What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-05-09 compared with 2023-11-03 · 205 added, 322 removed, 531 unchanged (50% of the section changed)

2 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(Dollars in millions, except per share data)

9 unchanged sentences

Asset impairment — 2.0

Provision for NARM and Shoal Creek loss 3.3 — 37.0 —

Income from equity affiliates ( 5.6 ) ( 27.5 ) ( 9.7 ) ( 120.9 )

Provision for NARM loss 1.8 —

Loss (income) from equity affiliates 3.7 ( 1.8 )

Operating profit 51.2 404.5

6 unchanged sentences

Income from continuing operations, net of income taxes 45.7 284.1

Income (loss) from discontinued operations, net of income taxes 2.5 ( 0.8 ) ( 0.1 ) ( 2.3 )

Loss from discontinued operations, net of income taxes ( 0.7 ) ( 1.3 )

Net income 45.0 282.8

10 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(Dollars in millions)

10 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(Amounts in millions, except per share data)

1 unchanged sentence

Cash and cash equivalents $ 855.7 $ 969.3

Accounts receivable, net of allowance for credit losses of $ 0.0 at September 30, 2023 and December 31, 2022

Accounts receivable, net of allowance for credit losses of $ 0.0 at March 31, 2024 and December 31, 2023

Inventories, net 404.3 351.8

5 unchanged sentences

Investments and other assets 82.1 78.8

Deferred income taxes 2.5 74.7

Total assets $ 5,728.4 $ 5,962.1

6 unchanged sentences

Deferred income taxes 37.2 28.6

Asset retirement obligations 669.7 665.8

Asset retirement obligations, less current portion 649.0 648.6

Accrued postretirement benefit costs 146.3 148.4

4 unchanged sentences

Preferred Stock — $ 0.01 per share par value;

100.0 shares authorized, no shares issued or outstanding as of September 30, 2023 and December 31, 2022

100.0 shares authorized, no shares issued or outstanding as of March 31, 2024 and December 31, 2023

Series Common Stock — $ 0.01 per share par value;

50.0 shares authorized, no shares issued or outstanding as of September 30, 2023 and December 31, 2022

50.0 shares authorized, no shares issued or outstanding as of March 31, 2024 and December 31, 2023

Common Stock — $ 0.01 per share par value;

450.0 shares authorized, 188.6 shares issued and 132.2 shares outstanding as of September 30, 2023 and 187.1 shares issued and 143.9 shares outstanding as of December 31, 2022

450.0 shares authorized, 189.0 shares issued and 125.8 shares outstanding as of March 31, 2024 and 188.6 shares issued and 128.7 shares outstanding as of December 31, 2023

Additional paid-in capital 3,985.1 3,983.0

Treasury stock, at cost — 56.4 and 43.2 common shares as of September 30, 2023 and December 31, 2022

Treasury stock, at cost — 63.2 and 59.9 common shares as of March 31, 2024 and December 31, 2023

( 1,824.8 ) ( 1,740.2 )

8 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in millions)

9 unchanged sentences

Asset impairment — 2.0

Noncash provision for NARM and Shoal Creek loss 33.7 —

Net gain on disposals ( 2.1 ) ( 1.9 )

1 unchanged sentence

Net loss on early debt extinguishment — 6.8

Income from equity affiliates ( 9.7 ) ( 120.9 )

Loss (income) from equity affiliates 3.7 ( 1.8 )

Foreign currency option contracts 5.7 2.2

15 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in millions)

5 unchanged sentences

Distributions from joint ventures 193.2 202.0

Advances to related parties ( 0.1 ) ( 1.3 )

Cash receipts from Middlemount Coal Pty Ltd and other related parties 2.6 154.9

Other, net 0.2 0.1

Net cash (used in) provided by investing activities ( 174.6 ) 61.1

Net cash used in investing activities ( 75.2 ) ( 58.5 )

Cash Flows From Financing Activities

Proceeds from long-term debt — 545.0

Repayments of long-term debt ( 2.2 ) ( 2.7 )

Payment of debt issuance and other deferred financing costs ( 10.8 ) ( 0.3 )

Proceeds from common stock issuances, net of costs — 222.0

Common stock repurchases ( 83.1 ) —

19 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(Dollars in millions, except per share data)

Balance, beginning of period $ 1.9 $ 1.9

Common stock issuances, net of costs — — — 0.1

Balance, end of period 1.9 1.9

3 unchanged sentences

Share-based compensation for equity-classified awards 2.0 1.7

Common stock issuances, net of costs — — — 221.9

Balance, end of period 3,985.1 3,977.6

6 unchanged sentences

Balance, end of period ( 1,824.8 ) ( 1,386.1 )

Retained earnings (Accumulated deficit)

Retained earnings

Balance, beginning of period 1,112.7 383.9

1 unchanged sentence

Dividends declared ($ 0.075 and $ 0.000 per share, respectively)

( 10.0 ) — ( 20.9 ) —

Balance, end of period 1,142.5 652.4

15 unchanged sentences

(1) Basis of Presentation

The condensed consolidated financial statements include the accounts of Peabody Energy Corporation (PEC) and its consolidated subsidiaries and affiliates (along with PEC, the Company or Peabody).

The unaudited condensed consolidated financial statements include the accounts of Peabody Energy Corporation (PEC) and its consolidated subsidiaries and affiliates (along with PEC, the Company or Peabody).

Interests in subsidiaries controlled by the Company are consolidated with any outside stockholder interests reflected as noncontrolling interests, except when the Company has an undivided interest in a joint venture.

7 unchanged sentences

Balance sheet information presented herein as of December 31, 2023 has been derived from the Company’s audited consolidated balance sheet at that date.

The Company’s results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2023.

The Company’s results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2024.

(2) Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented

Newly Adopted Accounting Standards

The Company did not adopt any new accounting standards that had a material impact on its unaudited condensed consolidated financial statements or disclosures.

Accounting Standards Not Yet Implemented

Joint Ventures.

In August 2023, Accounting Standards Update 2023-05 was issued, which requires joint ventures to recognize and measure the initial contributions of monetary and nonmonetary assets and its net assets at fair value.

In August 2023, Accounting Standards Update (ASU) 2023-05 was issued, which requires joint ventures to recognize and measure the initial contributions of monetary and nonmonetary assets and its net assets at fair value.

The Company is required to apply the amendments for joint ventures with a formation date on or after January 1, 2025.

A joint venture that was formed before January 1, 2025 may apply the amendments retrospectively.

The Company does not expect the guidance to have a material impact on its consolidated financial statements or disclosures.

The Company will apply the guidance to any newly formed joint ventures.

In November 2023, ASU 2023-07 was issued, which requires public entities to provide in interim periods all disclosures about a reportable segment’s profit or loss that are currently required annually;

disclose significant expense categories and amounts that are easily computable from the management reports that are regularly provided to the chief operating decision maker (CODM);

disclose how the CODM uses each reported measure to allocate resources;

and disclose the name and title of the position of the individual identified as the CODM.

The Company is required to adopt the amendments for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

The Company expects this ASU to only impact its disclosures with no impacts to its consolidated results of operations, cash flows and financial condition.

Income Taxes .

In December 2023, ASU 2023-09 was issued, which requires public entities to disclose more information primarily related to the income tax rate reconciliation and income taxes paid.

The guidance also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities.

The Company is required to adopt the amendments for fiscal years beginning after December 15, 2024.

The amendments should be applied prospectively, with a retrospective option.

Early adoption is permitted.

The Company expects this ASU to only impact its disclosures with no impacts to its consolidated results of operations, cash flows and financial condition.

(3) Revenue Recognition

1 unchanged sentence

“Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, for the Company’s policies regarding “Revenue” and “Accounts receivable, net.”

