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Item 1. Financial Statements

2024-11-08 compared with 2024-08-08 · 126 added, 121 removed, 687 unchanged (26% of the section changed)

2 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

21 unchanged sentences

Income from continuing operations, net of income taxes 112.5 128.8 369.0 617.0

Loss from discontinued operations, net of income taxes ( 1.6 ) ( 1.3 ) ( 2.3 ) ( 2.6 )

(Loss) income from discontinued operations, net of income taxes ( 1.0 ) 2.5 ( 3.3 ) ( 0.1 )

Net income 111.5 131.3 365.7 616.9

10 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

11 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(Amounts in millions, except per share data)

1 unchanged sentence

Cash and cash equivalents $ 772.9 $ 969.3

Accounts receivable, net of allowance for credit losses of $ 0.0 at June 30, 2024 and December 31, 2023

Accounts receivable, net of allowance for credit losses of $ 0.0 at September 30, 2024 and December 31, 2023

Inventories, net 444.3 351.8

20 unchanged sentences

Preferred Stock — $ 0.01 per share par value;

100.0 shares authorized, no shares issued or outstanding as of June 30, 2024 and December 31, 2023

100.0 shares authorized, no shares issued or outstanding as of September 30, 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 June 30, 2024 and December 31, 2023

50.0 shares authorized, no shares issued or outstanding as of September 30, 2024 and December 31, 2023

Common Stock — $ 0.01 per share par value;

450.0 shares authorized, 189.1 shares issued and 125.9 shares outstanding as of June 30, 2024 and 188.6 shares issued and 128.7 shares outstanding as of December 31, 2023

450.0 shares authorized, 189.1 shares issued and 121.4 shares outstanding as of September 30, 2024 and 188.6 shares issued and 128.7 shares outstanding as of December 31, 2023

Additional paid-in capital 3,988.9 3,983.0

Treasury stock, at cost — 63.2 and 59.9 common shares as of June 30, 2024 and December 31, 2023

Treasury stock, at cost — 67.7 and 59.9 common shares as of September 30, 2024 and December 31, 2023

( 1,926.5 ) ( 1,740.2 )

8 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(Dollars in millions)

32 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

Six Months Ended June 30,

Nine Months Ended September 30,

(Dollars in millions)

33 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

46 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 six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2024.

The Company’s results of operations for the three and nine months ended September 30, 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

2 unchanged sentences

Accounting Standards Not Yet Implemented

Joint Ventures.

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.

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;

20 unchanged sentences

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 June 30, 2024

Three Months Ended September 30, 2024

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

9 unchanged sentences

Revenue $ 313.2 $ 242.5 $ 305.3 $ 216.7 $ 10.3 $ 1,088.0

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

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

9 unchanged sentences

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

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

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

11 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

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

10 unchanged sentences

(1) Corporate and Other includes the following:

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

15 unchanged sentences

Accounts Receivable

“Accounts receivable, net” at June 30, 2024 and December 31, 2023 consisted of the following:

June 30, 2024 December 31, 2023

“Accounts receivable, net” at September 30, 2024 and December 31, 2023 consisted of the following:

September 30, 2024 December 31, 2023

(Dollars in millions)

2 unchanged sentences

Accounts receivable, net $ 304.2 $ 389.7

None of the above receivables included allowances for credit losses at June 30, 2024 or December 31, 2023.

No charges for credit losses were recognized during the three and six months ended June 30, 2024 or 2023.

None of the above receivables included allowances for credit losses at September 30, 2024 or December 31, 2023.

No charges for credit losses were recognized during the three and nine months ended September 30, 2024 or 2023.

PEABODY ENERGY CORPORATION

1 unchanged sentence

(4) Inventories

“Inventories, net” as of June 30, 2024 and December 31, 2023 consisted of the following:

June 30, 2024 December 31, 2023

“Inventories, net” as of September 30, 2024 and December 31, 2023 consisted of the following:

September 30, 2024 December 31, 2023

(Dollars in millions)

3 unchanged sentences

Inventories, net $ 444.3 $ 351.8

Materials and supplies inventories, net presented above have been shown net of reserves of $ 6.6 million and $ 7.2 million as of June 30, 2024 and December 31, 2023, respectively.

