Peabody Reports Results For Quarter Ended March 31, 2024

¹ Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA margin is equal to segment Adjusted EBITDA divided by segment revenue. Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment, respectively, divided by segment tons sold. Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton. Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reporting segment level. We consider all measures reported on a per ton basis, as well as Adjusted EBITDA margin, to be operating/statistical measures. Please refer to the tables and related notes in this press release for a reconciliation and definition of non-GAAP financial measures.

Seaborne Thermal

Quarter Ended

Mar.

Dec.

Mar.

2024

2023

2023

Tons sold (in millions)

4.0

3.7

3.6

Export

2.5

2.6

2.1

Domestic

1.5

1.1

1.5

Revenue per Ton

$ 71.24

$ 76.22

$ 96.82

Export - Avg. Realized Price per Ton

99.56

97.20

148.34

Domestic - Avg. Realized Price per Ton

26.33

30.26

25.05

Costs per Ton

47.71

49.71

51.01

Adjusted EBITDA Margin per Ton

$ 23.53

$ 26.51

$ 45.81

Adjusted EBITDA (in millions)

$ 93.8

$ 99.8

$ 164.0

Seaborne Metallurgical

Quarter Ended

Mar.

Dec.

Mar.

2024

2023

2023

Tons sold (in millions)

1.4

2.1

1.3

Revenue per Ton

$ 172.60

$ 186.74

$ 220.60

Costs per Ton

138.83

107.89

151.13

Adjusted EBITDA Margin per Ton

$ 33.77

$ 78.85

$ 69.47

Adjusted EBITDA (in millions)

$ 48.3

$ 166.2

$ 90.8

Powder River Basin

Quarter Ended

Mar.

Dec.

Mar.

2024

2023

2023

Tons sold (in millions)

18.7

23.6

22.0

Revenue per Ton

$ 13.62

$ 13.58

$ 13.89

Costs per Ton

12.74

11.98

12.26

Adjusted EBITDA Margin per Ton

$ 0.88

$ 1.60

$ 1.63

Adjusted EBITDA (in millions)

$ 16.4

$ 37.6

$ 35.8

Other U.S. Thermal

Quarter Ended

Mar.

Dec.

Mar.

2024

2023

2023

Tons sold (in millions)

3.2

3.7

4.5

Revenue per Ton

$ 59.75

$ 57.00

$ 54.73

Costs per Ton

45.25

45.57

40.65

Adjusted EBITDA Margin per Ton

$ 14.50

$ 11.43

$ 14.08

Adjusted EBITDA (in millions)

$ 46.5

$ 42.3

$ 64.2

Quarter Ended

Year Ended

Mar.

Dec.

2024

2023

(Dollars in millions)

Net Cash Provided by Operating Activities:

$ 119.0

$ 1,035.5

- Net Cash Used in Investing Activities

(75.2)

(342.6)

- Distributions to Noncontrolling Interest

(18.5)

(59.0)

+/- Changes to Restricted Cash and Collateral ⁽¹⁾

(29.7)

90.2

- Anticipated Expenditures or Other Requirements

-

-

Available Free Cash Flow (AFCF) ⁽²⁾

$ (4.4)

$ 724.1

(1) This amount is equal to the total change in Restricted Cash and Collateral on the balance sheet, excluding partially offsetting amounts included in operating cash flow consisting of an inflow of $151 million and an outflow of $200 million for the quarter ended March 31, 2024 and the year ended December 31, 2023, respectively, and the $660 million one-time funding related to the surety program during the year ended December 31, 2023.

(2) AFCF is a non-GAAP financial measure defined as operating cash flow minus investing cash flow and distributions to noncontrolling interests; plus/minus changes to restricted cash and collateral (excluding one-time effects of the 2023 surety agreement amendment) and other anticipated expenditures. Available Free Cash Flow is used by management as a measure of our ability to generate excess cash flow from our business operations. The Company's policy is to return at least 65% of annual AFCF to shareholders.

