Peabody Reports Earnings For Quarter Ended June 30, 2017; Formalizes Debt Reduction And Capital Return Initiatives

ST. LOUIS, Aug. 1, 2017 /PRNewswire/ -- Peabody (NYSE: BTU) announced today its second quarter 2017 operating results including revenues of $1.26 billion, income from continuing operations net of income taxes of $101.4 million, net loss attributable to common stockholders of $20.2 million driven by accelerated dividends due to conversion of preferred shares, and Adjusted EBITDA(1) of $317.8 million.

The company's plan of reorganization was effective as of April 3, 2017, and Peabody adopted fresh-start reporting as of April 1, 2017. All operational results for the quarter ended June 30, 2017 are recorded on the successor financial statements, with the quarterly impacts of the company's reorganization recorded on the predecessor financial statements. As required by fresh-start reporting, the company revalued its balance sheet consistent with its plan value and therefore certain financial statement items are not comparable to prior periods. However, revenues and Adjusted EBITDA were largely unaffected by fresh-start reporting and are therefore generally comparable to prior periods.

"We're off to a running start with the strength of the diversified Peabody portfolio demonstrated in the second quarter, as Australian and U.S. platforms generated robust, balanced contributions even in the face of limited metallurgical coal sales due to Cyclone Debbie," said President and Chief Executive Officer Glenn Kellow. "We outlined an ambitious agenda and are pleased to have delivered on all fronts. Given that our cash position and outlook has further strengthened in the past quarter, we have taken tangible steps to accelerate our debt reduction while also authorizing a $500 million share repurchase program."

Second Quarter 2017 Results

Revenues for the second quarter rose 21 percent to $1.26 billion from $1.04 billion. U.S. volumes increased 23 percent from the second quarter of 2016 on improved demand largely driven by higher natural gas prices.

Australian metallurgical and thermal revenues per ton(1) increased 114 percent and 41 percent, respectively, over the same period in 2016, despite lower volumes primarily related to the effects of Cyclone Debbie.

Income from continuing operations net of income taxes totaled $101.4 million and included $148.3 million of depreciation, depletion and amortization (DD&A) and $41.4 million in interest expense. DD&A includes $29.7 million of expense related to the amortization of certain U.S. coal supply agreements.

Preferred stock dividends totaled $115.1 million and included the non-cash impact of the three-year make-whole paid-in-kind dividends for the 39 percent of preferred stock that was converted to common stock during the quarter, resulting in net loss attributable to common stockholders of $20.2 million.

Second quarter Adjusted EBITDA increased $245.2 million from the same period in the prior year to $317.8 million, led by the Australian platform, which outpaced U.S. contributions and contributed an additional $181.6 million over the prior year.

Within Adjusted EBITDA:

    --  U.S. Adjusted EBITDA rose $14.1 million to $176.2 million driven by 23
        percent higher volumes. Costs per ton(1) improved nearly a dollar per
        ton primarily due to a higher mix of low-cost Powder River Basin volumes
        and continued focus on costs in the Western segment.




    --  Australian Adjusted EBITDA increased $181.6 million to $177.8 million on
        improved seaborne pricing driven by supply and demand dynamics in the
        Asia-Pacific region. Sales volumes totaled 6.6 million tons, including
        2.0 million tons of metallurgical coal sold at an average price of
        $145.31 per ton and 2.8 million tons of export thermal coal sold at an
        average price of $70.37 per ton, with the remainder delivered under
        domestic contracts. As expected, Peabody worked through the effects of
        rail disruptions caused by Cyclone Debbie, which temporarily reduced
        sales volumes by approximately 1.2 million tons and impacted Adjusted
        EBITDA by $40 million to $50 million.  Metallurgical coal sales volumes
        were back-end loaded in the second quarter with 1.3 million tons shipped
        in June alone.  Metallurgical production volumes remained strong at 2.8
        million tons for the quarter, outpacing sales volumes and providing the
        opportunity for increased sales and lower costs per ton in the second
        half of the year.  Australian thermal led the company's mining segments
        with record margins of 44 percent and Adjusted EBITDA of $105.9 million,
        reflecting solid seaborne coal pricing and low costs.

Liquidity at quarter end totaled $1.174 billion, including $1.096 billion in cash and cash equivalents and $78.5 million of accounts receivable securitization capacity. In addition, at quarter end, the company had $561.7 million in Restricted Cash Collateral associated with the company's coal mine restoration obligations and other activities. Peabody made progress in its initiative to free cash collateral during the second quarter, releasing $113 million that had primarily supported letters of credit under its accounts receivable securitization facility and a contract with a domestic Australian customer.

Peabody's cash position improved $27.6 million from March 31 through June 30, 2017, including the release of $113.0 million from restricted cash to available cash. Accounts receivable and inventories increased approximately $150 million for the three months due to higher sales in June and elevated inventory levels following Cyclone Debbie. In addition, as expected, Peabody paid approximately $180 million in Chapter 11 exit costs and settlements related to the company's plan of reorganization.

Following emergence from Chapter 11, Peabody now has more than $4 billion of U.S. net operating loss carryforwards as well as a previously announced sizable net operating loss position in Australia. As a result, Peabody expects modest annual U.S. cash tax outlays of $5 million to $10 million in coming years. In Australia, Peabody's expects limited cash taxes due to its net operating loss position, with the exception of taxes due on the company's incorporated joint venture earnings.

Note: All comparisons are to second quarter 2016 unless otherwise noted.

(1) Adjusted EBITDA, costs per ton and revenues per ton are non-GAAP financial measures. Please refer to the tables and related notes in this press release for a reconciliation of non-GAAP financial measures.

Financial Approach

Peabody today also announced its debt reduction and shareholder return initiatives following thorough discussions with current and potential investors, bond holders and advisors.

"We are pleased to accelerate our debt reduction activities and authorize a share repurchase program recognizing the strength of our second quarter earnings and steps taken by the organization to optimize future cash flows," said Executive Vice President and Chief Financial Officer Amy Schwetz. "Our simple, but powerful financial approach is to generate cash, reduce debt, invest wisely, and return that cash to shareholders. Based on our robust cash profile, we have established a capital structure that we believe is both flexible and sustainable throughout the cycle."

    --  Liquidity Targets: Taking into account variability of pricing and cash
        flows and the ability to withstand cyclical downdrafts, the company
        believes the appropriate level of liquidity currently is approximately
        $800 million. Today, the company's liquidity is predominately in the
        form of unrestricted cash. The company will continue to evaluate
        alternative sources of liquidity, including the potential addition of a
        revolving credit facility, to reduce required cash needs on the balance
        sheet.


    --  Debt Targets: Peabody is committed to a more sustainable capital
        structure across cycles, and the company's comfort level with debt is
        based upon its expected cash generation from its diverse portfolio of
        products and coal supply agreements. Based on that evaluation, the
        company is committed to deleveraging its balance sheet with a gross debt
        target of $1.2 billion to $1.4 billion over time.




