CEIX - Peabody after the call -- business better than ever stock up 10% in a down market

Peabody (NYSE:BTU) reported a blowout quarter before the bell and guided to meaningfully improved profitability in 2022. The fundamentals of the business look better-than-ever, though the capital structure is a major headwind for shareholders:  Capital allocation - would like to see absolute debt balances fall to ~$500m, which management considers mid-cycle EBITDA; the existing credit agreement precludes management from paying dividends or buying back stock before 2024; the at-the-money equity issuance tool will be used "judiciously" going forward. 2023 pricing - with PRB pricing guided to $12.40/t in 2022, Management focused the market on mid-20s spot pricing for 2023, and noted that Asian buyers are inquiring about PRB tons, though logistics (rail to Houston) creates a challenging bottleneck despite attractive netbacks. Logistics - in the US, BTU is seeing improved rail logistics; covid-related absenteeism has also improving. With absolute debt targets within reach, given almost $1b in cash on balance

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Peabody after the call -- business better than ever, stock up 10% in a down market