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Peabody Energy is like ExxonMobil, but for coal.

Think of them as the Chevron of the global coal industry.

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• Thermal Coal: Primarily sold to power generators for electricity production.
• Metallurgical Coal: A crucial ingredient used in the production of steel.

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Peabody Energy (symbol: BTU) primarily sells coal to other companies, not individuals.

The company's major customers fall into the following categories:

1. Electric Utilities and Power Generators: These companies are the primary purchasers of thermal coal, which they use to generate electricity. Peabody Energy serves a broad base of electric utilities in the United States (from its Powder River Basin and Other U.S. Thermal segments) and power generation companies in international markets, particularly across Asia (from its Seaborne Thermal segment).
2. Steel Producers: These companies purchase metallurgical (or coking) coal, an essential raw material used in the blast furnace process for steel production. Peabody Energy supplies steel producers predominantly in Asian markets (such as Japan, China, Korea, and India) and Europe through its Seaborne Met segment.

Due to the nature of long-term supply contracts and competitive considerations, Peabody Energy does not typically disclose the specific names of individual customer companies in its public filings.

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Jim Grech, President and Chief Executive Officer

Jim Grech joined Peabody Energy in June 2021 as President and Chief Executive Officer and has over thirty years of experience in the coal and natural resources industry. He previously served as Chief Executive Officer of Wolverine Fuels from 2018 to 2021. His career also includes roles as President of Nexus Gas Transmission, Chief Commercial Officer and Executive Vice President of Consol Energy, and Vice President at DTE Energy.

Mark Spurbeck, Executive Vice President and Chief Financial Officer

Mark Spurbeck was appointed Executive Vice President and Chief Financial Officer in June 2020, having first joined Peabody in early 2018. He brings more than 20 years of accounting and financial experience. Prior to Peabody, Mr. Spurbeck served as Vice President of Finance and Chief Accounting Officer at Coeur Mining, Inc. He also held various finance and accounting positions over an eight-year period at Newmont Mining Corporation, including Group Executive, Assistant Controller, and worked at First Data Corporation and Deloitte LLP.

Darren Yeates, Executive Vice President and Chief Operating Officer

Darren Yeates joined Peabody in his current role in 2020 and has over 40 years of experience in the mining industry. He previously served as Chief Operating Officer of MACH Energy Australia before joining Peabody. Mr. Yeates also served on Peabody's board of directors from February 2020 to December 2021.

Patrick Forkin III, Executive Vice President, Global Strategy and Peabody Development

Patrick Forkin III joined Peabody in 2010 and leads global strategy and all non-coal mining initiatives, investments, and joint ventures. He possesses an extensive background in the energy and mining industries, including mergers and acquisitions, corporate finance, new technology commercialization, and equity market research. Before joining Peabody, Mr. Forkin held senior leadership roles at a U.S. solar development company and investment banking firms specializing in energy research, and began his career at Deloitte LLP.

Scott Jarboe, Chief Administrative Officer and Corporate Secretary

Scott Jarboe serves as Peabody Energy's Chief Administrative Officer and Corporate Secretary.

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The primary and most significant risk to Peabody Energy is the **declining global demand for coal and the ongoing energy transition**. Governments and industries worldwide are increasingly prioritizing cleaner energy sources such as natural gas, renewables, and nuclear power to reduce carbon emissions, which directly threatens the long-term viability of coal as an energy source. This structural shift away from fossil fuels, particularly thermal coal, presents a fundamental challenge to Peabody's core business model.

Secondly, **volatility in coal prices** poses a significant and constant risk to Peabody Energy's financial performance. Coal prices are highly susceptible to fluctuations driven by global supply and demand dynamics, geopolitical events, and shifts in government energy policies. Such price instability can lead to considerable swings in profitability, making long-term financial planning and investment decisions challenging for the company.

Finally, **operational and strategic execution risks** are critical, especially given Peabody's strategic pivot towards metallurgical (steelmaking) coal. Key projects, such as the Centurion Mine development, are central to this strategy, and their successful execution is vital for future operating leverage. Peabody currently faces negative free cash flow due to heavy investment in growth projects, and any delays in these ramp-ups could prolong this period. Additionally, ongoing operational challenges, including weather-related disruptions, particularly in Australia, continue to pose a persistent risk to production and shipment volumes.

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The rapid global transition towards renewable energy sources (solar, wind, and battery storage) is increasingly displacing thermal coal in electricity generation, driven by decreasing costs and supportive policies worldwide.

The emerging development and scaling of "green steel" production methods, which utilize hydrogen instead of coking coal, threaten the long-term demand for metallurgical coal.

Escalating global decarbonization policies and increasing ESG (Environmental, Social, and Governance) investor pressures are restricting capital access and increasing regulatory burdens for coal companies, impacting their ability to finance operations and future projects.