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Disaggregation of Revenue

1 unchanged sentence

With respect to its seaborne reporting segments, the Company classifies as “Export” certain revenue from domestically-delivered coal under contracts in which the price is derived on a basis similar to export contracts.

Three Months Ended September 30, 2023

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.

Thermal Corporate and Other (1)

(Dollars in millions)

Domestic $ 31.3 $ — $ 313.3 $ 227.1 $ — $ 571.7

Export 265.9 — — — — 265.9

Total thermal 297.2 — 313.3 227.1 — 837.6

Metallurgical coal

Export — 246.0 — — — 246.0

Total metallurgical — 246.0 — — — 246.0

0.2 1.0 ( 0.3 ) 1.1 ( 6.7 ) ( 4.7 )

Revenue $ 297.4 $ 247.0 $ 313.0 $ 228.2 $ ( 6.7 ) $ 1,078.9

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Three Months Ended September 30, 2022

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.

Thermal Corporate and Other (1)

(Dollars in millions)

Domestic $ 44.8 $ — $ 290.2 $ 259.8 $ — $ 594.8

Export 308.3 — — — — 308.3

Total thermal 353.1 — 290.2 259.8 — 903.1

Metallurgical coal

Export — 309.9 — — — 309.9

Total metallurgical — 309.9 — — — 309.9

0.1 0.8 0.3 1.6 126.7 129.5

Revenue $ 353.2 $ 310.7 $ 290.5 $ 261.4 $ 126.7 $ 1,342.5

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.

9 unchanged sentences

Revenue $ 283.9 $ 247.0 $ 254.1 $ 191.6 $ 7.0 $ 983.6

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.

10 unchanged sentences

(1) Corporate and Other includes the following:

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(Dollars in millions)

Unrealized gains (losses) on derivative contracts related to forecasted sales $ — $ 90.4 $ 159.0 $ ( 235.1 )

Unrealized gains on derivative contracts related to forecasted sales $ — $ 118.7

Realized losses on derivative contracts related to forecasted sales — ( 50.6 )

Revenue from physical sale of coal (3)

( 10.4 ) 150.7 97.4 294.0

Trading revenue ( 0.1 ) 0.3 — 10.7

3.8 2.7 29.4 8.3

Total Corporate and Other $ 7.0 $ 174.4

6 unchanged sentences

Primarily represents the difference between the price contracted with the customer and the price allocated to the operating segment.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Accounts Receivable

“Accounts receivable, net” at September 30, 2023 and December 31, 2022 consisted of the following:

September 30, 2023 December 31, 2022

“Accounts receivable, net” at March 31, 2024 and December 31, 2023 consisted of the following:

March 31, 2024 December 31, 2023

(Dollars in millions)

2 unchanged sentences

Accounts receivable, net $ 343.1 $ 389.7

None of the above receivables included allowances for credit losses at September 30, 2023 or December 31, 2022.

No charges for credit losses were recognized during the three and nine months ended September 30, 2023 or 2022.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

None of the above receivables included allowances for credit losses at March 31, 2024 or December 31, 2023.

No charges for credit losses were recognized during the three months ended March 31, 2024 or 2023.

(4) Inventories

“Inventories, net” as of September 30, 2023 and December 31, 2022 consisted of the following:

September 30, 2023 December 31, 2022

“Inventories, net” as of March 31, 2024 and December 31, 2023 consisted of the following:

March 31, 2024 December 31, 2023

(Dollars in millions)

3 unchanged sentences

Inventories, net $ 404.3 $ 351.8

Materials and supplies inventories, net presented above have been shown net of reserves of $ 7.8 million and $ 9.5 million as of September 30, 2023 and December 31, 2022.

Materials and supplies inventories, net presented above have been shown net of reserves of $ 6.4 million and $ 7.2 million as of March 31, 2024 and December 31, 2023, respectively.

(5) Equity Method Investments

The Company’s equity method investments include its joint venture interest in Middlemount Coal Pty Ltd (Middlemount), R3 Renewables LLC (R3) and certain other equity method investments.

The table below summarizes the book value of those investments, which are reported in “Investments and other assets” in the condensed consolidated balance sheets, and the related “Income from equity affiliates”:

(Income) Loss from Equity Affiliates

Book Value at Three Months Ended September 30, Nine Months Ended September 30,

September 30, 2023 December 31, 2022 2023 2022 2023 2022

Loss (Income) from Equity Affiliates

Book Value at Three Months Ended March 31,

March 31, 2024 December 31, 2023 2024 2023

(Dollars in millions)

2 unchanged sentences

Total equity method investments $ 48.4 $ 49.6 $ 3.7 $ ( 1.8 )

The Company received no cash payments from Middlemount during the nine months ended September 30, 2023.

Payments of $ 151.5 million were received from Middlemount during the nine months ended September 30, 2022.

One of the Company’s Australian subsidiaries is party to an agreement to provide a revolving loan to Middlemount.

The Company’s participation in the revolving loan will not, at any time, exceed its 50 % equity interest of the revolving loan limit, which was $ 50 million Australian dollars at September 30, 2023.

The revolving loan bears interest at 10 % per annum and expires on December 31, 2023.

There was no outstanding revolving loan at September 30, 2023 or December 31, 2022.

In March 2022, the Company entered into a joint venture with unrelated partners to form R3.

R3 was formed with the intent of developing various sites, including certain reclaimed mining land held by the Company in the U.S., for utility-scale photovoltaic solar generation and battery storage.

The Company contributed $ 5.5 million and $ 10.9 million to R3 during the nine months ended September 30, 2023 and 2022, respectively.

(6) Derivatives and Fair Value Measurements

From time to time, the Company may utilize various types of derivative instruments to manage its exposure to risks in the normal course of business, including (1) foreign currency exchange rate risk and the variability of cash flows associated with forecasted Australian dollar expenditures made in its Australian mining platform, (2) price risk of fluctuating coal prices related to forecasted sales or purchases of coal, or changes in the fair value of a fixed price physical sales contract, (3) price risk and the variability of cash flows related to forecasted diesel fuel purchased for use in its operations and (4) interest rate risk on long-term debt.

These risk management activities are actively monitored for compliance with the Company’s risk management policies.

The Company contributed $ 4.5 million and $ 2.0 million to R3 during the three months ended March 31, 2024 and 2023, respectively.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(6) Derivatives and Fair Value Measurements

From time to time, the Company may utilize various types of derivative instruments to manage its exposure to risks in the normal course of business, including (1) foreign currency exchange rate risk and the variability of cash flows associated with forecasted Australian dollar expenditures made in its Australian mining platform and (2) price risk of fluctuating coal prices related to forecasted sales or purchases of coal, or changes in the fair value of a fixed price physical sales contract.

These risk management activities are actively monitored for compliance with the Company’s risk management policies.

On a limited basis, the Company engages in the direct and brokered trading of coal and freight-related contracts.

Except those contracts for which the Company has elected to apply a normal purchases and normal sales exception, all derivative coal trading contracts are accounted for at fair value.

The Company had no diesel fuel or interest rate derivatives in place as of September 30, 2023.

Foreign Currency Option Contracts

The Company has historically utilized currency forwards and options to hedge currency risk associated with anticipated Australian dollar operating expenditures.

As of September 30, 2023, the Company held average rate options with an aggregate notional amount of $ 615.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending June 30, 2024.

Foreign Currency

The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures.

As of March 31, 2024, the Company held average rate options with an aggregate notional amount of $ 516.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending December 31, 2024.

The instruments entitle the Company to receive payment on the notional amount should the quarterly average Australian dollar-to-U.S.

dollar exchange rate exceed amounts ranging from $ 0.70 to $ 0.72 over the nine-month period ending June 30, 2024.

