 December 31, 2023 Coal Reserves (5)(6) Tons %Ash %Sulfur Kcal/kg % Mine Yield (7) Tons Proven 43 24.5 0.5 5,927 84 % 54 Probable 3 32.9 0.4 5,208 84 % 3 Total 46 57 Year-over-year decrease (19) % December 31, 2024 December 31, 2023 Coal Resources (2)(3)(4) Tons %Ash %Sulfur Kcal/kg Tons Measured 137 23.4 0.5 6,018 103 Indicated 59 25.3 0.5 5,872 25 Measured and indicated 196 24.0 0.5 5,974 128 Inferred 9 26.5 0.5 5,767 6 Total 205 134 The year-over-year decrease in the quantity of coal reserves was driven by production depletion.
These coal reserve estimates were supported by the analyses of 4,869 total drill holes within the coal lease area. The quantity of the coal reserves is estimated on a saleable product basis and deemed 100% attributable to Peabody. In addition to quantity, the table presents selected key quality parameters on an as-shipped basis.
NARM did not hold any coal resources as of December 31, 2024. These coal reserve estimates were supported by the analyses of 4,884 total drill holes within the coal lease area. The quantity of the coal reserves is estimated on a saleable product basis and deemed 100% attributable to Peabody.
Centurion Mine will extract coal from the Goonyella Middle seam with future plans to extend into the Goonyella Lower B2 (GLB2) seam with mining depths ranging from 210 meters to 540 meters.
In December 2023, the mine was renamed the Centurion Mine. Development operations recommenced at the mine in June 2024, with Longwall operations scheduled to commence in early 2026. Centurion Mine will extract coal from the Goonyella Middle seam with future plans to extend into the Goonyella Lower B2 (GLB2) seam with mining depths ranging from 210 meters to 540 meters.
The mining leases require renewal upon expiration in 2027 for 2,863 hectares and in 2039-2044 for 927 hectares. Renewal applications for two exploration licenses were approved in 2023, with the terms extended to December 2027 and March 2028, and the third was granted in May 2022 for an initial term of 6 years.
Renewal applications for two exploration licenses were approved in 2023, with the terms extended to December 2027 and March 2028, and the third was granted in May 2022 for an initial term of 6 years. As of December 31, 2024, all required licenses and permits were in place for the operations of Wilpinjong.
Each coal deposit is different with respect to geology, potential mining methods, logistics, and markets. The cut-off criteria of those structure and quality parameters are different for each deposit, and a QP generally forms those criteria based upon experience with the Company’s existing mining operations or adjacent operations with similar geological conditions.
The cut-off criteria of those structure and quality parameters are different for each deposit, and a QP generally forms those criteria based upon experience with the Company’s existing mining operations or adjacent operations with similar geological conditions. Other factors, such as coal control, or surface and underground obstacles are also considered in connection with resource estimates.
Shipping of coal to customers will take place on an ocean-going vessel, often shared with other coal suppliers. Centurion Coking coal is a premium Hard Coking Coal (PHCC) with a mature brand name in the seaborne metallurgical marketplace and is well known in both the Atlantic and Pacific seaborne markets.
Centurion Coking coal is a premium Hard Coking Coal (PHCC) with a mature brand name in the seaborne metallurgical marketplace and is well known in both the Atlantic and Pacific seaborne markets.
Peabody Energy Corporation 2023 Form 10-K 45 Table of Contents SUMMARY COAL RESERVES AT END OF THE FISCAL YEAR ENDED DECEMBER 31, 2023 (1) (Tons in millions) Peabody Mining Coal Proven Coal Reserves Probable Coal Reserves Total Coal Reserves Interest Segment / Mining Complex Country State Stage Method Type Amount Quality Amount Quality Amount Quality (10) Seaborne Thermal: (2)(4) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Wilpinjong AUS NSW P S T 54 24.2 0.5 5,953 3 30.3 0.4 5,431 57 24.5 0.5 5,925 100 % Wambo Opencut (9) AUS NSW P S T/C 24 11.2 0.3 6,425 1 11.3 0.3 6,418 25 11.2 0.3 6,425 50 % Wambo Underground AUS NSW P U T/C 1 12.8 0.4 6,473 3 12.3 0.4 6,588 4 12.4 0.4 6,559 100 % South Wambo AUS NSW E U T/C — — — — 74 9.8 0.3 7,034 74 9.8 0.3 7,034 100 % Total 79 81 160 Seaborne Metallurgical: (3)(4) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Shoal Creek USA AL P U C 15 9.6 0.7 30.4 2 9.7 0.7 30.2 17 9.6 0.7 30.3 100 % Coppabella AUS QLD P S P 7 9.3 0.2 10.2 15 9.5 0.2 10.0 22 9.4 0.2 10.1 73.3 % Moorvale AUS QLD P S C/P/T 4 11.4 0.3 16.5 — — — — 4 11.4 0.3 16.5 73.3 % Metropolitan AUS NSW P U C/P/T 1 11.7 0.4 18.6 9 11.7 0.4 18.4 10 11.7 0.4 18.4 100 % Centurion AUS QLD D U C 46 7.4 0.5 20.9 23 7.5 0.5 21.1 69 7.4 0.5 21.0 100 % Moorvale South AUS QLD P S C/P/T 3 11.1 0.4 18.5 2 9.8 0.4 17.5 5 10.6 0.4 18.1 73.3 % Middlemount (9) AUS QLD P S C/P 26 10.3 0.4 18.0 10 10.3 0.4 18.0 36 10.3 0.4 18.0 50.0 % Total 102 61 163 Powder River Basin: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) North Antelope Rochelle USA WY P S T 1,261 4.6 0.2 8,880 103 4.7 0.2 8,885 1,364 4.6 0.2 8,880 100 % Caballo USA WY P S T 160 5.2 0.3 8,495 20 5.5 0.4 8,325 180 5.2 0.3 8,475 100 % Rawhide USA WY P S T 87 5.5 0.4 8,300 3 5.7 0.3 8,310 90 5.5 0.3 8,300 100 % Total 1,508 126 1,634 Other U.S.
Peabody Energy Corporation 2024 Form 10-K 45 Tab le of Contents SUMMARY COAL RESERVES AT END OF THE FISCAL YEAR ENDED DECEMBER 31, 2024 (1) (Tons in millions) Peabody Mining Coal Proven Coal Reserves Probable Coal Reserves Total Coal Reserves Interest Segment / Mining Complex Country State Stage Method Type Amount Quality Amount Quality Amount Quality (10) Seaborne Thermal: (2)(4) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Wilpinjong AUS NSW P S T 43 24.5 0.5 5,927 3 32.9 0.4 5,208 46 25.0 0.5 5,880 100 % Wambo Opencut (9) AUS NSW P S T/C 27 11.3 0.3 6,412 2 11.1 0.3 6,434 29 11.3 0.3 6,414 50 % Wambo Underground AUS NSW P U T/C 1 12.2 0.4 6,473 — — — — 1 12.2 0.4 6,473 100 % South Wambo AUS NSW E U T/C — — — — 74 9.8 0.3 7,034 74 9.8 0.3 7,034 100 % Total 71 79 150 Seaborne Metallurgical: (3)(4) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Shoal Creek USA AL P U C 13 9.6 0.7 30.4 3 9.6 0.7 30.4 16 9.6 0.7 30.4 100 % Coppabella AUS QLD P S P 6 9.0 0.2 9.9 32 9.6 0.2 10.4 38 9.5 0.2 10.3 73.3 % Moorvale AUS QLD P S C/P/T 6 11.1 0.3 17.0 — — — — 6 11.1 0.3 17.0 73.3 % Metropolitan AUS NSW P U C/P/T 1 11.5 0.4 18.9 10 11.8 0.4 18.8 11 11.8 0.4 18.8 100 % Centurion AUS QLD D U C 84 8.0 0.5 21.7 107 7.8 0.5 20.6 191 7.9 0.5 21.1 100 % Middlemount (9) AUS QLD P S C/P 25 10.3 0.4 18.0 10 10.3 0.4 18.0 35 10.3 0.4 18.0 50.0 % Total 135 162 297 Powder River Basin: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) North Antelope Rochelle USA WY P S T 1,212 4.6 0.2 8,900 88 4.7 0.2 8,910 1,300 4.6 0.2 8,900 100 % Caballo USA WY P S T 136 5.2 0.3 8,470 32 5.7 0.4 8,305 168 5.3 0.3 8,440 100 % Rawhide USA WY P S T 78 5.7 0.3 8,285 2 5.3 0.3 8,360 80 5.7 0.3 8,290 100 % Total 1,426 122 1,548 Other U.S.
Resources are further evaluated using a set of structure and quality parameters to determine the reasonable prospects for economic extraction. The structure parameters include coal thickness, depth, dipping angle, and strip ratio, among others. The quality parameters include ash and sulfur content, yield, and heat value, among others.
A QP may also use qualitative analysis to determine the geologic confidence based on historical experience with a specific coal deposit. Resources are further evaluated using a set of structure and quality parameters to determine the reasonable prospects for economic extraction. The structure parameters include coal thickness, depth, dipping angle, and strip ratio, among others.
The LOM plans consider dilution and losses during mining and processing as recoverability factors to estimate saleable coal. The LOM plans are developed in consideration of market demands and operational constraints. The LOM plans project, among other things, annual quantities and qualities for each coal product.
QPs rely on LOM planning as an integral process for coal reserve and resource estimates. The LOM plans consider dilution and losses during mining and processing as recoverability factors to estimate saleable coal. The LOM plans are developed in consideration of market demands and operational constraints.
Thermal: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Bear Run USA IN P S T 73 14.7 3.9 10,800 89 16.6 3.7 10,490 162 15.8 3.8 10,630 29 15.9 3.5 10,600 100 % Francisco Underground USA IN P U T 2 13.8 4.7 11,325 5 12.5 4.7 11,540 7 13.1 4.7 11,440 — — — — 100 % Gateway North USA IL P U T 25 13.1 3.9 10,583 17 13.1 3.9 10,583 42 13.1 3.9 10,583 — — — — 100 % El Segundo/Lee Ranch USA NM P S T 1 13.5 1.0 9,932 5 12.1 0.9 10,036 6 12.4 1.0 10,014 2 14.3 1.2 9,655 100 % Wild Boar USA IN P S T — — — — 3 11.7 5.5 11,390 3 11.7 5.5 11,390 1 12.0 5.5 11,290 100 % Total 101 119 220 32 Grand total 1,147 943 2,090 600 Peabody Energy Corporation 2023 Form 10-K 47 Table of Contents (1) The sales price assumptions supporting economic recoverability vary depending upon factors such as coal quality and existing customer volume commitments.
