Profile: Peabody Energy Corp (BTU.N)

BTU.N on New York Stock Exchange

3.63USD
22 May 2015
Change (% chg)

$-0.12 (-3.20%)
Prev Close
$3.75
Open
$3.70
Day's High
$3.74
Day's Low
$3.62
Volume
1,605,020
Avg. Vol
2,235,299
52-wk High
$17.55
52-wk Low
$3.55

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Peabody Energy Corporation (Peabody) incorporated on February 27, 1998, is a coal company. The Company has five segments: Western United States Mining, Midwestern United States Mining, Australian Mining, Trading and Brokerage, and Corporate and other. The Company's coal supply agreements are primarily with electricity generators, industrial facilities and steel manufacturers.

As of September 30, 2014, Peabody owned interests in 27 active coal mining operations located in the United States and Australia. It has a majority interest in 26 of those mining operations and a 50% equity interest in the Middlemount Mine in Australia. In addition to mining operations, the Company markets and brokers coal from other coal producers, both as principal and agent, and trades coal and freight-related contracts through trading and business offices in Australia, China, Germany, India, Indonesia, Singapore, the United Kingdom and the United States.

Western and Midwestern United States Mining Operations

Under Western and Midwestern United States Mining segments, the Company is engaged in the mining, preparation and sale of thermal coal, which is typically supplied to United States electricity generators and industrial customers for power generation, with a portion sold into seaborne export markets. The Company's Western United States Mining segment consists of Powder River Basin, Southwest and Colorado mining operations. The Company's Midwestern United States Mining segment includes the active mining operations in Illinois and Indiana.

Australian Mining Operations

Under Australian Mining segment, the Company’s operations consist of the mines in Queensland and New South Wales, Australia. These mines are characterized by both surface and underground extraction processes for the mining of various qualities of metallurgical and thermal coal. The Company produces hard coking coal, semi-hard coking coal, semi-soft coal and pulverized coal injection (LV PCI) coal. LV PCI coal is generally used by steel producers as a partial replacement for coke made from coking coal. Peabody’s Australian Mining segment operations are primarily export focused with customers spread across several countries, and a portion of the Company's coal is sold to Australian steel producers and power generators.

Trading and Brokerage

The Company is engaged in the direct and brokered trading of coal and freight-related contracts through trading and business offices in Australia, China, Germany, India, Indonesia, Singapore, the United Kingdom and the United States. Coal brokering is conducted both as principal and agent in support of various coal production-related activities that may involve coal produced from the Company's mines, coal sourcing arrangements with third-party mining companies or offtake agreements with other coal producers. Peabody also provides transportation-related services in support of the Company's coal trading strategy, as well as hedging activities in support of sales from its mining operations.

Corporate and Other

The Company's Corporate and Other Segment includes selling and administrative items, activity associated with the Company's joint ventures, resource management activity, past mining obligations and its other commercial activities such as generation development and the evaluation of Btu Conversion projects. As of December 31, 2013, Peabody held approximately 8.3 billion tons of proven and probable coal reserves and approximately 500,000 acres of surface property. In addition, the Company generates revenue through royalties from coal reserves and oil and gases rights leased to third parties and farm income from surface lands under third-party contracts.

The Company owns a 50% equity interest in the Middlemount Mine in Queensland, Australia. The mine predominantly produces semi-hard coking coal and LV PCI coal, with a small portion of thermal coal, for sale into seaborne coal markets through rail and port capacity contracted. The Company owns a 48.37% noncontrolling interest in Carbones del Guasare S.A., which operates the Paso Diablo Mine, a surface operation in northwestern Venezuela that produces thermal coal for export primarily to the United States and Europe. It owns a 50% interest in Sino-Pacific Coal Trading Corporation Pte. Ltd. (Sino-Pacific), a Singapore-based joint venture agreement with Shenhua Group Corporation Limited (Shenhua), an energy company headquartered in Beijing, China. The Company owns a 50% interest in Peabody-Winsway Resources B.V., a joint venture agreement with Winsway Coking Coal Holding Ltd. (Winsway), a Hong Kong stock exchange listed company in which the Company also owns an equity interest. The joint venture holds several exploration licenses and continues to evaluate metallurgical and thermal coal projects for possible development. The Company has a 37.5% interest in a coal export terminal in Newport News, Virginia that exports both metallurgical and thermal coal primarily to European and Brazilian markets.

The Company competes with Alliance Resource Partners; Alpha Natural Resources, Inc.; Arch Coal, Inc.; Cloud Peak Energy Inc.; Anglo-American PLC; BHP Billiton; China Coal; Glencore Xstrata PLC; Rio Tinto; and Shenhua Group.

Company Address

Peabody Energy Corp

701 MARKET ST
ST. LOUIS   MO   63101-1826
P: +1314.3423400
F: +1302.6365454

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