BTU Peabody Energy Corporation

Guidance Targets

Segment Performance

2021 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

PRB – Total

~85 - 90

~89

~$11.00

~$9.35

Other U.S. Thermal – Total

~16 - 17

~17

~$40.00

~$30.50

Seaborne Thermal (Export)

~9.5 - 10.5

~8.3

~$74.00

NA

Seaborne Thermal – Total

~17 - 18

~16

~$49.00

~$33.75

Seaborne Metallurgical (excluding Shoal Creek)

~5 - 5.3

~4.1

~$100.00

~$93.00

Wilpinjong Performance

2021 Full Year

Volume

(millions of

short tons)

Priced Volume
(millions of short
tons)

Priced Volume
Pricing per Short
Ton

Average Cost per
Short Ton

Wilpinjong (Export)

~6

~4.7

~$61.25

NA

Wilpinjong (Domestic)

~7.5 - 8

~7.7

~$22.00

NA

Wilpinjong – Total

~13.5 - 14

~12.4

~$37.00

~$23.00

Other Annual Financial Metrics ($ in millions)

2021 Full Year

SG&A

~$80

Net Cash Interest Payments

~$150

Interest Expense (Including Non-Cash)

~$190

Total Capital Expenditures

~$200

Major Project Capital Expenditures

~$100

ARO Cash Spend

~$60

Postretirement benefits cash spend

~$30

Multi-employer pension plan (MEPP) payment

~$15

Supplemental Information

PRB and Other U.S. Thermal

PRB and Other U.S. Thermal volumes reflect volumes priced as of September
30, 2021. Weighted average quality for the PRB segment 2021 volume is
approximately 8600 BTU.

Seaborne 2Thermal

Seaborne Thermal volumes reflect volumes priced as of September 30, 2021.
Realized seaborne thermal export pricing varies based on sales timing and
product quality as well as optimization strategies. In general, the Wambo
unpriced products are expected to price with reference to Globalcoal "NEWC"
levels and Wilpinjong, with a higher ash content is anticipated to price at a 5-
20% discount to API 5 price levels.

Seaborne Metallurgical

Does not include guidance for Shoal Creek, production start-up targeted for
second half of Q4-2021 with ramp-up in Q1-2022.

Condensed Consolidated Statements of Operations (Unaudited)

(In Millions, Except Per Share Data)

Quarter Ended

Nine Months Ended

Sept.

Sept.

Sept.

Sept.

2021

2020

2021

2020

Tons Sold

33.7

34.7

96.7

98.6

Revenues ⁽¹⁾

$

679.0

$

671.0

$

2,053.7

$

2,143.9

Operating Costs and Expenses ⁽²⁾

649.4

550.9

1,843.4

1,886.7

Depreciation, Depletion and Amortization

77.9

72.2

223.3

266.5

Asset Retirement Obligation Expenses

14.3

14.3

45.3

46.0

Selling and Administrative Expenses

21.1

27.2

64.2

77.3

Restructuring Charges

1.7

8.1

5.9

31.1

Transaction Costs Related to Joint Ventures

—

6.0

—

23.1

Other Operating (Income) Loss:

Net Gain on Disposals

(25.8)

(2.5)

(28.2)

(10.4)

Asset Impairment

—

—

—

1,418.1

(Income) Loss from Equity Affiliates

(15.8)

10.6

(11.4)

25.7

Operating Loss

(43.8)

(15.8)

(88.8)

(1,620.2)

Interest Expense

45.5

34.9

143.3

102.3

Net Gain on Early Debt Extinguishment

(16.0)

—

(31.3)

—

Interest Income

(1.4)

(1.6)

(4.2)

(7.1)

Net Periodic Benefit (Credit) Costs, Excluding Service Cost

(8.6)

2.8

(26.0)

8.3

Net Mark-to-Market Adjustment on Actuarially Determined Liabilities

—

13.0

—

13.0

Loss from Continuing Operations Before Income Taxes

(63.3)