As of September 30, 2023, the Company also held purchased collars with an aggregate notional amount of $ 339.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the six-month period ending March 31, 2024.

dollar exchange rate exceed amounts ranging from $ 0.69 to $ 0.72 over the nine-month period ending December 31, 2024.

As of March 31, 2024, the Company also held purchased collars with an aggregate notional amount of $ 431.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending December 31, 2024.

The purchased collars have a floor and ceiling of approximately $ 0.59 and $ 0.72 , respectively, whereby the Company will incur a loss on the instruments for rates below the floor and a gain for rates above the ceiling.

Derivative Contracts Related to Forecasted Sales

As of September 30, 2023, the Company had no coal derivative contracts related to its forecasted sales.

Historically, such financial contracts have included futures, forwards and options.

The Company classifies certain physical forward sales contracts as derivatives for which the normal purchase, normal sales exception does not apply.

During the three months ended September 30, 2023, the Company recorded no unrealized mark-to-market gains or losses on coal derivative contracts.

During the three months ended September 30, 2022, the Company recorded a net unrealized mark-to-market gain of $ 90.4 million on coal derivative contracts, which included approximately $ 49 million of unrealized mark-to-market gains on financial derivatives and approximately $ 41 million of unrealized mark-to-market gains on physical forward sales contracts.

During the nine months ended September 30, 2023, the Company recorded a net unrealized mark-to-market gain of $ 159.0 million on financial coal derivative contracts and no unrealized mark-to-market gains or losses on physical forward sales contracts.

During the nine months ended September 30, 2022, the Company recorded a net unrealized mark-to-market loss of $ 235.1 million on coal derivative contracts, which included approximately $ 257 million of unrealized mark-to-market losses on financial derivatives and approximately $ 22 million of unrealized mark-to-market gains on physical forward sales contracts.

As of March 31, 2024, the Company had no coal derivative contracts related to its forecasted sales.

Historically, such financial contracts have included futures and forwards.

Financial Trading Contracts

1 unchanged sentence

Such financial contracts may include futures, forwards and options.

The Company held nominal financial trading contracts as of September 30, 2023.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company held nominal financial trading contracts as of March 31, 2024.

Tabular Derivatives Disclosures

2 unchanged sentences

For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the condensed consolidated balance sheets.

The fair value of derivatives reflected in the accompanying condensed consolidated balance sheets are set forth in the table below.

September 30, 2023 December 31, 2022

Asset Derivative Liability Derivative Asset Derivative Liability Derivative

(Dollars in millions)

Foreign currency option contracts $ 0.1 $ — $ 3.0 $ —

Derivative contracts related to forecasted sales — — 100.6 ( 310.3 )

Financial trading contracts — — 11.7 —

Total derivatives 0.1 — 115.3 ( 310.3 )

Effect of counterparty netting — — ( 100.6 ) 100.6

Variation margin (received) posted — — ( 11.7 ) 209.7

Net derivatives and variation margin as classified in the balance sheets $ 0.1 $ — $ 3.0 $ —

The Company generally posts or receives variation margin cash with its clearing broker on the majority of its financial derivatives as market values of the financial derivatives fluctuate.

As of September 30, 2023, the Company had no margin cash posted.

As of December 31, 2022, the Company had posted $ 255.5 million aggregate margin cash, consisting of $ 198.0 million variation margin cash and $ 57.5 million initial margin.

The net amount of asset derivatives, net of variation margin, is included in “Other current assets” and the net amount of liability derivatives, net of variation margin, is included in “Accounts payable and accrued expenses” in the accompanying condensed consolidated balance sheets.

As of March 31, 2024 and December 31, 2023, the Company had asset derivatives comprised of foreign currency option contracts with a fair value of $ 0.7 million and $ 6.2 million, respectively.

The net amount of asset derivatives is included in “Other current assets” in the accompanying condensed consolidated balance sheets.

PEABODY ENERGY CORPORATION

2 unchanged sentences

The tables below show the amounts of pretax gains and losses related to the Company’s derivatives and their classification within the accompanying unaudited condensed consolidated statements of operations.

Three Months Ended September 30, 2023

Total loss recognized in income Loss realized in income on derivatives Unrealized (loss) gain recognized in income on derivatives

Derivative Instrument Classification

(Dollars in millions)

Foreign currency option contracts Operating costs and expenses $ ( 2.7 ) $ ( 2.2 ) $ ( 0.5 )

Financial trading contracts Revenue ( 0.1 ) ( 19.7 ) 19.6

Total $ ( 2.8 ) $ ( 21.9 ) $ 19.1

Three Months Ended September 30, 2022

Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized (loss) gain recognized in income on derivatives

Derivative Instrument Classification

(Dollars in millions)

Foreign currency option contracts Operating costs and expenses $ ( 3.0 ) $ ( 1.6 ) $ ( 1.4 )

Derivative contracts related to forecasted sales Revenue ( 27.0 ) ( 117.4 ) 90.4

Financial trading contracts Revenue 0.3 0.5 ( 0.2 )

Total $ ( 29.7 ) $ ( 118.5 ) $ 88.8

Nine Months Ended September 30, 2023

Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized gain (loss) recognized in income on derivatives

Three Months Ended March 31, 2024

Total loss recognized in income Loss realized in income on derivatives Unrealized loss recognized in income on derivatives

Derivative Instrument Classification

1 unchanged sentence

Foreign currency option contracts Operating costs and expenses $ ( 6.5 ) $ ( 0.8 ) $ ( 5.7 )

Derivative contracts related to forecasted sales Revenue 78.1 ( 80.9 ) 159.0

Financial trading contracts Revenue — 11.5 ( 11.5 )

Total $ ( 6.5 ) $ ( 0.8 ) $ ( 5.7 )

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

Total (loss) gain recognized in income (Loss) gain realized in income on derivatives Unrealized (loss) gain recognized in income on derivatives

6 unchanged sentences

The Company classifies the cash effects of its derivatives within the “Cash Flows From Operating Activities” section of the unaudited condensed consolidated statements of cash flows.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Fair Value Measurements

4 unchanged sentences

and Level 3 - inputs are unobservable, or observable but cannot be market-corroborated, requiring the Company to make assumptions about pricing by market participants.

The following tables set forth the hierarchy of the Company’s net asset (liability) positions for which fair value is measured on a recurring basis.

Variation margin cash associated with the derivative balances is excluded from this table.

September 30, 2023

The following tables set forth the hierarchy of the Company’s net asset positions for which fair value is measured on a recurring basis.

March 31, 2024

Level 1 Level 2 Level 3 Total

1 unchanged sentence

Foreign currency option contracts $ — $ 0.7 $ — $ 0.7

Derivative contracts related to forecasted sales — — — —

Financial trading contracts — — — —

Equity securities 0.9 — — 0.9

4 unchanged sentences

Foreign currency option contracts $ — $ 6.2 $ — $ 6.2

Derivative contracts related to forecasted sales — ( 209.7 ) — ( 209.7 )

Financial trading contracts — 11.7 — 11.7

Equity securities 0.4 — — 0.4

Total net (liabilities) assets $ — $ ( 195.0 ) $ 2.5 $ ( 192.5 )

Total net assets $ 0.4 $ 6.2 $ — $ 6.6

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For Level 1 and 2 financial assets and liabilities, the Company utilizes both direct and indirect observable price quotes, including interest rate yield curves, exchange indices, broker/dealer quotes, published indices, issuer spreads, benchmark securities and other market quotes.

5 unchanged sentences

Other Financial Instruments .

The following methods and assumptions were used by the Company in estimating fair values for other financial instruments as of September 30, 2023 and December 31, 2022:

The following methods and assumptions were used by the Company in estimating fair values for other financial instruments as of March 31, 2024 and December 31, 2023:

• Cash and cash equivalents, restricted cash, accounts receivable, including those within the Company’s accounts receivable securitization program, margining cash, notes receivable and accounts payable have carrying values which approximate fair value due to the short maturity or the liquid nature of these instruments.

