Peabody Energy Reevaluates Australian Coal Asset Acquisition After Mine Incident

Peabody Energy is reconsidering its planned acquisition of steelmaking coal assets in Australia following a mine ignition incident. The event occurred at the Moranbah North Mine, part of the assets previously announced for acquisition from Anglo American.

The company is currently in discussions to assess the impact of the incident and is reviewing its strategic options while maintaining its rights under the transaction agreements.

As part of its financing process for the deal, Peabody has also released unaudited historical and pro forma financial data related to the target assets. These figures are preliminary and not based on finalized accounting standards and should not be relied upon for future performance projections.

There is no confirmation yet on whether the incident will result in a delay or cancellation of the acquisition.

Peabody Energy Corporation announced an adjustment to the conversion rate of its 3.250% Convertible Senior Notes due 2028. The adjustment was triggered by the company's quarterly cash dividend of $0.075 per share, scheduled for payment on March 11, 2025. As a result, effective February 19, 2025, the conversion rate increased to 51.7762 shares of common stock per $1,000 principal amount of the convertible notes. The company provided this information to Wilmington Trust, the trustee, which will notify noteholders. A full copy of the notice is included as Exhibit 99.1 in the filing.

Peabody (NYSE: BTU) reported its fourth-quarter and full-year financial results for 2024. In the fourth quarter, net income attributable to common stockholders decreased to $30.6 million, or $0.25 per diluted share, from $192.0 million, or $1.33 per diluted share, in the previous year. Adjusted EBITDA for the quarter was $176.7 million, including a $41.4 million non-cash charge due to Australia currency remeasurement, compared to $345.1 million in Q4 2023.

For the full year, Peabody's revenue totaled $4,236.7 million, a decrease from $4,946.7 million in 2023. Full-year net income attributable to common stockholders was $370.9 million, or $2.70 per diluted share, down from $759.6 million, or $5.00 per diluted share, in the prior year. Adjusted EBITDA for the year was $871.7 million, compared to $1,363.9 million in 2023.

Peabody President and CEO Jim Grech highlighted the company's strong fourth-quarter performance and its transformational acquisition, which is expected to reshape Peabody positively. The company also achieved record low injury rates and reduced over $100 million in reclamation bonding obligations.

Key highlights include:
- Agreement to purchase four premium hard coking coal operations in Australia's Bowen Basin, shifting Peabody to a predominantly steelmaking-coal supplier.
- Development of the Centurion Mine in Australia, with longwall production expected to start in March 2026.
- A record low injury frequency rate (TRIFR) and safety achievements.
- A partnership with RWE to expand Peabody's R3 Renewables platform for solar and energy storage projects on reclaimed mine lands.
- A record $110 million in bond release approval for reclaimed U.S. lands, with reclaimed lands now exceeding disturbed lands by a ratio of 1.7 to 1.

Peabody declared a $0.075 per share dividend on February 6, 2025.

Peabody Energy Corporation announced an amendment to its receivables purchase agreement, extending the facility termination date from January 28, 2025, to January 18, 2028. The amendment, referred to as the Tenth Amendment to the Sixth Amended and Restated Receivables Purchase Agreement, involves P&L Receivables Company, Peabody Energy, PNC Bank, and other financial parties. The details of the amendment are available in the filed exhibit.