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What changed in PEABODY ENERGY CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of PEABODY ENERGY CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+683 added−678 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-20)

Top changes in PEABODY ENERGY CORP's 2025 10-K

683 paragraphs added · 678 removed · 536 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

159 edited+76 added−50 removed143 unchanged
Biggest changeIn addition, if the Minister for Environment and Water grants an approval under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) to a new or expanded facility covered by the scheme, the Minister will be required to give an estimate of the facility's Scope 1 emissions to the Minister for Climate Change, the Climate Change Secretary and the Climate Change Authority for assessment against scheme targets.
Biggest changeThe Safeguard Mechanism also includes additional emission reduction measures including a cap on overall net emissions from facilities covered by the scheme through 2030, a cap of net zero tonnes CO 2 for any financial year beginning after June 30, 2049, and a requirement that where the Minister for Environment and Water grants an approval under the EPBC Act to a new or expanded facility covered by the scheme, they are required to give an estimate of the facility's Scope 1 emissions to the Minister for Climate Change, the Climate Change Secretary and the Climate Change Authority for assessment against scheme targets.
Thermal Bear Run Indiana S DL, D, T/S T Tr, R, EV Yes 5.0 5.5 6.7 El Segundo/Lee Ranch New Mexico S DL, D, T/S T R No 2.4 3.4 3.7 Gateway North Illinois U CM T Tr, R, R/B, T/B, EV Yes 2.1 2.5 2.4 Wild Boar Indiana S HW, DL, D, T/S T Tr, R, R/B, T/B Yes 1.8 1.9 2.3 Francisco Underground Indiana U CM T R Yes 1.6 2.0 1.8 Twentymile Colorado U LW T R, Tr, EV Yes 1.0 1.3 1.5 Legend: S Surface Mine B Barge U Underground Mine Tr Truck HW Highwall Miner R/B Rail to Barge DL Dragline T/B Truck to Barge D Dozer/Casting T/R Truck to Rail T/S Truck and Shovel EV Export Vessel LW Longwall T Thermal/Steam CM Continuous Miner C Coking R Rail P Pulverized Coal Injection (1) Peabody owns a 50% undivided interest in an unincorporated joint venture that owns the Wambo Open-Cut Mine.
Thermal Bear Run Indiana S DL, D, T/S T Tr, R, EV Yes 4.7 5.0 5.5 Wild Boar Indiana S HW, DL, D, T/S T Tr, R, R/B, T/B Yes 2.1 1.8 1.9 Gateway North Illinois U CM T Tr, R, R/B, T/B, EV Yes 2.0 2.1 2.5 El Segundo/Lee Ranch New Mexico S DL, D, T/S T R No 1.8 2.4 3.4 Twentymile Colorado U LW T R, Tr, EV Yes 1.8 1.0 1.3 Francisco Underground Indiana U CM T R Yes 1.3 1.6 2.0 Legend: S Surface Mine B Barge U Underground Mine Tr Truck HW Highwall Miner R/B Rail to Barge DL Dragline T/B Truck to Barge D Dozer/Casting T/R Truck to Rail T/S Truck and Shovel EV Export Vessel LW Longwall T Thermal/Steam CM Continuous Miner C Coking R Rail P Pulverized Coal Injection (1) Peabody owns a 50% undivided interest in an unincorporated joint venture that owns the Wambo Open-Cut Mine.
Pursuant to the Abandoned Mine Land Reclamation Amendments of 2021, which Congress enacted on November 15, 2021 as part of the Infrastructure Investment and Jobs Act, from October 1, 2021 through September 30, 2034, the fee is $0.224 and $0.096 per ton of surface-mined and underground-mine coal, respectively.
Pursuant to the Abandoned Mine Land Reclamation Amendments of 2021, which Congress enacted on November 15, 2021 as part of the Infrastructure Investment and Jobs Act, from October 1, 2021 through September 30, 2034, the fee is $0.224 and $0.096 per ton of surface-mined and underground-mined coal, respectively.
The Black Lung Benefits Act requires each coal mine operator to secure the payment of its potential benefits liability by either qualifying as a self-insurer or by purchasing and maintaining a commercial insurance contract. The Department of Labor’s (DOL) Office of Workers’ Compensation Programs (OWCP) is responsible for authorizing coal mine operators to self-insure and for setting the security amounts.
The Black Lung Benefits Act requires each coal mine operator to secure the payment of its potential benefits liability by either qualifying as a self-insurer or by purchasing and maintaining a commercial insurance contract. The Department of Labor’s Office of Workers’ Compensation Programs (OWCP) is responsible for authorizing coal mine operators to self-insure and for setting the security amounts.
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, among others. Global thermal coal markets were turbulent during 2022 and 2023, due in part to the Russian-Ukrainian conflict and the subsequent ban of Russian coal by European countries.
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, among others. Global thermal coal markets were turbulent during 2023, due in part to the Russian-Ukrainian conflict and the subsequent ban of Russian coal by European countries.
New South Wales Government In New South Wales, laws and regulations related to mining include, but are not limited to, the Mining Act 1992, Work Health and Safety (Mines and Petroleum Sites) Act 2013, Coal Mine Subsidence Compensation Act 2017, Environmental Planning and Assessment Act 1979 (EPA Act), Environmental Planning and Assessment Regulation 2021, Protection of the Environment Operations Act 1997, Contaminated Land Management Act 1997, Explosives Act 2003, Water Management Act 2000, Water Act 1912, Biodiversity Conservation Act 2016 (BC Act), Heritage Act 1977, Aboriginal Land Rights Act 1983, Crown Land Management Act 2016, Dangerous Goods (Road and Rail Transport) Act 2008, Fisheries Management Act 1994, Native Title (New South Wales) Act 1994, Biosecurity Act 2015, Roads Act 1993 and National Parks and Wildlife Act 1974.
New South Wales Government In New South Wales, laws and regulations related to mining include, but are not limited to, the Mining Act 1992, Work Health and Safety (Mines and Petroleum Sites) Act 2013, Coal Mine Subsidence Compensation Act 2017, Environmental Planning and Assessment Act 1979 (EPA Act), Protection of the Environment Operations Act 1997, Contaminated Land Management Act 1997, Explosives Act 2003, Water Management Act 2000, Water Act 1912, Biodiversity Conservation Act 2016 (BC Act), Heritage Act 1977, Aboriginal Land Rights Act 1983, Crown Land Management Act 2016, Dangerous Goods (Road and Rail Transport) Act 2008, Fisheries Management Act 1994, Native Title (New South Wales) Act 1994, Biosecurity Act 2015, Roads Act 1993 and National Parks and Wildlife Act 1974.
NSW Environmental Laws. Under the NSW Environmental Planning and Assessment (EPA) Act 1979 applications for new planning consents or modifications to existing consents are evaluated in consideration of the likely impacts of the development, the suitability of the site, the provisions of environmental planning instruments and the public interest, amongst other matters.
Under the NSW Environmental Planning and Assessment (EPA) Act 1979 applications for new planning consents or modifications to existing consents are evaluated in consideration of the likely impacts of the development, the suitability of the site, the provisions of environmental planning instruments and the public interest, amongst other matters.
Queensland Government In Queensland, laws and regulations related to mining include, but are not limited to, the Mineral Resources Act 1989, Environmental Protection Act 1994 (EP Act), Environmental Protection Regulation 2008, Planning Act 2016, Coal Mining Safety and Health Act 1999, Minerals and Energy Resources (Common Provisions) Act 2014, Explosives Act 1999, Aboriginal Cultural Heritage Act 2003, Water Act 2000, State Development and Public Works Organisation Act 1971, Queensland Heritage Act 1992, Transport Infrastructure Act 1994, Nature Conservation Act 1992, Vegetation Management Act 1999, Biosecurity Act 2014, Land Act 1994, Regional Planning Interests Act 2014, Fisheries Act 1994 and Forestry Act 1959.
Queensland Government In Queensland, laws and regulations related to mining include, but are not limited to, the Mineral Resources Act 1989, Environmental Protection Act 1994 (EP Act), Planning Act 2016, Coal Mining Safety and Health Act 1999, Minerals and Energy Resources (Common Provisions) Act 2014, Explosives Act 1999, Aboriginal Cultural Heritage Act 2003, Water Act 2000, State Development and Public Works Organisation Act 1971, Queensland Heritage Act 1992, Transport Infrastructure Act 1994, Nature Conservation Act 1992, Vegetation Management Act 1999, Biosecurity Act 2014, Land Act 1994, Regional Planning Interests Act 2014, Fisheries Act 1994 and Forestry Act 1959.
The transition to a net-zero emissions economy is driven by many factors, including, but not limited to, legislative and regulatory rulemaking processes, campaigns undertaken by non-governmental organizations to minimize or eliminate the use of coal as a source of electricity generation, and the policies of financial institutions and other private companies as related to safety, sustainability, human capital and governance practices.
The transition to a net-zero emissions economy is driven by many factors, including, but not limited to, legislative and regulatory rulemaking processes, campaigns undertaken by non-governmental organizations to minimize or eliminate the use of coal in steelmaking and as a source of electricity generation, and the policies of financial institutions and other private companies as related to safety, sustainability, human capital and governance practices.
The Company expects to continue selling a significant portion of coal production from its U.S. thermal operating segments under existing long-term supply agreements. Certain customers utilize long-term sales agreements in recognition of the importance of reliability, service and predictable coal prices to their operations. The terms of coal supply agreements result from competitive bidding and extensive negotiations with customers.
The Company expects to continue selling a significant portion of coal production from its U.S. thermal reportable segments under existing long-term supply agreements. Certain customers utilize long-term sales agreements in recognition of the importance of reliability, service and predictable coal prices to their operations. The terms of coal supply agreements result from competitive bidding and extensive negotiations with customers.
Peabody endeavors to engage with its organized workforce and foster strong relationships with those organizations built on trust and communication. As of December 31, 2024, approximately 3,500 of Peabody’s employees are located in the U.S., with the remainder primarily located in Australia.
Peabody endeavors to engage with its organized workforce and foster strong relationships with those organizations built on trust and communication. As of December 31, 2025, approximately 3,500 of Peabody’s employees are located in the U.S., with the remainder primarily located in Australia.
Production Segment/Mining Complex Location Mine Type Mining Method Coal Type Primary Transport Method Processing Plants Year Ended December 31, 2024 2023 2022 Seaborne Thermal (Tons in millions) Wilpinjong New South Wales S D, T/S T R, EV Yes 12.6 12.0 12.1 Wambo Open-Cut (1) New South Wales S T/S T, C R, EV Yes 3.3 2.6 2.0 Wambo Underground (2) New South Wales U LW T, C R, EV Yes 1.4 1.2 1.1 Seaborne Metallurgical Shoal Creek (3) Alabama U LW C B, EV Yes 2.1 0.6 0.8 Metropolitan New South Wales U LW C, P, T R, EV Yes 1.8 2.2 1.8 Coppabella (4) Queensland S DL, D, T/S P R, EV Yes 1.7 2.2 2.4 Moorvale (4) Queensland S D, T/S C, P, T R, EV Yes 1.5 2.2 1.5 Centurion (5) Queensland U LW C R, EV Yes 0.2 — — Middlemount (6) Queensland S D, T/S C, P R, EV Yes — — — Powder River Basin North Antelope Rochelle Wyoming S DL, D, T/S T R No 59.7 62.0 60.4 Caballo Wyoming S D, T/S T R No 10.8 15.3 12.1 Rawhide Wyoming S D, T/S T R No 9.1 9.8 10.3 Other U.S.
Production Segment/Mining Complex Location Mine Type Mining Method Coal Type Primary Transport Method Processing Plants Year Ended December 31, 2025 2024 2023 Seaborne Thermal (Tons in millions) Wilpinjong New South Wales S D, T/S T R, EV Yes 10.5 12.6 12.0 Wambo Open-Cut (1) New South Wales S T/S T, C R, EV Yes 3.5 3.3 2.6 Wambo Underground (2) New South Wales U LW T, C R, EV Yes 0.8 1.4 1.2 Seaborne Metallurgical Coppabella (3) Queensland S DL, D, T/S P R, EV Yes 2.0 1.7 2.2 Shoal Creek (4) Alabama U LW C B, EV Yes 1.8 2.1 0.6 Metropolitan New South Wales U LW C, P, T R, EV Yes 1.7 1.8 2.2 Moorvale (3) Queensland S D, T/S C, P, T R, EV Yes 1.2 1.5 2.2 Centurion (5) Queensland U LW C R, EV Yes 0.6 0.2 — Middlemount (6) Queensland S D, T/S C, P R, EV Yes — — — Powder River Basin North Antelope Rochelle Wyoming S DL, D, T/S T R No 65.0 59.7 62.0 Caballo Wyoming S D, T/S T R No 11.7 10.8 15.3 Rawhide Wyoming S D, T/S T R No 7.8 9.1 9.8 Other U.S.
Underground coal mine operators must also develop and implement safety management systems and procedures to minimize worker exposures to carbon dioxide, ensuring no worker is exposed to an 8-hour time-weighted average atmospheric concentration of carbon dioxide that is greater than 30,000 parts per million for short-term exposure or 12.500 parts per million otherwise. Metropolitan Mine Stormwater Discharge.
Underground coal mine operators must also develop and implement safety management systems and procedures to minimize worker exposures to carbon dioxide, ensuring no worker is exposed to an 8-hour time-weighted average atmospheric concentration of carbon dioxide that is greater than 30,000 parts per million for short-term exposure or 12,500 parts per million otherwise.
The Company recognized expense related to the fees of $20.4 million, $22.2 million and $21.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. Clean Air Act (CAA) . The CAA, enacted in 1970, and comparable state and tribal laws that regulate air emissions affect the Company’s U.S. coal mining operations both directly and indirectly.
The Company recognized expense related to the fees of $21.4 million, $20.4 million and $22.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. Clean Air Act (CAA) . The CAA, enacted in 1970, and comparable state and tribal laws that regulate air emissions affect the Company’s U.S. coal mining operations both directly and indirectly.
Major international direct coal supply competitors (listed alphabetically) include Adaro Energy; BHP; Bumi Resources; China Shenhua Energy; Coal India Limited; Drummond Company; Glencore; SUEK; Whitehaven Coal Limited; and Yancoal Australia Ltd, among others. Metallurgical Coal.
Major international direct coal supply competitors (listed alphabetically) include Adaro Energy; BHP; Bumi Resources; China Shenhua Energy; Coal India Limited; Drummond Company; Glencore; New Hope; SUEK; Whitehaven Coal Limited; and Yancoal Australia Ltd, among others. Metallurgical Coal.
In addition to its alternative fuel source competitors, Peabody’s principal U.S. direct coal supply competitors (listed alphabetically) are other large coal producers, including Alliance Resource Partners; American Consolidated Natural Resources, Inc.; Core Natural Resources, Inc.; Eagle Specialty Materials LLC; Foresight Energy; Hallador Energy; Kiewit; and Navajo Transitional Energy Company LLC, among others.
In addition to its alternative fuel source competitors, Peabody’s principal U.S. direct coal supply competitors (listed alphabetically) are other large coal producers, including Alliance Resource Partners; American Consolidated Natural Resources, Inc.; Core Natural Resources, Inc.; Eagle Summit; Foresight Energy; Hallador Energy; Kiewit; and Navajo Transitional Energy Company LLC, among others.
About 94% of its team members work for mine operations in the U.S. and Australia, while the remaining are based out of its global headquarters in St. Louis or its business offices in Brisbane and Beijing. Peabody strives to create a strong, united workforce with a commitment to safety as a way of life.
About 94% of its team members work for mine operations in the U.S. and Australia, while the remaining are based out of its global headquarters in St. Louis or its business office in Brisbane. Peabody strives to create a strong, united workforce with a commitment to safety as a way of life.
Mercury and Air Toxic Standards (MATS) . In 2012, the EPA published the final MATS rule, which revised the NSPS for NO x , sulfur dioxide and PM for new and modified coal-fueled electricity generating plants, and imposed maximum achievable control technology (MACT) emission limits on hazardous air pollutants (HAPs) from new and existing coal-fueled and oil-fueled electric generating plants.
In 2012, the EPA published the final MATS rule, which revised the NSPS for NO x , sulfur dioxide and PM for new and modified coal-fueled electricity generating plants, and imposed maximum achievable control technology (MACT) emission limits on hazardous air pollutants (HAPs) from new and existing coal-fueled and oil-fueled electric generating plants.
But in June 2021, the agencies announced their plan to revise, rescind or reinstate the rules that were finalized (or withdrawn) during the first Trump Administration that conflict with the Biden Administration’s objectives. The agencies issued proposed rules on June 22, 2023, and they published three final revised rules on April 5, 2024. Use of Explosives .
But in June 2021, the agencies announced their plan to revise, rescind or reinstate the rules that were finalized (or withdrawn) during the first Trump Administration that conflict with the Biden Administration’s objectives. The agencies issued proposed rules on June 22, 2023, and they published three final revised rules on April 5, 2024.
With respect to the potential or actual physical impacts of climate change, the Company has identified the following specific risks: • Disruption to water supplies vital to mining operations; • Disruption to transportation and other supply chain activities; • Damage to the Company’s, customers’ or suppliers’ plant and equipment, or third-party infrastructure, resulting from weather events or changes in environmental trends and conditions; and • Electrical grid failures and power outages.
With respect to the potential or actual physical impacts of climate change, the Company has identified the following specific risks: • Disruptions to production resulting from increased, adverse weather events; • Disruption to water supplies vital to mining operations; • Disruption to transportation and other supply chain activities; • Damage to the Company’s, customers’ or suppliers’ plant and equipment, or third-party infrastructure, resulting from weather events or changes in environmental trends and conditions; and • Electrical grid failures and power outages.
A guideline has been issued that provides more certainty to the industry on the circumstances in which an EPO may be issued. Queensland Environmental and Rehabilitation (Reclamation) Laws.
A guideline has been issued that provides more certainty to the industry on the circumstances in which an environmental protection order (EPO) may be issued. Queensland Environmental and Rehabilitation (Reclamation) Laws.
The offense will apply to a person conducting a business or undertaking (PCBU) or an officer of a PCBU who engages in conduct that constitutes a failure to comply with the person’s health and safety duty and causes the death of a worker or another individual to whom the duty is owed; and the person engages in conduct with gross negligence.
The offense applies to a person conducting a business or undertaking (PCBU) or an officer of a PCBU who engages in conduct that constitutes a failure to comply with the person’s health and safety duty and causes the death of a worker or another individual to whom the duty is owed; and the person engages in conduct with gross negligence.
Thermal Coal. Demand for Peabody’s thermal coal products is impacted by economic conditions; demand for electricity, which is impacted by energy efficient products; and the cost of electricity generation from coal and alternative forms of generation. Regulatory policies and environmental, social and governance considerations can also have an impact on generation choices and coal consumption.
Thermal Coal. Demand for Peabody’s thermal coal products is impacted by economic conditions demand for electricity; and the cost of electricity generation from coal and alternative forms of generation. Regulatory policies and environmental, social and governance considerations can also have an impact on generation choices and coal consumption.
As a result, U.S. coal consumption is expected to increase in 2025 which has led to deferrals of planned coal plant retirements. Internationally, thermal coal also competes with alternative forms of electricity generation. The competitiveness and availability of natural gas, liquefied natural gas, oil, nuclear, hydro, wind, solar and biomass varies by country and region.
As a result, U.S. coal consumption is expected to increase in 2026 which has led to deferrals of planned coal plant retirements. Internationally, thermal coal also competes with alternative forms of electricity generation. The competitiveness and availability of natural gas, liquefied natural gas, oil, nuclear, hydro, wind, solar and biomass vary by country and region.
Industry commercial practice, and Peabody’s typical practice, is to negotiate pricing for seaborne thermal coal contracts on an annual, spot or index basis and seaborne metallurgical coal contracts on a quarterly, spot or index basis. For its seaborne operations, the portion of sales volume under contracts with a duration of less than one year represented 36% in 2024. U.S.
Industry commercial practice, and Peabody’s typical practice, is to negotiate pricing for seaborne thermal coal contracts on an annual, spot or index basis and seaborne metallurgical coal contracts on a quarterly, spot or index basis. For its seaborne operations, the portion of sales volume under contracts with a duration of less than one year represented 50% in 2025. U.S.
Specifically, the final rules will require disclosure of, among other things, climate-related risks that have had or are reasonably likely to have a material impact on a public company’s business strategy, results of operations or financial condition; certain greenhouse gas (GHG) emissions associated with a public company along with, in many cases, an attestation report by a GHG emissions attestation provider; and certain climate-related financial metrics to be included in a company’s audited financial statements.
Specifically, the final rules required disclosure of, among other things, climate-related risks that have had or are reasonably likely to have a material impact on a public company’s business strategy, results of operations or financial condition; certain GHG emissions associated with a public company along with, in many cases, an attestation report by a GHG emissions attestation provider; and certain climate-related financial metrics to be included in a company’s audited financial statements.
Resource Conservation and Recovery Act (RCRA) . RCRA, which was enacted in 1976, affects U.S. coal mining operations by establishing “cradle to grave” requirements for the treatment, storage and disposal of hazardous wastes. Typically, the only hazardous wastes generated at a mine site are those from products used in vehicles and for machinery maintenance.
RCRA, which was enacted in 1976, affects U.S. coal mining operations by establishing “cradle to grave” requirements for the treatment, storage and disposal of hazardous wastes. Typically, the only hazardous wastes generated at a mine site are those from products used in vehicles and for machinery maintenance.
In November 2024, the Bureau of Land Management issued amended resource management plans for lands in Wyoming and Montana, which state that no federal coal will be available for future leasing in the Powder River Basin. Montana and Wyoming challenged those decisions in a federal district court on December 11, 2024. Clean Water Act (CWA) .