Materials and supplies inventories, net presented above have been shown net of reserves of $ 5.1 million and $ 7.2 million as of September 30, 2024 and December 31, 2023, respectively.

(5) Equity Method Investments

2 unchanged sentences

Loss (Income) from Equity Affiliates

Book Value at Three Months Ended June 30, Six Months Ended June 30,

June 30, 2024 December 31, 2023 2024 2023 2024 2023

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

September 30, 2024 December 31, 2023 2024 2023 2024 2023

(Dollars in millions)

2 unchanged sentences

Total equity method investments $ 53.9 $ 49.6 $ 2.1 $ ( 5.6 ) $ 7.1 $ ( 9.7 )

The Company contributed $ 8.4 million and $ 3.5 million to R3 during the six months ended June 30, 2024 and 2023, respectively.

The Company contributed $ 10.8 million and $ 5.5 million to R3 during the nine months ended September 30, 2024 and 2023, respectively.

(6) Derivatives and Fair Value Measurements

7 unchanged sentences

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

As of June 30, 2024, the Company held average rate options with an aggregate notional amount of $ 455.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending March 31, 2025.

As of September 30, 2024, the Company held average rate options with an aggregate notional amount of $ 531.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending June 30, 2025.

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 $ 0.71 over the nine-month period ending March 31, 2025.

As of June 30, 2024, the Company also held purchased collars with an aggregate notional amount of $ 507.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending March 31, 2025.

dollar exchange rate exceed amounts ranging from $ 0.70 to $ 0.74 over the nine-month period ending June 30, 2025.

As of September 30, 2024, the Company also held purchased collars with an aggregate notional amount of $ 468.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending June 30, 2025.

The purchased collars have a floor and ceiling of approximately $ 0.60 and $ 0.73 , 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 June 30, 2024, the Company had no coal derivative contracts related to its forecasted sales.

As of September 30, 2024, the Company had no coal derivative contracts related to its forecasted sales.

Historically, such financial contracts have included futures and forwards.

2 unchanged sentences

Such financial contracts may include futures, forwards and options.

The Company held nominal financial trading contracts as of June 30, 2024.

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

As of June 30, 2024 and December 31, 2023, the Company had asset derivatives comprised of foreign currency option contracts with a fair value of $ 2.2 million and $ 6.2 million, respectively.

As of September 30, 2024 and December 31, 2023, the Company had asset derivatives comprised of foreign currency option contracts with a fair value of $ 6.4 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.

3 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 June 30, 2024

Three Months Ended September 30, 2024

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

3 unchanged sentences

Total $ 3.6 $ ( 0.1 ) $ 3.7

Three Months Ended June 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 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

1 unchanged sentence

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

Derivative contracts related to forecasted sales Revenue 10.0 ( 30.3 ) 40.3

Financial trading contracts Revenue ( 0.1 ) ( 19.7 ) 19.6

Total $ ( 2.8 ) $ ( 21.9 ) $ 19.1

Six Months Ended June 30, 2024

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

Nine Months Ended September 30, 2024

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

Derivative Instrument Classification

2 unchanged sentences

Total $ ( 2.1 ) $ ( 2.5 ) $ 0.4

Six Months Ended June 30, 2023

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

15 unchanged sentences

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

June 30, 2024

September 30, 2024

Level 1 Level 2 Level 3 Total

16 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 June 30, 2024 and December 31, 2023:

The following methods and assumptions were used by the Company in estimating fair values for other financial instruments as of September 30, 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.

2 unchanged sentences

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.

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(Dollars in millions)

8 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

During the six months ended June 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 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.

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 six months ended June 30, 2024 and 2023.

