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Due to a lack of quoted market prices and the long-term, illiquid nature of the positions, the Company has not quantified market price risk related to its non-trading, long-term coal supply agreement portfolio.
+Added: Peabody Energy Corporation 2024 Form 10-K
+Added: Tab le of Contents
Coal Trading Activities and Related Commodity Price Risk
−Removed: Peabody engages in direct and brokered trading of physical coal and freight-related commodities in over-the-counter markets.
+Added: Peabody engages in direct and brokered trading of physical coal and freight-related commodities in over-the-counter (OTC) markets.
These activities give rise to commodity price risk, which represents the potential loss that can be caused by an adverse change in the market value of a particular commitment.
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Peabody also monitors other types of risk associated with its coal trading activities, including credit, market liquidity and counterparty nonperformance.
−Removed: Peabody Energy Corporation 2023 Form 10-K
Credit and Nonperformance Risk
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Foreign Currency Risk
−Removed: The Company has historically utilized currency forwards and options to hedge currency risk associated with anticipated Australian dollar operating expenditures.
+Added: The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures.
The accounting for these derivatives is discussed in Note 6.
“Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements.
−Removed: As of December 31, 2023, the Company held average rate options with an aggregate notional amount of $456.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the six-month period ending June 30, 2024.
+Added: As of December 31, 2024, the Company held average rate options with an aggregate notional amount of $388.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending September 30, 2025.
As of December 31, 2024, the Company also held purchased collars with an aggregate notional amount of $528.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending September 30, 2025.
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dollar exchange rate at December 31, 2024, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $194 million with respect to a $0.10 increase in the exchange rate, while the Company would benefit by approximately $154 million with respect to a $0.10 decrease in the exchange rate for the next twelve months.
−Removed: Although Peabody believes its Australian dollar monetary asset position acts as a hedge to lessen the impact on its results from operations, the Company may continue to use options and collars to hedge its cash flow exposure to currency risk associated with anticipated Australian dollar operating expenditures.
−Removed: Coal Price Risk
+Added: Although Peabody believes its Australian dollar monetary asset position acts as a hedge to offset the impact on its results from operations, the Company may continue to use options and collars to hedge its cash flow exposure to currency risk associated with anticipated Australian dollar operating expenditures.
+Added: Peabody Energy Corporation 2024 Form 10-K
+Added: Tab le of Contents
+Added: Coal Pricing Risk
The Company predominantly manages its commodity price risk for its non-trading, long-term coal contract portfolio through the use of long-term coal supply agreements (those with terms longer than one year) to the extent possible, rather than through the use of derivative instruments.
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The Company has the flexibility to increase volumes should demand warrant.
−Removed: Peabody is estimating 2024 thermal coal sales volumes from its Seaborne Thermal segment of 15 million to 16 million tons comprised of thermal export volume of 9 million to 11 million tons and domestic volume of 5.8 million tons.
+Added: Peabody is estimating full year 2025 thermal coal sales volumes from its Seaborne Thermal segment of 14.2 million to 15.2 million tons comprised of thermal export volume of 8.8 million to 9.8 million tons and domestic volume of 5.4 million tons.
Peabody is estimating full year 2025 metallurgical coal sales from its Seaborne Metallurgical segment of 8.0 million to 9.0 million tons.
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As of December 31, 2024, the Company had no coal derivative contracts related to its forecasted sales.
−Removed: Historically, such financial contracts have included futures, forwards and options.
−Removed: Peabody Energy Corporation 2023 Form 10-K
+Added: Historically, such financial contracts have included futures and forwards.
Diesel Fuel Price Risk
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Peabody’s objectives in managing exposure to interest rate changes are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs.
−Removed: Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances and its long-term debt.
+Added: Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances.
Peabody’s interest-earning cash and restricted cash balances are primarily held in deposit accounts and investments with maturities of three months or less.
Therefore, these balances are subject to interest rate fluctuations and could produce less income if interest rates fall.
−Removed: Based upon its interest-earning cash and restricted cash balances at December 31, 2023, a one percentage point decrease in interest rates would result in a decrease of approximately $16 million to interest income.
−Removed: As of December 31, 2023, Peabody had approximately $320 million of fixed-rate borrowings, no variable-rate borrowings outstanding and no interest rate swaps in place.
−Removed: A one percentage point increase in interest rates would result in a decrease of approximately $52 million in the estimated fair value of these borrowings.
+Added: Based upon its interest-earning cash and restricted cash balances at December 31, 2024, a one percentage point decrease in interest rates would result in a decrease of approximately $14 million to interest income for the next twelve months.
Financial Statements and Supplementary Data.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.