Announced $100 Million for Additional Share Repurchases Achieved First Development Coal at Centurion ST. LOUIS, Aug. 1, 2024 /PRNewswire/ -- Peabody (NYSE:BTU) today reported net income attributable to common stockholders of $199.4 million, or $1.42 per diluted share, for the second quarter of 2024, compared to $179.2 million, or $1.15 per diluted share in the prior year quarter.  Peabody had Adjusted EBITDA1 of $309.7 million in the second quarter of 2024, which included $80.8 million from an insurance settlement compared to $358.2 million in the prior year quarter. "Our operations performed safely, while achieving results in-line with expectations across all four segments.  With a strong outlook for free cash flow in the second half of 2024, we have committed $100 million for additional share buybacks," said Peabody President and Chief Executive Officer Jim Grech.  "Development at Centurion remains on plan, with initial underground development rates exceeding expectations.  We reached first development coal in the second quarter and expect to ship to customers beginning in the fourth quarter of 2024." Highlights Reported second quarter Adjusted EBITDA of $309.7 million Achieved first development coal at Centurion; second continuous miner commissioned in July Increased Seaborne Thermal revenue and Adjusted EBITDA margin per ton Reached $109.5 million insurance settlement at Shoal Creek Maintained strong cost discipline at U.S. Thermal operations Announced an additional $100 million for share repurchases Declared a dividend on common stock of $0.075 per share on August 1, 2024 _________________________________________ 1 Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA margin is equal to segment Adjusted EBITDA (excluding insurance recoveries) divided by segment revenue. Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment (excluding insurance recoveries), respectively, divided by segment tons sold. Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton. Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reporting segment level. We consider all measures reported on a per ton basis, as well as Adjusted EBITDA margin, to be operating/statistical measures. Please refer to the tables and related notes herein for a reconciliation of non-GAAP financial measures. Second Quarter Segment Performance Seaborne Thermal Quarter Ended Six Months Ended Jun. Mar. Jun. Jun. Jun. 2024 2024 2023 2024 2023 Tons sold (in millions) 4.1 4.0 4.0 8.1 7.6 Export 2.7 2.5 2.6 5.2 4.7 Domestic 1.4 1.5 1.4 2.9 2.9 Revenue per Ton $             74.43 $             71.24 $           100.59 $             72.86 $             98.81 Export - Avg. Realized Price per Ton 98.43 99.56 139.88 98.97 143.62 Domestic - Avg. Realized Price per Ton 26.69 26.33 23.76 26.50 24.44 Costs per Ton 49.14 47.71 50.88 48.44 50.94 Adjusted EBITDA Margin per Ton $             25.29 $             23.53 $             49.71 $             24.42 $             47.87 Adjusted EBITDA (in millions) $             104.4 $               93.8 $             197.5 $             198.2 $             361.5 Peabody expected seaborne thermal volume of 4.1 million tons, including 2.7 million export tons, at costs of $45 to $50 per ton.  Second quarter results were in-line with expectations, increasing segment Adjusted EBITDA margin per ton by 7.5 percent compared to the first quarter due to higher export tons.  The segment reported Adjusted EBITDA margins of 34 percent and Adjusted EBITDA of $104.4 million. Seaborne Metallurgical Quarter Ended Six Months Ended Jun. Mar. Jun. Jun. Jun. 2024 2024 2023 2024 2023 Tons sold (in millions) 2.0 1.4 2.0 3.4 3.3 Revenue per Ton $           149.29 $           172.60 $           190.13 $           159.10 $           202.33 Costs per Ton 117.47 138.83 137.78 126.46 143.14 Adjusted EBITDA Margin per Ton $             31.82 $             33.77 $             52.35 $             32.64 $             59.19 Adjusted EBITDA, Excluding Insurance Recovery      (in millions) $               62.8 $               48.3 $             102.5 $             111.1 $             193.3 Shoal Creek Insurance Recovery (in millions) $               80.8 $                  — $                  — $               80.8 $                  — Adjusted EBITDA (in millions) $             143.6 $               48.3 $             102.5 $             191.9 $             193.3 Peabody expected seaborne met volume of 1.9 million tons at costs of $110 to $120 per ton.  Second quarter shipments were above expectations and increased 600 thousand tons compared to the first quarter following a successful longwall move at Metropolitan, which also significantly improved costs per ton.  Peabody successfully reached a $109.5 million settlement for property loss and business disruption sustained at Shoal Creek in 2023. Peabody has included $80.8 million in second quarter segment Adjusted EBITDA after previously reporting a $28.7 million provision for Shoal Creek Property losses.  The segment reported Adjusted EBITDA margins of 21 percent (excluding insurance recovery) and Adjusted EBITDA of $143.6 million. Powder River Basin Quarter Ended Six Months Ended Jun. Mar. Jun. Jun. Jun. 2024 2024 2023 2024 2023 Tons sold (in millions) 15.8 18.7 18.9 34.5 40.9 Revenue per Ton $             14.02 $             13.62 $             13.71 $             13.80 $             13.80 Costs per Ton 12.89 12.74 12.33 12.81 12.28 Adjusted EBITDA Margin per Ton $               1.13 $               0.88 $               1.38 $               0.99 $               1.52 Adjusted EBITDA (in millions) $               17.8 $               16.4 $               26.2 $               34.2 $               62.0 Peabody expected PRB volume of 15.5 million tons at costs of $12.75 to $13.75 per ton.  The segment achieved costs at the low end of guidance due to continued cost containment measures.  Shipments increased as the quarter progressed, confirming expectations for higher volumes in the second half of the year.  