    --  Deleveraging: Peabody believes deleveraging benefits shareholders by
        moderating the company's risk profile, lowering interest expense and
        transferring enterprise value from debt to market capitalization.
        Additionally, an improved balance sheet should give Peabody the
        flexibility to repurpose cash currently restricted for collateral
        purposes. Peabody was able to free $113 million of restricted cash in
        the second quarter, and as the company's financial profile improves over
        time, the company will be better positioned to further release
        restricted cash for other uses.Peabody is targeting $500 million of debt
        reduction over 18 months, with $300 million of debt reduction expected
        to occur by year-end 2017.  As a first step toward this goal, Peabody
        made $150 million in voluntary payments of its term loan, leaving
        remaining debt of approximately $1.81 billion at present.  (Voluntary
        cash reduction is credited against the excess cash flow sweep features
        of the company's credit agreement.)






    --  Return of Capital to Shareholders: Peabody is targeting strong cash
        levels, modest sustaining capital expenditures, declining interest
        expense from debt reduction, and lower than anticipated tax outflows as
        a result of its substantial net operating loss carryforward position in
        the U.S. and Australia. In addition to enhancing shareholder returns
        from deleveraging the balance sheet, the company expects to utilize
        excess cash flows to invest in its own stock. The company's board of
        directors has authorized a $500 million share repurchase program
        effective immediately.   As part of the analysis on returning capital to
        shareholders, Peabody considered both share repurchases and dividends. 
        The company believes that share repurchases represent an attractive
        investment opportunity and are an important part of Peabody's
        shareholder return initiatives.  In addition, the board of directors
        will regularly evaluate a sustainable dividend program, targeting
        commencement in the first quarter of 2018. Repurchases will be subject
        to limitations in the company's debt documents and may be made from time
        to time at the company's discretion.  The specific timing, price and
        size of purchases will depend on the share price, general market and
        economic conditions and other considerations.  No expiration date has
        been set for the repurchase program, and the program may be suspended or
        discontinued at any time.   The company intends to periodically evaluate
        the amount of cash available for shareholder returns in light of
        restrictions in its debt and equity documents, and may pursue means to
        obtain increased flexibility as appropriate.

Industry Fundamentals

Within the industry, U.S. coal demand remained strong through the first half of 2017 relative to the same period in the prior year, and seaborne coal fundamentals rebalanced following supply impacts from Cyclone Debbie in Australia and strong China coal import demand during the quarter.

In the U.S., coal consumption for electricity generation increased 6 percent year over year through June as natural gas generation declined 14 percent. The Powder River Basin represented the greatest growth in generation demand versus other coal producing regions, increasing 24 million tons during the first six months of 2017 over the prior year. Despite the shoulder season, Powder River Basin customer stockpiles declined to an estimated 57 days of maximum burn in June, a 17 percent decline from the same period in 2016.

Peabody continues to expect U.S. coal consumption from electricity generation to increase 30 to 40 million tons for full-year 2017 compared to 2016 levels. As anticipated, higher capacity utilization of U.S. coal plants is expected to offset the impact of approximately 15 million tons of lower demand as a result of coal plant retirements.

Within seaborne metallurgical coal, strong import demand has continued on steady growth in global steel production led by China. Through June, metallurgical coal imports in China rose 9 million tonnes, or 33 percent, led by improved GDP and a 5 percent increase in Chinese steel production driven by increased infrastructure and new construction. Peabody expects full-year 2017 seaborne metallurgical coal demand to increase 5 million to 10 million tonnes compared to 2016.

Australian metallurgical coal supplies recovered from disruptions due to Cyclone Debbie in late March, resulting in volatile metallurgical coal price moves from a high of $304 per tonne to a low of $139 per tonne before rebounding to approximately $175 per tonne in recent weeks. The second quarter benchmark price for hard coking coal was set at approximately $194 per tonne, using an index-based pricing mechanism that is likely to replace traditional settlement negotiations. In addition, Peabody set the low-vol PCI benchmark with a Japanese steel customer at $135 per tonne, more than 85 percent above the negotiated price in the second quarter of 2016.

With regard to global seaborne thermal coal, China coal import demand increased 16 million tonnes, or 20 percent, through June compared to the same period in the prior year as a result of strong generation, policy initiatives aimed to support domestic producers by sustaining coal prices, improving mine safety and rationalizing excess capacity. The increase in seaborne thermal demand in China more than offset import weakness in India resulting from elevated inventory levels at mines and utilities as well as strong hydro generation. The annual thermal coal settlement for the Japanese fiscal year beginning April 1 was set at $85 per tonne, up 37 percent compared to the 2016 settlement. Peabody expects full-year 2017 seaborne thermal coal demand to be roughly in line with 2016 levels driven by strong year-to-date Chinese imports.

Focus Areas

Peabody's near-term priorities include:

    --  Increasing Australian thermal coal shipments versus the second quarter
        of 2017.


    --  Ramping up metallurgical coal shipments on improved rail performance
        following Cyclone Debbie and the completion of the Metropolitan longwall
        move in the second quarter.


    --  Further executing on the company's newly formulated deleveraging and
        shareholder return initiatives.


    --  Following a review of long-term metallurgical coal mine planning,
        Peabody now expects to extend the life of its Moorvale Mine resulting in
        approximately 1.5 million tons of additional metallurgical coal
        production in 2021. The company continues to evaluate opportunities that
        could lead to stable metallurgical coal volumes over time and is working
        to improve productivity across the platform, particularly at the North
        Goonyella and Coppabella mines, which hold the company's largest
        metallurgical reserves.
    --  Delivering on our guidance targets, which remain largely unchanged and
        are included in the appendix of this release.

Other Items

During the application of fresh-start reporting, a non-cash error was identified that impacted previously reported results arising from the utilization of deferred tax liabilities to offset deferred tax assets between certain of the company's taxable groups when assessing valuation allowances in prior periods. The errors are not material to the financial statements, and the prior period amounts reflected in this press release have been adjusted to reflect the correction. This would have resulted in an increase in tax expense in 2013 of $251.3 million and a decrease in tax expense of $53.8 million, $30.7 million and $10.5 million in 2014, 2015 and 2016 (including interim periods), respectively. The cumulative effect of the changes to retained earnings as of December 31, 2016 was a reduction of $156.3 million, with a corresponding increase to deferred tax liabilities. These adjustments have no effects on Adjusted EBITDA and no effects on financial performance moving forward. Peabody currently has a full valuation allowance against both its U.S. and Australian consolidated group net deferred tax assets (including net operating losses) in its successor financial statements.

Today's earnings call is scheduled for 10 a.m. CDT, and will be accompanied by a presentation available at PeabodyEnergy.com.

Peabody is the world's largest private-sector coal company. The company is also a leading voice in advocating for sustainable mining, energy access and clean coal technologies. Peabody serves metallurgical and thermal coal customers in more than 25 countries on five continents. For further information, visit PeabodyEnergy.com.