The Company had no transfers between Levels 1, 2 and 3 during the three and nine months ended September 30, 2024 and 2023.

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

(7) Property, Plant, Equipment and Mine Development

The composition of property, plant, equipment and mine development, net, as of June 30, 2024 and December 31, 2023 is set forth in the table below:

June 30, 2024 December 31, 2023

The composition of property, plant, equipment and mine development, net, as of September 30, 2024 and December 31, 2023 is set forth in the table below:

September 30, 2024 December 31, 2023

(Dollars in millions)

5 unchanged sentences

At-Risk Assets

The Company identified certain assets with an aggregate carrying value of approximately $ 214 million at June 30, 2024 in its Other U.S.

The Company identified certain assets with an aggregate carrying value of approximately $ 207 million at September 30, 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 six months ended June 30, 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 $ 39.4 million and $ 74.2 million for the three months ended June 30, 2024 and 2023, respectively, included tax provisions of $ 1.9 million and $ 0.3 million, respectively, related to the remeasurement of foreign income tax accounts.

The Company’s income tax provisions of $ 59.5 million and $ 192.2 million for the six months ended June 30, 2024 and 2023, respectively, included a tax benefit of $ 3.9 million and a tax provision of $ 0.7 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.

The Company's effective tax rate before remeasurement for the nine months ended September 30, 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 $ 25.7 million and $ 46.5 million for the three months ended September 30, 2024 and 2023, respectively, included a tax provision of $ 1.0 million and a tax benefit of $ 3.3 million, respectively, related to the remeasurement of foreign income tax accounts.

The Company’s income tax provisions of $ 85.2 million and $ 238.7 million for the nine months ended September 30, 2024 and 2023, respectively, included tax benefits of $ 2.9 million and $ 2.6 million, respectively, related to the remeasurement of foreign income tax accounts.

The Company’s estimated full year pretax income is expected to be generated in Australia and the U.S.

Due to existing valuation allowances, the income tax expense will primarily be related to the Australian income.

The Company recognizes interest and penalties related to unrecognized tax benefits in its income tax provision.

During both the three and six months ended June 30, 2024, the Company’s net unrecognized tax benefits decreased by $ 1.3 million and its gross interest and penalties decreased by $ 6.1 million due to expiration of statutes.

No penalties or interest were recognized during the three months ended September 30, 2024.

During the nine months ended September 30, 2024, the Company’s net unrecognized tax benefits decreased by $ 1.3 million and its gross interest and penalties decreased by $ 6.1 million due to expiration of statutes.

(9) Long-term Debt

The Company’s total indebtedness as of June 30, 2024 and December 31, 2023 consisted of the following:

Debt Instrument (defined below, as applicable) June 30, 2024 December 31, 2023

The Company’s total indebtedness as of September 30, 2024 and December 31, 2023 consisted of the following:

Debt Instrument (defined below, as applicable) September 30, 2024 December 31, 2023

(Dollars in millions)

5 unchanged sentences

Long-term debt $ 323.7 $ 320.7

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2028 Convertible Notes

1 unchanged sentence

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

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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.

5 unchanged sentences

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.

Under the applicable conversion rate formula, the $ 0.075 per share dividend declared on May 2, 2024 and paid on June 5, 2024 yielded a revised conversion rate of 51.2148 shares per $ 1,000 principal amount of 2028 Convertible Notes, which did not meet the 1 % threshold to impact the existing conversion rate of 51.0440 .

Under the applicable conversion rate formula, the cumulative $ 0.150 per share dividends declared and paid during the six months ended September 30, 2024 yielded a revised conversion rate of 51.3840 shares per $ 1,000 principal amount of 2028 Convertible Notes, which did not meet the 1 % threshold to impact the existing conversion rate of 51.0440 .

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

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

During the first and second quarters 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 were not convertible at the option of the holders during the second quarter of 2024, and will not be similarly convertible during the third quarter of 2024.