In November 2024, the Bureau of Land Management issued amended resource management plans for lands in Wyoming and Montana, which state that no federal coal will be available for future leasing in the Powder River Basin. Montana and Wyoming challenged those decisions in a federal district court on December 11, 2024.
The EPA subsequently filed a motion to approve the consent judgment in the U.S. District Court for the District of Columbia which was granted. On December 31, 2024, EPA proposed to revise the due date for plans (for the third regional haze implementation period) from July 31, 2028 to July 31, 2031. New Source Review (NSR).
The EPA subsequently filed a motion to approve the consent judgment in the U.S. District Court for the District of Columbia which was granted. On December 31, 2024, the EPA proposed to revise the due date for plans (for the third regional haze implementation period) from July 31, 2028 to July 31, 2031.
EPA Regulation of Greenhouse Gas Emissions from New and Existing Fossil Fuel-Fired EGUs . On May 9, 2024, the EPA published a final rule for new, modified and reconstructed fossil fuel-fired EGUs in the Federal Register.
EPA Regulation of GHG Emissions from New and Existing Fossil Fuel-Fired EGUs . On May 9, 2024, the EPA published a final rule for new, modified and reconstructed fossil fuel-fired EGUs in the Federal Register.
The NSW Environment Protection Authority (EPA) released its final NSW Guide for Large Emitters in January 2025, which applies to new applications or significant modifications for large emitting premises, such as mining operations.
The NSW EPA released its final NSW Guide for Large Emitters in January 2025, which applies to new applications or significant modifications for large emitting premises, such as mining operations.
The EPA has taken action on a number of different rules and guidance affecting the interpretation and application of NSR. These rules and guidance may affect the construction, reconstruction and modification of sources and the level of pollution control requirements that will be necessary on a case-by-case basis.
The EPA has taken action on a number of different rules and guidance affecting the interpretation and application of NSR. These rules and guidance may affect the construction, reconstruction and modification of sources and the level of pollution control requirements that will be necessary on a case-by-case basis. Federal Coal Leasing Moratorium .
“Properties,” which is incorporated by reference herein, for additional information regarding coal reserves and resources, and product characteristics associated with each mine. Peabody Energy Corporation 2024 Form 10-K 5 Tab le of Contents Coal Supply Agreements Customers. Peabody’s coal supply agreements are primarily with electricity generators, industrial facilities and steel manufacturers.
“Properties,” which is incorporated by reference herein, for additional information regarding coal reserves and resources, and product characteristics associated with each mine. Peabody Energy Corporation 2025 Form 10-K 5 Table of Contents Coal Supply Agreements Customers. Peabody’s coal supply agreements are primarily with electricity generators, industrial facilities and steel manufacturers.
Peabody Energy Corporation 2024 Form 10-K 7 Tab le of Contents In the U.S., natural gas is highly competitive (along with other alternative fuel sources) with thermal coal for electricity generation. The competitiveness of natural gas has been strengthened by continued growth in domestic natural gas production and new natural gas combined cycle generation capacity.
Peabody Energy Corporation 2025 Form 10-K 7 Table of Contents In the U.S., natural gas is highly competitive (along with other alternative fuel sources) with thermal coal for electricity generation. The competitiveness of natural gas has been strengthened by continued growth in domestic natural gas production and new natural gas combined cycle generation capacity.
The changed requirements for security posted to self-insure black lung liabilities could result in the Company being required to post additional security for its obligations. Environmental Laws and Regulations Peabody is subject to various federal, state, local and tribal environmental laws and regulations.
The changed requirements for security posted to self-insure black lung liabilities could result in the Company being required to post additional security of approximately $40 million for its obligations. Environmental Laws and Regulations Peabody is subject to various federal, state, local and tribal environmental laws and regulations.
These pressures, coupled with regulatory burdens, contributed to a significant number of coal plant retirements. During 2024, approximately 6 gigawatts of U.S. coal power capacity was retired, and since 2010, U.S. coal power capacity has fallen by approximately forty-two percent. Conversely, emerging technologies, including data centers, artificial intelligence and cryptocurrency, are expected to drive U.S. electricity demand in coming years.
These pressures, coupled with regulatory burdens, contributed to a significant number of coal plant retirements. During 2025, approximately 3 gigawatts of U.S. coal power capacity was retired, and since 2010, U.S. coal power capacity has fallen by approximately forty-six percent. Conversely, emerging technologies, including data centers, artificial intelligence and cryptocurrency, are expected to drive U.S. electricity demand in coming years.
Congress, however, has approved legislation, the Inflation Reduction Act of 2022, that will provide substantial tax incentives, grants and loan guarantees for energy infrastructure, solar panels, wind turbines, nuclear and geothermal energy, hydrogen projects and carbon capture and storage.
Congress, however, approved legislation, the Inflation Reduction Act of 2022, that provided substantial tax incentives, grants and loan guarantees for energy infrastructure, solar panels, wind turbines, nuclear and geothermal energy, hydrogen projects and carbon capture and storage.
On May 7, 2024, the EPA finalized a MATS rule which significantly tightens the filterable particulate matter (fPM) emissions limit for existing coal-fired EGU’s, lowering the standard from 0.030 lb/MMBtu to 0.010 lb/MMBtu for all coal-fired power plants. This rule was challenged in the D.C. Circuit in North Dakota v. EPA (D.C. Cir., No. 24-1119). Regional Haze.
On May 7, 2024, the EPA finalized a MATS rule which significantly tightens the filterable PM emissions limit for existing coal-fired EGU’s, lowering the standard from 0.030 lb/MMBtu to 0.010 lb/MMBtu for all coal-fired power plants. This rule was challenged in the D.C. Circuit in North Dakota v. EPA (D.C. Cir., No. 24-1119).
(6) Peabody owns a 50% equity interest in Middlemount, which owns the Middlemount Mine. Because Middlemount is accounted for as an unconsolidated equity affiliate, the table above excludes tons produced from that mine, which totaled 1.3 million, 1.2 million and 1.4 million tons, respectively (on a 50% basis). Refer to the Reserves and Resources tables within Item 2.
Because Middlemount is accounted for as an unconsolidated equity affiliate, the table above excludes tons produced from that mine, which totaled 1.4 million, 1.3 million and 1.2 million tons, respectively (on a 50% basis). Refer to the Reserves and Resources tables within Item 2.
Revenue from Peabody’s Seaborne Thermal and Seaborne Metallurgical segments represented approximately 55%, 56% and 59% of the Company’s total revenue from coal supply agreements for the years ended December 31, 2024, 2023 and 2022, respectively, during which periods the coal mining activities of those segments contributed approximately 20%, 18% and 18% of the Company’s sales volumes from mining operations, respectively.
Revenue from Peabody’s Seaborne Thermal and Seaborne Metallurgical reportable segments represented approximately 51%, 55% and 56% of the Company’s total revenue from coal supply agreements for the years ended December 31, 2025, 2024 and 2023, respectively, during which periods the coal mining activities of those segments contributed approximately 20%, 20% and 18% of the Company’s sales volumes from mining operations, respectively.
This financial assurance is in the form of cash, surety bonds or bank guarantees which are supported by a combination of cash collateral, deeds of indemnity and guarantee and letters of credit issued under the Company’s collateralized letter of credit program and accounts receivable securitization program. Peabody’s reclamation bonding requirements in Australia were $303.7 million as of December 31, 2024.
This financial assurance is in the form of cash, surety bonds or bank guarantees which are supported by a combination of cash collateral, deeds of indemnity and guarantee and letters of credit issued under the Company’s collateralized letter of credit program and accounts receivable securitization program. Peabody’s reclamation bonding requirements in Australia were $346.1 million as of December 31, 2025.
The Company continually monitors the laws and regulations for changes resulting from updated legislation, judicial decisions and changes in governmental administrations. Peabody Energy Corporation 2024 Form 10-K 10 Tab le of Contents Mine Safety and Health Peabody is subject to health and safety standards both at the federal and state level.
The Company continually monitors the laws and regulations for changes resulting from updated legislation, judicial decisions and changes in governmental administrations. Peabody Energy Corporation 2025 Form 10-K 10 Table of Contents Mine Safety and Health Peabody is subject to health and safety standards both at the federal and state level.
Thermal segments, in aggregate, represented approximately 45%, 44% and 41% of the Company’s revenue from coal supply agreements for the years ended December 31, 2024, 2023 and 2022, respectively, during which periods the coal mining activities of those segments contributed approximately 80%, 82% and 82% of the Company’s sales volumes from mining operations, respectively.
Thermal reportable segments, in aggregate, represented approximately 49%, 45% and 44% of the Company’s revenue from coal supply agreements for the years ended December 31, 2025, 2024 and 2023, respectively, during which periods the coal mining activities of those segments contributed approximately 80%, 80% and 82% of the Company’s sales volumes from mining operations, respectively.
While the Company faces numerous risks associated with the transition to a net-zero emissions economy and the physical impacts of climate change, certain opportunities may also emerge, such as: • Heightened emphasis among multiple stakeholders to develop high-efficiency, low-emissions (HELE) technologies and CCUS technologies; • Increased steel demand related to construction and other infrastructure projects related to climate change concerns; and • The relative expense and reliability of renewable energy sources compared to coal may encourage support for balanced-source energy policies and regulations.
Peabody Energy Corporation 2025 Form 10-K 24 Table of Contents While the Company faces numerous risks associated with the transition to a net-zero emissions economy and the physical impacts of climate change, certain opportunities may also emerge, such as: • Heightened emphasis among multiple stakeholders to develop high-efficiency, low-emissions (HELE) technologies and CCUS technologies; • Increased steel demand related to construction and other infrastructure projects related to climate change concerns; and • The relative expense and reliability of renewable energy sources compared to coal may encourage support for balanced-source energy policies and regulations.
Locations Peabody Energy Corporation 2024 Form 10-K 3 Tab le of Contents Australian Locations Peabody Energy Corporation 2024 Form 10-K 4 Tab le of Contents The table below summarizes information regarding the operating characteristics of each of the Company’s mines in the U.S. and Australia.
Locations Peabody Energy Corporation 2025 Form 10-K 3 Table of Contents Australian Locations Peabody Energy Corporation 2025 Form 10-K 4 Table of Contents The table below summarizes information regarding the operating characteristics of each of the Company’s mines in the U.S. and Australia.
In turn, increasing government attention has been paid to global climate issues and to GHG emissions, including emissions of carbon dioxide from coal combustion by power plants. There have been significant developments in federal and state legislation and regulation and international accords regarding climate change, and volatility in the regulatory space is likely to continue.
In turn, increasing attention from governments has been paid to global climate issues and to GHG emissions, including emissions of CO 2 from coal combustion by power plants. There have been significant developments in federal and state legislation and regulation and international accords regarding climate change, and volatility in the regulatory space is likely to continue.
Peabody’s sales backlog, which includes coal supply agreements subject to price reopener and/or extension provisions, was approximately 153 million and 221 million tons of coal as of January 1, 2025 and 2024, respectively.
Peabody’s sales backlog, which includes coal supply agreements subject to price reopener and/or extension provisions, was approximately 238 million and 153 million tons of coal as of January 1, 2026 and 2025, respectively.
From time to time, the Company’s Board of Directors and management attempt to analyze the potential impact on the Company of as-yet-unadopted, potential laws, regulations and policies.
The Company’s Board of Directors and management periodically attempt to analyze the potential impact on the Company of as-yet-unadopted, potential laws, regulations and policies.
In addition, the recently finalized final rule allows EGUs that commit to ceasing coal combustion by December 31, 2034, to comply with less stringent wastewater discharge requirements during the interim. The final rule is subject to numerous legal challenges that have been consolidated in the Eighth Circuit.
In addition, the recently finalized final rule allows EGUs that commit to ceasing coal combustion by December 31, 2034, to comply with less stringent wastewater discharge requirements during the interim. The final rule is subject to numerous legal challenges that have been consolidated in the U.S. Court of Appeals for the Eighth Circuit (Eighth Circuit).
Sales under long-term coal supply agreements comprised approximately 90%, 92% and 85% of the Company’s worldwide sales from its mining operations (by volume) for the years ended December 31, 2024, 2023 and 2022, respectively. For the year ended December 31, 2024, Peabody derived 27% of its revenue from coal supply agreements from its five largest customers.
Sales under long-term coal supply agreements comprised approximately 87%, 90% and 92% of the Company’s worldwide sales from its mining operations (by volume) for the years ended December 31, 2025, 2024 and 2023, respectively. For the year ended December 31, 2025, Peabody derived 25% of its revenue from coal supply agreements from its five largest customers.
Those five customers were supplied primarily from 16 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2024 to 2028. Peabody’s largest customer in 2024 contributed revenue of approximately $340 million, or approximately 8% of Peabody’s total revenue from coal supply agreements, and has contracts expiring in 2025. Backlog.
Those five customers were supplied primarily from 19 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2025 to 2028. Peabody’s largest customer in 2025 contributed revenue of approximately $291 million, or approximately 8% of Peabody’s total revenue from coal supply agreements, and has contracts expiring in 2026. Backlog.
Roberts was a senior trading lead within the trading division of Heidelberg Cement, a company with global operations in the cement and concrete industry. His responsibilities included leading a team of traders focused on the trading of solid fuel and other cementitious products. Prior to that, Mr.
During the period of October 2018 to June 2020, Mr. Roberts was a senior trading lead within the trading division of Heidelberg Cement, a company with global operations in the cement and concrete industry. His responsibilities included leading a team of traders focused on the trading of solid fuel and other cementitious products. Prior to that, Mr.
A self-bond is an indemnity agreement in a sum certain executed by the permittee or by the permittee and any corporate guarantor made payable to the regulatory authority. The Company’s total reclamation bonding requirements in the U.S. were $893.1 million as of December 31, 2024.
A self-bond is an indemnity agreement in a sum certain executed by the permittee or by the permittee and any corporate guarantor made payable to the regulatory authority. The Company’s total reclamation bonding requirements in the U.S. were $878.6 million as of December 31, 2025.
The Henry Hub Natural Gas Prompt Price averaged $2.41 per mmBtu in 2024, versus $2.66 and $6.54 per mmBtu in 2023 and 2022, respectively. In addition, the competitiveness of other alternative fuel sources for electricity generation has been strengthened by the growth of renewable energy generation.
The Henry Hub Natural Gas Prompt Price averaged $3.62 per mmBtu in 2025, versus $2.41 and $2.66 per mmBtu in 2024 and 2023, respectively. In addition, the competitiveness of other alternative fuel sources for electricity generation has been strengthened by the growth of renewable energy generation.
Economic sanctions have continued to influence trade flows of thermal coal in 2024.
Economic sanctions have continued to influence trade flows of thermal coal in 2025.
Peabody recognized expense related to the tax of $52.2 million, $57.4 million and $32.4 million for the years ended December 31, 2024, 2023 and 2022, respectively. Black Lung Benefits Act Self-Insurance Requirements .
Peabody recognized expense related to the tax of $54.6 million, $52.2 million and $57.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. Black Lung Benefits Act Self-Insurance Requirements .
The Company’s asset retirement obligations calculated in accordance with U.S. generally accepted accounting principles for its active and inactive Australian operations were $250.4 million as of December 31, 2024.
The Company’s asset retirement obligations calculated in accordance with generally accepted accounting principles for its active and inactive U.S. operations were $476.4 million as of December 31, 2025.
He serves as a director of Blue Danube. Mr. Grech holds a Bachelor of Science in Electrical Engineering from Lawrence Technological University and an MBA from the University of Michigan. Mark A. Spurbeck was named Peabody’s Executive Vice President and Chief Financial Officer in June 2020, after serving in an interim capacity from January 2020 through June 2020.
Mr. Grech holds a Bachelor of Science in Electrical Engineering from Lawrence Technological University and an MBA from the University of Michigan. Mark A. Spurbeck was named Peabody’s Executive Vice President and Chief Financial Officer in June 2020, after serving in an interim capacity from January 2020.
It also requires proponents of projects to take all reasonable measures to firstly avoid, and then minimize, impacts on biodiversity values. The recent changes to the biodiversity offset laws will affect approval processes and timeframes for future NSW mining projects. NSW Reclamation Laws.
It also requires proponents of projects to take all reasonable measures to firstly avoid, and then minimize, impacts on biodiversity values. The changes to the biodiversity offset laws have affected approval processes and timeframes for NSW mining projects. NSW Reclamation Laws.
The Mineral Resources Act 1989 is the principal legislation that regulates mining exploration, extraction and processing in Queensland, including coal mining. The Act was amended in 2016 to include significant changes to the management of overlapping coal and coal seam gas tenements, and the coordination of activities and access to private and public land. Queensland Occupational Health and Safety Laws.
The Mineral Resources Act 1989 is the principal legislation that regulates mining exploration, extraction and processing in Queensland, including coal mining. The act includes the management of overlapping coal and coal seam gas tenements, and the coordination of activities and access to private and public land. Queensland Occupational Health and Safety Laws.
Human Capital Peabody had approximately 5,600 employees as of December 31, 2024, including approximately 4,300 hourly employees. Additional information on its employees and related labor relations matters is contained in Note 19. “Management — Labor Relations” to the accompanying consolidated financial statements, which information is incorporated herein by reference.
Human Capital Peabody had approximately 5,400 employees as of December 31, 2025, including approximately 4,200 hourly employees. Additional information on its employees and related labor relations matters is contained in Note 18. “Management — Labor Relations” to the accompanying consolidated financial statements, which information is incorporated herein by reference.
The ‘chain of responsibility’ provisions of the EP Act, which became effective in April 2016, allow the regulator to issue an environmental protection order (EPO) to a related person of a company in two circumstances: (a) if an EPO has been issued to the company, an EPO can also be issued to a related person of the company (at the same time or later); or (b) if the company is a high risk company (as defined in the EP Act), an EPO can be issued to a related person of the company (whether or not an EPO has also been issued to the company).
The ‘chain of responsibility’ provisions of the EP Act allow the regulator to issue an EPO to a related person of a company in two circumstances: (a) if an EPO has been issued to the company, an EPO can also be issued to a related person of the company (at the same time or later); or (b) if the company is a high risk company (as defined in the EP Act), an EPO can be issued to a related person of the company (whether or not an EPO has also been issued to the company).
Finally, as part of the final rule, any newly constructed stationary combustion turbine (SCT), where construction or reconstruction of the unit was commenced after May 23, 2023, will be subject to CO 2 emission limits based on whether it is considered to be a low load, intermediate load or base load EGU.
Peabody Energy Corporation 2025 Form 10-K 13 Table of Contents Finally, as part of the final rule, any newly constructed stationary combustion turbine (SCT), where construction or reconstruction of the unit was commenced after May 23, 2023, will be subject to CO 2 emission limits based on whether it is considered to be a low load, intermediate load or base load EGU.
MACT standards limit emissions of mercury, acid gas HAPs, non-mercury HAP metals and organic HAPs. On March 6, 2023, the EPA issued a final rule which reaffirmed its determination to regulate coal- and oil-fired EGUs under CAA section 112, including the regulation of HAPs from EGUs after considering cost.
MACT standards limit emissions of mercury, acid gas HAPs, non-mercury HAP metals and organic HAPs. Peabody Energy Corporation 2025 Form 10-K 14 Table of Contents On March 6, 2023, the EPA issued a final rule which reaffirmed its determination to regulate coal- and oil-fired EGUs under CAA section 112, including the regulation of HAPs from EGUs after considering cost.
Army Corps of Engineers (Corps) regulates certain activities affecting navigable waters and waters of the U.S., including wetlands. Section 404 of the CWA requires mining companies to obtain permits from the Corps to place dredged or fill material in or mine through jurisdictional waters of the U.S. States are empowered to develop and apply water quality standards.
Army Corps of Engineers (Corps) regulates certain activities affecting navigable waters and waters of the U.S., including wetlands. Section 404 of the CWA requires mining companies to obtain permits from the Corps to place dredged or fill material in or mine through jurisdictional waters of the U.S.
Jarboe holds a Bachelor of Arts Degree from the University of Kansas, a Master’s Degree from the University of Missouri – Kansas City and a Juris Doctor degree from Washington University School of Law. Patrick J. Forkin III was named Chief Development Officer in July 2022 after serving as Senior Vice President - Corporate Development and Strategy since November 2017.
Jarboe holds a Bachelor of Arts Degree from the University of Kansas, a Master’s Degree from the University of Missouri – Kansas City and a Juris Doctor degree from Washington University School of Law. Patrick J. Forkin III was named Executive Vice President, Global Strategy and Peabody Development in September 2025, after serving as Chief Development Officer since July 2022.
On January 20, 2021, the U.S. reentered the Paris Agreement by accepting the agreement and all of its articles and clauses, after having announced its withdrawal from the agreement in November 2019.
On January 20, 2021, the U.S. reentered the Paris Agreement by accepting the agreement and all of its articles and clauses, after having announced its withdrawal from the agreement in November 2019. On January 20, 2025, U.S. President Donald Trump announced the withdrawal of the U.S. from the Paris Agreement. On January 7, 2026, U.S.
In November 2016, amendments to the EP Act and the Water Act 2000 provided for regulatory scrutiny of the environmental impacts of underground water extraction during the operational phase of resource projects for all tenements yet to commence mineral extraction.
The EP Act and the Water Act 2000 provide for regulatory scrutiny of the environmental impacts of underground water extraction during the operational phase of resource projects for all tenements yet to commence mineral extraction.
Item 1. Business. Overview Peabody is a leading producer of metallurgical and thermal coal. At December 31, 2024, the Company owned interests in 17 active coal mining operations located in the United States (U.S.) and Australia, including a 50% equity interest in Middlemount Coal Pty Ltd. (Middlemount).
Item 1. Business. Overview Peabody is a leading producer of metallurgical and thermal coal. The Company owned interests in 16 active coal mining operations located in the United States (U.S.) and Australia at December 31, 2025. Included in that count is Peabody’s 50% equity interest in Middlemount Coal Pty Ltd. (Middlemount).