Contact:

Investors
Vic Svec
314.342.7768

Media
Beth Sutton
928.221.6792


    Condensed Consolidated Statements of Operations (Unaudited)

    For the Quarters Ended Jun. 30, 2017 and 2016
     ---------------------------------------------


    (In Millions, Except
     Per Share Data)

                                                                           2017        2016
                                                                                    ----

                                               Successor                Predecessor              Predecessor
                                               ---------                -----------              -----------

                                            April 2 through               April 1               Quarter Ended
                                                                                                    June 30
                                                 June 30
                                                 -------



    Tons Sold                                          43.6                                   -                              39.8
                                                       ====                                 ===                              ====


    Revenues                                                   $1,258.3                                      $          -            $1,040.2

    Operating Costs and
     Expenses (1)                                     934.8                                   -                             996.2

    Depreciation,
     Depletion and
     Amortization                                     148.3                                   -                             115.9

    Asset Retirement
     Obligation Expenses                               11.0                                   -                              11.5

    Selling and
     Administrative
     Expenses                                          34.4                                   -                              34.2

    Restructuring Charges                                 -                                  -                               3.1

    Other Operating
     (Income) Loss:

    Net Gain on Disposal
     of Assets                                        (0.5)                                  -                            (13.7)

    (Income) Loss from
     Equity Affiliates                               (15.7)                                  -                               0.7
                                                      -----                                 ---                               ---

    Operating Profit
     (Loss)                                           146.0                                   -                           (107.7)

    Interest Expense                                   41.4                                   -                              59.0

    Interest Income                                   (1.5)                                  -                             (1.3)

    Reorganization Items,
     Net                                                  -                              585.8                               95.4
                                                        ---                              -----                               ----

    Income (Loss) from
     Continuing
     Operations Before
     Income Taxes                                     106.1                             (585.8)                           (260.8)

    Income Tax Provision
     (Benefit)                                          4.7                             (266.0)                            (37.6)
                                                        ---                              ------                              -----

    Income (Loss) from
     Continuing
     Operations, Net of
     Income Taxes                                     101.4                             (319.8)                           (223.2)

    Loss from
     Discontinued
     Operations, Net of
     Income Taxes                                     (2.7)                             (12.1)                             (3.0)
                                                       ----                               -----                               ----

    Net Income (Loss)                                  98.7                             (331.9)                           (226.2)

    Less: Series A
     Convertible
     Preferred Stock
     Dividends                                        115.1                                   -                                 -

    Less: Net Income
     Attributable to
     Noncontrolling
     Interests                                          3.8                                   -                               1.7

    Net Loss Attributable
     to Common
     Stockholders                                               $(20.2)                                         $(331.9)            $(227.9)
                                                                 ======                                           =======              =======


    Adjusted EBITDA (2)                                          $317.8                                      $          -               $72.6
                                                                 ======                                    ===        ===               =====


    Diluted EPS -Loss
     from Continuing
     Operations (3)(4)                                          $(0.18)                                         $(17.44)            $(12.30)
                                                                 ======                                           =======              =======


    Diluted EPS -Net
     Loss Attributable to
     Common Stockholders
     (3)                                                       $(0.21)                                         $(18.10)            $(12.46)
                                                                 ======                                           =======              =======


                      (1)    Excludes items shown
                              separately.


                      (2)    Adjusted EBITDA is a non-
                              GAAP measure defined as
                              income (loss) from
                              continuing operations
                              before deducting net
                              interest expense, income
                              taxes, asset retirement
                              obligation expenses,
                              depreciation, depletion
                              and amortization and
                              reorganization items,
                              net.  Adjusted EBITDA is
                              also adjusted for the
                              discrete items that
                              management excluded in
                              analyzing the segments'
                              operating performance as
                              displayed in the
                              reconciliation.  A
                              reconciliation of income
                              (loss) from continuing
                              operations, net of
                              income taxes to Adjusted
                              EBITDA is included at
                              the end of this
                              document. Adjusted
                              EBITDA is used by
                              management as one of the
                              primary metrics to
                              measure our operating
                              performance. Management
                              also believes non-U.S.
                              GAAP performance
                              measures are used by
                              investors to measure our
                              operating performance
                              and lenders to measure
                              our ability to incur and
                              service debt. Adjusted
                              EBITDA is not intended
                              to serve as an
                              alternative to U.S. GAAP
                              measures of performance
                              and may not be
                              comparable to similarly-
                              titled measures
                              presented by other
                              companies.


                      (3)    Weighted average diluted
                              shares outstanding were
                              96.8 million for the
                              Successor period April 2
                              through June 30, 2017
                              and 18.3 million for the
                              Predecessor periods
                              April 1, 2017 and the
                              quarter ended June 30,
                              2016, respectively.


                      (4)    Reflects income (loss)
                              from continuing
                              operations, net of
                              income taxes less
                              preferred stock
                              dividends and net income
                              attributable to
                              noncontrolling
                              interests.


    This information is intended to be reviewed in conjunction with the
     company's filings with the SEC.


    Condensed Consolidated Statements of Operations (Unaudited)

    For the Six Months Ended Jun. 30, 2017 and 2016
    -----------------------------------------------


    (In Millions, Except Per Share Data)

                                                                         2017                     2016
                                                                                               ----

                                               Successor                    Predecessor                   Predecessor
                                               ---------                    -----------                   -----------

                                            April 2 through             January 1 through              Six Months Ended
                                                                              April 1                       June 30
                                                 June 30
                                                 -------


    Tons Sold                                          43.6                               46.1                                 82.3
                                                       ====                               ====                                 ====


    Revenues                                                   $1,258.3                                           $1,326.2             $2,067.4

    Operating Costs and
     Expenses (1)                                     934.8                              963.7                              1,916.4

    Depreciation,
     Depletion and
     Amortization                                     148.3                              119.9                                227.7

    Asset Retirement
     Obligation Expenses                               11.0                               14.6                                 24.6

    Selling and
     Administrative
     Expenses                                          34.4                               37.2                                 82.5

    Restructuring Charges                                 -                                 -                                15.2

    Other Operating (Income) Loss:

    Net Gain on Disposal
     of Assets                                        (0.5)                            (22.8)                              (15.5)

    Asset Impairment                                      -                              30.5                                 17.2

    (Income) Loss from
     Equity Affiliates                               (15.7)                            (15.0)                                 9.7
                                                      -----                              -----                                  ---

    Operating Profit
     (Loss)                                           146.0                              198.1                              (210.4)

    Interest Expense                                   41.4                               32.9                                185.2

    Interest Income                                   (1.5)                             (2.7)                               (2.7)

    Reorganization Items,
     Net                                                  -                             627.2                                 95.4
                                                        ---                             -----                                 ----

    Income (Loss) from
     Continuing
     Operations Before
     Income Taxes                                     106.1                            (459.3)                             (488.3)

