This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Peabody Energy Chairman And CEO Reports Solid Results At Annual Shareholders Meeting

ST. LOUIS, May 8, 2014 /PRNewswire/ -- Peabody Energy (NYSE: BTU) Chairman and Chief Executive Officer Gregory H. Boyce today cited a number of 2013 accomplishments and discussed broad market conditions at the company's annual shareholder's meeting.

"2013 was a year of substantial achievement despite market headwinds," Boyce said. "We matched our record safety performance from 2012, increased productivity, reduced costs, lowered capital investments, generated solid cash flow and repaid debt."

While plentiful global supply weighed on coal pricing and coal equities in 2013, Boyce noted that demand continues to grow in the United States and around the world and fundamentals are expected to further improve. The United States is experiencing a sharp recovery in coal demand, with coal-fueled generation rising to 43 percent of electricity generation compared with a low of 31 percent two years ago. Global metallurgical and thermal coal demand is expected to set another record in 2014 as both emerging and developed nations increase consumption.

"The world continues to turn to coal as the fastest-growing major fuel, and coal is the energy source projected to surpass oil in coming years as the largest global fuel," said Boyce. "Peabody's operational excellence, cost reduction and capital discipline distinguishes the company, while our superior people and portfolio provide significant upside as markets improve."

Boyce said coal demand continues to grow, and fundamentals are expected to improve throughout the year. Highlights from 2013 include:
  • A global incidence rate of 1.87 per 200,000 work hours, equaling a record first set in 2012;
  • Cost-containment efforts that led to $340 million in savings;
  • A 67 percent reduction in capital expenditures;
  • Operating cash flows in excess of $700 million that allowed Peabody to repay more than $200 million in debt; and
  • More than 25 awards for safety, financial performance, environmental excellence and social responsibility.

Behind these accomplishments is a culture of process improvement, Boyce said. In Australia, Peabody converted multiple mines from contractor to company control and upgraded PCI mines acquired in 2011. These actions and others drove productivity improvement of 27 percent and enabled the company to reduce per ton operating costs to levels not seen since 2010. In the United States, Peabody operated the world's most productive coal mine – North Antelope Rochelle – and increased overall mine productivity 9 percent, achieving the lowest U.S. operating costs per ton in two years.

He added that Peabody's global platform is well-capitalized, with low sustaining needs and top-tier assets that are targeted at the high-growth Pacific Rim region and the lowest cost U.S. coal regions. He cited the company's status as the largest producer in the low-cost Southern Powder River Basin and that Peabody Energy is a leading seaborne supplier of metallurgical and low-vol PCI coals. The company's sizable reserves, strong project pipeline and trading and brokerage platform support growth as markets strengthen.  

"Today, the need for energy access from coal has never been greater," said Boyce.  "Half the world's population lacks access to adequate electricity – and coal is the only sustainable fuel with the large scale and low cost to meet the need."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%
YHOO $36.00 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs