What changed in this filing

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Item 1. Financial Statements

2025-05-08 compared with 2024-11-08 · 246 added, 304 removed, 509 unchanged (52% of the section changed)

2 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

2024 2023 2024 2023

Three Months Ended March 31,

(Dollars in millions, except per share data)

6 unchanged sentences

Restructuring charges 1.7 0.1

Transaction costs related to business combinations 2.4 —

Other operating (income) loss:

Net gain on disposals ( 5.2 ) ( 2.1 )

Asset impairment — — — 2.0

Provision for NARM and Shoal Creek losses — 3.3 3.7 37.0

Shoal Creek insurance recovery — — ( 109.5 ) —

Loss (income) from equity affiliates 2.1 ( 5.6 ) 7.1 ( 9.7 )

Provision for NARM loss — 1.8

Loss from equity affiliates 6.7 3.7

Operating profit 31.9 51.2

Interest expense, net of capitalized interest 11.5 14.7

Net loss on early debt extinguishment — — — 8.8

Interest income ( 15.4 ) ( 19.2 )

3 unchanged sentences

Income from continuing operations, net of income taxes 38.3 45.7

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

Loss from discontinued operations, net of income taxes ( 0.3 ) ( 0.7 )

Net income 38.0 45.0

10 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

2024 2023 2024 2023

Three Months Ended March 31,

(Dollars in millions)

10 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(Amounts in millions, except per share data)

1 unchanged sentence

Cash and cash equivalents $ 696.5 $ 700.4

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

Accounts receivable, net of allowance for credit losses of $ 0.0 at March 31, 2025 and December 31, 2024

Inventories, net 418.0 393.4

20 unchanged sentences

Preferred Stock — $ 0.01 per share par value;

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

100.0 shares authorized, no shares issued or outstanding as of March 31, 2025 and December 31, 2024

Series Common Stock — $ 0.01 per share par value;

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

50.0 shares authorized, no shares issued or outstanding as of March 31, 2025 and December 31, 2024

Common Stock — $ 0.01 per share par value;

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

450.0 shares authorized, 189.3 shares issued and 121.6 shares outstanding as of March 31, 2025 and 189.1 shares issued and 121.4 shares outstanding as of December 31, 2024

Additional paid-in capital 3,993.4 3,990.5

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

Treasury stock, at cost — 67.7 common shares as of March 31, 2025 and December 31, 2024

( 1,927.3 ) ( 1,926.5 )

8 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in millions)

5 unchanged sentences

Depreciation, depletion and amortization 92.1 79.8

Noncash interest expense, net 4.0 4.0

Noncash interest expense 1.6 1.3

Deferred income taxes ( 3.9 ) 8.5

Noncash share-based compensation 2.7 2.0

Asset impairment — 2.0

Noncash provision for NARM and Shoal Creek losses — 33.7

Net gain on disposals ( 5.2 ) ( 2.1 )

Noncash income from port and rail capacity assignment ( 0.3 ) ( 9.4 )

Net loss on early debt extinguishment — 8.8

Loss (income) from equity affiliates 7.1 ( 9.7 )

Shoal Creek insurance recovery ( 16.6 ) —

Foreign currency option contracts ( 0.4 ) ( 0.1 )

Loss from equity affiliates 6.7 3.7

Unrealized (gains) losses on foreign currency option contracts ( 4.3 ) 5.7

Changes in current assets and liabilities:

5 unchanged sentences

Asset retirement obligations 1.3 0.4

Workers’ compensation obligations ( 2.0 ) ( 1.3 )

Postretirement benefit obligations ( 11.4 ) ( 15.4 )

6 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in millions)

2 unchanged sentences

Changes in accrued expenses related to capital expenditures ( 38.6 ) ( 6.8 )

Wards Well acquisition ( 143.8 ) —

Insurance proceeds attributable to Shoal Creek equipment losses 10.9 —

Proceeds from disposal of assets, net of receivables 7.2 2.4

27 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

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

2024 2023 2024 2023

Three Months Ended March 31,

(Dollars in millions, except per share data)

45 unchanged sentences

Balance sheet information presented herein as of December 31, 2024 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, 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 months ended March 31, 2025 are not necessarily indicative of the results that may be expected for future quarters or for the year ending December 31, 2025.

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

2 unchanged sentences

Accounting Standards Not Yet Implemented

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.

In December 2023, Accounting Standards Update (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.

3 unchanged sentences

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

Expense Disaggregation .

In November 2024, ASU 2024-03 was issued, which requires public entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods.

The Company is required to adopt the amendments for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027.

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.

Induced Conversions of Convertible Debt .

In November 2024, ASU 2024-04 was issued, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion.

The amendments in this ASU affect entities that settle convertible debt instruments for which the conversion privileges were changed to induce conversion.

The Company is required to adopt the amendments for fiscal years beginning after December 15, 2025 and interim reporting periods within those periods.

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

Early adoption is permitted.

The Company will apply this guidance upon its adoption, as applicable.

(3) Revenue Recognition

5 unchanged sentences

Revenue by product type and market is set forth in the following tables.

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, 2024

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

Thermal Corporate and Other (1)

(Dollars in millions)

Domestic $ 38.8 $ — $ 304.2 $ 214.0 $ — $ 557.0

Export 272.4 — — — — 272.4

Total thermal 311.2 — 304.2 214.0 — 829.4

Metallurgical coal

Export — 240.4 — — — 240.4

Total metallurgical — 240.4 — — — 240.4

2.0 2.1 1.1 2.7 10.3 18.2

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

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

Nine Months Ended September 30, 2024

With respect to its seaborne reportable 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 March 31, 2025

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

7 unchanged sentences

Total metallurgical — 219.7 — — — 219.7

2.2 5.4 1.6 18.0 33.6 60.8

Other 0.1 0.4 0.1 — 7.5 8.1

Revenue $ 265.1 $ 220.1 $ 275.6 $ 168.7 $ 7.5 $ 937.0

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

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

7 unchanged sentences

Total metallurgical — 244.0 — — — 244.0

0.5 3.1 ( 0.1 ) 4.3 204.9 212.7

Other 0.2 3.0 — 13.6 7.0 23.8

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

(1) Corporate and Other includes the following:

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

2024 2023 2024 2023

Three Months Ended March 31,

(Dollars in millions)

Unrealized gains on derivative contracts related to forecasted sales $ — $ — $ — $ 159.0

Realized losses on derivative contracts related to forecasted sales — — — ( 80.9 )

Revenue from physical sale of coal (2)

5.9 ( 10.4 ) 20.1 97.4

Trading revenue — ( 0.1 ) — —

4.4 3.8 13.5 29.4

Other 3.5 4.9

Total Corporate and Other $ 7.5 $ 7.0

(2) Includes revenue from arrangements such as customer contract-related payments associated with volume shortfalls;

royalties related to coal lease agreements;

sales agency commissions;

property and facility rentals;

and revenue related to the Company’s assignment of rights to its excess port and rail capacity.

(3) Includes revenue recognized upon the physical sale of coal purchased from the Company’s operating segments and sold to customers through the Company’s coal trading business, including as part of settling certain derivative contracts.

(2) Includes revenue recognized upon the physical sale of coal purchased from the Company’s operating segments and sold to customers through the Company’s coal trading business.

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, 2024 and December 31, 2023 consisted of the following:

September 30, 2024 December 31, 2023

“Accounts receivable, net” at March 31, 2025 and December 31, 2024 consisted of the following:

March 31, 2025 December 31, 2024

(Dollars in millions)

2 unchanged sentences

Accounts receivable, net $ 277.7 $ 359.3

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

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

None of the above receivables included allowances for credit losses at March 31, 2025 or December 31, 2024.

No charges for credit losses were recognized during the three months ended March 31, 2025 or 2024.

(4) Inventories

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

September 30, 2024 December 31, 2023

“Inventories, net” as of March 31, 2025 and December 31, 2024 consisted of the following:

March 31, 2025 December 31, 2024

(Dollars in millions)

3 unchanged sentences

Inventories, net $ 418.0 $ 393.4

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.

Materials and supplies inventories, net presented above have been shown net of reserves of $ 3.5 million as of March 31, 2025 and December 31, 2024, respectively.

(5) Equity Method Investments

The Company’s equity method investments include its interests 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 “Loss (income) from equity affiliates”:

Loss (Income) from Equity Affiliates

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

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

The Company’s equity method investments include its interests in Middlemount Coal Pty Ltd.

(Middlemount), R3 Renewables LLC (R3), R3 Renewables II LLC (R3 II) and certain other equity method investments.

Loss from Equity Affiliates

Book Value at Three Months Ended March 31,

March 31, 2025 December 31, 2024 2025 2024

(Dollars in millions)

1 unchanged sentence

Equity method investment related to R3 — — — 3.3

Equity method investment related to R3 II 3.1 5.8 0.4 —

Total equity method investments $ 49.9 $ 58.5 $ 6.7 $ 3.7

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

In March 2022, the Company entered into a joint venture with unrelated partners to form R3, an entity in which the Company held a 50 % interest.

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 $ 4.5 million to R3 during the three months ended March 31, 2024.

In November 2024, R3 sold seven projects to an unrelated party and contributed its remaining three projects to a new entity (R3 II).

The unrelated party purchased 75 % of the equity in R3 II for cash and contingent consideration for the future obligation to pay seller’s milestone payments.

R3 used the proceeds from the equity purchase of R3 II to repurchase shares from the other investors of R3, such that Peabody is the only remaining equity holder of R3, which has a 25 % equity interest in R3 II.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(6) Derivatives and Fair Value Measurements

3 unchanged sentences

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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Foreign Currency

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

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.

As of March 31, 2025, the Company held average rate options with an aggregate notional amount of $ 449.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending December 31, 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 $ 0.74 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.

dollar exchange rate exceed amounts ranging from $ 0.67 to $ 0.74 over the nine-month period ending December 31, 2025.

As of March 31, 2025, the Company also held purchased collars with an aggregate notional amount of $ 540.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending December 31, 2025.

The purchased collars have a floor ranging from approximately $ 0.57 to $ 0.62 and a ceiling ranging from $ 0.66 to $ 0.73 , whereby the Company will incur a loss on the instruments for quarterly average Australian dollar-to-U.S.

dollar exchange rates below the floor and a gain for quarterly average rates above the ceiling.

Derivative Contracts Related to Forecasted Sales

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

As of March 31, 2025, 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 September 30, 2024.

The Company held no financial trading contracts as of March 31, 2025.

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 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.

As of March 31, 2025, the Company had an asset derivative comprised of foreign currency option contracts with a fair value of $ 0.8 million.

As of December 31, 2024, the Company had a liability derivative comprised of foreign currency option contracts with a fair value of $ 3.6 million.

The net amount of asset derivatives is included in “Other current assets” and the net amount of liability derivatives is included in “Accounts payable and accrued expenses” 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, 2024

Three Months Ended March 31, 2025

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

3 unchanged sentences

Total $ 3.6 $ ( 0.7 ) $ 4.3

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

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

(Dollars in millions)

Foreign currency option contracts Operating costs and expenses $ ( 2.1 ) $ ( 2.5 ) $ 0.4

Total $ ( 2.1 ) $ ( 2.5 ) $ 0.4

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 )

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.

The Company classifies derivative-related activity within the “Cash Flows From Operating Activities” section of the unaudited condensed consolidated statements of cash flows.

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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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

September 30, 2024

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.

March 31, 2025

Level 1 Level 2 Level 3 Total

1 unchanged sentence

Foreign currency option contracts $ — $ 0.8 $ — $ 0.8

Equity securities 0.8 — — 0.8

Total net assets $ — $ 0.8 $ — $ 0.8

4 unchanged sentences

Equity securities 1.0 — — 1.0

Total net assets $ 0.4 $ 6.2 $ — $ 6.6

Total net assets (liabilities) $ 1.0 $ ( 3.6 ) $ — $ ( 2.6 )

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.

2 unchanged sentences

• Foreign currency option contracts are valued utilizing inputs obtained in quoted public markets (Level 2) except when credit and non-performance risk is considered to be a significant input, then the Company classifies such contracts as Level 3.

• Derivative contracts related to forecasted sales and financial trading contracts are generally valued based on unadjusted quoted prices in active markets (Level 1) or a valuation that is corroborated by the use of market-based pricing (Level 2) except when credit and non-performance risk is considered to be a significant input (greater than 10 % of fair value), then the Company classifies as Level 3.

• Investments in equity securities are based on unadjusted quoted prices in active markets (Level 1).

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, 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.

The following methods and assumptions were used by the Company in estimating fair values for other financial instruments as of March 31, 2025 and December 31, 2024:

• Cash and cash equivalents, restricted cash, accounts receivable, including those within the Company’s accounts receivable securitization program, 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).

1 unchanged sentence

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, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(Dollars in millions)

6 unchanged sentences

The Company’s exposure to credit risk is substantially with electric utilities, energy marketers, steel producers and nonfinancial trading houses.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 nine months ended September 30, 2024 and 2023.

The Company had no transfers between Levels 1, 2 and 3 during the three months ended March 31, 2025 and 2024.

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 September 30, 2024 and December 31, 2023 is set forth in the table below:

September 30, 2024 December 31, 2023

The composition of property, plant, equipment and mine development, net, as of March 31, 2025 and December 31, 2024 is set forth in the table below:

March 31, 2025 December 31, 2024

(Dollars in millions)

5 unchanged sentences

At-Risk Assets

The Company identified certain assets with an aggregate carrying value of approximately $ 207 million at September 30, 2024 in its Other U.S.

The Company identified certain assets with an aggregate carrying value of approximately $ 75 million at March 31, 2025 in its Other U.S.

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

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(8) Income Taxes

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 effective tax rate before remeasurement for the three months ended March 31, 2025 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 $ 4.9 million and $ 20.1 million for the three months ended March 31, 2025 and 2024, respectively, included a tax provision of $ 0.5 million and a tax benefit of $ 5.8 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.

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 September 30, 2024 and December 31, 2023 consisted of the following:

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

The Company’s total indebtedness as of March 31, 2025 and December 31, 2024 consisted of the following:

Debt Instrument (defined below, as applicable) March 31, 2025 December 31, 2024

(Dollars in millions)

1 unchanged sentence

$ 320.0 $ 320.0

BUMA Loan Note 9.5 9.3

Finance lease obligations 23.5 25.1

2 unchanged sentences

Long-term debt $ 331.2 $ 332.3

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2028 Convertible Notes

8 unchanged sentences

Effective February 19, 2025, the conversion rate was increased to 51.7762 shares of the Company’s common stock per $ 1,000 principal amount of 2028 Convertible Notes, which represented an adjusted conversion price of approximately $ 19.31 per share.

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 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.

During the first quarter of 2025, 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 2025.

As of March 31, 2025, the if-converted value of the 2028 Convertible Notes did not exceed the principal amount.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 established a 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.

3 unchanged sentences

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

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.

On November 25, 2024, the Company amended the 2024 Credit Agreement to, among other things, permit (i) Peabody’s planned acquisition of multiple coal mines from Anglo American plc (Anglo) as further discussed in Note 11.

“Other Events,” (ii) the related bridge loan facility and (iii) the incurrence of additional indebtedness to finance the acquisition, subject to compliance with certain pro forma financial covenants.

The Company paid aggregate deferred financing costs of $ 0.9 million as part of the amendment.

As of March 31, 2025, the 2024 Credit Agreement had only been utilized for letters of credit, including $ 49.3 million outstanding as of March 31, 2025.

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 13.

“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)

“Financial Instruments and Other Guarantees.” Availability under the 2024 Credit Agreement was $ 270.7 million at March 31, 2025.

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.

BUMA Loan Note

The Company has agreed to, following the closing of the Anglo acquisition, sell a portion of the assets (the Dawson Assets) to Pt Bukit Makmur Mandiri Utama or one of its subsidiaries (BUMA).

Accordingly, on November 25, 2024, concurrent with its entry into the purchase agreements for the Anglo acquisition, the Company entered into a loan note deed with BUMA pursuant to which BUMA will lend to the Company the funds required to purchase the Dawson Assets under the Anglo acquisition purchase agreements and fund certain other obligations in relation to the Dawson Assets (the BUMA Loan Note).

The Company received $ 9.3 million in BUMA Loan Note proceeds during the year ended December 31, 2024 to fund a portion of the deposit to Anglo for the planned acquisition.

The BUMA Loan Note bears interest at a coupon rate of 10 % per year.

During the period ended March 31, 2025, the Company capitalized $ 0.2 million interest expense to the BUMA Loan Note principal balance in accordance with the terms of the loan note deed.

Refer to Note 11.

“Other Events” for additional information associated with the Anglo acquisition.

Bridge Loan Facility

Concurrently with its entry into definitive agreements to acquire the Anglo assets, the Company entered into a bridge loan facility commitment letter (the Bridge Commitment Letter and, the senior secured 364-day bridge facility provided for therein, the Bridge Facility), pursuant to which the lenders, agreed to provide the Bridge Facility to the Company in the amount of up to $ 2.075 billion in order to finance the planned acquisition in part.

The Company expects to replace the Bridge Facility with permanent financing prior to the closing date, but there can be no assurance such financing will occur and any such expectation is subject to market conditions.

To the extent borrowings are made under the Bridge Facility, any loans would bear interest at a SOFR plus an applicable margin of 8.00 % or a base rate plus an applicable margin of 7.00 %, at the Company’s option.

Such applicable margin would increase by an additional 0.75 % on the date that is 90 days following the closing date of the planned acquisition.

Any borrowings under the Bridge Facility would mature 364 days from the initial funding date, which would be on or around the closing date of the planned acquisition.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The availability of borrowings under the Bridge Facility is subject to the satisfaction of certain customary conditions for transactions of this type.

Any definitive financing documentation for the Bridge Facility will contain customary representations and warranties, covenants and events of defaults for transactions of this type.

Upon execution of any definitive financing documentation for the Bridge Facility, the Bridge Facility will be guaranteed by substantially all U.S.

subsidiaries of the Company and secured by substantially all assets of the Company, its U.S.

subsidiaries and, subject to certain conditions, certain of the Company’s Australian subsidiaries.

Interest Charges

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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 September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

(Dollars in millions)

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Covenant Compliance

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

The Company was compliant with all relevant covenants under its debt and other finance agreements at March 31, 2025.

(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 included the following components:

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

Expected return on plan assets ( 1.3 ) ( 3.1 ) ( 3.7 ) ( 16.3 )

Net periodic pension cost $ 0.5 $ 0.6 $ 1.3 $ 2.2

At January 1, 2023, 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.

The components of net periodic pension, postretirement benefit and workers’ compensation 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.

The Company sponsors a qualified pension plan.

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

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

As of March 31, 2025, the 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 the qualified plan in 2025 based on minimum funding requirements.

During the three months ended March 31, 2025, the Company made a discretionary cash contribution of $ 5.0 million to the qualified plan which allowed for termination of the Company’s agreement with the PBGC and resulted in the release of a $ 37.0 million letter of credit that had been maintained in favor of the PBGC.

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 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.

Net periodic postretirement benefit credit included the following components:

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

2024 2023 2024 2023

Three Months Ended March 31,

(Dollars in millions)

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The Company does not expect to make any discretionary contributions to the VEBA trust in 2025 and plans to utilize a portion of VEBA assets to make certain benefit payments.

(11) Other Events

Planned Anglo American Acquisition

On November 25, 2024, Peabody entered into definitive agreements (the Purchase Agreements), to acquire from Anglo a portion of the assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia, including Anglo’s interests in the Moranbah North and Grosvenor mines, the Moranbah South development project, the Capcoal complex, the Roper Creek mine and the Dawson complex (comprising the Dawson Main/Central operating mine, the Dawson South operating mine, the Dawson South Exploration project and the Theodore South exploration project, collectively, the Dawson Assets).

The Company has agreed to, following the prospective closing of the Anglo acquisition, sell the Dawson Assets to BUMA.

The Purchase Agreements required Peabody to acquire the balance, or a portion thereof, of the remaining interest in the Moranbah North and Grosvenor mines upon receipt of a tag-along notice from any joint venture participant (the Tag-Along Notice).

On January 15, 2025, Peabody received a Tag-Along Notice pursuant to which Peabody acquired an additional 0.5 % interest in the Moranbah North and Grosvenor mines for consideration of up to approximately $ 13 million.

The Purchase Agreements, as adjusted for the receipt of the Tag-Along Notice, contemplate an upfront cash payment of $ 2.058 billion, including a deposit of $ 75.0 million paid to Anglo upon execution of the Purchase Agreements, and fixed deferred cash payments totaling $ 726.0 million that will be payable in annual installments over a four-year period commencing on the first anniversary of the closing date of the acquisition, and additional contingent cash payments capped at $ 1.004 billion, comprised of (a) royalty payments contingent on the price of coal exceeding agreed-upon thresholds for each of the five years following the closing date of the acquisition and (b) payments contingent on the potential restart of the Grosvenor mine.

The total consideration for the acquisition would be up to approximately $ 3.788 billion if the maximum amounts under the contingencies described above become payable.

On May 5, 2025, Peabody announced that it had notified Anglo and BUMA of a Material Adverse Change (MAC) impacting Peabody’s planned acquisition.

The MAC relates to issues involving the Moranbah North Mine, which remains inactive following what was described as a gas ignition event on March 31, 2025.

If the MAC is not resolved to Peabody’s satisfaction in the limited timeframe specified under the Purchase Agreements, Peabody may elect to terminate the Purchase Agreements.

(12) Earnings per Share (EPS)

3 unchanged sentences

Generally, dilutive securities are not included in the computation of loss per share when a company reports a net loss from continuing operations as the impact would be anti-dilutive.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For all but performance units, the potentially dilutive impact of the Company’s share-based compensation awards is determined using the treasury stock method.

5 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 nine months ended September 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 0.3 million and less than 0.1 million for the three months ended March 31, 2025 and 2024, respectively, 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 September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

(In millions, except per share data)

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Income from continuing operations attributable to common stockholders 34.7 40.3

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

Loss from discontinued operations, net of income taxes ( 0.3 ) ( 0.7 )

Net income attributable to common stockholders $ 34.4 $ 39.6

4 unchanged sentences

Income from continuing operations attributable to common stockholders 37.8 43.4

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

Loss from discontinued operations, net of income taxes ( 0.3 ) ( 0.7 )

Net income attributable to common stockholders $ 37.5 $ 42.7

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Weighted average shares outstanding — basic

124.9 133.2 126.3 140.0

Dilutive impact of share-based compensation awards 0.6 0.6

3 unchanged sentences

Income from continuing operations $ 0.29 $ 0.32

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

Loss from discontinued operations ( 0.01 ) ( 0.01 )

Net income attributable to common stockholders $ 0.28 $ 0.31

1 unchanged sentence

Income from continuing operations $ 0.27 $ 0.30

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

Loss from discontinued operations — ( 0.01 )

Net income attributable to common stockholders $ 0.27 $ 0.29

7 unchanged sentences

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

September 30, 2024

March 31, 2025

Reclamation Support Other Support (1)

7 unchanged sentences

Obligations supported, net $ 931.8 $ 146.6 $ 1,078.4

(1) Instruments support obligations related to pension and health care plans, workers’ compensation, property and casualty insurance, customer and vendor contracts and certain restoration ancillary to prior mining activities.

(1) Instruments support obligations related to leases, health care plans, workers’ compensation, property and casualty insurance, customer and vendor contracts and certain restoration ancillary to prior mining activities.

(2) Amounts do not include cash-collateralized letters of credit.

2 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 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 will vary prospectively as bonding levels increase or decrease.

The amendment extended the agreement through December 31, 2026.

Under the April 2023 amendment, the Company and its surety providers agreed to a maximum aggregate collateral amount based upon bonding levels which will vary prospectively as bonding levels increase or decrease.

The amendment also 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 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 $ 507.3 million at September 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.

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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 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.

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 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, 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.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company is in compliance with such requirements at March 31, 2025.

At March 31, 2025, the Company’s maximum aggregate collateral amount was $ 525.0 million , which was comprised of $ 398.0 million in trust accounts and letters of credit of $ 127.0 million held for the benefit of certain surety providers.

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).

In 2017, the Company entered into the Sixth Amended and Restated Receivables Purchase Agreement, as amended from time to time.

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 SOFR plus an applicable margin.

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.

The Securitization Program provides up to $ 225.0 million of funding capacity which 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.

Funding capacity under the Securitization Program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization.

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 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.

The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028.

During the three months ended March 31, 2025, the Company capitalized $ 1.7 million of debt issuance costs related to the amendment.

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 March 31, 2025, 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 $ 119.8 million at March 31, 2025.

The Company was not required to post cash collateral under the Securitization Program at March 31, 2025.

The Company incurred interest and fees associated with the Securitization Program of $ 0.6 million and $ 0.8 million during the three months ended March 31, 2025 and 2024, respectively, which have been recorded as “Interest expense, net of capitalized interest” in the accompanying unaudited condensed consolidated statements of operations.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Credit Support Facilities

4 unchanged sentences

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

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.

At March 31, 2025, letters of credit of $ 115.6 million were outstanding under the agreement, which were collateralized by cash of $ 119.1 million.

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

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

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

At March 31, 2025, the bank guarantee facilities were backed by cash of $ 170.2 million.

Restricted Cash and Collateral

4 unchanged sentences

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

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(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.

(3) At March 31, 2025, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $ 271 million and $ 204 million, respectively.

At December 31, 2024, the Australian dollar denominated balances supporting the bank guarantee facilities and the deposits with regulatory authorities were $ 271 million and $ 205 million, respectively.

1 unchanged sentence

Unconditional Purchase Obligations

As of September 30, 2024, purchase commitments for capital expenditures were $ 81.3 million, all of which is obligated within the next 12 months.

As of March 31, 2025, purchase commitments for capital expenditures were $ 61.1 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.

“Commitments and Contingencies” to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Contingencies

2 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

1 unchanged sentence

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 that is scheduled for November 2024.

Penalties will be determined at that sentencing hearing.

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 .

On July 20, 2023, Peabody Energy was served with a summons issued on behalf of Multnomah County, Oregon.

The complaint sought damages from the Company and other major energy producers for allegedly causing an “extreme heat event” in Multnomah County in late June and early July 2021.

The causes of action, pursuant to Oregon state law, included a failure to warn, false or misleading advertisement and public nuisance.

In July 2024, Peabody was dismissed from this case, without prejudice.

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

On March 15, 2024, the Metropolitan Collieries Pty Ltd (MCPL) 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 MCPL also pled guilty.

The remaining charge was discontinued.

A sentencing hearing was held in November 2024 and the judgment was handed down in March 2025.

MCPL was convicted of three separate offenses under the Act and fined a total monetary penalty of $ 0.1 million.

MCPL was also ordered to pay costs in the amount of $ 0.2 million in addition to various publication orders that MCPL must comply with under the judgement.

At times, the Company becomes a party to other disputes, including those related to contract miner performance, claims, lawsuits, arbitration proceedings, regulatory investigations and administrative procedures in the ordinary course of business in the U.S., Australia and other countries where the Company does business.

Based on current information, the Company believes that such other pending or threatened proceedings are likely to be resolved without a material adverse effect on its consolidated financial condition, results of operations or cash flows.

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

The Company reassesses the probability and the ability to estimate contingent losses as new information becomes available.

(15) Segment Information

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Thermal and Corporate and Other.

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.

The Company’s chief operating decision maker (CODM), defined as the President and Chief Executive Officer, uses Adjusted EBITDA as the primary financial metric to measure each segment’s operating performance against expected results and to allocate resources, including capital investment in mining operations and potential expansions.

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.

Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, as displayed in the reconciliation below.

Management believes this non-GAAP performance measure is also used by investors to measure the Company’s operating performance.

Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, as displayed in the reconciliations below.

Management believes this non-GAAP measure is used by investors to measure the Company’s operating performance.

Adjusted EBITDA is not intended to serve as an alternative to U.S.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Reportable segment results were as follows:

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

Segment results for the three months ended March 31, 2025 were as follows:

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

Thermal Corporate

and Other Consolidated

(Dollars in millions)

Revenue $ 265.1 $ 220.1 $ 275.6 $ 168.7 $ 7.5 $ 937.0

Less Significant Segment Expenses:

Labor costs 35.1 55.0 49.8 50.2

Repair costs 24.8 47.0 31.5 34.1

Outside services 26.8 72.1 31.1 35.8

Commodities expense 19.1 13.4 38.7 19.5

Sales related costs 54.6 54.0 75.3 10.0

Other expenses (1)

20.5 ( 34.6 ) 12.9 ( 13.8 )

