BTU - Peabody Energy: A Weak Q1 But An Attractive Valuation Using Conservative Assumptions

2024-05-05 07:36:47 ET

Summary

• The company reported a weaker Q1, following some operational issues.
• The seaborne metallurgical segment was the weakest segment during the first quarter, due to some one-off issues and unfavorable pricing.
• Peabody has maintained its annual guidance for 2024 and expects the operational issues to now be in the rear view.

Overview

Peabody Energy ( BTU ) is a U.S. coal mining company, with production of thermal coal and metallurgical ("met") coal. The company operates four different business segments, where most of the adjusted EBITDA normally comes from the seaborne thermal and seaborne met segments, even if the company has a lot of lower-margin production in the Power River Basin....

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