• Long-term debt fair value estimates are based on observed prices for securities when available (Level 2), and otherwise on estimated borrowing rates to discount the cash flows to their present value (Level 3).

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Market risk associated with the Company’s fixed- and variable-rate long-term debt relates to the potential reduction in the fair value and negative impact to future earnings, respectively, from an increase in interest rates.

Market risk associated with the Company’s fixed-rate long-term debt relates to the potential reduction in the fair value from an increase in interest rates.

The fair value of debt, shown below, is principally based on reported market values and estimates based on interest rates, maturities, credit risk, underlying collateral and completed market transactions.

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

(Dollars in millions)

9 unchanged sentences

therefore, a change in one unobservable input would not necessarily correspond with a change in another unobservable input.

During the nine months ended September 30, 2023, the entity in which the Company held a Level 3 investment in equity securities completed a merger transaction and its shares were exchanged for the shares of the newly-combined entity, which are publicly traded.

During the three months ended March 31, 2023, the entity in which the Company held a Level 3 investment in equity securities completed a merger transaction and its shares were exchanged for the shares of the newly-combined entity, which are publicly traded.

The Company recorded an impairment loss of $ 2.0 million upon the exchange of shares.

The Company had no transfers between Levels 1, 2 and 3 during the three and nine months ended September 30, 2023 and 2022.

The Company had no transfers between Levels 1, 2 and 3 during the three months ended March 31, 2024 and 2023.

The Company’s policy is to value all transfers between levels using the beginning of period valuation.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(7) Property, Plant, Equipment and Mine Development

The composition of property, plant, equipment and mine development, net, as of September 30, 2023 and December 31, 2022 is set forth in the table below:

September 30, 2023 December 31, 2022

The composition of property, plant, equipment and mine development, net, as of March 31, 2024 and December 31, 2023 is set forth in the table below:

March 31, 2024 December 31, 2023

(Dollars in millions)

5 unchanged sentences

Asset Impairment and Other At-Risk Assets

The Company identified certain assets with an aggregate carrying value of approximately $ 388 million at September 30, 2023 in its Powder River Basin and Other U.S.

Thermal segments whose recoverability is most sensitive to customer demand and customer concentration risk.

The Company conducted a review of those assets as of September 30, 2023 and determined that no impairment charges were necessary as of that date.

The Company identified certain assets with an aggregate carrying value of approximately $ 219 million at March 31, 2024 in its Other U.S.

Thermal segment whose recoverability is most sensitive to customer concentration risk.

(8) Income Taxes

The Company's effective tax rate before remeasurement for the nine months ended September 30, 2023 is based on the Company’s estimated full year effective tax rate, comprised of expected statutory tax provision, offset by foreign rate differential and changes in valuation allowance.

The Company’s income tax provisions of $ 46.5 million and $ 10.7 million for the three months ended September 30, 2023 and 2022, respectively, included tax benefits of $ 3.3 million and $ 1.6 million, respectively, related to the remeasurement of foreign income tax accounts.

The Company’s income tax provisions of $ 238.7 million and $ 21.0 million for the nine months ended September 30, 2023 and 2022, respectively, included tax benefits of $ 2.6 million and $ 3.5 million, respectively, related to the remeasurement of foreign income tax accounts.

The Company's effective tax rate before remeasurement for the three months ended March 31, 2024 is based on the Company’s estimated full year effective tax rate, comprised of expected statutory tax provision, offset by foreign rate differential and changes in valuation allowance.

The Company’s income tax provisions of $ 20.1 million and $ 118.0 million for the three months ended March 31, 2024 and 2023, respectively, included a tax benefit of $ 5.8 million and a tax provision of $ 0.4 million, respectively, related to the remeasurement of foreign income tax accounts.

The Company’s estimated full year pretax income and income tax expense are expected to be primarily generated in Australia.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(9) Long-term Debt

The Company’s total indebtedness as of September 30, 2023 and December 31, 2022 consisted of the following:

Debt Instrument (defined below, as applicable) September 30, 2023 December 31, 2022

The Company’s total indebtedness as of March 31, 2024 and December 31, 2023 consisted of the following:

Debt Instrument (defined below, as applicable) March 31, 2024 December 31, 2023

(Dollars in millions)

5 unchanged sentences

Long-term debt $ 323.3 $ 320.7

During 2022, the Company utilized various methods allowable or required under its then-existing debt agreements to retire all of its senior secured long-term debt, leaving only its unsecured 3.250 % Convertible Senior Notes due March 2028 (2028 Convertible Notes), which are further described below, and various finance lease obligations outstanding at December 31, 2022.

2028 Convertible Notes

1 unchanged sentence

The 2028 Convertible Notes are senior unsecured obligations of the Company and are governed under an indenture.

The Company used the proceeds of the offering of the 2028 Convertible Notes and available cash to redeem $ 62.6 million of senior secured notes maturing in 2024 and $ 257.4 million of senior secured notes maturing in 2025, and to pay related premiums, fees and expenses relating to the offering and redemptions.

The Company capitalized $ 11.2 million of debt issuance costs related to the offering and recognized a loss on early debt extinguishment of $ 23.0 million during the three months ended March 31, 2022.

The Company used the proceeds of the offering of the 2028 Convertible Notes and available cash to redeem its then-existing senior secured notes, and to pay related premiums, fees and expenses relating to the offering and redemptions.

The Company capitalized $ 11.2 million of debt issuance costs related to the offering, which are being amortized over the terms of the notes.

The 2028 Convertible Notes will mature on March 1, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms.

The 2028 Convertible Notes bore interest from March 1, 2022 at a rate of 3.250 % per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2022.

The 2028 Convertible Notes’ indenture requires conversion rate adjustments upon the payment of dividends to holders of the Company’s common stock once such cumulative dividends impact the conversion rate by at least 1 %.

Under the applicable conversion rate formula, the $ 0.150 per share dividends declared and paid during the nine months ended September 30, 2023 yielded a revised conversion rate of 50.7205 shares per $1,000 principal amount of 2028 Convertible Notes, which did not meet the 1 % threshold to impact the existing conversion rate of 50.3816 .

The conversion rate may be impacted prospectively, based upon cumulative dividends paid.

During the first three quarters of 2023, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes.

As a result, the 2028 Convertible Notes were not convertible at the option of the holders during the second or third quarters of 2023, and will not be similarly convertible during the fourth quarter of 2023.

As of September 30, 2023, the if-converted value of the 2028 Convertible Notes exceeded the principal amount by $ 99.0 million.

The 2028 Convertible Notes bear interest at a rate of 3.250 % per year, payable semi-annually in arrears on March 1 and September 1 of each year.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The initial conversion rate for the 2028 Convertible Notes was 50.3816 shares of the Company’s common stock per $ 1,000 principal amount of 2028 Convertible Notes, which represented an initial conversion price of approximately $ 19.85 per share of the Company’s common stock.

The terms of the indenture require conversion rate adjustments upon the payment of dividends to holders of the Company’s common stock once such cumulative dividends impact the conversion rate by at least 1 %.

Effective February 21, 2024, the conversion rate was increased to 51.0440 shares of the Company’s common stock per $ 1,000 principal amount of 2028 Convertible Notes, which represented an adjusted conversion price of approximately $ 19.59 per share of the Company’s common stock.

The conversion rate is subject to further adjustment under certain circumstances in accordance with the terms of the indenture.

During the first quarter of 2024, the Company’s reported common stock prices did not prompt the conversion feature of the 2028 Convertible Notes.

As a result, the 2028 Convertible Notes will not be convertible at the option of the holders during the second quarter of 2024.

