BTU - Earnings call transcript Q4 2019 | Peabody Energy Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Peabody's Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode.

Following today's presentation instructions will be given for the question and answer session. [Operator Instructions].

As a reminder, today's call is being recorded.

to conference like to I'd now, turn over the Mr. And and Head of Svec, Communications. Investor Vic Relations Please go ahead sir.

Vic Svec

for and you, everyone. for earnings Thanks Thank very fourth Okay. Jack, much joining and in full year. the good morning, the quarter BTU's

Investor President not us well Kellow, know all CFO, Spurbeck. of have Interim most believe of CEO, I Glenn you And so, also we Relations, of and with Mark today, Julie as Gates. as you Director if

CFO. to We key this do at position Mark welcome Interim

find extensive industry. finance You'll has along with and he in accounting that experience the mining

upcoming You'll and him also be on seeing shows. the road at conferences road

As available we'll on remarks, is reference that's at website presentation peabodyenergy.com. and our customary our during a formal supplemental

I the do as non-GAAP we refer Slide we risk the do Now two would that encourage GAAP measures here, both our the referenced note deck, our those to of and SEC. statement earnings consider we release. measures, with as of our in with factors find to filings the also our information. public that you use on reconciliation you'll well you along We presentation, on forward-looking

with Glenn. over I'll now to And turn call that, the

Glenn Kellow

fourth and number were costs everyone. morning, Vic, delivered operating and significant. concluded Peabody complex lower both Thanks driven performance of by across strong and good segments that multiple quarter a negotiations

year in During strong the the deterioration equity but debt both full position. completed with a year, liquidity Peabody saw and the advanced Financially, initiatives backdrop, against the cash ultimately difficult prices. and we

stakeholders. process synergies the Venture Arch substantial with progressed for Within Joint the multiple to of portfolio, for the regulatory PRB/Colorado proposed we benefit unlock

advance and mines. performance rail extension challenging margins very activities, Goonyella both a environmental with to Its shipments note have opposition. approval at with our North Our seaborne at record a attractive to open-cut regulatory thermal year signed business also mines that their pleasing is Wambo finished of good Wilpinjong again

met, significant the the reductions drive mine. holding costs Goonyella seaborne North at In team in

value the and the engagement and to with and access parallel commercial accelerating cash Panels. process PMI proceeding in maximizing develop with continued Southern and flows to with now are We approach our

improved saw ground. in operating encouraging we mines performance operations the and our being on structure enhanced lower the have organizational efficiencies fourth an and of was our We level, model to quarter from several been made transition, At progress there many is the increase costs. and

environmental on mining Mid-cap front, governance as diversity. XXXX to institutional in Finally, company prestigious ESG named the investor employment received also with excellence, ESG metals entire and safety, in sector recognition the well in as honors was leadership, for we rankings. and Best metrics, for The Small Companies

you for detail. I'll in year. the XXXX come a back to outlook a this quick is here summary more few on But in

We coal expenditures volumes are capital holding targeting sharply costs met Goonyella decrease costs, North lower reduced in and and XXXX. improved SG&A,

the challenges met experiencing partly $XXX of decrease million needed closing that with be believe Mines. will pricing all XXXX I Kayenta volumes, and lower U.S. thermal we across offset in the action. to Millennium contributions the Overall, are will benefits Those markets, lower current meaningful and be some from

shareholder have whom Algaze years. largest agreement to of Equity addition is Miller as Partner, for members several Also, of reached Manager, From an new Dave Samantha both Board. are a worked number Peabody Peabody and includes morning, just Portfolio that this Elliott, Elliott a of with and announced the the we've

Yeates Coal is tenured Darren a Industry Executive.