The mines are listed within their respective reporting segment in descending order, as determined by tons produced in 2024.
The mines are listed within their respective reportable segment in descending order, as determined by tons produced in 2025.
Peabody Energy Corporation 2024 Form 10-K 12 Tab le of Contents The rule requires that newly-constructed fossil fuel-fired steam generating units achieve an emission standard for CO 2 (known as the Best System of Emission Reduction (BSER)) which is based on the performance of a supercritical pulverized coal boiler implementing partial carbon capture, utilization and storage (CCUS).
The rule requires that newly-constructed fossil fuel-fired steam generating units achieve an emission standard for CO 2 (known as the Best System of Emission Reduction (BSER)) which is based on the performance of a supercritical pulverized coal boiler implementing partial carbon capture, utilization and storage (CCUS).
SEC Climate-Related Disclosures . On March 6, 2024, the SEC adopted final rules it expects will enhance and standardize climate-related disclosures by public companies and in public offerings.
SEC Climate-Related Disclosures . On March 6, 2024, the SEC adopted final rules intended to enhance and standardize climate-related disclosures by public companies and in public offerings.
An example of a NUMA is the void that remains after open-cut mining activities have been completed. Under the legislation, an existing mine was exempt from the requirement to justify its NUMAs to the extent that its existing approvals provided for such areas. Queensland Residual Risk Laws.
An example of a NUMA is the void that remains after open-cut mining activities have been completed. Under the legislation, an existing mine was exempt from the requirement to justify its NUMAs to the extent that its existing approvals provided for such areas. Peabody Energy Corporation 2025 Form 10-K 22 Table of Contents Queensland Residual Risk Laws.
The Company’s asset retirement obligations calculated in accordance with generally accepted accounting principles for its active and inactive U.S. operations were $473.3 million as of December 31, 2024.
The Company’s asset retirement obligations calculated in accordance with U.S. generally accepted accounting principles for its active and inactive Australian operations were $278.5 million as of December 31, 2025.
This approach also enables fleet standardization for mining equipment, improving asset utilization, streamlining maintenance practices across global operations and optimizing inventory management, which reduces working capital. In 2024, lead times for parts and components required for surface and underground mining equipment showed notable improvement.
This approach also enables fleet standardization for mining equipment, improving asset utilization, streamlining maintenance practices across global operations and optimizing inventory management, which reduces working capital. In 2025, lead times for parts and components required for surface and underground mining equipment remained at normal levels.
He has over 30 years of experience in the coal and natural resources industry. Mr. Grech served as Chief Executive Officer and a member of the Board of Directors of Wolverine Fuels, LLC, a thermal coal producer and marketer based in Sandy, Utah, from July 2018 until May 2021. Prior to joining Wolverine Fuels, LLC, Mr.
Grech served as Chief Executive Officer and a member of the Board of Directors of Wolverine Fuels, LLC, a thermal coal producer and marketer based in Sandy, Utah, from July 2018 until May 2021. Prior to joining Wolverine Fuels, LLC, Mr.
The NGER Act imposes requirements for corporations meeting a certain threshold to register and report greenhouse gas emissions and abatement actions, as well as energy production and consumption as part of a single, national reporting system. The Clean Energy Regulator administers the NGER Act. The federal Department of Environment and Energy is responsible for NGER Act-related policy developments and review.
The NGER Act imposes requirements for corporations meeting a certain threshold to register and report greenhouse gas emissions and abatement actions, as well as energy production and consumption as part of a single, national reporting system. The Clean Energy Regulator administers the NGER Act.
While it is possible that the U.S. will adopt additional climate legislation in the future, the timing and specific requirements of any such legislation are uncertain. The EPA has also undertaken several steps to regulate GHG emissions under existing law, primarily the CAA. In response to the 2007 U.S. Supreme Court ruling in Massachusetts v.
While it is possible that the U.S. will adopt additional climate legislation in the future, the timing and specific requirements of any such legislation are uncertain. The EPA also undertook several steps to regulate GHG emissions under existing law, primarily the CAA.
The new tier rates are 20% for the portion of prices above $175 Australian dollars per tonne; 30% for the portion of prices above $225 Australian dollars per tonne; and a 40% tier for the portion of prices above $300 Australian dollars per tonne.
The new tier rates are 20% for the portion of prices above $175 Australian dollars per tonne; 30% for the portion of prices above $225 Australian dollars per tonne; and a 40% tier for the portion of prices above $300 Australian dollars per tonne. The increased rates increased royalty costs for Peabody’s Queensland operations.
These laws and regulations place substantial requirements on its coal mining operations and require regular inspection and monitoring of its mines and other facilities to ensure compliance. The Company is also affected by various other federal, state, local and tribal environmental laws and regulations that impact its customers. Surface Mining Control and Reclamation Act .
These laws and regulations place substantial requirements on its coal mining operations and require regular inspection and monitoring of its mines and other facilities to ensure compliance. The Company is also affected by various other federal, state, local and tribal environmental laws and regulations that impact its customers. Recent Announcement by the U.S. Environmental Protection Agency (EPA).

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changePeabody Energy Corporation 2024 Form 10-K 25 Tab le of Contents Coal prices are dependent upon factors beyond the Company’s control, including: • the demand for electricity and capacity utilization of electricity generating units (whether coal or non-coal); • changes in the fuel consumption and dispatch patterns of electric power generators, whether based on economic or non-economic factors; • the proximity, capacity and cost of transportation and terminal facilities; • competition with and the availability, quality and price of coal and alternative fuels, including natural gas, fuel oil, nuclear, hydroelectric, wind, biomass and solar power; • governmental regulations and taxes, including tariffs or other trade restrictions as well as those establishing air emission standards for coal-fueled power plants or mandating or subsidizing increased use of electricity from renewable energy sources; • the strength of the global economy, including the relative exchange rates of U.S. dollars for foreign currencies; • the unknown geopolitical consequences of current and future political and military conflicts, including between Russia and Ukraine; • the global supply and production costs of thermal and metallurgical coal; • the demand for steel, which may lead to price fluctuations in the monthly and quarterly repricing of the Company’s metallurgical coal contracts; • weather patterns, severe weather and natural disasters; • regulatory, administrative and judicial decisions, including those affecting future mining permits and leases; • competing technologies used to make steel, some of which do not use coal as a manufacturing input, such as electric arc furnaces; and • technological developments, including those related to alternative energy sources, those intended to convert coal-to-liquids or gas and those aimed at capturing, using and storing carbon dioxide.
Biggest changeCoal prices are dependent upon factors beyond the Company’s control, including: • demand for electricity and capacity utilization of electricity generating units (whether coal or non-coal); • changes in the fuel consumption and dispatch patterns of electric power generators, whether based on economic or non-economic factors; • competition with, and the availability, quality and price of coal and alternative fuels, including natural gas, fuel oil, nuclear, hydroelectric, wind, biomass and solar power; • governmental regulations and taxes, including air emission or other environmental standards for coal-fueled power plants and renewable-energy mandates or subsidies; • demand for steel, which may lead to price fluctuations in the monthly and quarterly repricing of the Company’s metallurgical coal contracts; • competing steel-making technologies that do not use coal as a manufacturing input, such as electric arc furnaces; • the proximity, capacity and cost of transportation and terminal facilities; • global supply levels and production costs of thermal and metallurgical coal; • tariffs, quotas, duties or other adverse changes to trade policy; • global economic conditions, including inflationary pressures and foreign currency exchange rates; • geopolitical developments and conflicts; • weather patterns, severe weather and natural disasters; • regulatory, administrative and judicial decisions, including those affecting future mining permits and leases; and • technological developments related to alternative energy sources, coal-to-liquids or gas conversion processes and CCUS.
Item 1A. Risk Factors. The Company operates in a rapidly changing environment that involves a number of risks. The following discussion highlights some of these risks and others are discussed elsewhere in this report. These and other risks could materially and adversely affect the Company’s business, financial condition, prospects, operating results or cash flows.
Item 1A. Risk Factors. The Company operates in a rapidly changing environment that involves a number of risks. The following highlights some of these risks and others are discussed elsewhere in this report. These and other risks could materially and adversely affect the Company’s business, financial condition, prospects, operating results or cash flows.
The mining industry has limited industry-specific accounting literature and, as a result, the Company understands diversity in practice exists in the interpretation and application of accounting literature to mining-specific issues. As diversity in mining industry accounting is addressed, the Company may need to restate its reported results if the resulting interpretations differ from its current accounting practices.
The mining industry has limited industry-specific accounting literature and, as a result, the Company understands diversity in practice exists in the interpretation and application of accounting literature to mining-specific issues. As diversity in mining industry accounting is addressed, the Company may need to restate its reported results if the resulting interpretations differ materially from its current accounting practices.
The coal mining industry is subject to regulation by federal, state and local authorities with respect to matters such as: • workplace health and safety; • limitations on land use; • mine permitting and licensing requirements; • reclamation and restoration of mining properties after mining is completed; • the storage, treatment and disposal of wastes; • remediation of contaminated soil, sediment and groundwater; • air quality standards; • water pollution; • protection of human health, plant-life and wildlife, including endangered or threatened species and habitats; • protection of wetlands; • the discharge of materials into the environment; and • the effects of mining on surface water and groundwater quality and availability.
The coal mining industry is subject to regulation by federal, state and local authorities with respect to matters such as: • royalty rates; • workplace health and safety; • limitations on land use; • mine permitting and licensing requirements; • reclamation and restoration of mining properties after mining is completed; • the storage, treatment and disposal of wastes; • remediation of contaminated soil, sediment and groundwater; • air quality standards; • water pollution; • protection of human health, plant-life and wildlife, including endangered or threatened species and habitats; • protection of wetlands; • the discharge of materials into the environment; and • the effects of mining on surface water and groundwater quality and availability.
In addition, the Company’s revenue could be adversely affected by a decline in customer purchases (including contractually obligated purchases) due to lack of demand and oversupply, cost of competing fuels and environmental and other governmental regulations.
In addition, the Company’s revenue could be adversely affected by a decline in customer purchases (including contractually obligated purchases) due to lack of demand, oversupply, cost of competing fuels or environmental and other governmental regulations.
These factors may trigger the recognition of additional impairment charges in the future, which could have a substantial impact on the Company’s results of operations.
These factors may trigger the recognition of impairment charges in the future, which could have a substantial impact on the Company’s results of operations.
If the Company fails to accurately estimate the future results and value of these assets or any other acquired or divested business or assets and the related risk associated with such a transaction, or are unable to successfully integrate the businesses or assets it acquires, its business, financial condition or results of operations could be negatively affected.
If the Company fails to accurately estimate the future results and value of these assets or any other acquired or divested business or assets and the related risk associated with such a transaction, or are unable to successfully close any acquisition or integrate the businesses or assets it acquires, its business, financial condition or results of operations could be negatively affected.
Peabody could be exposed to significant liability, reputational harm, loss of revenue, increased costs or other risks if it sustains cybersecurity attacks or other security breaches that disrupt its operations or result in the dissemination of proprietary or confidential information about the Company, its customers or other third-parties.
Peabody could be exposed to significant liability, reputational harm, loss of revenue, increased costs or other risks if it experiences cybersecurity attacks or other security breaches that disrupt its operations or result in the dissemination of proprietary or confidential information about the Company, its customers or other third-parties.
Because of the volatile and cyclical nature of coal markets, it is reasonably possible that the Company’s current estimates of projected future cash flows from its mining assets may change in the near term, which may result in the need for adjustments to the carrying value of its assets.
Given the volatile and cyclical nature of coal markets, it is reasonably possible that the Company’s current estimates of projected future cash flows from its mining assets may change in the near term, which may result in the need for adjustments to the carrying value of its assets.
The Company’s future success depends upon it conducting successful exploration and development activities or acquiring properties containing economically recoverable reserves and resources. The Company’s current strategy includes increasing its coal reserves and resources through acquisitions of government and other leases and producing properties and continuing to use its existing properties and infrastructure.
The Company’s future success depends upon it conducting successful exploration and development activities or acquiring properties containing economically recoverable reserves and resources. The Company’s current strategy includes increasing its coal reserves and resources through acquisitions of leases and producing properties and continuing to use its existing properties and infrastructure.
Under the share repurchase program authorized by the Board, the Company may purchase shares of common stock from time to time at the discretion of management through open market purchases, privately negotiated transactions, block trades, accelerated or other structured share repurchase programs, or other means.
Under the share repurchase program authorized by the Board, the Company may purchase shares of common stock from time to time at management’s discretion through open market purchases, privately negotiated transactions, block trades, accelerated or other structured share repurchase programs, or other means.
Some of the Company’s coal supply agreements contain provisions that allow a purchaser to terminate its contract if legislation is passed that either restricts the use or type of coal permissible at the purchaser’s plant or results in specified increases in the cost of coal or its use.
Some of the Company’s coal supply agreements contain provisions allowing a purchaser to terminate its contract if legislation is passed that either restricts the use or type of coal permissible at the purchaser’s plant or results in specified increases in the cost of coal or its use.
The payment of future cash dividends and future repurchases will depend upon Peabody’s earnings, economic conditions, liquidity and capital requirements, and other factors, including its leverage and other financial ratios. Accordingly, the Company cannot make any assurance that future dividends will be paid or future repurchases will be made.
Future cash dividends and repurchases will depend upon Peabody’s earnings, economic conditions, liquidity and capital requirements, and other factors, including its leverage and other financial ratios. Accordingly, the Company cannot make any assurance that future dividends will be paid or future repurchases will be made.
From time to time, the Company has experienced litigation with lessors of its coal properties and with royalty holders. In addition, from time to time, its permit applications and federal and state coal leases have been challenged, causing production delays.
From time to time, the Company has experienced litigation with lessors of its coal properties and with royalty holders, and its permit applications and federal and state coal leases have been challenged, causing production delays.
In 2023, the Company’s Board of Directors approved a shareholder return framework, which includes share repurchases and cash dividends, and a share repurchase program authorizing repurchases of up to $1.0 billion of the Company’s common stock.
In 2023, the Company’s Board of Directors approved a shareholder return framework that includes share repurchases and cash dividends, and a share repurchase program authorizing repurchases of up to $1.0 billion of the Company’s common stock.
The Company faces numerous uncertainties in estimating its coal reserves and resources and inaccuracies in its estimates could result in lower than expected revenue, higher than expected costs and decreased profitability. Coal is economically recoverable when the price at which the Company’s coal can be sold exceeds the costs and expenses of mining and selling the coal.
The Company faces numerous uncertainties in estimating its coal reserves and resources and inaccuracies in its estimates could result in lower than expected revenue, higher than expected costs and decreased profitability. Coal is economically recoverable only when the price at which it can be sold exceeds the costs and expenses of mining and selling the coal.
The agreements governing the Company’s unsecured debt, revolving credit facility and surety bonding obligations contain certain restrictions and covenants, which are described below and which could adversely affect the Company’s ability to operate its business, as well as significantly affect its liquidity, and therefore could adversely affect its business, financial condition and results of operations.
The agreements governing the Company’s unsecured debt, revolving credit facility and surety bonding obligations contain certain restrictions and covenants which could adversely affect the Company’s ability to operate its business, as well as significantly affect its liquidity, and therefore could adversely affect its business, financial condition and results of operations.
If the Company’s indebtedness is accelerated, the Company may not have sufficient cash flows and capital resources to repay such indebtedness or be able to restructure or refinance such indebtedness.
If the Company’s indebtedness is accelerated, it may not have sufficient cash flows and capital resources to repay such indebtedness or be able to restructure or refinance such indebtedness.
The manner, timing and pricing of any share repurchase transactions will be based on a variety of factors, includi ng market conditions, applicable legal requirements and alternative opportunities that the Company may have for the use or investment of capital.
The manner, timing and pricing of any share repurchase transactions will be based on a variety of factors, including market conditions, applicable legal requirements and alternative opportunities that the Company may have for the use or investment of capital.
Lower demand for metallurgical coal in international markets would reduce the amount of metallurgical coal that Peabody sells and the prices that it receives for it, thereby reducing revenues and adversely impacting earnings and the value of its coal reserves. Foreign government policies related to coal production and consumption could also negatively impact pricing and demand for the Company’s products.
Lower international demand for metallurgical coal would reduce the volume of metallurgical coal Peabody sells and the prices that it receives, thereby reducing revenues and adversely impacting earnings and the value of its coal reserves. Foreign government policies related to coal production and consumption could also negatively impact pricing and demand for the Company’s products.
Further, required permits may not be issued or renewed in a timely fashion or at all, or permits issued or renewed may be conditioned in a manner that may restrict the Company’s ability to efficiently and economically conduct its mining activities, any of which would materially reduce its production, cash flows and profitability.
Further, required permits may not be issued or renewed in a timely fashion or at all, or may include conditions that restrict the Company’s ability to efficiently and economically conduct its mining activities, any of which would materially reduce its production, cash flows and profitability.
Whether or not the Company holds majority interests or maintains operational control in its joint ventures, its partners may, among other things, (1) have economic or business interests or goals that are inconsistent with, or opposed to, the Company’s; (2) seek to block actions that the Company believes are in its or the joint venture’s best interests; or (3) be unable or unwilling to fulfill their obligations under the joint venture or other agreements, such as contributing capital, each of which may adversely impact the Company’s results of operations and its liquidity or impair its ability to recover its investments.
Regardless of whether the Company holds a majority interest or maintains operational control, its partners may, among other things, (1) have economic or business interests or goals that are inconsistent with, or opposed to, the Company’s; (2) seek to block actions that the Company believes are in its or the joint venture’s best interests; or (3) be unable or unwilling to fulfill their obligations under the joint venture or other agreements, such as contributing capital, any of which may adversely impact the Company’s results of operations and its liquidity or impair its ability to recover its investments.
The Company’s mining operations are subject to conditions that can impact the safety of its workforce, delay coal deliveries or increase the cost of mining at particular mines for varying lengths of time.
The Company’s mining operations are subject to conditions that can impact workforce safety, delay coal deliveries or increase costs at particular mines for varying lengths of time.
Concerns about the impacts of coal combustion on global climate are increasingly leading to conditions that have affected and could continue to affect demand for the Company’s products or its securities and its ability to produce, including increased governmental regulation of coal combustion and unfavorable investment decisions by electricity generators. Global climate issues continue to attract public and scientific attention.
Concerns about the impacts of coal combustion on global climate are increasingly leading to conditions that have affected and could continue to affect demand for the Company’s products or its securities and its ability to produce, including increased governmental regulation of coal combustion and unfavorable investment decisions by electricity generators.
As a result of all of these factors, investors in Peabody’s Common Stock may not be able to resell their stock at or above the price they paid or at all.
As a result of these factors, investors in Peabody’s Common Stock may be unable to resell their stock at or above the price they paid or at all.
The Company’s information systems and those of important third parties are vulnerable to malicious and intentional cyberattacks involving malware (such as ransomware), accidental or inadvertent incidents, the exploitation of security vulnerabilities or “bugs” in software or hardware, social engineering/phishing attacks, and malfeasance by insiders, among other scenarios.
The Company’s information systems, and those of key third parties, are vulnerable to malicious and intentional cyberattacks involving malware (such as ransomware), accidental or inadvertent incidents, the exploitation of security vulnerabilities or “bugs” in software or hardware, social engineering/phishing attacks, and insider malfeasance, among other scenarios.
Peabody Energy Corporation 2024 Form 10-K 26 Tab le of Contents If a substantial number of the Company’s long-term coal supply agreements, including those with its largest customers, terminate, or if the pricing, volumes or other elements of those agreements materially adjust, its revenue and operating profits could suffer if the Company is unable to find alternate buyers willing to purchase its coal on comparable terms to those in its contracts.
Peabody Energy Corporation 2025 Form 10-K 27 Table of Contents If a substantial number of the Company’s long-term coal supply agreements, including those with its largest customers, terminate, or if the pricing, volumes or other elements of those agreements materially adjust, its revenue and operating profits could suffer if the Company is unable to find alternate buyers willing to purchase its coal on comparable terms to those in its contracts.
The Company’s failure to provide adequate collateral, or abide by other terms in the agreement, could invalidate the agreement and materially and adversely affect its business and results of operations. The Company’s failure to maintain adequate bonding would invalidate its mining permits and prevent mining operations from continuing, which could result in its inability to continue as a going concern.
The Company’s failure to provide adequate collateral, or abide by other terms in the agreement, could invalidate the agreement and materially and adversely affect its business and results of operations. Failure to maintain adequate bonding could invalidate the Company’s mining permits and halt mining operations, which could result in its inability to continue as a going concern.
Such risks stem from internal and external sources and include: • global economic recessions and/or credit market disruptions; • deterioration of the creditworthiness of its customers or counterparties to financial instruments, and their ability to perform under contracts; • inability of suppliers and other counterparties, including those related to transportation, contract mining, service provision, and coal trading and brokerage, to fulfil the terms of their contracts with the Company; • decreases in the availability or increases in costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives and tires; • disruption to, or increased costs within, the transportation chain for coal, including rail, barge, trucking, overland conveyor, ports and ocean-going vessels; • new or increased forms of taxation imposed by federal, state, provincial or local governmental authorities, including production taxes, sales-related taxes, royalties, environmental taxes, mining profits taxes and income taxes; and • uncertainties associated with the Company’s global operating platform, including country and political risks, international regulatory requirements, and foreign currency rates.
Such risks stem from internal and external sources and include: • global economic recessions and/or credit market disruptions; • rising inflation; • pandemics or other widespread illnesses; • deterioration of the creditworthiness of its customers or financial counterparties, and their ability to perform under contracts; • inability of suppliers and other counterparties, including those related to transportation, contract mining, service provision, and coal trading and brokerage, to fulfil the terms of their contracts with the Company; • reduced availability or increased costs of key supplies, capital equipment or commodities such as diesel fuel, steel, explosives and tires; • disruptions or increased costs in coal transportation networks, including rail, barge, trucking, overland conveyor, ports and ocean-going vessels; • new or increased forms of taxation imposed by federal, state, provincial or local governmental authorities, including production taxes, sales-related taxes, royalties, environmental taxes, mining profits taxes and income taxes; and • uncertainties associated with the Company’s global operating platform, including country and political risks, international regulatory requirements, and foreign currency fluctuations.
