PEABODY ENERGY CORP 10-K

Item 2. Properties. Coal Reserves and Resources Information concerning the Company’s mining properties in this Annual Report on Form 10-K has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K. Subpart 1300 of Regulation S-K requires disclosure of mineral resources, in addition to mineral reserves, both in the aggregate and for each of the Company’s individually material mining properties. The Company’s coal reserves and resources are estimated by individuals deemed Qualified Persons (QP) according to the standards set forth in subpart 1300 of Regulation S-K. Mineral resources and reserves are defined in subpart 1300 of Regulation S-K as follows: • Mineral resource. A concentration or occurrence of material of economic interest in or on the earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. • Mineral reserve. An estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of a QP, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. Under subpart 1300 of Regulation S-K, mineral resources may not be classified as mineral reserves unless the determination has been made by a QP that such mineral resources can be the basis of an economically viable project. The conversion of reported mineral resources to mineral reserves should not be assumed. Coal resources are estimated from geological models constructed from an extensive historical database of drill holes and the Company’s ongoing drilling program. Data from individual drill holes is compiled in a computerized drill-hole database, including the depth, thickness and, where core drilling is used, the quality of the coal observed. For coal deposits, the density of a drill pattern is one of the important factors which determine whether the related coal will be classified as measured, indicated or inferred. Peabody Energy Corporation 2025 Form 10-K 42 Table of Contents Mineral resource classifications are differentiated under subpart 1300 of Regulation S-K, in part, as follows: • Measured resource . That part of a mineral resource with the highest level of geological confidence; quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. • Indicated resource. That part of a mineral resource with a level of geological confidence between that of measured and inferred resources; quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. • Inferred resource . That part of a mineral resource with the lowest level of geological confidence; quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. The geological confidence surrounding resource classification is first determined by a drill hole spacing analysis performed by a QP using geostatistical techniques. A QP may also use qualitative analysis to determine the geologic confidence based on historical experience with a specific coal deposit. Resources are further evaluated using a set of structure and quality parameters to determine the reasonable prospects for economic extraction. The structure parameters include coal thickness, depth, dipping angle and strip ratio, among others. The quality parameters include ash and sulfur content, yield, and heat value, among others. Each coal deposit is different with respect to geology, potential mining methods, logistics and markets. The cut-off criteria of those structure and quality parameters are different for each deposit, and a QP generally forms those criteria based upon experience with the Company’s existing mining operations or adjacent operations with similar geological conditions. Other factors, such as coal control, or surface and underground obstacles are also considered in connection with resource estimates. The reclassification of reported mineral resources from lower to higher levels of geological confidence should not be assumed. The economically mineable part of a measured coal resource is considered a proven coal reserve and has the highest degree of assurance of economic viability. The economically mineable part of indicated, and sometimes measured, coal resources are considered probable coal reserves and have a moderate degree of assurance of economic viability. For each mine or future mine, the Company develops Life-of-Mine (LOM) plans which employ a market-driven, risk-adjusted capital allocation process to guide long-term mine planning of active operations and development projects. QPs rely on LOM planning as an integral process for coal reserve and resource estimates. The LOM plans consider dilution and losses during mining and processing as recoverability factors to estimate saleable coal. The LOM plans are developed in consideration of market demands and operational constraints. The LOM plans project, among other things, annual quantities and qualities for each coal product. The saleable product mix for a mine may include multiple thermal and metallurgical products with different targeted qualities and sales prices. The expected volumes for each mine and product, as well as annual pricing forecasts for each product, developed as described below, and related cost forecasts, developed as described below, are then evaluated to determine the economically viable coal in the LOM plans. Other factors impacting the assessment include geological conditions, production expectations for certain areas, the effects of regulation and taxes by governmental agencies, future price and operating cost assumptions and adverse changes in market conditions and mine closure activities. The Company periodically reviews and updates coal reserve and resource estimates to reflect the production of coal, new drill hole data, the effects of mining activities, analysis of new engineering and geological data, changes in property control, modification of mining methods and other factors. Mineral Rights The Company controls coal rights through direct ownership and numerous lease agreements with government or private parties. The majority of the Company’s coal reserves and resources are controlled through lease agreements with the U.S. and Australian governments. In addition, surface rights are required to conduct certain mining-related activities. The Company holds the majority of the required surface rights to meet mid- to long-term production requirements. The additional surface rights to meet long-term production