Peabody Reports Earnings For Quarter Ended March 31, 2018

Peabody Reports Earnings For Quarter Ended March 31, 2018

First quarter results reflect substantial cash flow generation; Company accelerates share repurchases and expands program size to $1.0 billion; Peabody confirms financial targets for 2018

ST. LOUIS, April 25, 2018 /PRNewswire/ -- Peabody (NYSE: BTU) today announced its first quarter 2018 operating results, including revenues of $1.46 billion, income from continuing operations, net of income taxes of $208.3 million, net income attributable to common stockholders of $106.6 million, diluted earnings per share from continuing operations of $0.83 and Adjusted EBITDA(1) of $363.9 million.

"Peabody increased volumes, revenues and Adjusted EBITDA over 2017 levels and generated record free cash flow - in addition, today we are announcing the expansion of our share repurchase program to $1.0 billion after accelerating our existing $500 million buyback program," said Peabody President and Chief Executive Officer Glenn Kellow. "Our results reflect multiple achievements despite not operating at our full potential, as we generated significant cash, sold non-core assets, released cash collateral, simplified the capital structure, initiated a quarterly dividend and accelerated buyback activities."

First Quarter 2018 Results

Revenues for the first quarter rose 10 percent over the prior year to $1.46 billion driven by improved seaborne coal pricing and increased metallurgical coal volumes. First quarter income from continuing operations, net of income taxes, totaled $208.3 million, reflecting $169.6 million of depreciation, depletion and amortization and $36.3 million of interest expense. Net income attributable to common stockholders totaled $106.6 million for the quarter and included a non-cash dividend charge of $102.5 million related to the conversion of preferred shares during the quarter. All remaining preferred shares converted to common stock as of Jan. 31, 2018.

First quarter Adjusted EBITDA increased 7 percent over the prior year to $363.9 million as strong seaborne pricing more than offset the impact of scheduled longwall moves in both Australia and the U.S.; weather effects and temporary geological conditions in Australia; and weaker U.S. pricing.

Australian Adjusted EBITDA increased 23 percent over the prior year to $228.0 million as 36 percent higher metallurgical volumes and sturdy seaborne pricing offset temporary weather and geological conditions. Australian sales volumes totaled 6.8 million tons, including 3.0 million tons of metallurgical coal sold at an average price of $153.04 per ton and 2.1 million tons of export thermal coal sold at an average price of $78.18 per ton, with the remainder delivered under a long-term domestic contract.

Australian thermal realized pricing increased 10 percent to $53.42 per ton in the first quarter, supported by strong seaborne coal fundamentals despite a larger mix of lower-priced domestic Australian sales. Adjusted EBITDA margins totaled 31 percent for the Australian thermal segment as robust seaborne pricing mitigated the impacts of 17 percent lower volumes and higher costs associated with a scheduled longwall move at the Wambo Mine; impacts from weather; and temporary lack of coal availability due to geology at the Wilpinjong Mine.

Australian metallurgical revenues increased 42 percent to $466.2 million in the first quarter on strong sales volumes and higher seaborne pricing relative to the prior year. Australian metallurgical costs per ton declined 2 percent from the prior year. However, costs were elevated during the quarter largely due to the completion of a longwall move at the Metropolitan Mine as well as temporary weather-related challenges. Despite these challenges, the metallurgical segment led the company in Adjusted EBITDA margins and contributions, earning 36 percent Adjusted EBITDA margins and contributing Adjusted EBITDA of $166.4 million in the first quarter.

First quarter U.S. Adjusted EBITDA totaled $137.7 million compared to $191.7 million in the prior year. Lower U.S. margins were driven by a decline in realized pricing as well as increased costs largely due to a longwall move; scheduled repairs and maintenance across the operations; wet weather in the Midwest; and sequencing of overburden removal in the PRB. In addition, first quarter 2017 Western segment results benefited from a $13 million contractual settlement with a customer, compared to approximately $3 million in the first quarter of 2018.