Under the Company’s agreement with the providers of its surety portfolio, the Company has $394.6 million in cash held in trust accounts for the benefit of certain surety providers as of December 31, 2024.
Under the Company’s agreement with the providers of its surety portfolio, the Company has $383.6 million in cash held in trust accounts for the benefit of certain surety providers as of December 31, 2025.
Certain banks, other financing sources and insurance companies have taken actions to limit available financing and insurance coverage for the development of new coal-fueled power plants and coal producers and utilities that derive a majority of their revenue from coal, and particularly from thermal coal. This may adversely impact the future global demand for coal.
Certain banks, other financing sources and insurance companies have limited financing and insurance coverage for the development of new coal-fueled power plants and for coal producers and utilities that derive a majority of their revenue from coal, particularly thermal coal. This may adversely impact the future global demand for coal.
The Company’s future success depends upon its ability to continue acquiring and developing coal reserves and resources that are economically recoverable. The Company’s recoverable reserves and resources decline as it produces coal. The Company has not yet applied for the permits required or developed the mines necessary to use all of its reserves and resources.
The Company’s future success depends upon its ability to continue acquiring and developing coal reserves and resources that are economically recoverable. Recoverable reserves and resources decline as coal is produced, and the Company has not yet applied for the permits required or developed the mines necessary to use all reported reserves and resources.
As further described in “Liquidity and Capital Resources” of Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the Company has a surety transaction support agreement with the providers of its surety bond portfolio.
As further described in “Liquidity and Capital Resources” of Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the Company has a surety transaction support agreement with the providers of its surety bond portfolio that expires on December 31, 2026.
There may be circumstances in which the interests of a significant stockholder could be in conflict with other stakeholders’ interests. Circumstances may arise in which the interests of a significant stockholder may be in conflict with the interests of the Company’s other stakeholders.
Circumstances may arise in which the interests of a significant stockholder may be in conflict with the interests of the Company’s other stakeholders.
Most of its coal supply agreements contain provisions requiring the Company to deliver coal meeting quality thresholds for certain characteristics such as Btu, sulfur content, ash content, volatile matter, coking properties, grindability and ash fusion temperature. Failure to meet these specifications could result in economic penalties, including price adjustments, the rejection of deliveries or termination of the contracts.
Most of the Company’s coal supply agreements contain provisions requiring the delivery of coal meeting quality thresholds for certain characteristics such as Btu, sulfur content, ash content, volatile matter, coking properties, grindability and ash fusion temperature. Failure to meet these specifications could result in penalties, including price adjustments, rejection of deliveries or contract termination.
In deciding which mortality tables to use, the Company periodically reviews its population’s actual mortality experience and evaluates results against its current assumptions as well as consider recent mortality tables published by the Society of Actuaries Retirement Plans Experience Committee in order to select mortality tables for use in its year end valuations.
In deciding which mortality tables to use, the Company periodically reviews its population’s actual mortality experience and evaluates results against its current assumptions as well as consider recent mortality tables published by the Society of Actuaries Retirement Plans Experience Committee.
The Company may not be able to negotiate or secure new leases from the government or from private parties, obtain mining contracts for properties containing additional coal reserves and resources or maintain its leasehold interest in properties on which mining operations have not commenced or have not met minimum quantity or product royalty requirements.
The Company may be unable to secure new leases, obtain mining contracts for properties containing additional coal reserves and resources or maintain its leasehold interest in properties on which mining operations have not commenced or have not met minimum quantity or product royalty requirements.
Any material inaccuracy in the Company’s estimates related to its coal reserves and resources could result in lower than expected revenue, higher than expected costs or decreased profitability which could materially and adversely affect its business, results of operations, financial position and cash flows.
Thus, these estimates may not accurately reflect its actual reserves and resources. Any material inaccuracy in the Company’s estimates related to its coal reserves and resources could result in lower than expected revenue, higher than expected costs or decreased profitability which could materially and adversely affect its business, results of operations, financial position and cash flows.
Peabody Energy Corporation 2024 Form 10-K 37 Tab le of Contents These efforts may have adverse consequences, including, but not limited to: • restricting the Company’s ability to access capital and financial markets in the future; • reducing the demand and price for its equity securities; • increasing the cost of borrowing; • causing a decline in the Company’s credit ratings; • reducing the availability, and/or increasing the cost of, third-party insurance; • increasing the Company’s retention of risk through self-insurance; • making it more difficult to obtain surety bonds, letters of credit, bank guarantees or other financing; and • limiting the Company’s flexibility in business development activities such as mergers, acquisitions and divestitures.
These efforts may have adverse consequences, including, but not limited to: • restricting the Company’s access to capital and financial markets in the future; • reducing the demand for, and the price of, its equity securities; • increasing borrowing costs; • causing a decline in the Company’s credit ratings; • reducing the availability of, and/or increasing the cost of, third-party insurance; • increasing the Company’s retention of risk through self-insurance; • making it more difficult to obtain surety bonds, letters of credit, bank guarantees or other financing; and • limiting flexibility in business development activities such as mergers, acquisitions and divestitures.
Peabody Energy Corporation 2024 Form 10-K 27 Tab le of Contents Risks inherent to mining could increase the cost of operating the Company’s business, and events and conditions that could occur during the course of its mining operations could have a material adverse impact on the Company.
Peabody Energy Corporation 2025 Form 10-K 28 Table of Contents Risks inherent to mining could increase the cost of operating the Company’s business, and events and conditions that could occur during the course of its mining operations could have a material adverse impact on the Company.
The degree to which the Company is leveraged could have important consequences, including, but not limited to: • making it more difficult for the Company to pay interest and satisfy its debt obligations; • increasing the cost of borrowing; • increasing the Company’s vulnerability to general adverse economic and industry or regulatory conditions; • requiring the dedication of a substantial portion of the Company’s cash flow from operations to the payment of principal and interest on the Company’s indebtedness, thereby reducing the availability of cash flow to fund working capital, capital expenditures, business development or other general corporate requirements; • limiting the Company’s ability to obtain additional financing to fund future working capital, capital expenditures, business development or other general corporate requirements; • making it more difficult to obtain surety bonds, letters of credit, bank guarantees or other financing, particularly during periods in which credit markets are weak; • limiting the Company’s flexibility in planning for, or reacting to, changes in its business and in the coal industry; • causing a decline in the Company’s credit ratings; and • placing the Company at a competitive disadvantage compared to less leveraged competitors.
The degree to which the Company is leveraged could have important consequences, including, but not limited to: • making it more difficult to pay interest and satisfy its debt obligations; • increasing borrowing costs; • increasing vulnerability to general adverse economic, industry or regulatory conditions; • requiring the dedication of a substantial portion of operating cash flow to be used for debt service, thereby reducing funds available for working capital, capital expenditures, business development or other general corporate requirements; • limiting the Company’s ability to obtain additional financing to fund future working capital, capital expenditures, business development or other general corporate requirements; • making it more difficult to obtain surety bonds, letters of credit, bank guarantees or other forms of financing, particularly in weak credit markets; • reducing flexibility in planning for, or reacting to, changes in its business and in the coal industry; • causing a decline in the Company’s credit ratings; and • placing the Company at a competitive disadvantage compared to less leveraged competitors.
These conditions include: • elevated gas levels; • fires and explosions, including from methane gas or coal dust; • accidental mine water discharges; • weather, flooding and natural disasters; • hazardous events such as roof falls and high wall or tailings dam failures; • seismic activities, ground failures, rock bursts or structural cave-ins or slides; • key equipment failures; • supply chain constraints or unavailability of equipment or parts of the type, quantity and/or size needed to meet production expectations; • variations in coal seam thickness, coal quality, the amount of rock and soil overlying coal deposits and geologic conditions impacting mine sequencing; • delays in moving its longwall equipment; • unexpected maintenance problems; and • unforeseen delays in implementation of mining technologies that are new to its operations.
These conditions include: • elevated gas levels; • fires and explosions, including from methane gas or coal dust; • accidental mine water discharges; • adverse weather, flooding and natural disasters; • hazardous events such as roof falls and high wall or tailings dam failures; • seismic activity, ground failures, rock bursts or structural cave-ins or slides; • key equipment failures; • supply chain constraints or unavailability of equipment parts; • variations in coal seam thickness, coal quality, the amount of rock and soil overlying coal deposits and geologic conditions impacting mine sequencing; • delays in moving longwall equipment; • unexpected maintenance problems; and • unforeseen delays in implementation of mining technologies.
These information technology systems, some of which are managed by third parties that the Company does not control, have been and may in the future be susceptible to damage, disruptions or shutdowns.
These information technology systems, some of which are managed by third parties outside of the Company’s control, have been and may in the future be susceptible to damage, disruptions or shutdowns.
That failure could result from a variety of factors including: • lack of availability, higher expense or unfavorable market terms of new surety bonds, bank guarantees or letters of credit; • inability to provide or fund collateral for current and future third-party issuers of surety bonds, bank guarantees or letters of credit; and • lack of available fronting banks in certain countries where the Company must provide financial assurances but its primary surety providers are not licensed or admitted.
That failure could result from a variety of factors including: • limited availability, higher cost or unfavorable terms for new surety bonds, bank guarantees or letters of credit; • an inability to provide or fund collateral; or • a lack of available fronting banks in certain countries where the Company must provide financial assurances but its primary surety providers are not licensed or admitted.
Where the Company’s joint ventures are jointly controlled or not managed by it, the Company may provide expertise and advice but have limited control over compliance with its operational standards. The Company also utilizes contractors across its mining platform, and may be similarly limited in its ability to control their operational practices.
In jointly controlled or non-managed ventures, the Company may provide expertise and advice but have limited control over compliance with its operational standards. The Company also utilizes contractors across its mining platform, and may be similarly limited in its ability to control their operational practices.
Alternative forms of financial assurance such as self-bonding have been severely restricted or terminated in most of the regions where its mines reside. The Company’s failure to retain, or inability to obtain, surety bonds, bank guarantees or letters of credit, or to provide a suitable alternative, could have a material adverse effect on it.
Alternative forms of financial assurance such as self-bonding have been severely restricted or terminated in most of the regions where the Company operates. Failure to retain or obtain surety bonds, bank guarantees or letters of credit, or to provide suitable alternatives, could have a material adverse effect on the Company.
The Company may be able to incur additional indebtedness in the future, including secured debt. Although covenants under agreements governing the Company’s other indebtedness, including its revolving credit facility and finance leases, limit the Company’s ability to incur additional indebtedness, these restrictions are subject to a number of qualifications and exceptions.
Although covenants under agreements governing the Company’s other indebtedness, including its revolving credit facility and finance leases, limit the Company’s ability to incur additional indebtedness, these restrictions are subject to a number of qualifications and exceptions.
Peabody Energy Corporation 2024 Form 10-K 39 Tab le of Contents Although the Company may be able to utilize some or all of those deferred tax assets in the future if it has income of the appropriate character in those jurisdictions (subject to loss carryforward and tax credit expiry, in certain cases), there is no assurance that it will be able to do so.
Although the Company may be able to utilize some or all of those deferred tax assets in the future if it has income of the appropriate character in those jurisdictions (subject to loss carryforward and tax credit expiry, in certain cases), there is no assurance that it will be able to do so.
Further, Peabody could be the subject of securities class action litigation due to any such stock price volatility, which could divert management’s attention and have a material adverse effect on its results of operation.
Further, Peabody could be the subject of securities class action litigation due to any such stock price volatility, which could divert management’s attention and have a material adverse effect on its results of operations. Peabody’s Common Stock is subject to dilution and may be subject to further dilution in the future.
General Risk Factors Acquisitions and divestitures are a potentially important part of the Company’s long-term strategy, subject to its investment criteria, and involve a number of risks, any of which could cause the Company not to realize the anticipated benefits.
Peabody Energy Corporation 2025 Form 10-K 39 Table of Contents General Risk Factors Acquisitions and divestitures are a potentially important part of the Company’s long-term strategy, subject to its investment criteria, and involve a number of risks, any of which could cause the Company not to realize the anticipated benefits.
Also, if the Company fails to maintain good relations or successfully negotiate contracts with its employees who are represented by unions, the Company could potentially experience labor disputes, strikes, work stoppages, slowdowns or other disruptions in production that could negatively impact its profitability. The Company could be adversely affected if it fails to appropriately provide financial assurances for its obligations.
Also, failure to maintain good relations or successfully negotiate union contracts could potentially result in labor disputes, strikes, work stoppages, slowdowns or other production disruptions that could negatively impact the Company’s profitability. The Company could be adversely affected if it fails to appropriately provide financial assurances for its obligations.
Lower demand for coal consumed by electric power generators has reduced and could continue to reduce the volume of thermal coal that the Company sells and the prices that it receives for the thermal coal, thereby reducing its revenue and adversely impacting its earnings and the value of its coal reserves and resources.
In recent years, these trends have lowered demand for coal consumed by electric power generators and could continue to reduce the volume of thermal coal that the Company sells and the prices that it receives, thereby reducing its revenue and adversely impacting its earnings and the value of its coal reserves and resources.
The number and quantity of viable financing and insurance alternatives available to the Company may be significantly impacted by unfavorable lending and investment policies by financial institutions and insurance companies associated with concerns about environmental impacts of coal combustion, and negative views around its efforts with respect to environmental and social matters and related governance considerations could harm the perception of the Company by a significant number of investors or result in the exclusion of its securities from consideration by those investors.
The number and viability of financing and insurance alternatives available to the Company may be significantly impacted by unfavorable lending and investment policies adopted by financial institutions and insurance companies in response to concerns about the environmental impacts of coal combustion, and negative views around the Company’s environmental and social practices and related governance considerations could harm its perception among investors or result in the exclusion of its securities from consideration by those investors.
The value of the Company’s assets have from time to time been adversely affected by numerous uncertain factors, some of which are beyond the Company’s control, including unfavorable changes in the economic environments in which it operates; declining coal-fired electricity generation; lower-than-expected coal pricing; technical and geological operating difficulties; an inability to economically extract its coal reserves and resources; and unanticipated increases in operating costs.
The value of the Company’s assets has periodically been affected by numerous uncertain factors, some of which are beyond the Company’s control, including adverse economic conditions; declining coal-fired electricity generation; lower-than-expected coal pricing; technical or geological operating difficulties; an inability to economically extract its coal reserves and resources; and unanticipated increases in operating costs.
Some coal supply agreements allow customers to vary the volumes of coal that they are required to purchase during a particular period, and where coal supply agreements do not explicitly allow such variation, customers sometimes request that the Company amend the agreements to allow for such variation.
Some coal supply agreements allow customers to vary required purchase volumes during a particular period, and where coal supply agreements do not explicitly allow such variation, customers sometimes request amendments to allow for such variation.
The Company’s results of operations, financial condition and cash flows may adversely be affected in future periods by these limitations. Peabody’s certificate of incorporation and by-laws include provisions that may discourage a takeover attempt.
The Company’s results of operations, financial condition and cash flows may adversely be affected in future periods by these limitations. Peabody Energy Corporation 2025 Form 10-K 40 Table of Contents Peabody’s certificate of incorporation and by-laws include provisions that may discourage a takeover attempt.
Peabody Energy Corporation 2024 Form 10-K 33 Tab le of Contents Joint ventures, partnerships or non-managed operations may not be successful and may not comply with the Company’s operating standards. The Company participates in several joint venture and partnership arrangements and may enter into others, all of which necessarily involve risk.
Joint ventures, partnerships or non-managed operations may not be successful and may not comply with the Company’s operating standards. The Company participates in several joint venture and partnership arrangements and may enter into others, all of which necessarily involve risk.
These factors and assumptions include: • geologic and mining conditions, which may not be fully identified by available exploration data and may differ from the Company’s experience in areas it currently mines; • demand for coal; • current and future market prices for coal, contractual arrangements, operating costs and capital expenditures; • severance and excise taxes, royalties and development and reclamation costs; • future mining technology improvements; • the effects of regulation by governmental agencies; • the ability to obtain, maintain and renew all required permits; • employee health and safety; and • historical production from the area compared with production from other producing areas.
These include: • geologic and mining conditions that may not be fully identified by available exploration data and may differ from the Company’s experience in areas it currently mines; • demand for coal; • current and future market prices for coal, contractual arrangements, operating costs and capital expenditures; • severance and excise taxes, royalties and development and reclamation costs; • future mining technology; • regulatory requirements; • the ability to obtain, maintain and renew all required permits; • employee health and safety considerations; and • historical production from comparable areas.
The Company’s financial assurance obligations may increase or become more costly due to a number of factors, and surety bonds and letters of credit may not be available to the Company, particularly in light of some banks and insurance companies’ announced unwillingness to support thermal coal producers and other fossil fuel companies.
The Company’s financial assurance obligations may increase or become more costly, and surety bonds or letters of credit may not be available to the Company, particularly as some banks and insurance companies have announced reduced support for thermal coal producers and other fossil fuel companies.
Moreover, regulatory changes or changes in healthcare benefits provided by the government could increase its obligation to satisfy these or additional obligations. The Company develops its actuarial determinations of liabilities using actuarial mortality tables it believes best fit its population’s actual results.
Regulatory changes or modifications to government-provided healthcare benefits could further increase the Company’s obligation. The Company develops its actuarial determinations of liabilities using actuarial mortality tables it believes best fit its population’s actual results.
Such liability may arise from conditions at formerly, as well as currently, owned or operated properties, and at properties to which hazardous substances have been sent for treatment, disposal or other handling.
Such liability may arise from conditions at currently or formerly owned or operated properties, as well as sites where hazardous substances were sent for treatment, disposal or other handling.
The Company’s ability to comply with these restrictions or covenants may be affected by events beyond its control. A breach of any of these restrictions or covenants together with the expiration of any cure period, if applicable, could result in a default.
Peabody Energy Corporation 2025 Form 10-K 37 Table of Contents The Company’s ability to comply with these restrictions or covenants may be affected by events beyond its control. A breach of any of these restrictions or covenants together with the expiration of any applicable cure period, could result in a default.
The following risk factors are not an exhaustive list of the risks associated with the Company’s business. New factors may emerge or changes to these risks could occur that could materially affect its business. Risks Associated with Peabody’s Operations The Company’s profitability depends upon the prices it receives for its coal.
The following risk factors are not an exhaustive list of the risks associated with the Company’s business. New factors may emerge or changes to these risks could occur that could materially affect its business.
The Company produces metallurgical coal that is used in the global steel industry. Metallurgical coal accounted for approximately 25% and 26% of its revenue in 2024 and 2023, respectively. Changes in governmental policies and regulations and changes in the steel industry, including the demand for steel, could reduce the demand for the Company’s metallurgical coal.
The Company also produces metallurgical coal for the global steel industry, which accounted for approximately 27% and 25% of its revenue in 2025 and 2024, respectively. Changes in governmental policies, regulations and steel industry conditions, including steel demand, could reduce demand for the Company’s metallurgical coal.
If the Company’s mortality tables do not anticipate its population’s mortality experience as accurately as expected, actual cash expenditures and costs that the Company incurs could differ materially from its current estimates. High inflation or imposed tariffs could result in higher costs and decreased profitability.
If the Company’s mortality tables do not anticipate its population’s mortality experience as accurately as expected, actual cash expenditures and costs that the Company incurs could differ materially from its current estimates.
Gas-fueled generation has displaced and could continue to displace coal-fueled generation (particularly from older, less efficient coal-fueled generation units) as current and potentially increasing regulatory costs and other factors, such as declines in the price of natural gas, impact the operating decisions of electric power generators.
Gas-fueled generation has displaced and could continue to displace coal-fueled generation (particularly at older, less efficient units) as regulatory costs and other factors, such as declines in the price of natural gas, impact the operating decisions of electric power generators. Some electric power generators have elected to close coal-fueled generation units given ongoing pressure to shift away from coal generation.
The Company’s ability to operate effectively could be impaired if it loses key personnel or fails to attract qualified personnel. Peabody manages its business with a number of key personnel, the loss of whom could have a material adverse effect on the Company, absent the completion of an orderly transition.
The Company’s ability to operate effectively could be impaired if it loses key personnel or fails to attract qualified personnel. Peabody relies on a number of key personnel, and the loss of any such individuals, absent an orderly transition could have a material adverse effect.
To the extent that the Company’s existing sources of liquidity are not sufficient to fund its planned mine development projects or coal reserve and resource acquisition activities, it may require access to capital markets, which may not be available to it or, if available, may not be available on satisfactory terms.
To the extent that the Company’s existing sources of liquidity are insufficient to fund its planned mine development projects or coal reserve and resource acquisition activities, the Company may need to access capital markets, which may be unavailable or available only on unfavorable terms.
The costs and expenses of mining and selling the coal are determined on a mine-by-mine basis, and as a result, the price at which its coal is economically recoverable varies based on the mine. Forecasts of the Company’s future performance are based on, among other things, estimates of its recoverable coal reserves and resources.
The costs and expenses of mining and selling the coal are determined on a mine-by-mine basis, and as a result, the price at which its coal is economically recoverable varies based on the mine.
Thermal coal accounted for the majority of the Company’s coal sales by volume during 2024 and 2023, with the vast majority of these sales to electric power generators.
Thermal coal represented the majority of the Company’s coal sales by volume during 2025 and 2024, with most of these sales to electric power generators.
The Company has substantial take-or-pay arrangements with its port access and rail transportation providers, predominately in Australia, totaling $1.0 billion, with terms ranging up to 19 years, that commit the Company to pay a minimum amount for the delivery of coal even if those commitments go unused.