As of June 30, 2024, the if-converted value of the 2028 Convertible Notes exceeded the principal amount by $ 41.3 million.

During the first three quarters 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 were not convertible at the option of the holders during the second or third quarters of 2024, and will not be similarly convertible during the fourth quarter of 2024.

As of September 30, 2024, the if-converted value of the 2028 Convertible Notes exceeded the principal amount by $ 116.4 million.

Revolving Credit Facility

5 unchanged sentences

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

As of June 30, 2024, the 2024 Credit Agreement had only been utilized for letters of credit, including $ 98.0 million outstanding as of June 30, 2024.

As of September 30, 2024, the 2024 Credit Agreement had only been utilized for letters of credit, including $ 98.6 million outstanding as of September 30, 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 $ 222.0 million at June 30, 2024.

“Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $ 221.4 million at September 30, 2024.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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.

1 unchanged sentence

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, net of capitalized interest and the amount of non-cash interest expense primarily related to the amortization of debt issuance costs.

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

4 unchanged sentences

Amortization of debt issuance costs 0.6 0.7 4.0 2.9

Receivables securitization program 0.5 0.9 1.9 2.8

Capitalized interest ( 2.7 ) — ( 4.4 ) —

4 unchanged sentences

Covenant Compliance

The Company was compliant with all relevant covenants under its debt and other finance agreements at June 30, 2024.

The Company was compliant with all relevant covenants under its debt and other finance agreements at September 30, 2024.

(10) Pension and Postretirement Benefit Costs

1 unchanged sentence

Net periodic pension cost included the following components:

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

(Dollars in millions)

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

Interest cost on projected benefit obligation 1.7 3.6 4.9 18.4

5 unchanged sentences

“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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 June 30, 2024, the Company’s remaining qualified plan was expected to be at or above the Pension Protection Act thresholds.

As of September 30, 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)

Net periodic postretirement benefit credit included the following components:

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

19 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.

The computation of diluted EPS excluded aggregate share-based compensation awards of less than 0.1 million for the three and six months ended June 30, 2024 and 2023 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 and nine months ended September 30, 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.

3 unchanged sentences

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

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

4 unchanged sentences

Income from continuing operations attributable to common stockholders 102.3 117.4 343.6 567.7

Loss from discontinued operations, net of income taxes ( 1.6 ) ( 1.3 ) ( 2.3 ) ( 2.6 )

(Loss) income from discontinued operations, net of income taxes ( 1.0 ) 2.5 ( 3.3 ) ( 0.1 )

Net income attributable to common stockholders $ 101.3 $ 119.9 $ 340.3 $ 567.6

4 unchanged sentences

Income from continuing operations attributable to common stockholders 105.4 120.4 352.8 576.8

Loss from discontinued operations, net of income taxes ( 1.6 ) ( 1.3 ) ( 2.3 ) ( 2.6 )

(Loss) income from discontinued operations, net of income taxes ( 1.0 ) 2.5 ( 3.3 ) ( 0.1 )

Net income attributable to common stockholders $ 104.4 $ 122.9 $ 349.5 $ 576.7

7 unchanged sentences

Income from continuing operations $ 0.82 $ 0.88 $ 2.72 $ 4.06

Loss from discontinued operations ( 0.01 ) ( 0.01 ) ( 0.02 ) ( 0.02 )

(Loss) income from discontinued operations ( 0.01 ) 0.02 ( 0.03 ) ( 0.01 )

Net income attributable to common stockholders $ 0.81 $ 0.90 $ 2.69 $ 4.05

1 unchanged sentence

Income from continuing operations $ 0.74 $ 0.80 $ 2.47 $ 3.68

Loss from discontinued operations ( 0.01 ) ( 0.01 ) ( 0.02 ) ( 0.02 )

(Loss) income from discontinued operations — 0.02 ( 0.03 ) —

Net income attributable to common stockholders $ 0.74 $ 0.82 $ 2.44 $ 3.68

7 unchanged sentences

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

June 30, 2024

September 30, 2024

Reclamation Support Other Support (1)

16 unchanged sentences

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 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 $ 508.6 million at June 30, 2024.