Thermal: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Bear Run USA IN P S T 75 14.9 3.8 10,800 81 16.6 3.7 10,485 156 15.8 3.8 10,635 25 15.7 3.5 10,645 100 % Francisco Underground USA IN P U T 6 14.0 5.3 11,245 5 13.5 5.4 11,310 11 13.8 5.3 11,270 — — — — 100 % Gateway North USA IL P U T 29 12.8 4.0 10,603 15 12.9 4.0 10,606 44 12.9 4.0 10,604 — — — — 100 % Lee Ranch USA NM P S T 1 12.4 1.1 10,038 6 11.8 1.0 10,044 7 11.9 1.0 10,043 3 13.4 1.2 9,787 100 % Wild Boar USA IN P S T — — — — 3 11.7 5.5 11,390 3 11.7 5.5 11,390 1 12.1 5.3 11,290 100 % Total 111 110 221 29 Grand total 1,312 1,463 2,775 870 Peabody Energy Corporation 2024 Form 10-K 47 Tab le of Contents (1) The sales price assumptions supporting economic recoverability vary depending upon factors such as coal quality and existing customer volume commitments.
Product coal will be loaded to train via an existing 1,000t Train Loadout Bin. The loaded trains will then travel some 217km to the Port of Hay Point where it will be bottom dumped to conveyor and onto stockpiles at Dalrymple Bay Coal Terminal (DBCT).
The loaded trains will then travel some 217km to the Port of Hay Point where it will be bottom dumped to conveyor and onto stockpiles at Dalrymple Bay Coal Terminal (DBCT). Shipping of coal to customers will take place on an ocean-going vessel, often shared with other coal suppliers.
For each mine or future mine, the Company develops Life-of-Mine (LOM) plans which employ a market-driven, risk-adjusted capital allocation process to guide long-term mine planning of active operations and development projects. QPs rely on LOM planning as an integral process for coal reserve and resource estimates.
The economically mineable part of indicated, and sometimes measured, coal resources are considered probable coal reserves and have a moderate degree of assurance of economic viability. For each mine or future mine, the Company develops Life-of-Mine (LOM) plans which employ a market-driven, risk-adjusted capital allocation process to guide long-term mine planning of active operations and development projects.
Reference should be made to the full text of the TRSs for Wilpinjong and Centurion Mines, incorporated herein by reference and made a part of this Annual Report on Form 10-K.
Reference should be made to the full text of the TRS for the Centurion Mine, incorporated herein by reference and made a part of Peabody’s filing on Form 8-K filed with the SEC on October 15, 2024.
Peabody Energy Corporation 2023 Form 10-K 43 Table of Contents Mining and exploration in Australia are generally carried out under leases or licenses granted by state governments. Mining leases are typically for an initial term of up to 21 years (but which may be renewed) and contain conditions relating to such matters as minimum annual expenditures, restoration and rehabilitation.
Mining leases are typically for an initial term of up to 21 years (but which may be renewed) and contain conditions relating to such matters as minimum annual expenditures, restoration and rehabilitation. Royalties are paid to the state government as a percentage of the sales price.
The economically mineable part of a measured coal resource is considered a proven coal reserve and has the highest degree of assurance of economic viability. The economically mineable part of indicated, and sometimes measured, coal resources are considered probable coal reserves and have a moderate degree of assurance of economic viability.
The reclassification of reported mineral resources from lower to higher levels of geological confidence should not be assumed. The economically mineable part of a measured coal resource is considered a proven coal reserve and has the highest degree of assurance of economic viability.
Royalties are paid to the state government as a percentage of the sales price. Generally, landowners do not own the mineral rights or have the ability to grant rights to mine those minerals. These rights are retained by state governments.
Generally, landowners do not own the mineral rights or have the ability to grant rights to mine those minerals. These rights are retained by state governments. Compensation is payable to landowners for loss of access to the land, and the amount of compensation can be determined by agreement or court process.
CENTURION MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1) (Tons in millions) December 31, 2023 December 31, 2022 Coal Reserves (2)(5)(6) Tons %Ash %Sulfur %VM % Mine Yield (7) Tons Proven 46 7.4 0.5 20.9 82 % 46 Probable 23 7.5 0.5 21.1 82 % 24 Total 69 70 Year-over-year decrease (1) % December 31, 2023 December 31, 2022 Coal Resources (2)(3)(4)(5) Tons %Ash %Sulfur VM% Tons Measured — — — — — Indicated 2 14.8 0.5 20.7 1 Measured and indicated 2 14.8 0.5 20.7 1 Inferred 8 13.6 0.5 20.7 8 Total 10 9 (1) Economic recoverability is based upon an estimated average sales price per tonne of $180 for most of the LOM plan.
CENTURION MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1) (Tons in millions) December 31, 2024 December 31, 2023 Coal Reserves (2)(5)(6) Tons %Ash %Sulfur %VM % Mine Yield (7) Tons Proven 84 8.0 0.5 21.7 81 % 46 Probable 107 7.8 0.5 20.6 82 % 23 Total 191 69 Year-over-year increase 177 % December 31, 2024 December 31, 2023 Coal Resources (2)(3)(4)(5) Tons %Ash %Sulfur VM% Tons Measured 96 20.7 0.5 21.9 — Indicated 485 17.9 0.5 19.6 2 Measured and indicated 581 18.4 0.5 20.0 2 Inferred 286 21.1 0.5 18.9 8 Total 867 10 The year-over-year increase in the quantity of coal reserves and resources was driven by the Wards Well acquisition in April 2024.
These coal reserve and resource estimates were supported by the analyses of 1,271 total drill holes within the coal lease area. The quantity of the coal resources is estimated on an in situ basis as 100% attributable to Peabody. Coal resources are reported exclusive of coal reserves.
Peabody Energy Corporation 2024 Form 10-K 51 Tab le of Contents The tables below present Wilpinjong Mine’s estimated coal reserves and resources at December 31, 2024, along with comparative quantities at December 31, 2023. These coal reserve and resource estimates were supported by the analyses of 1,271 total drill holes within the coal lease area.
Peabody Energy Corporation 2023 Form 10-K 53 Table of Contents Coal will be produced primarily using longwall systems. The mine will also use continuous miner units for longwall development and limited production. Mined coal will be processed through the on-site wash plant and conveyed to rail loadout facilities.
The Centurion North mine also comprises a small portion of MDL3010 (Dabin) which is owned by the West Burton Joint Venture (85% Peabody) and has a land area of 10,827 hectares. Coal will be produced primarily using longwall systems. The mine will also use continuous miner units for longwall development and limited production.
Removed
Peabody Energy Corporation 2023 Form 10-K 42 Table of Contents The geological confidence surrounding resource classification is first determined by a drill hole spacing analysis performed by a QP using geostatistical techniques. A QP may also use qualitative analysis to determine the geologic confidence based on historical experience with a specific coal deposit.
Added
The quality parameters include ash and sulfur content, yield, and heat value, among others. Each coal deposit is different with respect to geology, potential mining methods, logistics, and markets.
Removed
Other factors, such as coal control, or surface and underground obstacles are also considered in connection with resource estimates. The reclassification of reported mineral resources from lower to higher levels of geological confidence should not be assumed.
Added
Policy and regulations, which vary from country to country, can also influence prices.
Removed
Compensation is payable to landowners for loss of access to the land, and the amount of compensation can be determined by agreement or court process. Surface rights are typically acquired directly from landowners through agreement or court determination, subject to some exceptions.
Added
In addition to quantity, the table presents selected key quality parameters on an as-shipped basis.
Removed
The relevant TRSs for Wilpinjong and Centurion Mines are included as Exhibits 96.2 and 96.3, respectively, to this Annual Report on Form 10-K, and specific sections of such TRSs are referenced below using the corresponding exhibit number.
Added
The year-over-year increase in the quantity of coal resources was driven by inclusion of areas with the lease EL9399.
Added
During the third quarter of 2022, Peabody initiated the development of the mine. In October 2023, Peabody entered into an agreement with Stanmore to purchase the southern area of Wards Well (ML 1790 and ML 70495) with the intent to expand underground operations to the North of the North Goonyella Mine footprint and eventually extend into Dabin (MDL 3010).
Added
Peabody Energy Corporation 2024 Form 10-K 53 Tab le of Contents Centurion North is comprised of ML1790 and ML70495 (part of the Ward’s Well project which has been subdivided between Peabody and Stanmore) which encompasses surface areas of 2,723 hectares and 748 hectares, respectively.
Added
Mined coal will be processed through the on-site wash plant and conveyed to rail loadout facilities. Product coal will be loaded to train via an existing 1,000t Train Loadout Bin.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

11 edited+0 added−13 removed3 unchanged
Biggest change(Custom Composite Index); and (iii) the S&P Metals Mining Select Industry Index, which replaces the Custom Composite Index. As certain competitors within the Custom Composite Index have diversified from coal production, Peabody elected to use a published industry index. The graph assumes that the value of the investment in BTU and each index was $100 at December 31, 2018.
Biggest changeStock Performance Graph The following performance graph compares the cumulative total return on Peabody’s common stock with the cumulative total return of the S&P MidCap 400 Index and the S&P Metals and Mining Select Industry Index. The graph assumes that the value of the investment in BTU and each index was $100 at December 31, 2019.
On April 17, 2023, the Company announced that its Board of Directors authorized a new share repurchase program (2023 Repurchase Program) authorizing repurchases of up to $1.0 billion of its common stock. The 2023 Repurchase Program superseded and replaced the previous repurchase program that had been announced in 2017.
Share Repurchase Program On April 17, 2023, the Company announced that its Board of Directors authorized a new share repurchase program (2023 Repurchase Program) authorizing repurchases of up to $1.0 billion of its common stock. The 2023 Repurchase Program superseded and replaced the previous repurchase program that had been announced in 2017.
The graph also assumes that all dividends were reinvested and that the investments were held through December 31, 2023.
The graph also assumes that all dividends were reinvested and that the investments were held through December 31, 2024.
Peabody’s Common Stock is listed on the New York Stock Exchange, under the symbol “BTU.” As of February 16, 2024 there were 176 holders of the Company’s Common Stock, as determined by counting its record holders and the number of participants reflected in a security position listing provided to the Company by the Depository Trust Company (DTC).
Peabody’s Common Stock is listed on the New York Stock Exchange, under the symbol “BTU.” As of February 14, 2025 there were 170 holders of the Company’s Common Stock, as determined by counting its record holders and the number of participants reflected in a security position listing provided to the Company by the Depository Trust Company (DTC).