to capital add Elliot four involvement to structure. plus and selected. operations mining experience jointly had director during agreed Peabody's a be We with in years a the relationship constructive Peabody also of extensive fourth

objective our shareholder in value. aligned to forward look And are to create we this relationship. We ongoing

highlights. financial overview, to With Mark ask now that I'll the cover

Mark Spurbeck

thank two background, here the of has be last the meeting industry like years. XX been with by smooth everyone. in to experience today. Good look and forward I to many By future. about of Peabody I to and mining the transition, for way have years you Amy I morning, I'm would pleased of

slide business four. revenues volume to and starting $X.XX and total right year get seaboard Fourth reduced Let's from billion, quarter pricing. lower metallurgical on the down prior XX%

total the million the in lower prior and the contract quarter million versus the $XXX as fourth of Mine, due year closure amortization well in volumes. $XXX DD&A as expense Kayenta to

of Other charges income the in open-cut non-cash mine with gain include volumes Mexico, largely given lower New of Colorado. in statement well formation and production note Midwest related an in the in from million venture, announced unallocated reserves items a to of million as retirements, impairment the joint Wambo associated $XXX changes $XX United life plant as assumptions

and development, million related Goonyella on changes $XX given QX foreshadow loss rates. liabilities care million at mark-to-market discount North the post write-off in which primarily retirement A panel at to and health we $XX prior

EBITDA in customer million million for as settlements, lower due well primarily to the year. as favorable million quarter Adjusted totaled environments. to the $XX compared million EBITDA severance Adjusted in fourth $XX includes $XXX was It in $XXX prior charges. pricing seaborne

$XX also EBITDA about Arch. to are venture Adjusted the million transaction costs. with in joint Those proposed related includes

of loss net we income taxes of of accelerated continuing These in items million $XXX and $X.XX. of the loss number the a share resulted operations, activities year. You'll per and late see, in diluted a

XXXX EBITDA revenues with operations $XXX results, $XXX totaled adjusted the briefly continuing of Touching of from on taxes from [ph]. million XX% net year, year loss declined income along million full prior

segments. performance. across quarter operating improvements results of offering the five four into were bolstered by Digging cost our Fourth solid

cost met thermal, the the year. versus midwestern as per In segment well ton prior as seaborne reduce fact, seaborne by XX% and

Export shift tons came end of X.X year. Within $XX.XX thermal of the of last volumes were per million short low with We XX.X strong million at customer range, million segment, seaborne thermal tons year. in at price domestic export had average quarter ton. volume fourth of the the realized X delivered our remained ton at an highest the

supported cost performance margins EBITDA totaled from XX%, thermal underground. seaborne the strong Adjusted for by Wambo

Wilpinjong In and XXXX. in addition, the record railings

for the both That and for the in production saw year. significant improvements Moorvale. volumes Moving met Coppabella resulted the to production quarterly segment, we highest

in Since we reported, great also quarter by Fourth to Goonyella have strides costs half North September successfully excluding made quarters. cost reduced XX% last costs performance. declined to North compared we about costs per Goonyella compared previous segment holding year to-date The ton.

For the workforce millions totaled fourth the following reduction of late in $XX quarter, spending October.

to to are our We take quarterly reduce run continuing rate. further steps

our U.S. million performed segment finally, $XXX year. And adjusted $XXX prior million the during well generating to thermal compared of the quarter, in EBITDA

the PRB XX% Solid earning cost quarter. segment of led performance margins to the in

around you'll Grove Midwest, our and Somerville. centering we down our previously the mines, while of Hills, In the core Cottage that closure winding portfolio announced have and recall are Wildcat

favorable the remaining costs, negotiations income. from from owners operations. benefit in the previously improved we the also of $XX which concluded higher in by Peabody This has Mine, resulted as resulted more million power with in Kayenta plant productivity the and mix served

also XXXX. to a been with achieved The in XXXX the favorable customer million $XX PRB million attributed providing incremental income, through company settlement would have that $XX

cash financial five, year its with would cash $XXX and slide and approach the emphasize we of ended remains On million committed maintaining of long Fee liquidity to and strong financial equivalents I standing billion. value $X.XX strength.

