PERIOD ENDED DECEMBER 31, 2003 Annual ... - Peabody Energy

More documents

Recommendations

Info

‘The World’s BestCoal Company’Rock solid. It’s proven by a wall ofcoal 80 feet high at the largest coalmine in North America. It’s provenby the progress and prospects ofPeabody Energy, the world’s largest2coal company. And it’s proven byrecognition like the “Coal Companyof the Year” Award by Platts andBusiness Week at the 2003 GlobalEnergy Awards.31(In Millions)20032002ChangeRevenues $2,829.5 $ 2,717.1 4.1%1Operating Profit $ 144.8 $ 173.7 (16.6%)Adjusted EBITDA$410.3$406.11.0%Interest Expense $ 98.5 $ 102.5 (3.8%)Income2Financial Highlights$81.7$105.5(22.6%)Stockholders’ Equity $1,132.1 $1,081.1 4.7%Market Capitalization $ 2,279 $ 1,531 48.8%312002 includes$37.1 million benefit fromcontract settlements.2Adjusted EBITDA is definedas income from continuingoperations before deductingnet interest expense, earlydebt extinguishmentcharges, income taxes,minority interests, assetretirement obligationexpense, and depletion,depreciation and amortization.32003 excludes $50.3 millionin after-tax debt extinguishmentcharges and cumulativeeffects of accounting changes.2000 and 2001 excludediscontinued operations.Table of ContentsFinancial Highlights 1Sales Volume(Tons in Millions)Revenues(In Millions)Adjusted EBITDA(In Millions)2Income(In Millions)3Chairman’s Message 2Strategy 1:Manage Safe, Low-Cost Operations 8Strategy 2:Apply World-Class Sales & Trading Skills 12Strategy 3:Manage Our Vast Resource Position 16176194198203$2,323$2,589$2,717$2,829$331$381$406$410$106$82Peabody, Energy & the Environment 20Selected Financial Data 28Management’s Discussion & Analysis 29Report of Management &Report of Independent Auditors 39Financial Statements 40Notes to Financial Statements 44Board of Directors & Executives 76$(61)$16Investor Information 772000 2001 2002 20032000 2001 2002 20032000 2001 2002 20032000 2001 2002 20031
Peabody Energy Corporation (NYSE: BTU) is the world’sOur MissionOur StrategiesOur Accomplishmentslargest coal company. Our products fuel approximately9.8 percent of America’s electricity and nearly2.5 percent of the world’s electricity. BTU’s share pricerose 49 percent from our May 2001 initial public offeringthrough December 2003, far outpacing the S&P 500 ®and other major public coal companies.Peabody’s mission is to be aworldwide supplier of low-costenergy, which contributes toeconomic prosperity and a betterquality of life.We are committed to rewardingshareholders with superior earningsperformance and sustainedearnings growth.We operate under three strategiesto create value:Strategy 1Managing safe, low-cost operationsStrategy 2Applying world-class salesand trading techniquesStrategy 3Aggressively managing our vastnatural resource positionIn 2003, Peabody:■ Achieved a total shareholderreturn of 45 percent■ Met management’s Adjusted EBITDAand earnings targets every quarter■ Set an industry record withcoal sales of 203.2 million tons■ Improved our safety accidentrate another 18 percent■ Operated the most productivemine in America and three ofthe six most productive mines■ Purchased the remaining18 percent of Black BeautyCoal CompanyBTU Share Price Performance■ Announced preliminaryagreements to acquire mines inAustralia, Colorado and Venezuela50403020BTU+49.0%■ Lowered interest expensethrough a $1.7 billion refinancing■ Received four outstandingreclamation and community10awards from the U.S. DepartmentPercent Change0-10-20-30-40-50S&P 500 ®-15.3%of the InteriorMay 21,2001, IPODec. 31,2001Dec. 31,2002Dec. 31,2003(FOLDOUT)
Page 1: PEABODY ENERGY 2003 Annual ReportPE
Page 6 and 7: Peabody Energy is positioned to gro
Page 8 and 9: The Rocklick preparationfacility in
Page 10: In the midst of the robust coal mar
Page 14 and 15: Peabody, Energy & the EnvironmentPe
Page 16: The Goal: Near-Zero EmissionsTechno

PERIOD ENDED DECEMBER 31, 2003 Annual ... - Peabody Energy

Create successful ePaper yourself

Delete template?

Save as template?