requirements are expected to be acquired as needed. Peabody Energy Corporation 2025 Form 10-K 43 Table of Contents The Company is party to numerous U.S. federal coal leases that are administered by the U.S. Department of the Interior under the Federal Coal Leasing Amendments Act of 1976. These leases cover Peabody’s principal reserves in the Powder River Basin and other reserves and resources in Alabama, Colorado and New Mexico. Each of these leases continues indefinitely, provided there is diligent development of the property and continued operation of the related mine or mines. The U.S. Bureau of Land Management (BLM) has asserted the right to adjust the terms and conditions of these leases, including rent and royalties, after the first 20 years of their term and at 10-year intervals thereafter. Annual rents on surface land under federal coal leases are now set at $3.00 per acre. Production royalties on federal leases are set by statute at 12.5% of the gross proceeds of coal mined and sold for surface-mined coal and 8% for underground-mined coal. The OBBBA cuts federal coal royalty rates to 7% for both surface and underground mines starting July 4, 2025, and lasting through September 30, 2034. The U.S. federal government limits by statute the amount of federal land that may be leased by any company and its affiliates at any time to 75,000 acres in any one state and 150,000 acres nationwide. As of December 31, 2025, the Company leased 1,610 acres of federal land in Alabama, 1,360 acres in Colorado, 282 acres in New Mexico and 38,915 acres in Wyoming, for a total of 42,167 acres nationwide subject to those limitations. The Company also leases coal-mining properties from various state governments in the U.S. Private U.S. coal leases normally have terms of between 10 and 20 years and usually give the Company the right to renew the lease for a stated period or to maintain the lease in force until the exhaustion of mineable and merchantable coal contained on the relevant site. These private U.S. leases provide for royalties to be paid to the lessor either as a fixed amount per ton or as a percentage of the sales price. Many private U.S. leases also require payment of a lease bonus or minimum royalty, payable either at the time of execution of the lease or in periodic installments. The terms of private U.S. leases are normally extended by active production at or near the end of the lease term. Private U.S. leases containing undeveloped coal properties may expire or these leases may be renewed periodically. Mining and exploration in Australia are generally carried out under leases or licenses granted by state governments. Mining leases are typically for an initial term of up to 21 years (but which may be renewed) and contain conditions relating to such matters as minimum annual expenditures, restoration and rehabilitation. Royalties are paid to the state government as a percentage of the sales price. Generally, landowners do not own the mineral rights or have the ability to grant rights to mine those minerals. These rights are retained by state governments. Compensation is payable to landowners for loss of access to the land, and the amount of compensation can be determined by agreement or court process. Surface rights are typically acquired directly from landowners through agreement or court determination, subject to some exceptions. Pricing The pricing information used in support of the Company’s coal reserve and resource estimates include internal, proprietary price forecasts and existing contract economics, in each case on a mine-by-mine and product-by-product basis. In general, price forecasts are based on a thorough analytical process utilizing detailed supply and demand models, global economic indicators, projected foreign exchange rates, analyses of price relationships among various commodities, competing fuels analyses, projected supply and demand fundamentals for steel production and electricity generation, analyses of supplier costs and other variables. Price forecasts, supply and demand models and other key assumptions and analyses are stress-tested against independent third-party research (not commissioned by the Company) to confirm the conclusions reached through analytical processes, and that price forecasts fall within the ranges of the projections included in this third-party research. The development of the analyses, price forecasts, supply and demand models and related assumptions are subject to multiple levels of management review. Below is a description of some of the specific factors that the Company evaluates in developing price forecasts for thermal and metallurgical coal products on a mine-by-mine and product-by-product basis. Differences between the assumptions and analyses included in the price forecasts and realized factors could cause actual pricing to differ from the forecasts. Thermal . Several factors can influence thermal coal supply and demand and pricing. Demand is sensitive to total electric power generation volumes, which are determined in part by the impact of weather on heating and cooling demand and economic activity, inter-fuel competition in the electric power generation mix (such as from natural gas and renewable sources), changes in capacity (additions and retirements), competition from other producers, coal stockpiles and policy and regulations. Supply considerations impacting pricing include coal reserve and resource positions, mining methods, strip ratios, production costs and capacity and the cost of new supply (greenfield developments or extensions at existing mines). Peabody Energy Corporation 2025 Form 10-K 44 Table of Contents In the United States, natural gas is the most significant substitute for thermal coal for electricity generation and can be one of the largest drivers of shifts in supply and demand and pricing. The competitiveness of natural gas as a generation fuel source has been strengthened by accelerated growth in domestic natural gas production, new natural gas combined cycle generation capacity and comparatively low natural gas prices versus historic levels. The build out of renewable generation and subsidized power can also be a key driver of power market pricing and hence coal prices. Internationally, thermal