nearly commitment, As this part quarter. by of reduce fourth million in the $XX we'll debt

at just XXXX. $X.X total liabilities times have adjusted Net gross we EBITDA leverage seven stands since mid billion point X.X some at reduced fact, leverage at XXXX times. by In

ability we year, and than to XX% XXXX. to That's of with million a nearly that totaled $XXX is testament changing in guidance our adapt our the conditions. lower out set at CapEx to beginning the

discuss and will for that, XXXX. With outlook Glenn our targets

Glenn Kellow

Mark. you, Thank

Turning seaborne XXXX. Wambo several our begin production now activities late to Within in to key slide underlying from share of United six. in we operating We've JV outlined each expect areas. thermal, the

life planning of mine multiple optimize the to intended ratios, quality and is surface JV the enhance mine offers and The extend improved to decades. the strip opportunity

we in Glencore expect temporary cutover ramp to XXXX JV as the slightly mine As operations up we elevation and structure, production the some costs to of and lower work progresses. transition the would

Also premier life Australia Wilpinjong mentioned a South New offers the attractive thermal in returns. mines extends of which earlier of and project, I coal the one Wales. extension the

are important seaborne costs. CapEx operating total for improve $XXX In to projects seaborne and combined performance to taking steps million and a expected XXXX. we're That our our met, the in reducing are to thermal strategy components to

mines, the Coppabella the sort our possible is effective at and working quarter. cost fourth we in ratios mines are these our high moving on through improved the Moorvale most of manner. demonstrated And already overburden in focus and We've

zones the active reduce Our working shorter narrow in mining to and current significantly quarter panels footprint mitigate third a targeted to people Metropolitan through to Mine mine and is project the logistics. streamline of completion product

discussions substantial million around to At an commitments. we've for in $XX lower North year actions about million $XX costs. the [Indiscernible] additional or Goonyella, we're and take-or-pay now annum per taken costs Holding

in partners, interest as commercial accelerate process maximize to also from well process to This reduce commencing We're strategic and response cash costs. other producers. flows now as comes expressions of substantial a potential value,

or Sixth partner panel. running structure financial that complete commercial is of tandem in asset. the range Commercial a North a strategic outcomes from The development current venture to to the plans, joint process sale

At this Queensland point, B. of discussions and Zone continuing with reentry Mine Inspectorate for we the are the ventilation

we quarter, be the no to Zone As And will approved would committed board. be that is course, as capital major with project any incremental of B last until explored. need pledge project by

these determine will of We we points. timing and appropriate the capital level expenditures as if reach any,

the thermal, decision PRP/ the Colorado of Moving anticipating formation with first Arch. in highly from U.S. regarding proposed FTC the we're JV the synergistic to quarter

hearings. Peabody address white FTC and have participated have Since teams gather functional to six compiled five broad to cross requests extensive staff papers and presentations quality deployed in full more documents, process, FTC companies investigational Through million X.X had extended alone produced than pages and that June, this questions. diligently both worked data, analyze of the

more The dataset total entire that terabytes library was the the created Congress. to FTC than delivered and of

with engaged currently for JV. the also proposed We integration permitted with Arch planning

been the to both a for believe continue multiple by extraordinary and companies, offers we synergies create to stakeholders. one This has and process endeavor value that potential substantial tremendous

discuss seven. operations from financial our elements the let's on and Moving portfolio, key slide

Our our for liquidity optionality cash substantial we as and execution. allow financial levels strong balances evaluate

quarter now reduction pillar of factors part our about debt but be only maintain contingent $XX In financial to just we've specific debt pace well. we reduced strength, of second quantum the not million, of by XXXX, are financial last approach, debt focusing will commitment and and company's activities. the on on the industry, reduction ultimate their of the As as

portfolio Our means, and industry in expenditures, improvement response, modified our conditions mantra in deliver our capital given the as reduce the sharply activities. portfolio. within operating the the continuing has is company changes we entered is In XXXX

steps board all and repurchase intend long our addition, We of believe stock these stakeholders, decision current for to do benefit we our shareholders. the term a the as including conditions. has enabling on In creation expect, dividends, you sustain would to not value essential to made

and XXXX eight, the Against targeting backdrop the quarter. the discuss of well our as XXXX guidance first macro SG&A related I'd lower slide few to conditions, for to as a like current settlements XXXX. we're year, for to Turning industry expectations

million of a expected $XXX is in number, portion annualized million which is is I'll guidance. of you $XX to an included SG&A which cost annualized be that segment approximately half savings, reflects and on that remind already. our achieved we've improvements in

