Glenn Kellow President and Chief Executive Officer Amy Schwetz EVP - PowerPoint PPT Presentation

Glenn Kellow – President and Chief Executive Officer Amy Schwetz – EVP and Chief Financial Officer Vic Svec – SVP Global Investor and Corporate Relations February 7, 2018

Statement on Forward ‐ Looking 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 "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward ‐ looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward ‐ looking statements. They may include estimates of revenues, income, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volume, or other financial items, descriptions of management’s plans or objectives for future operations, or descriptions of assumptions underlying any of the above. All forward ‐ looking statements speak only as of the date they are made and reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the company disclaims any obligation to publicly update or revise any forward ‐ looking statement, except as required by law. By their nature, forward ‐ looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward ‐ looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond the company's control, that are described in our Annual Report on Form 10 ‐ K for the fiscal year ended Dec. 31, 2016, as amended on July 10, 2017 and Aug. 14, 2017, and in Exhibit 99.2 to the Company’s Current Report on Form 8 ‐ K filed with the SEC on April 11, 2017, as well as additional factors we may describe from time to time in other filings with the SEC. You may get such filings for free at our website at www.peabodyenergy.com. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties. 2

Active Fourth Quarter Underpins Year of Substantial Achievement  Relists on NYSE, increases share price 79% Recent 2018 Actions  Increases revenues 18% from prior year  Reports highest Adjusted EBITDA in 5 years Simplifies capital structure as  Increases liquidity to $1.24 billion preferred shares converted  Releases ~$220 million of restricted cash Issues initial tranche since emergence of Australian surety bonds  Secures $350 million revolving credit facility  Refinances term loan, reduces interest rate Targeting release of nearly all remaining restricted cash  Generates over $900 million of free cash flow  Repays $500 million of debt ahead of target Declares quarterly cash dividend  Reduces net debt nearly 50% since emergence  Repurchases ~$175 million in stock Prioritizing returning cash to shareholders  Achieves record production at North Goonyella  Reclaims 1.4 acres for every acre disturbed globally Strength enabling more  Earns Best ESG – Global Responsible Mining strength in 2018 Company by CFI Note: Adjusted EBITDA and free cash flow are non ‐ GAAP metrics. Refer to the reconciliation to the nearest GAAP measures in the appendix. Liquidity as of Dec. 31, 2017. Share price increase from emergence plan share price of $22.03 effective April 4 3 through Dec. 29, 2017.

Fourth Quarter 2017 Financials in Review Revenues • $1.52 billion; increase 5% over Q4 2016 Income from Continuing Operations, Net of Income Taxes • $378.0 million, includes $81.6 million net tax benefit • DD&A totals $178.8 million • $83.1 million gains on non ‐ core disposals Net Income Attributable to Common Stockholders • $317.4 million, includes $40.9 million non ‐ cash preferred stock dividend Diluted EPS – Income from Continuing Operations • $2.47 per share Adjusted EBITDA • $416.2 million, increases $122.2 million from Q4 2016 Note: Adjusted EBITDA is a non ‐ GAAP metric. Refer to the reconciliation to the nearest GAAP measures in the appendix. 4

Q4 2017 Adjusted EBITDA Exceeds Prior Year Results by 42% Q4 2017 Adjusted Western EBITDA by Mining Segment $52 Midwestern ($ in millions) $28 Aus. Thermal $103 PRB $81 Aus. Met $200 Change from Prior Year ($ in millions) $7 $416 $95 $34 $23 $(20) $294 $(17) Note: Adjusted EBITDA is a non ‐ GAAP metric. Refer to the reconciliation to the nearest GAAP measures in the appendix; 5 “Other” includes hedging; trading and brokerage; other operating costs, net; restructuring charges; and SG&A.

Full ‐ Year Adjusted EBITDA Margins Average 30% Across Mining Segments ● Australian thermal leads Adjusted Q4 Full Year Adjusted EBITDA margins, EBITDA Margins 2017 2017 Australian met leads in total 2017 contributions of $525 38% 38% Aus. Thermal million ● Australian platform expands 39% 34% Aus. Met average 2017 Adjusted EBITDA margins $23 per 21% 24% PRB ton over prior year – Productivity improvements 15% 22% primarily at North Goonyella more Midwestern than offset higher sales ‐ related royalties 33% 31% Western ● U.S. platform delivers 2017 average margins of 25% 30% 30% Total – Driven by improved costs in Western segment Note: Adjusted EBITDA margin is a non ‐ GAAP metric and is equal to segment Adjusted EBITDA divided by segment revenue. Refer to the reconciliation to the nearest GAAP measures in the appendix. All comparisons are to full ‐ year 2016 unless 6 otherwise noted.

Peabody Exceeds Deleveraging and Liquidity Targets; Deliberately Pursuing Financial Approach Liquidity Deleveraging Shareholder Returns • Liquidity totals • Completes debt • Q4 repurchases $1.24 billion repayments of total $107 million at year end $500 million • Executes $176 Share Repurchases • Restricted cash • Benefits include million of $500 balance reduced access to million repurchase from $538 million alternative sources program to $363 million of liquidity, lower • Initiates quarterly • Initial tranche fixed charges dividend, of ~$115 million • Net debt improves demonstrating of surety bonds nearly 50% since strong financial Debt Repayment in Australia April to $449 million position, cash • Anticipating release • Continuing to target generation, $[113] of nearly all gross debt of commitment to million remaining restricted $1.2 billion to $1.4 shareholder returns cash in 2018 billion over time $113 Million Remaining preferred stock mandatorily converted into common Note: Restricted cash balance, net debt and $176 million of share repurchases as of Dec. 31, 2017. 7

Industry Update: Seaborne Coal Pricing Remains Elevated on Firm Asia ‐ Pacific Demand and Supply Tightness Seaborne Thermal Coal Seaborne Metallurgical Coal ● Global seaborne demand ● Global steel production increases 3% in 2017 rises 5% through year end over prior year ● Chinese met imports ● India demand down increase ~10 million tonnes ~11 million tonnes for year; ● Indian met coal imports rise 6% Q4 imports rise 17% due on rising steel production in 2H to depleted stockpiles ● Australian met exports decline ● Australian, Colombian more than 15 million tonnes due and Indonesian exports to cyclone impacts, logistical decline from prior year constraints and port maintenance Key demand drivers in 2018 include growth in India and ASEAN nations, China policy updates. Supply remains tight on logistic and operational constraints across industry. Source: Industry data and Peabody Global Analytics. Data compared to the calendar year 2016. 8

Industry Update: U.S. 2017 Recap: PRB Generation Rises as Total Stockpiles Decline and Exports Increase ● Natural gas prices largest Fuel Generation Change for Full ‐ Year 2017 determinant of coal demand 10% ● PRB demand up 16 million Total Electricity 5% Consumption 5% tons in 2017 PRB – 2017 total coal generation 0% Gas demand declines 3% ILB NAPP CAPP (1%) – Natural gas generation ‐ 5% down 8% (6%) (6%) ● Total coal inventories decline (8%) ‐ 10% 26 million tons despite 5% ‐ 15% increase in coal production – ~60% increase in exports ‐ 20% – Rising domestic PRB coal (21%) consumption ‐ 25% – SPRB stockpiles decline 16% to 54 days of maximum burn Source: Industry reports and Peabody Global Energy Analytics. 9