    Income Tax Provision
     (Benefit)                                          4.7                            (263.8)                              (97.4)
                                                        ---                             ------                                -----

    Income (Loss) from
     Continuing
     Operations, Net of
     Income Taxes                                     101.4                            (195.5)                             (390.9)

    Loss from
     Discontinued
     Operations, Net of
     Income Taxes                                     (2.7)                            (16.2)                               (6.4)
                                                       ----                              -----                                 ----

    Net Income (Loss)                                  98.7                            (211.7)                             (397.3)

    Less: Series A
     Convertible
     Preferred Stock
     Dividends                                        115.1                                  -                                   -

    Less: Net Income
     Attributable to
     Noncontrolling
     Interests                                          3.8                                4.8                                  1.7

    Net Loss Attributable
     to Common
     Stockholders                                               $(20.2)                                          $(216.5)            $(399.0)
                                                                 ======                                            =======              =======


    Adjusted EBITDA (2)                                          $317.8                                             $341.3               $107.8
                                                                 ======                                             ======               ======



    Diluted EPS -Loss
     from Continuing
     Operations (3)(4)                                          $(0.18)                                          $(10.93)            $(21.47)
                                                                 ======                                            =======              =======


    Diluted EPS -Net
     Loss Attributable to
     Common Stockholders
     (3)                                                       $(0.21)                                          $(11.81)            $(21.82)
                                                                 ======                                            =======              =======


                      (1)    Excludes items shown
                              separately.


                      (2)    Adjusted EBITDA is a non-
                              GAAP measure defined as
                              income (loss) from
                              continuing operations
                              before deducting net
                              interest expense, income
                              taxes, asset retirement
                              obligation expenses,
                              depreciation, depletion
                              and amortization and
                              reorganization items,
                              net.  Adjusted EBITDA is
                              also adjusted for the
                              discrete items that
                              management excluded in
                              analyzing the segments'
                              operating performance as
                              displayed in the
                              reconciliation.  A
                              reconciliation of income
                              (loss) from continuing
                              operations, net of
                              income taxes to Adjusted
                              EBITDA is included at
                              the end of this
                              document. Adjusted
                              EBITDA is used by
                              management as one of the
                              primary metrics to
                              measure our operating
                              performance. Management
                              also believes non-U.S.
                              GAAP performance
                              measures are used by
                              investors to measure our
                              operating performance
                              and lenders to measure
                              our ability to incur and
                              service debt. Adjusted
                              EBITDA is not intended
                              to serve as an
                              alternative to U.S. GAAP
                              measures of performance
                              and may not be
                              comparable to similarly-
                              titled measures
                              presented by other
                              companies.


                      (3)    Weighted average diluted
                              shares outstanding were
                              96.8 million for the
                              Successor period April 2
                              through June 30, 2017
                              and 18.3 million for the
                              Predecessor periods
                              January 1 through April
                              1, 2017 and the six
                              months ended June 30,
                              2016, respectively.


                      (4)    Reflects income (loss)
                              from continuing
                              operations, net of
                              income taxes less
                              preferred stock
                              dividends and net income
                              attributable to
                              noncontrolling
                              interests.


    This information is intended to be reviewed in conjunction with the
     company's filings with the SEC.


    Supplemental Financial Data (Unaudited)

    For the Quarters and Six Months Ended Jun. 30, 2017 and 2016
    ------------------------------------------------------------


                                                                   2017                    2016                                                2017                      2016
                                                                   ----                    ----

                                                             Successor            Predecessor           Successor                 Predecessor Combined               Predecessor
                                                             ---------            -----------           ---------                 ----------- --------               -----------

                                                               April 2              Quarter               April 2                  January 1              Six Months Ended
                                                               through           Ended June 30            through                   through
                                                               June 30                                    June 30                   April 1                    June 30
                                                               -------                                    -------                   -------

    Revenue Summary (In Millions)
    ----------------------------

                           Powder River Basin Mining
                           Operations                                     $365.4                                    $306.6                         $365.4                                  $394.3            $759.7   $642.6

                           Midwestern U.S. Mining
                           Operations                             194.9                           189.0                     194.9                               193.2              388.1             388.6

                          Western U.S. Mining Operations          125.4                           112.1                     125.4                               149.7              275.1             224.6
                                                                                                 -----                     -----                                                 -----             -----

                          Total U.S. Mining Operations            685.7                           607.7                     685.7                               737.2            1,422.9           1,255.8

                           Australian Metallurgical Mining
                           Operations                             287.8                           245.2                     287.8                               328.9              616.7             450.3

                           Australian Thermal Mining
                           Operations                             239.2                           186.8                     239.2                               224.8              464.0             363.5
                                                                                                 -----                     -----                                                 -----             -----

                           Total Australian Mining
                           Operations                             527.0                           432.0                     527.0                               553.7            1,080.7             813.8

                           Trading and Brokerage
                           Operations                               5.2                            17.5                       5.2                                15.0               20.2              13.8

                          Other                                    40.4                          (17.0)                     40.4                                20.3               60.7            (16.0)
                                                                                                                           ----                                ----               ----             -----

                            Total                                       $1,258.3                                  $1,040.2                       $1,258.3                                $1,326.2          $2,584.5 $2,067.4
                                                                        ========                                  ========                       ========                                ========          ======== ========


    Tons Sold (In Millions)
    ----------------------

                           Powder River Basin Mining
                           Operations                              28.5                            22.4                      28.5                                31.0               59.5              47.0

                           Midwestern U.S. Mining
                           Operations                               4.6                             4.4                       4.6                                 4.5                9.1               8.9

                          Western U.S. Mining Operations            3.2                             2.8                       3.2                                 3.4                6.6               5.7
                                                                    ---                             ---                       ---                                 ---                ---               ---

                          Total U.S. Mining Operations             36.3                            29.6                      36.3                                38.9               75.2              61.6

                           Australian Metallurgical Mining
                           Operations                               2.0                             3.6                       2.0                                 2.2                4.2               6.9

                           Australian Thermal Mining
                           Operations                               4.6                             5.2                       4.6                                 4.6                9.2              10.4
                                                                    ---                             ---                       ---                                 ---                ---              ----

                           Total Australian Mining
                           Operations                               6.6                             8.8                       6.6                                 6.8               13.4              17.3

                           Trading and Brokerage
                           Operations                               0.7                             1.4                       0.7                                 0.4                1.1               3.4
                                                                    ---                             ---                       ---                                 ---                ---               ---

                            Total                                  43.6                            39.8                      43.6                                46.1               89.7              82.3
                                                                   ====                            ====                      ====                                ====               ====              ====


    Revenues per Ton - Mining Operations (1)
    ---------------------------------------

                          Powder River Basin                              $12.84                                    $13.64                         $12.84                                  $12.70            $12.77   $13.66

