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Table 2- Peabody Energy Selected Financial Data Assets, Long Term Debt and Stockholder <br />Eauitv: 2010-2015 If in billions) <br />Total Assets <br />11.361 <br />16.731 <br />15.88 1 <br />14.131 <br />13.2 1 <br />11.0 <br />Long -Term Debt <br />1 2.7001 <br />6.657 1 <br />6.2501 <br />6.01 <br />5.99 1 <br />6.3 <br />Stock Equity <br />1 4.689 1 <br />5.5151 <br />4.9381 <br />3.950 1 <br />2.720 <br />.87 <br />Peabody assumed significant new debt levels in the earlier part of the decade (See Table 2) in <br />anticipation of a continuation of robust international and domestic coal demand and <br />favorable pricing. <br />Its most significant debt load was acquired due to the purchase of the Macarthur Coal mine <br />in Australia ($5 billion acquisition p6ce),I1 But the markets went sour: demand fell off and prices <br />collapsed. In addition, a combination of asset sales and value impairments (see Table 3) has <br />pushed down the total asset value of Peabody Energy. <br />Table 3: Peabody Asset <br />Impairments ( 01 0 <br />encs: (2010-2015 <br />.9291 .528 <br />1413 201514 <br />IMEW. <br />Peabody management has taken several steps to maintain company solvency during this <br />challenging period. They have reduced costs at mining operations, cut capital expenditures <br />and consolidated some mining operations. Peabody is currently involved in several asset sales <br />of non-core operations including recent announcements of U.S. western coal sales, Australian <br />mine transactions and the sale of its share of the Prairie State coal-fired power plant in Illinois. <br />The company also recently announced a debt exchange of $1.5 billion of its $6.3 billion in <br />outstanding debt. <br />Peabody`s Presentations of Coal Prices Do Not Reflect <br />Market Realities <br />United States domestic coal prices have declined significantly from the beginning of 2012 <br />through the present. CAPP, PRB 8800, and ILB 11500 spot prices declined during this period by <br />30%, 17%, and 38%, respectively. These price declines have fundamentally altered the revenue <br />9 our calculation based on method used in prior 10K filings <br />10 http.Udealbook.nybmes,com/2011/11/16/peabody-energy-takes-full-control-of-macarthur-coal/ <br />11 Form 10K-2014, p. F-16, $806 million Australia mines and $45 million Midwest mining <br />12 Form 10K-2014, $391 million, two mines in Australia and $66 3 in Eastern United States mines. additional $6.5 million <br />unidentified mining wnte down. <br />13 Form 10K-2014, p. F-15: Australia $78.6 million observed weaknesses In seabome market (thermal and metallurgical); 68 4 <br />million in Colorado and Indiana 'non-strategic, undeveloped coal properties', no interest from any buyers <br />t4 Form 8K-2016 Year End <br />Peabody's Strategies for Survival Ignore Market Realities and Risk Backfiring <br />