coal-fueled generation also competes with alternative forms of electricity generation. The competitiveness and availability of generation fueled by natural gas, liquefied natural gas, oil, nuclear, hydro, wind, solar and biomass vary by country and region and can have a meaningful impact on coal pricing. Policy and regulations, which vary from country to country, can also influence prices. In addition, seaborne thermal coal import demand can be significantly impacted by the availability of domestic coal production, particularly in the two leading coal import countries, China and India, and the competitiveness of seaborne supply from leading thermal coal exporting countries, including Indonesia, Australia, Colombia, the U.S., Russia and South Africa, among others. Metallurgical . Several factors can influence metallurgical coal supply and demand and pricing. Demand is impacted by economic conditions, government policies, demand for steel and competing technologies used to make steel, some of which do not use coal as a manufacturing input. Competition from other types of coal is also a key price consideration and can be impacted by the coal quality and characteristics, delivered energy cost (including transportation costs), customer service and support and reliability of supply. Seaborne metallurgical coal import demand can be significantly impacted by the availability of domestic coal production, particularly in leading metallurgical coal import countries such as China, among others, as well as country-specific policies restricting or promoting domestic supply. The competitiveness of seaborne metallurgical coal supply from leading metallurgical coal exporting countries of Australia, the U.S., Russia, Canada, Mongolia and Mozambique, among others, is also an important price consideration. In addition to the factors noted above, the prices which may be obtained at each mine or future mine can be impacted by factors such as (i) the mine’s location, which impacts the total delivered energy costs to its customers, (ii) quality characteristics, particularly if they are unique relative to competing mines, (iii) assumed transportation costs and (iv) other mine costs that are contractually passed on to customers in certain commercial relationships. Peabody Energy Corporation 2025 Form 10-K 45 Table of Contents Costs The cost estimates used to establish LOM plans are generally made according to internal processes that project future costs based on historical costs and expected trends. The estimated costs normally include mining, processing, transportation, royalty, add-on tax and other mining-related costs. Estimated mining and processing costs reflect projected changes in prices of consumable commodities (mainly diesel fuel, explosives and steel), labor costs, geological and mining conditions, targeted product qualities and other mining-related costs. Estimates for other sales-related costs (mainly transportation, royalty and add-on tax) are based on contractual prices or fixed rates. Specific factors that may impact the Company’s operating costs include: • Geological settings . The geological characteristics of each mine are among the most important factors that determine the mining cost. Company geologists conduct the exploration program and provide geological models for the LOM process. Coal seam depth, thickness, dipping angle, partings and quality constrain the available mining methods and size of operations. Shallow coal is typically mined by surface mining methods where the primary cost is overburden removal. Deep coal is typically mined by underground mining methods where the primary costs include coal extraction, conveyance and roof control. • Scale of operations and the equipment sizes . For surface mines, dragline systems generally have a lower unit cost than truck-and-shovel systems for overburden removal. Longwall operations are generally more cost-effective than room-and-pillar operations for underground mines. • Commodity prices . For surface mines, the costs of diesel fuel and explosives are major components of the total mining cost. For underground mines, the steel used for roof control represents a significant cost. Forecasted commodity prices are used to project those costs in the financial models used to establish reserve and resource estimates. • Target product quality . By targeting a premium quality product, mining and processing processes may experience more coal losses. By lowering product quality the coal losses can be minimized and therefore a lower cost per ton can be achieved. In the Company’s LOM plans, product qualities are estimated to correspond to existing contracts and forecasted market demands. • Transportation costs . Transportation costs vary by region. Most of the Company’s U.S. thermal operations sell coal at mine loadouts. Therefore, no transportation expenses are included in U.S. thermal cost estimates. The Company’s seaborne operations typically sell coal at designated ports. The estimated costs for seaborne operations include rail and barge transportation and related fees at ports. • Royalty costs . Royalty costs are based upon contractual agreements for the coal leased from governments or private owners. The royalty rates for coal leased from governments differ by country and, in some cases, by mining method. Estimated add-on taxes and other sales-related costs are determined according to government regulations or historical costs. • Exchange rates . Costs related to the Company’s Australian production are predominantly denominated in Australian dollars, while the Australian coal exported is sold in U.S. dollars. As a result, Australian/U.S. dollar exchange rates impact the U.S. dollar cost of Australian production. Summary of Coal Reserves and Resources Peabody controlled an estimated 2.0 billion tons of coal reserves and 3.5 billion tons of coal resources as of December 31, 2025. Approximately 98% of the Company’s coal reserves and 95% of the Company’s coal resources are held under lease, and the remainder is held through fee ownership. The following tables summarize the Company’s estimated coal reserves and resources as of December 31, 2025. The quantity of the coal resources is estimated on an in situ basis as attributable to