(64.9)

(170.6)

(1,736.7)

Income Tax (Benefit) Provision

(3.7)

(0.1)

(10.3)

2.7

Loss from Continuing Operations, Net of Income Taxes

(59.6)

(64.8)

(160.3)

(1,739.4)

Income (Loss) from Discontinued Operations, Net of Income Taxes

24.3

(2.3)

20.0

(6.8)

Net Loss

(35.3)

(67.1)

(140.3)

(1,746.2)

Less: Net Income (Loss) Attributable to Noncontrolling Interests

8.9

0.1

12.6

(5.1)

Net Loss Attributable to Common Stockholders

$

(44.2)

$

(67.2)

$

(152.9)

$

(1,741.1)

Adjusted EBITDA ⁽³⁾

$

289.1

$

95.4

$

472.3

$

155.6

Diluted EPS - Loss from Continuing Operations ⁽⁴⁾⁽⁵⁾

$

(0.60)

$

(0.66)

$

(1.65)

$

(17.76)

Diluted EPS - Net Loss Attributable to Common Stockholders ⁽⁴⁾

$

(0.38)

$

(0.69)

$

(1.46)

$

(17.83)

(1)

Includes net losses related to unrealized mark-to-market adjustments on derivatives related to forecasted sales and other financial trading activity of
$238.4 million and $16.1 million during the quarters ended September 30, 2021 and 2020, respectively, and $263.2 million and $13.7 million during the
nine months ended September 30, 2021 and 2020, respectively.

(2)

Excludes items shown separately.

(3)

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.

(4)

During the quarters ended September 30, 2021 and 2020, weighted average diluted shares outstanding were 114.9 million and 97.9 million, respectively.
During the nine months ended September 30, 2021 and 2020, weighted average diluted shares outstanding were 104.9 million and 97.6 million,
respectively.

(5)

Reflects loss from continuing operations, net of income taxes less net income (loss) 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 Nine Months Ended Sept. 30, 2021 and 2020

Quarter Ended

Nine Months Ended

Sept.

Sept.

Sept.

Sept.

2021

2020

2021

2020

Tons Sold (In Millions)

Seaborne Thermal Mining Operations

4.5

4.6

12.7

13.8

Seaborne Metallurgical Mining Operations

1.5

1.1

3.9

4.2

Powder River Basin Mining Operations

22.7

23.6

65.9

65.0

Other U.S. Thermal Mining Operations

4.5

4.8

12.3

13.5

Total U.S. Thermal Mining Operations

27.2

28.4

78.2

78.5

Corporate and Other

0.5

0.6

1.9

2.1

Total

33.7

34.7

96.7

98.6

Revenue Summary (In Millions)

Seaborne Thermal Mining Operations

$

260.7

$

163.0

$

631.2

$

526.1

Seaborne Metallurgical Mining Operations

179.5

78.8

388.0

363.6

Powder River Basin Mining Operations

247.1

264.8

724.1

737.2

Other U.S. Thermal Mining Operations

184.6

179.8

496.0

524.1

Total U.S. Thermal Mining Operations

431.7

444.6

1,220.1

1,261.3

Corporate and Other ⁽¹⁾

(192.9)

(15.4)

(185.6)

(7.1)

Total

$

679.0

$

671.0

$

2,053.7

$

2,143.9

Total Reporting Segment Costs Summary (In Millions) ⁽²⁾

Seaborne Thermal Mining Operations

$

156.3

$

127.7

$

426.9

$

408.0

Seaborne Metallurgical Mining Operations

122.1

106.1

379.4

459.7

Powder River Basin Mining Operations

210.1

186.5

611.5

594.2

Other U.S. Thermal Mining Operations

139.5

128.2

370.4

401.1

Total U.S. Thermal Mining Operations

349.6

314.7

981.9

995.3

Corporate and Other

14.4

7.4

24.2

42.4

Total

$

642.4

$

555.9

$

1,812.4

$

1,905.4

Other Supplemental Financial Data (In Millions)