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 at June 30, 2024.

The Company is in compliance with such requirements at September 30, 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.

2 unchanged sentences

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 six months ended June 30, 2023, primarily as a result of the February 2023 amendment and subsequent termination.

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

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.

8 unchanged sentences

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

At June 30, 2024, the Com pany h ad no outstanding borrowings and $ 56.2 million of letters of credit outstanding under the Securitization Program.

Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $ 97.1 million at June 30, 2024.

The Company was not required to post cash collateral under the Securitization Program at June 30, 2024.

The Company incurred interest and fees associated with the Securitization Program of $ 0.6 million and $ 0.8 million during the three months ended June 30, 2024 and 2023, respectively, and $ 1.4 million and $ 1.9 million during the six months ended June 30, 2024 and 2023, respectively, which have been recorded as “Interest expense, net of capitalized interest” in the accompanying unaudited condensed consolidated statements of operations.

At September 30, 2024, the Company had no outstanding borrowings and $ 60.4 million of letters of credit outstanding under the Securitization Program.

Availability under the Securitization Program, which is adjusted for certain ineligible receivables, was $ 95.6 million at September 30, 2024.

The Company was not required to post cash collateral under the Securitization Program at September 30, 2024.

The Company incurred interest and fees associated with the Securitization Program of $ 0.5 million and $ 0.9 million during the three months ended September 30, 2024 and 2023, respectively, and $ 1.9 million and $ 2.8 million during the nine months ended September 30, 2024 and 2023, respectively, which have been recorded as “Interest expense, net of capitalized interest” in the accompanying unaudited condensed consolidated statements of operations.

Credit Support Facilities

4 unchanged sentences

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

At June 30, 2024, letters of credit of $ 116.6 million were outstanding under the agreement, which were collateralized by cash of $ 120.1 million.

At September 30, 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 six months ended June 30, 2024, the Company capitalized $ 1.4 million of debt issuance costs related to these bank guarantee facilities.

During the nine months ended September 30, 2024, the Company capitalized $ 1.4 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 June 30, 2024, the bank guarantee facilities were backed by cash of $ 179.5 million.

At September 30, 2024, the bank guarantee facilities were backed by cash of $ 187.9 million.

PEABODY ENERGY CORPORATION

5 unchanged sentences

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.

June 30, 2024 December 31, 2023

Portions of the restricted cash balances and deposits are held in accounts denominated in Australian dollars.

September 30, 2024 December 31, 2023

(Dollars in millions)

11 unchanged sentences

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

(3) At September 30, 2024, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $ 271 million and $ 192 million, respectively.

At December 31, 2023, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $ 95 million and $ 404 million, respectively.

(13) Commitments and Contingencies

Unconditional Purchase Obligations

As of June 30, 2024, purchase commitments for capital expenditures were $ 90.9 million, all of which is obligated within the next two years, with $ 83.7 million obligated within the next 12 months.

As of September 30, 2024, purchase commitments for capital expenditures were $ 81.3 million, all of which is 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

5 unchanged sentences

Penalties will be determined at that sentencing hearing.

During the six months ended June 30, 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)

During the nine months ended September 30, 2024, the Company recorded an immaterial provision to establish a current liability that the Company believes is probable and reasonably estimable.

Oregon Climate Change Lawsuit .

16 unchanged sentences

GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Reportable segment results were as follows:

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

13 unchanged sentences

Total $ 224.8 $ 270.0 $ 695.0 $ 1,018.8

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

16 unchanged sentences

Adjusted EBITDA $ 224.8 $ 270.0 $ 695.0 $ 1,018.8

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(15) Other Events

Share Repurchases

During the three and nine months ended September 30, 2024, the Company repurchased approximately 4.5 million shares and 7.7 million shares, respectively, of its common stock for $ 100.0 million and $ 180.5 million, respectively, including commission fees.

