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2016-02-22_ENFORCEMENT - C1982057
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2016-02-22_ENFORCEMENT - C1982057
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Last modified
8/24/2016 6:19:23 PM
Creation date
3/4/2016 9:41:01 AM
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Template:
DRMS Permit Index
Permit No
C1982057
IBM Index Class Name
Enforcement
Doc Date
2/22/2016
Doc Name
Notice of Intent to File Law Suit Against Peabody Energy
From
Wild Earth Guardians
To
Peabody Energy
Violation No.
TDNX16140182001
Email Name
JRS
MPB
DIH
JHB
Media Type
D
Archive
No
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$620 million in cost improvements mitigated more than $450 million in lower pricing and $387.2 <br />million in hedge losses compared to the prior year. Adjusted EBITDA also includes $23.5 <br />million in charges related to reductions in corporate and regional staff and Australian Mining <br />Operations. <br />In the fourth quarter, Adjusted EBITDA declined 59 percent from the third quarter to <br />$53.0 million as a result of a $32.8 million reduction in Trading and Brokerage results, a $14.3 <br />million charge related to the assignment of excess Australian port capacity, a decline in U.S. <br />shipments and a decrease in Australian pricing. U.S. sales were impacted by lower energy <br />demand, declining natural gas prices and high customer stockpiles that resulted in <br />approximately 4 million tons of deferrals from the fourth quarter, with a significant portion of the <br />deferrals occurring in December. <br />2015 U.S. Mining Adjusted EBITDA declined $145.6 million to $937.2 million, primarily <br />due to a 13.5 million ton volume decrease as a result of lower utility coal demand based on <br />natural gas prices and a planned reduction in volumes associated with export shipments from <br />the Twentymile Mine. U.S. Mining costs per ton improved 5 percent as a result of lower fuel <br />expense and cost savings initiatives. <br />Despite approximately $420 million in impacts from lower pricing, 2015 Australian Mining <br />Adjusted EBITDA increased $62.4 million to $175.4 million on sharply lower costs. Cost <br />improvements included the benefit of a weaker Australian dollar, lower fuel prices, operational <br />improvements and mine plan changes announced previously in the year. These resulted in <br />record low costs for this platform of $51.07 per ton, even with lower volumes. 2015 Australian <br />Metallurgical gross margins were adversely impacted by over $2.50 per ton from the Burton <br />Mine, the company's only contractor -operated mine. Australian volumes decreased to 35.8 <br />million tons and included 15.7 million tons of metallurgical coal sold at $75.04 per ton and 12.6 <br />million tons of export thermal coal at $53.76 per ton, with the remainder delivered under <br />domestic thermal contracts. <br />Trading and Brokerage Adjusted EBITDA for 2015 increased $12.1 million to $27.0 <br />million, primarily due to favorable trading activities and a $7 million litigation settlement benefit <br />recorded in the third quarter. <br />Full -year results include impairment charges of $1.28 billion, including $377.0 million in <br />the fourth quarter. Full -year impairment charges included $969.2 million largely related to <br />certain Australian metallurgical coal assets and $308.6 million primarily from certain non - <br />producing reserve and non -mining assets in the United States. Results also include $67.8 <br />million in debt extinguishment charges from refinancing the company's 2016 Senior Notes in the <br />first half of 2015. Peabody's 2015 tax benefit totaled $135.0 million compared to a tax provision <br />of $201.2 million the prior year. The changes include a $75.3 million benefit related to <br />
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