Adjusted EBITDA - Seaborne Thermal Mining Operations

$

104.4

$

35.3

$

204.3

$

118.1

Adjusted EBITDA - Seaborne Metallurgical Mining Operations

57.4

(27.3)

8.6

(96.1)

Adjusted EBITDA - Powder River Basin Mining Operations

37.0

78.3

112.6

143.0

Adjusted EBITDA - Other U.S. Thermal Mining Operations

45.1

51.6

125.6

123.0

Adjusted EBITDA - Total U.S. Thermal Mining Operations

82.1

129.9

238.2

266.0

Middlemount ⁽³⁾

9.3

(11.1)

2.9

(27.2)

Resource Management Results ⁽⁴⁾

(0.4)

1.0

3.9

9.8

Selling and Administrative Expenses

(21.1)

(27.2)

(64.2)

(77.3)

Other Operating Costs, Net ⁽⁵⁾

57.4

(5.2)

78.6

(37.7)

Adjusted EBITDA ⁽²⁾

$

289.1

$

95.4

$

472.3

$

155.6

Note:  See footnote explanations on following page

Supplemental Financial Data (Unaudited)

For the Quarters and Nine Months Ended Sept. 30, 2021 and 2020

Quarter Ended

Nine Months Ended

Sept.

Sept.

Sept.

Sept.

2021

2020

2021

2020

Revenues per Ton - Mining Operations ⁽⁶⁾

Seaborne Thermal

$

58.53

$

35.28

$

49.86

$

38.14

Seaborne Metallurgical

119.98

71.88

99.18

87.16

Powder River Basin

10.88

11.26

10.99

11.35

Other U.S. Thermal

40.99

37.20

40.20

38.67

Total U.S. Thermal

15.87

15.68

15.59

16.07

Costs per Ton - Mining Operations ⁽⁶⁾⁽⁷⁾

Seaborne Thermal

$

35.09

$

27.59

$

33.72

$

29.58

Seaborne Metallurgical

81.61

96.87

96.98

110.20

Powder River Basin

9.25

7.93

9.28

9.15

Other U.S. Thermal

30.99

26.52

30.02

29.60

Total U.S. Thermal

12.86

11.10

12.55

12.68

Adjusted EBITDA Margin per Ton - Mining Operations ⁽⁶⁾⁽⁷⁾

Seaborne Thermal

$

23.44

$

7.69

$

16.14

$

8.56

Seaborne Metallurgical

38.37

(24.99)

2.20

(23.04)

Powder River Basin

1.63

3.33

1.71

2.20

Other U.S. Thermal

10.00

10.68

10.18

9.07

Total U.S. Thermal

3.01

4.58

3.04

3.39

(1)

Includes net losses related to unrealized mark-to-market adjustments on derivatives related to forecasted sales and other financial trading activity of $238.4 million and $16.1 million during the quarters ended September 30, 2021 and 2020, respectively, and $263.2 million and $13.7 million during the nine months ended September 30, 2021 and 2020, respectively.

(2)

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.

(3)

We account for our 50% equity interest in Middlemount Coal Pty Ltd. (Middlemount), which owns the Middlemount Mine, under the equity method. Middlemount's standalone results exclude the impact of related changes in deferred tax asset valuation allowance and reserves and amortization of basis difference recorded by the company in applying the equity method. Middlemount's standalone results include (on a 50% attributable basis):

Quarter Ended

Nine Months Ended

Sept.

Sept.

Sept.

Sept.

2021

2020

2021

2020

(In Millions)

Tons sold

0.5

0.4

1.6

1.2

Depreciation, depletion and amortization and asset retirement obligation expenses

$

8.2

$

9.2

$

21.8

$

23.5

Net interest expense

4.9

4.1

15.0

10.0

Income tax provision (benefit)

4.8

(4.7)

3.9

(11.7)

(4)

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

(5)

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 North Goonyella Mine and the Q3 2021 gain of
$26.1 million recognized on the sale of the Millennium Mine.

(6)

Revenues per Ton, Costs per Ton and Adjusted EBITDA Margin per Ton are metrics used by management to measure each of our mining segment's operating performance. Revenues per Ton and Adjusted EBITDA Margin per Ton are equal to revenues by segment and Adjusted EBITDA by segment, respectively, divided by segment tons sold. Costs per Ton is equal to Revenues 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 mining segment level. We consider all measures reported on a per ton basis to be operating/statistical measures; however, we include reconciliations of the related non-GAAP financial measures (Adjusted EBITDA and Total Reporting Segment Costs) in the "Reconciliation of Non-GAAP Financial Measures" section in this document.

(7)

Includes revenue-based production taxes and royalties; excludes depreciation, depletion and amortization; asset retirement obligation expenses;
selling and administrative expenses; restructuring charges; asset impairment; amortization of take-or-pay contract-based intangibles; and certain
other costs related to post-mining activities.

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

Condensed Consolidated Balance Sheets

As of Sept. 30, 2021 and Dec. 31, 2020

(Dollars In Millions)

(Unaudited)

Sept. 30, 2021

Dec. 31, 2020

Cash and Cash Equivalents

$

587.0

$

709.2

Accounts Receivable, Net

276.0

244.8

Inventories

224.5

261.6

Other Current Assets

223.8

204.7

Total Current Assets

1,311.3

1,420.3

Property, Plant, Equipment and Mine Development, Net

2,952.0

3,051.1

Operating Lease Right-of-Use Assets

38.4

49.9

Investments and Other Assets

140.8

140.9

Deferred Income Taxes

—

4.9

Total Assets

$

4,442.5

$

4,667.1

Current Portion of Long-Term Debt

$

59.5

$

44.9

Accounts Payable and Accrued Expenses

761.7

745.7

Total Current Liabilities

821.2

790.6

Long-Term Debt, Less Current Portion

1,268.7

1,502.9

Deferred Income Taxes

13.0

35.0

Asset Retirement Obligations

641.9

650.5

Accrued Postretirement Benefit Costs

402.2

413.2

Operating Lease Liabilities, Less Current Portion

31.6

42.1

Other Noncurrent Liabilities

221.6

251.5

Total Liabilities

3,400.2

3,685.8

Common Stock

1.6

1.4

Additional Paid-in Capital

3,605.1

3,364.6

Treasury Stock

(1,370.2)

(1,368.9)

Accumulated Deficit

(1,426.2)

(1,273.3)

Accumulated Other Comprehensive Income

171.6

205.8

Peabody Energy Corporation Stockholders' Equity

981.9

929.6

Noncontrolling Interests

60.4

51.7

Total Stockholders' Equity

1,042.3

981.3

Total Liabilities and Stockholders' Equity

$

4,442.5

$

4,667.1

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 Nine Months Ended Sept. 30, 2021 and 2020

(Dollars In Millions)

Nine Months Ended

Sept.

Sept.

2021

2020

Cash Flows From Operating Activities

Net Cash Provided By (Used In) Continuing Operations

$

0.5

$

(9.7)

Net Cash Used in Discontinued Operations

(18.9)

(22.4)

Net Cash Used In Operating Activities

(18.4)

(32.1)

Cash Flows From Investing Activities

Additions to Property, Plant, Equipment and Mine Development

(123.6)

(131.9)

Changes in Accrued Expenses Related to Capital Expenditures

(3.3)

(14.9)

Proceeds from Disposal of Assets, Net of Receivables

12.7

15.4

Contributions to Joint Ventures

(363.8)

(275.2)

Distributions from Joint Ventures

350.3

271.0

Advances to Related Parties

(0.4)

(23.1)

Cash Receipts from Middlemount Coal Pty Ltd and Other Related Parties

8.4

—

Other, Net

—

(0.7)

Net Cash Used In Investing Activities

(119.7)

(159.4)

Cash Flows From Financing Activities

Proceeds from Long-Term Debt

—

360.0

Repayments of Long-Term Debt

(133.6)

(81.0)

Payment of Debt Issuance and Other Deferred Financing Costs

(22.5)

—

Proceeds from Common Stock Issuances, Net of Costs

177.2

—

Repurchase of Employee Common Stock Relinquished for Tax Withholding

(1.3)

(1.6)

Distributions to Noncontrolling Interests

(3.9)

(3.5)

Net Cash Provided By Financing Activities

15.9

273.9

Net Change in Cash, Cash Equivalents and Restricted Cash

(122.2)

82.4

Cash, Cash Equivalents and Restricted Cash at Beginning of Period

709.2

732.2

Cash, Cash Equivalents and Restricted Cash at End of Period

$

587.0

$

814.6

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 Quarters and Nine Months Ended Sept. 30, 2021 and 2020

(Dollars In Millions)

Note: Management believes that non-GAAP performance measures are used by investors to measure our operating performance and lenders to measure our ability to incur and service debt. 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

Nine Months Ended

Sept.

Sept.

Sept.

Sept.

2021

2020

2021

2020

Loss from Continuing Operations, Net of Income Taxes

$

(59.6)

$

(64.8)

$

(160.3)

$

(1,739.4)

Depreciation, Depletion and Amortization

77.9

72.2

223.3

266.5

Asset Retirement Obligation Expenses

14.3

14.3

45.3

46.0

Restructuring Charges

1.7

8.1

5.9

31.1

Transaction Costs Related to Joint Ventures

—

6.0

—

23.1

Asset Impairment

—

—

—

1,418.1

Changes in Deferred Tax Asset Valuation Allowance and Reserves and Amortization of Basis Difference Related to Equity Affiliates

(6.4)

(0.5)

(8.4)

(1.6)

Interest Expense

45.5

34.9

143.3

102.3

Net Gain on Early Debt Extinguishment

(16.0)

—

(31.3)

—

Interest Income

(1.4)

(1.6)

(4.2)

(7.1)

Net Mark-to-Market Adjustment on Actuarially Determined Liabilities

—

13.0

—

13.0

Unrealized Losses on Derivative Contracts Related to Forecasted Sales

238.4

16.1

264.0

11.3

Unrealized (Gains) Losses on Foreign Currency Option Contracts

(0.6)

(0.7)

8.2

(3.6)

Take-or-Pay Contract-Based Intangible Recognition

(1.0)

(1.5)

(3.2)

(6.8)

Income Tax (Benefit) Provision

(3.7)

(0.1)

(10.3)

2.7

Adjusted EBITDA ⁽¹⁾

$

289.1

$

95.4

$

472.3

$

155.6

Operating Costs and Expenses

$

649.4

$

550.9

$

1,843.4

$

1,886.7

Unrealized Gains (Losses) on Foreign Currency Option Contracts

0.6

0.7

(8.2)

3.6

Take-or-Pay Contract-Based Intangible Recognition

1.0

1.5

3.2

6.8

Net Periodic Benefit (Credit) Costs, Excluding Service Cost

(8.6)

2.8

(26.0)

8.3

Total Reporting Segment Costs ⁽²⁾

$

642.4

$

555.9

$

1,812.4

$

1,905.4

Net Cash Used In Operating Activities

$

(18.4)

$

(32.1)

Net Cash Used In Investing Activities

(119.7)

(159.4)

Free Cash Flow ⁽³⁾

$

(138.1)

$

(191.5)

(1)

Adjusted EBITDA is defined as loss 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.

(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 metric to measure each of our segment's operating performance.

(3)

Free Cash Flow is defined as net cash used in operating activities less net cash used in investing activities and excludes cash outflows related to business combinations. 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.

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