                          Midwestern U.S.                         42.62                           42.89                     42.62                               42.96              42.79             43.69

                          Western U.S.                            38.91                           39.92                     38.91                               44.68              41.85             39.23

                          Total U.S.                              18.91                           20.46                     18.91                               18.96              18.93             20.37

                          Australian Metallurgical               145.31                           67.97                    145.31                              150.22             147.95             65.52

                          Australian Thermal                      51.52                           36.52                     51.52                               48.65              50.09             35.11

                          Total Australian                        79.54                           49.54                     79.54                               81.36              80.46             47.25


    Operating Costs per Ton - Mining Operations (1)(2)
    -------------------------------------------------

                          Powder River Basin                               $9.86                                    $10.05                          $9.86                                   $9.75             $9.80   $10.38

                          Midwestern U.S.                         32.45                           30.95                     32.45                               31.84              32.15             30.96

                          Western U.S.                            24.98                           29.64                     24.98                               29.76              27.41             30.68

                          Total U.S.                              14.05                           15.00                     14.05                               14.03              14.03             15.23

                          Australian Metallurgical               109.07                           81.62                    109.07                              100.16             104.39             78.10

                          Australian Thermal                      28.67                           27.64                     28.67                               32.27              30.49             26.58

                          Total Australian                        52.69                           49.98                     52.69                               54.15              53.43             47.15


    Gross Margin per Ton - Mining Operations (1)(2)
    ----------------------------------------------

                          Powder River Basin                               $2.98                                     $3.59                          $2.98                                   $2.95             $2.97    $3.28

                          Midwestern U.S.                         10.17                           11.94                     10.17                               11.12              10.64             12.73

                          Western U.S.                            13.93                           10.28                     13.93                               14.92              14.44              8.55

                          Total U.S.                               4.86                            5.46                      4.86                                4.93               4.90              5.14

                          Australian Metallurgical                36.24                         (13.65)                    36.24                               50.06              43.56           (12.58)

                          Australian Thermal                      22.85                            8.88                     22.85                               16.38              19.60              8.53

                          Total Australian                        26.85                          (0.44)                    26.85                               27.21              27.03              0.10


    Supplemental Financial Data (Unaudited)

    For the Quarters and Six Months Ended Jun. 30, 2017 and 2016
    ------------------------------------------------------------


                                                             2017         2016                                         2017                       2016
                                                             ----         ----                                                               ----

                                                        Successor Predecessor  Successor           Predecessor        Combined                Predecessor
                                                        --------- -----------  ---------           -----------        --------                -----------

                                                         April 2    Quarter     April 2            January 1                  Six Months Ended
                                                         through     Ended      through              through
                                                         June 30    June 30     June 30              April 1                      June 30
                                                         -------    -------     -------              -------

    Other Supplemental Financial Data
     (In Millions)
    ---------------------------------

    Adjusted EBITDA -
     Powder River Basin
     Mining Operations                                      $84.8                   $80.6                       $84.8                                                 $91.7              $176.5 $154.4

    Adjusted EBITDA -
     Midwestern U.S.
     Mining Operations                           46.5                     52.7                46.5                            50.0                              96.5               113.3

    Adjusted EBITDA -
     Western U.S. Mining
     Operations                                  44.9                     28.8                44.9                            50.0                              94.9                48.9
                                                 ----                     ----                ----                            ----                              ----                ----

      Total U.S. Mining
       Operations                               176.2                    162.1               176.2                           191.7                             367.9               316.6

    Adjusted EBITDA -
     Australian
     Metallurgical
     Mining Operations                           71.9                   (49.2)               71.9                           109.6                             181.5              (86.5)

    Adjusted EBITDA -
     Australian Thermal
     Mining Operations                          105.9                     45.4               105.9                            75.6                             181.5                88.3
                                                -----                     ----               -----                            ----                             -----                ----

      Total Australian
       Mining Operations                        177.8                    (3.8)              177.8                           185.2                             363.0                 1.8

    Adjusted EBITDA -
     Trading and
     Brokerage                                  (5.1)                  (18.2)              (5.1)                            8.8                               3.7              (31.9)

    Selling and
     Administrative
     Expenses (Excluding
     Debt Restructuring)                       (34.4)                  (27.0)             (34.4)                         (37.2)                           (71.6)             (61.0)

    Other Operating
     Costs, Net (3)                               3.7                      2.0                 3.7                            20.4                              24.1              (20.2)

    Restructuring
     Charges                                        -                   (3.1)                  -                              -                                -             (15.2)

    Gain on UMWA VEBA
     Settlement                                     -                       -                  -                              -                                -               68.1

    Corporate Hedging
     Results                                    (0.4)                  (39.4)              (0.4)                         (27.6)                           (28.0)            (150.4)
                                                 ----                                                                      -----

    Adjusted EBITDA                                        $317.8                   $72.6                      $317.8                                                $341.3              $659.1 $107.8
                                                           ======                   =====                      ======                                                ======              ====== ======


                   (1)    Revenues per Ton, Operating Costs per Ton and Gross
                           Margin per Ton are non-GAAP measures. Revenues
                           per Ton and Gross Margin per Ton are approximately
                           equal to Revenues by segment and Adjusted EBITDA
                           by segment, respectively, divided by segment tons
                           sold. Operating Costs per Ton is equal to Revenues
                           per Ton less Gross Margin per Ton.


                   (2)    Includes revenue-based production taxes and
                           royalties; excludes depreciation, depletion and
                           amortization; asset retirement obligation
                           expenses; selling and administrative expenses;
                           restructuring charges; asset impairment; and
                           certain other costs related to post-mining
                           activities.


                   (3)    Includes (income) loss from equity affiliates
                           (before the impact of related changes in deferred
                           tax asset valuation allowance and amortization of
                           basis difference), costs associated with post-
                           mining activities, certain asset sales, property
                           management costs and revenues, coal royalty
                           expense, minimum charges on certain
                           transportation-related contracts and the Q1 2017
                           gain of $19.7 million recognized on the sale of
                           Dominion Terminal Associates.


    This information is intended to be reviewed in conjunction with the company's filings with the SEC.


