BTU

Peabody Energy Corp

Industrial/Transportation


Presented:08/04/2017
Price:$28.22
Cap:$3.85B
Current Price:$25.42
Cap:$3.20B

Presented

Date08/04/2017
Price$28.22
Market Cap$3.85B
Ent Value$4.46B
P/E RatioN/A
Book Value$3.54
Div Yield0%
Shares O/S136.34M
Ave Daily Vol1,231,711
Short IntN/A

Current

Price$25.42
Market Cap$3.20B
Peabody Energy Corp. engages in the business of coal mining. It operates through the following segments: Powder River Basin Mining; Midwestern U.S. Mining; Western U.S. Mining; Australian Metallurgical Mining; Australian Thermal Mining; and Trading & Brokerage. The Powder River Basin Mining segment operations consist of its mines in Wyoming. The Midwestern U.S. Mining segment mines mine bituminous coal deposits. The Western U.S. Mining segment mines both bituminous and sub-bituminous coal deposits. The Australian Metallurgical Mining segment engages in the export of coal of thermal grade. The Australian Thermal Mining segment mines coal of metallurgical grade. The Trading & Brokerage segment engages in the direct and brokered trading of coal and freight related contracts through the trading and business offices. The company was founded by Francis S. Peabody in 1883 and is headquartered in St. Louis, MO.

Publicly traded companies mentioned herein: Arch Coal Inc (ARCH), Peabody Energy Corp (BTU)

Highlights

With shares of Peabody Energy (BTU) trading at $29, the presenter is long and sees upside to the low- to mid-$30s as the US coal market remains stable and global coal prices support its FCF. While there are supply issues, and EBITDA and FCF will likely moderate in 2018 as a result of a slow, structural decline, BTU is a leader on the cost curve and there is optionality around supply issues and M&A.

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Idea Discussion

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