Peabody Announces Robust Shareholder Return Program – Peabody Energy (NYSE:BTU) – Press Release


$1 Billion Share Repurchase Authorization
Amendment to Surety Program

ST. LOUIS, April 17, 2023 /PRNewswire/ — Peabody BTU today announced that its Board of Directors (“Board”) has approved a new shareholder return framework which includes a share repurchase 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 $1.0 billion of BTU common stock.  Additionally, Peabody amended its surety agreement to limit collateral exposure and remove other restrictions.

Peabody plans to return to shareholders at least 65 percent of annual Available Free Cash Flow (AFCF) retroactive to January 1, 2023.  AFCF is defined as quarterly operating cash flow minus investing cash flow; distributions to noncontrolling interests; plus/minus changes to restricted cash and collateral arrangements (excluding one-time effects of the recent surety agreement amendment) and other anticipated expenditures.  Peabody expects to launch the shareholder return program in the second quarter of 2023, following the Company’s announcement of first quarter earnings.  The balance of AFCF is expected to be allocated to value enhancing growth projects, repurchase of potentially dilutive securities, additional shareholder returns and capital preservation.

“With the achievement of our target to eliminate all senior secured debt and fully pre-fund estimated final reclamation costs, strong execution of operating plans and favorable market conditions for our products, we are pleased to announce our program to return value to shareholders,” said Peabody President and Chief Executive Officer Jim Grech.  “These actions allow us to return a designated portion of our cash flow to shareholders while reinvesting in our long-term future and maintaining a strong balance sheet, underpinning Peabody’s objective to be the coal producer of choice with an unmatched opportunity to return free cash flow to…