    Condensed Consolidated Balance Sheets

    As of Jun. 30, 2017, Mar. 31, 2017 and Dec. 31, 2016
    ----------------------------------------------------


    (Dollars In Millions)

                                                                   Successor                  Predecessor
                                                                   ---------                  -----------

                                                                  (Unaudited)   (Unaudited)

                                                                 Jun. 30, 2017 Mar. 31, 2017            Dec. 31, 2016
                                                                 ------------- -------------            -------------

    Cash and Cash Equivalents                                         $1,095.7                                $1,068.1               $872.3

    Restricted Cash                                            -                        80.7                                54.3

    Successor Notes Issuance
     Proceeds -Restricted Cash (1)                             -                     1,000.0                                   -

    Accounts Receivable, Net                               396.5                        312.1                               473.0

    Inventories                                            313.5                        250.8                               203.7

    Assets from Coal Trading
     Activities, Net                                         0.6                          0.6                                 0.7

    Other Current Assets                                   171.8                        493.9                               486.6
                                                           -----                        -----                               -----

      Total Current Assets                               1,978.1                      3,206.2                             2,090.6

    Property, Plant, Equipment and
     Mine Development, Net                               5,214.2                      8,653.9                             8,776.7

    Restricted Cash Collateral                             561.7                        594.0                               529.3

    Investments and Other Assets                           561.2                        382.4                               381.1
                                                           -----                        -----                               -----

        Total Assets                                                  $8,315.2                               $12,836.5            $11,777.7
                                                                      ========                               =========            =========


    Current Portion of Long-Term
     Debt                                                               $189.0                                   $18.2                $20.2

    Liabilities from Coal Trading
     Activities, Net                                         1.2                          0.7                                 1.2

    Accounts Payable and Accrued
     Expenses                                            1,147.0                        967.3                               990.4
                                                         -------                        -----                               -----

      Total Current Liabilities                          1,337.2                        986.2                             1,011.8

    Long-Term Debt, Less Current
     Portion (1)                                         1,768.1                        950.5                                   -

    Deferred Income Taxes                                      -                       179.2                               173.9

    Asset Retirement Obligations                           635.0                        707.0                               717.8

    Accrued Postretirement Benefit
     Costs                                                 746.3                        753.9                               756.3

    Other Noncurrent Liabilities                           596.9                        511.1                               496.2
                                                           -----                        -----                               -----

      Total Liabilities Not Subject to
       Compromise                                        5,083.5                      4,087.9                             3,156.0

    Liabilities Subject to
     Compromise                                                -                     8,416.7                             8,440.2
                                                             ---                     -------                             -------

      Total Liabilities                                  5,083.5                     12,504.6                            11,596.2


    Predecessor Common Stock                                   -                         0.2                                 0.2

    Successor Series A Convertible
     Preferred Stock                                       800.7                            -                                  -

    Successor Common Stock                                   0.9                            -                                  -

    Additional Paid-in Capital                           2,286.4                      2,423.9                             2,422.0

    Treasury Stock                                             -                     (371.9)                            (371.8)

    Retained Earnings (Accumulated
     Deficit)                                               94.9                    (1,284.1)                          (1,399.5)

    Accumulated Other Comprehensive
     Income (Loss)                                           0.5                      (448.5)                            (477.0)
                                                             ---                       ------                              ------

    Peabody Energy Corporation
     Stockholders' Equity                                3,183.4                        319.6                               173.9

    Noncontrolling Interests                                48.3                         12.3                                 7.6
                                                            ----                         ----                                 ---

      Total Stockholders' Equity                         3,231.7                        331.9                               181.5
                                                         -------                        -----                               -----

        Total Liabilities and
         Stockholders' Equity                                         $8,315.2                               $12,836.5            $11,777.7
                                                                      ========                               =========            =========


            (1)    Balance reflects the proceeds
                    of 6.00% Senior Secured
                    Notes due 2022 and the
                    6.375% Senior Secured Notes
                    due 2025 offering (the
                    Successor Notes), which were
                    held in escrow as of March
                    31, 2017, net of debt
                    issuance costs.


                   This information is intended
                    to be reviewed in
                    conjunction with the
                    company's filings with the
                    SEC.


    Condensed Consolidated Statements of Cash Flows (Unaudited)

    For the Six Months Ended Jun. 30, 2017 and 2016
    -----------------------------------------------


    (Dollars In Millions)

                                                                                                      2017                2016
                                                                                                                     ----

                                                         Successor                 Predecessor             Combined                 Predecessor
                                                         ---------                 -----------             --------                 -----------

                                                      April 2 through          January 1 through                   Six Months Ended

                                                           June 30                   April 1
                                                           -------                   -------

                                                                                           June 30

    Cash Flows From Operating
     Activities

    Net Cash Provided By (Used In)
     Continuing Operations                                               $91.3                                   $222.2                            $313.5  $(427.6)

    Net Cash Used In Discontinued
     Operations                                                 (0.6)                          (8.2)                          (8.8)               (4.2)

    Net Cash Provided By (Used In)
     Operating Activities                                        90.7                           214.0                           304.7              (431.8)
                                                                 ----                           -----                           -----               ------


    Cash Flows From Investing
     Activities

    Additions to Property, Plant,
     Equipment and Mine Development                            (45.9)                         (32.8)                         (78.7)              (38.1)

    Changes in Accrued Expenses
     Related to Capital
     Expenditures                                                 1.6                           (1.4)                            0.2                (7.1)

    Federal Coal Lease Expenditures                                 -                          (0.5)                          (0.5)               (0.5)

    Proceeds from Disposal of
     Assets                                                       2.5                            24.3                            26.8                116.0

    Contributions to Joint Ventures                            (96.3)                         (95.4)                        (191.7)             (159.7)

    Distributions from Joint
     Ventures                                                    95.5                            90.5                           186.0                163.5

    Advances to Related Parties                                 (0.9)                          (0.4)                          (1.3)               (2.2)

    Repayments of Loans from
     Related Parties                                             26.5                            31.1                            57.6                  2.1

    Other, Net                                                  (1.5)                          (0.3)                          (1.8)               (8.3)
                                                                 ----                            ----                                                ----

    Net Cash (Used In) Provided By
     Investing Activities                                      (18.5)                           15.1                           (3.4)                65.7
                                                                -----                            ----                            ----                 ----

    Cash Flows From Financing
     Activities

    Proceeds from Long-Term Debt                                    -                        1,000.0                         1,000.0              1,422.0

    Successor Notes Issuance
     Proceeds into Escrow                                           -                      (1,000.0)                       (1,000.0)                   -

    Repayments of Long-Term Debt                               (23.8)                          (2.1)                         (25.9)               (9.0)

    Payment of Deferred Financing
     Costs                                                          -                         (45.4)                         (45.4)              (29.5)

    Distributions to Noncontrolling
     Interests                                                  (6.4)                          (0.1)                          (6.5)               (2.5)

    Other, Net                                                      -                          (0.1)                          (0.1)               (1.9)
                                                                                                                                                   ----

    Net Cash (Used In) Provided By
     Financing Activities                                      (30.2)                         (47.7)                         (77.9)             1,379.1
                                                                -----                           -----                           -----              -------

    Net Change in Cash and Cash
     Equivalents                                                 42.0                           181.4                           223.4              1,013.0

    Cash and Cash Equivalents at
     Beginning of Period                                      1,053.7                           872.3                           872.3                261.3
                                                              -------                           -----

    Cash and Cash Equivalents at
     End of Period                                                    $1,095.7                                 $1,053.7                          $1,095.7  $1,274.3
                                                                      ========                                 ========                          ========  ========


    This information is intended to
     be reviewed in conjunction
     with the company's filings
     with the SEC.