“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”) The manner, timing and pricing of any share repurchase transactions will be based on a variety of factors, including market conditions, applicable legal requirements and alternative opportunities that the Company may have for the use or investment of capital.
The manner, timing and pricing of any share repurchase transactions will be based on a variety of factors, including market conditions, applicable legal requirements, the Company’s capital structure and alternative opportunities that the Company may have for the use or investment of capital.
These indices are included for comparative purposes only and do not necessarily reflect management's opinion that such indices are an appropriate measure of the relative performance of the stock involved and are not intended to forecast or be indicative of possible future performance of the common stock. Item 6. Reserved. Not applicable.
These indices are included for comparative purposes only and do not necessarily reflect management's opinion that such indices are an appropriate measure of the relative performance of the stock involved and are not intended to forecast or be indicative of possible future performance of the common stock. Peabody Energy Corporation 2024 Form 10-K 57 Tab le of Contents Item 6.
Purchases of Equity Securities The following table summarizes all share purchases for the three months ended December 31, 2023: Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Dollar Value of Shares that May Yet Be Used to Repurchase Shares Under the Publicly Announced Program (In millions) October 1 through October 31, 2023 1,206,643 $ 24.95 1,206,515 $ 703.5 November 1 through November 30, 2023 1,174,073 23.35 1,174,073 676.1 December 1 through December 31, 2023 1,085,760 24.06 1,085,760 650.0 Total 3,466,476 24.13 3,466,348 (1) Includes shares withheld to cover the withholding taxes upon the vesting of equity awards, which are not a part of the Repurchase Program Repurchase Program.
Purchases of Equity Securities The following table summarizes all share purchases for the three months ended December 31, 2024: Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Dollar Value of Shares that May Yet Be Used to Repurchase Shares Under the Publicly Announced Program (In millions) October 1 through October 31, 2024 57 $ 26.32 — $ 469.6 November 1 through November 30, 2024 151 26.48 — 469.6 December 1 through December 31, 2024 — — — 469.6 Total 208 26.44 — (1) Includes shares withheld to cover the withholding taxes upon the vesting of equity awards, which are not a part of the Repurchase Program Repurchase Program.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”) Share Relinquishments The Company routinely allows employees to relinquish Common Stock to pay estimated taxes upon the vesting of restricted stock units and the payout of performance units that are settled in Common Stock under its equity incentive plans.
Peabody Energy Corporation 2024 Form 10-K 56 Tab le of Contents Share Relinquishments The Company routinely allows employees to relinquish Common Stock to pay estimated taxes upon the vesting of restricted stock units and the payout of performance units that are settled in Common Stock under its equity incentive plans.
Through December 31, 2023, the Company had repurchased 16.1 million shares of its common stock under the 2023 Repurchase Program for $350.3 million, which included $2.6 million of unsettled share repurchases and commissions paid of $0.3 million, leaving $650.0 million available for share repurchase.
Through December 31, 2024, the Company had repurchased 23.8 million shares of its common stock under the 2023 Repurchase Program for $530.8 million, which included commissions paid of $0.4 million, leaving $469.6 million available for share repurchase. Dividends During the year ended December 31, 2024, the Company declared dividends per share of $0.300.
Peabody Energy Corporation 2023 Form 10-K 56 Table of Contents Dividends During the year ended December 31, 2023, the Company declared dividends per share of $0.225. On February 8, 2024, the Company declared an additional dividend per share of $0.075 to be paid on March 13, 2024 to shareholders of record as of February 22, 2024.
On February 6, 2025, the Company declared an additional dividend per share of $0.075 to be paid on March 11, 2025 to shareholders of record as of February 19, 2025.
The value of Common Stock tendered by employees is determined based on the closing price of the Company’s Common Stock on the dates of the respective relinquishments. Issuances of Equity Securities In June 2021, the Company announced an at-the-market equity offering program pursuant to which the Company could offer and sell up to 12.5 million shares of its Common Stock.
The value of Common Stock tendered by employees is determined based on the closing price of the Company’s Common Stock on the dates of the respective relinquishments.
Removed
Share Repurchase Program On April 14, 2023, the Company amended its existing transaction support agreement with the providers of its surety bond portfolio, dated November 6, 2020, to remove the restrictions on shareholder returns, subject to a minimum liquidity threshold, and terminated the then-existing credit facility.
Removed
The amount of any share repurchase transactions is subject to the Company’s annual Available Free Cash Flow (as defined in Part II, Item 7.
Removed
The declaration and payment of dividends and the amount of dividends will depend on the Company’s annual Available Free Cash Flow (as defined in Part II, Item 7.
Removed
The at-the-market equity offering program was further expanded to 32.5 million shares during 2021.
Removed
The shares are offered and sold pursuant to the Company’s Registration Statement on Form S-3, which was declared effective by the Securities and Exchange Commission on April 23, 2021, as supplemented by prospectus supplements dated June 4, 2021, September 17, 2021, and December 17, 2021 relating to the offer and sale of the shares.
Removed
During the year ended December 31, 2021, the Company sold approximately 24.8 million shares for net cash proceeds of $269.8 million. No sales were made under this at-the-market equity offering program during the years ended December 31, 2022 or 2023, leaving approximately 7.7 million shares available for sale.
Removed
On March 7, 2022, the Company entered into an at-the-market equity offering program pursuant to which the Company could offer and sell shares of its common stock having an aggregate gross sales price of up of $225 million.
Removed
The shares are offered and sold pursuant to the Company’s Registration Statement on Form S-3, which was declared effective by the Securities and Exchange Commission on April 23, 2021, as supplemented by a prospectus supplement dated March 7, 2022 relating to the offer and sale of the shares.
Removed
During the year ended December 31, 2022, the Company sold approximately 10.1 million shares for net proceeds of $222.0 million, thereby concluding this at-the-market equity offering program.
Removed
Also during the year ended December 31, 2021, the Company completed multiple bilateral transactions with holders of the 2022 Notes, the 2025 Notes and the 2024 Peabody Notes in which the Company issued an aggregate 10.0 million shares of its Common Stock in exchange for $37.3 million aggregate principal amount of the 2022 Notes, $47.2 million aggregate principal amount of the 2025 Notes and $21.6 million aggregate principal amount of the 2024 Peabody Notes.
Removed
No such bilateral transactions were completed during the year ended December 31, 2022.
Removed
The issuance of shares of common stock in exchange for the 2022 Notes, the 2025 Notes and the 2024 Peabody Notes was made in reliance on the exemption from registration provided in Section 3(a)(9) under the Securities Act of 1933, based in part on representations of holders of the 2022 Notes, the 2025 Notes and the 2024 Peabody Notes, and on the basis that the exchange was completed with existing holders of the Company's securities and no commission or other remuneration was paid or given for soliciting the exchange.
Removed
Peabody Energy Corporation 2023 Form 10-K 57 Table of Contents Stock Performance Graph The following performance graph compares the cumulative total return on Peabody’s common stock with the cumulative total return of the following indices: (i) the S&P MidCap 400 Stock Index; (ii) a historical peer group comprised of Arch Resources, Inc., Hallador Energy Co., and Warrior Met Coal, Inc.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

117 edited+60 added−63 removed50 unchanged
Biggest changeYear Ended December 31, 2023 2022 (Dollars in millions) Income from continuing operations, net of income taxes $ 816.0 $ 1,317.4 Depreciation, depletion and amortization 321.4 317.6 Asset retirement obligation expenses 50.5 49.4 Restructuring charges 3.3 2.9 Asset impairment 2.0 11.2 Provision for NARM and Shoal Creek losses 40.9 — Changes in amortization of basis difference related to equity affiliates (1.6) (2.3) Interest expense 59.8 140.3 Net loss on early debt extinguishment 8.8 57.9 Interest income (76.8) (18.4) Net mark-to-market adjustment on actuarially determined liabilities (0.3) (27.8) Unrealized (gains) losses on derivative contracts related to forecasted sales (159.0) 35.8 Unrealized (gains) losses on foreign currency option contracts (7.4) 2.3 Take-or-pay contract-based intangible recognition (2.5) (2.8) Income tax provision (benefit) 308.8 (38.8) Total Adjusted EBITDA $ 1,363.9 $ 1,844.7 Total Reporting Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each of its segments’ operating performance, as displayed in the reconciliations below: Year Ended December 31, 2023 2022 (Dollars in millions) Operating costs and expenses $ 3,385.1 $ 3,290.8 Unrealized gains (losses) on foreign currency option contracts 7.4 (2.3) Take-or-pay contract-based intangible recognition 2.5 2.8 Net periodic benefit credit, excluding service cost (41.6) (49.0) Total Reporting Segment Costs $ 3,353.4 $ 3,242.3 The following table presents Total Reporting Segment Costs by reporting segment: Year Ended December 31, 2023 2022 (Dollars in millions) Seaborne Thermal $ 752.9 $ 698.0 Seaborne Metallurgical 863.8 835.2 Powder River Basin 1,044.4 997.3 Other U.S.
Biggest changeYear Ended December 31, 2024 2023 (Dollars in millions) Income from continuing operations, net of income taxes $ 407.3 $ 816.0 Depreciation, depletion and amortization 343.0 321.4 Asset retirement obligation expenses 48.9 50.5 Restructuring charges 4.4 3.3 Transaction costs related to business combinations 10.3 — Asset impairment — 2.0 Provision for NARM and Shoal Creek losses 3.7 40.9 Shoal Creek insurance recovery - property damage (28.7) — Changes in amortization of basis difference related to equity affiliates (1.8) (1.6) Interest expense, net of capitalized interest 46.9 59.8 Net loss on early debt extinguishment — 8.8 Interest income (71.0) (76.8) Net mark-to-market adjustment on actuarially determined liabilities (6.1) (0.3) Unrealized gains on derivative contracts related to forecasted sales — (159.0) Unrealized losses (gains) on foreign currency option contracts 9.0 (7.4) Take-or-pay contract-based intangible recognition (3.0) (2.5) Income tax provision 108.8 308.8 Total Adjusted EBITDA $ 871.7 $ 1,363.9 Total Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each of its segments’ operating performance, as displayed in the reconciliations below: Year Ended December 31, 2024 2023 (Dollars in millions) Operating costs and expenses $ 3,420.9 $ 3,385.1 Unrealized (losses) gains on foreign currency option contracts (9.0) 7.4 Take-or-pay contract-based intangible recognition 3.0 2.5 Net periodic benefit credit, excluding service cost (40.6) (41.6) Total Segment Costs $ 3,374.3 $ 3,353.4 The following table presents Total Segment Costs by reporting segment: Year Ended December 31, 2024 2023 (Dollars in millions) Seaborne Thermal $ 783.9 $ 752.9 Seaborne Metallurgical 893.9 863.8 Powder River Basin 960.2 1,044.4 Other U.S.