The Company has substantial take-or-pay arrangements with its port access and rail transportation providers, predominately in Australia, totaling $1.0 billion, with terms ranging up to 19 years. These agreements require the Company to pay a minimum amount for the delivery of coal regardless of actual usage.
The Company maintains insurance policies that provide limited coverage for some of the risks referenced above, which may lessen the impact associated with these risks. However, there can be no assurance as to the amount or timing of recovery under its insurance policies in connection with losses associated with these risks. The Company’s take-or-pay arrangements could unfavorably affect its profitability.
The Company maintains insurance policies that provide limited coverage for certain of these risks, which may mitigate their impact. However, there can be no assurance as to the amount or timing of any insurance recovery related to such losses. The Company’s take-or-pay arrangements could unfavorably affect its profitability.
The demand for foreign-produced steel both in foreign markets and in the U.S. market depends in part on factors such as tariff rates on steel. The Company’s customers may be affected by imposed tariffs to the extent their imports into other countries are curtailed as a result of tariffs.
The demand for foreign-produced steel both in international and U.S. markets is influenced in part by tariff rates on steel. Tariffs may affect the Company’s customers to the extent their steel imports are curtailed as a result of imposed tariffs.
The Company’s expenditures for postretirement benefit obligations could be materially higher than it has predicted if its underlying assumptions prove to be incorrect. The Company pays postretirement health and life insurance benefits to eligible retirees.
The Company’s expenditures for postretirement benefit obligations could be materially higher than it has predicted if its underlying assumptions prove to be incorrect.
In addition, Peabody may issue equity securities in connection with future investments, acquisitions or capital raising transactions. Such issuances or grants could constitute a significant portion of the then-outstanding Common Stock, which may result in significant dilution in ownership of Common Stock.
Peabody’s Common Stock is subject to dilution from its convertible senior debt and its long-term incentive plan. In addition, Peabody may issue equity securities in connection with future investments, acquisitions or capital raising transactions. Such issuances or grants could constitute a significant portion of the then-outstanding Common Stock, which may result in significant dilution in ownership of Common Stock.
For the year ended December 31, 2024, the Company derived 27% of its revenue from coal supply agreements from its five largest customers. Those five customers were supplied primarily from 16 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2024 to 2028.
For the year ended December 31, 2025, 25% of the Company’s revenue was derived from coal supply agreements with its five largest customers, which were primarily supplied under 19 coal supply agreements (excluding trading and brokerage transactions) expiring at various times from 2025 to 2028.
As of December 31, 2024, the Company had $1,017.5 million of outstanding surety bonds; $262.3 million of letters of credit with third parties; $168.5 million of cash-backed bank guarantees; and $127.6 million of deposits with regulatory authorities in order to provide required financial assurances for post-mining reclamation, workers’ compensation and other insurance obligations, coal lease-related and other obligations and performance guarantees, in addition to collateral for sureties.
As of December 31, 2025, the Company had $997.2 million of outstanding surety bonds; $227.2 million of letters of credit; $208.7 million of cash-backed bank guarantees; and $134.9 million of deposits with regulatory authorities in order to provide required financial assurances for post-mining reclamation, workers’ compensation and other insurance obligations, coal lease-related and other obligations and performance guarantees, in addition to collateral for sureties.
Moreover, some of these agreements allow the Company’s customers to terminate their contracts in the event of changes in regulations affecting the coal industry that restrict the use or type of coal permissible at the customer’s plant or increase the price of coal beyond specified limits.
Moreover, certain agreements allow the Company’s customers to terminate their contracts if regulatory changes restrict the use or type of coal permissible at the customer’s plant or increase the price of coal beyond specified limits.
The price of Peabody’s common stock (Common Stock) may fluctuate due to a variety of market and industry factors that may materially reduce the market price of its Common Stock regardless of its operating performance, including, among others: • general economic conditions within the U.S. and internationally, including inflationary pressures and changes in interest rates; • general market conditions; • actual or anticipated fluctuations in Peabody’s quarterly and annual results and those of other public companies in its industry; • industry cycles and trends; • mergers and strategic alliances in the coal industry; • changes in government regulation; • potential or actual military conflicts or acts of terrorism; • the failure of securities analysts to publish research about Peabody or to accurately predict the results it actually achieves; • changes in accounting principles; • announcements concerning Peabody or its competitors; • the purchase and sale of shares of its Common Stock by significant shareholders; • lack of or excess of trading liquidity; • operational incidents; and • investor sentiment with respect to the Company’s policies or efforts on environmental, social or governance matters.
The price of Peabody’s common stock (Common Stock) may fluctuate due to a variety of market and industry factors that may materially reduce the market price of its Common Stock regardless of the Company’s operating performance, including, among others: • general market conditions; • actual or anticipated fluctuations in Peabody’s quarterly and annual results and those of industry peers; • industry cycles and trends; • mergers and strategic alliances in the coal industry; • changes in government regulation; • potential or actual military conflicts or acts of terrorism; • securities analysts’ failure to publish research or to accurately forecast the Company’s results; • market perception of development projects; • changes in accounting principles; • announcements concerning Peabody or its competitors; • trading activity by insiders or significant shareholders; • limited or excess trading liquidity; • operational incidents; and • investor sentiment regarding the Company’s policies or efforts on environmental, social or governance matters.
Peabody Energy Corporation 2024 Form 10-K 29 Tab le of Contents If the assumptions underlying the Company’s asset retirement obligations for reclamation and mine closures are materially inaccurate, its costs could be significantly greater than anticipated.
If the assumptions underlying the Company’s asset retirement obligations for reclamation and mine closures are materially inaccurate, its costs could be significantly greater than anticipated.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

3 edited+1 added−0 removed8 unchanged
Biggest changeSenior leadership, including Peabody’s CISO, regularly briefs the Board on cybersecurity matters and the Board is informed of cybersecurity incidents deemed to have a moderate or higher business impact, even if such incidents are determined to be immaterial, on an ongoing basis. Peabody’s global cybersecurity department is responsible for overall cybersecurity strategy, policy, operations and cybersecurity incident response.
Biggest changeSenior leadership, including Peabody’s CIO, regularly briefs the Board on cybersecurity matters and the Board is informed of cybersecurity incidents deemed to have a moderate or higher business impact, even if such incidents are determined to be immaterial, on an ongoing basis.
Peabody’s enterprise risk management (ERM) framework considers cybersecurity risk alongside other company risks as part of the Company’s overall risk assessment process. The ERM team collaborates with the Chief Information Security Officer (CISO), to gather insights for assessing, identifying and managing cybersecurity threat risks, their severity, and potential mitigations.
Peabody’s enterprise risk management (ERM) framework considers cybersecurity risk alongside other company risks as part of the Company’s overall risk assessment process. The ERM team collaborates with the Chief Information Officer (CIO) to gather insights for assessing, identifying and managing cybersecurity threat risks, their severity and potential mitigations.
Peabody Energy Corporation 2024 Form 10-K 40 Tab le of Contents Governance Peabody’s Board of Directors maintains direct oversight over cybersecurity risks and oversees an enterprise-wide approach to risk management, designed to support the achievement of organizational objectives to enhance long-term performance and stockholder value.
Governance Peabody’s Board of Directors maintains direct oversight over cybersecurity risks and oversees an enterprise-wide approach to risk management, designed to support the achievement of organizational objectives to enhance long-term performance and stockholder value.
Added
Peabody Energy Corporation 2025 Form 10-K 41 Table of Contents Peabody’s global cybersecurity department is responsible for overall cybersecurity strategy, policy, operations and cybersecurity incident response.

Item 2. Properties

Properties — owned and leased real estate

77 edited+5 added−4 removed71 unchanged
Biggest changeThermal: (5) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Tons %Ash %Sulfur Btu (8) Bear Run USA IN P S T 51 10.3 3.1 11,070 18 9.5 2.5 11,050 69 10.1 2.9 11,065 100 % Lee Ranch USA NM P S T 7 17.5 0.9 9,271 1 16.0 0.8 9,477 8 17.3 0.9 9,297 100 % Gateway North USA IL P U T 19 8.8 2.9 10,919 3 8.9 2.9 10,916 22 8.9 2.9 10,917 100 % Twentymile USA CO P U T 8 10.8 0.4 11,260 1 11.0 0.5 11,260 9 10.8 0.4 11,260 100 % Wild Boar USA IN P S T 6 8.8 2.7 10,990 6 9.0 3.0 11,050 12 8.9 2.9 11,020 100 % Francisco Underground USA IN P U T 1 9.4 3.2 11,490 1 9.3 3.3 11,530 2 9.4 3.3 11,510 100 % Total 92 30 122 Grand total 1,724 393 2,117 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 2024 Form 10-K 46 Tab le of Contents SUMMARY COAL RESOURCES AT END OF THE FISCAL YEAR ENDED DECEMBER 31, 2024 (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 137 23.4 0.5 6,018 59 25.3 0.5 5,872 196 24.0 0.5 5,974 9 26.5 0.5 5,767 100 % Wambo Opencut (9) AUS NSW P S/U T/C 223 20.9 0.4 5,825 181 21.5 0.4 5,813 404 21.2 0.4 5,820 273 20.3 0.4 5,865 50 % South Wambo AUS NSW E U T/C 219 21.5 0.3 6,068 83 27.2 0.3 5,571 302 23.1 0.3 5,931 47 36.3 0.3 4,745 100 % Total 579 323 902 329 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 7 15.4 0.4 18.6 8 15.3 0.3 18.7 15 15.3 0.4 18.6 2 16.0 0.3 19.0 100 % Coppabella AUS QLD P S 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 22 18.8 0.3 17.3 17 17.6 0.3 18.6 39 18.3 0.3 17.9 6 16.4 0.3 17.1 73.3 % Centurion AUS QLD E 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 466 821 1,287 503 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 143 5.0 0.3 8,525 114 5.2 0.4 8,240 257 5.1 0.3 8,440 2 5.5 0.4 8,370 100 % Rawhide USA WY P S T 13 5.5 0.4 8,120 95 5.2 0.3 8,355 108 5.2 0.3 8,330 7 5.8 0.4 8,235 100 % Total 156 209 365 9 Other U.S.
Biggest changeThermal: (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.
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, Russia, Colombia, the U.S. and South Africa, among others. Metallurgical .
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 .
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 of mining and processing loss. The economic results from the LOM planning process demonstrate the economic viability of the coal reserve estimate.
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.
The ML allows mining and sale of coal by both underground and open cut methods. Overlapping this Mining Lease, 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.
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.
(6) The quantity of coal reserves is estimated on a saleable product basis, which takes into consideration of 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.
(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.
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 will be produced primarily using longwall systems. The mine will also use continuous miner units for longwall development and limited production.
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.
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 (DNRME), tenements are held as either EPC (Exploration Permit Coal), MDL (Mineral Development Licence) or ML (Mining Lease).
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).
Several factors can influence metallurgical coal supply and demand and pricing. Demand is impacted by economic conditions, government policies and demand for steel, and is also impacted by competing technologies used to make steel, some of which do not use coal as a manufacturing input.
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.
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, 2024. The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan.
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.
“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, 2024, its individually material mines are North Antelope Rochelle Mine (NARM), Wilpinjong Mine and Centurion Mine.
“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.
(5) The cut-off grade and metallurgical recovery are not limiting factors for the coal 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 infrastructures, and the base of weathering are the main limiting factors.
(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.
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 (ASTM) or Australian National Association of Testing Authorities (NATA).
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.
Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein. The changes for NARM and Wilpinjong from the previous years are not material, thus no updates for the TRSs are included in this filing.
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.
(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 basis. The range of variability of the moisture content in coal may affect the actual shipped Btu content.
(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.
The following tables summarize the Company’s estimated coal reserves and resources as of December 31, 2024. 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 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.
Coal is hauled by truck to one of five dump locations, where it is then crushed and conveyed to silos adjacent to rail load-outs 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.
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.
(6) Kcal/kg (kilocalories per kilogram) is the net calorific value (net heating value) of coal, except for the Wambo Opencut 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.
(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.
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 by which the primary cost is overburden removal.
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.
Production from the Centurion Coal Mine will be 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.
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 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 66kV transmission line, and water supply from captured surface runoff and deep wells.
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.
Centurion also has a nearby accommodation village with housing and service amenities for a capacity of 440 workers located 19km east of the mine. The mine’s workforce is drawn primarily from the townships of Moranbah, Nebo and Mackay.
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 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.
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.
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 $266 million at December 31, 2024.
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.
(1) Economic recoverability is based upon an estimated average sales price per ton of $14.57 for the five-year period ending December 31, 2029 and assumed escalation of 2.0% per annum during the subsequent period through the end of the LOM plan.
(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.
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 230kV and 69kV transmission lines, and water supply from a mine dewatering system and deep wells.
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.
(1) Economic recoverability is based upon product-specific estimated average sales prices per tonne of $61.36 for the five-year period ending December 31, 2029 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.
(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.
(2) The moisture condition for Seaborne Thermal segment coal quality is on an air-dry basis, except for the Wambo Opencut Mine, which is estimated on an as-shipped basis for coal reserves and an in situ moisture basis for coal resources.
(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.
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, 2024, all required licenses and permits were in place for the operations of Wilpinjong.
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.
Peabody Energy Corporation 2024 Form 10-K 44 Tab le 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.
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.
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 2024 Form 10-K 42 Tab le of Contents The Company is party to numerous U.S. federal coal leases that are administered by the U.S.
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.
The property, plant, equipment and mine development assets of Centurion Mine had a net book value of approximately $758 million at December 31, 2024. The mine’s operating equipment and facilities meet contemporary mining standards and are adequately maintained to execute the LOM plan.
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.
Reference should be made to the full text of the TRS, incorporated herein by reference, made a part of Peabody’s Annual Report on Form 10-K for the year ended December 31, 2021 and December 31, 2023 respectively, which was filed with the SEC on February 18, 2022 and February 23, 2024.
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.
As of December 31, 2024, the Company leased 1,610 acres of federal land in Alabama, 3,480 acres in Colorado, 282 acres in New Mexico and 38,915 acres in Wyoming, for a total of 44,287 acres nationwide subject to those limitations. The Company also leases coal-mining properties from various state governments in the U.S.
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.
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 (ML 1790 and ML 70495) with the intent to expand underground operations to the North of the North Goonyella Mine footprint and eventually extend into Dabin (MDL 3010).
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).
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. Mineral resource classifications are differentiated under subpart 1300 of Regulation S-K, in part, as follows: • Measured resource .
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 .
Routine maintenance, overhauls and necessary capital replacements are generally included in the LOM plan to support future production. While the mine was idled since 2018, 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.
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.
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 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.
NARM - SUMMARY OF COAL RESERVES (1) (Tons in millions) December 31, 2024 December 31, 2023 Coal Reserves (2)(3)(4) Tons %Ash %Sulfur Btu % Mine Yield (5) Tons Proven 1,212 4.6 0.2 8,900 100 % 1,261 Probable 88 4.7 0.2 8,910 100 % 103 Total 1,300 1,364 Year-over-year decrease (5) % The year-over-year decrease in the quantity of coal reserves was driven by production depletion.
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.
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.
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.
For the five-year period 2025 through 2029, the estimated sales prices for seaborne metallurgical mines are based upon estimated premium hard coking coal benchmark prices ranging from $200 to $215 per tonne. The estimated sales prices for seaborne thermal mines are based upon estimated Newcastle benchmark prices ranging from $100 to $121 per tonne for the same period.
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.
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 15GL capacity Burton Gorge Dam.
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.
For U.S. domestic thermal mines, the estimated sales prices for the same period range from approximately $10.25 to $70.00 per ton. Subsequent to 2029, for all mines, sales price escalation is assumed at 2.0% to 3.0% per annum through the end of each LOM plan.
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.
In December 2023, the mine was renamed the Centurion Mine. Development operations recommenced at the mine in June 2024, with Longwall operations scheduled to commence in early 2026. Centurion Mine will extract coal from the Goonyella Middle seam with future plans to extend into the Goonyella Lower B2 (GLB2) seam with mining depths ranging from 210 meters to 540 meters.
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 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. Peabody Energy Corporation 2024 Form 10-K 41 Tab le of Contents • Indicated resource.
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.
Peabody then acquired North Goonyella as part of an acquisition of RAG’s coal assets in April of 2004 and operated it until September of 2018, when a fire in the mine halted operations. The mine has been idled since that time while plans to re-initiate production with regulatory approval were developed.
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.
Peabody Energy Corporation 2024 Form 10-K 54 Tab le of Contents The tables below present Centurion Mine’s estimated coal reserves and resources at December 31, 2024, along with comparative quantities at December 31, 2023. These coal reserve and resource estimates were supported by the analyses of 2,065 total drill holes within the coal lease area.
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.
Peabody Energy Corporation 2024 Form 10-K 55 Tab le of Contents 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.
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.
Summary of Coal Reserves and Resources Peabody controlled an estimated 2.1 billion tons of coal reserves and 3.6 billion tons of coal resources as of December 31, 2024. Approximately 97% of the Company’s coal reserves and 96% of the Company’s coal resources are held under lease, and the remainder is held through fee ownership.
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.
Peabody Energy Corporation 2024 Form 10-K 53 Tab le of Contents 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.
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.
(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.
(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.
As of December 31, 2024, 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.
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.
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.
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 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 (CHPP) and nearby accommodation village, following the grant of ML6949 in 1991.
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.
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.
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.
The resource is limited by a maximum of 50% raw ash (air-dry basis). Due to the relatively consistent coal thickness and shallow depth, no other geological limiting factors are applied except for known geological anomalies such as paleochannels and igneous intrusion. (5) The quality of coal reserves is based on an air-dry basis.
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.
Routine maintenance, overhauls, and necessary capital replacements are generally included in the LOM plan to support future production. Peabody Energy Corporation 2024 Form 10-K 49 Tab le of Contents The table below presents NARM coal reserve estimates at December 31, 2024, along with comparative quantities at December 31, 2023.
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.
Peabody Energy Corporation 2024 Form 10-K 43 Tab le of Contents Internationally, thermal coal-fueled generation also competes with alternative forms of electricity generation. The competitiveness and availability of generation fueled by natural gas, oil, nuclear, hydro, wind, solar and biomass vary by country and region and can have a meaningful impact on coal pricing.
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.
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 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.
(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 doesn’t take into consideration coal loss during mining and processing.
(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.
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.
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.
NARM did not hold any coal resources as of December 31, 2024. These coal reserve estimates were supported by the analyses of 4,884 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.
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.
CENTURION MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1) (Tons in millions) December 31, 2024 December 31, 2023 Coal Reserves (2)(5)(6) Tons %Ash %Sulfur %VM % Mine Yield (7) Tons Proven 84 8.0 0.5 21.7 81 % 46 Probable 107 7.8 0.5 20.6 82 % 23 Total 191 69 Year-over-year increase 177 % December 31, 2024 December 31, 2023 Coal Resources (2)(3)(4)(5) Tons %Ash %Sulfur VM% Tons Measured 96 20.7 0.5 21.9 — Indicated 485 17.9 0.5 19.6 2 Measured and indicated 581 18.4 0.5 20.0 2 Inferred 286 21.1 0.5 18.9 8 Total 867 10 The year-over-year increase in the quantity of coal reserves and resources was driven by the Wards Well acquisition in April 2024.
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.
Centurion Coking coal is a premium Hard Coking Coal (PHCC) with a mature brand name in the seaborne metallurgical marketplace and is well known in both the Atlantic and Pacific seaborne markets.
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.
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.
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.
Peabody Energy Corporation 2024 Form 10-K 45 Tab le of Contents SUMMARY COAL RESERVES AT END OF THE FISCAL YEAR ENDED DECEMBER 31, 2024 (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 43 24.5 0.5 5,927 3 32.9 0.4 5,208 46 25.0 0.5 5,880 100 % Wambo Opencut (9) AUS NSW P S T/C 27 11.3 0.3 6,412 2 11.1 0.3 6,434 29 11.3 0.3 6,414 50 % Wambo Underground AUS NSW P U T/C 1 12.2 0.4 6,473 — — — — 1 12.2 0.4 6,473 100 % South Wambo AUS NSW E U T/C — — — — 74 9.8 0.3 7,034 74 9.8 0.3 7,034 100 % Total 71 79 150 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 13 9.6 0.7 30.4 3 9.6 0.7 30.4 16 9.6 0.7 30.4 100 % Coppabella AUS QLD P S P 6 9.0 0.2 9.9 32 9.6 0.2 10.4 38 9.5 0.2 10.3 73.3 % Moorvale AUS QLD P S C/P/T 6 11.1 0.3 17.0 — — — — 6 11.1 0.3 17.0 73.3 % Metropolitan AUS NSW P U C/P/T 1 11.5 0.4 18.9 10 11.8 0.4 18.8 11 11.8 0.4 18.8 100 % Centurion AUS QLD D U C 84 8.0 0.5 21.7 107 7.8 0.5 20.6 191 7.9 0.5 21.1 100 % Middlemount (9) AUS QLD P S C/P 25 10.3 0.4 18.0 10 10.3 0.4 18.0 35 10.3 0.4 18.0 50.0 % Total 135 162 297 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 1,212 4.6 0.2 8,900 88 4.7 0.2 8,910 1,300 4.6 0.2 8,900 100 % Caballo USA WY P S T 136 5.2 0.3 8,470 32 5.7 0.4 8,305 168 5.3 0.3 8,440 100 % Rawhide USA WY P S T 78 5.7 0.3 8,285 2 5.3 0.3 8,360 80 5.7 0.3 8,290 100 % Total 1,426 122 1,548 Other U.S.
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.
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.
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.
(7) Mine yield is the ratio of estimated saleable product coal over ROM coal tons with mainly processing loss considered. Peabody Energy Corporation 2024 Form 10-K 52 Tab le of Contents Centurion Mine The Centurion Mine is an underground longwall metallurgical coal mine located 160 kilometers WSW of Mackay, Queensland, Australia.
