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Peabody Energy Corporation (BTU)

  • Sep. 18, 2014, 10:21 AM
    • Coal names are broadly lower after Goldman Sachs downgrades Peabody Energy (BTU -5.1%) to Sell from Neutral and cuts its stock price target to $13 from $15, believing lower coal prices will hurt BTU's margins.
    • WLT -7.1%, ACI -4.1%, ANR -4.1%, CNX -1.5%, CLD -1.4%, WLB -0.9%, OXF flat.
  • Aug. 28, 2014, 7:07 AM
    • Peabody Energy (NYSE:BTU) has cancelled its $130M sale of its Australian Wilkie Creek coal mine to former billionaire Nathan Tinkler.
    • Tinkler's Bentley Resources missed several payment installments since agreeing to the cash-and-debt deal in May.
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  • Aug. 20, 2014, 4:57 PM
    • An advertisement from Peabody Energy (NYSE:BTU) promoting coal as an energy source is misleading in its use of the phrase “clean coal,” according to the U.K.'s regulator for advertising standards.
    • Upholding a complaint from the World Wildlife Fund, the regulator says consumers were likely to interpret the advertisement as a claim that “clean coal” processes don’t produce carbon dioxide or other emissions, and the ad must be changed before it runs again.
    • The agency rejects a complaint from the WWF that BTU’s statement that “energy poverty” is the biggest human and environmental crisis was misleading and unsubstantiated.
  • Aug. 5, 2014, 7:49 AM
    • Peabody Energy (NYSE:BTU) raises its Q3 guidance after deciding to trim back its metallurgical coal production in Australia.
    • BTU now expects an adjusted Q3 loss of $0.36-$0.49 a share, better than its earlier forecast of a $0.40-$0.53 loss, and says it is reducing met coal output by ~1.5M tons/year from its Burton Mine in Queensland, Australia, as production levels from the mine are "not sustainable in the current market environment."
    • BTU also expects to trim production levels to ~1M tons/year, cutting its annual average cost estimate for Australia to the low $70/ton range, as it plans to use reduced equipment fleets to target lower-cost reserves.
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  • Jul. 29, 2014, 10:33 AM
    • Arch Coal (ACI +3.5%) moves higher after its Q2 earnings loss came in better than expected as operating costs per ton fell 7%.
    • Q2 sales fell 7% Y/Y to $713.8M, missing analyst consensus, but operating costs per ton fell to $20.55 from $21.19.
    • ACI lowers its FY 2014 sales volume targets, including cutting its thermal sales volumes forecast to 124M-130M tons from 124M-132M tons to reflect the effects of transportation bottlenecks and the impact of a fall in steel production.
    • Other coal names also are higher: ANR +4.3%, ARLP +2.4%, PVA +1.9%, WLB +1.9%, BTU +1.4%, RNO +0.9%, WLT +0.8%, KOL +0.4%.
  • Jul. 25, 2014, 10:56 AM
    • Peabody Energy (NYSE:BTU) declares $0.085/share quarterly dividend, in line with previous.
    • Forward yield 2.27%
    • Payable Aug. 29; for shareholders of record Aug. 8; ex-div Aug. 6.
    | 1 Comment
  • Jul. 22, 2014, 10:59 AM
    • Peabody Energy (BTU +1.5%) moves higher after reporting a Q2 loss that was in line with estimates and a ~2% rise in revenue, helped by an increase in shipments and prices at its mining operations in the western U.S.
    • Q2 U.S. mining revenue rose 6.2% to $1.03B, while revenue per ton gained 1.1%, but revenue from Australian mining operations fell 5% to $744.8M, with revenue per ton down 15%.
    • Issues downside EPS guidance for Q3, now seeing a loss of $0.40-$0.53 vs. analyst consensus expectations for a $0.18 loss.
    • Nevertheless, BTU sees market conditions improving, noting that coal's market share of global energy consumption is now 30%, highest since the 1970s, U.S. coal demand has been expanding for the past two years, and seaborne market fundamentals are seen improving into 2015.
  • Jul. 22, 2014, 8:02 AM
    • Peabody Energy (NYSE:BTU): Q2 EPS of -$0.28 in-line.
    • Revenue of $1.76B (+1.7% Y/Y) beats by $120M.
    • Press Release
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  • Jul. 21, 2014, 5:30 PM
  • Jul. 16, 2014, 2:18 PM
    • Unloved Alpha Natural Resources (ANR +6.4%), Arch Coal (ACI +1.9%) and Peabody Energy (BTU +2.4%) are popping today thanks to China’s strong GDP reading and CSX’s solid earnings, but FBR analyst Mitesh Thakkar is not optimistic about the coal stocks heading into earnings.
