- Peabody Energy should be benefitting from soaring coal prices. However, surprisingly it's not.
- For Q1 2022, Peabody should be reporting strong free cash flows, yet it's reported losses.
- Peabody Energy should be paying out a special dividend right now. Instead, it just diluted shareholders to cover a margin call.
- All that being said, I believe that paying approximately 2x to 3x free cash flows is cheap enough for a diversified portfolio of energy stocks.
- As always, happy to discuss my thesis further.
For further details see:
Peabody Energy: After A Bad Q1, Paying 3x FCF Is Probably Cheap Enough