Peabody. Coal resources are reported exclusive of coal reserves. The quantity of the coal reserves is estimated on a saleable product basis as attributable to Peabody. The coal reserves and resources are reported on selected key quality parameters and on different moisture bases generally referenced by sales contracts for each mining property. Peabody Energy Corporation 2025 Form 10-K 46 Table of Contents SUMMARY COAL RESERVES AT END OF THE FISCAL YEAR ENDED DECEMBER 31, 2025 (1) (Tons in millions) Peabody Mining Coal Proven Coal Reserves Probable Coal Reserves Total Coal Reserves Interest Segment / Mining Complex Country State Stage Method Type Amount Quality Amount Quality Amount Quality (10) Seaborne Thermal: (2)(4) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Wilpinjong AUS NSW P S T 36 23.9 0.5 5,972 43 31.1 0.4 5,358 79 27.8 0.4 5,638 100 % Wambo Open-cut (9) AUS NSW P S T/C 28 11.8 0.3 6,371 3 11.9 0.3 6,362 31 11.8 0.3 6,370 50 % South Wambo AUS NSW E U T/C — — — — 74 9.8 0.3 7,034 74 9.8 0.3 7,034 100 % Total 64 120 184 Seaborne Metallurgical: (3)(4) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Shoal Creek USA AL P U C 9 9.9 0.7 30.2 4 9.9 0.7 30.2 13 9.9 0.7 30.2 100 % Coppabella AUS QLD P S P 4 8.9 0.2 9.9 30 9.7 0.2 10.5 34 9.6 0.2 10.4 73.3 % Moorvale AUS QLD P S C/P/T 1 11.8 0.3 17.8 — — — — 1 11.8 0.3 17.8 73.3 % Metropolitan AUS NSW P U C/P/T 5 11.8 0.4 18.3 4 12.0 0.4 18.2 9 11.9 0.4 18.2 100 % Centurion (11) AUS QLD D U C 84 8.1 0.5 22.4 108 7.9 0.5 20.5 192 8.0 0.5 21.4 100 % Middlemount (9) AUS QLD P S C/P 23 10.3 0.4 18.0 10 10.3 0.4 18.0 33 10.3 0.4 18.0 50.0 % Total 126 156 282 Powder River Basin: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) North Antelope Rochelle USA WY P S T 1,188 4.5 0.2 8,910 46 4.6 0.2 8,970 1,234 4.6 0.2 8,910 100 % Caballo USA WY P S T 125 5.1 0.3 8,430 36 5.1 0.4 8,360 161 5.1 0.3 8,410 100 % Rawhide USA WY P S T 67 5.8 0.4 8,280 2 5.3 0.3 8,330 69 5.8 0.4 8,280 100 % Total 1,380 84 1,464 Other U.S. Thermal: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Bear Run USA IN P S T 39 9.6 2.7 11,170 23 9.2 2.3 11,140 62 9.4 2.5 11,155 100 % Lee Ranch USA NM P S T 6 15.5 0.8 9,345 — 15.2 0.8 9,402 6 15.5 0.8 9,350 100 % Gateway North USA IL P U T 18 8.9 2.9 10,913 3 9.0 2.9 10,868 21 8.9 2.9 10,905 100 % Twentymile USA CO P U T 3 11.0 0.5 11,250 — — — — 3 11.0 0.5 11,250 100 % Wild Boar USA IN P S T 7 8.0 2.2 10,990 4 8.3 2.9 11,260 11 8.1 2.5 11,100 100 % Francisco Underground USA IN P U T 2 9.9 3.7 11,615 — 9.8 3.7 11,655 2 9.9 3.7 11,630 100 % Total 75 30 105 Grand total 1,645 390 2,035 Stage Mining Method Coal Type P Producing S Surface Mine T Thermal I Idle U Underground Mine C Coking D Development P Pulverized Coal Injection E Exploration Peabody Energy Corporation 2025 Form 10-K 47 Table of Contents SUMMARY COAL RESOURCES AT END OF THE FISCAL YEAR ENDED DECEMBER 31, 2025 (1) (Tons in millions) Measured and Indicated Peabody Mining Coal Measured Coal Resources Indicated Coal Resources Coal Resources Inferred Coal Resources Interest Deposit Country State Stage Method Type Amount Quality Amount Quality Amount Quality Amount Quality (10) Seaborne Thermal: (2)(4) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Tons %Ash %Sulfur Kcal/kg (6) Wilpinjong AUS NSW P S T 53 26.7 0.4 5,638 45 28.2 0.4 5,602 98 27.4 0.4 5,621 7 28.2 0.4 5,629 100 % Wambo Open-cut (9) AUS NSW P S T/C 219 20.7 0.4 5,865 180 21.9 0.4 5,758 399 21.2 0.4 5,817 272 21.7 0.4 6,001 50 % South Wambo AUS NSW E U T/C 199 19.8 0.3 6,228 73 23.0 0.3 5,960 272 20.7 0.3 6,156 38 30.6 0.3 5,270 100 % Total 471 298 769 317 Seaborne Metallurgical: (3)(4) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Tons %Ash %Sulfur VM% (7) Shoal Creek USA AL P U C 37 9.6 0.7 24.8 34 9.6 0.7 24.8 71 9.6 0.7 24.8 6 9.6 0.7 24.8 100 % Metropolitan AUS NSW P U C/P/T — 17.0 0.3 17.8 9 15.4 0.3 17.8 9 15.3 0.4 18.6 21 14.5 0.3 17.6 100 % Coppabella AUS QLD P S/U P 12 15.9 0.3 13.2 39 16.0 0.3 12.6 51 16.0 0.3 12.7 50 15.7 0.3 12.6 73.3 % Moorvale AUS QLD P S C/P/T 26 18.5 0.3 17.2 20 16.9 0.3 17.2 46 17.8 0.3 17.2 6 15.7 0.3 17.2 73.3 % Centurion (11) AUS QLD D U C 96 20.7 0.5 21.9 485 17.9 0.5 19.6 581 18.4 0.5 20.0 286 21.1 0.5 18.9 100 % Coppabella North AUS QLD E U P 255 15.8 0.3 14.6 102 16.8 0.3 14.6 357 16.1 0.3 14.6 12 16.5 0.3 14.3 75.5 % Yeerun AUS QLD E S P 16 16.0 0.4 14.3 57 16.2 0.5 15.0 73 16.2 0.4 14.8 46 17.8 0.5 14.7 83.0 % Moorvale North AUS QLD E S P 21 26.0 0.4 12.9 25 24.5 0.5 13.2 46 25.2 0.4 13.1 25 23.2 0.5 13.4 73.3 % Gundyer AUS QLD E U P — — — — 54 16.4 0.2 19.7 54 16.4 0.2 19.7 70 18.3 0.2 18.3 90.0 % Total 463 825 1,288 522 Powder River Basin: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Caballo USA WY P S T 141 5.0 0.3 8,370 107 5.2 0.4 8,210 248 5.1 0.3 8,300 2 5.2 0.4 8,420 100 % Rawhide USA WY P S T 25 5.2 0.4 8,150 96 5.2 0.3 8,310 121 5.2 0.3 8,280 7 6.6 0.4 8,250 100 % Total 166 203 369 9 Other U.S. Thermal: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Bear Run USA IN P S T 93 15.1 3.8 10,770 78 17.0 3.6 10,410 171 16.1 3.7 10,580 19 15.8 3.4 10,630 100 % Francisco Underground USA IN P U T 9 12.5 4.9 11,450 1 12.3 4.8 11,480 10 12.5 4.9 11,460 — — — — 100 % Gateway North USA IL P U T 30 12.9 4.0 10,604 15 13.0 4.0 10,597 45 12.9 4.0 10,601 — — — — 100 % Lee Ranch USA NM P S T 1 13.4 1.0 9,973 5 11.6 1.0 10,178 6 11.9 1.0 10,144 3 11.5 0.9 10,172 100 % Wild Boar USA IN P S T — — — — 4 10.8 5.7 11,390 4 12.6 5.3 11,200 3 13.2 5.0 11,050 100 % Total 133 103 236 25 Grand total 1,233 1,429 2,662 873 Peabody Energy Corporation 2025 Form 10-K 48 Table of Contents (1) The sales price assumptions supporting economic recoverability vary depending upon factors such as coal quality and existing customer volume commitments. For the five-year period 2026 through 2030, the estimated sales prices for seaborne metallurgical mines are based upon estimated premium hard coking coal benchmark prices ranging from $200 to $221 per tonne. The estimated sales prices for seaborne thermal mines are based upon estimated Newcastle benchmark prices ranging from $100 to $113 per tonne for the same period. For U.S. domestic thermal mines, the estimated sales prices for the same period range from approximately $9.81 to $64.77 per