    • FBR expects most of the earnings calls to be focused on the two major challenges for coal producers - weak met coal pricing and rail service limiting steam coal volume - over and above company-specific issues.
    • The firm lowers its 2014 EBITDA estimates by an average of 12% for the group, and cuts stock price targets for Cloud Peak Energy (CLD +1.2%) and Walter Energy (WLT +5.2%) by a dollar each, preferring steam coal names and/or low-cost met coal assets with solid balance sheets.
  • Jul. 9, 2014, 5:34 PM
    • Peabody Energy (BTU) says it is still in talks with Nathan Tinkler about the sale of its Wilkie Creek mine in Queensland state, following a report that the former Australian billionaire missed a payment for the asset.
    • BTU is said to have granted an extension to Tinkler and his New York-based financiers, although it’s not clear for how long.
    • BTU agreed in May to sell the mine to Tinkler's company for $70M and the assumption of liabilities including rail and port obligations, but a June 30 deadline for the payment was missed.
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  • Jul. 7, 2014, 12:44 PM
    • Coal stocks suffer a beating after Deutsche Bank downgrades Peabody Energy (BTU -3.3%) to Hold from Buy with a $19 price target, down from $23, to reflect lower realized coal prices (particularly metallurgical coal) and anticipated ongoing cost pressures in foreseeable future.
    • Consol Energy (CNX -1.7%) is the firm’s only Buy-rated coal stock because of the company’s “fast-growing natural gas business and solid financial position.”
    • Although the Deutsche team says its focus is shifting to more company specific stories from an emphasis on sector performance, other coal companies are sharply lower: ACI -4.3%, ANR -4.8%, YZC -1.3%, CLD -2.4%, WLT -3.6%, RNO -1.5%, WLB -2%.
  • Jun. 6, 2014, 3:43 PM
    • Consol Energy (CNX) shares rose to a nearly three-year high before pulling back, after Goldman Sachs raised its rating to Buy and cited CNX's strong free cash flow and growing position in the Marcellus fields.
    • Goldman said CNX trades at a deep discount to its sum-of-the-parts value, and points to four pillars to its positive view: improving free cash flow in the coal segment, a major E&P production ramp, potential for asset sales and restructuring, and a strong balance sheet.
    • Investors also are optimistic that CNX can weather the EPA's proposed cuts in carbon emissions at U.S. power plants; Sterne Agee thinks CNX is perhaps the best-positioned coal miner to meet the new requirements, "given its low-cost energy production and excess asset value."
    • As Goldman praised CNX, it downgraded Peabody Energy (BTU -1.4%) and cut price targets for Alpha Natural Resources (ANR +0.7%), Arch Coal (ACI +3.8%)and Walter Energy (WLT +1.2%).
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  • Jun. 6, 2014, 8:28 AM
    • Consol Energy (CNX+1.6% premarket after Goldman Sachs upgrades shares to Buy from Neutral with a $55 price target, up from $49, to reflect Marcellus and Utica production growth, strong free cash flow in coal and potential catalysts from the upcoming analyst day.
    • However, Goldman downgrades Peabody Energy (BTU) to Neutral from Buy and cuts its price target to $15 from $21, citing its expectations for lower international thermal coal and met prices; BTU -1.4% premarket.
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  • Jun. 5, 2014, 3:26 PM
    • Gains in coal stocks (KOL) have gone up in smoke thanks to new rules from the EPA that would limit its use as a fuel for power generation, but shares are bouncing a bit today as Stifel analysts make the case for coal as a worthwhile investment.
    • Coal’s power market share dropped from 49% to 39% while the natural gas share rose from 19% to 27% from 2005 to 2013, but Stifel argues that much of the investment case for U.S. coal centers on its ability to step in as a low-cost, reliable Plan B if Plan A (gas and renewables) falls short, and the cold weather-impacted Q1 offered a glimpse of what this might look like.
    • Stifel favor exposure to U.S. coal mining firms in low-cost regions including the Illinois Basin, Powder River Basin and Northern Appalachia; these include Buy-rated Peabody Energy (BTU +2.2%), Cloud Peak Energy (CLD +2.2%) and Consol (CNX +3.6%).
    • Also: ANR +5.6%, WLT +4.8%, ACI +3.4%, WLB +1.2%.
  • Jun. 3, 2014, 12:45 PM
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Company Description
Peabody Energy Corp is involved in mining. It mines, prepares, and sells thermal coal to electric utilities and metallurgical coal to industrial customers.