Peabody Energy Corporation · NYSE:BTU
Peabody Energy — BMO Global Metals, Mining and Critical Minerals Conference 2025
39 slides from Peabody Energy's conference presentation, February 2025
Slide 1: BMO Global Metals, Mining and Critical Minerals Conference
BUILDING BRIGHTER FUTURES BMO Global Metals, Mining and Critical Minerals Conference February 2025
Slide 2: Important Information
Important Information This presentation contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "exp
Slide 3: Peabody: Ambitious Agenda Drives Long-Term Value Creation
Peabody: Ambitious Agenda Drives Long-Term Value Creation 1 Operating Safe, Productive Operations 2 Transforming the Asset Base Toward Steelmaking Coal 3 Serving Growing Asia Demand for Thermal Coal 4 Realizing Strong Cash Flows from U.S. Thermal Coal 5 Maintaining Financial Strength and Resilience
Slide 4: Operating Safe, Productive Operations
Operating Safe, Productive Operations 2 4
Slide 5: 2024 a Record Year for Safety and Environmental Performance
2024 a Record Year for Safety and Environmental Performance Peabody incident rate below industry and even service sectors • Both U.S. and Australian 5.3 operations had record years 4.5 4.5 in 2024 with combined incident 4.3 rate of 0.81 Incident Rate 3.4 2.9 3.1 3.1 3.1 o Lowest incident rate in 140
Slide 6: Peabody Quick Facts
Peabody Quick Facts TRIFR1 0.81 EMPLOYEES Centurion ~5,600 Rawhide Caballo Moranbah North Coppabella North Antelope Moorvale ACRES RESTORED Grosvenor Rochelle Middlemount ~2,100 Aquila Capcoal Australia Headquarters COUNTRIES SERVED Twentymile Wambo Underground 18 Wilpinjong Wambo Open-Cut 2024 ADJU
Slide 7: Transforming Asset Base Toward Steelmaking Coal
Transforming Asset Base Toward Steelmaking Coal 2 7
Slide 8: Seaborne Met Coal Markets: Seaborne Asia Drives Demand
Seaborne Met Coal Markets: Seaborne Asia Drives Demand Asia Constitutes >100% of Growth in Long-Term Seaborne Met Coal Near-Term Coal Pricing at Low Global Steel Demand in Past Decade Demand Expected to Grow Point of Last Several Years • Asia steel use increases 225 New Supply of HCC Required • Aver
Slide 9: Leading Met Coal Platform Serves as Backbone of Business
Leading Met Coal Platform Serves as Backbone of Business • Peabody targets 21.9 million short tons of met coal Metallurgical Coal Sales sales in 2026 with first full year of Anglo asset (Short tons in millions) ownership; Centurion longwall to start in Q1 2026 21.9 • Structural improvements under wa
Slide 10: World-Class Centurion Mine on Pace for Q1 2026 Longwall Startup
World-Class Centurion Mine on Pace for Q1 2026 Longwall Startup • Tier one premium hard coking coal mine complex located in the heart of Bowen Basin • Expected 500,000 tons in 2025 and 3.5 million tons in 2026 • Development benefits from $1.0+ billion of existing infrastructure • Mine life of 25+ ye
Slide 11: Anglo Acquisition Transforms Peabody into Steelmaking Coal Leader
Anglo Acquisition Transforms Peabody into Steelmaking Coal Leader Delivers Compelling Strategic and Financial Benefits Peabody Standalone Adjusted EBITDA(1) 2024A Transforming Into Leading Met Coal Company 30% 25% • Premier hard coking coal qualities boost realizations Attractive Valuation and Cash-
Slide 12: Snapshot of Assets to be Acquired
Snapshot of Assets to be Acquired Moranbah Asset Grosvenor Aquila Capcoal (2) North 88% Peabody 88% Peabody 6.25% NSSMC 6.25% NSSMC Ownership/ 70% Peabody 70% Peabody 4.75% Mitsui 4.75% Mitsui Partners 30% Mitsui 30% Mitsui 0.5% JFE 0.5% JFE 0.5% Kobe Steel 0.5% Kobe Steel Premium Hard Coking Coal,
Slide 13: Low-Cost Met Coal Platform Positioned for Success Through Cycle