ton. Subsequent to 2030, for all mines, sales price escalation is assumed at 2.0% to 3.0% per annum through the end of each LOM plan. (2) The moisture condition for the Seaborne Thermal segment coal quality is on an air-dry basis for reserves, and an in situ moisture basis for resources except for the Wambo Open-cut Mine which is estimated on an as-air dry moisture basis for resources. (3) The moisture condition for the Seaborne Metallurgical segment coal quality is on an air-dry basis, except for the Shoal Creek Mine, which is on a dry basis. (4) The quantities for Australian coal reserves are estimated on an as-shipped moisture basis; quantities for Australian coal resources are estimated on an in situ moisture basis. (5) The quality and quantity estimates for U.S. thermal coal reserves are calculated on as-shipped moisture basis; the quality and quantity estimates for U.S. thermal coal resources are calculated on an in situ moisture basis. (6) Kcal/kg (kilocalories per kilogram) is the net calorific value (net heating value) of coal, except for the Wambo Open-cut Mine which is estimated as gross calorific value. (7) VM (volatile matter) represents the proportion of certain organic and mineral components in coal, for example, water, carbon dioxide or sulfur dioxide. Volatile matter is inversely related to coal rank. (8) Btu (British thermal unit) is the gross heating value of coal per pound, which includes the weight of moisture in coal on an as-sold or in situ basis. The range of variability of the moisture content in coal may affect the actual shipped Btu content. (9) Reserve and resource data is maintained and provided by joint venture managing partners utilizing the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. (10) The quantities of coal reserves and resources are disclosed at Peabody’s proportional ownership share. (11) At December 31, 2025, the mine was in development. Longwall mining commenced in February 2026. Individual Property Disclosure To determine the Company’s individually material mining operations in accordance with subpart 1300 of Regulation S-K, management considered both quantitative and qualitative factors, assessed in the context of the Company’s overall business and financial condition. Such assessment included the Company’s aggregate mining operations on all of its mining properties, regardless of the stage of production or the type of coal produced. Quantitative factors included, among others, mining operations’ relative contributions to the Company’s aggregate historical and estimated revenue, cash flows, and Adjusted EBITDA (as defined in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”) Qualitative factors may include, as applicable, strategic priorities, the regulatory environment, capital expansion plans and the long-term pricing outlook. The Company concluded that as of December 31, 2025, its individually material mines are North Antelope Rochelle Mine (NARM), Wilpinjong Mine and Centurion Mine. The Company will update its assessment of individually material mines on an annual basis. The information that follows relating to such individually material mines is derived, for the most part, from, and in some instances is an extract from, the technical report summaries (TRSs) relating to such properties prepared in compliance with the Item 601(b)(96) and subpart 1300 of Regulation S-K. Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein. The changes for NARM and Centurion from the previous years are not material, thus no updates for the TRSs are included in this filing. Reference should be made to the full text of the TRS for NARM, incorporated herein by reference and made a part of Peabody’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 18, 2022. Reference should be made to the full text of the TRS for the Centurion Mine, incorporated herein by reference and made a part of Peabody’s filing on Form 8-K filed with the SEC on October 15, 2024. The Wilpinjong Mine added 43 million tons of coal reserves, mainly from the exploration license EL9399, partially offset by production depletion. Reference should be made to the full text of the TRS for Wilpinjong Mine, incorporated herein by reference and made a part of this Annual Report on Form 10-K. The relevant TRS for Wilpinjong Mine is included as Exhibit 96.2 to this Annual Report on Form 10-K, and specific sections of such TRS are referenced below using the corresponding exhibit number. North Antelope Rochelle Mine NARM is a production-stage surface coal mine located sixty-five miles south of Gillette, Wyoming, USA. NARM is situated in the Gillette Coal Field on the east flank of the Powder River Basin. NARM began operations in 1999 after Peabody combined its interests in the formerly separate North Antelope Mine and Rochelle Mine. Peabody Energy Corporation 2025 Form 10-K 49 Table of Contents NARM extracts coal from the Wyodak-Anderson coal seam, which ranges from 60- to 80-feet thick and lies from 120 to 460 feet below the surface in the mining area. The Company has secured mineral rights through federal and state lease agreements which cover 30,159 acres. The typical royalty rate for federal and state coal leases is 12.5% of realized revenue. The OBBBA cuts federal coal royalty rates to 7% for both surface and underground mines starting July 4, 2025, and lasting through September 30, 2034. Generally, the leases continue indefinitely with periodic renewal, provided there is diligent coal production or other development within the lease area. As of December 31, 2025, all required licenses and permits were in place for the operations of NARM. The mining operation consists of multiple open pits in four main mining areas, which allows for quality blending and other optimization strategies. Overburden is removed by dragline, truck and shovel, dozer and cast blasting methods. Coal is hauled by truck to one of five dump locations, where it is then crushed and conveyed to silos adjacent to rail loadouts for customer delivery. Coals of varying characteristics may be blended at a central blending facility along the loadout rail loop. Coal is sold unwashed, as a run-of-mine (ROM) product. NARM coal is well recognized for domestic thermal power generation. The key supporting infrastructure