(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.
(7) Mine yield is the ratio of estimated saleable product coal over ROM coal tons with mainly processing loss considered. 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.
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.
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 75 14.9 3.8 10,800 81 16.6 3.7 10,485 156 15.8 3.8 10,635 25 15.7 3.5 10,645 100 % Francisco Underground USA IN P U T 6 14.0 5.3 11,245 5 13.5 5.4 11,310 11 13.8 5.3 11,270 — — — — 100 % Gateway North USA IL P U T 29 12.8 4.0 10,603 15 12.9 4.0 10,606 44 12.9 4.0 10,604 — — — — 100 % Lee Ranch USA NM P S T 1 12.4 1.1 10,038 6 11.8 1.0 10,044 7 11.9 1.0 10,043 3 13.4 1.2 9,787 100 % Wild Boar USA IN P S T — — — — 3 11.7 5.5 11,390 3 11.7 5.5 11,390 1 12.1 5.3 11,290 100 % Total 111 110 221 29 Grand total 1,312 1,463 2,775 870 Peabody Energy Corporation 2024 Form 10-K 47 Tab le of Contents (1) The sales price assumptions supporting economic recoverability vary depending upon factors such as coal quality and existing customer volume commitments.
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.
The year-over-year increase in the quantity of coal resources was driven by inclusion of areas with the lease EL9399.
The year-over-year decrease in the quantity of coal resources was mainly driven by conversion of coal resources to reserves within EL9399.
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.
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.
WILPINJONG MINE - SUMMARY OF COAL RESERVES AND RESOURCES (1) (Tons in millions) December 31, 2024 December 31, 2023 Coal Reserves (5)(6) Tons %Ash %Sulfur Kcal/kg % Mine Yield (7) Tons Proven 43 24.5 0.5 5,927 84 % 54 Probable 3 32.9 0.4 5,208 84 % 3 Total 46 57 Year-over-year decrease (19) % December 31, 2024 December 31, 2023 Coal Resources (2)(3)(4) Tons %Ash %Sulfur Kcal/kg Tons Measured 137 23.4 0.5 6,018 103 Indicated 59 25.3 0.5 5,872 25 Measured and indicated 196 24.0 0.5 5,974 128 Inferred 9 26.5 0.5 5,767 6 Total 205 134 The year-over-year decrease in the quantity of coal reserves was driven by production depletion.
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.
Mined coal will be processed through the on-site wash plant and conveyed to rail loadout facilities. Product coal will be loaded to train via an existing 1,000t Train Loadout Bin.
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.
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. Generally, the leases continue indefinitely with periodic renewal, provided there is diligent coal production or other development within the lease area.
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.
Peabody Energy Corporation 2024 Form 10-K 48 Tab le of Contents North Antelope Rochelle Mine The 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 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 2024 Form 10-K 51 Tab le of Contents The tables below present Wilpinjong Mine’s estimated coal reserves and resources at December 31, 2024, along with comparative quantities at December 31, 2023. These coal reserve and resource estimates were supported by the analyses of 1,271 total drill holes within the coal lease area.
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.
NARM began operations in 1999 after Peabody combined its interests in the formerly separate North Antelope Mine and Rochelle Mine. NARM extracts coal from the Wyodak-Anderson coal seam, which ranges from 60- to 80-feet thick and lies from 100 to 400 feet below the surface in the mining area.
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.
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Policy and regulations, which vary from country to country, can also influence prices.
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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.
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In addition to quantity, the table presents selected key quality parameters on an as-shipped basis.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePeabody Energy Corporation 2024 Form 10-K 56 Tab le of Contents Share Relinquishments The Company routinely allows employees to relinquish Common Stock to pay estimated taxes upon the vesting of restricted stock units and the payout of performance units that are settled in Common Stock under its equity incentive plans.
Biggest changeShare Relinquishments The Company routinely allows employees to relinquish Common Stock to pay estimated taxes upon the vesting of restricted stock units and the payout of performance units that are settled in Common Stock under its equity incentive plans.
Share Repurchase Program On April 17, 2023, the Company announced that its Board of Directors authorized a new share repurchase program (2023 Repurchase Program) authorizing repurchases of up to $1.0 billion of its common stock. The 2023 Repurchase Program superseded and replaced the previous repurchase program that had been announced in 2017.
Share Repurchase Program On April 17, 2023, the Company announced that its Board of Directors authorized a share repurchase program (2023 Repurchase Program) authorizing repurchases of up to $1.0 billion of its common stock. The 2023 Repurchase Program superseded and replaced the previous repurchase program that had been announced in 2017.
Stock Performance Graph The following performance graph compares the cumulative total return on Peabody’s common stock with the cumulative total return of the S&P MidCap 400 Index and the S&P Metals and Mining Select Industry Index. The graph assumes that the value of the investment in BTU and each index was $100 at December 31, 2019.
Stock Performance Graph The following performance graph compares the cumulative total return on Peabody’s common stock with the cumulative total return of the S&P MidCap 400 Index and the S&P Metals and Mining Select Industry Index. The graph assumes that the value of the investment in BTU and each index was $100 at December 31, 2020.
Because such DTC participants are brokers and other institutions holding shares of Peabody’s Common Stock on behalf of their customers, the Company does not know the actual number of unique shareholders represented by these record holders.
Because such DTC participants are brokers and other institutions holding shares of Peabody’s Common Stock on behalf of their customers, the Company does not know the actual number of unique stockholders represented by these record holders.
Through December 31, 2024, the Company had repurchased 23.8 million shares of its common stock under the 2023 Repurchase Program for $530.8 million, which included commissions paid of $0.4 million, leaving $469.6 million available for share repurchase. Dividends During the year ended December 31, 2024, the Company declared dividends per share of $0.300.
Through December 31, 2025, the Company repurchased 23.8 million shares of its common stock under the 2023 Repurchase Program for $530.8 million (which included commissions paid of $0.4 million), leaving $469.6 million available for share repurchase. Dividends During the year ended December 31, 2025, the Company declared dividends per share of $0.300.
The graph also assumes that all dividends were reinvested and that the investments were held through December 31, 2024.
The graph also assumes that all dividends were reinvested and that the investments were held through December 31, 2025.
Peabody’s Common Stock is listed on the New York Stock Exchange, under the symbol “BTU.” As of February 14, 2025 there were 170 holders of the Company’s Common Stock, as determined by counting its record holders and the number of participants reflected in a security position listing provided to the Company by the Depository Trust Company (DTC).
Peabody’s Common Stock is listed on the New York Stock Exchange, under the symbol “BTU.” As of February 13, 2026 there were 187 holders of the Company’s Common Stock, as determined by counting its record holders and the number of participants reflected in a security position listing provided to the Company by the Depository Trust Company (DTC).
Purchases of Equity Securities The following table summarizes all share purchases for the three months ended December 31, 2024: Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Dollar Value of Shares that May Yet Be Used to Repurchase Shares Under the Publicly Announced Program (In millions) October 1 through October 31, 2024 57 $ 26.32 — $ 469.6 November 1 through November 30, 2024 151 26.48 — 469.6 December 1 through December 31, 2024 — — — 469.6 Total 208 26.44 — (1) Includes shares withheld to cover the withholding taxes upon the vesting of equity awards, which are not a part of the Repurchase Program Repurchase Program.
Purchases of Equity Securities The following table summarizes all share purchases for the three months ended December 31, 2025: Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Dollar Value of Shares that May Yet Be Used to Repurchase Shares Under the Publicly Announced Program (In millions) October 1 through October 31, 2025 333 $ 27.57 — $ 469.6 November 1 through November 30, 2025 — — — 469.6 December 1 through December 31, 2025 — — — 469.6 Total 333 27.57 — (1) Includes shares withheld to cover the withholding taxes upon the vesting of equity awards, which are not a part of the Repurchase Program Repurchase Program.
These indices are included for comparative purposes only and do not necessarily reflect management's opinion that such indices are an appropriate measure of the relative performance of the stock involved and are not intended to forecast or be indicative of possible future performance of the common stock. Peabody Energy Corporation 2024 Form 10-K 57 Tab le of Contents Item 6.
These indices are included for comparative purposes only and do not necessarily reflect management's opinion that such indices are an appropriate measure of the relative performance of the stock involved and are not intended to forecast or be indicative of possible future performance of the common stock. Peabody Energy Corporation 2025 Form 10-K 55 Table of Contents Item 6. Reserved.
Under the 2023 Repurchase Program, the Company may purchase shares of common stock from time to time at the discretion of management through open market purchases, privately negotiated transactions, block trades, accelerated or other structured share repurchase programs, or other means.
Peabody Energy Corporation 2025 Form 10-K 54 Table of Contents Under the 2023 Repurchase Program, the Company may purchase shares of common stock from time to time at the discretion of management through open market purchases, privately negotiated transactions, block trades, accelerated or other structured share repurchase programs, or other means.
On February 6, 2025, the Company declared an additional dividend per share of $0.075 to be paid on March 11, 2025 to shareholders of record as of February 19, 2025.
On February 5, 2026, the Company declared an additional dividend per share of $0.075 to be paid on March 10, 2026 to shareholders of record as of February 23, 2026.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeChanges in amortization of basis difference related to equity affiliates 1.8 1.6 0.2 12.5 % Interest expense, net of capitalized interest (46.9) (59.8) 12.9 21.6 % Net loss on early debt extinguishment — (8.8) 8.8 100.0 % Interest income 71.0 76.8 (5.8) (7.6) % Net mark-to-market adjustment on actuarially determined liabilities 6.1 0.3 5.8 1,933.3 % Unrealized gains on derivative contracts related to forecasted sales — 159.0 (159.0) (100.0) % Unrealized (losses) gains on foreign currency option contracts (9.0) 7.4 (16.4) (221.6) % Take-or-pay contract-based intangible recognition 3.0 2.5 0.5 20.0 % Income tax provision (108.8) (308.8) 200.0 64.8 % Income from continuing operations, net of income taxes $ 407.3 $ 816.0 $ (408.7) (50.1) % (1) This is a financial measure not recognized in accordance with U.S.
Biggest change(Loss) Income From Continuing Operations, Net of Income Taxes The following table presents (loss) income from continuing operations, net of income taxes: (Decrease) Increase to Income Year Ended December 31, 2025 2024 $ % (Dollars in millions) Adjusted EBITDA (1) $ 454.9 $ 871.7 $ (416.8) (47.8) % Depreciation, depletion and amortization (384.5) (343.0) (41.5) (12.1) % Asset retirement obligation expenses (36.5) (48.9) 12.4 25.4 % Restructuring charges (9.5) (4.4) (5.1) (115.9) % Costs related to terminated acquisition (78.9) (10.3) (68.6) (666.0) % Shoal Creek insurance recovery - property damage — 28.7 (28.7) (100.0) % Changes in amortization of basis difference related to equity affiliates 2.7 1.8 0.9 50.0 % Other operating loss (5.6) (3.7) (1.9) (51.4) % Interest expense, net of capitalized interest (43.9) (46.9) 3.0 6.4 % Interest income 55.4 71.0 (15.6) (22.0) % Net mark-to-market adjustment on actuarially determined liabilities 5.4 6.1 (0.7) (11.5) % Unrealized gains (losses) on foreign currency option contracts 6.0 (9.0) 15.0 166.7 % Take-or-pay contract-based intangible recognition 1.0 3.0 (2.0) (66.7) % Income tax provision (8.8) (108.8) 100.0 91.9 % (Loss) income from continuing operations, net of income taxes $ (42.3) $ 407.3 $ (449.6) (110.4) % (1) This is a financial measure not recognized in accordance with U.S.
The mines in that segment are characterized by a mix of surface and underground mining extraction processes, coal with a higher sulfur content and Btu and lower customer transportation costs (due to shorter shipping distances). Geologically, the Company’s Powder River Basin operations mine sub-bituminous coal deposits and its Other U.S. Thermal operations mine both bituminous and sub-bituminous coal deposits.
The mines in that reportable segment are characterized by a mix of surface and underground mining extraction processes, coal with a higher sulfur content and Btu and lower customer transportation costs (due to shorter shipping distances). Geologically, the Company’s Powder River Basin operations mine sub-bituminous coal deposits and its Other U.S. Thermal operations mine both bituminous and sub-bituminous coal deposits.
The mines in that segment are characterized by surface mining extraction processes, coal with a lower sulfur content and Btu and higher customer transportation costs (due to longer shipping distances). The Company’s Other U.S. Thermal operations reflect the aggregation of its Illinois, Indiana, New Mexico and Colorado mining operations.
The mines in that reportable segment are characterized by surface mining extraction processes, coal with a lower sulfur content and Btu and higher customer transportation costs (due to longer shipping distances). The Company’s Other U.S. Thermal operations reflect the aggregation of its Illinois, Indiana, New Mexico and Colorado mining operations.
The Company was not required to post cash collateral under the securitization program at December 31, 2024. The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028. Other Requirements The Company will incur significant future cash outflows for certain liabilities related to its prior mining activities and former employees.
The Company was not required to post cash collateral under the securitization program at December 31, 2025. The accounts receivable securitization program was amended in January 2025 to extend its maturity to January 2028. Other Requirements The Company will incur significant future cash outflows for certain liabilities related to its prior mining activities and former employees.
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.
Revolving Credit Facility 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 Revolving Loans bear interest at a secured overnight financing rate (SOFR) plus an applicable margin ranging from 3.50% to 4.25%, depending on the Company’s total net leverage ratio (as defined under the 2024 Credit Agreement) or a base rate plus an applicable margin ranging from 2.50% to 3.25%, at the Company’s option.
The Revolving Loans bear interest at a secured overnight financing rate plus an applicable margin ranging from 3.50% to 4.25%, depending on the Company’s total net leverage ratio (as defined under the 2024 Credit Agreement) or a base rate plus an applicable margin ranging from 2.50% to 3.25%, at the Company’s option.
The Company classifies its seaborne mines within the Seaborne Thermal or Seaborne Metallurgical segments based on the primary customer base and coal reserve type of each mining operation. A small portion of the coal mined by the Seaborne Thermal segment is of a metallurgical grade.
The Company classifies its seaborne mines within the Seaborne Thermal or Seaborne Metallurgical reportable segments based on the primary customer base and coal reserve type of each mining operation. A small portion of the coal mined by the Seaborne Thermal reportable segment is of a metallurgical grade.
The amendment extended the agreement through December 31, 2026. In order to maintain the maximum collateral agreement, the Company must remain compliant with a minimum liquidity test and a maximum net leverage ratio, as measured each quarter.
The 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.
Similarly, a small portion of the coal mined by the Seaborne Metallurgical segment is of a thermal grade. Additionally, the Company may market some of its metallurgical coal products as a thermal coal product from time to time depending on market conditions.
Similarly, a small portion of the coal mined by the Seaborne Metallurgical reportable segment is of a thermal grade. Additionally, the Company may market some of its metallurgical coal products as a thermal coal product from time to time depending on market conditions.
(3) Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, results from the Company’s equity method investment in renewable energy joint ventures, costs associated with suspended operations including the Centurion Mine, the impact of foreign currency remeasurement and expenses related to the Company’s other commercial activities.
(3) Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, results from the Company’s equity method investment in renewable energy joint ventures, costs associated with suspended operations, holding costs associated with the Centurion Mine, the impact of foreign currency remeasurement and expenses related to the Company’s other commercial activities.
The Company’s thermal operating segments in the U.S. are focused on the mining, preparation and sale of thermal coal, sold primarily to electric utilities in the U.S. under long-term contracts, with a relatively small portion sold as international exports as conditions warrant. The Company’s Powder River Basin operations consist of its mines in Wyoming.
The Company’s thermal operations in the U.S. are focused on the mining, preparation and sale of thermal coal, sold primarily to electric utilities in the U.S. under long-term contracts, with a relatively small portion sold as international exports as conditions warrant. The Company’s Powder River Basin operations consist of its mines in Wyoming.
Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, as displayed in the reconciliations below.
Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the reportable segments’ operating performance, as displayed in the reconciliations below.
The Company includes the interest component of any litigation-related penalties within “Interest expense” in its consolidated statements of operations. See Note 21. “Commitments and Contingencies” to the accompanying consolidated financial statements for further discussion of the Company’s contingent liabilities. Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented See Note 1.
The Company includes the interest component of any litigation-related penalties within “Interest expense” in its consolidated statements of operations. See Note 20. “Commitments and Contingencies” to the accompanying consolidated financial statements for further discussion of the Company’s contingent liabilities. Newly Adopted Accounting Standards and Accounting Standards Not Yet Implemented See Note 1.
The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Asset Retirement Obligations.
From time to time, the Company may repatriate profits from its foreign subsidiaries to the U.S. in the form of intercompany dividends. During the year ended December 31, 2024, no profits from foreign subsidiaries were repatriated.
From time to time, the Company may repatriate profits from its foreign subsidiaries to the U.S. in the form of intercompany dividends. During the year ended December 31, 2025, no profits from foreign subsidiaries were repatriated.
The seaborne pricing included in the table below is not necessarily indicative of the pricing the Company realized during the year ended December 31, 2024 due to quality differentials and a portion of its seaborne sales being executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized.
The seaborne pricing included in the table above is not necessarily indicative of the pricing the Company realized during the year ended December 31, 2025 due to quality differentials and a portion of its seaborne sales being executed through annual and multi-year international coal supply agreements that contain provisions requiring both parties to renegotiate pricing periodically, with spot, index and quarterly sales arrangements also utilized.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The Company’s discussion and analysis of the year ended December 31, 2024 compared to the year ended December 31, 2023 is included herein.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The Company’s discussion and analysis of the year ended December 31, 2025 compared to the year ended December 31, 2024 is included herein.
For discussion and analysis of the year ended December 31, 2023 compared to the year ended December 31, 2022, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Peabody’s Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 23, 2024 and is incorporated by reference herein.
For discussion and analysis of the year ended December 31, 2024 compared to the year ended December 31, 2023, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Peabody’s Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 20, 2025 and is incorporated by reference herein.
The agreement requires the Company to provide cash collateral at a level of 103% of the aggregate amount of letters of credit outstanding under the arrangement (limited to $5.0 million total excess collateralization.) Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum.
The initial agreement required the Company to provide cash collateral at a level of 103% of the aggregate amount of letters of credit outstanding under the arrangement (limited to $5.0 million total excess collateralization.) Outstanding letters of credit bear a fixed fee in the amount of 0.75% per annum.
The decrease in net income attributable to noncontrolling interests during the year ended December 31, 2024 compared to the prior year period was primarily due to a decline in the financial results of Peabody’s majority-owned Wambo operations in which there is an outside non-controlling interest.
The decrease in net income attributable to noncontrolling interests during the year ended December 31, 2025 compared to the prior year period was primarily due to a decline in the financial results of Peabody’s majority-owned Wambo operation in which there is an outside non-controlling interest.
In the U.S., the pricing included in the table below is also not necessarily indicative of the pricing the Company realized during the year ended December 31, 2024 since the Company generally sells coal under long-term contracts where pricing is determined based on various factors.
In the U.S., the pricing included in the table above is also not necessarily indicative of the pricing the Company realized during the year ended December 31, 2025 since the Company generally sells coal under long-term contracts where pricing is determined based on various factors.
Funding capacity under the program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization. At December 31, 2024, the Company had no outstanding borrowings and $60.4 million of letters of credit outstanding under the program.
Funding capacity under the program may also be utilized for letters of credit in support of other obligations, which has been the Company’s primary utilization. At December 31, 2025, the Company had no outstanding borrowings and $63.4 million of letters of credit outstanding under the program.
No impairment charges related to long-lived assets were recorded for the year ended December 31, 2024.
No impairment charges related to long-lived assets were recorded for the year ended December 31, 2025.
At December 31, 2024, the Company’s reclamation bonding requirements were supported by approximately $700 million of restricted cash and other balances serving as collateral, which substantially supports the financial liability for final mine reclamation as calculated in accordance with U.S. GAAP. Guarantees and Other Financial Instruments with Off-Balance Sheet Risk. See Note 20.
At December 31, 2025, the Company’s reclamation bonding requirements were supported by approximately $740 million of restricted cash and other balances serving as collateral, which substantially supports the financial liability for final mine reclamation as calculated in accordance with U.S. GAAP. Guarantees and Other Financial Instruments with Off-Balance Sheet Risk. See Note 19.
The Company’s primary uses of cash include the cash costs of coal production, capital expenditures, coal reserve lease and royalty payments, debt service costs, finance and operating lease payments, postretirement plans, take-or-pay obligations, post-mining reclamation obligations, collateral and margining requirements, dividends, share repurchases and selling and administrative expenses. The Company has also used cash for early debt retirements.
The Company’s primary uses of cash include the cash costs of coal production, capital expenditures, coal reserve lease and royalty payments, debt service costs, finance and operating lease payments, early debt retirements, postretirement plans, take-or-pay obligations, post-mining reclamation obligations, collateral requirements, dividends, share repurchases and selling and administrative expenses.
Peabody accrues for legal and environmental matters within “Operating costs and expenses” when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
Peabody accrues for legal and environmental matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
Peabody Energy Corporation 2024 Form 10-K 72 Tab le of Contents Cash paid for interest, net of capitalized interest related to the Company’s indebtedness and financial assurance instruments amounted to $37.6 million, $61.9 million and $118.5 million during the years ended December 31, 2024, 2023, and 2022, respectively. 2028 Convertible Notes On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $320.0 million.
Peabody Energy Corporation 2025 Form 10-K 69 Table of Contents The Company paid cash of $39.5 million, $37.6 million and $61.9 million during the years ended December 31, 2025, 2024, and 2023, respectively, for interest, net of capitalized interest, related to the Company’s indebtedness and financial assurance instruments. 2028 Convertible Notes On March 1, 2022, through a private offering, the Company issued the 2028 Convertible Notes in the aggregate principal amount of $320.0 million.
