Matt Water's questions to Peabody Energy Corp (BTU) leadership • Q4 2024
Question
Matt Water followed up on Shoal Creek, asking for clarification on whether freight differentials were the main cause of lower realizations. He also requested color on 2025 realization expectations for semi-soft and PCI coal, inquired about the company's active pursuit of supplying power to data centers, and asked about the capital expenditure plans for the acquired Anglo assets.
Answer
CMO Malcolm Roberts confirmed that Shoal Creek's lower realizations are due to both coal quality and the freight differential to Asia. He noted the semi-soft market is weak, while premium low-vol PCI is in short supply and realizing strong prices. President and CEO Jim Grech stated that while inbound interest from PE firms regarding data center power supply has noticeably increased, nothing is imminent. CFO Mark Spurbeck confirmed the plan for elevated initial CapEx at the Anglo assets for items like a new longwall before it drops to a sustainable maintenance level.