The other of be course this will implemented through the year. half

actual Capital XXXX $XXX XXXX lower expenses $XXX for million, XX% CapEx be expenditures extension related to targets. I than projected seaborne and lower XXXX life includes substantially are thermal earlier. million to approximately XXXX the projects guidance mentioned original

we're the operating Within weighted XXXX. second met we'll segments, coal X.X million to to increased be projected our are met and Met volumes of tons expecting costs. reduce and approximately half Volumes seaborne be

position contract coal fully approximately we XX XXXX where strength of million PRB U.S. Our priced. tons had is a

flexibility should have warrant. We the produce to more, demand

price, to enter we this that percent in I'm to again typical, position pleased a year. is to given any replicate XX plus be As and

other In former closure for the consolidate other Thermal beyond. purpose and Mine,, announced XXXX of U.S. Midwestern reporting in and the mines addition, Kayenta Peabody XXXX, following in Western the Midwest into of segments will and the segment in

$XX are reflect have effects U.S. Committed to be coal strength and volumes to tons Overall, costs impacted XXXX to closures to in million tax, XXXX. as excise and the by disappointingly costs of their impact of million expected will approximately on of expected higher these contract which XX an book. the revert the relative federal combined rates thermal historical

the expect we year, adjusted quarter year. the now of quarter to would lower weighted items second As relative to first in our half be earnings quarter. first we profile to specific the $XXX the look EBITDA results of million to discuss expect to full the we of XXXX. at also Overall, the fourth several like I'd

in met in non-recurring seaborne to realized approximately as the million $XX The costs. deltas in million million $XX settlement as quarter, [Indiscernible] well fourth $XX impacts, income to pricing high

for moves Mine. our long work We the on Mine are haul quarter Creek, mine ton costs to first at impact of at significantly an extended sequencing expecting $XX system guidance of met due be the at to full Moorvale Metropolitan above well the the preparation Shoal per year as as conveyor

is project to value motion overall build future a In to and the outages mines build better of XX,XXX capacities, upgrades work conveyor to Shoal belt of Creek capabilities match-up mainline has improved of North The new regard been and includes system shoot part production feet main load and handle lines reliability, structure, our system. our the increased engineered, capacity.

conjunction, outages life. in year, for which expect to several XX In extended be the a and requires while we years the minimum have week half an XX will will the will the have downtime, we project infrastructure, deployed capital first some the new of to

the improvements operational results, throughout continue I'd indicative reiterate move of we not rate their take like to questions, to Before we first expected off year. are the quarter run capabilities, to will believe that

a brief summary changing an a fast in year environment. That's active of

discussion, Operator? for call further now turn I'd to questions. like over For the

Operator

We Dudas Michael with Vertical will Instructions] begin Research. with [Operator

Michael Dudas

Mark. morning and welcome, Good everybody

Mark Spurbeck

Thank you.

Michael Dudas

over question bit how XXXX? a quickly regulatory or back that issues few decisions Maybe a to on First more that is all discussions sense and this on -- line, next getting given bit you track, into can quarters going and on, and Goonyella. this more elaborate dual maybe evolve in North on making little the them decision you're the

Glenn Kellow

was Michael. costs And of the as last Mine. one, holding indicated North to we Thanks, quarter job Goonyella reduce

continue I reduce, of about for the dual quarter, run think, the in Zone billion You've Southern seen we approach, by the discussions project -- and but where month. which but ultimate of $X in comes reentry a significantly in be that the The not now around of development fourth down at track a reventilation panels. that still QMI point fact determining to and we're to those advance about with B of the rate to

that on active in strategic joint course of board had a range around And to was North to Peabody, partner at could and would through Australia, into through and best Over participating Goonyella. asset. of to XXXX. potential It XXX% within be able number interest the three that months, last quite around the further I I'll Goonyella through a operated the looking to sale capture we've mine remind expect taking entering North only it is activity. partner, work And venture. a process portfolio, structured the mine you, the provide thought a updates a outright of inquiries a we from and

Michael Dus

provided Fair amount an enough. my And the be would U.S. regarding the on follow-up PRB. That's impressive of to terabytes government. you

that a you So encouraging and quarter anticipate -- -- and decision. first it's maybe

hit of a how ground to start you you how show of talking a the Assuming kind do beginning the like quickly of and opportunities some decision generate had guys positive - -- anticipate been or lot seems you've have the and see can the you of to JV? running guys since about it that

