Peabody Energy's Q1 2025: Key Contradictions on Moranbah North's MAC, Longwall Restart Delays, and Seaborne Thermal Sales

Material Adverse Change (MAC) classification and implications at Moranbah North, delayed Longwall restart at Shoal Creek, expectations for Seaborne Thermal sales volumes, and interpretation of the Material Adverse Change at Moranbah North are the key contradictions discussed in Peabody Energy's latest 2025Q1 earnings call.



Strong Financial Performance:
- Peabody Energy reported net income of $34 million in Q1 2025, with an adjusted EBITDA of $144 million.
- The strong financial performance was driven by favorable cost performance across all segments and better-than-anticipated volumes in the Seaborne Thermal platform.

U.S. Coal Demand and Contracts:
- Peabody signed a long-term agreement with Associated Electric Cooperative to supply over 50 million tons of premium Powder River Basin coal over seven years.
- This agreement reflects substantial U.S. coal demand and is likely to continue, driven by rising electricity demand and the need for reliable power supply.

Centurion Mine Development:
- Centurion Mine is projected to have a low cost structure and high realizations, expected to be operational by early 2026.
- The project is ahead of schedule and expected to contribute significantly to Peabody's margins, driven by the mine's strategic position and strong financial backing.

Anglo American Acquisition Challenges:
- Peabody notified Anglo American of a material adverse change related to Moranbah North Mine, impacting their planned acquisition.
- The issues include uncertainties around resuming longwall production, which could delay or potentially impact the acquisition, affecting Peabody's strategic plans.