As of March 31, 2024, the if-converted value of the 2028 Convertible Notes exceeded the principal amount by $ 76.3 million.

Revolving Credit Facility

The Company established a new revolving credit facility with a maximum aggregate principal amount of $ 320.0 million in revolving commitments by entering into a credit agreement, dated as of January 18, 2024 (the 2024 Credit Agreement), by and among the Company, as borrower, certain subsidiaries of the Company party thereto, PNC Bank, National Association, as administrative agent, and the lenders party thereto.

The Company paid aggregate debt issuance costs of $ 9.7 million.

The revolving commitments and any related loans, if applicable (any such loans, the Revolving Loans), established by the 2024 Credit Agreement terminate or mature, as applicable, on January 18, 2028, subject to certain conditions relating to the Company’s outstanding 2028 Convertible Notes.

The Revolving Loans bear interest at a secured overnight financing rate (SOFR) plus an applicable margin ranging from 3.50 % to 4.25 %, depending on the Company’s total net leverage ratio (as defined under the 2024 Credit Agreement) or a base rate plus an applicable margin ranging from 2.50 % to 3.25 %, at the Company’s option.

Letters of credit issued under the 2024 Credit Agreement incur a combined fee equal to an applicable margin ranging from 3.50 % to 4.25 % plus a fronting fee equal to 0.125 % per annum.

Unused capacity under the 2024 Credit Agreement bears a commitment fee of 0.50 % per annum.

As of March 31, 2024, the 2024 Credit Agreement had only been utilized for letters of credit, including $ 99.0 million outstanding as of March 31, 2024.

These letters of credit support the Company’s reclamation bonding requirements, lease obligations, insurance policies and various other performance guarantees as further described in Note 12.

“Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $ 221.0 million at March 31, 2024.

The 2024 Credit Agreement contains customary covenants that, among other things and subject to certain exceptions (including compliance with financial ratios), may limit the Company and its subsidiaries’ ability to incur additional indebtedness, make certain restricted payments or investments, sell or otherwise dispose of assets, enter into transactions with affiliates, create or incur liens, and merge, consolidate or sell all or substantially all of their assets.

The 2024 Credit Agreement is secured by substantially all assets of the Company and its U.S.

subsidiaries, as well as a pledge of two Australian subsidiaries.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Interest Charges

1 unchanged sentence

Additionally, the table sets forth the amount of cash paid for interest and the amount of non-cash interest expense primarily related to the amortization of debt issuance costs.

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(Dollars in millions)

Indebtedness $ 4.9 $ 20.8 $ 16.6 $ 70.7

2028 Convertible Notes $ 2.6 $ 2.6

Finance lease obligations 0.4 0.5

Financial assurance instruments 8.8 12.0

Amortization of debt issuance costs 1.2 1.6

Other 1.7 1.7

Interest expense $ 14.7 $ 18.4

2 unchanged sentences

Covenant Compliance

The Company was compliant with all relevant covenants under its debt and other finance agreements at September 30, 2023.

The April 2023 termination of the Company’s credit agreement and related letter of credit facility, as described in Note 12.

“Financial Instruments and Other Guarantees,” eliminated the related compliance requirements as of March 31, 2023 and prospectively.

The Company was compliant with all relevant covenants under its debt and other finance agreements at March 31, 2024.

(10) Pension and Postretirement Benefit Costs

The components of net periodic pension and postretirement benefit costs, excluding the service cost for benefits earned, are included in “Net periodic benefit credit, excluding service cost” in the unaudited condensed consolidated statements of operations.

Net periodic pension cost (credit) included the following components:

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Net periodic pension cost included the following components:

Three Months Ended March 31,

(Dollars in millions)

Service cost for benefits earned $ 0.1 $ 0.1 $ 0.1 $ 0.1

Interest cost on projected benefit obligation $ 1.6 $ 7.4

Expected return on plan assets ( 1.2 ) ( 6.6 )

Net periodic pension cost (credit) $ 0.6 $ ( 0.6 ) $ 2.2 $ ( 1.8 )

Annual contributions to the qualified plans are made in accordance with minimum funding standards and the Company’s agreement with the Pension Benefit Guaranty Corporation.

Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006 (generally 80 %).

As of September 30, 2023, the Company’s qualified plans were expected to be at or above the Pension Protection Act thresholds.

The Company is not required to make any contributions to its qualified pension plans in 2023 based on minimum funding requirements and does not expect to make any discretionary contributions in 2023 at this time.

In March 2022, Peabody Investments Corp.

(PIC), a wholly-owned subsidiary of PEC, entered into a commitment agreement relating to the Peabody Investments Corp.

Retirement Plan (the Peabody Plan) with The Prudential Insurance Company of America (Prudential) and Fiduciary Counselors Inc., as independent fiduciary to the Peabody Plan.

Under the commitment agreement, the Peabody Plan purchased a buy-in group annuity contract (GAC) from Prudential for approximately $ 500 million, which was funded directly by the Peabody Plan’s assets.

The benefit obligation was not transferred to Prudential and the Peabody Plan continued to administer and pay the retirement benefits of Peabody Plan participants, but was reimbursed by Prudential for the payment of all benefits covered by the GAC.

There was no impact on the monthly retirement benefits paid to Peabody Plan participants and no material impact on contributions for the Peabody Plan in 2022 or 2023 as a result of this transaction.

Net periodic pension cost $ 0.4 $ 0.8

Prior to January 1, 2024, the Company had two qualified pension plans.

During the year ended December 31, 2023, the Company settled its pension obligation for one of its qualified plans.

Refer to Note 14.

“Pension and Savings Plans” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, for information regarding the settlement of the plan’s obligation.

Annual contributions to the remaining qualified plan are made in accordance with minimum funding standards and the Company’s agreement with the Pension Benefit Guaranty Corporation.

Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006.

As of March 31, 2024, the Company’s remaining qualified plan was expected to be at or above the Pension Protection Act thresholds.

The Company is not required to make any cash contributions to its remaining qualified pension plan in 2024 based on minimum funding requirements and does not expect to make any discretionary cash contributions in 2024.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

In May 2022, the Board of Directors of PIC approved the termination of the Peabody Plan effective July 31, 2022.

In June 2022, the Peabody Plan’s participants were notified of the Peabody Plan termination and PIC filed an application with the Internal Revenue Service to request a determination as to the qualified status under §401(a) of the Internal Revenue Code of 1986 with respect to the amendment and termination of the Peabody Plan.

In May 2023, PIC received a favorable determination from the Internal Revenue Service as to the Peabody Plan’s qualified status with respect to its plan termination.

In February 2023, as part of the Peabody Plan termination process, PIC announced a program to offer a voluntary lump-sum pension payout to certain active and deferred participants of the Peabody Plan which would fully settle the Peabody Plan’s obligation to them.

The program provided participants with a limited-time opportunity to elect to receive a lump-sum settlement of their pension benefit or begin to receive their benefit in the form of a monthly annuity in May 2023.

On July 31, 2023, as part of the completion of the standard Employee Retirement Income Security Act plan termination process for the Peabody Plan, the GAC with Prudential was converted from a buy-in group annuity contract to a buy-out group annuity contract, irrevocably transferring the remaining benefit obligation and administration to Prudential.

The Peabody Plan no longer administers or pays the retirement benefits of Peabody Plan participants.

No cash contributions are expected to be required to complete the termination process for the Peabody Plan.

During the nine months ended September 30, 2023, the Company settled $ 442.0 million of its pension obligations for active and deferred participants in the Peabody Plan with an equal amount paid from plan assets.

Any settlement gain or loss related to the termination process will be recorded during the fourth quarter, but the Company does not expect a material impact to its results.