    Reconciliation of Non-GAAP Financial Measures (Unaudited)

    For the Quarters Ended Jun. 30, 2017 and 2016
    ---------------------------------------------


    (Dollars In Millions)

                                                                                             2017           2016
                                                                                                         ----

                                                        Successor                         Predecessor  Predecessor
                                                        ---------                         -----------  -----------

                                                     April 2 through                        April 1   Quarter Ended
                                                          June 30                                         June 30
                                                          -------                                         -------



    Income (Loss) from Continuing
     Operations, Net of Income
     Taxes                                                               $101.4                                      $(319.8)            $(223.2)

                                                      Depreciation, Depletion and
                                                      Amortization                          148.3                                   -   115.9

                                                     Asset Retirement Obligation Expenses     11.0                                   -    11.5

                                                      Selling and Administrative Expenses
                                                      Related to Debt Restructuring             -                                  -     7.2

                                                      Change in Deferred Tax Asset
                                                      Valuation Allowance Related to
                                                      Equity Affiliates                     (4.3)                                  -   (1.4)

                                                     Interest Expense                        41.4                                   -    59.0

                                                     Interest Income                        (1.5)                                  -   (1.3)

                                                     Reorganization Items, Net                  -                              585.8     95.4

                                                      Break Fees Related to Terminated
                                                      Asset Sales                          (28.0)                                  -       -

                                                      Realized Losses on Non-Coal Trading
                                                      Derivative Contracts                      -                                  -    25.0

                                                      Unrealized (Gains) Losses on
                                                      Economic Hedges                       (9.4)                                  -    22.1

                                                      Unrealized Gains on Non-Coal
                                                      Trading Derivative Contracts          (3.2)                                  -       -

                                                     Coal Inventory Revaluation              67.3                                   -       -

                                                      Take-or-Pay Contract-Based
                                                      Intangible Recognition                (9.9)                                  -       -

                                                     Income Tax Provision (Benefit)           4.7                             (266.0)  (37.6)
                                                     ------------


    Adjusted EBITDA                                                      $317.8                                    $        -               $72.6
                                                                         ======                                  ===      ===               =====



    This information is intended to
     be reviewed in conjunction
     with the company's filings
     with the SEC.


    Reconciliation of Non-GAAP Financial Measures (Unaudited)

    For the Six Months Ended Jun. 30, 2017 and 2016
    -----------------------------------------------


    (Dollars In Millions)

                                                                                            2017                2016
                                                                                                             ----

                                                        Successor                              Predecessor              Predecessor
                                                        ---------                              -----------              -----------

                                                     April 2 through                       January 1 through         Six Months Ended
                                                          June 30                                April 1                  June 30
                                                          -------                                -------                  -------



    Income (Loss) from Continuing
     Operations, Net of Income
     Taxes                                                               $101.4                                                 $(195.5)            $(390.9)

                                                      Depreciation, Depletion and
                                                      Amortization                         148.3                                           119.9    227.7

                                                     Asset Retirement Obligation Expenses    11.0                                            14.6     24.6

                                                      Selling and Administrative Expenses
                                                      Related to Debt Restructuring            -                                              -    21.5

                                                      Change in Deferred Tax Asset
                                                      Valuation Allowance Related to
                                                      Equity Affiliates                    (4.3)                                          (5.2)       -

                                                     Asset Impairment                          -                                           30.5     17.2

                                                     Interest Expense                       41.4                                            32.9    185.2

                                                     Interest Income                       (1.5)                                          (2.7)   (2.7)

                                                     Reorganization Items, Net                 -                                          627.2     95.4

                                                      Break Fees Related to Terminated
                                                      Asset Sales                         (28.0)                                              -       -

                                                      Unrealized (Gains) Losses on
                                                      Economic Hedges                      (9.4)                                         (16.6)    27.2

                                                      Unrealized Gains on Non-Coal
                                                      Trading Derivative Contracts         (3.2)                                              -       -

                                                     Coal Inventory Revaluation             67.3                                               -       -

                                                      Take-or-Pay Contract-Based
                                                      Intangible Recognition               (9.9)                                              -       -

                                                     Income Tax Provision (Benefit)          4.7                                         (263.8)  (97.4)
                                                     ------------


    Adjusted EBITDA                                                      $317.8                                                   $341.3               $107.8
                                                                         ======                                                   ======               ======


    This information is intended to
     be reviewed in conjunction
     with the company's filings
     with the SEC.


                                                                                        2017 Guidance Targets


    Sales Volumes (Short Tons)                                                                   Capital Expenditures                                                                $165 - $195 million

    PRB                                                        117 - 120 million

    ILB                                                         18 - 19 million                 Quarterly SG&A Expense                                                                $32 - $35 million

    Western                                                     13 - 14 million

    Total U.S.                                                 148 - 153 million                Quarterly Interest Expense                                                            $39 - $41 million


    Aus. Metallurgical(1)                                       11 - 12 million                 Q3 -Q4 2017 Cost Sensitivities4

    Aus. Export Thermal(2)                                      13 - 14 million                                                          $0.05 Decrease in A$ FX Rate5 + ~$50 - $55 million

    Aus. Domestic Thermal                                         ~7 million                                                             $0.05 Increase in A$ FX Rate5 - ~$25 - $30 million

    Total Australia                                             31 - 33 million                 Fuel (+/- $10/barrel)                                                    +/- ~$16 million


    U.S. Operations - Revenues Per Ton                                                        Priced Position

    PRB                                                                       $12.40 - $12.90   PRB Average Price/Ton                                                                            $12.62

    ILB                                                                       $41.75 - $43.75   ILB Average Price/Ton                                                                            $42.54

    Total U.S.                                                                $18.50 - $18.90   Australia Export Thermal                                                 ~10 million tons

                                                                                              Australia Export Thermal                                                                         $67.20
                                                                                              Average Price/Ton

    U.S. Operations - Costs Per Ton

    PRB                                                                        $9.50 - $10.00

    ILB                                                                       $31.25 - $33.25

                                                  Essentially all of Peabody's expected 2017
                                                                                                 U.S. sales volume is priced as of June 30,
                                                                                                 2017; ~60% -65% of 2018 volumes are priced
                                                                                                 and 70% -75% contracted (on a 2017 projected
                                                                                                 volume basis); approximately 25% of 2019
                                                                                                 volumes are priced (on a 2017 projected
    Total U.S.                                                                $14.00 - $14.40    volume basis).


    Australia Operations - Costs per Ton (USD)(3)

    Metallurgical                                                                   $85 - $95

    Thermal                                                                         $31 - $35

    Total Australia                                                                 $51 - $54

(1) Metallurgical coal sales volumes may range from ~50%-60% PCI and ~40%-50% coking coal (including semi-hard and semi-soft coking coals). Approximately 45%-55% of seaborne metallurgical sales may be executed on a spot basis, with the remainder priced under quarterly contracts. The company also has exposure to approximately 2 million tons of metallurgical coal related to the Middlemount Mine, a 50/50 joint venture accounted for in (Income) Loss from Equity Affiliates.