for NARM includes rail services provided by the BNSF Railway Company and Union Pacific Corporation, road access via interstate and state highways and roads, electrical power from a dedicated substation with 230 kilovolt and 69 kilovolt transmission lines, and water supply from a mine dewatering system and deep wells. The mining industry in the Powder River Basin anchors numerous communities from which the mine attracts qualified personnel. The property, plant, equipment and mine development assets of NARM had a net book value of approximately $362 million at December 31, 2025. The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan. Routine maintenance, overhauls and necessary capital replacements are generally included in the LOM plan to support future production. The table below presents NARM coal reserve estimates at December 31, 2025, along with comparative quantities at December 31, 2024. NARM did not hold any coal resources as of December 31, 2025. These coal reserve estimates were supported by the analyses of 4,914 total drill holes within the coal lease area. The quantity of the coal reserves is estimated on a saleable product basis and deemed 100% attributable to Peabody. In addition to quantity, the table presents selected key quality parameters on an as-shipped basis. NARM - SUMMARY OF COAL RESERVES (1) (Tons in millions) December 31, 2025 December 31, 2024 Coal Reserves (2)(3)(4) Tons %Ash %Sulfur Btu % Mine Yield (5) Tons Proven 1,188 4.5 0.2 8,910 100 % 1,212 Probable 46 4.6 0.2 8,970 100 % 88 Total 1,234 1,300 Year-over-year decrease (5) % The year-over-year decrease in the quantity of coal reserves was driven by production depletion. (1) Economic recoverability is based upon an estimated average sales price per ton of $14.65 for the five-year period ending December 31, 2030 and assumed escalation of 2.0% per annum during the subsequent period through the end of the LOM plan. (2) The cut-off grade and metallurgical recovery are not limiting factors for coal reserve estimates due to consistent coal thickness and established trends of coal quality in the leased area. The strip ratio increases gradually, but the existing pit length allows an average mineable strip ratio. Besides the results of drill hole analyses, the main limiting factors include surface infrastructure and lease boundaries. (3) The quality of coal reserves is estimated on an as-shipped basis. (4) The quantity of coal reserves is estimated on a saleable product basis, which takes into consideration 92% mining recovery. The results of the LOM planning process demonstrate the economic recoverability of the coal reserve estimates. (5) Mine yield is the ratio of estimated saleable product coal over ROM coal tons, with processing loss considered. Wilpinjong Mine The Wilpinjong Mine is a production-stage surface thermal coal mine situated approximately 25 miles northeast of Mudgee in New South Wales, Australia. Peabody acquired the mine as part of its acquisition of Excel Coal Pty Ltd (Excel) in 2006. Excel began the development of Wilpinjong Mine in 2006 and it commenced production under Peabody ownership in 2007. A third-party contractor managed mining operations until 2013, when the Company converted the mine to owner-operated. Peabody Energy Corporation 2025 Form 10-K 50 Table of Contents The Wilpinjong Mine extracts coal from the Moolarben and Ulan coal seams which have a combined thickness from 6 to 10 meters and a typical waste depth of less than 80 meters in the Illawarra Coal Measures on the northwest margin of the Sydney Basin. The Company has secured three exploration licenses of 2,958 hectares and four mining leases of 3,790 hectares through the New South Wales Minister of Planning. The typical royalty rate is 10.8% of the value of coal recovered. The mining leases require renewal upon expiration in 2027 for 2,863 hectares and in 2039-2044 for 927 hectares. Renewal applications for two exploration licenses were approved in 2023, with the terms extended to December 2027 and March 2028, and the third was granted in May 2022 for an initial term of 6 years. As of December 31, 2025, all required licenses and permits were in place for the operations of Wilpinjong within the existing mining leases. A process to gain the necessary approvals to mine the reserves estimated within EL9399 is underway and is expected to be completed as required by the current mine plan. Conventional open-cut mining methods are used at the Wilpinjong Coal Mine, with multiple pits at a low strip ratio allowing for relatively rapid pit advance. Overburden is removed by a combination of cast blasting, dozer and truck and excavator methods. Haul trucks transport coal to various hoppers and pads for blending and temporary storage, as necessary, and then to a coal handling and processing plant to be crushed and washed. Coal is conveyed to a rail loadout and transported by train to either domestic customers or to the Port of Newcastle and seaborne customers for thermal power generation. The key supporting infrastructure for Wilpinjong Mine includes road access via public roads, port service at two terminals at the Port of Newcastle, above and below rail services, electrical power from a 66 kilovolt transmission line and water supply from captured surface runoff and deep wells. The mine’s proximity to other large coal producers in the region provides access to a significant pool of experienced mining personnel. The property, plant, equipment and mine development assets of Wilpinjong Mine had a net book value of approximately $208 million at December 31, 2025. The mine’s operating equipment meets contemporary mining standards and is adequately maintained to execute the LOM plan. Routine maintenance, overhauls and necessary capital replacements are generally included in the LOM plan to support future production. The tables below present Wilpinjong Mine’s estimated coal reserves and resources at December 31, 2025, along with comparative quantities at December 31, 2024. These coal reserve and resource estimates were supported by the analyses of 1,460 total drill holes within the coal lease area. The quantity of the coal resources is estimated on an in situ basis as 100% attributable to Peabody. Coal resources are reported exclusive of coal reserves. The quantity of the coal reserves is estimated on a saleable product basis as 100% attributable to Peabody. Coal reserves and resources are reported on selected key quality parameters on an air-dried basis. WILPINJONG MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1) (Tons in millions) December 31, 2025 December 31, 2024 Coal Reserves (5)(6) Tons %Ash %Sulfur Kcal/kg % Mine Yield (7) Tons Proven 36 23.9 0.5 5,972 82 % 43 Probable 43 31.1 0.4 5,358 82 % 3 Total 79 46 Year-over-year increase 72 % December 31, 2025 December 31, 2024 Coal Resources (2)(3)(4) Tons %Ash %Sulfur Kcal/kg Tons Measured 53 26.7 0.4 5,638 137 Indicated 45 28.2 0.4 5,602 59 Measured and indicated 98 27.4 0.4 5,621 196 Inferred 7 28.2 0.4 5,629 9 Total 105 205 Peabody Energy Corporation 2025 Form 10-K 51 Table of Contents The year-over-year increase in the quantity of coal reserves was driven by the addition of reserves from Pit 9 and 10 within EL9399, partially offset by production depletion. The year-over-year decrease in the quantity of coal resources was mainly driven by conversion of coal resources to reserves within EL9399. (1) Economic recoverability is based upon product-specific estimated average sales prices per tonne of $63.65 for the five-year period ending December 31, 2030 and assumed escalation of 2.0% to 3.0% per annum during the subsequent period through the end of the LOM plan. (2) The quality of coal resources is on an in situ , air-dry basis. (3) The quantity of coal resource estimates is on an in situ basis, which does not take into consideration coal loss during mining and processing. (4) Besides the results from drill hole analyses, the raw ash is a key quality parameter that is relevant to both the cut-off grade and metallurgical recovery. The resource is limited by a maximum of 50% raw ash (air-dry basis). Other geological limiting factors are applied including weathering, depth of cover and known geological anomalies such as paleochannels and igneous intrusion. Non-geological limiting factors include lease boundary, surface features and infrastructure. (5) The quality of coal reserves is based on an air-dry basis. It is the laboratory results from the core samples with adjustments that reflect the reconciliation results from actual production. (6) The quantity of coal reserves is estimated on a saleable product basis, which takes into consideration mining and processing loss. The economic results from the LOM planning process demonstrate the economic viability of the coal reserve estimate. (7) Mine yield is the ratio of estimated saleable product coal over ROM coal tons with mainly processing loss considered. Centurion Mine The Centurion Mine is an underground longwall metallurgical coal mine located 160 kilometers west-southwest of Mackay, Queensland, Australia. The Centurion Mine lies on the Collinsville Shelf on the western margin of the Bowen Basin in Central Queensland. White Mining Ltd developed the operation (then known as the North Goonyella Mine), including a rail loop, coal handling preparation plant and nearby accommodation village, following the grant of ML6949 in 1991. Peabody then acquired North Goonyella as part of an acquisition of RAG Australia Coal Pty Ltd’s coal assets in April 2004 and operated it until September 2018, when a fire in the mine halted operations. After the mine was idled in September 2018, plans to re-initiate production were developed with regulatory approval. During the third quarter of 2022, Peabody initiated the development of the mine. In October 2023, Peabody entered into an agreement with Stanmore to purchase the southern area of Wards Well (ML1790 and ML70495) with the intent to expand underground operations to the north of the North Goonyella Mine footprint and eventually extend into Dabin (MDL3010). In December 2023, the mine was renamed the Centurion Mine. Development operations recommenced at the mine in June 2024, and longwall operations commenced in February 2026. Centurion Mine extracts coal from the Goonyella Middle seam with future plans to extend into the Goonyella Lower B2 seam with mining depths ranging from 210 meters to 540 meters. The Company has secured mineral rights through state mineral leases and has an approved production rate for the operation of 10.2 Mtpa ROM coal that after processing, equates to approximately 7.6 Mtpa product coal. The Centurion Mine operates on a Mining Lease issued by the state government of Queensland. Tenement holders are bound by the Mineral Resources Act 1989 and the Mineral Resources Regulation 2013 which define the laws pertaining to coal exploration and mining in Queensland. Under the system administered by the Department of Natural Resources, Mines and Energy, tenements are held as either EPC (Exploration Permit Coal), MDL (Mineral Development Licence) or ML (Mining Lease). Production from the Centurion Mine is subject to the Queensland government royalty charged on total revenue. In addition to this standard government royalty, there is also a special private royalty agreement established in relation to the sale of the property by a prior owner. The Centurion Mining Lease, ML6949, encompasses a total of 3,293 hectares. The ML allows mining and sale of coal by both underground and open-cut methods. Overlapping this ML, Centurion also holds a petroleum lease, PL504, which enables the company to commercialize any coal seam gas (methane) that may be extracted within the lease area. Centurion North is comprised of ML1790 and ML70495 (part of the Ward’s Well project which has been subdivided between Peabody and Stanmore) which encompasses surface areas of 2,723 hectares and 748 hectares, respectively. The Centurion North mine also comprises a small portion of MDL3010 (Dabin) which is owned by the West Burton Joint Venture (85% Peabody) and has a land area of 10,827 hectares. Coal is produced primarily using longwall systems. The mine will also use continuous miner units for longwall development and limited production. Mined coal is processed through the on-site wash plant and conveyed to rail loadout facilities. Product coal is loaded to trains via an existing 1,000 tonne train loadout bin. The loaded trains then travel some 217 kilometers to the Port of Hay Point where they are bottom dumped to conveyor and onto stockpiles at Dalrymple Bay Coal Terminal. Shipping of coal to customers takes place on ocean-going vessels, often shared with other coal suppliers. Centurion coking coal is a premium hard coking coal with a mature brand name in the seaborne metallurgical marketplace and is well known in both the Atlantic and Pacific seaborne markets. Peabody Energy Corporation 2025 Form 10-K 52 Table of Contents The key supporting infrastructure for Centurion Mine includes road access via highways and roads, access to both the Goonyella and Newland Rail Systems, coal export terminals at the Port of Hay Point and the Port of Abbot Point, connection to a high voltage electricity grid that provides electricity to the existing facilities and water supplied from the 15 gigaliter capacity Burton Gorge Dam. Centurion also has a nearby accommodation village with housing and service amenities for a capacity of 440 workers located 19 kilometers east of the mine. The mine’s workforce is drawn primarily from the townships of Moranbah, Nebo and Mackay. The property, plant, equipment and mine development assets of Centurion Mine had a net book value of approximately $1 billion at December 31, 2025. The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan. Routine maintenance, overhauls and necessary capital replacements are generally included in the LOM plan to support future production. During the development process, the Company upgraded the mine’s coal transfer and handling facilities, purchased new mining equipment and made other capital investments to improve its prospective cost structure. The tables below present Centurion Mine’s estimated coal reserves and resources at December 31, 2025, along with comparative quantities at December 31, 2024. These coal reserve and resource estimates were supported by the analyses of 2,065 total drill holes within the coal lease area. The quantity of the coal resources is estimated on an in situ basis as 100% attributable to Peabody. Coal resources are reported exclusive of coal reserves. The quantity of the coal reserves are estimated on a saleable product basis as 100% attributable to Peabody. Coal reserves and resources are reported on selected key quality parameters on an air-dry basis. CENTURION MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1) (Tons in millions) December 31, 2025 December 31, 2024 Coal Reserves (2)(5)(6) Tons %Ash %Sulfur %VM % Mine Yield (7) Tons Proven 84 8.1 0.5 22.4 81 % 84 Probable 108 7.9 0.5 20.5 82 % 107 Total 192 191 Year-over-year increase 1 % December 31, 2025 December 31, 2024 Coal Resources (2)(3)(4)(5) Tons %Ash %Sulfur VM% Tons Measured 96 20.7 0.5 21.9 96 Indicated 485 17.9 0.5 19.6 485 Measured and indicated 581 18.4 0.5 20.0 581 Inferred 286 21.1 0.5 18.9 286 Total 867 867 (1) Economic recoverability is based upon an estimated average sales price per tonne of $210 for the LOM plan. (2) The quality of coal reserves and resources are estimated on an air-dry basis. (3) The quantity of coal resource estimates are on an in situ basis, which does not take into consideration coal loss during mining and processing. (4) The coal resource boundary is established by considering various factors, including results from drill hole analyses, mining lease, coal control, geological features, faults and other surface features. (5) The cut-off grade and metallurgical recovery are not limiting factors for the reserve and resource estimates due to relatively consistent coal quality and float recovery from the lab results within the assessed area. The lease boundary, surface infrastructure and the base of weathering are the main limiting factors. (6) The quantity of coal reserves is estimated on a saleable product basis, which takes into consideration unmined coal (pillars, etc.), coal loss during mining and processing and additional washing recovery. The results from the LOM planning process demonstrate the economic recoverability of the coal reserve estimate. (7) Mine yield is the ratio of estimated saleable product coal over ROM coal tons with mainly processing loss considered. Peabody Energy Corporation 2025 Form 10-K 53 Table of Contents Internal Controls The preparation of coal reserve and resource estimates is completed in accordance with the Company’s prescribed internal control procedures, which are designed specifically to ensure the reliability of such estimates presented herein. Annually, QPs and other employees review the estimates of mineral reserves and mineral resources, the supporting documentation and compliance with applicable internal controls. Such controls employ management systems, standardized procedures, workflow processes, multi-functional supervision and management approval, internal and external reviews, reconciliations and data security covering record keeping, chain of custody and data storage. The internal controls for coal reserve and resource estimates also cover exploration activities, sample preparation and analysis, data verification, processing, metallurgical testing, recovery estimation, mine design and sequencing, and coal reserve and resource evaluations, with environmental, social and regulatory considerations. The quality assurance and control protocols over the assaying of drill hole samples are performed by reputable commercial laboratories following certification and accreditation programs established by the American Society for Testing and Materials or Australian National Association of Testing Authorities. The coal reserve and resource estimates have inherent risks due to data accuracy, uncertainty from geological interpretation, mine plan assumptions, uncontrolled rights for mineral and surface properties, environmental challenges, uncertainty for future market supply and demand, and changes in laws and regulations. Management and QPs are aware of those risks that might directly impact the assessment of coal reserves and resources. The current coal reserves and resources are estimated based on the best information available and are subject to re-assessment when conditions change. Refer to Item 1A. “Risk Factors” for discussion of risks associated with the estimates of the Company’s coal reserves and resources.