Net periodic postretirement benefit credit included the following components:

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(Dollars in millions)

18 unchanged sentences

In periods where the potentially dilutive common stock is included in the computation of diluted EPS, the numerator will be adjusted to add back tax adjusted interest expense, which includes the amortization of debt issuance costs, related to the convertible debt.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The computation of diluted EPS excluded aggregate share-based compensation awards of less than 0.1 million for the three and nine months ended September 30, 2023 and 2022 because to do so would have been anti-dilutive for those periods.

The computation of diluted EPS excluded aggregate share-based compensation awards of less than 0.1 million for the three months ended March 31, 2024 and 2023 because to do so would have been anti-dilutive for those periods.

Because the potential dilutive impact of such share-based compensation awards is calculated under the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share of such awards are higher than the Company’s average stock price during the applicable period.

Anti-dilution also occurs when a company reports a net loss from continuing operations, and the dilutive impact of all share-based compensation awards are excluded accordingly.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following illustrates the earnings allocation method utilized in the calculation of basic and diluted EPS.

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(In millions, except per share data)

3 unchanged sentences

Income from continuing operations attributable to common stockholders 40.3 269.8

Income (loss) from discontinued operations, net of income taxes 2.5 ( 0.8 ) ( 0.1 ) ( 2.3 )

Loss from discontinued operations, net of income taxes ( 0.7 ) ( 1.3 )

Net income attributable to common stockholders $ 39.6 $ 268.5

4 unchanged sentences

Income from continuing operations attributable to common stockholders 43.4 272.4

Income (loss) from discontinued operations, net of income taxes 2.5 ( 0.8 ) ( 0.1 ) ( 2.3 )

Loss from discontinued operations, net of income taxes ( 0.7 ) ( 1.3 )

Net income attributable to common stockholders $ 42.7 $ 271.1

1 unchanged sentence

Weighted average shares outstanding — basic

133.2 144.1 140.0 141.4

Dilutive impact of share-based compensation awards 0.6 0.7

3 unchanged sentences

Income from continuing operations $ 0.32 $ 1.87

Income (loss) from discontinued operations 0.02 ( 0.01 ) ( 0.01 ) ( 0.02 )

Loss from discontinued operations ( 0.01 ) ( 0.01 )

Net income attributable to common stockholders $ 0.31 $ 1.86

1 unchanged sentence

Income from continuing operations $ 0.30 $ 1.69

Income (loss) from discontinued operations 0.02 ( 0.01 ) — ( 0.02 )

Loss from discontinued operations ( 0.01 ) ( 0.01 )

Net income attributable to common stockholders $ 0.29 $ 1.68

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(12) Financial Instruments and Other Guarantees

3 unchanged sentences

The Company does not expect any material losses to result from these guarantees or off-balance-sheet instruments in excess of liabilities provided for in the accompanying condensed consolidated balance sheets.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk.

September 30, 2023 December 31, 2022

March 31, 2024

Reclamation Support Other Support (1)

Total Reclamation Support Other Support (1)

(Dollars in millions)

3 unchanged sentences

1,015.7 206.7 1,222.4

Letters of credit in support of surety

Letters of credit in support of surety bonds (3)

( 53.6 ) ( 14.4 ) ( 68.0 )

5 unchanged sentences

In April 2023, the Company amended its existing agreement with the providers of its surety bond portfolio, dated November 6, 2020.

Under the agreement, the Company was required to post collateral on a periodic basis through December 31, 2025.

Prior to the April 2023 amendment, the Company had posted cumulative collateral of $ 557.8 million, primarily in the form of letters of credit.

Under the April 2023 amendment, the Company and its surety providers agreed to a maximum aggregate collateral amount of $ 721.8 million based upon bonding levels at the effective date of the amendment.

This maximum collateral amount represented a negotiated increase from the uncapped cumulative collateral amount prior to the amendment and will vary prospectively as bonding levels increase or decrease.

The amendment also removed restrictions on the payment of dividends and share repurchases, and extended the agreement through December 31, 2026.

In order to maintain the new maximum collateral standstill, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter.

The minimum liquidity test requires the Company to maintain liquidity at the greater of $ 400 million or the difference between the penal sum of all surety bonds and the amount of collateral posted in favor of surety providers, which was $ 586.1 million at September 30, 2023.

This maximum collateral amount will vary prospectively as bonding levels increase or decrease.

The amendment extended the agreement through December 31, 2026.

In order to maintain the maximum collateral agreement, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter.

The Company must also maintain a maximum net leverage ratio of 1.5 to 1.0 , where the numerator consists of its funded debt, net of cash, and the denominator consists of its Adjusted EBITDA for the trailing twelve months.

1 unchanged sentence

The Company’s ability to pay dividends and make share repurchases is also subject to the quarterly minimum liquidity test.

The Company is in compliance with such requirements, which commenced for the second quarter of 2023.

The Company granted second liens on $ 200.0 million of mining equipment under the original agreement, which remain in force under the April 2023 amendment.

The Company is in compliance with such requirements at March 31, 2024.

To fund the maximum collateral amount, the Company deposited $ 566.3 million into trust accounts for the benefit of certain surety providers on March 31, 2023.

The remainder was comprised of $ 140.5 million of existing cash-collateralized letters of credit and $ 15.0 million already held on behalf of a surety provider.

The amendment became effective on April 14, 2023, when the Company terminated a credit agreement which, as amended, provided for $ 237.2 million of capacity for irrevocable standby letters of credit (LC Facility).

All letters of credit that were outstanding under the LC Facility were cancelled upon its termination and, in certain cases, replaced by cash-collateralized letters of credit or letters of credit issued under the Company’s accounts receivable securitization program.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The amendment became effective on April 14, 2023, when the Company terminated a then-existing credit agreement which, as amended, provided for $ 237.2 million of capacity for irrevocable standby letters of credit (LC Facility).

The now-terminated LC Facility had an original capacity of $ 324.0 million and was subsequently amended at various dates to reduce its capacity and effect certain other changes, including in February 2023 to reduce capacity by $ 65.0 million, accelerate the expiration date to December 31, 2023 from December 31, 2024, and eliminate the prepayment premium due upon any reduction of commitments thereunder prior to July 29, 2023.

The Company recorded early debt extinguishment losses of $ 8.8 million during the nine months ended September 30, 2023 as a result of the February 2023 amendment and subsequent termination.

The Company recorded early debt extinguishment losses of $ 6.8 million during the three months ended March 31, 2023, primarily as a result of the February 2023 amendment.

Prior to its termination, undrawn letters of credit under the LC Facility bore interest at 6.00 % per annum and unused commitments were subject to a 0.50 % per annum commitment fee.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Accounts Receivable Securitization

In 2017, the Company entered into the Sixth Amended and Restated Receivables Purchase Agreement, as amended from time to time (the Receivables Purchase Agreement.) The receivables securitization program authorized under the agreement (Securitization Program) is subject to customary events of default.

The Receivables Purchase Agreement was amended in February 2023 to increase the available funding capacity from $ 175.0 million to $ 225.0 million and adjust the relevant interest rate for borrowings to a secured overnight financing rate (SOFR).

Such funding is accounted for as a secured borrowing, limited to the availability of eligible receivables, and may be secured by a combination of collateral and the trade receivables underlying the program.

1 unchanged sentence

Borrowings under the Securitization Program bear interest at SOFR plus 2.1 % per annum and remain outstanding throughout the term of the agreement, subject to the Company maintaining sufficient eligible receivables.

At September 30, 2023, the Com pany had no outstanding borrowings and $ 107.4 million o f letters of credit outstanding under the Securitization Program, primarily in support of reclamation obligations.

Availability under the Securitizatio n Program, which is adjusted for certain ineligible receivables, was $ 79.8 million at September 30, 2023.

