U.S. Coal Demand and Peabody Strategic Overview
2018 Guidance Targets
Sales Volumes (Short Tons in millions)
PRB
115 125
Capital Expenditures
SG&A Expense
$275 - $325 million
~$150 million
ILB
Western
Total U.S.
18-19
13-14
146-158
Interest Expense
Aus. Metallurgical ¹
Aus. Export Thermal²
Aus. Domestic Thermal
Total Australia
11-12
11.5-12.5
7-8
29.5-32.5
Cost Sensitivities4
$0.05 Decrease in A$ FX Rate
$0.05 Increase in A$ FX Rate
Fuel (+/- $10/barrel)
U.S. Operations - Revenue per Ton
Total U.S.
$140 $148 million
+~$75 million
- ~$60 million
+/- ~$23 million
2018 Priced Position (Avg. Price per Short Ton)
$17.50 $18.50
PRB
ILB
$11.93
~$42
Australia Export Thermal
~$76
U.S. Operations - Costs Per Ton
PRB
ILB
$9.25 - $9.75
$31.50 $33.50
Total U.S.
$13.50 - $14.50
Australia Operations - Costs per Ton (USD)³
Metallurgical
Thermal
Total Australia
Peabody
~95% of Peabody's 2018 U.S. volumes are priced
~40% of Peabody's 2019 U.S. volumes are priced
~5.5 million short tons of Australia export thermal
coal priced for 2018
$85-$95
$32 - $36
$52-$58
2019 Priced Position (Avg. Price per Short Ton)
Australia Export Thermal
~$75
~2 million short tons of Australia export thermal
coal priced for 2019
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