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Peabody Energy’s 4Q14 and fiscal 2014 earnings

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Peabody Energy’s 4Q14 and fiscal 2014 earnings

Peabody Energy Corporation (BTU) released its 4Q14 and fiscal 2014 earnings on January 27, 2015. We’ll update you on these results in this series. Before moving on to the company’s performance, let’s take a quick look at the company’s operations.

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Biggest thermal coal producer in the US

According to Peabody Energy (BTU), it is the world’s largest private-sector coal company, with coal operations in the US and Australia. Combined, these operations serve customers in 25 countries. As of December 31, 2013, Peabody Energy controlled over 8.3 billion tons of coal reserves. Of these, ~7.3 billion tons of thermal-grade coal reserves are located in the US.

Peabody Energy is part of the iShares Russell 3000 ETF (IWV), along with other US coal producers that include Cloud Peak Energy (CLD), Alpha Natural Resources (ANR), and Arch Coal (ACI).

Peabody Energy’s operations

Peabody Energy is the largest reserve holder and producer in the Powder River Basin (or PRB) and the Illinois Basin. The company also operates in the Southwest and in Colorado. It owns three mines in the PRB, including the largest mine in the world—the North Antelope Rochelle Mine in Wyoming. The Southwest operations include three mines.

The company’s Illinois Basin and Colorado operations include 11 mines. BTU produces only thermal coal in the US. The company also operates in Australia, where it produces thermal coal and metallurgical coal, also called met coal, used in steelmaking.

The Australian mining operations focus on exporting metallurgical and thermal coal to developing Asian countries such as India and China.

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