Revolving Credit Facility On January 18, 2024, the Company established a new revolving credit facility with a maximum aggregate principal amount of $320.0 million in revolving commitments by entering into a credit agreement, dated as of January 18, 2024 (the 2024 Credit Agreement), by and among the Company, as borrower, certain subsidiaries of the Company party thereto, PNC Bank, National Association, as administrative agent, and the lenders party thereto.
Revolving Credit Facility The Company established a new revolving credit facility with a maximum aggregate principal amount of $320.0 million in revolving commitments by entering into a credit agreement, dated as of January 18, 2024 (the 2024 Credit Agreement), by and among the Company, as borrower, certain subsidiaries of the Company party thereto, PNC Bank, National Association, as administrative agent, and the lenders party thereto.
The seaborne pricing included in the table below is not necessarily indicative of the pricing the Company realized during the year ended December 31, 2023 due to quality differentials and a portion of its seaborne sales being executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized.
The seaborne pricing included in the table below is not necessarily indicative of the pricing the Company realized during the year ended December 31, 2024 due to quality differentials and a portion of its seaborne sales being executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized.
The Company generally does not view short-term declines in thermal and metallurgical coal prices as a triggering event for conducting impairment tests because of historic price volatility. However, the Company generally views a sustained trend of depressed coal pricing (for example, over periods exceeding one year) as an indicator of potential impairment.
The Company generally does not view short-term declines in thermal and metallurgical coal prices as an indicator of impairment for conducting impairment tests because of historic price volatility. However, the Company generally views a sustained trend of depressed coal pricing (for example, over periods exceeding one year) as a potential indicator of impairment.
In the U.S., the pricing included in the table below is also not necessarily indicative of the pricing the Company realized during the year ended December 31, 2023 since the Company generally sells coal under long-term contracts where pricing is determined based on various factors.
In the U.S., the pricing included in the table below is also not necessarily indicative of the pricing the Company realized during the year ended December 31, 2024 since the Company generally sells coal under long-term contracts where pricing is determined based on various factors.
(2) Includes revenue-based production taxes and royalties; excludes depreciation, depletion and amortization; asset retirement obligation expenses; selling and administrative expenses; restructuring charges; asset impairment; amortization of take-or-pay contract-based intangibles; and certain other costs related to post-mining activities.
(2) Includes revenue-based production taxes and royalties; excludes depreciation, depletion and amortization; asset retirement obligation expenses; selling and administrative expenses; restructuring charges; asset impairment; amortization of take-or-pay contract-based intangibles; insurance recoveries; and certain other costs related to post-mining activities.
The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Asset Retirement Obligations.
The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The Company’s discussion and analysis of the year ended December 31, 2023 compared to the year ended December 31, 2022 is included herein.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The Company’s discussion and analysis of the year ended December 31, 2024 compared to the year ended December 31, 2023 is included herein.
For discussion and analysis of the year ended December 31, 2022 compared to the year ended December 31, 2021, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Peabody’s Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 24, 2023 and is incorporated by reference herein.
For discussion and analysis of the year ended December 31, 2023 compared to the year ended December 31, 2022, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Peabody’s Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 23, 2024 and is incorporated by reference herein.
Summary Spot pricing for premium low-vol hard coking coal (Premium HCC), premium low-vol pulverized coal injection (Premium PCI) coal, Newcastle index thermal coal and API 5 index thermal coal, and prompt month pricing for PRB 8,880 Btu/Lb coal and Illinois Basin 11,500 Btu/Lb coal during the year ended December 31, 2023 is set forth in the table below.
Summary Spot pricing for premium low-vol hard coking coal (Premium HCC), premium low-vol pulverized coal injection (Premium PCI) coal, Newcastle index thermal coal and API 5 index thermal coal, and prompt month pricing for PRB 8,800 Btu/Lb coal and Illinois Basin 11,500 Btu/Lb coal during the year ended December 31, 2024 is set forth in the table below.
Refer to the “Reconciliation of Non-GAAP Financial Measures” section above for definitions and reconciliations to the most comparable measures under U.S. GAAP.
Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
See Note 20. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” to the accompanying consolidated financial statements for a discussion of the Company’s accounts receivable securitization program and guarantees and other financial instruments with off-balance sheet risk.
“Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” to the accompanying consolidated financial statements for a discussion of the Company’s accounts receivable securitization program and guarantees and other financial instruments with off-balance sheet risk.
The principal business of the Company’s thermal operating segments in the U.S. is the mining, preparation and sale of thermal coal, sold primarily to electric utilities in the U.S. under long-term contracts, with a relatively small portion sold as international exports as conditions warrant. The Company’s Powder River Basin operations consist of its mines in Wyoming.
The Company’s thermal operating segments in the U.S. are focused on the mining, preparation and sale of thermal coal, sold primarily to electric utilities in the U.S. under long-term contracts, with a relatively small portion sold as international exports as conditions warrant. The Company’s Powder River Basin operations consist of its mines in Wyoming.
Not presented in the above table is $957.6 million of restricted cash and other balances serving as collateral which are included in the accompanying consolidated balance sheets at December 31, 2023, as described in Note 20. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” of the accompanying consolidated financial statements.
Not presented in the above table is $809.8 million of restricted cash and other balances serving as collateral which are included in the accompanying consolidated balance sheets at December 31, 2024, as described in Note 20. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” of the accompanying consolidated financial statements.
Such cash flows pertain to postretirement benefit plans, work-related injuries and illnesses, defined benefit pension plans, mine reclamation and end-of-mine closure costs and exploration obligations and are estimated to amount to approximately $105 million in 2024, $80 million in 2025, $90 million in 2026, $85 million in 2027, $100 million in 2028 and $1,275 million thereafter.
Such cash flows pertain to postretirement benefit plans, work-related injuries and illnesses, defined benefit pension plans, mine reclamation and end-of-mine closure costs and exploration obligations and are estimated to amount to approximately $100 million in 2025, $100 million in 2026, $150 million in 2027, $90 million in 2028, $140 million in 2029 and $1,275 million thereafter.
The minimum liquidity test requires the Company to maintain liquidity at the greater of $400 million or the difference between the penal sum of all surety bonds and the amount of collateral posted in favor of surety providers, which was $555.2 million at December 31, 2023.
The minimum liquidity test requires the Company to maintain liquidity at the greater of $400 million or the difference between the penal sum of all surety bonds and the amount of collateral posted in favor of surety providers, which was $495.5 million at December 31, 2024.
No impairment charges related to long-lived assets of were recorded for the year ended December 31, 2023.
No impairment charges related to long-lived assets were recorded for the year ended December 31, 2024.
During the years ended December 31, 2023 and 2022, the mine sold 1.2 million and 1.6 million tons of coal, respectively (on a 50% basis).
During the years ended December 31, 2024 and 2023, the mine sold 1.3 million and 1.2 million tons of coal, respectively (on a 50% basis).
Peabody Energy Corporation 2023 Form 10-K 67 Table of Contents Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA is defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization.
Peabody Energy Corporation 2024 Form 10-K 68 Tab le of Contents Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA is defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization.
The increase in net income attributable to noncontrolling interests during the year ended December 31, 2023 compared to the prior year period was primarily due to stronger financial results of Peabody’s majority-owned Wambo operations in which there is an outside non-controlling interest.
The decrease in net income attributable to noncontrolling interests during the year ended December 31, 2024 compared to the prior year period was primarily due to a decline in the financial results of Peabody’s majority-owned Wambo operations in which there is an outside non-controlling interest.
Tons Sold The following table presents tons sold by operating segment: (Decrease) Increase Year Ended December 31, to Volumes 2023 2022 Tons % (Tons in millions) Seaborne Thermal 15.5 15.6 (0.1) (0.6) % Seaborne Metallurgical 6.9 6.6 0.3 4.5 % Powder River Basin 87.2 82.6 4.6 5.6 % Other U.S.
Tons Sold The following table presents tons sold by operating segment: Increase (Decrease) Year Ended December 31, to Volumes 2024 2023 Tons % (Tons in millions) Seaborne Thermal 16.4 15.5 0.9 5.8 % Seaborne Metallurgical 7.3 6.9 0.4 5.8 % Powder River Basin 79.6 87.2 (7.6) (8.7) % Other U.S.
Overview In 2023, Peabody produced and sold 126.7 million and 126.2 million tons of coal, respectively, from continuing operations. As of December 31, 2023, the Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal and Corporate and Other.
Overview In 2024, Peabody produced and sold 118.1 million and 118.0 million tons of coal, respectively, from continuing operations. As of December 31, 2024, the Company reports its results of operations primarily through the following reportable segments: Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal and Corporate and Other.
Peabody Energy Corporation 2023 Form 10-K 69 Table of Contents Any future determinations to return capital to stockholders, such as dividends or share repurchases will depend on a variety of factors, including the Company’s net income or other sources of cash, liquidity position and potential alternative uses of cash, such as internal development projects or acquisitions, as well as economic conditions and expected future financial results.
Any future determinations to return capital to stockholders, such as dividends or share repurchases will depend on a variety of factors, including the Company’s net income or other sources of cash, liquidity position and potential alternative uses of cash, such as internal development projects or acquisitions, as well as economic conditions and expected future financial results.
Amortization associated with the Company’s asset retirement obligation assets of $33.4 million for the year ended December 31, 2023 was included in “Depreciation, depletion and amortization” in the Company’s consolidated statements of operations.
Amortization associated with the Company’s asset retirement obligation assets of $20.8 million for the year ended December 31, 2024 was included in “Depreciation, depletion and amortization” in the Company’s consolidated statements of operations.
Asset retirement obligation expense, consisting of both accretion expense and changes in estimates for the Company’s inactive locations, for the year ended December 31, 2023 was $50.5 million and payments totaled $60.4 million. See Note 12. “Asset Retirement Obligations” to the accompanying consolidated financial statements for additional information regarding the Company’s asset retirement obligations. Impairment of Long-Lived Assets.
Asset retirement obligation expense, consisting of both accretion expense and changes in estimates for the Company’s inactive locations, for the year ended December 31, 2024 was $48.9 million and payments totaled $51.7 million. See Note 12. “Asset Retirement Obligations” to the accompanying consolidated financial statements for additional information regarding the Company’s asset retirement obligations. Impairment of Long-Lived Assets.
The Company considers all measures reported on a per ton basis to be operating/statistical measures; however, the Company includes reconciliations of the related non-GAAP financial measures (Adjusted EBITDA and Total Reporting Segment Costs) in the “Reconciliation of Non-GAAP Financial Measures” section contained within this Item 7.
