Peabody Energy: After A Bad Q1, Paying 3x FCF Is Probably Cheap Enough
Peabody Energy should be benefitting from soaring coal prices. However, surprisingly it's not. For Q1 2022, Peabody should be reporting strong free cash flows, yet it's reported losses. Peabody Energy should be paying out a special dividend right now. Instead, it just diluted shareholders to cover a margin call. All that being said, I believe that paying approximately 2x to 3x free cash flows is cheap enough for a diversified portfolio of energy stocks. As always, happy to discuss my thesis further.