Resource Management Adjusted EBITDA increased $17.9 million from the prior year to $20.8 million, primarily due to a $20.6 million gain from the sale of surface lands in Queensland.

During the first quarter, Peabody generated positive operating cash flow of $579.7 million, including the release of $254.1 million of collateral requirements and cash tax refunds of $61.2 million. Free cash flow totaled $573.3 million, the largest contribution on record, including $53.7 million of capital expenditures and $35.3 million of Middlemount cash contributions.

Note: All comparisons are to first quarter 2017 unless otherwise noted. Most first quarter 2017 income statement measures are not comparable with the current period due to the adoption of fresh-start reporting as of April 1, 2017.

(1) Adjusted EBITDA, revenues per ton, costs per ton and Adjusted EBITDA margin per ton and percent 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. Free cash flow is a non-GAAP measure defined as net cash provided by operating activities less net cash used in investing activities. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this document.

Balance Sheet and Capital Return Initiatives

Peabody continues to execute on its stated financial priorities - generate cash, maintain financial strength, invest wisely and return cash to shareholders.

Liquidity

    --  Liquidity at quarter end totaled $1.65 billion, including $1.42 billion
        in cash and cash equivalents, $187 million of available revolver
        capacity and $49 million of accounts receivable securitization capacity.
    --  During the first quarter, Peabody secured approximately $333 million in
        third-party surety bonds in Australia, representing all of Peabody's
        current Australian surety bonding needs.

Balance Sheet

    --  In early April, Peabody successfully completed the repricing of its
        senior secured term loan to modify terms to provide additional financial
        and operational flexibility, extend its maturity profile and reduce cash
        interest expense.
    --  As part of the repricing, Peabody repaid approximately $46 million of
        its term loan, bringing the total balance to $400 million. Peabody's
        total debt is now at the higher end of its previously established
        long-term debt target of $1.2 billion to $1.4 billion.
    --  The company completed multiple non-core asset sales in the first
        quarter. Cash proceeds from the transactions totaled $23 million in the
        first quarter, with approximately $28 million also expected to be
        received in the second quarter. In addition, the company eliminated $4
        million of reclamation liabilities as well as future take-or-pay
        obligations through the sale of Peabody's 50 percent interest in the
        coal handling and preparation plant and associated rail loading facility
        utilized by the Millennium Mine.

Shareholder Returns

    --  In the first quarter, Peabody initiated and paid a quarterly common
        stock cash dividend of $0.115 per share, totaling approximately $15
        million.
    --  In addition, the company repurchased 4.4 million shares during the first
        quarter with another 1.3 million shares repurchased in April, bringing
        total repurchases under the program to 11.5 million shares, or 8 percent
        of shares initially outstanding. Total repurchases under the company's
        initial $500 million authorized share buyback program(2) are
        approximately $400 million.
    --  Peabody announced today the board authorized the expansion of its share
        repurchase program to $1.0 billion, reflecting the company's strong
        financial position and continued commitment to returning cash to
        shareholders.(3)

"Given our robust operating performance since emergence, we believe we have significant flexibility to complete our current share repurchase program and execute a substantial portion of our newly expanded buyback program under our existing bond indentures," said Peabody Executive Vice President and Chief Financial Officer Amy Schwetz. "We believe pursuing an amendment to our bond indentures could make sense at the right price, to secure incremental flexibility and greater certainty of accelerating our shareholder return programs."

(2) 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 or pursuant to Rule 10b5-1 repurchase programs. 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.

(3) Peabody will evaluate whether or not to pursue a potential amendment to its bond indentures based on ongoing dialogue with investors and J.P. Morgan, who is advising the company on the potential amendment.

Industry Conditions

Seaborne thermal and metallurgical coal pricing remained robust on solid Asian-Pacific demand, while experiencing a gradual rebasing from elevated levels in the first quarter.