Adjusted EBITDA 84.2 13.2 36.3 32.9 ( 22.6 ) 144.0

Additions to property, plant, equipment and mine development 8.5 53.2 3.9 4.6 0.2 70.4

Loss from equity affiliates — — — — 6.7 6.7

Segment results for the three months ended March 31, 2024 were as follows:

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

Thermal Corporate

and Other Consolidated

(Dollars in millions)

Seaborne Thermal $ 313.2 $ 297.4 $ 904.6 $ 1,043.4

Seaborne Metallurgical 242.5 247.0 783.8 907.9

Powder River Basin 305.3 313.0 781.3 878.0

Thermal 216.7 228.2 610.3 677.5

Corporate and Other 10.3 ( 6.7 ) 33.6 204.9

Total $ 1,088.0 $ 1,078.9 $ 3,113.6 $ 3,711.7

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

Less Significant Segment Expenses:

Labor costs 37.7 49.3 51.8 52.9

Repair costs 37.9 32.7 34.9 32.4

Outside services 31.0 54.6 31.9 36.6

Commodities expense 23.9 15.7 41.1 19.3

Sales related costs 52.1 52.0 69.8 13.6

Other expenses (1)

7.5 ( 5.6 ) 8.2 ( 9.7 )

Adjusted EBITDA 93.8 48.3 16.4 46.5 ( 44.5 ) 160.5

Seaborne Thermal $ 120.0 $ 115.5 $ 318.2 $ 477.0

Seaborne Metallurgical 27.8 78.6 219.7 271.9

Powder River Basin 51.7 54.1 85.9 116.1

Additions to property, plant, equipment and mine development 14.5 39.4 5.0 2.3 0.2 61.4

Loss from equity affiliates — — — — 3.7 3.7

(1) Other expenses for the mining operations primarily include lease expense;

non-sales related taxes;

insurance expense;

joint facility charges;

and credits related to the capitalization of costs to the balance sheet.

Total assets are reflected at the division level only for the Company’s operating segments and are not allocated between each individual segment as such information is not regularly reviewed by the Company’s CODM.

Further, some assets service more than one segment within the division and an allocation of such assets would not be meaningful or representative on a segment by segment basis.

Assets related to closed, suspended or otherwise inactive mines are included within the Corporate and Other category.

The following table presents total assets at the division level:

March 31, 2025 December 31, 2024

(Dollars in millions)

Seaborne $ 2,434.6 $ 2,465.3

Thermal 1,315.0 1,346.9

Corporate and Other 2,034.1 2,141.5

Total $ 224.8 $ 270.0 $ 695.0 $ 1,018.8

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,

2024 2023 2024 2023

Total assets $ 5,783.7 $ 5,953.7

PEABODY ENERGY CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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

Three Months Ended March 31,

(Dollars in millions)

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

Income from continuing operations before incomes taxes $ 43.2 $ 65.8

Depreciation, depletion and amortization 92.1 79.8

1 unchanged sentence

Restructuring charges 1.7 0.1

Asset impairment — — — 2.0

Provision for NARM and Shoal Creek losses — 3.3 3.7 37.0

Shoal Creek insurance recovery - property damage — — ( 28.7 ) —

Transaction costs related to business combinations 2.4 —

Provision for NARM loss — 1.8

Changes in amortization of basis difference related to equity affiliates ( 0.6 ) ( 0.4 )

Interest expense, net of capitalized interest 11.5 14.7

Net loss on early debt extinguishment — — — 8.8

Interest income ( 15.4 ) ( 19.2 )

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

Unrealized (gains) losses on foreign currency option contracts ( 4.3 ) 5.7

Take-or-pay contract-based intangible recognition ( 0.2 ) ( 0.7 )

Income tax provision 25.7 46.5 85.2 238.7

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

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

The acquisition, which was accounted for as an asset acquisition, was completed on April 16, 2024.

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 September 30, 2024.

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

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

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

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

North Antelope Rochelle Mine Tornado

On June 23, 2023, the Company’s North Antelope Rochelle Mine sustained damage from a tornado which led to a temporary suspension of operations.

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.

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 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 during the nine months ended September 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 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 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.

Total Adjusted EBITDA $ 144.0 $ 160.5

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