Peabody's North Goonyella and Coppabella mines typically receive the premium HCC index quoted price and set the premium LV PCI benchmark, respectively, with the remainder of products sold at discounts to these values based on coal qualities and properties. On a weighted-average basis across all metallurgical products, Peabody typically realizes approximately 85%-90% of the PLV HCC index quoted price for its coking products, and 90%-95% of the premium LV PCI benchmark price for its PCI products.

In 2Q 2017, the ratio of the LV PCI benchmark price to the PLV HCC benchmark price was ~70%. As a reminder, the Q2 PLV HCC benchmark was the average of the three monthly indices for March, April and May, and we expect this to remain the pricing mechanism in Q3 2017.

(2) A portion of Peabody's seaborne thermal coal products sell at or above the Newcastle index, with the remainder sold at discounts relative to the Newcastle index based on coal qualities and properties. On a weighted-average basis across all seaborne thermal products, Peabody typically realizes approximately 90%-95% of the Newcastle index price.

(3) Assumes 3Q - 4Q 2017 average A$ FX rate of $0.75. A $0.02 increase in the 3Q - 4Q average A$ FX rate will increase USD cost per ton by ~$1 per ton.

(4) Sensitivities reflect approximate impacts of changes in variables on financial performance. When realized, actual impacts may differ significantly.

(5) As of August 1, 2017, Peabody had purchased average rate call options in aggregate notional amount of approximately AUD $0.9 billion to manage market price volatility associated with the Australian dollar with strike price levels between $0.77 and $0.78 and settlement dates through December 2017. Sensitivities provided are relative to an assumed average A$ FX exchange rate of $0.75 for remainder of 2017.

Note 1: Peabody classifies its Australian Metallurgical or Thermal Mining segments based on the primary customer base and reserve type. A small portion of the coal mined by the Australian Metallurgical Mining segment is of a thermal grade and vice versa. Peabody may market some of its metallurgical coal products as a thermal product from time to time depending on industry conditions. Per ton metrics presented are non-GAAP measures. Due to the volatility and variability of certain items needed to reconcile these measures to their nearest GAAP measure, no reconciliation can be provided without unreasonable cost or effort. Guidance does not reflect the impact of fresh-start reporting.

Note 2: A sensitivity to changes in seaborne pricing should consider Peabody's estimated split of PCI and coking coal products, the ratio of LV PCI to PLV HCC benchmark prices, the weighted average discounts across all products to the applicable PLV HCC or LV PCI benchmark or Newcastle index prices, in addition to impacts on sales-related costs in Australia, and applicable conversions between short tons and metric tonnes as necessary.

Note 3: Peabody would have approximately 137.3 million shares of common stock issued, assuming full conversion of Peabody's preferred stock (including make-whole shares issuable upon conversion of the preferred stock). The fully converted shares issued value excludes approximately 3.5 million shares underlying unvested equity awards under Peabody's long-term incentive plan. As of July 25, holders of approximately 39% of preferred stock issued at emergence had converted their shares into common stock.

Forward Looking Statement

Certain statements included in this release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. The Company uses words such as "anticipate," "believe," "expect," "may," "forecast," "project," "should," "estimate," "plan," "outlook," "target," "likely," "will," "to be" or other similar words to identify forward-looking statements. These forward-looking statements are made as of the date the release was issued and are based on numerous assumptions that the Company believes are reasonable, but these assumptions are open to a wide range of uncertainties and business risks that may cause actual results to differ materially from expectations. These factors are difficult to accurately predict and may be beyond the Company's control. Such factors include, but are not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 22, 2017, in Exhibit 99.2 to the Company's Current Report on Form 8-K filed with the SEC on April 11, 2017, and in the Company's Annual Report on Form 10-K/A (Amendment No.1) for the year ended December 31, 2016 filed with the SEC on July 10, 2017, as well as other filings the Company may make from time to time with the SEC. Factors that could affect the Company's results or an investment in its securities include but are not limited to: competition in the energy market and supply and demand for the Company's products, including the impact of alternative energy sources, such as natural gas and renewables; global steel demand and its downstream impact on metallurgical coal prices, and lower demand for the Company's products by electric power generators; customer procurement practices and contract duration; the impact of weather and natural disasters on demand, production and transportation; reductions and/or deferrals of purchases by major customers and the Company's ability to renew sales contracts; credit and performance risks associated with customers, suppliers, contract miners, co-shippers, and trading, bank and other financial counterparties; geologic, equipment, permitting, site access, operational risks and new technologies related to mining; transportation availability, performance and costs; availability, timing of delivery and costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives and tires; impact of take-or-pay arrangements for rail and port commitments for the delivery of coal; successful implementation of business strategies, including, without limitation, the actions we are implementing to improve the Company's organization and respond to current conditions; negotiation of labor contracts, employee relations and workforce availability, including, without limitation, attracting and retaining key personnel; changes in post-retirement benefit and pension obligations and their related funding requirements; replacement and development of coal reserves; uncertainties in estimating the Company's coal reserves; effects of changes in interest rates and currency exchange rates (primarily the Australian dollar); the Company's ability to successfully consummate acquisitions or divestitures, and the resulting effects thereof; economic strength and political stability of countries in which we have operations or serve customers; legislation, regulations and court decisions or other government actions, including, but not limited to, new environmental and mine safety requirements, changes in income tax regulations, sales-related royalties, or other regulatory taxes and changes in derivative laws and regulations; the Company's ability to obtain and renew permits necessary for the Company's operations; the Company's ability to appropriately secure the Company's requirements for reclamation, federal and state workers' compensation, federal coal leases and other obligations related to the Company's operations, including the Company's ability to utilize self-bonding and/or successfully access the commercial surety bond market; litigation or other dispute resolution, including, but not limited to, claims not yet asserted; terrorist attacks or security threats, including, but not limited to, cybersecurity breaches; impacts of pandemic illnesses; any lack of an established market for certain of the Company's securities, including the Company's preferred stock, and potential dilution of the Company's common stock; price volatility in the Company's securities; short-sales in the Company's securities; any conflicts of interest between the Company's significant shareholders and other holders of the Company's capital stock; the Company's ability to generate sufficient cash to service all of the Company's indebtedness; the Company's debt instruments and capital structure placing certain limits on the Company's ability to pay dividends and repurchase capital stock; the Company's ability to comply with financial and other restrictive covenants in various agreements, including the Company's debt instruments; and other risks detailed in the Company's reports filed with the SEC. The Company does not undertake to update its forward-looking statements except as required by law.

View original content with multimedia:http://www.prnewswire.com/news-releases/peabody-reports-earnings-for-quarter-ended-june-30-2017-formalizes-debt-reduction-and-capital-return-initiatives-300497100.html

SOURCE Peabody