The Company considers all measures reported on a per ton basis to be operating/statistical measures; however, the Company includes reconciliations of the related non-GAAP financial measures (Adjusted EBITDA and Total Segment Costs) in the “Reconciliation of Non-GAAP Financial Measures” section contained within this Item 7. Peabody believes non-GAAP measures are used by investors to measure its operating performance.
Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing each of its segment’s operating performance, as displayed in the reconciliations below.
Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, as displayed in the reconciliations below.
The Company receives a variable deposit rate on the amount of cash collateral posted in support of letters of credit. The agreement has an initial expiration date of December 31, 2025. At December 31, 2023, letters of credit of $167.0 million were outstanding under the agreement, which were collateralized by cash of $172.0 million.
The Company receives a variable deposit rate on the amount of cash collateral posted in support of letters of credit. The agreement has an initial expiration date of December 31, 2025. At December 31, 2024, letters of credit of $115.6 million were outstanding under the agreement, which were collateralized by cash of $119.1 million.
The net loss on early debt extinguishment recognized during the year ended December 31, 2023 was primarily related to the Company’s terminated letter of credit facility, as further discussed in Note 20. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” to the accompanying consolidated financial statements.
The net loss on early debt extinguishment recognized during the prior year was primarily related to the Company’s terminated letter of credit facility, as further discussed in Note 20. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” to the accompanying consolidated financial statements. Net Mark-to-Market Adjustment on Actuarially Determined Liabilities.
In connection with such matters, the Company is required to assess the likelihood of any adverse judgments or outcomes, as well as potential ranges of probable losses. Peabody Energy Corporation 2023 Form 10-K 76 Table of Contents A determination of the amount of reserves required for these matters is made after considerable analysis of each individual issue.
In connection with such matters, the Company is required to assess the likelihood of any adverse judgments or outcomes, as well as potential ranges of probable losses. A determination of the amount of reserves required for these matters is made after considerable analysis of each individual issue.
As of December 31, 2023, Peabody controlled approximately 2.1 billion tons of proven and probable coal reserves, 2.7 billion tons of coal resources and approximately 350,000 acres of surface property through ownership and lease agreements.
As of December 31, 2024, Peabody controlled approximately 2.1 billion tons of proven and probable coal reserves, 3.6 billion tons of coal resources and approximately 345,000 acres of surface property through ownership and lease agreements.
Peabody Energy Corporation 2023 Form 10-K 75 Table of Contents When indicators of impairment are present, the Company evaluates its long-lived assets for recoverability by comparing the estimated undiscounted cash flows in the LOM plan expected to be generated by those assets under various assumptions to their carrying amounts.
When indicators of impairment are present, the Company evaluates its long-lived assets for recoverability by comparing the estimated undiscounted cash flows in the LOM plan expected to be generated by those assets under various assumptions to their carrying amounts.
Similarly, a small portion of the coal mined by the Seaborne Metallurgical segment is of a thermal grade. Additionally, the Company may market some of its metallurgical coal products as a thermal coal product from time to time depending on market conditions. The Company’s Seaborne Thermal operations consist of mines in New South Wales, Australia.
Similarly, a small portion of the coal mined by the Seaborne Metallurgical segment is of a thermal grade. Additionally, the Company may market some of its metallurgical coal products as a thermal coal product from time to time depending on market conditions.
The Company’s asset retirement obligations primarily consist of spending estimates for surface land reclamation and support facilities at both surface and underground mines in accordance with applicable reclamation laws and regulations in the U.S. and Australia as defined by each mining permit.
Peabody Energy Corporation 2024 Form 10-K 75 Tab le of Contents Asset Retirement Obligations. The Company’s asset retirement obligations primarily consist of spending estimates for surface land reclamation and support facilities at both surface and underground mines in accordance with applicable reclamation laws and regulations in the U.S. and Australia as defined by each mining permit.
Peabody Energy Corporation 2023 Form 10-K 58 Table of Contents Non-GAAP Financial Measures The following discussion of Peabody’s results of operations includes references to and analysis of Adjusted EBITDA and Total Reporting Segment Costs, which are financial measures not recognized in accordance with U.S. generally accepted accounting principles (U.S. GAAP).
Non-GAAP Financial Measures The following discussion of Peabody’s results of operations includes references to and analysis of Adjusted EBITDA and Total Segment Costs, which are financial measures not recognized in accordance with U.S. generally accepted accounting principles (U.S. GAAP).
Peabody Energy Corporation 2023 Form 10-K 59 Table of Contents The Company’s Corporate and Other segment includes selling and administrative expenses, results from equity affiliates, corporate hedging activities, trading and brokerage activities, minimum charges on certain transportation-related contracts, the closure of inactive mining sites and certain commercial matters. Resource Management.
The Company’s Corporate and Other segment includes selling and administrative expenses, results from equity method investments, trading and brokerage activities, minimum charges on certain transportation-related contracts, the closure of inactive mining sites, the impact of foreign currency remeasurement and certain commercial matters. Peabody Energy Corporation 2024 Form 10-K 59 Tab le of Contents Resource Management.
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA: (Decrease) Increase Year Ended December 31, to Income 2023 2022 $ % (Dollars in millions) Middlemount (1) $ 13.2 $ 132.8 $ (119.6) (90.1) % Resource management activities (2) 21.0 29.3 (8.3) (28.3) % Selling and administrative expenses (90.7) (88.8) (1.9) (2.1) % Other items, net (3) 44.3 31.5 12.8 40.6 % Corporate and Other Adjusted EBITDA $ (12.2) $ 104.8 $ (117.0) (111.6) % (1) Middlemount’s results are before the impact of related changes in amortization of basis difference.
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA: Decrease Year Ended December 31, to Income 2024 2023 $ % (Dollars in millions) Middlemount (1) $ 13.1 $ 13.2 $ (0.1) (0.8) % Resource management activities (2) 19.2 21.0 (1.8) (8.6) % Selling and administrative expenses (91.0) (90.7) (0.3) (0.3) % Other items, net (3) (31.5) 44.3 (75.8) (171.1) % Corporate and Other Adjusted EBITDA $ (90.2) $ (12.2) $ (78.0) (639.3) % (1) Middlemount’s results are before the impact of related changes in amortization of basis difference.
The following table presents a summary of depreciation, depletion and amortization expense by reporting segment: Increase (Decrease) Year Ended December 31, to Income 2023 2022 $ % (Dollars in millions) Seaborne Thermal $ (103.7) $ (114.4) $ 10.7 9.4 % Seaborne Metallurgical (91.5) (88.8) (2.7) (3.0) % Powder River Basin (48.8) (42.5) (6.3) (14.8) % Other U.S.
The following table presents a summary of depreciation, depletion and amortization expense by reporting segment: (Decrease) Increase Year Ended December 31, to Income 2024 2023 $ % (Dollars in millions) Seaborne Thermal $ (121.9) $ (103.7) $ (18.2) (17.6) % Seaborne Metallurgical (93.2) (91.5) (1.7) (1.9) % Powder River Basin (55.3) (48.8) (6.5) (13.3) % Other U.S.
The Company has various short- and long-term take-or-pay arrangements in Australia and the U.S. associated with rail and port commitments for the delivery of coal, including amounts relating to export facilities.
Peabody Energy Corporation 2024 Form 10-K 73 Tab le of Contents The Company has various short- and long-term take-or-pay arrangements in Australia and the U.S. associated with rail and port commitments for the delivery of coal, including amounts relating to export facilities.
Available liquidity was comprised of the following: December 31, 2023 2022 (Dollars in millions) Cash and cash equivalents $ 969.3 $ 1,307.3 Credit facility availability — 3.5 Accounts receivable securitization program availability 90.4 7.0 Total liquidity $ 1,059.7 $ 1,317.8 Capital Returns to Shareholders The Company repurchased approximately 16.1 million shares of its common stock for $350.3 million and paid dividends of $30.6 million during the year ended December 31, 2023.
Available liquidity was comprised of the following: December 31, 2024 2023 (Dollars in millions) Cash and cash equivalents $ 700.4 $ 969.3 Revolving credit facility availability 233.7 — Accounts receivable securitization program availability 138.4 90.4 Total liquidity $ 1,072.5 $ 1,059.7 Capital Returns to Shareholders The Company repurchased approximately 7.7 million shares of its common stock for $180.5 million, including commission fees, and paid dividends of $37.6 million during the year ended December 31, 2024.
In order to maintain the new maximum collateral standstill, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter.
The amendment extended the agreement through December 31, 2026. In order to maintain the maximum collateral agreement, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter.
The mines in that segment utilize both surface and underground extraction processes to mine low-sulfur, high Btu thermal coal. The Company’s Seaborne Metallurgical operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, USA. The mines in that segment utilize both surface and underground extraction processes to mine various qualities of metallurgical coal.
The Company’s Seaborne Metallurgical operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, USA. The mines in that segment utilize both surface and underground extraction processes to mine various qualities of metallurgical coal. The metallurgical coal qualities include hard coking coal, semi-hard coking coal, semi-soft coking coal and pulverized coal injection coal.
A significant majority of the cash held by the Company’s foreign subsidiaries is denominated in U.S. dollars. This cash is generally used to support non-U.S. liquidity needs, including capital and operating expenditures in Australia. From time to time, the Company may repatriate excess cash from its foreign subsidiaries to the U.S.
A significant majority of the cash held by the Company’s foreign subsidiaries is denominated in U.S. dollars. This cash is generally used to support non-U.S. liquidity needs, including capital and operating expenditures in Australia and payment of the foreign subsidiaries’ share of certain U.S. corporate expenditures.
During the year ended December 31, 2023, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes. As a result, the 2028 Convertible Notes were not convertible at the option of the holders during the remainder of 2023, and will not be similarly convertible during the first quarter of 2024.
During the fourth quarter ended December 31, 2024, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes. As a result, the 2028 Convertible Notes will not be convertible during the first quarter of 2025.
GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP. Peabody Energy Corporation 2023 Form 10-K 65 Table of Contents Depreciation, Depletion and Amortization.
GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP. Depreciation, Depletion and Amortization.
Also included in the following discussion of Peabody’s results of operations are references to Revenue per Ton, Costs per Ton and Adjusted EBITDA Margin per Ton for each reporting segment. These metrics are used by management to measure each of its reporting segments’ operating performance.
Peabody Energy Corporation 2024 Form 10-K 58 Tab le of Contents Also included in the following discussion of Peabody’s results of operations are references to Revenue per Ton, Costs per Ton and Adjusted EBITDA Margin per Ton for each reporting segment. These metrics are used by management to measure each reporting segment’s operating performance.
