Peabody Energy
Peabody Energy Headquarters Address
701 Market St.
St. Louis MO, United States 63101
(view in map)
About Peabody Energy
In a time in which people still get most of their power from coal-fired plants, Peabody Energy is king. The world's largest private-sector coal producer, Peabody operates some 30 mines and processing facilities in the US and Australia. It sells about 251 million tons of coal annually and maintains more than 9 billion tons in reserve. US customers, primarily power companies, account for most of Peabody's sales, and its coal fuels almost 50% of US power. Its operations include coal trading and brokering, coalbed methane production, transportation-related services, and development of coal-based generating plants. The company has also begun investing in carbon capture technology.
Operations
The company operates three mining segments (Western US Mining, Midwestern US Mining, and Australian Mining) and a Trading and Brokerage segment. A fifth segment, Corporate and Other, includes mining and export/transportation joint ventures, energy-related commercial activities as well as the management of coal reserve and real estate holdings.
Sales and Marketing
The bulk of Peabody's sales are to US electricity generating plants. The remaining sales are in Australia and to US manufacturing facilities. The company also has a 48% stake in a Venezuelan joint venture which produces thermal coal for export..
Financial Analysis
Peaboby saw it revenues grow by 18% in 2011 thanks to a 28% increase in the Australian mining segment due to higher prices and due to increased pricing for seaborne metallurgical and thermal coal thanks to stronger global coal demand. Other factors included coal supply constraints resulting from weather impacts in early 2011, a 7% increase in Western US Mining segment sales due to increase in volumes and the weighted average sales price, and increased shipments in the Powder River Basin region due to increased customer demand, and a 12% increase in Midwestern US Mining sales due to higher sales prices and contracts. It also saw a 63% increase in its Trading and Brokerage results due to increased in export volumes, and higher coal market pricing on brokerage activity.
Net income declined by almost 24%, primarily due to the increase in depreciation, depletion and amortization expenses stemming from the company's acquisition of Macarthur Coal (Australia).
Strategy
Peabody focuses on organic growth projects in Australia and the US, including expanding and extending existing mines and developing new ones. It is also working to grow its global Trading and Brokerage platform, including sourcing coal from third-parties via purchases and joint venture arrangements and expanding its presence in the Asia-Pacific region through strategic partnerships and joint ventures.
In 2011 Peabody joined with the world's largest steel producer, ArcelorMittal, to make an offer to jointly acquire Macarthur Coal and its extensive holdings in Australia's Bowen Basin (270 million tons of coal reserves and mines that produced about 4 million metric tons in 2010). Under terms of the deal, Peabody was to hold a 60% stake in Macarthur and ArcelorMittal 40%. Their joint venture was called PEAMCoal. Macarthur's largest shareholder, China-based Citic Resources, which owned 25%, agreed to an offer of A$16 a share. Shortly after PEAMCoal took a majority stake in Macarthur, ArcelorMittal backed out of the deal and sold its stake in the joint venture back to Peabody. Through its subsidiary PEAMCOAL, Peabody acquired full control of Macarthur at a cost of about $5 billion.
Ownership
In 2012 BlackRock, Inc. owned 11% of Peabody, T. Rowe Proce Associates, 9.5%.
Company Background
Peabody was founded in 1883 as a coal supplier but began coal mining in earnest in 1926.
Who We AreOperations
The company operates three mining segments (Western US Mining, Midwestern US Mining, and Australian Mining) and a Trading and Brokerage segment. A fifth segment, Corporate and Other, includes mining and export/transportation joint ventures, energy-related commercial activities as well as the management of coal reserve and real estate holdings.
Sales and Marketing
The bulk of Peabody's sales are to US electricity generating plants. The remaining sales are in Australia and to US manufacturing facilities. The company also has a 48% stake in a Venezuelan joint venture which produces thermal coal for export..
Financial Analysis
Peaboby saw it revenues grow by 18% in 2011 thanks to a 28% increase in the Australian mining segment due to higher prices and due to increased pricing for seaborne metallurgical and thermal coal thanks to stronger global coal demand. Other factors included coal supply constraints resulting from weather impacts in early 2011, a 7% increase in Western US Mining segment sales due to increase in volumes and the weighted average sales price, and increased shipments in the Powder River Basin region due to increased customer demand, and a 12% increase in Midwestern US Mining sales due to higher sales prices and contracts. It also saw a 63% increase in its Trading and Brokerage results due to increased in export volumes, and higher coal market pricing on brokerage activity.
Net income declined by almost 24%, primarily due to the increase in depreciation, depletion and amortization expenses stemming from the company's acquisition of Macarthur Coal (Australia).
Strategy
Peabody focuses on organic growth projects in Australia and the US, including expanding and extending existing mines and developing new ones. It is also working to grow its global Trading and Brokerage platform, including sourcing coal from third-parties via purchases and joint venture arrangements and expanding its presence in the Asia-Pacific region through strategic partnerships and joint ventures.
In 2011 Peabody joined with the world's largest steel producer, ArcelorMittal, to make an offer to jointly acquire Macarthur Coal and its extensive holdings in Australia's Bowen Basin (270 million tons of coal reserves and mines that produced about 4 million metric tons in 2010). Under terms of the deal, Peabody was to hold a 60% stake in Macarthur and ArcelorMittal 40%. Their joint venture was called PEAMCoal. Macarthur's largest shareholder, China-based Citic Resources, which owned 25%, agreed to an offer of A$16 a share. Shortly after PEAMCoal took a majority stake in Macarthur, ArcelorMittal backed out of the deal and sold its stake in the joint venture back to Peabody. Through its subsidiary PEAMCOAL, Peabody acquired full control of Macarthur at a cost of about $5 billion.
