Energy · Profile from Energy Research Companion
Peabody Energy
The largest coal miner in the United States, founded in Chicago in 1883 as a retail coal merchant and grown into an owner of the Powder River Basin's giant surface mines in Wyoming. It passed through the hands of Kennecott, an industrial consortium, Hanson and Lehman Brothers before listing on the New York Stock Exchange in 2001. It then made two of the classic top-of-cycle moves in mining: it spun off its Appalachian and Illinois retiree liabilities as Patriot Coal (2007), and it bought Australia's Macarthur Coal at the peak of the metallurgical-coal boom (2011, ~A$4.7–4.9bn, ~$5bn). When US power plants switched to shale gas and Chinese demand stalled, Peabody filed for Chapter 11 on 13 April 2016 — then the largest US coal bankruptcy — and emerged on 3 April 2017 with its shareholders wiped out. Since then it has been run for cash: a regulator blocked its Powder River Basin joint venture with Arch (2020), the 2022 price spike let it retire all its secured debt, and its attempt to buy Anglo American's Queensland met-coal mines for up to ~$3.78bn (November 2024) ended in a termination and an arbitration (August 2025 onwards). In 2025 it sold ~122m short tons of coal and posted a small net loss (company).
At a glance
- Founded
- 1883, Chicago, by Francis S. Peabody as a coal retailer (Peabody, Daniels & Co., company history); Peabody Coal Company; renamed Peabody Energy in 2001
- Headquarters
- St. Louis, Missouri, US; Australian operations run from Brisbane
- Ownership / structure
- Listed (NYSE: BTU). Previously owned by Kennecott Copper (1968–77), a consortium led by Newmont (Peabody Holding, 1977–90), Hanson plc (1990–97), The Energy Group (1997–98) and Lehman Brothers Merchant Banking (1998–2001). Pre-2016 equity cancelled in Chapter 11; post-emergence owners initially included the creditor funds that backstopped the plan (Elliott, Aurelius and others, reported)
- Leadership (2026)
- Jim Grech (president and CEO since 1 June 2023; previously chief commercial officer); Glenn Kellow (CEO May 2015–May 2023, led the company through Chapter 11); Bob Malone (chair, verify 2026); Mark Spurbeck (CFO, verify 2026)
- Segments
- Seaborne Thermal (Wilpinjong and Wambo open-cut in New South Wales); Seaborne Metallurgical (Centurion, Coppabella–Moorvale in Queensland; Metropolitan in New South Wales; Shoal Creek in Alabama); Powder River Basin (North Antelope Rochelle, Caballo, Rawhide in Wyoming); Other US Thermal (Illinois Basin — Bear Run, Gateway North, Wild Boar; Twentymile, Colorado; El Segundo, New Mexico)
- Scale
- 2025: ~122.0m short tons sold (+3.4%), of which PRB ~84.5m tons at ~$13.64/ton; revenue ~$3.86bn (−8.9%); Adjusted EBITDA ~$454.9m (vs ~$871.7m in 2024); net loss attributable ~$52.9m ($0.43/share), including ~$78.9m of costs for the terminated Anglo deal (company, Feb 2026). Q3 2026: net loss attributable ~$32.8m ($0.27/share) against ~$70.1m a year earlier; all segments positive Adjusted EBITDA (company, 4 Nov 2026)
- Debt
- Funded debt cut to near zero after 2022: all remaining senior secured debt (~$545m) retired in Q4 2022, >$1.1bn repaid in 2022; ~$1.31bn cash at end-2022 (company). Large off-balance-sheet obligations remain in reclamation bonding and retiree and pension liabilities (verify 2026 totals)
- Signature moves (incl. failures)
- 1883 founding and Chicago coal retail; Lehman buyout (1998) and NYSE IPO (2001); Patriot Coal spin-off (2007); Macarthur Coal (2011); Chapter 11 (2016) and emergence (2017); North Goonyella fire (2018) and the Centurion rebuild; the Arch PRB joint venture blocked by the FTC (2020); the 2022 windfall and debt paydown; the Anglo American met-coal deal and its termination (2024–26)
9 strategic moves analysed
Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.
1883
Founding and Chicago Coal Retail
Founding
2001
Lehman Buyout and NYSE IPO
Spin-off or IPO (preceded by a leveraged buyout)
2007
Patriot Coal Spin Off
Spin-off (with transfer of legacy liabilities)
2011
Macarthur Coal Acquisition
Acquisition (top-of-cycle; failure in hindsight)
2016
Chapter 11 and 2017 Emergence
Restructuring or bankruptcy
2018
North Goonyella Fire and Centurion
Accident or disaster → construction or commissioning (redevelopment as Centurion)
2020
Arch JV Blocked by FTC
Regulatory or legal action (blocked joint venture)
2022
Windfall and Debt Paydown
Financing / capital allocation (debt retirement from a price windfall)
2024
Anglo American Met Coal Deal and Termination
Acquisition or merger (agreed, then terminated) → regulatory or legal action (arbitration)