Segment revenue increased during the year ended December 31, 2023 compared to the prior year due to net unrealized mark-to-market gains on derivative contracts related to forecasted coal sales in the current year compared to net unrealized mark-to-market losses in the prior year ($194.8 million) and revenue related to the Company’s assignment of rights to its excess port and rail capacity ($25.9 million).
Segment revenue decreased during the year ended December 31, 2024 compared to the prior year due to no unrealized mark-to-market gains from derivative contracts related to forecasted sales in the current year ($159.0 million) as all derivative contracts settled in 2023 and prior year revenue related to the Company’s assignment of rights to its excess port and rail capacity ($25.9 million).
(3) Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, costs associated with suspended operations including the Centurion Mine and expenses related to the Company’s other commercial activities.
(3) Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, results from the Company’s equity method investment in renewable energy joint ventures, costs associated with suspended operations including the Centurion Mine, the impact of foreign currency remeasurement and expenses related to the Company’s other commercial activities.
Thermal (69.0) (62.2) (6.8) (10.9) % Corporate and Other (8.4) (9.7) 1.3 13.4 % Total $ (321.4) $ (317.6) $ (3.8) (1.2) % Additionally, the following table presents a summary of the Company’s weighted-average depletion rate per ton for active mines in each of its operating segments: Year Ended December 31, 2023 2022 Seaborne Thermal $ 2.13 $ 2.61 Seaborne Metallurgical 2.16 2.55 Powder River Basin 0.31 0.32 Other U.S.
Thermal (64.8) (69.0) 4.2 6.1 % Corporate and Other (7.8) (8.4) 0.6 7.1 % Total $ (343.0) $ (321.4) $ (21.6) (6.7) % Peabody Energy Corporation 2024 Form 10-K 66 Tab le of Contents Additionally, the following table presents a summary of the Company’s weighted-average depletion rate per ton for active mines in each of its operating segments: Year Ended December 31, 2024 2023 Seaborne Thermal $ 2.14 $ 2.13 Seaborne Metallurgical 2.89 2.16 Powder River Basin 0.35 0.31 Other U.S.
Thermal 207.5 242.4 (34.9) (14.4) % Corporate and Other (12.2) 104.8 (117.0) (111.6) % Adjusted EBITDA (1) $ 1,363.9 $ 1,844.7 $ (480.8) (26.1) % (1) This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
Thermal 150.8 207.5 (56.7) (27.3) % Corporate and Other (90.2) (12.2) (78.0) (639.3) % Adjusted EBITDA (1) $ 871.7 $ 1,363.9 $ (492.2) (36.1) % (1) This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
The royalty will only be payable once the Company has recovered its investment and development costs of the Wards Well area and if the average sales price achieved exceeds certain thresholds. No royalty is payable if the Company does not commence mining in the Wards Well area.
The royalty will only be payable once the Company has recovered its investment and development costs of Wards Well and if the average sales price achieved exceeds certain thresholds. No royalty is payable if the Company does not commence mining Wards Well. Shoal Creek Insurance Recovery . On March 29, 2023, the Company’s Shoal Creek Mine experienced a fire.
Thermal 16.2 18.4 (2.2) (12.0) % Total tons sold from operating segments 125.8 123.2 2.6 2.1 % Corporate and Other 0.4 0.5 (0.1) (20.0) % Total tons sold 126.2 123.7 2.5 2.0 % Peabody Energy Corporation 2023 Form 10-K 62 Table of Contents Supplemental Financial Data The following table presents supplemental financial data by operating segment: Year Ended December 31, (Decrease) Increase 2023 2022 $ % Revenue per Ton - Mining Operations (1) Seaborne Thermal $ 85.94 $ 86.07 $ (0.13) (0.2) % Seaborne Metallurgical 188.66 243.78 (55.12) (22.6) % Powder River Basin 13.74 12.89 0.85 6.6 % Other U.S.
Thermal 14.6 16.2 (1.6) (9.9) % Total tons sold from operating segments 117.9 125.8 (7.9) (6.3) % Corporate and Other 0.1 0.4 (0.3) (75.0) % Total tons sold 118.0 126.2 (8.2) (6.5) % Peabody Energy Corporation 2024 Form 10-K 62 Tab le of Contents Supplemental Financial Data The following table presents supplemental financial data by operating segment: Year Ended December 31, (Decrease) Increase 2024 2023 $ % Revenue per Ton (1) Seaborne Thermal $ 73.88 $ 85.94 $ (12.06) (14.0) % Seaborne Metallurgical 144.97 188.66 (43.69) (23.2) % Powder River Basin 13.81 13.74 0.07 0.5 % Other U.S.
The estimated future cash flows associated with such arrangements are approximately $103 million in 2024, $100 million in 2025, $100 million in 2026, $100 million in 2027, $100 million in 2028 and $685 million thereafter.
The estimated future cash flows associated with such arrangements are approximately $86 million in 2025, $90 million in 2026, $90 million in 2027, $90 million in 2028, $70 million in 2029 and $555 million thereafter.
Changes in amortization of basis difference related to equity affiliates 1.6 2.3 (0.7) (30.4) % Interest expense (59.8) (140.3) 80.5 57.4 % Net loss on early debt extinguishment (8.8) (57.9) 49.1 84.8 % Interest income 76.8 18.4 58.4 317.4 % Net mark-to-market adjustment on actuarially determined liabilities 0.3 27.8 (27.5) (98.9) % Unrealized gains (losses) on derivative contracts related to forecasted sales 159.0 (35.8) 194.8 544.1 % Unrealized gains (losses) on foreign currency option contracts 7.4 (2.3) 9.7 421.7 % Take-or-pay contract-based intangible recognition 2.5 2.8 (0.3) (10.7) % Income tax (provision) benefit (308.8) 38.8 (347.6) (895.9) % Income from continuing operations, net of income taxes $ 816.0 $ 1,317.4 $ (501.4) (38.1) % (1) This is a financial measure not recognized in accordance with U.S.
Changes in amortization of basis difference related to equity affiliates 1.8 1.6 0.2 12.5 % Interest expense, net of capitalized interest (46.9) (59.8) 12.9 21.6 % Net loss on early debt extinguishment — (8.8) 8.8 100.0 % Interest income 71.0 76.8 (5.8) (7.6) % Net mark-to-market adjustment on actuarially determined liabilities 6.1 0.3 5.8 1,933.3 % Unrealized gains on derivative contracts related to forecasted sales — 159.0 (159.0) (100.0) % Unrealized (losses) gains on foreign currency option contracts (9.0) 7.4 (16.4) (221.6) % Take-or-pay contract-based intangible recognition 3.0 2.5 0.5 20.0 % Income tax provision (108.8) (308.8) 200.0 64.8 % Income from continuing operations, net of income taxes $ 407.3 $ 816.0 $ (408.7) (50.1) % (1) This is a financial measure not recognized in accordance with U.S.
At December 31, 2023, the reclamation bonding requirements were supported by approximately $825 million of restricted cash and other balances serving as collateral, which exceeds the financial liability for final mine reclamation as calculated in accordance with U.S. GAAP. Peabody Energy Corporation 2023 Form 10-K 74 Table of Contents Guarantees and Other Financial Instruments with Off-Balance Sheet Risk.
At December 31, 2024, the Company’s reclamation bonding requirements were supported by approximately $700 million of restricted cash and other balances serving as collateral, which substantially supports the financial liability for final mine reclamation as calculated in accordance with U.S. GAAP. Guarantees and Other Financial Instruments with Off-Balance Sheet Risk. See Note 20.
Peabody recognizes the tax benefit from an uncertain tax position only if it is “more likely than not” that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.
The Company recognizes the tax benefit from uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position.
Collateralized Letter of Credit Agreement In February 2022, the Company entered into an agreement, which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements.
The amendment became effective on April 14, 2023, when the Company terminated a then-existing credit agreement. Credit Support Facilities In February 2022, the Company entered into an agreement, which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements.
The Company’s operating lease commitments, excluding potential contingent rental amounts, will require cash payments of approximately $19 million in 2024, $15 million in 2025, $15 million in 2026, $13 million in 2027, $8 million in 2028 and $4 million thereafter.
The Company’s operating lease commitments, excluding potential contingent rental amounts, will require cash payments of approximately $38 million in 2025, $34 million in 2026, $29 million in 2027, $23 million in 2028, $6 million in 2029 and $3 million thereafter.
These increases were offset by decreases to the discount rates for all actuarially determined liabilities ($6.4 million) and a negative adjustment related to Peabody’s black lung liabilities ($2.6 million).
These increases were offset by decreases to the discount rates for all actuarially determined liabilities ($6.4 million) and a negative adjustment related to Peabody’s black lung liabilities ($2.6 million). Unrealized Gains on Derivative Contracts Related to Forecasted Sales. The prior year unrealized gains primarily relate to mark-to-market activity on derivative contracts related to forecasted coal sales.
Such collateral is primarily in support of the financial instruments noted above, including in relation to the Company’s surety bond portfolio, its collateralized letter of credit agreement, mandatory repurchases of credit facility capacity and amounts held directly with beneficiaries which are not supported by surety bonds. At December 31, 2023, the Company had total asset retirement obligations of $702.8 million.
Such collateral is primarily in support of the financial instruments noted above, including in relation to the Company’s surety bond portfolio, its collateralized letter of credit agreement, its bank guarantee facilities and amounts held directly with beneficiaries which are not supported by surety bonds.
Thermal (Amounts in millions, except per ton data) Tons sold 15.5 6.9 87.2 16.2 Revenue $ 1,329.7 $ 1,301.9 $ 1,198.1 $ 888.2 Total Reporting Segment Costs 752.9 863.8 1,044.4 680.7 Adjusted EBITDA $ 576.8 $ 438.1 $ 153.7 $ 207.5 Revenue per Ton $ 85.94 $ 188.66 $ 13.74 $ 54.77 Costs per Ton 48.66 125.18 11.98 41.98 Adjusted EBITDA Margin per Ton $ 37.28 $ 63.48 $ 1.76 $ 12.79 Year Ended December 31, 2022 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.
Thermal (Amounts in millions, except per ton data) Tons sold 15.5 6.9 87.2 16.2 Revenue $ 1,329.7 $ 1,301.9 $ 1,198.1 $ 888.2 Total Segment Costs 752.9 863.8 1,044.4 680.7 Adjusted EBITDA $ 576.8 $ 438.1 $ 153.7 $ 207.5 Revenue per Ton $ 85.94 $ 188.66 $ 13.74 $ 54.77 Costs per Ton 48.66 125.18 11.98 41.98 Adjusted EBITDA Margin per Ton $ 37.28 $ 63.48 $ 1.76 $ 12.79 Liquidity and Capital Resources Overview The Company’s primary source of cash is proceeds from the sale of its coal production to customers.
Adjusted EBITDA is used by management as the primary metric to measure each of its segments’ operating performance and allocate resources. Total Reporting Segment Costs is also used by management as a component of a metric to measure each of its segments’ operating performance.
Total Segment Costs is also used by management as a component of a metric to measure each segment’s operating performance.
Thermal 1.23 1.23 The decreases in the weighted-average depletion rate per ton for both the Seaborne Thermal and the Seaborne Metallurgical segments during the year ended December 31, 2023 compared to the same period in the prior year reflects the impact of volume and mix variances across the segment. Asset Impairment.
The increases in the weighted-average depletion rate per ton for both the Seaborne Metallurgical and the Other U.S. Thermal segments during the year ended December 31, 2024 compared to the same period in the prior year reflect the impact of volume and mix variances across the segments. Transaction Costs Related to Business Combinations.
Adjusted EBITDA The following table presents Adjusted EBITDA for each of the Company’s reporting segments: (Decrease) Increase to Year Ended December 31, Adjusted EBITDA 2023 2022 $ % (Dollars in millions) Seaborne Thermal $ 576.8 $ 647.6 $ (70.8) (10.9) % Seaborne Metallurgical 438.1 781.7 (343.6) (44.0) % Powder River Basin 153.7 68.2 85.5 125.4 % Other U.S.
Peabody Energy Corporation 2024 Form 10-K 64 Tab le of Contents Adjusted EBITDA The following table presents Adjusted EBITDA for each of the Company’s reporting segments: Decrease to Year Ended December 31, Adjusted EBITDA 2024 2023 $ % (Dollars in millions) Seaborne Thermal $ 430.0 $ 576.8 $ (146.8) (25.5) % Seaborne Metallurgical 242.5 438.1 (195.6) (44.6) % Powder River Basin 138.6 153.7 (15.1) (9.8) % Other U.S.
Peabody Energy Corporation 2023 Form 10-K 66 Table of Contents The gain recorded during the year ended December 31, 2022 was driven by increases to the discount rates for actuarially determined liabilities ($190.1 million) and the favorable impacts of changes for the postretirement benefit plans related to updated claims experience ($28.6 million).
The gain recorded during the year ended December 31, 2024 was driven by the favorable impacts of changes for the postretirement benefit plans related to updated claims experience ($12.4 million) and increases to the discount rates for all actuarially determined liabilities ($5.7 million).
Income From Continuing Operations, Net of Income Taxes The following table presents income from continuing operations, net of income taxes: (Decrease) Increase to Income Year Ended December 31, 2023 2022 $ % (Dollars in millions) Adjusted EBITDA (1) $ 1,363.9 $ 1,844.7 $ (480.8) (26.1) % Depreciation, depletion and amortization (321.4) (317.6) (3.8) (1.2) % Asset retirement obligation expenses (50.5) (49.4) (1.1) (2.2) % Restructuring charges (3.3) (2.9) (0.4) (13.8) % Asset impairment (2.0) (11.2) 9.2 82.1 % Provision for NARM and Shoal Creek losses (40.9) — (40.9) n.m.
Income From Continuing Operations, Net of Income Taxes The following table presents income from continuing operations, net of income taxes: (Decrease) Increase to Income Year Ended December 31, 2024 2023 $ % (Dollars in millions) Adjusted EBITDA (1) $ 871.7 $ 1,363.9 $ (492.2) (36.1) % Depreciation, depletion and amortization (343.0) (321.4) (21.6) (6.7) % Asset retirement obligation expenses (48.9) (50.5) 1.6 3.2 % Restructuring charges (4.4) (3.3) (1.1) (33.3) % Transaction costs related to business combinations (10.3) — (10.3) n.m.
During the year ended December 31, 2023, the Company repatriated approximately $250 million through intercompany dividends. If additional foreign-held cash is repatriated in the future, the Company does not expect restrictions or potential taxes will have a material effect to its near-term liquidity.
If foreign-held cash is repatriated in the future, the Company does not expect restrictions or potential taxes will have a material effect to its near-term liquidity. The Company’s available liquidity increased to $1,072.5 million as of December 31, 2024 from $1,059.7 million as of December 31, 2023.
Net Income Attributable to Common Stockholders The following table presents net income attributable to common stockholders: (Decrease) Increase Year Ended December 31, to Income 2023 2022 $ % (Dollars in millions) Income from continuing operations, net of income taxes $ 816.0 $ 1,317.4 $ (501.4) (38.1) % (Loss) income from discontinued operations, net of income taxes (0.4) 1.7 (2.1) (123.5) % Net income 815.6 1,319.1 (503.5) (38.2) % Less: Net income attributable to noncontrolling interests 56.0 22.0 34.0 154.5 % Net income attributable to common stockholders $ 759.6 $ 1,297.1 $ (537.5) (41.4) % Net Income Attributable to Noncontrolling Interests .
Net Income Attributable to Common Stockholders The following table presents net income attributable to common stockholders: Decrease Year Ended December 31, to Income 2024 2023 $ % (Dollars in millions) Income from continuing operations, net of income taxes $ 407.3 $ 816.0 $ (408.7) (50.1) % Loss from discontinued operations, net of income taxes (3.8) (0.4) (3.4) (850.0) % Net income 403.5 815.6 (412.1) (50.5) % Less: Net income attributable to noncontrolling interests 32.6 56.0 (23.4) (41.8) % Net income attributable to common stockholders $ 370.9 $ 759.6 $ (388.7) (51.2) % Net Income Attributable to Noncontrolling Interests .
Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets.
Assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. For its active mining operations, the Company generally groups such assets at the mine level, or the mining complex level for mines that share infrastructure.
A provision of $40.9 million was recorded during the year ended December 31, 2023 for losses and ongoing incremental repair costs related to the events at NARM and the Shoal Creek Mine, as discussed in Note 17. “Other Events” to the accompanying consolidated financial statements. Interest Expense.
Provision for NARM and Shoal Creek Losses. The provision recorded during the prior year period was for losses related to the events at the NARM and Shoal Creek Mines as discussed in Note 17. “Other Events” to the accompanying consolidated financial statements.
Revenue The following table presents revenue by reporting segment: (Decrease) Increase Year Ended December 31, to Revenue 2023 2022 $ % (Dollars in millions) Seaborne Thermal $ 1,329.7 $ 1,345.6 $ (15.9) (1.2) % Seaborne Metallurgical 1,301.9 1,616.9 (315.0) (19.5) % Powder River Basin 1,198.1 1,065.5 132.6 12.4 % Other U.S.
Revenue The following table presents revenue by reporting segment: Decrease Year Ended December 31, to Revenue 2024 2023 $ % (Dollars in millions) Seaborne Thermal $ 1,213.9 $ 1,329.7 $ (115.8) (8.7) % Seaborne Metallurgical 1,055.6 1,301.9 (246.3) (18.9) % Powder River Basin 1,098.8 1,198.1 (99.3) (8.3) % Other U.S.
Coal’s share of electricity generation has declined to approximately 16% for the year ended December 31, 2023, while wind and solar’s combined generation share has increased to 16% and the share of natural gas generation has increased to 42%.
Coal’s share of electricity generation has declined to approximately 15% for the twelve months ended December 31, 2024, while wind and solar’s combined generation share is at 17% and the share of natural gas generation has remained level at 43%.
Peabody Energy Corporation 2023 Form 10-K 68 Table of Contents The following tables present tons sold, revenue, Total Reporting Segment Costs and Adjusted EBITDA by operating segment: Year Ended December 31, 2023 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.
Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton. The following tables present tons sold, revenue, Total Segment Costs and Adjusted EBITDA by operating segment: Year Ended December 31, 2024 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.
Liquidity As of December 31, 2023, the Company’s cash and cash equivalents balances totaled $969.3 million, including approximately $553 million held by Australian subsidiaries, approximately $400 million held by U.S. subsidiaries and the remainder held by other foreign subsidiaries in accounts predominantly domiciled in the U.S.
Peabody Energy Corporation 2024 Form 10-K 70 Tab le of Contents Liquidity As of December 31, 2024, the Company’s cash and cash equivalents balances totaled $700.4 million, including approximately $397 million held by U.S. subsidiaries, approximately $291 million held by Australian subsidiaries and the remainder held by other foreign subsidiaries in accounts predominantly domiciled in the U.S.
While supply chain constraints eased and inflation somewhat moderated in 2023, future periods could continue to be impacted. As future developments related to geopolitical conflict, supply chain disruptions and rising inflation are unknown, the global coal industry data for the twelve months ended December 31, 2023 presented herein may not be indicative of their ultimate impacts.
As future developments related to the Russian-Ukrainian conflict and geopolitical instability in key energy producing regions are unknown, the global coal industry data for the twelve months ended December 31, 2024 presented herein may not be indicative of their ultimate impacts.
Year Ended December 31, 2023 2022 (Dollars in millions) Net cash provided by operating activities $ 1,035.5 $ 1,173.6 Net cash used in investing activities (342.6) (28.7) Net cash used in financing activities (460.3) (681.6) Net change in cash, cash equivalents and restricted cash 232.6 463.3 Cash, cash equivalents and restricted cash at beginning of period 1,417.6 954.3 Cash, cash equivalents and restricted cash at end of period $ 1,650.2 $ 1,417.6 Available Free Cash Flow $ 724.1 Peabody Energy Corporation 2023 Form 10-K 73 Table of Contents Operating Activities.
Year Ended December 31, 2024 2023 (Dollars in millions) Net cash provided by operating activities $ 606.5 $ 1,035.5 Net cash used in investing activities (598.1) (342.6) Net cash used in financing activities (276.0) (460.3) Net change in cash, cash equivalents and restricted cash (267.6) 232.6 Cash, cash equivalents and restricted cash at beginning of period 1,650.2 1,417.6 Cash, cash equivalents and restricted cash at end of period $ 1,382.6 $ 1,650.2 Operating Activities .
Unrealized Gains (Losses) on Derivative Contracts Related to Forecasted Sales. Unrealized gains (losses) primarily relate to mark-to-market activity on derivative contracts related to forecasted coal sales. For additional information, refer to Note 6. “Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements. Unrealized Gains (Losses) on Foreign Currency Option Contracts.
As further discussed in Note 6. “Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements, all derivative contracts related to forecasted coal sales settled in 2023. Peabody Energy Corporation 2024 Form 10-K 67 Tab le of Contents Unrealized (Losses) Gains on Foreign Currency Option Contracts. Unrealized (losses) gains primarily relate to mark-to-market activity on foreign currency option contracts.