Peabody’s Seaborne Thermal and Seaborne Metallurgical segments contributed approximately 70% of the Company’s total Adjusted EBITDA from its mining operations during the year ended December 31, 2024. The Company’s Seaborne Thermal operations consist of mines in New South Wales, Australia. The mines in that segment utilize both surface and underground extraction processes to mine low-sulfur, high Btu thermal coal.
Peabody’s Seaborne Thermal and Seaborne Metallurgical reportable segments contributed approximately 53% of the Company’s total Adjusted EBITDA from its mining operations during the year ended December 31, 2025. The Company’s Seaborne Thermal operations consist of mines in New South Wales, Australia. The mines in that reportable segment utilize surface extraction processes to mine low-sulfur, high Btu thermal coal.
Planned Acquisition On November 25, 2024, Peabody entered into definitive agreements with Anglo, to acquire a portion of the assets and businesses associated with Anglo’s metallurgical coal portfolio in Australia, including 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, Dawson South, Dawson South Exploration and Theodore South exploration mines, collectively, the Dawson Assets).
Arbitration Relating to Terminated Anglo Acquisition On November 25, 2024, Peabody entered into Purchase Agreements with Anglo, to acquire 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).
If foreign-held cash is repatriated in the future, the Company does not expect restrictions or potential taxes will have a material effect to its near-term liquidity. The Company’s available liquidity increased to $1,072.5 million as of December 31, 2024 from $1,059.7 million as of December 31, 2023.
If foreign-held cash is repatriated in the future, the Company does not expect restrictions or potential taxes will have a material effect to its near-term liquidity. The Company’s available liquidity decreased to $942.1 million as of December 31, 2025 from $1,072.5 million as of December 31, 2024.
Peabody’s Powder River Basin and Other U.S. Thermal segments contributed approximately 30% of the Company’s total Adjusted EBITDA from its mining operations during the year ended December 31, 2024.
Peabody’s Powder River Basin and Other U.S. Thermal reportable segments contributed approximately 47% of the Company’s total Adjusted EBITDA from its mining operations during the year ended December 31, 2025.
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 $495.5 million at December 31, 2024.
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 $487.3 million at December 31, 2025.
Peabody Energy Corporation 2024 Form 10-K 68 Tab le of Contents Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA is defined as income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization.
Peabody Energy Corporation 2025 Form 10-K 65 Table of Contents Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA is defined as (loss) income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization.
December 31, Debt Instrument (defined below, as applicable) 2024 2023 (Dollars in millions) 3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) $ 320.0 $ 320.0 BUMA Loan Note 9.3 — Finance lease obligations 25.1 22.3 Less: Debt issuance costs (6.3) (8.1) 348.1 334.2 Less: Current portion of long-term debt 15.8 13.5 Long-term debt $ 332.3 $ 320.7 The Company’s indebtedness requires estimated contractual principal and interest payments, assuming interest rates in effect at December 31, 2024, of approximately $27 million in 2025, $18 million in 2026, $13 million in 2027, $326 million in 2028, less than $1 million in 2029 and $9 million thereafter.
December 31, Debt Instrument (defined below, as applicable) 2025 2024 (Dollars in millions) 3.250% Convertible Senior Notes due March 2028 (2028 Convertible Notes) $ 320.0 $ 320.0 BUMA Loan Note — 9.3 Finance lease obligations 20.8 25.1 Less: Debt issuance costs (4.4) (6.3) 336.4 348.1 Less: Current portion of long-term debt 15.2 15.8 Long-term debt $ 321.2 $ 332.3 The Company’s indebtedness requires estimated contractual principal and interest payments, assuming interest rates in effect at December 31, 2025, of approximately $25 million in 2026, $16 million in 2027, $327 million in 2028 and less than $1 million in 2029 and thereafter.
Amortization associated with the Company’s asset retirement obligation assets of $20.8 million for the year ended December 31, 2024 was included in “Depreciation, depletion and amortization” in the Company’s consolidated statements of operations.
Amortization associated with the Company’s asset retirement obligation assets of $25.0 million for the year ended December 31, 2025 was included in “Depreciation, depletion and amortization” in the Company’s consolidated statements of operations.
The Company considers all measures reported on a per ton basis to be operating/statistical measures; however, the Company includes reconciliations of the related non-GAAP financial measures (Adjusted EBITDA and Total Segment Costs) in the “Reconciliation of Non-GAAP Financial Measures” section contained within this Item 7. Peabody believes non-GAAP measures are used by investors to measure its operating performance.
The Company considers all measures reported on a per ton basis to be operating/statistical measures; however, the Company includes reconciliations of the related non-GAAP financial measures (Adjusted EBITDA and Total Segment Costs) in the “Reconciliation of Non-GAAP Financial Measures” section contained within this Item 7.
Tons Sold The following table presents tons sold by operating segment: Increase (Decrease) Year Ended December 31, to Volumes 2024 2023 Tons % (Tons in millions) Seaborne Thermal 16.4 15.5 0.9 5.8 % Seaborne Metallurgical 7.3 6.9 0.4 5.8 % Powder River Basin 79.6 87.2 (7.6) (8.7) % Other U.S.
Tons Sold The following table presents tons sold: (Decrease) Increase Year Ended December 31, to Volumes 2025 2024 Tons % (Tons in millions) Seaborne Thermal 15.4 16.4 (1.0) (6.1) % Seaborne Metallurgical 8.6 7.3 1.3 17.8 % Powder River Basin 84.5 79.6 4.9 6.2 % Other U.S.
The gain recorded during the year ended December 31, 2024 was driven by the favorable impacts of changes for the postretirement benefit plans related to updated claims experience ($12.4 million) and increases to the discount rates for all actuarially determined liabilities ($5.7 million).
Peabody Energy Corporation 2025 Form 10-K 64 Table of Contents The gain recorded during the year ended December 31, 2024 was driven by the favorable impacts of changes for the postretirement benefit plans related to updated claims experience ($12.4 million) and increases to the discount rates for all actuarially determined liabilities ($5.7 million).
Covenant Compliance The Company was compliant with all relevant covenants under its debt and other finance agreements at December 31, 2024. Cash Flows The following table summarizes the Company’s cash flows for the years ended December 31, 2024 and 2023, as reported in the accompanying consolidated financial statements.
Covenant Compliance The Company was compliant with all relevant covenants under its debt and other finance agreements at December 31, 2025. Peabody Energy Corporation 2025 Form 10-K 70 Table of Contents Cash Flows The following table summarizes the Company’s cash flows for the years ended December 31, 2025 and 2024, as reported in the accompanying consolidated financial statements.
Such cash flows pertain to postretirement benefit plans, work-related injuries and illnesses, defined benefit pension plans, mine reclamation and end-of-mine closure costs and exploration obligations and are estimated to amount to approximately $100 million in 2025, $100 million in 2026, $150 million in 2027, $90 million in 2028, $140 million in 2029 and $1,275 million thereafter.
Such cash flows pertain to postretirement benefit plans, work-related injuries and illnesses, defined benefit pension plans, mine reclamation and end-of-mine closure costs and exploration obligations and are estimated to amount to approximately $110 million in 2026, $90 million in 2027, $85 million in 2028, $65 million in 2029, $75 million in 2030 and $1,318 million thereafter.
Peabody Energy Corporation 2024 Form 10-K 75 Tab le of Contents Asset Retirement Obligations. The Company’s asset retirement obligations primarily consist of spending estimates for surface land reclamation and support facilities at both surface and underground mines in accordance with applicable reclamation laws and regulations in the U.S. and Australia as defined by each mining permit.
The Company’s asset retirement obligations primarily consist of spending estimates for surface land reclamation and support facilities at both surface and underground mines in accordance with applicable reclamation laws and regulations in the U.S. and Australia as defined by each mining permit.
As of December 31, 2024, Peabody controlled approximately 2.1 billion tons of proven and probable coal reserves, 3.6 billion tons of coal resources and approximately 345,000 acres of surface property through ownership and lease agreements.
As of December 31, 2025, Peabody controlled approximately 2.0 billion tons of proven and probable coal reserves, 3.5 billion tons of coal resources and approximately 335,000 acres of surface property through ownership and lease agreements.
The 2024 Credit Agreement is secured by substantially all assets of the Company and its U.S. subsidiaries, as well as a pledge of two Australian subsidiaries. Capital Expenditures For 2025, the Company is targeting total capital expenditures of approximately $450 million.
The 2024 Credit Agreement is secured by substantially all assets of the Company and its U.S. subsidiaries, as well as a pledge of two Australian subsidiaries. Capital Expenditures For 2026, the Company is targeting total capital expenditures of approximately $340 million. Indebtedness The Company’s total indebtedness as of December 31, 2025 and 2024 is presented in the table below.
Peabody Energy Corporation 2024 Form 10-K 73 Tab le of Contents The Company has various short- and long-term take-or-pay arrangements in Australia and the U.S. associated with rail and port commitments for the delivery of coal, including amounts relating to export facilities.
The Company has various short- and long-term take-or-pay arrangements in Australia and the U.S. associated with rail and port commitments for the delivery of coal, including amounts relating to export facilities.
The Company evaluates its long-lived assets held and used in operations for impairment as events and changes in circumstances indicate that the carrying amount of such assets might not be recoverable.
Peabody Energy Corporation 2025 Form 10-K 72 Table of Contents Impairment of Long-Lived Assets. The Company evaluates its long-lived assets held and used in operations for impairment as events and changes in circumstances indicate that the carrying amount of such assets might not be recoverable.
Asset retirement obligation expense, consisting of both accretion expense and changes in estimates for the Company’s inactive locations, for the year ended December 31, 2024 was $48.9 million and payments totaled $51.7 million. See Note 12. “Asset Retirement Obligations” to the accompanying consolidated financial statements for additional information regarding the Company’s asset retirement obligations. Impairment of Long-Lived Assets.
Asset retirement obligation expense, consisting of both accretion expense and changes in estimates for the Company’s inactive locations, for the year ended December 31, 2025 was $36.5 million and payments totaled $51.2 million. See Note 11. “Asset Retirement Obligations” to the accompanying consolidated financial statements for additional information regarding the Company’s asset retirement obligations.
The Company’s Corporate and Other segment includes selling and administrative expenses, results from equity method investments, trading and brokerage activities, minimum charges on certain transportation-related contracts, the closure of inactive mining sites, the impact of foreign currency remeasurement and certain commercial matters. Peabody Energy Corporation 2024 Form 10-K 59 Tab le of Contents Resource Management.
Corporate and Other includes selling and administrative expenses, results from equity method investments, trading and brokerage activities, minimum charges on certain transportation-related contracts, the closure of inactive mining sites, the impact of foreign currency remeasurement and certain commercial matters. Resource Management.
The Company is in compliance with such requirements at December 31, 2024. At December 31, 2024, the Company’s maximum aggregate collateral amount was $522.0 million, which was comprised of $394.6 million in trust accounts and letters of credit of $127.4 million held for the benefit of certain surety providers.
The Company is in compliance with such requirements at December 31, 2025. At December 31, 2025, the Company’s maximum aggregate collateral amount was $509.9 million, which was comprised of $383.6 million in trust accounts and letters of credit of $126.3 million held for the benefit of certain surety providers.
Adjustments are made to the uncertain tax positions when facts and circumstances change, such as the closing of a tax audit; change in applicable tax laws, including tax case rulings and legislative guidance; or expiration of the applicable statute of limitations. See Note 8.
Adjustments are made to the uncertain tax positions when facts and circumstances change, such as the closing of a tax audit; change in applicable tax laws, including tax case rulings and legislative guidance; or expiration of the applicable statute of limitations. Peabody Energy Corporation 2025 Form 10-K 73 Table of Contents See Note 7.
Thermal 671.8 680.7 (8.9) (1.3) % Corporate and Other 64.5 11.6 52.9 456.0 % Total Segment Costs (1) $ 3,374.3 $ 3,353.4 $ 20.9 0.6 % (1) This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S.
Thermal 635.9 671.8 (35.9) (5.3) % Corporate and Other 32.6 64.5 (31.9) (49.5) % Total Segment Costs (1) $ 3,312.2 $ 3,374.3 $ (62.1) (1.8) % (1) This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S.
Year Ended December 31, 2024 2023 (Dollars in millions) Net cash provided by operating activities $ 606.5 $ 1,035.5 Net cash used in investing activities (598.1) (342.6) Net cash used in financing activities (276.0) (460.3) Net change in cash, cash equivalents and restricted cash (267.6) 232.6 Cash, cash equivalents and restricted cash at beginning of period 1,650.2 1,417.6 Cash, cash equivalents and restricted cash at end of period $ 1,382.6 $ 1,650.2 Operating Activities .
Year Ended December 31, 2025 2024 (Dollars in millions) Net cash provided by operating activities $ 333.7 $ 606.5 Net cash used in investing activities (346.6) (598.1) Net cash used in financing activities (85.2) (276.0) Net change in cash, cash equivalents and restricted cash (98.1) (267.6) Cash, cash equivalents and restricted cash at beginning of period 1,382.6 1,650.2 Cash, cash equivalents and restricted cash at end of period $ 1,284.5 $ 1,382.6 Operating Activities .
The Company’s operating lease commitments, excluding potential contingent rental amounts, will require cash payments of approximately $38 million in 2025, $34 million in 2026, $29 million in 2027, $23 million in 2028, $6 million in 2029 and $3 million thereafter.
The Company’s operating lease commitments, excluding potential contingent rental amounts, will require cash payments of approximately $41 million in 2026, $35 million in 2027, $29 million in 2028, $19 million in 2029, $12 million in 2030 and $3 million thereafter.
For additional information, refer to Note 6. “Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements. Income Tax Provision . The decrease in the income tax provision recorded during the year ended December 31, 2024 compared to the prior year period was primarily due to lower pretax income. Refer to Note 8.
“Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements. Income Tax Provision . The decrease in the income tax provision recorded during the year ended December 31, 2025 compared to the prior year period was primarily due to lower pretax income from the Company’s tax-paying foreign jurisdictions. Refer to Note 7.
The increases in the weighted-average depletion rate per ton for both the Seaborne Metallurgical and the Other U.S. Thermal segments during the year ended December 31, 2024 compared to the same period in the prior year reflect the impact of volume and mix variances across the segments. Transaction Costs Related to Business Combinations.
The changes in the weighted-average depletion rate per ton for the Seaborne Thermal, the Seaborne Metallurgical and the Other U.S. Thermal segments during the year ended December 31, 2025 compared to the same period in the prior year reflect the impact of volume and mix variances across the segments. Asset Retirement Obligation Expenses.
Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton. The following tables present tons sold, revenue, Total Segment Costs and Adjusted EBITDA by operating segment: Year Ended December 31, 2024 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.
Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton. Peabody Energy Corporation 2025 Form 10-K 66 Table of Contents The following tables present tons sold, revenue, Total Segment Costs and Adjusted EBITDA by reportable segment: Year Ended December 31, 2025 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.
The amendment became effective on April 14, 2023, when the Company terminated a then-existing credit agreement. Credit Support Facilities In February 2022, the Company entered into an agreement, which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements.
Credit Support Facilities In February 2022, the Company entered into an agreement, which provides up to $250.0 million of capacity for irrevocable standby letters of credit, primarily to support reclamation bonding requirements.
GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP. Depreciation, Depletion and Amortization.
GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP. Peabody Energy Corporation 2025 Form 10-K 63 Table of Contents Depreciation, Depletion and Amortization.
Peabody Energy Corporation 2024 Form 10-K 70 Tab le of Contents Liquidity As of December 31, 2024, the Company’s cash and cash equivalents balances totaled $700.4 million, including approximately $397 million held by U.S. subsidiaries, approximately $291 million held by Australian subsidiaries and the remainder held by other foreign subsidiaries in accounts predominantly domiciled in the U.S.
Peabody Energy Corporation 2025 Form 10-K 67 Table of Contents Liquidity As of December 31, 2025, the Company’s cash and cash equivalents balances totaled $575.3 million, including approximately $413 million held by U.S. subsidiaries, approximately $150 million held by Australian subsidiaries and the remainder held by other foreign subsidiaries in accounts predominantly domiciled in the U.S.
The following table presents a summary of depreciation, depletion and amortization expense by reporting segment: (Decrease) Increase Year Ended December 31, to Income 2024 2023 $ % (Dollars in millions) Seaborne Thermal $ (121.9) $ (103.7) $ (18.2) (17.6) % Seaborne Metallurgical (93.2) (91.5) (1.7) (1.9) % Powder River Basin (55.3) (48.8) (6.5) (13.3) % Other U.S.
The following table presents a summary of depreciation, depletion and amortization expense by reportable segment: Decrease Year Ended December 31, to Income 2025 2024 $ % (Dollars in millions) Seaborne Thermal $ (122.8) $ (121.9) $ (0.9) (0.7) % Seaborne Metallurgical (123.8) (93.2) (30.6) (32.8) % Powder River Basin (57.2) (55.3) (1.9) (3.4) % Other U.S.
Thermal 1.63 1.23 Depreciation, depletion and amortization expense increased during the year ended December 31, 2024 compared to the same period in the prior year primarily due to increased depreciation resulting from asset additions and shortened mine lives. Depletion expense increased primarily as a result of increased volume from the Shoal Creek Mine.
Thermal 1.72 1.63 Depreciation, depletion and amortization expense increased during the year ended December 31, 2025 compared to the same period in the prior year primarily due to increased depreciation resulting from asset additions and increased depletion expense primarily due to increased volume from the Shoal Creek and Centurion Mines.
The mine predominantly produces semi-hard coking coal and low-volatile pulverized coal injection (LV PCI) coal for sale into seaborne coal markets through Abbot Point Coal Terminal, with some capacity also secured at Dalrymple Bay Coal Terminal. Mining operations first commenced at the Middlemount Mine in late 2011.
Peabody owns a 50% equity interest in Middlemount, which owns the Middlemount Mine in Queensland, Australia. The mine predominantly produces semi-hard coking coal and low-volatile pulverized coal injection (LV PCI) coal for sale into seaborne coal markets through Abbot Point Coal Terminal, with some capacity also secured at Dalrymple Bay Coal Terminal.
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA: Decrease Year Ended December 31, to Income 2024 2023 $ % (Dollars in millions) Middlemount (1) $ 13.1 $ 13.2 $ (0.1) (0.8) % Resource management activities (2) 19.2 21.0 (1.8) (8.6) % Selling and administrative expenses (91.0) (90.7) (0.3) (0.3) % Other items, net (3) (31.5) 44.3 (75.8) (171.1) % Corporate and Other Adjusted EBITDA $ (90.2) $ (12.2) $ (78.0) (639.3) % (1) Middlemount’s results are before the impact of related changes in amortization of basis difference.
The following table presents a summary of the components of Corporate and Other Adjusted EBITDA: (Decrease) Increase Year Ended December 31, to Income 2025 2024 $ % (Dollars in millions) Middlemount (1) $ (10.9) $ 13.1 $ (24.0) (183.2) % Resource management activities (2) 39.5 19.2 20.3 105.7 % Selling and administrative expenses (105.0) (91.0) (14.0) (15.4) % Other items, net (3) 5.5 (31.5) 37.0 117.5 % Corporate and Other Adjusted EBITDA $ (70.9) $ (90.2) $ 19.3 21.4 % (1) Middlemount’s results are before the impact of related changes in amortization of basis difference.
Thermal (Amounts in millions, except per ton data) Tons sold 16.4 7.3 79.6 14.6 Revenue $ 1,213.9 $ 1,055.6 $ 1,098.8 $ 822.6 Total Segment Costs 783.9 893.9 960.2 671.8 Adjusted EBITDA, excluding Shoal Creek insurance recovery $ 430.0 $ 161.7 $ 138.6 $ 150.8 Shoal Creek insurance recovery - business interruption — 80.8 — — Adjusted EBITDA $ 430.0 $ 242.5 $ 138.6 $ 150.8 Revenue per Ton $ 73.88 $ 144.97 $ 13.81 $ 56.38 Costs per Ton 47.71 122.77 12.07 46.04 Adjusted EBITDA Margin per Ton $ 26.17 $ 22.20 $ 1.74 $ 10.34 Year Ended December 31, 2023 Seaborne Thermal Seaborne Metallurgical Powder River Basin Other U.S.
Thermal (Amounts in millions, except per ton data) Tons sold 16.4 7.3 79.6 14.6 Revenue $ 1,213.9 $ 1,055.6 $ 1,098.8 $ 822.6 Total Segment Costs 783.9 893.9 960.2 671.8 Adjusted EBITDA, excluding Shoal Creek insurance recovery $ 430.0 $ 161.7 $ 138.6 $ 150.8 Shoal Creek insurance recovery - business interruption — 80.8 — — Adjusted EBITDA $ 430.0 $ 242.5 $ 138.6 $ 150.8 Revenue per Ton $ 73.88 $ 144.97 $ 13.81 $ 56.38 Costs per Ton 47.71 122.77 12.07 46.04 Adjusted EBITDA Margin per Ton $ 26.17 $ 22.20 $ 1.74 $ 10.34 Liquidity and Capital Resources Overview The Company’s primary source of cash is proceeds from the sale of its coal production to customers.
These increases were offset by negative adjustments to Peabody’s black lung and traumatic workers’ compensation liabilities resulting from increased claims ($8.8 million) and mark-to-market losses on pension plan assets ($5.4 million).
These increases were offset by negative adjustments to Peabody’s black lung and traumatic workers’ compensation liabilities resulting from increased claims ($8.8 million) and mark-to-market losses on pension plan assets ($5.4 million). Unrealized Gains (Losses) on Foreign Currency Option Contracts. Unrealized gains (losses) primarily relate to mark-to-market activity on foreign currency option contracts. For additional information, refer to Note 5.
Seaborne Thermal. Segment Adjusted EBITDA decreased during the year ended December 31, 2024 compared to the same period in the prior year as a result of lower realized prices net of sales price sensitive costs ($225.2 million), partially offset by favorable volume and mix variances ($58.0 million). Seaborne Metallurgical.