The Company was not required to post cash collateral under the Securitization Program at September 30, 2023.

The Company incurred interest and fees associated with the Securitization Program of $ 0.9 million and $ 1.2 million during the three months ended September 30, 2023 and 2022, respectively, and $ 2.8 million and $ 3.4 million during the nine months ended September 30, 2023 and 2022, respectively, which have been recorded as “Interest expense” in the accompanying unaudited condensed consolidated statements of operations.

Collateralized Letter of Credit Agreement

At March 31, 2024, the Com pany h ad no outstanding borrowings and $ 53.1 million of letters of credit outstanding under the Securitization Program.

Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $ 80.7 million at March 31, 2024.

The Company was not required to post cash collateral under the Securitization Program at March 31, 2024.

The Company incurred interest and fees associated with the Securitization Program of $ 0.8 million and $ 1.0 million during the three months ended March 31, 2024 and 2023, respectively, which have been recorded as “Interest expense” in the accompanying unaudited condensed consolidated statements of operations.

Credit Support Facilities

In February 2022, the Company entered into an agreement which provides up to $ 250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements.

2 unchanged sentences

The agreement has an initial expiration date of December 31, 2025.

At September 30, 2023, letters of credit of $ 167.0 million were outstanding under the agreement, which were collateralized by cash of $ 172.0 million.

At March 31, 2024, letters of credit of $ 116.6 million were outstanding under the agreement, which were collateralized by cash of $ 120.1 million.

In December 2023, the Company established cash-backed bank guarantee facilities, primarily to support Australian reclamation bonding requirements.

During the three months ended March 31, 2024, the Company capitalized $ 1.1 million of debt issuance costs related to these bank guarantee facilities.

The Company receives a variable deposit rate on the amount of cash collateral posted in support of the bank guarantee facilities, which mature at various dates between 2026 and 2029.

At March 31, 2024, the bank guarantee facilities were backed by cash of $ 177.0 million.

PEABODY ENERGY CORPORATION

4 unchanged sentences

withdrawals are subject to the approval of account beneficiaries, such as the Company’s surety providers, who have perfected security interests in the funds.

The Company’s other collateral generally includes deposits held by regulatory authorities or financial institutions over which the Company has no control or ability to access.

September 30, 2023 December 31, 2022

The Company’s other cash collateral generally includes deposits held by regulatory authorities or financial institutions over which the Company has no control or ability to access.

March 31, 2024 December 31, 2023

(Dollars in millions)

1 unchanged sentence

Surety trust accounts (2)

Collateralized letters of credit funding (2)

Other collateral (1)

$ 413.5 $ 444.0

Credit support facilities (2)

Other cash collateral (1)

Deposits with regulatory authorities for reclamation and other obligations 125.4 276.7

LC Facility (3)

Deposit held on behalf of surety — 15.0

Restricted cash and collateral $ 836.0 $ 957.6

(1) Restricted cash balances are combined with unrestricted cash and cash equivalents in the accompanying unaudited condensed consolidated statements of cash flows;

changes in restricted cash balances are thus not reflected in the operating, investing or financing activities therein.

Changes in other collateral balances are reflected as operating activities therein.

(2) Surety trust accounts and the funding for collateralized letters of credit are comprised of highly liquid investments with original maturities of three months or less;

changes between unrestricted cash and cash equivalents and restricted cash balances are thus not reflected in the operating, investing or financing activities therein.

Changes in other cash collateral balances are reflected as operating activities therein.

(2) Surety trust accounts, the funding for collateralized letters of credit and cash supporting the bank guarantee facilities are comprised of highly liquid investments with original maturities of three months or less;

interest and other earnings on such funds accrue to the Company.

(3) Balance related to the Company’s mandatory repurchase of $ 30.0 million priority lien obligations under the LC Facility during 2022 at approximately 95 %.

The Company received approximately $ 30.0 million upon termination of the LC Facility on April 14, 2023 .

(13) Commitments and Contingencies

Unconditional Purchase Obligations

As of September 30, 2023, purchase commitments for capital expenditures were $ 91.1 million, all of which is obligated within the next two years, with $ 84.7 million obligated within the next 12 months.

As of March 31, 2024, purchase commitments for capital expenditures were $ 100.0 million, all of which is obligated within the next two years, with $ 92.9 million obligated within the next 12 months.

There were no other material changes to the Company’s commitments from the information provided in Note 21.

4 unchanged sentences

The Company discusses its significant legal proceedings below, including ongoing proceedings and those that impacted the Company’s consolidated results of operations for the periods presented.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Litigation and Matters Relating to Continuing Operations

Metropolitan Mine Stormwater Discharge.

Over the past few years, there has been significantly high rainfall in New South Wales, including unprecedented rain totals at the Metropolitan Mine site.

While stormwater collected at the mine site is managed through two sedimentation dams, at times the heavy rainfall presented challenges with managing the significant volumes of stormwater, as the surface water management infrastructure has not had sufficient capacity.

As a result, on multiple occasions throughout 2021 and 2022 stormwater was discharged from the mine site.

Metropolitan Collieries Pty Ltd (MCPL), a wholly-owned subsidiary of PEC, removed accumulated material from the sedimentation dams to restore full site stormwater capacity by December 31, 2022 and identified and is implementing additional controls for the management of sediment moving forward.

Despite the measures undertaken by MCPL to manage and improve the situation, the Environment Protection Authority commenced a prosecution for five breaches of the Protection of the Environment Operations Act 1997 on September 6, 2023.

Significantly high rainfall in New South Wales, including unprecedented rain totals at the Metropolitan Mine site resulted in stormwater being discharged from the mine site on several occasions in 2021 and 2022.

On September 6, 2023, the Environment Protection Authority commenced a prosecution for five breaches of the Protection of the Environment Operations Act 1997 relating to the stormwater discharges.

On March 15, 2024, the Company pled guilty to two of the charges related to water pollution, and two charges related to a failure to adequately maintain plant and equipment were consolidated into one charge to which the Company also pled guilty.

No plea has been entered for the remaining charge that has been held over to a sentencing hearing to be scheduled later in the year.

Penalties will be determined at that sentencing hearing.

During the three months ended March 31, 2024, the Company recorded an immaterial provision to establish a current liability that the Company believes is probable and reasonably estimable.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Oregon Climate Change Lawsuit.

6 unchanged sentences

The Company reassesses the probability and estimability of contingent losses as new information becomes available.

Claims, Litigation and Settlements Relating to Indemnities or Historical Operations

Patriot-Related Matters.

Included in the Company’s discontinued operations are the previously divested legacy operations of Patriot Coal Corporation and certain of its wholly-owned subsidiaries (Patriot).

In 2012, Patriot filed voluntary petitions for relief under Chapter 11 of Title 11 of the U.S.

Code (the Bankruptcy Code).

In 2013, the Company entered into a definitive settlement agreement (2013 Agreement) with Patriot and the United Mine Workers of America, on behalf of itself, its represented Patriot employees and its represented Patriot retirees, to resolve all then-disputed issues related to Patriot’s bankruptcy.

In May 2015, Patriot again filed voluntary petitions for relief under the Bankruptcy Code and subsequently initiated a process to sell substantially all of its assets to qualified bidders.

On October 9, 2015, Patriot’s bankruptcy court entered an order confirming Patriot’s plan of reorganization, which provided, among other things, for the sale of substantially all of Patriot’s assets to two different buyers.

Patriot had federal and state black lung occupational disease liabilities related to workers employed in periods prior to Patriot’s spin-off from the Company in 2007.

Upon spin-off, Patriot indemnified the Company against any claim relating to these liabilities, which amounted to approximately $ 150 million at that time.

The indemnification included any claim made by the U.S.

Department of Labor (DOL) against the Company with respect to these obligations as a potentially liable operator under the Federal Coal Mine Health and Safety Act of 1969.

