Investor Update Glenn Kellow CEO Amy Schwetz CFO Vic Svec Head IR - PowerPoint PPT Presentation

Quarterly Investor Update Glenn Kellow – CEO Amy Schwetz – CFO Vic Svec – Head IR and Communications Oct. 29, 2019

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 Peabody expects will occur in the future are forward-looking statements. They may include estimates of value accretion, joint venture synergies, closing of the joint venture, 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 Peabody’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, Peabody 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 Peabody’s control, including ( i) risks that the proposed joint venture may not be completed, including as a result of a failure to obtain required regulatory approvals, (ii) risks that the anticipated synergies from the proposed joint venture may not be fully realized, including as a result of actions necessary to obtain regulatory approvals, (iii) other factors that are described in Peabody’s Annual Report on Form 10 -K for the fiscal year ended Dec. 31, 2018 and (iv) other factors that Peabody may describe from time to time in other filings with the SEC. You may get such filings for free at Peabody’s 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

Third Quarter 2019 Includes Notable Achievements, Several Challenges and Multiple Changes to Portfolio and Organization ✓ PRB mining operations deliver multi-year low costs ✓ Advanced review of highly accretive PRB/Colorado joint venture with FTC; Completion of review expected in first half of 2020 ✓ U.S. teams earn Sentinels of Safety Award and two Office of Surface Mining reclamation awards in October ✓ Pursuing de-risked path to access southern panels at North Goonyella ✓ Received major permit approval for United Wambo JV with Glencore and proceeding with Moorvale South mine extension project ✓ Taking steps to streamline organization, reset operational performance and strengthen portfolio 3

Third Quarter Results Reflect Previously Announced Effects of Pricing, Shipments, Middlemount Performance • Solid U.S. and seaborne thermal Q3 2019 Adjusted EBITDA performance driving results by Mining Portfolios • Seaborne thermal platform ($ in millions) Seaborne delivers 31% Adjusted EBITDA Thermal $77 margins driven by strong Western cost performance $46 • U.S. thermal costs per ton decline 6% from prior year Seaborne even with lower volumes Met $13 • Seaborne met costs impacted by lower volumes, elevated overburden ratios, extended Midwestern $36 longwall move, reduced PRB conveyor availability $71 Note: Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA margin and cost per ton are non-GAAP operating/statistical measures. Refer to the definition and reconciliation to the nearest GAAP measures in the appendix. 4 Seaborne Met Adjusted EBITDA excludes net North Goonyella costs.

Healthy Balance Sheet Positions Peabody Well For Changing Conditions Total Liquidity Dec. Sept. • Committed to ensuring Change ($ in millions) 2018 2019 financial strength with Unrestricted Cash $982 $759 ($223) healthy balance sheet & Cash Equivalents • Generated Free Cash Flow Revolver Availability $244 $499 $255 ARS Availability $93 $92 ($1) of $92 million in Q3; Total Liquidity $1,319 $1,350 $31 $407 million YTD • Upsized revolver to $565 million, securing additional Total Liabilities Dec. Sept. Change ($ in millions) 2018 2019 non-cash liquidity sources Pension $31 $14 $(17) • Largely balanced YTD cash Retiree Healthcare $580 $548 $(32) returns to shareholders ARO $750 $760 $10 between buybacks, dividends Total Funded Debt $1,367 $1,353 ($14) • Accelerated Q3 share Other Liabilities $1,244 $1,133 $(111) repurchases relative to Q2 Total Liabilities $3,972 $3,808 ($164) Note: Liability balances reflect current and non-current balances. Free Cash Flow is a non-GAAP financial 5 measure. Refer to the reconciliation to the nearest GAAP measures in the appendix.

Revised Full-Year 2019 Guidance Ranges • Expected seaborne thermal volumes of 11.5 – 12.0 million tons – Reflects increase in required domestic thermal shipments • Anticipating met volumes of 8.5 – 9.0 million tons – Dec/Jan pricing arbitrage may provide economic opportunity to defer volumes • Seaborne met coal costs projected at ~$100 per ton • Revising Midwest volume guidance to ~16.0 million tons – Reflects lower customer requirements, negotiated deferrals • Lowered overall U.S. cost guidance to $13.95 – $14.45 per ton • Reduced capital spending to $300 – $325 million • Strong U.S. contracting position heading into 2020 – Nearly all planned Midwest volumes priced at $39 per ton – 75% of PRB volumes committed based on mid-point of 2019 volume guidance 6 Note: Met cost guidance excludes North Goonyella costs.

Industry: Recent Stabilization in Seaborne Coal Pricing; Investment Declines as Coal Use Continues to Increase Seaborne rne Metall allurg urgical ical Capex Invested by Major Metallurgical ● Chinese met coal imports increase and Thermal Producing Regions ~20% through September; August ($ in billions) marks new monthly import record $154 ● India imports increase 7% YTD through September Seaborne rne Ther erma mal l ● Pricing recovering from demand weakness $72 in Europe, low LNG prices and strong Indonesian/Russian exports ● Continuing to capture value from high-quality, low-cost ● ASEAN import demand drives demand Shoal Creek Mine growth; Vietnam imports more than ● Progressing opportunities at Moorvale Mine to extend life double YTD through September beyond 2025 with increased quality as early as 2020 2011 - 2013 2016 - 2018 Source: Industry reports and Peabody Global Analytics. Capex invested by major metallurgical and thermal 7 producing regions provided by WoodMac and does not include acquisitions.

Key Business Updates: Peabody Focused on Three Strategies to Create Value; Reshaping the Organization Strateg tegies ies 1 ) Continuing to reweight our investments toward greater seaborne thermal and Strengthening seaborne metallurgical coal access portfolio to capture higher-growth Asian demand 2) Optimizing our lowest-cost and highest-margin U.S. thermal assets to maximize cash generation Focusing 3) Executing our financial approach operations on of generating cash, maintaining financial safety, costs and volumes strength, investing wisely and returning cash to shareholders iden dentif tified ied Annu nual alized ized cost impro rovements vements of $50 million on 8

Peabody Offers Tier-One Thermal Operations; Actively Exploring Means to Upgrade Mid-Tier Metallurgical Platform Seaborne rne Metall allurg urgical ical • Peabody/CMJV partners approve Moorvale South extension project; Extends mine life to 2029 and enhances coking coal profile • Operating two longwall kits at Shoal Creek in November; Upgrading conveyor system to improve long-term reliability • Improving equipment utilization/mining methodology at Coppabella • Identified preferred path to create value from North Goonyella reserve base by mining southern panels beginning with 6 South panel Seaborne rne Ther erma mal l • United Wambo JV receives approval from IPC in late August; Final environmental approval expected to be granted by year-end 2019 • Working to improve Q4 production volumes at Wambo and Wilpinjong through use of additional equipment from Millennium 9