Peabody cuts Centurion's coal sales forecast after a difficult October
The new upper end is below the minimum expected in September. Lower capital spending partly reflects work pushed into the future.
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Peabody Energy Corporation
Peabody operates coal mines serving steelmakers and power producers. Its results depend on coal prices, production costs, transport and the reliability of individual mines.
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Centurion's difficult production ramp is limiting the contribution from Peabody's steelmaking-coal investment. The fourth-quarter sales reduction follows a third quarter that met the mine's earlier forecast.
Operating recovery and cash
| Measure | Third quarter | Second quarter |
|---|---|---|
| Revenue | $1,096.3 | $1,003.2 |
| Consolidated adjusted EBITDA | $97.5 | $24.0 |
| Quarter-end cash and cash equivalents | $434.3 | $526.3 |
All four operating segments reported positive adjusted EBITDA in the third quarter. The loss attributable to common stockholders was $32.8 million, and operating cash flow including discontinued operations was negative $1.4 million.
Centurion and deferred development
Fourth-quarter Centurion sales are now forecast at 300,000 to 500,000 US short tons, compared with at least 1 million expected in September. Third-quarter sales were 580,000 short tons, within the earlier 500,000 to 700,000 range. October production was 45,000 short tons amid difficult geological conditions.
Annual capital-spending guidance fell to approximately $300 million from $340 million. About $30 million of the reduction is at Centurion, primarily from deferring Northern-panel development. The deferred work remains a future spending need. Peabody plans equipment modifications, including a change during the next longwall move, now expected in the third quarter of 2027.
Debt and available liquidity
At September 30, current debt had a $49.0 million carrying amount and noncurrent debt was $247.6 million. The separate $887 million liquidity figure includes credit availability. Restricted cash and collateral totaled $418.4 million, distinct from unrestricted cash.
During the third quarter, Peabody paid $58.1 million to repurchase notes with $38.9 million of face value. It expected the remaining $39.9 million of face value to be redeemed or converted in November with cash settlement.
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