Seaborne Thermal. Segment Adjusted EBITDA decreased during the year ended December 31, 2025 compared to the same period in the prior year as a result of lower realized prices net of sales price sensitive costs ($227.7 million) and unfavorable volume ($59.5 million), offset by favorable operational costs as described above. Seaborne Metallurgical.
Thermal 150.8 207.5 (56.7) (27.3) % Corporate and Other (90.2) (12.2) (78.0) (639.3) % Adjusted EBITDA (1) $ 871.7 $ 1,363.9 $ (492.2) (36.1) % (1) This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
Thermal 71.4 150.8 (79.4) (52.7) % Corporate and Other (70.9) (90.2) 19.3 21.4 % Adjusted EBITDA (1) $ 454.9 $ 871.7 $ (416.8) (47.8) % (1) This is a financial measure not recognized in accordance with U.S. GAAP. Refer to the “Reconciliation of Non-GAAP Financial Measures” section below for definitions and reconciliations to the most comparable measures under U.S. GAAP.
Not presented in the above table is $809.8 million of restricted cash and other balances serving as collateral which are included in the accompanying consolidated balance sheets at December 31, 2024, as described in Note 20. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” of the accompanying consolidated financial statements.
Peabody Energy Corporation 2025 Form 10-K 71 Table of Contents Not presented in the above table is $844.1 million of restricted cash and collateral which are included in the accompanying consolidated balance sheets at December 31, 2025, as described in Note 19. “Financial Instruments, Guarantees With Off-Balance-Sheet Risk and Other Guarantees” of the accompanying consolidated financial statements.
The Company’s Seaborne Metallurgical operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, USA. The mines in that segment utilize both surface and underground extraction processes to mine various qualities of metallurgical coal. The metallurgical coal qualities include hard coking coal, semi-hard coking coal, semi-soft coking coal and pulverized coal injection coal.
The mines in that reportable segment utilize both surface and underground extraction processes to mine various qualities of metallurgical coal. The metallurgical coal qualities include hard coking coal, semi-hard coking coal, semi-soft coking coal and pulverized coal injection coal.
In addition, the Company generates revenue through royalties from coal reserves and oil and gas rights leased to third parties, farm income from surface lands under third-party contracts and lease income from surface lands under contracts with renewable energy ventures. Middlemount Mine. Peabody owns a 50% equity interest in Middlemount, which owns the Middlemount Mine in Queensland, Australia.
In addition, the Company generates revenue through royalties from coal reserves and oil and gas rights leased to third parties, farm income from surface lands under third-party contracts and lease income from surface lands under contracts with renewable energy ventures. Peabody Energy Corporation 2025 Form 10-K 57 Table of Contents Middlemount Mine.
Segment Costs The following table presents costs by reporting segment: Increase (Decrease) Year Ended December 31, to Total Segment Costs 2024 2023 $ % (Dollars in millions) Seaborne Thermal $ 783.9 $ 752.9 $ 31.0 4.1 % Seaborne Metallurgical 893.9 863.8 30.1 3.5 % Powder River Basin 960.2 1,044.4 (84.2) (8.1) % Other U.S.
Segment Costs The following table presents costs by reportable segment: (Decrease) Increase Year Ended December 31, to Total Segment Costs 2025 2024 $ % (Dollars in millions) Seaborne Thermal $ 686.3 $ 783.9 $ (97.6) (12.5) % Seaborne Metallurgical 980.2 893.9 86.3 9.7 % Powder River Basin 977.2 960.2 17.0 1.8 % Other U.S.
Year Ended December 31, 2024 2023 (Dollars in millions) Income from continuing operations, net of income taxes $ 407.3 $ 816.0 Depreciation, depletion and amortization 343.0 321.4 Asset retirement obligation expenses 48.9 50.5 Restructuring charges 4.4 3.3 Transaction costs related to business combinations 10.3 — Asset impairment — 2.0 Provision for NARM and Shoal Creek losses 3.7 40.9 Shoal Creek insurance recovery - property damage (28.7) — Changes in amortization of basis difference related to equity affiliates (1.8) (1.6) Interest expense, net of capitalized interest 46.9 59.8 Net loss on early debt extinguishment — 8.8 Interest income (71.0) (76.8) Net mark-to-market adjustment on actuarially determined liabilities (6.1) (0.3) Unrealized gains on derivative contracts related to forecasted sales — (159.0) Unrealized losses (gains) on foreign currency option contracts 9.0 (7.4) Take-or-pay contract-based intangible recognition (3.0) (2.5) Income tax provision 108.8 308.8 Total Adjusted EBITDA $ 871.7 $ 1,363.9 Total Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each of its segments’ operating performance, as displayed in the reconciliations below: Year Ended December 31, 2024 2023 (Dollars in millions) Operating costs and expenses $ 3,420.9 $ 3,385.1 Unrealized (losses) gains on foreign currency option contracts (9.0) 7.4 Take-or-pay contract-based intangible recognition 3.0 2.5 Net periodic benefit credit, excluding service cost (40.6) (41.6) Total Segment Costs $ 3,374.3 $ 3,353.4 The following table presents Total Segment Costs by reporting segment: Year Ended December 31, 2024 2023 (Dollars in millions) Seaborne Thermal $ 783.9 $ 752.9 Seaborne Metallurgical 893.9 863.8 Powder River Basin 960.2 1,044.4 Other U.S.
Year Ended December 31, 2025 2024 (Dollars in millions) (Loss) income from continuing operations, net of income taxes $ (42.3) $ 407.3 Depreciation, depletion and amortization 384.5 343.0 Asset retirement obligation expenses 36.5 48.9 Restructuring charges 9.5 4.4 Costs related to terminated acquisition 78.9 10.3 Shoal Creek insurance recovery - property damage — (28.7) Changes in amortization of basis difference related to equity affiliates (2.7) (1.8) Other operating loss 5.6 3.7 Interest expense, net of capitalized interest 43.9 46.9 Interest income (55.4) (71.0) Net mark-to-market adjustment on actuarially determined liabilities (5.4) (6.1) Unrealized (gains) losses on foreign currency option contracts (6.0) 9.0 Take-or-pay contract-based intangible recognition (1.0) (3.0) Income tax provision 8.8 108.8 Total Adjusted EBITDA $ 454.9 $ 871.7 Total Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each of its reportable segments’ operating performance, as displayed in the reconciliations below: Year Ended December 31, 2025 2024 (Dollars in millions) Operating costs and expenses $ 3,334.9 $ 3,420.9 Unrealized gains (losses) on foreign currency option contracts 6.0 (9.0) Take-or-pay contract-based intangible recognition 1.0 3.0 Net periodic benefit credit, excluding service cost (29.7) (40.6) Total Segment Costs $ 3,312.2 $ 3,374.3 Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment (excluding insurance recoveries), respectively, divided by segment tons sold.
Available liquidity was comprised of the following: December 31, 2024 2023 (Dollars in millions) Cash and cash equivalents $ 700.4 $ 969.3 Revolving credit facility availability 233.7 — Accounts receivable securitization program availability 138.4 90.4 Total liquidity $ 1,072.5 $ 1,059.7 Capital Returns to Shareholders The Company repurchased approximately 7.7 million shares of its common stock for $180.5 million, including commission fees, and paid dividends of $37.6 million during the year ended December 31, 2024.
Available liquidity was comprised of the following: December 31, 2025 2024 (Dollars in millions) Cash and cash equivalents $ 575.3 $ 700.4 Revolving credit facility availability 270.8 233.7 Accounts receivable securitization program availability 96.0 138.4 Total liquidity $ 942.1 $ 1,072.5 Capital Returns to Shareholders The Company paid dividends of $36.5 million during the year ended December 31, 2025.
Net Income Attributable to Common Stockholders The following table presents net income attributable to common stockholders: Decrease Year Ended December 31, to Income 2024 2023 $ % (Dollars in millions) Income from continuing operations, net of income taxes $ 407.3 $ 816.0 $ (408.7) (50.1) % Loss from discontinued operations, net of income taxes (3.8) (0.4) (3.4) (850.0) % Net income 403.5 815.6 (412.1) (50.5) % Less: Net income attributable to noncontrolling interests 32.6 56.0 (23.4) (41.8) % Net income attributable to common stockholders $ 370.9 $ 759.6 $ (388.7) (51.2) % Net Income Attributable to Noncontrolling Interests .
Net (Loss) Income Attributable to Common Stockholders The following table presents net (loss) income attributable to common stockholders: (Decrease) Increase Year Ended December 31, to Income 2025 2024 $ % (Dollars in millions) (Loss) income from continuing operations, net of income taxes $ (42.3) $ 407.3 $ (449.6) (110.4) % Loss from discontinued operations, net of income taxes (0.2) (3.8) 3.6 94.7 % Net (loss) income (42.5) 403.5 (446.0) (110.5) % Less: Net income attributable to noncontrolling interests 10.4 32.6 (22.2) (68.1) % Net (loss) income attributable to common stockholders $ (52.9) $ 370.9 $ (423.8) (114.3) % Net Income Attributable to Noncontrolling Interests .
Thermal (64.8) (69.0) 4.2 6.1 % Corporate and Other (7.8) (8.4) 0.6 7.1 % Total $ (343.0) $ (321.4) $ (21.6) (6.7) % Peabody Energy Corporation 2024 Form 10-K 66 Tab le of Contents Additionally, the following table presents a summary of the Company’s weighted-average depletion rate per ton for active mines in each of its operating segments: Year Ended December 31, 2024 2023 Seaborne Thermal $ 2.14 $ 2.13 Seaborne Metallurgical 2.89 2.16 Powder River Basin 0.35 0.31 Other U.S.
Thermal (70.5) (64.8) (5.7) (8.8) % Corporate and Other (10.2) (7.8) (2.4) (30.8) % Total depreciation, depletion and amortization $ (384.5) $ (343.0) $ (41.5) (12.1) % Additionally, the following table presents a summary of the Company’s weighted-average depletion rate per ton for active mines in each of its reportable segments: Year Ended December 31, 2025 2024 Seaborne Thermal $ 2.02 $ 2.14 Seaborne Metallurgical 3.37 2.89 Powder River Basin 0.32 0.35 Other U.S.
Thermal 46.04 41.98 4.06 9.7 % Adjusted EBITDA Margin per Ton (1) (2) Seaborne Thermal $ 26.17 $ 37.28 $ (11.11) (29.8) % Seaborne Metallurgical 22.20 63.48 (41.28) (65.0) % Powder River Basin 1.74 1.76 (0.02) (1.1) % Other U.S. Thermal 10.34 12.79 (2.45) (19.2) % (1) This is an operating/statistical measure not recognized in accordance with U.S. GAAP.
Thermal 47.49 46.04 1.45 3.1 % Adjusted EBITDA Margin per Ton (1) (2) Seaborne Thermal $ 14.42 $ 26.17 $ (11.75) (44.9) % Seaborne Metallurgical 6.57 22.20 (15.63) (70.4) % Powder River Basin 2.08 1.74 0.34 19.5 % Other U.S. Thermal 5.33 10.34 (5.01) (48.5) % (1) This is an operating/statistical measure not recognized in accordance with U.S. GAAP.
On November 25, 2024, the Company amended the 2024 Credit Agreement to, among other things, permit Peabody’s planned acquisition of multiple coal mines from Anglo, the related bridge loan facility and the incurrence of additional indebtedness to finance the acquisition, to the extent applicable.
On November 25, 2024, the Company amended the 2024 Credit Agreement to, among other things, permit (i) Peabody’s then-planned acquisition of multiple coal mines from Anglo, (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. As further discussed in Note 1.
Through the twelve months ended December 31, 2024, electricity generation from thermal coal has decreased year-over-year driven by continued low natural gas prices and stronger renewable generation.
Through the year ended December 31, 2025, electricity generation from thermal coal increased year-over-year, driven by higher natural gas prices and stronger total generation.
The estimated future cash flows associated with such arrangements are approximately $86 million in 2025, $90 million in 2026, $90 million in 2027, $90 million in 2028, $70 million in 2029 and $555 million thereafter.
The estimated future cash flows associated with such arrangements are approximately $113 million in 2026, $115 million in 2027, $105 million in 2028, $75 million in 2029, $55 million in 2030 and $540 million thereafter.
Peabody Energy Corporation 2024 Form 10-K 74 Tab le of Contents The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk: December 31, 2024 Reclamation Support Other Support (1) Total (Dollars in millions) Surety bonds $ 925.1 $ 92.4 $ 1,017.5 Letters of credit (2) 55.2 91.5 146.7 980.3 183.9 1,164.2 Less: Letters of credit in support of surety bonds (3) (55.2) (0.1) (55.3) Obligations supported, net $ 925.1 $ 183.8 $ 1,108.9 (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.
The following table summarizes the Company’s financial instruments that carry off-balance-sheet risk: December 31, 2025 Reclamation Support Other Support (1) Total (Dollars in millions) Surety bonds $ 908.8 $ 88.4 $ 997.2 Letters of credit (2) 53.6 59.0 112.6 962.4 147.4 1,109.8 Less: Letters of credit in support of surety bonds (3) (53.6) (1.6) (55.2) Obligations supported, net $ 908.8 $ 145.8 $ 1,054.6 (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.
Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reporting segment level.
These metrics are used by management to measure each reportable segment’s operating performance. Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reportable segment level.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

18 edited+1 added−2 removed12 unchanged
Biggest changeDiesel Fuel Price Risk The Company expects to consume 85 to 95 million gallons of diesel fuel during the next twelve months. A $10 per barrel change in the price of crude oil (the primary component of a refined diesel fuel product) would increase or decrease its annual diesel fuel costs by approximately $22 million based on its expected usage.
Biggest changeA $10 per barrel change in the price of crude oil (the primary component of a refined diesel fuel product) would increase or decrease its annual diesel fuel costs by approximately $22 million based on its expected usage. As of December 31, 2025, the Company did not have any diesel fuel derivative instruments in place.
Peabody also continually monitors counterparty and contract nonperformance risk, if present, on a case-by-case basis. Foreign Currency Risk The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. The accounting for these derivatives is discussed in Note 6. “Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements.
Peabody also continually monitors counterparty and contract nonperformance risk, if present, on a case-by-case basis. Foreign Currency Risk The Company utilizes options and collars to hedge currency risk associated with anticipated Australian dollar operating expenditures. The accounting for these derivatives is discussed in Note 5. “Derivatives and Fair Value Measurements” to the accompanying consolidated financial statements.
The Company’s sensitivity to market pricing in thermal coal markets is dependent on the duration of contracts. As of December 31, 2024, the Company had no coal derivative contracts related to its forecasted sales. Historically, such financial contracts have included futures and forwards.
The Company’s sensitivity to market pricing in thermal coal markets is dependent on the duration of contracts. As of December 31, 2025, the Company had no coal derivative contracts related to its forecasted sales. Historically, such financial contracts have included futures and forwards.
Based upon its interest-earning cash and restricted cash balances at December 31, 2024, a one percentage point decrease in interest rates would result in a decrease of approximately $14 million to interest income for the next twelve months. Item 8. Financial Statements and Supplementary Data. See Part IV, Item 15.
Based upon its interest-earning cash and restricted cash balances at December 31, 2025, a one percentage point decrease in interest rates would result in a decrease of approximately $13 million to interest income for the next twelve months. Item 8. Financial Statements and Supplementary Data. See Part IV, Item 15.
As of December 31, 2024, the Company held average rate options with an aggregate notional amount of $388.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending September 30, 2025.
As of December 31, 2025, the Company held average rate options with an aggregate notional amount of $550.0 million Australian dollars to hedge currency risk associated with anticipated Australian dollar operating expenditures over the nine-month period ending September 30, 2026.
Assuming the Company had no foreign currency hedging instruments in place, its exposure in operating costs and expenses due to a $0.10 change in the Australian dollar/U.S. dollar exchange rate is approximately $195 to $205 million for the next twelve months.
Assuming the Company had no foreign currency hedging instruments in place, its exposure in operating costs and expenses due to a $0.10 change in the Australian dollar/U.S. dollar exchange rate is approximately $200 to $210 million for the next twelve months.
As of December 31, 2024, the Company also held purchased collars with an aggregate notional amount of $528.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending September 30, 2025.
As of December 31, 2025, the Company also held purchased collars with an aggregate notional amount of $554.0 million Australian dollars related to anticipated Australian dollar operating expenditures during the nine-month period ending September 30, 2026.
Sales under such agreements comprised approximately 90%, 92% and 85% of its worldwide sales from its mining operations (by volume) for the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024, the Company had approximately 85 million tons of U.S. thermal coal priced and committed for 2025.
Sales under such agreements comprised approximately 87%, 90% and 92% of its worldwide sales from its mining operations (by volume) for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the Company had approximately 91 million tons of U.S. thermal coal priced and committed for 2026.
Based upon the Australian dollar/U.S. dollar exchange rate at December 31, 2024, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $194 million with respect to a $0.10 increase in the exchange rate, while the Company would benefit by approximately $154 million with respect to a $0.10 decrease in the exchange rate for the next twelve months.
Based upon the Australian dollar/U.S. dollar exchange rate at December 31, 2025, the currency option contracts outstanding at that date would limit the Company’s exposure to approximately $134 million with respect to a $0.10 increase in the exchange rate, while the Company would benefit by approximately $189 million with respect to a $0.10 decrease in the exchange rate for the next twelve months.
This includes approximately 71 million tons of PRB coal and 14 million tons of other U.S. thermal coal. The Company has the flexibility to increase volumes should demand warrant.
This includes approximately 78 million tons of PRB coal and 13 million tons of Other U.S. thermal coal. The Company has the flexibility to increase volumes should demand warrant.
Peabody’s interest-earning cash and restricted cash balances are primarily held in deposit accounts and investments with maturities of three months or less. Therefore, these balances are subject to interest rate fluctuations and could produce less income if interest rates fall.
Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances. Peabody’s interest-earning cash and restricted cash balances are primarily held in deposit accounts and investments with maturities of three months or less. Therefore, these balances are subject to interest rate fluctuations and could produce less income if interest rates fall.
Peabody is estimating full year 2025 metallurgical coal sales from its Seaborne Metallurgical segment of 8.0 million to 9.0 million tons. Sales commitments in the metallurgical coal market are typically not long-term in nature, and the Company is therefore subject to fluctuations in market pricing.
Peabody is estimating full year 2026 metallurgical coal sales from its Seaborne Metallurgical segment of 10.3 million to 11.3 million tons. Sales commitments in the metallurgical coal market are typically not long-term in nature, and the Company is therefore subject to fluctuations in market pricing.
Peabody Energy Corporation 2024 Form 10-K 78 Tab le of Contents Coal Pricing Risk The Company predominantly manages its commodity price risk for its non-trading, long-term coal contract portfolio through the use of long-term coal supply agreements (those with terms longer than one year) to the extent possible, rather than through the use of derivative instruments.
Coal Pricing Risk The Company predominantly manages its commodity price risk for its non-trading, long-term coal contract portfolio through the use of long-term coal supply agreements (those with terms longer than one year) to the extent possible, rather than through the use of derivative instruments.
Peabody is estimating full year 2025 thermal coal sales volumes from its Seaborne Thermal segment of 14.2 million to 15.2 million tons comprised of thermal export volume of 8.8 million to 9.8 million tons and domestic volume of 5.4 million tons.
Peabody is estimating full year 2026 thermal coal sales volumes from its Seaborne Thermal segment of 12.0 million to 13.0 million tons comprised of thermal export volume of 7.5 million to 8.5 million tons and domestic volume of 4.5 million tons.
Due to a lack of quoted market prices and the long-term, illiquid nature of the positions, the Company has not quantified market price risk related to its non-trading, long-term coal supply agreement portfolio.
Due to a lack of quoted market prices and the long-term, illiquid nature of the positions, the Company has not quantified market price risk related to its non-trading, long-term coal supply agreement portfolio. Coal Trading Activities and Related Commodity Price Risk Peabody engages in direct and brokered trading of physical coal and freight-related commodities in over-the-counter (OTC) markets.
Credit and Nonperformance Risk The fair values of Peabody’s derivative instruments utilized for corporate hedging and coal trading activities reflect adjustments for credit risk, as necessary. The Company’s exposure is substantially with electric utilities, energy marketers, steel producers and nonfinancial trading houses.
The fair values of Peabody’s derivative instruments utilized for corporate hedging and coal trading activities reflect adjustments for credit risk, as necessary.
Interest Rate Risk Peabody’s objectives in managing exposure to interest rate changes are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. Peabody is primarily exposed to interest rate risk as a result of its interest-earning cash balances.
The Company partially manages the price risk of diesel fuel through the use of cost pass-through contracts with certain customers. Interest Rate Risk Peabody’s objectives in managing exposure to interest rate changes are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs.
Its policy is to independently evaluate each counterparty’s creditworthiness prior to entering into transactions and to regularly monitor exposures.
Peabody Energy Corporation 2025 Form 10-K 74 Table of Contents Credit and Nonperformance Risk The Company’s exposure is substantially with electric utilities, energy marketers, steel producers and nonfinancial trading houses. Its policy is to independently evaluate each counterparty’s creditworthiness prior to entering into transactions and to regularly monitor exposures.
Removed
Peabody Energy Corporation 2024 Form 10-K 77 Tab le of Contents Coal Trading Activities and Related Commodity Price Risk Peabody engages in direct and brokered trading of physical coal and freight-related commodities in over-the-counter (OTC) markets.
Added
Peabody Energy Corporation 2025 Form 10-K 75 Table of Contents Diesel Fuel Price Risk The Company expects to consume 90 to 100 million gallons of diesel fuel during the next twelve months.
Removed
As of December 31, 2024, the Company did not have any diesel fuel derivative instruments in place. The Company partially manages the price risk of diesel fuel through the use of cost pass-through contracts with certain customers.

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