Peabody Energy shares drop on derivative margin payments

Peabody Energy Corp.
BTU,
-14.76%
shares fell 7.7% Monday after the company said it posted $534 million since Dec. 31 to satisfy margin requirements. The company also announced a $150 million unsecured multiple draw credit facility with Goldman Sachs Group Inc.
GS,
-1.65%.
The financing will support Peabody Energy’s potential near-term liquidity requirements in case of of additional increases in underlying coal prices. Peabody Energy said high demand and tight supply for coal has been amplified by the Russian-Ukrainian conflict resulting in “unprecedented upward volatility” in pricing of Newcastle coal, the price benchmark for seaborne thermal coal in the Asia-Pacific region. Other than 1.9 million metric tons at its Wambo Underground Mine in Australia priced at $84 per metric ton, export sales from Peabody’s seaborne thermal segment are largely unpriced and will benefit if the current pricing environment persists, Peabody said.