These factors may cause the Company to be unable to recover all or a portion of the carrying value of its long-lived assets. The Company identified certain assets with an aggregate carrying value of approximately $224 million at December 31, 2023 in its Other U.S. Thermal segment whose recoverability is most sensitive to customer concentration risk. See Note 3.
These factors may cause the Company to be unable to recover all or a portion of the carrying value of its long-lived assets. Peabody Energy Corporation 2024 Form 10-K 76 Tab le of Contents The Company identified certain assets with an aggregate carrying value of approximately $208 million at December 31, 2024 in its Other U.S.
Cash interest payments amounted to $61.9 million, $118.5 million and $174.9 million during the years ended December 31, 2023, 2022, and 2021, respectively. 3.250% Convertible Senior Notes due 2028 On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $320.0 million.
Peabody Energy Corporation 2024 Form 10-K 72 Tab le of Contents Cash paid for interest, net of capitalized interest related to the Company’s indebtedness and financial assurance instruments amounted to $37.6 million, $61.9 million and $118.5 million during the years ended December 31, 2024, 2023, and 2022, respectively. 2028 Convertible Notes On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $320.0 million.
Generally, revenue from individual countries vary year by year based on electricity and steel demand, the strength of the global economy, governmental policies and several other factors, including those specific to each country.
The Company’s seaborne operating platform is primarily export focused with customers spread across several countries, with a portion of its thermal and metallurgical coal sold within Australia. Generally, revenue from individual countries varies year by year based on electricity and steel demand, the strength of the global economy, governmental policies and several other factors, including those specific to each country.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeA $10 per barrel change in the price of crude oil (the primary component of a refined diesel fuel product) would increase or decrease its annual diesel fuel costs by approximately $22 million based on its expected usage. As of December 31, 2023, the Company did not have any diesel fuel derivative instruments in place.
Biggest changeDiesel Fuel Price Risk The Company expects to consume 85 to 95 million gallons of diesel fuel during the next twelve months. A $10 per barrel change in the price of crude oil (the primary component of a refined diesel fuel product) would increase or decrease its annual diesel fuel costs by approximately $22 million based on its expected usage.
Assuming the Company had no foreign currency hedging instruments in place, its exposure in operating costs and expenses due to a $0.10 change in the Australian dollar/U.S. dollar exchange rate is approximately $185 to $195 million for the next twelve months.
Assuming the Company had no foreign currency hedging instruments in place, its exposure in operating costs and expenses due to a $0.10 change in the Australian dollar/U.S. dollar exchange rate is approximately $195 to $205 million for the next twelve months.
Although Peabody believes its Australian dollar monetary asset position acts as a hedge to lessen the impact on its results from operations, the Company may continue to use options and collars to hedge its cash flow exposure to currency risk associated with anticipated Australian dollar operating expenditures.
Although Peabody believes its Australian dollar monetary asset position acts as a hedge to offset the impact on its results from operations, the Company may continue to use options and collars to hedge its cash flow exposure to currency risk associated with anticipated Australian dollar operating expenditures.
As of December 31, 2023, the Company also held purchased collars with an aggregate notional amount of $483.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending September 30, 2024.
As of December 31, 2024, the Company also held purchased collars with an aggregate notional amount of $528.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending September 30, 2025.
Peabody also continually monitors counterparty and contract nonperformance risk, if present, on a case-by-case basis. Foreign Currency Risk The Company has historically utilized currency forwards and options to hedge currency risk associated with anticipated Australian dollar operating expenditures. The accounting for these derivatives is discussed in Note 6. “Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements.
Peabody also continually monitors counterparty and contract nonperformance risk, if present, on a case-by-case basis. Foreign Currency Risk The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. The accounting for these derivatives is discussed in Note 6. “Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements.
Sales under such agreements comprised approximately 92%, 85% and 84% of its worldwide sales from its mining operations (by volume) for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, the Company had approximately 100 million tons of U.S. thermal coal priced and committed for 2024.
Sales under such agreements comprised approximately 90%, 92% and 85% of its worldwide sales from its mining operations (by volume) for the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024, the Company had approximately 85 million tons of U.S. thermal coal priced and committed for 2025.
Based upon the Australian dollar/U.S. dollar exchange rate at December 31, 2023, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $116 million with respect to a $0.10 increase in the exchange rate, while the Company would benefit by approximately $179 million with respect to a $0.10 decrease in the exchange rate for the next twelve months.
Based upon the Australian dollar/U.S. dollar exchange rate at December 31, 2024, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $194 million with respect to a $0.10 increase in the exchange rate, while the Company would benefit by approximately $154 million with respect to a $0.10 decrease in the exchange rate for the next twelve months.
This includes approximately 85 million tons of PRB coal and 15 million tons of other U.S. thermal coal. The Company has the flexibility to increase volumes should demand warrant.
This includes approximately 71 million tons of PRB coal and 14 million tons of other U.S. thermal coal. The Company has the flexibility to increase volumes should demand warrant.
As of December 31, 2023, the Company held average rate options with an aggregate notional amount of $456.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the six-month period ending June 30, 2024.
As of December 31, 2024, the Company held average rate options with an aggregate notional amount of $388.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending September 30, 2025.
Peabody Energy Corporation 2023 Form 10-K 77 Table of Contents Credit and Nonperformance Risk The fair values of Peabody’s derivative instruments utilized for corporate hedging and coal trading activities reflect adjustments for credit risk, as necessary. The Company’s exposure is substantially with electric utilities, energy marketers, steel producers and nonfinancial trading houses.
Credit and Nonperformance Risk The fair values of Peabody’s derivative instruments utilized for corporate hedging and coal trading activities reflect adjustments for credit risk, as necessary. The Company’s exposure is substantially with electric utilities, energy marketers, steel producers and nonfinancial trading houses.
Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances and its long-term debt. Peabody’s interest-earning cash and restricted cash balances are primarily held in deposit accounts and investments with maturities of three months or less. Therefore, these balances are subject to interest rate fluctuations and could produce less income if interest rates fall.
Peabody’s interest-earning cash and restricted cash balances are primarily held in deposit accounts and investments with maturities of three months or less. Therefore, these balances are subject to interest rate fluctuations and could produce less income if interest rates fall.
Peabody is estimating 2024 thermal coal sales volumes from its Seaborne Thermal segment of 15 million to 16 million tons comprised of thermal export volume of 9 million to 11 million tons and domestic volume of 5.8 million tons. Peabody is estimating full year 2024 metallurgical coal sales from its Seaborne Metallurgical segment of 7.5 million to 8.5 million tons.
Peabody is estimating full year 2025 thermal coal sales volumes from its Seaborne Thermal segment of 14.2 million to 15.2 million tons comprised of thermal export volume of 8.8 million to 9.8 million tons and domestic volume of 5.4 million tons.
Coal Price Risk The Company predominantly manages its commodity price risk for its non-trading, long-term coal contract portfolio through the use of long-term coal supply agreements (those with terms longer than one year) to the extent possible, rather than through the use of derivative instruments.
Peabody Energy Corporation 2024 Form 10-K 78 Tab le of Contents Coal Pricing Risk The Company predominantly manages its commodity price risk for its non-trading, long-term coal contract portfolio through the use of long-term coal supply agreements (those with terms longer than one year) to the extent possible, rather than through the use of derivative instruments.
Due to a lack of quoted market prices and the long-term, illiquid nature of the positions, the Company has not quantified market price risk related to its non-trading, long-term coal supply agreement portfolio. Coal Trading Activities and Related Commodity Price Risk Peabody engages in direct and brokered trading of physical coal and freight-related commodities in over-the-counter markets.
Due to a lack of quoted market prices and the long-term, illiquid nature of the positions, the Company has not quantified market price risk related to its non-trading, long-term coal supply agreement portfolio.
Sales commitments in the metallurgical coal market are typically not long-term in nature, and the Company is therefore subject to fluctuations in market pricing. The Company’s sensitivity to market pricing in thermal coal markets is dependent on the duration of contracts. As of December 31, 2023, the Company had no coal derivative contracts related to its forecasted sales.
The Company’s sensitivity to market pricing in thermal coal markets is dependent on the duration of contracts. As of December 31, 2024, the Company had no coal derivative contracts related to its forecasted sales. Historically, such financial contracts have included futures and forwards.
The Company partially manages the price risk of diesel fuel through the use of cost pass-through contracts with certain customers. Interest Rate Risk Peabody’s objectives in managing exposure to interest rate changes are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs.
Interest Rate Risk Peabody’s objectives in managing exposure to interest rate changes are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances.
Based upon its interest-earning cash and restricted cash balances at December 31, 2023, a one percentage point decrease in interest rates would result in a decrease of approximately $16 million to interest income. As of December 31, 2023, Peabody had approximately $320 million of fixed-rate borrowings, no variable-rate borrowings outstanding and no interest rate swaps in place.
Based upon its interest-earning cash and restricted cash balances at December 31, 2024, a one percentage point decrease in interest rates would result in a decrease of approximately $14 million to interest income for the next twelve months. Item 8. Financial Statements and Supplementary Data. See Part IV, Item 15.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None.
“Exhibits and Financial Statement Schedules” of this report for the information required by this Item 8, which information is incorporated by reference herein. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None.
Removed
Historically, such financial contracts have included futures, forwards and options. Peabody Energy Corporation 2023 Form 10-K 78 Table of Contents Diesel Fuel Price Risk The Company expects to consume 90 to 100 million gallons of diesel fuel during the next twelve months.
Added
Peabody Energy Corporation 2024 Form 10-K 77 Tab le of Contents Coal Trading Activities and Related Commodity Price Risk Peabody engages in direct and brokered trading of physical coal and freight-related commodities in over-the-counter (OTC) markets.
Removed
A one percentage point increase in interest rates would result in a decrease of approximately $52 million in the estimated fair value of these borrowings. Item 8. Financial Statements and Supplementary Data. See Part IV, Item 15. “Exhibits and Financial Statement Schedules” of this report for the information required by this Item 8, which information is incorporated by reference herein.
Added
Peabody is estimating full year 2025 metallurgical coal sales from its Seaborne Metallurgical segment of 8.0 million to 9.0 million tons. Sales commitments in the metallurgical coal market are typically not long-term in nature, and the Company is therefore subject to fluctuations in market pricing.
Added
As of December 31, 2024, the Company did not have any diesel fuel derivative instruments in place. The Company partially manages the price risk of diesel fuel through the use of cost pass-through contracts with certain customers.

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