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Peabody Energy's 2015 Earnings Reports Show a <br />Steady Downward Spiral <br />Peabody Energy Corporation's 2015 results, released on February 11, 2016, reveal a steady <br />downward spiral for the company. Among the company's financial woes are declining <br />revenues, diminished equity value to stockholders, too much debt, asset impairments, and <br />enterprise -wide losses for the fourth straight year. <br />Table 1: Peabod i Ener y Selected Operating Data: <br />Item 2010 2011 <br />Revenues 6.668 7.895 <br />2010-2015 <br />2012 <br />8.077 <br />in S billions)3 <br />2013 2014 20154 <br />7.013 6.792 5.609 <br />Expenses <br />5.317 <br />6.300 <br />7.905 <br />7.338 <br />6.927 <br />5.790 <br />Net Operating <br />1.315 <br />1.596 <br />.172 <br />(.324) <br />(.135) <br />.1815 <br />Interest <br />.212 <br />.220 <br />.381 <br />.409 <br />.412 <br />.465 <br />Net atter Interest <br />1.138 <br />1.397 <br />(.209) <br />(.734) <br />(.547) <br />(.653)6 <br />Net to stockholders <br />.774 <br />.957 <br />(.585) <br />(.524) <br />(.787) <br />(2.044) <br />Low coal prices are at the root of the company's revenue losses. In the United States, low coal <br />prices can be attributed to low natural gas prices, market share gains by wind and solar <br />energy, the erosion of demand by energy efficiency, and a cloudy regulatory climate. These <br />changing market forces have driven coal's market share of electricity in the United States <br />down from 50% in the early 2000's to 34% in 2015 and annual coal consumption for electricity <br />has declined nationwide from 1.1 billion tons to 750 million tons. The price of coal has <br />dropped significantly throughout the country. For the foreseeable future coal prices are <br />expected to remain very low, making mining in some parts of the country financially <br />unsustainable.8 <br />International markets are also in decline as weaker demand for thermal and metallurgical <br />coal has driven prices to historic lows. <br />3 http-//www peabodyenergy.com/contenVl62/sec-filings. Peabody Energy. Form 10K, February 25, 2015, p. 43. (Form 10K- <br />2014) <br />https//www peabodyenergy com/content1162/sec-filingshttp://www peabodyenergy.com/content/162/sec-filings, Form 8K, <br />February 11 2016 (Form 81K-2016 Year End) <br />5 Our calculation based on method used in prior 10K filings <br />Our calculation based on method used in prior 10K filings <br />7 https 1/www eia.gov/forecasts/steo/query/. Custom Table Builder/1.1 S Coal/Electric Power Sector Coal Consumption 2012- <br />2017. <br />8 https /hvww wsws org/en/articles/2015108/05/coal-a05 html <br />Peabody's Strategies for Survival Ignore Market Realities and Risk Backfiring <br />