Glenn Kellow

reinforces of between the is And thinking and and region. the focused accelerate would ability combination have assets within in that new the activities the synergies I we between exists think conducted the we've mentioned some the that integration that would of I of addition that Peabody of that undertaking combination to some that -- Arch. indicate. work the we have the confidence to Yes. I that that I we type closure think that, planning say in the were we on

then we're event think able we decision quickly. of respond quite I move continuing FTC, So positive we're on would certainly on close into to a first the for that, to preparing the focused to but in

Operator

come Capital next BMO our Gagliano will and David We'll now move Markets. from to question that with

David Gagliano

covered a of question. couple going ones. to press Hi. try in today. Obviously, hit the releases for key my and I'm Thanks lot taking

sustaining million terms $XXX million, CapEx seaborne for of about if about was extension correctly, the I $XXX then, flagged XXXX, in the Just CapEx you remember million. $XXX and obviously, its projects,

I to I think. series think $XXX including life a originally, extension close that XXXX million, to of seaborne projects going CapEx was bring mine were there those projects,

So on in can expectations the spending XXXX? for of more what's you detail provide changed terms just

Mark Spurbeck

maybe changing at and Dave. but the a web CapEx extension -- and of the extension million. that's At little then Yes, then ability looking for conditions. $X looking growth end joint we're historically, as thermal the that's the it's open-cut project. we've the the seaborne $XXX And in capital And been sure, for platform capital of $XX far bit ton, as so Well, the really the million million, Mark. It's sustaining company's to a kind and and about to adapt million of $XX the a at $XXX Australia lower low. testament venture

closure less also the mentioned, mines. with And mines portfolio do some a have the with overall, smaller of of I'd we

So that though, as number leaner the that manage you of continue down times company in kind to number can see continues, CapEx

David Gagliano

then the three I Okay. of The costs, here. just kind all, first volumes. very question PRB, part impressive of a And switching cash gears, have considering especially

So, behind the part the of And other the versus what part, the in increase part. the costs XQ roughly for behind year? to clarify the drivers then XXXX North That's be main comment. cost X% the year, for that expect North didn't first on you Goonyella the one shut is, Goonyella what results. what's just that down hear kind cash Can are you I costs and

remarks. last on Obviously more you Elliot. Can U.S. in view including they've three-part will Elliot board direction strategic this a the We've on this little then briefly while, the of new two how question, commented for comment restructuring. And of Thanks. here detail the board been of the just representative those Head part alter now Peabody? prepared your a members on

Glenn Kellow

would the mentioned probably federal -- ton, the take activity. on holding I indicated about North but excise PRB Mark. I Goonyella, covers questions, tax get that of that of run thread that rate for a $X those On of that million So which majority increases, $X.XX we costs. the expect might but specifically Mark,

In volume addition run month $X that, to a costs. million rate a

addition for at to got In year. the million that, $XX we've take-or-pay

active numbers around around looking to that seek that to the mitigate last in are discussions indicated, that. costs We take-or-pay we'll be quarter

ago, structure Peabody and Elliott a with close with so in to they're going a introduction ton, $XX four course, within years additions we've be to them. not over familiar capital with team. the the Elliott, for the the They're team Elliott, of additions the great since of the relationship working our quite XXXX And metrics. really we think that Had board. a to board, been

Operator

question with And now we'll Levin Benchmark. Mark a from take

Mark Levin

much. Great. Thanks very

questions, two thinking to help the laid below you first, obviously, the XXXX. can line out interest So, cash flow I'm ARO cash maybe just of items, out not EBITDA anything trying bridging CapEx, in free true free you of when cash laid out sort a about that get mindful captured XXXX? need spending. to laid that's Is flow number to you expense, else to be you those items there in we we're

Mark Spurbeck

the Depending the price for But off on your your of numbers where number. you Thanks Yes, EBITDA. you're get Mark. EBITDA question. cash and come at, that

million, have will care $XXX We spends reclamation probably and million, CapEx about million $XX of about health retiree be million. cash $XX about [ph], of then $XXX interest

Glenn Kellow

cash last year sense And we that us a in again is a being year terms for push really quite from always the standpoint. talk taxes probably advantage in of this an

Mark Spurbeck

no XXXX. really a zero for really I Yes, mine tax there's that's expense. we right. We AMT have their credit offset net so from refunds, where mean, cash

Glenn Kellow

both an remind assets of from the our always in NOL substantial we and U.S. And position Australia. industries

Mark Levin

to David's ton. XXXX? a think And roughly, when CapEx sustainable a CapEx $XXX I that ago. about to to there and the XXXX? it. need you question in in Wilpinjong, you And finishing think second million dollar And going your that then I XXXX just and we're in Was additional on Wambo then maintenance Helpful. is all down into XXXX that Is maintenance comment will mentioned levels? Got just that be being any spent think back capital

Glenn Kellow

chipping budgeting gone We'd Having Mark expect, just maybe extensive I'd to like to through process. get on this.

we XXXX. will into there largely XXXX. it'll though, through spillover be think the XXXX. Wambo go bit in But will continue of So into extension JV done be project, The little to a Wilpinjong

that ramp-up I new as there -- project, that really be joint will venture. associated with that's So equipment

the incur So we'll extension activities to Wambo in still XXXX. continue see costs

levels, XXXX budgeting capital one And because reviewed. through extensively their we've their sustaining to we've which The gone as operators through to thing this though have Mark. process. this, feel the XXXX. work at but just different of during updated reason Put that we've on guidance got Obviously, no given through we for to something course point, during expected that's work be the

Mark Spurbeck

look We'll market at highlights. No, that on was conditions, projects the you but continue great. to and we'll depending all hit reassess

Operator

Terry we'll And a Deutsche Chris now, Bank. take from with question

Chris Terry

just start that update with Glenn And changes to was met over coal slide this without that coking -- My I coal time XX is that the is you it that last noticed Do question to Mark. from XXXX. hard of result in mines? back and on around range think Hi, the index, the get of XX% mix. to main a you was XX, just North I can XX% the expect to Thanks. XX% XX Goonyella?

Unidentified Company Representative

Chris. question. It's Hey, fair a

have just XX% coal, coking that a coal from for into as perspective actually, would hard whereas takes XX% XX% account So well. sales PCI to been our coking the realizations

benchmark to our hard for sales our So XX% coal expect blended the price. basis hard XX% hard coking we would would on entire realizations that similar to to coal still realize coking XX%. coal coking a on that Whereas of portfolio, across be

at gets all So benchmark price. about XX% about PCI of the as coal, the sales mix, on hard XX% hard of for those and coking our you XX% XXXX look coal to we are are which of sales met overall coking

Chris Terry

Okay.

separately together. So for now met it previously, Is realization it correct? you and PCI push got coal you and the

Unidentified Company Representative

exactly Yes. That's right.

trying Just simplify to things.

Glenn Kellow

as and to making feedback like as our you straightforward by approach as investors And worth Give of for goes hopefully, interest benefit guidance this of we time the analysts simplify year, some that new it's in that general, format. probably in have tried the things noting all possible. us

Chris Terry

for flow wondered was I one thing early from if the Okay. the finish on you mentioned that that capital. That makes bridge, cash wasn't working the only to just could just sense. And of comment on think up XXXX? just I Thanks. questions then

Mark Spurbeck

inventory CMJV, that Yes. help in Not significant XXXX, otherwise expecting There on but some nothing will capital. in was here sales movement working build our significant.

Glenn Kellow

other piece element asset from time is probably the time. And sales or around to

been have land management. active or tenement We around management

might to add or something the that mix be to So about think the in mix.

Operator

of next And Merrill Lynch question. America a has Matthew Bank with Fields

Matthew Fields

three Mark. Hi, just I everyone. have questions. Hey,

Your pricing short year? assuming right on XX of of of in guidance is now. we just -- assuming like seaborne Newcastle is Is line of over which thermal the ton, per is are the sort castle fluctuations with where in kind kind regardless that sort of price of right that's priced in sort

Mark Spurbeck

Yes, Matt.

the our and what really higher a that's I price number, now, more products. [ph] an sales time saw that's contract think right $XX last [ph] from that added the and because bit you on X, the quality attractive is API little we've down

Glenn Kellow

above problem on And where call also find a a is on Newcastle we bit to actually a basis basis, met the ton that's a or even that basis so short [ph]. you'll converts it XX which

Matthew Fields

bonds Thanks. All Okay. Which average the did repurchase price? at quarter? more you in right. And two what questions. then And

Mark Spurbeck

Yes. our the repurchase now maturity. capture reduce and we're bonds, Right commitment Consistent million with discount we've of nearest of on out able that and by levels, go the million, debt that XXXX, was better the leverage, to debt to good favoring XX $XX that. reduce

at [Indiscernible]. back bought we think them I

Matthew Fields

I'm sorry, million spent XXXX? you repurchasing $XX

Mark Spurbeck

correct. That's

Matthew Fields

approach guess, getting covenants transaction. of addressed to we're there about refi? any to Okay. lastly, the the to how XXXX. the that Is to the a consent to about sort going update JV in the affect a thinking And quarter bondholders or to plan you're for have on updates bonds to close your time how plan that get expected FTC where have appreciate then in I me, decision first

Mark Spurbeck

getting clearance the options and to FTC right. hopeful ventures, the and here on including refinance accommodate positive other potential some joint for very actions. reduction we you're in mentioned consents, Matt, decision cleared, the a focused what debt multiple also have We're Its the but you an XXX% quarter.

commercial not a solution. specifics expect, you'd practice on ahead comment of our As to

Operator

and the will next B. question, that Now, Lucas we're Riley, to come from FBR. moving with Pipes

Lucas Pipes

Hey, good quick ones. morning, everybody. Two

and thermal your side, the embedded both the For then met guidance Australian assumption cost dollar seaborne Australian what's in that? on

Mark Spurbeck

at it [ph]. XX have We

Lucas Pipes

when And Thank then you circle helpful. to Goonyella, of Zone B expect you. at North this place Very on would just the take back ventilation point? to

Glenn Kellow

Inspectorate. if we in it said were Mine we level it's itself we'd still indicated advance, process, activity, reventilation, to revitalization longer. area. time Those of wouldn't discussions appropriate and from until the And costs point, probably have certainty wouldn't a perhaps little for be Well, occur ongoing. engagement of it bit that that $XX reentry At a as -- are and reentry that around we that commence would some a million around three-month last Queensland

Operator

Now, we'll move that Blunden and to our Sachs. will Goldman come Karl from with next question,

Karl Blunden

time. Hi. good morning. Thanks for the

to liquidity like liquidity have? a do business target you interesting, a you'd smaller levels it have was that is Just going of on, minimum your in. getting lot assets group Could like question, the It's as focused a of over time. you the on comment

much debt cash this to interested, last of further reduce excess that So like quarter? you how could did use you

Mark Spurbeck

there, $XXX had for million historically an company out The Yes. that some above time and number liquidity we've operated level. target

we multiple commercial have including reassess, which of underway, before, noted Goonyella North project, in the can significantly joint that impact as venture, as company's cash We flows but continue well as practices both the to future.

So get look future. to items, get the as we we into those the on some resolution in tune that and fine year, we'll

Karl Blunden

assume is materially But XXX you. than that to lower the it that fair Got had? you've historically be could

Mark Spurbeck

I'm sorry, the repeat question.

Karl Blunden

target it fair that XXX had? be the materially you've it historically assume to Is lower than could

Mark Spurbeck

assumption. make wouldn't that I No.

Karl Blunden

with the to And regard needs you. refinancing to addressing or timeframe Got bonds, covenants Okay. that in then, happen.

process possible for from down liquidity You standpoint something any need should the that line of that covenants. the and JV of to the kind a get the Are look you've initiated you what regulatory or at from cash there approval look and inflows have covenants? sale address is to further that currently then, process comes we or addressing

Mark Spurbeck

just not want we timely Certainly, transaction. joint the for do We that the can can. venture to We as indenture. have do clearance done and close we that to that Yes. allow we before get the can bond underneath

Glenn Kellow

Yes.

sales, asset possible we do at of a that part the looking periodic you're as if think I business. have

have And have so, surface reserves. landholdings, we we

pretty So is on frequent much things basis. on your exact position, also point of position balance larger that. cash the a But those occur frames relatively types taken But and a of tough to they're and large predict around well time course, that liquidity well, sheet. we've got lumpy as

Operator

And we'll Levin a with looks question from follow-up Benchmark. like Mark take

Mark Levin

I if what kind metrics sort see think forward? wanted And get I just going with -- structure I think and want leverage look you what views the the your right appropriate you like to liquidity the question and change as also number debt of the capital first to was. should about to of

Mark Spurbeck

debt Yes, levels fourth our and progress Mark. fact, We be lower, you reducing would quarter. that debt. the committed in that And, to in saw we're recognize

mentioned, pace reduction contingent the both industry company quantum on is and debt specific the development factors. and Glenn of the As

Mark Levin

AMT then didn't refer I you guys if Okay. next And Got call, it. question, to mentioned it know rates, hear. in the tax or it I early don't

expected If you on on -- did, or that coming what's there the -- in I apologize. end refund? Is to? anything tax there Is on that left

Mark Spurbeck

XXXX. credit We've From AMT $XX in Yes. collected an perspective. million

that collect there's about to here left million $XX half still So be in We of XXXX. collected.

Mark Levin

Okay.

$XX million about So at million model XXXX $XX

Mark Spurbeck

Yes, that's right.

Mark Levin

Okay, great. Thanks.

Operator

Chris Terry move And to a now Bank from with we'll follow-up Deutsche

Chris Terry

guys. Yes. Thanks,

dual ports, work the can of couple potential will of the interested? ups cetera, parts be buyer if then the in Just on secondly, as you impact coronavirus? any on to you on could this partner just year China? timing what Do a of saying whether little you of overall with the the track Or conditions, around been just on One my before want And the in potential that? on follow done North you're a bit see ventilation just just Goonyella a JV side. comment et result approach. on from Thanks. And they'd give a or color more early think the market

Glenn Kellow

Yes. Chris. Thanks,

the just So, hard-coking first we've is sources the feedback from I essentially North tackling coal. one. of multiple the think And quality got of the the Goonyella around

it's benchmark that I a think recognized quality. type

infrastructure we the The that second we is that have.

there is we scene that the we South have about, also about. as GM multiple we've reserves lowest the As talked scene talked

significant of from perspective. value all we it, way of the So at our really, is that look

out respect around not impact our of a or second we've any With impact, But this the the great to terms shipments question, our deal uncertainty in seen at obviously, to stage but direct date, loadings. logistics too there's impact how of ends of the play potential the a terms predict. that really both on of court things as could for That's flow as, of little shipping. to bit in chain, at restrictions, early

should point China. in office a we that have do I out

the don't folks Our from home required go not system. this are working so they that -- to along the point, into at transportation office they're

important We've us. the not but our today. global past Korea, movements. in in we've that's around the having approach does on talked relationship recalls for market So trade coal first pockets, been an nonetheless that traditional that about China impact China been have trend, recognize particular the probably the we Taiwan, and

Vic Svec

Yes.

standpoint, revenues statistic that's perspective. from from of just Just a our X% a company

So as some small -- smaller Glenn important notes, other. for market much percentage

Operator

remarks. Glenn and all Kellow for have time gentlemen, I'll closing for over the And back we the to call ladies that's questions. Mr. turn

Glenn Kellow

participants. today's all to you Thank

insistent of focused As we've low our are are At reshaping have the success. within outlined, dig best the active financial living the we be the XXXX. within our expected operations means the we on cost deliver. of leaner and assumed position for an us basics At our times. And during business, we level, we on portfolio to

express Our interest our to call. continued concludes of also many foundation employees like are And support your investors, and each you today's would in that contributions initiatives. my the to business. to thank the years Operator, gratitude, these like I'd their of continued ahead. I

Operator

does conclude your conference XXXX Peabody earnings quarter that again, call. Once fourth

You now may disconnect.

Peabody Energy (BTU) 5 Feb 202019 Q4 Earnings call transcript