Peabody Energy

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WildEarth Guardians

Conservation groups WildEarth Guardians and the Sierra Club recently filed a complaint with the Office of Surface Mining Reclamation and Enforcement, OSMRE, over two coal leases approved in 2012.

The groups say Peabody Energy’s North and South Porcupine leases, which expanded the North Antelope Rochelle mine in the Powder River Basin, were improperly approved and that the company should no longer be allowed to mine there. 

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Peabody Energy

Peabody Energy, the largest privately held coal company in the world, experienced it’s third straight quarter of sizable profits with revenue totaling $1.48 billion this quarter - a 22% increase from last year’s third quarter. Total profit this fiscal year adds up to around $500 million. 

Peabody Energy went into bankruptcy in 2016, weighed down by billions in debt partially due an investment made in Australian metallurgical coal. In 2015, the company also saw $2 billion in losses. This past April, the company came out of bankruptcy.  

Peabody Energy announced a huge increase in revenue for its first quarter of 2017. Many see this as a victory for the struggling energy industry, while some don’t believe it will last.

 

Peabody Energy is the largest coal mining firm in the world. They went bankrupt the first quarter of last year. At their Wyoming complex, the company laid off 15% of their workforce. 

Nearly a year after filing, Peabody Coal has emerged from bankruptcy by reducing its debt by$5 billion and by providing third party bonding for mine restoration. That’s according to a company press release this week.

Rob Godby, director at the Center for Energy Economics and Public Policy, said the key was a reduction in the company's costs in Australia. According to Godby, Peabody sank a lot of debt into expanding its market there, but that was only one reason they went bankrupt.

Aaron Schrank

Amid a wave of historic coal bankruptcies, states like Texas and Colorado have taken proactive steps to make sure coal companies are on the hook for their future cleanup costs while in Wyoming, over $1 billion of these cleanup costs have gotten tied up in bankruptcy court.

Why are there different outcomes in different energy-rich states?

Coal giant Peabody Energy is asking a bankruptcy court to approve up to $11.9 million in bonuses for six top executives.

Coal Dependent School Budgets In Crisis

Jul 29, 2016
Ann Marie Awad / KUNC

  

This story originally aired on Inside Energy partner station KUNC. 

Colorado's coal country is experiencing the same slump that is gripping the heart of more traditional mining locales, like Wyoming or West Virginia.

"We see the trains and we hear the trains, and they used to be often. Daily," says Darci Mohr, the superintendent for South Routt County School District. "Now we hear one every five to six days."

STEPHANIE JOYCE / WYOMING PUBLIC RADIO

On April 1, 2016, Frank Thompson lost his job as a mechanic at Peabody Energy’s North Antelope Rochelle mine. He was one of almost 500 coal miners laid off that day by Peabody and its competitor, Arch Coal. At the time, Thompson, who is a single dad, was most concerned about what being laid off would mean for his son.

"He’s seven years old, so he kind of sees it as some time to hang out," he told Inside Energy's Stephanie Joyce. "But I don’t think he really realizes that this could be us moving away from here."

Peabody Energy / Wikimedia Commons

Peabody Energy has reached a deal with regulators in several states over its outstanding cleanup obligations. 

Peabody declared bankruptcy in April with more than $1 billion in self-bonded reclamation obligations at its mines in Wyoming, Indiana, New Mexico and Illinois. Self-bonding means the company has promised that it will meet its future clean-up obligations, but has not put up any financial guarantees to secure that promise. Peabody has more than $700 million in self-bonded reclamation in Wyoming alone. 

A federal bankruptcy court judge gave Peabody Energy the go-ahead on Wednesday to pay nearly $30 million in property taxes in four states while the company makes its way through bankruptcy.

Peabody Energy can now make payments to counties in Wyoming, Colorado, New Mexico, and Indiana. One missed payment of around $1 million hit a small Colorado school district particularly hard. The state had to dip into its emergency fund to bail out the South Routt School District after taxes were not paid in June.

With three of the four largest American coal companies in bankruptcy, a federal regulator gave a blunt assessment today of potential problems with future coal mine clean up. The Office of Surface Mining, Reclamation, and Enforcement (OSMRE) is asking for public comment on how to make sure that coal mine reclamation is paid for.  

 

ecowatch.com

The largest coal producer in Wyoming declared bankruptcy this week. Companies like Arch Coal, and Alpha Natural Resources have done so as well over the past year, but this filing is particularly symbolic of the industry’s struggles, because of the company’s size. Peabody Energy is the largest privately-owned coal company in the world. Our Inside Energy reporter Leigh Paterson joins Bob Beck. 

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What does bankruptcy actually mean on the ground?

For now, not very much. In Chapter 11 bankruptcy a company reorganizes but doesn’t shut down. In a statement, Peabody said it plans to continue operating its mines as usual while it restructures.

GOOGLE EARTH

Peabody Energy, the world’s largest private-sector coal company, filed for Chapter 11 bankruptcy protection Wednesday. The filing comes on the heels of several other bankruptcy declarations from major coal companies, including Arch Coal and Alpha Natural Resources.

Just a few days after hundreds of workers were laid off at two Wyoming coal mines, another company offered buyouts to some of its employees. 

Cloud Peak Energy announced last week that it is offering what's called a voluntary separation benefit. The company wouldn't give details on what's actually in the buyout but it is available to hourly employees who are either 65 years old or 55 and have been with the company for ten years.

GOOGLE EARTH

The country's two largest coal mines are each laying off roughly 15 percent of their employees. Peabody Energy and Arch Coal both announced the layoffs Thursday morning. The cuts will affect roughly 235 workers at Peabody’s North Antelope Rochelle mine and 230 at Arch's Black Thunder mine.

The layoffs are the first major cuts in Wyoming, which had, until now, avoided the job losses that have affected Appalachia.

Peabody Energy / Wikimedia Commons

Responding to a federal inquiry, the State of Wyoming defended itself against accusations that it is allowing coal giant Peabody Energy to continue operating in violation of mining regulations.

Department of Energy EIA

The ratings agency Standard and Poor's has dropped its credit rating for coal giant Peabody Energy to the lowest possible level, after the company failed to make a major interest payment last week.

Peabody has said it is in talks with its creditors and hopes to restructure its debt, but Standard and Poor's writes that it doesn't see a sustainable future for Peabody absent "comprehensive restructuring." In other words: bankruptcy.

ecowatch.com

In financial documents filed this week, one of the largest coal companies in the world warned that it may file for bankruptcy, in part, because the company may not be able to make upcoming debt payments.

Just this week, Peabody Energy missed around $70 million dollars worth of interest payments and instead chose to take advantage of a 30-day grace period. 

Coal giant Peabody Energy announced plans to cut jobs at its Caballo and Rawhide mines near Gillette Thursday.

The company won't say how many people will lose their jobs. It released this statement: “In response to market conditions and customer needs, Peabody has implemented a small number of job reductions at its Caballo and Rawhide Mines. We regret the effect of these actions on employees and their families, and the company is taking steps to ease the transition through severance and outplacement support for those impacted.”

Peabody Energy / Wikimedia Commons

Peabody Energy, one of Wyoming’s largest coal producers, appears to be teetering on the brink of bankruptcy.

The federal government notified regulators in Wyoming, Colorado, and New Mexico this week that one of the world's largest coal companies may be out of compliance with coal mining regulations. 

The coal industry's slide continues as one of the nation's largest producers reported a loss of over $2 billion in 2015. 

Peabody Energy has extensive mining operations across the US and Australia. But its stock price plummeted in 2015 and the company’s Wyoming coal production was down around four percent from the year before. During the company's quarterly earnings call, executives broke with tradition and declined to take questions due to quote sensitive timing. Here’s CEO Glenn Kellow.

  

The New York attorney general and Peabody Energy have come to an agreement over the company’s disclosures related to climate change.

The attorney general’s office launched the investigation in 2007. Over the weekend, the office agreed to drop the investigation if Peabody includes certain disclosures about the risks of climate change in its future filings with regulators.

Amid low prices and weak demand, Peabody Energy has withdrawn an application to lease additional coal on federal land in the Powder River Basin.

Companies nominate coal tracts for leasing and then are invited to bid on them at auction. Peabody expressed interest the Antelope Ridge tracts back in 2011. They contain an estimated one billion tons of coal.

The company withdrew its application last month. The move follows a recent drop-off in federal coal sales in Wyoming—there hasn’t been one since 2012. Arch Coal also pulled one of its applications earlier this year.

Stephanie Joyce

The losses are continuing to mount as more coal companies report their second quarter earnings.

Cloud Peak Energy announced a $53 million loss for the quarter Wednesday, while Arch Coal reported a $168 million dollar loss Thursday, following on the heels of Peabody Energy's $1 billion loss on Monday.

Peabody Energy / Wikimedia Commons

Peabody Energy suspended its shareholder dividends Tuesday after announcing a $1 billion dollar second quarter loss—the latest in a streak of bad earnings reports.

Peabody is the world’s largest coal miner, with operations in Australia and across the US. Like many of its peers, it's been hammered recently by low natural gas prices, slumping demand for metallurgical coal and uncertainty surrounding new environmental regulations.

Peabody Energy / Wikimedia Commons

In an effort to cut costs amid weak coal prices, St. Louis-based Peabody Energy is laying off 250 corporate workers, including 20 in Gillette. 

“While we regret the impact that these actions have on employees, their families and communities, today’s announcement represents another necessary step to drive the company lower on the cost curve,” CEO Glenn Kellow said in a statement.

Leigh Paterson / Inside Energy

Today, the largest coal company in the U.S. announced that it is considering selling assets, including in Wyoming’s Powder River Basin,  as a way to deal with the depressed coal market. 

Peabody Energy Corporation posted larger than expected first quarter losses and is exploring ways to cut costs. Options include selling coal reserves and land holdings in both Australia and the U.S. Company CEO, Greg Boyce spoke at an energy conference in Houston. He emphasized that all assets are under review. 

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