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Peabody reports $2 billion loss in 2015, as bankruptcy rumors swirl
Peabody reports $2 billion loss in 2015, as bankruptcy rumors swirl
Benjamin Storrow 307-335-5344, [email protected]
Updated Feb 12, 2016
Peabody Energy reported a $2 billion loss for 2015 on Thursday, as bankruptcy rumors surrounding the country’s largest coal miner continued to mount.
The worries came as the operator of the North Antelope Rochelle Mine announced it had drawn the entirety of its $1.65 billion credit line. Peabody officials cast the move as an effort to maintain “the maximum amount of control and flexibility” over the firm’s finances. ... But analysts noted Alpha Natural Resources made a similar move before it filed for bankruptcy last year. Peabody shares were down 30 percent to $2.35 in Thursday trading on Wall Street.
“What else can you do if you need cash to keep going? You’re running out of options once that’s fully drawn,” said Kristoffer Inton, a Morningstar analyst who tracks the company. “The market was pricing in a high chance they would have to file (for bankruptcy). The things we saw today only reinforced the thinking that might happen.”
Company officials sought to put a brave face on the grim earnings. They noted Peabody cut $620 million in costs and pointed out the company will see its fixed costs decline in the coming year. Peabody will make a last $250 million payment on its Powder River Basin mining leases in the second part of 2016, they noted.
Benjamin Storrow 307-335-5344, [email protected]
Updated Feb 12, 2016
Peabody Energy reported a $2 billion loss for 2015 on Thursday, as bankruptcy rumors surrounding the country’s largest coal miner continued to mount.
The worries came as the operator of the North Antelope Rochelle Mine announced it had drawn the entirety of its $1.65 billion credit line. Peabody officials cast the move as an effort to maintain “the maximum amount of control and flexibility” over the firm’s finances. ... But analysts noted Alpha Natural Resources made a similar move before it filed for bankruptcy last year. Peabody shares were down 30 percent to $2.35 in Thursday trading on Wall Street.
“What else can you do if you need cash to keep going? You’re running out of options once that’s fully drawn,” said Kristoffer Inton, a Morningstar analyst who tracks the company. “The market was pricing in a high chance they would have to file (for bankruptcy). The things we saw today only reinforced the thinking that might happen.”
Company officials sought to put a brave face on the grim earnings. They noted Peabody cut $620 million in costs and pointed out the company will see its fixed costs decline in the coming year. Peabody will make a last $250 million payment on its Powder River Basin mining leases in the second part of 2016, they noted.
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