Guidance Targets

Segment Performance

2024 Full Year

Total Volume
(millions of short tons)

Priced Volume
(millions of short tons)

Priced Volume
Pricing per Short Ton

Average Cost per
Short Ton

Seaborne Thermal

15 - 16

8.7

$52.75

$45.00 - $50.00

Seaborne Thermal (Export)

9 - 11

2.8

$106.35

NA

Seaborne Thermal (Domestic)

5.8

5.9

$26.70

NA

Seaborne Metallurgical

7.5 - 8.5

1.4

$172.60

$110.00 - $120.00

PRB U.S. Thermal

80 - 87

85

$13.70

$11.75 - $12.50

Other U.S. Thermal

14.5 - 15.5

15.2

$54.20

$41.00 - $45.00

Other Annual Financial Metrics ($ in millions)

2024 Full Year

SG&A

$90

Total Capital Expenditures

$375

Major Project Capital Expenditures

$235

Sustaining Capital Expenditures

$140

Wards Well Acquisition

$134

ARO Cash Spend

$50

Supplemental Information

Seaborne Thermal

~50% of unpriced export volumes are expected to price on average at Globalcoal "NEWC" levels and ~50% are expected to have a higher ash
content and price at 80-95% of API 5 price levels.

Seaborne Metallurgical

On average, Peabody's metallurgical sales are anticipated to price at 65-70% of the premium hard-coking coal index price (FOB Australia).

PRB and Other U.S. Thermal

PRB and Other U.S. Thermal volumes reflect volumes priced at March 31, 2024. Weighted average quality for the PRB segment 2024 volume
is approximately 8670 BTU.

Condensed Consolidated Statements of Operations (Unaudited)

For the Quarters Ended Mar. 31, 2024, Dec. 31, 2023 and Mar. 31, 2023

(In Millions, Except Per Share Data)

Quarter Ended

Mar.

Dec.

Mar.

2024

2023

2023

Tons Sold

27.4

33.2

31.5

Revenue

$ 983.6

$ 1,235.0

$ 1,364.0

Operating Costs and Expenses ⁽¹⁾

814.2

872.8

846.6

Depreciation, Depletion and Amortization

79.8

82.2

76.3

Asset Retirement Obligation Expenses

12.9

4.2

15.4

Selling and Administrative Expenses

22.0

24.7

22.8

Restructuring Charges

0.1

0.3

0.1

Other Operating (Income) Loss:

Net Gain on Disposals

(2.1)

(6.5)

(1.9)

Asset Impairment

-

-

2.0

Provision for NARM Loss

1.8

3.9

-

Loss (Income) from Equity Affiliates

3.7

2.8

(1.8)

Operating Profit

51.2

250.6

404.5

Interest Expense

14.7

14.3

18.4

Net Loss on Early Debt Extinguishment

-

-

6.8

Interest Income

(19.2)

(20.3)

(13.1)

Net Periodic Benefit Credit, Excluding Service Cost

(10.1)

(12.2)

(9.7)

Net Mark-to-Market Adjustment on Actuarially Determined Liabilities

-

(0.3)

-

Income from Continuing Operations Before Income Taxes

65.8

269.1

402.1

Income Tax Provision

20.1

70.1

118.0

Income from Continuing Operations, Net of Income Taxes

45.7

199.0

284.1

Loss from Discontinued Operations, Net of Income Taxes

(0.7)

(0.3)

(1.3)

Net Income

45.0

198.7

282.8

Less: Net Income Attributable to Noncontrolling Interests

5.4

6.7

14.3

Net Income Attributable to Common Stockholders

$ 39.6

$ 192.0

$ 268.5

Adjusted EBITDA ⁽²⁾

$ 160.5

$ 345.1

$ 390.6

Diluted EPS - Income from Continuing Operations ⁽³⁾⁽⁴⁾

$ 0.30

$ 1.33

$ 1.69

Diluted EPS - Net Income Attributable to Common Stockholders ⁽³⁾

$ 0.29

$ 1.33

$ 1.68

(1)

Excludes items shown separately.

(2)

Adjusted EBITDA is a non-GAAP financial measure. Refer to the "Reconciliation of Non-GAAP Financial Measures" section in this document for definitions and reconciliations to the most comparable measures under U.S. GAAP.