Low-Cost Met Coal Platform Positioned for Success Through Cycle Seaborne Metallurgical Coal Cost Curve 250 Peabody Existing Anglo portfolio 200 Coppabella Moranbah North Moorvale Aquila Centurion 2 Metropolitan 150 Capcoal 100 50 - FOB Cash Cost (incl. royalties) – Wood Mackenzie (US$/t, 2025 REAL)
Slide 14: Process Underway Toward Targeted Closing in Q2 2025
Process Underway Toward Targeted Closing in Q2 2025 Permanent Financing “Tagalong” Process Expiration Process Advancing (1) • Targeted leverage of up to 1.5x Adjusted EBITDA Regulatory 6 of 11 Approvals completed • Substantial debt capacity to fill out major financing component Pre-emption Expire •
Slide 15: Serving Growing Asia Demand for Thermal Coal
Serving Growing Asia Demand for Thermal Coal 2 15
Slide 16: Seaborne Thermal Markets: Fueling Growing Asian Generation
Seaborne Thermal Markets: Fueling Growing Asian Generation IEA Notes Global Coal Demand Continued Shift in Seaborne Thermal Near-Term Thermal Supply/Demand Reached Record Levels in 2024 Demand to Asia-Pacific Region Largely in Balance • World used 8.77 billion tonnes • China began construction on •
Slide 17: High Margin Seaborne Thermal Business with Low Costs
High Margin Seaborne Thermal Business with Low Costs • Platform delivers high margins throughout the cycle driven by Seaborne Thermal Adjusted EBITDA(1) efficient operations, delivering high levels of free cash flow Outpaced Investment by 8-1 Margin • Wilpinjong Mine is one of Australia’s most produ
Slide 18: Realizing Strong Cash Flows from U.S. Thermal Coal
Realizing Strong Cash Flows from U.S. Thermal Coal 2 18
Slide 19: U.S. Markets: New Electricity Growth Phase Pauses Coal Decline
U.S. Markets: New Electricity Growth Phase Pauses Coal Decline Generators, Analysts Project Strong Search for Generation Creating Major Near-Term U.S. Demand Tightening Growth in U.S. Power Demand Pause in Coal Plant Retirements on Strong Start to Winter • After 15 years of flat load • Deferrals in
Slide 20: Highly Cash Flowing U.S. Thermal Business Well Positioned
Highly Cash Flowing U.S. Thermal Business Well Positioned • U.S. Thermal platform generates substantial free cash flow with low investments and strong margins U.S. Thermal Adjusted EBITDA(1) • Platform consists of 9 mines serving U.S. customers in 25 states Outpaced Investment by 4-1 Margin • 2025 P
Slide 21: Maintaining Financial Strength & Resilience
Maintaining Financial Strength & Resilience 2 21
Slide 22: Strategic Capital Allocation Positioned Peabody for Acquisition
Strategic Capital Allocation Positioned Peabody for Acquisition Historical Capital Allocation (2020-Present) Go-Forward Capital Allocation Strategy (US$ Millions) • Disciplined Growth: Focus on disciplined growth Leverage and moderate financial policy maintains a strong Profile credit profile (1) •
Slide 23: Increasing Long-Term Cash Flow Per Share
Increasing Long-Term Cash Flow Per Share 2 23
Slide 24: We Believe BTU Offers an Attractive Investment Opportunity
We Believe BTU Offers an Attractive Investment Opportunity BTU Share Price at Relative Valuations(1) $71 • Peabody is committed to $61 increasing long-term cash flow per $55 share • Focus on expanding shareholder value proposition with long-term earnings growth, shareholder $32 returns and a favorab
Slide 25: Management Team Committed to Building on Achievements
Management Team Committed to Building on Achievements 1 Achieving Record Safety and Environmental Improvements 2 Strengthening the Balance Sheet and Building Financial Resilience 3 Ensuring Final Reclamation Costs are Fully Funded 4 Implementing Shareholder Return Program 5 Shipping First Coal from
Slide 26: Appendix Materials
i Appendix Materials Peabody BUILDING BRIGHTER FUTURES
Slide 27: Anglo Acquisition Positions Peabody as a Leading Seaborne Met Coal Producer