The 2013 Agreement included Patriot’s affirmance of indemnities provided in the spin-off agreements, including the indemnity relating to such black lung liabilities;

however, Patriot rejected this indemnity in its May 2015 bankruptcy.

By statute, the Company had secondary liability for the black lung liabilities related to Patriot’s workers employed by former subsidiaries of the Company (the Patriot Federal Black Lung Claims).

The Company’s accounting for the black lung liabilities related to Patriot was based on an interpretation of applicable statutes.

Management believed that inconsistencies existed among the applicable statutes, regulations promulgated under those statutes and the DOL’s interpretative guidance.

The Company sought clarification from the DOL regarding these inconsistencies and challenged the DOL’s position in individual black lung claims.

The amount of the liability, which was determined on an actuarial basis based on the best information available to the Company, was $ 82.3 million at December 31, 2022.

The liability, which was classified as discontinued operations, was included in the Company’s condensed consolidated balance sheet within “Accounts payable and accrued expenses” and “Other noncurrent liabilities.”

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

On August 8, 2023, the Company entered into a settlement agreement to resolve the liability dispute with the DOL.

In accordance with the settlement agreement, the Company paid $ 72.0 million to settle the Patriot Federal Black Lung Claims, with the exception of approximately $ 4.2 million of certain claims for attorney’s fees and additional compensation due to claimants not paid during appeal.

As a result of the settlement, the Company recognized a $ 3.9 million gain within “Income (loss) from discontinued operations, net of income taxes” during the three and nine months ended September 30, 2023 .

(14) Segment Information

2 unchanged sentences

Thermal and Corporate and Other.

The Company’s chief operating decision maker, defined as its Chief Executive Officer, uses Adjusted EBITDA as the primary metric to measure the segments’ operating performance and allocate resources.

The Company’s CODM, defined as its Chief Executive Officer, uses Adjusted EBITDA as the primary metric to measure the segments’ operating performance and allocate resources.

Adjusted EBITDA is a non-GAAP financial measure defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization.

4 unchanged sentences

Reportable segment results were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(Dollars in millions)

15 unchanged sentences

A reconciliation of consolidated income from continuing operations, net of income taxes to Adjusted EBITDA follows:

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

Three Months Ended March 31,

(Dollars in millions)

4 unchanged sentences

Asset impairment — 2.0

Provision for NARM and Shoal Creek loss 3.3 — 37.0 —

Provision for NARM loss 1.8 —

Changes in amortization of basis difference related to equity affiliates ( 0.4 ) ( 0.3 )

2 unchanged sentences

Interest income ( 19.2 ) ( 13.1 )

Unrealized (gains) losses on derivative contracts related to forecasted sales — ( 90.4 ) ( 159.0 ) 235.1

Unrealized losses (gains) on foreign currency option contracts 0.5 1.4 ( 0.1 ) 4.4

Unrealized gains on derivative contracts related to forecasted sales — ( 118.7 )

Unrealized losses on foreign currency option contracts 5.7 2.2

Take-or-pay contract-based intangible recognition ( 0.7 ) ( 0.6 )

3 unchanged sentences

Coal Deposit Acquisition

The Company entered into a definitive agreement dated October 26, 2023, with Stanmore SMC Pty Ltd (Stanmore) to acquire the southern part of Stanmore’s Wards Well tenements (Wards Well area) which are adjacent to the Company’s North Goonyella Mine in Queensland, Australia.

The acquisition terms include cash consideration of $ 136 million and a contingent royalty of up to $ 200 million.

The Company entered into a definitive agreement dated October 26, 2023, to acquire the southern part of the Wards Well tenements (Wards Well area) which are adjacent to the Company’s Centurion Mine in Queensland, Australia.

The acquisition was completed on April 16, 2024 for cash consideration of approximately $ 134 million and a contingent royalty of up to $ 200 million.

The royalty will only be payable once the Company has recovered its investment and development costs of the Wards Well area and if the average sales price achieved exceeds certain thresholds.

No royalty is payable if the Company does not commence mining in the Wards Well area.

Completion of the transaction is subject to the satisfaction of certain conditions, including regulatory approvals.

Share Repurchases

During the three and nine months ended September 30, 2023, the Company repurchased approximately 3.7 million shares and 12.6 million shares, respectively, of its common stock for $ 82.4 million and $ 266.6 million, respectively, including commission fees.

Of this amount, $ 2.6 million related to repurchases which settled subsequent to September 30, 2023.

As of September 30, 2023, the Company had accrued excise taxes of $ 2.5 million related to the repurchases, which were unpaid at September 30, 2023.

During the three months ended March 31, 2024, the Company repurchased approximately 3.2 million shares of its common stock for $ 80.5 million, including commission fees.

As of March 31, 2024, the Company had accrued excise taxes of $ 4.0 million related to share repurchases, which were unpaid at March 31, 2024.

The Company includes commission fees and excise taxes, as incurred, with the cost of treasury stock.

At September 30, 2023, $ 733.6 million remained available under its share repurchase program.

From October 1, 2023 through October 27, 2023, the Company repurchased an additional 1.1 million shares for $ 27.3 million.

At March 31, 2024, $ 569.6 million remained available under its share repurchase program.

North Antelope Rochelle Mine Tornado

1 unchanged sentence

The mine resumed operations on June 25, 2023.

During the three and nine months ended September 30, 2023, the Company recorded a provision for loss of $ 3.3 million and $ 8.3 million, respectively, related to the tornado damage.

The combined provision includes $ 4.0 million for materials and supplies inventories, $ 1.0 million for buildings and equipment and $ 3.3 million for incremental repair costs.

The Company anticipates that incremental repair costs will continue to be recorded in future periods.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

During the three months ended March 31, 2024, the Company recorded a provision for loss of $ 1.8 million for incremental repair costs related to the tornado damage.

The Company anticipates that immaterial incremental repair costs will continue to be recognized in the second quarter of 2024.

Shoal Creek Incident

1 unchanged sentence

On June 20, 2023, the Company announced that the Shoal Creek Mine, in coordination with the Mine Safety and Health Administration, had safely completed localized sealing of the affected area of the mine.

Development coal production has been resumed in a new area of the mine.

During the nine months ended September 30, 2023, the Company recorded a provision for loss of $ 28.7 million related to the fire.

The provision includes $ 17.8 million related to longwall development and other costs and $ 10.9 million for equipment deemed inoperable within the affected area of the mine.

In October 2023, the Company filed an insurance claim against applicable insurance policies with combined business interruption and property loss limits of $ 125 million above a $ 50 million deductible.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Port and Rail Capacity Assignment

During the nine months ended September 30, 2023, the Company entered into an agreement to assign the right to its excess port and rail capacity related to its North Goonyella Mine to an unrelated party in exchange for $ 30.0 million Australian dollars.

Half of such amount was received by the Company upon entry into the agreement, and half is payable in June 2024, subject to certain conditions.

In connection with the transaction, the Company recorded revenue of $ 19.2 million during the nine months ended September 30, 2023 and had a discounted receivable of $ 9.4 million included in “Accounts receivable, net” as of September 30, 2023.

During the three months ended March 31, 2023, the Company entered into an agreement to assign the right to its excess port and rail capacity related to its Centurion Mine in exchange for $ 30.0 million Australian dollars.

Half of such amount was received by the Company upon entry into the agreement, and half was payable in June 2024, subject to certain conditions.

In connection with the transaction, the Company recorded revenue of $ 19.2 million during the three months ended March 31, 2023 and had a discounted receivable of $ 9.8 million included in “Accounts receivable, net” as of March 31, 2024.

In association with the completion of the Wards Well acquisition described above, the remaining receivable was settled as of April 16, 2024.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements