Repurchased $80.4 million of Shares in the Quarter Completed Strategic Wards Well Acquisition at Centurion ST. LOUIS, May 2, 2024 /PRNewswire/ -- Peabody (NYSE:BTU) today reported net income attributable to common stockholders of $39.6 million, or $0.29 per diluted share, for the first quarter of 2024, compared to $268.5 million, or $1.68 per diluted share in the prior year quarter.  Peabody had Adjusted EBITDA1 of $160.5 million in the first quarter of 2024 compared to $390.6 million in the prior year quarter. "We are reaffirming our full year guidance as the previously announced production challenges in the first quarter are behind us," said Peabody President and Chief Executive Officer Jim Grech.  "We continue to take steps to further weight our long-term cash flows to metallurgical coal, and the Wards Well acquisition extends the mine life of Centurion to 25+ years and substantially increases the expected long-term value from our premier hard coking coal growth project." Highlights Reported first quarter Adjusted EBITDA of $160.5 million and generated operating cash flow from continuing operations of $120.3 million Repurchased 3.2 million shares, or 3% of shares outstanding, for $80.4 million Acquired a large portion of the Wards Well coal deposit immediately adjacent to the company's Centurion Mine complex Centurion remains on track for development coal in the second quarter of 2024 and longwall production in the first quarter of 2026 with capital expenditures in line with previous guidance Shoal Creek continued to exceed production expectations Achieved a $105 million release of U.S. reclamation bonds Closed on a new $320 million revolving credit facility Declared a dividend on common stock of $0.075 per share on May 2, 2024 1 Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA margin is equal to segment Adjusted EBITDA divided by segment revenue. Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment, 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 in this press release for a reconciliation and definition of non-GAAP financial measures. First Quarter Segment Performance  Seaborne Thermal Quarter Ended Mar. Dec. Mar. 2024 2023 2023 Tons sold (in millions) 4.0 3.7 3.6 Export 2.5 2.6 2.1 Domestic 1.5 1.1 1.5 Revenue per Ton $             71.24 $             76.22 $             96.82 Export - Avg. Realized Price per Ton 99.56 97.20 148.34 Domestic - Avg. Realized Price per Ton 26.33 30.26 25.05 Costs per Ton 47.71 49.71 51.01 Adjusted EBITDA Margin per Ton $             23.53 $             26.51 $             45.81 Adjusted EBITDA (in millions) $               93.8 $               99.8 $             164.0 Peabody expected seaborne thermal volume of 3.9 million tons, including 2.5 million export tons, and costs of $48.00 to $53.00 per ton.  First quarter shipments were higher than anticipated, while average realized prices and costs per ton were lower than expected due to higher production from Wilpinjong mostly offset by an extended longwall ramp-up at Wambo.  The segment reported Adjusted EBITDA margins of 33 percent and Adjusted EBITDA of $93.8 million. Seaborne Metallurgical Quarter Ended Mar. Dec. Mar. 2024 2023 2023 Tons sold (in millions) 1.4 2.1 1.3 Revenue per Ton $           172.60 $           186.74 $           220.60 Costs per Ton 138.83 107.89 151.13 Adjusted EBITDA Margin per Ton $             33.77 $             78.85 $             69.47 Adjusted EBITDA (in millions) $               48.3 $             166.2 $               90.8 Peabody expected seaborne met volume of 1.4 million tons and costs of $130.00 to $140.00 per ton.  First quarter shipments and costs per ton were in line with expectations and included the impacts of a longwall move at Metropolitan and unfavorable mine sequencing at the CMJV.  Revenue per ton was impacted by lower HVA and PCI to HCC price relativities and mining of lower quality coal at the CMJV.  The segment reported Adjusted EBITDA margins of 20 percent and Adjusted EBITDA of $48.3 million. Powder River Basin Quarter Ended Mar. Dec. Mar. 2024 2023 2023 Tons sold (in millions) 18.7 23.6 22.0 Revenue per Ton $             13.62 $             13.58 $             13.89 Costs per Ton 12.74 11.98 12.26 Adjusted EBITDA Margin per Ton $               0.88 $               1.60 $               1.63 Adjusted EBITDA (in millions) $               16.4 $               37.6 $               35.8 Peabody expected PRB volume of 21 million tons and costs of $11.75 to $12.50 per ton.  First quarter volume and costs per ton were unfavorable to expectations as unseasonably warm winter weather and continued low natural gas prices led to lower customer shipments.  The segment reported Adjusted EBITDA of $16.4 million. Other U.S. Thermal Quarter Ended Mar. Dec. Mar. 2024 2023 2023 Tons sold (in millions) 3.2 3.7 4.5 Revenue per Ton $             59.75 $             57.00 $             54.73 Costs per Ton 45.25 45.57 40.65 Adjusted EBITDA Margin per Ton $             14.50 $             11.43 $             14.08 Adjusted EBITDA (in millions) $               46.5 $               42.3 $               64.2 Peabody expected other U.S. thermal volume of 3.6 million tons and costs of $41.00 to $45.00 per ton.  First quarter volume was less than anticipated as unseasonably warm winter weather and continued low natural gas prices led to lower customer shipments.  Revenue per ton was higher than anticipated due to sales contract cancellation settlements, resulting in higher segment margins.  The segment reported Adjusted EBITDA margins of 24 percent and Adjusted EBITDA of $46.5 million. Shareholder Return Program Since restarting the shareholder return program in 2023, the company has returned $470.7 million to shareholders through share repurchases of $430.4 million, or 13.4% of shares outstanding, and cumulative quarterly cash dividends of $40.3 million.  First quarter 2024 results included $80.4 million of share repurchases and $9.7 million of cash dividends. At March 31, Peabody had $569.6 million remaining under its existing $1.0 billion share repurchase program. The company declared a $0.075 per share dividend on May 2, 2024. Quarter Ended Year Ended Mar. Dec. 2024 2023 (Dollars in millions) Net Cash Provided by Operating Activities: $                      119.0 $                   1,035.5   - Net Cash Used in Investing Activities (75.2) (342.6)   - Distributions to Noncontrolling Interest (18.5) (59.0)   +/- Changes to Restricted Cash and Collateral (1) (29.7) 90.2   - Anticipated Expenditures or Other Requirements — — Available Free Cash Flow (AFCF) (2) $                        (4.4) $                      724.1 (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 $151 million and an outflow of $200 million for the quarter ended March 31, 2024 and the year ended December 31, 2023, respectively, and the $660 million one-time funding related to the surety program during the year ended December 31, 2023. (2) AFCF is a non-GAAP financial measure defined as operating cash flow minus investing cash flow and distributions to noncontrolling interests; plus/minus changes to restricted cash and collateral (excluding one-time effects of the 2023 surety agreement amendment) 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 operations. The Company's policy is to return at least 65% of annual AFCF to shareholders. Second Quarter 2024 Outlook    Seaborne Thermal Volumes are expected to be 4.1 million tons, including 2.7 million export tons. 0.4 million export tons are priced at $146 per ton, and 1.0 million tons of Newcastle product and 1.3 million tons of high ash product are unpriced. Costs are anticipated to be $45-$50 per ton. Seaborne Metallurgical Volumes are expected to be 1.9 million tons and are expected to achieve 65 to 70 percent of the premium hard coking coal price index. Costs are anticipated to be $110-$120 per ton. U.S. Thermal PRB volume is expected to be approximately 15.5 million tons at an average price of $13.80 per ton and costs of approximately $12.75-$13.75 per ton. Other U.S. Thermal volume is expected to be approximately 3.8 million tons at an average price of $54.80 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 Kimrey314.342.7890 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 - 16 8.7 $52.75 $45.00 - $50.00 Seaborne Thermal (Export) 9 - 11 2.8 $106.35 NA Seaborne Thermal (Domestic) 5.8 5.9 $26.70 NA Seaborne Metallurgical 7.5 - 8.5 1.4 $172.60 $110.00 - $120.00 PRB U.S. Thermal 80 - 87 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