PEABODY ENERGY CORPORATION (OTCMKTS:BTUUQ) Files An 8-K Results of Operations and Financial Condition

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PEABODY ENERGY CORPORATION (OTCMKTS:BTUUQ) Files An 8-K Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition.

On March 10, 2017, Peabody Energy Corporation (“Peabody” or
“Peabody Energy”) released its unaudited fourth quarter and full
year 2016 financial results. A copy of Peabodys financial results
is attached hereto as Exhibit 99.1.
The unaudited financial information presented for the quarter and
year ended December 31, 2016 reflect assumptions and estimates
based only upon information available to Peabody as of the date
this report. The financial results presented are not final and do
not reflect audit adjustments, if any, for the year ended December
31, 2016. Neither Peabody’s independent registered public
accounting firm nor any other independent registered public
accounting firm has audited or reviewed the financial information
presented nor have they expressed any opinion or any other form of
assurance on the results presented. As a result of the foregoing,
it is subject to change pending finalization. Peabody may identify
items or events that could occur after issuance of this information
but prior to the issuance of its audited financial statements that
would require it to make material adjustments to the financial
information presented. Therefore, actual results may differ
materially from the information presented.
The information furnished in this Item 2.02, including Exhibit 99.1
hereto, shall not be deemed “filed” for purposes of Section 18 of
the Securities and Exchange Act of 1934, as amended (the “Exchange
Act”), or otherwise subject to the liabilities of that section,
nor shall such information be deemed incorporated by reference in
any filings under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific
reference in such filing.
Cautionary Note Regarding Forward-Looking Statements>
This Current Report contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements that
relate to the intent, beliefs, plans or expectations of Peabody
Energy or its management at the time of this Current Report, as
well as any estimates or projections for the outcome of events that
have not yet occurred at the time of this Current Report. All
statements other than statements of historical fact are
forward-looking statements. Forward-looking statements include
expressions such as believe anticipate, expect, estimate, intend,
may, plan, predict, will and similar terms and expressions. All
forward-looking statements made by Peabody Energy are predictions
and not guarantees of future performance and are subject to various
risks, uncertainties and factors relating to Peabody Energys
operations and business environment, and the progress of its
Chapter 11 Cases, all of which are difficult to predict and many of
which are beyond Peabody Energys control. These risks,
uncertainties and factors could cause Peabody Energys actual
results to differ materially from those matters expressed in or
implied by these forward-looking statements. Such factors include,
but are not limited to: those described under the Risk Factors
section and elsewhere in Peabody Energys most recently filed Annual
Report on Form 10-K and subsequent filings with the SEC, including
its Quarterly Reports on Form 10-Q for the quarters ended March 31,
2016 and June 30, 2016, which are available on Peabody Energys
website at www.peabodyenergy.com and on the SECs website at
www.sec.gov, such as unfavorable economic, financial and business
conditions, as well as risks and uncertainties relating to the
Chapter 11 Cases. Factors that could affect Peabody Energys results
or an investment in its securities include, but are not limited to:
Factors related to our Chapter 11 Cases
Peabody Energys ability to obtain bankruptcy court approval
with respect to motions or other requests made to the
bankruptcy court, including maintaining strategic control as
debtor-in-possession, in connection with the chapter 11 cases
of the Company and a majority of the Companys wholly owned
domestic subsidiaries, as well as one international
subsidiary in Gibraltar (collectively, the Debtors) which are
being jointly administered under the caption In re Peabody
Energy Corporation, et al., Case No. 16-42529, in the United
States Bankruptcy Court Court (the Bankruptcy Court) for the
Eastern District of Missouri (the Chapter 11 Cases);
Peabody Energys ability to negotiate, develop, confirm and
consummate the Debtors Second Amended Joint Plan of
Reorganization filed with the Bankruptcy Court on January 27,
2017 (as amended, the Plan).
the effects of the Chapter 11 Cases on Peabody Energys
operations, including customer, supplier, banking, insurance
and other relationships and agreements;
bankruptcy court rulings in the Chapter 11 Cases as well as
the outcome of all other pending litigation and the outcome
of the Chapter 11 Cases in general;
the length of time that Peabody Energy will operate under
Chapter 11 protection and the continued availability of
operating capital during the pendency of the proceedings;
risks associated with third-party motions in the Chapter 11
Cases, which may interfere with Peabody Energys ability to
confirm and consummate a plan of reorganization and
restructuring generally;
increased advisory costs to execute a plan of reorganization;

the impact of the New York Stock Exchanges delisting of
Peabody Energys common stock on the liquidity and market
price of Peabody Energys common stock and on Peabody
Energys ability to access the public capital markets;
the likelihood that Peabody Energys common stock will be
canceled and extinguished upon confirmation of a proposed
plan of reorganization with no payments made to the holders
of Peabody Energys common stock;
the volatility of the trading price of Peabody Energys
common stock and the absence of correlation between any
increases in the trading price and Peabody Energys
expectation that the common stock will be canceled and
extinguished upon confirmation of a proposed plan of
reorganization with no payments made to the holders of
Peabody Energys common stock;
Peabody Energys ability to continue as a going concern
including its ability to confirm a plan of reorganization
that restructures Peabody Energys debt obligations to
address liquidity issues and allows emergence from the
Chapter 11 Cases
the risk that the Plan may not be accepted or confirmed, in
which case there can be no assurance that the Chapter 11
Cases will continue rather than be converted to chapter 7
liquidation cases or that any alternative plan of
reorganization would be on terms as favorable to holders of
claims and interests as the terms of the Plan;
Peabody Energys ability to use cash collateral and the
possibility that Peabody Energy may be required to post
additional cash collateral to secure its obligations;
the effect of the Chapter 11 Cases on Peabody Energys
relationships with third parties, regulatory authorities
and employees;
the potential adverse effects of the Chapter 11 Cases on
Peabody Energys liquidity, results of operations, or
business prospects;
Peabody Energys ability to execute its business and
restructuring plan;
increased administrative and legal costs related to the
Chapter 11 Cases and other litigation and the inherent
risks involved in a bankruptcy process;
the cost, availability and access to capital and financial
markets, including the ability to secure new financing
after emerging from the Chapter 11 Cases;
the risk that the Chapter 11 Cases will disrupt or impede
Peabody Energys international operations, including its
business operations in Australia;
Other factors
competition in the energy markets and supply and demand for
coal products, including the impact of alternative energy
sources, such as natural gas and renewables;
global steel demand and the downstream impact on
metallurgical coal prices, and lower demand for coal
products by electric power generators;
Peabody Energys ability to successfully consummate planned
divestitures, including the planned sale of all of its
equity interests in Metropolitan Collieries Pty Ltd, the
entity that owns the Metropolitan coal mine in New South
Wales, Australia;
Peabody Energys ability to appropriately secure its
requirements for reclamation, federal and state workers
compensation, federal coal leases and other obligations
related to its operations, including its ability to utilize
self-bonding and/or successfully access the commercial
surety bond market;
customer procurement practices and contract duration;
the impact of weather and natural disasters on demand,
production and transportation;
reductions and/or deferrals of purchases by major customers
and Peabody Energys ability to renew sales contracts;
credit and performance risks associated with customers,
suppliers, contract miners, co-shippers, and trading, bank
and other financial counterparties;
geologic, equipment, permitting, site access, operational
risks and new technologies related to mining;
transportation availability, performance and costs;
availability, timing of delivery and costs of key supplies,
capital equipment or commodities such as diesel fuel,
steel, explosives and tires;
impact of take-or-pay arrangements for rail and port
commitments for the delivery of coal;
successful implementation of business strategies,
including, without limitation, the actions Peabody Energy
is implementing to improve its organization;
negotiation of labor contracts, employee relations and
workforce availability, including, without limitation,
attracting and retaining key personnel;

Peabody Energys ability to comply with financial and
other restrictive covenants in various agreements,
including the credit facility proposed in connection with
the Plan;
changes in postretirement benefit and pension obligations
and their related funding requirements;
replacement and development of coal reserves;
effects of changes in interest rates and currency
exchange rates (primarily the Australian dollar);
effects of acquisitions or divestitures;
economic strength and political stability of countries in
which Peabody Energy has operations or serves customers;
legislation, regulations and court decisions or other
government actions, including, but not limited to, new
environmental and mine safety requirements, changes in
income tax regulations, sales-related royalties, or other
regulatory taxes and changes in derivative laws and
regulations;
Peabody Energys ability to obtain and renew permits
necessary for its operations;
litigation or other dispute resolution, including, but
not limited to, claims not yet asserted;
terrorist attacks or security threats, including, but not
limited to, cybersecurity breaches;
impacts of pandemic illnesses; and
other risks and factors, including those described under
the Risk Factors section and elsewhere in Peabody Energys
most recently filed Annual Report on Form 10-K and
subsequent filings with the SEC, including its Quarterly
Reports on Form 10-Q for the quarters ended March 31,
2016 and June 30, 2016.
Forward-looking statements made by Peabody Energy in this
Current Report, or elsewhere, speak only as of the date on
which the statements were made. New risks and uncertainties
arise from time to time, and it is not possible for Peabody
Energy to predict all of these events or how they may affect it
or its anticipated results. Peabody Energy does not undertake
any obligation to publicly update any forward-looking
statements except as may be required by law. In light of these
risks and uncertainties, readers should keep in mind that the
events referenced by any forward-looking statements made in
this Current Report may not occur and should not place undue
reliance on any forward-looking statements.
The Plan provides that Peabody Energy equity securities will be
canceled and extinguished following confirmation of the Plan by
the Bankruptcy Court, and that the holders thereof would not be
entitled to receive, and would not receive or retain, any
property or interest in property on account of such equity
interests. The Plan also sets forth the proposed recoveries for
Peabody Energys other securities. Trading prices for Peabody
Energy’s equity or other securities may bear little or no
relationship during the pendency of the Chapter 11 Cases to the
actual recovery, if any, by the holders thereof at the
conclusion of the Chapter 11 Cases. In the event of
cancellation of Peabody Energy equity securities, as
contemplated by the Plan, amounts invested by the holders of
such securities would not be recoverable and such securities
would have no value. Accordingly, Peabody Energy urges caution
with respect to existing and future investments in its equity
or other securities.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description of Exhibit
99.1
Fourth Quarter and Full Year 2016 Financial Results
of Peabody Energy Corporation dated March 10, 2017.


About PEABODY ENERGY CORPORATION (OTCMKTS:BTUUQ)

Peabody Energy Corporation is a coal company. The Company’s segments include Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining, Australian Metallurgical Mining, Australian Thermal Mining, Trading and Brokerage, and Corporate and Other. Its Powder River Basin Mining operations consist of its mines in Wyoming. Midwestern U.S. Mining operations reflect the Company’s Illinois and Indiana mining operations. Western U.S. Mining operations reflect the aggregation of the New Mexico, Arizona and Colorado mining operations. Australian Metallurgical Mining operations consist of mines in Queensland and New South Wales, Australia. Australian Thermal Mining operations consist of mines in New South Wales, Australia. Its Trading and Brokerage segment engages in the direct and brokered trading of coal and freight-related contracts through the trading and business offices. Its Corporate and Other includes selling and administrative expenses, and corporate hedging activities.

PEABODY ENERGY CORPORATION (OTCMKTS:BTUUQ) Recent Trading Information

PEABODY ENERGY CORPORATION (OTCMKTS:BTUUQ) closed its last trading session 00.00 at 1.89 with 3,485,001 shares trading hands.