Peabody Energy (NYSE: BTU) reported Q1 EPS of ($1.31), $0.30 worse than the analyst estimate of ($1.01). Revenue for the quarter came in at $846.2 million versus the consensus estimate of $830.97 million.

"During this time of great global concern and economic uncertainty, we are continually working to safeguard our people, communities and business as we pursue actions to confront near-term headwinds and best position our company for the future," said President and Chief Executive Officer Glenn Kellow. "In recent months, we have taken aggressive actions to improve our cost structure, and are now expediting a detailed mine-by-mine analysis to structurally improve our operating portfolio with accountability for performance targets extending from individual sites to the board level. Our Peabody people will drive our success, and I continue to be impressed and grateful for their ability to quickly adapt to change and confront challenges head on."

Outlook

Given uncertainties with respect to COVID-19, including the duration, severity, scope, and necessary government actions to limit the spread, Peabody has decided to suspend full-year 2020 guidance.

Within its seaborne metallurgical segment, the Company is proceeding with the main line conveyor system upgrade at Shoal Creek and has recently resumed mining at Metropolitan following a longwall move in the first quarter. Coppabella is currently mining through a lower-ratio pit, which is anticipated to mitigate increased costs associated with a major dragline repair slated for the second quarter.

Within its seaborne thermal segment, Peabody currently has 3.2 million short tons of export thermal coal priced for the remainder of the year.

In the U.S., Peabody's contractual sales agreements include a blend of fixed volume commitments, as well as requirements and options contracts that allow customers to have some volume flexibility. Based on current customer nominations, Peabody now has 88 million tons of PRB coal priced and 19 million tons of other U.S. thermal coal priced for delivery in 2020. Ultimately, deliveries will be dependent on general economic conditions, weather, natural gas prices and other factors. Peabody continues to closely monitor volumes and is aggressively protecting its contractual rights.

Based on actions to date, 2020 SG&A has been reduced to approximately $120 million. Capital expenditures have been reduced to approximately $235 million and are focused on sustaining and compliance activities, joint venture commitments or mid-stream projects with rapid cash paybacks. ARO cash spend has also been reduced to approximately $60 million for 2020.

Peabody expects to realize lower fuel prices and Australian dollar exchange rates. Peabody also plans to accelerate the collection of its remaining alternative minimum tax refund of approximately $24 million to 2020 and to defer approximately $18 million of 2020 employer FICA tax payments to 2020 and 2021 under the CARES Act.

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