BTU - Peabody Energy unveils new shareholder return program

2023-04-17 08:19:16 ET

Peabody Energy ( NYSE: BTU ) +8.8% pre-market Monday after saying it approved a new shareholder return framework including a stock buyback plan, a fixed quarterly cash dividend and a variable quarterly cash dividend component.

The board also approved a new share repurchase program authorizing repurchases of up to $1B of common stock.

Peabody ( BTU ) said it plans to return to shareholders at least 65% of annual available free cash flow retroactive to January 1, and expects to launch the shareholder return program in Q2 after reporting Q1 earnings.

The company anticipates the shareholder return program will include a regular quarterly cash dividend of $0.075/share.

Peabody ( BTU ) also amended its surety agreement to limit collateral exposure and remove other restrictions.

Peabody Energy ( BTU ) boasts a massive cash balance, some of which will go into capital returns after dealing with the reclamation surety agreement, BeanKounter Capital writes in an analysis posted recently on Seeking Alpha .

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