(3)

Weighted average diluted shares outstanding were 144.9 million, 147.2 million and 161.4 million during the quarters ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(4)

Reflects income from continuing operations, net of income taxes less 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 Balance Sheets

As of Mar. 31, 2024 and Dec. 31, 2023

(Dollars In Millions)

(Unaudited)

Mar. 31, 2024

Dec. 31, 2023

Cash and Cash Equivalents

$ 855.7

$ 969.3

Accounts Receivable, Net

343.1

389.7

Inventories, Net

404.3

351.8

Other Current Assets

298.4

308.9

Total Current Assets

1,901.5

2,019.7

Property, Plant, Equipment and Mine Development, Net

2,830.2

2,844.1

Operating Lease Right-of-Use Assets

78.6

61.9

Restricted Cash and Collateral

836.0

957.6

Investments and Other Assets

82.1

78.8

Total Assets

$ 5,728.4

$ 5,962.1

Current Portion of Long-Term Debt

$ 14.4

$ 13.5

Accounts Payable and Accrued Expenses

790.6

965.5

Total Current Liabilities

805.0

979.0

Long-Term Debt, Less Current Portion

323.3

320.7

Deferred Income Taxes

37.2

28.6

Asset Retirement Obligations, Less Current Portion

649.0

648.6

Accrued Postretirement Benefit Costs

146.3

148.4

Operating Lease Liabilities, Less Current Portion

61.5

47.7

Other Noncurrent Liabilities

179.5

181.6

Total Liabilities

2,201.8

2,354.6

Common Stock

1.9

1.9

Additional Paid-in Capital

3,985.1

3,983.0

Treasury Stock

(1,824.8)

(1,740.2)

Retained Earnings

1,142.5

1,112.7

Accumulated Other Comprehensive Income

174.5

189.6

Peabody Energy Corp. Stockholders' Equity

3,479.2

3,547.0

Noncontrolling Interests

47.4

60.5

Total Stockholders' Equity

3,526.6

3,607.5

Total Liabilities and Stockholders' Equity

$ 5,728.4

$ 5,962.1

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, 2024, Dec. 31, 2023 and Mar. 31, 2023

(Dollars In Millions)

Quarter Ended

Mar.

Dec.

Mar.

2024

2023

2023

Cash Flows From Operating Activities

Net Cash Provided By Continuing Operations

$ 120.3

$ 283.6

$ 389.4

Net Cash Used in Discontinued Operations

(1.3)

(1.2)

(3.1)

Net Cash Provided By Operating Activities

119.0

282.4

386.3

Cash Flows From Investing Activities

Additions to Property, Plant, Equipment and Mine Development

(61.4)

(157.9)

(55.7)

Changes in Accrued Expenses Related to Capital Expenditures

(6.8)

8.0

(1.6)

Proceeds from Disposal of Assets, Net of Receivables

2.4

8.9

2.9

Contributions to Joint Ventures

(202.8)

(168.2)

(206.2)

Distributions from Joint Ventures

193.2

142.3

202.0

Advances to Related Parties

-

(0.4)

-

Other, Net

0.2

(0.7)

0.1

Net Cash Used In Investing Activities

(75.2)

(168.0)

(58.5)

Cash Flows From Financing Activities

Repayments of Long-Term Debt

(2.2)

(2.1)

(2.7)

Payment of Debt Issuance and Other Deferred Financing Costs

(10.8)

-

(0.3)

Common Stock Repurchases

(83.1)

(83.7)

-

Repurchase of Employee Common Stock Relinquished for Tax Withholding

(3.4)

-

(13.2)

Dividends Paid

(9.7)

(9.9)

-

Distributions to Noncontrolling Interests

(18.5)

(0.1)

(22.8)

Net Cash Used In Financing Activities

(127.7)

(95.8)

(39.0)

Net Change in Cash, Cash Equivalents and Restricted Cash

(83.9)

18.6

288.8

Cash, Cash Equivalents and Restricted Cash at Beginning of Period

1,650.2

1,631.6

1,417.6

Cash, Cash Equivalents and Restricted Cash at End of Period

$ 1,566.3

$ 1,650.2

$ 1,706.4

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, 2024, Dec. 31, 2023 and Mar. 31, 2023

(Dollars In Millions)

Note: Management believes that non-GAAP performance measures are used by investors to measure our operating performance. These
measures are not intended to serve as alternatives to U.S. GAAP measures of performance and may not be comparable to similarly-titled
measures presented by other companies.

Quarter Ended

Mar.

Dec.

Mar.

2024

2023

2023

Income from Continuing Operations, Net of Income Taxes

$ 45.7

$ 199.0

$ 284.1

Depreciation, Depletion and Amortization

79.8

82.2

76.3

Asset Retirement Obligation Expenses

12.9

4.2

15.4

Restructuring Charges

0.1

0.3

0.1

Asset Impairment

-

-

2.0

Provision for NARM Loss

1.8

3.9

-

Changes in Amortization of Basis Difference Related to Equity Affiliates

(0.4)

(0.4)

(0.3)

Interest Expense

14.7

14.3

18.4

Net Loss on Early Debt Extinguishment

-

-

6.8

Interest Income

(19.2)

(20.3)

(13.1)

Net Mark-to-Market Adjustment on Actuarially Determined Liabilities

-

(0.3)

-

Unrealized Gains on Derivative Contracts Related to Forecasted Sales

-

-

(118.7)

Unrealized Losses (Gains) on Foreign Currency Option Contracts

5.7

(7.3)

2.2

Take-or-Pay Contract-Based Intangible Recognition

(0.7)

(0.6)

(0.6)

Income Tax Provision

20.1

70.1

118.0

Adjusted EBITDA ⁽¹⁾

$ 160.5

$ 345.1

$ 390.6

Operating Costs and Expenses

$ 814.2

$ 872.8

$ 846.6

Unrealized (Losses) Gains on Foreign Currency Option Contracts

(5.7)

7.3

(2.2)

Take-or-Pay Contract-Based Intangible Recognition

0.7

0.6

0.6

Net Periodic Benefit Credit, Excluding Service Cost

(10.1)

(12.2)

(9.7)

Total Reporting Segment Costs ⁽²⁾

$ 799.1

$ 868.5

$ 835.3

(1)

Adjusted EBITDA is defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing each of our segment's operating performance, as displayed in the reconciliation above. Adjusted EBITDA is used by management as the primary metric to measure each of our segment's operating performance and allocate resources.

(2)

Total Reporting Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each of our segment's operating performance, as displayed in the reconciliation above. Total Reporting Segment Costs is used by management as a component of a metric to measure each of our segment's operating performance.

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, 2024, Dec. 31, 2023 and Mar. 31, 2023

Quarter Ended

Mar.

Dec.

Mar.

2024

2023

2023

Revenue Summary (In Millions)

Seaborne Thermal

$ 283.9

$ 286.3

$ 346.5

Seaborne Metallurgical

247.0

394.0

288.4

Powder River Basin

254.1

320.1

305.3

Other U.S. Thermal

191.6

210.7

249.4

Total U.S. Thermal

445.7

530.8

554.7

Corporate and Other

7.0

23.9

174.4

Total

$ 983.6

$ 1,235.0

$ 1,364.0

Total Reporting Segment Costs Summary (In Millions) ⁽¹⁾

Seaborne Thermal

$ 190.1

$ 186.5

$ 182.5

Seaborne Metallurgical

198.7

227.8

197.6

Powder River Basin

237.7

282.5

269.5

Other U.S. Thermal

145.1

168.4

185.2

Total U.S. Thermal

382.8

450.9

454.7

Corporate and Other

27.5

3.3

0.5

Total

$ 799.1

$ 868.5

$ 835.3

Other Supplemental Financial Data (In Millions)

Adjusted EBITDA - Seaborne Thermal

$ 93.8

$ 99.8

$ 164.0

Adjusted EBITDA - Seaborne Metallurgical

48.3

166.2

90.8

Adjusted EBITDA - Powder River Basin

16.4

37.6

35.8

Adjusted EBITDA - Other U.S. Thermal

46.5

42.3

64.2

Adjusted EBITDA - Total U.S. Thermal

62.9

79.9

100.0

Middlemount

(0.8)

(0.5)

2.3

Resource Management Results ⁽²⁾

4.4

9.6

2.3

Selling and Administrative Expenses

(22.0)

(24.7)

(22.8)

Other Operating Costs, Net ⁽³⁾

(26.1)

14.8

54.0

Adjusted EBITDA ⁽¹⁾

$ 160.5

$ 345.1

$ 390.6

(1)

Total Reporting Segment Costs and Adjusted EBITDA are non-GAAP financial measures. Refer to the "Reconciliation of Non-GAAP Financial Measures" section in this document for definitions and reconciliations to the most comparable measures under U.S. GAAP.

(2)

Includes gains (losses) on certain surplus coal reserve and surface land sales and property management costs and revenue.

(3)

Includes trading and brokerage activities, costs associated with post-mining activities, minimum charges on certain transportation-related contracts, costs associated with suspended operations including the Centurion Mine and revenue of $19.2 million related to the assignment of port and rail capacity during the quarter ended March 31, 2023.

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