Through March, seaborne thermal coal demand rose compared to the prior year, supported by increased imports in China, India and ASEAN countries. Chinese thermal coal imports increased approximately 16 million tonnes over the prior year through March as cold weather drove an approximately 10 percent increase in power consumption and impacted domestic coal production and rail transportation. Indian thermal coal imports rose approximately 21 percent year over year due to utility restocking, weak domestic production and rail bottlenecks. ASEAN imports increased over the prior year on continued economic growth and rising coal generating capacity. Overall, Australian thermal coal exports were in line with the prior year.

With respect to seaborne metallurgical coal demand, global steel production increased 4 percent through February compared to the prior year. India imports increased 21 percent through March compared to the prior year on strong steel production, while Chinese metallurgical imports declined approximately 5 million tonnes year over year despite strong domestic steel production. At the same time, Australian metallurgical exports were in line with the prior year.

Seaborne metallurgical coal prompt prices increased approximately $60 per tonne to an average of $228 per tonne in the first quarter compared to the prior year, with the index-based settlement price for premium hard coking coal set at approximately $237 per tonne, compared to the prior year settlement of $285 per tonne. The first quarter benchmark low-vol PCI price was set at $156.50, with the second quarter benchmark low-vol PCI price negotiated at $155 per tonne.

In the U.S., thermal coal demand declined 3 percent from the prior year on increased gas and wind generation as weak natural gas pricing continues to suppress coal demand. As a result, Powder River Basin coal consumption was roughly flat through March year over year. U.S. thermal exports remained robust, increasing approximately 38 percent over the prior year. U.S. coal production declined approximately 3 percent in the first quarter. Combined, these factors led to ending March inventories decreasing approximately 10 million tons from the prior year to approximately 49 days of maximum burn.

Second Quarter 2018 Expectations

Compared to the first quarter:

    --  Australian thermal volumes are expected to increase sequentially
        throughout the year and unit costs are expected to improve;
    --  Metallurgical costs are expected to decline as operational improvements
        are anticipated to mitigate the impacts of a North Goonyella longwall
        move bridging the second and third quarters;
    --  In the U.S., Peabody expects traditional lower shoulder season PRB
        volumes in the second quarter. In addition, the company anticipates
        second quarter costs to improve in the Midwest segment relative to the
        first quarter 2018 given improved equipment availability; and
    --  Peabody remains focused on its stated financial approach, including
        returning cash to shareholders through its share repurchase program and
        sustainable dividends.

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

Peabody (NYSE: BTU) is the leading global pure-play coal company, serving power and steel customers in more than 25 countries on six continents. The company offers significant scale, high-quality assets, and diversity in geography and products. Peabody is guided by seven core values: safety, customer focus, leadership, people, excellence, integrity and sustainability. For further information, visit PeabodyEnergy.com.

Contact:

Investors
Julie Gates
314.342.4336

Media
Michelle Constantine
314.342.4347


    Condensed Consolidated Statements of Operations (Unaudited)

    For the Quarters Ended Mar. 31, 2018 and 2017
    ---------------------------------------------


    (In Millions, Except Per Share Data)

                                                   2018                                2017
                                                   ----                                ----

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

                                                        Quarter Ended March 31


    Tons Sold                                      48.3                                        46.1
                                                   ====                                        ====


    Revenues                                               $1,462.7                                 $1,326.2

    Operating Costs and
     Expenses (1)                               1,057.2                                       950.2

    Depreciation,
     Depletion and
     Amortization                                 169.6                                       119.9

    Asset Retirement
     Obligation Expenses                           12.3                                        14.6

    Selling and
     Administrative
     Expenses                                      37.0                                        36.3

    Other Operating (Income) Loss:

    Net Gain on Disposals                        (30.6)                                     (22.8)

    Asset Impairment                                  -                                       30.5

    Income from Equity
     Affiliates                                  (22.0)                                     (15.0)
                                                  -----                                       -----

    Operating Profit                              239.2                                       212.5

    Interest Expense                               36.3                                        32.9

    Interest Income                               (7.2)                                      (2.7)

    Net Periodic Benefit
     Costs, Excluding
     Service Cost                                   4.5                                        14.4