Anglo Acquisition Positions Peabody as a Leading Seaborne Met Coal Producer 2026E Projected Production 48.0 Met Coal Production (Short tons in Millions) 31.0 21.9 20.8 15.1 15.1 10.7 10.6 9.3 8.5 8.4 Pro Forma Source: Industry information and company materials. Note: Peabody and Peabody Pro Forma es
Slide 28: Moranbah Initiatives to Return to Solid Production Under Way
Moranbah Initiatives to Return to Solid Production Under Way Key Drivers of Operational Performance • Peabody forecasts 11.3 million tons of output from acquired assets in 2026E, • Anticipate strong recovery of performance to return to historical the first full year of ownership production levels dr
Slide 29: Peabody's Business Segments
Peabody’s Business Segments (1) Mines Full Year 2024 • Tons Sold (millions) 7.3 • Centurion • Revenue per Ton $144.97 Seaborne • Shoal Creek • Costs per Ton $122.77 • Metropolitan Metallurgical • Adjusted EBITDA Margin per Ton $22.20 • Coppabella / Moorvale (CMJV) • Adjusted EBITDA (millions) $242.5
Slide 30: Operations Overview: Seaborne Metallurgical Segment
Operations Overview: Seaborne Metallurgical Segment Strategic Advantage: Multiple locations and products, positioned to serve Asia Pacific and Atlantic market Centurion Mine Metropolitan Mine Production: 0.2 million tons Production: 1.8 million tons Reserves: 191 million tons Reserves: 11 million to
Slide 31: Operations Overview: Seaborne Thermal Segment
Operations Overview: Seaborne Thermal Segment Strategic Advantage: High margin operations positioned to serve Asia Pacific market Wilpinjong Mine Wambo Underground Production: 12.6 million tons (export and domestic) Production: 1.4 million tons Reserves: 46 million tons Reserves: 1 million tons Type
Slide 32: Operations Overview: PRB Segment
Operations Overview: PRB Segment Strategic Advantage: Low-cost operations, largest producer, significant reserves, shared resources, technologies North Antelope Rochelle Mine (NARM) Rawhide Mine Production: 59.7 million tons Production: 9.1 million tons Reserves: 1,300 million tons Reserves: 80 mill
Slide 33: Operations Overview: Other U.S. Thermal Segment
Operations Overview: Other U.S. Thermal Segment Strategic Advantage: Located to serve regional customers in high coal utilization regions with competitive cost operations and ample reserves / resources Bear Run Mine Gateway North Mine Production: 5.0 million tons Production: 2.1 million tons Reserve
Slide 34: Existing Assets Offer Additional Opportunities to Create Value
Existing Assets Offer Additional Opportunities to Create Value • Centurion Mine in Queensland, Australia is in pre-development to build a 5 MW power station that will utilize gas removed from the mine. This is a next step in reducing our emissions and will also help lower our energy costs by self-po
Slide 35: Defined Sustainability Targets
Defined Sustainability Targets Exceeded this target, reducing emissions by 35% in 2024 with further Emission Reductions & Opportunities targets to be announced in March 2025 • Scope 1 Fugitive Emissions: ─ Coalbed methane utilization ─ Flaring ─ Regenerative thermal oxidation First incremental targe
Slide 36: 2025 Guidance Table
2025 Guidance Table Guidance Targets (Excluding Contributions from Planned Acquisition) First Quarter 2025 Outlook Segment Performance Seaborne Thermal 2025 Full Year Total Volume Priced Volume Priced Volume (millions of (millions of Pricing per Average Cost per • Volumes are expected to be 4.0 mill
Slide 37: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Note: Refer to definitions and footnotes on slides 38 37
Slide 38: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Note: Refer to definitions and footnotes on slides 38 38
Slide 39: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 39
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