Letter From President and Chief Executive Officer
To Our Stakeholders:
Peabody President &
Chief Executive Officer
Against a highly challenging backdrop in 2016, Peabody’s 6,700 employees continued to supply affordable, reliable coal that fuels electricity generation around the world and provides the essential building blocks of steel for vibrant and growing communities. This past year, we also continued to be a leading voice in advocating for sustainable mining, energy access and clean coal technologies – what we call “Coal Done Right.”
At Peabody, we strive to live our mission and abide by our values, which are core to our character as individual employees and guide our daily actions and business decisions. I like to think that Peabody has the best team in the industry, one that steadfastly drives toward continuous improvement in safety, productivity, costs, coal mine restoration, strengthening our financial position and shaping our portfolio.
2016 marked notable achievements for Peabody, as we recorded the safest year in our company’s history, received recognition as the first company to receive independent certification under the U.S. National Mining Association’s CORESafety® system and were honored with an international award as the most responsible global mining company by Capital Finance International. We accelerated land restoration with 6,450 acres of mined lands reclaimed, continued improvement in reduction of greenhouse gas emissions and generated $9.7 billion in direct and indirect economic benefits in the communities where we operate.
Last year also marked the height of unparalleled challenges and an extended downturn for the coal industry and, in April 2016, Peabody sought protection under Chapter 11 of the U.S. Bankruptcy Code. While we recognize that the Chapter 11 process was challenging for a number of stakeholders, our team worked diligently to reach many important milestones that resulted in successful emergence on April 3, 2017, less than one year after filing. During this time, Peabody continued to mine coal safely, served global coal customers, secured third-party land bonding assurances and minimized impacts to employees and communities. Ultimately, we carried 20 of 20 voting classes for our plan of reorganization and obtained 93 percent approval. As we emerged, we arranged for all employees to be granted restricted stock units in the new company to further align us all toward a shared future and a stronger Peabody.
Together, we are eager to advance the next phase in Peabody’s 134-year history as “The New BTU,” to further distinguish Peabody as a values-driven organization, reliant upon each individual in our outstanding workforce to demonstrate excellence in not only what we do, but how we do it.
We recognize that our role as the world’s largest private-sector coal company brings enormous benefits to stakeholders and also carries forward great responsibility. We greatly appreciate the support of the many groups who help make Peabody successful, and we look forward to accomplishing our goals in a way that can make each of you proud in 2017. This is the Peabody Way. It is Coal Done Right.
Peabody President & Chief Executive Officer