    Reorganization Items,
     Net                                         (12.8)                                       41.4
                                                  -----                                        ----

    Income from Continuing
     Operations Before
     Income Taxes                                 218.4                                       126.5

    Income Tax Provision                           10.1                                         2.2
                                                   ----                                         ---

    Income from Continuing
     Operations, Net of
     Income Taxes                                 208.3                                       124.3

    Loss from Discontinued
     Operations, Net of
     Income Taxes                                 (1.3)                                      (4.1)
                                                   ----                                        ----

    Net Income                                    207.0                                       120.2

    Less: Series A
     Convertible Preferred
     Stock Dividends                              102.5                                           -

    Less: Net (Loss)
     Income Attributable
     to Noncontrolling
     Interests                                    (2.1)                                        4.8

    Net Income
     Attributable to
     Common Stockholders                                     $106.6                                   $115.4
                                                             ======                                   ======


    Adjusted EBITDA (2)                                      $363.9                                   $341.3
                                                             ======                                   ======


    Diluted EPS -Income
     from Continuing
     Operations (3)(4)                                        $0.83                                    $6.44
                                                              =====                                    =====


    Diluted EPS -Net
     Income Attributable
     to Common
     Stockholders (3)                                         $0.82                                    $6.21
                                                              =====                                    =====


                      (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 of
                              income (loss)
                              from continuing
                              operations, net
                              of income taxes
                              to Adjusted
                              EBITDA 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-
                              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)    Diluted EPS is
                              calculated under
                              the two-class
                              method which
                              treats
                              participating
                              securities as
                              having rights to
                              earnings that
                              otherwise would
                              have been
                              available to
                              common
                              stockholders and
                              assumes that
                              participating
                              securities are
                              not exercised or
                              converted.  As
                              such, weighted
                              average diluted
                              shares
                              outstanding were
                              123.2 million for
                              the quarter ended
                              March 31, 2018
                              and excluded 8.4
                              million weighted
                              average shares
                              outstanding
                              related to the
                              participating
                              securities.
                              Weighted average
                              diluted shares
                              outstanding were
                              18.4 million for
                              the quarter ended
                              March 31, 2017.


                      (4)    Reflects income
                              from continuing
                              operations, net
                              of income taxes
                              less preferred
                              stock dividends
                              and net (loss)
                              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 Ended Mar. 31,
     2018 and 2017


                                                               2018                          2017
                                                               ----                          ----

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

                                                                       Quarter Ended
                                                                          March 31

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

                        Powder River Basin Mining
                        Operations                                      $389.3                             $394.3

                        Midwestern U.S. Mining
                        Operations                            201.7                                193.2

                       Western U.S. Mining Operations         143.7                                149.7
                                                                                                  -----

                       Total U.S. Mining Operations           734.7                                737.2

                        Australian Metallurgical Mining
                        Operations                            466.2                                328.9

                        Australian Thermal Mining
                        Operations                            201.4                                224.8
                                                                                                  -----

                        Total Australian Mining
                        Operations                            667.6                                553.7

                       Trading and Brokerage Operations        20.1                                 15.0

                       Other                                   40.3                                 20.3

                       Total                                          $1,462.7                           $1,326.2
                                                                      ========                           ========


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

                        Powder River Basin Mining
                        Operations                             32.4                                 31.0

                        Midwestern U.S. Mining
                        Operations                              4.7                                  4.5

                       Western U.S. Mining Operations           3.7                                  3.4
                                                                ---                                  ---

                       Total U.S. Mining Operations            40.8                                 38.9

                        Australian Metallurgical Mining
                        Operations                              3.0                                  2.2

                        Australian Thermal Mining
                        Operations                              3.8                                  4.6
                                                                ---                                  ---

                        Total Australian Mining
                        Operations                              6.8                                  6.8

                       Trading and Brokerage Operations         0.7                                  0.4
                                                                ---                                  ---

                       Total                                   48.3                                 46.1
                                                               ====                                 ====