The segment reported Adjusted EBITDA of $17.8 million. Other U.S. Thermal Quarter Ended Six Months Ended Jun. Mar. Jun. Jun. Jun. 2024 2024 2023 2024 2023 Tons sold (in millions) 3.7 3.2 3.8 6.9 8.3 Revenue per Ton $             55.21 $             59.75 $             53.63 $             57.33 $             54.23 Costs per Ton 45.53 45.25 39.71 45.40 40.22 Adjusted EBITDA Margin per Ton $               9.68 $             14.50 $             13.92 $             11.93 $             14.01 Adjusted EBITDA (in millions) $               35.4 $               46.5 $               51.9 $               81.9 $             116.1 Peabody expected Other U.S. Thermal volume of 3.8 million tons at costs of approximately $44 to $48 per ton.  Peabody delivered 3.7 million tons at costs of $45.53 per ton, in-line with expectations.  The segment reported Adjusted EBITDA of $35.4 million. Centurion Update Our world class hard coking coal growth project in Australia continues to advance on time and on budget.  We produced the first development coal in the second quarter and commissioned the second continuous miner in July.  We expect to ship first coal in the fourth quarter of 2024 and remain on track to commence longwall production in the first quarter of 2026.  Approximately $200 million of the $489 million of capital expenditures to reach longwall production has been completed as of June 30, 2024.  Centurion is expected to have a mine life in excess of 25 years and average annual longwall production of 4.7 million tons.  The benchmark premium hard coking coal from Centurion is expected to receive a premium price relative to other metallurgical coals.   Shareholder Return Program Since restarting our shareholder return program, the company has returned $480.1 million to shareholders through share repurchases of $430.4 million, or 13.4% of shares outstanding, and cumulative quarterly cash dividends of $49.7 million.  At June 30, Peabody had $569.6 million remaining under its existing $1.0 billion share repurchase program.  On August 1, 2024, we committed an additional $100 million for share repurchases in 2024 following the continued successful advancement at Centurion, settlement of the Shoal Creek insurance claim and a favorable free cash flow outlook for the remainder of the year.  The company declared a $0.075 per share dividend on August 1, 2024. Six Months Ended Year Ended Jun. Dec. 2024 2023 (Dollars in millions) Net Cash Provided by Operating Activities: $                      126.8 $                   1,035.5   - Net Cash Used in Investing Activities (316.8) (342.6)   - Distributions to Noncontrolling Interest (18.5) (59.0)   +/- Changes to Restricted Cash and Collateral (1) (17.1) 90.2   - Anticipated Expenditures or Other Requirements — — Available Free Cash Flow (AFCF) (2) $                     (225.6) $                      724.1 Amount Allocated to Shareholder Returns $                      118.8 $                      470.7 (1) This amount is equal to the total change in Restricted Cash and Collateral on the balance sheet, excluding partially offsetting amounts included in operating cash flow consisting of an inflow of $150 million and an outflow of $200 million for the six months ended June 30, 2024 and the year ended December 31, 2023, respectively. (2) AFCF is a non-GAAP financial measure defined as operating cash flow less investing cash flow and distributions to noncontrolling interests; plus/minus changes to restricted cash and collateral and other anticipated expenditures. Available Free Cash Flow is used by management as a measure of our ability to generate excess cash flow from our business. The Company's policy is to return at least 65% of annual AFCF to shareholders. 2024 Outlook    Seaborne Thermal Full year volume has been increased by 500 thousand tons to 15.7-16.2 million tons due to anticipated additional high ash coal production at Wilpinjong. Third quarter volume is expected to be 4.0 million tons, including 2.5 million export tons. 600 thousand export tons are priced at $120.45 per ton, and 1.0 million tons of Newcastle product and 0.9 million tons of high ash product are unpriced. Costs are anticipated to be $48-$53 per ton. Seaborne Metallurgical Full year volume has been lowered by 600 thousand tons to 7.2-7.6 million tons primarily because of anticipated challenging geological conditions at the CMJV. As a result, full year costs are now expected to be $118-$128 per ton. Third quarter volume is anticipated to be 1.7 million tons and is expected to achieve 70 to 80 percent of the premium hard coking coal price index. Costs are anticipated to be $120-$130 per ton. U.S. Thermal Full year PRB volume has been lowered 5 million tons to 75-82 million tons. Third quarter PRB volume is expected to be 21.5 millions tons at an average price of $13.75 per ton and costs of approximately $11.50-$12.50 per ton. Third quarter Other U.S. Thermal volume is expected to be 4.0 million tons at an average price of $54.10 per ton and costs of approximately $44-$48 per ton. Today's earnings call is scheduled for 10 a.m. CT and can be accessed via the company's website at PeabodyEnergy.com. Peabody (NYSE:BTU) is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel.  Our commitment to sustainability underpins everything we do and shapes our strategy for the future.  For further information, visit PeabodyEnergy.com.  Contact: Karla Kimrey 314.342.7890 Guidance Targets  Segment Performance 2024 Full Year Total Volume (millions of short tons) Priced Volume (millions of short tons) Priced Volume Pricing per Short Ton Average Cost per Short Ton Seaborne Thermal 15.7 - 16.2 12 $65.09 $45.00 - $50.00 Seaborne Thermal (Export) 9.8 - 10.3 6.2 $101.93 NA Seaborne Thermal (Domestic) 5.9 5.9 $26.30 NA Seaborne Metallurgical 7.2 - 7.6 3.7 $158.00 $118.00 - $128.00 PRB U.S. Thermal 75 - 82 85 $13.70 $11.75 - $12.50 Other U.S. Thermal 14.5 - 15.5 15.2 $54.20 $41.00 - $45.00 Other Annual Financial Metrics ($ in millions) 2024 Full Year SG&A $90 Total Capital Expenditures $375 Major Project Capital Expenditures $235 Sustaining Capital Expenditures $140 ARO Cash Spend $50