BTU - Earnings call 4 2023 | Peabody Energy Corporation

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Operator

Good morning and welcome to the Peabody Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Karla Kimrey, Vice President of Investor Relations. Please go ahead.

Karla Kimrey

Good morning, and thanks for joining Peabody's earnings call for the quarter and full year of 2023. President Chief Jim Marketing are Spurbeck; CFO, today our and Officer, me and Grech; CEO, Mark With Malcolm Roberts.

release, well of with our earnings forward-looking the risk encourage the you filings there, our consider find Within along referenced statement you information to as financial with as non-GAAP reconciliation public factors a measures. We will on the SEC.

call over to the Jim. turn now I'll

Jim Grech

and morning, everyone. good Karla, Thanks,

performed further as results, For shareholder expected, plan, another robust our the our by XX%. reducing full our strong to year shareholder shares in year and and over prefunded allowing We operations us closure reclamation enhance XXXX, value. of return mine implemented resulted outstanding delivering long-term which obligations a

Centurion of our the large and purchase development of a We and Wards the longwall the acquisition kits project, at Shoal our continued also strategically our reinvest pending portion to reserved the new the in project Creek adjacent Well of to operations. through met Metropolitan portfolio

fourth we the interrupted of XXXX, the December. deliveries in Australia results development train produced on in quarter despite some that non-peabody-related mainline In a strong

to advance coal Creek the production premium Shoal hard schedule. longwall of and successfully We continue put our project new of ahead into at development Centurion coking

incredible fire Creek, at [indiscernible]. Given possible the March Mine would this achievement was not the of Shoal close our with working coordination an efforts that without been have dedicated employees

record second and rate global working I history we markets, rate to global the in calendar best our for thank focus for company rate annual our continued injury to a off injury a in this on last year. want Australia expand I Before annual year, and and commitment injury efficiently. our achieved low employees their year, safely Coming global

no celebrated mine time Our X with Wilpinjong incidents. years lost

row, win mine as the mine in a safest recognizing second Our Award in the of underground the U.S. mine the the Safety year for XX-mile Sentinels

Northern Hemisphere from increased coal for resulting coal, during cold on weigh gas have range-bound Coast the demand the ton. $XXX the with trading East markets. of coal continued thermal to high-energy coal to supply of a $XXX natural an turning inventories the quarter. Elevated within Australia, global to range in Now a Newcastle Seaborne thermal markets were in coupled

China imports XXX track imports Japan imports coal continue million largest metric for to were -- million Asian thermal to XX% the level Korea grow Asian XXXX, tons In increasing with by record contrast, thermal year the reporting in and XXX that growth. import are coal far totaled compared with XXXX. decreases on contributor to ago by and mild for

market, Total the economic and of production, during steel led December coal the the The expansion. continued XX, India would volatility strong period, ongoing X steel the crude sharp the mainly ended in Metallurgical Seaborne producers months XXXX, because steel margins outside X contracted its thin steel of output first growth output during the slower China months in domestic year. during of Chinese where characterize of and demand. Within reported balance a however, by sector crude showed XXXX the and decline

lower, marginally coal with substantial semi-soft import the The and interest purchase Indian $XXX coal seaborne In strong around below coking for remains hard coking new reductions. Metallurgical remaining market more for ton. combining with PCI Southeast levels. coals quarter the Premium supply indices demand historical and finished comparison, price steelmaking Asia. outlook coal a positive within observed

season. energy challenged anticipated of to as due from Renewables winter impacts grow declined generator be the coal thermal low States, the mix. year-on-year The high we near-term prices to demand comparatively to outlook has United inventories electricity post into and the is part renewable generation by as generation. In of gas shoulder continue transition

to ensure customers of their However, plants our of retirement reliability. the we of order delay have seen in some several grid

segments. Now moving our to operating on

in The came to on volumes occurred Wilpinjong at our coal anticipated, mine. quarter which fourth costs main per our on for trained primarily the a million the range at development serves lower of thermal high tons, were development impacted the ton due language lower end X.X days. Segment seaborne than December to was Our and shipments. XX shipments X due