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

                       Powder River Basin                               $12.02                             $12.70

                       Midwestern U.S.                        42.66                                42.96

                       Western U.S.                           38.96                                44.68

                       Total U.S.                             18.01                                18.96

                       Australian Metallurgical              153.04                               150.22

                       Australian Thermal                     53.42                                48.65

                       Total Australian                       97.95                                81.36


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

                       Powder River Basin                                $9.72                              $9.75

                       Midwestern U.S.                        36.05                                31.84

                       Western U.S.                           30.27                                29.76

                       Total U.S.                             14.63                                14.03

                       Australian Metallurgical               98.44                               100.16

                       Australian Thermal                     37.09                                32.27

                       Total Australian                       64.51                                54.15


    Adjusted EBITDA Margin per Ton -
     Mining Operations (1)(2)
    --------------------------------

                       Powder River Basin                                $2.30                              $2.95

                       Midwestern U.S.                         6.61                                11.12

                       Western U.S.                            8.69                                14.92

                       Total U.S.                              3.38                                 4.93

                       Australian Metallurgical               54.60                                50.06

                       Australian Thermal                     16.33                                16.38

                       Total Australian                       33.44                                27.21

                       Note:  See footnote explanations on following page


    Supplemental
     Financial Data
     (Unaudited)

    For the Quarters
     Ended Mar. 31,
     2018 and 2017


                                   2018                       2017
                                   ----                       ----

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

                                        Quarter Ended
                                          March 31

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

    Adjusted EBITDA -
     Powder River
     Basin Mining
     Operations                   $74.5                             $91.7

    Adjusted EBITDA -
     Midwestern U.S.
     Mining Operations   31.2                                 50.0

    Adjusted EBITDA -
     Western U.S.
     Mining Operations   32.0                                 50.0
                         ----                                 ----

    Total U.S. Mining
     Operations         137.7                                191.7

    Adjusted EBITDA -
     Australian
     Metallurgical
     Mining Operations  166.4                                109.6

    Adjusted EBITDA -
     Australian
     Thermal Mining
     Operations          61.6                                 75.6
                         ----                                 ----

    Total Australian
     Mining Operations  228.0                                185.2

    Adjusted EBITDA -
     Trading and
     Brokerage            1.2                                  8.8

    Adjusted EBITDA -
     Resource
     Management (3)      20.8                                  2.9

    Selling and
     Administrative
     Expenses          (37.0)                              (36.3)

    Other Operating
     Costs, Net (4)      15.6                                 16.6

    Corporate Hedging
     Results            (2.4)                              (27.6)
                         ----

    Adjusted EBITDA              $363.9                            $341.3
                                 ======                            ======


    (1)                    Revenues per Ton,
                           Operating Costs
                           per Ton and
                           Adjusted EBITDA
                           Margin per Ton
                           are non-GAAP
                           measures.
                           Revenues per Ton
                           and Adjusted
                           EBITDA 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
                           Adjusted EBITDA
                           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 the Q1
                           2018 gain of
                           $20.6 million on
                           the sale of joint
                           venture held
                           surface lands in
                           Queensland, gains
                           (losses) on
                           certain surplus
                           coal reserves and
                           surface land
                           sales and
                           property
                           management costs
                           and revenues.


    (4)                    Includes income
                           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, coal
                           royalty expense,
                           minimum charges
                           on certain
                           transportation-
                           related
                           contracts, the Q1
                           2018 gain of $7.1
                           million
                           recognized on the
                           sale of our
                           interest in the
                           Red Mountain
                           Joint Venture 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 Mar. 31, 2018 and
     Dec. 31, 2017


    (Dollars In Millions)

                                                (Unaudited)

                                               Mar. 31, 2018               Dec. 31, 2017
                                               -------------               -------------

    Cash and Cash
     Equivalents                                                $1,416.6                                $1,012.1

    Restricted Cash                                        -                                    40.1

    Accounts Receivable, Net                           524.0                                    552.1

    Inventories                                        265.5                                    291.3

    Assets from Coal Trading
     Activities, Net                                    11.2                                      2.6

    Collateral Arrangements
     -Current                                          109.1                                        -

    Other Current Assets                               251.1                                    291.8
                                                       -----                                    -----

    Total Current Assets                             2,577.5                                  2,190.0

    Property, Plant,
     Equipment and Mine
     Development, Net                                5,008.0                                  5,111.9

    Collateral Arrangements                                -                                   323.1

    Investments and Other
     Assets                                            343.6                                    470.6

    Deferred Income Taxes                               85.5                                     85.6
                                                        ----                                     ----

    Total Assets                                                $8,014.6                                $8,181.2
                                                                ========                                ========


    Current Portion of Long-
     Term Debt                                                     $87.1                                   $42.1

    Liabilities from Coal
     Trading Activities, Net                             8.8                                     11.7

    Accounts Payable and
     Accrued Expenses                                1,050.6                                  1,191.1
                                                     -------                                  -------

    Total Current
     Liabilities                                     1,146.5                                  1,244.9

    Long-Term Debt, Less
     Current Portion                                 1,368.1                                  1,418.7

    Deferred Income Taxes                                5.2                                      5.4

    Asset Retirement
     Obligations                                       665.9                                    657.0

    Accrued Postretirement
     Benefit Costs                                     727.3                                    730.0

    Other Noncurrent
     Liabilities                                       451.1                                    469.4
                                                       -----                                    -----

    Total Liabilities                                4,364.1                                  4,525.4


    Series A Convertible
     Preferred Stock                                       -                                   576.0

    Common Stock                                         1.4                                      1.0

    Additional Paid-in
     Capital                                         3,276.9                                  2,590.3

    Treasury Stock                                   (351.4)                                 (175.9)

    Retained Earnings                                  682.3                                    613.6

    Accumulated Other
     Comprehensive Income                                0.6                                      1.4
                                                         ---                                      ---

    Peabody Energy
     Corporation
     Stockholders' Equity                            3,609.8                                  3,606.4

    Noncontrolling Interests                            40.7                                     49.4
                                                        ----                                     ----

    Total Stockholders'
     Equity                                          3,650.5                                  3,655.8
                                                     -------                                  -------

      Total Liabilities and
       Stockholders' Equity                                     $8,014.6                                $8,181.2
                                                                ========                                ========


    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 Quarters Ended Mar.
     31, 2018 and 2017
    ---------------------------

    (Dollars In Millions)

                                                           2018                                   2017
                                                           ----                                   ----

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

                                                                Quarter Ended March 31

    Cash Flows From Operating
     Activities

    Net Cash Provided By
     Continuing Operations                                           $580.7                                        $264.3

    Net Cash Used In Discontinued
     Operations                                           (1.0)                                           (8.2)
                                                           ----

    Net Cash Provided By Operating
     Activities                                           579.7                                            256.1
                                                          -----                                            -----

    Cash Flows From Investing
     Activities

    Additions to Property, Plant,
     Equipment and Mine
     Development                                         (53.7)                                          (32.8)

    Changes in Accrued Expenses
     Related to Capital
     Expenditures                                         (4.9)                                           (1.4)

    Federal Coal Lease
     Expenditures                                         (0.5)                                           (0.5)

    Proceeds from Disposal of
     Assets                                                23.0                                             24.3

    Contributions to Joint
     Ventures                                           (123.5)                                          (95.4)

    Distributions from Joint
     Ventures                                             120.7                                             90.5

    Advances to Related Parties                           (2.0)                                           (0.4)

    Repayments of Loans from
     Related Parties                                       35.3                                             31.1

    Other, Net                                            (0.8)                                           (0.3)
                                                           ----                                             ----

    Net Cash (Used In) Provided By
     Investing Activities                                 (6.4)                                            15.1
                                                           ----                                             ----

    Cash Flows From Financing
     Activities

    Proceeds from Long-Term Debt                              -                                         1,000.0

    Repayments of Long-Term Debt                          (8.2)                                           (2.1)

    Payment of Deferred Financing
     Costs                                                    -                                          (45.4)

    Common Stock Repurchases                            (175.5)                                               -

    Dividends Paid                                       (15.0)                                               -

    Distributions to
     Noncontrolling Interests                             (6.6)                                           (0.1)

    Other, Net                                              0.2                                            (0.1)

    Net Cash (Used In) Provided By
     Financing Activities                               (205.1)                                           952.3
                                                         ------                                            -----

    Net Change in Cash, Cash
     Equivalents and Restricted
     Cash                                                 368.2                                          1,223.5

    Cash, Cash Equivalents and
     Restricted Cash at Beginning
     of Period (1)                                      1,070.2                                            941.2
                                                        -------                                            -----

    Cash, Cash Equivalents and
     Restricted Cash at End of
     Period (2)                                                    $1,438.4                                      $2,164.7
                                                                   ========                                      ========



    (1) The following table provides a reconciliation of "Cash, cash equivalents and
     restricted cash at beginning of period":


    Cash and Cash Equivalents                                      $1,012.1

    Restricted Cash                                        40.1

    Restricted Cash Included in
     Investments and Other Assets                          18.0
                                                           ----

    Cash, Cash Equivalents and
     Restricted Cash at Beginning
     of Period                                                     $1,070.2
                                                                   ========


    (2) The following table provides a reconciliation of "Cash, cash equivalents and
     restricted cash at end of period":


    Cash and Cash Equivalents                                      $1,416.6

    Restricted Cash Included in
     Investments and Other Assets                          21.8

    Cash, Cash Equivalents and
     Restricted Cash at End of
     Period                                                        $1,438.4
                                                                   ========


    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 Mar. 31, 2018 and 2017


    (Dollars In Millions)

                                                                2018                               2017
                                                                ----                               ----

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

                                                                 Quarter Ended March 31


    Income from Continuing
     Operations, Net of Income
     Taxes                                                           $208.3                                     $124.3

                  Depreciation, Depletion and
                  Amortization                                169.6                                       119.9

                 Asset Retirement Obligation Expenses          12.3                                        14.6

                 Asset Impairment                                 -                                       30.5

                  Changes in Deferred Tax Asset
                  Valuation Allowance and Amortization
                  of Basis Difference Related to
                  Equity Affiliates                           (7.6)                                      (5.2)

                 Interest Expense                              36.3                                        32.9

                 Interest Income                              (7.2)                                      (2.7)

                 Reorganization Items, Net                   (12.8)                                       41.4

                 Unrealized Gains on Economic Hedges         (38.6)                                     (16.6)

                  Unrealized Losses on Non-Coal
                  Trading Derivative Contracts                  1.8                                           -

                  Take-or-Pay Contract-Based
                  Intangible Recognition                      (8.3)                                          -

                 Income Tax Provision                          10.1                                         2.2
                                                             ----


    Adjusted EBITDA                                                  $363.9                                     $341.3
                                                                     ======                                     ======




                                                             2018                               2017
                                                             ----                               ----

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

                                                                 Quarter Ended March 31

    Net Cash Provided By Operating
     Activities                                                      $579.7                                     $256.1

    Net Cash (Used In) Provided By
     Investing Activities                                   (6.4)                                       15.1
                                                             ----                                        ----


                 Free Cash Flow (1)                                    $573.3                                     $271.2
                                                              ===


                      (1)    Free Cash Flow is
                              a non-GAAP
                              measure defined
                              as net cash
                              provided by
                              operating
                              activities less
                              net cash (used
                              in) provided by
                              investing
                              activities. Free
                              Cash Flow is used
                              by management as
                              a measure of our
                              financial
                              performance and
                              our ability to
                              generate excess
                              cash flow from
                              our business
                              operations. Free
                              Cash Flow 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.


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


                                                                           2018 Full-Year Guidance Targets


    Sales Volumes (Short Tons in millions)                                               Capital Expenditures                                                                     $275 - $325 million

    PRB                                            115 - 125

    ILB                                             18 - 19                             SG&A Expense                                                                   ~$150 million

    Western                                         13 - 14

    Total U.S.                                     146 - 158                            Interest Expense                                                                         $140 - $148 million


    Aus. Metallurgical(1)                           11 - 12                             Cost Sensitivities4

    Aus. Export Thermal(2)                        11.5 - 12.5                                                                          $0.05 Decrease in A$ FX Rate5  + ~$75 million

    Aus. Domestic Thermal                            7 - 8                                                                             $0.05 Increase in A$ FX Rate5  - ~$60 million

    Total Australia                               29.5 - 32.5                           Fuel (+/- $10/barrel)                                                        +/- ~$23 million


    U.S. Operations - Revenue per Ton                                                 2018 Priced Position (Avg. Price per Short Ton)

    Total U.S.                                               $17.50 - $18.50            PRB                                                                                                   $11.93

                                                                                      ILB                                                                                ~$42

    U.S. Operations - Costs Per Ton                                                   Australia Export Thermal                                                           ~$76

    PRB                                                        $9.25 - $9.75

    ILB                                                      $31.50 - $33.50            ~95% of Peabody's 2018 U.S. volumes are priced

    Total U.S.                                               $13.50 - $14.50            ~40% of Peabody's 2019 U.S. volumes are priced

                                                                                       ~5.5 million short tons of Australia export
                                                                                         thermal

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

                                                                                      coal priced for 2018

    Metallurgical                                                  $85 - $95

    Thermal                                                        $32 - $36            2019 Priced Position (Avg. Price per Short Ton)

    Total Australia                                                $52 - $58            Australia Export Thermal                                                           ~$75

                                                                                      ~2 million short tons of Australia export thermal
                                                                                           coal priced for 2019


    1 Metallurgical coal sales volumes
     may range from ~55%-65% PCI and
     ~35%-45% coking coal (including
     semi-hard and semi-soft coking
     coals).  Approximately 30% of
     seaborne coking sales may be
     priced on a spot basis, with the
     remainder linked to an index.
     Approximately 30% of seaborne PCI
     sales may be priced on a spot
     basis, but the remainder linked to
     the quarterly LV PCI benchmark.
     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 Mine
     receives the PHCC index quoted
     price and the Coppabella Mine
     typically sets the LV PCI
     benchmark, 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 PHCC index quoted
     price for its coking products, and
     85%-90% of the LV PCI benchmark
     price for its PCI products.


    (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 2018 average A$ FX rate
     of $0.78.  Cost ranges include
     sales-related cost, which will
     fluctuate based on realized
     prices.


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


    5 As of March 31, 2018, Peabody had
     purchased average rate call
     options in aggregate notional
     amount of approximately AUD $1.1
     billion to manage market price
     volatility associated with the
     Australian dollar with strike
     price levels ranging from $0.79 to
     $0.82 and settlement dates through
     December 2018.  Sensitivities
     provided are relative to an
     assumed average A$ FX exchange
     rate of $0.78.


    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.


    Note 2:  A sensitivity to changes
     in seaborne pricing should
     consider Peabody's estimated split
     of PCI and coking coal products,
     the ratio of PLV PCI benchmark to
     PLV HCC index quoted price, the
     weighted average discounts across
     all products to the applicable PLV
     HCC index quoted price or PLV 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:  As of April 25, 2018, on a
     fully diluted basis, Peabody has
     approximately 128.8 million shares
     of common stock outstanding,
     including approximately 3.0
     million shares underlying unvested
     equity awards under Peabody's
     long-term incentive plan.

Forward Looking Statement

This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, income, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volume, or other financial items, descriptions of management's plans or objectives for future operations, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond the company's control, that are described in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017, as well as additional factors we may describe from time to time in other filings with the SEC. You may get such filings for free at our website at www.peabodyenergy.com. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

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SOURCE Peabody