Ownership
In 2012 BlackRock, Inc. owned 11% of Peabody, T. Rowe Proce Associates, 9.5%.
Company Background
Peabody was founded in 1883 as a coal supplier but began coal mining in earnest in 1926.
All About Peabody
Peabody is a leading coal producer serving customers in more than 25 countries on six continents. We provide essential products to fuel baseload electricity for emerging and developed countries and create the steel needed to build foundational infrastructure. Our commitment to sustainability underpins our activities today and helps to shape our strategy for the future.
Peabody is guided by seven core values, safety, customer focus, leadership, people, excellence, integrity and sustainability. For further information, visit PeabodyEnergy.com.
Our StrategyPeabody is a leading coal producer serving customers in more than 25 countries on six continents. We provide essential products to fuel baseload electricity for emerging and developed countries and create the steel needed to build foundational infrastructure. Our commitment to sustainability underpins our activities today and helps to shape our strategy for the future.
Peabody is guided by seven core values, safety, customer focus, leadership, people, excellence, integrity and sustainability. For further information, visit PeabodyEnergy.com.
OUR STRATEGY
A leading position in U.S. Powder River and Illinois basins
Seaborne thermal and metallurgical coal platform to capture higher-growth Asian demand centers
- Operational Excellence
Drive safety, productivity, cost efficiency and reclamation performance.
- Focused Engagement
Support our license to operate and advocate favorable energy policy and advances in generation technology including HELE and CCUS.
- Financial Strength
Maintain target capital structure that enables sustainable performance through all market cycles and maximize shareholder returns through disciplined capital allocation.
- Best People
Attract and retain the best people, develop their full potential and align their talents to create competitive advantage.
- Portfolio Management
Continually enhance the value of our portfolio emphasizing high-quality assets targeting the most attractive demand centers.
Our CultureA leading position in U.S. Powder River and Illinois basins
Seaborne thermal and metallurgical coal platform to capture higher-growth Asian demand centers
- Operational Excellence
Drive safety, productivity, cost efficiency and reclamation performance.
- Focused Engagement
Support our license to operate and advocate favorable energy policy and advances in generation technology including HELE and CCUS.
- Financial Strength
Maintain target capital structure that enables sustainable performance through all market cycles and maximize shareholder returns through disciplined capital allocation.
- Best People
Attract and retain the best people, develop their full potential and align their talents to create competitive advantage.
- Portfolio Management
Continually enhance the value of our portfolio emphasizing high-quality assets targeting the most attractive demand centers.
Be Challenged. Live Safety. Team Up with the Best.
- Safe Working Environment
A strong safety culture with the tools and resources that encourage safe behaviors and practices at work and at home; every employee should return home safely every day
- Relationships with Coworkers
A supportive, inclusive environment where team members are collaborative, knowledgeable, engaged and know that they can count on one another
- Challenging Work
Challenging and meaningful work in an industry that responsibly serves multiple stakeholders including the communities in which we operate
- Rewarding Performance
Clear goals and expectations, feedback on performance and rewards that include a competitive salary, benefits and results-based incentives
- Leadership
Leaders who live the values, offer open and transparent communication and seek and respond to employee feedback
- Work / Life Balance
A trusting environment that allows employees flexibility to manage their work / life demands
- Development and Advancement
Formal development that includes mentoring and leadership programs, experienced-based learning and opportunities for career advancement
ESG- Safe Working Environment
A strong safety culture with the tools and resources that encourage safe behaviors and practices at work and at home; every employee should return home safely every day
- Relationships with Coworkers
A supportive, inclusive environment where team members are collaborative, knowledgeable, engaged and know that they can count on one another
- Challenging Work
Challenging and meaningful work in an industry that responsibly serves multiple stakeholders including the communities in which we operate
- Rewarding Performance
Clear goals and expectations, feedback on performance and rewards that include a competitive salary, benefits and results-based incentives
- Leadership
Leaders who live the values, offer open and transparent communication and seek and respond to employee feedback
- Work / Life Balance
A trusting environment that allows employees flexibility to manage their work / life demands
- Development and Advancement
Formal development that includes mentoring and leadership programs, experienced-based learning and opportunities for career advancement
We recognize that the long-term success of our company goes beyond the income statement and balance sheet.
We take a holistic approach to ESG to deliver results and generate value across the cycles. Our approach is centered on three core beliefs, that we should:
- Minimize the environmental footprint of our operations and products;
- Provide substantial benefits to society; and
- Ensure our business strategies and activities best serve the interests of our stakeholders.
Click here to view Peabody's 2018 Environmental, Social and Governance Report
We take a holistic approach to ESG to deliver results and generate value across the cycles. Our approach is centered on three core beliefs, that we should:
- Minimize the environmental footprint of our operations and products;
- Provide substantial benefits to society; and
- Ensure our business strategies and activities best serve the interests of our stakeholders.
Click here to view Peabody's 2018 Environmental, Social and Governance Report
Number of Employees in Peabody Energy
5,001 to 10,000
Peabody Energy Revenue
$5B to $10B (USD)