The Company had accrued excise taxes of $ 5.0 million related to share repurchases, which were unpaid at September 30, 2024.

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

At September 30, 2024, $ 469.6 million remained available under its share repurchase program.

Wards Well Acquisition

2 unchanged sentences

The acquired asset was measured at the cost of the acquisition based on the total consideration, allocated on the basis of relative fair value.

The total consideration of $ 153.4 million, consisting of cash consideration of $ 134.4 million, cash transaction costs of $ 9.4 million and the non-cash settlement of existing receivables with the acquiree of $ 9.6 million, was recorded in “Property, plant, equipment and mine development, net” in the condensed consolidated balance sheets as of June 30, 2024.

The agreement also includes an initial contingent royalty of up to $ 200 million.

2 unchanged sentences

The Company will adjust the cost basis of the assets acquired if and when the contingent royalty is paid or becomes payable.

Share Repurchases

During the six months ended June 30, 2024, the Company repurchased approximately 3.2 million shares of its common stock for $ 80.5 million, including commission fees.

No shares were repurchased during the three months ended June 30, 2024.

The Company had accrued excise taxes of $ 4.0 million related to share repurchases, which were unpaid at June 30, 2024.

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

At June 30, 2024, $ 569.6 million remained available under its share repurchase program.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

North Antelope Rochelle Mine Tornado

1 unchanged sentence

The mine resumed operations on June 25, 2023.

During the three and six months ended June 30, 2023, the Company recorded a provision for loss of $ 5.0 million related to the tornado damage, which included $ 4.0 million for materials and supplies inventories and $ 1.0 million for buildings and equipment.

During the three and six months ended June 30, 2024, the Company recorded $ 1.9 million and $ 3.7 million, respectively, for incremental repair costs related to the tornado damage.

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.

During the nine months ended September 30, 2024, the Company recorded $ 3.7 million for incremental repair costs related to the tornado damage.

During the three months ended September 30, 2024, the Company did not record a provision related to the tornado damage.

On March 29, 2023, the Company’s Shoal Creek Mine experienced a fire involving void fill material utilized to stabilize the roof structure of the mine.

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.

During the three and six months ended June 30, 2023, the Company recorded a provision for loss of $ 28.7 million related to the fire, which included $ 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.

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

During June 2024, the Company reached a settlement with its insurers and various re-insurers and recognized a $ 109.5 million insurance recovery which the Company included in its results of operations for the three and six months ended June 30, 2024.

During the six months ended June 30, 2024, the Company collected $ 5.6 million of the insurance recovery.

Since this portion of the recovery related to equipment damage for which the Company previously recognized the provision for loss, the Company has classified the amount within the “Cash Flows From Investing Activities” section of the unaudited condensed consolidated statements of cash flows.

The remaining $ 103.9 million of the insurance recovery was recorded as a receivable within “Accounts receivable, net” in the condensed consolidated balance sheets as of June 30, 2024.

During the nine months ended September 30, 2024, the Company collected $ 103.8 million of the insurance recovery.

The Company classified $ 10.9 million of the recovery within the “Cash Flows From Investing Activities” section of the unaudited condensed consolidated statements of cash flows since this portion of the recovery related to equipment damage for which the Company previously recognized the provision for loss.

The remaining $ 5.7 million of the insurance recovery was recorded as a receivable within “Accounts receivable, net” in the condensed consolidated balance sheets as of September 30, 2024 and was subsequently collected in October 2024.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Port and Rail Capacity Assignment

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

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 Centurion 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 was payable in June 2024, subject to certain conditions.

In connection with the transaction, the Company recorded revenue of $ 19.2 million during the six months ended June 30, 2023.

In connection with the transaction, the Company recorded revenue of $ 19.2 million during the nine months ended September 30, 2023.

In association with the completion of the Wards Well acquisition described above, the remaining receivable was settled as part of the consideration on 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