Seaborne In shipments the the the to developed ton. were $XXX were able tons production than Our met with line X.X quarter, long-haul in ahead December, expectations, of better anticipated in segment costs commence anticipated. at district of better Shoal Creek we million panel million tons while total than XX.X segment per in newly were PRB successfully at were new shipments L schedule. In

we conveyor Wards the along second existing At with Well development site, transaction for The building we shipments share production our million to with increased coal XX% as the a to of we advance their mine, due Wards on adjacent Centurion and to customers workers. North first and which the out quarter. at project. X.X deposit, pricing. Centurion in thermal to Goonyella progress We complex of the new We're permanent PRB underground system on to were renamed fourth closing chapter new tons, slightly had Metallurgical ships as our anticipate the mine, in Goonyella group making to in make Peabody of mine, property. the as initiatives expectations development. of total Outside will in U.S. the XX% few April, underground support In a new progress our key of welcome Well we reduce the is including high quarter. quarter, from continue active workforce we December, below signifying inventories the This commissioning our installation coal demand continue the growth natural also a of gas North in former third quarter commencement our equipment other include operations, our operations. a the In Centurion

up to We development. additional scaling continue underground support staff maintenance and to will onboard operators of

coal expect to in the of XXXX. first and of second in continue our XXXX We sales coal development half longwall

allowing cash to major a platform more diverse advance and to and with that year us gives deliver stability return new the projects our as the entered to portfolio to us seaborne shareholders we re-weight We results, coal. consistency

continuing on and operations. through value are reliable coal hard Centurion, our to our forward premium to coking delivering focused previously shareholders announced look development Advancing our by predictable X strategy we to executing and return project our from performance our Tier consistent, we XXXX, program. deliver shareholder As

over I'll the now Mark financial to turn cover it to details.

Mark Spurbeck

EBITDA recorded $X.XX Thanks, In we million. or fourth Jim. $XXX and quarter, $XXX of the million common stockholders diluted to income of net adjusted per share attributable

the $XX we continuing million cash operations. For billion these $X.X $XXX The $XXX flow XX.X net million of diluted EBITDA company more $X.X operating [Audio cash $X and in from we than free of generated million on per based [Audio outstanding available income quarter. billion. have flow. year, or Gap] adjusted share shares better first of and the announced recorded full deploy and have shares results, of to Gap] million XX% of to

the issue fourth to the moved to now which In $XXX anticipated, primarily guidance. the in limited of results. segment recorded Seaborne quarter, million Tons of Wilen less a EBITDA. due Turning toward higher costs adjusted Young Thermal and mainline, end rail were shipped than shipments

XX%. year, the margins reported to XX tons, adjusted Thermal full increased Export segment the million and segment of of the [ ] $XXX shipments million adjusted For Seaborne achieved EBITDA. EBITDA

substantially result below earlier-than-expected the the million $XXX of realized achieved low than were generated as Panel at prices The district. shipments were Cost guidance of the more end Seaborne per quarter, L higher. and in a adjusted prior segment new both double ton of Shoal EBITDA in Metallurgical great of $XXX quarter's Creek the fourth start the longwall

a segment average tough last Metallurgical Shoal $XXX to the Seaborne reported achieved prices. was EBITDA. per a EBITDA year, lower For The margins as year the our transition of XX%, $XX full price at ton increased Shipments of tons adjusted considering realized coal PCI million of Creek. result a weaker despite segment result than year million favorable adjusted X.X

highest million our shipped Higher in opportunity repairs trains. team's EBITDA to PRB by disruption, XX.X a were the putting an adjusted recovery a the and since seize quarter. in offset XXXX, other testament $XX The load position full our mines to additional shipments tornado resulting of to costs, quarterly volume additional million for partially midyear from themselves tons,

pricing full we the the double from we improved continue and benefit where with XXXX For million, And over adjusted pricing last year, year, X%. Year-over-year, or book our XXXX contracts contracts than PRB the years, $XXX was average levels. over during more longer-term to PRB at spot average EBITDA XX%. built favored realized nearly sales last is we our per ton up as shorter-term X price $X.XX price increased realized

delivered million at reduced certain the mines lower in Production adjusted shipments was $XX of miles U.S. longwall other move the by customers EBITDA from volumes planned and thermal impacted fourth guidance. XX below The quarter.

payments compensation realized average per from buyouts increase $XX a and from to substantial the However, ton we these benefited price due to customers. in

guidance. a EBITDA segment As result, implied exceeded

we was margins of year. produced XX%. achieved $XX $XXX For adjusted $XXX segment mines XXXX, adjusted previous year, thermal the and in the full the million adjusted EBITDA EBITDA of an EBITDA increase of over U.S. million, million Together,

thermal ahead XXXX, to and be year are Looking More of we volumes XXXX. to results. similar consistent expect financial expected operating very another to

benefiting year to higher are $XXX million export anticipated the X spec projected primarily $XX with XXXX metallurgical $X to Newcastle longwall volumes to to to $XXX Shipments at a XX due costs consistent we full due to expected to to product XX XX the tons, Shoal improve from million $XX are are of million production However, are levels Segment to including costs per from ton. tons tons per Creek. be at ton. million Mine. Open-Cut anticipate of Seaborne installed Wambo newly at by to be proportion projected sequencing a million, increase mine to and

per shipments we we remain the XX million we from $XX.XX. to down and tons Ranch as the levels expected XXXX Lee $XX.X at thermal reserves are west. U.S. Segundo million flat out transition XX XXXX In with Costs to to million Other at to $XX.XX expected slightly be volume XX priced million XX to PRB, of is mostly from forecasting El ton. have tons, tons, are

costs $XX.XX have at the priced are in million million. of to capital We expect million, continued per development range for including primarily of project $XX capital, $XXX ton, last $XXX sustaining million at $XXX estimated $XX the largely year. Centurion capital with Total of XX.X and tons expenditures and of consistent

previously close the we Well of to announced deposit. acquisition Additionally, expect Wards the coal

X.X per ratable and prior move mine to quarter million ton. than are due sequencing at volumes to tons, expected $XX lower longwall $XXX primarily consistent up Metropolitan year. million X.X million including we per fourth tons to expected Specifically be Cost for volumes quarter are the export the as last be first move longwall expected ramp from the temporarily Seaborne from $XXX to at be at Wambo of CMJV. with at X.X elevated costs ton to quarter, per ton, at $XX with underground metallurgical are thermal tons, Seaborne to a the

Demopolous has We the also the under to a lack Shoal financial Creek, temporarily potential we anticipate to increase continue to quarter repair monitor at that situation. lock first impact results. don't but cost a transportation

million of to the the U.S. prior $XX We per costs coal thermal expect PRB quarter tons ton. prior to tons, to million the per are coal XX with in to ship $XX.XX while quarter shipments line Other X.X and consistent costs quarter, with improved largely $XX.XX $XX in with be ton. at expected to

environmental uniquely Peabody from XX% delivered the reinstated in from last With most our mines million company's from generated metallurgical portfolio strong closure the XXXX, the XX% X another strength results. approximately our Seaborne we future the and the on shareholders over and XXXX year, Seaborne program our obligations, return years. addressed, and secured is generated and EBITDA $XXX we of segments consistently and prefunded mine thermal a adjusted summary, to of repaying XX% financial segment. liabilities cash last substantial positioned, flexibility. all last enhancing flow. based year robust U.S. and free Peabody's importantly, In results return the and diversified shareholder further After debt financial of the Thermal segment, EBITDA of of reclamation having announced

waiting and flow longwall focused remain of the further Last shareholder our in We maintaining financial period continuing towards Peabody's efficient XXXX. operating development strength. safe the financial month, cash further while coal coking long-term mines, resiliency goal we creating hard maximizing achieving announced development our We returns enhancing during begins credit all value anticipate and production when facility, Centurion, shareholder free flow on Centurion. cash at revolving $XXX company's million a new premium of and

Operator, call the over for questions. I'd now like turn to

Operator

Riley B. Instructions] from first comes Securities. our of [Operator And Pipes question Lucas

Lucas Pipes

My first there. coal question. met for question Nice is on guidance twofold outlook the And XXXX.

Centurion And First, able then it the how development of would you that would tons? provide met included breakdown from be of the tons many to be coal a midpoint, million quality guide? X call in at

Mark Spurbeck

production up we're really year XXXX, Creek. million based stepping pleased for X tons Lucas. X full Shoal the on really real good Yes, with million the and tons from

As of bit you're Centurion. aware, little expect we have coal development a we

getting probably Shoal looking million inventories, building to tons XXX,XXX When be Creek. we'll closer be we coal and total over will tons. that the -- product portfolio, we're at XXX While million look and at from probably PCI X.X sales of primarily about X the high-vol light

Lucas Pipes

The Maybe all. catch balance. I didn't it

Mark Spurbeck

of semi-hard which coking kind The Got is a it, that Metropolitan. rest Yes. coal. is of

Lucas Pipes

What would be best index Metropolitan? the for

Mark Spurbeck

mean, continue of XX%. to maybe achieving at those at of to coal XX% address I a and the look coking to relativities we But off premium whole products. portfolio hard you the Malcolm, that want

Malcolm Roberts

coking that. coal assumed is Yes. relativities, a but priced of prime Metro discount hard low small against Look, we each to vol at don't clearly list our impendently

Lucas Pipes

of the kind on Then that. staying side. appreciate I coal helpful. met Very

you of out would budget, that And kind of the remind CapEx in be review? has of this total left the that For what XXXX Is and expenditures year? Centurion, of looking at the end us evolved? terms budget under could beyond, CapEx to capital

Mark Spurbeck

break Luca. I'll that down. Yes,

So $XXX Centurion of it's $XXX XX/XX. CapEx of previously has been spent that and total portion million. of as announced, million historical legacy as North Goonyella we the a of

Goonyella of budget the in $XXX million the for have for And We would side. that about XXXX. North million $XXX XXXX for leave

portion XXXX. Now close quarter words of in to the piece. here of $XX Centurion development do year. capital Wards this We We have Well in that second for well million the the of look

we'll project a date. We're in that. still full CapEx and later that integrated developing of up beyond haven't We an process plan, the with provide a guidance mine come at

Jim Grech

known. until with production. And we so and been the ordered about -- talking and that, and is is associated are Lucas, cost those what which and I'd that development portions that to of like get part to has conveyors add large into pretty CapEx, capitalized on costs equipment are of miners the spent it A Mark much get

So as capital it's about development good associated being pretty us. that's inflationary far going to forward. exposed as that and feel we equipment feel mainly again, behind pressures, pretty much and because, we with those numbers

Lucas Pipes

I'll returns. last it's sheet and Very your capital squeeze and balance around helpful. one theme,

on -- or opportunities? forward, about of we again, think Is And question. cash this. unlock do I'll congratulations that revolver. X-pronged the thoughts your would going interest to think of about your ties fit that related, sheet a on given of structure Does how kind the that I kind So level additional kind your But the on today? balance into capital forward? into it right How income that try of be cash brief. course? revolver, expense balance? return should And capital then how of does appreciate you going net kind

Mark Spurbeck

Yes. All right.

addressed done Lucas. last evolving and for there our both the kind which So in and volatility just everything you pricing. industry, has to Happy balance stuck X start I'll those above-average with the markets years one, market we've in over answer remind last of though. questions, demand And the perspective operates X from questions sheet and a capital

not we that letters rating I risk dips mine new the opportunity And did of XX-plus we took Moody's particularly as D&O it facility. met opportunity comfortable revolving notch. a cost We does surety of other that bonding on resiliency, in credit will metallurgical take financial coal add fees, The continue to financial prudent pretty coal an strength. at attractive revolving will solidify a to note, commercial benefit premium surety growth bumped Tier with a doing requirements, be an additional our to and Centurion, think year lower of hedging liquidity, lower as would market We for this phase financial was with our inevitable the during the facility provide something we life. company's strength a comes particularly X FX lower our credit credit utilize while well from Seaborne engine. for costs this And up premium. development that

benefit that you've interest -- a yields. addition safe in there like we net treasury to is the get there income So a mentioned

X% a market use X.X% probably So to is good at cash to on those today's balances. market,

Operator

Markets. Jancic The BMO comes Capital next from question Katja of

Katja Jancic

this First, just you add Shoal Creek tons to year? expect confirm, to X.X million

Mark Spurbeck

Yes.

an mine ballpark. had a really probably We guidance think haven't but the quarter. production to We start on right that's provided is that ballpark. level, probably initial in We the good in

Katja Jancic

you can the And production capacity at is Shoal just remind the us what Creek point, at max? this

Mark Spurbeck

conditions, the But in we're where geological with That given more mine historically. than levels. comfortable mine those has at done X.X we're

Katja Jancic

Okay. And Centurion talk about that you included some CapEx what million. think you -- the $XXX what rest about a million. are I you of that? $XXX the is then just major -- the Can projects in project mentioned And quickly, is at bit the other

Mark Spurbeck

There's that $XX for venture portion $XX million for -- joint assuming second Yes. $XXX of million of Open-Cut million closed that's the Goonyella Wambo $XX probably -- portion quarter. There's the we're million, run about the that Centurion. Wards North that, that Well also There's at Glencore. the get by we in

Operator

comes The from of Benchmark. next question Nathan Martin

Nathan Martin

about extension on We million projects, the get some splits tons, the over lines I levels high-quality how but forward, million production think, X lower-quality Newcastle approximate just that changing to ash, believe your guys seaborne given to overall Mark, working positive wondering the will open might like on? the going the of on in pricing and along is roughly several you tons know between next some API release, sequencing I and XX guys thermal see mentioned year, there. the then, talked split the the prices you've segment exports there. production the do of the I you you're that split What's you quality of between and just guiding on you side, production then on Guam even start mentioned specifically have product this unpriced And years higher tons, to? the of

Mark Spurbeck

that better right, neighborhood of spec this which ahead. Newcastle And mine spec product of know, basis, sequencing overall to export at as take I'll in portfolio million tons. somewhere there's some the our an probably product, Newcastle on X.X you're the open looking cut, question. X just tons given you first year the million Go

Nathan Martin

the like the I just how trend that projects splits just segment working couple and that on? any of next some looks over in levels the years on [indiscernible] are had Great. of thoughts production the you guys given

Mark Spurbeck

haven't I next that, beyond there for outlook that years. stable we 'XX. will projects is given extension guidance study. So are fairly are say any the several under that

We anything. as further But the haven't updating studies, those get down be the and announced we'll we road complete market.

Nathan Martin

something over $X.X the quarter-over-quarter quickly, the Got vessel on million keeping color in from quarter. Maybe a decline? a met else? eye I fourth little get I Demopolis drop more in to $X.X know, Is to shipments, lock maybe Okay. it million well. you're mentioned you on it. forecasting Is that the segment think, as Mark, there timing? it outage expected in

year? range. thoughts year how first transportation for full quarter. to assuming moves the think any and shipments on those expect the in cost segment the cost to throughout then or But are per you both side, flag? I so you higher the maybe you items for quarter thoughts additional versus any other that, flagged shipments I'm any continues? ton one longwall there? Any alternatives trend expected investigating that Maybe And the on first that So driving range

Mark Spurbeck

quarter. the just address volumes, Yes. with I'll start first the

move in years. a that -- couple down Metro lower there fantastic first at where sequencing the quarter fourth some volumes. we've my in pit, of did I an remarks. Some at had should And was the covered This experienced is the last then typical, bringing longwall of But quarter. in we've mines mine at be CMJV. have there's that's first Really, or the coming the there's will production It they're just in quarter. just absolutely say, typical

Jim, as less up make year the So lock go is similar then, to to increase last circumstances. want do It year we cover throughout to balance. ratable, the issue? that than it And full you will

Jim Grech

Army that we locks Core lock in Yes. current the to has engineers service for that that's mid-May, the sometime their be have Nate, industry issue, is timing -- from with estimate. the in the back

And X quarter alternate transportation our so we've don't we're in putting impacting One We've when with got full sales our full and barge is year ones. that Shoal place. the all volumes year back the moving. Shoal that keep may in see different think or sales that sales it dip the Creek. is place But barge to and depending We a first be the We one tons routes. for rail volumes Creek volumes. gets for do another made coal won't in again, numbers in there quarter. second affect second the the lot quarter interim, in

Nathan Martin

Very then more. helpful just color, guys. maybe And one

gas low high U.S. on you I did the couple contract demand. buyouts, of at a are Looking how thermal nat business, weighing think. flagged They prices, stockpiles

if -- only fantastic you've guiding there are at I million So a Obviously, well. to for year-over-year. at that sales X or segment, down you guys X year XX PRB million tons already midpoint look tons, the think, particular, maybe I contracted in as from that

maybe about just conversations number seeing? like gone there market not going partners talk with your be you So can the we're there, whether dynamics utility given have that could pressure feel current eventually out on you are or how

Malcolm Roberts

Look, Yes. to. we're It's sold that and one. the sold with take comfortable very level we're we Mal. that I'll the that way

years, of than to comfortable we're the previous this I think that the in contracted have year, going pretty we see spot but generators they to with and lesser the in market getting our terms might level degree market a delivered.

Operator

comes of from Jefferies. Chris LaFemina question next The

Christopher LaFemina

allocation. business just questions capital the met around and a coal of So actually couple around

benchmark Is accurate? gets is be you the low-vol product ramp-up pricing. that North which to So I Goonyella, have of premium assume going that

Malcolm Roberts

opinion, at most the likely this level lot top premium. Absolutely. supreme a In top lead people's is and opinion is coal, or level the at of a my coal

Christopher LaFemina

Or over true that asset? is life reserve the And the over quality of time? the does degree

Jim Grech

quality. type addition hold is off asset. the of words the same very well of of That's the reserve the true And

at old expect Goonyella as North same don't Wards quality Well we from we reserves, quality. transfer degradation the reserves the to any the So all in

Christopher LaFemina

That's very encouraging.

the coal pricing. kind you're to on met now, are So you're fairly to growth beginning but markets in longer pivoting organic delivering with for if growth And believe organic growth, particularly opportunities, and to met substantial consider flow cash stronger returns? coal they of in you you generating met have the arise? looking is would projects the Or at coal, really the continuing now M&A in focus were capital

Jim Grech

Yes. topic is Chris, our the organic focus of and the it's delivering on returns always shareholder list is because our the growth the least risk.

We continues control And over have our focus most the that. that to internally. be

our M&A opportunistically along, we take as comes Now We look look a at it, comes Chris. that anything way. always at

Now at different opportunities but we shareholders look not, and our come take make a as or it determination way, how thing. our it's the a the down active we if a then things could top list. Organic are the very are But list. at it as benefit of

Christopher LaFemina

and share Yes. and basis valuation share is your up ramping greater. What's count. production coal on leverage much the your the coal low that a of volumes a per market met obviously becomes you're at nice buyback is increasing basically reducing met about The

just that, we with -- like good definitely observation, all. we it an luck So and

Jim Grech

Thank too. same you, the have we That's observation exact Chris.

Operator

Vertical comes question Michael Dudas Research next Partners. from of The

Michael Dudas

questions. Two

on ago First change? customers opportunity to -- looking that that in to about you're or at a lengthen major where does maybe even next And been Is there coal, the maybe we've reserves your retirement the on and selling the base? customer on sooner, years Just thought maybe the Gap] thermal about several you it how changes over and monetize the the months to XX that. get wanted U.S.? your will Jim, seen any markets U.S. you're X mentioned [Audio some your and in has

Jim Grech

baseload potential -- customers them see one to because of of -- -- we're plants know by Mike, things trend case. the maybe XX see a that combination was to to conversations is points now our years, originally concern the need very noticed not that of nobody that again, and the seeing next our is is lives would out few and commitments put the in desires going reliability discussions to power what close plants and year going making is these And that, the XX. be supply contracts we've than we is but around looking that customers having with we're the to the occurring. about I the place say in or have reliability gone thought that for that longer-term of And I'm It's the we're the is longer with have backed good this predictions at it to reliability, of that. grid keep to because The you the do sure right? up or having

there. So we'll where an from of leads the encouraging it stronger start getting end us through and to through it's this decade, see

Michael Dudas

appreciate I thoughts. those

of you think a met such and for through as the Secondly, you on this is are gas know for course, a do or market to out there's fundamentals of net maybe out plays side second coal, half that chance markets recover Chris the where pressure see thinking about the side, but over better the part, on And I of you next is seeing? with little agree bit year, X, given to to, supply the seaborne with your intelligence how relative and nicely scarcity of on thermal as prices, given you the you're hives XX look what how short move the months? are

Jim Grech

between we and Yes, answer seaborne them thermal to and about sure seaborne got and... you Mike, before make the talking question met Are clear. we

Michael Dudas

Yes.

Malcolm Roberts

and outside in we are comes during continue met seaborne and production into that. to the saw When QX very we by coal it I'll steel encouraged metallurgical by crude are to China, market, we of what also take Sure. expect the quite constrained we space during supply. those encouraged Yes, QX rates increased QX. rates And with

bit got moving a a to So that. And levels, supply of baseline having XXXX at we back as we still challenge see use to look supply those XXXX. which through

Turning Thermal to coal.

Newcastle Coal is in solid -- demand. is in

times, the demand. little ahead at However, get a we of

supply that that's inventories move But for export as strong a still that improve sit We Coast prospects coal, got prices the $XXX. Hemisphere. Australia around we've QX. We Newcastle with really and a put we be during right coal ahead. as we we the growth supply to So the year. thermal out we think through think into little quite look, to the in down of East the is now Northern had market taken

we're the year. So the of about optimistic rest

Karla Kimrey

we another question? do have Operator,

Operator

Pipes next is a Riley The Lucas question from Securities. follow-up B. of

Lucas Pipes

And My I first comment volume technical the this it on an starting at I technical and on maybe if could the you we'll with on of report, Wilpinjong. goes But kind believe. you kind kind this lower versus wondered years? could get And that's year. and of time is ago, and looked report it I for year's I last that, one on I some net guess, showed version domestic of what life your you Wilpinjong outlook have against of updated that then maybe the mine guess comment export. year to XX-K. coming if of production

on We the comment and to Seaborne could color. of you appreciate portfolio that kind contribution over thermal if net time? your really So the would of Wilpinjong

Jim Grech

talk about that question versus about extent the start. we'll we'll with some can about and talk outlook. the and export And follow Yes. up of domestic to Malcolm that. the the reserves We'll contracting Lucas, the have the that then color we on your

if Malcolm, first. go you So could

Malcolm Roberts

as of -- proportion we increase. expect XX Look, coal, the XXXX, Yes. to past -- we move we XXXX, export

Wilpinjong, -- at busy we've options based there some the moment. increase got extension a we are production well can as options that on there drilling to which However, and program at very

Mark Spurbeck

versus the XXX,XXX, it's probably in at probably tons we're Malcolm and in about 'XX export would are -- -- says, similar looking say XXX,XXX year-over-year -- as I only as volumes so 'XX Year-over-year, well. lighter

performance mentioned performance the the of consistent proportion better [indiscernible]. pretty new already of gas the out Wambo And increasing we there. obviously, So

Lucas Pipes

should I kind Got higher should about unanticipated output kind prior the the How of efficiency it. plan that? think gains as think about optimization And versus and opportunities. I of

Mark Spurbeck

Yes.

think combination things, those a both it's of I of Lucas.

a in see There's looking updated when production beyond And opportunities, expansion to there's get about mine we'll going that continue We out that an several earlier, technical studies. down we further 'XX. to talked Certainly, report. conducting. We we those. the line, study continue profile and various forward, you'll are

Jim Grech

talking at have time running end you're would that with Lucas, long the and what profile. of year, last frame also out longwall Wambo not move tonnage the about I'm maybe the this you're about too. talking year haul of sure come

Lucas Pipes

of Yes, that couple . the Wilpinjong -- was a next of over kind years...

Jim Grech

Wilpinjong.

I'm Go sorry. ahead. Okay,

Lucas Pipes

I I helpful helpful. No, Wards Follow-up appreciate very on Well. some context. guess discussion. that

mentioned Is I that? those you appreciate would I what in it infrastructure $XX this [indiscernible], think that of earlier you comments for would capital? on to million year. eventual is if it envision is with the maybe extraction you your invest capital on could of expand reserves, wondered

Mark Spurbeck

Yes.

begin of a will Lucas. think -- some I all an underground combination reserves, I towards and mean certainly, driving is there capitalized. it's we'll those which be both, development

XXXX. preliminary million that's for estimate of So the $XX

Lucas Pipes

anticipate? then And should direction of contract your sort I year. of book this That's Okay. frame production for of about the the year's side, what And where beyond domestic portfolio a on to Can percentage we ballpark, you ask pricing helpful. wanted this stands of kind kind XXXX? as up

Jim Grech

we on thermal year about same that for look XX% other way we this our of XXXX, you and for committed. And guidance at the right XX% midpoint than pricing we this the now, of Lucas, domestic committed. the take U.S. against if Yes. if guidance midpoint or XXXX issued any yet the we're outlook better it you And look to have year, gauge the PRB at not XXXX. and book

Operator

closing like Jim our I to This conference the concludes session. to back over question-and-answer remarks. Grech for would turn any

Jim Grech

also employees our concludes joining vendors initiatives. Well, investors, that I'd remaining our for our call. today. to our all focused continued support. for your safety especially you thank and execute customers thank for continuing on on I'd like thank and Operator, us various to to like for

Operator

you now attending presentation, disconnect. and now today's conference may Thank for you The concluded. has

Peabody Energy (BTU) 8 Feb 242023 Q4 Earnings call transcript