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Peabody Energy's main products are thermal coal and metallurgical coal.

Thermal Coal

The global addressable market size for thermal coal is estimated to be approximately $150 billion in 2025. Another estimate values the global thermal coal market at approximately $655.89 billion in 2025, projected to reach $799.11 billion by 2034.

Regionally, Asia dominates the thermal coal market, with robust demand from countries like China and India for electricity generation. Asia's total thermal coal imports are expected to exceed one billion metric tons in 2024. The U.S. electric power sector coal consumption is predicted to increase to 371.7 million short tons in 2025. Meanwhile, Europe has seen a significant decline in thermal coal use due to environmental regulations and a shift towards renewable energy, with imports showing a generally downward trend, though there were temporary surges.

Metallurgical Coal

The global addressable market size for metallurgical coal was valued at approximately $15.13 billion in 2024 and is projected to reach nearly $18.29 billion by 2032, growing at a CAGR of 2.4% from 2025 to 2032.

Asia-Pacific is the largest market for metallurgical coal, contributing significantly to its growth, with China being a major consumer of seaborne metallurgical coal. The North America metallurgical coal market was valued at $23.72 billion in 2024 and is expected to reach $27.27 billion by 2030.

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Peabody Energy (BTU) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Significant Expansion of Premium Metallurgical Coal Production: The flagship Centurion mine is anticipated to be a major contributor, with longwall production commencing in Q4 2025 or Q1 2026. Shipments of premium hard coking coal from Centurion are projected to expand sevenfold in 2026, reaching 3.5 million tons, and continue to grow beyond that. This mine is expected to be Peabody's lowest-cost metallurgical coal mine, which should also boost the company's average met coal portfolio realizations.
2. Increased U.S. Thermal Coal Volumes and Strong Domestic Demand: Peabody Energy anticipates higher volumes from its Powder River Basin (PRB) operations, with Q4 2025 shipments targeted at 23 million tons. The U.S. thermal coal market is experiencing positive trends, including a 2% increase in electricity demand driven by industrial activity and the growth of data centers, leading to higher coal plant utilization.
3. Improved Seaborne Thermal Coal Volumes and Market Conditions: The company has seen better-than-expected seaborne thermal coal volumes, leading to favorable adjustments in its full-year guidance. Seaborne thermal volumes are anticipated to be 15.1 million to 15.4 million tons, with Q4 2025 volumes targeted at 3.2 million tons.
4. Potential for Rare Earth Elements and Critical Minerals Development: Peabody Energy is actively assessing the potential for rare earth elements and critical minerals within its Powder River Basin assets. Preliminary results from these efforts are expected in early 2025, which could open new revenue streams for the company.
5. Positive Pricing Outlook Across Key Markets: Management believes that all three of Peabody’s end markets (U.S. thermal, seaborne thermal, and seaborne metallurgical coal) could experience upside pricing pressure in 2026. The forward curve for benchmark metallurgical coal prices in 2026 is noted to be in the $215 range, up from approximately $195 per metric ton in Q3 2025.

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Share Repurchases

• Peabody launched a significant shareholder return program in April 2023, initially starting with a $1 billion share buyback authorization.
• As of August 1, 2024, Peabody had $569.6 million remaining under its existing $1.0 billion share repurchase program and committed an additional $100 million for repurchases in 2024.
• The company's share buybacks amounted to $347.7 million in 2023 and $183.1 million in 2024. For the trailing twelve months (TTM) ended June 2025, repurchases were -$101 million.

Share Issuance

• In March 2022, Peabody Energy entered into an "At Market Issuance Sales Agreement" to offer and sell up to $225 million of common stock. The net proceeds from these issuances were intended to repay outstanding indebtedness under its $150 million senior unsecured revolving credit facility.

Outbound Investments

• Peabody Energy announced an agreement on November 25, 2024, to acquire Anglo American's Australian coal assets for $3.7 billion, aiming to double coal sales by 2026 and shift its product mix.
• In April 2025, Peabody Energy was reviewing options regarding the $3.78 billion acquisition of Anglo American's Australian steelmaking coal assets due to an ignition incident at one of the mines.
• By September 2025, Peabody decided to terminate the $3.8 billion acquisition of Anglo American's Australian coal mines, emphasizing a renewed focus on its U.S. portfolio.

Capital Expenditures

• Peabody Energy's capital expenditures have shown an increasing trend, from $191.4 million in 2020 to $401.3 million in December 2024. Capital expenditures for the latest twelve months ending June 30, 2025, were $398.9 million.
• The company projects capital expenditures of $420 million for 2025, focusing on growth and operational efficiency.
• Significant capital has been directed towards the Centurion project, a hard coking coal growth initiative, which is on budget with longwall coal production targeted for Q1 2026, and the acquisition of the Wards Well deposit extended the Centurion mine life to over 25 years.